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).
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| 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).
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| 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.
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| Electronic
remittances |
Remittances
may be made electronically through the Automated
Clearing House (ACH) using the RRBLINK system.
If the RRBLINK system is not used, remittances
are to be mailed to the RRB's lockbox which is
operated by the Mercantile Bank of St. Louis.
The lockbox address is:
U.S. Railroad Retirement Board
Debt Recovery Division
- RUIA
P.O. Box 953492
St. Louis, MO 63195-3492
|
| 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".
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| 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.
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| 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 the RRB's Sickness
and Unemployment Benefits Section
to obtain information about the amount of benefits
to be deducted from the award for reimbursement
of benefits.
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| 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.
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| 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".
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| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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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