[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: 20CFR234.40]



[Page 494]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 234_LUMP-SUM PAYMENTS--Table of Contents

 

                   Subpart D_Residual Lump-Sum Payment

 

Sec.  234.40  General.





    The residual lump-sum (RLS) is the means by which railroad employees 

and their survivors are guaranteed to receive at least as much in 

benefits as the employee paid in railroad retirement taxes during the 

years 1937 through 1974. An RLS payment can be made only if it appears 

that no other benefits based at least in part on railroad service will 

be payable under either the Railroad Retirement Act or Social Security 

Act in the future. The residual is reduced for any retirement benefits 

that were paid on the basis of the employee's railroad service, and for 

any survivor benefits based on the employee's earnings already paid by 

either the Board or the Social Security Administration. A widow(er) or 

dependent parent can, before attaining age 60, elect to waive future 

rights to monthly benefits based on the employee's railroad service in 

order to receive the RLS.