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1 1 (June 18, 2018)

handle is hein.crs/govzds0001 and id is 1 raw text is: Conresioa Reeac Seric 0 Updated June 18, 2018 Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits Introduction 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 FY2017, the RRB paid nearly $12.5 billion in retirement and survivor benefits to approximately 548,000 beneficiaries. Unemployment and sickness benefits totaling $106 million were paid to approximately 28,000 claimants. The number of railroad workers has been declining since the 1950's, although the rate of decline has been irregular and recent years have seen increases in railroad employment after an all-time low of 215,000 in January 2010. Railroad employment peaked in April 2015 at 253,000, the highest level since November 1999, and then declined through FY2016, falling to 224,000. 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. ReIrement, Survivor, and Disability Benefits 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. Retirement Benefits 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 which only pays unreduced benefits at full retirement age and pays reduced benefits at age 62. Because work covered by Social https://crsrepo Security is counted toward tier I benefits, Social Security benefits are subtracted from tier I benefits and the worker receives one payment. Tier II 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, December 2017 Type of Benefit Number of Benefits (% of Total Benefits) Age-Based 190,450 (29.4) Disability 73,860 (11.4) Supplemental 121,902 (18.8) Spouse 147,437 (22.8) Widow(er) 104,153 (16.1) Children 8,454 (1.3) Partition Payments 1,737 (0.3) Total 647,993 (100) Source: Railroad Retirement Board, Bureau of the Actuary, Quarterly Benefit Statistics, October-December 2017, March 2018, Table 1. Notes: Partition payments are made to spouses pursuant to divorce rulings. Beneficiaries may be eligible for more than one type of benefit. 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. Spouses of annuitants may receive benefits based on the worker's earnings. Unlike Social Security, children are not eligible for their own benefits based on the record of a living beneficiary but are factored into the eligibility of spouses for benefits and the presence of a minor child or adult disabled before age 22 may increase a worker's annuity amount under the RRA's Special Guaranty provision. rts.congressgov

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