RRB11R004 Attachment C - June 2010 Section 502 Report.pdf

Railroad Retirement System

Annual Report Required by Railroad Retirement Act of 1974 and Railroad

Retirement Solvency Act of 1983

U.S. Railroad Retirement Board Bureau of the Actuary

June 2010

ANNUAL ACTUARIAL REPORT REQUIRED BY

RAILROAD RETIREMENT ACT OF 1974 AND

RAILROAD RETIREMENT SOLVENCY ACT OF 1983

I. INTRODUCTION

Section 22 of the Railroad Retirement Act of 1974 requires the Railroad Retirement Board to prepare an annual report containing a five-year projection of revenues to and payments from the Railroad Retirement Account and to submit the report to the President and the Congress by July 1. The report must also contain a five-year projection of the account benefits ratio and average account benefits ratio. If the five-year projection indicates that funds in the Railroad Retirement Account will be insufficient to pay full benefits, (1) representatives of railroad employees, railroad carriers and the President must submit proposals to the Congress to preserve the financial solvency of the Railroad Retirement Account, and (2) the Railroad Retirement Board must issue regulations to reduce annuity levels during any fiscal year in which there would be insufficient funds to make full payments.

Section 502 of the Railroad Retirement Solvency Act of 1983 requires the Railroad Retirement Board to prepare an annual report on the actuarial status of the railroad retirement system and to submit the report to the Congress by July 1. The report must contain recommendations for any financing changes which might be advisable, including

(1) changes in the tax rates, and (2) whether any part of the taxes on employers should be diverted to the Railroad Unemployment Insurance Account to aid in the repayment of its debt to the Railroad Retirement Account.

This report is intended to meet the requirements of Section 22 and Section 502 for 2010.

II. RAILROAD EMPLOYMENT

Over the years, the main source of income to the railroad retirement system has been a payroll tax on railroad employment. The amount of income that the tax produces is directly dependent on the number of railroad employees covered under the system.

An abbreviated history of average railroad employment from 1955 through 2005 is shown in the following table.

Average annual rate of decline Average employment for the 5-year period Year for year ending with the year

1955 1,239,000 1960 909,000 6.0% 1965 753,000 3.7

1970 640,000 3.2 1975 548,000 3.1 1980 532,000 0.6 1985 372,000 6.9 1990 296,000 4.5 1995 265,000 2.2 2000 246,000 1.5 2005 232,000 1.2

Between 1955 and 2005, the average annual rate of decline was 3.3 percent. Since 2005, average employment and rates of decline have been as follows:

Average employment Annual rate of decline Year for year from previous year

2006 236,000 (1.7%) 2007 237,000 (0.4) 2008 235,000 0.8 2009 220,000 6.4

Two things become clear from the figures shown -- (1) railroad employment has continued to decline over a long period of years, and (2) the rate of decline has been irregular.

Three employment assumptions were used in the 24th actuarial valuation, which served as the 2009 annual report required by Section 502. Employment assumptions I and II were based on a model developed by the Association of American Railroads, and assumed that

(1) passenger employment would remain at the level of 43,000, and (2) the employment base, excluding passenger employment, would decline at a constant annual rate (0.5 percent for assumption I and 2.0 percent for assumption II) for 25 years, at a reducing rate over the next 25 years, and remain level thereafter. Employment assumption III differed from employment assumptions I and II by assuming that (1) passenger employment would decline by 500 per year until a level of 35,000 was reached and then remain level, and (2) the employment base, excluding passenger employment, would decline at a constant annual rate of 3.5 percent for 25 years, at a reducing rate over the next 25 years, and remain level thereafter.

The projected average employment for 2009, based on the three employment assumptions used in the 2009 report, ranged from 227,000 to 233,000. The actual average employment for 2009 was 220,000 (subject to later adjustment), which was below the range of projected amounts. Passenger employment at the end of calendar year 2009 was estimated to be 43,000. Based on this result, it was decided to use 2009 average employment of 220,000 as a starting point in this year's report and continue the use of the rates of decline used in the 24th valuation. In this year’s report, for employment assumptions I and II, passenger employment is assumed to remain level at 43,000. For employment assumption III, passenger employment is assumed to decline by 500 per year until a level of 35,000 is reached and then remain level. These assumptions are shown in Table 1.

