[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: 20CFR322.9]

[Page 536-537]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 322_REMUNERATION--Table of Contents
 
Sec. 322.9  Subsidiary remuneration.

    (a) Definition.The term ``subsidiary remuneration'' means 
remuneration not in excess of an average of $15 per day for the period 
with respect to which it is payable or accrues, if
    (1) The work from which the remuneration derives requires 
substantially less than full time as determined by generally prevailing 
standards; and
    (2) The work is susceptible of performance at such times and under 
such circumstances as not to be inconsistent with the holding of normal 
full-time employment in another occupation.
    (b) Exception. If a claimant's remuneration is ``compensation'' as 
defined in part 302 of this chapter, such remuneration is not subsidiary 
unless the claimant had base year compensation from a different position 
or occupation of not less than two and one-half times the monthly 
compensation base for months in the base year in which he or she 
received the remuneration. Compensation in excess of an average of $15 
per day is remuneration for the days for which it is payable or accrues.
    (c) Period for which remuneration is payable or accrues. The 
``period'' of time

[[Page 537]]

used in determining whether remuneration averages more than $15 per day 
depends on the terms and conditions of the employment and the rate of 
payment for the work. If the claimant is paid a monthly salary, the 
``month'' is the period with respect to which the pay must average not 
more than $15 per day. The average is the monthly salary divided by 30. 
If the claimant is paid a weekly salary, the amount of the salary is 
divided by seven. If the claimant is paid by the hour or the day, the 
``period'' is the day. Where payment is made by the hour or the day, the 
pay is not added up and then averaged out over the week or the month. 
For example, earnings of $20 on one day and $10 on another day do not 
average out to $15 per day so as to permit both days to be considered as 
days of unemployment or days of sickness.
    (d) Substantially less than full time. The phrase ``substantially 
less than full time'' means employment of not more than four hours per 
day.
    (e) Compatibility with full time employment. Work is considered to 
be susceptible of performance at such times and under such circumstances 
as not to be inconsistent with the holding of normal full-time 
employment in another position or occupation if it is a form of 
secondary employment that a claimant has done or could do at his or her 
own convenience while performing the duties of his or her railroad job.
    (f) Determinations. The Board shall make a determination whether 
remuneration is subsidiary by applying the standards in this section to 
the facts of each case. Earnings that average more than $15 per day are 
not subsidiary remuneration under any circumstances. Also, earnings of 
any amount that are included in a claimant's qualifying base year 
compensation are not subsidiary remuneration. Even if earnings do not 
exceed an average of $15 per day, they may still not be subsidiary 
remuneration if the claimant worked more than four hours per day or if 
the work had to be performed at such times and under such circumstances 
as to be inconsistent with the holding of normal full-time work in his 
or her regular railroad work. If the evidence does not establish that 
the earnings are subsidiary remuneration, the question whether they are 
remuneration for particular days will then be considered.
    (g) Examples. The following examples illustrate this section.
    (1) A claimant receives a salary of $350 per month for serving as 
secretary-treasurer of the local lodge of his union. He performs a 
variety of duties at his own convenience while holding down a full-time 
railroad job in his craft. The average payment per day is not more than 
$15 and is, therefore, subsidiary remuneration.
    (2) A claimant worked three hours per day, at $5 per hour, in the 
family insurance business. He was marked up for work as an extra board 
trainman and worked whenever he was called. When called, he skipped work 
in the family insurance business. His insurance earnings of $15 per day 
were subsidiary remuneration.
    (3) While unemployed from her railroad job, a claimant took a job as 
a school bus driver. She worked from 7 a.m. to 9 a.m., and 2:30 p.m. to 
5:30 p.m. Her regular railroad job was a daytime job from 8 a.m. to 4:30 
p.m. Her pay as a school bus driver was not subsidiary remuneration 
because the job was not compatible with the holding of full time work in 
her regular railroad occupation.

[65 FR 14460, Mar. 17, 2000]