[House Report 104-525]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     104-525
_______________________________________________________________________


 
         RAILROAD UNEMPLOYMENT INSURANCE AMENDMENTS ACT OF 1995
                                _______


 April 18, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2594]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2594) to amend the Railroad 
Unemployment Insurance Act to reduce the waiting period for 
benefits payable under that Act, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                          Purpose and Summary

    H.R. 2594, the Railroad Unemployment Insurance Amendments 
Act of 1995, is a bipartisan bill that is supported by rail and 
rail management and rail labor. The bill revises railroad 
unemployment and sickness benefits; brings such benefits more 
into line with benefits provided by State unemployment systems; 
and establishes revised benefit and indexing formulas.
    The Railroad Unemployment Insurance (RUI) system currently 
has a two-week waiting period before benefits begin to accrue, 
while 39 State unemployment systems have a one-week waiting 
period and 11 have none. H.R. 2594 reduces the waiting period 
from two weeks to seven days. It also eliminates a new waiting 
period required under current law, whenever the continuing 
unemployment or sickness extends into a new fixed benefit year.
    Currently, more than 40 States have higher maximum benefit 
rates than RUI provides ($36/day or $180/week). H.R. 2594 will 
increase the benefit rate to $42/day, with indexed increases in 
future years. Over the period of the next eight years, benefits 
under this legislation are expected to run about 15 percent 
higher than under current law.
    As a partial offset to increases in the daily benefit rate 
and to the reduction in the waiting period, H.R. 2594 limits 
extended benefits to 65 days (instead of the present 130 days) 
and introduces an earnings test that disqualifies workers whose 
partial earnings exceed the applicable base year monthly 
compensation base in a two-week benefit period.

                Background and Need for the Legislation

    The Railroad Unemployment Insurance Act provides for a 
nationally uniform railroad unemployment insurance system, 
administered by the Railroad Retirement Board. The Act also 
provides sickness benefits for railroad workers.
    Many features of the current Railroad Unemployment 
Insurance (RUI) system emerged from legislation passed in 1988 
(P.L. 100-647). That law was fashioned, in significant part, on 
the joint recommendations of rail labor and rail management. At 
that time, the old RUI system was deeply in debt to the 
Railroad Retirement System because of sharp cutbacks in rail 
employment in the 1980s. The 1988 legislation imposed a 
repayment tax on the railroads and introduced experience rating 
to make individual employers proportionately responsible for 
the unemployment and sickness benefits paid to their own 
employees. The legislation also included a lower inflation 
benefits escalator than typical State plans and a longer 
waiting period for initial benefits.
    Since 1988, the system's financial fortunes have improved 
markedly. Increased railroad tax payments, limitations on 
benefit increases, and a decline in railroad unemployment 
levels have contributed to a RUI system that now enjoys solid 
financial health. In 1993, more than one year early, it 
completely paid off the debt it owed to the Railroad Retirement 
System.
    With the improvement in the system's financial health, rail 
labor and rail management now support benefit changes to bring 
the system more in line with unemployment benefits provided by 
State unemployment systems. Because current law provides that 
RUI employer contributions increase as benefits increase, no 
revenue changes are required to implement the provisions of 
H.R. 2594.

                          Agency Cost Estimate

    The Railroad Retirement Board has submitted cost estimates 
regarding H.R. 2594 based on June 1, 1996 and July 1, 1996 
effective dates. (H.R. 2594 would take effect on the date of 
enactment. For purposes of its estimate, CBO assumed a February 
1, 1996 effective date.) According to the Railroad Retirement 
Board estimates, H.R. 2594 would have the effect of reducing 
the deficit by $14.5 million with a June 1, 1996 effective 
date, and by $14.6 million with a July 1, 1996 effective date.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee notes that the 
legislation affects the operation of two trust funds, the 
Railroad Unemployment Insurance Account and the Railroad 
Retirement Account. The bill will increase the unemployment 
benefits, but also will limit extended benefits to 65 days 
instead of the present 130 days and will introduce an earnings 
test that disqualifies workers whose partial earnings exceed 
the applicable base year monthly compensation base in two-week 
benefit period. Thus, the Committee believes that enactment of 
the bill will have any inflationary effect on prices and costs 
in the operation of the national economy.

                      Section-by-Section Analysis

Section 1. Short Title.