III. RESULTS

Projections were made for the various components of income and outgo under each employment assumption for the 25 calendar years 2010-2034. The projections of these components were combined and the investment income calculated to produce the projected balances in the accounts at the end of each projection year. The results are summarized in Table 2 and Figure 1.

Table 2 consists of three tables, one for each of employment assumptions I, II and III.

The tables show, for the Social Security Equivalent Benefit Account (SSEBA) and the combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), for each projection year, (1) the various elements of income and outgo, (2) the account balance on December 31, and (3) the account benefits ratio (ABR) and average account benefits ratio (AABR). 1

Table 2 indicates that cash flow problems arise only under employment assumption III, and not until 2033. The results shown in Table 2 will be discussed separately for the SSEBA and the combined NRRIT and RRA.

A. Social Security Equivalent Benefit Account

The SSEBA pays the social security level of benefits and administrative expenses allocable to those benefits, and it receives as income the social security level of taxes.

The SSEBA also receives or pays the financial interchange transfers between the railroad retirement and social security systems. The financial interchange transfer, subject to the qualification in the next paragraph, should be enough to offset any surplus or deficit for the year. The SSEBA can thus be regarded as automatically funded, the financial interchange being the mechanism for correcting any surplus or deficiency.

The qualification mentioned in the preceding paragraph arises because, in a relatively small number of cases, the railroad retirement system does not pay benefits when the social security system would. In these cases, mainly dependent children of retired railroad employees, the SSEBA collects an amount through the financial interchange but does not pay a corresponding benefit. This imbalance between outgo and income is small in any particular year.

1 At the end of each fiscal year (September 30), an Account Benefits Ratio (ABR) is calculated by dividing the fair market value of the assets in the RRA and of the NRRIT (and for years before 2002, the SSEBA) as of the close of such fiscal year by the total benefits and administrative expenses paid from the RRA and the NRRIT during such fiscal year. The Average Account Benefits Ratio (AABR), with respect to any calendar year, is then calculated as the average of the account benefits ratios for the 10 most recent fiscal years ending before such calendar year. If the AABR is not a multiple of 0.1, it is increased to the next highest multiple of 0.1. The tier 2 tax rate is determined from a tax rate table based on the AABR.

The SSEBA must from time to time transfer to the NRRIT or RRA amounts not needed to pay current benefits and administrative expenses in such a manner as to maximize investment return to the Railroad Retirement system.

The SSEBA is assumed to maintain a target balance of approximately 1.5 months of benefit payments in order to meet benefit obligations and contingencies, and transfer any excess to the NRRIT/RRA. However, if the NRRIT/RRA runs into cash flow problems, the SSEBA is assumed to transfer enough of its accumulated funds to the NRRIT/RRA to provide for benefit payments until the SSEBA is exhausted. Thereafter, the SSEBA is assumed to transfer to the NRRIT/RRA any excess of income over outgo, maintaining a zero balance.

B. Railroad Retirement Account and National Railroad Retirement Investment Trust

The RRA receives tier 2 payroll taxes and income taxes on tier 2 and excess tier 1 benefits. Tier 2 benefits, excess tier 1 benefits, supplemental annuity benefits and administrative expenses are paid from the RRA. The NRRIT receives funds from the RRA and SSEBA for investment, pays investment expenses, and transfers funds to the RRA to meet benefit obligations.

The tier 2 payroll tax rate is determined from a tax rate table based on the AABR. The combined employer and employee tier 2 tax rate is 18% for values of the AABR between

4.0 and 6.0, inclusive. A maximum rate of 27% is reached when the AABR falls below 2.5, and a minimum rate of 8.2% is reached when the AABR reaches 9.0. Since the AABR is a 10-year average of the ABR’s, whether the AABR in a given year increases or decreases from the prior year depends solely on whether the ABR in the prior year is greater or less than the ABR 10 years earlier.

Under employment assumption I (Table 2-I), the combined NRRIT and RRA balance declines through 2022 and then grows through the end of the projection period. The combined employer and employee tier 2 tax rate increases to 20% in 2026-2031, and then decreases to 19% in 2032-2034.

Under employment assumption II (Table 2-II), the combined NRRIT and RRA balance declines through 2026 and then grows through the end of the projection period. The combined employer and employee tier 2 tax rate increases to 27% in 2030-2034.

