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As the COVID-19 pandemic raged across the nation, nearly all intercity passenger transportation ceased almost overnight. In 2020, air carriers ferried their fewest passengers in three decades, registering months with as much as 96% fewer boardings compared to the prior year. Amtrak saw its ridership decrease 97% as business travel along the profitable Northeast Corridor evaporated. As many as 800 motorcoach companies shuttered, and cruise lines ceased all operations in compliance with CDC orders. While the federal government has taken important steps to mitigate the devastation caused to transportation services, employees and communities, in many corners of the nation these effects have been catastrophic. As we emerge from the pandemic, it is imperative that we begin flying, riding and traveling again—and that we do so safely. Our national economic recovery, and the livelihoods of millions of transportation workers, depends on it.
The most essential factor in the restoration of passenger transportation is the promise that travel will be safe and that COVID-19 risks have been properly mitigated for passengers and frontline transportation workers. We wholeheartedly applauded President Biden’s common-sense Executive Order on Promoting COVID-19 Safety in Domestic and International Travel, which came during one of the darkest stages of the pandemic. At a time when new daily COVID-19 cases averaged over 150,000 and the vaccines were not available to the vast majority of Americans, this order mandated the wearing of masks on many forms of transportation for both workers and passengers. While enforcement has proven to be challenging at many transportation operations, this standard must remain in place until COVID-19 has been defeated.
Perhaps more important is the ongoing need to complete the most ambitious mass-vaccination campaign in world history. While mask usage and current levels of inoculation have begun to bear fruit in terms of passenger volume, many more vaccinations are required before travel across modes returns to pre-COVID levels. In this regard, there are three tenets of vaccination efforts that must be realized.
First, transportation workers, including flight crews, conductors, drivers and other at-risk employees must have access to vaccines. As of April 21, 2021, all states are allowing any adult to receive a vaccine, but in many cases rollouts have been uneven, and challenges have persisted particularly for employees who are frequently away from their place of residence where they qualify for vaccines. States and employers should continue to focus on making sure that the workers who put their lives on the line each day to keep intercity transportation running have the ability to receive vaccines, and should pursue remedies where challenges in doing so have arisen.
Secondly, to further stimulate demand for domestic travel, it is essential that efforts to vaccinate the population broadly continue unabated. We are encouraged by the rates at which Americans are currently being vaccinated and we are optimistic for the sustained upward trajectory required for a return to normalcy.
Finally, such a return will also require international efforts. For both the safety of flight crews who travel through foreign airports and cities, and for renewed demand for international business and tourist travel, conquering the virus globally is also essential. This effort must not be neglected.
Over the last year, Congress recognized the crisis looming for intercity passenger transportation and its workforce, implementing a series of programs and emergency spending intended to keep workers on payroll and connected to critical benefits like healthcare, and to prevent against an economic collapse triggered by a wave of bankruptcies of major U.S. companies. These measures have been a vital lifeline and their continuing implementation will be instrumental in the return of intercity passenger service.
For airlines and airline contractors, the Payroll Support Program (PSP) has been extremely successful in protecting employees from the brunt of the rapid drop in air travel due to the pandemic, and hundreds of thousands of employees have continued to be able to pay their bills and seek medical care due to the program. Treasury should continue to disperse funds appropriated for the PSP, including through the American Rescue Plan, and continue to observe the firewall between government assistance and employee collective bargaining agreements included in the CARES Act and the Consolidated Appropriations Act, 2021.
Amtrak has also received substantial funding through COVID legislation, which will ensure that the rail carrier and its workforce are prepared to respond to increased demand as the pandemic abates. The American Rescue Plan required Amtrak to restore its long-distance service and recall all furloughed employees within 90 days — smartly ensuring that relief was directed to employees and service maintenance. The restoration of long-distance service, reduced to three times a week from pre-COVID daily service on most routes revitalizes critical connections between urban hubs and rural communities, and promotes the future of these lines by underscoring their reliability and consistent presence to the riders who rely on them. The recall of approximately 1,200 furloughed employees and prohibitions on further furloughs will not only benefit workers on the unemployment lines, but is required to meet the service demands that we hope and expect to see shortly. Amtrak must act to restore its service and employees in an expeditious manner, and should seek to comply with statutory requirements well in advance of Congress’ deadlines.
In the second COVID relief bill, H.R. 133, Congress wisely included the CERTS Act, which sought to provide funding to transportation entities that had previously received aid, including school bus contractors, non-transit ferry services and motorcoach operators. Despite its passage on December 27 of last year, the Trump administration Treasury took no actions to make the grants available to entities that badly needed them. We call on the Treasury to dispense these grants as soon as possible. This is particularly necessary given the dire straits the motorcoach industry currently finds itself in. Motorcoach operators previously provided over 500 million passenger trips per year, serving both urban and rural travelers. However, given how many companies have already closed their doors, or are on the precipice of doing so, if aid is not promptly dispersed, the post-COVID economy may find itself deeply lacking in critical intercity passenger bus service.
While Congress correctly did not provide direct aid to cruise line operators who have chosen to flag their vessels in foreign countries, the resumption of cruise line service is important for the recovery of cruise port cities like Miami, and the thousands of longshore workers who prepare these vessels for voyage. We call on the CDC to only revise its No-Sail Order when it is deemed safe to do so. We also urge the CDC to consider the health and safety of longshore workers in any future guidance on the resumption of cruise line travel.
Finally, one of the most impactful actions the federal government can take to restore intercity passenger transportation is passing legislation that makes bold investments in our nation’s infrastructure, which this body has consistently called for. There is a real opportunity right now for the federal government to make the types of generational investments into our transportation systems that will not only help us recover economically and restore passenger transportation to pre-COVID levels, but also to build a system that can once again be the envy of the world. We can modernize and upgrade across every mode, and expand service throughout the country, especially to communities that have historically been underserved. In doing so we can rebuild our economy, create jobs and support the millions of transportation workers who keep America moving.

