[Decision on Transfer of Funds From Railroad Retirement Account to Social Security Equivalent Benefit Account]

The Railroad Retirement Board requested a legal opinion as to whether it correctly transferred funds from the Railroad Retirement Account (RRA) to the Social Security Equivalent Benefit Account (SSEBA). GAO noted that the Board treated the transfer as a loan from RRA to SSEBA, which SSEBA subsequently repaid with interest. GAO held that: (1) SSEBA was authorized to borrow funds from RRA, when necessary, to make monthly benefit payments to retirees; and (2) the funds transfer constituted a loan from RRA to SSEBA. Accordingly, the Board's treatment of the funds transfer was legally correct.