20 C.F.R. PART 229—SOCIAL SECURITY OVERALL MINIMUM GUARANTEE
Title 20 - Employees' Benefits
Authority: 45 U.S.C. 231(f)(b)(5).
Source: 58 FR 53397, Oct. 15, 1993, unless otherwise noted.
This part explains when an annuity can be increased under the social security overall minimum guarantee, also sometimes referred to as the “special guaranty”, and how the increased amount is determined. Deductions and reductions in the overall minimum rate are explained. The following definitions are used in this part: Annuity means a payment under the Railroad Retirement Act due and payable to an entitled claimant for a calendar month and made to him or her on the first day of the following month. The recipient of an annuity is called an annuitant. Average Indexed Monthly Earnings or AIME means the average of the employee's monthly creditable earnings in both railroad and social security covered employment in the years used in computing the Primary Insurance Amount, after the earnings are adjusted or “indexed”. The indexing is a means of expressing prior years earnings in terms of their current dollar value. It is based on increases in the average wages of all wage earners from 1951 although the second year before the year the worker dies or becomes eligible for benefits. Contribution and benefit base means the maximum earnings used in computing a social security benefit under section 230 of the Social Security Act. 1974 Act means the Railroad Retirement Act approved October 16, 1974, including all amendments. Railroad formula rate means the amount computed in accord with the regular railroad computations (sections 3(a), 3(b) and 3(h) of the Railroad Retirement Act). Retirement age means age 65, with respect to an employee or spouse who attains age 62 before January 1, 2000 (age 60 in the case of a widow(er), remarried widow(er) or surviving divorced spouse). For an employee or spouse who attains age 62 (or age 60 in the case of a widow(er), remarried widow(er), or surviving divorced spouse) after December 31, 1999, retirement age means the age provided for in section 216(l) of the Social Security Act. This part is related to a number of other parts of this chapter (listed numerically): Part 216 describes when a person is eligible for an annuity under the Railroad Retirement Act. Part 217 describes how to apply for an annuity or for lump-sum payments. Part 218 sets forth the beginning and ending dates of annuities. Part 219 sets out what evidence is necessary to prove eligibility and the relationships described in this part. Part 220 describes when a person is eligible for a disability annuity under the Railroad Retirement Act or a period of disability under the Social Security Act. Part 222 describes the family relationships which may cause an annuity to be increased under this part. Part 225 explains how Primary Insurance Amounts (PIA's) are computed. The Board may require an annuitant to provide information regarding his or her family and regarding his or her earnings from employment and self-employment in order to determine whether the claimant or annuitant qualifies for the overall minimum. The social security overall minimum guarantee is the amount of total family benefits which would be paid under the Social Security Act if the employee's railroad service had been covered by that Act. A 100 percent overall minimum benefit may be paid, as described in §229.11. A 100 percent overall minimum based on age (age O/M) may be payable when the employee is 62 years old. The age O/M is reduced for age for months in which the O/M is payable before the employee attains retirement age. An overall minimum may also be payable before age 62 based on an employee's disability (DIB O/M). The DIB O/M is not reduced for age. Section 3(f)(3) of the 1974 Act guarantees that the total annuities payable to the employee and spouse, including the vested dual benefits but not including a supplemental annuity, will not be less than 100 percent of the total family benefits payable under the Social Security Act if the employee's railroad service after 1936 were credited as social security earnings. Subpart F describes how the 100 percent overall minimum rate is computed. (a) Overall minimum based on age. An employee annuity can be increased under the age O/M if all the following conditions are met: (1) The employee is entitled to an age or disability annuity as shown in part 216 of this chapter. (2) The employee is at least 62 years old throughout the whole month. The O/M is reduced for each month it is payable before the month the employee attains retirement age. (3) The employee is fully insured under section 214 or 227 of the Social Security Act based on railroad and social security earnings. (b) Overall minimum based on disability. An employee annuity can be increased under the DIB O/M if the employee is under retirement age, and (1) Is entitled to an age or disability annuity; and (2) Is disabled under §404.1505 of this title; and (3) Is insured for a disability benefit under §404.130 of this title based upon combined railroad and social security earnings. (c) Spouse with child in care or spouse retirement age or older. If the employee has not attained the age required to qualify the spouse for a spouse annuity but the employee meets the conditions of paragraph (a) or (b) of this section, the employee annuity can be increased under the overall minimum if: (1) The employee and spouse complete the required statements concerning the family and earnings as provided for in §229.4 of this part; and (2) The spouse meets the marriage requirements as provided for in part 222 of this chapter; and (3) The spouse has an eligible child in care, or the spouse is retirement age or older. (d) Spouse election. If the employee has not attained the age required to quality the spouse for a spouse annuity but the employee meets the conditions of paragraph (a) or (b) of this section, the employee annuity can be increased under the overall minimum if: (1) The employee and spouse complete the required statements concerning the family and earnings as provided for in §229.4 of this part; and (2) The spouse meets the marriage requirements as provided for in part 222 of this chapter; and (3) The spouse is between age 62 and retirement age and