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California State Legislative Board - BLET
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Contact Kent Richards
E-mail address: ble56lr@aol.com
Ringing the Engine's Bell
Recent
changes to Rule 5.8.1 and 5.8.2 give additional warning to anyone near the
track.
Ring
the engine bell under any of the following conditions:
- Before
moving, except when making momentary stop and start switching movements.
- As
a warning signal anytime it is necessary.
- When
approaching an employee or equipment on or near the track.
- When
moving on the main track or siding, ring bell continuously while passing
standing equipment on an adjacent track.
- When
whistle signal (7) is required.
- When
approaching public crossings at grade with the engine in front and
sounding the whistle is prohibited, start signal at the crossing
sign. If no sign, or if movement begins between sign and crossing, start
the signal before the crossing to provide warning. Continue ringing
bell until the crossing is occupied.
The
whistle may be used at any time as a warning, regardless of any whistle
prohibitions. When approaching areas where it is known employees are working on
a track adjacent to a main track or siding, sound warning 5.8.2 (1).
When
other employees are working in the immediate area, sound the required whistle
signal before moving.
Other
forms of communications may be used in place of whistle signals, except signals
(1), (7) and (8). See following chart.
The
required whistle signals are illustrated by "o" for short sounds and
"-" for longer sounds.
|
Sound |
Indication |
|
[1] Sound whistle to attempt to attract attention to the train |
Use
when persons or livestock are on the track at other than road crossings at
grade. Use when within quiet zones when engineer believes such action is
appropriate. |
|
[2] - |
When stopped: air brakes are applied, pressure equalized. |
|
[3]
- - |
Release
brakes. Proceed |
|
[4]
o o |
Acknowledgement
of any signal not otherwise provided for. |
|
[5]
o o o |
When stopped: back up. Acknowledgment of hand signal to back up. |
|
[6] o o o o |
Request for signal to be given or repeated if not understood. |
|
[7]- - o - |
When approaching public crossings at grade, with engine in front, sound signal as follows:
Prolong or repeat signal until the engine completely occupies the crossing(s). At locations where crossing signs are displayed sound whistle as required above regardless of the type of crossing train is approaching. In the states of California and Montana sound whistle signal at all crossings, public and private. |
|
[8] - o |
Approaching men or equipment on or near the track, regardless of any whistle prohibitions. After this initial warning, sound whistle signal (4) intermittently until the head end of train has passed the men or equipment. |
Subject: Switching steps...49 CFR 230.30 FYI...
(c) Sill steps-
After September 30, 1979, road locomotives with corner stairway openings must
be equipped with (a) uncoupling mechanisms that can be operated safely from the
bottom stairway opening step as well as ground level, and (b) the vertical
handholds and horizontal end handholds prescribed in § 231.30(e) and (g). No
part of the uncoupling mechanism may extend into the stairway opening or end
platform area when the mechanism is in its normal position or when it is
operated. Each carrier shall so equip forty percent (40 percent) of its road
locomotives by October 1, 1977, seventy percent (70 percent) by October 1,
1978, and all its road locomotives by October 1, 1979.
231.30(c)
(c) Switching step-
231.30(c)(1)
(1) Number. Each locomotive used in switching service must have four (4)
switching steps. (See Plate A)
231.30(c)(2)(i)
(i) On locomotives built after March 31, 1977, a minimum width of twenty-four
(24) inches and a minimum depth of twelve (12) inches, except when necessary to
accommodate the turning arc of a six-wheel truck and its appurtenances, the
inside edge of the switching step shall have a minimum width of seventeen (17)
inches (See Plate B);
231.30(c)(3)
(3) Location. Switching steps must be located on each side near each end of a
locomotive used in switching service. The bottom step of the stairway at these
locations may also serve as a switching step if it meets all of the
requirements of this section.
