[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: 20CFR234.20]



[Page 493]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 234_LUMP-SUM PAYMENTS--Table of Contents

 

                    Subpart B_Lump-Sum Death Payment

 

Sec.  234.20  Computation of the employee's 1937 Act LSDP basic amount.



    (a) Definition of terms used in this section:

    Average monthly remuneration (AMR) means the amount obtained by 

adding together the creditable compensation and wages earned by the 

employee after 1936 and before the LSDP closing date and dividing that 

sum by three times the number of calendar quarters in that period. 

(Refer to part 211 of this chapter for a definition of creditable 

compensation and section 209 of the Social Security Act for a definition 

of creditable wages.)

    Closing date means whichever of the following produce the highest 

AMR:

    (1) The first day of the calendar year in which the employee both 

attained age 65 and was completely insured;

    (2) The first day of the calendar year in which the employee died; 

or

    (3) The first day of the calendar year following the year in which 

the employee died;

    (4) However, if paragraphs (a)(1) through (3) of this definition do 

not occur before January 1, 1975, the closing date is January 1, 1975.

    (b) LSDP basic amount formula. The basic amount is computed using 

the following formula:

    (1) Determine 52.4% of the AMR up to and including $75.00;

    (2) Determine 12.8% of the AMR exceeding $75.00;

    (3) Determine 1% of the sum of paragraphs (b)(1) and (2) of this 

section;

    (4) Multiply the result of paragraph (b)(3) of this section by the 

number of years after 1936 through 1974 in which the employee earned 

$200 or more;

    (5) Add the results of paragraphs (b)(1), (2) and (3) of this 

section. If the resulting basic amount is less than $18.14, increase it 

to $18.14.