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The Transportation Trades Department, AFL-CIO, (TTD) is a coalition of 33 member unions, including the SMART Transportation Division, that provides a bold voice for workers in every mode of transportation – both in the private and public sector – and is devoted to protecting middle-class jobs, expanding collective bargaining, and ensuring modern, safe, and secure transportation operations and infrastructure.

Legislators in both the North Carolina state House and Senate have introduced bills to keep freight rail operations on the state’s more than 3,300 miles of track running safely and efficiently. A bus safety bill is also in the works in the state.
H.B. 408 and S. 348 require a crew of at least two qualified people in the operating locomotive of trains transporting cargo and hazardous materials in the state for public safety. H.B. 408 has four bipartisan primary sponsors including Rep. Wayne Sasser (R – Dist. 67), Rep. Carolyn Logan (D – Dist. 101), Rep. Charles Graham (D – Dist. 47) and Rep. Verla Insko (D – Dist. 56), and 30 co-sponsors. The Senate version of the bill got a late start due to the Ninth Circuit court ruling and so S. 348 only has two Democratic primary sponsors including Sen. Sarah Crawford (D – Dist. 18) and Sen. Julie Mayfield (D – Dist. 49), and three co-sponsors. Both bills have had their first reading and have been referred to the Transportation Committee and Rules Committee, respectively.

Ron Ingerick, SMART-TD North Carolina state legislative director

“It is vitally important to maintain the presence of two crew members in the locomotive,” said Ron Ingerick, North Carolina state legislative director of the SMART Transportation Division. “Despite any advances in technology, there is a safety factor called ‘the Rule of 2’ in having the engineer and the conductor in the cab, just like how airplanes have pilots and co-pilots. With the size and complexity of the modern freight train, each crew member has responsibilities, and simultaneously performs duties in providing safe and efficient operation. These crew members are the first responders to a grade crossing collision, derailment or other emergency situation.
“The public safety of our communities is non-negotiable, and H.B. 408 and S. 348 will help prevent potential accidents or derailments. The citizens of North Carolina deserve to feel safer with two crew members in the cab in the trains that roll through their communities, day and night.”
Another bill filed in the House looks to curtail railroads’ use of giant trains that block crossings. H.B. 438, filed March 29, has three Republican representatives as primary sponsors: Rep. Howard Penny (R – Dist. 53), Rep. Jerry Carter (R – Dist. 65) and Rep. Mike Clampitt (R – Dist. 119). The bi-partisan bill currently has 21 co-sponsors — two of which are the Chairman and Vice Chairman of the Transportation Committee — and is still accepting more. H.B. 438 intends to place a limitation on train length, which has been growing from an average length of a mile and a half five years ago to now sometimes exceeding four miles. The main culprit is an operating strategy initiated in 2017 by the nation’s biggest railroads called Precision Scheduled Railroading (PSR).
“Since the evolution of PSR, trains in this state have increased in length and weight, with haphazard train builds, fewer safety-critical inspections, and maintenance being deferred —increasing the risk of derailments,” said Ingerick, who is an active railroader, as well as our N.C. state legislative director who brings awareness to legislators in Raleigh. “A train that is longer is harder to operate. Also, concerns have risen from local communities and emergency responders as these longer trains have increased instances of blocked crossings.”
Blocked rail crossings cause an inconvenience for motorists, who must find alternate routes, especially in rural areas. They also pose a safety risk to pedestrians who may attempt to go under or climb over rail cars to continue their travels. A blocked crossing can play a part in delaying or detouring emergency responses when seconds or minutes count, sending responders out of their way when their aid is needed.
“Railroads are looking at returns and how their stocks are doing on Wall Street,” Ingerick said. “PSR puts safety last and profit first and makes a dangerous business even riskier.”
Lastly, Ingerick reports that the Bus Safety Risk Reduction Act has been released from bill drafting and will be filed in the coming week. The bill will include risk analysis, barriers, de-escalation training and data collection.
“Overall, I feel that we’re in a good position right now concerning these bills, but we need continued involvement from the membership in order to get these bills passed,” Ingerick said.

