Title
I
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Financing Provisions
Amends the Railroad Unemployment Insurance Act to redefine compensation to provide that in computing the compensation paid to any employee, no part of any month's compensation in excess of the monthly compensation base shall be recognized.
Establishes a formula for such monthly compensation base.
Directs the Railroad Retirement Board (the Board) to:
(1) compute the monthly compensation base according to certain guidelines;
(2) compute the maximum daily benefit rate applicable to days of unemployment and sickness; and
(3) publish notice of such computation in the Federal Register. Revises the guidelines for employers' contributions.
Sets forth a special transition rule for public commuter railroads with respect to each of calendar years 1988 and 1989 to provide that such a carrier's contribution shall be equal to the amount of benefits attributable to such carrier (thus allowing such carriers to cover their unemployment and sickness costs in the Railroad Unemployment Compensation Program on a "reimbursable basis" for such years).
Requires the Board to maintain an individual employer record for each employer, and the records necessary to determine pooled charges and pooled credits, as well as unallocated balances for the system.
Provides for the combining of joint individual employer records upon the employers' request in the event of a merger, consolidation, unification, or reorganization.
Establishes a 12 percent employer contribution limit (or 12.5 percent when a 3.5 surtax is in effect).
Revises the guidelines for employee representatives' contributions to require that such a representative pay a contribution relating to so much of the compensation paid for representation services as is not in excess of a specified monthly compensation base.
Extends certain remedies to an employer or employee representative who contests the contribution rate made applicable to him or her by the Board. Establishes deadlines by which the Board shall proclaim certain account balances, pooled ratios, and surcharge rates.
Requires the Board to publish notice of such proclamations in the Federal Register. Increases from 0.5 to 0.65 the percentage of employer and employee contributions which must be credited to the railroad unemployment insurance administration fund.
Requires the Board to:
(1) notify the base year employer when an employee files a claim for benefits;
(2) afford such employer opportunity to respond before making an initial determination on such claim; and
(3) notify such employer when the Board initially makes a determination to make benefit payments under a claim.
Prescribes guidelines for administrative and judicial review of Board determinations to make payments under a claim.
Requires the Board to report annually to the Congress regarding the financial status of the railroad unemployment insurance system.
Amends the Internal Revenue Code regarding railroad unemployment repayment tax to impose:
(1) an excise tax upon every rail employer equal to four percent of total rail wages paid per month; and
(2) an income tax upon rail employee representatives equal to four percent of rail wages paid to them each month.
Terminates such tax if loans to the railroad unemployment fund are repaid.
Provides for the continuation of certain surtax rates through 1989.
Makes such taxes applicable to remuneration paid after December 31, 1988.
Directs the Comptroller General to report to the Congress the results of a study concerning the frequency of fraud and payment errors in the railroad unemployment compensation program.