The Rail Workers Hazardous Materials Training Program announces three HazMat/Chemical Emergency Response Training Programs will be held this spring in Houston, Texas.
These programs address U.S. Department of Transportation and the Occupational Health and safety Administration required training in addition to procedures, levels of response and worker protection in a hazardous materials emergency or release, weapons of mass destruction awareness and the incident command system. The training also provides completion of the OSHA 10-Hour General Industry Outreach requirements.
The programs are delivered using interactive classroom instruction, small group activities, hands-on drills and a simulated hazmat response in full safety gear.
The Rail Workers Hazardous Materials Training Program is funded to provide this training by a federal grant from the National Institute of Environmental Health Sciences (NIEHS).
These five-day hazmat training courses will provide rail workers the essential knowledge, skills, and response actions in the case of an unintentional release. These tools will allow rail workers to protect themselves, their co-workers and their communities.
The funding provides the following student expenses: air travel, lodging and meals. In addition, an incentive of $600 per week is available to all training participants of these programs, except those who are able to secure regular pay through their employer, or are paid union officers.
Training will be conducted at the Houston Fire Department’s Val Jahnke Training Facility, 8030 Braniff St. Houston, TX 77061. Programs begin Sunday evenings at 7 p.m. and conclude Fridays at 1 p.m.
Students may be asked to travel on Saturdays to meet program start times or where substantial reductions in airfare warrant.
Register now by completing the attached application form and emailing it to bsafe2day@gmail.com, or send by U.S. mail to: Henry Jajuga, Director, RWHMTP, 17530 Bering Bridge Lane Humble, TX 77346, Please make sure to select one of the following dates: April 27-May 2, 2014, June 1-6, 2014, or June 8-13, 2014.
For additional information, please contact Henry Jajuga via email. For telephone inquiries, please call (281) 812-6436, Monday through Friday, between the hours of 10 a.m. and 3 p.m. central standard time.
First Transit, Inc., and members of the SMART Transportation Division have agreed on mutually acceptable terms and conditions of employment and signed a collective bargaining agreement, according to the National Labor Relations Board.
The transportation management company, which operates throughout the United States, obtained a transit contract in 2011 to operate Red Apple Transit, a passenger bus company in Farmington, N.M. All the full-time and regular part-time drivers at Red Apple Transit were represented by the SMART TD.
On May 13, 2013, the board authorized NLRB Region 28 to pursue an injunction against First Transit Inc. for withdrawing recognition from the Union. First Transit also made unilateral changes in the terms and conditions of Red Apple Transit drivers’ employment – including cuts in wages and benefits – without giving the union an opportunity to bargain on the proposed changes. In addition, they failed to provide relevant information the union requested for the purpose of carrying out its representational duties.
On June 13, 2013, after the Section 10(j) petition had been filed in the district court, the parties agreed to a settlement, with First Transit agreeing to cease and desist its unfair labor practices, to recognize and bargain with the union, to provide the requested information to the union and to rescind the unilateral changes they had made in terms and conditions of employment of Red Apple Transit’s drivers.
WASHINGTON – Rail tank cars being used to ship crude oil from North Dakota’s Bakken region are an “unacceptable public risk,” and even cars voluntarily upgraded by the industry may not be sufficient, a member of the National Transportation Safety Board said Wednesday.
The cars, known as DOT-111s, were involved in derailments of oil trains in Casselton, N.D., and Lac-Megantic, Quebec, just across the U.S. border, NTSB member Robert Sumwalt told a House Transportation subcommittee hearing.
Read Joan Lowy’s complete Associated Press article at the Huffington Post.
President Barack Obama came to St. Paul on Wednesday to showcase the city’s newly refurbished Union Depot transit hub as an example of the kinds of transportation development he wants for the rest of the nation.
“This project symbolizes what’s possible,” Obama told a standing-room-only crowd of 1,300 ticketed enthusiasts in the 90-year-old Lowertown depot’s ornate concourse.
Federal regulators issued an emergency order Tuesday requiring more stringent testing of crude oil before shipment by rail to determine how susceptible the cargo is to explosion or fire, a response to a string of train accidents since last summer involving oil from the Bakken region of North Dakota and Montana.
The order also would place crude oil under more protective sets of hazardous materials shipping requirements, rather than allowing some shipments to be treated as less dangerous, the Transportation Department said.
Hersman Announces Slight Rise in 2012 Transportation Fatalities; Aviation, Pipeline and Marine Deaths Drop
February 14
Washington, DC – Transportation fatalities in the United States increased by three percent in 2012 from 2011, according to preliminary figures released today by the National Transportation Safety Board.
The data indicate that transportation fatalities in all modes totaled 35,531 in 2012, compared to 34,551 in 2011. Although marine, aviation and pipeline, deaths declined, highway and rail fatalities showed an increase.
