Vice President Tolman testifies before Congressional Subcommittee

CLEVELAND, July 25 -- BLET Vice President and National Legislative Representative John Tolman testified today before the House Transportation & Infrastructure Committee’s Subcommittee on Railroads regarding human factors incidents in the railroad industry.

In his testimony, Vice President Tolman cited three key areas of concern to the BLET regarding human factors incidents. First, he underscored prior BLET testimony concerning fatigue, and the ways in which the industry’s rampant manipulation of the Hours of Service Act and governing FRA regulations contribute to this growing problem. Second, he addressed the nexus between inadequate training and human factor accidents. Third, he informed the Subcommittee of potential hazards inherent in some of the technologies that rail carriers say will eliminate human factor accidents.

NTSB report cites fatigue in fatal collision, hazmat release

Approximately three weeks ago, the National Transportation Safety Board adopted a report determining that the 2004 Macdona, Texas, collision and toxic chlorine release, which killed three people, was caused by a fatigued crew’s failure to respond to wayside signals. In the NTSB report, the crew was criticized for failing to effectively use off-duty time, thereby not obtaining sufficient restorative rest prior to reporting for duty. Union Pacific was criticized for train crew scheduling practices that created inverted crew members’ work/rest patterns.

“For many decades, then-prevailing industry practices worked to minimize or camouflage potential fatigue problems,” Brother Tolman testified. “Much larger crew sizes greatly reduced the likelihood that an entire crew would be working while fatigued. Moreover, collective bargaining agreements contained maximum mileage regulations — that were strictly enforced — under which a worker would be marked off for the remainder of the month when the maximum was exceeded.

“Over the past 60 years, technology has reduced crew size from five or six to two or three. Notwithstanding this fact, the supply of locomotive engineers, conductors and brakeman has not kept up with demand, creating enormous pressure on the industry to work crews above agreement-based mileage levels. The desire of railroad workers to improve, and not just maintain, their standards of living created similar pressure on unions to permit crews to continue working when those mileage levels were exceeded. As a result of these factors, smaller crews are working far more trips and miles than their historical predecessors.”

Limbo time regularly abused

According to Vice President Tolman, the changes in the rail industry have been compounded by “limbo time,” a system that is being abused by rail carriers and creating intolerable working conditions for train crews.

“The Hours of Service Act prohibits operating employees from working more than 12 consecutive hours in any 24?hour period, with limited exceptions,” Vice President Tolman said. “If a train cannot reach its destination within the 12 hours, the crew must stop in time to cease all work by the 12th hour, at which point they are considered ‘outlawed.’ A railroad that requires an operating employee to perform service covered by the Act beyond the 12th hour, unless the circumstances are exempted by statute, is subject to a civil penalty.

“Under current law, ‘time spent in deadhead transportation to a duty assignment is time on duty, but time spent in deadhead transportation from a duty assignment to the place of final release is neither time on duty nor time off duty.’ Thus, a crew who stops their train short of the destination terminal because they have ‘outlawed’ are in ‘limbo’ status with respect to the Hours of Service Act while deadheading from where they stop to their off-duty point.

“The history of the Act shows a pattern of abuse by carriers that continues to this very day.”

BLET compiling Hours of Service violations

Vice President Tolman told Congress that the BLET National Legislative Office is in the process of compiling examples of these abuses.

“Over the past nine months, we have received many thousands of reports of excessively long tours of duty,” Vice President Tolman said. “Our staff presently is assembling these data into a usable form, which we expect will be completed later this year. However, I can tell you that the preliminary information we have is shocking.”

According to data prepared by one of the four largest Class I railroads for the first six months of this year, on average, work tours for over 224 crews exceeded 14 hours every day. An average of nearly 103 crews a day work tours in excess of 15 hours, and over 46 and a half work tours in excess of 16 hours. Almost 20 crews every week for the first six months of this year had a work tour more than 20 hours long; that’s 12 hours of work followed by more than 8 hours of deadhead/limbo time.

In his closing, Vice President Tolman acknowledged that human factors incidents can be mitigated if proper steps are taken.

“While it is true that one human factor caused accident is too many, it also is true that humans make mistakes,” Vice President Tolman said. “A well rested, properly trained and experienced crew, provided with technological assistance that supports — rather than replaces — their skill set is far less likely to be involved in a human factor caused accident that a fatigued, poorly trained, inexperienced crew. We fully support bringing the railroad into the 21st Century by improving performance in all three of these areas, leaving none behind.”

In addition to Vice President Tolman, the following individuals testified before the subcommittee: The Honorable Joseph Boardman, Administrator, Federal Railroad Administration; Robert Chipkevich, Director, NTSB: Office of Rail, Pipeline and Hazardous Materials Investigations; Dr. Martin Moore-Ede, M.D., Ph.D., Chief Executive Officer, Circadian Technologies, Inc.; Edward Hamberger, President and Chief Executive Officer, Association of American Railroads; W. Dan Pickett, International President, Brotherhood of Railroad Signalmen; Richard F. Timmons, President, American Short Line and Regional Railroad Association; and James Stem, Alternate National Legislative Director, United Transportation Union.

In his questioning, Representative John D. Barrow (D-GA) noted that employees are spread too thin to get effective amounts of rest.

“If staffing levels are inadequate, people are going to try to work too long and get too tired,” Representative Barrow said.

