This is the decision of the Railroad Retirement Board regarding the continued
status of the BGM Equipment Company, Inc. (BGM) (B.A. No. 9622) 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 in the file indicates that BGM was initially formed on December
23, 1986, and leased equipment, locomotives, truck, track equipment, and land to
its affiliated carriers, Montana Western Railway Company, Inc. (B.A. No. 3653)
and Rarus Railway Company (B.A. No. 3649), both of which are employers under the
In November 2008, the Chief of Compensation and Employer Services advised the
Chief of Audit and Compliance that BGM was one of several employers that did not
respond to inquiries made of them as an employer that sent reports with no
employees in one or more years from 2003 through 2006. In response to a letter
dated November 6, 2008, Mr. Matt McGrath, Director of Operations Integration for
Rarus Railway Company (Rarus) advised that BGM had merged into Rarus effective
October 1, 2007. A copy of the Articles of Merger and the written consent of the
Board of Managers or Directors were provided with Mr. McGrath's letter.
According to the Articles of Merger, BGM (along with BGME, L.L.C., a
non-covered entity) merged into Rarus, with Rarus as the surviving entity. The
merger became effective on October 1, 2007.
The evidence of record establishes that BGM no longer possesses the
characteristics of a railroad employer. The Board therefore finds that effective
October 1, 2007, the effective date of the merger with Rarus Railway Company,
BGM Equipment Company, Inc., ceased being a covered employer under the Railroad
Retirement and Railroad Unemployment Insurance Acts.
Original signed by:
||FOR THE BOARD
Secretary to the Board