Program 

Letter 

United States 

Railroad Retirement Board 

Office of Programs Chicago, IL 60611-2092 

Quality Reporting Service Center (312) 751-4992

E-MAIL: qrsc@rrb.gov

CONTACT: Edward Roberts No. 2004-06 

PHONE: (312) 751-7139 x2159 

Date: August 31, 2004 

Revised: March 2, 2005 

(Online version only)

SUBJECT: Debt Collection Information under the Railroad Unemployment 

Insurance Act 

This program letter supplements program letter 2003-05 from May 2003 and provides 

additional information about what railroad employers need to know regarding payment 

of debts under sections 2(f) and 12(o) of the Railroad Unemployment Insurance Act 

(RUIA). Copies of this program letter should be provided to all claims department, 

labor relations and payroll department personnel involved in the processing and 

payment of claims for pay for time lost, guarantee pay and personal injury 

settlements. Printable document versions of these program letters are available at 

RRB.gov. 

General 

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 

RUIA. 

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. 

•

• 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. 

1 
Here is a table listing important milestones in the reimbursement and debt 

collection process: 

01/01 01/31 03/02 04/01 05/01 05/31 06/30 07/30 

Date 

Settled 

or Date 

of 

Guaranteed 

Pay 

Collection 

Due Date / 

Debt 

Delinquent / 

First 

Dunning 

Notice

Released / 

Interest

Assessed 

30 Days

Delinquent / 

Resolution

Period / Final

Dunning 

Notice

Released / 

Interest

Assessed 

60 Days

Delinquent 

/ 

Resolution

Period / 

Interest

and 

Retroactive 

Penalties 

Assessed /

First Date 

for Referral 

to Treasury

90 Days

Delinquent / 

Resolution

Period / 

Interest and 

Penalties 

Assessed 

120 Days 

Delinquent / 

Resolution

Period / 

Interest and 

Penalties 

Assessed 

150 Days 

Delinquent 

/ 

Resolution

Period / 

Interest

and 

Penalties 

Assessed 

180 Days 

Delinquent / 

Referral to 

Treasury 

required / 

Administrative 

Charges, 

Interest and 

Penalties 

Assessed 

Interest Charges

The RRB charges interest on delinquent debts. The regulations of the RRB (20 CFR 

340.16 (b)) require that railroad employers and other parties paying any sum or 

damages for personal injury reimburse the RRB for amounts due under section 12(o) of 

the RUIA within 30 days of the date of settlement. The RRB's notice of the lien 

amount is the initial notice of the amount due upon settlement. Billing statements are 

issued when the RRB is notified of a settlement. 

 

Interest begins to accrue on the outstanding principal amount of a debt 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. Interest is 

calculated according to the following formula: 

Interest Rate x Interest Days x Principal 

divided by

Days in the Year (365) 

Penalty Charges 

Debts that remain unpaid by the collection due date (30 days after the date of the billing 

statement) are considered delinquent. Debts which are delinquent for 90 days incur a 

penalty calculated at a rate of 6 percent per year assessed on the principal balance of 

the debt. Penalty charges continue to be assessed every 30 days until the debt is paid 

in full. Penalties are calculated using the following formula: 

Penalty Rate x Penalty Days x Principal 

divided by

Days in Year (365) 

2 
3 

Referral of Delinquent Debts to Department of the Treasury

The RRB is required by the Debt Collection Improvement Act of 1996 to refer debts, 

delinquent for 180 days, to the Department of the Treasury for offset of any Federal 

government payments that may be due to the debtor by any Federal agency or program 

and for cross-servicing of the debt. A debt becomes eligible for referral to Treasury 

when it is 60 days delinquent. Cross-servicing is an enforcement program in which 

debts are placed in collection programs such as referral to private collection agencies, 

referral to the Department of Justice, wage garnishment, etc. to enforce recovery of the 

debt. Charges may be added to debts referred for offset or cross-servicing by Treasury, 

private collection agencies, DOJ, etc. 

Once a delinquent debt has been referred to Treasury, it is no longer in the RRB’s 

jurisdiction. Thereafter, all inquiries regarding the debt or payments should be made 

directly to the U.S. Treasury. Their toll free number is (888) 826-3127. Any fees 

assessed after referral to Treasury must be paid. Treasury will contact the RRB if 

necessary to answer any debtor inquiries. 

Questions and Answers

What are Employer Reporting Requirements? 

Section 2(f) - Under the RRB's regulations (20 CFR 340.16), an employer paying 

remuneration for time lost, including guarantee pay, must remit the amount of 

reimbursement due under section 2(f) within 30 days of the date of the payment of 

the remuneration. The following information is always needed in order to determine the 

amounts due under section 2(f): 

• the employee’s name and social security number, 

• the amount of the payment, 

• the time period covered by a guarantee payment, 

• the exact days paid in a pay for time lost claim. 

Section 12(o) - When an employer makes a settlement or must satisfy a final judgment 

based on an injury for which the employee received benefits, the RRB's regulations (20 

CFR 341.6) provide that 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 employee’s name and social security number, 

• 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. 
4 

When should employers contact the RRB? 

Railroad employers should contact the RRB's Sickness and Unemployment Benefits 

Section (SUBS) prior to payment of either pay for time lost in the form of wages or 

guarantee pay, or the payment of a personal injury settlement. SUBS will provide 

information about the amount of benefits to be deducted from the award for 

reimbursement under section 2(f) or settlement under section 12(o). 