Representative Elijah Cummings (D-MD) asked whether the Hours of Service regulations are designed to protect workers and the general public. He also noted that the hours locomotive engineers spend on call is disruptive to their lives and puts them in danger. Representative Cummings compared the hours worked per month by locomotive engineers to those of truckers and airline pilots. Locomotive engineers can work a maximum of 432 hours per month, truckers can work a maximum of 260 hours per month and airline pilots can work a maximum of 100 hours.

In his testimony, Federal Railroad Administrator Joseph Boardman stated that 38 percent of all railroad accidents are caused by human factors, and acknowledged that fatigue was the cause of many of these incidents. He also noted that the Hours of Service Act was last amended 30 years ago, and since its last amendment, research has been done into the issue of that should help improve the regulations. He stated, however, that the FRA was powerless to help without assistance from Congress, the railroads and rail labor.

UTU Assistant Legislative Director Stem testified that he believed the FRA understands the problem, but said that action by Congress is now necessary to make changes in the industry.

For a PDF of Vice President Tolman’s testimony, go to: http://www.teamster.org/divisions/rail/pdfs/060725_tolmantestimony.pdf

Tuesday, July 25, 2006
bentley@ble.org

http://www.ble.org/pr/news/newsflash.asp?id=4333

© 2006 Brotherhood of Locomotive Engineers and Trainmen
http://www.ble.org

NCCC Serves New Section 6 notice on UTU

Attached you will find a letter from UTU President Paul Thompson to all UTU General Committees and State Legislative Boards outlining their latest agreement proposal with the National Carrier Conference Committee. The NCCC is the bargaining agent for all the Carriers in national handling that is under the influence of the UP and BNSF railroads. It is my understanding that a similar document is to be presented to our bargaining team next month when they meet with the NCCC. Please read these documents carefully. This should tell every employee exactly what Union Pacific thinks we are worth. You need only review the Compensation section of the agreement to get the full brunt of their philosophy.

1. Compensation

A. General Wage Increases and/or other forms of compensation.

1. Wage freeze during the term of the agreement (no GWI’s etc) for all current employees.

Employees establishing UTU seniority after date of Agreement – full rate of pay set at 80% of full rate position on June 30, 2005

B. Cola

1. COLA under current UTU National Agreement eliminated on effective date of Agreement.

2. No Harris COLA for periods subsequent to moratorium in New Agreement.

What that means to everyone is that under this proposal there will be no general wage increases (GWIs) for anybody during the life of this outlandish proposed contract. This proposal is offered in the wake of record setting profits by both Union Pacific and BNSF in the second quarter of this year (UP increased NET Profit for the 2^nd quarter by 67%).

We as operating employees (all engineers and trainmen) should be outraged at Union Pacific snubbing their nose at the very people who are responsible for the record profits they are bragging to Wall Street about. You the employees who are hauling the freight that is responsible for those record profits in their eyes are not worthy of a raise.

Digest these documents fully so that you can understand the contempt your employer has for the job that you do.

FRA seeking update of work / rest laws

The Washington Times (D.C.)
July 26, 2006

FRA seeking update of laws

BY Marie Tyler

The amount of time railroad employees can work without rest is based on laws created in 1907, but the industry and Congress are struggling to move them into the 21st century.

Rail industry leaders from government agencies, unions and associations met with lawmakers yesterday to discuss the role human error plays in rail safety and potential changes to the standards that many leaders see as outdated and ineffective.

The 99-year-old measure has kept the Federal Railroad Administration (FRA) from "making use of almost a century of scientific learning on the issue of sleep-wake cycles and fatigue-induced performance failures," FRA administrator Joseph H. Boardman told the House Transportation and Infrastructure railroads subcommittee yesterday.

The hours-of-service law, last amended in 1969, limits rail workers to 12 hours of work followed by eight hours off duty, then 12 hours of work, a process that can continue perpetually, according to Mr. Boardman. With this schedule, the worker will suffer from fatigue, which will compromise his ability to perform his duties.

"The NTSB has identified fatigue as a causal or contributing factor to at least 14 major rail accidents since 1984," Mr. Boardman said, adding that many more, less-severe accidents have been tied to human error in tired crews.

The NTSB cited a reduced amount of sleep as a factor in the Nov. 3, 2004, Metrorail accident at the Woodley Park-Zoo/Adams Morgan station.

Human factor accounted for 38 percent of train accidents from 2001 to 2005, according to the FRA.

The federal law limits the FRA's ability to regulate and enforce the number of hours rail employees can work. Other agencies in the Department of Transportation can regulate the number of hours workers can perform their duties.

The National Transportation Safety Board found that airline pilots may work 100 hours each month, truck drivers may work 260 hours, and large-ship personnel may work 240 hours. Railroad engineers may work 432 hours, out of the 744 hours in a month.

However, 95 percent of rail employees are on duty less that 250 hours per month, according to the Association of American Railroads.

Efforts to change the measure failed in 1994, 1998 and 1999 because of pressure from industry, government and unions.

Attempts to change the laws have failed because "the labor and business side have a vested interest in keeping things the way they are," said Bob Chipkevich, director of the Office of Railroad, Pipeline and Hazardous Materials Investigations for the National Transportation Safety Board.

Employees want to work as many hours as they can and do not want to be forced to stop close to home, even if they have reached their limit or are tired, he said.

Fatigue was the most-discussed cause of human error at the hearing, as industry executives and experts cited long hours, the ability to be called for work at any time, inconsistent scheduling, overworked and undersized crews as several of the causes.

