[Congressional Record Volume 140, Number 115 (Tuesday, August 16, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 16, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         RAILROAD UNEMPLOYMENT INSURANCE AMENDMENTS ACT OF 1994

  Ms. SCHENK. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4868) to amend the Railroad Unemployment Insurance Act to 
reduce the waiting period for benefits payable under that Act, and for 
other purposes, as amended.
  The Clerk read as follows:

                               H.R. 4868

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Railroad Unemployment 
     Insurance Amendments Act of 1994''.

     SEC. 2. WAITING PERIOD FOR UNEMPLOYMENT BENEFITS.

       Section 2(a)(1)(A) of the Railroad Unemployment Insurance 
     Act is amended to read as follows:
       ``(A) Payment of Unemployment Benefits.--
       ``(i) Generally.--Except as otherwise provided in this 
     subparagraph, benefits shall be payable to any qualified 
     employee for each day of unemployment in excess of 4 during 
     any registration period within a period of continuing 
     unemployment.
       ``(ii) Waiting period for first registration period.--
     Benefits shall be payable to any qualified employee for each 
     day of unemployment in excess of 7 during that employee's 
     first registration period in a period of continuing 
     unemployment if--
       ``(I) such registration period includes more than 4 days of 
     unemployment; and
       ``(II) such period of continuing unemployment is the 
     employee's initial period of continuing unemployment in the 
     benefit year.
       ``(iii) Strikes.--
       ``(I) Initial 14-day waiting period.--If the Board finds 
     that 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 such employee was last 
     employed, no benefits shall be payable for such employee's 
     first 14 days of unemployment due to such stoppage of work.
       ``(II) Subsequent days of unemployment.--For subsequent 
     days of unemployment due to the same stoppage of work, 
     benefits shall be payable as provided in clause (i) of this 
     subparagraph.
       ``(III) Subsequent periods of continuing unemployment.--If 
     such period of continuing unemployment ends by reason of 
     clause (v) but the stoppage of work continues, the waiting 
     period established in clause (ii) shall apply to the 
     employee's first registration period in a new period of 
     continuing unemployment based upon the same stoppage of work.
       ``(iv) Definition of period of continuing unemployment.--
     Except as limited by clause (v), for the purposes of this 
     subparagraph, the term `period of continuing unemployment' 
     means--
       ``(I) a single registration period that includes more than 
     4 days of unemployment;
       ``(II) a series of consecutive registration periods, each 
     of which includes more than 4 days of unemployment; or
       ``(III) a series of successive registration periods, each 
     of which includes more than 4 days of unemployment, if each 
     succeeding registration period begins within 15 days after 
     the last day of the immediately preceding registration 
     period.
       ``(v) Special rule regarding end of period.--For purposes 
     of applying clause (ii), a period of continuing unemployment 
     ends when an employee exhausts rights to unemployment 
     benefits under subsection (c) of this section.
       ``(vi) Limit on amount of benefits.--No benefits shall be 
     payable to an otherwise eligible employee for any day of 
     unemployment in a registration period where the total amount 
     of the remuneration (as defined in section 1(j) of this Act) 
     payable or accruing to him for days within such registration 
     period exceeds the amount of the base year monthly 
     compensation base. For this purpose, an employee's 
     remuneration shall be deemed to include the gross amount of 
     any remuneration that would have become payable to that 
     employee but did not become payable because that employee was 
     not ready or willing to perform suitable work available to 
     that employee on any day within such registration period.''.

     SEC. 3. WAITING PERIOD FOR SICKNESS BENEFITS.