231.30(c)(4)(ii)
(ii) Vertical clearance must be unobstructed, except for minor intrusions
created by mechanical fasteners or a small triangular gusset plate at the
platform level walkway, and free for use for at least a distance of eighty-four
(84) inches over a portion of the switching step that is not less than seven
(7) inches deep by eighteen (18) inches wide on locomotives built prior to
April 1, 1977, and of not less than seven (7) inches deep by twenty-four (24)
inches wide on locomotives built after March 31, 1977.
231.30(c)(6)
(6) Visibility. The outer edge of each switching step that is not illuminated
must be painted a contrasting color. On locomotives built after March 31, 1977,
switching steps shall be illuminated; on multiple-unit locomotive consists used
in switching service, only the front switching steps of the leading unit and
the rear switching steps of the trailing unit must be illuminated.
231.30(d)(1)
(1) Except for steam locomotives equipped as provided in § 231.16, locomotives
used in switching service built after March 31, 1975, may not be equipped with
end footboards or pilot steps.
231.30(d)(2)
(2) Except for steam locomotives equipped as provided in § 231.16, locomotives
used in switching service built before April 1, 1975, may not be equipped with
end footboards or pilot steps after September 30, 1978. Whenever end footboards
or pilot steps are removed from a locomotive, the uncoupling mechanism and
horizontal end handholds of the locomotive must be modified to comply with
paragraphs (f) and (g) of this section.
Major Testing Coming
News Flash 04-04-06
UP MTO MOP source main line testing to include the
following:
#1. Red-Yellow Flag (un-foreseen)
A. Restricted
speed 2 miles from red-yellow, expect red flag
B. Call
dispatcher
C. Expect
stop signal/flag/fusee/etc. 2 miles from red-yellow
D. Resume
speed after head end is 4 miles from red-yellow
#2. Yellow Flag (un-foreseen)
A. Reduce
to 10 mph 2 miles from yellow flag
B. Call
dispatcher
A. Resume
speed when rear is 4 miles from yellow flag
#3. Light out test (darken signal)
A. Crew
complies with most restrictive indication
B. Stop
before if under yellow or more restrictive signal
C. Stop
w/good train handling if on flashing yellow or better
D. Expect
restricted speed test after passing dark signal
E. Call
dispatcher
#4. Turn off Scanner (voice message)
A. Call
dispatcher
B. Reduces
to 35 mph until next same-type scanner passed, or:
C. Remains
at 35 mph until roll-by on both sides, or:
D. If
second scanner fails, inspect train
E.
Expect turn-off scanner test during 3 above tests
#5 Besides all the other normal testing
A.
Radio Test (Uses Over & Out)
B.
Air Test (must have EOT, Cab, or Air Gauge) before you enter main
line. If not don’t go. Main train must have correct air slip.
C.
Job Briefing ( on all moves with Train Crew)
D.
Protecting Shoves (on all moves with car counts)
E.
Conductor Log book keep up to date (Plus your last (5) trips on
you at all time)
F.
Up to date GO, Supt. Notices, Rule book current, Timetable, SSI,
Each employee on train crew must have his or her own copies on hand. (NOTE) You
cannot just have one person on crew anymore.
G.
Roll by ( all train crews)
H.
Hand Brakes (not less than (4) brakes) (No Exception)
I.
On and off moving equipment (No Exception)
J.
Switch Test (Check switch points on all switches) (No Exception)
K. Locking
up switches with locks, latches, keeper or hooks (No Exception)
NEW - Origin Train AIR TEST - ICTF 02-13-06
I spoke to Ramiro
Barba about the processes that were set forth.
He indicated that these cars are air tested inside the plant at ICTF.
During this time the safety appliances, piston travel and set and release
are inspected with compliance of the initial terminal air test by a
qualified inspector. Then a crew brings the cut of cars over to the 900
tracks where they are placed on ground air, this will insure the air test
remains valid.
Once the outbound crew is called, they go to the train, the conductor gets
a ride to the rear where he will be met by a car foreman, car foreman has
EOT device, air slip and paper work. The conductor hangs the device,
conducts the plug test, and then the car foreman will complete air slip
after the engineer makes an application and release test.
