[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: 20CFR266.1]



[Page 523-524]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 266_REPRESENTATIVE PAYMENT--Table of Contents

 

Sec.  266.1  Introduction.









Sec.

266.1 Introduction.

266.2 Recognition by the Board of a person to act in behalf of another.

266.3 Information considered in determining whether to make 

          representative payments.

266.4 Information considered in selecting a representative payee.

266.5 Order of preference in selecting a representative payee.

266.6 Information to be submitted by a representative payee applicant; 

          face-to-face interview.

266.7 Accountability of a representative payee.

266.8 Advance notice of the determination to make representative 

          payment.

266.9 Responsibilities of a representative payee.

266.10 Use of benefit payments.

266.11 Conservation and investment of benefit payments.

266.12 Effect of matters or actions submitted or taken by legal 

          guardian, etc.

266.13 When a new representative payee will be selected.

266.14 When representative payment will be stopped.

266.15 Transfer of accumulated benefit payments.



    Authority: 45 U.S.C. 231k and 231f.



    Source: 59 FR 3992, Jan. 28, 1994, unless otherwise noted.





    (a) Explanation of representative payment. This part explains the 

principles and procedures that the Board follows in determining whether 

to make representative payment and in selecting a representative payee. 

It also explains



[[Page 524]]



the responsibilities that a representative payee has concerning the use 

of the funds which he or she receives on behalf of an annuitant. A 

representative payee may be either a person or an organization selected 

by the Board to receive benefits on behalf of an annuitant. A 

representative payee will be selected if the Board believes that the 

interest of an annuitant will be served by representative payment rather 

than direct payment of benefits. Generally, the Board will appoint a 

representative payee if it determines that the annuitant is not able to 

manage or direct the management of benefit payments in his or her 

interest.

    (b) Statutory authority. Section 12 of the Railroad Retirement Act 

provides that every annuitant and claimant shall be conclusively 

presumed to have been competent until the date on which the Board 

receives a notice in writing that a legal guardian or other person 

legally vested with the care of the person or estate of an incompetent 

or a minor has been appointed: Provided, however, That despite receiving 

such notice, the Board may, if it finds the interests of such annuitant 

or claimant to be served thereby, recognize actions by, conduct 

transactions with, and make payments to such annuitant or claimant.

    (c) Policy used to determine whether to make representative payment. 

(1) In accordance with section 12 of the Railroad Retirement Act, the 

Board's policy is that every annuitant has the right to manage his or 

her own benefits. However, some annuitants due to mental or physical 

condition or due to their youth may be unable to do so. If the Board 

determines that the interests of an annuitant would be better served if 

benefit payments were certified to another person as representative 

payee, the Board will appoint a representative payee in accordance with 

the procedures set forth in this part. The Board may appoint a 

representative payee even if the annuitant is a legally competent 

individual. If the annuitant is a legally incompetent individual, the 

Board may appoint the legal guardian or some other person as a 

representative payee.

    (2) If payment is being made directly to an annuitant and a question 

arises concerning his or her ability to manage or direct the management 

of benefit payments, the Board may, if the annuitant is 18 years old or 

older and has not been adjudged legally incompetent, continue to pay the 

annuitant until the Board makes a determination about his or her ability 

to manage or direct the management of benefit payments and the selection 

of a representative payee.