“We have a serious public health and safety epidemic on our highways,” said NTSB Chairman Deborah A. P. Hersman. “With our Most Wanted List, the NTSB highlights common-sense solutions to these safety issues that can improve safety and reduce the loss of life on our roads, rails, and waterways and in our skies.”
The 2012 statistics show:
Deaths on U.S. roadways, which account for nearly 94 percent of all transportation deaths, increased from 32,479 in 2011 to 33,561 in 2012. Highway fatalities increased in all categories except buses, which are down from 55 fatalities in 2011 to 39 in 2012.
Railroad deaths also increased six percent from 757 to 803. The vast majority of these fatalities were persons struck by a rail vehicle.
Aviation deaths decreased from 498 to 449. Nearly 96 percent of aviation fatalities occurred in general aviation accidents (432), but they still represented a decrease from the previous year (448). In 2012, air taxi fatalities dropped from 41 in 2011 to 15.
Marine deaths also dropped in 2012, from 803 to 706. The vast majority of the fatalities, (651), occurred in recreational boating
Aviation statistics are tracked and compiled by the NTSB. The U.S. Department of Homeland Security provides marine statistics, and the U.S. Department of Transportation provides statistics for all other modes.
A previously quiet increase in the amount oil moving through Albany by train is escalating into a rather loud controversy.
One reliable sign: A meeting at an elementary school on Feb. 12 about the volume of North Dakota crude moving through the capital drew a crowd of hundreds to protest and ask questions.
INTRODUCING THE UNION MEMBER ASSISTANCE COORDINATOR (UMAC) PROGRAM
On November 10, 2013, union representatives from twelve SMART local unions from around the country gathered together in Philadelphia, PA, to take part in a week-long training program. The training kicked off a pilot program designed to help union members and their families who are experiencing various forms of personal crisis. Once in place, the Union Member Assistance Coordinator, or UMAC, program will form a network of compassionate, respected, and competently trained union representatives who work together to assist our members and their families find assistance for struggles with depression, substance abuse and other mental health related issues.Union representatives assist members daily with issues such as travel pay or jurisdictional assignments, but these are relatively minor concerns when compared with a union member in personal crisis. The current recession that SMART members have been clawing out of has left an indelible mark on many of our members, and we thought: “Couldn’t we be doing more?”Many SMART local unions have contracted with third party Employee Assistance Programs (EAPs), which provide necessary professional help, but we needed to do more than just pass along an 800 number. SMART Director of Education Chris Carlough put together a training program that was originally developed by Bobby Bonds, a specialist in the mental health profession from IQOL, LLC Consultants Philadelphia. Nationally recognized as a leader in crisis intervention, Bobby Bonds has trained more than 25,000 lay-professionals, volunteers, and mental health professionals in the United States and Europe to deal with workplace and family crisis interventions. “Bobby’s association with the transportation industry and the transportation trade unions spans a period of over 25 years. The majority of those years, Bobby has dedicated his career to developing and administering helping programs dealing with all aspects of members’ and their family’s well-being,” Carlough stated. SMART predecessor organizations SMWIA and UTU have an impressive history with peer and member assistance programs. Today’s Union Member Assistance Coordinator program offers assistance and support for every facet of crisis that our members face, living the true meaning of “union family.” The coordinators in the UMAC program have close ties to members on and off the job. They see attitudes and behaviors as they develop and are therefore in a better position to detect a problem and take early action. As business agents, they have already earned the respect and trust of members and the union leadership. Their credibility, mixed with compassion and a deep understanding of a member’s situation, makes for a powerful combination that cannot be offered by any other professional. The core components that comprise UMAC training are: Confidentiality, Communication, Interpersonal Skills, Introspection of Oneself, Assessment of Crisis, Ethical Responsibility, Relapse and Follow-up, and Navigating through Health Care Plans. The UMAC education program includes both theoretical knowledge and practice of basic skills necessary for crisis interventions. There are three distinct areas UMACs will play a vital role at SMART: • Early Intervention—The UMAC recognizes the signs and symptoms of a variety of substance abuse and mental health problems. The UMAC will offer “emotional first aid” and develop a proactive intervention to help members deal with the problem. UMACs are always searching for ways to help the member find the best solution. The UMACs remain visible and accessible, and will demonstrate their concern around quality of life issues when a member or a member’s family is experiencing a crisis. The UMAC tries to help the local by helping the member identify a problem before it reaches a serious “crisis stage,” decreasing the hardship, complexity and consequences associated with problems left unchecked. By advocating earlier for the member, the UMAC helps avoid employer discipline, family complications, and disassociation with other members in the local. • Understanding Member Benefit Plans—UMACs will be able to identify appropriate effective resources and direct members to help within the member’s eligible health plan. UMACs will network and have the ability to augment a member’s mental health plan with other supporting social services when necessary. Today’s mental health benefit plans are confusing and often prove difficult to navigate. Finding the appropriate treatment provider can become frustrating and exacerbates an already difficult situation. Many