[Federal Register Volume 62, Number 173 (Monday, September 8, 1997)]
[Rules and Regulations]
[Pages 47137-47138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23675]
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RAILROAD RETIREMENT BOARD
20 CFR Parts 222 and 229
RIN 3220-AB28
Family Relationships; Social Security Overall Minimum Guarantee
AGENCY: Railroad Retirement Board.
ACTION: Final rule.
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SUMMARY: In accord with amendments to the Social Security Act made by
section 104 of Public Law 104-121, the Railroad Retirement Board hereby
amends its regulations to eliminate the ``living with'' requirement as
an alternative to actual dependency as a basis for eligibility for an
annuity as the stepchild of a railroad employee, and to provide for
termination of the inclusion of a stepchild in the computation of the
social security overall minimum guarantee provision when the
stepparent's marriage to the natural parent is terminated.
EFFECTIVE DATE: This rule will become effective October 8, 1997.
ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois 60611.
FOR FURTHER INFORMATION CONTACT: Michael C. Litt, General Attorney,
Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois
60611, telephone (312) 751-4929, TTD (312) 751-4701.
SUPPLEMENTARY INFORMATION: Section 2(d)(4) of the Railroad Retirement
Act provides in pertinent part that a child is deemed dependent if the
conditions set forth in sections 202(d)(3),(4), and (9) of the Social
Security Act are met. Since section 202(d)(4), as amended by Public Law
104-121, requires as a condition of dependency that the child have
received one-half his or her support from the stepparent, and
eliminates the alternative of the child having lived with the
stepparent as a means of establishing dependency, this change in the
definition of dependency in regard to stepchildren applies to benefits
paid under the Railroad Retirement Act. Specifically, it will impact
upon the entitlement of a spouse or survivor of an employee whose
entitlement is based upon having a stepchild of the employee in care,
or on an individual seeking a child's annuity as a stepchild of an
employee. In these instances, actual dependency on the employee will
have to be established for purposes of entitlement. The amendment is
effective with respect to the benefits of individuals who become
entitled to benefits for July 1996 and later.
The change will also affect the inclusion of auxiliary
beneficiaries in the computation of the employee annuity under the
social security overall minimum guarantee provision of the Railroad
Retirement Act. The social security overall minimum guarantee provision
guarantees that a railroad retirement annuitant will receive, in
combined benefits under the Railroad Retirement and Social Security
Acts, not less than the amount which would have been paid to the
employee and members of his family under the Social Security Act if the
employee's railroad service had been creditable under that Act.
Public Law 104-121 also amends section 202(d)(1) of the Social
Security Act to provide that a child's benefits based on the earnings
record of a stepparent will terminate the month after the month in
which the stepparent and the natural parent are divorced. The
[[Page 47138]]
Railroad Retirement Act contains its own termination provisions:
section 5(c)(7) of that Act specifies when a child's annuity paid under
the Railroad Retirement Act terminates. Therefore, this amendment to
section 202(d)(1) does not directly apply to benefits paid under the
Railroad Retirement Act. However, it will affect the inclusion of
auxiliary beneficiaries in the computation of the social security
overall minimum guarantee provision.
Consequently, under section 202(d)(1), as amended, if the marriage
of a railroad employee stepparent and natural parent is terminated,
then the stepchild would no longer be included in the computation under
the social security overall minimum guarantee provision. Therefore, the
Board is proposing to amend its regulations to provide that the
inclusion of the stepchild in the computation under the social security
overall minimum guarantee provision will terminate when the marriage of
the stepparent and the natural parent is terminated.
The Board published this rule as a proposed rule on May 22, 1997
(62 FR 27989), and invited comments by July 21, 1997. None were
received.
The Office of Management and Budget has determined that this is not
a significant regulatory action under Executive Order 12866. There are
no new information collections associated with this rule.
List of Subjects in 20 CFR Parts 222 and 229
Railroad employees, Railroad retirement.
For the reasons set out in the preamble, title 20, chapter II,
parts 222 and 229 of the Code of Federal Regulations are amended as
follows:
PART 222--FAMILY RELATIONSHIPS
1. The authority citation for part 222 continues to read as
follows:
Authority: 45 U.S.C. 231f.
Sec. 222.55 [Amended]
2. Section 222.55 is amended by removing the words ``is living with
or''.
PART 229--SOCIAL SECURITY OVERALL MINIMUM GUARANTEE
3. The authority citation for part 229 continues to read as
follows:
Authority: 45 U.S.C. 231f(b)(5).
4. Section 229.42 is amended by removing the period at the end of
paragraph (f), by adding ``; or'' to the end of paragraph (f), and by
adding a new paragraph (g) to read as follows:
Sec. 229.42 When a child can no longer be included in computing an
annuity rate under the overall minimum.
* * * * *
(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.
Dated: August 27, 1997.
By Authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 97-23675 Filed 9-5-97; 8:45 am]
BILLING CODE 7905-01-P