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2201 Provisions of the Act

2201.01 Section 2(d)

of the Act provides that:

"If the Board finds that at any time more than the correct amount of benefits has 

been paid to any individual under this Act or a payment has been made to an 

individual not entitled thereto (including payments made prior to July 1, 1940) 

recovery by adjustments in subsequent payments to which such individual is 

entitled under this Act or any other Act administered by the Board may, except as 

otherwise provided in this subsection, be made under regulations prescribed by 

the Board. If such individual dies before recovery is completed, recovery may be 

made by set-off or adjustments, under regulations prescribed by the Board, in 

subsequent payments due, under this Act or any other Act administered by the 

Board, to the estate, designee, next of kin, legal representative, or surviving 

spouse of such individual, with respect to the employment of such individual.

"Adjustments under this subsection may be made either by deductions from

subsequent payments or, with respect to payments which are to be made during 

a lifetime or lifetimes, by subtracting the total amount of benefits paid in excess of 

the proper amount from the actuarial value, as determined by the Board, of such 

payments to be made during a lifetime or lifetimes and recertifying such 

payments on the basis of the reduced actuarial value. In the latter case recovery 

shall be deemed to have been completed upon such recertification.

"There shall be no recovery in any case in which more than the correct amount of 

benefits has been paid to an individual or payment has been made to an 

individual not entitled thereto (including payments made prior to July 1, 1940) 

who, in the judgment of the Board, is without fault when, in the judgment of the 

Board, recovery would be contrary to the purpose of this Act or would be against 

equity or good conscience."

"No certifying or disbursing officer shall be held liable for any amount certified or 

paid by him in good faith to any person where the recovery of such amount is 

waived under the third paragraph of this subsection or has been begun but 

cannot be completed under the first paragraph of this subsection."

2201.02 Section 2(f)

of the Act provides that:

"If (i) benefits are paid to any employee 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 has been determined to be days of unemployment or 
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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. The proceeds of 

such special fund shall be credited to the account. Such benefits, to the extent 

that they are represented in such a special fund which has been collected by the 

Board, shall be disregarded for the purposes of subsection (c) of this section."

2201.03 Section 4(a-1)

of the Act provides, in part, that:

"There shall not be considered as a day of unemployment or as a day of 

sickness, with respect to any employee-- . . . (ii) any day in any period with 

respect to which the Board finds that he is receiving or will have received annuity 

payments or pensions under the Railroad Retirement Act of 1935 or the Railroad 

Retirement Act of 1937, or insurance benefits under title II of the Social Security 

Act, or unemployment, maternity, or sickness benefits under an unemployment, 

maternity, or sickness compensation law other than this Act, or any other social 

insurance payment under any law: Provided, That if an employee receives or is 

held entitled to receive any such payments, other than unemployment, maternity, 

or sickness payments, with respect to any period which include days of 

unemployment or sickness in a registration period which include days of 

unemployment or sickness in a registration period, after benefits under this Act 

for such registration period will have been paid, the amount by which such 

benefits under this Act will have been increased by including such days as days 

of unemployment or as days of sickness shall be recoverable by the Board: 

Provided further, That, if that part of any such payment or payments, other than 

unemployment, maternity, or sickness payments, which is apportionable to such 

days of unemployment or days of sickness is less in amount than the benefits 

under this Act which, but for this paragraph, would be payable and not 

recoverable with respect to such days of unemployment or days of sickness, the 

preceding provisions of this paragraph shall not apply but such benefits under 

this Act for such days of unemployment or days of sickness shall be diminished 

or recoverable in the amount of such part of such other payment or payments;"

2201.04 Section 12(o)

of the Act provides that:
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"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 suit, 

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."

2202 Provisions of the Federal Claims Collection Act of 1966

Section 3, Public Law 89-508, 80 Stat. 308, provides that: 

"(a) The head of an agency or his designee, pursuant to regulations prescribed 

by him and in conformity with such standards as may be promulgated 

jointly by the Attorney General and the Comptroller General, shall attempt 

collection of all claims of the United States for money or property arising 

out of the activities of, or referred to, his agency.

"(b) With respect to such claims of the United States that have not been 

referred to another agency, including the General Accounting Office, for 

further collection action and that do not exceed $100,000, exclusive of 

interest, the head of an agency or his designee, pursuant to regulations 

prescribed by him an in conformity with such standards as may be 

promulgated jointly by the Attorney General and the Comptroller General, 

may (1) compromise any such claim, or (2) cause collection action on any 

such claim to be terminated or suspended where it appears that no person 

liable on the claim has the present or prospective financial ability to pay 

any significant sum thereon or that the cost of collecting the claim is likely 

to exceed the amount of recovery. The Comptroller General or his 

designee shall have the foregoing authority with respect to claims referred 

to the General Accounting Office by another agency for further collection 

action. The head of an agency or his designee shall not exercise the 

foregoing authority with respect to a claim as to which there is an 

indication of fraud, the presentation of a false claim, or misrepresentation 

on the part of the debtor or any other party having an interest in the claim, 

or a claim based in whole or in part on conduct in violation of the antitrust 

laws; nor shall the head of an agency, other than the Comptroller General 

of the United States, have authority to compromise a claim that arises 

from an exception made by the General Accounting Office in the account 

of an accountable officer.
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"(c) A compromise effected pursuant to authority conferred by subsection (b) 

