Author: paul

Home>Articles by: paul

RRB_seal_150pxThe Railroad Retirement Board (RRB) is required by law to submit annual financial reports to Congress on the financial condition of the railroad retirement system and the railroad unemployment insurance system. These reports must also include recommendations for any financing changes which may be advisable in order to ensure the solvency of the systems. In June, the RRB submitted its 2013 reports on the railroad retirement and railroad unemployment insurance systems.

The following questions and answers summarize the findings of these reports.

1. What were the assets of the railroad retirement and railroad unemployment insurance systems last year?

As of Sept. 30, 2012, total railroad retirement system assets, comprising assets managed by the National Railroad Retirement Investment Trust and the railroad retirement system accounts at the Treasury, equaled $25.3 billion. The Trust was established by the Railroad Retirement and Survivors’ Improvement Act of 2001 to manage and invest railroad retirement assets. The cash balance of the railroad unemployment insurance system was $175.3 million at the end of fiscal year 2012.

2. What was the conclusion of the 2013 report on the financial condition of the railroad retirement system?

The overall conclusion was that, barring a sudden, unanticipated, large decrease in railroad employment or substantial investment losses, the railroad retirement system will experience no cash-flow problems during the next 25 years. The long-term stability of the system, however, is still uncertain. Under the current financing structure, actual levels of railroad employment and investment return over the coming years will largely determine whether corrective action is necessary.

3. What methods were used in forecasting the financial condition of the railroad retirement system?

The 2013 report projected the various components of income and outgo of the railroad retirement system under three employment assumptions, intended to provide an optimistic, moderate and pessimistic outlook, for the 25 calendar years 2013-2037. The projections of these components were combined and the investment income calculated to produce the projected balances in the railroad retirement accounts at the end of each projection year.

Projecting income and outgo under optimistic, moderate and pessimistic employment assumptions, the valuation indicated no cash-flow problems occur throughout the 25-year projection period under any of the assumptions.

4. How do the results of the 2013 report compare with those of the 2012 report?

The projected tier II tax rates for each calendar year are either the same or lower than in last year’s report. (Railroad retirement payroll taxes, like railroad retirement benefits, are calculated on a two-tier basis.) The projected combined account balances are higher at the end of each year, except under the moderate employment assumption where lower tax rates lead to lower account balances in 2034-2037.

The favorable comparison with last year was due to overall favorable economic and employment experience, with the largest impacts resulting from employment exceeding the RRB’s projections and actual investment return of approximately 13.9 percent exceeding the expected investment return of 7 percent in calendar year 2012.

5. Did the 2013 report on the financial condition of the railroad retirement system recommend any railroad retirement payroll tax rate changes?

The report did not recommend any change in the rate of tax imposed by current law on employers and employees.

6. What were the findings of the 2013 report on the financial condition of the railroad unemployment insurance system?

The RRB’s 2013 railroad unemployment insurance financial report was also generally favorable. Even as maximum benefit rates increase 42 percent (from $66 to $94) from 2012 to 2023, experience-based contribution rates are expected to keep the unemployment insurance system solvent, except for possible small, short-term cash flow problems in fiscal years 2015 and 2016 under the pessimistic assumption. However, projections show quick repayment of any loans by the end of each fiscal year.

Unemployment levels are the single most significant factor affecting the financial status of the railroad unemployment insurance system. However, the system’s experience-rating provisions, which adjust contribution rates for changing benefit levels, and its surcharge trigger for maintaining a minimum balance, help to ensure financial stability in the advent of adverse economic conditions.

Under experience-rating provisions, each employer’s contribution rate is determined by the RRB on the basis of benefit payments made to the railroad’s employees. Even under the report’s most pessimistic assumption, the average employer contribution rate remains well below the maximum throughout the projection period.

No surcharge is in effect in calendar year 2013, and the report predicts one will not be required in calendar 2014. A surcharge of 1.5 percent is likely in calendar years 2015 and 2016.

7. What methods were used to evaluate the financial condition of the railroad unemployment insurance system?

The economic and employment assumptions used in the unemployment insurance report corresponded to those used in the 2013 report on the financial condition of the retirement system. Projections were made for various components of income and outgo under each of the three employment assumptions, but for the period 2013-2023, rather than a 25-year period.

8. Did the 2013 report on the railroad unemployment insurance system recommend any financing changes to the system?

No financing changes were recommended at this time by the report.

