[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: 20CFR255.8]



[Page 502]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 255_RECOVERY OF OVERPAYMENTS--Table of Contents

 

Sec.  255.8  Recovery by adjustment in connection with subsequent 

payments.



    (a) Recovery of an overpayment may be made by permanently reducing 

the amount of any annuity payable to the individual or individuals from 

whom recovery is sought. This method of recovery is called an actuarial 

adjustment of the annuity. The Board cannot require any individual to 

take an actuarial adjustment in order to recover an overpayment nor is 

an actuarial adjustment available as a matter of right. An actuarial 

adjustment becomes effective and the debt is considered recovered when, 

in the case of an individual paid by electronic funds transfer, the 

first annuity payment reflecting the annuity rate after actuarial 

adjustment is deposited to the account of the overpaid individual, or, 

in the case of an individual paid by check, the first annuity check 

reflecting the annuity rate after actuarial adjustment is negotiated.



    Example. An annuitant agrees to recovery of a $5,000 overpayment by 

actuarial adjustment. However, the annuitant dies before negotiating the 

first annuity check reflecting the actuarially-reduced rate. The $5,000 

is not considered recovered. If the annuitant had negotiated the check 

before he died, the $5,000 would be considered fully recovered.



    (b) In calculating any adjustment under this section, beginning with 

the first day of January after the tables and long-term or ultimate 

interest rate go into effect under section 15(g) of the Railroad 

Retirement Act (the triennial evaluation), the Board shall use those 

tables and long-term or ultimate interest rate.



[63 FR 29548, June 1, 1998]