For TE&Y Employees

Payroll Registers Include New Features

Payroll recaps provided to train, engine and yard (TE&Y) employees have a new look beginning this month. The registers, which are mailed to employees with paychecks and direct deposit slips, have been reformatted to make them easier to read and understand.

The recap now provides a daily breakdown showing the various allowances and arbitrary payments. Totals are provided for each day, as well as for the pay period, so the employee can easily see his or her actual earnings.

Non-taxable items, such as meals, lodging and auto mileage, are separated from taxable compensation.

The new format reports declination records for claims made by an employee that are not allowed.

"Employees will be able to identify their daily compensation much easier with this new format," said Tim Holmes, manager-timekeeping support.

Brian Schlueter, senior project engineer-Union Pacific Technologies, said Timekeeping asked that redundant totals and headings be removed from the recap.

"The programming changes we made condense the format of the register, which saves paper and adds additional readable space to the form. Employees also will notice that page numbering will appear correctly," he said.

The payroll recap changes are effective with first half of July earnings, which are paid at the end of the month. Employees with questions about the new form can call the Timekeeping customer service line at 866-623-4267 or company line 591-3267.

The payroll register change does not affect employees who participate in ePayroll.

ePayroll is a secure, paperless system that provides employees with confidential online access to their pay information, including paystubs and payroll registers. It also allows employees to change their W-4 withholding information, modify direct deposit elections and view W-2s online. Payroll registers and paystubs are available online three to seven days earlier than pay detail sent via U.S. mail.

More than 9,000 active agreement employees are now signed up for ePayroll.

To enroll in ePayroll employees can select the ePayroll link on the left navigation of the Employees site home page, click on "you can learn more about ePayroll here" link and then go to "How do I enroll in ePayroll."

 

FW: Hazmat Training

Labor College plans radioactive waste handling course CLEVELAND, May 5 — The National Labor College (NLC) is offering a special radioactive materials training course to railroad workers at the George Meany Center during the week of July 10. According to the U.S. Department of Energy (DOE), the number of rail shipments involving radioactive materials is expected to increase in coming years. Beginning as early as 2007, the DOE is expected to begin a 38-year project to transport spent nuclear fuel and high level radioactive waste from DOE sites to storage and disposal facilities. With the increase in rail shipments comes the increased risk for rail incidents involving radioactive material. This year, the Rail Workers Hazmat Training Program was awarded funding to provide training to rail workers to increase their knowledge of the transportation of radioactive materials. To meet this training need, during the week of July 10, 2006, the Rail Program will conduct a 3-1/2 day hazmat awareness and security training course combined with a radiological transportation train the trainer course. The 10-hour hazmat awareness and security training course will be followed by a two-day DOE-sponsored Modular Emergency Response Radiological Transportation Training (MERRTT) train the trainer course. All training will be conducted on the George Meany Campus of the National Labor College in Silver Spring, Md. The program will begin on Monday, July 10, at 7 p.m., and end by 3 p.m. on Thursday, July 13. Funding for this course will cover overnight room accommodations and three meals a day at NLC. Limited scholarships are available to cover travel expenses and provide stipends for participants unable to secure paid time off from the railroad, or other sources. Call Carol Rodgers at the Hazmat office (301-439-2440) for more information on scholarships. Since space for this course is limited, completed registration forms should be faxed, mailed or e-mailed to the Hazmat office (see below) as soon as possible. Interested rail workers may also call the Hazmat office to register by phone, or register online: http://www.hazmatgmc.org. Rail Workers Hazardous Materials Training Program 10000 New Hampshire Avenue Silver Spring, Maryland 20903 (301) 439-2440 (301) 628-0165 -fax crodgers@nationallaborcollege.org This training is funded in whole or in part with Federal Funds from the National Institute of Environmental Health Sciences (NIEHS) and supplemental funding to support peer training from the North American Railway Foundation (NARF). A copy of the registration form is available as PDF from the BLET website at: http://www.ble-t.org/pr/pdf/DOEtrainingapp.pdf Friday, May 05, 2006 bentley@ble.org http://www.ble.org/pr/news/newsflash.asp?id=4294 © 2006 Brotherhood of Locomotive Engineers and Trainmen http://www.ble.org

BLET - UTU Cooperate On National Negotiations

Protecting jobs, safety & Railroad Retirement CLEVELAND, January 30 -- Setting past differences aside, the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the United Transportation Union (UTU) have agreed to work together on a joint campaign to ensure a successful outcome to the current round of collective bargaining. During negotiations, the major rail carriers have attempted to use past differences between the BLET and the UTU as a wedge to reduce crew size. Reducing crew size puts the lives of all rail workers and the general public in danger. It also seriously threatens the financial security of the Railroad Retirement system. BLET President Don M. Hahs and UTU President Paul C. Thompson announced the joint campaign in a letter dated Jan. 27, 2006. “Our two organizations have had their differences, but when it comes to protecting our members’ jobs and safety, we must stand together against the hostile attacks of the carriers’ expressed intent on eliminating jobs,” the presidents said. A PDF of the letter is available here: http://www.ble-t.org/pr/pdf/utu_blet_letterhead_012706.pdf A text-only version of the letter is available here: http://www.ble-t.org/pr/news/utu_blet_text_012706.asp Monday, January 30, 2006 bentley@ble.org http://www.ble.org/pr/news/newsflash.asp?id=4254 © 2005 Brotherhood of Locomotive Engineers and Trainmen http://www.ble.org

FW: General Chairman Charile Rightnowar

From: Gil Gore [mailto:thegores1@cox.net]
Sent: Thursday, January 19, 2006 8:21 PM
To: All Local Chairman BLET UP Southern Region GCA

Subject: Charile Rightnowar

Brothers,

Brother Charlie Rightnowar (BLET GC MP Upperlines) apparently had an episode during an investigation Wednesday in which he felt faint and his local chairmen took him to the hospital. Some blockage was discovered and a stint has been successfully installed to deal with the same. The latest reports are that Brother Charlie is doing fine and recovering from the treatment.

