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B-114817 1 (1979-12-18)

handle is hein.gao/gaobadhut0001 and id is 1 raw text is: 

                                                 /232-6
                DECIoI    pTHE COMPTROLLER GENERAL
DECISIDl                     OF   THE UNITED STATES
                             VWASHINGTON, D.C. 20548


FILE:   B-114817


MATTER


DIGEST:


DATE: December   18, 1979


OF:   Railroad Retirement Board'sLauthority to make      zs'.
      setoffs from the Regional Rail Transportation
      Protective Account
 The Railroad Retiremen Board may set off reimbursements
 due to railroads from the Regional Rail Transportation
 Protective Account described in 45 U.S.C. § 779 (1976)
 against amounts owed to the Board by the railroads under
 the Railroad Unemployment Insurance Act. Board's right
 of setoff derives from common law right of the Govern-
 ment to retain moneys otherwise due debtors in satisfac-
 tion of their debts. Although the withheld protective
 account reimbursements will be transferred to Board's
 insurance fund, this does not constitute violation of
 Protective Account statutory authority forbidding pro-
 tective account funds to be usedfor insurance payments.
 Protective funds are being used for proper purposes but
 merely being withheld to satisfy independent debt.


     The Railroad Retirement Board (Board) has asked whether it may
withhold reimbursements due to the National Railroad Passenger Corpora- 7 1
.tion (Amtrak) and payable from the Regional Rail Transportation
Protective Account (Protective Account) pursuant to 45 U.S.C. § 779
(1976), to offset unpaid claims of the Board against Amtrak under
section 12(o) of the Railroad Unemployment Insurance Act (RUIA),
45 U.S.C. § 362(o) (1976). The Board plans to transfer the with-
held reimbursements from the Protective Account to its Railroad
Unemployment Insurance Account. We conclude the Board can make
those setoffs.

     The question arose when the Board paid sickness benefits for
work-related injuries to an employee of Amtrak and then served
notice upon Amtrak of its right of reimbursement. For various
reasons, Amtrak refused to make full reimbursement but eventually,
the Board and Amtrak settled the matter. However, in the expecta-
tion that the issue may be raised again, the Board still seeks a
decision on the propriety of offsetting amounts due to various
railroads and payable from the protective account to discharge debts
owed by the same railroads to the Board as reimbursement for
sickness benefits.  The problem, as both Amtrak and the Consolidated /go


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