Rail Employer Reporting Instructions

Part VI - Reports Related to Service and Compensation 

Chapter 8: Benefit Recoveries Under Sections 2(f) and 12(o) of the Railroad

 Unemployment Insurance Act

1

Overview

This chapter begins with general information about reimbursement requirements and processing 

which apply to both reimbursements under Sections 2(f) and 12(o). Next is information specific to 

Section 2(f) followed by information specific to Section 12(o).

Reimbursement for Benefits Paid by RRB

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 Railroad Unemployment 

Insurance Act (RUIA).

Information Required With a Remittance

In order to insure that remittances are properly credited, be sure to include the following 

information on the check or on the remittance document.

Your Payer Code

Your payer code will be 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 had been settled. Payer codes 

are also shown on billing statements issued by 

the RRB.

If you do not know your payer 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.

Billing Document ID number

Your billing document ID number will be 

shown on the RRB's response to your Form ID3S or Form ID-3U if you indicated on the form 

that the employee's claim had been settled. 

Billing document ID numbers are also shown 

on billing statements issued by the RRB.

Unemployment or Sickness Indicate if the remittance is reimbursement of 

unemployment (UI) or sickness (SI) benefits

Date If remittance is based on a settlement, include 

the date of the settlement.
Rail Employer Reporting Instructions

Part VI - Reports Related to Service and Compensation 

Chapter 8: Benefit Recoveries Under Sections 2(f) and 12(o) of the Railroad

 Unemployment Insurance Act

2

What to Do if You Get a Bill that You Already Paid

Although every effort is made to credit remittances to the correct account, if a remittance cannot 

be properly matched with the account receivable, a second billing notice may be issued on the 

debt. If you receive notice of a debt after submitting a reimbursement, please show the date and 

the amount of your remittance on the second notice and return a copy of the notice to the RRB.

Electronic Remittances

Remittances may be made electronically through www.RRB.Gov. 

Type of Payment Requiring Reimbursement Under 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. The term "remuneration" includes the following types of employer 

payments:

• Dismissal allowances paid pursuant to labor-protective conditions imposed by the Surface 

Transportation Board (e.g. New York Dock or Oregon Conditions), or under any related 

implementing agreements;

• Coordination allowances under the Washington Job Protection Agreement of 1936;

• Compensation payments under Article IV of the job stabilization agreement of February 7, 

1965, or under revisions to that agreement; and any similar employer payments under any 

merger agreement or job protection arrangement that guarantees payment of compensation 

during periods when an employee has been deprived of employment.

The only exception to the types of payments listed above are payments made under a nongovernmental plan for unemployment insurance that the RRB has approved under section 1(j) of 

the RUIA. Benefits paid under a non-governmental plan do not constitute "remuneration".

RRB Notices Under Section 2(f)

The RRB routinely mails a Form ID-30 notice to an employer when information is received that 

an employee who is claiming unemployment benefits either 1) may be eligible to receive a 

coordination or dismissal allowance or may be covered under the National Job Stabilization 

Agreement or a similar plan providing for a minimum amount of work or compensation, or 2) is 

seeking or may seek pay for time lost. Form ID-30 is notice of the RRB's right to reimbursement 

of benefits paid to the employee from any salary, wages, pay for time lost, or other remuneration 

that may become payable for days for which benefits are paid. Some railroad employers have made 
Rail Employer Reporting Instructions

Part VI - Reports Related to Service and Compensation 

Chapter 8: Benefit Recoveries Under Sections 2(f) and 12(o) of the Railroad

 Unemployment Insurance Act

3

special arrangements to check with the RRB in all cases before payment of guaranteed wages or 

pay for time lost. Such arrangements eliminate the need for the Form ID-30 notices.

Amount of Reimbursement Under Section 2(f)

In general, the amount of reimbursement due under section 2(f) from the award of pay for time 

lost or other remuneration is the amount of benefits paid for days in the period for which the 

payment is to be made, or the amount of the payment for the period, whichever is less.

