[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: 20CFR229.65]



[Page 484-485]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 229_SOCIAL SECURITY OVERALL MINIMUM GUARANTEE--Table of Contents

 

  Subpart G_Reduction for Worker's Compensation or Disability Benefits 

              Under a Federal, State, or Local Law or Plan

 

Sec.  229.65  Initial reduction.





    (a) When reduction is effective. A benefit computed under the 

overall minimum based on disability (DIB O/M) is reduced (not below 

zero) for any month the employee is under retirement age and is entitled 

to worker's compensation or disability benefits under a Federal, State, 

or local law or plan (public disability benefit). The reduction is 

effective with the month the employee is



[[Page 485]]



entitled to worker's compensation or a public disability benefit.

    (b) When reduction is not made. A reduction for worker's 

compensation is not made if the law or plan under which the worker's 

compensation or public disability benefit is paid provides for the 

reduction of the benefit provided due to entitlement to a social 

security disability benefit, and so provided on February 18, 1981.

    (c) Amount of reduction. The reduction in the DIB O/M for worker's 

compensation or public disability benefit equals the difference between:

    (1) The sum of the monthly DIB O/M rate, including benefits for all 

family members (subject to the family maximum), plus the monthly 

worker's compensation or public disability benefit; and

    (2) The higher of 80 percent of the employee's average current 

earnings before becoming disabled or the monthly DIB O/M rate (before 

reduction for worker's compensation or public disability benefit).

    (d) Average current earnings, defined. Beginning January 1, 1979, an 

employee's average current earnings for purposes of this section are the 

highest of:

    (1) The average monthly wage (see Sec.  225.2 of this chapter) used 

to compute the DIB O/M under the Social Security Act rules which were in 

effect before 1979; or

    (2) One-sixtieth of the employee's total earnings from employment or 

self-employment under either the Social Security or Railroad Retirement 

Acts (including earnings that exceed the maximum used in computing 

social security benefits) for the 5 consecutive years after 1950 in 

which the earnings were the highest; or

    (3) One-twelfth of the employee's total earnings from employment or 

self-employment under either the Social Security or Railroad Retirement 

Acts (including earnings that exceed the maximum used in computing 

social security benefits) for the year of highest earnings in the period 

from 5 years before through the year in which the employee became 

disabled. The result is rounded to the next lower multiple of $1.00.