Detailed Information on the
Railroad Unemployment Insurance Trust Fund Assessment

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 currently used in agency headquarters to field offices, reduces paperwork, improves efficiency and effectiveness, and helps protect personally identifiable 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.

Measure: Payment Accuracy - Unemployment Insurance

Explanation:Percentage of dollars paid correctly. Since one of the program's primary missions is to provide benefits for rail employees while they are unemployed, ensuring that their benefits are received without material error is one of the critical goals of the program.

Measure: Payment Accuracy - Sickness Insurance

Explanation:Percentage of dollars paid correctly. Since one of the program's primary missions is to provide benefits for rail employees while they are experiencing a period of sickness, ensuring that their benefits are received without material error is one of the critical goals of the program.

Measure: Timeliness of Unemployment and Sickness Insurance Payments

Explanation:Percentage of payments or denials issued within 10 days of receipt of claim. This program provides benefits to railroad workers and their dependents during periods of unemployment or sickness. It is important to minimize the amount of time between when an applicant files for benefits and when they receive a payment or a notice providing the reason for the denial.

Measure: Number of Electronic Services Available to Beneficiaries

Explanation:Number of services available to active workers and beneficiaries through electronic media. These services include allowing rail employees to apply for unemployment insurance programs online, and to view and request service and compensation history statements on line.

Measure: Number of Electronic Services Available to Rail Employers

Explanation:Number of electronic services available to rail employers through electronic media. These services include automated reporting of employee compensation by employers, which help ensure that wage records are correctly recorded.

Measure: Return on cost of program integrity efforts

Explanation:Dollar recoveries and savings compared to dollars spent on program integrity activities

Measure: Employer participation in on-line services

Explanation:Percentage of rail employers that use on-line services to exchange various types of information with the RRB. As more wage reporting is done electronically, this significantly decreases the processing time for posting wages to benefit records and increases the accuracy and timeliness of unemployment and sickness benefits.

Is the program purpose clear?

Explanation:

The Railroad Unemployment Insurance Act (RUIA) program purpose is clear: to provide unemployment and sickness benefits for eligible railroad workers.

The railroad unemployment insurance system was established in the 1930's. While the State unemployment programs generally covered railroad workers, railroad operations which crossed state lines caused special problems. A federal commission recommended railroad workers be covered under a separate plan, financed entirely by railroad employers and the RUIA was enacted in 1938. Sickness benefits were added in 1946.

Evidence:

Railroad Unemployment Insurance Act -- 45 U.S.C. §§ 351-369

RRB Mission Statement -- "The Railroad Retirement Board's mission is to administer retirement/survivor and unemployment/sickness insurance benefit programs for railroad workers and their families under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. These programs provide income protection during old age and in the event of disability, death or temporary unemployment and sickness. The Railroad Retirement Board also administers aspects of the Medicare program and has administrative responsibilities under the Social Security Act and the Internal Revenue Code.

In carrying out its mission, the Railroad Retirement Board will pay benefits to the right people, in the right amounts, in a timely manner, and will take appropriate action to safeguard our customers' trust funds. The Railroad Retirement Board will treat every person who comes into contact with the agency with courtesy and concern, and respond to all inquiries promptly, accurately and clearly."

For a more detailed explanation, please see the Profile of the Railroad Retirement Board on pages 50 to 53 of the RRB Strategic Plan via the following link: http://www.rrb.gov/pdf/strategicplan/strategicplan2006.pdf

CRS Report for Congress, "Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits," updated January 16, 2007

Does the program address a specific and existing problem, interest, or need?

Explanation:

The railroad unemployment and sickness insurance program provides a nationwide unemployment and sickness benefit package for railroad employees who are out of work because of unemployment or sickness. There is a current need for such a program just as there was when the program was established in the 1930's.

The railroad industry, by its very nature, is a multi-state business with rail carriers operating in many different states. Many rail carriers also have employees who live in different states and who work on trains that operate in more than one state. A single, nationwide unemployment and sickness benefit system conforms to the multi-state structure of the rail industry and provides a uniform level of benefits under consistent eligibility rules for employees of rail carriers.

The railroad unemployment and sickness benefit system has developed separate and apart from the Federal/State unemployment system and in many ways is different from the Federal/State system, which itself varies from state to state. A major difference is the provision of sickness benefits under the railroad unemployment and sickness benefit system. Few states provide such benefits. Railroad employees need look to only one program when they are out of work because of either unemployment or sickness. Eligibility rules also differ from the rules under the various state programs. Employees who meet the basic service and earnings requirements under the Railroad Unemployment Insurance Act may not meet the requirements under the different rules of the various state programs. Finally, railroad employers need only deal with one agency and program in paying contributions to cover the costs of unemployment and sickness benefits for their employees.

The railroad unemployment and sickness benefit program is, like the railroad retirement program, highly valued by railroad employees. It is tailored to meet the needs of the railroad industry, which in many ways, is unique.

As the railroad industry has evolved and as the needs of railroad employees and their families have changed, the railroad unemployment and sickness benefit program has changed as well. The most recent major revisions to the program occurred in 1988. Public Law 100-647, which was signed into law by President Ronald Reagan, made significant changes in the benefit levels provided under the railroad unemployment and sickness benefits program by indexing benefit levels and replacing the flat rate financing system with an experience-rated system that sets the contribution rates for employers consistent with the level of benefits payable to their employees. The 1988 amendments also provide for imposition of a surtax that becomes payable when the account balance declines below certain, specified levels. The changes enacted in 1988 have placed the railroad unemployment and sickness insurance system on a sound financial basis and have resulted in benefit payments that better protect railroad employees and their families when employees are out of work.

