FOM1 207 

207.1 Month Of Service 

A month of service is a calendar month during all or any part of which a person: 

A. Works as an employee for compensation; or 

B. Has an "employment" relation (see FOM 206.2) and: 

1. Is "paid for time lost" as an employee; or 

2. Is credited under the Railroad Retirement Act with military service; or 

3. Is compensated for a lay-over period which was continuous with his last 

active service and ended in the month following the month of his last 

active service, if the employee needs an additional service month; or 

4. Receives pay for an identifiable period of vacation; or 

5. Has compensation for other months in the calendar year that are high 

enough to provide a deemed service month as explained in FOM 207.5. 

Also note that one railroad service month could be credited to the month that an 

employee filed for and received benefits under Title VII of the Regional Rail 

Reorganization Act. However if the employee worked in the railroad industry in that 

month, no service month can be credited based on Title VII filing. 

207.2 Prior Service Months 

Prior service under the Railroad Retirement Act means service performed before 1-1-

1937, as explained in FOM1 Art. 2 Appendix A. Service performed before 1937 may be 

credited only if, on 8-29-1935, the employee met the conditions for an employment 

relation described in FOM1 Art. 2 Appendix C. 

207.3 Subsequent Service 

Subsequent service is all railroad service performed on or after January 1, l937. 

There is no maximum limit of years of service when only subsequent service is included 

in the total years of service. 

207.4 Creditability of Military Service 

Military service after 1956 may be credited and included in the employee's years of 

service as explained in FOM1 215. 

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207.5 Deemed Service Months 

207.5.1 Deemed Service Month Requirements 

Effective for earnings years 1985 or later, a person who had an employment relation 

(see FOM1 206.2), or was an employee representative in months in which he did not 

perform railroad service or did not have creditable "Pay for Time Lost," may be deemed 

to have extra railroad service months. 

The following criteria must be met for an employee to be credited with deemed service 

months: 

	 The employee’s total compensation for the calendar year exceeds 1/12th of the Tier 

2 yearly compensation maximum times the number of actual railroad service months 

(based on actual railroad service or “Pay for Time Lost”); and 

	 There are months in the calendar year in which the employee or employee 

representative had no railroad compensation and has an employment relation. 

No deemed service months can be credited after an employment relation ends. An 

employment relation ends with: 

	 The employee’s retirement annuity ABD; 

	 The date the employee relinquished job rights in order to receive a separation 

allowance; or 

	 The date of the employee’s death. 

The date of separation (DOS) reported by the employer when an employee receives a 

separation allowance is used when determining deemed service months. The date 

rights relinquished (DRR) an employee claims on his or her application is not used. See 

the following two examples. 

EXAMPLE 1: For 2006, the employee had 7 reported service months for January 

through July and the maximum Tier 2 yearly compensation of $69,900.00. No service 

months or compensation were reported for 2007 or 2008. 

The employee applies for a retirement annuity on 05/28/2008 and his ABD is 

06/01/2008. He claims a DRR of 07/31/2006, his last day of railroad service, on his 

application. There is no reported DOS, because he did not receive a separation 

allowance. The only DRR information is what the employee claimed on his application. 

Therefore, it is not considered in the deemed service month determination. August 

through December of 2006 can be credited as deemed service months. 

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EXAMPLE 2: Same facts as above, except the employee received a separation 

allowance payment on 07/14/2006. That is the date the employer reported as both the 

DOS and DRR. Therefore, no deemed service months can be credited after July 2006. 

An employment relation cannot exist for deemed service months if the employee's last 

railroad service was outside of the U.S. and the service was not creditable under the 

RRA. 

In survivor cases, a deemed service month can be given for the month in which the 

employee dies, provided all of the above requirements are met. A deemed service 

month cannot be given for any month after the month of death. 

207.5.2 When the Deemed Service Determination Is Made 

Deemed service months are credited mechanically when annual service and 

compensation reports are posted to EDM, and there is enough information available in 

EDM and other RRB databases for the deeming program to establish employment 

relation. 

When the deeming program cannot establish employment relation mechanically, the 

Compensation and Employer Services (CES) in Assessment and Training (A&T) 

releases a Form GL-99, "Employer's Deemed Service Months Questionnaire," to the 

employer to verify employment relation in the deemable months (see CCOM 605). 

