[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: 20CFR216.42]



[Page 219]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 216_ELIGIBILITY FOR AN ANNUITY--Table of Contents

 

                     Subpart E_Supplemental Annuity

 

Sec.  216.42  How a private railroad pension affects a supplemental 

annuity.



    (a) What is a private railroad pension. The Board determines whether 

a pension established by a railroad employer is a private pension that 

will cause a reduction in the employee's supplemental annuity. A private 

pension for purposes of this subpart is a plan that:

    (1) Is a written plan or arrangement which is communicated to the 

employees to whom it applies;

    (2) Is established and maintained by an employer for a defined group 

of employees; and

    (3) Provides for the payment of definitely determinable benefits to 

employees over a period of years, usually for life, after retirement or 

disability. Such a plan is sometimes referred to as a defined benefit 

plan.

    (b) Defined contribution plan. A plan under which the employer is 

obligated to make fixed contributions to the plan regardless of profits 

(sometimes known as a money purchase plan) is a private pension plan. A 

plan under which the employer's contributions are discretionary is not a 

private pension plan under this section.

    (c) Other than retirement benefits. A plan which provides benefits 

not customarily considered retirement benefits (such as unemployment 

benefits, sickness or hospitalization benefits) is not a private pension 

plan under this section.

    (d) Effective date of private railroad pension for supplemental 

annuity purposes. A private pension reduces a supplemental annuity 

payment effective on the first day of the month after the month the 

Board determines that it is a private pension as defined in paragraph 

(a) of this section.

    (e) Effect of private railroad pension. A supplemental annuity is 

reduced by the amount of any private pension the employee is receiving 

which is attributable to an employer's contributions, less any amount by 

which the private pension is reduced because of the supplemental 

annuity. The supplemental annuity is not reduced for the amount of a 

private pension attributable to the employee's contributions. The Board 

will determine the amount of a private pension for any month which is 

attributable to the employee's contributions.