RRB Circular Letter No. UI-C-229

Program
Letter

United States
Railroad Retirement Board

Chicago, IL 60611-2092

Office of Programs
Quality Reporting Service Center

(312) 751-4992
NO.UI-C-229
Released October 1998
Revised November 2005

CONTACT:

Michelle Andrey
Policy and Systems

PHONE:

(312) 751-3383

TO:

Chief Executive Officers
Unemployment and Sickness lnsurance Contact Officials

SUBJECT:

Circular Letter No. UI-C-229: Employer Appeals of RUlA Benefit
Determinations

Introduction

The purpose of ,this circ~~lar
letter is to review how railroad employers may exercise their
rights to protest the award of unemployment and sickness benefits under the Railroad
Unemployment lnsurance Act (RUIA). Under Section 5 of the RUIA, the Railroad
Retirement Board (RRB) provides base-year employers with notice of each claim for
benefits filed by its employees. The ernployer then has 3 business days to submit
information relevant to the claim before the RRB determines whether benefits are
payable to the employee. If the RRB pays the claim, Section 5 provides that the RRB
notify the base-year employer of the determination. Under the RRB1sregulations, the
base-year employer has 60 days from the date of the determination to file a written
protest of the determination.
Although not required by statute, the RRB also sends notice of unemployment benefit
applications and claims to each claimant's most recent employer, if different from the
base-year employer. The most recent err~ployermay submit relevant information about
claims, but is not advised of payment determinations because only base-year
employers have standing to protest such determinations.

Prepayment Claims Notification

The RRB is capable of providing prepayment notice of claims for benefits either through
the Internet, electronic data interchange, or printed Form ID-4K, Prepayment Notice of
Employees' Applications and Claims for Benefits under the RUIA. In the absence
of prior arrangements to receive and respond to claim messages electronically, printed
notices are mailed to an official designated by the railroad. Railroads interested in
initiating electronic data interchange programs should contact Ms. Michelle Andrey at
(312) 751-3383.
In accordance with the Government Paperwork Elimination Act, which requires Federal
agencies to provide its customers the option to submit or transact business with
agencies electronically, when practical as a substitute for paper, the RRB now offers an
lnternet equivalent version of the Form ID-4K1 Prepayment Notice of Employees'
Applications and Claims for Benefits Under the Railroad Unemployment Insurance Act.
Before an lnternet ID-4K can be completed, a railroad must first complete Form BA-12,
System Access Application Form (OMB approved 3220-0008), to obtain access to the
RRB's Employer Reporting System (ERS). After receiving a User ID and password
from the RRB, a designated railroad employee can establish a personal password online. Once the user ID and password have been established, the err~ployeehas access
to the functions of the RRB's ERS designated for hislher use.
Letter notices are mailed to railroad employers on a daily basis, and include information
about applications and claims normally received on the preceding business day.
Employer information relative to an unemployment application or claim or to a sickness
claim is to be provided to the RRB district office serving ,the area in which the employee
resides. The name and telephone number of the appropriate district office are shown
on the notice.
Employer information about an application or claim for benefits should be provided to
the RRB within 3 business days from the date that the RRB sends notice of the
application or claim. Responses should be provided for applications and claims for
which the employer has information which may be relevant to the proper payment of
benefits. If no employer response to notice of a claim is received by the third business
day, the claim is accepted as initial proof of the claimant's eligibility for benefits and
processed for payment.
Paper Work Reduction Act Notice

Section 5(b) of the RUIA requires the RRB to provide notice of claims for benefits to
base-year employers. Employer responses to these notices are voluntary. Failure to
provide information about questionable claims for benefits, however, may affect the
amount that an employer is charged in benefits and the employer's tax contribution rate
under the RUIA.

