Overview
This chapter begins with general information about reimbursement requirements
and processing which apply to both reimbursements under Sections 2(f) and 12(o).
Next is information specific to Section 2(f) followed by information specific to
Section 12(o).
Reimbursement for Benefits Paid by RRB
Railroad employers are required under certain circumstances to reimburse the
Railroad Retirement Board (RRB) for unemployment and sickness insurance benefits
paid to their employees. Such reimbursements are required under sections 2(f)
and 12(o) of the Railroad Unemployment Insurance Act (RUIA).
Information Required With a Remittance
In order to insure that remittances are properly credited, be sure to include
the following information on the check or on the remittance document.
Your Payer Code |
Your payer code will be shown on the RRB's response to your Form
ID-3S
or Form
ID-3U
if you indicated on
the form that the employee's claim had been settled. Payer codes
are also shown on billing statements issued by the RRB. If you
do not know your payer code or the billing document ID number,
then show on your remittance the employee's name, the employee's
social security number, and the date of the injury or the period
of time for which reimbursement is being made. |
Billing Document ID number |
Your billing document ID number will be shown on the RRB's
response to your Form ID-3S or Form ID-3U if you indicated on
the form that the employee's claim had been settled. Billing
document ID numbers are also shown on billing statements issued
by the RRB. |
Unemployment or Sickness |
Indicate if the remittance is reimbursement of unemployment (UI)
or sickness (SI) benefits. |
Date |
If remittance is based on a settlement, include the date of the
settlement. |
What to Do if You Get a Bill that You
Already Paid
Although every effort is made to credit remittances to the correct account, if a
remittance cannot be properly matched with the account receivable, a second
billing notice may be issued on the debt. If you receive notice of a debt after
submitting a reimbursement, please show the date and the amount of your
remittance on the second notice and return a copy of the notice to the RRB.
Electronic Remittances
Remittances may be made electronically through
www.RRB.Gov.
Type of Payment Requiring Reimbursement
Under Section 2(f)
Section 2(f) requires that employers reimburse the RRB for benefits paid to an
employee for days for which salary, wages, pay for time lost or other
remuneration is later determined to be payable. Reimbursements under section
2(f) generally result from the award of pay for time lost or the payment of
guaranteed wages. The term "remuneration" includes the following types of
employer payments:
- Dismissal allowances paid pursuant to labor-protective conditions imposed
by the Surface Transportation Board (e.g. New York Dock or Oregon Conditions),
or under any related implementing agreements;
- Coordination allowances under the Washington Job Protection Agreement of
1936;
- Compensation payments under Article IV of the job stabilization agreement
of February 7, 1965, or under revisions to that agreement; and any similar
employer payments under any merger agreement or job protection arrangement
that guarantees payment of compensation during periods when an employee has
been deprived of employment.
The only exception to the types of payments listed above are payments made under
a non-governmental plan for unemployment insurance that the RRB has approved
under section 1(j) of the RUIA. Benefits paid under a non-governmental plan do
not constitute "remuneration".
RRB Notices Under Section 2(f)
The RRB routinely mails a Form ID-30 notice to an employer when information
is received that an employee who is claiming unemployment benefits either 1) may
be eligible to receive a coordination or dismissal allowance or may be covered
under the National Job Stabilization Agreement or a similar plan providing for a
minimum amount of work or compensation, or 2) is seeking or may seek pay for
time lost. Form ID-30 is notice of the RRB's right to reimbursement of benefits
paid to the employee from any salary, wages, pay for time lost, or other
remuneration that may become payable for days for which benefits are paid. Some
railroad employers have made special arrangements to check with the RRB in all
cases before payment of guaranteed wages or pay for time lost. Such arrangements
eliminate the need for the Form ID-30 notices.
Amount of Reimbursement Under Section 2(f)
In general, the amount of reimbursement due under section 2(f) from the award of
pay for time lost or other remuneration is the amount of benefits paid for days
in the period for which the payment is to be made, or the amount of the payment
for the period, whichever is less.
Prior to payment of pay for time lost, back pay, or guarantee pay, the employer
should contact:
Sickness and Unemployment Benefits Division
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092
to obtain
information about the amount of benefits to be deducted from the award for
reimbursement of benefits.
