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Quality Reporting Service Center

 

 

 
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Office Email
QRSC@rrb.gov
Office Phone
(312) 751-4992

Chapter 07: Separation/Severance Payments and Dismissal Allowance

Chapter 07: Separation/Severance Payments and Dismissal Allowance

 

Separation/ Severance and Dismissal Allowances are Creditable Compensation

Payments that result from the abolition of an employee's job may be known as separation, severance, termination, coordination, dismissal, continuation, or guarantee payments or allowances. By whatever name they are called, they constitute creditable and taxable compensation. The regulations of the Railroad Retirement Board (RRB) distinguish between separation or severance allowances and dismissal allowances. These two types of payments are creditable in different ways.

  • Read more about Chapter 07: Separation/Severance Payments and Dismissal Allowance

Chapter 06: Pay for Time Lost

Chapter 06: Pay for Time Lost

 

Pay for Time Lost Defined

 

  • Read more about Chapter 06: Pay for Time Lost

Chapter 05: Back Pay

Chapter 05: Back Pay

 

Back Pay Defined

Back pay, as used in these instructions, is a retroactive wage increase. For example, a negotiated contract expires December 31st but employees continue to work while a new contract is negotiated. A new contract is approved in the following August which includes a pay increase retroactive to January 1st. The retroactive increase, or back pay, is paid in September, for work beginning January 1st.

Crediting Back Pay

  • Read more about Chapter 05: Back Pay

Chapter 04: Vacation Pay

Chapter 04: Vacation Pay

 

Chapter Overview

The instructions in this chapter are intended only to provide information on correct reporting of service and compensation in various vacation pay situations. Some examples may not be applicable to every employer.

Vacation Taken

Vacation compensation may be credited to the actual vacation period or may be credited when paid. It is assumed that only current employees with employment rights can actually take a vacation.

  • Read more about Chapter 04: Vacation Pay

Chapter 03: Sick Pay

Chapter 03: Sick Pay

 

Chapter Overview

This chapter provides basic information regarding sick pay. If you make creditable sickness payments and need the Reporting Instructions for Creditable Sickness Payments, you may wish to call or write to the Quality Reporting Service Center (QRSC) at

Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street, 7th Floor
Chicago, Illinois 60611-1275

Phone: (312) 751-4992

  • Read more about Chapter 03: Sick Pay

Chapter 02: Miscellaneous Compensation

Chapter 02: Miscellaneous Compensation

 

Definition of Miscellaneous Compensation

Miscellaneous compensation is any payment which is subject to Tier I taxes and is creditable as Tier I compensation, but cannot be credited as regular compensation. Miscellaneous compensation, as referred to in these instructions, must meet the following conditions:

  • Read more about Chapter 02: Miscellaneous Compensation

Chapter 01: Regular Earnings

Chapter 01: Regular Earnings

 

Regular Earnings Definition

Regular earnings are payments made for services rendered as an employee. This includes payments to part-time and seasonal employees, as well as regular earnings paid to employees who are not working due to illness, injury, or pregnancy. Any payment made through the regular payroll system is presumed to be regular earnings. Regular earnings are creditable as Tier I, Tier II, and RUIA compensation and generate a service month credit for the month service was performed.

Non-Monetary Earnings

  • Read more about Chapter 01: Regular Earnings

Chapter 04: Form Letter GL-132, Annuitant Return to Service

Chapter 04: Form Letter GL-132, Annuitant Return to Service

 

Why is Form Letter GL-132 Sent?

Form Letter GL-132 is designed to determine if service months, reported after an annuitant's annuity beginning date, are properly credited. An annuity under the Railroad Retirement Act (RRA) is not payable for any month in which an employee works or otherwise earns creditable service from an employer covered under the RRA. If service is reported for a month that is after the month an employee was awarded an annuity under the RRA, a Form Letter GL-132 will be sent to clarify the service.

  • Read more about Chapter 04: Form Letter GL-132, Annuitant Return to Service

Chapter 03: Form Letter GL-99, Employer's Deemed Service Month Questionnaire

Chapter 03: Form Letter GL-99, Employer's Deemed Service Month Questionnaire

 

Deemed Service Months

In order to complete Form Letter GL-99, Employer's Deemed Service Month Questionnaire, an understanding of deemed service months is necessary.

  • Read more about Chapter 03: Form Letter GL-99, Employer's Deemed Service Month Questionnaire

Chapter 02: Requests for Adjustments and Clarifications

Chapter 02: Requests for Adjustments and Clarifications

 

Clarification of Data Sent to the RRB

Employers may receive written requests, in the form of referrals or form letters, for adjustment to, or clarification of, previously submitted service and compensation reports. Some notices are merely advisory in nature about reports that have been processed. Others require a response from the employer in order to process a service and compensation report that is being held in abeyance, or suspended status, while awaiting correction from the employer.

Some of the more common form letters released are explained below.

  • Read more about Chapter 02: Requests for Adjustments and Clarifications

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