This is the decision of the Railroad Retirement Board regarding the continued
status of the New York Central Lines, LLC (NYC LLC)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).
Information was provided by Mr. Sean M. Craig, Director-Audits & Appeals of
CSX Corporation. NYC LLC (B.A. No. 2385) was held to be an employer under the
Acts effective June 1, 1999 (Board Coverage Decision 00-50). According to Mr.
Craig, on August 26, 2004, NYC LLC merged into NYC Newco, Inc. (Newco), with
Newco as the surviving entity. Newco was then merged into CSX Transportation,
Inc. (CSXT), an employer under the Acts (B.A. No. 1524). Mr. Craig explained
that the former employees of NYC LLC were last compensated on varying dates,
depending on the particular situation for each employee.
The former employees of NYC LLC are now employed by Fruit Growers Dispatch,
Inc., an employer under the Acts (B.A. No. 9536). According to Mr. Craig, all
assets of NYC LLC were transferred to CSXT pursuant to the terms of a Private
Letter Ruling issued by the Internal Revenue Service. The Surface Transportation
Board (STB) found the mergers to be consistent with the public interest (STB
Finance Docket No. 33388 (sub-No. 94), service date – late release July 9, 2003;
STB Finance Docket No. 33388 (Sub-No. 94), service date – November 7, 2003)).
The evidence of record establishes that NYC LLC no longer possesses the
characteristics of a railroad employer. The Board therefore finds that effective
August 26, 2004, the date of the merger with NYC Newco, Inc., New York Central
Lines, LLC ceased being a covered employer under the Railroad Retirement and
Railroad Unemployment Insurance Acts.
Original signed by:
||FOR THE BOARD
Secretary to the Board
According to the spreadsheet provided by Mr.
Craig, there were seven employees; four were last compensated on June 30, 2004,
and three were last compensated on July 2, 2004.