94-1829. Duration of Normal and Extended Benefits  

  • [Federal Register Volume 59, Number 19 (Friday, January 28, 1994)]
    [Unknown Section]
    [Page ]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-1829]
    
    
    [Federal Register: January 28, 1994]
    
    
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    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]
    BILLING CODE 7905-01-P
    
    
    

Document Information

Published:
01/28/1994
Department:
Railroad Retirement Board
Entry Type:
Uncategorized Document
Action:
Final rule.
Document Number:
94-1829
Dates:
January 28, 1994.
Pages:
0-0 (None pages)
Docket Numbers:
Federal Register: January 28, 1994
RINs:
3220-AA67
CFR: (12)
20 CFR 336.1
20 CFR 336.2
20 CFR 336.3
20 CFR 336.4
20 CFR 336.5
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