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On July 29, Railroad Retirement Board Labor Member Walt Barrows addressed attendees at the SMART Transportation Division’s Anaheim, Calif., regional meeting.

He spoke about the beginnings of the RRB, pensions and retirement plans, attacks on workers in both the public and private sectors.

“We are entitled because we worked for it. We are entitled because we sacrificed for it. We are entitled because we contributed to it,” Barrows said. “We are entitled because the profits enjoyed by the railroad industry came from our blood and our sweat. Nobody gave us anything. We earned it.”

Read the complete text of Barrows address below.

Also note the chart comparing Railroad Retirement and Social Security Administration annuities.

—

“Thank you, Mike (Futhey) for the invitation.

“It is truly an honor to be here with you today (July 29) and to have the privilege of addressing SMART Transportation Division members and questions.

“You can take great pride in the fact that your union’s leaders are fighting to protect our railroad retirement system. Your union has a proud history of fighting to protect and improve Railroad Retirement.

“Our retirement system is something all of rail labor can be proud of and it is certainly worth fighting for. There were many challenges to establish the Railroad Retirement Act and challenges have continued over its 78-year history.

“The first contributory private pension plans were established in the railroad industry in late 19th century, on the Grand Trunk Railway of Canada and then on the B&O Railroad. By the end of the first decade of the 20th century, 66% of railroaders were covered by some type of private pension. The number grew to over 80% at the beginning of the great depression. The pioneer trade unionist of the SMART’s predecessor unions were a part of the establishing these early pension plans.

“The problem with the plans was that the benefits provided by these plans were inadequate. A 1930s survey of the plans showed that while 80% were covered by the plans, that because of restrictions in the plans, only 17% of railroader workers would ever qualify for the benefits. In addition, the plans were easily terminated by the railroads and gave little or no assistance to disabled workers or survivors.

“When the Great Depression hit, the already unstable railroad pension plans were thrown into a state of crisis. Railroad unions sought a separate federal retirement system. The system would consolidate the existing railroad plans into a uniform national plan. The first law was passed in 1934 and the railroads immediately went to court to challenge the new law. The Supreme Court sided with the railroads, and in a 5 to 4 decision deemed the law unconstitutional. The unions went back to Congress and, in 1935, a new law was passed. Again the railroads went to court to challenge the law. This time the court held some of the law to be constitutional but deemed other parts of the law unconstitutional. In 1936, President Roosevelt asked labor and the industry to work out their differences. An agreement between rail labor and the rail industry was enacted in the 1937 amendments to the Railroad Retirement Act.

“Since that time, there have been nine significant pieces of legislation that made changes to the system. Many of those changes resulted in improved benefits. The 1937 law did not include occupational disability, spouse or survivor benefits. These were all added later. Other changes improved funding of our pension. In the 1970s and 1980s, the system faced a funding crisis. This was due in large part to sharply declining employment and increased benefit costs brought on by very high inflation. Labor and the rail industry agreed to changes that addressed the problems.

“The most recent major legislation was enacted in 2001. These changes reduced full retirement age from 62 to 60 with 30 years of service, improved the survivors benefits and created the National Railroad Retirement Trust Fund which now invests the Railroad Retirement assets.

“The fight to protect retirement benefits for American workers is never over. No, this fight is an ongoing battle. If you read the newspaper or turn on the TV, it seems like every day there is another assault against American workers and their pension plans.

“Since 1985, 84,350 pension plans have been ended by employers. We have gone from nearly 50 percent of U.S. workers covered by a defined benefit plan to about 15 percent covered.

“Rail workers find themselves in a unique situation. They have good wages, they have good health care and they have a good retirement system. But all around us that is not the case;

“All around us workers are making less,

“All around us workers are losing their good health care coverage.

“And all around us workers are losing their defined benefit pension plans.

“Defined benefit pension plans have been replaced by tax deferred savings accounts, like 401(k) plans, and other less desirable substitutes. During that same period, we have seen good health care plans replaced by high deductible plans that only provide catastrophic coverage. We have seen industries that paid a good living wage, now paying wages you can barely live on.

“It is happening all around us. Workers in the manufacturing, steel, airline, and auto industries have all seen their pension plans stripped away. And now we see a new attack on public workers.

“While other workers watch their standard of living recede, their health care becoming too costly, and their retirement security stripped away, we cannot sit back and believe this will not impact us.

“An attack on public workers, an attack on private workers, an attack on union or non-union workers must be seen as an attack on our pension system.

“For far too many workers, the defined pension plan is becoming a relic from a past generation. And with the disappearance of pension plans, far too many Americans cannot retire with any sense of dignity or security.

“Recently, a union member asked me, “What am I going to get out of the money I’m paying into Railroad Retirement?”

“Good question. You see workers are being told they would be better off if they saved their own money. Let me tell what you get. 60/30, occupational disability after 20 yrs, and a survivor benefit that far exceeds most retirement plans. For the career railroad worker who retired in 2012 at age 60 with at least 30 years of service, we estimate that over the lifetime of that railroad worker, Railroad Retirement will pay him and his spouse total benefits of about $2 million. That same worker under social security, who couldn’t retire until age 62, will receive with his spouse, benefits totalling about $900 thousand over their lifetime.

