[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: 20CFR266.11]

[Page 509-510]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 266_REPRESENTATIVE PAYMENT--Table of Contents
 
Sec. 266.11  Conservation and investment of benefit payments.

    (a) General. If benefit payments made to a representative payee are 
not needed for the annuitant's current maintenance or reasonably 
foreseeable needs or the support of legal dependents or to pay creditors 
in accordance with Sec. 266.10, they shall be conserved or invested on 
behalf of the annuitant. Such funds must be invested in accordance with 
the rules applicable to investment of trust estates by trustees. Any 
investment must show clearly that the representative payee holds the 
property in trust for the annuitant.
    (b) Preferred investments. Preferred investments for excess funds 
are deposits in an interest or dividend paying account in a bank, trust 
company, credit union, or savings and loan association which is insured 
under either Federal or State law, direct obligations of the United 
States Government or obligations for which both principal and interest 
are guaranteed unconditionally by the United States Government. The 
account must be in a form which shows clearly that the representative 
payee has only a fiduciary, and not a personal, interest in the funds. 
If the payee is the legally appointed guardian

[[Page 510]]

or fiduciary of the annuitant, the account may be established to 
indicate this relationship. If the payee is not the legally appointed 
guardian or fiduciary, the accounts may be established as follows:
    (1) For U.S. Savings Bonds--

________________________________________________________________________
(Name of annuitant)
________________________________________________________________________
(Social Security Number), for whom
________________________________________________________________________
(Name of payee)

is representative payee for Railroad Retirement benefits;

    (2) For interest or dividend paying accounts--

________________________________________________________________________
(Name of annuitant) by
________________________________________________________________________
(Name of payee), representative payee.

    (c) Interest and dividend payments. The interest and dividends which 
result from an investment are the property of the annuitant and may not 
be considered to be the property of the representative payee.
    (d) Prohibition against commingling. The representative payee shall 
not commingle his or her personal funds with the representative 
payments. A representative payee may consolidate and maintain an 
annuitant's funds in an account with other annuitants if he or she 
maintains a separate, accurate and complete accounting of each 
annuitant's funds under his or her control.