health plans have restrictions and only offer access to limited in-network providers. By understanding these constraints, UMACs will help the member search for all available resources and determine the best option for their specific needs. • Follow-up—UMACs will be able to support the member when returning back to work and to assist in coordinating the member’s continuing care plan for a successful continuation of their recovery. Once a member completes their initial treatment, their re-integration back into their home and work life can offer some steep obstacles. The therapeutic value of one union member understanding and helping another union member is without parallel. This important support is often times the difference between a successful recovery and relapse. The UMAC can direct members to additional resources and provide them with the positive support and reinforcement every member needs in the early stages of ongoing recovery. Core Skill Sets for a UMAC • High credibility within the local • Strong interpersonal and attentive listening skills • Natural desire to help others • Preferred elected union officer or agent • Willingness to learn and availability of time Program Goals • Create direct access to union resources. “Promoted by members for members.” • Establish a trusted gatekeeper for information/support and resources. “People don’t care what you know, until they know that you care.” • Provide confidential nonjudgmental union services to members. “Members who judge don’t matter, and members who matter don’t judge.” • Heighten awareness and attention to health issues. • Increase efficient utilization of eligible contracted benefit plans. • Enhance the quality of life for SMART members. UMAC Objectives • Reduce relapse occurrences through case management, personal care, and follow-up. • Provide broader access to member benefit plans through established relationships and trust. • Inspire, incentivize, and motivate the member into positive lifestyle changes. • Reduce the risk of a troubled member negatively impacting the workplace or home by creating a culture of positive and constructive intervention. Every day we are working to make life more prosperous for our members. To know that we will also be there when our members are experiencing personal difficulties is comforting and very much appreciated. I applaud our business agents’ willingness to build for our organization this network of helpers. Their work will enhance our solidarity as a union and reflect our purpose as a caring organization in the truest spirit of unionism. The main reason most people seek help from a professional is not because they have a “problem” that has become insurmountable, but because the social supports in their social circles are no longer accessible or willing to provide the needed assistance. CRISIS INTERVENTION IS NOT PSYCHOTHERAPY: An important element in crisis intervention is remembering that crisis intervention is NOT psychotherapy. While it certainly contains psychotherapeutic elements, it is not therapy as practiced by licensed mental health clinicians. It may be thought of as a form of emotional first-aid. Thus, as physical first-aid is to the practice of medicine, crisis intervention is to the practice of psychotherapy. “Just trying to get caught up after that intense week of training. It was a little overwhelming at times but worth every minute. I learned a lot and will be a better brother and agent because of it.„ Bob Greiner, Local 12 Business Representative “I think the UMAC program is very good and all business agents should take the training.„ John Chase, Local 10 Business Representative “The best potential benefit of the UMAC program is instructing the union leadership in how to get better at getting our members to take advantage of the resources that are already available.„ Buck Paulsrud, Local 10 Metro Apprentice Coordinator “The UMAC program will help us help our members through difficult times. Agents are, a lot of times, the first and last lines of defense in helping out our members.„ Dave Holzer, Local 10 Business Representative “The notion of union brotherhood implies a sense of family. A sense of family implies a group of people who watch out for and help each other. That is what the UMAC program is all about.”
WASHINGTON – The nation’s major freight railroads Feb. 21 joined U.S. Transportation Secretary Anthony Foxx in announcing a rail operations safety initiative that will institute new voluntary operating practices for moving crude oil by rail. The announcement follows consultations between railroads represented by the Association of American Railroads (AAR) and the U.S. Department of Transportation (DOT), including the leadership of the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).
The announcement Feb. 21 covers steps related to crude by rail operations. Additional issues relating to the safe transport of crude oil, such as tank car standards and proper shipper classification of crude oil, are being addressed separately.
“We share the Administration’s vision for making a safe rail network even safer, and have worked together to swiftly pinpoint new operating practices that enhance the safety of moving crude oil by rail,” said AAR President and CEO Edward R. Hamberger. “Safety is a shared responsibility among all energy-supply-chain stakeholders. We will continue to work with our safety partners – including regulators, our employees, our customers and the communities through which we operate – to find even more ways to reinforce public confidence in the rail industry’s ability to safely meet the increased demand to move crude oil.”
Under the industry’s voluntary efforts, railroads will take the following steps:
Increased Track Inspections – Effective March 25, railroads will perform at least one additional internal-rail inspection each year above those required by new FRA regulations on main line routes over which trains moving 20 or more carloads of crude oil travel. Railroads will also conduct at least two high-tech track geometry inspections each year on main line routes over which trains with 20 or more loaded cars of crude oil are moving. Current federal regulations do not require comprehensive track geometry inspections.