“For the past 30 years, the 401(k) has been presented to workers as the future of a secure retirement. It is a lie. The average worker in America cannot save their own money and have true retirement security. The fact today is that in America the average 401(k) savings for a worker between the ages 55 – 60 is about $100k. That is clearly not a plan for a secure retirement.

“Over our 78-year history, the Railroad Retirement Board has paid out over $300 billion in benefits to more than 5.5 million retired employees, spouses and survivors.

“A key component of our retirement system is the Trust Fund. I am happy to report that the Trust Fund continues to outperform many other retirement funds. The balance of the Trust Fund is currently around $26 billion. More important is the report from the Railroad Retirement Board’s Chief Actuary. He assures us that absent a catastrophic loss of rail employment, the Railroad Retirement system is solvent well into the future.

“Wondering if you will be able to receive a steady income during your retirement years is important to you and your family when you consider retirement. Well, railroad retirement gives you that assurance.

“You would think that the strength and solvency of our system would exempt us from attacks, but our retirement system is never totally safe from attack.

“As most of you know, last year a House budget resolution proposed massive changes to our retirement system. While this proposal did not go anywhere, it again demonstrates that rail workers must remain vigilant if we expect our retirement system to be there for us and for future generations of rail workers.

“On March 1 of this year, rail workers were again victims of Washington budget cuts, when their Unemployment and Sickness benefits were reduced 9.2% by the sequestration order. While no reductions were made to retirement, disability or survivor benefits, the RRB administrative budget, which is used to run the agency, was reduced.

“You can be very proud of the work that James Stem and John Risch are doing on Capitol Hill defending our retirement system against those who try to weaken it. Last year rail labor quickly went to Capitol Hill to kill any plans to change our retirement system, and this year they are fighting to get the unemployment and sickness benefits restored.

“Our retirement system has faced many challenges over the 78-year history of the Railroad Retirement Act. At times its solvency was in question; at times the White House and Members of Congress questioned the need for a separate RR system; and at times, the commitment by the rail industry to the system was less than lukewarm.

“But every time there was an issue threatening the integrity and stability of the system, rail labor has met the challenge. That speaks volumes to the strength and solidarity of the rail labor movement.

“Let me say a little bit about the agency itself. I am proud of the RRB’s long history of excellent service to both active and retired railroad workers.

“That record of service is the result of nearly 900 Federal workers at the Board’s Chicago headquarters and 53 field offices who show up and work every day on behalf of railroad workers. As trade unionist, I ask you to defend Federal workers, like those who work on your behalf at the RRB.

“I applaud each and every one of you for your efforts to protect and carry forward the work of those who preceded us. It is now up to us to ensure that our retirement system is there to provide protection and retirement security for future generations.

“So let me close with this. When we hear retirement benefits attacked; and when we hear them referred to as entitlements; and when we hear the code words “entitlement reform,” remind people that railroad workers are entitled.

“We are entitled because we worked for it.

“We are entitled because we sacrificed for it.

“We are entitled because we contributed to it.

“And we are entitled because the profits enjoyed by the railroad industry came from our blood and our sweat. Nobody gave us anything. We earned it.

“Since the establishment of the railroad retirement system 78 years ago, labor has fought to protect and preserve these benefits. And as your member on the Railroad Retirement Board, it is an honor for me to stand here today to tell you that I will fight to protect our retirement system.”

View RRB/SSA annuity comparison chart here.

futhey_barrows_carney

SMART Transportation Division President Mike Futhey, left, presents Railroad Retirement Board
Labor Member Walt Barrows with a UTU clock following Barrows’ address to attendees at the TD’s
Anaheim regional meeting. At right is meeting master of ceremonies Ed Carney.

RRB_seal_150pxWalter A. Barrows, the labor member of the U.S. Railroad Retirement Board (RRB), recently announced two senior-level staff appointments within his immediate office.

Michael J. Collins, who has been an assistant to the labor member since April 2003, will assume the position of legislative assistant. In that capacity, he will advise the labor member on legislative issues related to the benefit programs administered by the RRB, as well as rail employees and the industry as a whole, and serve as a liaison to congressional offices and legislative directors at rail labor unions.

Barrows also appointed Brigitte A. Munoz as an assistant to the labor member. Munoz, an RRB employee since June 1990, was a railroad retirement claims examiner specializing in disability cases at the time of her appointment.

Before joining the Office of the Labor Member, Collins served as the RRB’s director of survivor benefits. An agency employee since July 1975, he previously served as deputy director of disability and Medicare operations and, before that, as an assistant to the chairman of the board.

Collins, a graduate of the University of Illinois at Chicago (B.S., 1975), is married and has a daughter. He resides in Oak Lawn, Ill.

