Registration for Railroad Unemployment Benefits; Sickness Benefits; Determination of Daily Benefit Rates; Duration of Normal and Extended Benefits

RAILROAD RETIREMENT BOARD

20 CFR Parts 325, 330, 335, and 336

RIN 3220-AB39

Registration for Railroad Unemployment Benefits; Sickness

Benefits; Determination of Daily Benefit Rates; Duration of Normal and

Extended Benefits

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

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SUMMARY: The Railroad Retirement Board (Board) proposes to amend its

regulations to incorporate amendments made to the Railroad Unemployment

Insurance Act, which shortened the waiting period for receipt of

benefits under the RUIA, changed the method of computing the daily

benefit rate, and eliminated certain extended benefits.

DATES: Comments should be submitted on or before February 1, 2000.

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

Rush Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Senior Attorney,

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

SUPPLEMENTARY INFORMATION: Public Law 104-251 (110 Stat. 3161),

commonly known as the Railroad Unemployment Insurance Act Amendments of

1996, amended the Railroad Unemployment Insurance Act (RUIA) to shorten

the waiting period for receipt of unemployment and sickness benefits

payable under that statute, to change the method of computing the daily

benefit rate, and to eliminate certain extended payments of benefits,

and the Board proposes to amend its regulations under the RUIA to

conform to those amendments.

Section 325.1 is proposed to be amended to reflect the change in

the waiting period for unemployment benefits from 14 days to seven

days. As amended, Sec. 325.1 would provide that unemployment benefits

are payable to any qualified employee for each day of unemployment in

excess of seven in his or her first two-week registration period, and

then for up to ten days of unemployment in any subsequent registration

period within the same period of continuing unemployment. However, if

the unemployment is the result of a strike, no benefits are payable for

the first day 14 days of unemployment. For purposes of applying the

seven-day waiting period, a period of continuing unemployment would end

when an employee exhausts his or her unemployment benefits for a

benefit year. Section 325.1 would also be amended to incorporate a

definition of ``period of continuing unemployment'', a concept added by

the 1996 amendments. The concept of a period of continuing unemployment

was added to the RUIA so as to permit the continued payment of benefits

from one benefit year to the next without a new waiting period if the

period of unemployment runs from one year to the next. Finally,

Sec. 325.1 is proposed to be amended to provide that if an employee's

earnings in a registration period exceed the monthly compensation base

for the applicable base year, then no unemployment benefits are payable

in that registration period. For example, for benefit year 1998 the

base year is calendar year 1997 in which the monthly compensation base

was $890. No benefits are payable for any days of unemployment in the

benefit year beginning July 1, 1998, for any registration period in

which the employee earns more than $890. An employee who declines

suitable work during a registration period is treated as having earned

the amount of earnings he would have received had he not declined

employment.

Section 330.2 is proposed to be amended to provide that the maximum

daily benefit rate under the RUIA is the monthly compensation base, as

computed under 20 CFR part 302, multiplied by 5%, rounded down to the

nearest $1. This change is the result of a change in the RUIA enacted

under the 1996 amendments. The Board will publish the maximum daily

benefit rate for the upcoming benefit year by June 1 of each year.

Section 335.6 is proposed to be revised to reflect the same changes

with respect to the waiting period for sickness benefits that the

proposed amendments to Sec. 325.1 make with respect to unemployment

benefits.

Finally, Sec. 336.13 is revised, and Sec. 336.14 is amended to

reflect a change in the payment of extended benefits made by the 1996

amendments. Under the RUIA, as amended, an employee with ten or more

years of service will receive a maximum of 65 days of extended

unemployment or sickness benefits after the employee has exhausted his

or her normal 130 days of unemployment or sickness.

The Board, with the concurrence of the Office of Management and

Budget, has determined that this is not a significant regulatory action

under Executive Order 12866; therefore no regulatory impact analysis is

required. There are no information collections associated with these

rules.

List of Subjects in 20 CFR Parts 325, 330, 335, and 336

Railroad employees, Railroad unemployment insurance, Reporting and

recordkeeping requirements.

For the reasons set out in the preamble, the Railroad Retirement

Board proposes to amend chapter II, title 20 of the Code of Federal

Regulations as follows:

PART 325--REGISTRATION FOR RAILROAD UNEMPLOYMENT BENEFITS

1. The authority for part 325 continues to read as follows:

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

2. Paragraphs (a) through (d) of Sec. 325.1 are revised, paragraph

(e) is redesignated as paragraph (h), and new

[[Page 67812]]

paragraphs (e) through (g) are added as follows:

Sec. 325.1 General.

(a) Day of unemployment. A ``day of unemployment'' is a calendar

day on which an employee, although ready and willing to work, is

unemployed, and on which no remuneration is payable and for which the

employee has registered, as required by this part. The amount of

compensable days of unemployment shall be computed in accordance with

this section.

(b) Registration period. Except for registration periods in

extended unemployment benefit periods, a ``registration period'' means

a period of 14 consecutive days beginning with the first day for which

an employee registers following:

(1) His or her last day of work, or

(2) The last day of the employee's last preceding registration

period, and with respect to which the employee properly files a claim

for benefits on such form and in such manner as the Board prescribes.