I hope this helps in the interpretation of the MTO Notice.
Ben Ritter
Director Road Operations
Los Angeles Service Unit
U.S. Senate
Sen. Dianne Feinstein
(D-Calif.)
331 Hart Senate Office Building
Washington D.C. 20510
(202) 224-3841
Local office: 11111 Santa Monica Blvd., Suite 915
Los Angeles, CA 90025
(310) 914-7300
http://feinstein.senate.gov/email.html
Sen. Barbara Boxer (D-Calif.)
112 Hart Senate Office Building
Washington, D.C. 20510
(202) 224-3553
Local office: 312 N. Spring St., Suite 1748
Los Angeles, CA 90012
(213) 894-5000
e-mail: senator@boxer.senate.gov
Updated 01-05-03
JD
RRB
Update: Benefit Changes
CHICAGO -- The U.S. Railroad Retirement Board released the following
document today in an effort to answer some of the most frequently asked
questions regarding the Railroad Retirement and Survivors' Improvement Act of
2001 (P.L. 107-90).
The bill was enacted on December 21, 2001, makes a number of major changes to
the Railroad Retirement Act. The legislation restores full early retirement
eligibility at age 60 for railroad employees with 30 or more years of service;
eliminates the maximum provision that had previously capped some employee and
spouse railroad retirement benefits; reduces the basic eligibility requirement
for an employee annuity from 10 to 5 years of service if performed after 1995;
and provides increased benefits for some widow(er)s.
The following questions and answers describe the changes in railroad retirement
benefit provisions brought about by this legislation.
1. Why have the early retirement provisions of the new law been called a
restoration of 60/30?
Legislation effective in 1974 provided for full annuities for all employees who
were age 60 and had 30 years of service and full annuities at age 60 for their
spouses. Prior to this legislation, only female employees were eligible for
full 60/30 benefits. While 1983 legislation retained the provision for early
retirement at age 60 for employees with 30 years of railroad service and for
their spouses, the 1983 law imposed a reduction for early retirement in the
social security level tier I railroad retirement benefits awarded employees
retiring before age 62 and their spouses. Tier II railroad retirement benefits,
paid over and above tier I benefits, remained payable for both employees and
spouses at age 60 without an age reduction.
The new law amends the Railroad Retirement Act by eliminating the tier I age
reduction in 60/30 cases for employees whose railroad retirement annuities
begin January 1, 2002, or later, even if they retire before they attain age 62.
The spouses of such employees will also be eligible for full annuities at age
60. Such 60/30 annuities can begin with the first full month the employee
and/or spouse is age 60.
The Railroad Retirement Board estimates that the average annuity payable to an
employee retiring in 2002 with 30 or more years of service would be about
$2,400 under the new law. Under prior law, the amount would have been about
$2,100 because of the required reduction in the tier I benefit.
2. Will the beginning date of an employee's annuity determine whether his or
her annuity is computed under the new law?
If the employee's annuity began before January 1, 2002, and was awarded when
the employee was under age 62, his or her tier I benefit will remain reduced
for early retirement after December 31, 2001. The tier I benefit awarded such
an employee's spouse will also be reduced for early retirement, regardless of
whether the spouse retires at age 60 or 62, and regardless of the date the
spouse's annuity begins.
However, if a disability annuitant is age 60 and has 30 years' service, his or
her spouse can now receive an annuity at age 60 without any age reduction if
the spouse's annuity beginning date is January 1, 2002, or later.
3. What was the railroad retirement maximum provision eliminated by the new
law?
Under prior law, the total amount of monthly annuities payable under the
Railroad Retirement Act to an employee and spouse was limited to a maximum
geared to the employee's average monthly earnings prior to retirement. This
maximum provision was intended to create a "reasonable cap" based on
an employee's earnings immediately prior to retirement.