       Section 2(a)(1)(B) of the Railroad Unemployment Insurance 
     Act is amended to read as follows:
       ``(B) Payment of Sickness Benefits.--
       ``(i) Generally.--Except as otherwise provided in this 
     subparagraph, benefits shall be payable to any qualified 
     employee for each day of sickness after the fourth 
     consecutive day of sickness in a period of continuing 
     sickness but excluding 4 days of sickness in any registration 
     period in such period of continuing sickness.
       ``(ii) Waiting period for first registration period.--
     Benefits shall be payable to any qualified employee for each 
     day of sickness in excess of 7 during that employee's first 
     registration period in a period of continuing sickness if 
     such registration period begins with 4 consecutive days of 
     sickness and includes more than 4 days of sickness, except 
     that the waiting period established in this clause shall not 
     apply to the first registration period in any subsequent 
     period of continuing sickness that begins in the same benefit 
     year.
       ``(iii) Definition of period of continuing sickness.--For 
     the purposes of this subparagraph, a period of continuing 
     sickness means--
       ``(I) a period of consecutive days of sickness, whether 
     from 1 or more causes; or
       ``(II) a period of successive days of sickness due to a 
     single cause without interruption of more than 90 consecutive 
     days which are not days of sickness.
       ``(iv) Special rule regarding end of period.--For purposes 
     of applying clause (ii), a period of continuing sickness ends 
     when an employee exhausts rights to sickness benefits under 
     subsection (c) of this section.''.

     SEC. 4. MAXIMUM DAILY BENEFIT RATE.

       Section 2(a)(3) of the Railroad Unemployment Insurance Act 
     is amended to read as follows:
       ``(3) The maximum daily benefit rate computed by the Board 
     under section 12(r)(2) shall be the product of the monthly 
     compensation base, as computed under section 1(i)(2) for the 
     base year immediately preceding the beginning of the benefit 
     year, multiplied by 5 percent. If the maximum daily benefit 
     rate so computed is not a multiple of $1.00, it shall be 
     rounded down to the nearest multiple of $1.00.''.

     SEC. 5. MAXIMUM NUMBER OF DAYS FOR BENEFITS.

       (a) In General.--Section 2(c) of the Railroad Unemployment 
     Insurance Act is amended to read as follows:
       ``(c) Maximum Number of Days for Benefits.--
       ``(1) Normal benefits.--
       ``(A) Generally.--The maximum number of days of 
     unemployment within a benefit year for which benefits may be 
     paid to an employee shall be 130, and the maximum number of 
     days of sickness within a benefit year for which benefits may 
     be paid to an employee shall be 130.
       ``(B) Limitation.--The total amount of benefits that may be 
     paid to an employee for days of unemployment within a benefit 
     year shall in no case exceed the employee's compensation in 
     the base year; and the total amount of benefits that may be 
     paid to an employee for days of sickness within a benefit 
     year shall in no case exceed the employee's compensation in 
     the base year, except that notwithstanding section 1(i), in 
     determining the employee's compensation in the base year for 
     the purpose of this sentence, any money remuneration paid to 
     the employee for services rendered as an employee shall be 
     taken into account that--
       ``(i) is not in excess of $775 in any month before 1989; 
     and
       ``(ii) in any month in a base year after 1988, is not in 
     excess of an amount that bears the same ratio to $775 as the 
     monthly compensation base for that year as computed under 
     section 1(i) bears to $600.