does not have a child in care; and (4) The spouse files an election to be included. Normally, only the employee annuity receives the amount of the overall minimum increase. However, a spouse annuity may be increased under the O/M in cases in which the O/M benefit amount exceeds the total amount of the employee and spouse annuity. (a) Employee age O/M. An increase under the overall minimum in an employee annuity based on age can be paid beginning with the later of: (1) The first day of the first full month throughout which the employee is age 62; or (2) The beginning date of the employee's age or disability annuity; or (3) The first month of the quarter in which the employee becomes insured under section 214 or 227 of the Social Security Act based on railroad and social security earnings; or (4) The month the employee attains retirement age, if a DIB O/M was paid in the previous month. A DIB O/M is changed to an age O/M in the month the employee attains retirement age. (b) Employee DIB O/M. An increase under the overall minimum in an employee annuity based on disability can be paid beginning with the later of— (1) The beginning date of the employee's disability annuity; or (2) The month after the month in which the disability waiting period described in §404.315(d) of this title ends; or (3) If no disability waiting period is required, the first month in which the employee is disabled and is insured for a disability benefit under §404.130 of this title. (c) Spouse. An increase in a spouse annuity under the overall minimum can be paid on the later of: (1) The date the increase in the employee's annuity is paid; or (2) The date the spouse is both eligible under the O/M and entitled to a spouse annuity. (a) Spouse. In order to be included as a spouse in the computation of the overall minimum rate, a person must be the employee's wife or husband, as defined in part 222 of this chapter, as of the date described in §229.31 of this part. The spouse must also be 62 years or older throughout the whole month in which he or she is first included or have the employee's child who is under 16 years old or disabled (before attaining age 22) in his or her care. If a spouse is 62 years old or older and under retirement age, and does not have an eligible child in his or her care, the spouse will be included only if he or she requests the payment of a reduced spouse annuity. (b) Child. In order to be included as a child in the computation of the overall minimum, a person must meet the following requirements as of the date described in §229.32 of this part. The person must be: (1) The employee's child as defined in part 222 of this chapter; and (2) Dependent on the employee, as shown in part 222 of this chapter; and (3) Not married; and either (4) Under 18 years old, or 18 years old to 19 years old and a full-time student, as defined in part 216 of this chapter, or 18 years old or older and disabled for any regular employment (see part 220 of this chapter) before attaining age 22. (c) Divorced spouse. In order to be included as a divorced spouse in the computation of the overall minimum, a person must be eligible for a benefit as a divorced spouse under the Railroad Retirement Act as of the date described in §229.33 of this part. (a) A spouse who is married to the employee when the employee's application is filed can be included in the computation of the overall minimum rate beginning in the later of the month in which: (1) The employee first is eligible for an increase in his or her annuity under the overall minimum, as shown in §229.22 of this part; or (2) The spouse first becomes eligible to be included under the overall minimum, as shown in §229.30 of this part. (b) A spouse who marries the employee after the employee application is filed can be included in the overall minimum computation in the month in which he or she becomes eligible, as shown in §229.30 of this part, if the overall minimum rate is already payable in the previous month. If the railroad formula rate is payable in the month before the spouse becomes eligible, the spouse can be included in the overall minimum computation in the later of the month in which: (1) The employee first is eligible for an increase in his or her annuity rate under the overall minimum, as shown in §229.22; or (2) The spouse annuity begins. A child who meets the requirements of §229.30(b) of this part can be included in the computation of the overall minimum rate in the month in which: (a) The employee first is eligible for an increase in his or her annuity rate under the overall minimum, as shown in §229.22 of this part; or (b) In the case of a child born or adopted by the employee after the employee's annuity beginning date, such child can be included only when the overall minimum rate is already payable in the month before the month in which the child is born, or adopted except where: (1) The child is born or adopted prior to the employee's attaining age 62 or becoming eligible for a period of disability (see §220.36 of this chapter); or (2) The child who is adopted after the employee's annuity beginning date meets the dependency requirements set forth in §222.53 of this chapter. (c) In the case of a child who has attained age 18 and has become re-entitled as a full-time student or disabled child, as described in §229.30 of this part, such child can only be included when the overall minimum rate is already payable in the month before the month the child becomes re-entitled. A divorced spouse annuitant can be included in the computation of the overall minimum rate in the later of the month in which: (1) The employee first is eligible for an increase in his or her annuity rate under the overall minimum, as shown in §229.22; or (2) The divorced spouse annuity begins. (a) Employee Age O/M. An increase in an employee's annuity under the overall minimum based on age ends with the month before the month in which the employee dies. If a disability annuity is increased under the overall minimum based on age rather than disability, and the employee is under retirement age, the increase ends with the second month after the month the disability ends as shown in part 220 of this chapter. (b) Employee DIB O/M. An increase in an employee's annuity under the overall minimum