SMART UnionClick here to see a brochure that was mailed and emailed to all active and retired members in Maine and Wisconsin.
Members in those states, as well as anyone concerned with the preservation of good-paying railroad jobs, should contact Representatives Michaud and Ribble and ask that this legislation be tabled.
WASHINGTON, DC—Transportation Trades Department, AFL-CIO (TTD) President Edward Wytkind issued this statement applauding the Senate for including surface transportation bill (MAP-21) funding levels in its FY 2013 appropriations package (UTU-SMART is a member of the TTD):
“The Senate has wisely rejected the irresponsible cuts to mass transit and highways in the House Continuing Resolution (CR) funding bill, deciding instead to live up to the investment levels embodied in the MAP-21 reauthorization bill completed just nine months ago.
“Our roads and bridges are suffering from disrepair and transit budgets have been devastated at a time when more Americans than ever are riding public transportation. And while MAP-21 did not go far enough to protect the Highway Trust Fund from insolvency, it was a bipartisan bill that recognized the importance of these investments to our economy and job creation.
“The House version must be rejected – it would undo the progress from MAP-21, threaten good jobs and roll back spending to unacceptable levels. Let’s keep the promises made in MAP-21 and enact the Senate transit and highway funding levels.”
Retired former CSX (B&O) General Chairperson John T. “Terry” Reed, 71, died March 5.
Funeral services will be held March 11 at 1 p.m. at Floral Hills Memorial Gardens and Funeral Home at 5336 Old Taylor Mill Rd. in Taylor Mill, KY 41015.
The services will be preceded by a visitation at 11 a.m. and followed by a luncheon at 1:30 p.m. The funeral home’s telephone number is (859) 356-2151 and additional information can be found at the funeral home’s website at floralhillsmemorialgardens.com.
A private service for family and pall bearers will be held at 1:45 p.m.
Reed, a member of Local 14 at Cincinnati, Ohio, began his railroading career with the Baltimore & Ohio Railroad in Cincinnati on June 4, 1966.
He was accepted for membership by UTU predecessor Brotherhood of Railroad Trainmen later that year and maintained 37 years of continuous membership. He became active in the affairs of Local 1517 (later merged with Local 14) and was elected local chairperson in 1971 and served in that capacity until 1987. He also served as the local’s delegate at four UTU International conventions.
Prior to being elected as CSX (B&O) GO 49 general chairperson in 1992, he had served as both secretary and vice general chairperson of the general committee.
Reed was appointed to the UTU’s national negotiating committee in 1994 and 1999 and to the union’s national health and welfare agreement negotiating committee in 2002. He also served on the UTU wages and rules panel in 1996 and 2002.
Reed is survived by his wife, Phyllis, daughter and son-in-law, Melody and Alex Warner, and three grandchildren.
Flowers may be sent to the funeral home through the funeral home’s website.
On March 7, 2013, the organization was advised by the U.S. Department of Labor that they are instituting an investigation concerning the Voluntary Short-Term Disability policy we have through Anthem.
While the Department of Labor did not provide the full nature of its investigation, we intend to cooperate to make sure that the facts are fully developed.
Mike Futhey
President, SMART Transportation Division
General Electric Co. (GE) and Caterpillar Inc. (CAT), the world’s largest locomotive makers, are rushing to develop natural gas-powered models in a potential shift from diesel’s six decades as the fuel of choice for railroads.
Three of the biggest U.S. rail carriers — Berkshire Hathaway Inc. (BRK/A)’s Burlington Northern Santa Fe LLC, Union Pacific Corp. (UNP) and Norfolk Southern (NSC) Corp. — are working with manufacturers on using gas as an alternative power source for freight trains. CSX Corp. is studying the technology.
Read the complete story from Bloomberg.
The Federal Railroad Administration has published a final rule, effective May 6, 2013, adding certain non-controlled substances with potentially impairing side effects to its standard post-accident testing panel.
This rule will enact the addition of over-the-counter, legal drugs, (uncontrolled) such as Tramadol and a variety of sedating antihistamines, to the panel of drugs being tested for in post-accident testing only (not in random testing).
