|
Deemed Service Months
In order to complete Form Letter GL-99, Employer's Deemed Service Month
Questionnaire, an understanding of deemed service months is necessary.
Effective January 1, 1985, additional service months may be deemed in some
cases where an employee does not actually work in every month of the year. An
employee may never be credited with more than 12 service months in any calendar
year and the employee must be in an employment relation with a covered railroad
employer in order for that month to be deemed.
Deemed Service Month Calculation
To determine the maximum number of deemed months for an employee for a year:
|
1 |
Multiply the
number of reported service months by 1/12 the annual Tier II
maximum compensation for the year. |
|
2 |
Subtract this
product from the reported Tier II compensation.
If the result is zero or negative, no deemed months are
possible. If the result is a positive amount, go to Step 3. |
|
3 |
Divide by 1/12
the Tier II maximum compensation.
|
|
4 |
Round up to a
whole number. |
This is the maximum, or potential number of deemed service months. The actual
number of deemed months will depend on whether the employee has an employment
relation in the months not worked.
Form GL-99, Employer's Deemed Service
Month Questionnaire
Employers do not report deemed service months and the deeming of service
months has no effect on the employer's report of service and compensation or tax
liability. Deemed service months are determined and recorded by the RRB. Where
the employee's Tier II compensation would yield additional service but an
employment relationship is not apparent, the employer must provide that
information by responding to Form GL-99, Employer's Deemed Service Month
Questionnaire.
Note: Employers can however report
employment relation information on their annual report by using two new service
month codes. The RRB has added service month codes for employers to report
employment relation information for non-worked months. (8 = employment
relationship; 9 = no employment relationship). The new codes would be used in
place of code 0. See Part V, Chapter 3 for information on using these codes on
Form BA-3
 .
Form GL-99 is designed to obtain information as to whether an employment
relation exists in certain months. The person completing the form need only
answer "Yes" or "No" to question 8. The “remarks” section is for supplementary
information you may wish to provide; it should not be used instead of answering
question 8 directly. A prompt reply will eliminate the need for the RRB to trace
for GL-99 replies.
Note: Form GL-99 also requires a
Form BA-4
, Report of Creditable
Compensation Adjustments, in addition to a response if you advise that the
service and compensation previously reported was incorrect.
|