Evidence:

During fiscal year 2006, net unemployment and sickness benefits of $73 million were paid to some 28,000 claimants. See page 1 of the Railroad Retirement Board Agency Overview via the link: http://www.rrb.gov/opa/agency_overview.asp

(1) Public Law 98-76, Title V, section 504, 97 Stat. 441 (1983)

(2) Public Law 100-647, Title VII, 102 Stat. 3757 (1988)

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation:

The railroad unemployment and sickness benefit program is a unique temporary assistance program which provides both unemployment and sickness benefits to railroad workers. No other federal or state government benefits are payable to railroad workers based on their railroad employment. The Railroad Unemployment Insurance Act precludes duplication of benefits under other programs, including the Federal/State unemployment program, railroad retirement benefits, social security benefits, and other social insurance programs. It also addresses the possibility that sickness benefits may have been paid to an individual who later receives a personal injury award for the same infirmity by providing a statutory lien against any such award.

While there are certain similarities with the Federal/State unemployment program, the railroad unemployment and sickness benefit program is tailored to the needs of railroad workers and coordinated with other programs that cover the railroad industry. Unlike nearly all of the state unemployment programs, the railroad unemployment and sickness insurance program provides sickness benefits. While such benefits may be provided under private plans that employers could provide for their employees, the railroad unemployment and sickness benefit program provides sickness benefits at a uniform benefit level and under consistent eligibility rules for all railroad workers across the country. Railroad employers may provide supplemental sickness benefits for their employees, if they so choose, but any such supplemental benefits must be fully coordinated with benefits under the Railroad Unemployment Insurance Act so as to avoid duplication.

In addition to the difference between the railroad unemployment and sickness benefit program and nearly all state programs with respect to the provision of sickness benefits, benefit eligibility rules, which under the railroad system are uniform across the country, differ in many respects from the rules under the programs of the various states. Railroad employers need to know and understand only one set of eligibility rules in contesting benefit payments, whereas they would be required to know and understand the rules applicable in each state where they operate if they were covered by the Federal/State system. Payment of contributions to a single agency, rather than overlapping contributions for multi-state employees, avoids potential duplication of effort for railroad employers. Multi-state employees need only look to one agency for benefits when they are out of work and any potential for duplication of benefits is avoided for such employees under the railroad system. One other very significant difference between the railroad unemployment and sickness benefit program and the Federal/State unemployment program is the fact that the railroad system is designed as a daily benefit program, consistent with the rail industry's intermittent employment practices. State programs, on the other hand, are based on unemployment measured by weeks, instead of days.

The railroad unemployment and sickness benefit system meets the needs of a unique industry and of the employees who work in that industry. The system delivers benefits very effectively and efficiently and does not duplicate any other federal, state, or private program.

Evidence:

Railroad Unemployment Insurance Act - Section 2 and 4 , see 45 U.S.C. §§ 352, 354

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation:

There are no major flaws that limit the RUIA program's effectiveness or efficiency. The program centralizes and standardizes railroad industry benefit payments. RUIA benefits are financed solely by railroad employers, through contributions based on the taxable earnings of their employees, using an experience-rated model. Each employer's payroll tax rate is determined annually by the RRB on the basis of benefit payments to the railroad's employees.

Like the RRA, legislation revising the program has been enacted periodically, reflecting negotiated agreements between rail labor and rail management.

The agency continually pursues opportunities for improvement identified in its programmatic reviews. As a result, the RUIA progam has realized efficiencies, providing a high performance level over many years with fewer resources.

Finally, the design of the RUIA program provides for effective and efficient delivery of benefits and services to the intended beneficiaries who require support during periods of unemployment and temporary sickness or injury. There is no evidence that the program's purpose of providing for uniform nationwide unemployment and sickness benefits to the rail industry would be better served by the Federal/State Unemployment Program. The Railroad Unemployment Insurance Act, as amended in 1988 based on the joint agreement of railroad labor and management, has functioned very well, providing benefits to out-of-work railroad employees on a timely basis and at a reasonable cost.

Evidence:

Public Law 100-647

CRS Report for Congress, "Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits," updated January 16, 2007

See the 2006 Annual Performance Report on pages 45-52 of the Fiscal Year 2006 Performance and Accountability Report via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Also see the Message from the Chief Financial Officer on page 57 of the Fiscal Year 2006 Performance and Accountability Report via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

See agency staffing history on page 15 of the RRB's Justification of Budget Estimates for 2008 via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See "US Railroad Retirement Board, An Agency Overview" at http://www.rrb.gov/opa/agency_overview.asp

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation:

The Railroad Unemployment Benefit Program provides for uniform nationwide coverage for railroad workers who become unemployed, injured or sick. Up to 26 weeks of normal unemployment or sickness benefits are payable to an individual in a benefit year. Additional extended benefits are payable to persons with 10 or more year of service. It does not duplicate other programs, but coordinates with them to ensure that there is no overlap.

As of the end of fiscal year 2006, the RUIA program provided payments of 9,000 unemployment claims, and 20,000 sickness claims for a total of $73.2 million in benefits, net of recoveries.

Administrative costs for this and the Railroad Retirement Program together are about 1 percent - a very efficient targeting of program resources to the actual beneficiaries.