The U.S. Department of Labor’s Occupational Safety and Health Administration today announced a proposed rule aimed at curbing lung cancer, silicosis, chronic obstructive pulmonary disease and kidney disease in America’s workers. The proposal seeks to lower worker exposure to crystalline silica, which kills hundreds of workers and sickens thousands more each year. After publication of the proposal, the public will have 90 days to submit written comments, followed by public hearings.
“Exposure to silica can be deadly, and limiting that exposure is essential,” said Dr. David Michaels, assistant secretary of labor for occupational safety and health. “Every year, exposed workers not only lose their ability to work, but also to breathe. This proposal is expected to prevent thousands of deaths from silicosis—an incurable and progressive disease—as well as lung cancer, other respiratory diseases and kidney disease. We’re looking forward to public comment on the proposal.”
Once the full effects of the rule are realized, OSHA estimates that the proposed rule would result in saving nearly 700 lives per year and prevent 1,600 new cases of silicosis annually.
Exposure to airborne silica dust occurs in operations involving cutting, sawing, drilling and crushing of concrete, brick, block and other stone products and in operations using sand products, such as in glass manufacturing, foundries and sand blasting.
The proposal is based on extensive review of scientific and technical evidence, consideration of current industry consensus standards and outreach by OSHA to stakeholders, including public stakeholder meetings, conferences and meetings with employer and employee organizations.
“The proposed rule uses common sense measures that will protect workers’ lives and lungs—like keeping the material wet so dust doesn’t become airborne,” added Michaels. “It is designed to give employers flexibility in selecting ways to meet the standard.”
The proposed rulemaking includes two separate standards—one for general industry and maritime employment, and one for construction.
The agency currently enforces 40-year-old permissible exposure limits (PELs) for crystalline silica in general industry, construction and shipyards that are outdated, inconsistent between industries and do not adequately protect worker health. The proposed rule brings protections into the 21st century.
The proposed rule includes a new exposure limit for respirable crystalline silica and details widely used methods for controlling worker exposure, conducting medical surveillance, training workers about silica-related hazards and recordkeeping measures.
OSHA rulemaking relies heavily on input from the public and the agency will conduct extensive engagement to garner feedback from the public through both written and oral comments. OSHA will accept public comments on the proposed rule for 90 days following publication in the Federal Register, followed by public hearings. Once public hearings conclude, members of the public who filed a notice of intention to appear can then submit additional post-hearing comments. Additional information on the proposed rule, including a video; procedures for submitting comments and the public hearings can be found at www.osha.gov/silica.

faa_logoWASHINGTON –The U.S. Department of Transportation’s Federal Aviation Administration (FAA), working with the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA), Aug. 22 issued a final policy for improving workplace safety for aircraft cabin crewmembers.

While the FAA’s aviation safety regulations take precedence, OSHA will be able to enforce certain occupational safety and health standards currently not covered by FAA oversight.

“Safety is our number one priority – for both the traveling public and the dedicated men and women who work in the transportation industry,” said U.S. Transportation Secretary Anthony Foxx. “It’s important that cabin crewmembers on our nation’s airlines benefit from OSHA protections, including information about potential on-the-job hazards and other measures to keep them healthy and safe.”

“This policy shows the strength of agencies working together and will enhance the safety of cabin crewmembers and passengers alike,” said Secretary of Labor Thomas Perez. “It is imperative that cabin crewmembers have the same level of safety assurances they provide the public.”

Aircraft cabin safety issues that fall under OSHA standards include information on hazardous chemicals, exposure to blood-borne pathogens, and hearing conservation programs, as well as rules on record-keeping and access to employee exposure and medical records. The FAA and OSHA will develop procedures to ensure that OSHA does not apply any requirements that could adversely affect aviation safety.

“Our cabin crewmembers contribute to the safe operation of every flight each day,” said FAA Administrator Michael Huerta. “We’re taking an important step toward establishing procedures for resolving cabin crew workplace health and safety concerns.”

“We look forward to working with the FAA and through our alliance with the aviation industry and labor organizations to improve the safety of cabin crewmembers,” said Dr. David Michaels, assistant secretary of labor for occupational safety and health.

Through the FAA Modernization and Reform Act of 2012, Congress required the FAA to develop a policy statement to outline the circumstances in which OSHA requirements could apply to crewmembers while they are working onboard aircraft.

The policy will be effective 30 days after publication in the Federal Register. OSHA will conduct outreach and then begin enforcement activities after the first six months from the effective date. The notice is available at http://www.faa.gov/about/initiatives/ashp/.

The Transportation Trades Department of the AFL-CIO has written letters to all members of the U.S. Senate and U.S. House of Representatives asking them to restore full unemployment and sickness benefits to Railroad Retirement beneficiaries whose benefits have been reduced due to the sequestration.

As a result of the March 1, 2013, sequestration, sick and unemployed railroad workers have had their benefits reduced by 9.2 percent.

To read the letter to U.S. representatives, click here.

To read the letter to U.S. senators, click here.

FRA_logo_wordsThe Federal Railroad Administration has issued a guidance memorandum for Emergency Order 28, which seeks to prevent trains operating on mainline tracks or sidings from moving unintentionally.

The memorandum has been sent to all Railroad Safety Advisory Committee (RSAC) members and alternates.

Hardcopies will be provided at the emergency RSAC meeting scheduled for Aug. 29 and a detailed presentation on the safety advisory, Emergency Order 28 and this guidance document are on the agenda.