Braking Systems – No later than April 1, railroads will equip all trains with 20 or more carloads of crude oil with either distributed power or two-way telemetry end-of-train devices. These technologies allow train crews to apply emergency brakes from both ends of the train in order to stop the train faster.
Use of Rail Traffic Routing Technology – No later than July 1, railroads will begin using the Rail Corridor Risk Management System (RCRMS) to aid in the determination of the safest and most secure rail routes for trains with 20 or more cars of crude oil. RCRMS is a sophisticated analytical tool, developed in coordination with the federal government, including the U.S. Department of Homeland Security (DHS), PHMSA and FRA. Railroads currently use RCRMS in the routing of security sensitive materials. This tool takes into account 27 risk factors – including volume of commodity, trip length, population density along the route, local emergency response capability, track quality and signal systems – to assess the safety and security of rail routes.
Lower Speeds – No later than July 1, railroads will operate trains with 20 or more tank cars carrying crude oil that include at least one older DOT-111 car no faster than 40 mph in the federally designated 46 high-threat-urban areas (HTUA) as established by DHS regulations. In the meantime, railroads will continue to operate trains with 20 or more carloads of hazardous materials, including crude oil, at the industry self-imposed speed limit of 50 mph.
Community Relations – Railroads will continue to work with communities through which crude oil trains move to address location-specific concerns that communities may have.
Increased Trackside Safety Technology – No later than July 1, railroads will begin installing additional wayside wheel bearing detectors if they are not already in place every 40 miles along tracks with trains carrying 20 or more crude oil cars, as other safety factors allow.
Increased Emergency Response Training and Tuition Assistance – Railroads have committed by July 1 to provide $5 million to develop specialized crude by rail training and tuition assistance program for local first responders. One part of the curriculum will be designed to be provided to local emergency responders in the field, as well as comprehensive training will designed to be conducted at the Transportation Technology Center, Inc. (TTCI) facility in Pueblo, Colo. The funding will provide program development as well as tuition assistance for an estimated 1500 first responders in 2014.
Emergency Response Capability Planning – Railroads will by July 1 develop an inventory of emergency response resources for responding to the release of large amounts of crude oil along routes over which trains with 20 or more cars of crude oil operate. This inventory will include locations for the staging of emergency response equipment and, where appropriate, contacts for the notification of communities. When the inventory is completed, railroads will provide DOT with information on the deployment of the resources and make the information available upon request to appropriate emergency responders.
Railroads will continue to work with the Administration and rail customers to address other key shared safety responsibilities, including federal tank car standards and the proper shipper classification and labeling of oil moving by rail. PHMSA is currently reviewing public comments on increasing federal tank car standards.
The following questions and answers describe the tax statements issued by the Railroad Retirement Board (RRB) each January for federal income tax purposes. Railroad retirement beneficiaries needing information about these statements, or about tax withholding from their benefits, should contact an office of the RRB. For further federal income tax information, railroad retirement beneficiaries should contact the nearest office of the Internal Revenue Service (IRS).
1. How are the annuities paid under the Railroad Retirement Act treated under the federal income tax laws?
A railroad retirement annuity is a single payment comprised of one or more of the following components, depending on the annuitant’s age, the type of annuity being paid, and eligibility requirements: a Social Security Equivalent Benefit (SSEB) portion of Tier I, a Non-Social Security Equivalent Benefit (NSSEB) portion of Tier I, a Tier II benefit, a vested dual benefit, and a supplemental annuity.
In most cases, part of a railroad retirement annuity is treated like a social security benefit for Federal income tax purposes, while other parts of the annuity are treated like private pensions for tax purposes. Consequently, most annuitants are sent two tax statements from the RRB each January, even though they receive only a single annuity payment each month.
2. Which railroad retirement benefits are treated as social security benefits for federal income tax purposes?
The SSEB portion of tier I (the part of a railroad retirement annuity equivalent to a social security benefit based on comparable earnings) is treated for federal income tax purposes the same way as a social security benefit. The amount of these benefits that may be subject to federal income tax, if any, depends on the beneficiary’s income.
If taxable pensions, wages, interest, dividends, and other taxable income, plus tax-exempt interest income, plus half of the amount of the social security equivalent benefit payments exceed:
$25,000 but are less than $34,000 for an individual ($32,000 but are less than $44,000 for a married couple filing jointly), up to 50 percent of these benefits may be considered taxable income.
$34,000 for an individual ($44,000 for a married couple filing jointly), or zero for a married individual who files separately but lived with his or her spouse any part of the year, up to 85 percent of these railroad retirement benefit payments may be taxable income.
3. Which railroad retirement benefits are treated like private pensions for federal income tax purposes?
The NSSEB portion of Tier I, Tier II benefits, vested dual benefits, and supplemental annuities are all treated like private pensions for Federal income tax purposes. In some cases, primarily those in which early retirement benefits are payable to retired employees and spouses between ages 60 and 62, some occupational disability benefits, and other categories of unique RRB entitlements, the entire annuity may be treated like a private pension. This is because social security benefits based on age and service are not payable before age 62, social security disability benefit entitlement requires total disability, and the Social Security Administration does not pay some categories of beneficiaries paid by the RRB.
