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Decision Tree "C" --The RRB Medicare Program
Program
The Medicare program, as administered by the RRB for qualified railroad retirement beneficiaries,
includes entitlement determinations, enrollments, disenrollments, premium collection, inquiry responses,
records maintenance, coordination with the Health Care Financing Administration (HCFA) and SSA, and
contracting with a Medicare carrier.
Is this program critical to the agency's mission based on "customer" input?
No. When Medicare legislation was enacted in 1966, certain functions were delegated to this agency as
a matter of convenience. Our customers are well satisfied with our service and should probably oppose
change. However, most functions should be the responsibility of the Health Care Financing
Administration.
Can the program be administered as well or better at the State or local level?
No. The RRB Medicare program while transferrable to another Federal agency, cannot be administered
as well or better at the state or local level.
Is there any way to cut costs or improve performance by introducing competition?
No. The RRB's Bureau of Law has determined that the adjudication functions performed under the RRA,
including the collection of Medicare premiums, are inherently Government functions and cannot be
transferred or contracted out without legislative authority. In FY 1992, we competed the Medicare carrier's
contract which resulted in improved service and savings. We will continue to look for opportunities to
improve our operations and customer service.
How can NPR principles be applied to put customers first, cut red tape and empower employees?
The RRB will continue to reinvent its Medicare operations by aggressively utilizing technology and
streamlining the adjudicative process. We have recently implemented one new major on-line system and
we are in the process of developing another.
29
OPTION C-1 TERMINATE RRB MEDICARE INVOLVEMENT
PRO
RRB would realize an annual reduction of 70 FTE's.
Would eliminate redundant programs with SSA/HCFA.
CON
Beneficiaries would no longer receive annuity benefits and Medicare from the same agency. They
would have to deal with another agency for their Medicare.
Since Medicare premiums would no longer be deducted from railroad retirement annuities, direct
billing would have to be instituted for those annuitants not entitled to social security benefits. This
will increase the costs for the agency handling Medicare.
Canadian hospital insurance claims are currently paid for out of the Railroad Retirement Account.
Different reimbursement and processing systems would need to be established by HCFA, SSA or
some other entity.
30
Summary Cost Information - Medicare Program - Option C-1
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
1,916
d/
0
0
d/
Discretionary Budget
Outlays
1,916
d/
0
0
d/
Mandatory Outlays
Governmental
Receiptsᵇ
FTE Changes
25
d/
(-24)
(-23)
d/
FOOTNOTES - Option C-1
a/ Administrative funds include the Limitation on Administration. Excludes an estimated $3.7 million
to be reimbursed by the Health Care Financing Administration (HCFA) for Medicare activities.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA) and the Social Security Equivalent Benefit Account (SSEB).
c/ Excludes 44 FTE's to be reimbursed by HCFA for Medicare activities.
d/ Undetermined. Presumes termination in FY 1996.
31
OPTION C-2 TRANSFER RRB MEDICARE CARRIER ACTIVITIES TO HEALTH CARE
FINANCING ADMINISTRATION (HCFA)
PRO
It is likely this will occur as a result of technological advances in HCFA's claims
processing systems.
Potential cost savings have been presented previously. In 1979, the GAO estimated that $6.6
million could be saved because of the lower processing costs of the HCFA carriers. In 1984, GAO
estimated that about $7 million could be saved in 1983. In 1990, the Department of Health and
Human Services (HHS) Office of Inspector General (OIG) estimated that annual savings of $9.1
million would be achieved. However, in 1991 the RRB OIG estimated that the savings estimate
of $9.1 million would not be achieved because of unlikely predictions, obsolete cost differentials
and incorrect assumptions.
RRB would realize savings of approximately 2 FTE's because contract oversight would no longer
be necessary.
Reduces functional redundancy between Federal agencies.
Eliminates disparate handling of Medicare claims because HCFA area carriers apply different
medical review standards to claims.
CON
Potential increased costs to the Federal government because the FY 1994 RRB carrier total unit
cost is $1.49 versus the national average of $1.66.¹
Customer service could be negatively impacted during transition.
Problem resolution negatively impacted by dealing with 29 carriers;
Contrary to high levels of satisfaction expressed in customer survey and focus groups.
'RRB Medicare contract has been competitively awarded, a process which may be
advisable for all HCFA contracts.
32
Summary Cost Information - Medicare Program - Option C-2
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
1,916
1,812
1,707
1,595
8,418
Discretionary Budget
Outlays
1,916
1,812
1,707
1,595
8,418
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
25
23(-2)
22(-3)
21(-4)
110(-15).
GAO and the HHS-OIG have estimated annual administrative savings of $6.6 million to $9.1 million.
These estimates have been criticized by the RRB-OIG as being too high. We estimate that since October
1987, the RRB carrier has saved the Federal government $32 million in benefit payments because of
historically higher payment accuracy rates than the national average of all area carriers.
FOOTNOTES - Option C-2
a/ Administrative funds include the Limitation on Administration.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA) and the Social Security Equivalent Benefit Account (SSEB).
33
OPTION C-3 RESTRUCTURE THE RRB MEDICARE PROGRAM
PRO
Continued high levels of service and customer satisfaction.
Continued sole source accountability.
Close, effective coordination between Medicare program and other RRA retirement/survivor
programs.
Internal streamlining - continued automation of record corrections and of exception referral
control.
CON
Continued redundancy in functions by Federal agencies.
Continued disparate treatment between railroad beneficiaries and other Americans.
Summary Cost Information - Medicare Program - Option C-3
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
1,916
1,916
1,811
1,699
8.936
Discretionary Budget
Outlays
1,916
1,916
1,811
1,699
8,936
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
25
25 (0)
24 (-1)
23 (-2)
120 (-5)
34
FOOTNOTES - Option C-3
a/ Administrative funds include the Limitation on Administration. Excludes an estimated $3.7 million
to be reimbursed by the Health Care Financing Administration (HCFA) for Medicare activities.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA) and the Social Security Equivalent Benefit Account (SSEB).
c/ Excludes 44 FTE's to be reimbursed by HCFA for Medicare activities.
35
Decision Tree "D" for the Administration of the
Railroad Unemployment Insurance Act Program
Program
The railroad unemployment insurance program is provided under the Railroad Unemployment Insurance
Act (RUIA). The Act provides for the payment of bi-weekly unemployment benefits to qualified railroad
employees who are unemployed, but able to work and available for work. It also provides for the payment
of bi-weekly sickness benefits to qualified railroad employees who are unable to work because of illness,
injury or maternity.
Is this critical to the agency's mission based on "customer" input?
Yes. The program is an essential part of the agency's mission.
Can it be done as well or better at the State or local level?
Yes. Individual State unemployment systems now cover all other American workers.
Is there any way to cut costs or improve performance by introducing competition?
Introducing competition would not cut costs or improve performance.
If not, how can NPR principles be applied to put customers first, cut red tape, and empower
employees?
During fiscal year 1994, customer satisfaction surveys and focus groups were conducted and a customer
service plan was developed. Performance is tracked against customer service standards and actions are
taken to improve performance, when necessary. Action plans have been developed to improve quality and
timeliness and implement cost-saving concepts. In addition, reengineering efforts are underway as part of
the agency's streamlining plan to improve operations.
36
OPTION D-1 TRANSFER THE RAILROAD UNEMPLOYMENT INSURANCE ACT
PROGRAM TO THE DEPARTMENT OF LABOR/STATE SYSTEM
PRO
Eliminates functional redundancy between State and Federal agencies.
Claimants residing in some States would receive a higher weekly benefit under the State systems
compared to benefits currently payable under the RUIA.
The State systems have either no waiting period or a 1-week waiting period compared to the 2-
week waiting period currently required under the RUIA.
RRB involvement would be eliminated. The rail industry would be treated the same as other
industries.
Eliminates the need for Congress to have to deal with a separate railroad
unemployment system.
CON
Terminates a program which is designed as a daily benefit, consistent with the industry's
intermittent employment practices, whereas State programs are based on unemployment measured
by weeks instead of days.
Eliminates the consistent treatment of railroads and their employees. Coverage by State programs
would result in different benefit levels, eligibility criteria, etc. based on State of residence.
Railroads operating in more than one State would have to comply with applicable requirements
of the unemployment programs in each of the States. This would result in a greater administrative
burden than currently exists with a single system.
Only 5 States pay sickness benefits. There is no reason to believe the other 45 States
would want to operate a sickness insurance program for railroad employees.
Sickness benefits would have to be addressed by rail labor and management negotiations.
37
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-1
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
17,633
d/
0
0
d/
Discretionary Budget
Outlays
17,633
d/
0
0
d/
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
266
d/
0 (-261)
0 (-225)
d/
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-1
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
Discretionary Budget
Outlays
Mandatory Outlays
68.900
d/
0
()
d/
Governmental
Receipts
32.800
d/
()
0
d/
FTE Changes
38
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-1
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
17,633
d/
0
0
d/
Discretionary Budget
Outlays
17,633
d/
0
0
d/
Mandatory Outlays
68,900
d/
0
0
d/
Governmental
Receipts
32,800
d/
0
0
d/
FTE Changes
266
d/
0 (-261)
0 (-225)
d/
FOOTNOTES - Option D-1
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for the
Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Includes outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 RUIA benefit estimate is $102.6
million.
d/ Undetermined. Presumes transfer in FY 1996.
39
OPTION D-2 PRIVATIZE/FRANCHISE THE RAILROAD UNEMPLOYMENT
INSURANCE ACT PROGRAM
PRO
Federal government involvement would be eliminated or reduced.
Employer/employee representatives would be free to negotiate changes in benefit programs
without regard to Federal/State legislation.
CON
Ability to detect and prevent fraudulent benefit claims may be reduced.
Opportunities/sources available to Federal agencies for recovery of overpayments could not be
used.
Customer surveys and focus groups indicate a high level of satisfaction with the existing program.
Less liberal sickness benefits would be available in the current state UI system.
40
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-2
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
17,633
d/
0
0
d/
Discretionary Budget
Outlays
17,633
d/
0
0
d/
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
266
d/
0 (-261)
0 (-225)
d/
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-2
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
Discretionary Budget
Outlays
Mandatory Outlays
68,900
d/
()
()
d/
Governmental
Receipts
32.800
d/
()
0
d/
FTE Changes
41
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-2
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
17,633
d/
0
0
d/
Discretionary Budget
Outlays
17,633
d/
0
0
d/
Mandatory Outlays
68,900
d/
0
0
d/
Governmental
Receipts
32,800
d/
0
0
d/
FTE Changes
266
d/
0 (-261)
0 (-225)
d/
FOOTNOTES - Option D-2
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for the
Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Includes outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 RUIA benefit estimate is $102.6
million.
d/ Undetermined. Presumes privatization in FY 1996.
42
OPTION D-3
RESTRUCTURE THE CURRENT RAILROAD UNEMPLOYMENT
INSURANCE ACT PROGRAM
PRO
Customers support continuing the existing program.
Maintains a system which is responsive to conditions in the railroad industry.
No additional costs incurred for transition to alternate program.
Administrative costs and staffing have been reduced while program performance has improved.
CON
Federal government involvement is still required.
43
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-3
Administrative Receipts and Expendituresᵃ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
17,633
17,633
17,206
16,142
84,329
Discretionary Budget
Outlays
17,633
17,633
17,206
16,142
84,329
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
266
266 (0)
261 (-5)
225 (-41)
1,237 (-93)
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-3
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
Discretionary Budget
Outlays
Mandatory Outlays
68,900
68,900
67,700
69,800
344,300
Governmental
Receipts
32,800
32,800
41,000
115,600
399,600
FTE Changes
44
Summary Cost Information - Railroad Unemployment Insurance Act Program -
Option D-3
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
17,633
17,633
17,206
16,142
84,329
Discretionary Budget
Outlays
17,633
17,633
17,206
16,142
84,329
Mandatory Outlays
68,900
68,900
67,700
69,800
344,000
Governmental
Receipts
32,800
32,800
41,000
115,600
399,600
FTE Changes
266
266 (0)
261 (-5)
225(-41)
1,237 (-93)
FOOTNOTES - Option D-3
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for the
Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Includes outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 RUIA benefits estimate is $102.6
million.
1. Describe any recommendations offered by the OMB/NPR advisory teams that may have
been considered but rejected. Briefly explain why they were rejected.
A. NPR 1 recommended: "Transfer the functions of the Railroad Retirement Board to other
agencies." In its September 1994 status report it reported: "NPR's recommendation to
restructure the management of railroad industry benefits programs has been deferred indefinitely,
and the Railroad Retirement Board has committed to acting on a series of management
improvements."
2. List programs, functions, subsidies, or regulatory efforts that are not being considered for
Phase II reinvention. Briefly explain why they are being excluded.
A. None have been excluded from the Railroad Retirement Board's recommendations. Further cost
benefit analyses will be necessary depending on the specific recommendations adopted.
###
UNITED STATES OF AMERICA
AMILOAD RETIREMENT BOARD
RAILROAD RETIREMENT BOARD
844 N RUSH ST
CHICAGO IL 60611-2092
U.S.A.
V.M. SPEAKMAN, JR.
OFFICE OF LABOR MEMBER
LABOR MEMBER
February 24, 1995
The National Performance Review
750 17th Street, N.W.
Suite 200
Washington, D.C. 20006
Attn: Marv Voskhul, Jay Friedman, Jerry Nikolaus
Gentlemen:
As Labor Member of the Railroad Retirement Board, representing the
interests of the 1.3 million active and retired railroad workers
served by this system, the "customers" of our agency, I am
submitting to you, unedited, the assessment of our operations and
programs as prepared by our agency managers in response to your
request.
It is readily apparent that the majority of the Board wishes to use
this assignment for their own purely political motives and does not
provide the Administration with the objective evaluation of our
programs needed to make an informed decision relative to our
operations. The agency team members assigned to respond to your
request for an Options Paper are the experts on the Railroad
Retirement System. The original document, which I am sending you,
reflects decades of collective knowledge as to how our system
currently operates and how our programs could be handled
differently. Our team members' work was literally gutted by the
Management Member of the Board and replaced with purely partisan
opinions, without regard to the team members' expertise or customer
input. This revision, which has been agreed to by the Chairman of
the Board, completely ignores the views of the hundreds of
thousands of individuals and families who are served by the
railroad retirement system.
It is my opinion that the majority is deliberately misleading the
Administration, particularly in the areas of budgetary impact,
legislative complexity, and past service liability for the 800,000
plus current beneficiaries of our system, by radically changing our
managers' objective analysis to reflect either purely personal
views or the views of certain railroad companies. I can assure you
that it does not reflect the views of the 1.3 million men and women
who depend on this system to protect them from the economic
hardships associated with old age, sickness, unemployment and
death.
-2-
The majority submission will be viewed by those customers of this
system as another attempt to circumvent the collectively bargained
retirement system for which they have made great sacrifices during
the past 60 years, to preserve, protect and improve. The majority
submission is nothing more than a blatant attempt to circumvent
and/or eliminate many obligations railroad employers now have to
their employees. It glosses over the complexity of the suggested
changes, minimizes the political backlash that will occur should
attempts be made to implement their views, totally disregards the
instability that will be created, and does not adequately address
the unfunded liability question; that liability presently stands at
$37.6 billion. Nor does it adequately emphasize the projected
increase in the Federal deficit, which will amount to $4.6 billion
during the period of fiscal year 1996 through fiscal year 2000.
While it is indeed unfortunate that I must make a separate
submission, we firmly believe that NPR II is an inappropriate forum
to advance purely personal or partisan objectives, and doing so
disregards the Administration's mandate of putting customers first
and promoting efficiency and economy in government. Therefore, I
would be derelict in my duties if I did not provide the
Administration with the unedited views of our agency managers in
response to your assignment. It is important to note that the
agency's managers' submission was prepared without influence or
interference of either labor or management representatives and
represents a non-partisan assessment.
While rail labor would not necessarily agree with all aspects of
this report and its emphasis in certain areas, it does represent a
balanced evaluation of our agency's mission and how that mission
can be accomplished.
Please do not hesitate to contact me if I can provide you with any
further information.
Sincerely,
VM SpeakmanJr
V. M. Speakman, Jr.
Enclosure
Railroad Retirement Board
Option Papers
NPR Phase II
Overview
The Railroad Retirement Board (RRB) is an independent agency in the executive branch of
the Federal Government administering comprehensive retirement, survivor, disability, and
unemployment and sickness benefit programs for the nation's railroad workers and their families,
under the Railroad Retirement and Railroad Unemployment Insurance Acts. In connection with
the retirement program, the RRB has administrative responsibilities under the Social Security Act
for certain benefit payments and railroad workers' Medicare coverage.
During fiscal year 1994, retirement-survivor benefits of almost $8 billion were paid to over
870,000 beneficiaries, while unemployment-sickness benefits of $66 million were paid to over
40,000 claimants. Agency administrative expenses have historically averaged about one percent
of benefit payments.
Origins. The RRB was created by New Deal legislation enacted in the mid-1930's to
consolidate and federalize the nation's private railroad pension plans, which were then far more
developed than pension plans in other industries but had been adversely affected by the Great
Depression. Rail unemployment insurance legislation followed at the end of the decade because
of administrative problems that interstate rail employment caused the new State unemployment
insurance plans.
Organization and Staff.--The RRB is headed by three members appointed by the President
of the United States, with the advice and consent of the Senate. One member is appointed upon
the recommendation of railroad employers, one is appointed upon the recommendation of railroad
labor organizations and the third, who is the Chairman, is appointed to represent the public
interest. Reporting to the Board are the General Counsel, Director of Programs and Director of
Administration. Reporting to them are a total of 20 headquarters bureaus and/or offices. The RRB
currently employs about 1,100 full-time equivalent employees in its Chicago headquarters. A field
office staff of approximately 400 employees in 90 locations throughout the United States provides
direct services to customers. Administrative costs in the current fiscal year are approximately
$94,000,000.
Mission and Goals
The RRB's mission is to administer the retirement/survivor and unemployment/sickness insurance
benefit programs for railroad workers and their families under the Railroad Retirement Act, the Railroad
Retirement Tax Act and the Railroad Unemployment Insurance Act. The RRB also administers some
aspects of the Medicare program for qualified railroad retirement beneficiaries. and has other
administrative responsibilities under the Social Security Act and the Internal Revenue Code.
While the railroad retirement program has remained separate from the social security system, the
two programs are closely coordinated with regard to earnings credits, benefit payments, and taxes.
Legislation enacted in 1974 restructured railroad retirement benefits into two tiers, SO as to coordinate
them more fully with social security benefits. The first tier is based on combined railroad retirement and
social security credits, using social security benefit formulas. The second tier is based on railroad service
only and is comparable to the pensions paid over and above social security benefits in other industries.
The unemployment and sickness benefit program operates independently of the Federal/State systems.
