[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: 20CFR266.10]

[Page 530]
 
                      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.