of this section shall be final and conclusive on the debtor and on all 

officials, agencies, and courts of the United States, except if procured by 

fraud, misrepresentation, the presentation of a false claim, or mutual 

mistake of fact. No accountable officer shall be liable for any amount paid 

or for the value of property lost, damaged, or destroyed, where the 

recovery of such amount or value may not be had because of a 

compromise with a person primarily responsible under subsection (b)."

2203 Kinds of Adjustments

2203.01 Underpayments and overpayments

Adjustment is made when less than the correct amount of benefits has been paid 

or benefits are determined to have been paid erroneously. (See AIM-21, 

"Reopening and Redetermination".)

2203.02 Adjustment under Section 4(a-1)(ii) of the Act

Adjustment is made when a claimant is receiving or has received other social 

insurance payments with respect to days for which benefits have been paid or 

are to be paid. (See AIM-17, "Determinations under Section 4(a-1)(ii).")

2203.03 Adjustments under Section 2(f) and 12(o) of the Act

Adjustment is made when a recovery under Section 2(f) or 12(o) is made. (See 

AIM-30, "Determinations under Sections 2(f) and 12(o).")

2203.04 Payments to beneficiaries of deceased claimants or fiduciaries of 

incompetents

When payment is made to a beneficiary or fiduciary, the transaction is treated as 

an adjustment if the amount of the payment was previously certified for payment 

to the claimant and the check was returned. (See AIM-28, "Death Cases.")

2204 Collection of Recoverable Amount

2204.01 General

When an amount has been determined to be recoverable from a debtor (i.e. 

claimant, railroad or third party), efforts to collect shall be started promptly. The 

first effort shall normally be a billing statement to the debtor, prepared by the 

office that made the determination or by the division of debt management, clearly 

explaining why the amount is recoverable. After this document has been 

released the follow-up efforts (dunning notices) shall be timely, forceful and 

persistent. If the amount recoverable is less than $25, no additional recovery 

efforts are to be made following the release of the final dunning notice. 
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The amount recoverable should be collected in full in one lump sum whenever 

possible. However, if the debtor is financially unable to pay the full amount in 

one lump sum, payment may be accepted in regular installments. An RRB 

representative making arrangements for installment payments should try to get 

an agreement which will result in liquidating the debt in not more than three 

years. Where this is manifestly impossible, arrangements covering a longer 

period of time will be acceptable. Installment payments of less than $50.00 per 

month should be accepted in only the most unusual circumstances.

2204.02 Amount recoverable from Railroad Retirement Act (RRA) annuitant

When an amount in excess of $25.00 (other than an amount reported in 

accordance with instructions in AIM-17) is recoverable from a debtor receiving an 

annuity under the RRA, the billing statement advising the debtor of the 

overpayment is to explain that recovery will be made from the annuity if cash 

repayment is not promptly made. No installment billing or partial withholding of 

an annuity will be offered to a debtor whose overpayment is less than the total 

monthly annuity. Installment billing will only be offered to debtors whose 

overpayments may be cleared within one year by applying 50 percent of their 

annuity. Cases where the debtor expresses an inability to pay the installment 

amount will be reviewed on an individual basis.

2204.03 Internal Revenue Service (IRS) and Administrative Offset

When the debtor is receiving federal payments such as those paid by the Social 

Security, Veteran's Administration or federal salary, or is entitled to a tax refund 

from the IRS, recovery may be effected by administrative offset of these 

payments. The criteria for referring cases to the IRS can be found in DPOM-I, 

Article 7, chapter 740.25.

2205 Compromise of Recoverable Amount

Under the Federal Claims Collection Act of 1966 the Board has authority to 

compromise claims for amounts not exceeding $100,000. The authority does not 

extend to any case in which there is an indication of fraud, the presentation of a 

false claim or misrepresentation on the part of the debtor or his representative. 

Factors to be considered in a compromise are set forth in part 340.14 of the 

RRB's regulations. Any offer or suggestion of compromise of a debt arising 

under the Railroad Unemployment Insurance Act is to be referred to the Director 

of Operations, Office of Programs.

2206 Reconsideration and Waiver of Recovery

Section 5(c)(1) of the Railroad Unemployment Insurance Act provides for 

reconsideration of adverse determinations and authorizes the Board to establish 

appeal procedures. Any debtor or survivor from whom we attempt collection of a 

debt has the right to request reconsideration and waiver of recovery. Survivors 
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are bound by the time limits that applied to the claimant, so the claimant's failure 

to protest may extinguish the survivor's rights. Business debtors do not have the

same rights as claimants; under certain circumstances the business may request 

review, resulting in appointment of a hearings examiner who reports to the threemember board, which issues a final agency decision. The business debtor may 

then seek adjudication in a federal court. A party failing to file a timely request 

for reconsideration forfeits rights to review, thereby making the decision of the 

adjudicating office final.