In carrying out its mission, the RRB strives to pay benefits to the right people, in the right amounts,
in a timely manner, treat every person who comes into contact with the agency with courtesy and concern,
and respond to all inquiries promptly, accurately and clearly. The performance goals we plan to meet by
fiscal year 2000 are to:
Meet or exceed the timeliness standards in the RRB's Customer Service Plan
(attached) for processing retirement, survivor and disability annuity payments.
Complete all processing for mass adjustments, such as annual cost-of-living
increases to the retirement, survivor and disability benefit rolls, within 6 months
of the adjustment, and to improve the average time for processing post-award
adjustments.
Maintain the accuracy of retirement, survivor and disability payments above 99.6
percent, and strive for and continuously move toward 100 percent accuracy.
Meet or exceed the standards in the RRB's Customer Service Plan for processing
unemployment and sickness insurance benefits by sending a claim form or making
a decision within 15 days of receiving an application, and paying or making a
decision within 15 days of receiving a subsequent biweekly claim form.
Maintain the accuracy of unemployment and sickness insurance benefit payments
above 99 percent, and strive for and continuously move toward 100 percent
accuracy.
Assessment of Key Functions
Assessment of the key functions for the agency as a whole follows. Assessments of major
programs, individually, are attached. In summary, customer surveys and focus groups have
indicated that these programs are critical to the agency's mission. Customers have been very
satisfied with the service rendered by the agency.
ii
The Railroad Retirement Board recog-
nizes that all its services are financed by
our customers: the railroad workers and
employers. They are entitled to expect
high-quality services, responsive to their
needs, provided efficiently at a reasonable
cost. This has been recognized in the adop-
tion of the following Policy Statement on
U.S. Railroad Retirement Board
Quality:
In carrying out our mission, the Railroad
Retirement Board will strive to pay benefits
Custome
to the right people, in the right amounts, in
a timely manner, treat every person who
comes into contact with the agency with
courtesy and concern, and respond to all
Service
inquiries promptly, accurately, and clearly.
The Railroad Retirement Board will main-
tain a work environment characterized by
teamwork, respect, and a commitment to
Plan
doing the job right the first time.
This Customer Service Plan is centered on
the following principles of public service:
standards, openness, accessibility and
accountability. In arriving at this plan, we
have considered the findings of a customer
satisfaction survey, the results of focus
group research, and the responses received
on point-of-service evaluation forms. This
Customer Service Plan will be published
BOARD RAILROAD * RETIREMENT
nationally and posted in each office of the
RRB in order to communicate these stan-
dards to our customers and to reinforce
U.S.A.
*
them with our employees. There is a clear
presumption that our service will progres-
U.S. Railroad Retirement Board
sively improve as our operations become
844 North Rush Street
more efficient. The plan will be reviewed
Chicago, Illinois 60611-2092
and updated periodically as we gain more
experience with it and as we compare our
RRB Form IB-3
September 1994
service with the best in the private sector.
Decision Tree for the Railroad Retirement Board as a Whole
Programs
The Railroad Retirement Board (RRB) administers the provisions of the Railroad Retirement and Railroad
Unemployment Insurance Acts as well as certain provisions of the Medicare program. It pays retirement
and survivor benefits to railroad employees and their families and unemployment or sickness insurance
benefits to railroad employees only.
Are these programs critical to the agency's mission based on "customer" input?
Yes. History has shown that RRB customers and interest groups are very supportive of the agency and
are keenly aware of and sensitive to any proposed changes to the programs or to service delivery. Railroad
employees consider the railroad retirement system vital to their old age security and have historically
identified the agency with the program. Customer surveys and focus groups show that customers are very
satisfied with the delivery of the programs.
Can the programs be administered as well or better at the State or local level?
No. Some programs could be transferred to other Federal agencies and one program could be transferred
to State agencies. However, there is no evidence that such transfers will result in better service. In some
instances they may result in a deterioration in service from the level currently provided by the RRB. One-
time costs to effect such moves require detailed analyses and input from gaining agencies. Legislation
would be required to make such changes.
Is there any way to cut costs or improve performance by introducing competition?
No. The adjudicative functions performed by the RRB are inherently Government functions and cannot
be contracted out or transferred without legislative authority. At the same time, the RRB has successfully
improved performance and cut costs by competitively letting contracts for other than inherently
Government functions.
How can NPR principles be applied to put customers first, cut red tape and empower employees?
The RRB is aggressively pursuing NPR principles by carrying out its streamlining plans and its
reengineering efforts, by implementing recommendations advanced by an in-house task force to improve
the timeliness and quality of claims processing, and by implementing specific cost saving suggestions.
Customer surveys and focus groups gave high marks to the service provided by the employees of the RRB.
iii
OPTION 1 TERMINATE THE RAILROAD RETIREMENT BOARD
PRO
Eliminate small independent agency from the Federal system.
If programs are privatized, removes Federal Government involvement in
railroad labor/management issues by removing such items from the Federal
sector.
If programs transferred to other agencies, potentially increases service to the
public and reduces administrative overhead to the extent that functions are
transferred to larger agencies that have more resources at their disposal.
Railroad retirement trust fund assets would no longer be invested solely in
Treasury securities.
CON
Over 800,000 beneficiaries are now on the Board's rolls.
If privatized, retirement/survivor program would require Employment
Retirement Income Security Act (ERISA) coverage which would increase
contributions costs over a 30-year period with an initial increase of approximately
50%. Disposition of $13 billion reserve would also be problematic.²
Increase the Federal deficit as the excess of Governmental receipts over mandatory
outlays (projected as $4.6 billion for FY's 1996 to 2000) is removed from the
Federal budget.
Create multiple agencies instead of one for the customers to contact for
information and benefits.
Legislative action would be required to terminate and transfer/privatize major
programs which would be opposed by railroad retirement beneficiaries.
Customer surveys and focus group reports indicate customers are very satisfied
with current service.
Little or no administrative cost savings because these costs are borne almost
entirely by the railroad industry.
(See Footnotes on following page.)
iv
1
Aspects of this concept are addressed in various scenarios presented in the options papers attached.
2 If the railroad retirement system were to be privatized with ERISA coverage, an unfunded actuarial accrued liability estimated
at $37.6 billion under ERISA standards would be created which would need to be amortized. In addition to the normal cost
of 6.46 percent of taxable pay, the unfunded actuarial accrued liability would have to be amortized by level annual payments
over a 30-year period. If this unfunded actuarial accrued liability were to be funded by railroad management and labor, the
current combined railroad retirement tax rate would initially need to be increased from 21 percent to 31 percent. After 30 years
the contribution rate would drop to the 6.46 percent normal cost rate. The unfunded actuarial accrued liability reflects the
amount needed together with future contributions at the normal cost rate to fully fund benefits for current and former
employees.
The costs under ERISA would be higher if plan changes were made to conform to ERISA requirements. For example, (i)
current employees who permanently leave the rail industry with less than 120 months of service forfeit the right to a benefit
based on the employee's own contribution whereas under ERISA this benefit is nonforfeitable; and (ii) currently all employees
are subject to 10 year vesting whereas under ERISA employees not subject to a collective bargaining agreement would be
subject to either 5 year vesting or graded 3 to 7 year vesting.
Further problems with privatization include a (i) significant potential liability to the Pension Benefit Guaranty Corporation,
(ii) difficulty in assessing a withdrawal liability to railroads that choose to withdraw from the plan and (iii) significant resources
may be devoted to cost shifting behavior on the part of of the railroads because of the inability to enforce coverage
determinations.
Under its existing structure, the system's ability to meet its obligations at the current 21 percent tax rate is illustrated in annual
cash flow projections and summarized in the calculation of the actuarial surplus/deficiency based on the following assumptions
over a 75-year period: (1) ERISA standards would not have to be applied (2) the current 21 percent combined
employer/employee contribution rate would continue, and (3) taxes of both current and future employees, as well as other
sources of income to the retirement system. would be used to fund all benefit and administrative costs. Under these
assumptions, the actuarial surplus/deficiency of the railroad retirement system under current law as of September 30. 1994,
would range from a deficiency of $3.0 billion to a surplus of $15.3 billion, depending on the employment assumption used.
Under the moderate employment assumption, there is a surplus of $5.9 billion.
V
Summary Cost Information - Option 1
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
333,359
d/
0
0
d/
Discretionary Budget
Outlays
333,359
d/
0
0
d/
Mandatory
Outlays
11,398,000b
d/
0
0
d/
Governmental
Receipts
12,200,400
d/
0
0
d/
FTE Changes
1,393
d/
0 (-1,335)
0 (-1,146)
d/
a/ Administrative funds include the Limitation on Administration and the Special Management Improvement Fund but
exclude $6.7 million for the Limitation on the Office of Inspector General and an estimated $3.7 million to be
reimbursed by the Health Care Financing Administration (HCFA) for Medicare activities. Funding of administrative
expenses is provided through a transfer of funds from the Railroad Retirement Account (RRA), the Social Security
Equivalent Benefit Account (SSEB), the Railroad Retirement Supplemental Account (RR SUP), and the Railroad
Unemployment Insurance Account (RUIA).
b/ Includes outlays for the RRA, the SSEB, the RR SUP, and the RUIA. SSEB outlays include the repayment of the
financial interchange advances.
c/ Excludes 44 FTE's to be reimbursed by HCFA for Medicare activities.
d/ Undetermined. Presumes termination in FY 1996.
vi
OPTION 2 RESTRUCTURE THE RAILROAD RETIREMENT BOARD3
PRO
Maintain programs that are financially stable and where the costs of the
programs' benefits and administration are borne primarily by the railroad industry
through payroll taxes and where programs are managed efficiently and effectively.
Under existing funding provisions, substantial payroll tax increases are not now
recommended by actuarial valuation.
Maintain agency where customers are very satisfied with service as shown by results
of customer surveys and focus group reports.
Retain program expertise and systems to accomplish mission without interruptions in service to
customers.
Does not increase the Federal deficit as the excess of Government receipts over
mandatory outlays (projected as $4.6 billion for FY's 1996 to 2000) remains in the
Federal budget.
Maintains $13 billion reserve in trust funds held by U.S. Treasury.
CON
Perpetuate small independent agency in the Federal system.
Fail to capitalize on economies of scale offered by transfer of functions to larger
agency.
Maintain historical Federal government involvement in railroad labor/management issues that
may no longer be deemed appropriate.
3
Restructuring the RRB includes carrying out streamlining plans. reengineering efforts. automation plans, cost saving
suggestions, and specific improvements in the timeliness and quality of claims processing. It also involves reducing the
agency-wide staffing level by over 300 additional employees.
vii
Summary Cost Information - Option 2
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
333,359
333,359
314,558
260,957
1,484,389
Discretionary Budget
Outlays
333,359
333,359
314,558
260,957
1,484,389
Mandatory Outlays"
11,398,000
11,398.400
11.550,000
12,050,100
58,592,700
Governmental
Receipts
12,200,400
12,200,400
12,420,900
13,099,600
63,232,900
FTE Changes
1,393
1.393 (0)
1.335 (-58)
1,146 (-247)
6,336 (-629)
a/ Administrative funds include the Limitation on Administration and the Special Management
Improvement Fund but exclude $6.7 million for the Limitation on the Office of Inspector General
and an estimated $3.7 million to be reimbursed by the Health Care Financing Administration
(HCFA) for Medicare activities. Funding of administrative expenses is provided through a transfer
of funds from the Railroad Retirement Account (RRA), the Social Security Equivalent Benefit
Account (SSEB). the Railroad Retirement Supplemental Account (RR SUP), and the Railroad
Unemployment Insurance Account (RUIA).
b/ Includes outlays for the RRA, the SSEB, the RR SUP. and the RUIA. SSEB outlays include the
repayment of the financial interchange advances.
c/ Excludes 44 FTE's to be reimbursed by HCFA for Medicare activities.
viii
Attachment
Decision Tree "A"-- The Retirement/Survivor Benefit Program
Program
The Railroad Retirement Board administers a comprehensive program of retirement and survivor benefits
for eligible railroad workers and their families. In addition, the agency has administrative responsibilities
under the Social Security Act for certain benefit payments.
Is the program critical to the agency's mission based on "customer" input?
Yes. The administration of the retirement-survivor benefit program for eligible railroad workers and their
families is critical to the agency's mission based on customer input through statistical surveys and focus
groups. A second customer group, the rail industry, is, however, uncertain about the agency's program
status. Testimony received by the Commission on Railroad Retirement Reform in 1989 and 1990, from
industry interest groups, expressed a variety of opinions on the structure of the programs the agency
administers. In its Final Report, the Commission considered this "customer" input and recommended the
development of alternative systems for newly hired railroad employees only, and proposed transition rules
to encourage the development of satisfactory individual company and/or multi-employer pension plans
for such new employees. The Commission recommended the continuation of the existing system for
existing railroad employees. Since legislation was never introduced to enact these recommendations, the
remaining decision points are responded to in the context of the existing system.
Can the program be administered as well or better at the State or local level?
No. The railroad retirement program is similar to a multi-employer pension plan. The administration of
a multi-employer private pension plan by a State or local governmental agency is unprecedented. Such
a transfer to the State or local level would involve the development of 50 State agencies created for the
sole purpose of administering a multi-employer private pension plan. In addition, an oversight
bureaucracy would be needed to coordinate financing and to ensure consistency.
Is there any way to cut costs or improve performance by introducing competition?
No. The Deputy General Counsel has determined that the adjudication functions performed under the
Railroad Retirement Act are inherently governmental functions which cannot be transferred or contracted
out without legislative authority. However, certain additional administrative and support functions may
be accomplished through competitive contracting. These alternatives will be considered by the agency's
internal Reengineering Team.
How can NPR principles be applied to put customers first, cut red tape and empower employees?
These principles are being actively pursued along two fronts. A benchmarking study is currently
underway to compare the initial retirement age and service annuity application process to the "best-in-
business" of organizations performing analogous functions. The study team has identified benchmarking
partners and will be conducting site visits during March 1995. A final report, describing the performance
gaps identified with recommendations and action plans to close those gaps, will be issued after the site
visits. A second effort underway is being conducted by an in-house Reengineering Team. This team is
about to begin a review of the entire claims handling process, covering all benefit programs, to determine
whether any Reengineering principles can be applied. The agency has already conducted comprehensive
self analyses in increasing the effectiveness and efficiency of processes. There are action plans in place
to implement recommendations made by a Streamlining Task Force and a Task Force on Timeliness and
Quality. A separate set of recommendations resulting in cost saving initiatives is also being implemented.
2
OPTION A-1 TERMINATE THE RETIREMENT/SURVIVOR BENEFIT PROGRAM
PRO
End Federal involvement in the administration of industrial pension programs
payments in excess of social security equivalent benefits such as non-recompensed
tier 1, tier 2, supplemental annuities, and vested dual benefits.
CON
Over 800,000 retired employees and dependents are now on the Board's rolls, and
current rail employees have been paying for coverage they are counting on for old
age and disability protection.
Tier 1 (Social Security equivalent) benefits would still need to be administered,
most likely as a part of SSA.
Eliminate a program that is financially stable with Federally mandated
withholding taxes and where the costs of the program's benefits and
administration are borne primarily by the railroad industry and its employees.
Existence of $13 billion in trust funds (combined retirement/survivor and
disability).
Increases the Federal deficit as the excess of Governmental receipts over
mandatory outlays (projected as $4.0 billion for FY's 1996 to 2000) is removed from
the Federal budget.
Customer surveys and focus groups demonstrate that the beneficiaries and
workers are very satisfied with current service.
The RRB is aggressively modernizing its automated systems and downsizing.
Terminating retirement/survivor benefits for current beneficiaries and
eliminating the right to future disability benefits for active employees would be
unprecedented and subject to legal challenge.
3
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-1
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
59,842
f/
0
0
f/
Discretionary Budget
Outlays
59,842
f/
0
0
f/
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
894
f/
0 (-851)
0 (-727)
f/
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-1
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
210,500
f/
0
0
f/
Discretionary Budget
Outlays
210,500
f/
0
0
f/
Mandatory Outlays
9,628.700
f/
0
0
f/
Governmental
Receipts
10,360,900
f/
0
0
f/
FTE Changes
4
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-1
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
270,342
f/
0
0
f/
Discretionary Budget
Outlays
270,342
f/
0
0
f/
Mandatory Outlays
9,628,700
f/
0
0
f/
Governmental
Receipts
10,360,900
f/
0
0
f/
FTE Changes
894
f/
0 (-851)
0 (-727)
f/
Development of accurate costs and savings derived would require coordination with SSA to determine
their conversion and on going operational costs, with the Department of the Treasury to determine the
budgetary impact of trust fund transfers from the Federal sector to the private sector, and with industry
representatives to determine the costs of establishing insurance contracts. Taft-Hartley trust funds or
private pension plans.
FOOTNOTES - Option A-1
Administrative funds include the Limitation on Administration and the Special Management
Improvement Fund. Excludes $6.7 million for the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB) and the
Railroad Retirement Supplemental Account (RR SUP).
e/ Represents the funding authority and outlay of vested dual benefit payments.
d/ Includes outlays for the RRA, the SSEB and the RR SUP. SSEB outlays include the repayment
of the financial interchange advances.
e/ Does not reflect the potential Amtrak restructuring. The loss of 5,500 Amtrak employees would
result in a reduction of annual tier 2 payroll taxes to the RRA, with an initial annual reduction of
approximately $40 million.
f/ Undetermined. Presumes termination in FY 1996.
5
OPTION A-2 PRIVATIZE THE RETIREMENT/SURVIVOR BENEFIT PROGRAM
PRO
End Federal involvement in an industrial pension program by privatizing non-social
security equivalent benefits, supplemental annuities, and vested dual benefits either
through contracts with insurance carriers, or the establishment of a private sector Taft-
Hartley trust fund, or individually negotiated private pension plans.
Provide greater leeway in setting the administrative budget and determining
internal operations by converting the RRB to a private sector corporation, or
quasi-governmental corporation, to administer the non-social security equivalent
benefits, supplemental annuities, and vested dual benefits.
CON
Without Federally mandated payroll tax contributions, the system could no longer be
funded on a modified pay-as-you-go basis. ERISA protection would likely require increased
employer and employee contributions. Privatizing the system's $13 billion (combined
retirement/survivor and disability programs) would present equity problems.
Increase the Federal deficit as the excess of governmental receipts over mandatory
outlays (projected as $4.0 billion for FY's 1996 to 2000) is removed from the
Federal budget.
One-time costs will be incurred for the privatization and transfer of functions.
Without rail labor and management concurrence on privatization. enabling legislation and proper
funding would be difficult to achieve.
Costs to administer current systems are very low in comparison to benefits paid and are borne
primarily by the railroad industry through payroll taxes.
System is very complex.
Customer surveys and focus groups show that beneficiary and employee customers are very
satisfied with current service.
