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B-220322 1 (1987-03-09)

handle is hein.gao/gaobadmpn0001 and id is 1 raw text is: JA~A-~ J~ The Comptroller General of the United States Washington, D.C. 20548 Decision Transfer of Funds from the Railroad Retirement Matter of- Account to the Social Security Equivalent Benefit Account File: B-220322 Date: March 9, 1987 DIGEST Decision by Railroad Retirement Board (Board) to treat trans- fer of funds from the Railroad Retirement Account (RRA) to the Social Security Equivalent Benefit Account (SSEBA) on October 1, 1984, as a loan from the RRA that the SSEBA was subsequently required to repay with interest is correct. Under 45 U.S.C. § 231n-1, which established the SSEBA as a separate account effective October 1, 1984, to pay social security equivalent benefits due railroad retirees on or after that date, SSEBA is in effect, authorized to borrow funds from the RRA if needed to make monthly benefit payments. DECISION This decision is in response to a letter dated September 17, 1985, from the Executive Director of the Railroad Retirement Board (Board) requesting our legal opinion as to the cor- rectness of the method by which funds were transferred from the Railroad Retirement Account * * * to the Social Security Equivalent Benefit Account * * * to allow for the payment of benefits from the latter account on October 1, 1984. As explained in the letter, the Board, which administers both accounts, treated the transfer as a loan from the Railroad Retirement Account (RRA) to the Social Security Equivalent Benefit Account (SSEBA) that was subsequently repaid by the SSEBA with interest. Later, the Office of Management and Budget (OMB) questioned whether the original transfer from the RRA constituted a loan or whether the transfer should have been treated as a nonreimbursable outlay from the RRA that was required to satisfy a valid obligation of that account. As a result of the question over the Board's treatment of the transfer of funds, the Board requested our opinion. For the reasons set forth hereafter, we conclude that the Board's position, that the transfer in question constituted a loan from the RRA to the SSEBA that the latter account was re- quired to repay, is correct. 08m1 -13.23 6

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