Employers' Contributions and Contribution Reports, 42488-42489 [05-14228]

Agencies

• Railroad Retirement Board

[Federal Register Volume 70, Number 141 (Monday, July 25, 2005)]
[Rules and Regulations]
[Pages 42488-42489]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14228]


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RAILROAD RETIREMENT BOARD

20 CFR Part 345

RIN: 3220-AB53


Employers' Contributions and Contribution Reports

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) amends its regulations 
to explain the effective date of consolidated employer records that 
result in the issuance of a joint contribution rate under the 
experience rating provisions of section 8 of the Railroad Unemployment 
Insurance Act. In addition, as a result of an agency reorganization, 
there has been a change in the title of the Board employee to whom 
requests for consolidation should be addressed. The Board amends its 
regulations to reflect this change.

DATES: Effective July 25, 2005.

FOR FURTHER INFORMATION CONTACT: Marguerite P. Dadabo, Assistant 
General Counsel, (312) 751-4945, TDD (312) 751-4701.

SUPPLEMENTARY INFORMATION: Effective January 1, 1990, the manner by 
which payroll taxes on railroad employers are determined moved from a 
universal tax rate to a tax rate based upon a formula which takes into 
consideration the amount of benefits that have been paid under the 
Railroad Unemployment Insurance Act (RUIA) to an employer's employees. 
This new method of computing employers' contribution rates is commonly 
referred to as experience rating. Part 345 of the Board's regulations 
deals with the manner by which experience rating contribution rates are 
determined and how employers report such contributions. Various 
business transactions throughout the year can impact employers' 
contribution rates. The existence of more than one rate for an employer 
during a calendar year creates a significant administrative burden for 
the Board, due to the design of the experience rating database. 
Therefore, the Board has adopted a policy of updating contribution 
rates to reflect relevant business transactions effective with the 
calendar year following the Board's determination related to the 
transaction.
    In accordance with an agency reorganization, the revision to Sec.  
345.202 amends the title of the Board official to whom requests for the 
consolidation of employer records should be addressed from the Director 
of Unemployment and Sickness Insurance to the Director of Assessment 
and Training.
    The revision to Sec.  345.203 notifies employers of the date upon 
which an individual employer record will be updated to reflect a merger 
or combination of two or more employers. Where the entity surviving the 
merger is not a new employer, the individual employer record will not 
be updated to reflect the combined record until the calendar year 
following the year of the Board's determination. Where the entity 
surviving the merger becomes an employer under part 202 of subchapter B 
by virtue of the merger, the individual employer record shall consist 
of the combined record effective with its employer effective date.
    The revision to Sec.  345.204 notifies employers of the date upon 
which an individual employer record will be updated to reflect the 
acquisition of assets from another employer. Where the employer 
acquiring the assets is not a new employer under part 202 of subchapter 
B, the individual employer record for that employer will take into 
consideration the acquired assets effective with the calendar year 
following the year of the Board's determination. Otherwise, the 
individual employer record for the entity that becomes an employer by 
virtue of the acquisition will take the acquired assets into 
consideration as of the employer effective date.
    In order to comply with the President's June 1, 1998 memorandum 
directing the use of plain language for all proposed and final 
rulemaking, the regulatory paragraphs introduced by the above rule 
changes have been written in plain language.

Collection of Information Requirements

    The amendments to this part do not impose additional information 
collection and recordkeeping requirements. Consequently, it need not be 
reviewed by the Office of Management and Budget under the authority of 
the Paperwork Reduction Act of 1995.

Regulatory Impact Statement

    Prior to publication of this final rule, the Board submitted the 
rule to the Office of Management and Budget for review pursuant to 
Executive Order 12866. Executive Order 12866 directs agencies to assess 
all costs and benefits of available regulatory alternatives and when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). A 
regulatory impact analysis (RIA) must be prepared for rules that 
constitute significant regulatory action, including rules that have an 
economic effect of $100 million or more annually. This final rule is 
not a major rule in terms of the aggregate costs involved. 
Specifically, we have determined that this final rule is not a major 
rule with economically significant effects because it would not result 
in increases in total expenditures of $100 million or more per year.
    The amendments made by this final rule are not significant. The 
amendments explain the effective date when an employer's individual 
employer records under the Railroad Unemployment Insurance Act (RUIA) 
will be updated to reflect various business transactions for purposes 
of establishing the employer's contribution rate under the experience 
rating provisions of section 8 of the RUIA. The