The FRA will not include the results of this testing in post-accident reports, nor release its results to the railroads or tested employees. It is being used, according to the FRA, to conduct research studies on the effects these non-controlled substance may have on accidents and incidents in the rail industry, among affected railroad workers.
The FRA believes that the use or abuse of these substances is a possible contributing factor in rail accidents and incidents, and its hoping that this rule by itself will deter the use, misuse or abuse of some non-controlled substances.
Employees may authorize a release of the tests’ results to themselves and their employer by giving permission, however, the FRA did not specify what form of communication constitutes “permission by the employee.” Therefore, it is important that UTU members be aware that releasing these test results is purely voluntary and that anyone coercing them to do so, orally, in writing or by any other means, may be subject to action by the affected employee in legal or administrative venues.
SMART Transportation Division National Legislative Director James Stem noted that the UTU, along with others in rail labor, filed official comments with FRA’s Director of Drug and Alcohol Programs, Lamar Allen, opposing the rule.
Local officers are requested to post this information and inform UTU members at the union meetings and in briefings as appropriate.
Questions regarding this matter may be directed to the UTU’s national legislative office.
To review the final rule, click here.
Employers and employees covered by the Railroad Retirement Act pay higher retirement taxes than those covered by the Social Security Act, so that railroad retirement benefits remain higher than social security benefits, especially for career employees.
The following questions and answers show the differences in railroad retirement and social security benefits payable at the close of the fiscal year ending Sept. 30, 2012. They also show the differences in age requirements and payroll taxes under the two systems.
1. How do the average monthly railroad retirement and social security benefits paid to retired employees and spouses compare?
The average age annuity being paid by the Railroad Retirement Board (RRB) at the end of fiscal year 2012 to career rail employees was $2,975 a month, and for all retired rail employees the average was $2,365. The average age retirement benefit being paid under social security was over $1,235 a month. Spouse benefits averaged $880 a month under railroad retirement compared to $590 under social security.
The Railroad Retirement Act also provides supplemental railroad retirement annuities of between $23 and $43 a month, which are payable to employees who retire directly from the rail industry with 25 or more years of service.
2. Are the benefits awarded to recent retirees generally greater than the benefits payable to those who retired years ago?
Yes, because recent awards are based on higher average earnings. Age annuities awarded to career railroad employees retiring at the end of fiscal year 2012 averaged nearly $3,510 a month while monthly benefits awarded to workers retiring at full retirement age under social security averaged some $1,750. If spouse benefits are added, the combined benefits for the employee and spouse would total $4,890 under railroad retirement coverage, compared to $2,625 under social security. Adding a supplemental annuity to the railroad family’s benefit increases average total benefits for current career rail retirees to over $4,920 a month.
3. How much are the disability benefits currently awarded?
Disabled railroad workers retiring directly from the railroad industry at the end of fiscal year 2012 were awarded almost $2,900 a month on the average while awards for disabled workers under social security averaged about $1,190.
While both the Railroad Retirement and Social Security Acts provide benefits to workers who are totally disabled for any regular work, the Railroad Retirement Act also provides disability benefits specifically for career employees who are disabled for work in their regular railroad occupation. Career employees may be eligible for such an occupational disability annuity at age 60 with 10 years of service, or at any age with 20 years of service.
4. Can railroaders receive benefits at earlier ages than workers under social security?
Railroad employees with 30 or more years of creditable service are eligible for regular annuities based on age and service the first full month they are age 60, and rail employees with less than 30 years of creditable service are eligible for regular annuities based on age and service the first full month they are age 62.
No early retirement reduction applies if a rail employee retires at age 60 or older with 30 years of service and his or her retirement is after 2001, or if the employee retired before 2002 at age 62 or older with 30 years of service.
Early retirement reductions are otherwise applied to annuities awarded before full retirement age, the age at which an employee can receive full benefits with no reduction for early retirement. This ranges from age 65 for those born before 1938 to age 67 for those born in 1960 or later, the same as under social security.
Under social security, a worker cannot begin receiving retirement benefits based on age until age 62, regardless of how long he or she worked, and social security retirement benefits are reduced for retirement prior to full retirement age regardless of years of coverage.
5. Does social security offer any benefits that are not available under railroad retirement?
Social security does pay certain types of benefits that are not available under railroad retirement. For example, social security provides children’s benefits when an employee is disabled, retired or deceased. Under current law, the Railroad Retirement Act only provides children’s benefits if the employee is deceased.
