LEGISLATIVE UPDATE – NOVEMBER 2011
Update on Contract
Dispute
Six days of hearings held by Presidential Emergency Board
243 (PEB) in the nearly two-year-old dispute between the nation’s largest rail
carriers and 11 rail unions over national wages, work rules, and health and
welfare benefits ended on October 20, 2011 (for
background information, see “Strike Averted – At Least for Now” in October
update). In their presentations to the PEB, the unions stressed their position
that the UTU agreement did not establish a pattern for the 11 other rail unions
that were not a party to that agreement. Each union presented argument,
evidence, and testimony regarding major issues of craft-specific importance to
its members. The BLET’s presentation sought favorable PEB recommendations
regarding: (1) elimination of the entry rate and the two-tiered pay system; (2)
adoption of the away-from-home-terminal meal allowance provision contained in
the BLET Collective Bargaining Agreement, with CSX Transportation as the
national standard; (3) immediately increasing the certification allowance to
$10.00 per trip or tour of duty, adjusted for future general wage increases;
and (4) improved and enforceable minimum locomotive cab standards. As part of
his testimony, BLET National President Pierce provided a detailed explanation
of how distributive power is utilized, while playing a video showing the
9-locomotive, 294-car, 3-mile-long “monster train” that Union Pacific operated
between Dallas, Texas, and Long Beach, California, in January 2010.
Other joint issues presented by rail labor included: (1) general wage increases greater
than those agreed to in the last round of bargaining; (2) a
sixth week of vacation for those with more than 25 years’ service and proration
of vacation for those who fail to qualify for the full allotment; and (3) no
changes to the health care benefits.
As set forth by the Railway
Labor Act, the PEB must render its recommendations within 30 days of the date
it was established, which means a decision is due no later than November 6,
2011. At that time, another 30-day cooling off period will begin to give the
parties a chance to reach an agreement considering the recommendations of the
PEB. The members of the PEB may, however, request an extension of time to
render their recommendations. Stay tuned for future updates on this matter.
High Speed Rail
Project Underway in
Officials broke ground on October 10 on the $133-million Englewood
Flyover Project, a new bridge designed to reduce train congestion at one of
Medicare Part B Premiums for 2012
The following notice regarding Medicare Premiums for 2012 was posted on
the Railroad Retirement Board website at http://www.rrb.gov/pdf/opa/pr1111.pdf.
The standard Medicare Part B
monthly premium will be $99.90 in January 2012, an increase of $3.50 for most
beneficiaries.
For the past 2 years, most
beneficiaries continued to pay a monthly premium of $96.40. This was due to a
“hold harmless” provision in the law that prevents Medicare premiums from
increasing for most participants if there is no social security cost-of-living
adjustment. Since social security benefits will increase by 3.6 percent in
2012, most people will see their Medicare Part B premium increase from $96.40
to $99.90.
Beneficiaries who first enrolled
in Part B coverage during 2010 or 2011 paid a monthly premium of $110.50 or
$115.40, respectively. As a result, the new standard premium of $99.90 will
cause their premium to decrease by $10.60 or $15.50 a month.
Some beneficiaries will continue
to pay higher premiums based on their modified adjusted gross income. The
monthly premiums that include income-related adjustments for 2012 will be
$139.90, $199.80, $259.70, or $319.70, depending on the extent to which an
individual beneficiary’s modified adjusted gross income exceeds $85,000 (or
$170,000 for a married couple). The highest premium rate applies to
beneficiaries whose incomes exceed $214,000 (or $428,000 for a married couple).
The Centers for Medicare & Medicaid Services estimates that about 5 percent
of Medicare beneficiaries pay the larger income-adjusted premiums.
Beneficiaries in Medicare Part D
prescription drug coverage plans pay premiums that vary from plan to plan.
Beginning in 2011, the Affordable Care Act required Part D beneficiaries whose
modified adjusted gross income exceeds the same income thresholds that apply to
Part B premiums to also pay a monthly adjustment amount. These beneficiaries
will pay the regular plan premium to their Part D plan and will pay the
income-related adjustment amount to the Railroad Retirement Board. The
adjustment amount ranges from $11.60 to $66.40.
Tables showing the income-related
premium adjustments for 2012 can be found at http://www.rrb.gov/pdf/opa/pr1111.pdf.
The Social Security Administration (SSA) is responsible for all income-related
monthly adjustment amount determinations. To make the determinations, SSA
uses the most recent tax return information available from the IRS. For
2012, in most cases that will be the beneficiary’s 2010 tax return information.
If that information is not available, SSA will use information from the 2009
tax return.
Those railroad retirement and
social security Medicare beneficiaries affected by the 2012 Part B and D
income-related premiums will receive a notice from SSA in November 2011.
The notice will include an explanation of the circumstances where a beneficiary
may request a new determination. Persons who have questions or would like
to request a new determination should contact SSA after receiving their
notice.
Additional information about
Medicare coverage, including specific benefits and deductibles, can be found at
www.medicare.gov.