[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: 20CFR226.30]



[Page 458-459]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES

--Table of Contents

 

         Subpart C_Computing a Spouse or Divorced Spouse Annuity

 

Sec.  226.30  Spouse or divorced spouse tier I.





    (a) General. The tier I of a spouse or divorced spouse annuity is an 

amount similar to the social security benefit the spouse or divorced 

spouse would receive based on the employee's combined railroad and 

social security earnings. In the case of an employee who retires before 

age 62 with 30 years of service, the spouse tier I is simply 50% of the 

employee tier I until the first month throughout which both the employee 

and spouse are age 62 at which time the tier I is an amount similar to 

the social security benefit on the employee's combined railroad and 

social security earnings.

    (b) Reduction for other disability benefits. The spouse or divorced 

spouse tier I may be adjusted for other disability benefits received by 

a disabled employee, as shown in Sec. Sec.  226.70-226.74 of this part.

    (c) Reduction for government pension. The amount in paragraphs (a) 

or (b) of this section is reduced (but not below zero) by the amount of 

any government pension payable on the spouse's or divorced spouse's 

earnings record, as described in Sec.  226.31 of this part.

    (d) Rounding. The last tier I rate from paragraph (a), (b) or (c) of 

this section, if not a multiple of $1, is rounded to the next lower 

multiple of $1. However, in cases in which the spouse is in receipt of 

an age reduced 60/30 annuity or in which the employee with 30 years of 

service began a disability annuity July 1, 1984, or later, the spouse 

tier I is not rounded until all reductions have been made. See Sec.  

226.10(a).

    (e) Age reduction. If the spouse or divorced spouse is entitled to a 

reduced age annuity (see Sec. Sec.  216.51 and 216.52 of this chapter), 

the rounded tier I rate from paragraph (d) of this section is multiplied 

by a fraction for each month the spouse or divorced spouse is under 

retirement age on the date the annuity begins. The result is subtracted 

from the rate from paragraph (d) of this section. At present the 

fraction is 25/36 of 1% (or 1/144). In the case of an employee with 30 

years of service who is awarded a disability annuity on July 1, 1984, or 

later, where the spouse does not have a child of the employee under age 

18 in care, the spouse tier I is reduced for each month the spouse is 

under retirement age on the date the spouse annuity begins. If the 

spouse is age 60 or 61, he or she is deemed to be age 62 for purposes of 

the age reduction. The age reduction is applied before reduction for a 

government pension.

    (f) Reduction for social security benefit. The previous tier I rate, 

from paragraph (d) or (e) of this section, is reduced by the amount of 

any monthly benefit payable to the spouse or divorced spouse under title 

II of the Social Security Act. The social security benefit used to 

reduce tier I may be an age or disability benefit on the spouse's



[[Page 459]]



or divorced spouse's own earnings record, a benefit based on the 

earnings record of another person, or the total of two types of 

benefits. The result cannot be less than zero.

    (g) Reduction for employee annuity. If the spouse or divorced spouse 

is entitled to an employee annuity on his or her own wage record, the 

spouse or divorced spouse tier I is reduced for the spouse's own 

employee annuity as follows:

    (1) Spouse. If either the employee or the spouse had some railroad 

service before 1975, the previous tier I rate from paragraphs (d) 

through (f) of this section, whichever applies, is reduced (but not 

below zero) by the spouse's own employee tier I rate, as computed under 

Sec.  226.10 of this part. If both the employee and spouse began 

railroad service after 1974, the spouse's total annuity rate, as shown 

in Sec.  226.33, is reduced (but not below zero) by the spouse's own 

employee total annuity rate, as shown in Sec.  226.14. These reductions 

are effective from the later of the date the employee or spouse annuity 

begins.

    (2) Divorced spouse. The previous tier I rate from paragraphs (d) 

through (f) of this section, whichever applies, is reduced (but not 

below zero) by the divorced spouse's own employee total annuity rate as 

shown in Sec.  226.14.



    Example: The computation of the spouse tier I may be illustrated as 

follows: A railroad employee's wife who was born on September 16, 1920, 

becomes entitled to a spouse annuity on October 1, 1982. She is also 

entitled to a social security benefit of $190 a month effective October 

1, 1982. Her husband's employee tier I PIA is $712.60. The spouse tier I 

is $356.30 (50 percent of $712.60). This is rounded down to $356. Since 

she is 35 months under age 65, the present retirement age when the 

annuity begins, $356 is multiplied by 35/144, to produce an age 

reduction of $86.53 and a tier I rate after age reduction of $269.47. 

Her final tier I rate effective October 1, 1982, after reduction for 

social security benefits, is $79.47 ($269.47 -$190.00).