This is the decision of the
Railroad Retirement Board regarding the continued status of the Gulf &
Ohio Railways, as an employer under the Railroad Retirement Act (45 U.S.C.
§ 231, et seq.) (RRA) and the Railroad Unemployment Insurance Act (45
U.S.C. § 351, et seq.) (RUIA).
Gulf & Ohio was held to be an employer under the Acts effective December
31, 1985, (B.A. Number 95211).
Gulf & Ohio determined that continued operations were not economically
viable and ceased operations on July 1, 2001. Its track assets were sold
to Coahoma County, Mississippi, and its locomotives were sold to two
railroads. See Surface Transportation Board decision dated June 12, 2001 (STB
Finance Docket No. 580X). Gulf & Ohio last compensated employees on July
31, 2001.
Section 202.11 of the Board’s regulations provides that: |
Through the sale of its rail
and other assets and its cessation of operations, Gulf & Ohio has lost the
characteristics essential to the existence of an employer status.
Accordingly, the Board holds that Gulf & Ohio ceased to be an employer
under the Railroad Retirement and Railroad Unemployment Insurance Acts
effective with the close of business on July 31, 2001. Cf. Rev Ruling
82-99, 1982-1 C.B. 154, wherein the Internal Revenue Service ruled that a
railroad ceases to be an employer subject to taxes under the Railroad
Retirement Tax Act when the railroad’s employees stop performing services
in connection with the railroad’s carrier activities.
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