Railroad Employers' Reports and Responsibilities

RAILROAD RETIREMENT BOARD

20 CFR Part 209

RIN 3220-AB21

Railroad Employers' Reports and Responsibilities

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

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SUMMARY: The Railroad Retirement Board proposes to amend its

regulations to expand the methods by which compensation and service

reports may be filed with the Board and to require that a social

security account number be furnished for each employee for whom

creditable railroad service and compensation is reported to the Board.

DATES: Comments must be submitted on or before March 23, 1998.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 North

Rush Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Senior Attorney,

Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois

60611, (312) 751-4513, TDD (312) 751-4701.

SUPPLEMENTARY INFORMATION: Employer reports are used to establish

employee compensation and service records. These reports are based on

payroll records. Due to changes in technology, employers now file their

reports on magnetic tape and diskettes and transmit their reports by

facsimile or computer-to-computer transmission (electronic filing). The

punch card referred to in Secs. 209.6, 209.7, 209.11, and 209.14 of the

Board's regulations is an outdated medium of reporting. The quarterly

report required by Sec. 209.8 has been eliminated by the Employer Data

Maintenance System. The Board proposes to amend part 209 of its

regulations in order to reflect these changes. See proposed Sec. 209.4.

The Board also proposes to amend Sec. 209.2 to add a provision that

requires each employer to furnish a social security number (SSN) for

each employee for whom creditable railroad service and compensation is

reported to the Board. The proposed amendment simply puts into

regulation a current reporting requirement. Although not required,

employers are encouraged to validate the social security numbers of

their employees. In addition, the Board proposes to modify the present

Sec. 209.11 to provide that the Board shall mail annual certificates of

service and compensation to employees performing service for covered

employers. Under present regulation these certificates may be provided

through the employer.

Finally, the Board has eliminated references to offices and titles

that were eliminated as the result of a recent reorganization.

Proposed Sec. 209.12 contains information collection requirements.

As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)),

the RRB has submitted a copy of this section to the Office of

Management and Budget (OMB) for its review.

Collection of Information

Employee home address report. This proposed rule would require all

railroad employers to furnish to the RRB home addresses of their

employees, except that after the first year in which they submitted

home address information for all their employees, they would be

required to submit home address information only for new hires. The

purpose of this requirement is to enable the RRB to annually mail to

each active railroad employee a statement of service and compensation

(Form BA-6). Railroad employers may submit this information either

electronically (magnetic tape, tape cartridge, or PC diskette) or on a

paper form prescribed by the RRB (Form BA-6a).

The RRB estimates that the average time for each railroad employer

to furnish home address information is 15 minutes for electronic

submissions and 30 minutes for paper submissions. The annual burden

imposed as a result of this proposed rule would be 209 hours (94

responses x \1/4\ hour per response for electronic responses and 370

responses x \1/2\ hour per response for paper responses.) The burden

is based on approximately 15,000 new hires a year, of which

approximately 80 percent would be reported electronically by 94

railroad employers and 20 percent would be reported on paper by 370

railroad employers.

Organizations and individuals desiring to submit comments on the

information collection requirements should direct them to Laura Oliven,

the Office of Information and Regulatory Affairs, Office of Management

and Budget, New Executive Office Building, 226 Jackson Place, NW., Room

10235, Washington, D.C. 20503 and to Ronald J. Hodapp, Railroad

Retirement Board, 844 North Rush Street, Chicago, Illinois, 60611-2092.

The RRB considers comments by the public on this proposed

collection of information in----

(a) Evaluating whether the proposed collection of information is

necessary for the proper performance of the functions of the RRB,

including whether the information will have a practical use;

(b) Evaluating the accuracy of the RRB's estimate of the burden on

the proposed collection of information, including the validity of the

methodology and assumptions used;

(c) Enhancing the quality, usefulness, and clarity of the

information to be collected; and

(d) Minimizing the burden of collection of information on those who

are to respond, including the use of appropriate electronic,

mechanical, or other automated collection techniques.