Under employment assumption III (Table 2-III), the combined NRRIT and RRA balance declines until the balance becomes negative in 2033. Negative after-transfer balances indicate the amount that would be owed, including interest, if unreduced benefits were paid by borrowing from some unknown source. The combined account deficit reaches $2,523 million at the end of the projection period. The combined employer and employee tier 2 tax rate increases to 27% in 2026 and remains at that level through the end of the projection period. Under this assumption, the tax rate mechanism does not respond quickly enough to avoid cash flow problems.

C. Analysis of Results

Under both employment assumptions I and II, no cash flow problems occur throughout the 25-year projection period, and the ABR remains above 0.5 in each year. Under employment assumption III, cash flow problems occur in 2033. In order to maintain an ABR of at least 0.5 throughout the projection period under employment assumption III, the increase in tier 2 tax rate to 27% would need to be accelerated to calendar year 2022.

Alternatively, increasing the tier 2 tax rate to 20.9% beginning in 2011 would also maintain an ABR of at least 0.5 throughout the projection period.

The overall conclusion is that, barring a sudden, unanticipated, large decrease in railroad employment or substantial investment losses, the railroad retirement system will experience no cash flow problems during the next 23 years. The long-term stability of the system, however, is still questionable. Under the current financing structure, actual levels of railroad employment and investment return over the coming years will largely determine whether corrective action is necessary.

D. Comparison of Results with 2009 Report

The projected combined account balances are higher through calendar year 2025 under each employment assumption than in last year’s report. Under employment assumptions I and II, the account balances are lower at the end of the current projection period due to lower taxes in some earlier years.

The favorable comparison with last year was largely due to actual investment return of approximately 24.3% exceeding the expected investment return of 7.5% in calendar year 2009, and to a lesser extent due to a lower estimated COLA for 2011 in this year’s report.

This was offset by lower projected employment and a lower estimated wage increase for 2009 in this year’s report.

IV. RECOMMENDATIONS

As stated in the introduction, this report must contain recommendations with regard to

(1) tax rates and (2) whether any part of the taxes on employers should be diverted to the Railroad Unemployment Insurance Account to aid in the repayment of any debt to the Railroad Retirement Account.

A. Tax Rates

This report recommends no change in the rate of tax imposed on employers and employees. The tax adjustment mechanism will automatically increase or decrease tax rates in response to changes in fund balance. Even under a pessimistic employment assumption, this mechanism is expected to prevent cash flow problems for at least 23 years.

B. Diversion of Taxes to Railroad Unemployment Insurance Account

No diversion of taxes from the Railroad Retirement Account to the Railroad Unemployment Insurance Account is recommended at this time. The loans outstanding from the Railroad Retirement Account to the Railroad Unemployment Insurance Account are expected to be repaid by calendar year 2012 without any diversion of taxes.

Table 1. Employment, inflation and investment return assumptions

Percentage increase Calendar Average employment (thousands) over prior year Investment year I II III Earnings Cost of living return

2009 220 220 220 1.0% 5.8% 24.3% 2010 219 217 213 4.0 0.0 7.5 2011 218 213 207 4.0 0.5 7.5 2012 218 210 201 4.0 3.0 7.5 2013 217 206 195 4.0 3.0 7.5 2014 216 203 189 4.0 3.0 7.5 2015 215 200 183 4.0 3.0 7.5 2016 214 197 178 4.0 3.0 7.5 2017 213 194 172 4.0 3.0 7.5 2018 212 191 167 4.0 3.0 7.5 2019 211 188 162 4.0 3.0 7.5 2020 211 185 157 4.0 3.0 7.5 2021 210 182 153 4.0 3.0 7.5 2022 209 179 148 4.0 3.0 7.5 2023 208 177 144 4.0 3.0 7.5 2024 207 174 139 4.0 3.0 7.5 2025 206 171 135 4.0 3.0 7.5 2026 206 169 132 4.0 3.0 7.5 2027 205 166 128 4.0 3.0 7.5 2028 204 164 125 4.0 3.0 7.5 2029 203 161 122 4.0 3.0 7.5 2030 202 159 119 4.0 3.0 7.5 2031 202 157 116 4.0 3.0 7.5 2032 201 154 113 4.0 3.0 7.5 2033 200 152 110 4.0 3.0 7.5 2034 199 150 108 4.0 3.0 7.5

