[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: 20CFR226.63]

[Page 444]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES
--Table of Contents
 
       Subpart E_Years of Service and Average Monthly Compensation
 
Sec. 226.63  Determining monthly compensation.

    (a) Based on yearly compensation. If Board records do not show 
monthly compensation for a year, the monthly compensation is determined 
by dividing the total compensation reported for the year by the number 
of months of service credited to the employee for that year.
    (b) For employee with government employment and no railroad service 
for 60-month period before annuity begins--(1) General. The compensation 
used in determining the average monthly compensation (AMC) is indexed 
for an employee who has not worked in the railroad industry for the 60-
month period before the month the employee's annuity begins and whose 
major employment during that period was for a government agency listed 
in Sec. 216.16 of this chapter. The compensation is indexed by 
multiplying it by the quotient obtained by dividing the average annual 
wage for the indexing year by the average annual wage for the year being 
indexed. If the month for which compensation is being indexed is before 
1951, the average annual wage for 1951 is used.
    (2) Indexing year defined. The indexing year is the second year 
before the year in which the annuity begins.

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