Beginning October 1, 2013, the U.S. Railroad Retirement Board (RRB) will reduce railroad unemployment and sickness insurance benefits by 7.2 percent due to Federal budget cuts first implemented in March 2013. Since that time, these benefits had been reduced by 9.2 percent.
The adjusted reduction amount is based on revised projections of benefit claims and payments under the Railroad Unemployment Insurance Act. It will remain in effect through September 30, 2014, the end of the fiscal year. Reductions in future fiscal years, should they occur, will be calculated based on applicable law.
The 7.2 percent reduction in railroad unemployment and sickness benefits will reduce the maximum daily benefit rate from $68.00 to $63.10. As a result, the total maximum amount payable in a 2-week period with 10 days of unemployment will drop from $680.00 to $631.04.
The Railroad industry supports restoration of benefit cuts to rail workers as a result of sequestration. The Association of American Railroads sent a letter to the ranking members of the Budget Committee detailing the effects of sequestration on railroad retirement benefits.
“I commend the Rail Industry for their support in helping us to restore these benefits to its employees.” Said TCU/IAM President Bob Scardelletti.
Click here to read the letters to the Budget Committee members.
Click here to read the full release from the RRB.
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