The
Railroad Retirement Board recently determined that a
surcharge of 1.5 percent will be added to the basic RUIA
tax rate for each established employer beginning January
1, 2005. The surcharge was 1.5 percent for 2004. New
employers are not affected, as their rate will be the average
rate for all employers from 2001 through 2003.
The RUIA Experience Rating System provides for the
addition of a surcharge to the RUIA tax rate if the accrual
balance in the RUI Account falls below certain levels
as of June 30 of each year. On June 30, 2004, that account
had an accrual balance of $98.6 million. The current
thresholds are $112.9 million for the 1.5 percent surcharge
and $56.4 million for the 2.5 percent surcharge. The
1.5 percent threshold is the higher of $100 million or
$100 million indexed to changes in the system compensation
base.
Official notice of the surcharge will be included in the
annual rate notices to be sent out to individual employers
by October 15. |