However, the provision had the unintended effect of reducing benefits for
long-service employees with moderate earnings and those with no earnings, or
low earnings, in the 10-year period ending with the year the employee's annuity
began. In an extreme case, it could cap benefits at an amount precluding
payment of most, or even all, of the tier II benefits and supplemental annuity
otherwise due.
In 2001, the average monthly employee benefit reduction under the maximum
provision was $164, and the average spouse reduction was $78.
4. Will those employees and spouses affected by the maximum provision, but
whose annuities began before January 1, 2002, see an increase in their monthly
annuity rates?
If an employee's annuity began before January 1, 2002, any annuity reduction
required by the railroad retirement maximum will be removed effective January
1, 2002, but no retroactive payments will be made for months prior to 2002. The
removal of any benefit reductions applied to affected annuitants, about 2,600
retired employees and 12,000 spouses, should be completed by June 2002.
Such annuitants can expect to receive accrual payments in late May 2002
retroactive to January, and increased regular monthly payments reflecting their
new rates beginning with the monthly payment due on June 1, 2002. Notices are
being sent by the Board to all affected annuitants in January 2002 advising
them accordingly.
Notices are also being sent in January to employees whose spouses may have been
previously advised by the Board to defer filing for spouse benefits because of
the adverse effects of the maximum provision, as their spouses would now want
to consider filing for railroad retirement benefits.
5. How has the basic service requirement of 10 years of creditable rail
service been changed by the new law?
The new law provides railroad retirement annuities to employees with less than
ten years (120 months) of railroad service if they are credited with at least
five years (60 months) of railroad service after 1995. Benefits payable on the
basis of this provision are not retroactive and are not payable for months
prior to January 2002, but are payable beginning January 1, 2002, to those with
five years of service after 1995. Employees previously denied benefits for
insufficient service would have to file a new application for benefits.
Employees with five years of service after 1995 may qualify for a tier II
benefit based on age and service at age 62. A tier I benefit is also payable by
the Board, but only if the employee has an "insured status" under
Social Security Act rules (usually 40 quarters of coverage), counting both
railroad retirement and social security-covered earnings. In such a case, the
retiree would qualify for a social security benefit based on nonrailroad social
security earnings credits alone, and a tier I railroad retirement benefit based
on combined social security and railroad retirement earnings credits. The tier
I benefit would, however, be reduced by any social security benefit also
payable.
If a retiree has no qualifying social security coverage, only a tier II benefit
would be payable. Examples of persons without social security coverage could be
Federal civil service employees hired prior to 1984, or some state or municipal
employees previously not covered by social security.
6. Will employees with five years of service also be eligible for railroad
retirement disability annuities?
Such employees may qualify for an annuity based on total and permanent, but not
occupational, disability, and only if they have a disability insured status
(also called a "disability freeze") under Social Security Act rules,
counting both railroad retirement and social security-covered earnings. Unlike
with a 10-year employee, a tier II benefit is not payable in disability cases
until the employee attains age 62. And, the employee's tier II benefit will be
reduced for early retirement in the same manner as the tier II benefit of an
employee who retired at age 62 with less than 30 years of service.
7. Will the survivors of employees with five years of service after 1995 be
eligible for benefits?
A deceased employee with five years' service after 1995 must still have a
"current connection" with the rail industry in order for survivor
annuities to be payable by the Board, rather than the Social Security Administration.
For both a tier I and a tier II benefit to be payable, an "insured
status" under Social Security Act rules at the time of the employee's
death, using combined railroad retirement and social security covered earnings,
is also required. Otherwise, only a tier II survivor benefit would be payable
in these cases.
8. How are railroad retirement widow(er)s' benefits affected by the new law?
Under prior law, the widow(er)'s tier I benefit, before any reductions for
other benefits, was generally equal to the amount of the tier I benefit that
the employee received at the time of his or her death; and a widow(er)'s tier
II benefit was generally equal to 50 percent of the tier II benefit that was
payable to the employee at the time of his or her death.
