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B-198903 1 (1981-08-06)

handle is hein.gao/gaobadjpu0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION . . OF THE UNITED STATES WASHINGTON, 0. C. 20548 FILE: B-198903 DATE: August 6, 1981 MATTER OF: Alaska Railroad - Employees' Compensation - Life Insurance - Health Insurance - Erroneous Payments DIGEST: 1. Congress passed Federal Employees Health Benefits Act (5 U.S.C. §§ 8901, et. seq.) (FEHBA) to establish comprehensive health benefits program for Federal employees. Act imposes 75 percent ceiling on an agency's contributions to employee pre- miums and all participating agencies are bound by that limitation unless specifically exempted. Thus, although Alaska Railroad Act of March 12, 1914 (43 U.S.C. §§ 975, et. seq.) confers broad authority on President or his designee to fix the compensation of employees of the Railroad, Alaska Railroad may not independently restructure its partic- ipation in FEHBA program by increasing its contribution beyond the 75 percent ceiling. 2. Alaska Railroad has in the past contributed more than 75 percent toward employee premium costs for health insurance in contravention of 5 U.S.C. § 8906(b)(2). Comptroller General concurs with the Railroad's assertion that administrative costs of conducting full 6- year audit and maintaining such a large number of relatively small individual collection actions are likely to exceed the realistic estimated recovery and go far beyond the point of diminishing returns. Thus, this case meets standards for termination of collection set forth in Federal Claims Collection Act of 1966 (31 U.S.C. §§ 951, et. seq.) and implementing standards. 3. Under color of its authority to fix compensa- tion of its employees, Alaska Railroad negotiated collective bargaining agreements with railroad unions representing Railroad employees which erroneously included provi- sions for Railroad to contribute more than 75 2-AO JVIVP t i.)o a

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