[Code of Federal Regulations]
[Title 20, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR225.3]

[Page 425-426]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 225_PRIMARY INSURANCE AMOUNT DETERMINATIONS--Table of Contents
 
                            Subpart A_General
 
Sec. 225.3  PIA computation formulas.

    (a) General. PIA's are generally computed under one of two normal 
formulas determined by the employee's eligibility year. In addition, 
there is a special PIA formula, based on an employee's years of 
coverage, that is used when it produces a PIA that is higher than the 
PIA computed under the appropriate PIA formula. The two most common PIA 
formulas are the Average Indexed Monthly Earnings PIA formula and the 
Average Monthly Earnings PIA formula. The special PIA formula is called 
the Special Minimum PIA formula.
    (b) Average Indexed Monthly Earnings PIA formula. When the 
employee's eligibility year is after 1978, the Tier I PIA, Overall 
Minimum PIA, Survivor

[[Page 426]]

Tier I PIA, Employee's Retirement Insurance Benefit PIA and Residual 
Lump-Sum PIA are computed under the Average Indexed Monthly Earnings PIA 
formula.
    (c) Average Monthly Earnings PIA formula. The Average Monthly 
Earnings PIA formula is used to compute a PIA for one of two reasons: 
either the employee's eligibility year is before 1979 or the type of PIA 
requires that it always be computed under the Average Monthly Earnings 
PIA formula.
    (1) Use of Average Monthly Earnings PIA formula based on the 
employee's eligibility year. The Average Monthly Earnings PIA formula is 
used in computing the Tier I PIA, the Overall Minimum PIA, the Employee 
Fictional Retirement Insurance Benefit PIA and the Residual Lump-Sum PIA 
when the employee's eligibility year is before 1979.
    (2) Types of PIA's always computed using the Average Monthly 
Earnings PIA formula. The following PIA's used by the Board are 
determined under the Social Security Act as in effect on December 31, 
1974, and are always computed using the Average Monthly Earnings PIA 
formula.
    (i) Combined Earnings Dual Benefit PIA described in Sec. 225.12.
    (ii) Social Security Earnings Dual Benefit PIA described in Sec. 
225.13.
    (iii) Railroad Earnings Dual Benefit PIA described in Sec. 225.14.
    (iv) Combined Earnings PIA described in Sec. 225.23.
    (v) Social Security Earnings PIA described in Sec. 225.24.
    (vi) Railroad Earnings PIA described in Sec. 225.25.
    (d) Special Minimum PIA formula. The Special Minimum PIA formula is 
based on the employee's years of coverage. The Special Minimum PIA 
formula usually applies when the employee had consistently low earnings 
during his or her working lifetime. The Special Minimum PIA formula is 
used when it is higher than the PIA calculated under the applicable 
Average Indexed Monthly Earnings formula or the Average Monthly Earnings 
formula.