SMART-TD shares with the late Dr. Martin Luther King Jr. the dream that men and women should be judged not by the color of their skin, their nationality or religious beliefs, but by the content of their hearts.
King’s brilliance, vision, leadership and ultimate personal sacrifice shifted the course of American history by shedding light and bringing hope to a nation marred by racism, ignorance and inequality.
King’s work and his words brought the promise of justice, hope and freedom to people of color and to the oppressed everywhere. His words still ring as powerfully, relevant and true today as they did more than 50 years ago:
“And so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.
“I have a dream that one day this nation will rise up and live out the true meaning of its creed: We hold these truths to be self-evident, that all men are created equal.
“I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.”
–- From Martin Luther King’s historic speech delivered Aug. 28, 1963, on the steps of the Lincoln Memorial in Washington D.C.
August 31st was a day that would forever change the lives of member David Mitchell (Local 937 in Mart, Texas) and his family. It was the day that he would come home with a diagnosis of COVID-19. By September 7, Mitchell’s wife, Michelle, would begin to show symptoms, and on September 13, she was hospitalized with severe COVID pneumonia. By Sept. 14, all four of the Mitchell kids had been diagnosed as well.
Although David and his kids recovered quickly from COVID-19, Michelle did not. Her health continued to decline and on Oct. 5, she had to be intubated.
“Oct. 6th after picking up my son from Timberview High School following an active shooter at his school, as if I wasn’t under enough stress already, I walked into my wife’s ICU room and touched her leg and her heart stopped,” David said. “Michelle was revived, and shortly after that her kidneys failed and her liver failed.”
Although Michelle’s breathing slowly began to improve, other parts of her did not. The doctors took her off of sedation for three days, but she did not wake up. The doctors then decided to run a CT scan and MRI on both sides of her brain and discovered that Michelle had had multiple strokes on both sides.
David reports that Michelle’s organs are back in working order and that she is recovering slowly. The strokes have caused left-side paralysis and her motor skills have been affected as well. Her largest hurdle is learning to walk again at the rehab facility.
“She still is extremely weak and has paralysis on her left side and needs lots of rehab to get all of her motor skills back. And that’s a fight she’s ready to take on headfirst,” David said.
Alternate Vice President and GCA-927 General Chairperson Scott Chelette, who brought Brother Mitchell’s situation to SMART-TD’s attention, has gotten together with local chairpersons to provide Christmas gifts for David’s children.
“Brother Mitchell was especially appreciative of the fact that the International and the President’s office cared enough to want to help in any way they could. I explained to him that this is what an organization should do for each other, and he and every other member will see us getting back to that way of thinking,” Chelette said.
Local 569 Local Chairperson Lawrence Perkins is collecting Christmas gifts for the family. Gifts can be mailed to Perkins at 412 Rocky Creek Drive, Mansfield, Texas, 76063-8800. Brother Mitchell has three boys — ages 6, 9, and 16; and one daughter, age 14.
During this time, Brother Mitchell has been off work just trying to take care of his family. As a result, finances are tight with him not working, coupled with hospital and rehab bills. A GoFundMe has been set up by David to help the family during this difficult time. Click here to donate.
The lifetime maximum benefit for the Railroad Employees National Early Retirement Major Medical Benefit (ERMA or GA-46000) Plan will increase from $175,700 to $182,700 beginning Jan. 1, 2022.
At the end of 2001, labor and management had agreed on various procedures to administer the annual changes in the amount of the lifetime maximum benefit under the ERMA Plan.
In conjunction with the formula established in 2001, a new lifetime maximum was calculated by utilizing the October 2021 consumer price index (CPI) data for Hospital and Related Services and Physician Services. The result is a lifetime maximum for 2022 of $182,700.
For individuals who have reached the lifetime maximum, the incremental maximum available is applied to eligible expenses submitted for dates of service on or after the effective date of the new maximum. For 2022, this amount will be $7,000.
This change will apply to all railroads and crafts participating in ERMA.