Employers and employees covered by the Railroad Retirement Act pay higher retirement taxes than those covered by the Social Security Act. As a result, Railroad Retirement benefits are higher than Social Security benefits, especially for “career” employees (those employees who have 30 or more years of service).
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, 2020. 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 2020 to career rail employees was $3,735 a month, and for all retired rail employees the average was $2,985. The average age retirement benefit being paid under Social Security was approximately $1,505 a month. Spouse benefits averaged $1,090 a month under Railroad Retirement compared to $765 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 with railroad service prior to October 1981 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 in fiscal year 2020 averaged about $4,370 a month while monthly benefits awarded to workers retiring at full retirement age under Social Security averaged nearly $2,070. If spouse benefits are added, the combined benefits for the employee and spouse would total $6,115 under Railroad Retirement coverage, compared to $3,105 under Social Security. Adding a supplemental annuity to the railroad family’s benefit increases average total benefits for current career rail retirees to about $6,135 a month.
3. How much are the disability benefits currently awarded?
Disabled railroad workers retiring directly from the railroad industry in fiscal year 2020 were awarded $3,160 a month on average while awards for disabled workers under Social Security averaged $1,415.
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 employees who are disabled for work in their regular railroad occupation. 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). Full retirement age is age 66 for those born 1943 through 1954 and is gradually rising 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. Can the spouse of a railroader receive a benefit at an earlier age than the spouse of a worker under Social Security?
If a retired railroad employee with 30 or more years of service is age 60, the employee’s spouse is also eligible for an annuity the first full month the spouse is age 60. The spouse of a worker under Social Security is not eligible for a spouse benefit based on age until both the worker and the spouse are at least age 62. Regardless of age, the spouses of workers under both retirement systems are eligible if the worker is retired and the spouse is caring for a qualifying child.
6. 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, whereas the RRB only pays children’s benefits if the employee is deceased.
However, the Railroad Retirement Act includes a special minimum guaranty provision, which 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.
7. 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 2020, the average annuity being paid to all aged and disabled widow(er)s was $1,825 a month, compared to $1,380 under Social Security.
Benefits awarded by the RRB in fiscal year 2020 to aged and disabled widow(er)s of railroaders averaged about $2,340 a month, compared to approximately $1,355 under Social Security.
The annuities being paid at the end of fiscal year 2020 to widowed mothers/fathers averaged $1,990 a month and children’s annuities averaged $1,195, compared to $1,030 and $900 a month for widowed mothers/fathers and children, respectively, under Social Security.
Those awarded in fiscal year 2020 averaged $1,780 a month for widowed mothers/fathers and $1,545 a month for children under Railroad Retirement, compared to $1,015 and $905 for widowed mothers/fathers and children, respectively, under Social Security.
8. 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 $1,030. 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.
9. 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%, consisting of 6.20% for retirement on earnings up to $142,800 in 2021, and 1.45% for Medicare hospital insurance on all earnings. An additional 0.9% in Medicare taxes (2.35% in total) will be withheld from employees on earnings above $200,000.
In addition, rail employees and employers both pay Tier II taxes, which are used to finance Railroad Retirement benefit payments over and above Social Security levels. In 2021, the Tier II tax rate on earnings up to $106,200 is 4.9% for employees and 13.1% for employers.
10. How much are regular Railroad Retirement taxes for an employee earning $142,800 in 2021 compared to Social Security taxes?
The maximum amount of regular Railroad Retirement taxes that an employee earning $142,800 can pay in 2021 is $16,128, compared to $10,924.20 under Social Security. For railroad employers, the maximum annual regular retirement taxes on an employee earning $142,800 are $24,836.40, compared to $10,924.20 under Social Security. Employees earning over $142,800 and their employers will pay more in retirement taxes than the above amounts because the Medicare hospital insurance tax is applied to all earnings.

John Bragg, Labor Member of the RRB

Brothers and Sisters,
As you may have heard, Congress recently enacted legislation to provide some financial relief to railroaders. In the legislation entitled the American Rescue Plan Act of 2021 (ARPA), Congress essentially extended the benefits originally created by the CARES Act. This legislation provides for the following benefits:

  • A recovery benefit of $600 per two-week unemployment registration period. This extends the benefit that was established through legislation at the end of December and was due to expire March 14, 2021.  As a result, employees receiving unemployment benefits will continue to receive an additional $600 per registration period. This benefit ends with registration periods that begin after September 6, 2021.
  • Extended unemployment benefits for employees who have otherwise exhausted benefits. Now, in combination with previous legislation, an additional 200 days within 20 additional consecutive two-week registration periods are payable. These extended benefits are available for days of unemployment on or after December 28, 2020. No additional days are available for registration periods beginning after September 6, 2021.
  • Waiver of the seven-day waiting period for unemployment and sickness benefits. This was also extended to September 6, 2021.

In addition, ARPA provides that up to $10,200 in unemployment benefits may be exempt from income tax. This provision is administered by the IRS and they have more information here: New exclusion of up to $10,200 for unemployment benefits.
Finally, as you know, the Railroad Retirement Board’s (RRB)’s budget has remained flat for several years now and as a result, agency resources have been limited. ARPA provided a much-needed supplemental appropriation for the agency’s administrative budget. ARPA appropriated the remaining amount needed for the RRB’s multi-year IT modernization plan which will eventually provide more online services to railroaders and their families. In addition, it appropriated $6.8M for agency hiring related to the pandemic for the next two years. The RRB intends to hire staff in field service as well as in the unit at headquarters that handles sickness and unemployment applications. We hope that these additional hires will improve customer service.
As with previous legislation, the RRB has updated the information on its website with the details regarding these benefits. You can find the FAQs here: Coronavirus FAQs. Also, with most RRB field offices still closed to the public because of the pandemic, the agency is again reminding customers of the self-service options available to them to help avoid lengthy wait times. I encourage all railroaders to set up a myRRB.gov account on the RRB.gov website to help avoid any possible delays. To establish an account, employees should go to RRB.gov/myRRB and click on the button labeled SIGN IN WITH LOGIN.GOV at the top of the page. This directs them to login.gov where they will be guided through the process of creating an account and verifying their identity — which takes about 20 minutes to complete. Once an employee’s identity is verified, they will be prompted to sign in to their account and then return to myRRB.