In order to ensure that your remittances are credited properly and timely, you must 

notify the RRB’s Sickness and Unemployment Benefits Section before you send 

any payment. The employee’s RUIA record must be adjusted before an account 

receivable and billing document (Form G-145) can be created. A remittance cannot be 

credited unless the RUIA record, maintained by SUBS, has been adjusted. 

How should Employers request Information about amounts due under section 2(f) 

and 12(o)? 

Whenever possible, employer requests should be made by facsimile using special 

forms (Forms ID-3S and ID-3U) developed by the RRB. Under normal circumstances, 

you will receive a reply to your request on the first business day following the RRB's 

receipt of your fax transmission. You may make fax requests Monday through Friday 

(except Federal holidays), 8:00 AM to 4:30 PM, Central Time. The fax number is (312) 

751-7185. 

Employers’ use of Forms ID-3S and ID-3U helps to ensure that all the information we 

need to respond to your request is provided. The forms along with detailed instructions 

for their completion may be obtained by contacting our Sickness and Unemployment 

Benefits Section. The telephone number is (312) 751-4825. Printable document 

versions of the forms are available at www.rrb.gov. 

The completed fax form reply from the RRB is your confirmation of the amount due 

under section 2(f), or the amount of the RRB's lien under section 12(o). A confirmation 

letter will not be sent. 

What are the time limits for employer reimbursements? 

Section 2(f) - Payment of an amount due under section 2(f) is due at the RRB within 30 

days of the date of the payment of the remuneration for time lost. 

Section 12(o) - Payment of the amount of the RRB's lien is due at the RRB within 30 

days after the date of the settlement or final judgment.

How should remittances be made? 
5 

Remittances may be made electronically through the RRBLINK system. RRBLINK is an 

electronic payment system designed specifically for railroad employers and is the 

recommended method. 

 

RRBLINK payments can be initiated by a personal computer with a communications 

modem, a touch-tone telephone or a voice telephone. The system ensures that 

payments are credited properly and timely, and helps employers avoid interest and 

penalty charges. Additional information about RRBLINK and enrollment instructions can 

be obtained by contacting the agency's RRBLINK representative at (312) 751-4668 or 

U.S. Bank’s system administrator at (888) 273-2265. 

If the RRBLINK system is not used, remittances are to be mailed to the RRB's lockbox 

which is operated by U.S. Bank. The lockbox address is: 

U.S. Railroad Retirement Board 

Debt Recovery Division - RUIA 

P.O. Box 953492 

St. Louis, Missouri 63195-3492 

What information should be included with remittances? 

Aside from failing to inform the RRB before making remittances, failing to include 

necessary information with payments is the biggest source of collection problems. 

Include the following information on the check or on the remittance document: 

• Your payor code, 

• The employee(s) Social Security number(s), 

• The billing document ID number, 

• Whether the remittance is for reimbursement of unemployment (UI) or sickness 

(SI) benefits, and 

• The date of the injury or the period of time for which reimbursement is being 

made. 

Your payor code and the billing document ID are 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 has 

been settled, i.e. your Form ID-3S or Form ID-3U request was not for informational 

purposes only. 

Payor codes and billing document ID numbers are also shown on the billing statements 

(Form G-145) issued by the RRB 

If you do not know your payor 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. 
6 

What should employers do if they receive an erroneous dunning notice? 

Although we make every effort to credit remittances to the correct account, if a 

remittance cannot be properly matched with the accounts receivable, a second billing 

notice may be issued on the debt. If you receive notice of a debt after submitting a 

reimbursement, contact the Debt Recovery Division by phone (312) 751-4848, FAX 

(312) 751-3364, or e-mail drd@rrb.gov to ensure that the remittance has been received 

and properly credited. Please be ready to provide the date of the payment and the 

amount of the remittance. 

What should employers do about an incorrect billing statement? 

Occasionally, the RRB receives premature information that a settlement has been made 

and we issue a billing statement on the basis of that information. If you receive a billing 

statement on a case that has not yet been settled, contact our Sickness and 

Unemployment Benefits Section immediately by telephone or fax. The telephone 

number is (312) 751-4825. The billing document will be canceled and your account will 

be adjusted accordingly. 

What should employers do if they make an incorrect payment and require a 

refund? 

Under certain circumstances, railroads are entitled to refunds of amounts remitted to the 

RRB. Refunds of amounts that were improperly paid or are no longer due the RRB can 

be obtained by writing to U.S. Railroad Retirement Board, Bureau of Fiscal Operations - 

Debt Recovery Division, 844 N. Rush Street, Chicago, Illinois 60611-2092. You may fax 

your requests to (312) 751-3364 or e-mail your requests to drd@rrb.gov. Provide the 

name and social security number of the individual for whom an incorrect remittance was 

made, the amount to be refunded and the reason for the refund request. 

Railroad employers cannot take credit for overpaid amounts on remittances that are due 

on other employee accounts. Refunds of amounts incorrectly paid can only be obtained 

by writing to the Bureau of Fiscal Operations - Debt Recovery Division. 

Who should employers contact with questions? 

Questions and inquiries concerning debts under sections 2(f) and 12(o) of the Railroad 

Unemployment Insurance Act should be directed as follows: 

Questions concerning Forms ID-3S and ID-3U, and requests for information about 

amounts due under section 2(f) or section 12(o): 
7 

Sickness and Unemployment Benefits Section 

Email: Michael.Pawlak@rrb.gov 

(312) 751-4825 

Fax: (312) 751-7185 

Inquiries about billing statements, interest and penalty charges: 

Bureau of Fiscal Operations - Debt Recovery Division 

Email: drd@rrb.gov

(312) 751-4848 

Fax: (312) 751-3364