The RRB adjudicates applications for unemployment and sickness benefits and verifies entitlement through a legally required 3-day pre-payment review process with rail employers.

The RRB conducts numerous, comprehensive monitoring programs (e.g., state wage matches, annual wage record audit, physician verification) to ensure benefits are being paid to the correct beneficiaries.

The fact that the level of RUIA improper payments is below the $10 million threshold defined in law as "significant" further demonstrates that benefits are reaching the intended beneficiaries.

The high rate of RUIA claimants participating in the EFT program (86.1%) gives further assurance that payments are reaching beneficiaries in a safe and secure manner.

Evidence:

See the Program Integrity key performance indicator on page 29 of the Fiscal Year 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Improper Payments Information Act (IPIA) Reporting Details on pages 105-108 of the Fiscal Year 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

CRS Report for Congress, "Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits," updated January 16, 2007

See "US Railroad Retirement Board, An Agency Overview" at http://www.rrb.gov/opa/agency_overview.asp

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation:

The purpose of the RUIA program is to administer unemployment and sickness insurance benefits for railroad workers. As stated in the agency mission statement:

"In carrying out its mission, the Railroad Retirement Board will pay benefits to the right people, in the right amounts, in a timely manner, and will take appropriate action to safeguard our customers' trust funds. The Railroad Retirement Board will treat every person who comes into contact with the agency with courtesy and concern, and respond to all inquiries promptly, accurately and clearly."

The most important outcomes, as stated clearly in the mission, are that individuals receive their benefits correctly, and on time. This is also reflected in RRB's Strategic Plan, which states the two primary strategic long-term goals of the agency:

?? To provide excellent customer service
?? To serve as responsible stewards for customer trust funds and agency resources.

Nested within these strategic goals are 6 performance measures which indicate progress towards achieving the goals.

The long-term timeliness and accuracy measures focus on outcomes that directly impact the customer, who is either unemployed or unable to work due to sickness or injury. They specifically deal with how quickly payments can be delivered and how accurate those payments are. These measures provide meaningful indicators of the RRB's achievement of its overall purpose and mission of providing benefits to the right people, in the right amounts in a timely, efficient manner.

?? Maintaining a high unemployment insurance benefit payment accuracy rate;
?? Maintaining a high sickness insurance benefit payment accuracy rate;
?? Maintaining timeliness of unemployment and sickness insurance payments

The last long-term goal focuses on outputs and efficiency; progress is gauged by 3 performance measures related to information technology improvements:

?? Increasing the number of electronic service options available for beneficiaries
?? Increasing the number of electronic service options available for rail employers
?? Increasing the percentage of employers who use available electronic service options

Evidence:

See Program Performance Measures Section of this assessment for information on the RUIA program's long-term outcome measures.

See the Information Technology Strategy and Benefits section, pages 71-77, of the RRB's Justification of Budget Estimates for 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation:

The targets and timeframes for the RUIA program's long-term measures are ambitious because they require improvement or maintenance of existing high performance levels while the program is required to achieve administrative efficiencies. The measure related to online services requires an increase of employers using the available on-line services from approximately 60% in 2007 to 90% in 2011. Likewise, the program is striving to increase the number of services available to rail employers by 9 and the number of services available to beneficiaries by 3 between 2008 and 2011. The accuracy measures are often above 99%, and the long-term target for unemployment is set at 99.8% and for sickness at 99.9% as ambitious goals.

The RRB's Strategic Plan identifies the management challenges for maintaining excellent performance in a downsized environment. The agency anticipates that budgetary resources will be increasingly limited in the future, yet it must continue to meet customer expectations for personal, high quality service (accurate, timely benefits delivered in an accessible, convenient manner). Long-term measures for benefit accuracy and for unemployment and sickness insurance benefit payment timeliness help meet that challenge. Long-term plans for developing additional electronic service options for beneficiaries and rail employers address customer expectations for new and improved services and provide innovative ways to operate effectively and efficiently in a downsized environment. All of these targets and timeframes are particularly ambitious and are dependent on IT investments in new systems development.

Evidence:

See Strategic Issues and Challenges on pages 4-6 of RRB Strategic Plan 2006-2011. This can be reached via the following link: http://www.rrb.gov/pdf/strategicplan/strategicplan2006.pdf

See agency staffing history on page 15 of the RRB's Justification of Budget Estimates for 2008 via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See Exhibit 53 on pages 80-81 of the 2008 Budget Submission. This can be accessed through the following link: http://www.rrb.gov/bfo/budget_submission/2008/intro.asp

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation:

The RUIA has annual measures that address program performance and demonstrate progress toward achieving the program's long-term goals and ultimately the agency mission of paying the right amounts, to the right people in a timely, efficient manner. The most important outcomes for beneficiaries, as stated clearly in the mission, are that individuals receive their benefits correctly, and on time. As discussed in Question 2.1, specific indicators in the annual performance budget are linked to each of the RRB's two strategic goals:

?? To provide excellent customer service
?? To serve as responsible stewards for customer trust funds and agency resources.

Annual performance indicators deal with the accuracy and timeliness of payments, ensuring efficient and effective business transactions with covered railroad employers, and ensuring the integrity of benefit programs through a variety of methods.

As discussed in the response to Question 2.1, each of the long-term goals for the RUIA program can be linked to specific indicators in the RRB's annual performance budget that demonstrate progress toward achieving the program's long-term goals.

