[Federal Register Volume 60, Number 212 (Thursday, November 2, 1995)]
[Notices]
[Pages 55746-55748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27223]
-----------------------------------------------------------------------
[[Page 55747]]
RAILROAD RETIREMENT BOARD
1996 Monthly Compensation Base and Other Determinations
AGENCY: Railroad Retirement Board.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Pursuant to section 12(r)(3) of the Railroad Unemployment
Insurance Act (Act) (45 U.S.C. 362(r)(3)), the Board gives notice of
the following:
1. The monthly compensation base under section 1(i) of the Act is
$865 for months in calendar year 1996;
2. The amount described in section 1(k) of the Act as ``2.5 times
the monthly compensation base'' is $2,162.50 for base year (calendar
year) 1996;
3. The amount described in section 2(c) of the Act as ``an amount
that bears the same ratio to $775 as the monthly compensation base for
that year as computed under section 1(i) of this Act bears to $600'' is
$1,117 for months in calendar year 1996;
4. The amount described in section 3 of the Act as ``2.5 times the
monthly compensation base'' is $2,162.50 for base year (calendar year)
1996;
5. The amount described in section 4(a-2)(i)(A) of the Act as ``2.5
times the monthly compensation base'' is $2,162.50 with respect to
disqualifications ending in calendar year 1996;
6. The maximum daily benefit rate under section 2(a)(3) of the Act
is $36 with respect to days of unemployment and days of sickness in
registration periods beginning after June 30, 1996.
DATES: The determinations made in notices (1) through (5) are effective
January 1, 1996. The determination made in notice (6) is effective for
registration periods beginning after June 30, 1996.
ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush
Street, Chicago, Illinois 60611-2092.
FOR FURTHER INFORMATION CONTACT: Timothy H. Hogueisson, Bureau of the
Actuary, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois
60611-2092, telephone (312) 751-4789.
SUPPLEMENTARY INFORMATION: The RRB is required by section 12(r)(3) of
the Railroad Unemployment Insurance Act (Act) (45 U.S.C. 362(r)(3)) as
amended by Public Law 100-647, to publish by December 11, 1995, the
computation of the calendar year 1996 monthly compensation base
(section 1(i) of the Act) and amounts described in sections 1(k), 2(c),
3 and 4(a-2)(i)(A) of the Act which are related to changes in the
monthly compensation base. Also, the RRB is required to publish, by
June 11, 1996, the maximum daily benefit rate under section 2(a)(3) of
the Act for days of unemployment and days of sickness in registration
periods beginning after June 30, 1996.
Monthly Compensation Base
For years after 1988, section 1(i) of the Act contains a formula
for determining the monthly compensation base. Under the prescribed
formula, the monthly compensation base increases by approximately two-
thirds of the growth in average national wages. The monthly
compensation base for months in calendar year 1996 shall be equal to
the greater of (a) $600 or (b) $600 [1+{(A-37,800)/56,700}], where A
equals the amount of the applicable base with respect to tier 1 taxes
for 1996 under section 3231(e)(2) of the Internal Revenue Code of 1986.
Section 1(i) further provides that if the amount so determined is not a
multiple of $5, it shall be rounded to the nearest multiple of $5.
The calendar year 1996 tier 1 tax base is $62,700. Subtracting
$37,800 from $62,700 produces $24,900. Dividing $24,900 by $56,700
yields a ratio of 0.43915344. Adding one gives 1.43915344. Multiplying
$600 by the amount 1.43915344 produces the amount of $863.49, which
must then be rounded to $865. Accordingly, the monthly compensation
base is determined to be $865 for months in calendar year 1996.
Amounts Related to Changes in Monthly Compensation Base
For years after 1988, sections 1(k), 2(c), 3 and 4(a-2)(i)(A) of
the Act contain formulas for determining amounts related to the monthly
compensation base.
Under section 1(k), remuneration earned from employment covered
under the Act cannot be considered subsidiary remuneration if the
employee's base year compensation is less than 2.5 times the monthly
compensation base for months in such base year. Multiplying 2.5 by the
calendar year 1996 monthly compensation base of $865 produces
$2,162.50. Accordingly, the amount determined under section 1(k) is
$2,162.50 for calendar year 1996.
Under section 2(c), the maximum amount of normal benefits paid for
days of unemployment within a benefit year and the maximum amount of
normal benefits paid for days of sickness within a benefit year shall
not exceed an employee's compensation in the base year. In determining
an employee's base year compensation, any money remuneration in a month
not in excess of an amount that bears the same ratio to $775 as the
monthly compensation base for that year bears to $600 shall be taken
into account.
The calendar year 1996 monthly compensation base is $865. The ratio
of $865 to $600 is 1.44166667. Multiplying 1.44166667 by $775 produces
$1,117. Accordingly, the amount determined under section 2(c) is $1,117
for months in calendar year 1996.
Under section 3, an employee shall be a ``qualified employee'' if
his/her base year compensation is not less than 2.5 times the monthly
compensation base for months in such base year. Multiplying 2.5 by the
calendar year 1996 monthly compensation base of $865 produces
$2,162.50. Accordingly, the amount determined under section 3 is
$2,162.50 for calendar year 1996.
Under section 4(a-2)(i)(A), an employee who leaves work voluntarily
without good cause is disqualified from receiving unemployment benefits
until he has been paid compensation of not less than 2.5 times the
monthly compensation base for months in the calendar year in which the
disqualification ends. Multiplying 2.5 by the calendar year 1996
monthly compensation base of $865 produces $2,162.50. Accordingly, the
amount determined under section 4(a-2)(i)(A) is $2,162.50 for calendar
year 1996.
Maximum Daily Benefit Rate
Section 2(a)(3) contains a formula for determining the maximum
daily benefit rate for registration periods beginning after June 30,
1989, and after each June 30 thereafter. Under the prescribed formula,
the maximum daily benefit rate increases by approximately two-thirds of
the growth in average national wages. The maximum daily benefit rate
for registration periods beginning after June 30, 1996, shall be equal
to the greater of (a) $30 or (b) $25 [1+{(A-600)/900}], where A equals
the applicable base with respect to tier 1 taxes under section
3231(e)(2) of the Internal Revenue Code of 1986 divided by 60, with the
quotient rounded down to the nearest multiple of $100. Section 2(a)(3)
further provides that if the amount so computed is not a multiple of
$1, it shall be rounded to the nearest multiple of $1.
The calendar year 1996 tier 1 tax base is $62,700. Dividing $62,700
by 60 yields $1,045. This amount is rounded down to $1,000, the nearest
multiple of $100. Subtracting $600 from $1,000 produces $400. The ratio
of $400 to $900 is 0.44444444. Adding 1 produces 1.44444444.
Multiplying $25 by 1.44444444 produces $36.11, which must then be
rounded to $36. Accordingly, the maximum daily benefit rate for days of
unemployment and days of sickness beginning in registration
[[Page 55748]]
periods after June 30, 1996, is determined to be $36.
Dated: October 26, 1995.
By Authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 95-27223 Filed 11-1-95; 8:45 am]
BILLING CODE 7905-01-P
