PART 228—COMPUTATION OF SURVIVOR ANNUITIES Authority: 45 U.S.C. 231f. Source: 60 FR 16368, Mar. 30, 1995, unless otherwise noted. Subpart A—General § 228.1 Introduction. (a) What does this part include? (b) Other relevant parts. (2) Part 216, Eligibility for an Annuity, describes the eligibility requirements for receipt of the annuity computations described in this part. § 228.2 Tier I and tier II annuity components. (a) Tier I annuity component. (b) Tier II annuity component. Subpart B—The Tier I Annuity Component § 228.10 Computation of the tier I annuity component for a widow(er), disabled widow(er), remarried widow(er), and a surviving divorced spouse. The tier I annuity component for these beneficiaries is generally based on the survivor tier I Primary Insurance Amount (PIA). The survivor tier I PIA is determined in accordance with section 215 of the Social Security Act using the deceased employee's combined railroad and social security earnings after 1950 (or after 1936 if a higher PIA would result) up to the maximum creditable amounts through the year of the employee's death. See part 225 of this chapter. This amount may be further adjusted for certain reductions or deductions as described in §§ 228.15-228.20 of this part and is subject to the family maximum. See § 228.14 of this part. § 228.11 Computation of the tier I annuity component of a widow(er) with a child in care, remarried widow(er) with a child in care, or a surviving divorced spouse with a child in care. The tier I annuity component of a widow(er), remarried widow(er), or a surviving divorced spouse with a child of the employee in his or her care is 75 percent of the PIA computed under § 228.10 of this part. The amount may be adjusted for certain reductions and deductions described in §§ 228.15-228.20 of this part and is subject to the family maximum. See § 228.14 of this part. § 228.12 Computation of the tier I annuity component of a child's insurance annuity. The tier I annuity component of a child's insurance annuity is 75 percent of the PIA computed under § 228.10 of this part. The amount may be adjusted for the family maximum. See § 228.14 of this part. § 228.13 Computation of the tier I annuity component of a parent's insurance annuity. The tier I annuity component of a parent's insurance annuity is dependent on whether one or two parents are entitled. (a) One parent entitled. 1/2 (b) More than one parent entitled. (c) The amounts computed under paragraph (a) or (b) of this section may be adjusted for the family maximum. See § 228.14 of this part. § 228.14 Family maximum. (a) Family maximum defined. (b) Computation of the family maximum The employee attains age 62, has a period of disability or dies prior to 1979. (i) The sum of the maximum amounts of benefits payable on the basis of the compensation of all such insured individuals, or (ii) The last figure in column V of the applicable table published each year by the Secretary of Health and Human Services. The “applicable table” refers to the table which is effective for the month the benefit is payable. (2) The employee attains age 62, has a period of disability or dies in 1979. (i) 150 percent of the first $230 of the individual's primary insurance amount, plus (ii) 272 percent of the primary insurance amount over $230 but not over $332, plus (iii) 134 percent of the primary insurance amount over $332 but not over $433, plus (iv) 175 percent of the primary insurance amount over $433. If the total of this computation is not a multiple of $0.10, it will be rounded to the next lower multiple of $0.10. (3) The employee attains age 62, or has a period of disability or dies after 1979. Federal Register (c) Special minimum PIA. § 228.15 Reduction for age. (a) Widow(er), surviving divorced spouse, or remarried widow(er). 19/40 (b) Disabled widow(er), disabled surviving divorced spouse, or disabled remarried widow(er). § 228.16 Adjustments in the age reduction factor (ARF). Upon the attainment of retirement age, the previously-computed age reduction factor is adjusted to remove those months for which a full annuity was not paid even though the individual was entitled. § 228.17 Adjustments to the widow(er)'s, disabled widow(er)'s, surviving divorced spouse's, and remarried widow(er)'s tier I annuity amount. (a) If the employee died before attaining age 62 and after 1978 and the widow(er), disabled widow(er), remarried widow(er), or surviving divorced spouse is first eligible after 1984, the Board will compute the tier I annuity amount as if the employee had not died but had reached age 62 in the second year after the indexing year (see § 225.2 of this chapter); provided, however, (1) The year the employee attained age 60, or would have attained age 60 had the employee lived, and (2) The second year before