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, 2004. New employers
are not affected, as their rate will be the average rate for
all employers from 2000 through 2002.
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, 2003, that account had an accrual
balance of $64 million. The current
thresholds are $112.6 million for the 1.5 percent surcharge
and $56.3 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.
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