based on disability ends with the earlier of: (1) The month before the month in which the employee dies; or (2) The month before the month the employee attains retirement age (the DIB O/M is changed to an age O/M); or (3) The second month after the month the disability ends, as explained in part 220 of this chapter. (c) Spouse. An increase in a spouse annuity under the overall minimum ends when the increase in the employee annuity ends, as shown in paragraphs (a) and (b) of this section, when the spouse can no longer be included in computing the annuity rate under the overall minimum as shown in §229.41 of this part, or when the spouse annuity ends as shown in part 218 of this chapter. A spouse's inclusion in the computation of the overall minimum rate ends the earlier of: (a) The month before the month in which the spouse dies; or (b) The month before the month in which the spouse's marriage to the employee legally terminates; or (c) If the spouse has an eligible child in care, the earlier of the month before the month in which the child leaves the spouse's care, attains age 16 and is not disabled, or, if disabled, recovers from being disabled; or (d) The month before the month the employee dies. A child's inclusion in the computation of the overall minimum rate ends the earlier of: (a) The month before the month in which the child dies; or (b) The month before the month in which the child marries; or (c) The month before the month the child becomes 18 years old, unless the child is disabled or a full-time student, as shown in part 216 of this chapter; or (d) The second month after the month the child's disability ends, if the child is 18 years old or older, and not a full-time student; or (e) The month in which a student child's annuity would end, as shown in part 218 of this chapter, if the child is 18 years old or older, a full-time student in an elementary or secondary school, and not disabled; or (f) The month before the month the child becomes entitled to an overall minimum benefit or child's annuity on another earning record, if including the child on the other earnings record would result in higher monthly benefits; or (g) In the case of a stepchild of the employee, the month after the month in which the divorce between the stepparent and the natural parent becomes final. [58 FR 53397, Oct. 15, 1993, as amended at 62 FR 47138, Sept. 8, 1997] A divorced spouse's inclusion in the computation of the overall minimum rate ends the earlier of: (a) The month before the month in which the divorced spouse dies; or (b) The month before the month the employee dies; or (c) The month before the month in which the divorced spouse remarries; or (d) The month before the month in which the divorced spouse becomes entitled to a retirement or disability benefit under the Social Security Act based upon a primary insurance amount which is equal to or exceeds the divorced spouse annuity before reduction for age. The original employee 100 percent overall minimum amount, before adjustment for age, other family members, or other benefits, is the Overall Minimum PIA, as described in part 225 of this chapter. This is the PIA which would be used under the Social Security Act if the employee's railroad service had been covered under that Act instead of the Railroad Retirement Act. The Overall Minimum PIA may be recomputed for additional earnings and adjusted for cost-of-living increases. Delayed retirement credits are added to the Overall Minimum PIA as shown in part 225, subpart D of this chapter. If a spouse or divorced spouse is included in the computation of the overall minimum, a benefit of 50 percent times the Overall Minimum PIA is computed. In the case of a spouse, the benefit may be adjusted for the family maximum, age, or other benefits. In the case of a divorced spouse, the benefit may be adjusted only for age or other benefits. If a child is included in the computation of the overall minimum, a child's benefit of 50 percent times the Overall Minimum PIA is computed. This amount may be adjusted for the family maximum or other benefits. (a) Family maximum defined. Under the Social Security Act, the amount of monthly benefits that can be paid for any month on one person's earnings record is limited. This limited amount is called the family maximum. The family maximum used to adjust the social security overall minimum rate is based on the employee's Overall Minimum PIA. The divorced spouse overall minimum is never reduced because of the family maximum. (b) Computation of the family maximum—(1) The employee attains retirement age prior to 1979. The maximum is the amount appearing in column V of the applicable table published each year by the Secretary of Health and Human Services on the line on which appears in column IV the primary insurance amount of the insured individual whose compensation is the basis for the benefits payable. Where the maximum is exceeded, the total tier I benefits for each month after 1964 are reduced to the amount appearing in column V. However, when any of the persons entitled to benefits on the insured individual's compensation would, except for the limitation described in §404.353(b) of title 20 (dealing with the entitlement to more than one child's benefit), be entitled to a child's annuity on the basis of the compensation of one or more other insured individuals, the total benefits payable may not be reduced to less than the smaller of: (i) The sum of the maximum amounts of benefits payable on the basis of the compensation of all such insured individuals, or (ii) The last figure in column V of the applicable table published each year by the Secretary of Health and Human Services. The “applicable” table refers to the table which is effective for the month the benefit is payable. (2) The employee attains retirement age in 1979. (i) The maximum is computed as follows: (A) 150 percent of the first $230 of the individual's primary insurance amount, plus (B) 272 percent of the primary insurance amount over $230 but not over $332, plus (C) 134 percent of the primary insurance amount over $332 but not over $433, plus (D) 175 percent of the primary insurance amount over $433. (ii) If the total of this computation is not a multiple of $0.10, it will be rounded to the next