Tier 1 (Social Security equivalent) benefits would still need to be administered, most likely as a
part of SSA.
6
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-2
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
59,842
f/
0
0
f/
Discretionary Budget
Outlays
59,842
f/
0
0
f/
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
894
f/
0 (-885)
0 (-762)
f/
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-2
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
210,500
f/
0
0
f/
Discretionary Budget
Outlays
210,500
f/
0
0
f/
Mandatory Outlays"
9,628,700
f/
0
0
f/
Governmental
Receipts
10,360,900
f/
0
0
f/
FTE Changes
7
Summary Cost Information - - Retirement/Survivor Benefit Program - - Option A-2
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
270,342
f/
0
0
f/
Discretionary Budget
Outlays
270,342
f/
0
0
f/
Mandatory Outlays
9,628,700
f/
0
0
f/
Governmental
Receipts
10,360,900
f/
0
0
f/
FTE Changes
894
f/
0 (-851)
0 (-727)
f/
FOOTNOTES - Option A-2
a/ Administrative funds include the Limitation on Administration and the Special Management
Improvement Fund. Excludes $6.7 million for the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB) and the
Railroad Retirement Supplemental Account (RR SUP).
c/ Represents the funding authority and outlay of vested dual benefit payments.
d/ Includes outlays for the RRA, the SSEB and the RR SUP. SSEB outlays include the repayment
of the financial interchange advances.
e/ Does not reflect the potential Amtrak restructuring. The loss of 5,500 Amtrak employees would
result in a reduction of annual tier 2 payroll taxes to the RRA. with an initial annual reduction of
approximately $40 million.
f/ Undetermined. Presumes privatization in FY 1996.
8
OPTION A-3 TRANSFER RETIREMENT/SURVIVOR BENEFIT PROGRAM TO THE
SOCIAL SECURITY ADMINISTRATION
PRO
Reduce overhead and coordination costs and provide increased service by
transferring social security equivalent benefit functions to SSA to be administered as part
of Title II.
Provide increased service --more field office locations, more resources to draw from-- by
transferring the unrecompensed tier 1, tier 2, supplemental annuity and vested dual benefit
entitlements to SSA to be administered as a separate program, similar to the Black Lung
program.
Reduce overhead --and improve coordination-- by combining the RRB with SSA as a
Program Service Center for the administration of the unique benefit provisions of the
Railroad Retirement Act.
CON
One-time costs will be incurred for transfer of functions and systems to SSA.
The retirement/survivor benefit system is very complex.
Without rail labor and management agreement to seek enabling legislation enactment
would be difficult to achieve.
Costs to administer the retirement/survivor benefit delivery system are very low when
compared to benefits paid.
Customer surveys and focus groups indicate that the beneficiary and employee
customers are very satisfied with the program.
9
Summary Cost Information - - Retirement/Survivor Benefit Program - Option A-3
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
59,842
e/
0
0
e/
Discretionary Budget
Outlays
59,842
e/
0
0
e/
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
894
e/
0
0
e/
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-3
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
210,500
e/
0
0
e/
Discretionary Budget
Outlays
210,500
e/
0
0
e/
Mandatory Outlays
9,628.700
e/
0
0
e/
Governmental
Receipts
10,360.900
e/
0
0
e/
FTE Changes
10
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-3
Trust and Administrative Fund Receipts and Expenditures"
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
270,342
0
0
e/
Discretionary Budget
Outlays
270,342
e/
0
0
e/
Mandatory Outlays
9,628,700
e/
0
0
e/
Governmental
Receipts
10,360,900
e/
0
0
e/
FTE Changes
894
e/
0 (-851)
0 (-727)
e/
Based on information developed by the Commission on Railroad Retirement Reform in 1990 and
information provided by SSA to that Commission, SSA estimated that the first-year conversion costs for
the social security equivalent benefits would range from 1,000 to 1,800 workyears or $32.5 million to
$56.5 million. SSA has also estimated that, on an ongoing basis, the processing of railroad retirement
beneficiary claims would require 300 to 600 full-time employees; this would increase its administrative
costs by $9 million to $18 million annually. Its administrative costs would, however, be offset by the
administrative transfers made by SSA in the financial interchange.
FOOTNOTES - Option A-3
a/ Administrative funds include the Limitation on Administration and the Special Management
Improvement Fund. Excludes $6.7 million for the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB) and the
Railroad Retirement Supplemental Account (RR SUP).
c/ Represents the funding authority and outlay of vested dual benefit payments.
d/ Includes outlays for the RRA, the SSEB and the RR SUP. SSEB outlays include the repayment
of the financial interchange advances.
e/ Undetermined. Presumes transferred in FY 1996.
11
OPTION A-4 MAJOR RESTRUCTURING OF THE RETIREMENT/SURVIVOR
BENEFIT PROGRAM
PRO
Savings will accrue over time as both personnel and overhead are significantly
reduced.
Customer needs are better served through the more efficient and effective use of
personnel, systems, and equipment.
CON
Automation programs will require long-term commitment of resources.
Continued separate retirement/survivor system for railroad employees operated by a
Federal agency.
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-4
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
59,842
59,842
57,957
54,372
284,500
Discretionary Budget
Outlays
59,842
59,842
57,957
54,372
284,500
Mandatory Outlaysb
Governmental
Receipts
FTE Changes
894
894 (0)
886 (-8)
762 (-132)
4,175 (-295)
12
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-4
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
210,500
210,500
196,100
153,000
908,500
Discretionary Budget
Outlays
210,500
210,500
196,100
153,000
908,500
Mandatory
Outlays
9,628,700
9,628,700
9,758,600
10,181,500
49,504,200
Governmental
Receipts
10,360,900
10,360,900
10,541,200
11,056,000
53,503.900
FTE Changes
Summary Cost Information - Retirement/Survivor Benefit Program - Option A-4
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
270,342
270,342
254,057
207,372
1,193,000
Discretionary Budget
Outlays
270,342
270,342
254,057
207,372
1,193,000
Mandatory Outlays
9,628,700
9,628,700
9,758,600
10,181,500
49,504,200
Governmental
Receipts
10,360,900
10,360,900
10,541,200
11,056,000
53,503.900
FTE Changes
894
894
851 (-43)
727 (-167)
4.036 (-434)
13
FOOTNOTES - Option A-4
a/ Administrative funds include the Limitation on Administration and the Special Management
Improvement Fund. Excludes $6.7 million for the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB) and the
Railroad Retirement Supplemental Account (RR SUP).
c/ Represents the funding authority and outlay of vested dual benefit payments.
d/ Includes outlays for the RRA, the SSEB and the RR SUP. SSEB outlays include the repayment
of the financial interchange advances.
e/ Does not reflect the potential Amtrak restructuring. The loss of 5,500 Amtrak employees would
result in a reduction of annual tier 2 payroll taxes to the RRA, with an initial annual reduction of
approximately $40 million.
14
Decision Tree "B"-- The Disability Benefit Program
Program
The RRB administers a program of disability benefits for eligible railroad workers and their families.
Active railroad employees, and their surviving spouses and children, are eligible for a disability annuity
based on a finding of total and permanent disability from all employment, using similar eligibility
requirements as found under the Social Security Act. Also, if the eligibility requirements are met, railroad
occupational disabilities can be awarded to employees.
Is the program critical to the agency's mission based on "customer" input?
Yes. The administration of the disability benefit program for eligible railroad workers and their families
is critical to the agency's mission based on customer input through statistical surveys and focus groups.
Carrier input is undetermined but testimony received by the Commission on Railroad Retirement Reform
in 1989 and 1990, from certain industry interest groups, expressed an opinion on the structure of the
occupational disability program. In its Final Report, the Commission considered this "customer" input
and recommended that the occupational disability annuity provisions of the Railroad Retirement Act be
amended to limit the duration for receipt of such benefits to 24 months. The Commission Chairman
dissented because of the number of years the benefits have been in effect and because he felt they were
appropriate for this type of program. The Commission did not recommend any changes in the Federal
administration of the modified benefit. Since legislation was never introduced to enact this
recommendation, and no change had been recommended concerning the administration of the disability
program, the remaining decision points are responded to in the context of the existing system.
Can the program be administered as well or better at the State or local level?
No. The railroad retirement program is similar to a multi-employer pension plan. The administration of
a multi-employer private pension plan by a State or local governmental agency is unprecedented. Such
a transfer to the State or local level would involve the development of 50 State agencies created for the
sole purpose of administering a multi-employer private pension plan. In addition, an oversight
bureaucracy would be needed to coordinate financing and to ensure consistency. Under some options,
State agencies could be used in a limited capacity to make disability determinations.
15
Is there any way to cut costs or improve performance by introducing competition?
No. The RRB's Deputy General Counsel has determined that the adjudication functions performed under
the Railroad Retirement Act are inherently governmental functions which cannot be transferred or
contracted out without legislative authority. However. certain administrative and support functions may
be accomplished through competitive contracting. For example, the RRB recently awarded a nationwide
contract to a private firm to perform medical examinations and submit reports adhering to contract-
mandated requirements. Competitively bidding this function has improved performance while containing
costs.
How can NPR principles be applied to put customers first, cut red tape and empower employees?
SSA recently completed a Reengineering study of its disability program. The Bureau of Disability and
Medicare Operations is reviewing that study to determine whether any recommendations are applicable
to the RRB. A second effort underway is being conducted by an in-house Reengineering Team. This team
is about to begin a review of the entire claims handling process, covering all benefit programs, to
determine whether any Reengineering principles can be applied.
Additionally, the RRB recently awarded a contract to a private firm to perform medical examinations and
submit reports following strict guidelines within a contract-mandated time frame. The examinations
covered under this nationwide contract are performed at a pre-determined cost, effective for the life of the
contract. The quality, timeliness and cost containment features of this contract have resulted in real
administrative gains.
Emphasis continues to be placed on implementing paperless on-line systems and fully utilizing available
technologies to control and track the workload to ensure the right work is getting done in the right order.
These advances, coupled with the previously mentioned contract, have empowered employees to approve
or withhold payment for services rendered based on their quality review of the examination report. This
puts more decision making at the employee level while ensuring a high quality product.
16
OPTION B-1 TERMINATE THE DISABILITY BENEFIT PROGRAM
PRO
RRB would realize an annual reduction of 50 FTE's and $2 million
in contract costs.
CON
Eliminates a program that is financially solvent and where the costs of the program's
benefits and administration are borne primarily by the railroad industry through payroll
taxes.
Terminating disability benefits for current beneficiaries and eliminating the right to
future disability benefits for active employees would be unprecedented and subject to
legal challenge.
Increase the Federal deficit as the excess of governmental receipts over mandatory
outlays (projected as $585 million for FY 1996 to 2000) is removed from the Federal
budget.
Customer surveys and focus groups show that the customers are very satisfied with the
current program.
Summary Cost Information - Disability Benefit Program - Option B-1
Administrative Receipts and Expendituresᵇ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
13,968
f/
()
0
f/
Discretionary Budget
Outlays
13,968
f/
0
0
f/
Mandatory Outlays
Governmental
Receipts
FTE Changes
208
f/
0 (-207)
0 (-179)
f/
17
Summary Cost Information - Disability Benefit Program - Option B-1
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
29,500
f/
0
0
f/
Discretionary Budget
Outlays
29,500
f/
0
0
f/
Mandatory Outlays
1,700,400
f/
0
0
f/
Governmental
Receipts
1,806,700
f/
0
0
f/
FTE Changes
Summary Cost Information - Disability Benefit Program - Option B-1
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary Budget
Authority
43,468
f/
0
0
f/
Discretionary Budget
Outlays
43,468
f/
0
0
f/
Mandatory Outlays
1,700.400
f/
0
0
f/
Governmental
Receipts
1,806,700
f/
0
0
f/
FTE Changes
208
0 (-199)
0 (-171)
f/
Since the work must be performed somewhere. there are undetermined "savings" associated with
eliminating the program. Savings, however, may result from handling of the work through other
means as identified in Option B-2.
18
FOOTNOTES - Option B-1
a/ Includes disabled employees and survivors, regardless of age.
b/ Administrative funds include the Limitation on Administration. Excludes $6.7 million
for the Limitation on the Office of Inspector General.
c/ Funding of administrative expenses provided through a transfer of funds from the
Railroad Retirement Account (RRA), the Social Security Equivalent Benefit Account
(SSEB) and the Railroad Retirement Supplemental Account (RR SUP).
d/ Represents the funding authority and outlay of vested dual benefit payments.
e/ Includes outlays for the RRA, the SSEB, and the RR SUP. SSEB outlays include the
repayment of the financial interchange advances.
f/ Undetermined. Presumes termination in FY 1996.
19
OPTION B- 2 TRANSFER PORTIONS OR ALL OF THE DISABILITY BENEFIT
PROGRAM TO THE SOCIAL SECURITY ADMINISTRATION (SSA)
PRO
Reduces number of Federal agencies involved in administering disability
retirement benefits by transferring the tier 1 portion of the total and
permanent disability annuity provisions for employees and survivors to the
SSA to be administered as part of Title II only, resulting in undetermined
FTE and contract savings, or
Reduces number of Federal agencies involved in administering disability
retirement benefits by transferring the tier 1 and tier 2 (and unrecompensed
tier 1) portions of the total and permanent disability annuity provisions to
SSA, together with the occupational disability provisions, to be administered
as a separate program, similar to the Black Lung program, resulting in
undetermined FTE and contract savings, or
Reduces government overhead costs by combining the RRB with SSA as a
Program Service Center for the administration of the unique provisions of
the Railroad Retirement Act.
Increases coordination in the payment of benefits.
Increases coordination of disability determinations.
CON
Eliminates a program that is financially solvent and where the costs of the
program's benefits and administration are borne primarily by the railroad
industry through payroll taxes.
Customer surveys and focus groups show that the customers are very
satisfied with the current program.
Requires legislative change.
For presentation purposes, transfer of the entire disability program is considered.
20
Summary Cost Information - Disability Benefit Program - Option B-2
Administrative Receipts and Expendituresᵇ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
13,968
f/
0
0
f/
Discretionary
Budget Outlays
13,968
f/
0
0
f/
Mandatory Outlays
Governmental
Receipts
FTE Changes
208
f/
0 (-199)
0 (-171)
f/
Summary Cost Information - Disability Benefit Program - Option B-2
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
29,500
f/
0
0
f/
Discretionary
Budget Outlays
29,500
f/
0
0
f/
Mandatory Outlays
1,700,400
f/
0
0
f/
Governmental
Receipts
1,806,700
f/
0
0
f/
FTE Changes
21
Summary Cost Information - Disability Benefit Program - Option B-2
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
43,468
f/
0
0
f/
Discretionary
Budget Outlays
43,468
f/
0
0
f/
Mandatory
Outlays
1,700,400
f/
0
0
f/
Governmental
Receipts
1,806,700
f/
0
0
f/
FTE Changes
208
f/
0 (-199)
0 (-171)
f/
Cost/saving estimates would require coordination with SSA to determine its conversion and on-
going operational costs and with the Department of the Treasury to determine the budgetary impact
of trust fund transfers from the RRB to SSA.
FOOTNOTES - Option B-2
a/ Includes disabled employees and survivors, regardless of age.
b/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
c/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB), and the
Railroad Retirement Supplemental Account (RR SUP).
d/ Represents the funding authority and outlays of vested dual benefit payments.
e/ Includes outlays for the RRA, the SSEB, and the RR SUP. SSEB outlays include the repayment
of the financial interchange advances.
f/ Undetermined. Presumes transfer in FY 1996.
22
OPTION B-3 PRIVATIZE PORTIONS OF THE DISABILITY BENEFIT PROGRAM
PRO
Reduces government overhead costs by converting the RRB to a private sector, or
quasi-government corporation, to administer the occupational disability annuity
program, or
Reduces RRB involvement in the disability retirement program by requiring the
railroad industry (management and labor) to establish a method to administer the
occupational disability provisions, either through contracts with insurance
carriers, establishment of a private sector Taft-Hartley trust fund, or privately
negotiated plans, or
Reduces RRB involvement (and FTE's and overhead) in administering disability
retirement benefits by amending the Railroad Retirement Act to allow the RRB to
use the same State agencies used by SSA for the determination of total and
permanent disability.
CON
Privatizes a program that is financially solvent and where the costs of the
program's benefits and administration are borne primarily by the railroad
industry through payroll taxes.
Customer surveys and focus groups show that the customers are very satisfied with
the program.
Requires legislation.
Increases coordination and potential contract costs in dealing with State agencies.
Increases the Federal deficit as the excess of governmental receipts over mandatory
outlays (projected as $585 million for FY 1996 to 2000) is removed from the
Federal budget.
For presentation purposes, privatization of the entire disability program is considered.
23
Summary Cost Information - Disability Benefit Program - Option B-3
Administrative Receipts and Expendituresᵇ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
13,968
f/
0
0
f/
Discretionary
Budget Outlays
13,968
f/
0
0
f/
Mandatory Outlays
Governmental
Receipts
FTE Changes
208
f/
0 (-199)
0 (-171)
f/
Summary Cost Information - Disability Benefit Program - Option B-3
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
29,500
f/
0
0
f/
Discretionary
Budget Outlaysd
29,500
f/
0
0
f/
Mandatory
Outlays
1,700,400
f/
0
0
f/
Governmental
Receipts
1,806,700
f/
0
0
f/
FTE Changes
24
Summary Cost Information - Disability Benefit Program - Option B-3
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
43,468
f/
0
0
f/
Discretionary
Budget Outlays
43,468
f/
0
0
f/
Mandatory
Outlays
1,700,400
f/
0
0
f/
Governmental
Receipts
1,806,700
f/
0
0
f/
FTE Changes
208
f/
0 (-199)
0 (-171)
f/
FOOTNOTES - Option B-3
a/ Includes disabled employees and survivors, regardless of age.
b/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
c/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB) and the
Railroad Retirement Supplemental Account (RR SUP).
d/ Represents the funding authority and outlay of vested dual benefit payments.
e/ Includes outlays for the RRA, the SSEB, and the RR SUP. SSEB outlays include the repayment
of the financial interchange advances.
f/ Undetermined. Presumes privatization in FY 1996.
25
OPTION B-4 RESTRUCTURE THE DISABILITY BENEFIT PROGRAM
PRO
Customer surveys and focus groups show that the customers are very satisfied with
the current program.
RRB will continue to realize greater internal administrative efficiencies through
use of on-line applications.
Administrative costs will continue to be controlled as a result of a recently awarded
contract with a private firm. This contract requires medical examination reports
to be of high quality and submitted timely at a pre-determined cost level for the life
of the contract. This unique, nationwide contract has improved service while
containing costs.
CON
Continuation of a separate disability benefit program administered by a small
independent Federal agency.