In April, the Hazardous Materials Training Program is planning to host three courses virtually:

  1. Disaster Recovery/Response Course (2 hours)
  2. COVID-19 and Infectious Disease Response Awareness Training Course (90 minutes)
  3. DOT Hazardous Materials Awareness Course (8 hours over two days)

The Disaster Response Recovery course is training for workers and community members who live and work in areas that are likely to be impacted by a hurricane. The course satisfies the requirements to assist workers and communities in recovery from natural and man-made disasters. The class will be conducted April 7, 2021, and April 9, 2021, at noon ET on both days.
The COVID-19 and Infectious Disease Response Awareness Training course is designed to increase workers’ knowledge of hazards they may encounter on a job site related to potential occupational exposures to SARS CoV-2 virus that causes COVID-19. During this 90-minute course, attendees will learn what SARS-CoV-2 is, how it is spread, symptoms, how to protect workers, how to properly clean and disinfect your work area and about vaccinations for COVID-19. The online virtual training will include breakout groups, exercises and demonstrations. This course will be April 16 and April 23, 2021, at 2 p.m. ET on both days.
The DOT Hazardous Materials Awareness course, also called the Hazardous Materials Transportation Safety and Security Course, provides safety and security awareness training that is required by the Department of Transportation (DOT) for hazmat transportation workers. This course also provides OSHA first responder – awareness-level training. The course is intended for railroad workers who are involved in the transportation of hazmat and who may be the first on the scene or the first to witness a release of hazardous materials or be aware of a security threat. Various topics will be addressed during the 8-hour (4 hours per day) course held over two days such as the role of the first responder, federal regulatory agencies, DOT’s regulations on hazmat, recognizing and identifying hazmat in transportation and more (see flyer). The class is being offered April 19 – 20, 2021, and April 28 – 29, 2021, from 10 a.m. to 2 p.m. ET. An incentive of $175 is available to participants who complete this course.
Contact the Rail Workers Hazmat Training Program by calling 202-624-6963 (9 a.m. – 5 p.m. ET Monday – Friday).
Click here for a flyer to hang at your workplace.
Click here to register.

The Rail Workers Hazardous Materials Training Program is funded by a federal grant from the National Institute of Environmental Health Sciences (NIEHS) to provide hazmat training to rail workers.
The goal of this training initiative is to provide rail workers with the skills and knowledge necessary to protect themselves, the community, and the environment in a hazardous materials transportation emergency. To achieve this goal, the Rail Workers Hazardous Materials Training Program provides rail workers, through quality hazardous materials training courses, the confidence in their knowledge and problem-solving skills to enable them to make change for safer work conditions.
Much of the training is provided by peer instructors who are full-time rail workers — members and/or local officers of affiliated rail unions.