“Mike Collins has solved hundreds of problems for our members over the past twenty years,” said SMART Transportation Division National Legislative Director. “He deserves to be commended for this promotion.”

Munoz joined the RRB in June 1990 as a claims examiner in the sickness and unemployment benefits program, transferring to the disability benefits program in 2006.

A graduate of Concordia University in River Forest, Ill., (B.A., 1990), Munoz is married with two daughters. She lives in Orland Park, Ill.

Both appointments follow the recent retirement of James C. Boehner, who previously served as legislative assistant to Barrows. Boehner retired in June after almost 40 years of service to the RRB, including more than 33 years in the Office of the Labor Member.

RRB_seal_150pxRailroad employees who are planning to retire should be aware of what steps to take and what documents are required when applying for an annuity from the Railroad Retirement Board (RRB). Being prepared can prevent needless delays and ensure that payments from the RRB begin as soon as possible after retirement.

The following questions and answers describe the application process and other related items that retiring employees, as well as their spouses or survivors, should be aware of.

1. How are railroad retirement annuity applications filed?

Applications are filed through the RRB’s field offices. Applicants may file in person or by telephone and mail. Those filing in person may do so at any RRB office or at one of the office’s customer outreach program service locations. Applicants filing by telephone receive the same information and instructions that are provided to those filing in person; forms requiring signatures and other documents are then handled by mail.

The addresses of all the RRB’s field offices are available on the agency’s website at www.rrb.gov, or by calling the RRB’s toll-free number at (877) 772-5772. This number, which provides access to the agency’s field office representatives, also provides automated menus 24 hours a day, seven days a week. RRB field offices are open to the public from 9 a.m. to 3:30 p.m., Monday through Friday, except on federal holidays.

2. Can an application be filed prior to a person’s actual retirement date?

The RRB accepts annuity applications up to three months in advance of an annuity beginning date, which allows the RRB to complete the processing of most new claims by a person’s retirement date. An employee can be in compensated service while filing a disability application provided that the compensated service is not active service and terminates within 90 days from the date of filing. When an employee files a disability application while still in compensated service, it will be necessary to provide a specific ending date of the compensation. Compensated service includes not only compensation with respect to active service performed by an employee for an employer, but also includes pay for time lost, wage continuation payments, certain employee protection payments and any other payment for which the employee will receive additional creditable service.

To expedite the filing process, applicants should contact their local RRB field office to schedule time for a pre-retirement consultation and also to confirm their eligibility and be advised as to the required documents. The consultation can be conducted in person, or by telephone, with an RRB representative who will provide an annuity estimate, explain a retiree’s benefit rights and responsibilities, and answer related questions.

Railroad employees can also get estimates of their future annuities over the Internet by visiting the RRB’s website. To do so, employees must first establish an RRB online account at www.rrb.gov. For security purposes, first-time users must apply for a Password Request Code (PRC), which they will receive by regular mail in about 10 business days. To do this, they should click on “Request Password Request Code (PRC) be mailed to your home address” in the “Benefit Online Services Login” section on the home page. Once they establish their online accounts, they will be able to get an estimate of their annuities, as well as conduct other business with the RRB, over the Internet. Railroad workers are encouraged to establish online accounts while still employed so the accounts are ready when needed. Employees who have already established online accounts do not need to do so again.

3. What are some of the documents required with an application?

  • All applicants have to furnish proof of their age.
  • All applicants should be prepared to furnish the notice of any social security benefit award or other social security claim determination.
  • An employee may be required to submit information regarding any other federal, state or local government pension for which he or she also qualifies, as well as certain other payments not covered by railroad retirement or social security, such as from a non-profit organization or from a foreign government or a foreign employer.
  • An employee or survivor filing for a disability annuity is required to submit supporting medical information from his or her treating physician, as well as any reports or records from recent hospitalizations. He or she may also be asked to go for one or more specialized medical examinations given by a doctor named by the RRB. If an employee disability applicant is receiving workers’ compensation or public disability benefits, notice of the amount and beginning date of such payments must be submitted.
  • An employee will have to furnish proof of any military service claimed.
  • A spouse, divorced spouse or widow(er) applying for a railroad retirement annuity must furnish proof of marriage to the employee. A divorced spouse must furnish proof of a final divorce from the employee, as well as proof that any subsequent marriages have terminated.
  • A spouse, divorced spouse or survivor also qualified to receive a pension from a federal, state or local government must submit information regarding that pension.
  • All applicants have to provide banking information necessary for their enrollment in direct deposit.

A booklet, “Furnishing Evidence to Support Your Claim” (Form RB-3), gives detailed information as to the types of proofs that are required when filing for an annuity, as well as sources from which these documents can be obtained. The booklet is available free of charge at any RRB office or at www.rrb.gov.

4. Can proofs be filed in advance of retirement?

Railroad employees are encouraged to file proofs of their correct birth date and their military service well in advance of retirement. The information will be recorded and stored electronically until they actually retire. This will expedite the annuity application process and avoid any delays resulting from inadequate proofs.