I know you all join me in wishing Brother Charlie a successful and speedy recovery.

I will try to keep you updated as I receive more information.

Fraternally,

Gil Gore

BLET to Conduct Two S-T Workshops in 2006 in Dallas and Jacksonville

CLEVELAND, December 22 -- The BLET's Education and Training Department will conduct two three-day Secretary-Treasurer Compliance Workshops next year to assist STs prior to the major federal tax reporting deadline. These two workshops will be the only opportunity for STs to attend a workshop prior to the March 31 deadline for filing Department of Labor reports. One workshop will be in Dallas and the other in Jacksonville, Fla. During the three-day sessions, members will learn proper record keeping techniques, computer applications, and minute-taking. They will also learn methods for filing various Department of Labor and Railroad Retirement reports, as well as Federal tax returns. A representative from the Department of Labor will be on hand to answer Secretary-Treasurer questions and have tips regarding the preparation of LM reports. Course planners have added a new section to the workshop regarding the 2006 division elections. Next year is an election year for all of Divisions and the new segment — titled “Election Requirements” — was added to help ST's run their division election properly. As most STs already know, there are many changes to the filing of the reports each year, and all these changes will be addressed in these classes. A major change came when the BLET National Division implemented a new dues reporting and collection internet-based system on January 1, 2005. There will be an online demonstration on this new system to help everyone in class become familiar with it. Presenters will include Bill Walpert, BLET National Secretary-Treasurer; Bob Broka, Director of Records; Dr. Elaine Reese, Director of Compliance; Walt Schmidt, Webmaster; and Ken Kroeger, BLET Special Rep & Coordinator of the Education & Training Department. The BLET National Division pays the costs of books, equipment, and tuition, while Secretary-Treasurers who attend are responsible for their transportation costs as well as their room and board. Upon successful completion of the course, attendees will qualify for a $91 per day stipend from the North American Railway Foundation. The stipends will be paid directly to the Secretary-Treasurer of the respective divisions. Secretary-Treasurers will register for the 2006 workshops online through the BLE website at: http://www.ble.org/st. The workshops will take place January 30-February 2 at the Hotel Adams Mark in Dallas, and March 6–9 at the Hilton Jacksonville Riverfront Hotel. Members are responsible for making their reservations at the meetings in Dallas and Jacksonville and will be given the Brotherhood of Locomotive Engineers and Trainmen group rate code when they register for the workshop. Registration for the 2006 workshops is on a first come, first served basis with class size limited to the first 25 who register through the BLET website. For more information, please contact Ken Kroeger of the BLE Education & Training Dept. at (216) 272-0986 or kroeger@ble-t.org. Thursday, December 22, 2005 bentley@ble.org http://www.ble.org/pr/news/newsflash.asp?id=4237 © 2005 Brotherhood of Locomotive Engineers and Trainmen http://www.ble.org

UnitedHealthcare to send confirmation letters to employees who opt-out of benefits

(UnitedHealthcare issued the following on December 19.) Each year employees have the opportunity to change benefits during the Open Enrollment period. This is held each October for next year’s benefits. As a general rule your benefits will not change from one year to the next unless you return the enrollment form making a change. This is NOT the case if you wish to opt-out of benefits. Your election to opt-out of benefits must be made each year. If you elected to opt-out of benefits in 2005 and do not return the enrollment form to make that election again for 2006, your coverage will be reinstated on January 1st. In an effort to minimize any confusion, UnitedHealthcare will mail confirmation statements to all employees shown in their records as electing to opt-out of benefits for 2006. These statements will be mailed in mid December. If you receive a confirmation statement that you elected to opt-out and that is not your choice or, if you want to opt-out for 2006 but do not receive a confirmation letter by the end of December, you should call UnitedHealthcare at 1-800-842-9905 to make a correction You must call before February 1, 2006; changes will not be allowed after this date. Monday, December 19, 2005 bentley@ble.org http://www.ble.org