4. What information is shown on the railroad retirement tax statements sent to annuitants in January?
One statement, Form RRB-1099 for U.S. citizens or residents (or Form RRB-1042S for nonresident aliens), shows the SSEB portion of Tier I or special minimum guaranty payments made during the tax year, the amount of any such benefits that an annuitant may have repaid to the RRB during the tax year, and the net amount of these payments after subtracting the repaid amount. The amount of any offset for workers’ compensation and the amount of federal income tax withheld from these payments are also shown. Illustrations and explanations of items found on Form RRB-1099 and Form RRB-1042S can be found in IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits.
The other statement, Form RRB-1099-R (for both U.S. citizens and nonresident aliens), shows the NSSEB portion of Tier I, Tier II, vested dual benefit, and supplemental annuity paid to the annuitant during the tax year, and may show an employee contribution amount. The NSSEB portion of Tier I along with Tier II are considered contributory pension amounts and are shown as a single combined amount in the Contributory Amount Paid box (Item 4) on the statement. The vested dual benefit and supplemental annuity are considered noncontributory pension amounts and are shown as separate items on the statement. The total gross paid amount shown on Form RRB-1099-R is the sum of the NSSEB portion of Tier I, Tier II, vested dual benefit and supplemental annuity payments. Also shown is the amount of Federal income tax withheld from these payments. The statement also shows the amount of any of these prior year benefits repaid by the annuitant to the RRB during the tax year. This amount is not subtracted from the gross amounts shown because its treatment depends on the years to which the repayment applies and its taxability in those years. To determine the year or years to which the repayment applies, annuitants should contact the RRB. Illustrations and explanations of items found on Form RRB-1099-R can be found in IRS Publication 575, Pension and Annuity Income.
If the annuitant is taxed as a nonresident alien of the United States, Form RRB-1042S and/or Form RRB-1099-R will show the rate of tax withholding (0 percent, 15 percent or 30 percent) and country of residence for income tax purposes. Nonresident aliens may receive more than one set of original tax statement Forms RRB-1042S and/or RRB-1099-R in a tax year if there was a change in the country of residence for income tax purposes, or a change in the rate of income tax applied to annuity payments. Nonresident aliens who resided in the United States for part of a tax year may receive a set of original U.S. citizen tax statement Forms RRB-1099 and/or RRB-1099-R and one or more sets of nonresident alien tax statement Forms RRB-1042S and/or RRB-1099-R.
The total Medicare premiums deducted from the railroad retirement annuity may also be shown on either Form RRB-1099 (Form RRB-1042S for nonresident aliens) or Form RRB-1099-R. Medicare premiums deducted from social security benefits paid by the RRB, paid by a third party, or paid through direct billing are not shown on RRB-issued tax statements.
Copy B and/or Copy 2 of Form RRB-1099-R must be submitted with the annuitant’s tax return. Annuitants should retain copy C of all statements for their records, especially if they may be required to verify their income in connection with other Government programs.
5. What is the significance of the employee contribution amount?
For railroad retirement annuitants, the employee contribution amount is considered the amount of railroad retirement payroll taxes paid by the employee that exceeds the amount that would have been paid in social security taxes if the employee’s railroad service had been covered under the Social Security Act. The employee contribution amount is referred to by the IRS as an employee’s investment, or cost, in the contract. An employee contribution amount is not a payment or income received during the tax year. Only employee and survivor annuitants may have an employee contribution amount shown in Item 3 of their Form RRB-1099-R.
The contributory amount paid (NSSEB portion of Tier I and/or Tier II) is considered income an d is reported to the IRS. The contributory amount paid is either fully taxable or partially taxable depending on whether the employee contribution amount has been used to compute a tax-free (nontaxable) portion of the contributory amount paid. If no employee contribution amount is shown on Form RRB-1099-R, then the contributory amount paid is fully taxable.
The use and recovery of the employee contribution amount is important for annuitants since it affects the amount of taxable income to be reported on income tax returns. There is a tax savings advantage in using (recovering) employee contributions since it may reduce the taxability of the contributory amount paid and in turn the amount of taxable income.
Annuitants should refer to IRS Publication 575, Pension and Annuity Income, and Publication 939, General Rule for Pensions and Annuities, for more information concerning the tax treatment of the contributory amount paid (see questions 6 and 7 below) and use of the employee contribution amount.
6. If an employee contribution amount is shown on my Form RRB-1099-R, may I use the entire amount?
The employee contribution amount shown is attributable to the railroad retirement account number. This means that the employee contribution amount must be shared by all eligible annuitants under that same railroad retirement account number.
