WASHINGTON D.C., Jan. 29 -- The Rail Safety Advisory Committee (RSAC) voted unanimously to endorse the final recommendations of the Locomotive Engineer Certification Working Group. These recommendations were derived from comments filed in response to the FRA's Notice of Proposed Rule Making, which set forth he substance of the changes which will be made effective in the Final Rule (Part 240).
"This vote moves regulation changes a giant step forward in the adoption process," said BLE International President Clarence Monin.
"According to our information, there were a couple of procedural steps to be completed but the final rule should go into effect in 90 days," said BLE Vice-President Rick Radek.
Brother Radek and Leroy Jones, BLE Vice-President & U.S. National Legislative Representative, represented the BLE during final RSAC action on the Certification regulation changes.
"The comments which the Working Group considered sparked considerable discussion and debate, and helped the Group to clarify many issues and provisions from the Notice of Proposed Rule Making," Radek said. "The overwhelming vote in favor of the Working Group's recommendations shows the depth of support which has been generated for the regulatory changes.
Although not every recommendation filed received the Working Group's full approval, several important recommendations went forward. One, for instance, included clarification that time lost as a result of adverse action taken under Part 240 can be pursued under a collective bargaining agreement's grievance provisions. Other recommendations clarify the intent that Part 240 applies to Designated Supervisors of Locomotive Engineers (DSLE's) in the same manner as working engineers, including incidents of possible revocations.
"Another milepost has been reached in our efforts to obtain a fairer certification system," President Monin said. "From the very beginning, when we formed a BLE task force to study the issues, and then throughout the Working Group sessions with our BLE team headed up by Brother Radek, we always kept together and strong in our resolve to get relief for our membership from what turned out to be a very punitive set of regulations."
Under the Current Regulations
Section 240.117(e): A railroad shall consider violations of its operating rules and practices that involve: (2) Failure to adhere to limitations concerning train speed when the speed at which the train was operated exceeds the maximum authorized limit by at least 10 miles per hour or by more than one half of the authorized speed, whichever is less.
Section 240.117(g): A period of ineligibility described in this paragraph shall: (3) Be determined according to the following standards: (i) In the case of a single incident, the person shall be ineligible to hold a certificate for one month. (ii) In the case of two separate incidents that occurred within 36 months of each other, the person shall be ineligible to hold a certificate for a period of one year.
(iii) In the case of more than two such violations in any consecutive 60 month interval, the person shall be ineligible to hold a certificate for a period of five years.
(h) Future eligibility to hold certificate. Only a person whose certification has been denied or revoked for a period of one year in accordance with the provisions of paragraph (g)(2) of this section for reasons other than noncompliance with Section 219.101 of this Chapter shall be eligible for grant of reinstatement of the certificate prior to the expiration of the initial period of ineligibility |
Under the New Changes
Section 240.117(e): A railroad shall consider violations of its operating rules and practices that involve: (2) Failure to adhere to limitations concerning train speed when the speed at which the train was operated exceeds the maximum authorized limit by at lease 10 miles per hour. Railroads shall consider only those violations of the conditional clause of restricted speed rules, or the operational equivalent thereof, which cause reportable accidents under 49CFR Part 225, as instances of failure to adhere to this section.
Section 240.117(g): A period of ineligibility described in this paragraph shall: (3) Be determined according to the following standards: (i) In the case of a single incident, the person shall be ineligible to hold a certificate for one month. (ii) In the case of two separate incidents that occurred within 24 months of each other, the person shall have his or her certificate revoked for a period of six months. (iii) In the case of three separate incidents that occurred within 36 months of each other, the person shall have his or her certificate revoked for a period of one year. (iv) In the case of four separate incidents that occurred within 36 months of each other, the person shall have his or her certificate revoked for a period of three years. (h) Future eligibility to hold certificate. Only a person whose certification has been denied or revoked for a period of one year or less in accordance with paragraph (g)(3) of this section for reasons other than noncompliance with Section 219.101 of this Chapter shall be eligible for grant of reinstatement of the certificate prior to the expiration of the initial period of ineligibility |
The following questions and answers are Part I of a two-part series which describe the benefit information statements issued by the Railroad Retirement Board each January for Federal income tax purposes.
