[Federal Register Volume 67, Number 243 (Wednesday, December 18, 2002)]
[Proposed Rules]
[Pages 77448-77450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31775]


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RAILROAD RETIREMENT BOARD

20 CFR Part 217

RIN 3220-AB55


Application for Annuity or Lump Sum

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

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SUMMARY: The Railroad Retirement Board (Board) proposes to amend its 
regulations to permit the filing of applications via the Internet. The 
Government Paperwork Elimination Act provides that federal agencies are 
required by October 21, 2003, to provide ``for the option of the 
electronic maintenance, submission, or disclosure of information, when 
practicable as a substitute for paper''. The proposed changes to part 
217 will permit the filing of applications for benefits under the 
Railroad Retirement Act electronically.

DATES: Submit comments on or before February 18, 2003.

ADDRESSES: Address any comments concerning this proposed rule to 
Beatrice Ezerski, Secretary to the Board, Railroad Retirement Board, 
844 North Rush Street, Chicago, Illinois 60611-2092.

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

SUPPLEMENTARY INFORMATION: The amendments would revise part 217 of the 
Board's regulations (20 CFR 217) to permit the filing of applications 
via the Internet. The Government Paperwork Elimination Act, Pub. L. 
105-277 Sec. Sec.  1701-1710 (codified as 44 U.S.C. Sec.  3504n), 
provides that Federal agencies are required by October 21, 2003, to 
provide ``for the option of the electronic maintenance, submission, or 
disclosure of information, when practicable as a substitute for 
paper''. The proposed changes to part 217 will permit the filing of 
applications under the Railroad Retirement Act electronically.
    The change to Sec.  217.5 provides that the application may be 
filed electronically. That section is further amended to provide that 
if the application is filed electronically, the applicant's proper use 
of the Board's User ID/Pin/Password system is an acceptable signature.
    The Board currently uses a User ID/PIN/Password system that allows 
railroad employers access to RRBLINK to make electronic tax deposits 
and electronically submit Form DC-1, ``Employer's Quarterly Report of 
Contributions Under the Railroad Unemployment Insurance Act''. A User 
ID/PIN/Password system is used to access the http://www.pay.gov site. 
The U.S. Department of the Treasury operates the http://www.pay.gov 
site. Such a system also is consistent with the guidance provided by 
the Department of Justice regarding the use of electronic processes.
    The change to Sec.  217.6 makes an electronic submission of an 
application through the Board's system a valid application for benefits 
under the Railroad Retirement Act. Section 217.15 is amended to permit 
a claimant to file

[[Page 77449]]

an application electronically through the Board's system.
    Section 217.16 has been amended to clarify the filing date when an 
application is filed electronically. Section 217.17 has been amended to 
permit the submission of an application through the Board's electronic 
system using a User ID/PIN/Password as an adequate signature. Section 
217.18 has been amended to explain when an electronic submission of an 
application is not acceptable.

Collection of Information Requirements

    Under the Paperwork Reduction Act (PRA) of 1995, agencies are 
required to provide 60-day notice in the Federal Register and solicit 
public comment before a collection of information requirement is 
submitted to the Office of Management and Budget (OMB) for review and 
approval. Because this rule proposes to collect application information 
by a different method, i.e., via the Internet rather than on a paper 
application, and in order to fairly evaluate whether an information 
collection should be approved, section 3506(c)(2)(A) of the PRA of 1995 
requires that we solicit comment on the following issues:
    [sbull] Whether the information collection is necessary and useful 
to carry out the proper functions of the agency;
    [sbull] The accuracy of the agency's estimate of the information 
collection burden;
    [sbull] The quality, utility, and clarity of the information to be 
collected; and
    [sbull] Recommendations to minimize the information collection 
burden on the affected public, including automated collection 
techniques.
    The information which will be collected via the Internet is the 
same information currently collected on paper applications. Those 
information collections through paper applications have been approved 
by OMB under the following control numbers, which expire as indicated: 
3220-0002, Application for Employee Annuity under the Railroad 
Retirement Act, expiring July 31, 2003; 3220-0030, Application for 
Survivor Insurance Annuities, expiring March 31, 2004; 3220-0031, 
Application for Survivor Death Benefits, expiring January 31, 2003; and 
3220-0042, Application for Spouse Annuity under the Railroad Retirement 
Act, expiring July 31, 2003.
    The Board has not yet completed development of the format to be 
used in collecting application information via the Internet. We will 
therefore again solicit public comment on this rule along with the 
actual format to be used to collect application information via the 
Internet at the final rule stage of this rule.

