M A R 7 1979 Director of Data Processing and Accounts L 7 9 • 9 0

General Counsel

Sickness benefits - Chessie System - Rule 19 of the Agreement between the Western Maryland Railway Company and the American Railway Supervisors Association

Chesapeake and Ohio Railway Company and The Baltimore and Okie Chicago Terminal Railroad Company sick leave policies for dispatchers and yardmasters

Chesapeake and Ohio Railway Company and The Baltimore end Ohio Chicago Terminal Railroad Company sick leave policies for mechanical department foremen

This is in further response to your memorandum of July 6, 1977, in which you request on opinion es to whether the above sick leave plans would qualify aa "plans" under section l(h)(6)(vl) of the Railroad Retirement Act of 1974 (45 U.S.C. 1 23l(h)(b)(vl)).

Mechanical department foremen of the Western Maryland Railway Company are covered under Rule 19 of the Agreeswnt between the American Rail­ way Supervisors Association and the Western Maryland. Rule 19 provides five days of sick leave per year at the employee's regular rate for absence due to miner illness. An employee is allowed up to hie annual vacation time during a calendar year at his regular rate for absence due to serious illness or eff-the-Jeb injury, provided no additional expense results to the Company.

Dispatchers and yerdmesters of the Chesapeake and Ohio and the Baltimore end Ohio Chicago Terminal railroads are eovered under a sick leave policy which provides for wage continuation for a specified number of days per year based upon the employee's length of service. A similar policy is in effect for mechanical department foremen for the Chesapeake and Ohio Railway Company and The Baltlaure and Ohio Chicago Terminal Railroad Company.

Sick leave is not cumulative from year to year under any of the above plans. Although the plans are eketchy in detail, each plan covers a specified class of employees and appears to provide definite standards for determining eligibility for, amount of, and duration of benefits. - 2 -

Director of Data Processing and Accounts

In light ol the above I am of the opinion that the submitted plans constitute "plans" within the meaning of the above-cited section of the Railroad Retirement Act, and, therefore, benefits paid pursuant to these plans, when paid for days of bona fide sickness, are exclud­ able from compensation wider the Act. See Ceeeral Counsel's opinions L-78-280 - L-78-280.S. 1

Dale G. Zimmerman j - TWS:das