[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: 20CFR266.1]

[Page 504-505]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 266_REPRESENTATIVE PAYMENT--Table of Contents
 
Sec. 266.1  Introduction.




Sec.
266.1 Introduction.
266.2 Recognition by the Board of a person to act in behalf of another.
266.3 Information considered in determining whether to make 
          representative payments.
266.4 Information considered in selecting a representative payee.
266.5 Order of preference in selecting a representative payee.
266.6 Information to be submitted by a representative payee applicant; 
          face-to-face interview.
266.7 Accountability of a representative payee.
266.8 Advance notice of the determination to make representative 
          payment.
266.9 Responsibilities of a representative payee.
266.10 Use of benefit payments.
266.11 Conservation and investment of benefit payments.
266.12 Effect of matters or actions submitted or taken by legal 
          guardian, etc.
266.13 When a new representative payee will be selected.
266.14 When representative payment will be stopped.
266.15 Transfer of accumulated benefit payments.

    Authority: 45 U.S.C. 231k and 231f.

    Source: 59 FR 3992, Jan. 28, 1994, unless otherwise noted.


    (a) Explanation of representative payment. This part explains the 
principles and procedures that the Board follows in determining whether 
to make representative payment and in selecting a representative payee. 
It also explains

[[Page 505]]

the responsibilities that a representative payee has concerning the use 
of the funds which he or she receives on behalf of an annuitant. A 
representative payee may be either a person or an organization selected 
by the Board to receive benefits on behalf of an annuitant. A 
representative payee will be selected if the Board believes that the 
interest of an annuitant will be served by representative payment rather 
than direct payment of benefits. Generally, the Board will appoint a 
representative payee if it determines that the annuitant is not able to 
manage or direct the management of benefit payments in his or her 
interest.
    (b) Statutory authority. Section 12 of the Railroad Retirement Act 
provides that every annuitant and claimant shall be conclusively 
presumed to have been competent until the date on which the Board 
receives a notice in writing that a legal guardian or other person 
legally vested with the care of the person or estate of an incompetent 
or a minor has been appointed: Provided, however, That despite receiving 
such notice, the Board may, if it finds the interests of such annuitant 
or claimant to be served thereby, recognize actions by, conduct 
transactions with, and make payments to such annuitant or claimant.
    (c) Policy used to determine whether to make representative payment. 
(1) In accordance with section 12 of the Railroad Retirement Act, the 
Board's policy is that every annuitant has the right to manage his or 
her own benefits. However, some annuitants due to mental or physical 
condition or due to their youth may be unable to do so. If the Board 
determines that the interests of an annuitant would be better served if 
benefit payments were certified to another person as representative 
payee, the Board will appoint a representative payee in accordance with 
the procedures set forth in this part. The Board may appoint a 
representative payee even if the annuitant is a legally competent 
individual. If the annuitant is a legally incompetent individual, the 
Board may appoint the legal guardian or some other person as a 
representative payee.
    (2) If payment is being made directly to an annuitant and a question 
arises concerning his or her ability to manage or direct the management 
of benefit payments, the Board may, if the annuitant is 18 years old or 
older and has not been adjudged legally incompetent, continue to pay the 
annuitant until the Board makes a determination about his or her ability 
to manage or direct the management of benefit payments and the selection 
of a representative payee.