82_FR_58023 82 FR 57789 - 2018 Railroad Experience Rating Proclamations, Monthly Compensation Base and Other Determinations

82 FR 57789 - 2018 Railroad Experience Rating Proclamations, Monthly Compensation Base and Other Determinations

RAILROAD RETIREMENT BOARD

Federal Register Volume 82, Issue 234 (December 7, 2017)

Page Range57789-57790
FR Document2017-26430

As required by the Railroad Unemployment Insurance Act (Act), the Railroad Retirement Board (RRB) hereby publishes its notice for calendar year 2018 of account balances, factors used in calculating experience-based employer contribution rates, computation of amounts related to the monthly compensation base, and the maximum daily benefit rate for days of unemployment or sickness.

Federal Register, Volume 82 Issue 234 (Thursday, December 7, 2017) 
[Federal Register Volume 82, Number 234 (Thursday, December 7, 2017)]
[Notices]
[Pages 57789-57790]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26430]


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RAILROAD RETIREMENT BOARD


2018 Railroad Experience Rating Proclamations, Monthly 
Compensation Base and Other Determinations

AGENCY: Railroad Retirement Board.

ACTION: Notice.

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SUMMARY: As required by the Railroad Unemployment Insurance Act (Act), 
the Railroad Retirement Board (RRB) hereby publishes its notice for 
calendar year 2018 of account balances, factors used in calculating 
experience-based employer contribution rates, computation of amounts 
related to the monthly compensation base, and the maximum daily benefit 
rate for days of unemployment or sickness.

DATES: The balance in notice (1) and the determinations made in notices 
(3) through (7) are based on data as of June 30, 2017. The balance in 
notice (2) is based on data as of September 30, 2017. The 
determinations made in notices (5) through (7) apply to the 
calculation, under section 8(a)(1)(C) of the Act, of employer 
contribution rates for 2018. The determinations made in notices (8) 
through (11) are effective January 1, 2018. The determination made in 
notice (12) is effective for registration periods beginning after June 
30, 2018.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush 
Street, Chicago, Illinois 60611-1275.

FOR FURTHER INFORMATION CONTACT: Michael J. Rizzo, Bureau of the 
Actuary and Research, Railroad Retirement Board, 844 Rush Street, 
Chicago, Illinois 60611-1275, telephone (312) 751-4771.

SUPPLEMENTARY INFORMATION: The RRB is required by section 8(c)(1) of 
the Railroad Unemployment Insurance Act (Act) (45 U.S.C. 358(c)(1)) as 
amended by Public Law 100-647, to proclaim by October 15 of each year 
certain system-wide factors used in calculating experience-based 
employer contribution rates for the following year. The RRB is further 
required by section 8(c)(2) of the Act (45 U.S.C. 358(c)(2)) to publish 
the amounts so determined and proclaimed. The RRB is required by 
section 12(r)(3) of the Act (45 U.S.C. 362(r)(3)) to publish by 
December 11, 2017, the computation of the calendar year 2018 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, 2018, 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, 2018. Pursuant to section 
8(c)(2) and section 12(r)(3) of the Railroad Unemployment Insurance Act 
(Act) (45 U.S.C. 358(c)(2) and 45 U.S.C. 362(r)(3), respectively), the 
Board gives notice of the following:
    1. The balance to the credit of the Railroad Unemployment Insurance 
(RUI) Account, as of June 30, 2017, is $97,732,177.41;
    2. The September 30, 2017, balance of any new loans to the RUI 
Account, including accrued interest, is zero;
    3. The system compensation base is $4,042,278,849.27 as of June 30, 
2017;
    4. The cumulative system unallocated charge balance is 
($421,642,171.99) as of June 30, 2017;
    5. The pooled credit ratio for calendar year 2018 is zero;
    6. The pooled charged ratio for calendar year 2018 is zero;
    7. The surcharge rate for calendar year 2018 is 1.5 percent;
    8. The monthly compensation base under section 1(i) of the Act is 
$1,560 for months in calendar year 2018;
    9. The amount described in sections 1(k) and 3 of the Act as ``2.5 
times the monthly compensation base'' is $3,900.00 for base year 
(calendar year) 2018;
    10. The amount described in section 4(a-2)(i)(A) of the Act as 
``2.5 times the monthly compensation base'' is $3,900.00 with respect 
to disqualifications ending in calendar year 2018;
    11. 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 
$2,015 for months in calendar year 2018;
    12. The maximum daily benefit rate under section 2(a)(3) of the Act 
is $77 with respect to days of unemployment and days of sickness in 
registration periods beginning after June 30, 2018.