To view the guidance memorandum, click here.

The nation’s top railroad administrator has told the Montreal, Maine & Atlantic Railway that he is “shocked” that the company has not adopted a policy of using two-person crews on its trains in the United States.

In a letter to the Maine-based company, Federal Railroad Administration Administrator Joseph Szabo said he expects the railroad to stop manning trains with one-person crews.

Read the complete story at The Portland Press Herald.

 

Avantair airplaneClearwater Fla.-based Avantair’s assets will be sold off and the company liquidated after it failed to meet a deadline last week to contest an involuntary Chapter 7 filing in the Florida Middle District U.S. Bankruptcy Court in Tampa.

Judge Catherine McEwen signed an order on Friday converting the case to full Chapter 7 status and gave former fractional provider Avantair until this Friday to provide the court with a list of creditors, co-debtors and unexpired leases. The court has also given Avantair’s creditors until Dec. 18 to file a claim.

Click here to read more. 

After the recent disaster in Lac-Mégantic, Quebec, the Transportation Safety Board of Canada (TSB) is looking at possibly implementing positive train control (PTC) systems on its railroads.

In 2010 and 2012, two major train derailments have been linked to trainmen not following signal indications. The incident in 2010 at Saint-Charles-de-Bellechase, Quebec, only caused injuries and property damage, while the 2012 incident in Burlington, Ont., caused the deaths of three engineers.

In both cases, it was found that the trains were traveling at excessive speeds while switching tracks, having missed or misinterpreted signals.

Director of TSB rail and pipeline investigations Kirby Jang explains, “In Canada, we have a system called centralized traffic control, which provides visual signals, but there is no automated stopping or slowing of trains if the train crew were to exceed the limits of their authority.

“We believe that there’s a risk of serious train collisions and derailments if rail signals are not consistently recognized and followed. Really, what we’re trying to advocate is that further safety defenses should be implemented to ensure that signal indications of operating speed or operating limits are consistently recognized and followed. That’s a key finding and recommendation out of Burlington,” Jang said.

According to Jang, there are ongoing discussions about PTC systems, which would automatically reduce a train’s speed if it were moving too fast. The TSB is also looking at placing video and voice recording systems inside the cabs of locomotives as a source of data in the event of another derailment or train disaster like the one in Lac-Mégantic.

The TSB can only make recommendations to Transport Canada; it is then up to Transport Canada to decide whether or not they want to act on the recommendations made by the TSB.

ken_moore
Moore

Former UTU International Vice President and Bus Department Director Kenneth R. Moore, 85, died Aug. 18. He was a member of Local 1563 at El Monte, Calif.
Born in Danville, Ark., Moore began his career in transportation as a bus operator for the Long Beach, Calif., Motor Bus Company in 1950. He joined Continental Trailways in 1951 and Los Angeles Transit Lines in 1953.
Originally a member of the Brotherhood of Railroad Trainmen Lodge 390, he served as the terminal griever from 1959 to 1962, lodge chairperson from 1962 to 1966, and general chairperson from 1965 to 1970. He was elected a BRT alternate vice president in 1964 and served in that capacity until filling a vacancy as International vice president Jan. 1, 1971. He was re-elected to that post at seven succeeding UTU quadrennial conventions.
“Ken was a lifelong supporter of UTU and attended countless political functions with former State Director Scott Olson and me. He was a champion of labor and stayed politically active up until his death. He will be greatly missed,” said Arizona State Legislative Director Greg Hynes.
Moore was preceded in death by his wife of 53 years, Dorothy. He is survived by his daughter, Marily Hill (Richard); stepdaughter, Anita Hornlein (Robert); two stepsons, Russell Brabant and Larry Maddox, as well as nine grandchildren, 12 great-grandchildren and six great-great-grandchildren.
Visitation will be held Thursday, Aug. 22, from 2-4 p.m. at Valley of the Sun Mortuary, 10940 E. Chandler Heights Rd., Chandler, AZ 85248.
Funeral services will be held at the Praise and Worship Center, 2551 N. Arizona Ave., Chandler, AZ 85225, on Friday, Aug. 23, with a viewing at 10 a.m. and services at 11 a.m. A reception will follow the services.
In lieu of flowers, donations in his honor to either Family Comfort Hospice, 9150 E. Del Camino Dr., Scottsdale, AZ 85258, or to Neighbors Who Care, 10450 E. Riggs Rd., Suite 113, Sun Lakes, AZ 85248, are preferred.

union_pacific_logoOMAHA, Nebraska — At least two major U.S. freight railroads are seeking to install cameras in their locomotives to make sure crews are following rules and avoiding cellphone use.

Union Pacific asked a federal judge this week to declare it has the authority to install the cameras under the railroad’s existing labor agreements. Kansas City Southern railroad won a similar lawsuit last month over the objections of labor unions.

Read the complete story at the Daily Reporter.