This
is the decision of the Railroad Retirement
Board regarding the continued status of the
South Central Tennessee Railroad Corporation,
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). South
Central Tennessee Railroad Corporation was
held to be an employer under the Acts effective
January 1, 1994 (B.A. Number 5561). On December
31, 2000, its assets were sold to SCTRR,
LLC, which was ruled to be a covered employer
under the Acts (B.A. No. 5582). [See Board
Coverage Decision No. 01-55, June 5, 2001.]
South Central Tennessee Railroad Corporation
changed its name to South East Rail, Inc.,
an inactive corporation, and ceased operations
as of the date of the transfer.
Section 202.11 of the Board’s regulations
provides that:
The employer status of any company or person
shall terminate whenever such company or
person loses any of the characteristics
essential to the existence of an employer
status.
Through the sale of its rail and other
assets and its cessation of operations,
South Central Tennessee Railroad Corporation
has lost the characteristics essential to
the existence of an employer status. Accordingly,
the Board holds that South Central Tennessee
Railroad Corporation ceased to be an employer
under the Railroad Retirement and Railroad
Unemployment Insurance Acts effective with
the close of business on December 31, 2000.
Cf. Rev Ruling 82-99, 1982-2 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 South Central Tennessee Railroad Corporation
when the railroad’s employees stop
performing services in connection with the
railroad’s carrier activities.
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