[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: 20CFR255.8]

[Page 504]
 
                      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]