Under the Paperwork Reduction Act, Federal agencies are required to estimate
reporting burdens associated with their programs. The amount of time required for an
employer to participate in the prepayment claims verification process varies depending
upon the extent to which the employer is able to use automated systems. We estimate
the average responding burden for employers to be as follows:

Electronic data interchange (EDI)
Form Letter ID-4K
ID-4K (Internet)
Form Letter ID-4E
ID-4E (Internet)

Unemployment

Sickness

25.2 hrslyr.
2 rnin.1 response
2 minlresponse
2 minlresponse
2 minlresponse

16.8 hrs.lyr.
2 min.lresponse
2 minlresponse
2 minlresponse
2 minlresponse

These are estimates based on employer experience nationwide. The estimates include
time for reviewing instructions, obtaining the needed data, and reviewing the completed
responses. Federal agencies may not conduct or sponsor, and respondents are not
required to respond to, a collection of information unless it displays a valid OMB
number. If you wish, send comments regarding 'the accuracy of our estimates or any
other aspects of this program, including suggestions for reducing reporting time, to the
Chief of Information Management, Railroad Retirement Board, 844 North Rush Street,
Chicago, Illinois 6061 1-2092
the Office of Managenlent and Budget, Paperwork
Reduction Project (3220-017 I ) , Washington DC 20503.
Notice of Claim Determinations
In addition to requiring the RRB to provide notice of each claim prior to a decision to
pay or deny benefits, the RUlA requires that "when .the Board initially determines to pay
benefits to a claimant..., the Board shall provide notice of such determination to the
claimant's base-year employer or employers." Upon receipt of notice that an
individual's clam for benefits has been allowed, either in whole or in part, the claimant's
base-year employer(s) may request a review of the determination to pay benefits, if the
employer believes the determination is incorrect.
In accordance with the Government Paperwork Elimination Act, which requires Federal
agencies to provide its customers the option to submit or transact business with
agencies electronically, when practical as a substitute for paper, the RRB now offers an
lnternet equivalent version of the Form ID-4E, Notice of RUlA Claim Determination.
Before an lnternet ID-4E can be completed, a railroad must first complete Form BA-12,
System Access Application Form (OMB approved 3220-0008), to obtain access to the
RRB's Employer Reporting System (ERS). After receiving a User ID and password
from the RRB, a designated railroad employee can establish a personal password online. Once the User ID and password have been established, the employee has access
to the functions of the RRB's ERS designated for hislher use.

Absent arrangements for receipt of Internet or electronic notices of claim
determinations, Form ID-4E, Notice of RUlA Claim Determinations, is used to
provide notice of each determination to allow benefits on a claim. The following
information is provided with respect to each determination:
Employee's Social Security Number
Ernployee's Name
Claim Period Beginning Date
Claim Profile A series of 14 numeric codes indicating the days
claimed and allowed, and the days denied in the claim period. The
codes are explained in Attachment A.
Gross Payable The amount of benefits payable with respect to
the claim
(Change) The amount of benefits previously not reported to the
employer. If the notice is the first one with respect to the claim, the
amount will be the same as the "Gross Payable." If the
determination results in a payment on a claim which was previously
denied in whole or in part, or was not paid pending completion of
an investigation, the amount of ,the additional benefits paid as a
result of the determination is shown.
Type Indication as to whether the determination applies to a claim
for sickness benefits (SI) or a claim for unemployment benefits (UI).
Benefit year (BY) Two-digits indicating the benefit year for which
the claim was filed, e.g. "04" indicates the benefit year normally
begirlr~ingJuly 1, 2004 and ending June 30, 2005.
Employee's Payroll Identification Number.
Board Office Indicates the city and state of the RRB district office
responsible for adjudication of the employee's claims. You can
locate the nearest RRB field office by either visiting our Web site at
http:\\www.rrb.gov or by calling our toll-free Help-Line at 1-800-8080772.

