CLEVELAND, March 11 — The U.S. Railroad Retirement Board announced on Friday that unemployment and sickness benefits payable under the Railroad Unemployment Insurance Act (RUIA) for days after February 28, 2013, are being reduced by 9.2% as part of a package of automatic spending cuts required by the Budget Control Act of 2011 (BCA), which was passed in August 2011. Retirement annuities paid under the age and service or occupational disability provisions of the Railroad Retirement Act are unaffected.
The Board’s March 8 Notice states as follows:
“This sequestration is the result of the failure of the Joint Select Committee on Deficit Reduction to propose, and Congress to enact, legislation reducing the deficit, as required by the BCA. Under the BCA, the cuts were triggered to take effect beginning January 1, 2013, if the Joint Select Committee on Deficit Reduction did not agree to a $1.2 trillion deficit-reduction package by November 23, 2011. The cuts were initially delayed but will now take effect March 1, 2013. The initial reduction will continue through September 30, 2013. Congress will determine the amount of subsequent reductions for October 1, 2013 and beyond.”
The Notice instructs BLET members who have questions regarding the reduction or sequestration of RUIA benefits to contact the Railroad Retirement Board’s Quality Reporting Service Center at (312) 751-4992.
BLET National President Dennis R. Pierce sharply criticized the forced cut in benefits. “Congress had a year and a half to get its act together and pass a deficit-reduction package that balances revenue increases and spending cuts,” Pierce said. “Shame on those who stood in the way of a resolution that would have prevented harm to the most vulnerable of Americans.”
Updates will be provided as additional information is obtained.
The Railroad Retirement Board’s Notice can viewed, printed or downloaded at:
www.ble-t.org/pr/pdf/pl13-04.pdf