When the GL-99 is returned, CES posts a deemed service month on EDM for each 

potential deemed month in which the employer indicates the employee had an 

employment relation. 

207.5.3 How Number of Deemed Service Months are Determined 

The following formula is used to calculate the total number of deemed service months 

that may be credited. 

1. Railroad compensation is credited at the rate of 1/12 of the Tier 2 yearly 

maximum for each month the employee or employee representative actually 

worked in railroad service: 

a. Yearly T2 max.  12 = monthly max. 

b. Monthly max. x mos. worked = credited comp. 

2. The railroad compensation amount that exceeds the credited compensation in 

Step 1 (up to the Tier 2 yearly maximum) is divided by 1/12 of the Tier 2 yearly 

compensation maximum (i.e., the monthly max.). The result is the number of 

deemed service months that may be credited, with any fraction rounded up to the 

next full number. 

(Earned comp. – credited comp.)  monthly max. = deemed service months 

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The number of deemed service months cannot exceed the number of months in which 

the employee had no compensation and had an employment relation. Deemed service 

months are always credited to the first deemable months in the calendar year. 

EXAMPLE: The employee worked all months in 2007 and is on leave of absence for 

the months of January through March 2008. His leave of absence maintained his 

employment relation. He is recalled April 5, 2008 and works each month through 

December 2008. He earned $68,500.00 for the months he worked. $75,900.00 is the 

2008 Tier 2 yearly maximum. 

1. 75,900  12 = 6,325 (monthly max.) 

2. 6,325 x 9 (mos. worked) = 56,925 (credited comp.) 

3. 68,500 (total earned) – 56,925 = 11,575 (amt. exceeding credited comp.) 

4. 11,575  6,325 = 2 (1.83 rounded up) 

The employee is entitled to two deemed service months for January and February (the first 

deemable months of the year). 

207.6 Deemed Service Months - Special Handling Situations 

207.6.1 Decrease In Deemed Service Months (RESCUE Code 5) 

In some cases, deemed service months that were included in the initial annuity 

calculation may be mechanically removed after the final award was paid. This will 

cause a RESCUE Code 5 reject, because the decrease in service months will also 

decrease the employee’s Tier 2. 

EXAMPLE: For 2004, eight service months for January through August for 2004 and the 

maximum yearly Tier 2 compensation of $65,100.00 were reported for the employee. 

No service months or compensation were reported for 2005. The employee has a total 

of 366 reported service months through August 2004. 

He applies for a retirement annuity on 12/28/2005. The annuity is paid final on 

03/03/2006 with an ABD of 02/01/2006. The G-90 used to pay the final award, dated 

01/06/2006, shows September through December 2004 as deemed service months. 

This gives the employee a total of 370 service months, which are included in the annuity 

calculation. 

The case rejects as a Code 5 in a subsequent RESCUE run. The RESCUE G-90 

shows that the 4 deemed service months that were initially credited in 2004 were 

removed. 

Case Handling 

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When you receive a case in which deemed service months were previously credited 

and used in an annuity calculation and are later removed, first verify that the months 

were not removed due to any reported service month or compensation adjustments. If 

there are no service month or compensation adjustments, take the following action: 

1. Do not adjust the annuity for the decrease in deemed service months. 

2. Compare the G-90 used to pay the final annuity with the RESCUE G-90, and 

determine which deemed service months were removed. 

3. Send an email to the QRSC mailbox and include the following information: 

	 “Deemed Service Months Removed” in the Subject line. 

	 EE’s name and claim number. 

 EE’s ABD. 

	 The year in question. 

	 The date of the G-90 used to pay the annuity. 

	 The date of the RESCUE G-90 that shows the deemed service months 

removed. 

	 Which deemed service months were removed. 

The CESC examiner will determine which of the removed deemed service months 

should be restored, if any, and post them to EDM. The CESC examiner will respond 

with a return email to the RBD mailbox advising that CES action has been completed. 

After you receive the return email from CESC, request a new G-90 and, if necessary, 

adjust the annuity. 

207.7 Effect of Deemed Service Months on Annuity Beginning Date 

and Current Connection 

Credit for deemed service months occasionally may be a factor in selecting an ABD, if 

additional months are needed to establish basic eligibility, increase the Tier 2 amount, 

or create a current connection. 

