[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: 20CFR266.10]



[Page 528]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 266_REPRESENTATIVE PAYMENT--Table of Contents

 

Sec.  266.10  Use of benefit payments.



    (a) Current maintenance. Payments made to an individual as 

representative payee on behalf of an annuitant shall be considered as 

having been applied for the use and benefit of the annuitant when they 

are used for the annuitant's current maintenance. Current maintenance 

includes costs incurred in obtaining food, shelter, clothing, medical 

care, and personal comfort items.



    Example: An aged annuitant is entitled to a monthly railroad 

retirement benefit of $800. His son, who is his representative payee, 

disburses his benefits in the following manner:

Rent and utilities..................................................$500

Medical...............................................................50

Food..................................................................80

Clothing(coat)........................................................90

Savings...............................................................60

Miscellaneous.........................................................20



    The above expenditures would represent proper disbursements on 

behalf of the annuitant.



    (b) Institutional care. If an annuitant is receiving care in a 

Federal, state, or private institution because of mental or physical 

incapacity, current maintenance includes the customary charges made by 

the institution in providing care and maintenance, as well as 

expenditures for those items which will aid in the annuitant's recovery 

or release from the institution or expenses for personal needs which 

will improve the annuitant's conditions while in the institution.

    (c) Support of legal dependents. If the current maintenance needs of 

the annuitant are met, the representative payee may use part of the 

payments for the support of the annuitant's legally dependent spouse, 

child, and/or parent.

    (d) Claims of creditors. Where a debt arose prior to the first month 

for which benefits are certified to a representative payee, the 

representative payee may satisfy such debt out of present benefit 

payments only if the current and reasonably foreseeable needs of the 

annuitant are met.



    Example: A retroactive railroad retirement annuity check in the 

amount of $2,100, representing benefits due for November 1989 through 

January 1990, was issued on behalf of the annuitant to the annuitant's 

daughter, who is the representative payee. The check was certified in 

February 1990. The nursing home, where the annuitant resides, is owed 

money for maintenance expenses the annuitant incurred prior to February 

1990.



    If the accrual is not required for the annuitant's current 

maintenance and the annuitant had no foreseeable needs which would 

require large disbursements, the expenditure of the accrual or part 

thereof for the past due maintenance charges would be consistent with 

the Board's guidelines.