If employees do not have an official record of their birth or military service, their local RRB office will explain how to get acceptable evidence. All evidence brought or mailed to an RRB office will be handled carefully and returned promptly.

5. What is the retroactivity of a railroad retirement application?

The retroactivity of a railroad retirement annuity application is limited to one year for disability annuities and six months for full age annuities. There is generally no retroactivity for reduced age annuities.

Retroactivity of a survivor annuity application is one year for disabled widow(er)s and six months for full retirement age widow(er)s, mothers (fathers), children and parents. Retroactivity for widow(er)s ages 60-61 is six months if it does not increase the age reduction (this does not apply to surviving divorced spouses or remarried widow(er)s). Otherwise, there is generally no retroactivity for reduced age widow(er)s’ annuities.

6. Are retiring railroad employees required to relinquish their rights to their railroad jobs?

An employee annuity based on age cannot be paid until the employee stops railroad employment and gives up any rights to return to work for a railroad employer. While an annuity based on disability is not paid until an employee has stopped working for a railroad, employment rights need not be relinquished until the employee attains full retirement age. However, in order for a supplemental annuity to be paid by the RRB, or for an eligible spouse to begin receiving annuity payments, a disabled annuitant under full retirement age must relinquish employment rights. And, regardless of age and/or earnings, no railroad retirement annuity is payable for any month in which a retired or disabled employee annuitant, a spouse annuitant or a survivor annuitant works for an employer covered under the Railroad Retirement Act, including labor organizations. Such work includes service for more than $24.99 in a calendar month to a local lodge or division of a railway labor organization. Also, work by a local lodge or division secretary collecting insurance premiums, regardless of the amount of salary, is railroad work which must be stopped.

Railroad retirement annuitants may work in nonrailroad employment, but benefits may be reduced if a beneficiary under full retirement age works after retirement and earnings exceed annual exempt amounts. Additional earnings deductions are assessed if a retired or disabled employee annuitant, or a spouse annuitant, works for his or her last pre-retirement nonrailroad employer, regardless of age or the level of earnings.

Special restrictions also apply to any earnings by disabled employees.

7. How soon after filing can an applicant expect payment?

Under the RRB’s Customer Service Plan, if an applicant filed for a railroad retirement employee or spouse annuity in advance of the beginning date of the annuity, the RRB is expected to make a decision within 35 days of the beginning date of the annuity. If an applicant did not file in advance, the RRB is expected to make a decision within 60 days of the date the application was filed.

If an applicant filed for a railroad retirement survivor annuity and was not already receiving benefits as a spouse, the RRB will make a decision to pay, deny, or transfer the application to the Social Security Administration within 60 days of the beginning date of the annuity or the date the application was filed (whichever is later). If an applicant is already receiving a spouse annuity, the RRB will make a decision to pay, deny, or transfer the application for a survivor annuity to the Social Security Administration within 30 days of the first notice of the employee’s death. If an applicant filed for a lump-sum death benefit, the RRB will make a decision to pay or deny the application within 60 days of the date the application was filed.

After the RRB has made its decision, applicants should receive a notice of award or denial within two weeks. If entitled to benefits, it is generally expected that the payment will be deposited in an individual’s bank account within one week of the RRB’s decision.

For disability annuities, processing applications is more complex than for other benefits because of the need to develop medical evidence. Under the Customer Service Plan, if an applicant filed for a railroad retirement disability annuity, the RRB is expected to make a decision within 100 days of the date the application was filed.

If it is determined that an applicant is entitled to disability benefits, the individual’s first payment will be received within 25 days of the date of the RRB’s decision, or the earliest payment date, whichever is later.

Of course, claims for some benefits may take longer to handle than others if they are more complex, or if information from other people or organizations is needed. If this happens, the RRB will provide an explanation and an estimate of the additional time required to make a decision.

8. How are railroad retirement payments made?

The Department of the Treasury has eliminated the vast majority of paper checks for Federal benefit payments. New recipients of federal benefits now receive their payments by electronic means. The most common form of electronic payment for railroad retirement, social security and veterans benefits is through direct deposit, in which the amount is automatically transferred to an individual’s bank account. Those without bank accounts can enroll in Treasury’s Direct Express® program, which electronically transfers Federal payments to an individual’s Direct Express®-issued debit card. The card can then be used like an ordinary debit card. While agencies can still grant waivers from electronic payment, they can do so only in very limited cases.

9. How can individuals find more information about filing for railroad retirement annuities?

More information is available by visiting the RRB’s website, www.rrb.gov, or by calling an RRB office toll-free at (877) 772-5772. Persons can find the address of the RRB office servicing their area by calling the agency’s toll-free number or at www.rrb.gov.

RRB_seal_150pxRailroad Retirement Act spouse and widow(er)s’ annuities (including divorced spouse, surviving divorced spouse and remarried widow(er)s’ annuities) are subject to reduction when Social Security benefits or dual Railroad Retirement annuities are also payable. Such Railroad Retirement benefits may also be reduced when a spouse or widow(er) is entitled to a public service pension unless certain exemption requirements are met.

