PART 295—PAYMENTS PURSUANT TO COURT DECREE OR COURT-APPROVED PROPERTY SETTLEMENT Authority: 45 U.S.C. 231f; 45 U.S.C. 231m. Source: 51 FR 12845, Apr. 16, 1986, unless otherwise noted. § 295.1 Introduction. (a) Purpose. (b) Benefits subject to this part. (1) Employee annuity net tier II benefit component as provided under section 3(b) of the Railroad Retirement Act; (2) Employee annuity vested dual benefit component as provided under section 3(h) of the Act; (3) Employee annuity increase as provided under section 3(f) of the Act; and (4) Supplemental annuities as provided under section 2(b) of the Act. [51 FR 12845, Apr. 16, 1986, as amended at 73 FR 47045, Aug. 13, 2008] § 295.2 Definitions. As used in this part— Act Court Court decree Division of property Employee Final decree Former spouse Property settlement Spouse [51 FR 12845, Apr. 16, 1986, as amended at 73 FR 47045, Aug. 13, 2008] § 295.3 Documentation and service. (a) Court decree or property settlement. (1) The court decree or property settlement must provide that the spouse or former spouse is awarded payments from railroad retirement annuities payable to the railroad employee. (2) The court decree or property settlement must specify an amount to be paid to the spouse or former spouse. (3) The court decree or property settlement must obligate the Board to make payments directly to the spouse or former spouse. (4) The court decree or property settlement must clearly identify both the employee and the spouse or former spouse to whom payments are to be made. (5) The court decree or property settlement submitted to the Board must be a recently certified copy of the document filed with the court. Where the award is made in an order modifying and earlier court decree, copies of both the original decree and the subsequent order must be furnished. In the case of a court-approved property settlement, both the settlement and any decree or order incorporating or approving the settlement must be provided. (b) Date of decree. (c) Supporting documentation. (1) Identifying information concerning the employee such as social security number, railroad retirement claim number, full name, date of birth, and current address. (2) Identifying information concerning the spouse or former spouse such as social security number, full name, and current address. (3) A statement that— (i) No condition of the law of the jurisdiction in which the decree was entered or the property settlement approved and no condition contained in the decree or agreement which requires termination of payment has occurred; (ii) If any such condition does occur, the spouse or former spouse will immediately notify the Board; and (iii) The spouse or former spouse agrees to repay any erroneous payment arising from occurrence of any such condition. (d) Delivery. (Approved by the Office of Management and Budget under control number 3220-0042) [51 FR 12845, Apr. 16, 1986, as amended at 73 FR 47046, Aug. 13, 2008] § 295.4 Review of documentation. (a) Regularity. (b) Amount. (1) Where the amount is expressed in terms of a dollar figure: (i) If the figure exceeds the total benefits which may be allocated under this part, the excess will be disregarded, provided that any future increase in the benefits subject to this part will be prospectively applied to the excess effective with the date of the benefit increase. (ii) If the figure is less than the total benefits which may be allocated under this part, only the amount specified will be paid. (2) Where the amount is expressed as a fraction, percentage, or ratio: (i) The amount specified shall be applied only against benefits subject to this part, irrespective of the wording of the decree or property settlement. (ii) When the amount is expressed in terms of a fraction or ratio referring to the length of railroad service, years shall be converted into the equivalent months. If the length of railroad service specified in the decree or property settlement exceeds the number of creditable service months used by the Board to determine the employee's years of service for calculating an annuity, the actual number used by the Board shall be substituted. If the decree understates the actual number of creditable railroad service months, the number of years or months set forth in the decree or property settlement will be used. (3) An amount may be expressed in any other fashion only to the extent to which it may be readily ascertained from records maintained by the Board in the regular course of administration of the Act. (4) Unless the order expressly provides otherwise, the Board will deduct the amount specified by the order from any annuity paid to the employee, whether the employee has retired based on age or on disability. (c) Notification. (1) The rationale for a determination that the decree or property settlement does not comply with this part; or (2) The dollar amount or proportion of benefits which will be paid to the spouse or former spouse. (d) Withholding