the year in which the widow(er), remarried widow(er), or surviving divorced spouse becomes eligible for such an annuity, has attained age 60, or is age 50-59 and disabled. (b) The tier I annuity component is increased if the employee's annuity was increased or would have been increased based on delayed retirement credits (see § 225.36 of this chapter). (c) The tier I annuity component is reduced if the employee had been entitled to an age reduced annuity, including an annuity based on 30 years of service, which is reduced for age because it began before the employee attained age 62. In this instance, the widow(er)'s, remarried widow(er)'s, or surviving divorced spouse's tier I annuity component after applying any reduction for age is further reduced to the larger of amount the employee would have received as a tier I annuity component if still alive or 82 1/2 § 228.18 Reduction for public pension. (a) The tier I annuity component of a widow(er), remarried widow(er), surviving divorced spouse, or disabled widow(er) annuity, as described in the preceding sections of this part, is reduced if the survivor is in receipt of a public pension. (b) When reduction is required. (c) Payment in a lump sum. (d) Exceptions. (1) If the survivor is receiving a Government pension based on employment for an interstate instrumentality; or (2) If the survivor receives or is eligible to receive a Government pension for one or more months in the period December 1977 through November 1982 and he or she meets the requirements for social security benefits that were applied in January 1977, assuming the employee's earnings had been covered under that Act (even though he or she did not actually claim such benefits or become entitled for such benefits until a later month). The January 1977 requirements are, for a man, a one-half support test (see paragraph (e) of this section), and, for a woman claiming benefits as a surviving divorced spouse, marriage for at least 20 years to the insured worker. A person is considered eligible for a Government pension for any month in which he or she meets all the requirements for payment except that he or she is working or has not applied; or (3) If a survivor annuitant was receiving or eligible (as defined in paragraph (d)(2) of this section) to receive a Government pension for one or more months before July 1983, and he or she meets the one-half support test (see paragraph (e) of this section). If a survivor annuitant meets the exception in this paragraph but he or she does not meet the exception in paragraph (d)(2) of this section, December 1982 is the earliest month for which the reduction will not affect his benefits; or (4) If a survivor annuitant was eligible for a Government pension in a given month except for a requirement which delayed eligibility for such pension until the month following the month in which all other requirements were met, the Board will consider the annuitant to be eligible in that given month for the purpose of meeting one of the exceptions in paragraphs (d)(2) and (3) of this section. If an annuitant meets an exception solely because of this paragraph, his or her benefits will be unreduced for months after November 1984 only. (e) The one-half support test. (1) If the employee upon whose compensation the survivor annuity is based had a period of disability which did not end before he or she became entitled to an age and service or disability annuity, or died, the survivor annuitant must have been receiving at least one-half support from the employee— (i) At the beginning of his or her period of disability; or (ii) At the time he or she became entitled to an age and service or disability annuity; or (iii) At the time of his or her death. (2) If the employee upon whose compensation the survivor annuity is based did not have a period of disability at the time of his or her entitlement or death, the survivor annuitant must have been receiving at least one-half support from the employee— (i) At the time he or she became entitled to an age and service annuity or disability annuity; or (ii) At the time of his or her death. (f) Amount of reduction. (2) If a survivor annuitant became eligible for a Government pension before July 1983 and he or she did not meet one of the exceptions in paragraph (d) of this section, the Board will reduce (but not below zero) the tier I component by the full amount of the pension for months before December 1984 and by two-thirds the amount of his or her monthly pension for months after November 1984. If the amount of the reduction is not a multiple of 10 cents, it will be rounded to the next higher multiple of 10 cents. (g) Reduction not applicable. § 228.19 Reduction for a social security benefit. The tier I annuity component is reduced for the amount of any