Surcharge Rate

    A surcharge is added in the calculation of each employer's 
contribution rate, subject to the applicable maximum rate, for a 
calendar year whenever the balance to the credit of the RUI Account on 
the preceding June 30 is less than the greater of $100 million or the 
amount that bears the same ratio to $100 million as the system 
compensation base for that June 30 bears to the system compensation 
base as of June 30, 1991. If the RUI Account balance is less than $100 
million (as indexed), but at least $50 million (as indexed), the 
surcharge will be 1.5 percent. If the RUI Account balance is less than 
$50 million (as indexed), but greater than zero, the surcharge will be 
2.5 percent. The maximum surcharge of 3.5 percent applies if the RUI 
Account balance is less than zero.
    The ratio of the June 30, 2017 system compensation base of 
$4,042,278,849.27 to the June 30, 1991 system compensation base of 
$2,763,287,237.04 is 1.46285149. Multiplying 1.46285149 by $100 million 
yields $146,285,149.00. Multiplying $50 million by 1.46285149 produces 
$73,142,574.50. The Account balance on June 30, 2017, was 
$97,732,177.41. Accordingly, the surcharge rate for calendar year 2018 
is 1.5 percent.

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 cumulative growth in average national wages since 1984. 
The monthly compensation base for months in calendar year 2018 shall be 
equal to the greater of (a) $600 or (b) $600 [1 + {(A-37,800)/
56,700{time} ], where A equals

[[Page 57790]]

the amount of the applicable base with respect to tier 1 taxes for 2018 
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.
    Using the calendar year 2018 tier 1 tax base of $128,400 for A 
above produces the amount of $1,558.73, which must then be rounded to 
$1,560. Accordingly, the monthly compensation base is determined to be 
$1,560 for months in calendar year 2018.

Amounts Related to Changes in Monthly Compensation Base

    For years after 1988, sections 1(k), 3, 4(a-2)(i)(A) and 2(c) 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. 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. Under section 4(a-2)(i)(A), an employee 
who leaves work voluntarily without good cause is disqualified from 
receiving unemployment 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 by the calendar year 2018 monthly compensation base 
of $1,560 produces $3,900.00. Accordingly, the amount determined under 
sections 1(k), 3 and 4(a-2)(i)(A) is $3,900.00 for calendar year 2018.
    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 2018 monthly compensation base is 
$1,560. The ratio of $1,560 to $600 is 2.60000000. Multiplying 
2.60000000 by $775 produces $2,015. Accordingly, the amount determined 
under section 2(c) is $2,015 for months in calendar year 2018.

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. Legislation enacted on October 
9, 1996, revised the formula for indexing maximum daily benefit rates. 
Under the prescribed formula, the maximum daily benefit rate increases 
by approximately two-thirds of the cumulative growth in average 
national wages since 1984. The maximum daily benefit rate for 
registration periods beginning after June 30, 2018, shall be equal to 5 
percent of the monthly compensation base for the base year immediately 
preceding the beginning of the benefit year. Section 2(a)(3) further 
provides that if the amount so computed is not a multiple of $1, it 
shall be rounded down to the nearest multiple of $1.
    The calendar year 2017 monthly compensation base is $1,545. 
Multiplying $1,545 by 0.05 yields $77.25. Accordingly, the maximum 
daily benefit rate for days of unemployment and days of sickness 
beginning in registration periods after June 30, 2018, is determined to 
be $77.

    By Authority of the Board.
Martha P. Rico,
Secretary to the Board.
[FR Doc. 2017-26430 Filed 12-6-17; 8:45 am]
 BILLING CODE 7905-01-P

Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices 57789 POSTAL SERVICE through (11) are effective January 1, $3,900.00 for base year (calendar year) 2018. The determination made in notice 2018; Product Change—Priority Mail (12) is effective for registration periods 10. The amount described in section Express, Priority Mail, & First-Class beginning after June 30, 2018. 4(a–2)(i)(A) of the Act as ‘‘2.5 times the Package Service Negotiated Service ADDRESSES: Secretary to the Board, monthly compensation base’’ is Agreement Railroad Retirement Board, 844 Rush $3,900.00 with respect to Street, Chicago, Illinois 60611–1275. disqualifications ending in calendar AGENCY: Postal ServiceTM. year 2018; ACTION: Notice. FOR FURTHER INFORMATION CONTACT: 11. The amount described in section Michael J. Rizzo, Bureau of the Actuary 2(c) of the Act as ‘‘an amount that bears SUMMARY: The Postal Service gives and Research, Railroad Retirement the same ratio to $775 as the monthly notice of filing a request with the Postal Board, 844 Rush Street, Chicago, Illinois compensation base for that year as Regulatory Commission to add a 60611–1275, telephone (312) 751–4771. computed under section 1(i) of this Act domestic shipping services contract to SUPPLEMENTARY INFORMATION: The RRB bears to $600’’ is $2,015 for months in the list of Negotiated Service is required by section 8(c)(1) of the calendar year 2018; Agreements in the Mail Classification Railroad Unemployment Insurance Act 12. The maximum daily benefit rate Schedule’s Competitive Products List. (Act) (45 U.S.C. 358(c)(1)) as amended under section 2(a)(3) of the Act is $77 DATES: Date of notice required under 39 by Public Law 100–647, to proclaim by with respect to days of unemployment U.S.C. 3642(d)(1): December 7, 2017. October 15 of each year certain system- and days of sickness in registration FOR FURTHER INFORMATION CONTACT: wide factors used in calculating periods beginning after June 30, 2018. Elizabeth A. Reed, 202–268–3179. experience-based employer contribution rates for the following year. The RRB is Surcharge Rate SUPPLEMENTARY INFORMATION: The United States Postal Service® hereby further required by section 8(c)(2) of the A surcharge is added in the gives notice that, pursuant to 39 U.S.C. Act (45 U.S.C. 358(c)(2)) to publish the calculation of each employer’s 3642 and 3632(b)(3), on December 1, amounts so determined and proclaimed. contribution rate, subject to the 2017, it filed with the Postal Regulatory The RRB is required by section 12(r)(3) applicable maximum rate, for a calendar Commission a USPS Request to Add of the Act (45 U.S.C. 362(r)(3)) to year whenever the balance to the credit Priority Mail Express, Priority Mail, & publish by December 11, 2017, the of the RUI Account on the preceding First-Class Package Service Contract 30 computation of the calendar year 2018 June 30 is less than the greater of $100 to Competitive Product List. Documents monthly compensation base (section 1(i) million or the amount that bears the are available at www.prc.gov, Docket of the Act) and amounts described in same ratio to $100 million as the system Nos. MC2018–40, CP2018–70. sections 1(k), 2(c), 3 and 4(a–2)(i)(A) of compensation base for that June 30 the Act which are related to changes in bears to the system compensation base Elizabeth A. Reed, the monthly compensation base. Also, as of June 30, 1991. If the RUI Account Attorney, Corporate and Postal Business Law. the RRB is required to publish, by June balance is less than $100 million (as [FR Doc. 2017–26347 Filed 12–6–17; 8:45 am] 11, 2018, the maximum daily benefit indexed), but at least $50 million (as BILLING CODE 7710–12–P rate under section 2(a)(3) of the Act for indexed), the surcharge will be 1.5 days of unemployment and days of percent. If the RUI Account balance is sickness in registration periods less than $50 million (as indexed), but RAILROAD RETIREMENT BOARD beginning after June 30, 2018. Pursuant greater than zero, the surcharge will be to section 8(c)(2) and section 12(r)(3) of 2.5 percent. The maximum surcharge of 2018 Railroad Experience Rating the Railroad Unemployment Insurance 3.5 percent applies if the RUI Account Proclamations, Monthly Compensation Act (Act) (45 U.S.C. 358(c)(2) and 45 balance is less than zero. Base and Other Determinations U.S.C. 362(r)(3), respectively), the Board The ratio of the June 30, 2017 system gives notice of the following: compensation base of $4,042,278,849.27 AGENCY: Railroad Retirement Board. 1. The balance to the credit of the to the June 30, 1991 system ACTION: Notice. Railroad Unemployment Insurance compensation base of $2,763,287,237.04 (RUI) Account, as of June 30, 2017, is is 1.46285149. Multiplying 1.46285149 SUMMARY: As required by the Railroad $97,732,177.41; by $100 million yields $146,285,149.00. Unemployment Insurance Act (Act), the 2. The September 30, 2017, balance of Multiplying $50 million by 1.46285149 Railroad Retirement Board (RRB) hereby any new loans to the RUI Account, produces $73,142,574.50. The Account publishes its notice for calendar year including accrued interest, is zero; balance on June 30, 2017, was 2018 of account balances, factors used 3. The system compensation base is $97,732,177.41. Accordingly, the in calculating experience-based $4,042,278,849.27 as of June 30, 2017; surcharge rate for calendar year 2018 is employer contribution rates, 4. The cumulative system unallocated 1.5 percent. computation of amounts related to the charge balance is ($421,642,171.99) as of monthly compensation base, and the Monthly Compensation Base June 30, 2017; maximum daily benefit rate for days of 5. The pooled credit ratio for calendar For years after 1988, section 1(i) of the unemployment or sickness. year 2018 is zero; Act contains a formula for determining DATES: The balance in notice (1) and the 6. The pooled charged ratio for the monthly compensation base. Under determinations made in notices (3) calendar year 2018 is zero; the prescribed formula, the monthly through (7) are based on data as of June compensation base increases by sradovich on DSK3GMQ082PROD with NOTICES 7. The surcharge rate for calendar year 30, 2017. The balance in notice (2) is 2018 is 1.5 percent; approximately two-thirds of the based on data as of September 30, 2017. 8. The monthly compensation base cumulative growth in average national The determinations made in notices (5) under section 1(i) of the Act is $1,560 wages since 1984. The monthly through (7) apply to the calculation, for months in calendar year 2018; compensation base for months in under section 8(a)(1)(C) of the Act, of 9. The amount described in sections calendar year 2018 shall be equal to the employer contribution rates for 2018. 1(k) and 3 of the Act as ‘‘2.5 times the greater of (a) $600 or (b) $600 [1 + The determinations made in notices (8) monthly compensation base’’ is {(A¥37,800)/56,700}], where A equals VerDate Sep<11>2014 18:50 Dec 06, 2017 Jkt 244001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1

