Transportation, and, upon enactment, are transferred to the Board for disbursement. The Board's responsibilities under the Milwaukee Road Act will be summarized first, and then the somewhat different responsibilities under the Rock Island Act will be described. Milwaukee Railroad Restructuring Act Supplementary Unemployment Insurance Supplementary unemployment insurance is payable to Milwaukee Road employees (1) who are employed by the restructured Milwaukee Road and are separated from that employment because of a reduction in service occurring before April 1, 1984, or (2) who are separated from Milwaukee Road employment because of a restructuring transaction, and obtain employment before April 1, 1981 with another rail carrier, and then are separated from that employer before April 1, 1984. The amount of supplementary unemployment insurance payable is 80 percent of the average monthly normal compensation from Milwaukee Road employment between June 1, 1977 and November 4, 1979, MINUS any benefits payable for the month under the Railroad Unemployment Insurance Act or under any State unemployment insurance program and any earnings during the month from employment or self-employment of any kind. An employee who has received a separation allowance from the Milwaukee Road under an employee-protection agreement entered into under Section 9 of the Milwaukee Railroad Restructuring Act may also be entitled to new career training assistance. If an employee is eligible for new career training assistance, he may receive reimbursement for the actual expenses involved in training, up to a limit of $3,000.00. Actual expenses include the amount paid for tuition, room, board, fees and educational material. The Board's Role in Administering Benefits The Board will receive and adjudicate applications for supplementary unemployment insurance. The Act provides a formula shown above based upon prior compensation, by which benefits are to be calculated. The Board makes the payments from advances made by the Department of Transportation. There is an aggregate limit, in the Act, of $5 million on such appropriations. New Career Training Assistance The Board will receive and adjudicate applications for new career training assistance. The Act provides a list of eligible activities, and limits the aggregate payment to any one employee to $3,000.00. The Board makes the payments from advances made by the Department of Transportation. There is an aggregate limit, in the Act, of $3.0 million on such appropriations for both the Milwaukee and Rock Island programs. The Board's Role in Administering Special Hiring Rights The Act provides special hiring rights for those individuals who were employees January 1981 of the Milwaukee Road on September 30, 1979, and are separated or furloughed (other than for cause) before April 1, 1981, because of a reduction in service. The Board must prepare and maintain two reemployment lists through December 31, 1984. The first list will consist of the names of any separated Milwaukee Road employee who asks to be included on it. The Board will distribute this listing to all rail carriers upon their request. The second list will be a list of employment opportunities, by class and craft, currently available with rail carriers. This list will be used by the Board to assist separated employees who are seeking reemployment. The Board's Role Under the Employer-Employee Agreement Signed Pursuant to Section 9 (b) The Milwaukee Road and several labor organizations signed an agreement under the provisions of Section 9 (b) of the Act. This agreement covers such matters as: interim employee assistance, moving expenses, employee incentive compensation, and separation allowances. The Board's role is to settle disputes between the employee and the Milwaukee Road which arise under the Employee Protection Agreement. The Board is to arrange a meeting of the employee and a representative of the Milwaukee Road, and, at the option of the Board, a representative of the Board. If the dispute is not resolved, it may be submitted to the Board. Some disputes will then be resolved by the Board. Other disputes will be submitted to arbitrators or appraisers for settlement. Rock Island Transition and Employee Assistance Act Special Note on Present Litigation At this writing, a Federal District Court injunction is in effect, enjoining implementation of the employee protection agreement negotiated pursuant to Section 106 of the Act. This injunction stops the Board's role under the agreement (described below) and the payment by the Board of benefits for new career training assistance, as those benefits are dependent upon an employee election under the employee protection agreement. The nature and timing of resolution of this litigation is uncertain. Supplementary Unemployment Insurance There is no provision for supplementary unemployment insurance in the Rock Island Act. This is the Act's major difference from the Milwaukee Railroad Restructuring Act. Career Training Assistance The Act provides that an