EXAMPLE: The employee works in all months from January through May 2008, the 

month in which he attains age 60, making him eligible for an ABD of 06/01/2008. His 

reported compensation for the year is $41,000.00. He wants to receive a 60/30 annuity, 

but has only 358 service months through May. Based on his compensation of 

$41,000.00, he can be credited with two deemed service months, if he designates an 

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ABD of 08/01/2008, instead of the earlier ABD of 06/01/2008. This would give him 360 

service months and entitle him to the 60/30 annuity. 

207.8 Year of Service 

Twelve creditable service months, consecutive or not, constitute a year of service. In 

determining the employee's total years of service, part of a year is shown as a fraction. 

For example, 125 months of service is 10 5/12 years. 

207.8.1 Prior to 10-1-81 

Prior to 10-1-81, final fractions of 6 months or more counted as 1 year of service if the 

employee annuity: 

A. Began to accrue before 7-31-46; or 

B. Began to accrue after 7-31-46, was awarded before 10-30-51 and the employee 

had at least 54 months of service; or 

C. Was awarded on or after 10-30-51 and the employee had at least 126 months of 

service. 

207.8.2 Effective 10-1-81 or Later 

Beginning 10-1-81, under the l981 Railroad Retirement Act amendments, an employee 

receives credit for his actual months of service. A fractional year of 6 or more months is 

no longer counted as a full year. An ultimate fraction is taken at its actual value. 

However, the amendments provided a transitional period for implementing this change. 

If the application was filed before 4-1-82, the years of service used on or after 10-1-81 

cannot be less than what the employee had in 9-1981, when an ultimate fraction of 6 

months counted as a full year. 

Example 1: An employee qualified for a 60/30 annuity if he had at least 354 months in 

September 1981 and filed an application before 4-1-82. But, if he filed 4-1-82 or later, 

he must have 360 months to qualify for a 60/30 annuity. 

Example 2: An employee with 27 7/12 years of service in September 1981 filed an 

application before 4-1-82. His annuity computation was based on 28 years, even if he 

had no additional service after September 1981. 

207.9 Service Months Based on Pay for Time Not Worked 

207.9.1 Period Covered by Dismissal Pay 

An employee can receive service months for an identifiable period in which he could 

have been directed to work, if he receives compensation in lieu of notice of dismissal. 

In order to credit the service month, it is sufficient that the employer had the right to 

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exercise the power of direction of the employee's services and could have required the 

employee to work (see FOM1 211, "Pay For Time Not Worked"). 

207.9.2 Period Covered by Pay for Time Lost 

An employee can receive service months for an identifiable period during which a 

person maintained an employment relation, but did not actually perform any service, if 

he was paid compensation for time lost as an employee for that period (see FOM1 211, 

"Pay For Time Not Worked"). 

207.10 Limitations on Service 

207.10.1 Prior Service or Red Cap Service Before 9-1941 

Prior Service (service before 1937) or Red Cap Service before 9-1941 may be included 

in the years of service as explained in FOM1 Art. 2 Appendix A. 

207.10.2 Canadian Service 

Refer to FOM1 205.4. 

207.10.3 Creditability of Military Service 

Military service (M/S) after 1956 may be credited and included in the employee's years 

of service as explained in FOM1 215. When employee service was rendered and M/S 

was credited for the same calendar month, only one month of M/S can be counted. 

207.10.4 Joint Employer Service 

When service was performed for two or more employers in the same calendar month, 

only one month of service can be counted. 

207.10.5 Title VII 

One railroad service month could be credited to the month that an employee filed for 

and received benefits under Title VII of the Regional Rail Reorganization Act. However 

if the employee worked in the railroad industry in that month, no service month can be 

credited based on Title VII filing. 

207.10.6 Service After Annuity Beginning Date 

Active service rendered after an annuity has begun to accrue may be included in the 

years of service, if the additional amount payable would be more than $1.00. However, 

deemed service months (FOM1 207.5) cannot be given. See FOM1 207.12 for 

information about service after the ABD and instructions for handling cases with service 

after the ABD. 

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207.10.7 Service as Delegate to National or International Convention of a Railway 

Labor Organization 

Service performed on or after April 1, 1954 as a delegate to a national or international 

convention of a railway labor organization is not creditable unless the person who 

rendered this service had also performed other service which could be included in his 

years of service. 

