[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: 20CFR225.11]



[Page 445-446]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 225_PRIMARY INSURANCE AMOUNT DETERMINATIONS--Table of Contents

 

 Subpart B_PIA's Used in Computing Employee, Spouse and Divorced Spouse 

                                Annuities

 

Sec.  225.11  Tier I PIA.



    (a) General. The Tier I PIA is used in computing an employee, spouse 

or divorced spouse tier I amount. Except for the cases described in 

paragraphs (b) through (d) of this section, a Tier I PIA is determined 

under sections 215 and 223 of the Social Security Act. Railroad



[[Page 446]]



and Social Security earnings are included in the calculation of a Tier I 

PIA.

    (b) Employee attains age 60 and/or acquires 30 years of service 

after June 30, 1984. When an employee is entitled to an age and service 

annuity before the month of attaining age 62, as explained in part 216 

of this chapter, the following Railroad Retirement Act rules apply in 

addition to those in Sec.  225.11(a) in computing the Tier I PIA.

    (1) Four months before the first full month the employee is age 62, 

the Average Indexed Monthly Earnings is determined as if the employee's 

eligibility year were the year the annuity began.

    (2) The benefit computation years used in computing the Tier I PIA 

are based on the date of the employee's actual attainment of age 62.

    (3) The Tier I PIA is adjusted when the employee reaches age 62 to 

use the year in which the employee attains age 62 as the eligibility 

year.

    (4) Cost-of-living increases and recomputations apply after the 

employee attains age 62.

    (c) Employee attains age 60 and acquires 30 years of service before 

July 1, 1984. For purposes of determining the benefit computation years 

to be used in computing the Tier I PIA for an employee who is age 60 

through 64, and who both has 30 years of service and attains age 60 

prior to July 1, 1984, the employee is considered to be age 65 when the 

age and service annuity begins. For purposes of computing the Average 

Indexed Monthly Earnings, the eligibility year is the year the annuity 

begins or age 62, if earlier. Cost-of-living increases are paid from the 

year the annuity begins. Recomputations are paid after the employee 

actually attain age 62.

    (d) Disability annuity. When an employee is entitled to a disability 

annuity, as explained in subpart B of part 216 of this chapter, the 

following Railroad Retirement Act rule applies in addition to those in 

Sec.  225.11(a) in computing the Tier I PIA. The Tier I PIA is computed 

as if the employee were 62 years old on the date, as determined by the 

Board, of onset of disability, if the employee is under age 62 on that 

date.