    Section 1 of the bill provides that the Act may be cited as 
the ``Railroad Unemployment Insurance Amendments Act of 1995.''

Sec. 2. Waiting Period for Unemployment Benefits.

    Section 2 of the bill amends section 2(a)(1)(A) of the 
Railroad Unemployment Insurance Act, providing terms and 
conditions for payment of railroad unemployment benefits. 
Section 2 allows an employee to receive benefits for up to 
seven days of unemployment. Under current law, an employee's 
first registration period during a period of continuing 
unemployment. Under current law, an employee can receive no 
benefits at all during the first registration period. The 
change does not apply to employees whose period of unemployment 
is attributable to a stoppage of work because of a strike.
    The bill provides that, after the first registration 
period, employees may receive up to 10 days of benefits in each 
succeeding registration period, as under current law.
    Section 2 also adds a definition of ``period of continuing 
unemployment.'' Under this definition, once an employee has 
satisfied the waiting period requirement, there would not be 
another waiting period during the same period of continuing 
unemployment, even if a new benefit year begins during that 
period of continuing unemployment.
    Finally, section 2 precludes the payment of unemployment 
benefits to an employee during a registration period if the 
employee had earnings during such registration period in excess 
of the amount of the monthly compensation base for the 
applicable base year. The monthly compensation base in 1995 is 
$850. Therefore, in the benefit year starting July 1, 1996, any 
employee who earned in excess of $850 in a registration period 
could not receive unemployment benefits for that period. Under 
current law an employee can receive benefits for a day of 
unemployment regardless of how much was earned during the 
remaining days of the registration period. Like the daily 
benefit rate (see Section 4), the monthly compensation base is 
automatically indexed and will increase each year.

Sec. 3. Waiting Period for Sickness Benefits.

    Section 3 of the bill amends section 2(a)(1)(B) of the 
Railroad Unemployment Insurance Act to make the same changes 
with respect to the waiting period for unemployment benefits as 
section 2 of the bill makes with respect to the waiting period 
for unemployment benefits. Under section 3, employees will be 
able to receive sickness benefits for up to seven days during 
the first registration period of continuing sickness. Under 
current law, the employee can receive no benefits at all in the 
first registration period. Further, under the bill, there would 
not be another waiting period during the same period of 
continuing sickness, even if a new benefit year begins during 
the period of continuing sickness.

Sec. 4. Maximum Daily Benefit Rate.

    Section 4 amends section 2(a)(3) of the Railroad 
Unemployment Insurance Act of change the indexing formula for 
computing the new maximum daily benefit rate for days of 
unemployment and sickness each benefit year. Under the new 
formula, the maximum daily rate for benefits each benefit year 
will be five percent of the monthly compensation base for the 
base year, rounded down to the nearest multiple of $1.00. Thus, 
for the current benefit year, the maximum daily rate for 
unemployment and sickness benefits will be $42. Currently, the 
maximum daily rate is $36.

Sec. 5. Maximum Number of Days for Benefits.

    Section 5 of the bill amends section 2(c) of the Railroad 
Unemployment Insurance Act to provide extended benefits for a 
maximum of 65 days of unemployment or 65 days of sickness 
during a benefit year after regular benefits are exhausted. 
These extended benefits are payable to employees with 10 or 
more years of railroad service. Under current law, employees 
with 15 or more years of railroad service are entitled to 130 
days of extended unemployment benefits or 130 days of extended 
sickness benefits.
    Section 5 of the bill also deletes obsolete sections 2(h) 
and 17 of the Railroad Unemployment Insurance Act, which 
provided increased benefits during periods of high 
unemployment.

Sec. 6. Effective Date.

    Section 6 of the bill provides that the amendments made by 
the bill will be effective on the date of enactment.

                        Committee Consideration

    On November 16, 1995, the Committee on Transportation and 
Infrastructure met in open session and ordered reported the 
bill H.R. 2594, by a unanimous voice vote, a quorum being 
present.

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, oversight findings and 
recommendations have been made by the Committee as reflected in 
this report.

                   Committee on Government Operations

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, the Committee notes that no 
oversight findings have been submitted to the Committee by the 
Committee on Government Operations.