Evidence:

See the Performance Measures Section of this assessment for information on annual measures.

See RRB's Customer Service Plan at: http://www.rrb.gov/AandT/customer_service_plan.asp

Does the program have baselines and ambitious targets for its annual measures?

Explanation:

The RRB has well-established baselines for its current annual RUIA measures. Most key measurement data for accuracy and timeliness indicators, as well as several other indicators, date back to 2001. Although the program has achieved most of its annual targets in the past, the targets are still ambitious. Also, the targets for 2009 will be increased, to reflect that many of the measures have achieved their targets in recent years. The goals for the timeliness measures, which have achieved over 99% in the past, will be increased in 2009.

When evaluating whether these measures are ambitious, one factor that must be considered is the downsizing that the agency has undergone, while performing a caseload of work that declined much less rapidly than the number of staff. The RRB has reduced its staff by over 44% since 1993, while the customer base has declined by only 28%. The program has met its targets in large part due to significant automation and modernization of systems to produce new efficiencies in claims processing.

One annual target, the payment accuracy of sickness insurance payments, is 99.70% for FY 2008. This was an increase of 1.7% over the goal of 98.00% which had been in place for the previous 3 years. Based on actual performance of 99.78% or higher for FY 2005 and FY 2006, the annual target for FY 2009 will be increased to 99.80 %. Other annual targets for FY 2009 will be adjusted similarly.

Into the future, meeting the annual goals for 2009 and beyond will require additional efficiencies, since over 56% of RRB staff is eligible for retirement within the next 5 years. To achieve similar targets in the future, the program will require realizing significant gains in productivity and identification of further efficiencies through additional automation initiatives with fewer and less experienced staff in the out years.

Evidence:

See agency FY 2008 Final Performance Budget section on pages 43-57 of the RRB's Justification of Budget Estimates for Fiscal Year 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See agency staffing history on page 15 of the RRB's Justification of Budget Estimates for Fiscal Year 2008 via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation:

Annual and long-term goals of the RUIA program involve the accurate and timely payment of unemployment and sickness benefits to entitled claimants. These are supported through partnerships with the Internal Revenue Service (IRS), the Financial Management Service (FMS) of the Department of the Treasury (FMS), as well as railroad employers. The IRS supports the goals by withholding taxes from benefit payments and electronically depositing those taxes. The Department of the Treasury contributes by issuing RUIA benefit payments, and providing the Pay.Gov web-based facility for collection of debts related to the RUIA program. Rail employers work closely with the agency to support the pre-payment verification and debt collection processes which are essential to the accuracy and integrity of benefit payments.

Evidence:

Procedures established with IRS to withhold and electronically deposit taxes

Procedures established with Treasury (FMS) to issue benefit payments

Agreement with Treasury (FMS) to use Pay.Gov for debt collections under the RUIA

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation:

Evaluations have been conducted for the Railroad Unemployment Insurance Act program with respect to administrative costs, payment accuracy, the wage reports underlying benefit eligibility, the integrity of the data from which benefit eligibility is derived, and customer satisfaction.

The RRB has a statutory Inspector General (IG) who reports to the Chairman of the Board and submits separate budget and performance information to OMB and Congress. The RRB's Office of Inspector General (OIG) conducts a variety of reviews and audits of the RUIA program. The OIG has also audited the RRB's use of the Employment Data Maintenance database, which provides a basis for eligibility under the Unemployment and Sickness program. In addition, the OIG conducts a comprehensive financial statement audit, which includes a review of the RRB's administrative costs, annually.

The American Customer Satisfaction Index (ACSI), independently conducted by the Claes Fornell International Group, periodically evaluates RUIA customers' satisfaction in areas such as the accuracy and clarity of information, the ease of applying for benefits, and timeliness in receiving service, as well as their confidence in the RRB's ability to handle their complaints and do a good job in the future. This instrument also evaluates customer satisfaction with the professionalism and courtesy of RRB personnel and provides comparative data with other agencies and organizations that provide similar services.

RUIA adjudicative and payment accuracy is measured in regular reviews conducted by the RRB's Assessment and Training component. Assessment and Training also evaluates policies and processes through special studies, as needed. As a result of a study conducted in 2004 of the process to check with the rail employer prior to payment for specific days of unemployment or sickness claimed, the agency set standards for processing, issued procedures and training material and worked with some rail employers to clarify the meaning of some of the responses. A follow up study issued in 2007 found a 53% decrease in delayed cases, and a 1.45% decrease in cases handled incorrectly. Assessment and Training reports to the Director of Programs and is independent of the organizations it assesses.

Evidence:

The Inspector General Act of 1978, as amended, 5 U.S.C. Appendix 3 http://www.access.gpo.gov/uscode/title5a/5a_2_.html

See the Office of Inspector General's recent Semiannual Reports, such as September 2006, March 2006: http://www.rrb.gov/oig/library.asp

An overview of the American Customer Satisfaction Index (ASCI) can be reached via the following link: http://www.theacsi.org/

Results of the 2002 ACSI Survey of unemployment and sickness benefit recipients are available upon request.

Assessment and Training Report 07-08 "Review of Automated Prepayment Claim Verification" is available upon request.

Fiscal Year 2006 Performance and Accountability Report; see: http://www.rrb.gov/pdf/bfo/par2006.pdf

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation:

The RRB budget request explicitly ties all administrative expenses to the costs of the agency's two strategic goals:

?? To provide excellent customer service
?? To serve as responsible stewards for customer trust funds and agency resources.

