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1 1 (March 26, 2020)

handle is hein.crs/govckyy0001 and id is 1 raw text is: &~ ~ riE SE .$rCh &~ ~ ~ Updated March 26, 2020 Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits The Railroad Retirement Board (RRB) administers retirement, survivor, disability, unemployment, and sickness benefits for railroad workers and their families under the provisions of the Railroad Retirement Act (RRA) and the Railroad Unemployment Insurance Act (RUIA). Work for railroads engaged in interstate commerce, railroad associations, and railroad labor organizations is covered by the railroad benefits system instead of Social Security or the federal-state unemployment compensation system. During FY2018, the RRB paid nearly $12.7 billion in retirement and survivor benefits to approximately 540,000 beneficiaries. Unemployment and sickness benefits totaling $92.6 million were paid to approximately 25,000 claimants. The number of railroad workers has been declining since the 1950s, although the rate of decline has been irregular and recent years have seen increases in railroad employment after a low of 215,000 workers in January 2010. Since reaching that 2010 low, railroad employment again peaked in April 2015 at 253,000, and then generally declined through October 2019, falling to 206,000 workers. The RRB consists of three members appointed by the President with the advice and consent of the Senate to staggered five-year terms. One member is appointed on the recommendation of the railroad industry, one on the recommendation of railroad labor, and the chair is appointed to represent the public. Similar to Social Security, the RRB provides retirement, survivor, and disability benefits to covered employees and their families who meet insurance requirements by working in covered railroad employment and paying RRA payroll taxes (see Table 1). Tier I retirement annuities are designed to be nearly equivalent to Social Security retirement benefits and are calculated using the Social Security benefit formula. To be eligible for retirement benefits, a person must have at least 10 years of railroad service, or at least five years after 1995 and a sufficient combination of railroad service and work covered by Social Security. Tier I benefits are more generous than Social Security in that, at the age of 60, railroad workers with at least 30 years of covered railroad work may receive unreduced retirement annuities, unlike Social Security that only pays unreduced benefits at full retirement age and pays reduced benefits at age 62. Because work covered by Social Security is counted toward tier I benefits, if a railroad retirement annuitant is also awarded Social Security benefits, those benefits are subtracted from tier I benefits. Tier H retirement annuities are paid in addition to tier I benefits and any private pension and retirement savings plans offered by railroad employers. Tier II benefits are similar to private pensions and are based on the worker's 60 highest months of railroad earnings. Table I. Railroad Retirement, Survivor, and Disability Benefits, September 2019 Type of Benefit Number of Benefits (% of Total Benefits) Retirement 188,372 (29.7%) Supplemental Annuities 117,831 (18.6%) Disability 71,027 (11.2%) Spouses 148,163 (23.4%) Surviving Spouses 98,319 (15.5%) Surviving Children 7,957 (1.3%) Partition Payments 2,050 (0.3%) Total 633,719 (100%) Source: Railroad Retirement Board, Bureau of the Actuary, Quarterly Benefit Statistics, July-September 2019, January 2020, Table I . Notes: Partition payments are made to spouses pursuant to divorce rulings. Beneficiaries may be eligible for more than one type of benefit. The total number of benefits does not include the 23 dependent parents' annuities. Supplemental annuities are paid to employees first hired in railroad work before October 1981, and who are aged 65 or older with at least 25 years of railroad service, or aged 60 with at least 20 years of service. Workers must also have a current connection to the railroad industry (generally one year of railroad work in the previous 30 months). In addition, vested dual benefits are paid to those who were insured for both railroad retirement and Social Security in 1974 when the two-tier railroad retirement benefit structure was established. Railroad workers may be eligible for disability benefits if they are unable to work because of physical or mental impairments. Total disability benefits are paid to workers who are permanently and totally disabled and unable to perform any work. Occupational disability benefits are paid p\w -- , gnom goo mppm qq\ a , q 'S I 11LULANUALiN,

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