[Code of Federal Regulations]
[Title 20, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR226.51]

[Page 464]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
                  CHAPTER II--RAILROAD RETIREMENT BOARD
 
PART 226_COMPUTING EMPLOYEE, SPOUSE, AND DIVORCED SPOUSE ANNUITIES--Table of 
 
              Subpart D_Railroad Retirement Family Maximum
 
Sec.  226.51  Maximum monthly amount.

    The railroad retirement family maximum is equal to an employee's 
``final average monthly compensation'' (FAMC) up to \1/2\ of \1/12\ of 
the annual maximum tier I earnings as shown in part 224 of this chapter 
in the year the annuity begins plus 80 percent of so much of his or her 
FAMC as exceeds \1/2\ of \1/12\ of the tier I maximum in the year the 
annuity begins. For this purpose, the FAMC is determined by dividing the 
individual's total earnings up to the tier II earnings limit as shown in 
part 211 of this chapter for the two highest-earnings years out of the 
last 10 calendar years, including the year of retirement, by 24. The 
railroad retirement maximum cannot be more than the FAMC and cannot be 
less than $1,200.

    Example: An employee's annuity begins on December 2, 1982. He has 
yearly earnings that exceed the tier II annual maximum of $24,300 in 
1982 and $22,200 in 1981. The FAMC is the sum of the tier II maximum for 
1981 and 1982 divided by 24 ($24,300 + $22,200/24) or $1,937.50. The 
maximum which may be credited to a month for tier I in 1982 is $2,700. 
The family maximum is $1,350 (\1/2\ of \1/12\ of the annual tier I 
maximum) plus $470 (80% of the difference between $1,937.50 and $1,350) 
or $1,820.