[Federal Register Volume 66, Number 87 (Friday, May 4, 2001)]
[Notices]
[Pages 22622-22623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11285]
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RAILROAD RETIREMENT BOARD
Proposed Collection; Comment Request
SUMMARY: In accordance with requirement of section 3506 (c)(2)(A) of
the Paperwork Reduction Act of 1995 which provides opportunity for
public comment on new or revised data collections, the Railroad
Retirement Board (RRB) will publish periodic summaries of proposed data
collections.
Comments are invited on: (a) Whether the proposed information
collection is necessary for the proper performance of the functions of
the agency, including whether the information has practical utility;
(b) the accuracy of the RRB's estimate of the burden of the collection
of the information; (c) ways to enhance the quality, utility, and
clarity of the information to be collected; and (d) ways to minimize
the burden related to the collection of information on respondents,
including the use of automated collection techniques or other forms of
information technology.
Title and Purpose of Information Collection: Verification of
Supplemental Annuity.
Under Section 2(b) of the Railroad Retirement Act (RRA), the
Railroad Retirement Board (RRB) pays supplemental annuities to
qualified RRB employee annuitants. A supplemental annuity, which is
computed according to section 3(e) of the RRA, can be paid at age 60 if
the employee has at least 30 years of creditable railroad service or at
age 65 if the employee had 25-29 years of railroad service. In addition
to 25 years of service, a ``current connection'' with the railroad
industry is required. Eligibility is further limited to
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employees who had at least one month of rail service before October
1981 and were awarded regular annuities after June 1966. Further, if an
employee's 65th birthday was prior to September 2, 1981, he or she must
not have worked in rail service after certain closing dates (generally
the last day of the month following the month in which age 65 is
attained).
The supplemental annuities paid by the RRB are financed entirely by
the railroad employers under 26 USC of 3221 of the Internal Revenue
Code. Under 26 USC 3221(c) every employer must pay a ``work hour'' tax
at such a rate as to make available certain funds for the RRB to pay
supplemental annuities at the level provided under section 3(e) of the
RRA, unless the exception in 26 USC 3221(d) applies.
Also, under 26 U.S.C. 3221(c) a Supplemental Annuity tax credit is
due to the railroad for any month for which an employee's RRB
Supplemental Annuity is reduced under Section 2(h)(2) of the RRA for an
employer private pension approved by the RRB's Bureau of Law, when
either the employer pension was not established pursuant to a
collective bargaining agreement; or, if the employer pension was
established pursuant to a supplemental annuity tax credit allowed is
equal (dollar for dollar) to the amount of the reduction in the
employee's supplemental annuity for the private pension.
Section 26 USC 3221(d) of the Internal Revenue Code exempts certain
employers from the ``work hour tax'' when the private pension plan,
approved by the RRB's Bureau of Law, that was established pursuant to a
collective bargaining (union) agreement and the employee was a member
of the collective bargaining unit. Instead a supplemental annuity tax
liability is billed to the employer as a ``special supplemental tax''
under any month for which the employee is paid a RRB supplemental
annuity. The ``special supplemental tax'' is equal to the amount of the
supplemental annuity being paid, plus a percentage added to reimburse
the RRB for administrative cost.
The RRB currently requires the following information from railroad
employers to calculate supplemental annuities. (a) The current status
of railroad employer pension plans and whether such an employer pension
plan causes a reduction to the supplemental annuity; (b) the amount of
the employer private pension being paid to the employee; (c) whether or
not the railroad employer pension is based on a collective bargaining
agreement, (d) whether or not the employee made contributions to the
pension; and (e) whether the employer pension plan continues when the
employer status under the RRA changes. The requirements for eligibility
to a supplemental annuity and a description of an employer pension are
prescribed in 20 CFR 216.40-216.42. The computation of the supplemental
annuity is prescribed in 20 CFR 227. Evidence requirements for a deemed
current connection for a supplemental annuity are prescribed in 20 CFR
216.15.
The RRB currently utilizes Form(s) G-88p (Employer's Supplemental
Pension Report), G-88r (Request for Information About New or Revised
Pension Plan), and G-88r.1 (Request for Additional Information about
Employer Pension Plan in Case of Change of Employer Status or
Termination of Pension Plan), to obtain the necessary information from
railroad employers. (OMB approved 3220-0089).
In order to ensure that the supplemental annuity is correctly
adjusted and the supplemental annuity tax credits or supplemental
annuity tax liabilities are correct, the RRB proposes the
implementation of a new information collection consisting of two new
forms, Form G-88p.1, Request for Verification of Employer Pension
Information, and Form G-88p.2, Verification of Employer Collective
Bargaining Pension Information.
The completion time for proposed Form G-88p.1 and G-88p.2 is
estimated at between 10 to 120 minutes. The RRB estimates that about 75
G-88p.1's and 15 G-88p.2's will be completed annually. One response is
requested of each respondent. Completion is mandatory.
FOR FURTHER INFORMATION CONTACT: To request more information or to
obtain a copy of the information collection justification, forms, and/
or supporting material, please call the RRB Clearance Officer at (312)
751-3363. Comments regarding the information collection should be
addressed to Ronald J. Hodapp. Railroad Retirement Board, 844 N. Rush
Street, Chicago, Illinois 60611-2092. Written comments should be
received within 60 days of this notice.
Chuck Mierzwa,
Clearance Officer.
[FR Doc. 01-11285 Filed 5-3-01; 8:45 am]
BILLING CODE 7905-01-M