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Program Assessment


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Railroad Unemployment Insurance Trust Fund

The purpose of the Railroad Unemployment Insurance program is to provide income protection for rail employees in the event of temporary unemployment or sickness. The program pays unemployment and sickness benefits to employees from taxes assessed on rail employers.


What This Rating Means


This is the highest rating a program can achieve. Programs rated Effective set ambitious goals, achieve results, are well-managed and improve efficiency.
  • The program pays benefits accurately and timely. In 2006, the program paid out $73.2 million in benefits, net of recoveries, to 29,000 railroad employees. The Railroad Retirement Board operates efficiently: total administrative costs are about 1%, and unemployment/sickness payment accuracy is consistently over 99%. Also, the program consistently pays over 99% of claims within 10 days.
  • The program is tracking and achieving the majority of its performance measures. The program tracks meaningful performance measures, and has met most of its annual targets in recent years. In response, the program set more aggressive targets for 2009. The payment accuracy target increases from 98% in 2007 to 99.25% in 2009, which is higher than agency performance in 4 of the last 5 years.
  • The 2006 financial statement audit identified two management deficiencies which impact program administration. The agency is working on these deficiencies, and expects the 2007 financial statement audit to reflect that one has been remedied.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Modernizing the delivery of customer service by implementing a nationwide toll-free telephone system that can automatically route calls to available representatives.
  • Expanding the document imaging system to field offices to reduce paperwork, improve efficiency and effectiveness, and help protect customer information within a secure electronic environment.
  • Improving the information systems infrastructure through database conversion and data optimization initiatives, which will enable further modernization of claims processing systems in the future.

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