Relations Between the RRB and Other Agencies
As an independent agency in the executive branch of the Federal Government, the RRB has many dealings with a number of other Federal agencies and with some State agencies. Its dealings with some of these agencies, such as the President's Office of Management and Budget, the Office of Personnel Management, the Government Accountability Office, and the Department of the Treasury, are similar to the dealings of other executive branch agencies with these units. The RRB's relations with certain others--principally, the Social Security Administration, the Centers for Medicare & Medicaid Services, State employment security departments, and on a smaller scale, the Department of Labor--are related directly or indirectly to the various benefit programs. The RRB participates in the Treasury Offset Program which reduces benefit payments to recover delinquent debts owed to other Federal agencies.
The RRB's relationship with the Social Security Administration is particularly extensive because of the coordination between the two systems. Railroad retirement annuities may be based in part on social security credits and social security benefit amounts awarded after 1974 to railroad retirement annuitants are paid through the RRB as part of combined railroad retirement-social security monthly benefit payments. The Railroad Retirement Board and the Social Security Administration have an interagency agreement providing for system-to-system access between the two agencies. This allows RRB computer systems to access information as it is needed, thus improving customer service and reducing errors.
Relations Between the RRB and Congress
The RRB has numerous contacts with the Congress as a whole and with its individual members and committees. It sends the President and Congress an annual report on its operations and, on request, supplies additional information on the agency's programs. Officials of the RRB testify at congressional hearings on proposed legislation to amend the Railroad Retirement and Railroad Unemployment Insurance Acts, and the agency prepares reports on such legislation. Congress has jurisdiction over the amounts available to the railroad retirement system for benefit payments and for administration.
Relations Between the RRB and Railroads
The administrative organization of the RRB fosters close relations with railroad employers, employees, and their representatives. As mentioned earlier, two of the Board's three members are appointed on the recommendations of railway labor and management associations, and labor and management officials have been active in the development of the railroad retirement and unemployment insurance programs since their inception.
In addition, the RRB relies on labor groups and railroad employers for assistance in keeping railroad personnel informed about the agency's benefit programs. The RRB conducts informational programs for railroad labor and management officials to acquaint them with the details of the benefit programs. These officials, in turn, educate railroad workers as to their benefit rights and responsibilities.
Railroad employers and railway labor groups also cooperate with the RRB in a joint placement program to find jobs for unemployed personnel. These joint placement efforts help to reduce the costs of the unemployment insurance program.
The RRB has direct contact with railroad employees through its field offices where its personnel explain benefit rights and responsibilities on an individual basis, assist employees in applying for benefits, provide related services for annuitants, and answer any questions related to the benefit programs.
Through various publications and press releases, the RRB disseminates, as widely as possible, information on its operations and the provisions of the laws it administers. Its publications include annual reports, triennial actuarial valuations, and benefit booklets and leaflets.
Relations Between the RRB and the National Railroad Retirement Investment Trust
The National Railroad Retirement Investment Trust was established by the Railroad Retirement and Survivors' Improvement Act of 2001. The sole purpose of the Trust is to manage and invest railroad retirement assets. The Trust is a tax-exempt entity independent from the Federal Government.
The Act authorizes the Trust to invest the assets of the Railroad Retirement Account in a diversified investment portfolio in the same manner as those of private sector retirement plans. Prior to the Act, investment of Railroad Retirement Account assets was limited to U.S. Government securities.
While the Act does not delegate any authority to the Railroad Retirement Board with respect to day-to-day activities of the Trust, the Act does provide that the RRB may bring a civil action to enjoin any act or practice of the Trust that violates the provisions of the Act or to enforce any provision of the Act. The Trust has no powers or authority over the administration of benefits under the Railroad Retirement Act.
Budget Estimates
Each year, Congress specifies in an appropriation act how much of the money derived from employer and employee taxes the RRB may spend to administer the benefit programs. The appropriation is based on budget estimates prepared by the RRB. The requested appropriation is sent to the Congress at the same time it is sent to the President's Office of Management and Budget. In addition, as explained in the retirement financing chapter (click here), the level of certain dual benefit payments for a fiscal year is determined by the Federal budget and appropriations process.
Relation of Administrative Costs to Benefit Payments
The RRB has always had an exceptionally good record of administrative economy. Total administrative expenses currently average about one percent of benefit payments, despite the complexity of the RRB's programs. Fiscal year 2016 administrative expenses were $141.8 million.