Financial Report

FINANCIAL REPORT

The Railroad Retirement Board is required to report annually to Congress on the financial status of the railroad unemployment insurance system. The railroad unemployment insurance financial report submitted in June 2016 was 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 surcharge of 1.5 percent, in effect for 2016, will remain in effect for 2017. A surcharge of 1.5 percent is also likely for 2018. No financing changes were recommended.

Table 17.--Unemployment and Sickness Insurance Program
Consolidated Financing Sources, Costs, and Net Position (Millions)¹

For the Fiscal Year Ended September 30	2016	2015
Financing Sources:
Employer Payroll Taxes	$117.2	$74.7
Interest Income	2.3	2.7
General Appropriations	0.0	0.0
Other	(16.4)	(13.2)
Total Financing Sources	103.1	64.2
Costs:
Benefit Payments:
Unemployment	74.9	35.7
Sickness	51.8	50.6
Other	5.6	(0.3)
Total Costs	132.3	86.0
Financing Sources over Costs	(29.2)	(21.8)
Net Position - Beginning of Period	243.8	265.6
Net Position - End of Period²	$214.6	$243.8
¹ Prepared on an accrual basis of accounting.
² Includes funds from the Worker, Homeownership, and Business Assistance Act of 2009 and the American Recovery and Reinvestment Act of 2009.

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