[Federal Register Volume 89, Number 107 (Monday, June 3, 2024)]
[Rules and Regulations]
[Pages 47460-47461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12050]


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RAILROAD RETIREMENT BOARD

20 CFR Part 222

RIN 3220-AB79


Family Relationships

AGENCY: Railroad Retirement Board.

ACTION: Direct final rule; request for comments.

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SUMMARY: The Railroad Retirement Board (RRB) amends its regulations to 
update who may qualify as an adopted child to be included in the 
computation of a railroad employee's annuity amount under section 
3(f)(2) of the Railroad Retirement Act. The current regulation requires 
that a child adopted after the employee begins receiving an annuity 
must both live with the employee and receive one-half support from the 
employee. The amendment would eliminate this requirement for legally 
adopted children if the adoption proceedings commenced prior to the 
child attaining age 18. For adoptions commenced after the child attains 
age 18, the amendment would require only one of the above criteria to 
be met. This amendment is necessary to harmonize the RRB's regulations 
with the requirements of section 202(d)(8)(D) of the Social Security 
Act and section 3(f)(2) of the Railroad Retirement Act.

DATES: This rule becomes effective September 3, 2024 without further 
action unless adverse comment is received by July 3, 2024. If adverse 
comment is received, the Railroad Retirement Board will publish a 
timely withdrawal of the rule in the Federal Register.

ADDRESSES: You may submit comments, identified by RIN 3320-AB79, 
through any of the following methods:
    1. Internet--Send inquiries via email to 
[email protected].
    2. Fax--(312) 751-7102.
    3. Mail--Secretary to the Board, Railroad Retirement Board, 844 N 
Rush Street, Chicago, Illinois 60611-1275.
    Do not submit the same comment multiple times or by more than one 
method. Regardless of which method you choose, please indicate that 
your comments refer to RIN number 3320-AB79.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available as comments are 
posted without change with any personal information provided. You are 
strongly urged not to include any personal information in your 
comments, such as Social Security numbers or medical information.

FOR FURTHER INFORMATION CONTACT: Peter J. Orlowicz, Senior Counsel, 
Railroad Retirement Board, 844 North Rush Street, Chicago, IL 60611-
1275, (312) 751-4922.

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. The RRA does not directly provide annuities for dependent 
children of living railroad employees. However, section 3(f)(2) of the 
RRA [45 U.S.C. 231b(f)(2)] guarantees that the annuity payable to an 
employee shall never be less than the amount which would have been 
payable to the employee under the Social Security Act (SS Act) if the 
employee's service was entirely covered by the SS Act. Because the SS 
Act does provide for annuities to dependent children of a wage earner 
under the SS Act, a railroad employee's annuity may be increased under 
section 3(f)(2) of the RRA when the employee has a dependent child who 
meets the definition of a child contained in section 216(e) of the SS 
Act [42 U.S.C. 416(e)]. The definition of ``child'' under section 
216(e) of the SS Act includes adopted children and stepchildren of an 
individual, subject to certain limiting criteria.

[[Page 47461]]

    Section 202(d)(1) of the SS Act [42 U.S.C. 402(d)(1)] provides that 
every child, as defined in section 216(e) of the SS Act, of an 
individual entitled to old-age or disability insurance benefits shall 
be entitled to a child's insurance benefit if the child was dependent 
upon the individual, the child has filed an application for child's 
insurance benefits, and at the time of application the child was 
unmarried and either had not attained the age of 18 (age 19 if a full-
time elementary or secondary school student) or was under a disability 
which began before the child attained age 22. Prior to December 19, 
1989, a child had to both live with and receive one-half support from 
an individual to qualify as a dependent child. The current version of 
the RRB's regulations at 20 CFR 222.53 and 222.54 reflect this dual 
requirement.
    On December 19, 1989, section 10301 of the Miscellaneous and 
Technical Social Security Act Amendments of 1989 [Pub. L. 101-239, 
title X, section 10301] amended section 202(d)(8)(D) of the SS Act [42 
U.S.C. 402(d)(8)(D)] to allow legally adopted children to be deemed 
dependent on an individual receiving old-age or disability insurance 
benefits, regardless of residence or support, if the adoption was 
decreed by a court of competent jurisdiction within the United States 
and the adoption proceeding was commenced prior to the child attaining 
age 18. In the case of a child whose adoption was commenced after the 
child attained age 18, section 202(d)(8)(D) was amended to state the 
child shall be considered dependent if the child was either living with 
or receiving at least one-half of the child's support from the 
individual. Current regulations of the Social Security Administration 
at 20 CFR 404.362(b) are consistent with this amended requirement.