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Appeal of RRB Determinations

Upon receipt of notice of the RRB's determination to pay benefits for a claim, the baseyear employer of the claimant may request reconsideration of the determination. The
request for reconsideration must be in writing and should explain the basis for the
request, i.e. why does the employer disagree with the determination.
Any
documentation supporting the request for reconsideration should also be submitted.
The request must be received at an office of the RRB within 60 days of the date of the
Form ID-4E notice. A request for reconsideration should be mailed to the RRB office
identified under the heading "Board Office" on the Form ID-4E.
Upon receipt of a request for reconsideration, the RRB office responsible for
adjudication of the claim will review and issue a decision on the request for

reconsideration. If an RRB district office is the adjudicating office, the decision will be
referred to the appropriate RRB regional office for review prior to issuance. The
employer will be notified in writing of the decision on reconsideration.
If the decision on reconsideration is to sustain the determination to allow benefits on a
claim, the employer may appeal the decision to the RRB's Bureau of Hearings and
Appeals. An appeal must be ,filed on Form HA-1, Appeal Under the Railroad Retirement
Act or the Railroad Unemployment Insurance Act, and should fully explain the reason
for the appeal. In addition, the appeal should reference the date of the decision that is
being appealed and identify the office that issued the decision. The appeal must be
filed with the Bureau of Hearings and Appeals within 60 days from the date of the notice
of the decision on reconsideration. Form HA-1, which is available from any RRB office
upon request, should be mailed to:
Director of Hearings and Appeals
U. S. Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 6061 1-2092
If a base-year employer is not satisfied with a decision on an appeal to the Bureau of
Hearirrgs and Appeals, the employer may appeal to the three-member Board. An
appeal to the Board must be filed on Form HA-1, Appeal Under the RRA or the RUIA,
within 60 days from the date of the notice of the decision of the hearings office.
In accordance with Section 5(c) of the Railroad Unernployment Ins~~rance
Act, benefit
payments to a claimant will continue, despite the filing of a request for reconsideration
or an appeal. Benefits are subject to recovery from the clainiant, however, if the
decision on the request for reconsideration or appeal results in a finding that the
benefits were erroneously awarded.
What Determinations Can Be Appealed?
Any determination made by the RRB that results in payment of either
unemployment or sickness benefits to an employee may be appealed by the
claimant's base-year employer.
Common determinations made by the RRB which an employer may appeal based on
factual issues include the following:
Unemployment Issues
Is remuneration attributable to any days claimed as days of unemployment?
Is the employee available for work on days claimed as days of unemployment?
Was the employee willing, able and ready to accept suitable work on days claimed
as days of unemployment? Was tlie employee unemployed because he or she

failed to follow prescribed procedures for recall to work? Did the err~ployeerefuse to
accept suitable work? Did the employee mark back on an extra board? Did the
employee fail to exercise seniority rights to suitable work?
Did the employee voluntarily leave work without good cause?
Did the employee claim benefits for days that he or she did not work because of
mileage or work restrictions?
Sickness Issues

Is remuneration attributable to any days claimed as days of sickness?
Is the employee able to work, i.e., not sick or injured, on days claimed as days of
sickness?
Remember the following when considering whether to request reconsideration or to
appeal a determination of the RRB:
There is no disqualification in the RUlA for unemployment related to suspension or
discharge. An employee who is unemployed because of a suspension or discharge
can receive unemployment benefits if he or she is otherwise eligible for benefits.
An employee who voluntarily leaves work with good cause is not disqualified from
receiving unemployment benefits if he or she is otherwise available for work.
The determination as to whether an employee lias sufficient service and
compensation in the base-year to be qualified for benefits is niade based on
information provided by employers as part of their annual service and compelisation
reports. Remeniber that because of provisions for extended and accelerated
benefits, not all benefit years begin July 1 and end the following June 30. Check the
benefit year designation on Form ID-4E. The base year for the benefit year is the
calendar year preceding the benefit year. For example, the base-year for "BY-98" is
calendar year 1997.
Here are examples of how a base-year employer might request reconsideration:
Railroad A receives Form ID-4E stating that its employee has claimed and been paid
unemployment benefits for May 1 through 14. Payroll records show that the employee
marked off the extra board on May 2, 3, and 4. (The railroad did not inform the RRB of
the employee's mark off when the RRB sent the prepayment claims verification notice.)
Railroad A sends a letter within 60 days to the RRB district office requesting
reconsideration of the determination to pay unemployment benefits for May 2, 3, and 4.
Tlie railroad explains that the employee was not available for work on the days at issue
and encloses a copy of the timekeeper's record showing that the employee marked off.
After investigation, the RRB determines that the employee was not available for work,
recovers the appropriate benefits from the employee, and sends a notice to the railroad
of the determination made on its request.