If an employee contribution amount is shown on your Form RRB-1099-R and your annuity beginning date is July 2, 1986, or later, you may be able to use some or all of the employee contribution amount shown to compute the nontaxable (tax-free) amount of your contributory amount paid. Therefore, your contributory amount paid and total gross paid shown on your Form RRB-1099-R may be partially taxable.
If an employee contribution amount is not shown on your Form RRB-1099-R, you cannot use or share the employee contribution amount. Therefore, your contributory amount paid and total gross paid shown on your Form RRB?1099-R are fully taxable.
When more than one annuitant is or was entitled to a contributory amount paid under the same railroad retirement account number, any eligible annuitants may not use the entire employee contribution amount shown on their Form RRB-1099-R for themselves. They must first determine the amount of the total employee contribution amount they are individually entitled to use. That means determining:
The portion of the total employee contribution amount still potentially available for use, and
The portion of that amount that must be shared by those eligible annuitants currently receiving contributory amounts paid.
For example, a survivor family group consists of a widow and two full-time students. All three annuitants are eligible to use a portion of the employee contribution amount shown on their Forms RRB-1099-R. They must determine the portion of the employee contribution amount they may each use. Question 7 below provides general information on how to calculate this amount. For more specific information, annuitants should refer to IRS Publication 575, Pension and Annuity Income, and Publication 939, General Rule for Pensions and Annuities.
Any change in the total number of eligible annuitants receiving contributory amounts paid will affect the nontaxable amounts of these annuitants. This change is retroactive to the date on which the number of eligible annuitants changed. Any of these changes could potentially affect the taxable amounts reported to the IRS on prior year income tax returns. Annuitants should determine if any change would require them to file original or amended U.S. federal income tax returns for prior tax years. For more specific information, annuitants should refer to IRS Publication 575, Pension and Annuity Income, and Publication 939, General Rule for Pensions and Annuities.
7. How are contributory and noncontributory pension amounts taxed?
Amounts shown on Form RRB-1099-R are treated like private pensions and taxed either as contributory pension amounts or as noncontributory pension amounts. The NSSEB portion of Tier I and Tier II (shown as the contributory amount paid on the statement) are contributory pension amounts. Contributory pension amounts may be fully taxable or partially taxable depending on the presence and use (recovery) of the employee contribution amount. Vested dual benefits and supplemental annuities are considered noncontributory pension amounts. Noncontributory pension amounts are always fully taxable and do not involve the use of the employee contribution amount.
For annuitants with annuity beginning dates before July 2, 1986, the contributory amount paid is fully taxable. These annuitants cannot use the employee contribution amount, even if the amount is shown on Form RRB-1099-R, to compute a nontaxable amount of their contributory amount paid because their employee contribution amount has been fully recovered. Since the contributory amount paid is fully taxable, the total gross pension paid in Item 7 of Form RRB-1099-R is fully taxable.
For annuitants with annuity beginning dates from July 2, 1986, through Dec. 31, 1986, the contributory amount paid may be partially nontaxable for the life of the annuity. These annuitants may be able to use some or all of the employee contribution amount to compute a nontaxable contributory amount paid. Once that nontaxable amount is computed, it does not need to be recomputed and can be used for each tax year unless there is a change in the employee contribution amount, annuity beginning date, date of birth used to determine life expectancy, or the number of eligible annuitants receiving contributory amounts paid. Therefore, the contributory amount paid in Item 4 and the total gross pension paid in Item 7 of Form RRB-1099-R may be partially taxable.
For annuitants with annuity beginning dates effective Jan. 1, 1987, and later, the contributory amount paid may be partially nontaxable for a specified period of time based on life expectancy as determined by IRS actuarial tables. These annuitants may use some or all of the employee contribution amount to compute the nontaxable amount of their contributory amount paid. Once that nontaxable amount is computed, it does not need to be recomputed and can be used for each tax year unless there is a change in the employee contribution amount, annuity beginning date, date of birth used to determine life expectancy, or the number of eligible annuitants receiving contributory amounts paid. Therefore, the contributory amount paid in Item 4 and the total gross pension paid in Item 7 of Form RRB-1099-R may be partially taxable. However, once the specified life expectancy is met, the employee contribution amount is considered fully recovered, and the contributory amount paid and total gross pension paid are both fully taxable.
The contributory amounts paid of disabled employee annuitants under minimum retirement age are fully taxable and these annuitants cannot use the employee contribution amount. Therefore, the contributory amount paid in Item 4 and the total gross pension paid in Item 7 of Form RRB-1099-R are fully taxable. (Minimum retirement age is generally the age at which individuals could retire based on age and service, which is age 60 with 30 or more years of railroad service or age 62 with less than 30 years of railroad service.) However, once the disabled employee annuitant reaches minimum retirement age, the annuitant may use the employee contribution amount shown on Form RRB-1099-R to compute the nontaxable amount of his or her contributory amount paid.
