[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7666]


[[Page Unknown]]

[Federal Register: March 31, 1994]


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RAILROAD RETIREMENT BOARD

20 CFR Part 200

[RIN 3220-AB02]

 

Assessment or Waiver of Interest, Penalties, and Administrative 
Costs With Respect To Collection of Certain Debts

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) amends its regulations 
to clarify when interest and penalties begin to accrue on an amount 
owed to the Board under the Railroad Unemployment Insurance Act (RUIA).

EFFECTIVE DATE: March 31, 1994.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush 
Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Assistant General 
Counsel, Bureau of Law, Railroad Retirement Board, 844 Rush Street, 
Chicago, Illinois 60611 (312) 751-4513; TDD (312) 751-4701.

SUPPLEMENTARY INFORMATION: Section 200.7(b)(2) of the Board's 
regulations provides that:


    Interest shall accrue from the date on which notice of the debt 
and demand for repayment with interest is first mailed or hand-
delivered to the debtor, or in the case of a debt which is subject 
to section 10(c) of the Railroad Retirement Act or section 2(d) of 
the Railroad Unemployment Insurance Act, interest shall accrue from 
the date that a denial of waiver of recovery is mailed or hand-
delivered to the debtor or, if waiver has not been requested, upon 
the expiration of the time within which to request waiver, except as 
otherwise specified in this section.

    Section 200.7(c) of the regulations provides that:
    (1) A penalty charge of 6 percent per year shall be assessed on 
any debt that is delinquent for more than 90 days.
    (2) The penalty charge shall accrue from the date on which the 
debt became delinquent.
    (3) A debt is delinquent if it has not been paid in full by the 
30th day after the date on which the initial demand letter was first 
mailed or hand-delivered, or, if the debt is being repaid under an 
installment payment agreement, at any time after the debtor fails to 
satisfy his or her obligation for payment thereunder.

    Section 12(o) of the Railroad Unemployment Insurance Act provides 
that 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 suit, compromise, settlement, judgment, or 
otherwise on account of any liability (other than a liability under 
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.
    Section 341.6 of the Board's regulations provides that a person or 
company subject to the lien must notify the agency within five days of 
a settlement or judgment and must pay the agency the amount withheld to 
satisfy the lien within 30 days. In the case where a lien arises in 
favor of the Board as a result of a settlement or judgment but the 
Board is not notified of the settlement or judgment in a timely manner, 
the employer or third party who has been served with a Notice of Lien 
and notice of the amount of that lien already has notice of the 
existence and amount of the debt. Accordingly, interest should accrue 
from the date of settlement or judgment, but would be waived if paid 
within 30 days in accordance with Sec. 200.7(g)(l) of the Board's 
regulations.
    Likewise, a section 12(o) debt should be considered delinquent if 
the lien is not satisfied within 30 days after settlement or entry of 
judgment.
    Consequently, the Board amends Sec. 200.7 of its regulations to 
provide for the accrual of interest on section 12(o) debts and for the 
accrual of penalties on such debts when they become delinquent.
    On January 14, 1994, the Board published this rule as a proposed 
rule (59 FR 2318), inviting comments on or before February 14, 1994. No 
comments were received.
    The Board, with the concurrence of the Office of Management and 
Budget, has determined that this is not a significant regulatory action 
for purposes of Executive Order 12866; therefore, no regulatory impact 
analysis is required. There are no information collections associated 
with this rule.

List of Subjects in 20 CFR Part 200

    Railroad employees, Railroad unemployment insurance.

    For the reasons set out in the preamble, title 20, chapter II, part 
200 of the Code of Federal Regulations is amended as follows:

PART 200--GENERAL ADMINISTRATION

    1. The authority citation for part 200 continues to read as 
follows:

    Authority: 45 U.S.C. 231f(b)(5) and 45 U.S.C. 362; section 200.4 
also issued under 5 U.S.C. 552; section 200.5 also issued under 5 
U.S.C. 552(a); section 200.6 also issued under 5 U.S.C. 552b; and 
section 200.7 also issued under 31 U.S.C. 3717.

    2. Section 200.7 is amended by redesignating paragraphs (b)(3) and 
(b)(4) as paragraphs (b)(4) and (b)(5), respectively, and adding a new 
paragraph (b)(3) to read as follows:


Sec. 200.7  Assessment or waiver of interest, penalties, and 
administrative costs with respect to collection of certain debts.

* * * * *
    (b) * * *
    (3) In the case of a lien for reimbursement of sickness benefits 
pursuant to part 341 of this chapter, interest on the amount of the 
lien shall accrue from the date of settlement or the entry of final 
judgment.
* * * * *
    3. Section 200.7 is amended by adding a new paragraph (c)(4) to 
read as follows:


Sec. 200.7  Assessment or waiver of interest, penalties, and 
administrative costs with respect to collection of certain debts.

* * * * *
    (c) * * *
    (4) In the case of a lien for reimbursement of sickness benefits 
pursuant to part 341 of this chapter, the amount of the lien is 
delinquent if it has not been paid in full by the 30th day after the 
date of settlement or entry of final judgment.
* * * * *
    Dated: March 24, 1994.

    By Authority of the Board.

    For the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 94-7666 Filed 3-30-94; 8:45 am]
BILLING CODE 7905-01-P