45 U.S.C. § 1206 : US Code - Section 1206: Employees of Alaska Railroad

Search 45 U.S.C. § 1206 : US Code - Section 1206: Employees of Alaska Railroad

(a) Coverage under Federal civil service retirement laws; election,
funding, nature of benefits, etc., for employees transferring to
State-owned railroad; voluntary separation incentives
(1) Any employees who elect to transfer to the State-owned
railroad and who on the day before the date of transfer are subject
to the civil service retirement law (subchapter III of chapter 83
of title 5) shall, so long as continually employed by the State-
owned railroad without a break in service, continue to be subject
to such law, except that the State-owned railroad shall have the
option of providing benefits in accordance with the provisions of
paragraph (2) of this subsection. Employment by the State-owned
railroad without a break in continuity of service shall be
considered to be employment by the United States Government for
purposes of subchapter III of chapter 83 of title 5. The State-
owned railroad shall be the employing agency for purposes of
section 8334(a) of title 5 and shall contribute to the Civil
Service Retirement and Disability Fund a sum as provided by such
section, except that such sum shall be determined by applying to
the total basic pay (as defined in section 8331(3) of title 5) paid
to the employees of the State-owned railroad who are covered by the
civil service retirement law, the per centum rate determined
annually by the Director of the Office of Personnel Management to
be the excess of the total normal cost per centum rate of the civil
service retirement system over the employee deduction rate
specified in section 8334(a) of title 5. The State-owned railroad
shall pay into the Federal Civil Service Retirement and Disability
Fund that portion of the cost of administration of such Fund which
is demonstrated by the Director of the Office of Personnel
Management to be attributable to its employees.
(2) At any time during the two-year period commencing on the date
of transfer, the State-owned railroad shall have the option of
providing to transferred employees retirement benefits, reflecting
prior Federal service, in or substantially equivalent to benefits
under the retirement program maintained by the State for State
employees. If the State decides to provide benefits under this
paragraph, the State shall provide such benefits to all transferred
employees, except those employees who will meet the age and service
requirements for retirement under section 8336(a), (b), (c) or (f)
of title 5 within five years after the date of transfer and who
elect to remain participants in the Federal retirement program.
(3) If the State provides benefits under paragraph (2) of this
subsection -
(A) the provisions of paragraph (1) of this subsection
regarding payments into the Civil Service Retirement and
Disability Fund for those employees who are transferred to the
State program shall have no further force and effect (other than
for employees who will meet the age and service requirements for
retirement under section 8336(a), (b), (c) or (f) of title 5
within five years after the date of transfer and who elect to
remain participants in the Federal retirement program); and
(B) all of the accrued employee and employer contributions and
accrued interest on such contributions made by and on behalf of
the transferred employees during their prior Federal service
(other than amounts for employees who will meet the age and
service requirements for retirement under section 8336(a), (b),
(c) or (f) of title 5 within five years after the date of
transfer and who elect to remain participants in the Federal
retirement program) shall be withdrawn from the Federal Civil
Service Retirement and Disability Fund and shall be paid into the
retirement fund utilized by the State-owned railroad for the
transferred employees, in accordance with the provisions of
paragraph (2) of this subsection. Upon such payment, credit for
prior Federal service under the Federal civil service retirement
system shall be forever barred, notwithstanding the provisions of
section 8334 of title 5.
(4)(A) The State-owned railroad shall be included in the
definition of "agency" for purposes of section 3(a), (b), (c), and
(e) of the Federal Workforce Restructuring Act of 1994 and may
elect to participate in the voluntary separation incentive program
established under such Act. Any employee of the State-owned
railroad who meets the qualifications as described under the first
sentence of paragraph (1) shall be deemed an employee under such
Act.
(B) An employee who has received a voluntary separation incentive
payment under this paragraph and accepts employment with the State-
owned railroad within 5 years after the date of separation on
which payment of the incentive is based shall be required to repay
the entire amount of the incentive payment unless the head of the
State-owned railroad determines that the individual involved
possesses unique abilities and is the only qualified applicant
available for the position.
(b) Coverage for employees not transferring to State-owned railroad
Employees of the Alaska Railroad who do not transfer to the State-
owned railroad shall be entitled to all of the rights and benefits
available to them under Federal law for discontinued employees.
(c) Rights and benefits of transferred employees whose employment
with State-owned railroad is terminated
Transferred employees whose employment with the State-owned
railroad is terminated during the two-year period commencing on the
date of transfer shall be entitled to all of the rights and
benefits of discontinued employees that such employees would have
had under Federal law if their termination had occurred immediately
before the date of the transfer, except that financial compensation
paid to officers of the Alaska Railroad shall be limited to that
compensation provided pursuant to section 1203(d)(3)(E) of this
title. Such employees shall also be entitled to seniority and other
benefits accrued under Federal law while they were employed by the
State-owned railroad on the same basis as if such employment had
been Federal service.
(d) Lump-sum payment for unused annual leave for employees
transferring to State-owned railroad
Any employee who transfers to the State-owned railroad under this
chapter shall not be entitled to lump-sum payment for unused annual
leave under section 5551 of title 5, but shall be credited by the
State with the unused annual leave balance at the time of transfer.
(e) Continued coverage for certain employees and annuitants in
Federal health benefits plans and life insurance plans
(1) Any person described under the provisions of paragraph (2)
may elect life insurance coverage under chapter 87 of title 5 and
enroll in a health benefits plan under chapter 89 of title 5 in
accordance with the provisions of this subsection.
(2) The provisions of paragraph (1) shall apply to any person who
-
(A) on March 30, 1994, is an employee of the State-owned
railroad;
(B) has 20 years or more of service (in the civil service as a
Federal employee or as an employee of the State-owned railroad,
combined) on the date of retirement from the State-owned
railroad; and
(C)(i) was covered under a life insurance policy pursuant to
chapter 87 of title 5 on January 4, 1985, for the purpose of
electing life insurance coverage under the provisions of
paragraph (1); or
(ii) was enrolled in a health benefits plan pursuant to chapter
89 of title 5 on January 4, 1985, for the purpose of enrolling in
a health benefits plan under the provisions of paragraph (1).
(3) For purposes of this section, any person described under the
provisions of paragraph (2) shall be deemed to have been covered
under a life insurance policy under chapter 87 of title 5 and to
have been enrolled in a health benefits plan under chapter 89 of
title 5 during the period beginning on January 5, 1985, through the
date of retirement of any such person.
(4) The provisions of paragraph (1) shall not apply to any person
described under paragraph (2) until the date such person retires
from the State-owned railroad.