The Railroad Retirement Board’s Customer Service Plan promotes the following principles of quality public service: openness, accessibility, accountability, feedback and timeliness standards. An important part of the Customer Service Plan is its pledge to inform beneficiaries about how well the RRB meets those timeliness standards, which detail the number of calendar days within which the agency must decide to pay or deny an application for benefits.
The following questions and answers provide information about the RRB’s performance in meeting its standards in the key areas of retirement applications, survivor applications, disability applications and payments, and railroad unemployment and sickness benefit applications and claims during fiscal year 2020 (October 1, 2019 – September 30, 2020). Information on the agency’s overall performance, as measured by the timeliness index developed by the agency, and the RRB’s customer service timeliness goals for fiscal year 2020 are also provided. These goals may be revised annually based on such factors as projected workloads and available resources.
1. How does the RRB measure overall timeliness for customer service?
The RRB developed an index to measure the overall timeliness of its customer service in the following benefit areas: retirement applications, survivor applications, disability applications and payments, and railroad unemployment and sickness benefit applications and claims. This composite indicator, based on a weighted average, allows for a more concise and meaningful presentation of the RRB’s customer service efforts in these benefit areas.
2. What was the overall timeliness of the RRB’s customer service in fiscal year 2020?
During fiscal year 2020, the overall benefit timeliness index was 99%. This means that the RRB provided benefit services within the Customer Service Plan’s standards 99% of the time. The timeliness index for retirement applications, survivor applications, and disability applications and payments, the processing of which includes considerable manual intervention, was 90.9%. The timeliness index for railroad unemployment and sickness benefit applications and claims, a highly automated process, was 99.7%.
3. What standards did the RRB use in fiscal year 2020 for processing applications for Railroad Retirement annuities, and how well did it meet those standards?
In fiscal year 2020, the RRB had two timeliness standards for processing Railroad Retirement annuities. For Railroad Retirement annuity applications filed in advance of an applicant’s eligibility date, the RRB’s standard was that it would make a decision to pay or deny the application within 35 days of the requested annuity beginning date. For applications filed after the eligibility date, the RRB’s standard was that it would make a decision within 60 days of the filing date. The RRB’s timeliness goals in fiscal year 2020 were 94% for both advance filing and non-advance filing applications.
Of the cases processed during fiscal year 2020, the RRB made a decision within 35 days of the annuity beginning dates on 96.4% of applicants who filed in advance, with an average processing time for these cases of 13.4 days. Of the cases processed during fiscal year 2020, the RRB made a decision within 60 days of the filing dates on 97.5% of applicants who had not filed in advance, with an average processing time of 17 days.
4. What standards did the RRB use for processing applications for survivor benefits in fiscal year 2020, and how well did it meet those standards?
The timeliness standard in fiscal year 2020 within which the RRB would make a decision to pay, deny or transfer the application to the Social Security Administration for a Railroad Retirement survivor annuity applicant not already receiving benefits as a spouse, was within 60 days of the applicant’s annuity beginning date, or the date the application was filed, whichever was later. For an applicant that was already receiving a spouse annuity, the RRB’s standard in fiscal year 2020 was within 30 days of the first notice of the employee’s death. For an applicant who filed for a lump-sum death benefit, the RRB’s standard in fiscal year 2020 was to make a decision to pay or deny the application within 60 days of the date the application was filed. The timeliness goal for fiscal year 2020 was 94% for processing both initial survivor applications and spouse-to-survivor conversions. For processing applications for lump-sum death benefits, the goal was 97%.
Of the cases processed during fiscal year 2020, the RRB made a decision within 60 days of the later of the annuity beginning date or the date the application was filed in 95% of the applications for an initial survivor annuity. In cases where the survivor was already receiving a spouse annuity, a decision was made within 30 days of the first notice of the employee’s death in 95.2% of the cases. In addition, a decision was made within 60 days of the date the application was filed in 97.3% of the applications for a lump-sum death benefit. The combined average processing time for all initial survivor applications and spouse-to-survivor conversions was 15.95 days. The average processing time for lump-sum death benefit applications was 11.1 days.
5. What standards did the RRB use for processing applications for disability annuities in fiscal year 2020, and how well did it meet those standards?
For applications filed for a disability annuity in fiscal year 2020, the RRB’s standard was to make a decision to pay or deny a benefit within 100 days of the date the application was filed. If it was determined that the applicant was entitled to disability benefits, the applicant would receive his or her first payment within 25 days of the date of the RRB’s decision, or the earliest payment date, whichever was later. The agency’s timeliness goals were 70% and 94%, respectively, for disability decisions and disability payments.
During fiscal year 2020, the RRB made a decision on 13.5% of those filing for a disability annuity within 100 days of the date the application was filed. The average processing time was 330.8 days. Of those whose applications for a disability annuity were approved, 88.5% received their first payment within the Customer Service Plan’s time standard. The average processing time was 15.3 days.
6. What were the standards in fiscal year 2020 for the handling of applications and claims for railroad unemployment and sickness benefits, and how well did the RRB meet these standards?
For fiscal year 2020, the RRB’s standard for processing an application for unemployment or sickness benefits was that the RRB would release a claim form or a denial letter within 10 days of receiving an application. If an applicant filed a claim for subsequent biweekly unemployment or sickness benefits, the RRB’s standard was to certify a payment or release a denial letter within 10 days of the date the RRB received the claim form. The agency’s goals for processing unemployment and sickness applications in fiscal year 2020 were, respectively, 99.5% and 99.3%. The payment or decision goal for subsequent claims was 98.5%.
During fiscal year 2020, 99.3% of unemployment benefit applications and 97.4% of sickness benefit applications processed met the RRB’s standard. Average processing times for unemployment and sickness benefit applications were 1.2 and 3.1 days, respectively. In addition, in fiscal year 2020, 99.9% of subsequent claims processed for unemployment and sickness benefits met the RRB’s standard. The average processing time for claims was 4.5 days.
7. How well did the RRB meet its standards in fiscal year 2020 compared to fiscal year 2019?
Fiscal year 2020 performance met or exceeded fiscal year 2019 performance in the areas of retirement benefits, whether filed in advance or not, disability decisions and payments, lump-sum death benefits, and unemployment and sickness benefit claims.
Average processing times in fiscal year 2020 equaled or improved fiscal year 2019 processing times in the areas of Railroad Retirement applications, whether filed in advance or not, disability decisions and payments, and sickness applications. For fiscal year 2020, the agency met or exceeded all of the customer service performance goals it had set for the year, except in the areas of unemployment and sickness applications and disability decisions and payments.

While we are coming up to the one-year anniversary of the coronavirus being present in the United States, we are happy to report that Medicare is taking action with the administration of the coronavirus vaccine across the country.
As the vaccinations roll out, we are receiving questions about the process, and we would like to share them and the answers with you. They are:
What does the vaccine cost?
The vaccine is free. Medicare will pay your provider for administering the vaccine, and you will not be charged in any way. If a provider tries to collect co-pays or any other types of funds specific to the coronavirus vaccine (such as coinsurances or deductibles), please call our office and let us know.
How is the vaccine being distributed?
Every state has its own vaccine distribution plan, and you can access that information from each state’s health department. To find a listing of states and their health departments, their websites and phone numbers, please see the article “What You Don’t Know May Make A Difference” on the Palmetto GBA website at www.PalmettoGBA.com/RR/Me. You can also find a listing on the Centers for Disease Control and Prevention (CDC) website at www.CDC.gov.
Where can I find out more about the individual vaccines?
There are two vaccines being used. They are Pfizer-BioNTech COVID-19 vaccine and Moderna’s COVID-19 vaccine​​. Additionally, per the CDC, there are three large-scale (Phase 3) clinical trials in progress or being planned for three COVID-19 vaccines:

