83_FR_64152 83 FR 63914 - 2019 Railroad Experience Rating Proclamations, Monthly Compensation Base and Other Determinations

83 FR 63914 - 2019 Railroad Experience Rating Proclamations, Monthly Compensation Base and Other Determinations

RAILROAD RETIREMENT BOARD

Federal Register Volume 83, Issue 238 (December 12, 2018)

Page Range63914-63915
FR Document2018-26927

As required by the Railroad Unemployment Insurance Act (Act), the Railroad Retirement Board (RRB) hereby publishes its notice for calendar year 2019 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 83 Issue 238 (Wednesday, December 12, 2018) 
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63914-63915]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26927]


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RAILROAD RETIREMENT BOARD


2019 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 2019 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, 2018. The balance in 
notice (2) is based on data as of September 30, 2018. 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 2019. The determinations made in notices (8) 
through (11) are effective January 1, 2019. The determination made in 
notice (12) is effective for registration periods beginning after June 
30, 2019.

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

FOR FURTHER INFORMATION CONTACT: Michael J. Rizzo, Bureau of the 
Actuary and Research, Railroad Retirement Board, 844 N 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, 2018, the computation of the calendar year 2019 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, 2019, 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, 2019.
    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, 2018, is $118,064,725.00;
    2. The September 30, 2018, balance of any new loans to the RUI 
Account, including accrued interest, is zero;
    3. The system compensation base is $4,148,935,149.55 as of June 30, 
2018;
    4. The cumulative system unallocated charge balance is 
($433,831,623.64) as of June 30, 2018;
    5. The pooled credit ratio for calendar year 2019 is zero;
    6. The pooled charged ratio for calendar year 2019 is zero;
    7. The surcharge rate for calendar year 2019 is 1.5 percent;
    8. The monthly compensation base under section 1(i) of the Act is 
$1,605 for months in calendar year 2019;
    9. The amount described in sections 1(k) and 3 of the Act as ``2.5 
times the monthly compensation base'' is $4,012.50 for base year 
(calendar year) 2019;
    10. The amount described in section 4(a-2)(i)(A) of the Act as 
``2.5 times the monthly compensation base'' is $4,012.50 with respect 
to disqualifications ending in calendar year 2019;
    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 
$2,073 for months in calendar year 2019;
    12. The maximum daily benefit rate under section 2(a)(3) of the Act 
is $78 with respect to days of unemployment and days of sickness in 
registration periods beginning after June 30, 2019.

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, 2018 system compensation base of 
$4,148,935,149.55 to the June 30, 1991 system compensation base of 
$2,763,287,237.04 is 1.50144911. Multiplying 1.50144911 by $100 million 
yields $150,144,911.00. Multiplying $50 million by 1.50144911 produces 
$75,072,455.50. The Account balance on June 30, 2018, was 
$118,064,725.00. Accordingly, the surcharge rate for calendar year 2019 
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 2019 shall be 
equal to the greater of (a) $600 or (b) $600 [1 + {(A

[[Page 63915]]

- 37,800)/56,700{time} ], where A equals the amount of the applicable 
base with respect to tier 1 taxes for 2019 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 2019 tier 1 tax base of $132,900 for A 
above produces the amount of $1,606.35, which must then be rounded to 
$1,605. Accordingly, the monthly compensation base is determined to be 
$1,605 for months in calendar year 2019.

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 2019 monthly compensation base 
of $1,605 produces $4,012.50. Accordingly, the amount determined under 
sections 1(k), 3 and 4(a-2)(i)(A) is $4,012.50 for calendar year 2019.
    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 2019 monthly compensation base is $1,605. The 
ratio of $1,605 to $600 is 2.67500000. Multiplying 2.67500000 by $775 
produces $2,073. Accordingly, the amount determined under section 2(c) 
is $2,073 for months in calendar year 2019.

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, 2019, 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 2018 monthly compensation base is $1,560. 
Multiplying $1,560 by 0.05 yields $78.00. Accordingly, the maximum 
daily benefit rate for days of unemployment and days of sickness 
beginning in registration periods after June 30, 2019, is determined to 
be $78.