       ``(2) Extended benefits.--
       ``(A) Generally.--With respect to an employee who has 10 or 
     more years of service as defined in section 1(f) of the 
     Railroad Retirement Act of 1974, who did not voluntarily 
     retire and (in a case involving exhaustion of rights to 
     normal benefits for days of unemployment) did not voluntarily 
     leave work without good cause, and who had current rights to 
     normal benefits for days of unemployment or days of sickness 
     in a benefit year but has exhausted such rights, the benefit 
     year in which such rights are exhausted shall be deemed not 
     to be ended until the last day of the extended benefit period 
     determined under this paragraph, and extended unemployment 
     benefits or extended sickness benefits (depending on the type 
     of normal benefit rights exhausted) may be paid for not more 
     than 65 days of unemployment or 65 days of sickness within 
     such extended benefit period.
       ``(B) Beginning date.--An employee's extended benefit 
     period shall begin on the employee's first day of 
     unemployment or first day of sickness, as the case may be, 
     following the day on which the employee exhausts the 
     employee's then current rights to normal benefits for days of 
     unemployment or days of sickness and shall continue for 7 
     consecutive 14-day periods, each of which shall constitute a 
     registration period, but no such extended benefit period 
     shall extend beyond the beginning of the first registration 
     period in a benefit year in which the employee is again 
     qualified for benefits in accordance with section 3 on the 
     basis of compensation earned after the first of such 
     consecutive 14-day periods has begun.
       ``(C) Termination when employee reaches age of 65.--
     Notwithstanding any other provision of this paragraph, an 
     extended benefit period for sickness benefits shall 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 days of unemployment.
       ``(3) Accelerated benefits.--
       ``(A) General rule.--With respect to an employee who has 10 
     or more years of service as defined in section 1(f) of the 
     Railroad Retirement Act of 1974, who did not voluntarily 
     retire, and (in a case involving unemployment benefits) did 
     not voluntarily leave work without good cause, who has 14 or 
     more consecutive days of unemployment, or 14 or more 
     consecutive days of sickness, and who is not a qualified 
     employee with respect to the general benefit year current 
     when such unemployment or sickness commences but is or 
     becomes a qualified employee for the next succeeding general 
     benefit year, such succeeding general benefit year shall, in 
     that employee's case, begin on the first day of the month in 
     which such unemployment or sickness commences.
       ``(B) Exception.--In the case of a succeeding benefit year 
     beginning in accordance with subparagraph (A) by reason of 
     sickness, such sentence shall not operate to permit the 
     payment of benefits in the period provided for in such 
     sentence for any day of sickness beginning with the date on 
     which the employee attains age 65, and continuing through the 
     day preceding the first day of the next succeeding general 
     benefit year.
       ``(C) Determination of age.--For the purposes of this 
     subsection, the Board may rely on evidence of age available 
     in its records and files at the time determinations of age 
     are made.''.
       (b) Repeal of Deadwood Provision.--Section 2(h) of the 
     Railroad Unemployment Insurance Act is repealed.
       (c) Repeal of Expired Provision.--Section 17 of the 
     Railroad Unemployment Insurance Act (45 U.S.C. 368), relating 
     to payment of supplemental unemployment benefits, is 
     repealed.