Regulatory Changes

    We are amending Sec. Sec.  222.53 and 222.54 of the RRB's 
regulations to reflect the statutory elimination of the residency and 
support requirements for children legally adopted prior to attaining 
age 18 to qualify for increases in the employee's annuity amount under 
section 3(f)(2) of the RRA, and to remove provisions that treat 
grandchildren or stepgrandchildren adopted as the children of an 
annuitant differently than other adopted children. Because a child 
legally adopted prior to attaining age 18 is considered a dependent 
child and is eligible for child's insurance benefits under section 
202(d)(8)(D) and section 216(e) of the SS Act, section 3(f)(2) of the 
RRA requires that an employee's annuity must be increased accordingly 
when an employee has adopted a child prior to that child attaining age 
18. Furthermore, a child whose adoption was not commenced until after 
the child attained age 18 may still be considered dependent on an 
individual and qualify for child's insurance benefits if the child 
either lives with the individual or receives one-half support from the 
individual; the child need not meet both criteria. Accordingly, section 
3(f)(2) of the RRA also requires that an employee's annuity must be 
increased when an employee has adopted a child after the child attains 
age 18 if the employee lives with the child or provides one-half of the 
child's support.
    Prior to the Miscellaneous and Technical Social Security Act 
Amendments of 1989, the time period necessary for an adopted child to 
be dependent on an individual was different if the adopted child was 
also a grandchild or stepgrandchild of the individual than if the 
adopted child was not a grandchild or stepgrandchild of the individual. 
This distinction was eliminated in the Miscellaneous and Technical 
Social Security Act Amendments of 1989 because all adopted children 
whose adoptions were commenced prior to attaining age 18 were deemed 
dependent on the adoptive parents. Therefore, we are revising Sec.  
222.53 to reflect the absence of a residency or support requirement for 
children adopted prior to attaining age 18, to include a requirement of 
either residency or one-half support when a child's adoption 
proceedings were commenced after the child attained age 18 and removing 
Sec.  222.54 entirely because we no longer have different rules for 
dependency when an adopted child is also a grandchild or 
stepgrandchild.

Regulatory Analysis

Executive Order 12866, as Supplemented by Executive Order 13563

    The RRB, with the Office of Management and Budget, has determined 
that this is not a significant regulatory action under Executive Order 
12866, as supplemented by Executive Order 13563. Therefore, no 
regulatory impact analysis is required.

Regulatory Flexibility Act

    The RRB certifies that this direct final rule will not have a 
significant economic impact on a substantial number of small entities 
because it only concerns benefit eligibility for individuals and does 
not regulate or impose burdens on small entities as defined by the 
Regulatory Flexibility Act.

Paperwork Reduction Act

    This direct final rule imposes no reporting or recordkeeping 
requirements subject to Office of Management and Budget clearance.

List of Subjects in 20 CFR Part 222

    Claims, Railroad retirement, Social security.

    For the reasons set out in the preamble, the Railroad Retirement 
Board amends 20 CFR part 222 as follows:

PART 222--FAMILY RELATIONSHIPS

0
1. The authority citation for part 222 continues to read as follows:

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


0
2. Revise Sec.  222.53 to read as follows:


Sec.  222.53  When a legally adopted child is dependent--child adopted 
after entitlement.

    A child who is not the employee's natural child or stepchild, and 
who is adopted by the employee after the employee could become entitled 
to an old age or disability benefit under the Social Security Act 
(treating his or her railroad compensation as wages under that Act), is 
considered dependent on the employee during the employee's lifetime 
only if--
    (a) The child had not attained age 18 when adoption proceedings 
were commenced, and the child's adoption was issued by a court of 
competent jurisdiction within the United States; or
    (b) The child had attained age 18 before adoption proceedings were 
commenced, the child's adoption was issued by a court of competent 
jurisdiction within the United States, and the child was living with or 
receiving at least one-half of the child's support from the employee 
for the year immediately preceding the month in which the adoption was 
issued.


Sec.  222.54  [Removed and Reserved]

0
3. Remove and reserve Sec.  222.54.

    Dated: May 28, 2024.

    By Authority of the Board.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2024-12050 Filed 5-31-24; 8:45 am]
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