                        Committee Cost Estimate

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the Committee believes that the 
cost of administering H.R. 2594 would be no more than the 
amounts described in the estimate provided by the Congressional 
Budget Office that accompanies this report:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, December 20, 1995.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2594, the Railroad 
Unemployment Insurance Amendments of 1995, as ordered reported 
by the Committee on Transportation and Infrastructure on 
November 16, 1995.
    The bill would affect direct spending and thus would be 
subject to pay-as-you-go procedures under section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.

               Congressional Budget Office Cost Estimate

    1. Bill number: H.R. 2594.
    2. Bill title: The Railroad Unemployment Insurance 
Amendments Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on Transportation and Infrastructure on November 16, 1995.
    4. Bill purpose: H.R. 2594 would amend the Railroad 
Unemployment Insurance Act to reduce the waiting period for 
benefits payable under the act, limit the amount of benefits 
paid to unemployment claimants with earnings in excess of the 
monthly compensation base, increase the daily benefit rate, and 
decrease the maximum number of days of benefits for employees 
with 15 or more years of railroad service.
    5. Estimated cost to the Federal Government: Enactment of 
H.R. 2594 would affect direct spending by increasing benefit 
outlays under the Railroad Unemployment Insurance Act and by 
increasing revenues. In 1993, 271,000 individuals were employed 
in the rail industry, but railroad employment has been 
decreasing over the past several years at a rate of 17,000 
annually. Over fiscal years 1996-2002, benefit outlays to 
unemployment railroad workers would increase by $82 million 
under this bill, and revenues would increase by $64 million. 
The following table summarizes the estimated budgetary impact 
of this bill.

----------------------------------------------------------------------------------------------------------------
                                                           1996    1997    1998    1999    2000    2001    2002 
----------------------------------------------------------------------------------------------------------------
            Direct Spending Under Current Law                                                                   
                                                                                                                
Railroad Unemployment Insurance Benefits:                                                                       
    Estimated Budget Authority..........................      69      68      68      70      70      73      73
    Estimated Outlays...................................      69      68      68      70      70      73      73
                                                                                                                
                 Changes Under H.R. 2594                                                                        
                                                                                                                
Railroad Unemployment Insurance Benefits:                                                                       
    Waiting Period:                                                                                             
        Estimated Budget Authority......................       4       5       5       5       5       5       5
        Estimated Outlays...............................       4       5       5       5       5       5       5
    Limit on the Amount of Benefits:                                                                            
        Estimated Budget Authority......................      -1      -1      -1      -1      -1      -1      -1
        Estimated Outlays...............................      -1      -1      -1      -1      -1      -1      -1
    Increase in the Daily Benefit Rate:                                                                         
        Estimated Budget Authority......................       8      12      12       9      10       9      10
        Estimated Outlays...............................       8      12      12       9      10       9      10
    Maximum Number of Days of Benefits:                                                                         
        Estimated Budget Authority......................      -2      -2      -2      -2      -2      -2      -2
        Estimated Outlays...............................      -2      -2      -2      -2      -2      -2      -2
                                                         -------------------------------------------------------
      Total Changes Under H.R. 2594:                                                                            
        Estimated Budget Authority......................       9      13      14      11      12      11      12
        Estimated Outlays...............................       9      13      14      11      12      11      12
                                                                                                                
                Spending Under H.R. 2594                                                                        
                                                                                                                
Railroad Unemployment Insurance Benefits:                                                                       
    Estimated Budget Authority..........................      78      81      81      82      82      83      83
    Estimated Outlays...................................      78      81      81      82      82      83      83
                                                                                                                
                        Revenues                                                                                
                                                                                                                
    Employer Contributions Under Current Law............      23      35      82     124     107      67      61
    Change in Employer Contributions....................       0      17      22       3      -2       6      18
    Employer Contributions Under H.R. 2594..............      23      52     102     127     105      73      79
Net Effect on the Deficit...............................       9      -4      -8       8      10       5      -6
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals due to rounding.                                                         

