The Railroad Unemployment Insurance Amendments Act of 1996
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The Railroad Unemployment Insurance Amendments Act of 1996
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This Act, signed into law on October 9, 1996, increased the railroad unemployment and sickness insurance daily benefit rate and revised the formula for indexing future benefit rates. It also reduced the waiting period for initial benefit payments and eliminated duplicate waiting periods in continuous periods of unemployment and sickness. In addition, the Act applied an earnings test to claims for unemployment and reduced the duration of extended benefit periods for long-service employees. The Act's provisions were based on joint recommendations to Congress negotiated by rail labor and management in order to update the railroad unemployment insurance system along the lines of State unemployment insurance systems. The following provisions were effective upon the October 9, 1996, enactment date:
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- The maximum railroad unemployment and sickness insurance daily benefit rate increased to $42 from $36. The formula for indexing future benefit rates was modified so that rates increase more frequently, generally with the start of each new benefit year in July. The daily benefit rate increased to $43 in July 1997, and gradually increased to $72 in July 2015. It will remain $72 in July 2017 and will rise to $77 in July 2018.
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- The law made benefits payable for each day of unemployment or sickness in excess of 7 during an employee's first 14-day registration period in a benefit year. Under prior law, no benefits were payable for the first 14-day claim in a benefit year in order to satisfy a 2-week waiting period requirement. Also, a second waiting period is no longer required when a new benefit year begins during a continuing period of unemployment or sickness.
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- An earnings test was made applicable to claims for intermittent unemployment. If an employee's earnings for days worked in a 14-day registration period are more than a certain indexed amount, no benefits are payable for any days of unemployment in that period.
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- The Act eliminated the second 13-week period of extended benefits for those with 15 or more years of service.
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