This is the decision of the Railroad
Retirement Board regarding the continued status
of the Southern Alabama Railroad, Inc., 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
Southern Alabama was held to be an employer
under the Acts effective November 1, 1988, (B.A.
Number 5520). In response to questions about its
continued status as an employer, Mr. G. R.
Abernathy, President of Southern Alabama
Railroad, Inc., provided the following
information. Southern Alabama Railroad, Inc.
ceased operations on October 25, 2001. Its rail
assets were sold to Conecuh Valley Railroad,
Co., Inc., a covered employer under the Acts
(B.A. Number 5585). Southern Alabama last
compensated employees on December 31, 2001.
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, Southern
Alabama has lost the characteristics essential
to the existence of an employer status.
Accordingly, the Board holds that Southern
Alabama ceased to be an employer under the
Railroad Retirement and Railroad Unemployment
Insurance Acts effective with the close of
business on December 31, 2001. 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.