    The costs of this bill fall within budget function 600.
    6. Basis of estimate: This estimate is based upon an 
assumed enactment date of February 1, 1996.
    Waiting Period. Currently, beneficiaries begin to receive 
unemployment or sickness benefits on the 14th day after filing 
a claim. The bill would reduce this waiting period from 14 days 
to 7 days. Thus, this provision would have the effect of paying 
benefits one week sooner than under current law. Furthermore, 
under current law, benefits are related to a benefit year that 
runs from July 1 to June 30. If an individual's spell of 
unemployment or sickness starts in one benefit year and 
continues across a second benefit year, then the individual 
must serve two waiting periods (one for each benefit year). The 
bill would require only one waiting period for continuing 
spells of unemployment or sickness that cross benefit years, 
thereby increasing the amount of benefits paid. CBO estimates 
these provisions would increase benefit payments by $34 million 
over the seven fiscal years 1996-2002.
    Limit on the Amount of Benefits. Under current law, 
individuals collecting unemployment or sickness benefits are 
allowed to receive their full benefit amount even if they are 
receiving earnings from other work. H.R. 2594 would disqualify 
an individual from receiving unemployment or sickness benefits 
if that individual earned in each 14-day period more than the 
base-year monthly compensation amount for that same 14-day 
period. A base year is the calendar year preceding the current 
benefit year. For example, for the benefit year beginning July 
1, 1995, the base year would be calendar year 1994. The monthly 
compensation amount for that year is $840. If this provision 
were enacted, an individual earning more than the monthly 
compensation amount would be disqualified from receiving 
benefits. If the individual earned less than that rate, the 
full benefit amount would be paid. CBO estimates this provision 
would reduce unemployment and sickness benefits by $6 million 
over the 7-year period.
    Increase in the Daily Benefit Rate. H.R. 2594 would set the 
daily benefit rate to equal 5 percent of the monthly 
compensation amount specified in the law for the program. The 
current formula is somewhat more complicated and does not 
always increase from year to year. This provision would 
increase the daily benefit rate. The maximum daily benefit 
rates under current law and under the proposal are shown in the 
table below.

----------------------------------------------------------------------------------------------------------------
                                                           1996    1997    1998    1999    2000    2001    2002 
----------------------------------------------------------------------------------------------------------------
Current Law.............................................     $36     $36     $39     $39     $42     $42     $44
Proposal................................................      42      43      44      45      47      48      50
----------------------------------------------------------------------------------------------------------------

    CBO estimates this provision would increase benefit outlays 
by $70 million over the 7-year period.
    Maximum Number of Days of Benefits. Currently, eligible 
individuals receive up to 130 days of unemployment benefits and 
up to 130 days of sickness benefits within a benefit year. 
Unemployed railroad workers with 10 to 15 years of service are 
eligible to receive an additional 65 days of either 
unemployment or sickness benefits, depending on which normal 
benefits they exhausted. Workers with more than 15 years of 
service are eligible for an additional 130 days of benefits. 
This bill would eliminate the 65 additional days of benefits 
for those with more than 15 years of service. CBO estimates 
that this provision would save $16 million over the 7-year 
period.
    Revenues. Because the bill would increase the total amount 
of unemployment and sickness benefits, the amount employers are 
required to contribute to the unemployment fund would increase 
as well. The Railroad Unemployment Insurance program is 
experience-rated, and employer tax rates increase automatically 
when benefit payments increase. CBO estimates employer 
contributions would increase by $64 million over the 7-year 
period.
    7. Pay-as-you-go-considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. The bill would have the 
following pay-as-you-go effects:

------------------------------------------------------------------------
                                                   1996    1997    1998 
------------------------------------------------------------------------
Change in Outlays...............................       9      13      14
Change in Receipts..............................       0      17      22
------------------------------------------------------------------------

    8. Estimated cost to state and local governments: The 
revenue estimate includes additional costs that would be 
incurred by state and local commuter authorities as a result of 
enacting H.R. 2594. CBO estimates that these costs would total 
about $5 million for fiscal years 1996-2002, as approximately 
8-10 percent of railroad employment is directly related to 
these authorities.
    9. Estimate comparison: On December 1, 1995, the Railroad 
Retirement Board forwarded its estimate of H.R. 2594 to 
Chairwoman Molinari of the Subcommittee on Railroads of the 
Committee on Transportation and Infrastructure. The Railroad 
Retirement Board's estimate assumed an effective date of 
January 1, 1996. Therefore, their benefit outlay increases are 
slightly higher than CBO's estimated increases, which assume 
enactment on February 1, 1996. Additionally, the Railroad 
Retirement Board's estimate of the increase in revenues is 
higher than CBO's.
    10. Previous CBO estimate: CBO provided an estimate for 
H.R. 4868 of the 103rd Congress on August 9, 1994. H.R. 4868 
and H.R. 2594 are identical. CBO's estimates of the two bills 
are similar.
    11. Estimate prepared by: Christi Hawley, Peter Ricoy, and 
Marc Nicole.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                  RAILROAD UNEMPLOYMENT INSURANCE ACT