AstraZeneca’s COVID-19 vaccine

Janssen’s COVID-19 vaccine

Novavax’s COVID-19 vaccine​

As each vaccine is approved and authorized, the CDC publishes information on who should or should not receive that particular vaccine based on health profiles. Additionally, the CDC will publish information to include the vaccine’s ingredients, its safety and its effectiveness. This information is located on the CDC website at www.cdc.gov/coronavirus/2019-ncov/vaccines/different-vaccines.html.
Can I get my shot sooner if I pay for that?
The vaccine is available based on each state’s distribution program. If someone contacts you and tells you that you can pay to either have your name put on a list to receive the vaccine (when you were not on the list yet to receive the shot) or tells you that you can pay to receive the vaccine sooner than you are scheduled for, do not believe them. These “opportunities” do not exist. And as always, do not share your personal and financial information with people who call, text or email you with any offer like this. Keep your private information private. The government will never call you and ask you for money.
If you have a question about Medicare’s coverage of the coronavirus vaccine, please call Palmetto GBA’s Beneficiary Contact Center at 800-833-4455, or for the hearing impaired, call TTY/TDD at 877-566-3572. Customer service representatives are available Monday through Friday, from 8:30 a.m. until 7 p.m. ET.
You are encouraged to visit the Palmetto GBA website at www.PalmettoGBA.com/RR/Me, as well as enrolling to use their free self-service internet portal, MyRRMed. MyRRMed offers you access to your healthcare data. At this time, you can use the portal to access:

  • Status and details of your Railroad Medicare Part B claims
  • Historical Medicare Summary Notices (MSNs) for your Railroad Medicare Part B claims
  • A listing of individuals you have authorized to have access to your private health information.
  • You can also submit a request to add an authorized representative or to edit or remove an existing authorized representative.

To sign up for MyRRMed, please visit the site at www.PalmettoGBA.com/MyRRMed.

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.


 
 
4th Quarter 2020
Net Earnings: Increased 5% to $1.5 billion from $1.4 billion
Earnings Per Share: n/a – BNSF is not publicly traded
Revenue: Decreased 3% to $5.7 billion from $5.8 billion
Operating Income: Increased 3% to $2.2 billion from $2.1 billion
Operating Expenses: Decreased 6% to $3.5 billion from $3.7 billion
Operating Ratio:  Improved to 60.3% from 62.8%
2020 Annual Earnings
Net Earnings: Decreased 6% to $5.2 billion from $5.5 billion
Earnings Per Share: n/a – BNSF is not publicly traded
Revenue: Decreased 11% to $20.9 billion from $23.5 billion
Operating Income: Decreased 4% to $7.7 billion from $8.1 billion
Operating Expenses: Decreased 15% to $13.1 billion from $15.4 billion
Operating Ratio:  Improved to 61.6% from 64.5%
Click here for full financial results from BNSF.
 

 
 
 
4th Quarter 2020 
Net Earnings: Increased 17% to C$1,021 million from C$873 million
Earnings Per Share: Increased 17% to C$1.44 per share from C$1.22 per share
Revenue: Increased 2% to C$3,656 million from C$3,584 million
Operating Income: Increased 16% to C$1,411 from C$1,218 million
Operating Expenses: Decreased 5% to C$2,245 million from C$2,366 million
Operating Ratio: Improved 4.6 points to 61.4% from 66.0% 
2020 Annual Earnings
Net Earnings: Decreased 16% to C$3,562 million from C$4,216 million
Earnings Per Share: Decreased 14% to C$5.01 per share from C$5.85 per share
Revenue: Decreased 7% to C$13,819 million from C$14,917 million
Operating Income: Decreased 15% to C$4,777 million from C$5,593 million
Operating Expenses: Decreased to C$9,042 million from C$9,324 million
Operating Ratio: Worsened by 2.9 points to 65.4% from 62.5%  
Click here for full financial results from CN.  
 

 
 
 
 
4th Quarter 2020 
Net Earnings: Increased 21% to C$802 million from C$664 million
Earnings Per Share: Improved 23% to C$5.97 per share from C$4.84 per share
Revenue: Decreased 3% to C$2.01 billion from C$2.07 billion
Operating Income: Increased by 4% to C$928 million from C$890 million
Operating Expenses: Decreased 8% to C$1,084 billion from C$1.18 billion
Operating Ratio: Improved by 310 basis points to a record-low 53.9% from 57.0% 
2020 Annual Earnings 
Net Earnings: Increased to C$2,444 billion from C$2,440 billion
Earnings Per Share: Increased 3% to a record C$18.05  per share from C$17.58 per share
Revenue: Decreased 1% to C$7.71 billion from C$7.79 billion
Operating Income: Increased 6% to C$3,311 billion from C$3,124 billion
Operating Expenses: Decreased 6% to C$4,399 billion from C$4,67 billion
Operating Ratio: Improved 280 basis points to a record-low 57.1% from 59.9% 
Click here for full financial results from CP.
 