(c) General waiting period. Benefits are payable to any qualified

employee for each day of unemployment in excess of seven during his or

her first registration period in a period of continuing unemployment if

such period of continuing unemployment is his or her initial period of

continuing unemployment beginning in the benefit year, and then for

each day of unemployment in excess of four during any subsequent

registration period within the same period of continuing unemployment.

A strike waiting period, described in paragraph (d) of this section,

will satisfy a general waiting period with respect to a benefit year.

(d) Strike waiting period. If a qualified employee has a period of

continuing unemployment that includes days of unemployment due to a

stoppage of work because of a strike in the establishment, premises, or

enterprise at which he or she was last employed, no benefits are

payable for his or her first 14 days of unemployment due to such

stoppage of work. For subsequent days of unemployment due to the same

stoppage of work, benefits are payable for days of unemployment in

excess of four in each subsequent registration period within the period

of continuing unemployment. If such period of continuing unemployment

ends because the employee has exhausted his or her benefits as provided

for under part 336 of this chapter, but the stoppage of work continues,

benefits are payable for days of unemployment in excess of seven in the

employee's first registration period in a new period of continuing

unemployment based upon the same stoppage of work and for days of

unemployment in excess of four in subsequent registration periods in

the same period of continuing unemployment.

(e) Period of continuing unemployment. A ``period of continuing

unemployment'' means a single registration period that includes more

than four days of unemployment or a series of consecutive periods each

of which includes more than four days of unemployment, or a series of

successive registration periods, each of which includes more than four

days of unemployment, if each succeeding registration period begins

within 15 days after the last day of the immediately preceding

registration period. An employee's period of continuing unemployment

ends on the last day of a benefit year in which he or she exhausts

rights to unemployment benefits as provided for in part 336 of this

chapter.

(f) Computation of compensable days. (1) Example 1. An employee has

an initial period of continuing unemployment from June 14 through July

25 and is unemployed on all days in that period. The employee's first

registration period covers June 14 to June 27, and his subsequent

registration periods cover June 28 to July 11 and July 12 to July 25.

Under paragraph (c) of this section, a one-week waiting period applies

to his first registration period and the employee is therefore paid

benefits for days of unemployment in excess of seven in that period.

The employee is then paid benefits for days of unemployment in excess

of four in each of the two ensuing registration periods. [Note: if this

employee's period of continuing unemployment had been the result of a

strike in the establishment, premises, or enterprise at which the

employee was last employed, then under paragraph (d) of this section,

no benefits would be payable for the period June 14 to June 27, and

benefits would then be payable for days of unemployment in excess of

four in each of the ensuing registration periods.]

(2) Example 2. Same facts as in example 1, but the employee is

unemployed again beginning August 18. Since August 18 is more than 15

days after July 25, the end of his last registration period, the

employee begins a new period of continuing unemployment. The employee's

first registration period in the new period of continuing unemployment

covers August 18 to August 31. The employee is paid benefits for days

of unemployment in excess of seven in that registration period because

that period is the employee's first registration period in a new period

of continuing unemployment commencing in the benefit year beginning

July 1, and he or she did not previously have a waiting period in any

registration period earlier in that benefit year. The employee's next

registration period covers September 1 to September 14, and the

employee returned to work on September 12. In that registration period,

the employee has 11 days of unemployment and is therefore paid benefits

for days of unemployment in excess of four.

(3) Example 3. Same facts as in examples 1 and 2, but the employee

then has a new period of continuing unemployment beginning November 1

in the same benefit year. November 1 to November 14 is the employee's

first registration period in that period of continuing unemployment.

The employee is paid benefits for days of unemployment in excess of

four in that registration period and for days of unemployment in excess

of four in any subsequent registration period in the same benefit year

because earlier in the benefit year the employee had a registration

period, August 18 to August 31, in which he or she satisfied the

waiting period.

(g) Remuneration exceeds base year compensation. (1) No benefits

are payable to any otherwise eligible employee for any day of

unemployment in a registration period where the total amount of

remuneration, as defined in part 322 of this chapter, payable to the

employee during a registration period exceeds the amount of the base

year monthly compensation base. For this purpose an employee is

considered to have received the amount he would have earned except for

the fact that he declined suitable work available to him or her during

the registration period.

(2) Days of unemployment which are not compensable by virtue of

paragraph (g)(1) of this section shall nevertheless be counted as days

of unemployment for purposes of determining whether the general waiting

period, as described in paragraph (c) of this section, has been

satisfied.

* * * * *

PART 330--DETERMINATION OF DAILY BENEFIT RATES

3. The authority citation for part 330 continues to read as

follows:

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

4. Section 330.1 is revised to read as follows:

[[Page 67813]]

Sec. 330.1 Introduction.

The Railroad Unemployment Insurance Act provides for the payment of

benefits, at a specified daily benefit rate, to any qualified employee

for his or her days of unemployment or days of sickness, subject to a

maximum amount per day. The ``daily benefit rate'' for an employee is

the amount of benefits that he or she may receive for each compensable

day of unemployment or sickness in any registration period in a period

of continuing unemployment or sickness.