Summary Cost Information - Disability Benefit Program - Option B-4
Administrative Receipts and Expendituresᵇ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
13,968
13,968
13,584
12,744
66,624
Discretionary
Budget Outlays
13,968
13,968
13,584
12,744
66,624
Mandatory Outlays
Governmental
Receipts
FTE Changes
208
208 (0)
199 (-9)
171 (-37)
943(-97)
26
Summary Cost Information - Disability Benefit Program - Option B-4
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
29,500
29,500
27,900
23,000
131,500
Discretionary
Budget Outlays
29,500
29,500
27,900
23,000
131,500
Mandatory Outlays
1,700,400
1,700,400
1,723,700
1,798,800
8,744,200
Governmental
Receipts
1,806,700
1,806,700
1,838,700
1,928,000
9,329,400
FTE Changes
Summary Cost Information - Disability Benefit Program - Option B-4
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
43,468
43,468
41,484
35,744
198,124
Discretionary
Budget Outlays
43,468
43,468
41,484
35,744
198,124
Mandatory
Outlays
1,700,400
1,700,400
1,723,700
1,798,800
8,744,200
Governmental
Receipts
1,806,700
1,806,700
1,838,700
1,928,000
9,329,400
FTE Changes
208
208 (0)
199(-9)
171 (-37)
943 (-97)
RRB would continue to realize savings through increased efficiency in the administration of the
disability benefit program. These include cost containment in the area of developing medical
evidence and the increased use of on-line applications.
27
FOOTNOTES - Option B-4
a/ Includes disabled employees and survivors, regardless of age.
b/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
c/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA), the Social Security Equivalent Benefit Account (SSEB) and the
Railroad Retirement Supplemental Account (RR SUP). Excludes 44 FTE's to be reimbursed
by HCFA for Medicare activities.
d/ Represents the funding authority and outlay of vested dual benefit payments.
e/ Includes outlays for the RRA, the SSEB and the RR SUP. SSEB outlays include the
repayment of the financial interchange advances.
28
Decision Tree "C" --The RRB Medicare Program
Program
The Medicare program, as administered by the RRB for qualified railroad retirement beneficiaries,
includes entitlement determinations, enrollments, disenrollments, premium collection, inquiry
responses, records maintenance, coordination with the Health Care Financing Administration
(HCFA) and SSA, and contracting with a Medicare carrier.
Is this program critical to the agency's mission based on "customer" input?
Yes. The administration of the Medicare program for qualified railroad retirement beneficiaries
is critical to the agency's mission based on customer input as well as customer needs and
satisfaction. History has shown that RRB beneficiaries and interest groups are keenly aware of, and
sensitive to, proposed changes relating to the Medicare program and those concerns are effectively
communicated to the RRB.
Can the program be administered as well or better at the State or local level?
No. Applying Medicare premium deductions is an integral and essential part of the benefit payment
and adjudication function. Separating this phase of the overall adjudication process would result
in processing inefficiencies, lower overall quality, erroneous payments and poorer customer service.
Duplicative administrative oversight and added bureaucracy would be needed to effect proper
coordination with HCFA.
The current high level of administrative efficiency and customer satisfaction is due in large part to
the highly centralized administration of the Medicare program and the coordination of this program
with the other Railroad Retirement Act (RRA) programs. Separating these inherently Government
functions would negatively impact the effective administration of all RRA programs and the high
levels of service currently being provided to our customers.
Is there any way to cut costs or improve performance by introducing competition?
No. The RRB's Bureau of Law has determined that the adjudication functions performed under
the RRA, including the collection of Medicare premiums, are inherently Government functions and
cannot be transferred or contracted out without legislative authority. In FY 1992, we competed the
Medicare carrier's contract which resulted in improved service and savings. We will continue to
look for opportunities to improve our operations and customer service.
How can NPR principles be applied to put customers first, cut red tape and empower employees?
The RRB will continue to reinvent its Medicare operations by aggressively utilizing technology and
streamlining the adjudicative process. We have recently implemented one new major on-line system
and we are in the process of developing another.
29
OPTION C-1 TERMINATE RRB MEDICARE INVOLVEMENT
PRO
RRB would realize an annual reduction of about 70 FTE's.'
RRB beneficiaries would be treated the same as other Medicare beneficiaries.
CON
Beneficiaries would no longer receive annuity benefits and Medicare from the same
agency. They would have to deal with another agency for their Medicare.
HCFA costs would increase as they would serve a larger number of beneficiaries.
Since Medicare premiums would no longer be deducted from railroad retirement
annuities, direct billing would have to be instituted for those annuitants not entitled
to social security benefits. This will increase the costs for the agency handling
Medicare.
Canadian hospital insurance claims are currently paid for out of the Railroad
Retirement Account. Different reimbursement and processing systems would need
to be established by HCFA, SSA or some other entity.
Legislative change would be required.
Summary Cost Information - Medicare Program - Option C-1
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
1,916
d/
0
0
d/
Discretionary
Budget Outlays
1,916
d/
0
0
d/
Mandatory Outlays
Governmental
Receiptsᵇ
FTE Changes
25
d/
(-24)
(-23)
d/
30
FOOTNOTES - Option C-1
a/ Administrative funds include the Limitation on Administration. Excludes an estimated $3.7
million to be reimbursed by the Health Care Financing Administration (HCFA) for Medicare
activities.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA) and the Social Security Equivalent Benefit Account (SSEB).
c/ Excludes 44 FTE's to be reimbursed by HCFA for Medicare activities.
d/ Undetermined. Presumes termination in FY 1996.
31
OPTION C-2 TRANSFER RRB MEDICARE CARRIER ACTIVITIES TO HEALTH CARE
FINANCING ADMINISTRATION (HCFA)
PRO
Potential cost savings have been presented previously. In 1979, the GAO estimated
that $6.6 million could be saved because of the lower processing costs of the HCFA
carriers. In 1984, GAO estimated that about $7 million could be saved in 1983. In
1990, the Department of Health and Human Services (HHS) Office of Inspector
General (OIG) estimated that annual savings of $9.1 million would be achieved.
However, in 1991 the RRB OIG estimated that the savings estimate of $9.1 million
would not be achieved because of unlikely predictions, obsolete cost differentials and
incorrect assumptions.
RRB would realize savings of approximately 2 FTE's because contract oversight
would no longer be necessary.
CON
Potential increased costs to the Federal government because the FY 1994 RRB
carrier total unit cost is $1.49 versus the national average of $1.66.
Potential increase in FTE's needed to respond to inquiries or complaints because of
the involvement of 29 separate Medicare carriers instead of the current one.
Customer service will be negatively impacted.
Problem resolution negatively impacted by dealing with 29 carriers;
Contrary to high levels of satisfaction expressed in customer survey and
focus groups; and
Disparate handling of Medicare claims because HCFA area carriers apply
different medical review standards to claims.
Loss of sole source accountability because 29 carriers will process claims.
Loss of carrier performance evaluation as it pertains directly to RRB beneficiaries
because the RRB would not have the resources to evaluate 29 carriers and RRB
beneficiary claims would not be separately identified.
Legislative change would be required.
32
Summary Cost Information - Medicare Program - Option C-2
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
1,916
1,812
1,707
1,595
8,418
Discretionary
Budget Outlays
1,916
1,812
1,707
1,595
8,418
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
25
23(-2).
22(-3)
21(-4)
110(-15)
GAO and the HHS-OIG have estimated annual administrative savings of $6.6 million to $9.1
million. These estimates have been criticized by the RRB-OIG as being too high. We estimate that
since October 1987, the RRB carrier has saved the Federal government $32 million in benefit
payments because of historically higher payment accuracy rates than the national average of all area
carriers.
FOOTNOTES - Option C-2
a/ Administrative funds include the Limitation on Administration.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA) and the Social Security Equivalent Benefit Account (SSEB).
33
OPTION C-3 RESTRUCTURE THE RRB MEDICARE PROGRAM
PRO
Continued high levels of service and customer satisfaction.
Continued sole source accountability.
Focused contract oversight.
Claims processing consistency.
Meets customer requirements.
Close, effective coordination between Medicare program and other RRA
retirement/survivor programs.
Internal streamlining - continued automation of record corrections and of
exception referral control.
No legislative change required.
CON
Continued involvement of RRB in the Medicare program.
Summary Cost Information - Medicare Program - Option C-3
Administrative Receipts and Expenditures"
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
1,916
1,916
1,811
1,699
8,936
Discretionary
Budget Outlays
1,916
1,916
1,811
1,699
8,936
Mandatory
Outlays
Governmental
Receipts"
FTE Changes
25
25 (0)
24(-1)
23(-2)
120(-5)
34
FOOTNOTES - Option C-3
a/ Administrative funds include the Limitation on Administration. Excludes an estimated $3.7
million to be reimbursed by the Health Care Financing Administration (HCFA) for Medicare
activities.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Retirement Account (RRA) and the Social Security Equivalent Benefit Account (SSEB).
c/ Excludes 44 FTE's to be reimbursed by HCFA for Medicare activities.
35
Decision Tree "D" -- the Administration of the
Railroad Unemployment Insurance Program
Program
The railroad unemployment insurance program is provided under the Railroad Unemployment
Insurance Act (RUIA). The Act provides for the payment of bi-weekly benefits to qualified railroad
employees who are unemployed, but able to work and available for work.
Is this critical to the agency's mission based on "customer" input?
Yes. In addition to being statutorily mandated under the RUIA, the railroad unemployment
insurance program is supported by the RRB's customers - railroad labor and railroad management.
Results of surveys and focus groups conducted during fiscal year 1994 indicate a high degree of
satisfaction with the agency's administration of the program.
Can it be done as well or better at the State or local level?
No. Proposals to transfer the railroad unemployment insurance program to the State systems were
considered and discussed on several occasions in the past. The most thorough review of the
advantages and disadvantages of such a proposal was conducted in 1984 by the Railroad
Unemployment Compensation Committee, a committee established by the Railroad Retirement
Solvency Act of 1983 to review all aspects of the unemployment and sickness benefit system. The
members of the committee included two representatives from railroad labor, two representatives
of railroad management and a public member. In its report, the committee favored maintaining an
independent railroad unemployment insurance system.
The Congressional Research Service also provided a report for Congress in October 1993, entitled,
"Railroad Retirement Board: Background and Analysis of Issues Raised by Proposals to End
Federal Administration." The report identifies the various impediments to ending Federal
administration of railroad employee benefits. Such impediments include the fact that the railroad
unemployment insurance program is designed as a daily benefit, which is consistent with the
industry's intermittent employment practices, whereas State programs are based on unemployment
measured by weeks instead of days. In addition, the costs of the programs' benefits and
administration are borne by the railroad industry through payroll taxes; transfer of the program
to the States would not save money for the taxpayers.
36
Is there any way to cut costs or improve performance by introducing competition?
Introducing competition would not cut costs or improve performance.
If not, how can NPR principles be applied to put customers first, cut red tape, and empower
employees?
During fiscal year 1994, customer satisfaction surveys and focus groups were conducted and a
customer service plan was developed. Performance is tracked against customer service standards
and actions are taken to improve performance, when necessary. Action plans have been developed
to improve quality and timeliness and implement cost-saving concepts. In addition, reengineering
efforts are underway as part of the agency's streamlining plan to improve operations.
37
OPTION D-1 TRANSFER THE UNEMPLOYMENT INSURANCE PROGRAM TO THE
DEPARTMENT OF LABOR/STATE SYSTEM
PRO
Claimants residing in some States would receive a higher weekly benefit under the
State systems compared to benefits currently payable under the RUIA.
The State systems have either no waiting period or a 1-week waiting period
compared to the 2-week waiting period currently required under the RUIA.
RRB involvement would be eliminated. The rail industry would be treated the
same as other industries.
CON
Eliminates a program that is financially solvent and where the costs of the
program's benefits and administration are borne solely by the railroad industry
through payroll taxes.
Terminates a long established and coordinated program which is designed as a
daily benefit, consistent with the industry's intermittent employment practices,
whereas State programs are based on unemployment measured by weeks instead
of days.
Eliminates the consistent treatment of railroads and their employees. Coverage by
State programs would result in different benefit levels, eligibility criteria, etc. based
on State of residence.
Creates the potential for dual taxation of railroads during a transition period.
Railroad employers would, in all likelihood, experience increased tax liability under
the State systems.
Railroads operating in more than one State would have to comply with applicable
requirements of the unemployment programs in each of the States. This would result in a
greater administrative burden than currently exists with a single system.
Eliminates the possibility of making future legislative changes to the unemployment
system based on changing conditions in the railroad industry.
Transfer is not favored by the agency's customers.
Legislative action would be required.
38
Summary Cost Information - - Unemployment Insurance Program - Option D-1
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
10,073
d/
0
0
d/
Discretionary
Budget Outlays
10,073
d/
0
0
d/
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
152
d/
0 (-149)
0 (-130)
d/
Summary Cost Information - Unemployment Insurance Program - Option D-1
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
Discretionary
Budget Outlays
Mandatory Outlays
44,500
d/
0
0
d/
Governmental
Receipts
21,200
d/
0
0
d/
FTE Changes
39
Summary Cost Information - Unemployment Insurance Program - Option D-1
Trust and Administrative Fund Receipts and Expenditures"
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
10,073
d/
0
0
d/
Discretionary
Budget Outlays
10,073
d/
0
0
d/
Mandatory Outlays
44,500
d/
0
0
d/
Governmental
Receipts
21,200
d/
0
0
d/
FTE Changes
152
d/
0 (-149)
0 (-130)
d/
FOOTNOTES - Option D-1
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 unemployment benefit
estimate is $78.6 million.
40
OPTION D-2 PRIVATIZE/FRANCHISE THE UNEMPLOYMENT INSURANCE
PROGRAM
PRO
Federal government involvement would be eliminated or reduced.
Employer/employee representatives would be free to negotiate changes in benefit
programs without regard to Federal/State legislation.
CON
Railroad workers would be a singular employee occupational group without
Federal/State unemployment insurance.
A suitable private industry provider must be obtained.
Legislative change would be required. If RUIA is repealed, an exemption from
State law would be required.
Railroads may pay higher costs because administration would be performed by a
profit-based entity.
Ability to detect and prevent fraudulent benefit claims would be reduced.
Opportunities/sources available to Federal agencies for recovery of overpayments
could not be used.
Customer surveys and focus groups indicate a high level of satisfaction with the
existing program.
41
Summary Cost Information - Unemployment Insurance Program - - Option D-2
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
10,073
d/
0
0
d/
Discretionary
Budget Outlays
10,073
d/
0
0
d/
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
152
d/
0 (-149)
0 (-130)
d/
Summary Cost Information - Unemployment Insurance Program Option D-2
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
Discretionary
Budget Outlays
Mandatory Outlays
44,500
d/
0
0
d/
Governmental
Receipts
21,200
d/
0
0
d/
FTE Changes
42
Summary Cost Information - Unemployment Insurance Program - Option D-2
Trust and Administrative Fund Receipts and Expenditures"
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
10,073
d/
0
0
d/
Discretionary
Budget Outlays
10,073
d/
0
0
d/
Mandatory Outlays
44,500
d/
0
0
d/
Governmental
Receipt
21,200
d/
0
0
d/
FTE Changes
152
d/
0 (-149)
0 (-130)
d/
FOOTNOTES - Option D-2
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 unemployment benefit
estimate is $78.6 million.
43
OPTION D-3 RESTRUCTURE THE CURRENT UNEMPLOYMENT INSURANCE
PROGRAM
PRO
Maintains a financially solvent system with no cost to individual taxpayers.
Continued high levels of service and customer satisfaction.
No legislative change required.
Customers support continuing the existing program.
Maintains a system which is responsive to conditions in the railroad industry.
No additional costs incurred for transition to alternate program.
Administrative costs and staffing have been reduced while program performance
has improved.
CON
Federal government involvement is still required.
44
Summary Cost Information - Unemployment Insurance Program - Option D-3
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
10,073
10,073
9,961
9,345
48,686
Discretionary
Budget Outlays
10,073
10,073
9,961
9,345
48,686
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
152
152 (0)
149 (-3)
130 (-22)
710 (-50)
Summary Cost Information - Unemployment Insurance Program - Option D-3
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
Discretionary
Budget Outlays
Mandatory Outlays
44,500
44,500
43,700
45,000
222,200
Governmental
Receipts
21,200
21,200
26,500
74,500
257,900
FTE Changes
45
Summary Cost Information - Unemployment Insurance Program - Option D-3
Trust and Administrative Fund Receipts and Expenditures"
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
10,073
10,073
9,961
9,345
48,686
Discretionary
Budget Outlays
10,073
10,073
9,961
9,345
48,686
Mandatory Outlays
44,500
44,500
43,700
45,000
222,200
Governmental
Receipts
21,200
21,200
26,500
74,500
257,900
FTE Changes
152
152
149 (-3)
130 (-22)
710 (-50)
FOOTNOTES - Option D-3
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 unemployment benefit
estimate is $78.6 million.
46
Decision Tree "E"-- The Administration of the
Railroad Sickness Insurance Benefit Program
Program
The railroad sickness insurance program is provided under the Railroad Unemployment Insurance
Act (RUIA). The Act provides for the payment of bi-weekly benefits to qualified railroad employees
who are unable to work because of illness, injury or maternity.
Is this critical to the agency's mission based on "customer" input?
Yes. In addition to being statutorily mandated under the RUIA, the railroad sickness insurance
program is supported by the RRB's customers - railroad labor and railroad management. Results
of surveys and focus groups conducted during fiscal year 1994 indicate a high degree of satisfaction
with the agency's administration of the program.
Can the program be administered as well or better at the State or local level?
No. Only five States provide for the payment of sickness benefits. When proposals to transfer the
unemployment insurance program to the State systems were advanced in the past, the
recommendation was to retain an independent sickness insurance program.
In 1984, the Railroad Unemployment Compensation Committee was established by the Railroad
Retirement Solvency Act of 1983 to review all aspects of the unemployment and sickness benefit
system. The members of the committee included two representatives from railroad labor, two
representatives of railroad management and a public member. In its report, the committee favored
maintaining an independent railroad sickness insurance system.
Is there any way to cut costs or improve performance by introducing competition?
Introducing competition would not cut costs or improve performance.
If not, how can NPR principles be applied to put customers first, cut red tape, and empower
employees?
During fiscal year 1994, customer satisfaction surveys and focus groups were conducted and a
customer service plan was developed. Performance is tracked against customer service standards
and actions are taken to improve performance, when necessary. Action plans have been developed
to improve quality and timeliness and implement cost-saving concepts. In addition, reengineering
efforts are underway as part of the agency's streamlining plan to improve operations.
47
OPTION E-1 TRANSFER THE SICKNESS INSURANCE PROGRAM TO THE STATE
SYSTEM
PRO
RRB involvement would be eliminated.
CON
Only five States pay sickness benefits. There is no reason to believe the other 45
States would want to operate a sickness insurance program for railroad employees.