 
 
 

4th Quarter 2020
Net Earnings: Decreased 1% to $760 million from $771 million
Earnings Per Share: Stayed flat at $0.99 per share
Revenue: Decreased 2% to $2,825 million from $2,885
Operating Income: Increased 5% to $1,215 million from $1,154 million
Operating Expenses: Decreased 7% to $1,610 million from $1,731 million
Operating Ratio: Improved 300 basis points to a record 57.0% from 60.0% 
2020 Annual Earnings 
Net Earnings: Decreased 17% to $2,765 million from $3,331 million
Earnings Per Share: Decreased 14% to $3.60 per share from $4.17 per share
Revenue: Decreased 11% to $10,583 million from $11,937 million
Operating Income: Decreased 12% to $4,362 million from $4,965 million
Operating Expenses: Decreased 12% to $4,326 million from $4,965 million
Operating Ratio: Worsened to 58.8% from 58.4% 
Click here for full financial results from CSX.
 

 
 
 
 
 
 

4th Quarter 2020
Net Earnings: Increased to $165.7 million from $127.2 million
Earnings Per Share: Increased 38% to $1.81 per share from $1.31 per share
Revenue: Decreased 5% to $693.4 million from $729.5
Operating Income: Increased to $262.3 million from $236.0 million
Operating Expenses: Decreased to $431.1 million from $493.5 million
Operating Ratio: Improved 5.4 points to 62.2% from 67.6% 
2020 Annual Earnings
Net Earnings: Increased to $617.0 million from $538.9 million
Earnings Per Share: Increased to $6.57 per share from $5.42 per share
Revenue: Decreased 8% to $2,632.6 million from $2,866.0 million
Operating Income: Increased to $1,003.0 million from $886.3 million
Operating Expenses: Decreased to $1,629.6 million from $1,979.7 million
Operating Ratio: Improved to 61.9% from 69.1% 
Click here for full financial results from KCS.
 

 
 
 
4th Quarter 2020
Net Earnings: Increased 1% to $671 million from $666 million
Earnings Per Share: Increased 4% to $2.64 per share from $2.55 per share
Revenue: Decreased 4% to $2.6 billion from $2.7 billion
Operating Income: Increased 2% to $1.0 billion from $962 million
Operating Expenses: Decreased 8% to $1.59 billion from $1.73 billion
Operating Ratio: Improved 4% to an all-time quarterly record of 61.8% from 64.2% 
2020 Annual Earnings
Net Earnings: Decreased 13% to $2.0 billion from $2.7 billion
Earnings Per Share: Decreased 10% to $7.84 per share from $10.25 per share
Revenue: Decreased 13% to $9.8 billion from $11.3 billion
Operating Income: Decreased 13% to $3.0 billion from $4.0 billion
Operating Expenses: Decreased 7% to $6.8 billion from $7.3 billion
Operating Ratio: Worsened to 69.3% from 64.7% 
Click here for full financial results from NS.
 

 
 
 
 
 
 

4th Quarter 2020
Net Earnings: Decreased 2% to $1.38 billion from $1.40 billion
Earnings Per Share: Increased 1% to $2.05 per share from $2.03 per share
Revenue: Decreased 1% to $5.1 billion from $5.2 billion
Operating Income: Decreased4% to $2.0 billion from $2.1 billion
Operating Expenses: Increased 1% to $3.1 3 billion from $3.11 billion
Operating Ratio: Worsened 1.3 points to 61.0% from 59.7% 
2020 Annual Earnings
Net Earnings: Decreased 10% to $5.3 billion from $5.9 billion
Earnings Per Share: Decreased 6% to $7.90 per share from $8.41 per share
Revenue: Decreased 10% to $19.5 billion from $21.7 billion 
Operating Income: Decreased 8% to $7.8 billion from $8.6 billion
Operating Expenses: Decreased 11% to $11.7 billion from $13.2 billion
Operating Ratio: Improved 0.7 points to 59.9% from 60.6% 
Click here for full financial results from UP.
 

Notes:  

  • Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad. 
  • All comparisons are made to 2019’s fourth quarter and annual financial results respectively for each railroad. 
  • CN and CP financial results are in Canadian currency

In a press release issued Jan. 25, the National Transportation Safety Board (NTSB) determined that an airbrake failure caused a fatal collision between two Union Pacific trains in Granite Canyon, Wyo. on Oct. 4, 2018.
Local 446 members Benjamin Brozovich and Jason V. Martinez were killed in the collision. According to the NTSB, the collision occurred when the air brakes on their eastbound freight train failed while going down a hill. An air flow restriction in the brake pipe caused the air brake system to fail, and the end-of-train device failed to respond to an emergency brake command, the NTSB reported. As a result, the runaway train collided with the rear of a stopped UP train while going approximately 55 mph.
Click here to read more from the NTSB.

Under the Railroad Retirement Act (RRA), a “current connection with the railroad industry” is one of the eligibility requirements for both the occupational disability and supplemental annuities payable by the Railroad Retirement Board (RRB). It is also a factor in determining whether the RRB or the Social Security Administration pays monthly benefits to survivors of a railroad employee.

The following questions and answers describe the current connection requirement and the ways the requirement can be met.