Table 2-I. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), and Social Security Equivalent Benefit Account (SSEBA) under Employment Assumption I

(Dollar amounts in millions)

Average Combined NRRIT and RRA SSEBA Account account Tier 2 Benefits Benefits Other Combined

Calendar benefits benefits tax and admin- Tax Other Balance, and admin- Tax income and Balance, balance, year ratioa ratiob rate istration incomec incomed end year istration incomec expensee end year end year

2010 5.24 6.80 16.0% $4,642 $2,611 $1,870 $23,898 $6,328 $2,581 $3,735 $787 $24,685 2011 5.01 6.70 16.0% 4,791 2,717 1,777 23,600 6,405 2,690 3,725 796 24,396 2012 4.75 6.50 16.0% 4,986 2,818 1,772 23,205 6,646 2,798 3,878 826 24,031 2013 4.51 6.40 17.0% 5,172 3,080 1,747 22,861 6,907 2,909 4,031 859 23,720 2014 4.28 6.10 17.0% 5,352 3,190 1,722 22,421 7,181 3,024 4,191 893 23,314 2015 4.08 5.90 18.0% 5,528 3,474 1,698 22,064 7,459 3,144 4,349 927 22,991 2016 3.87 5.50 18.0% 5,684 3,597 1,571 21,548 7,745 3,272 4,470 924 22,472 2017 3.70 5.20 18.0% 5,815 3,723 1,598 21,054 8,037 3,406 4,707 999 22,053 2018 3.55 4.70 18.0% 5,926 3,852 1,610 20,590 8,321 3,546 4,810 1,035 21,625 2019 3.42 4.50 18.0% 6,019 3,986 1,584 20,142 8,593 3,692 4,935 1,068 21,210 2020 3.30 4.30 18.0% 6,094 4,125 1,560 19,732 8,850 3,844 5,037 1,100 20,832 2021 3.19 4.10 18.0% 6,152 4,268 1,415 19,263 9,090 3,987 5,133 1,130 20,393 2022 3.15 3.90 19.0% 6,196 4,637 1,524 19,228 9,311 4,134 5,204 1,157 20,385 2023 3.14 3.80 19.0% 6,237 4,798 1,532 19,321 9,515 4,286 5,254 1,183 20,504 2024 3.15 3.60 19.0% 6,284 4,964 1,549 19,549 9,707 4,440 5,291 1,206 20,755 2025 3.18 3.50 19.0% 6,335 5,132 1,574 19,920 9,899 4,597 5,326 1,230 21,150 2026 3.25 3.40 20.0% 6,385 5,560 1,528 20,623 10,094 4,758 5,360 1,254 21,877 2027 3.37 3.40 20.0% 6,439 5,747 1,682 21,613 10,291 4,922 5,393 1,279 22,892 2028 3.52 3.30 20.0% 6,507 5,940 1,764 22,811 10,492 5,092 5,425 1,303 24,114 2029 3.68 3.30 20.0% 6,590 6,139 1,862 24,221 10,700 5,265 5,461 1,329 25,550 2030 3.87 3.30 20.0% 6,683 6,345 1,974 25,858 10,921 5,444 5,505 1,356 27,214 2031 4.08 3.40 20.0% 6,784 6,557 2,046 27,677 11,158 5,628 5,559 1,386 29,063 2032 4.29 3.50 19.0% 6,880 6,462 2,235 29,495 11,412 5,821 5,622 1,417 30,912 2033 4.52 3.60 19.0% 6,969 6,681 2,379 31,586 11,688 6,023 5,699 1,451 33,037 2034 4.79 3.70 19.0% 7,078 6,906 2,544 33,959 11,978 6,230 5,784 1,487 35,446 a The fair market value of the assets in the RRA and NRRIT as of the close of the fiscal year (September 30) divided by the total benefits and administrative expenses paid from the RRA and NRRIT during the fiscal year.

b The average of the account benefits ratios for the 10 most recent fiscal years ending before the calendar year.

c Includes payroll taxes and income taxes on benefits.

d Includes investment income and transfers from the SSEBA.

e Other income includes financial interchange income, advances from general revenues, and interest income. Other expense includes repayment of advances from general revenues and transfers to the NRRIT or RRA.

