[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: 20CFR211.2]



[Page 204-205]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 211_CREDITABLE RAILROAD COMPENSATION--Table of Contents

 

Sec.  211.2  Definition of compensation.



    (a) The term compensation means any form of payment made to an 

individual for services rendered as an employee for an employer; 

services performed as an employee representative; and any separation or 

subsistence allowance paid under any benefit schedule provided in 

conformance with title VII of the Regional Rail Reorganization Act of 

1973 and any termination allowance paid under section 702 of that Act. 

Compensation may be paid as money, a commodity, a service or a 

privilege. However, if an employee is to be paid in any form other than 

money, the employer and employee must agree before the service is 

performed upon the following:

    (1) The value of the commodity, service or privilege; and

    (2) That the amount agreed upon to be paid may be paid in the form 

of the commodity, service or privilege.

    (b) Compensation includes, but is not limited to, the following:

    (1) Salary, wages and bonuses;

    (2) Pay for time lost as an employee;

    (3) Cash tips of $20 or more received in a calendar month;

    (4) Vacation pay;

    (5) Military pay as determined in Sec.  211.7 of this part;

    (6) Displacement allowances as provided for in Sec.  211.8 of this 

part;

    (7) Dismissal allowances as provided for in Sec.  211.9 of this 

part;

    (8) Separation allowances as provided for in Sec.  211.10 of this 

part;

    (9) Miscellaneous pay as provided for in Sec.  211.11 of this part;

    (10) Payments made under title VII of the Regional Rail 

Reorganization Act of 1973 as provided for in Sec. 211.12 of this part.

    (11) Payments paid to an employee or employee representative which 

are subject to tax under section 3201(a) or 3211(a) of the Internal 

Revenue Code of 1954 are creditable as compensation under the Railroad 

Retirement Act for purposes of computation of benefits under sections 

3(a)(1), 3(f)(3), 4(a)(1) and 4(f)(1).

    (12) Voluntary payments of any tax by an employer, without deducting 

such tax from the employee's salary.

    (13) Payments made by an employer with respect to a deceased 

employee except as provided for in Sec.  211.13 of this part.

    (c) Compensation does not include:

    (1) Tips, except as provided in paragraph (b)(3) of this section;

    (2) Payments for services performed by a nonresident alien for the 

period the individual is temporarily present in the United States as a 

nonimmigrant



[[Page 205]]



under subparagraph (F) or (J) of section 1101(a)(15) of title 8, U.S.C. 

and which is performed to carry out the purpose specified in 

subparagraph (F) or (J), as the case may be;

    (3) Remuneration paid in certain cases, as described below, for 

services performed for a local lodge or division of a railway labor 

organization.

    (i) Remuneration for services rendered for a local lodge or division 

of a railway labor organization which was earned after 1936 and prior to 

April 1, 1940, shall not be creditable as compensation in a month unless 

taxes with respect to such remuneration were paid under the Railroad 

Retirement Tax Act prior to July 1, 1940.

    (ii) Remuneration for services rendered for a local lodge or 

division of a railway labor organization which was earned after March 

31, 1940, and prior to January 1, 1975, shall not be creditable as 

compensation in a month if the amount of such remuneration earned in the 

month is less than $3.00.

    (iii) Remuneration for services rendered for a local lodge or 

division of a railway labor organization which was earned after December 

31, 1974, shall not be creditable as compensation in a month if the 

amount of such remuneration earned in the month is less than $25.00.

    (4) Payments for service as a delegate to a national or 

international convention of a railway-labor-organization employer if the 

individual rendering the service has not previously rendered service, 

other than as a delegate, which may be included in the individual's 

years of service;

    (5) Except as provided in Sec.  211.2(b)(11), the amount of any 

payment (including any amount paid by an employer for insurance or 

annuities, or into a fund, to provide for any such payment) made to, or 

on behalf of, an employee or any of the employee's dependents under a 

plan or system established by an employer which makes provisions for 

employees generally (or for employees generally and their dependents), 

or for a class or classes of employees (or for a class or classes of 

employees and their dependents), on account of sickness or accident 

disability, or medical, or hospitalization expenses in connection with 

sickness or accident disability; and

    (6) Any amount paid specifically--either as an advance, as 

reimbursement or allowance--for traveling or other bona fide and 

necessary expenses incurred, or reasonably expected to be incurred in 

the business of the employer, provided the payment is identified by the 

employer either by a separate payment or by specifically indicating the 

separate amounts where both wages and expense reimbursement or allowance 

are combined in a single payment.



[49 FR 46732, Nov. 28, 1984, as amended at 53 FR 17184, May 16, 1988; 58 

FR 45251, Aug. 27, 1993]