Railroad B receives Form ID-4E showing the payment of u~iemploymentbenefits to an
employee for days in the employee's paid vacation period. The railroad sends a
request for reconsideration to the RRB district office that documents the days to which
vacation pay is attributable. Upon review, the RRB determines that the employee
received remuneration for days claimed as days of unemployment, bills the employee
for the amount recoverable, and notifies the railroad of the determination.
Railroad C receives Form ID-4E indicating continued payment of sickness benefits
despite the railroad having recently concluded a personal-injury settlement with the
employee for the same infirmity. If the railroad did not prevent the sickness benefit
payment by responding to the prepayment notice, it can file a request for
reconsideration to prevent further payments for the same infirmity and to cause
recovery of any benefits not already recovered from the settlement under Section 12(0)
of the Railroad Unemployment Insurance Act.
Railroad D receives Form ID-4E notice indicating that an employee who was discharged
for failure to pay union dues was paid unemployment benefits. The railroad files a
request for reconsideration on the grounds that the employee, in effect, voluntarily quit
work by failing to pay union dues. The RRB's regional office issues a decision to the
railroad upholding the payment of benefits.
The railroad then files Form HA-1, Appeal Under the Railroad Retirement Act or
Railroad Unemployment Insurance Act, with the Bureau of Hearings and Appeals,
within 60 days. The hearings officer contacts both the railroad and the claimant and
holds a hearing because there are issues of fact. The hearings officer's decision is
favorable to the railroad, and the employee is denied further benefits and billed for the
overpayment. The employee appeals the decision to the three-member Board which
notifies the railroad of the appeal. After evaluating the record, the Board sustains the
hearings officer's decision.
We welcome information from employers to help ensure that benefit payments are
accurate and are paid only to those who are entitled to them. Erroneous benefit
payments that cannot be recovered remain charged to the base-year employer under
the experience rating system. Therefore, we emphasize the importance of employers
providing information in response to the RRB's prepayment claims verification notices in
order to prevent erroneous payments and to avoid collection action. And, where
employers disagree with an RRB determination, they should exercise their rights to
request reconsideration.
If you have any questions or need additional information about your appeals of RUlA
benefit determinations, please contact the manager of your local RRB district office.
This letter is also available on our Web site at http://www.rrb.qov.
Attachment

Attachment A

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Claim Profile Day Codes

Unemployment
Day not claimed
Claimed day of unemployment/available for work
Employed, day not claimed
Claimed day of unemployment, denied for miscellaneous reasons
Claimed day of unemployment, denied because of work restrictions andlor
earnings test
Claimed day of unemployment, denied due to late registration
Claimed day of unemployment, denied for miscellaneous reasons
Claimed day of unemployment, benefits reduced because of receipt of social
insurance
Claimed day of unemployment, denied because of unavailability for work
Claimed day of unemployment, denied because of receipt of remuneration
Sickness

0
1
2
3
4
5
6
7

Day not claimed
Claimed day of sickness
Employed, day not claimed
Claimed day of sickness, denied for miscellaneous reasons
Claimed day of sickness, denied due to improper advanced registration
Claimed day of sickness, denied due to improper delayed registration
Claimed day of sickness, denied for miscellaneous reasons
Claimed day of sickness, benefits reduced because of receipt of social
insurance
8 Claimed day of sickness, denied due to ability to work
9 Claimed day of sickness, denied because of the receipt of remuneration