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: Final rule.

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SUMMARY: The Railroad Retirement Board amends 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.

EFFECTIVE DATE: July 15, 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 previously 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209.14 of the Board's regulations is an outdated medium of reporting.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 amends part 209 of its

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

The Board also amends 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. This 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 is revising 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 previous regulation these certificates could 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.

The final rule removes Sec. 209.13, redesignated Sec. 209.14 in the

proposed rule, since the separate report required by that section with

regard to miscellaneous compensation under Sec. 211.11 of this chapter

is no longer

[[Page 32613]]

required. In addition, the reference to Sec. 209.13 is removed from

Sec. 209.15(d).

The Board published this rule as a proposed rule on January 20,

1998 (63 FR 2914), and invited comments by March 23, 1998. No comments

were received.

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.

Information collections required by this rule have been approved by the

Office of Management and Budget.

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 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.

1a. Sections 209.8 and 209.13 are removed.

Secs. 209.3 through 209.12 [Redesignated]

2. Sections 209.3 through 209.12 are redesignated as follows:

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New

Old section section

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

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

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

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

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

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

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

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

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

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3. A new Sec. 209.3 is 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 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 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 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 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.

(Approved by the Office of Management and Budget under control

number 3220-0008)

8. Newly designated Sec. 209.9(c) is 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)

9-10. 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 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 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.

(Approved by the Office of Management and Budget under control

number 3220-0194)

13-14. Paragraph (b) of newly designated Sec. 209.13 is revised to

read as follows:

[[Page 32614]]

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, which includes all compensation taxable under the

hospital insurance portion of the tier I tax rate. 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)

15. Section 209.14 is revised to read as follows:

Sec. 209.14 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 is

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 3220-0173)

16. Section 209.15 is amended by removing the reference to

``Sec. 209.7'' wherever it appears and adding in its place ``209.9'',

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

it appears and adding in its place ``Board'', and by revising paragraph

(d) to read as follows:

Sec. 209.15 Compensation reportable when paid.

* * * * *

(d) Miscellaneous pay. Miscellaneous pay, as defined in Sec. 211.11

of this chapter, shall be reported in the year paid and reported on the

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

part.

* * * * *

Dated: June 5, 1998.

By authority of the Board.

For the Board,

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 98-15798 Filed 6-12-98; 8:45 am]

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