NCCC REQUESTS RELEASE FROM NBM ON NATIONAL CONTRACT NEGOTIATIONS

Rail carriers cut-off negotiations WASHINGTON, D.C. -- On December 14, the National Carriers' Conference Committee (NCCC) refused to set new dates for bargaining with the Rail Labor Bargaining Coalition (RLBC). The RLBC represents seven rail labor unions whose contracts cover nearly 85,000 rail workers or 65 percent of the carriers' employees. The NCCC represents the Class One carriers (Union Pacific, Burlington Northern Santa Fe, Norfolk Southern, CSX, etc.) that transport most the rail freight in the country. "The NCCC's refusal is mystifying," said Freddie Simpson, President of the Brotherhood of Maintenance of Way Employes Division (BMWED), "It is premature to refuse to bargain over the serious items both sides have placed on the table. What this round of negotiations needs is patience, hard work and willingness on both sides to listen and respond meaningfully to the other's issues. We have scarcely begun this process when suddenly the carriers up and walk away from the table." "The seven member unions of the RLBC are united in their desire to reach an agreement voluntarily," said Dan Pickett, President of the Brotherhood of Railroad Signalmen (BRS). "We are willing to sit at the table and talk to the carriers for as long as it takes to get an agreement done. You must fulfill the intent of the process-proposing your own substantive proposals and responding to theirs." "The carriers are attempting to distort the bargaining process by manipulating and misconstruing the procedure under the Railway Labor Act to obtain a government imposed resolution," said Don Hahs, President of the Brotherhood of Locomotive Engineers and Trainmen (BLET). "The Act is designed to resolve remaining disputes when good faith bargaining has reached impasse. We are far from reaching that point because the carriers have not yet begun to negotiate in good faith to resolve any of the parties' issues." "What is shocking about the NCCC's refusal to continue negotiations is that it comes at a time of record profits for the rail carriers," said John Murphy, Director or the Rail Conference and Teamsters International Vice President. "Yet their intractable, non-negotiable demands would change the nature of all railroad crafts through an ill-conceived consolidation and elimination of jobs. One would think the carriers' level of profits would provide them with some flexibility -- at least the flexibility to stay at the table." The seven unions of the Rail Labor Bargaining Coalition (RLBC) are: · Brotherhood of Locomotive Engineers and Trainmen (BLET), a division of the Teamsters Rail Conference; · Brotherhood of Maintenance of Way Employes Division (BMWED), a division of the Teamsters Rail Conference; · American Train Dispatchers Association (ATDA); · National Conference of Firemen and Oilers (SEIU); · International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers (IBB); · Sheet Metal Workers International Association (SMWIA); and · Brotherhood of Railroad Signalmen (BRS). Thursday, December 15, 2005 bentley@ble.org http://www.ble.org/pr/news/newsflash.asp?id=4234 © 2005 Brotherhood of Locomotive Engineers and Trainmen http://www.ble.org

Engineers Receive Cost of Living Adjustment Jan. 1, 2006

Engineers to receive a cost of living adjustment on January 1 CLEVELAND, December 16 -- Locomotive Engineers covered by the December 16, 2003 National Agreement will notice an increase in their pay checks on January 1. Under the terms of the national agreement, engineers will be allowed a cost of living adjustment of 31 cents per hour or $2.48 per basic day. The adjustment, called Harris COLA, is set out in the agreement as 50 percent of the cost of living adjustment in Article III of the agreement. Also effective January 1, the monthly contribution that engineers covered by the National Agreement make toward the cost of health and welfare benefits will be increased by $25.85 to $127.64. Under the terms of the National Agreement, the increase in monthly contributions is equal to the lesser of half of the increase in the railroads' cost or half of the COLA. Engineers on the following railroads are covered by the National Agreement: · The Belt Railway Company of Chicago · BNSF · Consolidated Rail Corporation · CSX (Baltimore & Ohio Chicago Terminal Railway Company; Gainesville Midland Railroad Co.; Richmond, Fredericksburg & Potomac Railway Co.) · DM&IR · Elgin, Joliet & Eastern · KCS · Longview Switching Co. · Northeast Illinois Regional Commuter Railroad Corp. (Metra) · Portland Terminal Railroad Co. · UP · Utah Railway Co. · Winston Salem Southbound Railway Co. The new rates are available in the Members Only area of the BLET website at the following location: http://www.ble-t.org/members/rate/0106 The next cost of living adjustment is scheduled for July, unless a new national agreement is reached before then.

NMB KNOWLEDGE DATABASE AVAILABLE ONLILNE TO SEARCH ARBITRATION AWARDS

The National Mediation Board has established an online knowledge database that will allow you to search awards by number or text within the award. If you would like to try this feature click HERE to go to the NMB Knowledge Database Website.

http://kas.cuadra.com/starweb1/nmbks/servlet.starweb1?path=nmbks/nmb.web

FW: Trains Turned Terror Targets - CBS 4 Miami

Mike Kirsch with WFOR (CBS 4 Miami) did a powerful story on trains being terrorist targets - it's a brilliantly constructed story, with helicopter tour, briefing, visit to wide-open rail yard, finding apts overlooking rail line into chlorine-using water treatment plant, simulation of chlorine cloud enveloping Miami, very powerful.

Click on:

http://cbs4.com/bios/local_bio_206112730.html/

Then scroll down to:

        Trains Turned Terror Targets Part II
        Trains Turned Terror Targets

Katrian and Rit Victums - Consider IRA, 401(k) early withdrawal as possible cash source option