after notification. (2) Where the employee was not entitled to benefits subject to this part at the time of the notice by the General Counsel that the Board will honor the decree or property settlement, but the employee becomes so entitled at a later time, the Board will attempt to contact the spouse or former spouse at the most recent address shown in the Board's records pertaining to the employee. The notice will inform the spouse or former spouse that an annuity has been awarded, that the spouse or former spouse may, upon submission of all required documentation, receive a portion of the annuity, and that the spouse or former spouse should contact the Board within three months from the date of the notice. The Director of Retirement Benefits will initiate withholding of the amount awarded to the spouse or former spouse from the employee's monthly benefit, and will continue to withhold this amount for three successive months; provided, that an initial annuity payment for a retroactive period shall count as one monthly benefit payment. If after the third month's payment has been withheld the Board has received no response from the spouse or former spouse, the amount withheld from the employee's benefit shall be paid to the employee, and the Board take no further action regarding the decree until the spouse or former spouse contacts the Board. (3) Benefits withheld from the employee may not be paid to a spouse or former spouse until the spouse or former spouse has furnished all supporting documentation required pursuant to § 295.3 of this part. The Board shall allow a reasonable time, not to exceed three months from the date of the initial response from the spouse or former spouse, for the submission of all required documentation. If the documentation is not furnished within the time allowed, payment of the amounts withheld shall be made to the employee. (4) Any payments made to the employee subsequent to the three-month notice period specified in paragraphs (d)(2) and (3) of this section, and prior to receipt of a response or required documentation from the spouse or former spouse, shall be considered properly paid to the employee and the Board shall have no further liability to the spouse or former spouse with respect to such amounts. [51 FR 12845, Apr. 16, 1986, as amended at 73 FR 47046, Aug. 13, 2008] § 295.5 Limitations. (a) Employee benefit entitlement. (b) Minimum amount. (c) Prospective payment. (d) Payees. (e) Net amount of benefits. (1) Amounts deducted to satisfy a debt due the United States, including any amount withheld to recover erroneous payments under the Railroad Retirement Act, Railroad Unemployment Insurance Act, or any other acts administered by the Board; and (2) Benefits which are waived pursuant to § 243.6 of this chapter. (f) Termination. (1) The date on which the employee annuity terminates; (2) The date required by the court decree or property settlement or the law of the jurisdiction in which the court decree or property settlement was entered; or (3) The last day of the month before the month in which the spouse or former spouse dies. (4) If the employee dies on or after August 17, 2007, a former spouse who is receiving a portion of the employee's annuity pursuant to a court decree or property settlement compliant with this part may continue to receive a portion of the employee's tier II benefit component unless the court decree or property settlement requires such payment to terminate upon the death of the employee. (g) Priority. [51 FR 12845, Apr. 16, 1986, as amended at 53 FR 35807, Sept. 15, 1988; 62 FR 67724, Dec. 30, 1997; 73 FR 47046, Aug. 13, 2008; 86 FR 30493, July 1, 2021] § 295.6 Disclosure of information. (a) Immunity from process. (b) Request for information. (c) Information available. (d) Certification. [51 FR 12845, Apr. 16, 1986, as amended at 73 FR 47046, Aug. 13, 2008] § 295.7 Miscellaneous. (a) Disbursement cycle. (b) Liability for payments. (c) Liability for disclosures. (d) Applicable law. (e) Erroneous payments. (2) Where all documentation required by this part is in the Board's records pertaining to the employee prior to the time the employee annuity is awarded, but where the Board due to clerical oversight fails to withhold the amount awarded by the court order, then the Board shall begin deduction from the employee annuity with the month the error is discovered, and shall pay the amount which should have been withheld pursuant to this part to the spouse or former spouse. The amount paid to the spouse or former spouse representing months for which the amount under the order was not timely withheld shall be an erroneous payment to the employee within the meaning of section 10 of the Railroad Retirement Act. This section shall not apply where the Board has attempted to contact the spouse or former spouse at the time the employee annuity is awarded pursuant to § 295.4(d). [51 FR 12845, Apr. 16, 1986, as amended at 73 FR 47046, Aug. 13, 2008]