Table 2-II. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), and Social Security Equivalent Benefit Account (SSEBA) under Employment Assumption II

(Dollar amounts in millions)

Average Combined NRRIT and RRA SSEBA Account account Tier 2 Benefits Benefits Other Combined

Calendar benefits benefits tax and admin- Tax Other Balance, and admin- Tax income and Balance, balance, year ratioa ratiob rate istration incomec incomed end year istration incomec expensee end year end year

2010 5.23 6.80 16.0% $4,642 $2,595 $1,870 $23,882 $6,328 $2,565 $3,751 $787 $24,669 2011 5.00 6.70 16.0% 4,791 2,673 1,774 23,538 6,405 2,647 3,768 796 24,334 2012 4.73 6.50 16.0% 4,986 2,746 1,764 23,063 6,646 2,726 3,950 826 23,889 2013 4.47 6.30 17.0% 5,171 2,971 1,732 22,595 6,907 2,805 4,134 859 23,454 2014 4.21 6.10 17.0% 5,351 3,046 1,696 21,986 7,181 2,887 4,328 893 22,879 2015 3.96 5.90 18.0% 5,527 3,282 1,658 21,399 7,458 2,971 4,522 927 22,326 2016 3.71 5.50 18.0% 5,682 3,363 1,512 20,592 7,745 3,061 4,681 924 21,516 2017 3.48 5.10 18.0% 5,812 3,445 1,515 19,740 8,036 3,154 4,958 999 20,739 2018 3.27 4.70 18.0% 5,922 3,529 1,499 18,846 8,319 3,251 5,103 1,034 19,880 2019 3.06 4.40 18.0% 6,013 3,614 1,438 17,884 8,591 3,352 5,272 1,068 18,952 2020 2.86 4.20 18.0% 6,087 3,701 1,373 16,872 8,845 3,457 5,420 1,100 17,972 2021 2.67 3.90 19.0% 6,143 3,977 1,189 15,895 9,082 3,549 5,563 1,129 17,024 2022 2.51 3.70 19.0% 6,184 4,073 1,249 15,032 9,300 3,644 5,683 1,156 16,188 2023 2.35 3.50 19.0% 6,222 4,171 1,193 14,174 9,498 3,739 5,783 1,181 15,355 2024 2.23 3.30 20.0% 6,264 4,472 1,144 13,525 9,683 3,835 5,871 1,203 14,728 2025 2.11 3.10 20.0% 6,310 4,575 1,101 12,891 9,866 3,930 5,959 1,226 14,117 2026 2.07 2.90 23.0% 6,355 5,316 992 12,845 10,050 4,026 6,047 1,249 14,094 2027 2.07 2.70 23.0% 6,403 5,438 1,088 12,967 10,233 4,122 6,134 1,271 14,238 2028 2.08 2.60 23.0% 6,464 5,562 1,102 13,167 10,418 4,220 6,222 1,294 14,461 2029 2.10 2.50 23.0% 6,539 5,687 1,122 13,438 10,607 4,317 6,313 1,317 14,755 2030 2.24 2.40 27.0% 6,621 6,748 1,184 14,749 10,805 4,417 6,412 1,342 16,091 2031 2.42 2.30 27.0% 6,711 6,902 1,230 16,170 11,013 4,519 6,520 1,367 17,537 2032 2.63 2.30 27.0% 6,793 7,061 1,400 17,837 11,233 4,625 6,635 1,395 19,232 2033 2.87 2.30 27.0% 6,866 7,226 1,531 19,727 11,470 4,736 6,763 1,424 21,151 2034 3.13 2.30 27.0% 6,955 7,394 1,679 21,845 11,714 4,849 6,895 1,454 23,299 a The fair market value of the assets in the RRA and NRRIT as of the close of the fiscal year (September 30) divided by the total benefits and administrative expenses paid from the RRA and NRRIT during the fiscal year.

b The average of the account benefits ratios for the 10 most recent fiscal years ending before the calendar year.

c Includes payroll taxes and income taxes on benefits.

d Includes investment income and transfers from the SSEBA.

e Other income includes financial interchange income, advances from general revenues, and interest income. Other expense includes repayment of advances

