RRB Circular Letter No. UI-C-229

Program
Letter

United States
Railroad Retirement Board

Office of Programs

Chicago, IL 60611-2092

Quality Reporting Service Center

(312) 751-4992
No. UI-C-229

CONTACT:

Michelle Andrey
Policy and Systems

Released October 1994
[Revised September 2014]

PHONE:

(312) 751-3383

TO:

Chief Executive Officers
Unemployment and Sickness Insurance Contact Officials

SUBJECT:

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

Introduction
The purpose of this circular letter is to review how railroad employers may exercise their
rights to protest the award of unemployment and sickness benefits under the Railroad
Unemployment Insurance 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 employer 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 RRB’s regulations, 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 employer may 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 provides Form ID-4K, Prepayment Notice of Employees’ Applications and
Claims for Benefits under the RUIA, through paper, electronic data interchange (EDI)
or online via the Employer Reporting System (ERS).
In the absence of prior arrangements to receive and respond to ID-4K claim messages
electronically, printed notices are mailed to an official designated by the railroad 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.
Railroads interested in receiving and responding to ID-4K claim messages via EDI
should contact Ms. Michelle Andrey at (312) 751-3383.
To receive and complete an ID-4K online via ERS, you must first file Form BA-12,
Application for Employer Reporting Internet Access. Complete all sections of the form
except Section D, read the Access and Security Guidelines, and sign the certification.
Have your supervisor or manager complete Section D. The form must be signed by an
official of the company who has signature authority to sign RRB forms. The head of the
company and those persons designated on Form G-117A, Designation of Contact
Official, are assumed to have signature authority.
Form BA-12 cannot be completed or filed on the website. To deter fraudulent use of
the site, the application must include original signatures (no reproductions) and be
transmitted by US mail or express mail carrier. For security reasons, facsimiles are not
acceptable. Within three to five days of receipt of an acceptable application, the RRB
will mail your user ID and password along with instructions for accessing the site.
Regardless of the method an employer elects to receive Form ID-4K, 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 that may be relevant to the proper payment of benefits. If the
employer does not respond to the notice by the third business day, the claim is
accepted as initial proof of the claimant’s eligibility for benefits and is processed for
payment.
Paperwork 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
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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:






Unemployment
Electronic data interchange (EDI) 25.2 hrs/yr.
Form Letter ID-4K
2 min./ response
ID-4K (Internet)
2 min/response
Form Letter ID-4E
2 min/response
ID-4E (Internet)
2 min/response

Sickness
16.8 hrs./yr.
2 min./response
2 min/response
2 min/response
2 min/response

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 aspect of this program, including suggestions for reducing reporting time, to the
Chief of Information Resources Management, Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois 60611-2092.
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 RUIA requires that “when the RRB initially determines to pay
benefits to a claimant..., the RRB shall provide notice of such determination to the
claimant’s base-year employer or employers.” Upon receipt of notice that an
individual’s claim 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.
Form ID-4E, Notice of RUIA Claim Determinations, is used to provide notice of each
determination to allow benefits on a claim and is also available to employers through
paper, electronic data interchange or ERS. The following information is provided with
each determination:





Employee’s Social Security Number
Employee’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
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







codes are explained in the attachment.
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., “13” indicates the benefit year normally
beginning July 1, 2013, and ending June 30, 2014.
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 website at
www.rrb.gov or by calling our toll-free Help-Line number at
1-877-772-5772.

Appeal of RRB Determinations
The same provisions mentioned above apply with respect to the instructions for
receiving Form ID-4E via electronic data interchange and ERS. Upon receiving notice
of the RRB’s determination to pay benefits for a claim, the claimant’s base-year
employer 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.
Once the request for reconsideration is received, the RRB office responsible for
adjudication of the claim will review and issue a decision on the request for
reconsideration. If the RRB district office is the adjudicating office, the decision will be
referred to the Bureau of Field Service 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-1EMP, Base Year Employer Appeal
Under the Railroad Unemployment Insurance Act, and should fully explain the reason
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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-1EMP, which is available on our website,
should be mailed to:
Director of Hearings and Appeals
U. S. Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092
If a base-year employer is not satisfied with a decision on an appeal from the Bureau of
Hearings and Appeals, the employer may appeal to the three-member Board. An
appeal to the Board must be filed on Form HA-1EMP 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 Unemployment Insurance 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 claimant, 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 a claimant 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 the employee unemployed because he or she
failed to follow prescribed procedures for recall to work? Did the employee refuse
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?

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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 RUIA for unemployment related to suspension or
discharge. An employee who is unemployed because of a suspension or
discharge can receive unemployment benefits if otherwise eligible for benefits.
An employee who voluntarily leaves work with good cause is not disqualified from
receiving unemployment benefits if otherwise available for work.
The determination as to whether an employee has sufficient service and
compensation in the base-year to be qualified for benefits is made based on
information provided by employers as part of their annual service and
compensation reports. Remember 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-14” is calendar year 2013.

Below 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.
The 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 unemployment benefits 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.
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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(o)
of the Railroad Unemployment Insurance Act.
Railroad D receives Form ID-4E 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-1EMP, Base Year Employer Appeal Under the 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 who 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 appealing RUIA benefit
determinations, please contact the manager of your local RRB district office.
This letter is also available on our website at www.rrb.gov.

Attachment

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Attachment

Claim Profile - Day Codes

Unemployment
0
1
2
3
4
5
6
7
8
9

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 and/or
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

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