Since the payment of Railroad Retirement spouse or widow(er)s’ annuities can be affected by entitlement to certain other government benefits, such dual entitlement, if not reported to the Railroad Retirement Board (RRB), can result in benefit overpayments which have to be repaid, sometimes with interest and penalties.

The following questions and answers describe how payments are adjusted by the RRB for spouse and widow(er) annuitants entitled to public service pensions.

1. For social security or railroad retirement purposes, what is considered a public service pension?

A public service pension is any periodic benefit payment, as well as lump-sum payments made in lieu of periodic payments, based on an individual’s own employment with a federal, state, or local government unit. Some examples are pensions paid to teachers, police officers, and civil service personnel on the basis of age or disability. Full salary benefits paid to a retired or resigned judge under the federal judiciary retirement system are also considered public service pensions.

Most military service pensions and payments from the Department of Veterans Affairs will not cause a reduction. A pension paid by a foreign government or an interstate instrumentality also has no effect on a spouse or widow(er)’s annuity.

2. How is the public service pension reduction applied to Railroad Retirement spouse or widow(er)s’ annuities?

For spouses and widow(er)s subject to the public service pension reduction, the Tier I reduction is, under current law, equal to 2/3 of the amount of the public pension. The amount of the public service pension is the current gross amount, before any deductions for income tax withholding, Medicare premiums, health insurance or other benefits.

3. What is the background of the public service reduction in spouse and widow(er)s’ annuities and how does it affect such payments?

The public service pension reduction in Social Security and Railroad Retirement spouse and widow(er)s’ benefits was brought about by 1977 Social Security legislation which also applied to the Tier I benefits of railroad retirement spouses and widow(er)s. The Tier I portion of a Railroad Retirement annuity is based on Railroad Retirement credits and any Social Security credits an employee has acquired. It is computed under social security formulas and approximates what social security would pay if railroad work were also covered by that system. Tier I benefits are, therefore, reduced in the same manner as Social Security benefits when certain other benefits are also payable.

4. Are there any provisions that would exempt Railroad Retirement spouse or widow(er) annuitants from the public service pension offsets?

Generally, in order to be exempt from a public service pension reduction, state and local government workers must be covered by social security throughout their last 60 months of employment with the pension-paying government entity.

The public pension reduction also does not apply to a spouse or widow(er) who filed for and became entitled to her or his Railroad Retirement annuity before December 1977, or to a spouse or widow(er) whose public pension is not based on her or his own earnings.

5. Where can more specific information on how these pension offsets affect Railroad Retirement benefits be obtained?

Persons can contact an RRB field office for information as to how their public service pensions could affect their railroad retirement benefits via the agency’s website, www.rrb.gov, or by calling toll-free at 1-877-772-5772. Most RRB offices are open to the public from 9:00 a.m. to 3:30 p.m., Monday through Friday, except on federal holidays.

RRB logo; Railroad Retirement BoardBANGOR, Maine – Gerald E. Bailey, 68, of Pittston, Maine pled guilty on Tuesday, April 23 to charges of collecting pension that he was not entitled to.

Bailey retired from Springfield Terminal Railway in 2004 and began receiving his pension payments from the Railroad Retirement Board (RRB). According to an affidavit filed by assistant U.S. attorney Gail Fisk Malone, Bailey returned to work from 2007 to 2010 with the Maine Eastern Railroad.

Bailey was able to avoid detection during that time by using another person’s social security number and name on his time cards. He received pension totaling $83,398 during that time which he was not entitled to.

Once you retire, it is illegal to continue to work and receive funds from the RRB at the same time. Employers are required to report earnings of each employee yearly to the RRB. It is unclear how the RRB detected the fraud.

At sentencing, Bailey could face up to 10 years in prison with three years of parole and fines up to $250,000. Bailey was not a member of the UTU.

The Railroad Retirement Act provides disability annuities for railroaders who become totally or occupationally disabled. Medicare coverage before age 65 is also available for totally disabled employees and those suffering from ALS (amyotrophic lateral sclerosis) or chronic kidney disease.

The following questions and answers describe these disability benefits, their requirements, and how to apply for them.

1. How do railroad retirement provisions for total disability and occupational disability differ?

A total disability annuity is based on permanent disability for all employment and is payable at any age to employees with at least 10 years (120 months) of creditable railroad service and, under certain conditions, to employees with five to nine years (60-119 months) of creditable railroad service after 1995.

An occupational disability annuity is based on disability for the employee’s regular railroad occupation and is payable at age 60 if the employee has 10 years (120 months) of railroad service, or at any age if the employee has at least 20 years (240 months) of service. A “current connection” with the railroad industry is also required for an occupational disability annuity. The current connection requirement is normally met if the employee worked for a railroad in at least 12 of the last 30 consecutive months immediately preceding his or her annuity beginning date.

If an employee does not qualify for a current connection on this basis, but has 12 months of 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 date of death. 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.