The new law establishes an "initial minimum amount" which yields, in
effect, a widow(er)'s tier II benefit equal to the tier II benefit the employee
would have received at the time of the award of the widow(er)'s annuity. It
does this by adding a "guaranty amount," initially set at 50 percent
of the employee's tier II, to the 100 percent tier I and 50 percent tier II
benefits provided under prior law.
This "guaranty amount" will be offset each year by the dollar amount
of the cost-of-living increases payable in both the tier I and tier II benefits
provided under prior law. Consequently, such a widow(er)'s net benefit payment
will not increase until such time as the widow(er)'s annuity, as computed under
prior law with all interim cost-of-living increases otherwise payable, exceeds
the widow(er)'s annuity computed under the initial minimum amount formula.
9. What would be a basic example of how this initial minimum amount works?
Assume that a 68 year-old widow becomes entitled in June 2002 to a railroad
retirement widow's annuity. The widow is not entitled to any social security
benefits. The employee had been receiving a railroad retirement annuity of
$2,000 a month, comprised of a tier I benefit of $1,200 and a tier II benefit
of $800. Consequently, the widow's tier I benefit on her annuity beginning date
is $1,200. Her tier II benefit under prior law (50 percent of the employee's
tier II) is $400; and, under the new law, her "guaranty amount" is
$400. Her railroad retirement widow's annuity as of June 2002 would be $2,000.
Next, assume a cost-of-living adjustment (COLA) payable in January 2003 yields
a 4 percent increase in tier I benefits and a 1.3 percent increase in tier II
benefits, for a total dollar amount of $53.20. This amount is offset from the
$400 guaranty amount, reducing it to $346.80, so that the $2,000 amount payable
to the widow (before any deduction for the Part B Medicare premium) does not
change. The amount payable to the widow will increase only when the tier I and
tier II amounts computed under prior law with subsequent cost-of-living
increases exceed $2,000. Assuming that the COLA remains at a steady 4 percent,
this would occur with the COLA payable in January 2010. The average COLA paid
over the last five years, including the COLA payable in January 2002, was 2.4
percent.
10. What if the widow(er) is also entitled to social security benefits?
Widow(er)s' tier I benefits will continue to be reduced for entitlement to
social security, certain public service pensions and dual railroad retirement
entitlement. However, while widow(er)s' railroad retirement annuities will be
reduced by subsequent social security and applicable public service pension
cost-of-living increases, the total amount of combined benefits will not
decrease from the total payable before the cost-of-living adjustment.
11. What would be a basic example of how this would work?
Assume that a 67 year-old widow becomes entitled in June 2002 to a railroad
retirement widow's annuity. The employee had been receiving a railroad retirement
annuity of $1,500 a month, comprised of a tier I benefit of $900 and a tier II
benefit of $600. This widow's tier I benefit on her annuity beginning date (and
before any dual benefit reduction) is $900. Her tier II benefit under prior law
(50 percent of the employee's tier II) is $300; and, under the new law, her
"guaranty amount" is $300. Her widow's initial minimum amount on her
annuity beginning date (before any reduction for dual benefits) is $1,500. The
widow is also entitled to a social security benefit, based on her own earnings,
of $1,100 a month.
Thus, at the time her railroad retirement widow's annuity begins, her net
annuity would be $600 and her total combined social security and railroad
retirement benefits would be $1,700.
Again assume that a cost-of-living adjustment (COLA) payable in January 2003
yields a 4 percent increase in tier I and social security benefits and a 1.3
percent increase in tier II benefits.
The total dollar amount of this widow's tier I and tier II benefit increases
would be $39.90. This amount is subtracted from the $300 guaranty amount,
reducing it to $260.10. In this case, tier I is not actually payable because it
is reduced to zero for the social security benefit. The guaranty amount is
reduced by the tier I and tier II cost-of-living increases, not the social
security increase. Her net railroad retirement widow's annuity (before any
deduction for the Part B Medicare premium) would be $564 (her increased tier II
of $303.90 plus the reduced guaranty amount of $260.10). However, the total
amount of combined benefits payable rises to $1,708 because her social security
benefit was increased by the 4 percent COLA to $1,144.