Section 2(d) of the Railroad Unemployment Insurance Act provides for waiver of 

recovery in any case in which, in the judgment of the Board, the individual who 

received the amount recoverable is without fault and recovery would be against 

equity and good conscience. When recovery has been waived, the adjustment 

shall be considered as completed. 

2206.01 Reconsideration and Waiver of Recovery for Deceased Claimants

Section 2(d) of the Railroad Unemployment Insurance Act also provides authority 

for the Board to recover an overpayment under that Act by offset against 

annuities payable under the RRA not only to the debtor but also to the estate, 

designee, next of kin, legal representative or surviving spouse. However, the 

survivor(s) of a deceased claimant has the same rights to reconsideration except 

when:

1. the employee debtor had the opportunity to protest but did not do so; or

2. the employee debtor protested but failed to exhaust the administrative 

remedies prior to his/her death.

2207 Bankruptcy

When information is received that a debtor is involved in a bankruptcy 

proceeding, the case is to be referred to the RUIA Analysis and Systems section 

to determine whether the RRB shall participate in the bankruptcy proceeding or 

whether the case shall be written off. The section shall give the adjudicating 

office appropriate instructions.

2208 Determinations as to Uncollectibility

If efforts to collect a recoverable amount are unsuccessful, the division of debt 

management shall determine that the amount is uncollectible. An account is 

considered uncollectible in any of these circumstances:

1. The debtor is unable to make any substantial payment and there is 

positive financial evidence to this effect. Such cases are to be followed up 

periodically.
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2. The debtor cannot be located and/or the statute of limitations has run.

3. It is likely that the cost of further collection action will exceed the amount 

recoverable.

4. If the debtor is deceased and has at least 120 cumulative service months 

and there is positive evidence showing the decedent left no estate.

2209 Suspension or Termination of Collection Activity

2209.01 General

The Board has authority, under the Federal Claims Collection Act of 1966, to 

suspend or terminate collection activity under certain circumstances when 

collection efforts have been unsuccessful. Such cases are not referred to the 

IRS, Department of Justice or a private collection agency for further action. The 

Board's authority to suspend or terminate does not extend to fraud cases.

2209.02 Suspension of collection activity

Collection action may be suspended temporarily if the amount recoverable 

cannot be collected immediately and there is reason to believe that future 

collection action may be sufficiently productive to justify periodic review and 

recovery action, considering the size of the debt and the amount that may be 

collected.

2209.03 Termination of collection activity (write off)

The collection activity shall be terminated and the debt written off in any of these 

circumstances:

a. The debt is less than $25.00 and collection efforts have failed or are no 

longer justified.

b. The debtor is discharged in bankruptcy. (A debt based on a false claim is 

not dischargeable in bankruptcy).

c. It is determined that the RRB's claim is legally without merit.

d. If the debtor is deceased and has less than 120 cumulative service 

months and all collection efforts have failed.

e. If the debtor has less than 120 cumulative service months, is at least 60 

years old, has not worked in the railroad industry within the past 10 years, 

and all collection efforts have failed.

The file must contain a brief statement as to the basis for termination of collection 

activity.
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2210 Forms and Form Letters Prescribed

Form G-145, Billing Statement, U. S. Railroad Retirement Board

ID-22

UI-68

Appendices

Statute of Limitations

Public Law 89-505, 80 Stat. 304 (28 U.S.C. 2415(a)) is the statute of limitations 

applicable to erroneous payment cases and to recovery under section 12(o). 

The statute bars legal action to collect unless the complaint is filed in court within 

6 years after the right of action accrues. In erroneous payment cases, the right 

of action generally accrues when a benefit payment is made. In section 12(o) 

cases, the right generally accrues when damages become payable giving the 

RRB a right to reimbursement. Legally required administrative proceedings 

(generally reconsideration and appeals) can extend the 6-year limit to 1 year 

after the date of a final decision.

In section 2(f) cases the statute of limitations depends on whether the RRB 

chooses to treat the section 2(f) claim as a tax claim. If so, under 26 U.S.C. 

6501(a) the RRB must "assess" or bill the debtor within 3 years of receiving 

information necessary to compute and establish the debt; under 26 U.S.C. 

6501(c), the RRB has 10 years from the date of billing to levy or file a claim in 

court to enforce collection of an amount for which the debtor was timely billed.

If the section 2(f) debt is not treated as a tax claim, the 6-year statute of 

limitations in 28 U.S.C. 2415(a) applies and runs from the date the RRB receives 

information necessary to establish the account receivable; the 3-year billing 

period requirement does not apply under 28 U.S.C. 2415(a).

(References: L-80-45, L-89-52, L-89-147)