lower multiple of $0.10. (3) The employee attains retirement age after 1979. The maximum is computed as in paragraph (b)(2) of this section. However, the dollar amount shown there will be updated each year as average earnings rise. This updating is done by first dividing the average of the total wages (see 20 CFR 404.203(m)) for the second year before the individual dies or becomes eligible, by the average of the total wages for 1977. The result of that computation is then multiplied by each dollar amount in the formula in paragraph (b)(2) of this section. Each updated dollar amount will be rounded to the nearer dollar, if the amount is an exact multiple of $0.50 (but not of $1), it will be rounded to the next higher $1. Before November 2 of each calendar year after 1978, the Secretary of Health and Human Services will publish in the (c) Disability family maximum. If an employee's first month of entitlement to the DIB O/M is July 1980 or later, the family maximum is 85 percent of the employee's Average Indexed Monthly Earnings but not less than the employee's Overall Minimum PIA, and no more than 150 percent of the employee's Overall Minimum PIA. (d) Reduction for family maximum. The spouse's and child(ren)'s share of the Overall Minimum PIA are reduced if the total benefits are higher than the family maximum amount. These auxiliary shares are adjusted so that they each receive a proportionate share of the family maximum amount over and above the employee benefit. This adjustment is before adjustment for age or other benefits. The spouse and child(ren)'s benefits are computed as follows: (1) The Overall Minimum PIA is subtracted from the family maximum amount. (2) The result from paragraph (d)(1) of this section is divided by the total number of auxiliary beneficiaries (spouse and children). (3) If the amount of each benefit from paragraph (d)(2) of this section is not a multiple of $0.10, it is rounded to the next lower multiple of $0.10. After determining the beneficiary's share (the amount after reduction for other benefits) the amount is rounded to the next lowest multiple of $1.00, if it is not already a multiple of $1.00. (e) Combined family maximum. If a child is eligible to be included in the computation of the overall minimum on more than one railroad retirement annuity, a combined family maximum may apply, if it results in higher annuity rates. The combined family maximum is the smaller of: (1) The sum of the individual family maximums on each earnings record; or (2) 1.75 times the highest primary insurance amount possible in a year using average indexed monthly earnings equal to one-twelfth of the contribution and benefit base for that year. Average indexed monthly earnings and contribution and benefit base are explained in §229.2 of this part. (f) This section may be illustrated by the following examples: (1) An employee, age 62, applies for an age and service annuity under the Railroad Retirement Act (RRA). His annuity rate is $700. The employee has a son who was disabled for all regular employment prior to his attaining age 18. The RRA does not provide an annuity for a disabled child of a living employee. If the employee had been covered under the Social Security Act he would have received a benefit of $500 (the Overall Minimum PIA) and his child would have received a benefit of $250 (50 percent of $500), which produces a total family benefit of $750. The family maximum is $804.90. Under the O/M guarantee, the employee would receive $750 since it is higher than his annuity rate of $700. Since $750 is less than the family maximum computed for this employee, there is no reduction for the family maximum. (2) It is determined that a disabled employee is entitled to a DIB O/M computed as follows: However, the employee's family maximum is $900 (150 percent of $600). Consequently, the DIB O/M will be paid as follows: (a) Increase in family group. If an overall minimum rate is adjusted for the family maximum and an additional family member can be included, the benefits payable to previous auxiliary beneficiaries (spouse and children) are reduced to provide a share for the new family member. The difference between the Overall Minimum PIA (see §225.15 of this part) and the family maximum amount is divided by the increased number of auxiliary beneficiaries. If the amount of each benefit is not a multiple of $0.10, it is rounded to the next lower multiple of $0.10. After determining a beneficiary's share (the amount after reduction for other benefits) the amount is rounded to the next lowest multiple of $1.00, if it is not already a multiple of $1.00. (b) Decrease in family group. If an overall minimum rate is adjusted for the family maximum and there is a decrease in the number of eligible family members, the benefits for the remaining auxiliary beneficiaries (spouse and children) are increased. If the family maximum still applies, the difference between the Overall Minimum PIA and the family maximum amount is divided by the number of remaining auxiliary beneficiaries. If the amount of each benefit is not a multiple of $0.10, it is rounded to the next lower multiple of $0.10. After determining the beneficiary's share (the amount after reduction for other benefits) the amount is rounded to the next lowest multiple of $1.00, if it is not already a multiple of $1.00. (c) Effective date of rate change. The overall minimum rate changes described in paragraphs (a) and (b) of this section are effective the month in which the number of auxiliary beneficiaries changes. (a) When age reduction applies. The employee overall minimum benefit is reduced for each month the employee is under retirement age on the date the employee becomes eligible for an increase under the overall minimum, as shown in §229.22 of this part, unless the employee has a period of disability and §229.52 of this part does not apply, in which case no age reduction is applied. The spouse overall minimum benefit is reduced for each month a spouse, who is not a spouse with the employee's child under 16 years old or disabled before attaining age 22 in his or her care, is under retirement age on the date the spouse is eligible for an increase under the overall minimum (see §229.21 of this part). If a spouse's overall minimum