Consider IRA, 401(k) early withdrawal They serve well as solid source of cash Sunday, October 30, 2005 Mary Judice Last week I wrote about sources of cash that are readily available as you struggle to meet daily needs and other financial obligations. Of all the sources I mentioned, the one that has drawn the most comments -- and questions -- is the early withdrawal from a qualified retirement plan like an Individual Retirement Account or a workplace-based 401(k) plan. As one reader put it, it's her largest investment and she would rather tap it than take on debt because her company is closing and she will soon be out of a job. And she's not alone, as unemployment numbers indicated this week. So what are the particulars of borrowing from these types of retirement vehicles? It all boils down to which source of funds you will tap. In hurricanes' wake The Katrina Emergency Tax Relief Act of 2005 makes special provisions for those taking money out of their individual retirement accounts in the wake of the hurricanes. Meanwhile, separate provisions by the Internal Revenue Service make it possible for employees, regardless of where they live, to take money out of qualified company plans, including 401(k) plans, to help relatives living in hurricane-affected areas, said Ed Slott, an IRA specialist from Rockville Centre, N.Y. who publishes a newsletter IRA Advisor. The emergency tax act allows you to withdraw money from your IRA without paying a penalty for taking funds out before the age of 59 ½ if you are in the disaster area. To make a withdrawal under the new provisions, which already have gone into effect, go to your employer or the bank or brokerage that serves as the custodian of your account. You will be able to withdraw up to $100,000 from your IRA. To qualify, your principal residence must be in the Katrina disaster area and you must have suffered an economic loss. The withdrawal could have been made beginning Aug. 25 and the time frame extends to Jan. 1, 2007. As a withdrawal, you do not have to pay the money back but it is taxable. However, if you decide to repay the money to bolster your retirement savings, you will be able to obtain a refund of the taxes paid by filing an amended return. And you could repay it under a lenient plan, which allows three years to get all of the money back into the plan. The clock starts ticking the day after you make the withdrawal. If you choose not to repay the funds, you must pay income taxes on the distribution. That's because when you first take the distribution, you will not have 20 percent withheld for taxes, which is standard under most plan distributions. You will have three years to pay the taxes using a method that spreads the income over three years. Relatively speaking Let's now consider the case of employees who want to take money out of their retirement plans for relatives impacted by the hurricanes or employees in the disaster area who want to withdraw from their own company plans for their own needs. Under new rules issued by the IRS, plan administrators can take the word of the employee about the hardship of relatives instead of having to verify it themselves. And the loan can be made even if the plan's rules don't normally provide for such emergency distributions. When you take money out of your retirement fund under these special IRS provisions, you have the same lenient penalty-free withdrawals if you live in the disaster area and the same lenient repayment and tax advantages as with an IRA. But if you live outside the affected area you could be subject to a 10 percent early withdrawal penalty, if applicable. And if you had a loan balance from a company plan on Aug. 25 or took out a loan you would have a payment deferral for one year. Randy Spinosa, a Mandeville accountant, said those with financial problems who are considering filing for bankruptcy protection should weigh the pros and cons of taking money from retirement accounts. Assets in qualified plans are protected from creditors in a bankruptcy, he said. He said other loan options should be explored, including bank loans and low-interest loans from the Small Business Administration, which may take a while to obtain and which of course would have to be repaid. Experts said age may also be a factor in deciding which course to take. For those years from retirement, these retirement plan distributions and loans may not be as appealing because they will lose the benefit of tax-deferred compounding. For a list of counties and parishes eligible for the retirement fund relief, go to Slott's Web site, www.irahelp.com. And to correct a point from last week. The federal tax extension for those in the Hurricane Katrina disaster area is effective for tax returns, tax payments or tax deposits due on or after Aug. 29, and in Florida where Hurricane Katrina first hit, beginning Aug. 24. For those in the Hurricane Rita disaster area, the effective date for relief begins Sept. 23. The relief act gives you until Feb. 28 to make tax payments to the IRS. . . . . . . . Mary Judice can be reached at mjudice@timespicayune.com or (504) 826-3496.