Ferguson
Recently, Amtrak, Union Pacific and Norfolk Southern announced that they will require their employees, including those represented by SMART Transportation Division, to be vaccinated against the COVID-19 virus. It is anticipated that many of the remaining, if not all Class I rail carriers, will eventually implement similar policies, citing their status as government contractors and federal mandates as their reasons. In accordance with current guidelines, the deadline for Amtrak employees to be fully vaccinated is November 22, while the deadline for Union Pacific and Norfolk Southern employees is set for December 8. In order to be considered fully vaccinated, a 14-day period must transpire following the administration of the single-dose Johnson & Johnson vaccine, or the second dose of the Pfizer or Moderna vaccines. Under certain circumstances, some carriers are allowing regular testing as an alternative to vaccination, although federal law, guidelines and most collective bargaining agreements do not require them to do so. SMART-TD has taken the position that beyond the applicable deadlines, all carriers should allow unvaccinated employees to provide proof of regular testing as an acceptable alternative. In every instance to date, the carriers implemented their policies without first meeting with SMART-TD to bargain over the provisions of their mandates. In attempts to correct and address these exclusions, SMART-TD President Jeremy Ferguson advised all SMART-TD general committees of adjustment to schedule meetings with the carriers to discuss the implementation of any new, planned or existing policies. In his letter, he also noted that federal law provides exemptions for certain circumstances where individuals have religious objections or medical conditions that prevent them from being vaccinated. Based on initial conversations, it was determined that additional methods of appeal would be required. Due to the unilateral actions of Union Pacific, on October 15, 2021, SMART-TD filed a lawsuit in the United States District Court for Northern District of Illinois, Eastern Division, challenging the carrier’s attempt to avoid its obligation under the Railway Labor Act to bargain over terms and conditions of employment. While this action at Union Pacific is likely to set precedent for other carriers, it does not prevent SMART-TD from taking similar action against other like-minded carriers, including Amtrak and Norfolk Southern. While each policy will have nuances that the affected organizations will have to navigate, respond to, and appeal on an individual basis, SMART-TD has made it clear that any attempt by the carriers to circumvent their obligations under the Railway Labor Act will be met with strong resistance. “While vaccinations are not a collective bargaining issue, as they have not been negotiated into our agreements, we still believe that the carriers must engage with us about these policies prior to any implementation and we, in an effort of good faith, will continue our attempts to do so. We believe this is the best approach,” said President Ferguson. “We are going to let the outcome of those meetings and the advice of our general chairpersons guide our next steps. However, when these conversations with the carriers prove to be unsuccessful, then we must appeal our issues to the courts.” President Ferguson also stated “SMART-TD is a very diversified union, encompassing members of different ethnicity, age, religion, gender, sexual orientation, political affiliation and viewpoints. We are proud of that diversity and represent all members regardless of these distinctions. We lead from the front, keeping emotions in check while evaluating every issue and concern along the way. We also must research the potential outcome of these actions prior to making any formal decisions. With that being said, I will continue to encourage our members to get vaccinated, however, I respect those who have pointed out that it is a personal choice. Whatever your beliefs or vaccine status is, I want to make it clear to our members that you will be represented to the fullest extent of our authority.” As additional information becomes available and this situation continues to evolve, SMART-TD will continue to evaluate and assess its position on these issues. Updates will continue to be posted to the SMART-TD website at smart-union.org/td.
James “JP” Melton Local 904 (Evansville, Ind.) S&T Brian Hall reports that the local has opened a GoFundMe page to support CSX yardmaster and Local 1963 (Louisville, Ky.) member Jason P. Melton and his family after his 13-year-old son tragically took his own life on Sunday, Oct. 17. Melton’s son, James “JP”, was born July 1, 2008, in Madisonville, Ky., to Jason P. and Joy Morgan Melton. He is survived by his parents; sister, Lillie Melton; brother, Matthew Melton; grandparents, Alan and Kathy Morgan, Steve and Susan Melton; along with many uncles, aunts and cousins. He was preceded in death by his great-grandparents and brother, Christopher Melton. Visitation will be Wednesday, Oct. 20 from 4 to 7 p.m. and 9 a.m. on Thursday. Funeral services will be held at 11 a.m. on Thursday, Oct. 21 at Barnett-Strother Funeral Home, with burial to follow. Click here to donate via the GoFundMe page. Click here to leave condolences for the family.