5. Paragraphs (b), (c), and (d) of Sec. 330.2 are revised to read

as follows:

Sec. 330.2 Computation of daily benefit rate.

* * * * *

(b) Maximum daily benefit rate. The maximum daily benefit rate is

the product of the monthly compensation base, as computed under part

302 of this chapter, for the base year immediately preceding the

beginning of the benefit year, multiplied by five percent. If the

maximum daily benefit rate so computed is not a multiple of $1.00, the

Board will round it down to the nearest multiple of $1.00.

(c) When increase effective. Whenever the annual application of the

formula in paragraph (b) of this section triggers an increase in the

maximum daily benefit rate, such increase will apply to days of

unemployment or days of sickness in registration periods beginning

after June 30 of the calendar year immediately following the base year

referred to in paragraph (b) of this section.

(d) Notice. Whenever the annual application of the formula in

paragraph (b) of this section triggers an increase in the maximum daily

benefit rate, or if the annual application of the formula does not

trigger an increase, the Board will publish a notice in the Federal

Register explaining how it computed the maximum daily benefit rate for

the year. The Board will also notify each employer of the maximum

amount of the daily benefit rate. The Board will make the computation

as soon as it has computed the amount of the monthly compensation base

under part 302 of this chapter and will publish notice as soon as

possible thereafter, but in no event later than June 1 of each year.

Information as to the current amount of the maximum daily benefit rate

will also be available in any Board district or regional office.

* * * * *

PART 335--SICKNESS BENEFITS

6. The authority citation for part 335 continues to read as

follows:

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

7. Section 335.6 is revised to read as follows:

Sec. 335.6 Payment of sickness benefits.

(a) General rule. Except as provided in this section, benefits are

payable to any qualified employee for each day of sickness after the

fourth consecutive day of sickness in a period of continuing sickness,

as defined in Sec. 335.1(c), but excluding four days of sickness in any

registration period in such period of continuing sickness.

(b) Waiting period. Benefits are payable to any qualified employee

for each day of sickness in excess of seven during his or her first

registration period in a period of continuing sickness if such period

of continuing sickness is his or her initial period of continuing

sickness beginning in the benefit year. For this purpose, the first

registration period in a period of continuing sickness is the

registration period that first begins with four consecutive days of

sickness and includes more than four days of sickness. For the purpose

of computing benefits under this section, a period of continuing

sickness ends on the last day of a benefit year in which the employee

exhausts rights to sickness benefits as provided for under part 336 of

this chapter.

(c) Computation of compensable days. (1) Example 1. An employee has

an initial period of continuing sickness from June 14 through July 25,

and all days in that period are days of sickness. The employee's first

registration period covers June 14 to June 27, and his or her

subsequent registration period covers June 28 to July 11, and July 12

to July 25. In the one-week waiting period the employee is paid

benefits for days of sickness in excess of seven. In each of the two

ensuing registration periods the employee is paid benefits for days of

sickness in excess of four.

(2) Example 2. Same facts as in Example 1, but the employee later

has a new period of continuing sickness based upon a different illness

or impairment beginning September 17. The employee's first registration

period in his or her new period of continuing sickness covers September

17 to September 30. The employee is paid benefits for days of sickness

in excess of seven in that 14-day period because that period is his or

her first registration period in a new period of continuing sickness

commencing in the benefit year beginning July 1, and he or she did not

previously have a waiting period in any registration period earlier in

the benefit year.

(3) Example 3. Same facts as in examples 1 and 2, but the employee

then has a new period of continuing sickness beginning January 1 in the

same benefit year. January 1 to January 14 is the employee's first

registration period in that period of continuing sickness. The employee

is paid benefits for days of sickness in excess of four in that

registration period because earlier in the benefit year he or she had a

registration period, September 17 to September 30, in which he or she

satisfied the initial seven-day waiting period.

(d) Amount payable. The gross amount of sickness benefits for any

registration period in a period of continuing sickness shall be

computed by multiplying the number of compensable days of sickness in

such registration period by the employee's daily benefit rate, as

computed under part 330 of this chapter.

PART 336--DURATION OF NORMAL AND EXTENDED BENEFITS

8. The authority citation for part 336 continues to read as

follows:

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

9. Section 336.13 is revised to read as follows:

Sec. 336.13 Years of service requirement.

(a) Eligibility. 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.

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

employee has 10 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, subject to part 211 of this chapter.

(c) Effective date. An employee acquires ten years of railroad

service as of the first day with respect to which creditable

compensation is attributable in his 120th month of service.

10. In Sec. 336.14, paragraphs (a), (c), and (d) are revised to

read as follows:

Sec. 336.14 Extended benefit period.

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

consecutive 14-day registration periods.

* * * * *

[[Page 67814]]

(c) Ending date. An employee's extended benefit period ends on the

97th 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 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. Extended benefits may be

paid for a maximum of 65 days of unemployment (or 65 days of sickness,

as the case may be) within an employee's extended benefit period.

Dated: November 23, 1999.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 99-31323 Filed 12-2-99; 8:45 am]

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