Fringe Benefits
Fringe Benefits 2025
The following breakdown represents the estimated value of fringe benefits accruing to operating employees with annual wages of $176,100/$130,800* or more during the 2025 calendar year. The values set forth below are computed on the basis of 2025 costs of The Railroad Employees National Health and Welfare Plan as of November 2024.
PAID BY THE CARRIER |
PER YEAR |
PER MONTH |
| Railroad Retirement Tier 1 (6.20%) | $10,918.20 | $909.85 |
| Railroad Retirement Tier 2 (13.10%) | $17,134.80 | $1,427.90 |
| Medicare (1.45%) up to Tier 1 cap 1/ | $2,553.45 | $212.79 |
| Unemployment/Sickness (RUIA) 2/ | $1,375.32 | $114.61 |
| Health Plan (GA-23000, incl. Life/AD&D) 3/ | $21,430.56 | $1,785.88 |
| Health Plan – Retiree (GA-46000) | $397.80 | $33.15 |
| Dental Plan (GP-12000) | $656.76 | $54.73 |
| Vision Plan | $115.92 | $9.66 |
Total |
$54,582.81 |
$4,548.57 |
PAID BY THE EMPLOYEE |
PER YEAR |
PER MONTH |
| Railroad Retirement Tier 1 (6.20%) | $10,918.20 | $909.85 |
| Railroad Retirement Tier 2 (4.90%) | $6,409.20 | $534.10 |
| Medicare (1.45%) up to Tier 1 cap 1/ | $2,553.45 | $212.79 |
Total |
$19,880.85 |
$1,656.74 |
| * | $176,100 represents the minimum annual wage subject to a maximum railroad retirement Tier 1 tax. $130,800 represents the minimum annual wage subject to the maximum railroad retirement Tier 2 tax. Medicare is taxed at a rate of 1.45% with no annual maximum applicable. |
| 1/ | The Medicare tax shown is the annual tax at the Tier 1 earnings cap. |
| 2/ | The RUIA tax rate will vary from year to year based upon the individual railroad’s experience rating; the maximum rate is 12%. The amount shown here is based on an assumed RUIA tax rate of 5.55%, which is applied to the first $2,065 earned each month. The maximum daily benefit rate is $94.00 for the benefit year beginning on July 1, 2024, and $99.00 for the benefit year beginning on July 1, 2025 and thereafter. |
| 3/ |
As of January 1, 2025, the employee contribution to The Railroad Employees National Health and Welfare Plan is $277.54 per month and will remain at that rate until January 1, 2026, unless otherwise adjusted per a future BLET National Agreement. |
| NOTE: |
Not included in the breakdown are vacations, holidays and other paid time off benefits, which vary by railroad, class of service and seniority. |