Insurance, finance questions raised by strom

Insurance, finance questions raised by storm Sunday, October 30, 2005 THE ANSWER SPOT EDITOR'S NOTE: This column marks the debut of the Answer Spot, an occasional feature that will address your post-Katrina questions. To submit a question, e-mail it to insurance@timespicayune.com FEMA FEMA issued me $2,300 to cover three months of rent on the apartment I rented after evacuating. I'm using the money to pay rent for September, October and November. I've heard that this rent money can be renewed. How can I renew it? What documentation will FEMA require for ongoing grants? Call the FEMA help line at (800) 621-3362 and ask the operator to put you through to recertification. Be prepared to explain where you are in the rebuilding process and why you need additional assistance. The operator will provide you with a number to fax your rental receipts to. FEMA will then verify those receipts and determine how much money, if any, to award you. FEMA is most likely to pay the additional rent to families who can demonstrate that they are making progress in rebuilding their lives. Families that have already begun repairing their homes but still need to stay in a separate rental unit, for example, are the best candidates for such a renewal. What's the purpose of the FEMA inspection and what will it mean to my life? When the FEMA inspector arrives, he or she will want to look at the damages your property has sustained. He will write down information about the damage he sees, but he will not be able to comment about whether or not you are eligible for disaster assistance. You will receive a letter from FEMA after the inspection that tells you what you are eligible for. Any insurance companies you file claims with have a similar inspection process. The purpose of these inspections is to determine what assistance you are eligible for. DEMOLITION/REBUILDING Will FEMA pay to demolish my home? If not, will FEMA provide any grants that I can use to pay for demolition? No. And no. If homes present an imminent threat to public health and safety, FEMA's public assistance program may provide money to local governments to cover the cost of demolition. However, FEMA provides no direct demolition assistance to homeowners. What is ICC coverage? If your home or business is damaged by a flood, you may be required to rebuild your home according to new building requirements that call for a higher elevation. For that reason, all National Flood Insurance Program policies include Increased Cost of Compliance (ICC) coverage that covers the cost of raising your home. If a home is substantially damaged -- defined as damage exceeding 50 percent of its pre-storm market value -- it must meet any new flood elevation levels set by federal authorities since your home was built. Once local officials determine that a home was substantially damaged, the homeowner will be notified that they must comply with the new flood elevation requirements. Then the homeowner may file a second claim with their flood insurance company to get up to $30,000 toward the cost of raising the structure to that higher elevation. An insurance adjuster will determine the exact cost to raise the structure and how much will be paid. ICC coverage can also be used to demolish a structure and build a new one at the higher elevation. However, all flood insurance policies pay out a maximum of $250,000. So even if you are deemed eligible for a $30,000 ICC payout, you won't get it if you've already received $250,000 worth of damages through your policy. Before Katrina struck, FEMA was in the process of updating flood maps of the New Orleans area as part of its regular map modernization program. Those changes are on hold for now while engineers review potential changes. SBA After applying for FEMA assistance, I got an SBA loan application in the mail. I don't want to take out a loan. Should I just throw the application out? No. The SBA does offer loans but it also refers some applicants back to FEMA for additional assistance. If you throw the application out, you're taking yourself out of the loop for additional assistance. SBA representatives are urging everyone who receives a loan application to fill it out and return it as soon as possible. How long do I have to file for an SBA disaster loan to cover damages, and what are the terms of the loan? The deadline for filing for disaster loans covering physical damages has been extended from Oct. 28 to Jan. 11, 2006. These loans are available to individuals and businesses to cover repairs to a primary residence or building, or replace personal property or inventory. For repairs to a primary residence, loans are made up to a maximum of $200,000, and for contents replacement a homeowner or renter may get a loan up to $40,000. Loans to businesses and nonprofits to cover physical damages can go as high as $1.5 million. These SBA loans have terms up to 30 years and interest rates as low as 2.68 percent for homeowners and 4 percent for businesses. The rates may be higher if the borrower has access to credit elsewhere. As of Thursday, a total of 1,389 loans had been approved for Louisiana borrowers. For information on these loans call (800) 659-2955 or go to www.sba.gov/disaster. Can I use money from my SBA disaster loan to pay off my mortgage? The SBA does sometimes offer mortgage assistance -- in the form of mortgage refinancing -- to homeowners who have applied for disaster loans. If the SBA determines that a loan applicant meets the agency's criteria for mortgage refinancing, and the SBA discovers that mortgage refinancing is necessary to make the disaster loan affordable, then refinancing may be offered. When the SBA offers mortgage refinancing, it is part of the disaster loan but is offered in addition to money provided for the actual repair or rebuilding of the home. SBA applicants don't need to fill out any extra forms to be considered for mortgage refinancing. The SBA reviews every application to see whether mortgage refinancing should be offered. Applicants who are determined to be eligible for refinancing will be told by their SBA loan officer and will know in advance that refinancing will be offered as part of the overall loan. What is the deadline for businesses to file for an SBA disaster loan for economic injury? Businesses can apply for SBA disaster loans that cover economic injury as well as physical damage. The deadline for applying for an economic injury loan to cover loss of business or to help meet business expenses while starting back up is May 29, 2006. The loans are issued at a maximum of $1.5 million, extend up to 30 years, and have an interest rate of not more than 4 percent. As of Thursday, 40 loans had been approved for Louisiana residents. For information on these loans call (800) 659-2955 or go to www.sba.gov/disaster. HANDLING THE MONEY I finally got my insurance check, but it's made out to both me and my mortgage company. What does this mean? Who gets to cash it? You get to cash it. But first both you and your mortgage company must endorse the check. This is the insurance company's way of protecting the interests of both you and the entity that holds the lien on your home. Requiring the mortgage company to endorse the check insures that that company knows what has happened to the home and what insurance money has been made available. You'll need to contact your mortgage company to make arrangements for their endorsement. What are the local bank policies on when and whether people can access their safe deposit boxes at heavily damaged bank branches? Several banks in the metro area had branches that were heavily flooded, leaving their safe deposit box vaults damaged and unavailable to customers. The banks have moved the damaged boxes from these branches to another location and will offer customers the opportunity to go into the branch and reclaim the property. In many cases, you must schedule an appointment to gain access to the deposit box. For specific information on the branch you bank at, visit your bank's Web site or call the bank directly. Safe deposit boxes are not waterproof, so