Table 2-III. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), and Social Security Equivalent Benefit Account (SSEBA) under Employment Assumption III

(Dollar amounts in millions)

Average Combined NRRIT and RRA SSEBA Account account Tier 2 Benefits Benefits Other Combined

Calendar benefits benefits tax and admin- Tax Other Balance, and admin- Tax income and Balance, balance, year ratioa ratiob rate istration incomec incomed end year istration incomec expensee end year end year

2010 5.23 6.80 16.0% $4,642 $2,576 $1,869 $23,862 $6,328 $2,547 $3,769 $787 $24,649 2011 4.99 6.70 16.0% 4,791 2,623 1,770 23,465 6,405 2,597 3,818 796 24,261 2012 4.70 6.50 16.0% 4,985 2,663 1,755 22,898 6,646 2,642 4,034 826 23,724 2013 4.41 6.30 17.0% 5,171 2,846 1,715 22,287 6,907 2,686 4,253 859 23,146 2014 4.12 6.10 17.0% 5,350 2,882 1,667 21,485 7,181 2,731 4,484 893 22,378 2015 3.84 5.80 18.0% 5,525 3,066 1,612 20,637 7,458 2,776 4,717 927 21,564 2016 3.54 5.50 18.0% 5,680 3,102 1,445 19,504 7,744 2,824 4,916 924 20,428 2017 3.24 5.10 18.0% 5,809 3,138 1,421 18,255 8,035 2,875 5,235 999 19,254 2018 2.96 4.60 18.0% 5,917 3,174 1,373 16,885 8,318 2,928 5,424 1,034 17,919 2019 2.66 4.30 18.0% 6,007 3,210 1,275 15,363 8,587 2,983 5,638 1,068 16,431 2020 2.36 4.00 18.0% 6,079 3,245 1,166 13,695 8,840 3,040 5,831 1,099 14,794 2021 2.05 3.70 19.0% 6,132 3,440 930 11,933 9,074 3,083 6,020 1,128 13,061 2022 1.78 3.40 20.0% 6,170 3,638 934 10,335 9,286 3,125 6,187 1,154 11,489 2023 1.50 3.10 20.0% 6,204 3,677 821 8,628 9,479 3,167 6,335 1,178 9,806 2024 1.27 2.90 23.0% 6,242 4,208 718 7,311 9,656 3,207 6,471 1,200 8,511 2025 1.04 2.60 23.0% 6,284 4,251 623 5,902 9,829 3,247 6,604 1,221 7,123 2026 0.87 2.30 27.0% 6,324 4,970 455 5,004 10,000 3,288 6,733 1,243 6,247 2027 0.73 2.00 27.0% 6,365 5,027 485 4,150 10,169 3,331 6,859 1,263 5,413 2028 0.59 1.80 27.0% 6,419 5,086 424 3,241 10,337 3,373 6,984 1,284 4,525 2029 0.43 1.50 27.0% 6,485 5,144 358 2,258 10,504 3,414 7,111 1,305 3,563 2030 0.27 1.30 27.0% 6,555 5,205 287 1,195 10,676 3,456 7,241 1,326 2,521 2031 0.09 1.10 27.0% 6,627 5,267 165 - 10,854 3,500 7,363 1,334 1,334 2032 0.09 0.90 27.0% 6,687 5,332 1,355 - 11,038 3,546 6,281 123 123 2033 -0.08 0.70 27.0% 6,737 5,402 179 (1,157) 11,232 3,595 7,514 - (1,157) 2034 -0.28 0.60 27.0% 6,800 5,473 (38) (2,523) 11,427 3,645 7,782 - (2,523) a The fair market value of the assets in the RRA and NRRIT as of the close of the fiscal year (September 30) divided by the total benefits and administrative expenses paid from the RRA and NRRIT during the fiscal year.

b The average of the account benefits ratios for the 10 most recent fiscal years ending before the calendar year.

c Includes payroll taxes and income taxes on benefits.

d Includes investment income and transfers from the SSEBA.

e Other income includes financial interchange income, advances from general revenues, and interest income. Other expense includes repayment of advances

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Figure 1. Combined NRRIT, RRA and SSEBA Balance (In millions)

Employment assumption I

Employment assumption II

Employment assumption III