social security benefit to which the survivor annuitant is entitled. § 228.20 Reduction for an employee annuity. (a) General. (b) Tier I reduction. § 228.21 Entitlement as a spouse or divorced spouse and as a survivor. If an individual is entitled to both a spouse or divorced spouse and survivor annuity, only the larger annuity will be paid. However, if the individual so chooses, he or she may receive the smaller annuity rather than the larger annuity. § 228.22 Entitlement to more than one survivor annuity. If an individual is entitled to more than one survivor annuity, only the larger annuity will be paid. However, if the individual so chooses, he or she may receive the smaller annuity rather than the larger annuity. § 228.23 Priority of reductions. The tier I component of the survivor annuity is first reduced by the family maximum, if applicable, then any applicable age reduction, then by any public pension offset, then by any social security benefit payable, then by the tier I component of any employee annuity payable to the survivor annuitant. § 228.40 Cost of living increase applicable to the tier I annuity component. The tier I annuity component of a survivor annuity is increased at the same time and by the same percentage as the increase provided for under section 215(i) of the Social Security Act. The amount of the increase is published in the Federal Register Subpart C—The Tier II Annuity Component § 228.50 Tier II annuity component widow(er), child, or parent. (a) General. (b) Amount of the tier II annuity component (1981 amendment) Widow(er) or disabled widow(er). (2) Parent. (3) Child. (c) Minimum tier II survivor annuity components. (d) Maximum tier II annuity components. (e) Age reduction. § 228.51 Takeback amount. (a) The 1983 amendments to the Railroad Retirement Act provided that a portion of the cost-of-living increases payable on the tier I annuity component be offset from the amount of the tier II annuity. This amount is the takeback amount. The amount of the takeback and its application depends on the employee and survivor's annuity beginning dates. (b)(1) The tier II takeback amount for survivors whose annuity beginning date is January 1, 1984 or later is usually the amount of the employee's takeback amount. That amount is equal to 5 percent of the employee's primary insurance amount, less all applicable reductions (net tier I), on November 1, 1983. However, if the employee's annuity was reduced for a social security benefit but the survivor's annuity is not, the takeback amount is the amount the employee's annuity would have been reduced for the takeback if the employee's annuity had not been reduced for a social security benefit. If the employee's annuity had not been tiered or was being paid under the overall minimum, the Board will compute the amount of the tier II takeback that would have been applicable to the employee's annuity. (2) The tier II takeback amount for survivors whose annuity beginning date is before January 1, 1984 is equal to 5 percent of the survivor's net tier I annuity component, before deduction on account of work, on November 1, 1983. (3) The tier II takeback will be applied in accord with the above paragraphs in any case where the employee died or retired before January 1, 1984. If the employee died or retires after December 31, 1983, or the employee never retired and dies after December 31, 1993, no takeback will be applied to the survivor's annuity. (c) No takeback is applied if the survivor tier II annuity amount before the takeback is applied is $10.00 or less and cost-of-living increases have not increased the tier II annuity amount to more than $10.00 (the takeback may never reduce the tier II to an amount less than $10.00). § 228.52 Restored amount. (a) General. (b) Amount. (c) Widower. § 228.53 Spouse minimum guarantee. The Railroad Retirement Act provides that a spouse should receive no less as a widow(er) than he or she received as a spouse. However, if the widow(er) becomes entitled to a social security benefit, thus reducing his or her annuity, the spouse minimum guarantee is payable only to the extent that it guarantees the amount that the widow(er) would have received as a spouse had he or she been entitled to a social security benefit in the month preceding the employee's death in an amount equal to the amount of the social security benefit payable at the time the widow(er) first became entitled to the social security benefit. § 228.60 Cost-of-living increase. The tier II annuity component of a survivor annuity under the Railroad Retirement Act is increased by 32.5 percent of the percentage increase under section 215(i) of the Social Security Act at the same time that any such increase is payable. The amount of the increase is published in the Federal Register