Railroad Retirement beneficiaries needing information about these statements, or tax withholding from their benefits, should contact the nearest office of the Railroad Retirement Board.
For further Federal income tax information, railroad retirement beneficiaries should contact the nearest office of the Internal Revenue Service.
1. How are the annuities paid under the Railroad Retirement Act treated under the Federal income tax laws?
In most cases, part of a Railroad Retirement annuity is treated like a Social Security benefit for income tax purposes, while other parts of the annuity are treated like private and public service pensions for tax purposes. Consequently, most annuitants are sent two benefit information statements from the Railroad Retirement Board each January, even though they receive only a single annuity payment each month.
2. Which railroad retirement benefits are treated as Social Security benefits for Federal income tax purposes?
The part of a Railroad Retirement annuity equivalent to a Social Security benefit based on comparable earnings is treated for Federal income tax purposes the same way as a Social Security benefit. The amount of these benefits that may be subject to Federal income tax, if any, depends on the beneficiary's income.
If adjusted gross income plus non-taxable interest income and half of the Social Security equivalent benefit payments exceed:
· $25,000 for an individual, $32,000 for a married couple filing jointly, and zero for a married individual who files separately but lived with his or her spouse any part of the year.
· Up to 50 percent of these Railroad Retirement benefit payments may be considered taxable income.
· $34,000 for an individual, $44,000 for a married couple filing jointly, and zero for a married individual who files separately but lived with his or her spouse any part of the year up to 85 percent of these benefits may be taxable.
3. Which Railroad Retirement benefits are treated like private and public service pensions for Federal income tax purposes?
Railroad Retirement annuity payments exceeding Social Security equivalent payments, plus any vested dual benefits and supplemental annuities, are treated like private and public service pensions for Federal income tax purposes. In some cases, primarily those in which early retirement benefits are payable to retired employees and spouses between ages 60 and 62, and some occupational disability benefits, the entire annuity may be treated like a private or public pension. This is because Social Security retirement benefits are not payable before age 62 and social security benefit entitlement requires total disability.
For annuities beginning after July 1, 1986, railroad retirement payments exceeding Social Security equivalent levels are generally taxable under the Internal Revenue Code General Rule or Simplified General Rule. For income tax purposes under these rules, contributory payments are subject to income tax immediately upon retirement, but are prorated to yield a tax-free amount based on an employee's previously-taxed pension contributions.
For Railroad Retirement annuitants, employee contributions are considered to be the amount of railroad retirement payroll taxes paid by the employee over and above comparable Social Security payroll tax rates. However, vested dual benefit payments and Railroad Retirement supplemental annuities are considered noncontributory and fully taxable. Nor do spouse annuity payments exceeding Social Security equivalent payments include a tax-free amount; these benefits are also fully taxable.
Additional information about the tax treatment of Railroad Retirement benefits over and above Social Security equivalent benefits can be found in IRS Publication 575, Pension and Annuity Income (Including Simplified General Rule), and Publication 939, General Rule for Pension and Annuities. If the employee died during the tax year, survivors should also refer to these publications because a death benefit exclusion may apply.
4. What information is shown on the RRB benefit statements sent to annuitants in January?
One statement, the blue Form RRB-1099 (or black Form RRB-1042S for nonresident aliens), shows the amount of any Social Security equivalent or special minimum guaranty payments made during the tax year, the amount of any such benefits that an annuitant may have repaid to the Board during the tax year, and the net amount of these payments after subtracting the repaid amount. The amount of any offset for workers' comp and the amount of Federal income tax withheld from these payments are also shown.
(End of Part I. Part II
continues next issue.)
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