OMB is required to make a decision concerning the collection of

information contained in these proposed regulations between 30 and 60

days after publication of this document in the Federal Register.

Therefore, a comment to OMB is best assured of having its full effect

if OMB receives it within 15 days of publication. This does not affect

the

[[Page 2915]]

deadline for the public to comment to the RRB on the proposed

regulations.

The Board, with the concurrence of the Office of Management and

Budget, has determined that this is not a major rule under Executive

Order 12866; therefore, no regulatory impact analysis is required.

List of Subjects in 20 CFR Part 209

Railroad employees, Railroad retirement, Railroads.

For the reasons set out in the preamble, Title 20, Chapter II, Part

209 of the Code of Federal Regulations is proposed to be amended as

follows:

PART 209--RAILROAD EMPLOYERS' REPORTS AND RESPONSIBILITIES

1. The authority citation for Part 209 continues to read as

follows:

Authority: 45 U.S.C. 231f.

Secs. 209.3 through 209.17 [Redesignated]

2. Sections 209.3 through 209.17 are redesignated as follows:

------------------------------------------------------------------------

New

Old section section

------------------------------------------------------------------------

209.3........................................................ 209.5

209.4........................................................ 209.6

(\1\)

209.5........................................................ 209.7

209.6........................................................ 209.8

209.7........................................................ 209.9

209.8........................................................ (\2\)

209.9........................................................ 209.10

209.10....................................................... 209.11

209.11....................................................... 209.12

209.12....................................................... 209.13

209.13....................................................... 209.14

209.14....................................................... 209.15

209.15....................................................... 209.16

209.16....................................................... 209.17

209.17....................................................... 209.18

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\1\ New 209.4 added.

\2\ Removed.

3. A new Sec. 209.3 is proposed to be added as follows:

Sec. 209.3 Social security number required.

Each employer shall furnish to the Board a social security number

for each employee for whom any report is submitted to the Board.

Employers are encouraged to validate any social security number

provided under this section.

(Approved by the Office of Management and Budget under control

number 3220-0008)

4. A new Sec. 209.4 is proposed to be added as follows:

Sec. 209.4 Method of filing.

Any report or information required to be furnished under this part

shall be prepared in accordance with instructions of the Board and

shall be filed with the Board electronically, which includes the use of

magnetic tape, computer diskette, electronic data interchange, or on

such form as prescribed by the Board. If not filed electronically,

reports shall be transmitted by facsimile or mailed directly to the

Board. Any report which includes, or should include, information for

250 or more employees must be filed electronically, as described in

this section.

5. Newly designated Sec. 209.6 is proposed to be revised to read as

follows:

Sec. 209.6 Employers' notice of death of employees.

Each employer shall notify the Board immediately of the death of an

employee who, prior to the employee's death, performed compensated

service which has not been reported to the Board.

(Approved by the Office of Management and Budget under control

number 3220-0005)

6. Newly designated Sec. 209.7 is proposed to be revised to read as

follows:

Sec. 209.7 Employers' supplemental reports of service.

Each employer shall furnish the Board a report of the current year

service of each employee who ceases work for the purpose of retiring

under the provisions of the Railroad Retirement Act.

(Approved by the Office of Management and Budget under control

number 3220-0005)

7. Newly designated Sec. 209.8 is proposed to be revised to read as

follows:

Sec. 209.8 Employers' annual reports of creditable service and

compensation.

Each year, on or before the last day of February, each employer is

required to make an annual report of the creditable service and

compensation (including a report that there is no compensation or

service to report) of employees who performed compensated service in

the preceding calendar year. The annual report shall include service

and compensation previously furnished in supplemental reports and

notices of death. The reports must be accompanied by a report

specification sheet prescribed by the Board as described in Sec. 200.2

of this chapter.

(Approved by the Office of Management and Budget under control

number 3220-0008).

8. Newly designated Sec. 209.9(c) is proposed to be revised to read

as follows:

Sec. 209.9 Employers' adjustment reports.

