[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: 20CFR229.65]

[Page 465-466]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 229_SOCIAL SECURITY OVERALL MINIMUM GUARANTEE--Table of Contents
 
  Subpart G_Reduction for Worker's Compensation or Disability Benefits 
              Under a Federal, State, or Local Law or Plan
 
Sec. 229.65  Initial reduction.


    (a) When reduction is effective. A benefit computed under the 
overall minimum based on disability (DIB O/M) is reduced (not below 
zero) for any month the employee is under retirement age and is entitled 
to worker's compensation or disability benefits under a Federal, State, 
or local law or plan (public disability benefit). The reduction is 
effective with the month the employee is

[[Page 466]]

entitled to worker's compensation or a public disability benefit.
    (b) When reduction is not made. A reduction for worker's 
compensation is not made if the law or plan under which the worker's 
compensation or public disability benefit is paid provides for the 
reduction of the benefit provided due to entitlement to a social 
security disability benefit, and so provided on February 18, 1981.
    (c) Amount of reduction. The reduction in the DIB O/M for worker's 
compensation or public disability benefit equals the difference between:
    (1) The sum of the monthly DIB O/M rate, including benefits for all 
family members (subject to the family maximum), plus the monthly 
worker's compensation or public disability benefit; and
    (2) The higher of 80 percent of the employee's average current 
earnings before becoming disabled or the monthly DIB O/M rate (before 
reduction for worker's compensation or public disability benefit).
    (d) Average current earnings, defined. Beginning January 1, 1979, an 
employee's average current earnings for purposes of this section are the 
highest of:
    (1) The average monthly wage (see Sec. 225.2 of this chapter) used 
to compute the DIB O/M under the Social Security Act rules which were in 
effect before 1979; or
    (2) One-sixtieth of the employee's total earnings from employment or 
self-employment under either the Social Security or Railroad Retirement 
Acts (including earnings that exceed the maximum used in computing 
social security benefits) for the 5 consecutive years after 1950 in 
which the earnings were the highest; or
    (3) One-twelfth of the employee's total earnings from employment or 
self-employment under either the Social Security or Railroad Retirement 
Acts (including earnings that exceed the maximum used in computing 
social security benefits) for the year of highest earnings in the period 
from 5 years before through the year in which the employee became 
disabled. The result is rounded to the next lower multiple of $1.00.