[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: 20CFR226.74]



[Page 465-466]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES

--Table of Contents

 

 Subpart F_Reduction for Workers' Compensation and Disability Benefits 

              Under a Federal, State, or Local Law or Plan

 

Sec.  226.74  Redetermination of reduction.



    (a) General. The average current earnings are redetermined in the 

second year after the year the reduction for other disability benefits 

was first applied and every third year after that. The redetermined 

amount is used only if it results in a lower reduction amount. The new 

reduction amount is effective with January of the year after the 

redetermination is made.

    (b) Redetermined average current earnings. The average current 

earnings are redetermined by multiplying the initial average current 

earnings amount by--

    (1) The average of the total wages (including wages that exceed the 

maximum used in computing social security benefits) of all persons for 

whom wages were reported to the Secretary of the Treasury for the year 

before the year of redetermination, divided by the average of the total 

wages reported to the Secretary of the Treasury for 1977 or, if later, 

the year before the year for which the reduction was first computed. If 

the result is not a multiple of



[[Page 466]]



$1, it is rounded to the next lower multiple of $1; or

    (2) If the reduction was first computed before 1978, the average of 

all taxable wages reported to the Secretary of Health and Human Services 

for the first quarter of 1977, divided by the average of all taxable 

wages reported to the Secretary of Health and Human Services for the 

first quarter of the year before the year for which the reduction was 

first computed. If the result is not a multiple of $1, it is rounded to 

the next lower multiple of $1.