2. Under what conditions can disabled employees with five to nine years of service be eligible for railroad retirement disability annuities?

Employees with five to nine years (60-119 months) of service after 1995 may qualify for an annuity based on total and permanent, but not occupational, disability if they have a disability insured status under social security law. A disability insured status is established when an employee has social security or railroad retirement earnings credits in 20 calendar quarters in a period of 40 consecutive quarters ending in or after the quarter in which the disability began.

Unlike the two-tier annuities payable to a 10-year employee, disability annuities payable to 
five-year employees are initially limited to a tier I social security equivalent benefit; a tier II benefit is not payable in these cases until the employee attains age 62. And, the employee’s tier II benefit will be reduced for early retirement in the same manner as the tier II benefit of an employee who retired on the basis of age rather than disability at age 62 with less than 30 years of service.

3. How do the standards for total disability and occupational disability differ?

An employee is considered to be totally disabled if medical evidence shows a permanent physical and/or mental impairment preventing the performance of any regular and gainful work. A condition is considered to be permanent if it has lasted or may be expected to last for a continuous period of at least 12 months or result in death.

An employee is considered to be occupationally disabled if a physical and/or mental impairment prevents the employee from performing the duties of his or her regular railroad occupation, even though the employee may be able to perform other kinds of work. An employee’s regular occupation is generally that particular work he or she has performed for hire in more calendar months, which may or may not be consecutive, than any other work during the last five years; or that work which was performed for hire in at least one-half of all the months, which must be consecutive, in which the employee worked for hire during the last 15 years.

4. How does the amount of a railroad retirement disability annuity compare to a social security disability benefit?

Disabled railroad workers retiring directly from the railroad industry at the end of fiscal year 2012 were awarded almost $2,900 a month on the average, while awards for disabled workers under social security averaged about $1,190.

5. When is early Medicare coverage available for the disabled?

In general, Medicare coverage before age 65 may begin after a disabled employee annuitant has been entitled to monthly benefits based on total disability for at least 24 months and has a disability insured status under social security law. There is no 24-month waiting period for those who have ALS (amyotrophic lateral sclerosis), also known as Lou Gehrig’s disease. The fact that an employee is initially awarded an occupational disability annuity does not preclude early Medicare coverage, if the employee’s physical and/or mental condition is such that he or she is totally and permanently disabled.

Medicare coverage on the basis of permanent kidney failure requiring dialysis or a kidney transplant is available not only to employee annuitants, but also to employees who have not retired but meet certain minimum service requirements, as well as spouses and dependent children. For those suffering from chronic kidney disease, coverage may begin with the third month after dialysis treatment begins, or earlier under certain conditions.

6. Do the railroad retirement disability annuity requirements include a waiting period similar to the one required for social security disability benefits?

Yes. A five-month waiting period beginning with the month after the month of the disability’s onset is required before railroad retirement disability annuity payments can begin. However, an applicant need not wait until this five-month period is over to file for benefits.

The Railroad Retirement Board (RRB) accepts disability applications up to three months in advance of an annuity beginning date which allows the agency to complete the processing of most new claims before a person’s actual retirement date. An employee can be in compensated service while filing a disability application provided that the compensated service is not active service and terminates within 90 days from the date of filing. When an employee files a disability application while still in compensated service, it will be necessary for the employee to provide a specific ending date of the compensation.

Compensated service includes not only compensation with respect to active service performed by an employee for an employer, but also includes pay for time lost, wage continuation payments, certain employee protection payments and any other payment for which the employee will receive additional creditable service.

7. What documentation is required when filing for a railroad retirement disability annuity?

Employees filing for disability annuities are required to submit medical evidence supporting their claim. Applicants should be prepared to furnish dates of hospitalization, names and dosages of medication, names of doctors, etc. Applicants may also be asked to take special medical examinations given by a doctor named by the RRB. If a disability applicant is receiving workers’ compensation or public disability benefits, notice of such payments must be submitted.

Sources of medical evidence for railroad retirement disability purposes may include, but are not limited to, the applicant’s railroad employer, personal physician and hospital, the Social Security Administration or the agency paying workers’ compensation or public disability benefits. This evidence generally should not be more than 12 months old. In addition, proof of age and proof of any military service credit claimed and a description of past work activity will also be required.

8. What is the best way to apply for a railroad retirement disability annuity or early Medicare coverage?

Applications for railroad retirement disability annuities are generally filed at one of the RRB’s field offices, or at one of the office’s Customer Outreach Program (CORP) service locations, or by telephone and mail. However, applications by rail employees for early Medicare coverage on the basis of kidney disease have to be filed with an office of the Social Security Administration, rather than the RRB.

To expedite filing for a railroad retirement disability annuity, disabled employees or a family member should call, write, or send a secure message via the RRB’s website, www.rrb.gov, to the agency’s nearest field office to schedule an appointment. For the appointment, claimants should bring in any medical evidence in their possession and any medical records they can secure from their treating sources, such as their regular physician. Employees who are unable to personally visit an RRB office or meet an RRB representative at a CORP service location may request special assistance, such as having an agency representative come to a hospital or the employee’s home. RRB personnel can assist disabled employees with their applications and advise them on how to obtain any additional medical evidence required or any other necessary documents or records.