12. When is this provision effective and to which widow(er)s does it apply?
Effective February 1, 2002, but not retroactively payable before that date, the
widow(er)s' guaranty provision applies to all widow(er)s whose annuities begin
February 1, 2002, or later, and to some, but not all, widow(er)s on the rolls
before the effective date.
While legislation enacted in 1981 provided a new formula for computing tier II
benefits, most awards to widow(er)s continued to be made under the pre-1981
formula during a subsequent 5-year transition period. Those widow(er)s'
annuities reflecting this pre-1981 formula are not affected by the new
amendments. Also, many of the widow(er)s' annuities currently being paid under
the 1981 amendment formula are, because of subsequent cost-of-living
adjustments, already higher than the annuity that would be payable under the new
law.
The Railroad Retirement Board estimates that between one-fourth and one-third
of the widow(er)s on its rolls will have an initial minimum amount, computed as
of their annuity beginning date, that still exceeds their regular annuity
computation with cost-of-living increases.
13. When can these widow(er)s expect to see this increase in their monthly
benefit?
Widow(er)s affected by this change can expect to receive any accrual payments,
retroactive to February, in late April 2002, and increased regular monthly
payments reflecting their new rates beginning with the payment they receive on
May 1, 2002. Letters are being sent in January to affected widow(er)s on the
Board's rolls advising them of the change in the law, and also advising them as
to whether they will receive an increase. Widow(er)s who are due an increase do
not need to take any action or contact the Board.
14. How can individuals find out more information about how these changes
affect them?
The Board is making every effort to notify by mail all parties affected by this
legislation as soon as possible.
Railroad Retirement Board offices are open to the public Monday through Friday,
except on Federal holidays. Persons can find the address and telephone number
of the Board office serving their area by calling the Board's automated
toll-free Help Line at (800) 808-0772, or from the Board's Web site at www.rrb.gov. Patience on the part of annuitants
would be appreciated when contacting Board offices, as a higher than usual
volume of calls is expected as a result of this legislation. E-mail inquiries
about this legislation can be sent to the Board by going to the Board's Web site
and clicking on "Send us a secure message" under "Latest
News."
Friday,
January 25, 2002
CHICAGO -- President Bush signed the Railroad Retirement and Survivors'
Improvement Act of 2001 into law on December 21, 2001, the U.S. Railroad
Retirement Board announced.
The legislation liberalizes early retirement benefits for 30-year employees,
eliminates a cap on monthly retirement and disability benefits, lowers the
minimum service requirement from 10 years to 5 years of service if performed
after 1995, and provides increased benefits for some widow(er)s. The financing
sections of the new law provide for the investment of railroad retirement funds
in non-governmental assets, adjustments in the payroll tax rates paid by employers
and employees, and the repeal of a supplemental annuity work-hour tax.
The following is a summary of the changes in railroad retirement benefits and
financing provided by the new law, which was based on joint recommendations to
Congress negotiated by a coalition of rail labor organizations and rail freight
carriers.
Railroad Retirement Benefit Provisions
60/30 retirement. The new law amends the Railroad Retirement Act by
eliminating the early retirement reduction applied to the annuities of 30-year
employees retiring between the ages of 60 and 62 if their annuities begin
January 1, 2002, or later. The spouses of such employees would also be eligible
for full annuities at age 60. Full 60/30 benefits have not been payable to
30-year employees retiring before age 62 since 1983 legislation reduced such
early retirement benefits.
This provision is not retroactive and not applicable to 30-year employees who
retired on the basis of age and service prior to January 1, 2002, or to their
spouses, even if their spouses retire after 2001. However, if a disability
annuitant is age 60 and has 30 years' service, his or her spouse can now
receive an unreduced annuity as early as age 60 if the spouse's annuity
beginning date is January 1, 2002, or later.