However, the Railroad Retirement Act includes a special minimum guaranty provision that ensures that railroad families will not receive less in monthly benefits than they would have if railroad earnings were covered by social security rather than railroad retirement laws. This guaranty is intended to cover situations in which one or more members of a family would otherwise be eligible for a type of social security benefit that is not provided under the Railroad Retirement Act. Therefore, if a retired rail employee has children who would otherwise be eligible for a benefit under social security, the employee’s annuity can be increased to reflect what social security would pay the family.
6. How much are monthly benefits for survivors under railroad retirement and social security?
Survivor benefits are generally higher if payable by the RRB rather than social security. At the end of fiscal year 2012, the average annuity being paid to all aged and disabled widow(er)s averaged $1,415 a month, compared to $1,165 under social security.
Benefits awarded by the RRB at the end of fiscal year 2012 to aged and disabled widow(er)s of railroaders averaged nearly $1,845 a month, compared to almost $940 under social security.
The annuities being paid at the end of fiscal year 2012 to widowed mothers/fathers averaged $1,700 a month and children’s annuities averaged $980, compared to $890 and $785 a month for widowed mothers/fathers and children, respectively, under social security.
Those awarded at the end of fiscal year 2012 averaged $1,640 a month for widowed mothers/fathers and $1,215 a month for children under railroad retirement, compared to $840 and $770 for widowed mothers/fathers and children, respectively, under social security.
7. How do railroad retirement and social security lump-sum death benefit provisions differ?
Both the railroad retirement and social security systems provide a lump-sum death benefit. The railroad retirement lump-sum benefit is generally payable only if survivor annuities are not immediately due upon an employee’s death. The social security lump-sum benefit may be payable regardless of whether monthly benefits are also due. Both railroad retirement and social security provide a lump-sum benefit of $255. However, if a railroad employee completed 10 years of creditable railroad service before 1975, the average railroad retirement lump-sum benefit payable is $995. Also, if an employee had less than 10 years of service, but had at least 5 years of such service after 1995, he or she would have to have had an insured status under social security law (counting both railroad retirement and social security credits) in order for the $255 lump-sum benefit to be payable.
The social security lump sum is generally only payable to the widow(er) living with the employee at the time of death. Under railroad retirement, if the employee had 10 years of service before 1975, and was not survived by a living-with widow(er), the lump sum may be paid to the funeral home or the payer of the funeral expenses.
8. How do railroad retirement and social security payroll taxes compare?
Railroad retirement payroll taxes, like railroad retirement benefits, are calculated on a two-tier basis. Rail employees and employers pay tier I taxes at the same rate as social security taxes, 7.65 percent, consisting of 6.20 percent for retirement on earnings up to $113,700 in 2013, and 1.45 percent for Medicare hospital insurance on all earnings. Beginning in 2013, an additional 0.9 percent in Medicare taxes (2.35 percent in total) will be withheld from employees on earnings above $200,000.
In addition, rail employees and employers both pay tier II taxes that are used to finance railroad retirement benefit payments over and above social security levels.
In 2013, the tier II tax rate on earnings up to $84,300 is 4.4 percent for employees and 12.6 percent for employers.
9. How much are regular railroad retirement taxes for an employee earning $113,700 in 2013 compared to social security taxes?
The maximum amount of regular railroad retirement taxes that an employee earning $113,700 can pay in 2013 is $12,407.25, compared to $8,698.05 under social security. For railroad employers, the maximum annual regular retirement taxes on an employee earning $113,700 are $19,319.85, compared to $8,698.05 under social security. Employees earning over $113,700, and their employers, will pay more in retirement taxes than the above amounts because the Medicare hospital insurance tax is applied to all earnings.
SMART Transportation Division National Legislative Director James Stem and others testified yesterday before the U.S. House of Representatives’ Committee on Transportation and Infrastructure’s Subcommittee on Railroads, Pipelines and Hazardous Materials regarding the importance of railroads in America’s transportation network and to its economy.
He was one of only four industry representatives invited to appear before the subcommittee and the only member of railroad labor to testify.