57790 Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices the amount of the applicable base with $2,015 for months in calendar year October 18, 2017.3 The Commission did respect to tier 1 taxes for 2018 under 2018. not receive any comment letters on the section 3231(e)(2) of the Internal proposed rule change. This order Maximum Daily Benefit Rate Revenue Code of 1986. Section 1(i) approves the proposed rule change. further provides that if the amount so Section 2(a)(3) contains a formula for determining the maximum daily benefit II. Description of the Proposed Rule determined is not a multiple of $5, it rate for registration periods beginning Change shall be rounded to the nearest multiple of $5. after June 30, 1989, and after each June The Exchange proposes to create an Using the calendar year 2018 tier 1 tax 30 thereafter. Legislation enacted on electronic-only order type. Currently, base of $128,400 for A above produces October 9, 1996, revised the formula for orders that Trading Permit Holders the amount of $1,558.73, which must indexing maximum daily benefit rates. (‘‘TPHs’’) submit to the Exchange will then be rounded to $1,560. Accordingly, Under the prescribed formula, the execute electronically and/or be the monthly compensation base is maximum daily benefit rate increases by handled manually on the Exchange determined to be $1,560 for months in approximately two-thirds of the floor.4 Under certain conditions calendar year 2018. cumulative growth in average national specified in the Exchange’s rules, wages since 1984. The maximum daily certain orders and remaining portions of Amounts Related to Changes in benefit rate for registration periods orders that do not execute electronically Monthly Compensation Base beginning after June 30, 2018, shall be are routed to a specified Public For years after 1988, sections 1(k), 3, equal to 5 percent of the monthly Automated Routing (‘‘PAR’’) 4(a–2)(i)(A) and 2(c) of the Act contain compensation base for the base year workstation or an Order Management formulas for determining amounts immediately preceding the beginning of Terminal (‘‘OMT’’) on the floor of the related to the monthly compensation the benefit year. Section 2(a)(3) further Exchange for manual handling.5 base. provides that if the amount so computed The Exchange proposes to introduce a Under section 1(k), remuneration is not a multiple of $1, it shall be new electronic-only order type to allow earned from employment covered under rounded down to the nearest multiple of TPHs to submit orders that will not be the Act cannot be considered subsidiary $1. subject to any manual handling. remuneration if the employee’s base The calendar year 2017 monthly Specifically, electronic-only orders will year compensation is less than 2.5 times compensation base is $1,545. only: (i) Auto-execute, (ii) route to an the monthly compensation base for Multiplying $1,545 by 0.05 yields electronic auction, or (iii) route to the months in such base year. Under section $77.25. Accordingly, the maximum electronic book, and in all cases will 3, an employee shall be a ‘‘qualified daily benefit rate for days of cancel back to the TPH that entered the employee’’ if his/her base year unemployment and days of sickness order if Exchange rules would otherwise compensation is not less than 2.5 times beginning in registration periods after require the order to be routed to the the monthly compensation base for June 30, 2018, is determined to be $77. Exchange floor for manual handling.6 months in such base year. Under section By Authority of the Board. III. Discussion and Commission 4(a–2)(i)(A), an employee who leaves Martha P. Rico, Findings work voluntarily without good cause is Secretary to the Board. disqualified from receiving [FR Doc. 2017–26430 Filed 12–6–17; 8:45 am] After careful review, the Commission unemployment benefits until he has finds that the proposed rule change is BILLING CODE 7905–01–P been paid compensation of not less than consistent with the requirements of the 2.5 times the monthly compensation Act 7 and the rules and regulations base for months in the calendar year in thereunder applicable to a national which the disqualification ends. SECURITIES AND EXCHANGE securities exchange.8 In particular, the Multiplying 2.5 by the calendar year COMMISSION Commission finds that the proposed 2018 monthly compensation base of [Release No. 34- 82196; File No. SR–CBOE– rule change is consistent with Section $1,560 produces $3,900.00. 