Eliminate a program that is financially solvent and where the costs of the
program's benefits and administration are borne solely by the railroad industry
through payroll taxes.
No constituency exists that would be interested in this option.
Complex legislative action would be required.
Ability to recover benefit overpayments from annuity accruals payable under the
Railroad Retirement Act would be lost. (This process results in the recovery of
approximately $10 million annually.)
Summary Cost Information - Sickness Insurance Program - Option E-1
Administrative Receipts and Expendituresᵃ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
7,560
d/
0
0
d/
Discretionary
Budget Outlays
7,560
d/
0
0
d/
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
114
d/
0 (-112)
0 (-95)
d/
48
Summary Cost Information - Sickness Insurance Program - Option E-1
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
Discretionary
Budget Outlays
Mandatory Outlays
24,400
d/
0
0
d/
Governmental
Receipts
11,600
d/
0
0
d/
FTE Changes
Summary Cost Information - - Sickness Insurance Program - Option E-1
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
7,560
d/
0
0
d/
Discretionary
Budget Outlays
7,560
d/
0
0
d/
Mandatory Outlays
24,400
d/
0
0
d/
Governmental
Receipts
11,600
d/
0
0
d/
FTE Changes
114
d/
0 (-112)
0 (-95)
d/
49
FOOTNOTES - Option E-1
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 sickness benefit estimate is
$24.0 million.
d/ Undetermined. Presumes transfer in FY 1996.
50
OPTION E-2 PRIVATIZE/FRANCHISE THE SICKNESS INSURANCE PROGRAM
PRO
Insurance companies such as Provident Life and Trustmark currently pay
supplemental sickness benefits to railroad employees. Presumably, an insurance
company could develop and administer a benefit package to replace what is
provided under the RUIA.
Federal government involvement would be eliminated or reduced.
If the administrator of the program is also a supplemental benefit insurer,
employers and employees would have only one entity to deal with.
CON
Railroads may pay a higher cost because administration would be performed by a
profit-based entity.
Ability to detect and prevent fraudulent benefit claims would be reduced.
Opportunities/sources available to Federal agencies for recovery of overpayments
could not be used.
Eliminates a program that is financially solvent and where the costs of the
program's benefits and administration are borne solely by the railroad industry
through payroll taxes.
Legislative change required.
Customer surveys and focus groups indicate a high level of satisfaction with the
existing program.
Ability to recover benefit overpayments from annuity accruals payable under the
Railroad Retirement Act would be lost. (This process results in the recovery of
approximately $10 million annually.)
51
Summary Cost Information - - Sickness Insurance Program - - Option E-2
Administrative Receipts and Expendituresᵃ
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
7,560
d/
0
0
d/
Discretionary
Budget Outlays
7,560
d/
0
0
d/
Mandatory
Outlays
Governmental
Receiptsᵇ
FTE Changes
114
d/
0 (-112)
0 (-95)
d/
Summary Cost Information - - Sickness Insurance Program - - Option E-2
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
Discretionary
Budget Outlays
Mandatory Outlays
24,400
d/
0
0
d/
Governmental
Receipt
11,600
d/
0
0
d/
FTE Changes
52
Summary Cost Information - Sickness Insurance Program - Option E-2
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
7,560
d/
0
0
d/
Discretionary
Budget Outlays
7,560
d/
0
0
d/
Mandatory Outlays
24,400
d/
0
0
d/
Governmental
Receipts
11,600
d/
0
0
d/
FTE Changes
114
d/
0 (-112)
0 (-95)
d/
FOOTNOTES - Option E-2
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Includes outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If
Amtrak eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 sickness benefit
estimate is $24.0 million.
d/ Undetermined. Presumes transfer in FY 1996.
53
OPTION E-3 RESTRUCTURE THE CURRENT SICKNESS INSURANCE PROGRAM
PRO
Maintain a financially solvent system with no cost to individual taxpayers.
Continued high levels of service and customer satisfaction.
No legislative change required.
Customers support continuing the existing program.
Maintain a system which is coordinated with the supplemental benefit programs
administered by the railroads and insurance companies.
No additional costs incurred for transition to alternate program.
CON
Federal government involvement is still required.
Summary Cost Information - Sickness Insurance Program - Option E-3
Administrative Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
7,560
7,560
7,245
6,797
35,643
Discretionary
Budget Outlays
7,560
7,560
7,245
6,797
35,643
Mandatory
Outlays
Governmental
Receiptsb
FTE Changes
114
114 (0)
112 (-2)
95 (-19)
527 (-43)
54
Summary Cost Information - Sickness Insurance Program - Option E-3
Trust Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
Discretionary
Budget Outlays
Mandatory Outlays
24,400
24,400
24,000
24,800
122,100
Governmental
Receipts
11,600
11,600
14,500
41,100
141,700
FTE Changes
Summary Cost Information - Sickness Insurance Program - Option E-3
Trust and Administrative Fund Receipts and Expenditures
(in thousands of dollars)
FY 1996
Estimated
Estimated
Estimated
5-year cumulative
program
resulting
resulting
resulting
(FY 1996-2000)
levels in
levels for
levels for
levels for
budget
FY 1996
FY 1997
FY 2000
Discretionary
Budget Authority
7,560
7,560
7,245
6,797
35,643
Discretionary
Budget Outlays
7,560
7,560
7,245
6,797
35,643
Mandatory Outlays
24,400
24,400
24,000
24,800
122,100
Governmental
Receipts
11,600
11,600
14,500
41,100
141,700
FTE Changes
114
114 (0)
112 (-2)
95 (-19)
527 (-43)
Staff has been reduced by 28% over the past 3 years through automation and restructuring.
55
FOOTNOTES - Option E-3
a/ Administrative funds include the Limitation on Administration. Excludes $6.7 million for
the Limitation on the Office of Inspector General.
b/ Funding of administrative expenses provided through a transfer of funds from the Railroad
Unemployment Insurance Account (RUIA).
c/ Outlays for the RUIA. Does not reflect the potential Amtrak restructuring. If Amtrak
eliminates 5,500 employees by April 1, 1995, the fiscal year 1996 sickness benefit estimate is
$24.0 million.
56
1. Describe any recommendations offered by the OMB/NPR advisory teams that may have
been considered but rejected. Briefly explain why they were rejected.
A. NPR 1 recommended: "Transfer the functions of the Railroad Retirement Board to other
agencies." In its September 1994 status report it reported: "NPR's recommendation to
restructure the management of railroad industry benefits programs has been deferred
indefinitely, and the Railroad Retirement Board has committed to acting on a series of
management improvements."
2. List programs, functions, subsidies, or regulatory efforts that are not being considered for
Phase II reinvention. Briefly explain why they are being excluded.
A. None have been excluded from the Railroad Retirement Board's recommendations
Further cost benefit analyses will be necessary depending on the specific recommendations
adopted.
###
REINVENTION PROPOSALS
JANUARY 24, 1995
RALIROAD RETIREMENT * U.S.A.* BOARD
Office of Inspector General
Railroad Retirement Board
INTRODUCTION
The Office of Inspector General (OIG) and agency management are partners in
the design of a railroad retirement system that provides the highest level of
customer service at the lowest cost. In order to advance the process of change
at the Railroad Retirement Board (RRB), the OIG has reviewed and evaluated
the reorganization that was recently approved by the Board Members. This
document presents the results of that analysis as well as recommendations
that build upon the agency's restructuring actions.
ISSUE ONE
The revised organizational structure of the agency remains bureaucratic and
reflects no significant reduction in the number of bureaus or offices that will
alter daily operations. In order to comply with the reinvention principles and
streamlining directives established by the Administration, agency management
must recognize the critical need to reduce managerial and supervisory
oversight and to align programs with similar functions and missions.
In addition, the RRB should radically reduce the number of field offices. The
development and aggressive use of new computer and telecommunications
technology offers a significant opportunity to improve services and reduce
costs.
Background
From the 1930s through the 1960s, agencies of the Federal government
followed the lead of corporate America in creating large, top-down, centralized
bureaucracies. This type of structure had proven effective for organizations
functioning in stable environments with routine technology. This methodology
encourages a focus on individual goals and routine tasks, not on the basic
mission of the organization. Conflict often results between bureaus and offices
as each attempts to maximize its production without consideration of the
impact upon others. These bureaucracies have proven to be extremely rigid
and inflexible.
The RRB, too, developed an organizational structure that supported formal
lines of communication, the separation of tasks assigned to independent
bureaus and offices with individually defined rules and regulations. However,
in today's environment, this operating design no longer meets the needs of the
agency or its customers. Improvements in information technology are
tremendous, and the power of personal computers is doubling almost every
1
eighteen months. Through the use of computers and telecommunications, the
agency can eliminate layers of managers, reduce the number of supervisors
and permit better information sharing among all employees.
Current Organizational Structure
The 1993 National Performance Review directed Federal agencies to shed their
outdated structures, management practices and relationships. All government
agencies are reviewing their organizational structures and implementing
significant changes to adapt to the current environment. In December 1994,
three cabinet departments (Transportation, Energy and Housing and Urban
Development) and two major agencies (General Services Administration and
the Office of Personnel Management) announced restructuring plans that will
save approximately $24 billion over five years. One agency is combining 60
programs into four and another plans to consolidate its facilities and
restructure its management. In addition, the Department of Agriculture is
eliminating 1200 field offices.
As a result of findings cited in Arthur Andersen's 1993 financial statement
audit report, the Board Members recognized that the RRB's organizational
structure was no longer effective. Arthur Andersen and Company identified
the organization of the RRB as a major weakness in agency operations. The
present structure does not align similar functions but perpetuates a
fragmented environment. The existence of over twenty bureaus and offices
results in an atmosphere that fosters individual operating bureau goals rather
than the overall mission of the agency. Bureaus compete against each other
for limited resources rather than identifying ways to improve coordination and
cooperation for better customer service. The report stated that the agency
lacked adequate lines of communication among bureaus to address problems
or resolve current operational issues.
On November 15, 1994, The Board Members approved a reorganization of the
auditors. agency, effective January 3, 1995, to address those weaknesses cited by the
Reorganization
The Office of Inspector General has reviewed the recent reorganization plan,
and has concluded that the agency should implement additional, more radical
changes to streamline operations and create a more flexible structure which
will reduce unnecessary managerial and supervisory oversight.
2
The organizational charts that follow clearly indicate that the recently approved
plan is more cosmetic than substantive. The revised structure remains
bureaucratic and fragmented, and reflects no significant changes that will alter
day-to-day operations. Continued reductions in staffing and funding mandate
that agency management identify new and more efficient ways to operate. The
goal must be to eliminate layers of management, not to simply shift managers
among bureaus.
RRB ORGANIZATION EFFECTIVE SEPTEMBER 23, 1991
INSPECTOR
SECRETARY
GENERAL
THE BOARD
TO THE
BOARD
WASHINGTON
OFFICE OF
PUBLIC
LEGISLATIVE/
GENERAL
AFFAIRS
LIAISON
OFFICE
COUNSEL
OFFICE
BUREAU OF LAW
OFFICE OF
ADMINISTRATION
EQUAL
AND
EMPLOYMENT
OPERATIONS
OFFICE
BUREAU OF
HEARINGS AND
APPEALS
OFFICE OF
BUREAU OF
BUREAU OF
RETIREMENT
DISABILITY
UNEMPLOYMENT
AND SURVIVOR
BUREAU OF
AND MEDICARE
BUREAU OF
OFFICE OF
AND
PROGRAMS
THE
FISCAL
OPERATIONS
ADMINISTRATIVE
SICKNESS
ACTUARY
OPERATIONS
SERVICES
INSURANCE
BUREAU OF
RETIREMENT
BENEFITS
BUREAU OF
PERSONNEL
BUREAU OF
BUREAU OF
BUREAU OF
BUREAU OF
BUREAU OF
TAXATION
RESEARCH AND
FIELD SERVICE
DATA
SYSTEMS
EMPLOYMENT
PROCESSING
INITIATIVES
ACCOUNTS
BUREAU OF
SURVIVOR
BUREAU OF
BENEFITS
QUALITY
ASSURANCE
REGIONAL
OFFICES
(5)
BUREAU OF
INFORMATION
RESOURCES
ORGANIZATIONAL STRUCTURE INCLUDES
MANAGEMENT
24 OFFICES/BUREAUS
17 REPORT TO ONE KEY EXECUTIVE
BUREAU OF
SUPPLY AND
SERVICE
3
REVISED ORGANIZATION EFFECTIVE JANUARY 3, 1995
INSPECTOR
GENERAL
THE BOARD
OFFICE OF
OFFICE OF
OFFICE OF
PROGRAMS
GENERAL
ADMINISTRATION
COUNSEL
BUREAU OF
OFFICE OF
SECRETARY
BUREAU OF
UNEMPLOYMENT
BUREAU OF
LEGISLATIVE
TO THE
INFORMATION
AND
TAXATION
AFFAIRS
BOARD
SYSTEMS
SICKNESS
INSURANCE
BUREAU OF
OFFICE OF
BUREAU OF
BUREAU OF
DISABILITY
RETIREMENT
BUREAU OF LAW
FISCAL
RESEARCH AND
AND MEDICARE
AND SURVIVOR
OPERATIONS
EMPLOYMENT
OPERATIONS
PROGRAMS
ACCOUNTS
BUREAU OF
BUREAU OF
BUREAU OF
BUREAU OF
BUREAU OF
HEARINGS AND
SUPPLY AND
QUALITY
FIELD SERVICE
RETIREMENT
APPEALS
SERVICE
ASSURANCE
BENEFITS
OFFICE OF
REGIONAL
BUREAU OF
BUREAU OF
PUBLIC
OFFICES
SURVIVOR
PERSONNEL
AFFAIRS
(3)
BENEFITS
BUREAU OF
OFFICE OF
THE
EQUAL
ACTUARY
OPPORTUNITY
REVISED STRUCTURE INCLUDES 22 OFFICES/BUREAUS
(EXCLUDING SECRETARY TO THE BOARD) AND TWO
KEY EXECUTIVES (DIRECTOR OF PROGRAMS AND
DIRECTOR OF ADMINISTRATION) VERSUS PRIOR ONE
4
Recommendation
The Office of Inspector General recommends an organizational structure that
groups programs with similar functions and missions into five independent
bureaus. These bureaus are (1) Benefit Payment Programs, (2) Financial
Operations, (3) Information Systems, (4) Legal Affairs, and (5) Administrative
Services.
PROPOSED ORGANIZATONAL STRUCTURE
INSPECTOR
GENERAL
THE BOARD
BENEFIT
PAYMENT
FINANCIAL
INFORMATION
LEGAL
ADMINISTRATIVE
PROGRAMS
OPERATIONS
SYSTEMS
AFFAIRS
SERVICES
1. Benefit Payment Programs
This office would serve as the agency's principal bureau and include
retirement, survivor, disability, medicare, unemployment and sickness
insurance benefit programs and field services.
2. Financial Operations
This office directed by the Chief Financial Officer, would include the current
Bureau of Fiscal Operations, Research and Employment Accounts and the
Actuary. This realignment would centralize all financial and statistical
operations.
5
3. Information Systems
This bureau would combine the functions of the Bureaus of Data Processing,
Systems Initiatives, and Information Resources Management, with the
exception of the Freedom of Information Act activities which would move to
Legal Affairs.
4. Legal Affairs
All matters relating to legal issues would be consolidated, and would include
the Offices of General Counsel and Legislative Affairs, the Bureaus of Law and
Hearings and Appeals, and Freedom of Information Act activities.
5. Administrative Services
The support functions of the agency would be included in this bureau:
Personnel, Supply and Service, Equal Employment Opportunity, and Public
Affairs.
The realignment of bureaus into a smaller number of functional areas will
permit employees to work more closely, identify ways to operate more
efficiently and eliminate overlap between similar systems. The elimination of
unnecessary layers of management oversight will increase employee motivation
and productivity. This restructuring will also promote cooperation among
employees and permit them to be the decision makers in their respective areas
of responsibility. This environment will provide front-line employees with a
greater sense of job security and personal accomplishment. These employees
are best positioned to identify improved methods to deliver the best customer
service.
Both the Administration and Congress have directed Federal agencies to
reduce the number of government managers and supervisors, particularly at
the GS-14, GS-15 and Senior Executive Service levels.
The recommended organizational structure will increase the span of control
above the level proposed in the agency's streamlining plan. Fewer
organizational boundaries will result in a focus on agency goals rather than
competition for diminishing agency resources.
6
Adoption of the OIG's proposed organizational structure could result in savings
of approximately $9.7 million in salaries and benefits through the reduction of
167 FTEs. The majority of the personnel reductions would involve mid-level
management positions and administrative support staff. The consolidation of
similar functions would eliminate the need for these positions. Appendix 1
presents a list of positions suggested for elimination by organizational
component.
Because Federal regulations regarding reductions in force are complex, this
analysis does not include an estimated cost related to eliminating the
positions. Costs would vary by the method of reduction use, and the specific
individuals involved. The agency could consider proposing various
methodologies to fully accomplish the reorganization to the Administration and
Congress.
ISSUE TWO
The RRB must reengineer the field office structure and service delivery
methods to reflect its current customer base and fully utilize current and new
computer and telecommunications technology.
Background
The current field structure can be traced to its design in the late 1930s. At
that time, the field offices were created in main rail communities to handle the
claims filed under the Railroad Unemployment Insurance Act. From the 1940s
until today, the structure has remained relatively unchanged except for a
reduction in the number of regions from nine in 1942 to five in 1994. During
this time, the nature of the field offices' work, the customer base, the methods
of transportation, the types and availability of communications have changed
dramatically.
In 1942, the RRB had 93 field offices to service almost 2.5 million active
railroad workers. The RRB currently has a headquarters field office staff, five
regional offices and 86 field offices to service 270,000 active railroad workers
and 930,000 beneficiaries. The agency has one field office for every 14,000,
one of the highest ratios in the Federal government.
7
The work performed at the district offices has changed from predominantly
processing unemployment claims to processing retirement and maintenance
work for all benefit programs. In 1949, the RRB paid unemployment/sickness
insurance benefits to over 435,000 beneficiaries. In 1993, approximately
42,000 beneficiaries received these benefits. The number of retirement
applications declined from almost 67,000 in 1949 to 43,000 in 1993.
Current Structure
The agency currently maintains five regional offices, each with a regional
director, and a deputy regional director, except region 5 which has no deputy.
A review of the field offices shows 13 offices with two employees, generally a
manager and one other employee and six offices with only one employee, two of
which are managers with no staff. With few exceptions, most of the offices
have a manager, with larger offices having clerical support staff.
The methods for performing field service work are changing dramatically.
Computer and telecommunications developments in the 1960s and 1970s
made more information available in the field offices. Further advancements in
the 1990s are enabling employees to perform their work regardless of location -
from government office space to a shopping mal, from a railroad employer's
personnel office to a union local office.