Stem addressed rail labor’s support of the railroad industry and its partnership with the carriers on equipment safety standards, hours of service improvements, Railroad Retirement Pension reforms and the opportunities to expand both freight and passenger rail.
“We understand that the most secure job is one at a profitable company that provides services that America needs,” Stem testified. “Our rail industry today is involved in a rail renaissance that will bring many decades of growth to both freight and passenger rail services. Our rail employees have earned the equity to participate in the policy decisions that will impact our industry.
“America has the most advanced freight rail system in the world. Union labor helped build it; we maintain it, and we operate the trains on it,” he said.
Stem’s testimony included support for the nation’s coal industry, transportation of crude oil and hazardous materials by rail, the needed support of Amtrak and other passenger rail systems and the implications of increased truck sizes on our highways and to our environment.
Also testifying at the hearing were Edward Hamberger, president and CEO of the Association of American Railroads, Joseph Boardman, president and CEO of Amtrak, and Paula Hammond, secretary of transportation for the state of Washington and chairperson of the States for Passenger Rail Coalition.
To read Stem’s complete testimony, click here.
To read Hamberger’s complete testimony, click here.
To read Boardman’s complete testimony, click here.
As a result of recently implemented budget cuts, the U.S. Railroad Retirement Board (RRB) must reduce railroad unemployment and sickness insurance benefits by 9.2 percent.
These reductions stem from a sequestration order which President Obama filed on March 1, 2013, in accordance with the requirements of the Budget Control Act of 2011. The sequestration order sets aside a total of $6 million in funding under the railroad unemployment and sickness insurance program. Given the total amount of spending under the program, a cut of this size made benefit reductions necessary.
The 9.2 percent reduction in railroad unemployment benefits will reduce the maximum daily benefit rate from $66 to just under $60. As a result, the total maximum amount payable in a two-week period covering 10 days of unemployment will drop from $660 to $599.28.
Certain railroad sickness benefits are reduced for regular Tier I railroad retirement taxes of 7.65 percent. Applying the additional 9.2 percent reduction to these benefits will result in a daily benefit rate of $55.34 and a maximum two-week payment of $553.44.
The maximum daily benefit rate will increase to $68 on July 1, 2013. For days of unemployment and sickness after that date, the reduction will result in a maximum daily benefit rate of $61.74 and a maximum two-week payout of $617.44. The maximum daily benefit rate for sickness benefits subject to Tier I payroll taxes will be $57.02, with a maximum two-week total of $570.21.
The total sequestration is actually spread out over nine years. This initial reduction will remain in effect through Sept. 30, 2013. The initial reduction amount is based upon projected claims and benefits and may be adjusted as needed. Congress will subsequently determine the amount of any reductions in future years. In addition, any appropriations subsequently enacted in fiscal year 2013 could also result in changes to the reduction amount.
The law exempts social security benefits, as well as railroad retirement, survivor, and disability benefits paid by the RRB, from sequestration.
In fiscal year 2012, the RRB paid $11.3 billion in retirement and survivor benefits to about 573,000 beneficiaries, and net unemployment-sickness benefits of $89 million to about 26,000 claimants.
The following questions and answers on these reductions were provided by the Railroad Retirement Board:
Q. Why are UI/SI benefits impacted by the sequestration when they are funded by the railroads, not the federal government?
A. The Budget Control Act of 2011 mandated the reduction and can only be rescinded by the Congress and the President.
Q. If the sequester issue is resolved, will the reduced portion of the UI/SI benefits be restored?
A. We cannot answer this question since it would depend on the final legislative agreement passed by Congress and signed by the President.
Q. How was the 9.2 percent reduction in unemployment and sickness benefits determined?
A. The reduction amount of 9.2 percent in the payment of RUIA benefits was determined by law.
Q. Will the sequestration have an impact on extended benefits, including the benefits provided for in the American Taxpayer Relief Act of 2012?
A. Yes, the 9.2 percent reduction applies to both regular/current UI benefits, as well as extended benefits funded thru the American Taxpayer Relief Act of 2012.
Q. When did the reduction in unemployment and sickness benefits begin?
A. The reduction of 9.2 percent applies to benefits paid for days beginning March 1, 2013, or later. For instance, in an unemployment claim for the period 02/24/13 thru 3/9/13, the days 2/24-28 would be paid at the full DBR of $66, while the days 3/1-9 would be paid at the reduced rate.
