Duration of Normal and Extended Benefits

RAILROAD RETIREMENT BOARD

20 CFR Part 336

RIN 3220-AA67

Duration of Normal and Extended Benefits

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) hereby revises its

regulations under the Railroad Unemployment Insurance Act (RUIA) to

update the provisions concerning the duration of normal unemployment

and sickness benefits under the RUIA and to add provisions concerning

the establishment of extended benefit periods under the RUIA.

EFFECTIVE DATE: January 28, 1994.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush

Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Assistant General

Counsel, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois

60611, (312) 751-4513, TDD (312) 751-4701.

SUPPLEMENTARY INFORMATION: This revision to part 336 revises the part

heading from ``Exhaustion of Rights to Benefits'' to ``Duration of

Normal and Extended Benefits'', and consists of two subparts. Subpart A

explains how long a qualified railroad employee may receive normal

unemployment and sickness benefits. Subpart B explains under what

circumstances an employee with 10 or more years of railroad service may

receive extended unemployment or sickness benefits and the duration of

an employee's extended benefit period. This rule also removes existing

Sec. 336.3, which relates to payment of extended unemployment benefits

under the Temporary Extended Railroad Unemployment Insurance Benefits

Act of 1961. Extended benefits are no longer payable under that Act. As

revised, Sec. 336.3 explains the duration of normal sickness benefits

under the RUIA.

On August 17, 1993, the Board published this rule as a proposed

rule (58 FR 43577), inviting comments on or before September 16, 1993.

No comments were received.

The Board has determined that this is not a significant regulatory

action for purposes of Executive Order No. 12866; therefore, no

regulatory impact analysis is required. The information collection

requirements contained in this rule have been approved by the Office of

Management and Budget under control number 3220-0070.

List of Subjects in 20 CFR Part 336

Railroad employees, Railroad unemployment benefits.

For the reasons set out in the preamble, title 20, chapter II, part

336 of the Code of Federal Regulations is revised to read as follows:

PART 336--DURATION OF NORMAL AND EXTENDED BENEFITS

Subpart A--Normal Benefits

Sec.

336.1 Introduction.

336.2 Duration of normal unemployment benefits.

336.3 Duration of normal sickness benefits.

336.4 Base year compensation.

336.5 Notice to employee.

Subpart B--Extended Benefits

336.10 Eligibility.

336.11 Exhaustion of rights to normal unemployment benefits.

336.12 Exhaustion of rights to normal sickness benefits.

336.13 Years of service requirement.

336.14 Extended benefit period.

336.15 How to claim extended benefits.

336.16 Notice to employee.

Authority: 45 U.S.C. 362(l).

Subpart A--Normal Benefits

Sec. 336.1 Introduction.

(a) General. This subpart explains how long a qualified employee

may receive normal unemployment or sickness benefits under the Railroad

Unemployment Insurance Act during a benefit year. Under section 2(c) of

that Act, normal unemployment benefits are payable for up to 130 days

of unemployment within a benefit year, or in an amount equal to the

amount of the employee's ``base year compensation'', whichever is less.

A similar limitation applies to the payment of sickness benefits. An

employee who exhausts his or her normal unemployment or sickness

benefits may be eligible for payment of extended unemployment or

extended sickness benefits under the conditions set forth in subpart B

of this part.

(b) Definitions. The terms ``benefit year'', ``base year'', and

``compensation'' are defined in part 302 of this chapter. The term

``registration period'' is defined in parts 325 and 335 of this

chapter. For the purposes of this subpart, and as explained in

Sec. 336.4 of this part, an employee's ``base year compensation'' may

include compensation in excess of the monthly compensation base (as

defined in part 302 of this chapter) even though such excess may not be

counted for the purpose of determining whether such employee is a

``qualified employee'' within the meaning of part 302.

(c) Recovery of benefits. When unemployment or sickness benefits

are recovered by the Board for one or more days, the Board will

disregard those days in determining whether the employee has exhausted

normal unemployment or sickness benefits with respect to the applicable

benefit year.

Sec. 336.2 Duration of normal unemployment benefits.

(a) 130 compensable day limitation. A qualified employee who has

satisfied the waiting period for a benefit year may receive benefits

for a maximum of 130 days of unemployment within such benefit year,

subject to the limitation on payment explained in paragraph (b) of this

section. In any registration period beginning after the end of the

waiting period and before the beginning of the next ensuing benefit

year, benefits are payable for days of unemployment in excess of four,

but the aggregate number of compensable days may not exceed 130 for the

benefit year. An employee who is unemployed on all days during a

registration period could have a maximum of 10 compensable days of

unemployment in such registration period. The amount of benefits for

each compensable day of unemployment is the amount of the daily benefit

rate computed for such employee pursuant to part 330 of this chapter.