Prior to payment of pay for time lost, back pay, or guarantee pay, the employer should contact: 

Sickness and Unemployment Benefits Division

Railroad Retirement Board 

844 North Rush Street 

Chicago, Illinois 60611-1275

Phone: (312) 751-4820 

Email: SUBS@rrb.gov

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

reimbursement of benefits.

Interest and Penalty Charges Under Section 2(f)

Accounts receivable under Section 2(f) are subject to interest in the same manner as unpaid 

employer contributions under section 8(g) of the RUIA. Section 8(g) provides for the assessment 

of interest at the rate of 1 percent per month, or fraction thereof, from the due date until paid. The 

annual interest rate applied to debts incurred under section 2(f) is 12 percent.

Statutory Language of Section 2(f)

"If (I) benefits are paid to any individual with respect to unemployment or sickness in any 

registration period, and it is later determined that remuneration is payable to such employee with 

respect to any period which includes days in such registration period which had been determined 

to be days of unemployment or sickness, and (ii) the person or company from which such 

remuneration is payable has, before payment thereof, notice of the payment of benefits upon the 

basis of days of unemployment or sickness included in such period, the remuneration so payable 

shall not be reduced by reason of such benefits but the remuneration so payable, to the extent to 

which benefits were paid upon the basis of days which had been determined to be days of 

unemployment or sickness and which are included in the period for which such remuneration is 

payable, shall be held to be a special fund in trust for the Board. The amount of such special fund 

shall be paid to the Board and in the collection thereof the Board shall have the same authority, 

and the same penalties shall apply, as are provided in section 8 of this Act with respect to 

contributions".
Rail Employer Reporting Instructions

Part VI - Reports Related to Service and Compensation 

Chapter 8: Benefit Recoveries Under Sections 2(f) and 12(o) of the Railroad

 Unemployment Insurance Act

4

Type of Payment Requiring Reimbursement Under 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 by his or her employer.

RRB Notices Under Section 12(o)

A Form ID-30B, notice of lien, is mailed to an employer when an applicant for sickness benefits 

indicates that he or she has been injured on duty and/or has filed or expects to file a claim against 

the employer for personal injury. Form ID-30B is notice of the RRB's right to reimbursement of 

sickness benefits from any sum or damages payable on account of liability for the employee's 

injury or illness.

Amount of Reimbursement Under Section 12(o)

Under the RRB's regulations (20 CFR 341.5), the amount of reimbursement due the RRB under 

section 12(o) is the amount of the sickness benefits paid to the employee for the infirmity for which 

he or she is paid any sum or damages, or the net amount of the settlement, whichever is less. The 

net settlement is considered to be the amount of the damages paid with respect to the employee's 

injury or infirmity, minus the amounts of the medical, hospital and legal expenses incurred by the 

employee in connection with the injury. Medical and hospital expenses are deductible in 

determining the amount of the net settlement even if they are covered by the employee's insurance.

Advances paid to an employee on a personal injury settlement are considered to be paid on account 

of liability and subject to reimbursement under section 12(o). This is true even if no settlement or 

judgment is entered, or the employee does not prevail in a court action for damages against the 

employer.

Employers Must Notify RRB of Settlement Based on Injury

Under the RRB's regulations (20 CFR 341.6), when an employer makes a settlement, or must 

satisfy a final judgment, based on an injury for which the employee received benefits, 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 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.

Notice of the settlement may be made by facsimile using Form ID-3S.
Rail Employer Reporting Instructions

Part VI - Reports Related to Service and Compensation 

Chapter 8: Benefit Recoveries Under Sections 2(f) and 12(o) of the Railroad

 Unemployment Insurance Act

5

Interest and Penalty Charges Under Section 12(o)

The RRB charges interest and assesses penalties on delinquent debts. Interest begins to accrue on 

amounts due under Section 12(o) 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.

Statutory Language of Section 12(o)

"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 suits, compromise, settlement, judgment, or otherwise on account of any liability (other 

than a liability under a 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".