9. Can an individual continue to receive an employee disability annuity even if he or she does some work after it begins?

Special earnings rules apply to disability annuitants and they are more stringent than those that apply to annuitants who have retired on the basis of age and service. Disability annuities are not payable for any month in which the annuitant earns more than $810 in 2013 in any employment or self-employment, exclusive of work-related expenses. Withheld payments will be restored if earnings for 2013 are less than $10,125 after deduction of disability-related work expenses. Failure to report such earnings could involve a significant penalty charge.

These disability work restrictions cease upon a disabled employee annuitant’s attainment of full retirement age (age 65 for those born before 1938 to age 67 for those born in 1960 or later). This transition is effective no earlier than full retirement age, even if the annuitant had 30 years of service. Earnings deductions continue to apply to annuitants working for their last pre-retirement non-railroad employer.

If a disabled annuitant works before full retirement age, this may also raise a question about the possibility of that individual’s recovery from disability, regardless of the amount of earnings. Consequently, any earnings must be reported promptly to avoid overpayments, which are recoverable by the RRB and may also include penalties.

10. Does employment with a rail labor organization affect eligibility for a disability annuity?

Payment of an employee’s disability annuity cannot begin earlier than the day after the employee stops working in compensated service for any railroad employer, including labor organizations. Such work includes service for more than $24.99 in a calendar month to a local lodge or division of a railway labor organization. Also, work by a local lodge or division secretary collecting insurance premiums, regardless of the amount of salary, is railroad work which must be stopped.

11. Must an employee relinquish employment rights in order to receive a disability annuity?

An employee can be in compensated, but non-active, service while filing a disability annuity application as long as the compensated service terminates within 90 days from the date of filing. However, in order for a supplemental annuity to be paid or for an eligible spouse to begin receiving benefits, a disability annuitant under full retirement age must relinquish employment rights.

12. How can individuals get more information about disability annuities?

More information is available by visiting the RRB’s website, www.rrb.gov, or by calling an RRB office toll-free at 1-877-772-5772. Persons can find the address of the RRB office servicing their area by calling the agency’s toll-free number or at www.rrb.gov.

RRB logo; Railroad Retirement BoardThe Railroad Retirement Board (RRB) holds informational conferences, and all UTU representatives are urged to attend to learn more about pensions, disability annuities and other services offered by the RRB. 

All informational conference registrations begin at 8:00 a.m., with the programs beginning promptly at 8:30 a.m. and ending at 12:15 p.m. 

For more information, go to www.rrb.gov.

June

*Friday, June 1: Eagan, Minn., Best Western Dakota Ridge, 3450 Washington Dr., I-35E & Yankee Doodle Road

*Friday, June 8: Billings, Mont., Hilton Garden Inn of Billings, 2465 Grant Road

*Friday, June 8: Mansfield, Mass., Holiday Inn Mansfield, 31 Hampshire Street

*Friday, June 15: Portland, Ore., Hilton Garden Inn, Portland Airport, 12048 N.E. Airport Way

*Friday, June 15: Tinley Park, Ill., Tinley Park Convention Center, 18451 Convention Center Drive 

*Friday, June 22: Barboursville, W. Va., Holiday Inn Hotel and Suites, 3551 U.S. Route 60 E. 

*Friday, June 22: Duluth, Minn., Radisson Hotel Duluth Harborview, 505 West Superior Street 

*Friday, June 29: Roanoke, Va., Hyatt Place, 5040 Valley View Blvd., North N.W.

 

September 

*Friday, Sept. 7: Albany, N.Y., Albany Ramada Plaza, 3 Watervliet Ave. Ext. 

*Friday, Sept.14: Fort Worth, Texas, Crowne Plaza Fort Worth South, The Fort Worth Room, 100 E. Altamesa 

*Friday, Sept. 14: Renton, Wash., Holiday Inn, One South Grady Way 

*Friday, Sept. 21: West Des Moines, Iowa, Hampton Inn, 7060 Lake Dr.

 

October 

*Friday, Oct. 12: Little Rock, Ark., Comfort Inn & Suites Downtown, 707 Interstate 30 

*Friday, Oct. 12 Pittsburgh: Greater Pa. Regional Council of Carpenters Union Hall, 650 Ridge Rd. 

*Friday, Oct. 19 Wichita, Kan., Best Western Airport Inn and Conference Center, 6815 W. Kellogg (U.S. Hwy. 54) 

*Friday, Oct. 26 Philadelphia: Sheet Metal Workers Local 19 Union Hall, 1301 S. Columbus Blvd. 

*Friday, Oct. 26: Matthews, N.C., Hampton Inn, 9615 Independence Pointe Pkwy.