Maximum provision. The new law eliminates, effective January 1, 2002, a
maximum on the amount of combined monthly employee and spouse benefit payments
which had been intended to prevent benefits from exceeding an employee's
creditable earnings prior to retirement. This maximum provision had the
unintended effect of reducing benefits for former employees with no earnings,
or low earnings, in the 10-year period prior to retirement, and for
long-service employees with moderate earnings.
While not retroactive, the amendment will prospectively increase benefits,
effective January 1, 2002, for almost 2,600 employee and 12,000 spouse
annuitants on the Board's rolls whose benefits were reduced by the maximum
provision prior to 2002.
In 2001, the average monthly employee benefit reduction under the maximum
provision was $164, and the average spouse reduction was $78. The removal of
any benefit reductions applied to affected annuitants should be completed by
June 2002. Such annuitants can expect to receive accrual payments in late May
2002 retroactive to January, and increased regular monthly payments reflecting
their new rates beginning with the monthly payment due on June 1, 2002. Notices
are being sent by the Board to all affected annuitants in January 2002 advising
them accordingly.
Notices will also be sent in January to employees whose spouses may have been
previously advised by the Board to defer filing for spouse benefits because of
the adverse effects of the maximum provision, as their spouses would now want
to consider filing for railroad retirement benefits.
Basic service requirement. The new law lowers the minimum eligibility
requirement for regular railroad retirement annuities from 10 years (120
months) of creditable railroad service to five years (60 months) of creditable
railroad service for those with five years of service rendered after 1995.
Benefits payable on the basis of this provision are not retroactive and are not
payable earlier than January 1, 2002.
Also, for those with less than 10 years of service, additional earnings credits
acquired under social security coverage would be required for a tier I benefit.
A tier II benefit would be payable even if the employee never worked under
social security coverage. Additional requirements apply in disability cases. In
addition, a deceased employee with five years' service after 1995 must still
have had a "current connection" with the rail industry in order for
survivor annuities to be payable by the Board under this provision, rather than
the Social Security Administration.
Anyone with five years of service performed after 1995, who was previously
denied benefits because of the 10-year service requirement, will want to
contact a Board office.
Widow(er)s' benefits. The new law establishes an "initial minimum
amount" which is based on the two-tier annuity amount that would have been
payable to the railroad employee at the time the widow(er)'s annuity is
awarded. The initial minimum amount is computed with a widow(er)'s tier II
amount equal to 100 percent of the employee's tier II amount. Under prior law,
the widow(er)'s tier II amount was equal to 50 percent of the employee's tier
II amount; only the tier I amount equaled 100 percent. Widow(er)s' annuities
computed on the basis of the new initial minimum amount will not be adjusted
for annual cost-of-living increases until the annuity amount is exceeded by the
annuity amount the widow(er) would have been paid under prior law, with all
interim cost-of-living increases otherwise payable.
This provision is effective February 1, 2002, and is not payable retroactively.
The Railroad Retirement Board estimates that about 20 to 25 percent of the
widow(er)s on its rolls in 2001 will see some increase in their annuity.
This provision applies to widow(er)s on the rolls before the effective date
only if the annuity the widow(er) is currently receiving is less than she or he
would have received had the new law been in effect on the date the widow(er)'s
annuity began. Most widow(er)s' annuities awarded before October 1986 will not
be increased. Many of the widow(er)s' annuities currently being paid are
already higher than the annuity that would be payable under the new law because
of previous cost-of-living adjustments.
Widow(er)s affected by this change can expect to receive any accrual payments,
retroactive to February, in late April of 2002, and increased regular monthly
payments reflecting their new rates beginning with the payment they receive on
May 1, 2002. Letters will be sent in January to affected widow(er)s on the Board's
rolls, advising them as to whether they will receive an increase. As a result,
widow(er)s do not need to take any action or contact the Board.
