[Federal Register Volume 63, Number 29 (Thursday, February 12, 1998)] [Proposed Rules] [Pages 7088-7089] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-3598] ======================================================================= ----------------------------------------------------------------------- RAILROAD RETIREMENT BOARD 20 CFR Part 255 RIN 3220-AB34 Recovery of Overpayments AGENCY: Railroad Retirement Board. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Railroad Retirement Board (Board) hereby proposes to amend its regulations regarding recovery of overpayments to explain what actuarial tables and interest rates are used to calculate an actuarial adjustment in an individual's annuity in order to recover an overpayment of benefits. The regulation also adds a provision to explain when an actuarial adjustment in an annuity takes effect when an annuity is paid by electronic funds transfer (EFT). DATES: Comments shall be submitted on or before April 13, 1998. ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 60611. FOR FURTHER INFORMATION CONTACT: Michael C. Litt, Bureau of Law, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 60611, (312) 751-4929, TDD (312) 751-4701. SUPPLEMENTARY INFORMATION: Section 255.8 of the Board's regulations (62 FR 64164) provides for recovery of an overpayment by means of an actuarial adjustment. In accordance with this provision, an overpayment may be recovered by permanently reducing the annuity payable to the individual from whom recovery is sought. The calculation of the reduction is performed using actuarial tables. The current authority for the use of these tables is contained in a Board Order which is not readily available to the public. This proposed amendment would add language specifying that the Board will use the tables and interest rate adopted in accordance with the triennial evaluation of the railroad retirement trust funds as required by section 15(g) of the Railroad Retirement Act. Where an annuity is paid by check, an actuarial reduction takes effect, and the overpayment is recovered, upon negotiation of the first check which reflects the adjustment. The Board proposes to add language to, provide that, in the case of an annuity paid by electronic funds transfer, the adjustment is effective when the first payment reflecting the actuarially adjusted rate is deposited. The Board, with the concurrence of the Office of Management and Budget, has determined that this is not a significant regulatory action for purposes of Executive Order 12866. Therefore, no regulatory impact analysis is required. There are no information collections associated with this rule. List of Subjects in 20 CFR Part 255.8 Railroad employees, Railroad retirement. For the reasons set out in the preamble, title 20, part 255 of the Code [[Page 7089]] of Federal Regulations is proposed to be amended as follows: PART 255--RECOVERY OF OVERPAYMENTS 1. The authority citation for part 255 continues to read as follows: Authority: 45 U.S.C. 231f(b)(5); 45 U.S.C. 231(i). 2. Section 255.8 is revised to read as follows: 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. Dated: February 4, 1998. By Authority of the Board. Beatrice Ezerski, Secretary to the Board. [FR Doc. 98-3598 Filed 2-11-98; 8:45 am] BILLING CODE 7905-01-P