CLEVELAND, October 15, 2021 — The Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET) are jointly taking on Union Pacific Railroad (UP) over a series of unilateral and unlawful actions taken by the carrier recently. SMART-TD President Jeremy Ferguson and BLET National President Dennis Pierce issued the following joint statement regarding their action:
“Over the past two weeks, the Union Pacific Railroad seems to have forgotten that it is not Walmart. The railroad has unilaterally changed pay provisions for vaccinated employees who experience a breakthrough COVID infection due to workplace exposure. It has ordered all UP employees to report that they are fully vaccinated by December 8th, or risk being medically disqualified from work. And, instead of negotiating with us as the law requires, the Carrier is directly dealing with its employees by offering a ‘financial incentive’ for compliance with its unilateral mandate.
“We generally support our members getting the vaccine. However, we have several objections to UP’s unilateral implementation of their policies mandating them and illegally dealing directly with its represented employees. The members of our Unions — including members who already are vaccinated — are irate over UP’s outrageous conduct.
“We have been in contract negotiations with UP since November of 2019, and federal law absolutely bars railroads from changing rates of pay, rules and working conditions while negotiations are ongoing. Not only is UP in violation of the law, it has explicitly spurned our demands that these matters be bargained. We have filed suit today in the United States District Court for Northern District of Illinois, Eastern Division, in an effort to stop UP’s lawlessness in its tracks.”
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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of crafts in the transportation industry. The Brotherhood of Locomotive Engineers and Trainmen represents nearly 57,000 professional locomotive engineers and trainmen throughout the United States. The BLET is the founding member of the Rail Conference, International Brotherhood of Teamsters.
October marks the beginning of Medicare’s open enrollment period for the 2022 coverage year. If you already have Railroad Medicare and want to make a change to your Part D coverage or plan, you can do so between October 15 and December 7, 2021. Any changes you make during open enrollment will take effect January 1, 2022. This period is the time to reflect on any changes that may have occurred this year, as well as the time to do a little research. You can do this on your own online, but also with a friend you didn’t know you had. The most common change people face each year is a change to their prescription medicines, either the medicines themselves or the dosages. Be sure to check your plan’s drug formulary, which you should receive in the mail prior to October 15. You can compare available Part D drug plans using the “Find a Medicare plan” online tool at https://www.medicare.gov/plan-compare. Other changes can be in the types of services that you need. Some may not be covered or covered by Medicare at the same rate as in 2021. You can research this when you receive your Medicare & You Handbook (by mail for some, online for those who have chosen to go paperless). Read the handbook carefully. There is a section called “What’s new & important” that will tell you the most critical things you need to know. The book also explains the different parts of Medicare, including what each part covers. Railroad Medicare is Part B (Medical Insurance) for persons covered under the railroad retirement system. If you would like to see the Medicare & You Handbook now, you can do so by following this web address: https://www.medicare.gov/Pubs/pdf/10050-Medicare-and-You.pdf. As for the “friend you didn’t know you had” … sometimes it’s hard to know what type of coverage you need or where to go to look and see what options you have. If this is you, then look no further than your state’s health insurance program. Every state has one, and they are manned by volunteers who have no affiliation with any health insurance programs (including Medicare). Visit the State Health Insurance Assistance Program website at https://www.shiphelp.org/ to find the phone number and website for your local SHIP. As for the 2022 Medicare annual deductible and premium information, it is not available at the time of this publication. In closing, if you have questions about SHIP or your Part B Railroad Medicare coverage, you can call Palmetto GBA’s toll-free Beneficiary Customer Service Line at 800-833-4455, Monday through Friday, from 8:30 a.m. to 7 p.m. ET. For the hearing impaired, call TTY/TDD at 877-566-3572. This line is for the hearing impaired with the appropriate dial-up service and is available during the same hours customer service representatives are available. We encourage you to visit Palmetto’s Facebook page at https://www.facebook.com/myrrmedicare. Palmetto GBA also invites you to join their email updates list. Just select the ‘Email Update’ link at the top of their main webpage at www.PalmettoGBA.com/RR/Me.
Palmetto GBA is the Railroad Specialty Medicare Administrative Contractor (RRB SMAC) and processes Part B claims for Railroad Retirement beneficiaries nationwide. Palmetto GBA is contracted by the independent federal agency Railroad Retirement Board (RRB), which administers comprehensive retirement-survivor and unemployment-sickness benefit programs for railroad workers and their families under the Railroad Retirement and Railroad Unemployment Insurance Acts.