benefit is reduced for age and he or she later begins caring for an eligible child, no age reduction will apply for the months the child is in his or her care. (b) Employee age reduction. The Overall Minimum PIA plus any delayed retirement credits is reduced by (c) Spouse age reduction. The amount of the spouse overall minimum benefit, after any adjustment for the family maximum, is reduced by (d) Age reduction after 1999. Beginning in the year 2000 the amount of age reduction shall be as specified in paragraphs (b) and (c) of this section for the first 36 months of the reduction period, as defined in paragraph (e) of this section, and (e) Reduction period defined. The reduction period is the number of months beginning with the first month for which the O/M is payable and ending with the month before the month the beneficiary attains retirement age. (a) General. If an age reduced employee or spouse overall minimum benefit is not paid for certain months before the employee or spouse attains retirement age, or the employee becomes entitled to a DIB O/M, the age reduction may be adjusted to drop the months for which no payment was made or the overall minimum rate was not reduced for age. (b) Employee adjusted age reduction. The following months are deducted from the months used to determine the age reduction in the Overall Minimum PIA amount, effective the month in which the employee attains retirement age or becomes entitled to a DIB O/M: (1) Months in which the increase under the overall minimum is completely or partially deducted because of the employee's excess earnings; and (2) Months in which the employee is entitled to a DIB O/M as well as a reduced O/M. (c) Spouse adjusted age reduction. The following months are deducted from the months used to determine the age reduction in the spouse overall minimum benefit, effective the month in which the spouse attains retirement age: (1) Months in which the spouse O/M benefit is completely or partially deducted because of the employee's or spouse's excess earnings: (2) Months after entitlement to a spouse O/M benefit ends for any reason; (3) Months in which a spouse has in her care the employee's child who is under 16 years old or disabled before age 22; (4) Months in which a DIB O/M benefit is not payable because the employee refused rehabilitation service (see §229.81 of this part). If an employee received a reduced age O/M before the effective date of a DIB O/M, the PIA amount for the DIB O/M is reduced as if the employee had attained retirement age on the effective date of the DIB O/M. The total annuity rate under the overall minimum is reduced, but not below zero, by the total amount of the social security benefits being paid to all family members on the employee's wage record. The employee PIA amount under the overall minimum, after any age reduction, is reduced, but not below zero, by the amount of any social security benefit being paid to the employee on another person's earnings record. A spouse benefit under the overall minimum, after any adjustment for the family maximum and for age, is reduced, but not below zero, by the amount of any social security benefit being paid to the spouse on other than the employee's earnings record. If the social security benefit is equal to or higher than the spouse overall minimum benefit and the family maximum applies, the overall minimum rate is recomputed so that the spouse is not included, if it would result in a higher overall minimum rate. A child's benefit under the overall minimum, after any adjustment for the family maximum, is reduced, but not below zero, by the amount of any social security benefit being paid to the child on other than the employee's earnings record. If the social security benefit is equal to or higher than the child's overall minimum benefit and the family maximum applies, the overall minimum rate is recomputed so that the child is not included, if it would result in a higher overall minimum rate. If an annuitant is entitled to both an employee annuity on his or her own earnings record and a spouse annuity on a different earnings record, the total overall minimum rates on both earnings records must be higher than the total railroad formula rates for the overall minimum to apply. The spouse overall minimum benefit amount, after adjustment for the family maximum and for age, is reduced by the employee-only overall minimum rate on the spouse's own earnings record (the employee benefit adjusted for age and social security benefits) plus the amount of any social security benefit payable to the spouse on other than the empoyee's earnings record. The overall minimum amount for each beneficiary which is not a multiple of $0.10 is rounded to the next lower multiple of $0.10. After reducing each beneficiary's share for other benefits, if the result is not a multiple of $1.00 it is rounded to the next lower multiple of $1.00. (a) When reduction is effective. A benefit computed under the overall minimum based on disability (DIB O/M) is reduced (not below zero) for any month the employee is under retirement age and is entitled to worker's compensation or disability benefits under a Federal, State, or local law or plan (public disability benefit). The reduction is effective with the month the employee is entitled to worker's compensation or a public disability benefit. (b) When reduction is not made. A reduction for worker's compensation is not made if the law or plan under which the worker's compensation or public disability benefit is paid provides for the reduction of the benefit provided due to entitlement to a social security disability benefit, and so provided on February 18, 1981. (c) Amount of reduction. The reduction in the DIB O/M for worker's compensation or public disability benefit equals the difference between: (1) The sum of the monthly DIB O/M rate, including benefits for all family members (subject to the family maximum), plus the monthly worker's compensation or public disability benefit; and (2) The higher of 80 percent of the employee's average current earnings before becoming disabled or the monthly DIB O/M rate (before reduction for worker's compensation or public disability benefit). (d) Average current earnings, defined. Beginning January 1, 1979, an employee's