64190 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Proposed Rules

above example would be reported on

the Employer’s Annual Report of

Compensation required under 20 CFR

209.6 along with other wages paid to

other employees that year. Pay for time

lost payments would be

indistinguishable from regular wages.

The Labor Member believes that his

proposal would address the concern of

the majority by fully funding the

prospective pay for time lost credits

while continuing to allow railroad

employees and railroad employers to

use pay for time lost allocations in a

positive way to resolve disputes.

With the modification he suggested,

the Labor Member feels there is no

further justification in the majority’s

position on this regulation. The majority

has indicated that it is better to scrap a

‘‘bad’’ regulation rather than ‘‘tinker’’

with it. The Labor Member believes that

making employees who are injured in

service to the rail industry whole is not

tinkering. It is a moral obligation.

The majority also believes that the

Labor Member’s proposal amounts to

allowing employees to purchase

retirement credits. This is true. It would

be allowed, however, for only those

employees who have demonstrated

through long years of service a career

commitment to the rail industry, and

then, only when they have been

severely injured or otherwise

incapacitated while performing rail

service. Finally, it would be further

limited to only those in the foregoing

category who receive compensation

from a settlement based on a conviction

of both the railroad and the employee

that the railroad would probably be

found negligent in causing the

employee’s injury.

The majority points out that the

additional tax paid for several years of

pay for time lost will not finance the

additional benefits which would be paid

under the Labor Member’s proposal.

The Labor Member believes that this is

true but irrelevant. Completely aside

from the obligation to make injured

employees whole, whatever the cost, is

the well established, clearly understood,

and universally accepted feature of

social insurance programs that the

contributions paid by a disabled

participant will rarely ever finance the

actual benefits paid to such individual.

Covering the cost of such eventualities

from contributions of the remaining

participants, including the negligent

railroads, is the purpose of an insurance

program. Disability benefits would

virtually never be paid by any program

under the condition laid down in this

regulation by the Board majority.

The majority notes that ten times the

employee’s daily rate of pay is too low

an amount for a month of compensation.

The Labor Member points out that an

employee who is not injured need

perform only one hour of service to get

a month of railroad retirement credit.

However, whenever low compensation

months are used to obtain additional

service, the compensation average on

which the annuity is based is depressed,

producing a lower benefit. In any event,

the ten times daily pay rate rule has

been set by regulation by a previous

Board after full and careful review of the

issue. The issue ought not be reopened

now.

Finally, the Labor Member notes that

the majority references ‘‘employees who

negotiate’’ pay for time lost. This

terminology clearly acknowledges that,

under current procedures, prospective

credit can be given only when the

railroads have agreed to do so. Thus, the

railroads already control the use of this

procedure through their right to simply

refuse to go along with prospective

crediting. Therefore, there is no need for

the regulation change herein proposed

by the Board majority.

The Office of Management and Budget

has determined that this is a significant

regulatory action under Executive Order

12866. There are no information

collections associated with this rule.

List of Subjects in 20 CFR Part 211

Pensions, Railroad employees,

Railroad retirement.

For the reasons set out in the

preamble, chapter II of title 20 of the

Code of Federal Regulations is amended

as follows:

PART 211—[AMENDED]

1. The authority citation for part 211

continues to read as follows:

Authority: 45 U.S.C. 231(f).

2. Section 211.3 is amended by

adding paragraph (c):

§ 211.3 Compensation paid for time lost.

* * * * *

(c)(1) Except as provided in paragraph

(c)(2) of this section, pay for time lost

may not be credited to any period after

the date of the judgment or settlement

agreement providing pay for time lost. If

the payment is not the result of a

judgment or settlement, pay for time lost

may not, except as provided in

paragraph (c)(2) of this section, be

credited to any period after the date of

payment.

(2) Pay for time lost may be creditable

as deemed service under section 3(i)(4)

of the Railroad Retirement Act in the

year in which either the judgment or

settlement occurred or in the case of pay

for time lost not attributable to a

judgment or settlement, in the year in

which the payment occurred.

Dated: November 21, 1997.

By Authority of the Board.

For the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 97–31725 Filed 12–3–97; 8:45 am]

BILLING CODE 7905–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–105160–97]

RIN 1545–AV17

Qualified Nonrecourse Financing

Under Section 465(b)(6); Hearing

Cancellation

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Cancellation of notice of public

hearing on proposed regulations.

SUMMARY: This document provides

notice of cancellation of a public

hearing on proposed regulations under

section 465(b)(6) regarding qualified

nonrecourse financing.

DATES: The public hearing originally

scheduled for Wednesday, December 10,

1997, beginning at 10:00 a.m. is

cancelled.

FOR FURTHER INFORMATION CONTACT:

Mike Slaughter of the Regulations Unit,

Assistant Chief Counsel (Corporate),

(202) 622–7190, (not a toll-free number).

SUPPLEMENTARY INFORMATION: The

subject of the public hearing is proposed

regulations under section 465 of the

Internal Revenue Code. A notice of

proposed rulemaking and notice of

public hearing appearing in the Federal

Register on Wednesday, August 13,

1997 (62 FR 43295), announced that the

public hearing on proposed regulations

under section 465 of the Internal

Revenue Code would be held on

Wednesday, December 10, 1997,

beginning at 10:00 a.m., in Room 2615,

Internal Revenue Building, 1111

Constitution Avenue, NW., Washington,

D.C.

The public hearing scheduled for

Wednesday, December 10, 1997 is

cancelled.

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 97–31806 Filed 12–3–97; 8:45 am]

BILLING CODE 4830–01–P