          * * * * * * *

                                benefits

    Sec. 2. (a)(1)[(A)(i) 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.
    [(ii) No benefits shall be payable for days of unemployment 
during the first registration period within a benefit year in 
which the employee has more than 4 days of unemployment.
    [(iii) In any case in which the Board finds that an 
employee's unemployment was 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 the first 14 days of unemployment due to such 
stoppage of work. However, for subsequent days of unemployment 
due to such stoppage of work, benefits shall be payable to days 
in excess of 4 during any registration period.
    [(B)(i) Except as otherwise provided in this subparagraph, 
benefits shall be payable to any qualified employee for each 
day of sickness after the 4th consecutive day of sickness in a 
period of continuing sickness but excluding 4 days of sickness 
in any registration period.
    [(ii) No benefits shall be payable for days of sickness in 
the first registration period within a benefit year in which 
the employee has both 4 consecutive days of sickness and more 
than 4 days of sickness.
    [(iii) For the purposes of this subparagraph, a period of 
continuing sickness means (I) a period of consecutive days of 
sickness, whether from one 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.]
    (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 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 beings 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)) payable or accruing to him for days within such 
        registration period exceeds the amount of the base year 
        monthly compensation base. For purposes of the 
        preceding sentence, 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.
    (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 
        4th 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) Wating 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.
          * * * * * * *
    [(3)(A) The maximum daily benefit rate which the Board is 
required to compute under section 12(r)(2) shall be the amount 
computed pursuant to the following formula, but shall be not 
less than $30:

                                                                                                                
                                                                          A-600                                 
                                      [BR=25        <3-ln (>     1+   ------------  <3-ln )>                    
                                                                           900                                  
                                                                                                                

    [(B) For purposes of such formula--
          [(i) ``BR'' represents the maximum daily benefit 
        rate; and
          [(ii) ``A'' represents the amount obtained by 
        dividing the amount of the ``applicable base'' with 
        respect to tier 1 taxes as determined under section 
        3231(e)(2) of the Internal Revenue Code of 1986 for the 
        calendar year in which the benefit year begins by 60, 
        with this quotient being rounded down to the nearest 
        multiple of $100.
    [(C) If the maximum daily benefit rate computed under such 
formula is not a multiple of $1, it shall be rounded to the 
nearest multiple of $1, with such rounding being upward in the 
event the amount computed is equidistant between two multiples 
of $1.]
    (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, it shall be rounded 
down to the nearest multiple of $1.
          * * * * * * *
    [(c) The maximum number of days of unemployment within a 
benefit year for which benefits may be paid to an employee 
shall be one hundred and thirty, and the maximum number of days 
of sickness within a benefit year for which benefits may be 
paid to an employee shall be one hundred and thirty: Provided, 
however, That the total amount of benefits which 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 which 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 the provisions of section 1(i) of this 
Act, in determining the employee's compensation in the base 
year for purposes of this proviso and the second proviso of 
this subsection, any money remuneration paid to the employee 
for services rendered as an employee shall be taken into 
account that is not in excess of $775 in any month before 1989 
and, 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) 
of this Act bears to $600: Provided further, That, with respect 
to an employee who has less than ten years of service as 
defined in section 1(f) of the Railroad Retirement Act of 1974, 
who did not voluntarily retire and did not voluntarily leave 
work without good cause, and who had current rights to normal 
benefits for days of unemployment in a benefit year but has 
exhausted such rights, the maximum number of days of, and 
amount of payment for, unemployment within such benefit year 
(as extended by the provisions of subsection (h) of this 
section) for which benefits may be paid shall be enlarged, but 
not by more than sixty-five days, to include all compensable 
days of unemployment within an extended benefit period 
determined pursuant to the provisions of subsection (h) of this 
section, but the total amount of benefits which may be paid to 
an employee for days of unemployment within such extended 
benefit period shall in no case exceed 50 per centum of the 
employee's compensation in the base year: And provided further, 
That, with respect to an employee who has ten 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 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 the 
following schedule, and the maximum number of days of, and 
amount of payment for, unemployment or sickness (depending on 
the type of benefit rights exhausted) within such benefit year 
for which benefits may be paid to the employee shall be 
enlarged to include all compensable days of unemployment or 
days of sickness, as the case may be, within such extended 
benefit period:


