This is the decision
of the Railroad Retirement Board regarding
the continued status of SWKR Operating Company,
Inc. (SWKR) as an employer under the Railroad
Retirement Act (45 U.S.C. § 231, et seq.)
(RRA) and the Railroad Unemployment Insurance
Act (45 U.S.C. § 351, et seq.) (RUIA).
SWKR was held to be an employer under the
Acts effective June 15, 1992, (B.A. Number
SWKR ceased operations on October 31, 2003.
Its assets were sold on that date to San Pedro
Operating Railroad Company2.
See Surface Transportation Board decision
dated November 21, 2003 (STB Finance Docket
No. 34430). SWKR last compensated employees
on October 30, 2003.
Section 202.11 of the Board’s regulations
The employer status of any company or person
shall terminate whenever such company or person
loses any of the characteristics essential
to the existence of an employer status.
Through the sale of its rail and other assets
and its cessation of operations, SWKR has
lost the characteristics essential to the
existence of an employer status. Accordingly,
the Board holds that SWKR ceased to be an
employer under the Railroad Retirement and
Railroad Unemployment Insurance Acts effective
with the close of business on October 31,
2003. Cf. Rev Ruling 82-99, 1982-2 C.B. 154,
wherein the Internal Revenue Service ruled
that a railroad ceases to be an employer subject
to taxes under the Railroad Retirement Tax
Act when the railroad’s employees stop
performing services in connection with the
railroad’s carrier activities.