average current earnings for purposes of this section are the highest of: (1) The average monthly wage (see §225.2 of this chapter) used to compute the DIB O/M under the Social Security Act rules which were in effect before 1979; or (2) One-sixtieth of the employee's total earnings from employment or self-employment under either the Social Security or Railroad Retirement Acts (including earnings that exceed the maximum used in computing social security benefits) for the 5 consecutive years after 1950 in which the earnings were the highest; or (3) One-twelfth of the employee's total earnings from employment or self-employment under either the Social Security or Railroad Retirement Acts (including earnings that exceed the maximum used in computing social security benefits) for the year of highest earnings in the period from 5 years before through the year in which the employee became disabled. The result is rounded to the next lower multiple of $1.00. (a) Change in DIB O/M. The amount of the worker's compensation or public disability benefit reduction does not change when there is an increase in the DIB O/M rate because of an amendment or cost of living increase. However, the reduction amount does change if there is a change in the family members included in the DIB O/M. When the number of family members changes and the DIB O/M is still payable, the amount of the reduction is recomputed using the DIB O/M rate, including the changed family group, as if the new family composition had existed when the worker's compensation or public disability benefit reduction first applied. However, this new reduction is not effective until the date of the change of the family group. The worker's compensation or public disability benefit and average current earnings are the same as those used before the change in the family group. (b) Change in amount of worker's compensation/public disability benefit. The amount of the reduction for worker's compensation or public disability benefit changes when there is a change in the amount of the worker's compensation or public disability benefit. If the worker's compensation or public disability benefit increases, the change in the reduction amount is effective with the month of the increase. If the worker's compensation or public disability benefit decreases, the change in the reduction amount is effective with the month of the decrease, no matter when the notice of the decrease is received. (a) General. All cases reduced for worker's compensation or public disability benefit are recomputed in the second year after the year the reduction was first applied and every third year after that. The redetermined rate is effective with January of the year after the year the redetermination is made. The redetermined reduction is used only if it provides an annuity rate that is higher than the previous annuity rate. (b) Redetermined average current earnings. The average current earnings amount used in redetermining a worker's compensation or public disability benefit reduction is determined by multiplying the initial average current earnings amount by: (1) The average total wages (including wages that exceed the maximum used in computing social security benefits) of all persons for whom wages were reported to the Secretary of the Treasury for the year before the year or redetermination, divided by the average total wages for 1977 or, if later, the year before the year the reduction was first computed. If the result is not a multiple of $1.00, it is rounded to the next lower multiple of $1.00; or (2) If the reduction was first computed before 1978, the average taxable wages reported to the Secretary of Health and Human Services for the first quarter of 1977, divided by the average taxable wages for the first quarter of the year before the year the reduction was first computed. If the result is not a multiple of $1.00, it is rounded to the next lower multiple of $1.00. A reduction for entitlement to worker's compensation or a public disability benefit is applied after the DIB O/M is reduced for age and the family maximum. The spouse and child O/M benefits are first reduced proportionately. The employee O/M benefit is decreased by any remaining reduction amount. The O/M may be reduced due to earnings from employment or self-employment in the same manner as a social security benefit. These restrictions on earnings are found at subpart E of part 404 of this chapter. Earnings can never reduce an employee's benefit below the railroad formula rate less the amount that those benefits would be reduced by earnings. The DIB O/M is not payable for any month in which the disabled employee refuses, without good reason, to accept vocational rehabilitation services available under an approved state program. A disabled child's benefit under the O/M is not payable for any month in which the child refuses, without good reason, to accept such vocational rehabilitation services, unless the child is a full-time student. (a) General. The full amount of the spouse overall minimum benefit is not payable for any month a spouse, who is included in the overall minimum because he or she has a child in his or her care, is under retirement age and is no longer caring for an eligible child. However, if the spouse is at least 62 years old, a reduced spouse annuity or a reduced overall minimum benefit is payable if the spouse has stated that he or she will accept a reduced benefit. (b) Report required. When the overall minimum, which includes a benefit for a spouse who has the employee's child in his or her care, is payable, both the employee and spouse are responsible for reporting when the child leaves the spouse's care. The report is due before the benefits are paid for the second month after the first month in which the child is no longer in the spouse's care. (c) Penalty for failure to report. If the employee or spouse does not report the fact that a spouse included in the overall minimum no longer has an eligible child in his or her care within the time limit shown in paragraph (b) of this section, a penalty is deducted from the overall minimum amount, unless there is a good reason for the person's failure to report. The penalty deduction for the first failure to make a timely report equals the