1. How is a current connection determined under the RRA?

To meet the current connection requirement, an employee must generally have been credited with railroad service in at least 12 months of the 30 months immediately preceding the month his or her Railroad Retirement annuity begins. If the employee died before retirement, railroad service in at least 12 months in the 30 months before the month of death will meet the current connection requirement for the purpose of paying survivor benefits.

However, if an employee does not qualify on this basis, but has 12 months of railroad service in an earlier 30-month period, he or she may still meet the current connection requirement. This alternative generally applies if the employee did not have any regular employment outside the railroad industry after the end of the last 30-month period which included 12 months of railroad service, and before the month the annuity begins or the month of death if earlier.

Once a current connection is established at the time the Railroad Retirement annuity begins, an employee never loses it, no matter what kind of work is performed thereafter.

2. Can non-railroad work before retirement break a former railroad employee’s current connection?

Yes. Full or part-time work for a non-railroad employer in the interval between the end of the last 30-month period including 12 months of railroad service and the month an employee’s annuity begins, or the month of death if earlier, can break a current connection, even with minimal earnings.

Self-employment in an unincorporated business will not break a current connection. However, if the business is incorporated the individual is considered to be an employee of the corporation, and such self-employment can break a current connection. All self-employment will be reviewed to determine if it meets the RRA’s standards for maintaining a current connection.

Federal employment with the Department of Transportation, National Transportation Safety Board, Surface Transportation Board, National Mediation Board, Railroad Retirement Board or Transportation Security Administration will not break a current connection. State employment with the Alaska Railroad, as long as that railroad remains an entity of the State of Alaska, will not break a current connection. Also, railroad service in Canada for a Canadian railroad will neither break nor preserve a current connection.

3. Is there an exception to these normal procedures for determining a current connection?

Yes. A current connection can also be “deemed” for purposes of a survivor or supplemental annuity if the employee completed 25 years of railroad service, was involuntarily terminated without fault from his or her last job in the railroad industry, and did not thereafter decline an offer of employment in the same class or craft in the railroad industry regardless of the distance to the new position. (A “deemed” current connection does not satisfy the current connection requirement for an occupational disability.)

If all of these requirements are met, an employee may be considered to have a “deemed” current connection, even if the employee works in regular non-railroad employment after the 30-month period and before retirement or death. This exception to the normal current connection requirement was established by amendments to the RRA and became effective October 1, 1981. It only covers employees still living on that date who left the rail industry on or after October 1, 1975, or who were on leave of absence, on furlough or absent due to injury on October 1, 1975.

4. Would accepting a buy-out affect whether an employee could maintain a current connection under this exception?

Generally, in cases where an employee has no option to remain in the service of his or her railroad employer, the termination of the employment is considered involuntary, regardless of whether or not the employee receives a buy-out.

However, if an employee has the choice of either accepting a position in the same class or craft in the railroad industry or termination with a buy-out, accepting the buy-out is a part of his or her voluntary termination, and the employee would not maintain a current connection under the exception.

5. An employee with 25 years of service is offered a buy-out with the option of either taking payment in a lump sum or of receiving monthly payments until retirement age. Could the method of payment affect the employee’s current connection under the exception?

No. The determining factor for whether the exception applies when a buy-out is paid is whether or not the employee stopped working involuntarily – not the payment option. The employee must always relinquish job rights to accept the buy-out, regardless of whether it is paid in a lump sum or in monthly payments. Neither payment option extends the 30-month period.

An employee considering accepting a buy-out should also be aware that if he or she relinquishes job rights to accept the buy-out, the compensation cannot be used to credit additional service months beyond the month in which the employee severed his or her employment relation, regardless of whether payment is made in a lump sum or on a periodic basis.

6. What if the buy-out agreement allows the employee to retain job rights and receive monthly payments until retirement age?

The RRB considers this type of buy-out to be a dismissal allowance. When a monthly dismissal allowance is paid, the employee retains job rights, at least until the end of the period covered by the dismissal allowance. If the period covered by the dismissal allowance continues up to the beginning date of the railroad retirement annuity, railroad service months would be credited to those months. These railroad service months would provide at least 12 railroad service months in the 30 months immediately before the annuity beginning date and maintain a regular current connection. They will also increase the number of railroad service months used to calculate the Railroad Retirement annuity.

7. Could the exception apply in cases where an employee has 25 years of railroad retirement coverage and a company reorganization results in the employee’s job being placed under social security coverage?

Yes. The RRB has considered the exception applicable in cases where a 25-year employee’s last job in the railroad industry changed from Railroad Retirement coverage to Social Security coverage and the employee had, in effect, no choice available to remain in Railroad-Retirement-covered service. Such 25-year employees have been “deemed” to have a current connection for purposes of receiving supplemental and survivor annuities.

8. Where can a person get more specific information on the current connection requirement?

More information is available on RRB.gov or by contacting an RRB field office. It is important to know that while nearly all of the RRB’s 53 field offices are physically closed to the public until further notice because of the COVID-19 virus outbreak, they remain accessible online and by phone. Customers are encouraged to contact their local office by accessing Field Office Locator at RRB.gov and clicking on Send a Secure Message at the bottom of their local office’s page. Customers who prefer talking to an RRB employee can call the agency’s toll-free number (1-877-772-5772); however, they may experience lengthy wait times due to increased call volume caused by COVID-19-related issues.