2017–064] 6(b)(5) of the Act,9 which requires, Accordingly, the amount determined among other things, that the rules of a under sections 1(k), 3 and 4(a–2)(i)(A) is Self-Regulatory Organizations; Cboe national securities exchange be $3,900.00 for calendar year 2018. Exchange, Inc.; Order Approving a designed to remove impediments to and Under section 2(c), the maximum Proposed Rule Change Creating an perfect the mechanism of a free and amount of normal benefits paid for days Electronic-Only Order Type open market and a national market of unemployment within a benefit year December 1, 2017. and the maximum amount of normal 3 See Securities Exchange Act Release No. 81862 benefits paid for days of sickness within I. Introduction (Oct. 12, 2017), 82 FR 48550 (Oct. 18. 2017) (‘‘Notice’’). a benefit year shall not exceed an On September 29, 2017, the Cboe 4 See id. at 48550. employee’s compensation in the base Exchange, Inc. (‘‘Exchange’’ or ‘‘Cboe 5 See id. at 48550 and Cboe Options Rules 6.12(a) year. In determining an employee’s base Options’’) filed with the Securities and and 6.12A. According to Cboe Options Rule 6.12A, year compensation, any money Exchange Commission (‘‘Commission’’), once an order has been routed to a PAR, the PAR remuneration in a month not in excess user may, among other options, submit the order for pursuant to Section 19(b)(1) of the electronic processing, execute the order in open of an amount that bears the same ratio Securities Exchange Act of 1934 outcry, route the order to an OMT designated by the to $775 as the monthly compensation sradovich on DSK3GMQ082PROD with NOTICES (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a TPH, or route the order to an away exchange. See base for that year bears to $600 shall be proposed rule change to create an Notice, supra note 3, at 48550. taken into account. The calendar year electronic-only order type. The 6 Notice, supra note 3, at 48550. 7 15 U.S.C. 78f. 2018 monthly compensation base is proposed rule change was published for 8 In approving this proposed rule change, the $1,560. The ratio of $1,560 to $600 is comment in the Federal Register on Commission has considered the proposed rule’s 2.60000000. Multiplying 2.60000000 by impact on efficiency, competition, and capital $775 produces $2,015. Accordingly, the 1 15 U.S.C. 78s(b)(1). formation. See 15 U.S.C. 78c(f). amount determined under section 2(c) is 2 17 CFR 240.19b–4. 9 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 18:50 Dec 06, 2017 Jkt 244001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1


Document Created: 2017-12-07 00:34:54
Document Modified: 2017-12-07 00:34:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesThe balance in notice (1) and the determinations made in notices (3) through (7) are based on data as of June 30, 2017. The balance in notice (2) is based on data as of September 30, 2017. The determinations made in notices (5) through (7) apply to the calculation, under section 8(a)(1)(C) of the Act, of employer contribution rates for 2018. The determinations made in notices (8) through (11) are effective January 1, 2018. The determination made in notice (12) is effective for registration periods beginning after June 30, 2018.
ContactMichael J. Rizzo, Bureau of the Actuary and Research, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 60611-1275, telephone (312) 751-4771.
FR Citation82 FR 57789 
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