Railroad Retirement Financing Provisions
Investment changes. The new law provides for the transfer of railroad
retirement funds from the Railroad Retirement Accounts to a new National
Railroad Retirement Investment Trust, whose Board of seven trustees is
empowered to invest Trust assets in non-governmental assets, such as equities
and debt, as well as in governmental securities.
The Trust will not be treated as an agency or instrumentality of the Federal
Government. Its Board of Trustees will be comprised of seven members: three
members selected by rail labor to represent the interests of labor; three
members likewise selected by rail management to represent management interests;
and one independent member selected by a majority of the other six members. The
new law also provides that if the parties involved cannot agree on the
selection of Trustees within 60 days of the law's enactment date, an impartial
umpire shall, at the petition of a party to the dispute, be appointed by the
District Court of the United States for the District of Columbia. The Trustees
will be appointed only from among persons who have experience and expertise in
the management of financial investments and pension plans. The Trustees will be
subject to reporting and fiduciary standards similar to those under the
Employee Retirement Income Security Act.
The new law also allows for railroad retirement benefit payments in the future
to be issued by a qualified non-governmental financial institution, rather than
the Treasury Department. The selection of the financial institution would be
made by the Railroad Retirement Board, after consulting with the Board of
Trustees and the Secretary of the Treasury. Railroad retirement payments will
continue to be processed through the U.S. Treasury in the meantime.
Effect on payroll tax rates. The new law reduces the tier II tax rates
on rail employers, including rail labor unions, in calendar years 2002 and
2003, and beginning with 2004 provides automatic adjustments in the tier II tax
rates for both employers and employees. It also repeals the supplemental
annuity work-hour tax rate paid by employers, beginning with calendar year
2002.
The tier II tax rate on rail employers and rail labor organizations is reduced
from 16.10 percent to 15.60 percent in 2002 and to 14.20 percent in 2003, but
the tier II earnings base is not changed; and for 2002, that amount remains at
$63,000. The tier II tax rate for rail employee representatives will be 14.75
percent in calendar year 2002 and 14.20 percent in 2003.
While there will be no change in the tier II tax rate of 4.90 percent on
employees in the years 2002 and 2003, beginning with the taxes payable for
calendar year 2004 tier II taxes on both employers and employees will be based
on the ratio of certain asset balances to the sum of benefits and
administrative expenses (the average account benefits ratio). Depending on the
average account benefits ratio, tier II taxes for employers will range between
8.20 percent and 22.10 percent, while the tier II tax rate for employees will
be between 0 percent and 4.90 percent.
The new law does not affect tier I social security equivalent tax rates. The
tier I tax on employees and employers remains the same as for social security
covered employees and employers.
Other revenue provisions. While supplemental railroad retirement
annuities provided by the Railroad Retirement Act continue to be due and
payable, the new law, in addition to repealing the supplemental annuity
work-hour tax, also eliminates the separate Supplemental Annuity Account under
the Railroad Retirement Act. Supplemental annuities provided under the Railroad
Retirement Act will now be funded through the new National Railroad Retirement
Investment Trust.
No changes were effected in railroad unemployment insurance taxes on employers.
On a final note, the Board is making every effort to notify by mail all parties
affected by this legislation as soon as possible. Therefore patience on the
part of annuitants would be appreciated when contacting Board offices, as a
higher than usual volume of calls is expected as a result of the passage of
this legislation.
Railroad Retirement Board offices are open to the public Monday through Friday,
except on Federal holidays. Persons can find the address and telephone number
of the Board office serving their area by calling the Board's automated
toll-free Help Line at 1-800-808-0772, or from the Board's Web site at
www.rrb.gov. E-mail inquiries about this legislation can be sent to the RRB by
going to the Board's Web site. Under "Latest News!" on the opening
page, click on "Send us a secure message about the new Law or its effect
on you."
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