[Federal Register Volume 62, Number 147 (Thursday, July 31, 1997)]
[Proposed Rules]
[Pages 40995-40996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20206]


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RAILROAD RETIREMENT BOARD

20 CFR Part 295

RIN 3220-AB29


Payments Pursuant to Court Decree or Court-Approved Property 
Settlement

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

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SUMMARY: The Railroad Retirement Board hereby proposes to amend its 
regulations under part 295 by eliminating the Medicare Part B premium 
as a deduction from the amount of benefits available for division in a 
divorce proceeding or property settlement related to a divorce or legal 
separation.

DATES: Comments must be received on or before September 29, 1997.


[[Page 40996]]


ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 North 
Rush Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Senior Attorney, 
Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois 
60611, telephone (312) 751-4513, TTD (312) 751-4701.

SUPPLEMENTARY INFORMATION: Part 295 describes the Board's requirements 
for obtaining an enforceable order directing the Board to partition a 
railroad retirement annuity incident to a divorce, settlement, or 
annulment. Section 295.1(b) describes what benefits are subject to 
division under this part. Section 295.5(e)(1) further defines the net 
amount of benefits subject to division as excluding amounts deducted 
for an employee's elected Medicare Part B premium. When 
Sec. 295.5(e)(1) was initially approved in 1986, the Board was 
concerned about the risk that Medicare premium deductions might not be 
satisfied from the nondivisible portion of an employee's annuity in the 
event that the portion would not be payable due to work deductions. In 
practice, however, the agency has determined that only in rare cases is 
the nondivisible portion insufficient to accommodate the Medicare Part 
B deduction. The Medicare Part B premium is a personal expense elected 
to be made by the employee. The Board believes that it is more 
consistent with the nature of the Part B premium that it be paid 
entirely by the employee rather than, in effect, partly by the employee 
and partly by the divorced spouse. Accordingly, the agency proposes 
that the Medicare Part B deduction need not be deducted from the 
divisible benefits prior to partition in an action for divorce, 
settlement, or annulment.
    The Board, with the concurrence of 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. There are no information collections associated with this 
rule.

List of Subjects in 20 CFR Part 295

    Railroad employees, Railroad retirement.

    For the reasons set out in the preamble, chapter II of title 20 of 
the Code of Federal Regulations is proposed to be amended as follows:

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

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

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


Sec. 295.5  [Amended]

    2. Section 295.5(e)(1) is amended by removing the comma after 
``Board'' and by removing ``and the amount of any Medicare Part B 
premium''.

    Dated: July 24, 1997.

    By authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 97-20206 Filed 7-30-97; 8:45 am]
BILLING CODE 7905-01-P