[Federal Register Volume 59, Number 218 (Monday, November 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27958]


[[Page Unknown]]

[Federal Register: November 14, 1994]


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RAILROAD RETIREMENT BOARD
 

1995 Monthly Compensation Base and Other Determinations

AGENCY: Railroad Retirement Board.

ACTION: Notice.

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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 $850 
for months in calendar year 1995;
2. The amount described in section 1(k) of the Act as ``2.5 times the 
monthly compensation base'' is $2,125.00 for base year (calendar year) 
1995;
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 
$1,098 for months in calendar year 1995;
4. The amount described in section 3 of the Act as ``2.5 times the 
monthly compensation base'' is $2,125.00 for base year (calendar year) 
1995;
5. The amount described in section 4(a-2)(i)(A) of the Act as ``2.5 
times the monthly compensation base'' is $2,125.00 with respect to 
disqualifications ending in calendar year 1995;
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, 1995.

DATES: The determinations made in notices (1) through (5) are effective 
January 1, 1995. The determination made in notice (6) is effective for 
registration periods beginning after June 30, 1995.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush 
Street, Chicago, Illinois 60611-2092.

FOR FURTHER INFORMATION CONTACT:
Timothy H. Hogueisson, Bureau of Research and Employment Accounts, 
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, 1994, the 
computation of the calendar year 1995 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, 1995, 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, 1995.

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 1995 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 1995 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 1995 tier 1 tax base is $61,200. Subtracting 
$37,800 from $61,200 produces $23,400. Dividing $23,400 by $56,700 
yields a ratio of 0.41269841. Adding one 1.41269841. Multiplying $600 
by the amount 1.41269841 produces the amount of $847.62, which must 
then be rounded to $850. Accordingly, the monthly compensation base is 
determined to be $850 for months in calendar year 1995.

Amounts Related to Changes in Monthly Compensation Base

    For years 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 1995 monthly compensation base of $850 produces 
$2,125.00. Accordingly, the amount determined under section 1(k) is 
$2,125.00 for calendar year 1995.
    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 1995 monthly compensation base is $850. The ratio 
of $850 to $600 is 1.41666667. Multiplying 1.41666667 by $775 produces 
$1,098. Accordingly, the amount determined under section 2(c) is $1,098 
for months in calendar year 1995.
    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 1995 monthly compensation base of $850 produces 
$2,125.00. Accordingly, the amount determined under section 3 is 
$2,125.00 for calendar year 1995.
    Under section 4(a-2)(i)(A), an employee who leaves work voluntarily 
without good cause is disqualified from receiving 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 times the calendar year 1995 
monthly compensation base is $850 produces $2,125.00. Accordingly, the 
amount determined under section 4(a-2)(i)(A) is $2,125.00 for calendar 
year 1995.

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, 1995, 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 1995 tier 1 tax base is $61,200. Dividing $61,200 
by 60 yields $1,020. The 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 periods 
after June 30, 1995, is determined to be $36.

    Dated: November 1, 1994.
    By authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 94-27958 Filed 11-10-94; 8:45 am]
BILLING CODE 7905-01-P-M