[If the employee's ``years of service''     The extended benefit period 
 total--                                     shall begin on the first   
                                             day of unemployment or     
                                             sickness, as the case may  
                                             be, following the day on   
                                             which the employee         
                                             exhausted his then current 
                                             rights to normal benefits  
                                             of days of unemployment or 
                                             days of sickness and shall 
                                             continue for successive    
                                             fourteen-day periods (each 
                                             of which periods shall     
                                             constitute a registration  
                                             period) until the number of
                                             such fourteen-day periods  
                                             totals--                   
    10 and less than 15...................  7 (but not more than 65     
                                             days)                      
    15 and over...........................  13                          
                                                                        


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 of this Act on the basis of 
compensation earned after the first of such successive 
fourteen-day periods has begun. For an employee who has ten or 
more years of service, who did not voluntarily retire and (in a 
case involving unemployment) did not voluntarily leave work 
without good cause, who has fourteen or more consecutive days 
of sickness, and who is not a ``qualified employee'' for 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 benefit 
year shall, in his case, begin on the first day of the month in 
which such unemployment or sickness commences. Notwithstanding 
the other provisions of this subsection, 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 the payment of 
unemployment benefits; and, in the case of a succeeding benefit 
year beginning in accordance with the next preceding sentence 
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 day on 
which age 65 is attained, and continuing through the day 
preceding the first day of the next succeeding general benefit 
year. For 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.]
    (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 purpose 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.
          * * * * * * *
    [(h)(1) For purposes of the second proviso of subsection 
(c) of this section, an extended benefit period, with respect 
to an employee, shall begin on the first day of unemployment 
within a period of high unemployment following the day on which 
the employee exhausted his then current rights to normal 
benefits for unemployment and shall continue for seven 
successive fourteen-day periods (each of which periods shall 
constitute a registration period). If the general benefit year 
in which an employee's extended benefit period began ends 
within such extended benefit period, such benefit year shall, 
in the case of such employee, be deemed not to be ended until 
the last day of the extended benefit period. If an employee 
unemployed within a period of high unemployment is not a 
``qualified employee'' for the general benefit year then 
current but was a ``qualified employee'' for the preceding 
general benefit year, such preceding general benefit year 
shall, for purposes of the second proviso of subsection (c) of 
this section, in the case of such employee, be deemed not to be 
ended until the last day of such employee's extended benefit 
period determined pursuant to the provisions of this 
subsection.
    [(2) For purposes of subdivision (1) of this subsection, a 
``period of high employment'' shall begin with the twentieth 
day after whichever of the following first occurs: (A) there is 
a national ``on'' indicator as defined in section 203(d) of 
Public Law 91-373, as amended, or (B) a period of three 
consecutive calendar months in which, for each month included 
in such period, the rate of railroad unemployment (seasonally 
adjusted) equalled or exceeded the lowest applicable 
unemployment rate specified for the national ``on'' indicator 
in section 203(d) of Public Law 91-373, as amended, and shall 
end with the twentieth day after both of the following occur: 
(A) there is a national ``off'' indicator as defined in section 
203(d) of Public Law 91-373, as amended, and (B) a period of 
three consecutive calendar months, in which, for each month 
included in such period, the rate of railroad unemployment 
(seasonally adjusted) was less than the lowest applicable 
unemployment rate specified for the national ``off'' indicator 
in section 203(d) of Public Law 91-373, as amended.
    [(3) For purposes of subdivision (2) of this subsection, 
the term ``rate of railroad unemployment'' for a month means 
the percentage arrived at by dividing: (A) the average weekly 
number of individuals who filed bona fide claims for benefits 
for days of unemployment in such month, excluding from such 
number those individuals whose unemployment was due to a 
stoppage of work because of a strike, lockout, or other labor 
dispute, by (B) the average midmonth count of employees of 
class I railroads and class I switching and terminal companies, 
as reported to the Interstate Commerce Commission, adjusted, as 
determined by the Board, to include all employees covered by 
this Act of the twelve months ending with the second calendar 
quarter preceding such month.
    [(4) Determinations under this subsection shall be made by 
the Board in accordance with regulations prescribed by it. When 
a determination has been made that a ``period of high 
unemployment'' is beginning or ending, the Board shall cause 
notice of such determination to be published in the Federal 
Register. The Board shall also cause to be published in the 
Federal Register the formula which it uses to adjust the mid-
month count of employees of class I railroads and class I 
switching and terminal companies to include all employees 
covered by this Act, and the formula it uses to make seasonal 
adjustments in the rate of railroad unemployment.]
          * * * * * * *