 

November 

*Friday, Nov. 16: Metairie, La., Four Points by Sheraton, New Orleans Airport, 6401 Veterans Memorial Blvd.

 

December 

*Friday, Dec. 7: Jacksonville, Fla., Holiday Inn (I-95 Baymeadows), 9150 Baymeadows Rd.

A new year under the Railroad Unemployment Insurance Act for unemployment and sickness benefits begins July 1.

The maximum daily benefit rate payable remains at $66 in the new benefit year.

Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day registration periods. Thus, the maximum benefits for biweekly claims will continue to total $660.

During the first 14-day claim period in a benefit year, benefits are payable for each day of unemployment or sickness in excess of seven, rather than four, which, in effect, provides a one-week waiting period.

Initial sickness claims must also begin with four consecutive days of sickness. However, only one waiting period is required during any period of continuing unemployment or sickness, even if that period continues into a subsequent benefit year. Claimants already on the rolls will normally not be required to serve another waiting period because of the onset of the new benefit year.

To qualify for railroad unemployment or sickness benefits in the benefit year beginning July 1, an employee must have had railroad earnings of at least $3,325 in calendar year 2010, not counting more than $1,330 for any month. Those who were first employed in the rail industry in 2010 must also have at least five months of creditable railroad service in that year.

Under certain conditions, employees who do not qualify in the new benefit year on the basis of their 2010 earnings may still be able to receive benefits beginning July 1.

Employees who received normal benefits in the benefit year ending June 30, might still be eligible for extended benefits.

Ten-year employees may be eligible for accelerated benefits, if they have rail earnings of at least $3,325 in 2011, not counting earnings of more than $1,330 a month.

Application forms for unemployment and sickness benefits may be obtained from railroad employers, UTU local or general committee offices, any Railroad Retirement Board (RRB) office, or the Railroad Retirement Board’s website at www.rrb.gov.

Applications for unemployment benefits may be filed on-line.

Since November 2010, claimants have been able to file biweekly claims for sickness benefits over the Internet as well. However, rail employees who miss work due to illness or injury still must file a paper form that serves as their initial application for sickness benefits.

To access Railroad Retirement Board online services, employees must first establish an RRB Internet Services account. For security purposes, first-time users must apply for a Password Request Code, which they will receive by regular mail in about 10 business days.

To do this, employees should click on “requesting a Password Request Code (PRC)” in the “Benefit Online Services Login” section of the www.rrb.gov home page.

Once employees establish their online accounts, they will be able to file their applications and biweekly claims for unemployment benefits as well as conduct other business with the RRB over the Internet.

Employees are encouraged to initiate an online account while still employed so the account is established if they ever need to use these or other select RRB Internet services. Employees who have already established online accounts do not need to do so again.

Claimants with questions about unemployment or sickness benefits should contact an RRB office by calling toll free at (877) 772-5772. Field office locations can also be found online at www.rrb.gov.

The Railroad Retirement Board will begin June 1 to withhold from benefits checks premiums for Medicare Part C (Medicare Advantage plans) and Medicare Part D (prescription drug plans).

Withholding is voluntary, and beneficiaries should contact their plans to request withholding by the Railroad Retirement Board of these premiums from their monthly benefits payments.

Part C and Part D premiums vary according to the plan and provider.

Note that a new federal law requires some Part D beneficiaries also to pay an additional monthly adjustment amount, depending on a beneficiary’s or married couple’s modified adjusted gross income.

While the RRB will be able to deduct the regular Part D premiums for individuals who elect to have them withheld from their benefits payments, Part D enrollees subject to the monthly adjustment amount will continue to receive a bill for that portion as the Railroad Retirement Board says it is unable to deduct those amounts from benefits at this time.

The Part D income-related monthly adjustment amounts are $12, $31.10, $50.10 or $69.10, depending on the extent to which an individual beneficiary’s modified adjusted gross income exceeds $85,000, or a married couple’s income exceeds $170,000. The Social Security Administration determines if a monthly adjustment amount is due, based upon the most recent tax return information available from the IRS.

The Railroad Retirement Board also reminds Medicare beneficiaries that the annual enrollment period for Part C and Part D coverage will be between Oct. 15 and Dec. 7 this year, rather than Nov. 15 through Dec. 31, as it was in previous years. Changes and enrollments made during this period will still be effective Jan. 1, 2012.

The Railroad Retirement Board will mail to railroad workers in June their annual Certificate of Service Months and Compensation (Form BA-6), showing creditable railroad service and compensation for 2010.

If you do not receive this Form BA-6 by July 1, or if you find the information to be incorrect or incomplete, contact your nearest Railroad Retirement Board field office by calling the RRB’s toll-free hotline at (877) 772-5772.

In checking the 2010 compensation total, be aware that only annual earnings up to $106,800 were creditable for Railroad Retirement purposes in that year. That is the annual maximum on which Railroad Retirement Tier I taxes are paid and for which income is credited for Railroad Retirement benefits calculations.

Form BA-6 also shows the number of months of verified military service creditable as service under the Railroad Retirement Act.