Regulatory Impact Statement

    Prior to publication of this proposed rule, the Board submitted 
this 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 proposed rule is 
not a major rule in terms of the aggregate costs involved. While this 
amendment should result in modest savings in administrative costs due 
to the streamlining of procedures, we have determined that this 
proposed 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 proposed rule is significant because for the first time 
applicants for benefits under the Railroad Retirement Act will be 
afforded a method of applying for benefits without completing a written 
form. Part 217 is proposed to be amended to permit the filing of 
applications for an annuity or lump sum electronically via the Internet 
in accordance with the provisions of the Government Paperwork 
Elimination Act. Sections 1701-1710 of that Act, Pub. L. 105-277 
(codified as 44 U.S.C. 3504n), require Federal agencies to provide for 
the option of electronic maintenance, submission, or disclosure of 
information, when practicable, as a substitute for paper. The proposed 
changes to Part 217 will benefit the agency's constituents who will 
have the opportunity to file applications for benefits electronically 
via the Internet.
    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 
proposed 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.
    In accordance with the provisions of Executive Order 12866, this 
regulation has been reviewed by the Office of Management and Budget.

List of Subjects in 20 CFR Part 217

    Claims, Railroad retirement, Reporting and record keeping 
requirements.

    For the reasons set out in the preamble, the Railroad Retirement 
Board proposes to amend title 20, chapter II, part 217 of the Code of 
Federal Regulations as follows:

PART 217--APPLICATION FOR ANNUITY OR LUMP SUM

    1. The authority citation for part 217 continues to read as 
follows:


    Authority: 45 U.S.C. 231d and 45 U.S.C. 231f.

    2. Section 217.5 of Subpart B is revised to read as follows:


Sec.  217.5  When an application is a claim for an annuity or lump sum.

    An application is a claim for an annuity or lump sum if it complies 
with paragraphs (a), (b), and (c):
    (a) It is either on an application form completed and filed with 
the Board or is submitted electronically through the Board's system as 
described in Sec.  217.6;
    (b) It is either:
    (1) Signed by the claimant or by someone described in Sec.  217.17 
who can sign the application for the claimant; or
    (2) Filed electronically through the Board's system.
    (c) It is filed with the Board on or before the date of death of 
the claimant. (See Sec.  217.10 for limited exceptions.) (Approved by 
the Office of Management and Budget under control number 3220-0002)
    3. Section 217.6 of Subpart B is amended by adding a new paragraph 
(d) to read as follows:


Sec.  217.6  What is an application filed with the Board.

* * * * *
    (d) Claim filed electronically. A claim filed electronically 
utilizing the Board's

[[Page 77450]]

system with a User ID/Pin/Password is a valid application for an 
annuity or lump sum.
    4. Section 217.15 of Subpart C is amended by adding a new paragraph 
(c) to read as follows:


Sec.  217.15  Where to file.

* * * * *
    (c) Electronic filing. An application for an annuity or lump sum 
may be filed electronically through the Board's Web site, www.rrb.gov 
utilizing a User ID/Pin/Password.
    5. Section 217.16 of Subpart C is amended by adding a new paragraph 
(f) to read as follows:


Sec.  217.16  Filing date.

* * * * *
    (f) On the date that the electronic filing of an application for an 
annuity or lump sum is accepted as submitted by the Board's electronic 
system.
    6. Section 217.17 of Subpart C is amended by adding a new paragraph 
(f) to read as follows:


Sec.  217.17  Who may sign an application.

* * * * *
    (f) An application for an annuity or lump sum that is filed 
electronically through the Board's Web site, http://www.rrb.gov, 
utilizing a User ID/Pin/Password. The use by the applicant of his/her 
self-selected password in conjunction with the Board's User ID/PIN/
Password system has the same validity as a signature on a paper 
application.


(Approved by the Office of Management and Budget under control numbers 
3220-0002, 3220-0030, 3220-0031, and 3220-0042)
    7. Section 217.18 of Subpart C is amended by adding a new paragraph 
(d) to read as follows:


Sec.  217.18  When application is not acceptable.

* * * * *
    (d) Electronic filing. If an application for an annuity is filed 
through the Board's electronic system and it is rejected by that 
system, the claimant must submit another application. If the new 
application, electronic or paper, is submitted within 30 days from the 
notification that the initial filing was rejected, the Board will set 
the filing date of the subsequent application as the date the rejected 
application was attempted to be filed.

    Dated: December 12, 2002.

    By Authority of the Board.

    For the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 02-31775 Filed 12-17-02; 8:45 am]
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