The RRB has also developed annual performance goals that directly relate to the long-term goals in the Strategic Plan. Further, each of the annual performance goals is linked to specific performance measures.

The annual performance budget for program administration shows the variations in results attainable at different budget levels for each of the annual performance goals and reflects the agency's ability to support the RUIA mission at various funding levels. The performance budget is based on current workload projections and reflects the impact of recent and planned improvements to the agency's information systems.

The RRB's performance budget includes all direct and indirect costs. When RRB generates costs for other programs, it reimburses those other programs for those costs. It presents detailed performance goals, performance indicators, and production target levels, and also shows the effect of varying levels of resources (including funding for IT investments) on performance and production. The performance budget also supports other programmatic and functional plans to such as the Customer Service Plan and Information Technology Capital Plan.

When the agency anticipates that budgetary resources will be limited in the future, the budget and performance plans still reflect long-term improvements in, or at least maintenance of, high program performance levels in spite of fewer resources.

Evidence:

See the Budget Authority by Strategic Goal discussion on page 14 of the RRB's Justification of Budget Estimates for Fiscal Year 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See Performance Budget section on pages 29-57 of the RRB's Justification of Budget Estimates for Fiscal Year 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation:

The RRB continuously assesses, evaluates and improves its strategic planning effort to prevent planning deficiencies. The Planning Council oversees both mid-year and year-end monitoring of the RRB's annual performance budget. A separate committee reviews and updates the Strategic Plan every three years. In the 2006 Strategic Plan update, the agency expressed its long-term goals more clearly. In addition, the RRB has updated the annual performance budget to more clearly focus on outcome measures.

Evidence:

See agency FY 2008 Final Performance Budget section on pages 43-57 of the RRB's Justification of Budget Estimates for Fiscal Year 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Administrative Circular (REF) RRB-2, updated on October 17, 2006, describes the purpose, composition, authority and frequency of meeting of the Planning Council.

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation:

RUIA benefit accuracy and timeliness data are collected on a quarterly basis. Managers must validate this data through a documented process, certify its accuracy and disclose any limitations about the data. This performance information is used by managers to make adjustments in resource allocation and workload management and to identify training needs.

Evidence:

The RRB uses performance data to manage and improve performance as needed. As an example, training to improve performance addressed specific findings of a quality assurance review of the pre-payment verification process.

Timeliness data is collected twice a year and compared to the agency's Customer Service Plan (CSP), as well as the annual performance targets. The CSP can be accessed via the following link: http://www.rrb.gov/pdf/ib3.pdf

A summary of the data, as well as charts showing trends and volumes over time is published on the agency's intranet, and released internally to program managers who make adjustments as needed to ensure that targets will be met. Once a year, information about the percentage of customers receiving the service promised in the CSP is published via press releases, posters and on the agency web site at http://www.rrb.gov/.

Administrative Circular RRB-2, published October 11, 2006, describes Procedures for Documentation, Validation and Certification of Performance Information.

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation:

RRB managers at all levels are held accountable for key performance results. In particular, Senior Executive Service (SES) performance plans are linked to the Strategic Plan. Performance plans of responsible managers also include elements and standards that hold them accountable to key performance goals. RRB's relationships with IRS and the State/Federal unemployment insurance program regarding the Rail Unemployment Insurance program are defined by statute, memoranda of understanding, or formal procedures.

Evidence:

The RRB's SES performance appraisal program has received provisional certification from OPM for 2004 through 2006. The Office of Personnel Management encouraged the RRB to request full certification for 2007 because the RRB has consistently met the requirements for certification even when the requirements have been modified.

Are funds (Federal and partners') obligated in a timely manner, spent for the intended purpose and accurately reported?

Explanation:

The RRB uses the Federal Financial System (FFS) for core financial operations. The system integrates budget preparation, budget execution, purchasing, accounts payable, automated disbursement, general ledger and supplies management. The program funds are obligated in a manner consistent with the plan and overall design of the program. The RRB's Fiscal Year 2006 Performance and Accountability Report (P&AR) included a management assurance that "The financial management systems of this agency maintain accountability for assets and provide reasonable assurance that obligations and costs are in compliance with applicable law, and that performance data and proprietary and budgetary accounting transactions applicable to the agency are properly recorded and accounted for to permit the timely preparation of accounts ??" The P&AR also included a management assurance that the financial management systems of the agency provide the RRB with reliable, timely, complete, and consistent performance and other financial information to make decisions and efficiently operate and evaluate programs. The Federal Financial System also provides a mechanism for reporting actual expenditures, and ensures that no obligations are issued for which there are not budgetary resources available to pay.

Railroad unemployment and sickness insurance benefit payments are mandatory outlays. The RRB's Bureau of the Actuary projects total amounts by fiscal year. In accordance with instructions in OMB Circular A-11, the RRB's Bureau of the Actuary also prepares a schedule of estimated monthly outlays, which includes administrative costs.

Administrative operations are managed in accordance with an annual performance budget prepared in connection with the agency's annual budget request. Initial allocations to the RRB's operating units are approved by the Board Members. Formal budget reviews are conducted during the year and reallocations are made as necessary, consistent with agency priorities. These adjustments are also approved by the RRB's Board Members. End-of-year operations are controlled to prevent wasteful year-end spending. Actual performance for the year is reported in the RRB's Government Performance and Results Act report, which is included in the agency's P&AR. There have always been minor positive unobligated balances at the end of the year, which remain available for 5 years to cover legitimate charges to that fiscal year.

