[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: 20CFR228.51]



[Page 474]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 228_COMPUTATION OF SURVIVOR ANNUITIES--Table of Contents

 

                 Subpart C_The Tier II Annuity Component

 

Sec.  228.51  Takeback amount.



    (a) The 1983 amendments to the Railroad Retirement Act provided that 

a portion of the cost-of-living increases payable on the tier I annuity 

component be offset from the amount of the tier II annuity. This amount 

is the takeback amount. The amount of the takeback and its application 

depends on the employee and survivor's annuity beginning dates.

    (b)(1) The tier II takeback amount for survivors whose annuity 

beginning date is January 1, 1984 or later is usually the amount of the 

employee's takeback amount. That amount is equal to 5 percent of the 

employee's primary insurance amount, less all applicable reductions (net 

tier I), on November 1, 1983. However, if the employee's annuity was 

reduced for a social security benefit but the survivor's annuity is not, 

the takeback amount is the amount the employee's annuity would have been 

reduced for the takeback if the employee's annuity had not been reduced 

for a social security benefit. If the employee's annuity had not been 

tiered or was being paid under the overall minimum, the Board will 

compute the amount of the tier II takeback that would have been 

applicable to the employee's annuity.

    (2) The tier II takeback amount for survivors whose annuity 

beginning date is before January 1, 1984 is equal to 5 percent of the 

survivor's net tier I annuity component, before deduction on account of 

work, on November 1, 1983.

    (3) The tier II takeback will be applied in accord with the above 

paragraphs in any case where the employee died or retired before January 

1, 1984. If the employee died or retires after December 31, 1983, or the 

employee never retired and dies after December 31, 1993, no takeback 

will be applied to the survivor's annuity.

    (c) No takeback is applied if the survivor tier II annuity amount 

before the takeback is applied is $10.00 or less and cost-of-living 

increases have not increased the tier II annuity amount to more than 

$10.00 (the takeback may never reduce the tier II to an amount less than 

$10.00).