[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: 20CFR227.5]



[Page 468]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 227_COMPUTING SUPPLEMENTAL ANNUITIES--Table of Contents

 

Sec.  227.5  Employer tax credits.



    Employers are entitled to tax credits if they pay non-negotiated 

pensions to former employees whose supplemental annuities are reduced 

because of the pensions. Non-negotiated pensions are paid under pension 

plans that are not established by collective bargaining agreements. The 

tax credits for each month equal the sum of the reductions for employer 

pensions in the supplemental annuities of all former employees for that 

month. The Board sends a report of total tax credits to each employer 

after the end of each calendar quarter. The credits are applied to the 

man-hour supplemental annuity tax the employer pays the Internal Revenue 

Service under section 3221 of the Railroad Retirement Tax Act.