    By Authority of the Board.
Sylvia Zaragoza,
Acting Secretary to the Board.
[FR Doc. 2018-26927 Filed 12-11-18; 8:45 am]
 BILLING CODE 7905-01-P

63914 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices controls including access controls, through (11) are effective January 1, monthly compensation base’’ is terminal and transaction logging, and 2019. The determination made in notice $4,012.50 for base year (calendar year) file management software. Online data (12) is effective for registration periods 2019; transmissions are protected by beginning after June 30, 2019. 10. The amount described in section encryption. ADDRESSES: Secretary to the Board, 4(a–2)(i)(A) of the Act as ‘‘2.5 times the Railroad Retirement Board, 844 N Rush monthly compensation base’’ is RECORD ACCESS PROCEDURES: $4,012.50 with respect to Street, Chicago, Illinois 60611–1275. Requests for access must be made in disqualifications ending in calendar FOR FURTHER INFORMATION CONTACT: accordance with the Notification year 2019; Procedure above and USPS Privacy Act Michael J. Rizzo, Bureau of the Actuary 11. The amount described in section regulations regarding access to records and Research, Railroad Retirement 2(c) of the Act as ‘‘an amount that bears and verification of identity under 39 Board, 844 N Rush Street, Chicago, the same ratio to $775 as the monthly CFR 266.6. Illinois 60611–1275, telephone (312) compensation base for that year as 751–4771. computed under section 1(i) of this Act CONTESTING RECORD PROCEDURES: SUPPLEMENTARY INFORMATION: The RRB bears to $600’’ is $2,073 for months in See Notification Procedure below and is required by section 8(c)(1) of the calendar year 2019; Record Access Procedures above. Railroad Unemployment Insurance Act 12. The maximum daily benefit rate (Act) (45 U.S.C. 358(c)(1)) as amended under section 2(a)(3) of the Act is $78 NOTIFICATION PROCEDURE: by Public Law 100–647, to proclaim by with respect to days of unemployment Customers wanting to know if October 15 of each year certain system- and days of sickness in registration information about them is maintained in wide factors used in calculating periods beginning after June 30, 2019. this system of records must address experience-based employer contribution inquiries to the system manager in rates for the following year. The RRB is Surcharge Rate writing. Inquiries should include name, further required by section 8(c)(2) of the A surcharge is added in the address, and other identifying Act (45 U.S.C. 358(c)(2)) to publish the calculation of each employer’s information. amounts so determined and proclaimed. contribution rate, subject to the EXEMPTIONS PROMULGATED FOR THE SYSTEM: The RRB is required by section 12(r)(3) applicable maximum rate, for a calendar of the Act (45 U.S.C. 362(r)(3)) to year whenever the balance to the credit None. of the RUI Account on the preceding publish by December 11, 2018, the HISTORY: computation of the calendar year 2019 June 30 is less than the greater of $100 June 27, 2012, 77 FR 38342; April 29, monthly compensation base (section 1(i) million or the amount that bears the 2005, 70 FR 22516. of the Act) and amounts described in same ratio to $100 million as the system sections 1(k), 2(c), 3 and 4(a–2)(i)(A) of compensation base for that June 30 Ruth Stevenson, the Act which are related to changes in bears to the system compensation base Attorney, Federal Compliance. the monthly compensation base. Also, as of June 30, 1991. If the RUI Account [FR Doc. 2018–26868 Filed 12–11–18; 8:45 am] the RRB is required to publish, by June balance is less than $100 million (as BILLING CODE 7710–12–P 11, 2019, the maximum daily benefit indexed), but at least $50 million (as 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 RAILROAD RETIREMENT BOARD sickness in registration periods less than $50 million (as indexed), but beginning after June 30, 2019. greater than zero, the surcharge will be 2019 Railroad Experience Rating Pursuant to section 8(c)(2) and section 2.5 percent. The maximum surcharge of Proclamations, Monthly Compensation 12(r)(3) of the Railroad Unemployment 3.5 percent applies if the RUI Account Base and Other Determinations Insurance Act (Act) (45 U.S.C. 358(c)(2) balance is less than zero. and 45 U.S.C. 362(r)(3), respectively), The ratio of the June 30, 2018 system AGENCY: Railroad Retirement Board. the Board gives notice of the following: compensation base of $4,148,935,149.55 ACTION: Notice. 1. The balance to the credit of the to the June 30, 1991 system Railroad Unemployment Insurance compensation base of $2,763,287,237.04 SUMMARY: As required by the Railroad (RUI) Account, as of June 30, 2018, is is 1.50144911. Multiplying 1.50144911 Unemployment Insurance Act (Act), the $118,064,725.00; by $100 million yields $150,144,911.00. Railroad Retirement Board (RRB) hereby 2. The September 30, 2018, balance of Multiplying $50 million by 1.50144911 publishes its notice for calendar year any new loans to the RUI Account, produces $75,072,455.50. The Account 2019 of account balances, factors used including accrued interest, is zero; balance on June 30, 2018, was in calculating experience-based 3. The system compensation base is $118,064,725.00. Accordingly, the employer contribution rates, $4,148,935,149.55 as of June 30, 2018; surcharge rate for calendar year 2019 is computation of amounts related to the 4. The cumulative system unallocated 1.5 percent. monthly compensation base, and the charge balance is ($433,831,623.64) as of maximum daily benefit rate for days of Monthly Compensation Base June 30, 2018; unemployment or sickness. 5. The pooled credit ratio for calendar For years after 1988, section 1(i) of the DATES: The balance in notice (1) and the year 2019 is zero; Act contains a formula for determining determinations made in notices (3) 6. The pooled charged ratio for the monthly compensation base. Under through (7) are based on data as of June calendar year 2019 is zero; the prescribed formula, the monthly amozie on DSK3GDR082PROD with NOTICES1 30, 2018. The balance in notice (2) is 7. The surcharge rate for calendar year compensation base increases by based on data as of September 30, 2018. 2019 is 1.5 percent; approximately two-thirds of the The determinations made in notices (5) 8. The monthly compensation base cumulative growth in average national through (7) apply to the calculation, under section 1(i) of the Act is $1,605 wages since 1984. The monthly under section 8(a)(1)(C) of the Act, of for months in calendar year 2019; compensation base for months in employer contribution rates for 2019. 9. The amount described in sections calendar year 2019 shall be equal to the The determinations made in notices (8) 1(k) and 3 of the Act as ‘‘2.5 times the greater of (a) $600 or (b) $600 [1 + {(A VerDate Sep<11>2014 18:39 Dec 11, 2018 Jkt 247001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\12DEN1.SGM 12DEN1

Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices 63915 ¥ 37,800)/56,700}], where A equals the amount determined under section 2(c) is thereunder,2 a proposed rule change to amount of the applicable base with $2,073 for months in calendar year list and trade shares of the respect to tier 1 taxes for 2019 under 2019. BrandywineGLOBAL—Global Total section 3231(e)(2) of the Internal Return ETF, a series of Legg Mason ETF Maximum Daily Benefit Rate Revenue Code of 1986. Section 1(i) Investment Trust, under Nasdaq Rule further provides that if the amount so Section 2(a)(3) contains a formula for 5735 (Managed Fund Shares). The determined is not a multiple of $5, it determining the maximum daily benefit proposed rule change was published for shall be rounded to the nearest multiple rate for registration periods beginning comment in the Federal Register on of $5. after June 30, 1989, and after each June November 5, 2018.3 The Commission Using the calendar year 2019 tier 1 tax 30 thereafter. Legislation enacted on has received no comment letters on the base of $132,900 for A above produces October 9, 1996, revised the formula for the amount of $1,606.35, which must proposed rule change. indexing maximum daily benefit rates. then be rounded to $1,605. Accordingly, Under the prescribed formula, the Section 19(b)(2) of the Act 4 provides the monthly compensation base is maximum daily benefit rate increases by that within 45 days of the publication of determined to be $1,605 for months in approximately two-thirds of the notice of the filing of a proposed rule calendar year 2019. cumulative growth in average national change, or within such longer period up Amounts Related to Changes in wages since 1984. The maximum daily to 90 days as the Commission may Monthly Compensation Base benefit rate for registration periods designate if it finds such longer period beginning after June 30, 2019, shall be to be appropriate and publishes its For years after 1988, sections 1(k), 3, equal to 5 percent of the monthly reasons for so finding, or as to which the 4(a–2)(i)(A) and 2(c) of the Act contain compensation base for the base year self-regulatory organization consents, formulas for determining amounts immediately preceding the beginning of the Commission shall either approve the related to the monthly compensation the benefit year. Section 2(a)(3) further base. proposed rule change, disapprove the provides that if the amount so computed proposed rule change, or institute Under section 1(k), remuneration is not a multiple of $1, it shall be earned from employment covered under proceedings to determine whether the rounded down to the nearest multiple of proposed rule change should be the Act cannot be considered subsidiary $1. disapproved. The 45th day after remuneration if the employee’s base The calendar year 2018 monthly publication of the notice for this year compensation is less than 2.5 times compensation base is $1,560. the monthly compensation base for proposed rule change is December 20, Multiplying $1,560 by 0.05 yields months in such base year. Under section 2018. The Commission is extending this $78.00. Accordingly, the maximum 3, an employee shall be a ‘‘qualified 45-day time period. daily benefit rate for days of employee’’ if his/her base year The Commission finds it appropriate unemployment and days of sickness compensation is not less than 2.5 times to designate a longer period within beginning in registration periods after the monthly compensation base for which to take action on the proposed June 30, 2019, is determined to be $78. months in such base year. Under section rule change so that it has sufficient time 4(a–2)(i)(A), an employee who leaves By Authority of the Board. Sylvia Zaragoza, to consider the proposed rule change. work voluntarily without good cause is Accordingly, the Commission, pursuant disqualified from receiving Acting Secretary to the Board. unemployment benefits until he has to Section 19(b)(2) of the Act,5 [FR Doc. 2018–26927 Filed 12–11–18; 8:45 am] been paid compensation of not less than designates February 3, 2019 as the date BILLING CODE 7905–01–P 2.5 times the monthly compensation by which the Commission shall either base for months in the calendar year in approve or disapprove, or institute which the disqualification ends. proceedings to determine whether to Multiplying 2.5 by the calendar year SECURITIES AND EXCHANGE disapprove, the proposed rule change 2019 monthly compensation base of COMMISSION (File No. SR–NASDAQ–2018–080). $1,605 produces $4,012.50. [Release No. 34–84747; File No. SR– For the Commission, by the Division of Accordingly, the amount determined NASDAQ–2018–080] Trading and Markets, pursuant to delegated under sections 1(k), 3 and 4(a–2)(i)(A) is authority.6 $4,012.50 for calendar year 2019. Self-Regulatory Organizations; The Eduardo A. Aleman, Under section 2(c), the maximum Nasdaq Stock Market LLC; Notice of amount of normal benefits paid for days Assistant Secretary. Designation of a Longer Period for of unemployment within a benefit year [FR Doc. 2018–26909 Filed 12–11–18; 8:45 am] Commission Action on a Proposed and the maximum amount of normal Rule Change To List and Trade Shares BILLING CODE 8011–01–P benefits paid for days of sickness within of the BrandywineGLOBAL—Global a benefit year shall not exceed an Total Return ETF, a Series of Legg employee’s compensation in the base Mason ETF Investment Trust, Under year. In determining an employee’s base Nasdaq Rule 5735 year compensation, any money remuneration in a month not in excess December 7, 2018. of an amount that bears the same ratio On October 17, 2018, The Nasdaq to $775 as the monthly compensation Stock Market LLC (‘‘Nasdaq’’ or amozie on DSK3GDR082PROD with NOTICES1 base for that year bears to $600 shall be ‘‘Exchange’’) filed with the Securities taken into account. and Exchange Commission 2 17 CFR 240.19b–4. The calendar year 2019 monthly (‘‘Commission’’), pursuant to Section 3 See Securities Exchange Act Release No. 84505 compensation base is $1,605. The ratio 19(b)(1) of the Securities Exchange Act (October 30, 2018), 83 FR 55416. of $1,605 to $600 is 2.67500000. of 1934 (‘‘Act’’) 1 and Rule 19b–4 4 15 U.S.C. 78s(b)(2). Multiplying 2.67500000 by $775 5 Id. produces $2,073. Accordingly, the 1 15 U.S.C. 78s(b)(1). 6 17 CFR 200.30–3(a)(31). VerDate Sep<11>2014 18:39 Dec 11, 2018 Jkt 247001 PO 00000 Frm 00091 Fmt 4703 Sfmt 9990 E:\FR\FM\12DEN1.SGM 12DEN1


Document Created: 2018-12-12 01:39:53
Document Modified: 2018-12-12 01:39:53
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, 2018. The balance in notice (2) is based on data as of September 30, 2018. 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 2019. The determinations made in notices (8) through (11) are effective January 1, 2019. The determination made in notice (12) is effective for registration periods beginning after June 30, 2019.
ContactMichael J. Rizzo, Bureau of the Actuary and Research, Railroad Retirement Board, 844 N Rush Street, Chicago, Illinois 60611-1275, telephone (312) 751-4771.
FR Citation83 FR 63914 
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