[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: 20CFR226.74]

[Page 446-447]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES
--Table of Contents
 
 Subpart F_Reduction for Workers' Compensation and Disability Benefits 
              Under a Federal, State, or Local Law or Plan
 
Sec. 226.74  Redetermination of reduction.

    (a) General. The average current earnings are redetermined in the 
second year after the year the reduction for other disability benefits 
was first applied and every third year after that. The redetermined 
amount is used only if it results in a lower reduction amount. The new 
reduction amount is effective with January of the year after the 
redetermination is made.
    (b) Redetermined average current earnings. The average current 
earnings are redetermined by multiplying the initial average current 
earnings amount by--
    (1) The average of the total wages (including wages that exceed the 
maximum used in computing social security benefits) of all persons for 
whom wages were reported to the Secretary of the Treasury for the year 
before the year of redetermination, divided by the average of the total 
wages reported to the Secretary of the Treasury for 1977 or, if later, 
the year before the year for which the reduction was first computed. If 
the result is not a multiple of

[[Page 447]]

$1, it is rounded to the next lower multiple of $1; or
    (2) If the reduction was first computed before 1978, the average of 
all taxable wages reported to the Secretary of Health and Human Services 
for the first quarter of 1977, divided by the average of all taxable 
wages reported to the Secretary of Health and Human Services for the 
first quarter of the year before the year for which the reduction was 
first computed. If the result is not a multiple of $1, it is rounded to 
the next lower multiple of $1.