[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: 20CFR255.4]



[Page 501-502]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 255_RECOVERY OF OVERPAYMENTS--Table of Contents

 

Sec.  255.4  Persons from whom overpayments may be recovered.



    (a) Overpaid individual. The Board may recover an overpayment from 

the individual to whom the overpayment has been made by any method 

permitted by this part, or by the Federal Claims Collection Standards (4 

CFR chapter 2) (Example 1 of this section). If the overpaid individual 

dies before recovery is completed, then recovery may be effected by 

recovery from the estate or the heirs of such individual.

    (b) Other than overpaid individual. The Board may recover an 

overpayment from a person other than the overpaid individual if such 

person is receiving benefits based upon the same record of compensation 

as the overpaid individual under a statute administered by the Board. In 

such a case, the Board will ordinarily recover the overpayment by setoff 

against such benefits as are provided for in Sec.  255.6 of this part 

(Example 2 of this section). However, the Board may ask for a cash 

refund of the overpayment.

    (c) Individual not in the same household. Recovery under paragraph 

(b) of this section may be made from an individual who was not living in 

the same household, as defined in part 216 of this chapter, as the 

overpaid individual at the time of the overpayment, if the individual 

from whom recovery is to be made either was aware that benefits were 

being paid incorrectly or benefitted from the overpayment. (Example 3 of 

this section).

    (d) Examples. This section may be illustrated by the following 

examples:



    Example (1). An employee receiving a disability annuity returns to 

work without notifying the Board. The Board discovers that the employee 

is working and determines that the employee has recovered from his 

disability and has been overpaid. The Board requests that the employee 

repay the overpayment by cash refund either in one lump sum or in 

installment payments. If the employee refuses, the Board may refer the 

debt to a collection agency or the Department of Justice for civil suit 

or may collect the debt in any other manner permitted by law.

    Example (2). The employee in Example 1 agrees to refund the 

overpayment by cash installment payments. However, the employee dies 

before repaying the total amount of the overpayment. At his death the 

employee's widow, who was living with the employee at the time the 

overpayment was incurred, becomes entitled to a widow's annuity. The 

Board may recover the remainder of the overpayment from any benefits due 

the widow.

    Example (3). C, a child of a deceased employee by his first 

marriage, is receiving a disability annuity on the employee's record of 

compensation. W, the employee's second wife, is receiving a widow's 

annuity on the



[[Page 502]]



employee's record of compensation. C lives with his mother, the 

employee's first wife. C marries without notifying the Board. Marriage 

terminates a child's annuity. W is not aware of C's marriage. Upon 

discovery of C's marriage, the Board demands that C refund the overpaid 

annuities; C refuses. Even though W is receiving an annuity based upon 

the same record of compensation as that of C, the Board will not recover 

the overpayment from W because she is not in the same household as C, 

was not aware of the incorrect benefits paid, and did not benefit from 

them.