Evidence:

Report on Budget Execution and Budgetary Resources (SF-133)

Financial Section of the Fiscal Year 2006 Performance and Accountability Report, pages 57-78. These can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Required Supplementary Stewardship Information: Social Insurance section of the Fiscal Year 2006 Performance and Accountability Report, pages 79-88. These can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

The budget review process which includes a review of initial allocations and a review of the budget at mid-year, third quarter and again at year-end.

Administrative Circular OA-14, Procurement of Goods and Services

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation:

The RRB continually looks for ways to improve program efficiency and administration of the RUIA program, relying heavily on information technology improvements to offset the impact of staffing reductions. The following examples are currently in place and operational:

?? Document Imaging System, which enables most processes to be performed in a paperless, electronic manner;
?? Adjudication and payment systems, which provide consistent, accurate benefit calculations in an automated environment;
?? RUIA Net, an Internet service which allows unemployment claimants to file applications and claims on-line; and
?? Comprehensive databases which store key data needed to administer the benefits.

The RRB is also working on several key IT and telecommunications projects geared to achieve additional efficiencies and cost effectiveness, including:

?? Database conversion, a project to convert an outdated database platform used throughout most of the benefit systems to a more modern and flexible platform which will reduce risk and increase flexibility for future development efforts;
?? E-gov initiatives, including an enhancement to RUIA Net to allow sickness claimants to file sickness claims on-line through the RRB's Website;
?? Expanded internet reporting functions for rail employers;
?? Customer contact log, an on-line system to enable consistent tracking of customer contacts throughout the field service and headquarters; this will increase the flexibility of staff to handle customer calls and contacts from any location, regardless of their original point of contact; and
?? Introduction of nationwide toll-free telephone services, based on automated call distribution and including advanced interactive voice response (IVR) capabilities.

The RUIA's accuracy and timeliness performance targets also help to achieve efficiency. Cases handled correctly the first time do not need to be reworked, thus saving unnecessary staff time; cases handled timely also prevent follow-up workloads such as phone calls and correspondence requesting status.

The RUIA program also provides for an experience-rating method of determining tax rates to fund benefit payments under this program. Under this provision, the RRB annually determines an individual RUIA tax rate for each railroad employer based on a 3-year average of RUIA claims associated with that railroad. The law also requires a 3-day pre-payment verification period for railroad employers before the RRB issues benefit payments. This provision provides an incentive to employers to provide correct information affecting payments that ultimately have an impact on the employer's experience-rated tax rate.

Finally, one efficiency measure that the RRB has had for many years is the program integrity ratio. This ratio (the sum of dollar recoveries and savings, per labor dollar spent) measures the cost effectiveness of the RRB's monitoring programs. For FY 2006, this ratio showed that the RRB recovered over $5 for every $1 spent on program integrity efforts.

Evidence:

Please see the efficiency measure included within the Performance Measures Section of this assessment.

See the Information Technology Strategy and Benefits section, pages 71-77, of the RRB's Justification of Budget Estimates for 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See Strategic Goals and Objectives, page 21 of the Fiscal Year 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Does the program collaborate and coordinate effectively with related programs?

Explanation:

To administer the RUIA program, the RRB collaborates with all 50 states (and Puerto Rico and the District of Columbia) through matching agreements to detect individuals who are working or receiving state unemployment benefits while receiving RUIA benefits.

The RUIA program also collaborates with other federal agencies as described in the examples below:

?? Social Security Administration: disclosure of death record information
?? Internal Revenue Service: electronic deposits of withheld taxes
?? Department of Treasury: offset for debt recovery

The RUIA program also coordinates with the RRB's Railroad Retirement program for offset of benefits. Both programs collaborate by sharing data in the RRB's Employment Data Maintenance database, which stores railroad service and compensation data.

Evidence:

Computer matching with state agencies identifies unreported earnings affecting unemployment or sickness benefits administered by the Railroad Retirement Board. The RRB has computer matching agreements with each state agency to secure such earnings and works with the Data Integrity Board to meet computer matching requirements between Federal agencies.

Agreements with SSA to disclose death record information to the RRB

Procedures established with IRS to make electronic deposits of withheld taxes

Procedures established with Treasury to offset debt recovery

Does the program use strong financial management practices?

Explanation:

In spite of ongoing and consistent positive indicators of strong financial management practices, the answer to this question overall is "No" because of material weaknesses in internal controls identified by the OIG. The areas needing improvement were initially cited in the OIG's "Opinion on the Financial Statements," dated October 27, 2005. They were: information security and performance measures. RRB has acknowledged these weaknesses and has taken active steps toward improving each area. In his "Serious Management Challenges," dated October 6, 2006 and published in the RRB's FY 2006 Performance and Accountability Report, the Inspector General recognized that action is being taken on resolving the material weaknesses, but believes additional work must be done before these issues are resolved.

Otherwise, the RRB has strong and reliable financial management practices as described below:

1) The RRB's financial statements received an unqualified audit opinion in FY 2006 for the seventh consecutive year. During FY 2006, a first-time audit of the Statement of Social Insurance also resulted in an unqualified audit opinion.

2) As required by the Improper Payments Information Act of 2002, the RRB conducts reviews of improper payments. These annual analyses have consistently concluded that the level of improper payments under the RUIA falls below the $10 million threshold identified as "significant" in the law. Agency initiatives to continually reduce, prevent or minimize improper payments are ongoing.

