Public Affairs | RRB.Gov

Railroad Unemployment Insurance Account

Railroad unemployment insurance funds not needed immediately for the payment of benefits are deposited in the Railroad Unemployment Insurance Account maintained by the Treasury. This account, together with similar accounts for each State, forms a national unemployment trust fund. Deposits in the unemployment trust fund are invested by the Treasury in securities of the U.S. Government.

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Contributions

The railroad unemployment and sickness benefit programs are financed exclusively by contributions of railroad employers, based on the taxable earnings of their employees. The employees themselves do not contribute. In calendar year 2017, the taxable earnings base is the first $1,545 of each employee's monthly earnings. The earnings base is indexed each year by a rate which is equal to approximately two-thirds of the annual rate of increase in the maximum base for railroad retirement tier I taxes.

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Financing Unemployment and Sickness Insurance

Under the Railroad Unemployment Insurance Act, an employee's eligibility for benefits is based on taxable earnings in a calendar year and normally applies only to benefits in the benefit year starting the following July 1. For example, qualifying earnings in calendar year 2016 ordinarily give rise to normal benefits only in the benefit year beginning July 1, 2017. Given this limited period of potential benefits, the financing of railroad unemployment and sickness benefits is essentially a short-term proposition in comparison to the financing of retirement benefits.

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Income Taxes

Unemployment benefits paid by the RRB are subject to Federal income taxes, just like unemployment benefits paid under the State government programs.

Sickness benefits paid by the RRB, except for sickness benefits resulting from on-the-job injuries, are subject to Federal income tax under the same limitations and conditions that apply to the taxation of sick pay received by workers in other industries.

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Appeals

Employees

If a claimant disagrees with a decision made on a claim, he or she has 60 days from the date of the initial notice of the decision in which to file a written statement requesting reconsideration from the RRB office that made the decision. This step is mandatory before a decision may be appealed to the RRB's Bureau of Hearings and Appeals. Failure to request reconsideration within 60 days will result in forfeiture of further appeal rights.

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Claiming Sickness Benefits

An application for sickness benefits can be obtained from railroad labor organizations, railroad employers, any RRB office, or at www.rrb.gov. An application and a doctor's statement of sickness are required at the beginning of each period of continuing sickness for which benefits are claimed.

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Claiming Unemployment Benefits

Claimants can apply for unemployment benefits by mail or online.

To apply by mail, claimants must obtain an application from their labor organization, employer, local RRB field office, or our website. The completed application should be mailed to the local RRB field office as soon as possible and, in any case, must be filed within 30 days of the date on which the claimant became unemployed or the first day for which he or she wishes to claim benefits. Benefits may be lost if the application is filed late.

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Payments

Applicants for unemployment-sickness benefits can check with their local RRB field office as to when they can expect their first payment. Customer service standards and progress reports are available in field offices and on our website.

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Free Placement Service

The Railroad Unemployment Insurance Act authorizes the RRB to operate a free placement service. The primary purpose of the placement service is to secure new employment for experienced railroad workers who have lost their jobs.

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Disqualifications

Can an employee be disqualified from receiving benefits?

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