The RRB does not calculate the nontaxable amount of the contributory amount paid for annuitants. Annuitants should contact the IRS or their own tax preparer for assistance in calculating the nontaxable amount of their contributory amount paid. For more information on the tax treatment of the contributory amount paid, vested dual benefits, supplemental annuities, the employee contribution amount, and how to use the IRS actuarial tables, annuita nts should refer to IRS Publication 939, General Rule for Pensions and Annuities, and IRS Publication 575, Pension and Annuity Income.
8. Does Form RRB-1099-R show the taxable amount of any contributory railroad retirement benefits or just the total amount of such benefits paid during the tax year?
Form RRB-1099-R shows the total amount of any contributory railroad retirement benefits (NSSEB and tier II) paid during the tax year. The RRB does not calculate the taxable amounts. It is up to the annuitant to determine the taxable and nontaxable (tax-free) amounts of the contributory amount paid using the employee contribution amount.
9. Can an employee contribution amount change?
Yes. The employee contribution amount shown on Form RRB-1099-R is based on the latest railroad service and earnings information available on the RRB’s records. Railroad service and earnings information (and the corresponding employee contribution amount) often changes in the first year after an employee retires from railroad service. That is when the employee’s final railroad service and earnings information is furnished to the RRB by his or her employer. As a result, the employee contribution amount shown on the most recent Form RRB-1099-R may have increased or decreased from a previously-issued Form RRB-1099-R.
Any change in an employee contribution amount is fully retroactive to the railroad retirement annuity beginning date. Therefore, the nontaxable amount of the contributory amount paid should be recomputed. This could affect the taxable amounts reported to the IRS on prior income tax returns. Generally, an increase in the employee contribution amount is advantageous, as it will yield a larger tax-free amount. However, a decrease in the employee contribution amount may be disadvantageous since it may result in an increased tax liability. In any case, annuitants should determine if any change in their employee contribution amount would require them to file original or amended Federal income tax returns for prior tax years.
10. What if a person receives social security as well as railroad retirement benefits?
Railroad retirement annuitants who also received social security benefits during the tax year receive a Form SSA-1099 (or Form SSA-1042S if they are nonresident aliens) from the Social Security Administration. They should add the net social security equivalent or special guaranty amount shown on Form RRB-1099 (or Form RRB-1042S) to the net social security income amount shown on Form SSA-1099 (or Form SSA-1042S) to get the correct total amount of these benefits. They should then enter this total on the Social Security Benefits Worksheet in the instructions for Form 1040 or 1040A to determine if part of their social security and railroad retirement social security equivalent benefits is taxable income.
Additional information on the taxability of these benefits can be found in IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits.
11. Are the residual lump sums, lump-sum death payments or separation allowance lump-sum amounts paid by the RRB subject to federal income tax?
No. These amounts are nontaxable and are not subject to federal income tax. The RRB does not report these amounts on statements.
12. If an annuity was due but unpaid at the time of an annuitant’s death, it may be payable to another person. Would that person be subject to federal income tax on this annuity?
Yes, if the deceased annuitant would have had to pay federal income tax on the benefit. The taxable amount of the annuity is reported to the IRS and on Form RRB-1099 (or Form RRB-1042S) or Form RRB-1099-R, as appropriate, which is sent to the person who received the annuity.
13. Are federal income taxes withheld from railroad retirement annuities?
Yes, and the amounts withheld are shown on the statements issued by the RRB each year. However, an annuitant may request that federal income taxes not be withheld, unless the annuitant is a nonresident alien or a U.S. citizen living outside the 50 States or Washington, D.C.
Annuitants can voluntarily choose to have federal income tax withheld from their SSEB payments. To do so, they must complete IRS Form W-4V, Voluntary Withholding Request, and send it to the RRB. They can choose withholding from their SSEB payments at the following rates: 7 percent, 10 percent, 15 percent, or 25 percent.
Annuitants who are taxed as U.S. citizens and who do not live outside the 50 States or Washington, D.C., and wish to have federal income taxes withheld from their NSSEB and tier II (contributory amount paid), vested dual benefit, and supplemental annuity payments must complete a tax withholding election on Form RRB W-4P, Withholding Certificate For Railroad Retirement Payments, and send it to the RRB. An annuitant is not required to file Form RRB W-4P. If that form is not filed, the RRB will withhold taxes only if the combined portions of the NSSEB and tier II (contributory amount paid), vested dual benefit and supplemental annuity payments are equal to or exceed an annual threshold amount. In that case, the RRB withholds taxes as if the annuitant were married and claiming three allowances.
