[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: 20CFR226.51]



[Page 462]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES

--Table of Contents

 

              Subpart D_Railroad Retirement Family Maximum

 

Sec.  226.51  Maximum monthly amount.



    The railroad retirement family maximum is equal to an employee's 

``final average monthly compensation'' (FAMC) up to \1/2\ of \1/12\ of 

the annual maximum tier I earnings as shown in part 224 of this chapter 

in the year the annuity begins plus 80 percent of so much of his or her 

FAMC as exceeds \1/2\ of \1/12\ of the tier I maximum in the year the 

annuity begins. For this purpose, the FAMC is determined by dividing the 

individual's total earnings up to the tier II earnings limit as shown in 

part 211 of this chapter for the two highest-earnings years out of the 

last 10 calendar years, including the year of retirement, by 24. The 

railroad retirement maximum cannot be more than the FAMC and cannot be 

less than $1,200.



    Example: An employee's annuity begins on December 2, 1982. He has 

yearly earnings that exceed the tier II annual maximum of $24,300 in 

1982 and $22,200 in 1981. The FAMC is the sum of the tier II maximum for 

1981 and 1982 divided by 24 ($24,300 + $22,200/24) or $1,937.50. The 

maximum which may be credited to a month for tier I in 1982 is $2,700. 

The family maximum is $1,350 (\1/2\ of \1/12\ of the annual tier I 

maximum) plus $470 (80% of the difference between $1,937.50 and $1,350) 

or $1,820.