In addition to the retirement annuities payable to railroad employees, the Railroad Retirement Act, like the Social Security Act, also provides annuities for some spouses of retired employees. Payment of a spouse annuity is made directly to the wife or husband of the employee. Divorced spouses may also qualify for benefits. The following questions and answers describe the benefits payable to spouses and the eligibility requirements. Information regarding divorced spouses begins with question eight. 1. How are Railroad Retirement spouse annuities computed? Regular Railroad Retirement annuities are computed under a two-tier formula. The Tier I portion of an employee’s annuity is based on both Railroad Retirement credits and any Social Security credits that the employee earned. Computed using Social Security benefit formulas, an employee’s Tier I benefit approximates the Social Security benefit that would be payable if all of the employee’s work were performed under the Social Security Act. The Tier II portion of the employee’s annuity is based on Railroad Retirement credits only, and may be compared to the retirement benefits paid over and above Social Security benefits to workers in other industries. The spouse annuity formula is based on percentages of the employee’s Tier I and Tier II amounts. The first tier of a spouse annuity, before any applicable reductions, is 50% of the railroad employee’s unreduced Tier I amount. The second tier amount, before any reductions, is 45% of the employee’s unreduced Tier II amount. 2. How does a Railroad Retirement spouse annuity compare to a Social Security spouse benefit? The average annuity awarded to spouses in fiscal year 2020, excluding divorced spouses, was $1,130 a month, while the average monthly Social Security spouse benefit was about $744. Annuities awarded in fiscal year 2020 to the spouses of employees who were of full retirement age or over and who retired directly from the rail industry with at least 25 years of service averaged $1,410 a month, and the average award to the spouses of employees retiring at age 60 or over with at least 30 years of service was $1,602 a month. 3. What are the age requirements for a Railroad Retirement spouse annuity? The age requirements for a spouse annuity depend on the employee’s age, date of retirement and years of railroad service. If a retired employee with 30 or more years of service is age 60 or older, the employee’s spouse is eligible for an annuity the first full month the spouse is age 60. Certain early retirement reductions are applied if the employee first became eligible for an annuity July 1, 1984, or later and retired at ages 60 or 61 before 2002. If the employee was awarded a disability annuity, has attained age 60, and has 30 years of service, the spouse can receive an unreduced annuity the first full month she or he is age 60, regardless of whether the employee annuity began before or after 2002, as long as the spouse’s annuity beginning date is after 2001. If a retired employee with less than 30 years of service is age 62 or older, the employee’s spouse is eligible for an annuity the first full month the spouse is age 62. Early retirement reductions are applied to the spouse annuity if the spouse retires prior to full retirement age. The full retirement age for a spouse is gradually rising to age 67, just as for an employee, depending on the year of birth. Reduced benefits are still payable at age 62, but the maximum reduction will be 35% rather than 25% by the year 2022. However, the Tier II portion of a spouse annuity will not be reduced beyond 25% if the employee had any creditable railroad service before August 12, 1983. 4. What if the spouse is caring for a child of the retired employee? A spouse of an employee who is receiving an age and service annuity (or a spouse of a disability annuitant who is otherwise eligible for an age and service annuity) is eligible for a spouse annuity at any age if caring for the employee’s unmarried child, and the child is under age 18 or a disabled child of any age who became disabled before age 22. 5. What are some of the other general eligibility requirements for a Railroad Retirement spouse annuity? The employee must have been married to the spouse for at least one year, unless the spouse is the natural parent of their child, or the spouse was eligible or potentially eligible for a Railroad Retirement widow(er)’s, parent’s or disabled child’s annuity in the month before marrying the employee or the spouse was previously married to the employee and received a spouse annuity. 6. Can the same-sex spouse of a railroad employee file for a Railroad Retirement spouse annuity? Yes, if the same-sex spouse meets current spouse annuity eligibility requirements and follows current application procedures. 