employee who elects to receive a separation allowance from the Rock Island under the employee protection agreement negotiated pursuant to Section 106 may be reimbursed for certain educational expenses. The employee must have exhausted any Federal educational benefits available to him. Up to a limit of $3,000, an eligible employee may receive reimbursement for actual expenses paid for tuition, fees, room, board and educational material. The Board's Role in Administering Benefits The Board will receive and adjudicate applications for new career training assistance. The Act provides a list of eligible activities, and limits payment to any one employee to $3,000. The Board will make the payments from advances made by the Department of Transportation. There is an aggregate limit in the Milwaukee Railroad Restructuring Act of $3.0 million on such appropriations for the Milwaukee Act and this Act. The Board's Role in Administering Special Hiring Rights The Act provides special hiring rights for those individuals who were employees of the Rock Island on August 1, 1979, and are separated or furloughed (other than for cause) prior to January 1, 1981 as a result of a reduction in service from the Rock Island or from another carrier providing temporary service over the lines of the Rock Island. The Board must prepare and maintain two unemployment lists. The first list will consist of the names of any separated Rock Island employee who asks to be included January 1981 on it. The Board will distribute this listing to all rail carriers upon their request. The second list (identical to that prepared for the Milwaukee Road Act) will consist of a list of employment opportunities, by class and craft, currently available with rail carriers. The Board will use this list to assist separated employees who are seeking reemployment. The Board's Role Under the Agreement Pursuant to Section 106 We ex Due to the court injunction described above, the Board's role under the employer-employee agreement required by Section 106 is uncertain at this writing. pect the role to be quite similar to that described above under the Milwaukee Road agreement signed pursuant to Section 9 (b) of that Act. JUSTIFICATION OF ESTIMATES For expenses necessary for the Railroad Retirement Board, $54.000.000, of which $8,500,000 for automation activities shall remain ́available until expended, to be derived from the railroad retirement accounts: Provided, That $500,000 of the foregoing amount shall be available only to the extent necessary to process workloads not antici pated in the budget estimates and after maximum absorption of the costs of such workloads within the remainder of the existing limitation has been achieved: Provided further. That notwithstanding any other provisions in law, no portion of this limitation shall be available for payments of standard level user charges pursuant to section 210(j) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 490(j); 45 U.S.C. 228 a-r). Note: A budget amendment will be transmitted to reduce the amount to $52,250,000. "SEC. 15. (a) The Railroad Retirement Account established by section 15(a) of the Railroad Retirement Act of 1937 shall continue to be maintained in the Treasury of the United States. There is hereby authorized to be appropriated to such Account for each fiscal year, beginning with the fiscal year ending June 30, 1975, to provide for the payment of benefits to be made from such Account in accordance with the provisions of section 7(c) (1) of this Act, and to provide for expenses necessary for the Board in the administration of all provisions of this Act, an amount equal to amounts covered into the Treasury (minus refunds) during each fiscal year under the Railroad Retirement Tax Act, except those portions of the amounts covered into the Treasury under sections 3211(b), 3221 (c), and 3221(d) of such Tax Act as are necessary to provide sufficient funds to meet the obligation to pay supplemental annuities at the level provided under section 3(e) of this Act and, with respect to those entitled to supplemental annuities under section 205(a) of title II of this Act, at the level provided under section 205(a). "(c) The Railroad Retirement Supplemental Account established by section 13(b) of the Railroad Retirement Act of 1937 shall continue to be maintained in the Treasury of the United States. There is hereby authorized to be appropriated to such account for each fiscal year, beginning with the fiscal year ending June 30, 1973, to provide for the payment of supplemental annuities under section 2(b) of this Act, and to provide for the expenses necessary for the Board in the administration of the payment of such supplemental annuities, an amount equal to such portions of the amounts covered into the Treasury (minus refunds) during each fiscal year under sections 3211(b), 3221(e), and 3221(d) of the Railroad Retirement Tax Act as are not appropriated to the Railroad Retirement Account pursuant to the provisions of subsection (a) of this section. March 1981 11R |