amount of the overall minimum increase for the first month in which a report should have been made. The deduction for the second failure to make a timely report is twice the amount of the overall minimum increase for the first month in which a report should have been made. The deduction for the third and later failures to make a timely report is three times the amount of the overall minimum increase for the first month in which a report should have been made or, if less, the overall minimum increase times the number of months for which a timely report was not made. The age DIB O/M is not payable for any month after the month the Board receives notice that the employee has been deported for a reason shown in section 202(h) of the Social Security Act. This restriction no longer applies if the employee is later legally admitted to the United States for permanent residence. If a person is convicted of subversive activities (under chapter 37, 105, or 115 of title 18 of the U.S. Code or section 4, 112, or 113 of the Internal Security Act of 1950, as amended), the court may order that earnings in the year of the conviction and previous years are to be disregarded in determining whether the person is entitled to social security benefits. These earnings would also be ignored in determining entitlement to the age or DIB O/M. A blind employee or child who is 55 years old or older is entitled to an O/M benefit based on disability while he or she is working in substantial gainful activity that does not require skills or ability used in his or her previous work. However, the DIB O/M or child's O/M benefit is not payable for any month in which the employee or child works in any type of substantial gainful activity which requires skills or abilities comparable to those of any gainful activity in which he or she has previously engaged with some regularity and over a substantial period of time. When both the employee and the spouse are entitled to annuities and the overall minimum rate is higher than the railroad formula rate, the overall minimum amount must be divided between the employee and spouse. The employee receives two-thirds of the total O/M rate. The spouse receives one-third of the total O/M rate. (a) Employee annuity payable for part of a month. If an employee annuity begins after the first day of the month, the O/M amount payable for the partial month is (b) Spouse annuity payable for part of a month—(1) Spouse not included in O/M before beginning date of spouse annuity and O/M applies as of the spouse annuity beginning date. If a spouse annuity begins after the first day of a month, and the spouse is not includable in the O/M before the beginning date of the spouse annuity, and the O/M rate paid to the family group, including the spouse, as of the spouse annuity beginning date exceeds the amounts payable using the benefit formulas under the Railroad Retirement Act, the amount payable to the spouse for the partial month is (i) One-thirtieth of the higher of the railroad formula or the O/M rate, without the spouse included, times the number of days in the month before the spouse annuity begins, plus (ii) One-thirtieth of the employee's share of the O/M rate, with the spouse included, times the number of days in the month beginning with the spouse's annuity beginning date. (2) Spouse included in O/M before beginning date of spouse annuity and the O/M continues to apply. If a spouse annuity begins after the first day of a month, and the spouse is includable in the O/M before the beginning date of the spouse annuity, and the O/M rate paid to the family group, including the spouse, as of the spouse annuity beginning date continues to exceed the amounts payable using the benefit formulas under the Railroad Retirement Act, the amount payable to the spouse for the partial month is (i) One-thirtieth of the O/M rate, with the spouse included, times the number of days in the month before the spouse annuity begins; plus (ii) One-thirtieth of the employee's share of the O/M rate, with the spouse included, times the number of days in the month beginning with the spouse's annuity beginning date. (3) O/M rate applies before beginning date of spouse annuity and the railroad formula applies as of the spouse annuity beginning date. If a spouse annuity begins after the first day of a month and the O/M rate applies to the family group, with or without the spouse included, before the beginning date of the spouse annuity, and the O/M rate paid to the family group, including the spouse, as of the spouse annuity beginning date is less than the amounts payable using the formulas under the Railroad Retirement Act, the amount payable to the spouse for the partial month is (i) One-thirtieth of the O/M times the number of days in the month before the spouse annuity begins; plus (ii) One-thirtieth of the employee's railroad formula rate times the number of days in the month beginning with the spouse's annuity beginning date.
Title 20: Employees' Benefits
PART 229—SOCIAL SECURITY OVERALL MINIMUM GUARANTEE
Section Contents
§ 229.1 Introduction.
§ 229.2 Definitions.
§ 229.3 Other regulations related to this part.
§ 229.4 Applying for the overall minimum.
§ 229.10 What the social security overall minimum guarantee is.
§ 229.11 100 percent overall minimum.
§ 229.20 When an employee is eligible for an increase under the overall minimum.
§ 229.21 When a spouse is eligible for an increase under the overall minimum.
§ 229.22 Beginning date of increase under overall minimum.
§ 229.30 Who can be included in the computation of an annuity under the overall minimum.
§ 229.31 When a spouse can be included in the computation of the overall minimum rate.
§ 229.32 When a child can be included in the computation of the overall minimum rate.
§ 229.33 When a divorced spouse can be included in the computation of the overall minimum rate.
§ 229.40 When an annuity increase under the overall minimum ends.
§ 229.41 When a spouse can no longer be included in computing an annuity rate under the overall minimum.
§ 229.42 When a child can no longer be included in computing an annuity rate under the overall minimum.
§ 229.43 When a divorced spouse can no longer be included in computing an annuity under the overall minimum.
§ 229.45 Employee benefit.