Recent customer satisfaction surveys and focus groups have shown that
beneficiaries prefer to handle most of their contacts with the agency by
telephone, except for filing the initial retirement application. In addition, the
number of retirement applications filed each year is declining. Most of the
active railroad employees who will be filing applications in the future are
concentrated in specific geographic areas. Contact representatives working
from approximately ten district offices could provide service to these future
beneficiaries.
The chart on the following page shows that nine states have more than 25,000
beneficiaries, seven states have more than 10,000 workers, and six states have
over 25,000 beneficiaries and over 10,000 workers.
8
Distribution of Railroad Employees and Beneficiaries
9
California
8
Texas
7
Missouri
6
California
Illinois
5
Texas
California
6
Ohio
Nebraska
Texas
4
New York
Illinois
Illinois
3
Ohio
Pennsylvania
Ohio
2
Virginia
New York
New York
1
Pennsylvania
Pennsylvania
Florida
0
States with more
States with more than
States with more than 25,000
than 25,000
Beneficiaries & 10,000
10,000 Railroad Employees
Beneficiaries
Railroad Employees
Recommendation
RRB management should develop a plan to reengineer the field service delivery
processes and reduce the number of field offices. Based upon demographics,
and through the use of alternative methods of service delivery, the agency
should eliminate regional offices and significantly reduce the number of field
offices from 86 to 10. These reductions will eliminate unnecessary offices and
one layer of management, resulting in cost savings estimated in excess of
$10.6 million in salaries and benefits (255 FTEs) and $1.3 million in rental
charges annually.
Most of the reductions would be mid-level (district office ) managers, regional
office managers and administrative support staff in regional and district
offices. These positions could be eliminated as a result of the consolidation of
the field offices. Appendix 2 presents the number of positions which could be
eliminated in each region.
As in the previous recommendation concerning agency organization, the
projected cost savings do not include costs related to reductions in force. The
agency should also consider submitting various strategies to the
Administration and Congress to accomplish this streamlining proposal.
As part of its plan, the RRB should consider innovative methods of providing
effective customer service that do not require the full-time offices. For
example, more customer service representatives could provide itinerant service
at various locations. A majority of the states with over 10,000 active railroad
employees serve as the headquarters location for one or more major railroads.
Contact representatives could schedule specific days to process retirement
applications at these major railroad offices. Forming this type of partnership
with railroad companies would benefit their employees and reduce the costs of
the retirement program.
The RRB should also explore the possibility of locating terminals at Social
Security Administration offices for use by contact representatives, sharing
space with other Federal agencies, and using portable computers to maintain
communication access with headquarters. The agency should study other
technologies such as desktop video conferencing and electronic kiosks to
provide service to more locations and significantly reduce the need for
permanent office space. Based on the overall needs of the organization, the
agency may be able to redirect some of the savings from streamlining the field
service into a technology investment fund which could be used for purchasing
new technology as it becomes available.
10
CONCLUSION
The Office of Inspector General is providing these recommendations to assist
Board management in streamlining the RRB and improving the overall control
environment.
A review of the recent agency reorganization indicates that the new structure is
very similar to the previous one. Only one of the twenty-four bureaus and
offices was eliminated, two key manager positions replace the previous one,
and the only major consolidation was in the information systems area. The
RRB has taken but a single step in the process to eliminate the bureaucracy
that still exists.
RRB management must seize the opportunity to reinvent operations and
implement changes that will be far-reaching. The RRB must also initiate
action to significantly increase the involvement of agency personnel in
reviewing policies and procedures and making decisions on proposed
solutions. In simple terms, management must rethink the way agency benefit
programs are administered.
Implementation of the recommendations contained in this document could
yield annual savings of $21.6 million and eliminate 422 full-time equivalent
positions. These changes will not be easy to achieve, and will require much
study and planning. However, the OIG believes that, through the
recommended reorganization of the agency, particularly the field service, RRB
management can demonstrate its commitment to genuine change and truly
alter the way it conducts business.
11
HEADQUARTER POSITIONS ELIMINATED/MODIFIED PER 12/31/94 POSITION INDEX
Office
Old
New
Old
New
Salary
Number
Office / Bureau
No.
Title
Grade
Grade
Salary
Salary
Savings
400
Office of Secretary to the Board
0
500
Office of General Counsel
0
600
Bureau of Hearings and Appeals
0
700
Office of Legal Affairs
0
800
Office of Public Affairs
0
1100
Office of Director of Administration
1
Executive Assistant
GS-15
82,329
82,329
1
Executive Assistant
GS-14
69,990
69,990
1
Administrative Alde
GS-10
37,827
37,827
1170
Office of Equal Opportunity
0
1200
Bureau of Quality Assurance
1
PC Technical Specialist
GS-12
49,808
49,808
1500
Bureau of Personnel
0
1600
Bureau of Fiscal Operations
2
Deputy Financial Officer
GS-15
82,329
164,658
1
Administrative Officer
GS-09
34,348
34,348
1
Computer Specialist
GS-13
59,227
59,227
1
Financial Management Specialist
GS-13
GS-12
59,227
49,808
9,419
1
Computer Specialist
GS-12
49,808
49,808
1
Debt Recovery Manager
GS-15
GS-14
82,329
69,990
12,339
1
Computer Specialist
GS-12
49,808
49,808
1
PC/LAN Technical Specialist
GS-12
49,808
49,808
1
Computer Specialist
GS-12
49,808
49,808
1700
Bureau of the Actuary
1
Computer Programmer Analyst
GS-12
49,808
49,808
1800
Bureau of Information Resources Management
1
Administrative Specialist
GS-10
37,827
37,827
1
Computer Specialist
GS-14
69,990
69,990
1
Computer Specialist
GS-13
59,227
59,227
1
Computer Specialist
GS-13
59,227
59,227
2100
Office of Retirement & Survivor Programs
1
Trust & Collections Analyst
GS-13
59,227
59,227
1
Administrative Officer
GS-12
49,808
49,808
2
Administrative Clerk
GS-05
22,670
45,340
1
Management Analyst
GS-12
49,808
49,808
1
Supervisory Railroad Retirement Claims Specialist
GS-13
59,227
59,227
7
Railroad Retirement Claims Specialist
GS-11
41,557
290,899
1
Rallroad Retirement Claims Specialist
GS-11
41,557
41,557
1
Rallroad Retirement Claims Specialist
GS-09
34,348
34,348
1
Investigations Clerk
GS-05
22,670
22,670
1
Chief, Programs Procedures & Projects Analysis
GS-14
69,990
69,990
1
Program Benefits Analyst
GS-13
59,227
59,227
1
Supervisory Rallroad Retirement Claims Specialist
GS-13
59,227
59,227
HEADQUARTER POSITIONS ELIMINATED/MODIFIED PER 12/31/94 POSITION INDEX
Office
Old
New
Old
New
Salary
Number
Office / Bureau
No.
Title
Grade
Grade
Salary
Salary
Savings
4
Program Analyst
GS-12
49,808
199,232
5
Claims Policy & Operations Specialist
GS-12
49,808
249,040
1
Secretary (Office Automation)
GS-06
25,267
25,267
1
Office Automation Clerk
GS-04
20,260
20,260
6
Systems Applications Specialist
GS-12
49,808
296,848
2300
Bureau of Retirement Benefits
1
Deputy Director of Retirement Benefits
GS-14
69,990
69,990
1
Administrative Officer
GS-12
49,808
49,808
1
Customer Service Leader
GS-11
41,557
41,557
4
Customer Service Representative
GS-10
37,827
151,308
1
Supervisory Rallroad Retirement Claims Specialist
GS-13
59,227
59,227
5
Claims Policy and Operations Speciallst
GS-12
49,808
249,040
2
Claims Specialist (Training)
GS-12
49,808
99,616
1
Supervisory Rallroad Retirement Claims Specialist
GS-12
49,808
49,808
1
Claims Policy and Operations Specialist
GS-12
49,808
49,808
1
Management Analyst
GS-11
41,557
41,557
2
Railroad Retirement Claims Specialist
GS-11
41,557
83,114
1
PC Production Coordinator
GS-10
37,827
37,827
1
Office Automation Clerk
GS-04
20,260
20,260
2
Statement of Dutles
GS-11
41,557
83,114
1
Statement of Duties
GS-06
25,267
25,267
1
Quality Control Analyst
GS-11
41,557
41,557
2400
Bureau of Survivor Benefits
1
Claims Processing Analyst
GS-12
49,808
49,808
1
Administrative Officer
GS-11
41,557
41,557
3
Customer Service Representative
GS-10
37,827
113,481
1
Customer Service Representative
GS-10
37,827
37,827
1
Supervisory Rallroad Retirement Claims Specialist
GS-13
59,227
59,227
4
Claims Policy and Operations Specialist
GS-12
49,808
199,232
1
Rallroad Retirement Claims Specialist
GS-12
49,808
49,808
1
Railroad Retirement Claims Specialist
GS-11
41,557
41,557
1
Quality Control Analyst
GS-10
37,827
37,827
1
Quality Control Analyst
GS-11
41,557
41,557
2500
Bureau of Disability & Medicare Operations
1
Deputy Director of Disability & Medicare Operations
GS-14
69,990
69,990
1
Systems Applications Specialist
GS-12
49,808
49,808
1
Administrative Officer
GS-11
41,557
41,557
1
Administrative Officer
GS-09
34,348
34,348
1
Lead Clerk
GS-05
22,670
22,670
2901
1
Medicare Control Operations Specialist
GS-13
59,227
59,227
HEADQUARTER POSITIONS ELIMINATED/MODIFIED PER 12/31/94 POSITION INDEX
Office
Old
New
Old
New
Salary
Number
Office / Bureau
No.
Title
Grade
Grade
Salary
Salary
Savings
1
Assistant Chief, Medicare Programs
GS-12
49,808
49,808
1
Supervisory Claims Specialist (Health Insurance Benefit)
GS-10
37,827
37,827
1
Supervisory Claims Specialist (Health Insurance Benefit)
GS-10
37,827
37,827
1
Chief, Claims Policy & Procedures
GS-13
59,227
59,227
5
Claims Policy & Operations Specialist
GS-12
49,808
249,040
1
Claims Policy & Operations Specialist
GS-11
41,557
41,557
3
Railroad Retirement Claims Specialist (Disability)
GS-12
49,808
149,424
1
Office Automation Clerk
GS-04
20,260
20,260
3000
Bureau of Supply and Service
1
Administrative Officer
GS-11
41,557
41,557
1
Lead Mall Clerk
GS-05
22,670
22,670
1
Assistant Chief of Files Records & Supplies
GS-10
37,827
37,827
6000
Bureau of Research & Employment Accounts
1
Program Benefits Analyst
GS-14
69,990
69,990
1
Assistant to the Director
GS-12
49,808
49,808
1
Management Analyst
GS-12
49,808
49,808
1
Financial Interchange Operations Analyst
GS-12
49,808
49,808
1
Communications Specialist
GS-12
49,808
49,808
2
Compensation Reporting Speciallst
GS-12
49,808
99,616
1
Chief, Methods and Procedures Section
GS-13
59,227
59,227
1
Management Analyst
GS-12
49,808
49,808
1
Methods & Procedures Analyst
GS-11
41,557
41,557
1
Methods & Procedures Assistant
GS-08
31,094
31,094
8000
Bureau of Unemployment & Sickness Insurance
1
Director of Unemployment & Sickness Insurance
ES-04
GS-15
114,725
82,329
32,396
1
Deputy Director of Unemploymnet & Sickness Insurance
GS-15
82,329
82,329
1
PC Technical Specialist
GS-13
59,227
59,227
1
Administrative Officer
GS-12
49,808
49,808
1
Management Analyst
GS-11
41,557
41,557
1
Administrative Officer
GS-09
34,348
34,348
1
Administrative Clerk
GS-05
22,670
22,670
1
Experience Rating Operations Analyst
GS-12
49,808
49,808
1
Deputy Director of Program Operations
GS-13
59,227
59,227
2
Claims Examiner (Unemployment)
GS-09
34,348
68,696
1
Claims Examiner (Unemployment)
GS-08
31,094
31,094
1
Director Program Policy Planning & Evaluation
GS-15
82,329
82,329
1
Deputy Director - Program Policy Planning & Evaluation
GS-14
69,990
69,990
1
Computer Speciallst
GS-12
49,808
49,808
1
Unemployment & Sickness Claims Specialist
GS-12
49,808
49,808
1
Secretary (Office Automation)
GS-06
25,287
25,267
Appendix 1, Page 3 of L
HEADQUARTER POSITIONS ELIMINATED/MODIFIED PER 12/31/94 POSITION INDEX
Old
New
Old
New
Salary
Office
Number
Office / Bureau
No.
Title
Grade
Grade
Salary
Salary
Savings
1
Office Automation Assistant
GS-05
22,670
22,670
2
Adjudication & Procedure Specialist
GS-12
49,808
99,616
1
Deputy Director of Debt Management
GS-13
59,227
59,227
1
Debt & Recovery Analyst
GS-12
49,808
49,808
2
Recovery Management Specialist
GS-11
41,557
83,114
9000
Bureau of Data Processing
1
Deputy Director Bureau of Data Processing
GS-15
82,329
82,329
1
Supervisory Management Analyst
GS-13
59,227
59,227
3
Management Analyst
GS-12
49,808
149,424
Computer Specialist
GS-13
59,227
59,227
1
1
Computer Specialist (Instruction)
GS-12
49,808
49,808
Administrative Officer (Budget)
GS-11
41,557
41,557
1
1
Administrative Officer
GS-09
34,348
34,348
1
Supervisory Computer Program Analyst
GS-14
69,990
69,990
1
Database Applications Specialist
GS-13
59,227
59,227
1
Supervisory Computer Program Analyst
GS-14
69,990
69,990
1
Computer Programmer Analyst
GS-13
59,227
59,227
1
Database Applications Specialist
GS-13
59,227
59,227
1
Deputy Division Chief
GS-14
69,990
69,990
1
Lead Data Base Administration Specialist
GS-13
59,227
59,227
170 Total Positions
Salary Savings
8,074,713
167 Positions Eliminated
Benefit Savings - 20%
1,614,943
3 Positions Modified
Total Savings
9,689,656
Appendix 1, Page 4 of 4
Appendix 2
BUREAU OF FIELD SERVICE (BFS)
SAVINGS - SALARY & BENEFITS
Number
Number
Total
to
to
Salary &
Grade
Number
Allocate
Eliminate
Salary
Benefits
Savings
GS-4/5
30
6
24
$18,949
$22,739
$545,736
GS-6
18
12
6
$23,632
$28,358
$170,148
GS-7
6
0
6
$26,259
$31,511
$189,066
GS-8
160
75
85
$29,082
$34,898
$2,966,330
GS-9
6
0
6
$32,125
$38,550
$231,300
GS-10
92
43
49
$35,379
$42,455
$2,080,295
GS-11
23
0
23
$38,867
$46,640
$1,072,720
GS-12
44
0
44
$46,584
$55,901
$2,459,644
GS-13
13
5
8
$55,394
$66,473
$531,784
GS-14
4
5
0
$65,460
$78,552
$0
GS-15
5
0
4
$77,001
$92,401
$369,604
Totals
401
146
255
$10,616,627
Note: BFS headquarters employees are excluded. Employees and savings
relate to BFS field personnel only.
RAILBOAD RETIREMENT
HER INDEPENDENT AGENCIES
Federal
1047
Total liabilities
52.328.729
52.377.047
56.964.483
58.817.483
42.00
Transferred from other accounts
5
10
9
POSITION:
Invested capital
3,034,052
3.033.881
3.033.881
3,033,881
43.00
Appropriation (total)
277,005
261.010
240,009
Cumulative results of oper-
ations
-8.081.784
-8.995.345
-9.205.364
-9.153.364
Relation of obligations to outlays:
71.00
Total obligations
269.365
261.010
240,009
Total net position
-5.047.732
-5.961,464
-6,171,483
-6.119.483
90.00
Outlays
269,365
261.010
240.009
Total liabilities and net po-
sition
47,280.997
46.415.583
50.793.000
52.698.000
This appropriation is a Federal subsidy to the rail industry
pension for costs not financed by the railroad sector. The
Object Classification (in thousands of dollars)
American taxpayer subsidy is about $1,000 per rail employee.
dification code 18-4020-0-3-372
1994 actual
1995 est.
1996 est.
Personnel compensation:
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS
11.1
Full-time permanent
22,895.357
24,276,848
25.259.482
11.3
Other than full-time permanent
3.620.732
3.474.202
3,706.582
For payment to the accounts established in the Treasury for the
15
Other personnel compensation
4,264,914
4.126.928
4.021.573
payment of benefits under the Railroad Retirement Act for interest
13
11.8
Special personal services payments
13
13
earned on unnegotiated checks, $300,000, to remain available through
11.9
Total personnel compensation
30.781.016
31.877.991
32.987.650
September 30, [1996] 1997, which shall be the maximum amount
12.1
Civilian personnel benefits
7,764,982
8.797.114
9,404,487
available for payment pursuant to section 417 of Public Law 98-
13.0
Benefits for former personnel
1.103.326
1.159.489
1.268.897
76. (Departments of Labor, Health and Human Services, and Edu-
21.0
Travel and transportation of persons
149.734
155,468
164.787
cation, and Related Agencies Appropriations Act, 1995.)
22.0
Transportation of things
3,856,950
4.097,701
4.340.283
23.1
Rental payments to GSA
37.984
38,688
39.687
Program and Financing (in thousands of dollars)
23.2
Rental payments to others
558.118
600.930
646.128
23.3
Communications. utilities. and miscellaneous charges
489.744
532.798
573.100
Identification code 60-0113-0-1-601
1994 actual
1995 est.
1996 est.
24.0
Printing and reproduction
90.144
132.677
159.475
25.2
Other services
1.660.306
1.955.248
1.629.059
Program by activities:
26.0
Supplies and matenals
954,461
1.026.715
10.00 Total obligations (object class 42.0)
3,459,415
3,331,390
3.422.691
1.207.566
31.0
Equipment
571.023
2.428.016
1.353.390
Financing:
32.0
Land and structures
1.011.709
1.143.980
805.399
21.40 Unobligated balance available. start of year: Treasury
42.0
Insurance claims and indemnities
133.290
98.158
101.411
balance
-174
-174
Interest and dividends:
24.40 Unobligated balance available. end of year: Treasury
43.0
Notes and bonds
777.867
644.721
709.233
balance
174
174
174
43.0
Civil Service unfunded liabilities
1.336.354
1.362.400
1,549,389
39.00
Budget authority
3,459.589
3.331.390
3,422,691
99.9
Total obligations
51.530.113
55.979.840
56.759.090
Budget authority:
Current:
Personnel Summary
40.00
Appropriation
300
300
300
41.00
Transferred to other accounts
-5
-10
-9
Identification code 18-4020-0-3-372
1994 actual
1995 est.