Interest and Penalty Charges Under Section
2(f)
Accounts receivable under Section 2(f) are subject to interest in the same
manner as unpaid employer contributions under section 8(g) of the RUIA. Section
8(g) provides for the assessment of interest at the rate of 1 percent per month,
or fraction thereof, from the due date until paid. The annual interest rate
applied to debts incurred under section 2(f) is 12 percent.
Statutory Language of Section 2(f)
"If (I) benefits are paid to any individual with respect to unemployment or
sickness in any registration period, and it is later determined that
remuneration is payable to such employee with respect to any period which
includes days in such registration period which had been determined to be days
of unemployment or sickness, and (ii) the person or company from which such
remuneration is payable has, before payment thereof, notice of the payment of
benefits upon the basis of days of unemployment or sickness included in such
period, the remuneration so payable shall not be reduced by reason of such
benefits but the remuneration so payable, to the extent to which benefits were
paid upon the basis of days which had been determined to be days of unemployment
or sickness and which are included in the period for which such remuneration is
payable, shall be held to be a special fund in trust for the Board. The amount
of such special fund shall be paid to the Board and in the collection thereof
the Board shall have the same authority, and the same penalties shall apply, as
are provided in section 8 of this Act with respect to contributions".
Type of Payment Requiring Reimbursement
Under Section 12(o)
Under section 12(o), the RRB is entitled to reimbursement of benefits paid for
days of sickness resulting from any injury or infirmity for which the employee
is paid a personal injury settlement or damages by his or her employer.
RRB Notices Under Section 12(o)
A Form ID-30B, notice of lien, is mailed to an employer when an applicant for
sickness benefits indicates that he or she has been injured on duty and/or has
filed or expects to file a claim against the employer for personal injury. Form
ID-30B is notice of the RRB's right to reimbursement of sickness benefits from
any sum or damages payable on account of liability for the employee's injury or
illness.
Amount of Reimbursement Under Section 12(o)
Under the RRB's regulations (20 CFR 341.5), the amount of reimbursement due the RRB under section 12(o) is the amount of the sickness benefits paid to the
employee for the infirmity for which he or she is paid any sum or damages, or
the net amount of the settlement, whichever is less. The net settlement is
considered to be the amount of the damages paid with respect to the employee's
injury or infirmity, minus the amounts of the medical, hospital and legal
expenses incurred by the employee in connection with the injury. Medical and
hospital expenses are deductible in determining the amount of the net settlement
even if they are covered by the employee's insurance.
Advances paid to an employee on a personal injury settlement are considered to
be paid on account of liability and subject to reimbursement under section
12(o). This is true even if no settlement or judgment is entered, or the
employee does not prevail in a court action for damages against the employer.
Employers Must Notify RRB of Settlement
Based on Injury
Under the RRB's regulations (20 CFR 341.6), when an employer makes a settlement,
or must satisfy a final judgment, based on an injury for which the employee
received benefits, the employer must notify the RRB in writing of the settlement
or judgment. The notice must be made within 5 days of the date of the settlement
or judgment, and include:
- the amount of the settlement or judgment;
- the date of settlement or final judgment; and
- the amount withheld from the settlement or judgment to satisfy the RRB's
lien.
Notice of the settlement may be made by facsimile using Form
ID-3S
.
Interest and Penalty Charges Under Section
12(o)
The RRB charges interest and assesses penalties on delinquent debts. Interest
begins to accrue on amounts due under Section 12(o) on the day of the final
settlement or judgment and is charged to the delinquent account 30 days later.
Thereafter, interest is charged every 30 days until the debt is paid in full.
Statutory Language of Section 12(o)
"Benefits payable to an employee with respect to days of sickness shall be
payable regardless of the liability of any person to pay damages for such
infirmity. The Board shall be entitled to reimbursement from any sum or damages
paid or payable to such employee or other person through suits, compromise,
settlement, judgment, or otherwise on account of any liability (other than a
liability under a health, sickness, accident, or similar insurance policy) based
upon such infirmity, to the extent that it will have paid or will pay benefits
for days of sickness resulting from such infirmity. Upon notice to the person
against whom such right or claim exists or is asserted, the Board shall have a
lien upon such right or claim, any judgment obtained thereunder, and any sum or
damages paid under such right or claim, to the extent of the amount to which the
Board is entitled by way of reimbursement".
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