This is the decision of the Railroad Retirement Board regarding the continued
status of the Santa Fe Employees Hospital Association (SFEHA) 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). SFEHA
was held to be an employer under the Acts effective June 10, 1891 (B.A. Number
9822). On July 1, 1996, SFEHA merged into the A.T. & S.F. Employees’ Benefit
Association (EBA), a former employer under the Acts1 (B.A. No. 9702). According
to the Agreement and Plan of Merger, EBA was the surviving corporation, with the
new name of Consolidated Associations of Railroad Employees (CARE). According to
Shelly Hawk, CEO and Administrator of CARE, CARE has 23 employees and is
described as a healthcare plan “providing medical and rx coverage for current
and former BNSF employees”.
The evidence of record establishes that SFEHA no longer possesses the
characteristics of a railroad association. The Board therefore finds that
effective July 1, 1996, the date of the merger with A.T. & S.F. Employes’
Benefit Association, the Santa Fe Employees Hospital Association ceased being a
covered employer under the Railroad Retirement and Railroad Unemployment
Insurance Acts.
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Original signed by: |
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FOR THE BOARD
Beatrice Ezerski
Secretary to the Board |
EBA was found to be an employer covered by
the Acts because it was controlled by the railroad. See L-38-650, L-67-167. In
Legal Opinion L-88-99, EBA was found to no longer be a covered employer under
the Acts as it was no longer controlled by a railroad, nor was it under common
control with a rail carrier employer. |