1996 est.
43.00
Appropriation (total)
295
290
291
Total compensable workyears:
5005
Full-time equivalent of overtime and holiday hours
70,982
65.055
59.865
Permanent:
60.05
Appropriation (indefinite)
3,459,294
3,331,100
3,422.400
5011
Exempt Full-time equivalent employment
786.608
802.176
813.599
Relation of obligations to outlays:
71.00
Total obligations
3.459.415
3.331.390
3,422,691
RAILROAD RETIREMENT BOARD
90.00
Outlays
3,459,415
3,331,390
3.422.691
Federal Funds
This account funds interest on uncashed checks, military
General and special funds:
service credits, financial interchange advances, taxes on Tier
[DUAL BENEFITS PAYMENTS ACCOUNT] FEDERAL WINDFALL SUBSIDY
I railroad retirement benefits, and a direct Federal subsidy
For payment to the Dual Benefits Payments Account. authorized
to the rail pension fund.
under section 15(d) of the Railroad Retirement Act of 1974,
[$261,000,000] $240,000,000. which shall include amounts becoming
available in fiscal year [1995] 1996 pursuant to section 224(c)(1)(B)
SPECIAL MANAGEMENT IMPROVEMENT FUND
of Public Law 98-76; and in addition, an amount, not to exceed
To effect management improvements, including the reduction of
2 percent of the amount provided herein. shall be available propor-
backlogs, accuracy of taxation accounting, and debt collection,
tional to the amount by which the product of recipients and the
[$1,640,000] $659,000, to be derived from the railroad retirement
average benefit received exceeds [$261,000,000] $240,000,000: Pro-
accounts and railroad unemployment insurance account: Provided,
vided, That the total amount provided herein shall be credited in
That these funds shall supplement, not supplant. existing resources
12 approximately equal amounts on the first day of each month
devoted to such operations and improvements. (Departments of Labor,
in the fiscal year. (Departments of Labor, Health and Human Serv-
Health and Human Services, and Education, and Related Agencies
ices, and Education, and Related Agencies Appropriations Act, 1995.)
Appropriations Act, 1995.)
Program and Financing (in thousands of dollars)
Program and Financing (in thousands of dollars)
Identification code 60-0111-0-1-601
1994 actual
1995 est.
1996 est.
Identification code 60-0200-0-1-601
1994 actual
1995 est.
1996 est.
Program by activities:
Program by activities:
10.00 Total obligations (object class 41.0)
269.365
261.010
240.009
10.00
Total obligations
3.195
1.640
659
Financing:
Financing:
25.00 Unobligated balance expiring
7.640
25.00 Unobligated balance expiring
105
39.00
Budget authority
277.005
261.010
240.009
40.00
Budget authority (appropriation)
3.300
1.640
659
Budget authority:
Relation of obligations to outlays:
40.00
Appropriation
277 000
261.000
240.000
71.00 Total obligations
3.195
1.640
659
1048
-Continued
THE BUDGET FOR FISCAL YEAR
General and special funds-Continued
00.02 Administrative expenses
16,828
17,031
17
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS-
10.00
Total obligations
83.252
87,131
86.500
Continued
Financing:
SPECIAL MANAGEMENT IMPROVEMENT FUND-Continued
39.00
Budget authority
83,252
87.131
86
Program and Financing (in thousands of dollars)-Continued
Budget authority.
Current:
Identification code 60-0200-0-1-601
1994 actual
1995 est.
1996 est.
40.26
Appropriation (trust fund. definite)
16.828
17.031
17
Permanent:
72.40 Obligated balance. start of year: Unpaid obligations:
60.27
Appropriation (trust fund. indefinite)
66.424
70.100
68.900
Treasury balance
119
119
74.40 Obligated balance. end of year: Unpaid obligations:
Relation of obligations to outlays:
Treasury balance
-119
-119
-119
71.00
Total obligations
83,252
87,131
86
90.00
72.40
Outlays
3,076
1,640
659
Obligated balance. start of year: Unpaid obligations:
Treasury balance
1.423
1.422
1.422
74.40
Obligated balance. end of year: Unpaid obligations:
Object Classification (in thousands of dollars)
Treasury balance
-1.422
-1.422
-1.422
Identification code 60-0200-0-1-601
1994 actual
1995 est.
1996 est.
90.00
Outlays
83,253
87,131
86,500
Personnel compensation:
Note.-Appropriations language for the FY 1996 request for administrative expenses a included with the limitation
11.1
Full-time permanent
1.992
1.124
528
on administration of the Rail Industry Pension Fund.
11.3
Other than full-time permanent
22
12
11.5
Other personnel compensation
474
110
The Board administers a separate fund for unemployment
11.9
Total personnel compensation
2.488
1.246
528
and sickness insurance payments. Administrative exper
12.1
Civilian personnel benefits
459
281
124
are financed from employer unemployment taxes.
25.1
Advisory and assistance services
18
25.2
Other services
12
10
1
WORKLOAD
26.0
Supplies and materials
43
5
1990
1993
31.0
1994
Equipment
1995 est
1996 est.
193
80
actual
actual
actual
Unemployment claims
300.351
206.509
190.950
170.000
166
99.9
Total obligations
3.195
1.640
659
Cumulative workload decline (%)
-31%
-36%
-43%
-45%
Sickness Claims
269,926
201.977
205.528
195.000
191
Personnel Summary
Cumulative workload decline (%)
-25%
-24%
-28%
-29%
Identification code 60-0200-0-1-601
Object Classification (in thousands of dollars)
1994 actual
1995 est.
1996 est.
Total compensable workyears:
Identification code 60-8051-0-7-603
1994 actual
1995 est.
1996 est.
1001
Full-time equivalent employment
58
31
14
1005
Full-time equivalent of overtime and holiday hours
42.0
10
3
Insurance claims and indemnities
66,424
70,100
68
93.0
Limitation on expenses
16.828
17.031
17.600
99.9
Total obligations
83.252
87.131
86.500
REGIONAL RAIL TRANSPORTATION PROTECTIVE ACCOUNT
Program and Financing (in thousands of dollars)
Personnel Summary
Identification code 60-0110-0-1-603
1994 actual
1395 est.
1996 est.
Identification code 60-8051-0-7-603
1994 actual
1995 est.
1996 est.
Total compensable workyears
Relation of obligations to outlays:
1001
71.00
Total obligations
Full-time equivalent employment
293
280
1005
72.40
Obligated balance. start of year: Unpaid obligations:
Full-time equivalent of overtime and holiday hours
1
Treasury balance
9
5
5
74.40
Obligated balance. end of year: Unpaid obligations:
Treasury balance
-5
-5
-5
RAIL INDUSTRY PENSION FUND
90.00
Outlays
4
Program and Financing (in thousands of dollars)
Under the Regional Rail Reorganization Act, this appropria-
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
tion provides the Railroad Retirement Board with funds to
administer certain aspects of an employee protection agree-
Program by activities:
ment, benefit schedule, and other functions.
10.00 Total obligations
2.948.244
2.962.663
2
100
Financing:
Unobligated balance available. start of year
Trust Funds
21.40
Treasury balance
15.025
9,540
U.S. Securities:
RAILROAD UNEMPLOYMENT INSURANCE TRUST FUND
21.41
Par value
-10.677.999
-10.596,378
-10.586.838
[LIMITATION ON RAILROAD UNEMPLOYMENT INSURANCE
21.42
Unrealized discounts
80.172
ADMINISTRATION FUND]
Unobligated balance available. end of year:
24.40
Treasury balance
-9.540
[For further expenses necessary for the Railroad Retirement Board,
U.S. Securities:
for administration of the Railroad Unemployment Insurance Act, not
24.41
Par value
10.596.378
10.586.838
10
838
less than $17,031.000 shall be apportioned for fiscal year 1995 from
24.42
Unrealized discounts
moneys credited to the railroad unemployment insurance administra-
tion fund.] (Departments of Labor, Health and Human Services, and
39.00
Budget authority (gross)
2.952.280
2.962.663
2.985.100
Education, and Related Agencies Appropriations Act, 1995.)
Budget authority:
Program and Financing (in thousands of dollars)
60.27
Appropriation (trust fund. indefinite)
3.092.596
3,364,096
3.408.351
60.45
Portion precluded from obligation
-144.352
-405.133
-426.951
Identification code 60-8051-0-7-603
1994 actual
1995 est.
1996 est.
63.00
Appropriation (total)
2.948.244
2.958.963
2.981.400
68.00
Program by activities:
Spending authority from offsetting collec-
tions
00.01 Benefit payments
4.036
66.424
70.100
68.900
3.700
3.700
RAILESAB RETIREMENT
-Continued
OTHER INDEPENDENT AGENCIES
Trust
Continued
1049
Relation of obligations to estlays:
costs of such workloads within the remainder of the existing limita-
D
Total obligations
2.948.244
2,962,663
2.985.100
tion has been achieved: Provided further, That for fiscal year 1995
0
Obligated balance. start of year: Unpaid obli-
only, notwithstanding any other provision of law, no portion of this
gations: Treasury balance
215.092
217.563
219,863
limitation shall be available for payments of standard level user
74.40 Obligated balance. end of year: Unpaid obli-
gations: Treasury balance
-217.563
-219.863
-222.563
charges pursuant to section 210(j) of the Federal Property and Admin-
istrative Services Act of 1949, as amended (40 U.S.C. 490(j); 45 U.S.C.
87.00
Outlays (gross)
2.945.773
2.960.363
2.982.400
231-231u)]. (Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 1995.)
Adjustments to gross budget authority and out-
lays:
Program and Financing (In thousands of dollars)
88.00 Offsetting collections from: Federal sources
-4.036
-3.700
-3,700
1994 actual
1995 est.
1996 est.
89.00
Budget authority (net)
2,948,244
2.958,963
2.981,400
90.00
Outlays (net)
2,941,737
2.956,663
2.978.700
Program by activities:
Direct program:
Rail Industry Pension Fund:
Railroad retirees generally receive the equivalent to a social
Total. Rail Industry Pension Fund
46.286
45,981
46,900
Railroad Social Security Equivalent Benefit:
security benefit and a rail industry pension collectively bar-
Total. Railroad Social Security Equivalent Benefit
24,784
25.600
26,100
gained like other private pension plans but embedded in Fed-
Supplemental Annunity Pension Fund:
eral law. Some 169,000 individuals also receive a "windfall"
Total. Supplemental Annunity Pension Fund
2.082
2.100
2,100
benefit.
Railroad Unemployment Insurance Trust Fund:
Total. Railroad Unemployment Insurance Trust Fund
17,600
Status of Funds (in thousands of dollars)
Total. direct program
73.152
73,681
92.700
Reimbursable program
4.036
3.700
3,700
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
Total obligations
77.188
77,381
96,400
Unexpended balance. start of year:
Financing:
0100
Treasury balance
-15.025
Offsetting collections from: Trust funds
-4.036
-3,700
-3.700
U.S. Securities:
Unobligated balance expiring
639
200
0101
Par value
10,456,576
10.596.378
11.071,045
0102
Unrealized discounts
-80.172
-33.763
-52.987
Limitation
73.791
73.881
92.700
0199
Total balance. start of year
10.361.379
10.562.615
11.018.058
Relation of obligations to outlays:
Cash income during the year:
Obligations incurred. net
73.152
73.681
92.700
Governmental receipts:
Obligated balance. start of year
6.900
6.900
0200
Refunds. Rail Industry Pension Fund
-28.250
-14.000
-7.500
Obligated balance. end of year
-6.900
-6.900
-6.900
0201
Taxes. Rail Industry Pension Fund
2.263.302
2.314.800
2.325.000
0202
RUI Repayment Taxes. Rail Industry Pension Fund
32.645
Outlays from limitation
66.252
73.681
92.700
Intragovernmental transactions:
240
Interest and profits on investments in public debt
securities. Rail Industry Pension Fund
525,481
933.200
938.900
The table below shows the continued decline anticipated
0242
Federal payments to railroad retirement trust
in major workloads.
funds. Rail Industry Pension Fund
384.046
178.106
200.106
Offsetting collections:
1992
1993
1994
1995 est.
1996 est.
actual
actual
actual
0280
Rail Industry Pension Fund
4.036
3.700
3.700
Pending. start of year
17.001
16.710
12.437
11.937
12.237
0297
Income under present law
3.181.260
3.415,806
3.460.206
New Railroad Retirement applications
67.086
59.606
56,267
60.000
56.000
New Social Security certifications
7.956
7.353
6.951
7.000
7.000
0299
Total cash income
3,181,260
3.415.806
3.460.206
Total dispositions (excluding partial
Cash outgo during year:
awards)
75.333
71.232
63.718
66.700
64.040
0500
Rail Industry Pension Fund
-2.945,773
-2.960.363
-2.982.400
Pending. end of year
16.710
12.437
11.937
12.237
11.197
0645
Repayment adjustment
-34.251
Unexpended balance. end of year:
As shown below, the Board projects this workload will con-
U.S. Securities:
0701
Par value
10.596.378
11.071.045
11.578.796
tinue to decline, as the number of beneficiaries on the rolls
0702
Unrealized discounts
-33.763
-52.987
-82.932
continues to decline.
1980
1990
1993
1994
1995 est.
1996 est
0799
Total balance. end of year
10.562.615
11.018.058
11.495.864
actual
actual
actual
actual
Total beneficiaries
1.009.500
894.196
843.204
819.931
800.400
777.300
Object Classification (in thousands of dollars)
In recognition of the continuing decline in virtually all its
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
major workloads, the Board will explore and adopt new ap-
proaches to improve service to beneficiaries.
Direct obligations:
42.0
Insurance claims and indemnities
2.848.942
2.874.600
2.895.600
Object Classification (in thousands of dollars)
43.0
Interest and dividends
15.452
4.000
4.000
93.0
Administrative expenses (see separate schedule)
79.814
80.363
81.800
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
99.0
Subtotal. direct obligations
2,944,208
2.958.963
2.981.400
Limitation Acct-Direct Obligations:
99.0
Subtotal. direct obligations
4.036
3.700
3.700
Personnel compensation:
11.1
Full-time permanent
45.620
46.079
58.212
99.9
Total obligations
2.948.244
2.962.663
2,985,100
11.3
Other than full-time permanent
1.073
1.181
1.075
11.5
Other personnel compensation
741
621
788
11.9
Total personnel compensation
47,434
47.881
60.075
12.1
Civilian personnel benefits
9.403
9.691
12.573
LIMITATION ON ADMINISTRATION
13.0
Benefits for former personnel
847
122
150
For necessary expenses for the Railroad Retirement Board[.
21.0
Travel and transportation of persons
571
658
896
22.0
Transportation of things
149
204
$73,881,000] in administering the Railroad Retirement Act and the
188
231
Rental payments to GSA
4.700
2.680
3.653
Railroad Unemployment Insurance Act, $92,700,000, to be derived
23.3
Communications. utilities. and miscellaneous charges
2.788
3.399
4 389
as authorized by section 15(h) of the Railroad Retirement Act and
24.0
Printing and reproduction
357
411
608
section 10(a) of the Railroad Unemployment Insurance Act, from the
25.1
Advisory and assistance services
475
452
450
accounts referred to in those sections (from the railroad retirement
25.2
Other services
5.135
6 491
7.852
accounts: Provided, That $200,000 of the foregoing amount shall be
26.0
Supplies and matenals
862
1.181
1.400
available only to the extent necessary to process workloads not antici-
31.0
Equipment
392
566
450
93.0
Limitation on expenses
-73.152
-73.681
-92.700
pated in the budget estimates and after maximum absorption of the
1050
-Costinued
Treat rende-Continute
THE BUDGET FOR FISCAL YEAR 1996
LIMITATION ON ADMINISTRATION-Continued
31.0
Equipment
91
20
14
93.0 Limitation on expenses
-6,662
-6,682
-5.700
Object Classification (in thousands of dollars)-Continued
99.0
Subtotal. limitation account-direct
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
99.0
Subtotal. limitation acct-direct obligations
Personnel Summary
Limitation Acct-Reimbursable Obligations:
Personnel compensation:
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
11.1
Full-time permanent
2,765
2.512
2.520
8001 Total compensable workyears: Full-time equivalent
11.3
Other than full-time permanent
30
30
30
employment
92
90
85
11.5
Other personnel compensation
40
40
40
11.9
Total personnel compensation
2.835
2.582
2.590
12.1
Civilian personnel benefits
555
515
517
21.0
Travel and transportation of persons
45
45
45
SUPPLEMENTAL ANNUITY PENSION FUND
22.0
Transportation of things
25
25
25
23.3
Communications. utilities. and miscellaneous charges
255
233
233
Program and Financing (in thousands of dollars)
24.0
Printing and reproduction
30
25.2
Other services
231
240
240
Identification code 60-8012-0-7-601
1994 actual
1995 est.
1996 est.
26.0
Supplies and materials
40
40
35
31.0
Equipment
20
20
15
Pregram by activities:
93.0
Limitation on expenses
-4.036
-3.700
-3.700
10.00
Total obligations
94,008
91.200
86,700
99.0
Financing:
Subtotal. limitation acct-reimbursable obligations
Unobligated balance available. start of year:
21.40
Treasury balance
1.645
230
Personnel Summary
21.41
U.S. Securities: Par value
-49.538
-42.327
-42.097
Unobligated balance available. end of year:
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
24.40
Treasury balance
-230
24.41
U.S. Securities: Par value
42.327
42.097
42.097
Limitation account-direct
Total compensable workyears:
60.27
Budget authority (appropriation) (trust fund. indefi-
6001
Full-time equivalent employment
1.221
1.193
1,386
nite)
88.212
91.200
86,700
6005
Full-time equivalent of overtime and holiday hours
3
1
1
Limitation account-reimbursable:
Relation of obligations to outlays:
7001 Total compensable workyears: Full-time equivalent
71.00
Total obligations
94,008
91.200
86.700
employment
44
44
44
72.40 Obligated balance. start of year: Unpaid obligations:
Treasury balance
2.129
1.587
1.587
74.40 Obligated balance. end of year: Unpaid obligations:
Treasury balance
-1.587
-1.587
-1.587
90.00
Outlays
94,550
91.200
86.700
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector General for audit.
investigatory and review activities, as authorized by the Inspector
In addition to rail social security, rail industry pensions
General Act of 1978, as amended, not more than [$6,682,000]
and special windfalls, the Railroad Retirement Board pays
$6,700,000, to be derived from the railroad retirement accounts and
supplemental annuities to rail workers retiring at age 60
railroad unemployment insurance account. (Departments of Labor,
with 30 years of creditable rail service or at age 65 with
Health and Human Services, and Education, and Related Agencies
25-29 years of creditable service. Monthly benefit amounts
Appropriations Act, 1995.)
are calculated from a base of $23, adding $4 for every year
of service over 25, up to a maximum monthly benefit of $43.