     SEC. 6. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on the 
     date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California [Ms. Schenk] will be recognized for 20 minutes, and the 
gentleman from California [Mr. Moorhead] will be recognized for 20 
minutes.
  The Chair recognizes the gentlewoman from California [Ms. Schenk].


                             general leave

  Ms. SCHENK. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks, 
and include extraneous material, on H.R. 4868, the bill now under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. SCHENK. Mr. Speaker, I yield myself such time as I may consume.
  (Ms. SCHENK asked and was given permission to revise and extend her 
remarks.)
  Ms. SCHENK. Mr. Speaker, the Railroad Unemployment Insurance 
Amendments Act of 1994 embodies a comprehensive agreement reached 
between rail management and rail labor.
  H.R. 4868 revises railroad unemployment and sickness benefits to 
bring them more into line with the benefits provided under State 
unemployment systems. As Members know, the railroad unemployment 
insurance system is an entirely self-funded system; there are no 
taxpayer moneys involved.
  Railroad unemployment insurance currently has a 2-week waiting period 
before benefits begin to accrue. By contrast, 39 States have a 1-week 
waiting period and 11 States have no waiting period for benefits. H.R. 
4868 reduces the waiting period from 2 weeks to 7 days.
  As a partial offset to the increases in daily benefits and the 
reduction in the waiting period, the legislation reduces two of the 
advantages to workers covered by railroad unemployment insurance.
  First, it reduces the limit on extended benefits from 130 days to 65 
days.
  Second, it introduces an earnings test that would disqualify workers 
whose partial earnings exceed the prior base year monthly qualifying 
earnings--currently $810--in a 2-week benefits period.
  Mr. Speaker, H.R. 4868 is the result of long negotiations between 
rail labor and management.
  It is strongly supported by both groups, and by the majority and 
minority of our Committee on Energy and Commerce. I urge its adoption 
by the House.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MOORHEAD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I strongly support enactment of H.R. 4868. This bill 
represents a much-needed updating of the benefit levels under the 
Federal railroad unemployment insurance system.
  The bill represents a consensus approach suggested to the Congress by 
the management of the Nation's major railroads and by rail labor. It 
also represents considerable effort by our committee chairman, Mr. 
Dingell, our subcommittee chairman, Mr. Swift, and our subcommittee's 
ranking member Mr. Oxley.
  H.R. 4868 builds upon the financially sound railroad unemployment 
insurance system that has benefited from a number of key improvements 
enacted by Congress in the 1980's. Although this legislation partially 
offsets the increases in daily benefits with changes to long-term 
benefits and other aspects of the RUI system, it will still increase 
overall costs by about 15 percent. However, because Congress placed the 
RUI system on ``experience-rating'' in 1988, any increase in benefits 
paid out will automatically produce a compensating increase in carrier 
premiums in the following year. Consequently, the fiscal impact of this 
bill is minimal, and no changes were necessary to the basic payroll tax 
system supporting the railroad unemployment insurance system.
  Mr. Speaker, I strongly support approval of this bipartisan bill.
  Mr. DINGELL. Mr. Speaker, I commend Chairman Swift, Mr. Moorhead, and 
Mr. Oxley for their hard work and support in crafting this piece of 
legislation. I also want to thank the Railroad Retirement Board and its 
staff for technical assistance.
  This legislation is a bipartisan bill and a collaborative effort 
between rail labor and rail management. It makes several improvements 
to the current railroad unemployment insurance system by revising 
railroad unemployment and sickness benefits and bringing them more into 
line with benefits provided by State unemployment systems. The bill 
also establishes revised benefit and indexing formulas.
  H.R. 4868 reduces the waiting period for benefits from 2 weeks to 7 
days. Thirty-nine State unemployment systems currently have a 1-week 
waiting period and 11 have none. This legislation also increases the 
level of benefits and improves the indexing formula for such benefits. 
The railroad unemployment insurance system currently provides a maximum 
benefit rate of $36 per day. H.R. 4868 will increase the benefit rate 
to $40 per day.
  H.R. 4868 creates a more uniform railroad unemployment insurance 
system. Many features of the current railroad unemployment insurance 
system emerged from legislation passed in 1988 when the old Railroad 
Unemployment System was in debt to the Railroad Retirement System. 
Since 1988, the system's financial health has improved greatly and rail 
labor and rail management support the changes reflected in H.R. 4868.
  I urge my colleagues to support this legislation.
  Mr. OXLEY. Thank you, Mr. Speaker. I rise in strong support of H.R. 
4868. This is a bipartisan bill to update the Railroad Unemployment 
Insurance Act--the Federal system of unemployment and sickness benefits 
that applies to the railroad industry. I want to recognize and commend 
the efforts of Chairman Dingell, Subcommittee Chairman Swift, and our 
ranking member, Mr. Moorhead, for their efforts in moving this bill 
forward so expeditiously.
  H.R. 4868 is based on draft legislation jointly submitted to our 
committee by railroad labor and the management of the Nation's major 
railroads. It represents a consensus approach to increasing daily RUI 
benefits for those who need them most, and helping to offset some of 
the costs with modifications to long-term benefits and other features 
of the RUI system.
  The bill has no significant fiscal impact, and requires no 
modification in the payroll tax system that supports the RUI system. 
This reflects the decision Congress made in 1988 to place the RUI 
system on an experience-rating basis, so that each railroad's premiums 
are based on its actual payout of benefits for the preceding year. 
Because of this feature, the increase in daily benefits provided for in 
H.R. 4868 will automatically be offset by increased carrier premiums. 
This is a sound and responsible approach to keeping the RUI system on a 
stable financial footing. In fact, I think it is a classic case of a 
sound private-sector insurance technique being applied to operations of 
the Federal Government. Since we hear a lot these days about 
``reinventing government,'' we might do well to look for other cases 
where the knowledge and experience of the private sector can be applied 
to improve Government efficiency.
  Mr. MOORHEAD. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Ms. SCHENK. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California [Ms. Schenk] that the House suspend the 
rules and pass the bill, H.R. 4868, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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