[[Page 42489]]

amendments also include changes in the title of the Board official to 
whom requests for consolidation of employer records should be 
addressed.
    Both the Regulatory Flexibility Act and the Unfunded Mandates Act 
of 1995 define ``agency'' by referencing the definition of ``agency'' 
contained in 5 U.S.C. 551(1). Section 551(1)(E) excludes from the term 
``agency'' an agency that is composed of representatives of the parties 
or of representatives of organizations of the parties to the disputes 
determined by them. The Railroad Retirement Board falls within this 
exclusion (45 U.S.C. 231f(a)) and is therefore exempt from the 
Regulatory Flexibility Act and the Unfunded Mandates Act.
    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a rule that imposes substantial 
direct compliance costs on State and local governments, preempts State 
law, or otherwise has Federalism implications. We have reviewed this 
final rule under the threshold criteria of Executive Order 13132 and 
have determined that it would not have a substantial direct effect on 
the rights, roles, and responsibilities of States or local governments.
    The Board published the proposed rule on June 14, 2004 (69 FR 
32927), and invited comments by August 13, 2004. No comments were 
received. Accordingly, the proposed rule is being published as a final 
rule without change.

List of Subjects in 20 CFR Part 345

    Electronic filing, Paperwork elimination, Railroad unemployment 
insurance, Reporting and recordkeeping requirements.


0
For the reasons set out in the preamble, the Railroad Retirement Board 
amends title 20, chapter II, part 345 of the Code of Federal 
Regulations as follows:

PART 345--EMPLOYERS' CONTRIBUTIONS AND CONTRIBUTION REPORTS

0
1. The authority citation for part 345 continues to read as follows:

    Authority: 45 U.S.C. 362(l).


0
2. Section 345.202 of subpart C is revised to read as follows:


Sec.  345.202  Consolidated employer records.

    (a) Establishing a consolidated employer record. Two or more 
employers that are under common ownership or control may request the 
Board to consolidate their individual employer records into a joint 
individual employer record. Such joint individual employer record shall 
be treated as though it were a single employer record. A request for 
such consolidation shall be made to the Director of Assessment and 
Training, and such consolidation shall be effective commencing with the 
calendar year following the year of the request.
    (b) Discontinuance of a consolidated employer record. Two or more 
employers that have established and maintained a consolidated employer 
record will be permitted to discontinue such consolidated record only 
if the individual employers agree to an allocation of the consolidated 
employer record and such allocation is approved by the Director of 
Assessment and Training. The discontinuance of the consolidated record 
shall be effective commencing with the calendar year following the year 
of the Director of Assessment and Training's approval.

0
3. Section 345.203 of subpart C is revised to read as follows:


Sec.  345.203  Merger or combination of employers.

    In the event of a merger or combination of two or more employers, 
or an employer and non-employer, the individual employer record of the 
employer surviving the merger (or any person that becomes an employer 
as the result of the merger or combination) shall consist of the 
combination of the individual employer records of the entities 
participating in the merger. Where the person surviving the merger is 
an existing employer under part 202 of this chapter, the individual 
employer record for the surviving employer will not be updated to 
reflect the combined record until the calendar year following the year 
of the Board's determination. Where the entity surviving the merger 
becomes an employer under part 202 of this chapter by virtue of the 
merger, the individual employer record shall consist of the combined 
record effective with its employer effective date.

0
4. Section 345.204(a) of subpart C is revised to read as follows:


Sec.  345.204  Sale or transfer of assets.

    (a) In the event property of an employer is sold or transferred to 
another employer (or to a person that becomes an employer as the result 
of the sale or transfer) or is partitioned among two or more employers 
or persons, the individual employer record of such employer shall be 
prorated among the employer or employers that receive the property 
(including any person that becomes an employer by reason of such 
transaction or partition), in accordance with any agreement among the 
respective parties (including an agreement that there shall be no 
proration of the employer record). Such agreement shall be subject to 
the approval of the Board. Where the employer acquiring the assets is 
an existing employer under part 202 of this chapter, that employer's 
individual employer record will take into consideration the acquired 
assets no earlier than the calendar year following the year of the 
Board's determination, unless an agreement among the respective parties 
provides otherwise. Where the employer acquiring the assets becomes an 
employer under part 202 of this chapter by virtue of such acquisition, 
the individual employer record for such employer shall consider the 
acquired assets as of such person's employer effective date, subject to 
any agreement between the respective parties and the provisions of 
paragraph (b) of this section.
* * * * *

    Dated: July 15, 2005.

    By authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 05-14228 Filed 7-22-05; 8:45 am]
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