[Federal Register Volume 86, Number 124 (Thursday, July 1, 2021)]
[Rules and Regulations]
[Pages 34942-34943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13231]


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RAILROAD RETIREMENT BOARD

 20 CFR Part 295

RIN 3220--AB69


Payments Pursuant to Court Decree or Court-Approved Property 
Settlement

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) amends its regulations 
addressing who may receive a portion of an employee annuity due to a 
former spouse of a railroad annuitant under a court decree of divorce 
or court-approved property settlement, but which was unpaid at the time 
of the former spouse's death. The current regulation states that the 
Board will follow the priority order provided for employee annuities 
unpaid at death in the Board's regulations. This amendment is necessary 
to insert a correct reference to the proper section of the Board's 
regulations pertaining to employee annuities due but unpaid at death.

DATES: This rule is effective July 1, 2021.

ADDRESSES: Stephanie Hillyard, Secretary to the Board, Railroad 
Retirement Board, 844 N Rush Street, Chicago, Illinois 60611-1275.

FOR FURTHER INFORMATION CONTACT: Marguerite P. Dadabo, Assistant 
General Counsel, Railroad Retirement Board, 844 North Rush Street, 
Chicago, IL 60611-1275, (312) 751-4945, TTD (312) 751-4701.

SUPPLEMENTARY INFORMATION:

Background Information

    The Railroad Retirement Act (RRA) provides monthly annuities for 
railroad employees based on age and years of service in the railroad 
industry. Section 14(b)(2) of the RRA [45 U.S.C. 231m(b)(2)] provides 
that portions of an employee annuity calculated under sections 2(b), 
3(b), 3(f), and 3(h) of the RRA [45 U.S.C. 231a(b), 231b(b), 231b(f), 
and 231b(h)] may be characterized as community property and subject to 
distribution in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree. The current version of 
Board regulations at 20 CFR 295.1 through 295.7 implement this 
provision.
    The current version of section 295.5(d) of the Board's regulations 
explains that payments to a spouse or former spouse pursuant to a court 
order will not be made to the heirs, legatees, creditors, or assignees 
of a deceased spouse or former spouse. Any annuity amounts due to the 
spouse or former spouse but unpaid at the time of the spouse or former 
spouse's death will be made in accordance with the Board's regulations 
governing payments of employee annuities due but unpaid at the death of 
the employee. At the time Sec.  295.5(d) was published in the Federal 
Register, the Board's regulations governing employee annuities due but 
unpaid at death were found in Sec.  234.1 of the Board's regulations. 
Part 234 of the Board's regulations has since been amended and the 
section governing employee annuities due but unpaid at death is now 
designated as Sec.  234.31 of the Board's regulations.

Final Rule

    We are amending Sec.  295.5(d) of the Board's regulations to 
provide the correct cross-reference to the section of the Board's 
regulations governing employee annuities due but unpaid at death. This 
change is not intended to be substantive.
    This change was published as a proposed rule on December 9, 2016, 
and comments were invited to be submitted by February 7, 2017. See 81 
FR 89014 (December 9, 2016). No comments were submitted, and the final 
rule is the same as the proposed rule. Because this final rule is not a 
substantive change, but is merely a correction of a citation, it 
becomes effective on the date this notice of rulemaking is published in 
the Federal Register.

Regulatory Procedures

Executive Order 12866, as Amended

    The Office of Management and Budget has determined that this is not 
a significant regulatory action under Executive Order 12866. Therefore, 
no regulatory impact analysis is required.

Regulatory Flexibility Act

    The Board certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
because it affects individuals only. Therefore, a regulatory 
flexibility analysis is not required under the Regulatory Flexibility 
Act, as amended.

Paperwork Reduction Act

    This final rule imposes no reporting or recordkeeping requirements 
subject to OMB clearance.

List of Subjects in 20 CFR Part 295

    Railroad retirement.

    For the reasons stated in the preamble, the Railroad Retirement 
Board amends 20 CFR part 295 as follows:

PART 295--PAYMENTS PURSUANT TO COURT DECREE OR COURT-APPROVED 
SETTLEMENT

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1. The authority citation for part 295 continues to read as follows:

    Authority:  45 U.S.C. 231f; 45 U.S.C. 231m.

[[Page 34943]]

Sec.  295.5  [Amended]

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2. In Sec.  295.5(d), remove ``Sec.  234.1'' and add in its place 
``Sec.  234.31''.

    Dated: June 17, 2021.

    By Authority of the Board.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2021-13231 Filed 6-30-21; 8:45 am]
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