3) The RUIA mandates periodic reviews of the financial condition of the railroad unemployment and sickness insurance program. The review is published as the annual Section 7105 Report. The June 2006 report indicated that experience-based contribution rates maintain solvency from 2005 to 2016, with the exception of small short-term cash flow problems in 2008 and 2009 under the most pessimistic assumption.

4) Finally, the RRB received a favorable fiscal year 2005 Performance Measures Scorecard from the Department of the Treasury's Financial Management Service (FMS).

Evidence:

See the Message from the Board Members, page 3 of the FY 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

See the Message from the Chief Financial Officer, page 57 of the FY 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

See the Opinion on the Financial Statements, pages 89-97 of the FY 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

See Management's Comments on page 104 of the FY 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

See Annual Report on the Financial Status of the Railroad Unemployment Insurance System required by Section 7105 of the Technical and Miscellaneous Revenue Act of 1988 (Public Law 100-647) at http://www.rrb.gov/pdf/act/Section_7105.pdf

Department of the Treasury's Financial Management Service (FMS), Performance Measures Scorecard dated March 23, 2006 which includes performance indicators for timeliness, reconciliation of unexplained differences, consistency/integrity, and completeness for the reporting of fiscal year 2005 financial information to FMS. Each performance indicator has performance goals and the RRB has met all the goals listed for the four performance indicators.

Has the program taken meaningful steps to address its management deficiencies?

Explanation:

The RRB is taking action on the material weaknesses in internal controls identified by the Inspector General, as described in the agency's 2006 Program and Accountability Report. Those related to the RUIA program are outlined below.

"Description of OIG-Identified Material Weaknesses

1. The information technology security program is weakened by deficiencies in risk assessment, testing and evaluation, and access controls in both the general support and major application systems.

The fiscal year 2007 plan is to complete the management control review using controls structure for certification and accreditation testing. In fiscal year 2008, the plan is to resolve the two remaining audit recommendations associated with logical access controls; 23 related recommendations have been resolved to date. (The agency) will then evaluate the Information Technology Security material weakness to determine whether is has been eliminated.

2. The agency performance measurement program is weakened by deficiencies in data validation and the retention of supporting documentation.

The fiscal year 2007 plan is to adopt and implement procedures on data validation and retention of supporting documentation processes. (The agency) expect(s) to complete corrective action on this matter in fiscal year 2007."

In addition, the RRB monitors progress on implementing recommendations from the program evaluation process, and pursues recommendations from audits by the Inspector General which impact the quality and timeliness of payments.

The RRB also adheres to the requirements of the Federal Managers Financial Integrity Act (FMFIA), assesses annually internal controls to identify any weaknesses in the RUIA program and develops action plans for eliminating any identified problems.

Evidence:

Administrative Circular RRB-2, published October 11, 2006, describes Procedures for Documentation, Validation and Certification of Performance Information.

See the Office of Inspector General's recent Semiannual Reports: such as September 2006, March 2006: http://www.rrb.gov/oig/library.asp

See Management's Comments on pages 36, 37, and 104 of the FY 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation:

The RRB has continued to make progress on its long-term goals identified in Question 2.1, while maintaining high performance on annual goals, even as resources have been continually reduced over time. The RRB is achieving annual targets that lead to achievement of 4 of the 6 long-term performance measures. In the first two targets, RUIA benefit payment accuracy for unemployment and sickness insurance has consistently remained above 98 percent. In the third goal, timeliness of unemployment and sickness insurance benefits has remained high, with over 99 percent of payments or decisions issued to claimants within 10 days of claim receipt.

In FY 2006, the RRB achieved the target in 1 of the 3 long-term performance measures related to information technology improvements. It did not meet the specific annual targets in FY 2006 for the other 2 IT measures. As of September 30, 2006, RRB's beneficiaries had 16 electronic services available to them. In FY 2006, including the ability to file application and claims for unemployment and the ability to view or request a history statement of service and compensation reported by year. Rail employers had the use of 6 services, including the ability to adjust reports of service and compensation, submit employee names and addresses, and use www.pay.gov to make lien payments. Although the agency has achieved its goals in these areas in the past, it did not meet the specific annual targets for the long-term goal of increasing electronic service options in FY 2006.

?? In one area (expanding electronic service options available for its beneficiaries), the RRB implemented only 2 of 3 additional electronic services by the end of Fiscal Year 2006. The third new service, the Palmetto project (which will allow authorized Palmetto GBA customer service representatives to report address changes, deaths and requests for replacement Medicare cards directly to the agency over the Internet), was not completed in FY 2006 and is now scheduled to be finished in FY 2007.
?? The RRB also did not achieve its objective for the Employer Reporting System to increase the percentage of users by 2 percent during FY 2006 because plans for additional functionality were not implemented. Implementation is now expected in FY 2008.

Evidence:

See the Fiscal Year Performance and Accountability Report. This can be accessed via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Results of the 2002 ACSI Survey of unemployment and sickness benefit recipients are available upon request.

See Performance Budget section on pages 29-57 of the RRB's Justification of Budget Estimates for Fiscal Year 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See agency staffing history on page 15 of the RRB's Justification of Budget Estimates for 2008 via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Information Technology Strategy and Benefits section, pages 71-77 of the RRB's Justification of Budget Estimates for 2008 via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Does the program (including program partners) achieve its annual performance goals?