7. Are spouse annuities subject to offset for the receipt of other benefits? Yes. The Tier I portion of a spouse annuity is reduced for any Social Security entitlement, regardless of whether the Social Security benefit is based on the spouse’s own earnings, the employee’s earnings or the earnings of another person. This reduction follows principles of Social Security law which, in effect, limit payment to the higher of any two or more benefits payable to an individual at one time. The Tier I portion of a spouse annuity may also be reduced for receipt of any federal, state or local government pension separately payable to the spouse based on the spouse’s own earnings. The reduction generally does not apply if the employment on which the public service pension is based was covered under the Social Security Act throughout the last 60 months of public employment. Most military service pensions and payments from the Department of Veterans Affairs will not cause a reduction. Pensions paid by a foreign government or interstate instrumentality will not cause a reduction. For spouses subject to a public service pension reduction, the Tier I reduction is equal to 2/3 of the amount of the public service pension. In addition, there may be a reduction in the employee’s Tier I amount for receipt of a public pension based, in part or in whole, on employment not covered by Social Security or Railroad Retirement after 1956. If the employee’s Tier I benefit is offset for a non-covered service pension, the spouse Tier I amount is 50% of the employee’s Tier I amount after the offset. The spouse Tier I portion may also be reduced if the employee is under age 65 and is receiving a disability annuity as well as worker’s compensation or public disability benefits. While these offsets can reduce or even completely wipe out the Tier I benefit otherwise payable to a spouse, they do not affect the Tier II benefit potentially payable to that spouse. 8. How do the eligibility requirements and benefits differ for a divorced spouse? A divorced spouse annuity may be payable to the divorced wife or husband of a retired employee if their marriage lasted for at least 10 consecutive years, both have attained age 62 for a full month, and the divorced spouse is not currently married. A divorced spouse can receive an annuity even if the employee has not retired, provided they have been divorced for a period of not less than two years, the employee and former spouse are at least age 62, and the employee is fully insured under the Social Security Act using combined railroad and Social Security earnings. Early retirement reductions are applied to the divorced spouse annuity if the divorced spouse retires prior to full retirement age. Full retirement age for a divorced spouse is gradually rising to age 67, depending on the year of birth. A divorced spouse is also eligible for an annuity at any age if caring for the employee’s unmarried child, and the child is under age 18, or a disabled child of any age who became disabled before age 22, if the employee is deceased. Unlike a regular spouse annuity, the divorced spouse annuity is computed under the single-Tier I formula. The amount of a divorced spouse’s annuity is, in effect, equal to what Social Security would pay in the same situation (Tier I only) and therefore less than the amount of the spouse annuity otherwise payable (Tier I and Tier II). The average divorced spouse annuity awarded in fiscal year 2020 was $768. 9. Would the award of an annuity to a divorced spouse affect the monthly annuity rate payable to a retired employee and/or the current spouse? No. If a divorced spouse becomes entitled to an annuity based on the employee’s railroad service, the award of the divorced spouse’s benefit would not affect the amount of the employee’s annuity, nor would it affect the amount of the Railroad Retirement annuity that may be payable to the current spouse. 10. What if an employee and spouse/divorced spouse are both railroad employees? If both started railroad employment after 1974, the amount of any spouse or divorced spouse annuity is reduced by the amount of the employee annuity to which the spouse is also entitled. If both the employee and spouse are qualified railroad employees and either had some railroad service before 1975, both can receive separate Railroad Retirement employee and spouse annuities, without a full dual benefit reduction. 11. Are Railroad Retirement annuities subject to garnishment or property settlements? Yes. Certain percentages of any Railroad Retirement annuity (employee, spouse, divorced spouse or survivor) may be subject to legal process (i.e., garnishment) to enforce an obligation for child support and/or alimony payments. Employee Tier II benefits and supplemental annuities are subject to court-ordered property divisions in proceedings related to divorce, annulment or legal separation. (Tier I benefits are not subject to property division.) A court-ordered property division payment may be paid even if the employee is not entitled to an annuity provided that the employee has 10 years of railroad service or five years after 1995 and both the employee and former spouse are at least age 62. 12. How can a person get more information about Railroad Retirement spouse and divorced spouse annuities? Individuals with questions about Railroad Retirement spouse and divorced spouse annuities can send a secure message to their local RRB office by accessing Field Office Locator at RRB.gov and clicking on the link at the bottom of their local office’s page. If a customer needs to talk to an RRB representative, they can call the agency’s toll-free number (1-877-772-5772) between the hours of 9 a.m. and 3 p.m. each weekday, except Federal holidays. However, customers are asked to be patient because of the increase in call volume due to the closure to the public of RRB offices during the COVID-19 pandemic.
