[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: 20CFR226.63]



[Page 463]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES

--Table of Contents

 

       Subpart E_Years of Service and Average Monthly Compensation

 

Sec.  226.63  Determining monthly compensation.



    (a) Based on yearly compensation. If Board records do not show 

monthly compensation for a year, the monthly compensation is determined 

by dividing the total compensation reported for the year by the number 

of months of service credited to the employee for that year.

    (b) For employee with government employment and no railroad service 

for 60-month period before annuity begins--(1) General. The compensation 

used in determining the average monthly compensation (AMC) is indexed 

for an employee who has not worked in the railroad industry for the 60-

month period before the month the employee's annuity begins and whose 

major employment during that period was for a government agency listed 

in Sec.  216.16 of this chapter. The compensation is indexed by 

multiplying it by the quotient obtained by dividing the average annual 

wage for the indexing year by the average annual wage for the year being 

indexed. If the month for which compensation is being indexed is before 

1951, the average annual wage for 1951 is used.

    (2) Indexing year defined. The indexing year is the second year 

before the year in which the annuity begins.



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