TABLE 10.- Unemployment insurance: Selected data by State, June 1974

[Excludes program for Federal employees and for ex-servicemen; includes unemployment compensation for State and local government employees where covered by State law]

TABLE 11.-Unemployment insurance: Selected data on State programs, 1940-74

(Excludes programs for Federal employees and for ex-servicemen; includes unemployment compensation for State and local government employees where covered by State law]

700

500

400

300

200

100

RAILROAD UNEMPLOYMENT INSURANCE

BASIC PROGRAM INFORMATION

LEGISLATIVE OBJECTIVE.-To restore part of the wages lost by railroad workers because of involuntary unemployment or sickness.

DATE ENACTED AND MAJOR CHANGES SINCE ENACTMENT.-The Railroad Unemployment Insurance Act was enacted in 1938. Amendments in 1946 established a program of cash sickness benefits for railroad workers paralleling the unemployment benefits and financed from the same taxes. In 1948, the fixed employer contribution rate was replaced by a sliding scale of contribution rates, depending on the balance in the railroad unemployment insurance account. The maximum contribution rate has increased from 3 to 4 percent. The maximum daily benefit rate has increased from $3 to $12.70. A benefit rate guarantee was established in 1954 at 50 percent of the daily wage rate and has risen to 60 percent. The taxable earnings base has risen from $300 to $400 of each employee's monthly earnings. The base-year earnings needed by an employee to qualify for benefits has risen from $150 to $1,000. ADMINISTERING AGENCY.-The program is administered by the Federal Railroad Retirement Board through regional and district offices. FINANCING. The program is financed by a payroll tax paid by railroad employers. The taxable earnings base is the first $400 of each employee's monthly earnings. The contribution rate is determined from a schedule in the law and may vary from 1.5 to 4 percent. For any particular calendar year, the contribution rate depends upon the balance in the railroad unemployment insurance account, including the balance in the administration fund, on the preceding September 30:

Balance in railroad unemployment insurance account on Sept. 30 (in millions):

$450 or more..

$400 but less than $450.

Rate for

next calendar

year

(percent)

1.5

2.0

2.5

3.0

$350 but less than $400. $300 but less than $350_ Less than $300___.

4. 0

Of each year's contribution receipts, 0.25 percent of taxable payroll is earmarked for administration. Annual appropriations from Congress are not required. Excess funds allocated but not needed for administration are transferred to the benefit account at the end of each fiscal year.

The Railroad Retirement Board has the authority to borrow from the railroad retirement account in order to insure the payment of all unemployment and sickness benefits when due. The Board repays money plus interest as soon as unemployment funds are available. Indebtedness to the railroad retirement account of $314 million in June 1963, was liquidated in fiscal year 1974.