[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: 20CFR228.51]

[Page 455]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 228_COMPUTATION OF SURVIVOR ANNUITIES--Table of Contents
 
                 Subpart C_The Tier II Annuity Component
 
Sec. 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).