Terri Poole Taylor Kerns, 52, of Local 1971 (Atlanta, Ga.) lost her life to COVID-19 on Friday, September 10. Diagnosed with COVID-19 on August 24, she was hospitalized Sunday, August 29 with severe chest pains. After suffering from cardiac arrest, she passed in the early hours of Sept. 10. KernsGraduating from high school in 1987, Kerns worked in the food industry before deciding on a career change. She hired out with Norfolk Southern, where she would work for 20 years, earning her engineer and conductor certifications and working her way up to the position of yardmaster. In her free time Kerns enjoyed family vacations on the beach. Her true passion was spending time with her husband, children and grandchildren. “Terri had a great love for her family. Family was everything to Terri, and she left an indescribable imprint on all of us,” her younger sister Joy Poole said. She’s survived by her husband of 21 years, Paul Henry Kerns Jr. aka PJ; four children, Drew (Sadina) Kerns, Shadonna Kerns, Madison Kerns and Dominique Kerns; two grandsons, Ameer and Zelmeer Kerns; two sisters, Rhonda (James) Poole Farley and Joy (Greg Cowan) Poole; and many in-laws, nieces, nephews, aunts, uncles and cousins. Kerns is preceded in death by her parents, Oddis Theodore Poole Jr. and Patsy Mitchell Arey; grandparents; mother-in-law, Bonnie Jo Kerns; niece, Mariah Turner; nephew, Andrew Sifford; and great nephew, Xander Tucker. SMART-TD offers their sincere condolences to all who knew and worked with Kerns, as well as her friends and family. Click here to leave condolences for the family.
Railroad Retirement benefits are based on months of service and earnings credits. Earnings are creditable, up to certain annual maximums, on the amount of compensation subject to Railroad Retirement taxes. Credit for a month of railroad service is earned for every month in which an employee had some compensated service covered by the Railroad Retirement Act. (Local lodge compensation is disregarded for any calendar month in which it is less than $25. However, work by a local lodge or division secretary collecting insurance premiums, regardless of the amount of salary, is creditable railroad work.) Also, under certain circumstances, additional service months may be deemed in some cases where an employee does not actually work in every month of the year. The following questions and answers describe the conditions under which an employee may receive additional Railroad Retirement service month credits under the deeming provisions of the Railroad Retirement Act. 1. What requirements must be met before additional service months can be deemed? A service month can be deemed if an employee has less than 12 service months reported in the year, has sufficient compensation reported and is in an “employment relation” with a covered railroad employer, or is an employee representative, during that month. (An employee representative is a labor official of a non-covered labor organization who represents employees covered under the acts administered by the Railroad Retirement Board.) For this purpose, an “employment relation” generally exists for an employee on an approved leave of absence (for example, furlough, sick leave, suspension, etc.). An “employment relation” is severed by retirement, resignation, relinquishing job rights in order to receive a separation allowance or termination. 2. How is credit for additional service months computed? For additional service months to be deemed, the employee’s compensation for the year, up to the annual Tier II maximum, must exceed an amount equal to 1/12 of the Tier II maximum multiplied by the number of service months actually worked. The excess amount is then divided by 1/12 of the Tier II maximum; the result, rounded up to the next whole number, equals the maximum number of months that may be deemed as service months for that year. Fewer months may be deemed, if an employment relation, as defined in Question 1, does not exist. 3. An employee works seven months in 2021 before being furloughed, but earns compensation of $108,000. How many deemed service months could be credited to the employee? The employee could be credited with five additional service months. One-twelfth of the 2021 $106,200 Tier II maximum ($8,850) times the employee’s actual service months (seven) equals $61,950. The employee’s compensation in excess of $61,950 up to the $106,200 maximum is $44,250, which divided by $8,850 equals five. Therefore, five deemed service months could be added to the seven months actually worked and the employee would receive credit for 12 service months in 2021. 4. Another employee works for seven months in 2021 and earns compensation of $85,200. How many deemed service months could be credited to this employee? In this case, the excess amount ($85,200 minus $61,950) is $23,250, which divided by $8,850 equals 2.627. After rounding, this employee could receive credit for three deemed service months and be credited with a total of 10 months of service in 2021. 5. Another employee works for eight months in 2021 before resigning on August 15, but earns compensation of $91,000. How many deemed service months could be credited to this employee? None. Since the employee resigned in August, there is no employment relationship for the remaining months and no additional service months may be deemed and credited. 