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Story
December 20, 1954
Trainman News
Indianapolis, Marion County, Indiana
What is this article about?
Informational article from the Railroad Retirement Board advising railroad employees on claiming sickness benefits under the Railroad Unemployment Insurance Act despite expecting damage settlements. Includes Q&A on reimbursement, deductions for expenses, and application deadlines.
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Information on Railroad Retirement Act
D. A. MacKenzie, National Reporting Officer, Brotherhood of Railroad Trainmen
The following article was recently released by the Railroad Retirement Board:
Frequently, railroad employees who have been sick or injured do not claim sickness benefits under the Railroad Unemployment Insurance Act because they expect to receive a damage settlement from the party responsible for the injury.
However, there are two important reasons why an employee in such a situation should claim sickness benefits immediately:
(1) If, for some reason, the damage settlement is never made, the employee will at least get the sickness benefits if he claims them; and
(2) Even if a settlement is made and the board recovers the sickness benefit, the employee is still better off because he has had money coming in steadily at a time when he is unable to work.
The effect of damage settlements on the payment of sickness benefits is brought out in the following questions and answers.
1. If I expect to receive a damage settlement for an injury is it possible for me to draw sickness benefits under the Railroad Unemployment Insurance Act?
Yes. Sickness benefits may be paid to an employee even though another person may be liable for the payment of damages for the illness or injury on which the sickness benefits are based. But the act provides that the board is entitled to reimbursement from any sum or damages payable on account of the illness or injury.
2. As a result of a recent injury, I drew sickness benefits of $400, out of which I paid medical, hospital, and legal expenses of $300. I have been informed by the insurance company that I am entitled to a damage settlement of $500. Will the board receive $400 from this settlement?
No. In determining the amount recoverable by the board, hospital, medical, and legal expenses are deducted from the amount of the damage settlement. Therefore, the amount recoverable in your case is as follows: Subtract $300, the expenses, from $500, the damage settlement. This leaves only $200 to be considered as net damages. Since this is less than the sickness benefits paid, this is the amount recoverable by the board, and you will actually receive $300 from the insurance company.
3. Recently, I was in an automobile accident, and was unable to work for four months. I did not apply for sickness benefits because I sued the other driver for damages. Now, after six months, the court has decided that I am not entitled to damages. May I now claim sickness benefits for the four months that I did not work?
No. It is too late for you to claim benefits for the four months you were unable to work. The Railroad Unemployment Insurance Act provides that in order for benefits to be paid for any day of sickness an application must be received in a board office within nine days after that day.
D. A. MacKenzie, National Reporting Officer, Brotherhood of Railroad Trainmen
The following article was recently released by the Railroad Retirement Board:
Frequently, railroad employees who have been sick or injured do not claim sickness benefits under the Railroad Unemployment Insurance Act because they expect to receive a damage settlement from the party responsible for the injury.
However, there are two important reasons why an employee in such a situation should claim sickness benefits immediately:
(1) If, for some reason, the damage settlement is never made, the employee will at least get the sickness benefits if he claims them; and
(2) Even if a settlement is made and the board recovers the sickness benefit, the employee is still better off because he has had money coming in steadily at a time when he is unable to work.
The effect of damage settlements on the payment of sickness benefits is brought out in the following questions and answers.
1. If I expect to receive a damage settlement for an injury is it possible for me to draw sickness benefits under the Railroad Unemployment Insurance Act?
Yes. Sickness benefits may be paid to an employee even though another person may be liable for the payment of damages for the illness or injury on which the sickness benefits are based. But the act provides that the board is entitled to reimbursement from any sum or damages payable on account of the illness or injury.
2. As a result of a recent injury, I drew sickness benefits of $400, out of which I paid medical, hospital, and legal expenses of $300. I have been informed by the insurance company that I am entitled to a damage settlement of $500. Will the board receive $400 from this settlement?
No. In determining the amount recoverable by the board, hospital, medical, and legal expenses are deducted from the amount of the damage settlement. Therefore, the amount recoverable in your case is as follows: Subtract $300, the expenses, from $500, the damage settlement. This leaves only $200 to be considered as net damages. Since this is less than the sickness benefits paid, this is the amount recoverable by the board, and you will actually receive $300 from the insurance company.
3. Recently, I was in an automobile accident, and was unable to work for four months. I did not apply for sickness benefits because I sued the other driver for damages. Now, after six months, the court has decided that I am not entitled to damages. May I now claim sickness benefits for the four months that I did not work?
No. It is too late for you to claim benefits for the four months you were unable to work. The Railroad Unemployment Insurance Act provides that in order for benefits to be paid for any day of sickness an application must be received in a board office within nine days after that day.
What sub-type of article is it?
Informational Faq
Policy Advice
What keywords are associated?
Railroad Sickness Benefits
Damage Settlements
Reimbursement
Application Deadline
Railroad Unemployment Insurance
What entities or persons were involved?
D. A. Mackenzie
Railroad Retirement Board
Story Details
Key Persons
D. A. Mackenzie
Railroad Retirement Board
Story Details
Advises railroad employees to claim sickness benefits promptly despite potential damage settlements, explaining reimbursement rules, expense deductions, and strict application deadlines under the Railroad Unemployment Insurance Act.