The RRB's 2016 railroad retirement financial report to Congress which addressed the period 2016-2040, was generally favorable, concluding 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 25-year projection period. The long-term stability of the system, however, is not assured. Under the current financing structure, actual levels of railroad employment and investment return over the coming years will determine whether corrective action is necessary.
The RRB's 2016 railroad unemployment insurance financial report was also generally favorable. Even as projected maximum benefit rates increase 36 percent (from $72 to $98) from 2015 to 2026, experience-based contribution rates maintain solvency. The report also predicted average employer contribution rates well below the maximum throughout the projection period. A 1.5 percent surcharge was imposed in calendar year 2016 in order to maintain a minimum account balance. Under all three employment assumptions, the report projects a 1.5 percent surcharge in 2017 and 2018, with a surcharge of 1.5 percent in 2019 predicted under the pessimistic assumption, and likely under both the intermediate and optimistic assumptions.
The National Railroad Retirement Investment Trust's annual management report for fiscal year 2015 showed that, as of September 30, 2015, the net asset value of the Trust-managed assets was $24.5 billion. This represented a decrease from $26.1 billion in the previous year, with a net investment return for the year of -1.5 percent. The ending balance also reflects a transfer of $1.2 billion to the U.S. Treasury for the payment of railroad retirement (tier II) benefits. Total railroad retirement system assets, including those maintained at the Treasury, equaled $26.3 billion.
Access the 2016 financial reports for railroad retirement and railroad unemployment insurance and the National Railroad Retirement Investment Trust's 2015 annual management report by visiting each designated page of this website.