[Federal Register Volume 62, Number 173 (Monday, September 8, 1997)]
[Rules and Regulations]
[Pages 47137-47138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23675]


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RAILROAD RETIREMENT BOARD

20 CFR Parts 222 and 229

RIN 3220-AB28


Family Relationships; Social Security Overall Minimum Guarantee

AGENCY: Railroad Retirement Board.

ACTION: Final 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 
amends 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.

EFFECTIVE DATE: This rule will become effective October 8, 1997.

ADDRESSES: Secretary to 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.
    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 
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

[[Page 47138]]

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 Board published this rule as a proposed rule on May 22, 1997 
(62 FR 27989), and invited comments by July 21, 1997. None were 
received.
    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 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 employee, the month after the 
month in which the divorce between the stepparent and the natural 
parent becomes final.

    Dated: August 27, 1997.

    By Authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 97-23675 Filed 9-5-97; 8:45 am]
BILLING CODE 7905-01-P