§ 229.46 Spouse or divorced spouse benefit.
§ 229.47 Child's benefit.
§ 229.48 Family maximum.
§ 229.49 Adjustment of benefits under family maximum for change in family group.
§ 229.50 Age reduction in employee or spouse benefit.
§ 229.51 Adjustment of age reduction.
§ 229.52 Age reduction when a reduced age O/M is effective before DIB O/M.
§ 229.53 Reduction for social security benefits on employee's wage record.
§ 229.54 Reduction for social security benefit paid to employee on another person's earnings record.
§ 229.55 Reduction for spouse social security benefit.
§ 229.56 Reduction for child's social security benefit.
§ 229.57 Reduction in spouse overall minimum benefit for employee annuity.
§ 229.58 Rounding of overall minimum amounts.
§ 229.65 Initial reduction.
§ 229.66 Changes in reduction amount.
§ 229.67 Redetermination of reduction.
§ 229.68 Reduction of DIB O/M.
§ 229.80 Earnings restrictions.
§ 229.81 Refusal to accept vocational rehabilitation.
§ 229.82 Failure to have child in care.
§ 229.83 Deportation.
§ 229.84 Conviction for subversive activities.
§ 229.85 Substantial gainful activity by blind employee or child.
§ 229.90 Proportionate shares of overall minimum.
§ 229.91 Payment of the overall minimum for part of a month.
Subpart A—General
top
§ 229.1 Introduction.
top
§ 229.2 Definitions.
top
§ 229.3 Other regulations related to this part.
top
§ 229.4 Applying for the overall minimum.
top
Subpart B—Social Security Overall Minimum Guarantee Defined
top
§ 229.10 What the social security overall minimum guarantee is.
top
§ 229.11 100 percent overall minimum.
top
Subpart C—Eligibility for Increase Under the Overall Minimum
top
§ 229.20 When an employee is eligible for an increase under the overall minimum.
top
§ 229.21 When a spouse is eligible for an increase under the overall minimum.
top
§ 229.22 Beginning date of increase under overall minimum.
top
Subpart D—Family Members Included in Overall Minimum Computation
top
§ 229.30 Who can be included in the computation of an annuity under the overall minimum.
top
§ 229.31 When a spouse can be included in the computation of the overall minimum rate.
top
§ 229.32 When a child can be included in the computation of the overall minimum rate.
top
§ 229.33 When a divorced spouse can be included in the computation of the overall minimum rate.
top
Subpart E—When Entitlement Under the Overall Minimum Ends
top
§ 229.40 When an annuity increase under the overall minimum ends.
top
§ 229.41 When a spouse can no longer be included in computing an annuity rate under the overall minimum.
top
§ 229.42 When a child can no longer be included in computing an annuity rate under the overall minimum.
top
§ 229.43 When a divorced spouse can no longer be included in computing an annuity under the overall minimum.
top
Subpart F—Computation of the Overall Minimum Rate
top
§ 229.45 Employee benefit.
top
§ 229.46 Spouse or divorced spouse benefit.
top
§ 229.47 Child's benefit.
top
§ 229.48 Family maximum.
top
Overall Minimum $ 600.00 PIASpouse (50% x 300.00 600)Child (50% x 600) 300.00 --------------------------------------------- 1200.00
Employee $ 600.00 Spouse 150.00 Child 150.00 --------------------------------------------- 900.00
§ 229.49 Adjustment of benefits under family maximum for change in family group.
top
§ 229.50 Age reduction in employee or spouse benefit.
top
§ 229.51 Adjustment of age reduction.
top
§ 229.52 Age reduction when a reduced age O/M is effective before DIB O/M.
top
§ 229.53 Reduction for social security benefits on employee's wage record.
top
§ 229.54 Reduction for social security benefit paid to employee on another person's earnings record.
top
§ 229.55 Reduction for spouse social security benefit.
top
§ 229.56 Reduction for child's social security benefit.
top
§ 229.57 Reduction in spouse overall minimum benefit for employee annuity.
top
§ 229.58 Rounding of overall minimum amounts.
top
Subpart G—Reduction for Worker's Compensation or Disability Benefits Under a Federal, State, or Local Law or Plan
top
§ 229.65 Initial reduction.
top
§ 229.66 Changes in reduction amount.
top
§ 229.67 Redetermination of reduction.
top
§ 229.68 Reduction of DIB O/M.
top
Subpart H—Miscellaneous Deductions and Reductions
top
§ 229.80 Earnings restrictions.
top
§ 229.81 Refusal to accept vocational rehabilitation.
top
§ 229.82 Failure to have child in care.
top
§ 229.83 Deportation.
top
§ 229.84 Conviction for subversive activities.
top
§ 229.85 Substantial gainful activity by blind employee or child.
top
Subpart I—Payment of Overall Minimum Rate
top
§ 229.90 Proportionate shares of overall minimum.
top
§ 229.91 Payment of the overall minimum for part of a month.
top
