
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC1206]

 
                           TITLE 45--RAILROADS
 
                  CHAPTER 21--ALASKA RAILROAD TRANSFER
 
Sec. 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.

(Pub. L. 97-468, title VI, Sec. 607, Jan. 14, 1983, 96 Stat. 2571; Pub. 
L. 100-238, title I, Sec. 136(a), Jan. 8, 1988, 101 Stat. 1766; Pub. L. 
103-226, Sec. 10, Mar. 30, 1994, 108 Stat. 122.)

                       References in Text

    The Federal Workforce Restructuring Act of 1994, referred to in 
subsec. (a)(4)(A), is Pub. L. 103-226, Mar. 30, 1994, 108 Stat. 111. 
Section 3 of the Act is set out as a note under section 5597 of Title 5, 
Government Organization and Employees. For complete classification of 
this Act to the Code, see Short Title of 1994 Amendment note set out 
under section 2101 of Title 5 and Tables.


                               Amendments

    1994--Subsec. (a)(4). Pub. L. 103-226, Sec. 10(a), added par. (4).
    Subsec. (e). Pub. L. 103-226, Sec. 10(b), added subsec. (e) and 
struck out former subsec. (e) which related to continued coverage for 
certain employees and annuitants in Federal health benefits and life 
insurance plans.
    1988--Subsec. (e). Pub. L. 100-238 added subsec. (e).


                        Administrative Provision

    Section 136(b) of Pub. L. 100-238 provided that: ``Within 180 days 
after the date of enactment of this section [Jan. 8, 1988], the Director 
of the Office of Personnel Management shall notify any person described 
under the provisions of section 607(e)(2)(A) of such Act [45 U.S.C. 
1206(e)(2)(A)], for the purpose of the election of a life insurance 
policy or the enrollment in a health benefits plan pursuant to the 
provisions of section 607(e)(1) of the Alaska Railroad Transfer Act of 
1982 [45 U.S.C. 1206(e)(1)] (as amended by subsection (a) of this 
section).''

                  Section Referred to in Other Sections

    This section is referred to in section 1203 of this title.