                          [supplement benefits

    [Sec. 17. (a) An employee as defined in section 1(d) of 
this Act shall be entitled to supplemental unemployment benefit 
in accordance with the provisions of this section for each day 
of unemployment in excess of four during any registration 
period in such employee's period of eligibility if such 
employee--
          [(1) has less than ten years of service as defined in 
        section 1(f) of the Railroad Retirement Act of 1974, 
        did not voluntarily retire, and did not voluntarily 
        leave work without good cause;
          [(2) has with respect to the benefit year beginning 
        July 1, 1982, or the benefit year beginning July 1, 
        1983, exhausted all rights to unemployment benefits 
        under this Act other than supplemental unemployment 
        benefits payable by reason of this section;
          [(3) has no rights to unemployment benefits under any 
        State unemployment compensation law or any other 
        Federal law; and
          [(4) is not receiving unemployment compensation with 
        respect to such day under the unemployment compensation 
        law of Canada.
    [(b) For purpose of this section, an employee shall be 
deemed to have exhausted his rights to unemployment benefits 
under this Act when no unemployment benefits (other than 
supplemental unemployment benefits payable by reason of this 
section) can be paid to the employee because he has received 
the maximum unemployment benefits available to him under this 
Act, other than this section.
    [(c) The amount of supplemental unemployment benefits 
payable to an employee under this section for any day of 
unemployment shall be equal to the amount that would be payable 
to him for such day under section 2(a) of this Act if he were 
entitled to receive benefits under such section.
    [(d) The maximum number of days of unemployment for which 
supplemental unemployment benefits may be paid to an employee 
by reason of this section shall be fifty.
    [(e) No supplemental unemployment benefits shall be payable 
by reason of this section for any day before March 10, 1983, or 
for any day in any registration period beginning after June 30, 
1984.
    [(f)(1) For purposes of this section the term ``period of 
eligibility'' means, with respect to any employee for the 
benefit year beginning July 1, 1982, the period beginning with 
the later of--
          [(A) the first day of unemployment following the day 
        on which he exhausted his rights to unemployment 
        benefits (as determined under subsection (b)) in such 
        benefit year; or
          [(B) March 10, 1983,
and consisting of five consecutive registration periods 
(without regard to benefit year); except that for purposes of 
this paragraph and any registration period beginning after June 
30, 1983, and before the date of the enactment of the 
Supplemental Appropriations Act, 1984, shall not be taken into 
account for purposes of payment of benefits, or in determining 
the consecutiveness of registration periods.
    [(2) For purposes of this section the term ``period of 
eligibility'' means, with respect to any employee for the 
benefit year beginning July 1, 1983, the period beginning with 
the later of--
          [(A) the first day of unemployment following the day 
        on which he exhausted his rights to unemployment 
        benefits (as determined under subsection (b)) in such 
        benefit year; or
          [(B) the date of the enactment of the Supplemental 
        Appropriations Act, 1984,
and consisting of five consecutive registration periods; except 
that no such period of eligibility shall include any 
registration period beginning after June 30, 1984.
    [(g) The terms and conditions of this Act that apply to 
claims for unemployment benefits and the payment or recovery 
thereof shall apply to claims for supplemental unemployment 
benefits and payment thereof, except where inconsistent with 
the provisions of this section.
    [(h)(1) There are authorized to be appropriated from the 
general fund in the Treasury to the railroad unemployment 
insurance account in the Unemployment Trust Fund, without 
fiscal year limitation, such sums as may be necessary to pay 
supplemental unemployment benefits payable by reason of this 
section. Such amounts shall not be required to be repaid.
    [(2) There are authorized to be appropriated from the 
general fund in the Treasury to the railroad unemployment 
insurance administration account in the Unemployment Trust 
Fund, without fiscal year limitation, such sums as may be 
necessary to meet the costs of administering the program of 
supplemental unemployment benefits established by this section. 
Such amounts shall not be required to be repaid.]
           * * * * * * *

                                
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