6. Should an employee preparing to retire take deemed service months into account when designating the date his or her Railroad Retirement annuity begins? An employee may wish to consider credit for deemed service months in selecting an annuity beginning date. For instance, in some cases, a designated annuity beginning date that considers deemed service months could be used to establish basic eligibility for certain benefits, increase an annuity’s Tier II amount, or establish a current connection, as illustrated in Questions 7, 8 and 9, respectively. It should be noted that service months cannot be deemed after the annuity beginning date. 7. What would be an example of using deemed service months to establish benefit eligibility? An example would be an employee between the ages of 60 and 62 who might be able to use deemed service months to establish the 360 months of service needed to qualify for an unreduced age annuity prior to full retirement age. For instance, a 60-year-old employee last performed service on May 15, 2021, and received $61,800 in compensation in 2021. She is credited with 358 months of creditable railroad service through May 2021. If the employee wishes to retire on age, she must wait until she is full retirement age, which ranges between 66 and 67 depending upon the employee’s year of birth, or age 62 if she is willing to accept an age-reduced annuity. She needs at least two additional months of service to establish eligibility for an unreduced annuity prior to full retirement age. The employee’s excess amount ($61,800 minus $44,250) is $17,550, which divided by $8,850 equals 1.983. Therefore, two deemed service months could be added to the five months actually worked and the employee would receive credit for seven service months in 2021 for a total of 360 service months, allowing her to receive an unreduced annuity beginning July 2, 2021. 8. How could deemed service months be used to increase an employee’s Tier II amount? An employee worked in the first five months of 2021 and received compensation of $59,500. He does not relinquish his rights until July 2, 2021, and applies for an annuity to begin on that date. The excess amount ($59,500 minus $44,250) is $15,250, which divided by $8,850 equals 1.723, which yields two deemed service months for a total of seven service months in 2021. Had the employee relinquished his rights and applied for an annuity to begin on July 1, he would have been given credit for only six service months. The employee received the maximum compensation in all of the last five years and had 360 months of service through 2020. The additional service and compensation increases his Tier II from $1,726.75 to $1,746.92. However, delaying the annuity beginning date past the second day of the month after the date last worked solely to increase the Tier II amount would not generally be to the employee’s advantage. 9. Can deemed service months help an employee establish a current connection? Yes. For example, an employee left the railroad industry in 2002 and engaged in employment covered by the Social Security Act. In August 2020, she returned to railroad employment and worked through June 28, 2021. She received compensation of $53,650 in 2021. She does not relinquish her rights until July 2, 2021, and applies for an annuity to begin on July 2, 2021. In this case, the excess amount ($53,650 minus $53,100) is $550, which divided by $8,850 equals 0.0621, which yields one deemed service month. Consequently, the employee is given credit for seven service months in 2021. With five months of service in 2020 and seven months in 2021, the employee establishes a current connection. Had she designated the earliest annuity beginning date permitted by law, she would not have met the 12-in-30-month requirement for a current connection. (An employee who worked for a railroad in at least 12 months in the 30 months immediately preceding the month his or her Railroad Retirement annuity begins will meet the current connection requirement for a supplemental annuity, occupational disability annuity or survivor benefits.) 10. Can an employee ever receive credit for more than 12 service months in any calendar year? No. Twelve service months are the maximum that can be credited for any calendar year. 11. Where can an employee get more information on how deemed service months could affect his or her annuity? Employees with questions about deemed service months can send a secure message to their local RRB office by accessing Field Office Locator at RRB.gov and clicking on the link at the bottom of their local office’s page. If a customer needs to talk to an RRB employee, they can call the agency’s toll-free number (1-877-772-5772). However, customers are asked to be patient because of the increase in call volume due to the closure to the public of RRB offices during the COVID-19 pandemic.
October marks the beginning of Medicare’s open enrollment period for the 2022 coverage year. If you already have Railroad Medicare and want to make a change to your Part D coverage or plan, you can do so between October 15 and December 7, 2021. Any changes you make during open enrollment will take effect January 1, 2022.
In addition to the retirement annuities payable to railroad employees, the Railroad Retirement Act, like the Social Security Act, also provides annuities for some spouses of retired employees. Payment of a spouse annuity is made directly to the wife or husband of the employee. Divorced spouses may also qualify for benefits.