Q. How long will the reduction in my unemployment benefits last?
A. Currently, the reduction for both unemployment and sickness benefits is expected to continue thru Sept. 30, 2013.
Q. How much will I get paid?
A. If a claimant’s daily benefit rate is $66.00 and all days are claimed in a 14-day registration period, the gross amount of benefits payable for the claim will be reduced by $60.72 (9.2 percent x $660.00). Instead of a maximum payment of $660.00 for a full 14-day claim, the maximum payment will be $599.28.
If the claim is for sickness benefits subject to Tier I railroad retirement taxes, there is a further reduction of 7.65 percent or $45.84. The maximum payment after Tier I tax withholding will be $553.44.
Q. Will the sequestration affect the whole UI claim or just parts of it?
A. The reduction in the amount of unemployment and sickness benefits applies to all days payable beginning March 1.
Q. Does sequestration affect the payment of my railroad retirement, disability or survivor benefits?
A. No, any retirement, disability and survivor benefits paid under the Railroad Retirement Act are not affected and will continue to be paid in full.
Q. Since sickness benefits are being reduced, will this also affect my disability retirement benefits?
A. No, monthly disability retirement benefits are not affected by sequestration and will continue to be paid in full.
Q. Will the sequestration affect my retirement benefits even though I have not yet retired?
A. No.
Q. Are any RRB offices going to be closed or operate with reduced hours, especially since it has been rumored SSA offices will going to a four-day work week?
A. No, all RRB field offices will continue to be open to the public from 9:00 a.m. – 3:30 p.m. Monday-Friday (except for federal holidays.)
Q. Does the sequester affect federal workers or the operations of the Railroad Retirement Board?
A. Most federal agencies will have to furlough employees as a result of sequestration. The RRB, which has experienced significant staff decreases over the past several years, does not expect, at this time, to furlough its employees. However, the RRB will not be able to hire sufficient staff to replace those employees who have retired over the past several years.
In-cab communication is an essential element in overall railroad safety. Too many fatal accidents and injuries have been attributed to a lack of or insufficient “in-cab communications.” Peer-to-peer interaction is the key component to effective in-cab communications, according to the UTU’s Rail Safety Task Force.
Everyone knows someone who can benefit from peer-to-peer interaction. Post-accident discussions often include statements like “I knew this would happen” or “it was just a matter of time.” It is absolutely critical that we speak up before an incident.
At the end of the day, we all want the same things. We all want to be able to go home to our families the same way we left them. It is our responsibility as union members to speak up any time, anywhere a risky behavior or unsafe action may come up. You never want to have the thought, “I wish I had said something.” We owe it to ourselves, as well as our other brothers and sisters, to speak up and communicate frequently in the locomotive cab about the operations of the train.
The following behaviors should be practiced during every train assignment.
• Continuous job safety briefings: Crewmembers need a complete understanding of the work to be performed, with conversations about potential risks and other job-related exposures. Don’t be timid about asking questions. There are no stupid questions. Your question may save a life. So speak up if you’re unsure about a move!
• Maintaining situational awareness: This includes planning and preparing for the task ahead, doing your best to avoid distractions, distributing your work load, communicating with your crew members and “recognizing a deteriorating situation.” Develop your own technique to minimize the loss of situational awareness. This may include your own personalized method of staying aware or making a check list that you go through repetitively.
• Attention to details: Go over any details that could possibly be overlooked. Follow procedures to ensure all tasks are performed safely. Perform routine or repetitious tasks with care and attention.
• Courage and confidence to speak up when necessary: Don’t be afraid to speak up regardless of craft, seniority, organization or gender. You may save someone’s life. You may save your own life.
• Electronic devices: Be the person on your crew to demonstrate that your cell phone is off and stowed away when prohibited by rule or regulation. It’s not only because of the rules and regulations that we should do this. It’s the right thing to do to insure safety for ourselves and other crew members.
• Lead by example: As union workers, we must always demonstrate that we are the best and safest workforce money can buy.
(This is Safety Alert #9 in a series of alerts posted by the UTU’s Rail Safety Task Force.)