* * * * *

(c) Employers submitting adjustment reports covering pay for time

lost as an employee shall report this compensation as provided for in

Sec. 211.3 of this chapter. Adjustment reports may be submitted to the

Board each month.

(Approved by the Office of Management and Budget under control

number 3220-0008)

9. Section 209.8 is proposed to be removed.

10. Newly designated Sec. 209.10 is amended by removing ``Director

of Research and Employment Accounts'' and adding in its place

``Board'', and by removing ``Sec. 209.6(a)'' and adding in its place

``Sec. 209.8(a)''.

11. Newly designated Sec. 209.11 is proposed to be revised to read

as follows:

Sec. 209.11 Employee representatives' reports.

An individual claiming status as an employee representative shall

describe his or her duties as an employee representative on the form

prescribed by the Board. The Board shall determine whether the

individual claiming to be an employee representative meets the

requirements for such a status. If the individual is determined to be

an employee representative, he or she is required to make an annual

report of creditable compensation as provided for in Sec. 209.8 of this

part. If an employee representative's status is terminated, the last

report of service and compensation shall be marked Final Compensation

Report.

(Approved by the Office of Management and Budget under control

number 3220-0014)

12. Newly designated Sec. 209.12 is proposed to be revised to read

as follows:

Sec. 209.12 Certificates of service months and compensation.

(a) Each year the Board shall provide each employee who performed

compensated service in the preceding calendar year a certificate of

service months and compensation. This certificate is the employee's

record of the service and compensation credited to his or her account

at the Board. An employee who for any reason does not receive a

certificate may obtain one from the nearest Board district office or

may write the Board for one.

(b) By April 1 of each year each employer shall provide the Board

the current address of each employee for whom it had reported

compensation. This requirement shall not apply in the case of an

employee for whom the employer had previously provided an address.

[[Page 2916]]

13. Newly designated Sec. 209.13(b) is proposed to be revised to

read as follows:

Sec. 209.13 Employers' gross earnings reports.

* * * * *

(b) Employers shall submit reports annually for employees in the

gross earnings sample. Such reports shall include the employee's gross

annual earnings, both taxable and non-taxable compensation, for the

year. Employers with 5,000 or more employees shall provide a monthly or

quarterly breakdown of the year's earnings. Employers with fewer than

5,000 employees may submit an annual amount only, although a monthly or

quarterly breakdown is preferable. Gross earnings are to be counted for

the same time period as used in determining the employer's annual

report of creditable compensation. The reports are to be prepared in

accordance with prescribed instructions and filed in accordance with

Sec. 209.4 of this part.

(Approved by the Office of Management and Budget under control

number 3220-0132)

14. Newly designated Sec. 209.14 is proposed to be amended by

removing paragraph (a), by removing paragraph designation ``(b)''

before the second paragraph, and by removing the terms ``Director of

Research and Employment Accounts'' and ``Director'' wherever those

terms appear, and by adding in their place ``Board''.

15. Newly designated Sec. 209.15 is proposed to be revised to read

as follows:

Sec. 209.15 Report of separation allowances subject to tier II

taxation.

For any employee who is paid a separation payment, the employer

must file a report of the amount of the payment. This report shall be

submitted to the Board on or before the last day of the month following

the end of the calendar quarter in which payment is made. The report

must be accompanied by a report indication/specification sheet

prescribed by the Board as described in Sec. 200.3(a)(2)(ii) of this

chapter.

(Approved by the Office of Management and Budget under control

number 3220-0173)

16. Newly designated Sec. 209.16 is amended by revising the

reference ``Sec. 209.7'' to read ``209.9''; ``209.13'' to read

``209.14'' and ``209.14'' to read ``209.15'' wherever they appear; and

by removing ``Director of Research and Employment Accounts'' wherever

it appears and adding in its place ``Board''.

Dated: January 8, 1998.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 98-1245 Filed 1-16-98; 8:45 am]

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