if your box was damaged its contents may be damaged. Neither the bank nor the Federal Deposit Insurance Corp. insures the contents of these boxes, so you should file a claim on any property damaged in your box with your homeowners insurance. You can have any savings bonds that were stored in your box and damaged in the hurricane replaced. To do this, go to the government Web site www.publicdebt.treas.gov/sav/sav.htm. You can also do this by contacting the Federal Reserve Bank, Pittsburgh Branch, P.O. Box 867, Pittsburgh, PA 15230. Or, call the Federal Reserve Bank at (800) 245-2804. If you kept certificates of deposit in your box and they were damaged, your bank will be able to generate a printout summarizing your holdings. I've completed all the paperwork for my insurance claims. Where is my insurance check? What's the holdup? Insurers say some checks have been delayed because evacuees keep moving without notifying their insurance company of their new address and phone number. In other cases claims have been delayed by the slow pace of clearing debris from hard-hit neighborhoods. However, the state's biggest homeowners insurance underwriters, State Farm and Allstate Corp., said they are making steady progress on processing more than half a million claims that have been filed so far. Allstate has closed 50,000, or 21 percent, of the 237,000 claims filed in connection with hurricanes Katrina and Rita, company executives and a spokesman said. Similar numbers weren't available from State Farm, said spokesman Fraser Engerman, who added, "We are issuing checks every day." State Farm and Allstate handle 50 percent of the state's property insurance market, according to the state Insurance Commission. State Insurance Commissioner Robert Wooley said the quickest payments are coming from flood insurance underwriters who are using aerial photographs to assess property damage rather than visiting each site on foot. Underwriters operating through the federal government's National Flood Insurance Program have paid out $3 billion in claims thus far, said Coast Guard Cmdr. Brendan McPherson, a spokesman for the Federal Emergency Management Agency's joint field office in Baton Rouge. The agency expects to receive $22 billion in claims from 235,000 insured home and business owners. INSURANCE Our insurer made what is a ludicrous request of us. They called and requested that we go to our former home to clear passages for their adjusters. They said that the adjusters cannot measure inside the house because of the 'obstacles' (refrigerator turned upside down, living room furniture on the bed), etc. Here we are: I am 65 and only recently released from the hospital, and my 64-year-old wife who is recovering from heart surgery, and they want us to clear them a path? How far do I have to go to accommodate an adjuster? You should take whatever reasonable steps requested to make your property available for the adjuster. Cooperating is in your best interest because it insures that you will receive the most accurate assessment of your damages. However, you shouldn't be expected to do anything beyond your physical limitations. Call your insurance company back and explain your limitations. If you are unable to work out a solution with your insurance company, contact the state Department of Insurance. The agency will contact the insurance company on your behalf and ask for an explanation of how the claim is being handled. The state Department of Insurance can be reached at (800) 259-5300 or (225) 342-1258 or www.ldi.state.la.us. Will my insurance cover losses to the contents of my home? Probably. Your homeowners policy should cover damage to personal property, or the contents of a home. Under a homeowners policy, so-called 'contents coverage' is linked to the value of the building that is insured, and you automatically have contents coverage equal to 50 percent of the dwelling's value. Your federally issued flood insurance policy also may cover some of your contents. However, contents coverage is not automatically included on a flood policy. You must have made a conscious election to have your flood policy cover contents losses. If you can't remember whether you elected to have contents coverage on your flood insurance, look at your policy. The declaration page should indicate whether you have coverage on both the building and the personal property inside, or on just the building. If you don't have a copy of your policy, call your insurance agent. If you have contents coverage under both your homeowners and flood policies, file claims under both plans simultaneously. You will have to work separately with your flood and homeowners policy adjusters to see what is covered by each plan. My insurance doesn't cover all of the personal property I lost in my home. Will FEMA offer grants to people who don't carry enough insurance to cover all of their contents losses? Yes. FEMA issues grants for "other needs assistance." This type of assistance covers a handful of essential disaster needs, including medical and dental costs, transportation fees and, yes, losses from the contents of your home. It is awarded as part of the financial assistance package you or your family may receive. If you haven't already applied for this financial assistance package, you can do so by calling (800) 462-3362. You can also apply online by going to www.fema.gov. However, if you have insurance you should first work through your insurance claims and provide FEMA with a copy of the decision letter (settlement or denial) from your insurer. FEMA will then call for an inspection of your property. If you qualify for FEMA assistance, the agency will send you a letter outlining how you are to use the money. All FEMA aid is issued in grant form. I've learned my lesson and I now want to make sure that my flood insurance policy covers the contents of my home. How much does contents coverage cost? The premium on contents coverage can be higher than on building coverage and in many cases will double the cost of your flood policy. Here is how your premium is figured: If your building was built before the federal flood plain maps were drawn for your area, you would pay a flat fee. The map for Orleans Parish was drawn in 1984; the Jefferson Parish map was drawn in 1995. The graduated rate begins at 76 cents per $100 of coverage for building coverage and 96 cents per $100 of coverage for contents coverage and declines as more coverage is added. If your home was built after the maps were drawn, the rate depends on the building construction and whether the bottom floor is above or below sea level. For example, a building one foot below flood level would bear a top rate of $2.70 per $100 of the building's value. The contents would be calculated at a graduated rate that begins at $3.01 for every $100 in value. Like other insurance policies, the federal flood policies have separate deductibles for building and contents coverage. The deductibles range from $500 to $5,000. I feel like my insurance company is not treating me fairly. What are my options for appeal? If you are unable to work something out with the company, you can file either an electronic or a written complaint with the state department of insurance. The agency will contact the insurance company on your behalf and ask for an explanation of how the claim is being handled. The state Department of Insurance can be reached at (800) 259-5300 or (225) 342-1258 or www.ldi.state.la.us. You also have the option of invoking the appraisal clause in your policy. This is the portion of your policy that provides an avenue for working to settle disputes between you and the insurance company. Each party (you and your insurance company) chooses an appraiser to review the damage. If the two appraisers cannot agree, a third person called an umpire is selected. You are not bound by the decision of the umpire, and you still have the option of hiring an attorney if all other attempts to resolve the matter are exhausted. Keith Darcé, Mary Judice, Ronette King, and Kim Quillen, all of the Money staff of The Times-Picayune, contributed to this feature