14. How is tax withholding applied to the railroad retirement benefits of nonresident aliens?
A nonresident alien is a person who is neither a citizen nor a resident of the United States. Under the Internal Revenue Code, nonresident aliens are subject to a 30-percent tax on income from sources within the United States not connected to a U.S. trade or business. The 30-percent rate applies to all annuity payments exceeding social security equivalent payments and to 85 percent of the annuity portion treated as a social security benefit. The Internal Revenue Code also requires the RRB to withhold the tax. The tax can be at a rate lower than 30 percent or can be eliminated entirely if a tax treaty between the United States and the country of residence provides such an exemption, and the nonresident alien completes and sends Form RRB-1001, Nonresident Questionnaire, to the RRB. Form RRB-1001 secures citizenship, residency and tax treaty claim information for nonresident beneficiaries (nonresident aliens or U.S. citizens residing outside the United States).
Form RRB-1001 is sent by the RRB to nonresident aliens every three years to renew the claim for a tax treaty exemption. Failure by a nonresident alien to complete Form RRB-1001 will cause loss of the exemption until the exemption is renewed. Such renewals have no retroactivity. Also, a nonresident alien must include his or her United States taxpayer identifying number on Form RRB-1001. Otherwise, any tax treaty exemption claimed on the form is not valid. The majority of nonresident aliens receiving annuities from the RRB are citizens of Canada, which has a tax treaty with the United States.
If a Canadian citizen claims an exemption under the tax treaty, no tax is withheld from the SSEB portion of Tier I and a tax withholding rate of 15 percent is applied to the benefit portions treated like pension payments.
Additional information concerning the taxation of nonresident aliens can be found in IRS Publication 519, U.S. Tax Guide for Aliens.
15. Are unemployment benefits paid under the Railroad Unemployment Insurance Act subject to federal income tax?
All unemployment benefit payments are subject to federal income tax. Each January, the RRB sends Form 1099-G to individuals, showing the total amount of railroad unemployment benefits paid during the previous year.
16. Are sickness benefits paid by the RRB subject to federal income tax?
Sickness benefits paid by the RRB, except for sickness benefits paid for on-the-job injuries, are subject to federal income tax under the same limitations and conditions that apply to the taxation of sick pay received by workers in other industri es. Each January, the RRB sends Form W-2 to affected beneficiaries. This form shows the amount of sickness benefits that each beneficiary should include in his or her taxable income.
17. Does the RRB withhold federal income tax from unemployment and sickness benefits?
The RRB withholds federal income tax from unemployment and sickness benefits only if requested to do so by the beneficiary. A beneficiary can request withholding of 10 percent of his or her unemployment benefits by filing IRS Form W-4V, Voluntary Withholding Request, with the RRB. A beneficiary can request withholding from sickness benefits by filing IRS Form W-4S, Request for Federal Income Tax Withholding from Sick Pay.
18. Are railroad retirement and railroad unemployment and sickness benefits paid by the RRB subject to State income taxes?
The Railroad Retirement and Railroad Unemployment Insurance Acts specifically exempt these benefits from State income taxes.
19. Can a railroad employee claim a tax credit on his or her federal income tax return if the employer withheld excess railroad retirement taxes during the year?
If any one railroad employer withheld more than the annual maximum amount, the employee must ask that employer to refund the excess. It cannot be claimed on the employee’s return.
20. Can a railroad employee working two jobs during the year get a tax credit if excess retirement payroll taxes were withheld by the employers?
Railroad employees who also worked for a nonrailroad social security covered employer in the same year may, under certain circumstances, receive a tax credit equivalent to any excess social security taxes withheld.
Employees who worked for two or more railroads during the year, or who had Tier I taxes withheld from their RRB sickness benefits in addition to their railroad earnings, may be eligible for a tax credit of any excess Tier I or Tier II railroad retirement taxes withheld. The amount of Tier I taxes withheld from sickness benefits paid by the RRB is shown on Form W-2 issued to affected beneficiaries. Employees who had Tier I taxes withheld from their supplemental sickness benefits (benefits paid under an RRB-approved nongovernmental sickness insurance plan, such as a supplemental sickness benefit plan established by a railroad) may also be eligible for a tax credit of any excess Tier I tax.
Such tax credits may be claimed on an employee’s Federal income tax return.
Employees who worked for two or more railroads, received sickness benefits, or had both railroad retirement and social security taxes withheld from their earnings should see IRS Publication 505, Tax Withholding and Estimated Tax, for information on how to figure any excess railroad retirement or social security tax withheld.
The Rail Workers Hazardous Materials Training Program announces three HazMat/Chemical Emergency Response Training Programs will be held this spring in Houston, Texas.
First Transit, Inc., and members of the SMART Transportation Division have agreed on mutually acceptable terms and conditions of employment and signed a collective bargaining agreement, according to the National Labor Relations Board.
WASHINGTON – Rail tank cars being used to ship crude oil from North Dakota’s Bakken region are an “unacceptable public risk,” and even cars voluntarily upgraded by the industry may not be sufficient, a member of the National Transportation Safety Board said Wednesday.