(b) Base year compensation limit. Notwithstanding the provisions of

paragraph (a) of this section, the Board will not pay unemployment

benefits to a qualified employee, with respect to his or her days of

unemployment within a benefit year, in an amount greater than the

amount of his or her base year compensation, as computed under

Sec. 336.4 of this part.

(c) Unemployment due to a strike. The limitations set forth in

paragraphs (a) and (b) of this section also apply to an employee whose

unemployment is due to a stoppage of work because of a strike in the

establishment, premises, or enterprise at which he was last employed.

But no unemployment benefits are payable for the employee's first 14

days of unemployment due to such stoppage of work.

Sec. 336.3 Duration of normal sickness benefits.

The duration of normal sickness benefits is the same as the

duration of normal unemployment benefits, as set forth in Sec. 336.2 of

this part. A qualified employee who has satisfied the benefit year

waiting period and is otherwise eligible for sickness benefits may

receive benefits for a maximum of 130 days of sickness within a benefit

year, but the amount paid as sickness benefits may not exceed the

amount of the employee's base year compensation, as computed under

Sec. 336.4 of this part.

Sec. 336.4 Base year compensation.

(a) Formula. For the purposes of this part, an employee's base year

compensation includes any compensation in excess of the monthly

compensation base (as defined in part 302 of this chapter) for any

month in the applicable base year but shall not include any amount that

exceeds the value of ``X'' in the following formula: X = $775(A/$600).

In this formula, ``A'' is the dollar amount of the monthly compensation

base with respect to months in such base year. For example, if an

employee had railroad earnings of $1,500 per month in each of three

months in base year 1990, the employee's base year compensation for

purposes of part 302 of this chapter would be $2,235 (three times the

monthly compensation base of $745 per month for months in 1990). But

the employee's base year compensation for purposes of computing maximum

normal unemployment (or sickness) benefits under this subpart would be

$2,886 (three times $962), and his or her normal unemployment (or

sickness) benefits would not be considered exhausted until he or she is

paid unemployment (or sickness) benefits in an amount equal to $2,886.

In this example, $962 is the amount computed as the value of ``X'' in

the above formula when ``A'' is equal to $745.

(b) Employer's duty to report. The base year employer(s) of an

employee shall provide information as to the amount of an employee's

monthly compensation in excess of the monthly compensation base, as

defined in part 302 of this chapter, unless the amount of the

employee's compensation at the monthly compensation base limit, as

already reported to the Board, is equal to or greater than an amount

equal to 130 times the daily benefit rate applicable to the employee's

days of unemployment or days of sickness.

(Approved by the Office of Management and Budget under control

number 3220-0070.)

Sec. 336.5 Notice to employee.

The Board will notify an employee when it appears that his or her

right to normal unemployment or normal sickness benefits will be

exhausted. Such notice will include information about the availability

of extended benefits under subpart B of this part if the employee has

completed 10 years of railroad service and the availability of normal

benefits for the next ensuing benefit year if the employee is not

eligible for extended benefits.

Subpart B--Extended Benefits

Sec. 336.10 Eligibility.

(a) Except as provided in paragraph (b) of this section, an

employee may receive extended unemployment or extended sickness

benefits under this part if he or she:

(1) Has exhausted normal unemployment or normal sickness benefits

(as the case may be) under subpart A of this part;

(2) Has completed 10 years of railroad service, as set forth in

Sec. 336.13 of this part; and

(3) Continues to have days of unemployment or days of sickness, as

the case may be.

(b) An employee is not eligible for extended sickness benefits if

he or she has voluntarily retired or has attained age 65. In the case

of claims for unemployment benefits, an employee is not eligible for

extended unemployment benefits if he or she has voluntarily left work

without good cause or has voluntarily retired.

Sec. 336.11 Exhaustion of rights to normal unemployment benefits.

For the purposes of this part, the Board considers that an employee

has exhausted his or her current rights to normal benefits for days of

unemployment if:

(a) The employee received unemployment benefits for 130 days of

unemployment in the benefit year; or

(b) The employee received unemployment benefits in the benefit year

equal to the amount of his or her base year compensation; or

(c) At the end of a normal benefit year during which the employee

was qualified for benefits, he or she received less than the maximum

unemployment benefits for the benefit year and he or she is not

qualified for benefits in the next succeeding benefit year.

Sec. 336.12 Exhaustion of rights to normal sickness benefits.