Explanation:

In Fiscal Year 2006 the RRB met or exceeded target performance in 5 out of 7 of the annual goals (those related to increasing electronic services and employer participation in those services). This is fairly typical of program performance in the past 4 years during which the RUIA program met or exceeded all but 2 or 3 of the annual goals.

Evidence:

See Performance Budget section on pages 29-57 of the RRB's Justification of Budget Estimates for Fiscal Year 2008. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation:

The RUIA program is achieving or exceeding its goals and maintaining excellent service while experiencing reductions in staff. Since FY 1993, the RRB's staff has been reduced by about 45 percent (from 1,698 FTE's in FY 1993 to 940 FTE's in FY 2006). Technology initiatives have been a major contributing success factor, resulting in significant improvements enabling it to achieve better results with fewer staff. While it is true that the customer base of active railroad workers and beneficiaries is gradually declining, the agency's staffing levels have also declined and are expected to decline much more quickly. In addition, other workloads resulting from legislative, reporting and regulatory requirements have increased significantly during this same time period, with no corresponding staff increases. For example, new workloads have been created by the Improper Payments Information Act (IPIA), and the Federal Information Security Management Act (FISMA).

The program integrity report provides a ratio (the sum of dollar recoveries and savings, per labor dollar spent) that measures the cost effectiveness of the RRB's monitoring programs. For FY 2006, this ratio showed that the RRB recovered over $5 for every $1 spent on program integrity efforts.

Evidence:

Ratios of the RRB's customer base (active railroad workers and beneficiaries) from FY 1993 to FY 2006, compared to the RRB's workforce (FTE's) for the same period clearly demonstrate improved efficiency in achieving program goals each year. The ratio has trended upward from 656:1 in FY 1993 to 872:1 in FY 2006, and is expected to continue in this direction. This indicates that the rate of decline in the workforce is significantly greater than that of the customer base. Specifically, during the FY 1993-2006 period, the customer base has decreased by 28%, and the workforce has decreased by 45%. It is notable that the agency has improved its program performance significantly during that same time period.

See agency staffing history on page 15 of the RRB's Justification of Budget Estimates for 2008 via the following link: http://www.rrb.gov/pdf/bfo/JBE08.pdf

See the Program Integrity key performance indicator on page 29 of the Fiscal Year 2006 Performance and Accountability Report. This can be reached via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation:

The RUIA program's American Customer Satisfaction Index (ACSI) scores have been favorably compared to those of other government and private organizations. The 2002 Unemployment and Sickness score was 75 (on a 0-100 scale). This exceeded the overall Federal government score by 4 points.

The RUIA payment timeliness measures compare favorably with that of the Unemployment Insurance Administration State Grants program under the Department of Labor, Employment and Training Administration (DOL). The RUIA timeliness consistently exceeds 99 percent of payments or denials within 10 days of receipt of a claim, whereas the DOL program timeliness is reported to be in the range of 87-90% over the past several years.

Evidence:

The agency participated in an ACSI survey of unemployment and sickness beneficiaries in 2002. Results are available upon request.

An overview of the American Customer Satisfaction Index (ASCI) can be reached via the following link: http://www.theacsi.org/

See ExpectMore.gov: Unemployment Insurance Administration State Grants and State Rankings of Core Measures for the Department of Labor at /omb/expectmore/summary/10001102.2003.html

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation:

The RRB has a statutory Inspector General (IG) who reports to the Chairman of the Board and submits separate budget and performance information to OMB and Congress. The RRB's Office of Inspector General (OIG) conducts a variety of independent reviews and audits of the RUIA program. The OIG has also conducted audits on performance reports and measures. In addition, the OIG conducts a comprehensive financial statement audit, which includes a review of the RRB's administrative costs, annually.

RRB's financial statements, (which include administrative costs), received an unqualified audit opinion from the OIG in FY 2006 for the seventh consecutive year.

As previously reported, the American Customer Satisfaction Index (ACSI), independently conducted by the Claes Fornell International Group, periodically evaluates customer satisfaction. ACSI results also have indicated that the RUIA program is achieving results in terms of providing excellent customer service.

Overall adjudicative and payment accuracy of the RUIA program is measured in regular reviews conducted by quality assurance staff within the Assessment and Training component of the Office of Programs. Assessment and Training reports to the Director of Programs and is independent of the organizations it assesses.

The RRB tracks and follows up on recommendations for improvement, whether from the OIG, external sources, or in-house quality experts.

Taken as a whole, these various audits, reviews and studies clearly demonstrate that the RUIA program is effective and achieving results. The RUIA's customers are highly satisfied with the service they receive; its payment and case accuracy rates are in the 98 percent range and above; timeliness of payments consistently exceed 99 percent within 10 days of receipt of the claim; and the financial status of the program is strong.

Evidence:

The Inspector General Act of 1978, as amended, 5 U.S.C. Appendix 3 .http://www.access.gpo.gov/uscode/title5a/5a_2_.html

See the Office of Inspector General's recent Semiannual Reports: such as September 2006, March 2006: http://www.rrb.gov/oig/library.asp

An overview of the American Customer Satisfaction Index (ASCI) can be reached via the following link: http://www.theacsi.org/

Results of the 2002 ACSI Survey of unemployment and sickness benefit recipients are available upon request.

Message from the Chief Financial Officer on page 57 of the Fiscal Year 2006 Performance and Accountability Report via the following link: http://www.rrb.gov/pdf/bfo/par2006.pdf