Employment relation defined An
employee generally has an employment relation beginning with the effective hire
date and ending with the effective termination date. An employment relation is
maintained during periods in which active service is not performed because of:
- furlough;
- authorized leave of absence; or
- continuous disability.
Employment relation ends
An employment relation ends when an employee:
- dies;
- retires or receives a company pension;
- is discharged;
- resigns; or
- relinquishes employment rights.
Importance of employment relation
An employment relation is important because service months may be credited
only for months in which an employment relation is maintained. This is true for
deemed service as well. That is why the RRB requests information about an
employee's status on Form GL-99, Deemed Service Questionnaire.
Common error
Employers commonly report service months in error after an employment
relation has ended if the employer is making a payment. Payments earned in a
prior period may be credited when paid, but service months are always credited
when the service was performed. An employment relation is an essential factor in
crediting service months but is not a requirement in crediting compensation.
Example of correctly reporting service
months
An employee retires in November. Earnings payments due are made in December
and again in the following February. The payments made after November may be
credited as compensation to November (or earlier months, if earned in earlier
months) or to the months paid, but no service months are creditable after
November. The employee is not entitled to service credit for December or
February because the employment relation ended in November.
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