For the purposes of this part, the Board considers that an employee

has exhausted his or her current rights to normal benefits for days of

sickness if:

(a) The employee received sickness benefits for 130 days of

sickness in the benefit year; or

(b) The employee received sickness benefits in the benefit year

equal to the amount of his or her base year compensation; or

(c) At the end of the normal benefit year during which the employee

was qualified for benefits, he or she received less than the maximum

sickness benefits for the benefit year and he or she is not qualified

for benefits in the next succeeding benefit year.

Sec. 336.13 Years of service requirement.

(a) Statutory basis. For the purposes of this part, an employee is

not eligible for extended unemployment or sickness benefits if he or

she does not have at least 10 years of railroad service. An employee

who has 120 service months as defined in part 210 of this chapter,

whether or not consecutive, is considered to have 10 years of railroad

service, and an employee who has 180 service months, whether or not

consecutive, is considered to have 15 years of railroad service.

(b) Initial determination. The Board will determine whether an

employee has 10 years, or 15 years, of railroad service on the basis of

reports filed by employers pursuant to part 209 of this chapter. The

number of years of service shown in the Board's records will be

accepted as correct for the purposes of this part, unless the employee

claims credit for more service than that shown in the Board's records

and such additional service is verified. In any such case, the Board

will afford the employee an opportunity to establish credit for

additional service if such service would be sufficient to bring the

employee up to 10 years, or 15 years, of service. If the claim for

credit for additional service is made by an employee who has at least

10 years of railroad service but is claiming credit for at least 15

years, the Board will not delay the establishment of an extended

benefit period based on 10 years of service but shall extend the ending

date of such period if the employee is able to establish credit for 15

years of railroad service.

(c) Effective date. An employee acquires 10 years, or 15 years, of

railroad service, as the case may be, as of the first day with respect

to which creditable compensation is attributable in his 120th, or

180th, month of service.

Sec. 336.14 Extended benefit period.

(a) Defined. An extended benefit period consists of seven

consecutive 14-day registration periods in the case of an employee

having 10-14 years of railroad service and 13 consecutive 14-day

registration periods in the case of an employee having 15 or more years

of railroad service.

(b) Beginning date. In the case of unemployment benefits, an

extended benefit period begins with the first day of unemployment after

the day on which the employee exhausts his or her rights to normal

unemployment benefits. In the case of sickness benefits, the beginning

date is the first day of sickness after the employee exhausts normal

sickness benefits. Such first day of unemployment or first day of

sickness must be within the same benefit year with respect to which the

employee exhausted normal unemployment or normal sickness benefits, as

the case may be. However, no extended benefit period may begin on any

day of unemployment or sickness prior to the date on which the employee

acquired 10 years of railroad service.

(c) Ending date. If an employee has 10 but less than 15 years of

railroad service, his or her extended benefit period ends on the 97th

day after it began. If an employee has 15 or more years of railroad

service, his or her extended benefit period ends on the 181st day after

it began. If an employee attains age 65 during an extended sickness

benefit period, such extended benefit period will terminate on the day

next preceding the date on which the employee attains age 65, except

that it may continue for the purpose of paying benefits for his or her

days of unemployment, if any, during such extended benefit period. If

an extended sickness benefit period terminates because the employee has

attained age 65 and if at that point the employee has rights to normal

sickness benefits, the employee will be paid normal sickness benefits

if he or she is otherwise entitled to payment thereof.

(d) Maximum number of compensable days. During an extended benefit

period consisting of seven consecutive 14-day registration periods,

extended benefits may be paid for a maximum of 65 days of unemployment

(or 65 days of sickness, as the case may be). During an extended

benefit period consisting of 13 consecutive 14-day registration

periods, extended benefits may be paid for a maximum of 130 days of

unemployment (or 130 days of sickness, as the case may be).

Sec. 336.15 How to claim extended benefits.

An employee who has 10 or more years of railroad service who

exhausts his or her rights to normal unemployment or normal sickness

benefits and who wishes to claim extended unemployment or extended

sickness benefits may do so by claiming benefits on the forms provided

by the Board pursuant to parts 325 or 335 of this chapter. The claim

forms provided for this purpose are the same as those provided for

claiming normal benefits. No special application for extended benefits

is required, and no waiting period applies to the payment of extended

benefits.

Sec. 336.16 Notice to employee.

Upon determining that an employee is eligible for a period of

extended unemployment or sickness benefits, the Board will notify the

employee of the beginning and ending dates of such extended benefit

period.

Dated: January 21, 1994.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 94-1829 Filed 1-27-94; 8:45 am]

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