February 18, 1981
Subject:
Retirement; Federal Preemption.
Requested By:
E. E. Lee, Jr. General Manager North Carolina Ports Railway Commission
Question:
Is the North Carolina Ports Railway Commission, as a carrier by railroad subject to the Railroad Retirement Act and the Railroad Unemployment Insurance Act, required to also participate in the Retirement System for Teachers and State Employees?
Conclusion:
Yes.
The North Carolina Ports Railway Commission is an independent agency of the State of North Carolina, created pursuant to the provisions of G.S. 143-469, et seq. Its employees are full-time employees of the State of North Carolina.
The Railroad Retirement Board, through its acting General Counsel, has determined that the North Carolina Ports Railway Commission, as a certified carrier by railroad subject to Part I of the Interstate Commerce Act, is an "employer" within the definition set out in the Railroad Retirement Act and the Railroad Unemployment Insurance Act. The North Carolina Ports Railway Commission and its employees are therefore required to contribute to, and participate in the Railroad Retirement System.
Chapter 135 of the General Statutes requires all State employees to participate in the Retirement System for Teachers and State Employees. The term "employee", as defined by § 135-1(10) covers ". . . all full-time employees, agents or officers of the State of North Carolina or any of its departments, bureaus and institutions other than educational. . . ." The employees of the North Carolina Ports Railway Commission are clearly within this definition and, as such, are required to participate in the State system.
The question raised is whether the North Carolina Ports Railway Commission is legally required to participate in both retirement systems, or whether coverage under the federal Railroad Retirement Act preempts State law and requires participation only in the federal retirement system. Although federal legislation may displace State law under the supremacy clause of Article VI of the United States Constitution, preemption occurs only when there is an outright conflict between the federal scheme and the State requirement, or when State regulation would interfere unduly with the accomplishment of congressional objections. See, e.g., Hines v. Davidowitz, 312 U.S. 57 (1941).
There is no apparent conflict between the Railroad Retirement Act, the Railroad Unemployment Insurance Act and Chapter 135 of the General Statutes. Nor is there any prohibition against participants in other systems as well.
It is therefore the opinion of this Office that the North Carolina Ports Railway Commission is covered by the Railroad Retirement Act, the Railroad Unemployment Insurance Act and Chapter 135 of the General Statutes and is required to participate in the retirement systems established by each of these laws.
Rufus L. Edmisten Attorney General
Grayson G. Kelley Assistant Attorney General