[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: 20CFR266.11]



[Page 528-529]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 266_REPRESENTATIVE PAYMENT--Table of Contents

 

Sec.  266.11  Conservation and investment of benefit payments.



    (a) General. If benefit payments made to a representative payee are 

not needed for the annuitant's current maintenance or reasonably 

foreseeable needs or the support of legal dependents or to pay creditors 

in accordance with Sec.  266.10, they shall be conserved or invested on 

behalf of the annuitant. Such funds must be invested in accordance with 

the rules applicable to investment of trust estates by trustees. Any 

investment must show clearly that the representative payee holds the 

property in trust for the annuitant.

    (b) Preferred investments. Preferred investments for excess funds 

are deposits in an interest or dividend paying account in a bank, trust 

company, credit union, or savings and loan association which is insured 

under either Federal or State law, direct obligations of the United 

States Government or obligations for which both principal and interest 

are guaranteed unconditionally by the United States Government. The 

account must be in a form which shows clearly that the representative 

payee has only a fiduciary, and not a personal, interest in the funds. 

If the payee is the legally appointed guardian



[[Page 529]]



or fiduciary of the annuitant, the account may be established to 

indicate this relationship. If the payee is not the legally appointed 

guardian or fiduciary, the accounts may be established as follows:

    (1) For U.S. Savings Bonds--



________________________________________________________________________

(Name of annuitant)

________________________________________________________________________

(Social Security Number), for whom

________________________________________________________________________

(Name of payee)



is representative payee for Railroad Retirement benefits;



    (2) For interest or dividend paying accounts--



________________________________________________________________________

(Name of annuitant) by

________________________________________________________________________

(Name of payee), representative payee.



    (c) Interest and dividend payments. The interest and dividends which 

result from an investment are the property of the annuitant and may not 

be considered to be the property of the representative payee.

    (d) Prohibition against commingling. The representative payee shall 

not commingle his or her personal funds with the representative 

payments. A representative payee may consolidate and maintain an 

annuitant's funds in an account with other annuitants if he or she 

maintains a separate, accurate and complete accounting of each 

annuitant's funds under his or her control.