New Benefit Year Begins July 1 for Railroad Unemployment and Sickness Benefits

A recent release from the Railroad Retirement Board (RRB) states: A new benefit year under the Railroad Unemployment Insurance Act begins July 1, 2016. The maximum daily benefit rate payable for claims remains at $72 in the new benefit year. Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day registration periods, so maximum benefits for biweekly claims still total $720.

However, as a result of a sequestration order under the Budget Control Act of 2011, the U.S. Railroad Retirement Board (RRB) will reduce unemployment and sickness benefits by 6.8 percent through September 30, 2016. Future reductions, should they occur, will be calculated based on applicable law.

For this reason, at the start of the new benefit year the maximum amount of benefits payable in a two-week period will be $671.04. Also, sickness benefits paid for other than on-the-job injuries are reduced for regular tier I payroll taxes of 7.65 percent. Coupled with the 6.8-percent reduction, the maximum amount payable on these sickness benefits will be $619.71 over two weeks.

Click here to read the full release from the RRB.