Program and Financing (in thousands of dollars)
Employers finance benefits on a pay-as-you-go basis by a
1994 actual
1995 est.
1996 est.
cents-per-hour tax, currently established at 33 cents per hour.
Program by activities:
Status of Funds (in thousands of dollars)
Operations (total obligations)
7.012
7.094
7.225
Financing:
Identification code 60-8012-0-7-601
1994 actual
1995 est.
1996 est.
Offsetting collections from trust funds
-350
-412
-525
Unobligated balance expiring
80
Unexpended balance. start of year:
0100
Treasury balance
3.794
6,912
9.661
Limitation
6,742
6,682
6,700
0101
U.S. Securities: Par value
49.538
42.327
36.781
0199
Total balance. start of year
53.332
Relation of obligations to outlays:
49.239
46,442
Obligations incurred. net
7.012
7.094
7.225
Cash income during the year:
Obligated balance. start of year
640
Governmental receipts:
640
0200
Obligated balance. end of year
-640
-640
-640
Supplemental annuity taxes. Supplemental Annuity
Pension Fund. RRB
89.847
86,400
83.800
Outlays from limitation
6.372
7.094
7.225
0201
Refunds. Supplemental Annuity Pension Fund. Re-
funds
-1.699
-800
-500
Intragovernmental transactions:
Object Classification (in thousands of dollars)
0240
Interest and profits on investments in public debt
securities. Supplemental Annuity Pension Fund.
Identification code 60-8011-0-7-601
1994 actual
1995 est.
1996 est.
RRB
2.307
2.800
2,400
0241
Unnegotiated checks. Supplemental Annuity Pen-
Personnel compensation:
sion Fund. RRB
2
3
3
11.1
Full-time permanent
4,483
4.757
4.770
0297
Income under present law
90.457
88.403
85.703
11.5
Other personnel compensation
99
105
93
0299
Total cash income
90,457
88.403
85.703
11.9
Total personnel compensation
4.582
4.862
4.863
Cash outgo during year:
12.1
Civilian personnel benefits
1.189
1.285
1,254
0500
Supplemental Annuity Pension Fund
-94,550
-91.200
-86.700
21.0
Travel and transportation of persons
430
370
447
Unexpended balance. end of year:
22.0
Transportation of things
12
10
8
0700
Treasury balance
6,912
9.661
11.924
23.3
Communications. utilities. and miscellaneous charges
16
10
10
0701
U.S. Securities: Par value
42.327
36.781
33,521
24.0
Printing and reproduction
2
25.2
Other services
299
105
78
0799
Total balance. end of year
49.239
46.442
45,445
26.0
Supplies and materials
41
20
26
RESOLUTION
CORPORATION
OTHER INDEPENDENT AGENCIES
Federal Funds
1051
Object Classification (in thousands of dollars)
0299
Total cash income
8,059,325
8,443,581
8,623,082
Cash outgo during year:
1994 actual
1995 est.
1996 est.
0500
Railroad social security equivalent benefit account
-7.917.276
-8.148.400
-8.347.000
code 60-8012-0-7-601
Unexpended balance. end of year:
42.0
Insurance claims and indemnities
93.109
90,400
86,500
0700
Treasury balance
11.792
55.640
83,774
43.0
Interest and dividends
899
800
200
0701
U.S. Securities: Par value
1,564,247
1,815,580
2.063.528
1.576.039
1.871.220
2.147,302
99.9
Total obligations
94,008
91.200
86.700
0799
Total balance. end of year
Object Classification (in thousands of dollars)
RAILROAD SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT
Identification code 60-8010-0-7-601
1994 actual
1995 est.
1996 est.
Program and Financing (in thousands of dollars)
42.0
Insurance claims and indemnities
4,828,494
4,903,500
4,985,500
43.0
Interest and dividends
2.723
1.000
1.000
Identification code 60-8010-0-7-601
1994 actual
1995 est.
1996 est.
92.0
Repayment of benefit advances and loans
3.153.257
3.343.100
3.412,200
99.9
Total obligations
7,984.474
8,247,600
8.398.700
Pregram by activities:
10.00 Total obligations
7,984,474
8.247,600
8,398.700
Financing:
Unobligated balance available. start of year:
21.40
Treasury balance
-20,772
11.613
RESOLUTION TRUST CORPORATION
21.41
U.S. Securities: Par value
-1.531.862
-1,564,247
-1.552,634
Unobligated balance available. end of year:
Federal Funds
24.40
Treasury balance
-11.613
24.41
U.S. Secunties: Par value
1,564,247
1.552.634
1.552.634
General and special funds:
OFFICE OF INSPECTOR GENERAL
39.00
Budget authority
7,984,474
8,247,600
8.398.700
For necessary expenses of the Office of Inspector General in carry-
Budget authority:
ing out the provisions of the Inspector General Act of 1978, as amend-
60.27
Appropriation (trust fund. indefinite)
8.061.573
8.415.637
8.594.948
ed; [$32,000,000] $11,400,000. (Departments of Veterans Affairs and
60.45
Portion preciuded from obligation
-77.099
-168.037
-196.248
Housing and Urban Development, and Independent Agencies Appro-
8,247.600
8.398.700
priations Act, 1995.)
63.00
Appropriation (total)
7,984,474
Program and Financing (in thousands of dollars)
Relation of obtigations to outlays:
71.00
Total obligations
7,984,474
8.247,600
8.398.700
Identification code 22-1500-0-1-373
1994 actual
1995 est.
1996 est.
72.40 Obligated balance. start of year: Unpaid obligations:
Treasury balance
31.582
98.780
197.980
Pregram by activities:
Obligated balance. end of year: Unpaid obligations
10.00
Total obligations
30.193
32,000
11.400
Treasury balance
-98.780
-197.980
-249.680
Financing:
90.00
Outlays
7,917,276
8,148,400
8.347.000
25.00
Unobligated balance expiring
4.121
40.00
Budget authority (appropriation)
34.314
32.000
11.400
All railroad retirees receive the equivalent of a social secu-
rity benefit, and they may also receive other add-ons includ-
Relation of obligations to outlays:
ing rail industry pension payments, windfall payments, and
71.00
Total obligations
30.193
32.000
11.400
72.90
Obligated balance. start of year: Fund balance
8.166
6,110
8.670
supplemental annuities. Social security benefits for former
73.00
Obligated balance transferred. net
-5,600
railroad employees are funded by the social security trust
74.90
Obligated balance. end of year: Fund balance
-6.110
-8.670
funds, and rail industry pension payments are the responsibil-
77.00
Adjustments in expired accounts
-1.438
ity of the rail sector.
90.00
Outlays
30.811
29,440
14.470
Status of Funds (in thousands of dollars)
Office of Inspector General activities include audits and
Identification code 60-8010-0-7-601
1994 actual
1995 est.
1996 est.
investigations, and the prevention and detection of fraud,
Unexpended balance. start of year:
waste, and mismanagement in the disposition of insolvent
0100
Treasury balance
-20.773
11.792
55,640
0101
U.S. Securities: Par value
1,454,763
1,564,247
1.815.580
savings and loan institutions and their assets by the Resolu-
tion Trust Corporation (RTC). The Office of Inspector General
0199
Total balance. start of year
1.433.990
1,576,039
1.871.220
(OIG) was established in April 1990 in accordance with the
Cash income during the year:
Inspector General Act of 1978, as amended and the Financial
Governmental receipts:
0200
Railroad Soc. Sec. equivalent ben. acct.. Taxes
1.807.957
1.854.600
1,871,000
Institutions Reform, Recovery, and Enforcement Act.
0201
Railroad Soc. Sec. equivalent ben. acct.. Receipts
The fiscal year 1996 budget is for the final three months
transferred to Federal hospital insurance trust
of the RTC OIG through December 31, 1995. After the RTC
fund
-394.400
--356.000
-364.000
sunsets on December 31, 1995, all RTC assets and liabilities
0202
Railroad Soc. Sec. Equivalent Ben. Acct.. Refunds
-14.488
-4.000
-4.000
will be transferred to the FSLIC Resolution Fund and the
Intragovernmental transactions:
0240
Railroad Soc. Sec. equivalent ben. acct.. Interest
RTC OIG's operations will merge with the FDIC OIG.
and profits on investments in public debt secu-
rities
77.902
115.700
128.500
Object Classification (in thousands of dollars)
0241
Railroad Soc. Sec. equivalent ben. acct.. Income
tax credits
56.073
39.181
51.182
Identification code 22-1500-0-1-373
1994 actual
1995 est.
1996 est.
0242
Railroad Soc. Sec. equivalent ben. acct.. Interest
Personnel compensation
transferred to Federal hospital insurance trust
11.1
Full-time permanent
16.885
18,174
4.982
fund
-18.531
-36.000
-38.000
11.5
Other personnel compensation
777
727
216
13
Railroad Soc. Sec. equivalent ben. acct. Receipts
from Federal old-age survivors ins. trust fund
3.419.562
3,669.000
3,773.000
11.9
Total personnel compensation
17.662
18.901
5.198
0244
Railroad Soc. Sec. equivalent ben. acct.. Receipts
12.1
Civilian personnel benefits
6.086
6.224
3,060
from Federal disability ins. trust fund
105.955
47,000
34,000
Benefits for former personnel
1.605
13.0
0245
Railroad Soc. Sec. equivalent ben. acct.. Advances
21.0
Travel and transportation of persons
1.893
2.337
546
from the general fund
3.019.295
3.114.100
3.171,400
22.0
Transportation of things
129
184
250
0297
Income under present law
8,059.325
8,443,581
8.623.082
23.2
Rental payments to others
1.306
1550
360
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a tabbed divider. Given our
digitization capabilities, we are sometimes unable to adequately
scan such dividers. The title from the original document is
indicated below.
I
Divider Title:
UNITED MINE WORKERS OF AMERICA BENEFIT FUNDS
DESCRIPTION: The UMWABF were established by the Coal Industry Retiree Health Benefit
Act of 1992 to take over paying for medical care for a selected group of retired miners and their
dependents who were eligible for health care from the private United Mine Workers of America
Benefit Plans. The Fund's trustees represent the UMWA and various coal companies. The
Fund is financed by assessments on current and former signatories to labor agreements with
the UMW; transfers from an overfunded UMW pension fund; and commencing in 1996,
transfers from the Abandoned Mine Land Reclamation Fund.
FY 1996 BUDGET PROPOSAL: The UMWA Combined Benefit Fund has a FY 1996 budget
authority of $333.152 million, a decrease of $7.886 million from FY 1995. The UMWA 1992
Benefit Plan has a FY 1996 budget authority of $10.632 million, an increase of $263,000 from
FY 1995 authorities. UMWABF has no FTE.
AGENCY PROPOSAL: UMWABF argues that it is not a federal agency subject to the NPR
phase II review. UMWABF argues that the Coal Act specifically recognizes these trusts as
private, multi-employer plans as described in Section 302(c)(5) of the Labor Management
Relations Act and employee welfare benefit plans within the meaning of the Employee Retiree
Income Security Act. The trusts are administered by boards of trustees who are appointed by
private persons and entities.
DECISION OPTIONS:
A.
Accept the UMWABF position and drop the funds from the NPR review.
B.
Review the UMWABF position further and reschedule for later Steering Committee
review.
ADVISORY GROUP RECOMMENDATION:
A.
Accept the UMWABF position and drop the funds from the NPR review.
RATIONALE: The fund does not appear to be a Federal agency.
STEERING COMMITTEE DECISION
i:\phaseinsateam\session4\recumwbf.dod
UMWA HEALTH AND RETIREMENT FUNDS
4455 Connecticut Avenue, NW
Washington, DC 20008
Telephone: (202) 895-3700
BY MESSENGER
February 21, 1995
The National Performance Review
750 17th Street, N.W.
Suite 200
Washington, DC 20006
Gentlemen:
As I discussed on the phone with Jerry Nikolaus on Friday,
February 17, the UMWA Health & Retirement Funds has now received
two faxes from your organization requesting our participation in
the National Performance Review as a small Federal agency. The
first fax, received on February 9, 1995, concerned an agency
liaison meeting on February 13. I called your office on February
10 and left a voice mail message requesting information about the
meeting but received no response. No representative of the Funds
attended the meeting. On February 17, we received a fax
directing submission of an option paper (no instructions
provided) by close of business today.
The Funds are a collection of collectively-bargained Taft-
Hartley trusts that provide pension and health benefits to
retired coal miners and their eligible beneficiaries. The UMWA
Combined Benefit Fund, and the UMWA 1992 Benefit Plan, two of the
health benefit trusts that comprise the Funds, were created
pursuant to the Coal Industry Retiree Health Benefit Act of 1992.
However, Sections 9702 and 9712 of the Coal Act specifically
recognize these trusts as a private, multiemployer plans as
discribed in Section 302 (c) (5) of the Labor Management Relations
Act and employee welfare benefit plans within the meaning of the
Employee Retiree Income Security Act. These trusts are
administered by boards of trustees who are appointed by private
persons and entities. The Funds' health benefit trusts also have
entered into arrangements with the Health Care Financing
Administration and the Department of Labor to provide Medicare
Part B and Federal black lung services to Funds' beneficiaries;
however, neither arrangement makes the Funds a Federal agency for
any purpose.
Enclosed please find a copy of the Funds' most recent annual
report, which describes the Funds' organization and financial
The National Performance Review
Page 2
status. As I told Mr. Nikolaus, the Funds do not believe that
they are a small Federal agency subject to the National
Performance Review and will not participate in the review until
there is an appropriate explanation of the need to do SO. If you
have any further questions, please contact me. My direct dial
number is (202) 895-3751.
Sincerely,
Margaret m. Topp Toppywa
Margaret M. Topps
Deputy General Counsel
MMT:as
(mt\NPR)
Enclosure
OTHER INDEPENDENT AGENCIES
1067
THOMAS JEFFERSON COMMEMORATION
Relation of obligations to outlays:
71.00 Total obligations
275.450
341.038
333.152
COMMISSION
90.00
Outlays
275,450
341.038
333.152
SALARIES AND EXPENSES
Program and Financing (in thousands of dollars)
The Fund was established by the Coal Industry Retiree
Health Benefit Act of 1992 to take over paying for medical
Identification code 48-0961-0-1-808
1994 actual
1995 est.
1996 est.
care of retired miners and their dependents who were eligible
for health care from the private 1950 and 1974 United Mine
Pregram by activities:
10.00 Total obligations
108
Workers of America Benefit Plans. The Fund's trustees rep-
resent the United Mine Workers of America and coal compa-
Financing:
21.40 Unobligated balance available. start of year: Treasury
nies. The Fund is financed by assessments on current and
balance
-90
-44
former signatories to labor agreements with the United Mine
24.40 Unobligated balance available. end of year: Treasury
Workers; transfers from an overfunded United Mine Workers
balance
44
pension fund; and, commencing in 1996, transfers from the
25.00 Unobligated balance expiring
44
Abandoned Mine Land Reclamation Fund.
40.00
Budget authority (appropriation)
62
Summary of Receipts (in thousands of dollars)
Relation et obligations to outlays:
1994 actual
1995 est.
1996 est.
71.00 Total obligations
108
Premiums
205.450
271.038
263.152
72.40 Obligated balance. start of year: Unpaid obligations:
Transfers from UMWA pension plan. combined benefit fund
70.000
70,000
Treasury balance
1
26
Transfers from Abandoned Mine Land Reclamation Fund
70.000
74.40 Obligated balance. end of year: Unpaid obligations:
Treasury balance
-26
Total receipts
275.450
341.038
333.152
90.00
Outlays
83
26
UNITED MINE WORKERS OF AMERICA 1992 BENEFIT PLAN
The Thomas Jefferson Commemorative Commission was es-
Program and Financing (in thousands of dollars)
tablished by P.L. 102-343 to honor the 250th anniversary
of Thomas Jefferson's birth. The Commission planned and
Identification code 95-8260-0-7-551
1594 actual
1995 est.
1996 est.
developed activities to commemorate the anniversary. The
Commission expired in 1994.
Pregram by activities:
10.00 Total obligations (object class 42.0)
10.510
10.369
10.632
Object Classification (in thousands of dollars)
Financing:
60.27 Budget authority (appropriation) (trust fund. indefi-
trfication code 48-0961-0-1-808
1994 actual
1995 est.
:996 est.
nite)
10.510
10.369
10.632
Personnel compensation:
11.1
Full-time permanent
24
Relation et obligations to outlays:
5
71.00
Total obligations
10.510
10.369
10.632
11.3
Other than full-time permanent
Total personnel compensation
29
90.00
11.9
Outlays
10.510
10.369
10.632
12.1
Civilian personnel benefits
7
21.0
Travel and transportation of persons
4
The Plan was established by the Coal Industry Retiree
23.2
Rental payments to others
5
23.3
Communications. utilities. and miscellaneous charges
3
Health Benefit Act of 1992. It pays for health care of miners
24.0
Printing and reproduction
3
retired between July 21, 1992 and September 30, 1994, and
25.3
Purchases of goods and services from Government
their dependents. who are eligible for benefits under an em-
accounts
20
ployer plan and cease to be covered. usually because an em-
26.0
Supplies and matenais
1
41.0
Grants. subsidies. and contributions
36
ployer is out of business. Plan trustees are appointed by the
United Mine Workers of America and the Bituminous Coal
99.9
Total obligations
108
Operators Association. a coal industry bargaining group. The
Plan is supported by signatories to the 1988 labor agreement
Personnel Summary
with the United Mine Workers of America.
Identification code 48-0961-0-1-808
1994 actual
1995 est.
:996 est.
Summary of Receipts (in thousands of dollars)
1001 Total compensable workyears: Full-time equivalent
1994 actual
1995 est.
1996 est.
1
Premiums
10.510
10.369
10.632
employment
Total receipts
10.510
10.369
10,632
UNITED MINE WORKERS OF AMERICA
UNITED STATES ENRICHMENT
BENEFIT FUNDS
CORPORATION
Trust Funds
Federal Funds
UNITED MINE WORKERS OF AMERICA COMBINED BENEFIT FUND
Public enterprise fund:
Program and Financing (in thousands of dollars)
UNITED STATES ENRICHMENT CORPORATION FUND
Identification code 95-8295-0-7-551
1994 actual
1995 est.
1396 est.
Program and Financing (in thousands of dollars)
Program by activities:
identification code 95-4054-0-3-271
1994 actual
1995 est.
1996 est.
10.00 Total obligations (object class 42.0)
275.450
341.038
333.152
Program by activities:
Financing:
00.01
Operating Expenses
1.418.749
1.211.700
1.320.143
60.27 Budget authority (appropriation) (trust fund. inden-
00.02
Capital Expenses
46.500
41.300
40.000
nite)
275.450
341.038
333.152
10.00
Total obligations
1.465.249
1.253.000
1.350.143