[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: 20CFR229.67]



[Page 485-486]

 

                      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.  229.67  Redetermination of reduction.



    (a) General. All cases reduced for worker's compensation or public 

disability benefit are recomputed in the second year after the year the 

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

redetermined rate is effective with January of the year after the year 

the redetermination is made. The redetermined reduction is used only if 

it provides an annuity rate that is higher than the previous annuity 

rate.

    (b) Redetermined average current earnings. The average current 

earnings amount used in redetermining a worker's compensation or public 

disability



[[Page 486]]



benefit reduction is determined by multiplying the initial average 

current earnings amount by:

    (1) The average 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 or redetermination, divided by the average total wages for 1977 

or, if later, the year before the year the reduction was first computed. 

If the result is not a multiple of $1.00, it is rounded to the next 

lower multiple of $1.00; or

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

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

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

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

computed. If the result is not a multiple of $1.00, it is rounded to the 

next lower multiple of $1.00.