Family Relationships; Social Security Overall Minimum Guarantee

RAILROAD RETIREMENT BOARD

20 CFR Parts 222 and 229

RIN 3220-AB28

Family Relationships; Social Security Overall Minimum Guarantee

AGENCY: Railroad Retirement Board.

ACTION: Proposed 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

proposes to amend 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.

DATES: Comments must be received on or before July 21, 1997.

ADDRESSES: Secretary of 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.

[[Page 27990]]

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 a

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 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 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 proposed to be

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 employees, the month after

the month in which the divorce between the stepparent and the natural

parent becomes final.

Dated: May 9, 1997.

Beatrice Ezerski,

Secretary of the Board.

[FR Doc. 97-13395 Filed 5-21-97; 8:45 am]

BILLING CODE 7905-01-M