207.11 Protest of Service Month Record 

Inquiries about service records should be forwarded to the Office of Programs, Policy & 

Systems-Center of Employer Services (P&S-CESC), Protest Unit. Inquiries from 

employees, labor unions or railroad employers about the crediting of service in specific 

cases should also be referred to the Protest Unit. 

Under Section 9 of the Railroad Retirement Act, RRB's records of service and 

compensation are conclusive, unless an error or omission is reported within 4 years 

after the day on which the initial service month report was required to be made. 

207.12_Railroad Service Months After the Annuity Beginning Date 

207.12.1 General 

The Employee Data Maintenance system (EDM) contains the record of an employee’s 

service months and compensation reported by his or her employer(s). EDM is 

programmed to check for service months after the ABD when either the employee’s 

annual service and compensation report is posted to the earnings record, a service or 

compensation adjustment is made, or an ABD is added or changed. 

Because an annuity is not payable for a month in which an employee is in railroad 

service, service months reported after the ABD can cause an overpayment in an 

employee’s annuity and must be investigated in many cases to determine if the service 

months were reported correctly. If the months were reported correctly, the annuity may 

need to be suspended, an overpayment recovered, or other action may be necessary. 

Service months reported erroneously (e.g., service months reported for payment in lieu 

of vacation) are removed from the employee’s earnings record. 

The main reasons service months after the ABD are reported are: 

	 The employee returns to railroad service; 

	 The employee has months for vacation taken after the ABD; 

	 The employer erroneously reports service months (e.g., for payment in lieu of 

vacation); or 

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	 The ABD is set to a date earlier than the last month of employer service (usually 

in disability annuity cases). 

207.12.2 EDM Service After ABD Indicators 

Both the EDM Employee Demographic Information and Employee Service and RUIA 

Information screens contain a Service After ABD field (see CCOM 104). When there is 

an ABD on the EDM record, an indicator (or flag) appears in the field. No indicator 

means there is no ABD. The indicators are mechanically re-evaluated and reset, if 

necessary, when service months or compensation are added or adjusted, or when an 

ABD is added or changed. The indicators are also reset manually in some cases. 

The indicators and their meanings are: 

LESS THAN 4 SM – There are 0 – 3 service months after the ABD after earnings and/or 

an ABD are posted to EDM. Service months erroneously reported for payment in lieu of 

vacation are assumed and SEARCH will cut back any service months and not include 

them in the computation. No action is necessary. 

INVESTIGATION PENDING – There are 4 or more service months after the ABD. Also, 

the indicator will change to INVESTIGATION PENDING when it is currently set to 

PROPERLY CREDITED SM and any additional service months are posted. Form GL132 has been or will be released. 

RESOLVED – Investigation has been completed. Usually this means Form GL-132 was 

returned and either all the service months after the ABD have been removed, or the 

ABD has been moved to a date after the last reported service month, if allowed by 

reopening rules (see RCM 6.2 for reopening rules). 

PROPERLY CREDITED SM – EE returned to service or, if no longer in service, had 

service after the ABD. All of the service months after the ABD will remain in EDM. RRB 

has taken or will take action to suspend, recover any overpayment, etc. 

UNRESOLVED – Accounts with at least 4 service months after the ABD that will not be 

resolved (typically old cases that were unresolved prior to the conversion to the current 

indicators and processing). No action necessary unless initiated at the Director level. 

207.12.3 Service After ABD After Annual Earnings Report Posted to EDM 

The following occurs when an employer reports service months after the ABD on the 

employee’s annual earnings report. 

A. When the employer reports 3 service months or less after the ABD: 

1. SEARCH assumes the month(s) were erroneously reported for payment in lieu of 

vacation, credits the compensation to the last day worked, and does not use the 

service months in annuity calculations; 

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2. LESS THAN 4 SM is entered in the SERVICE AFTER ABD field of both the EDM 

Employee Demographic Information and Employee Service and RUIA 

Information screens. 

B. When the Employer Reports 4 or More Service Months after the ABD: 

1. The record is flagged for investigation of the service months after the ABD and 

INVESTIGATION PENDING is entered in the SERVICE AFTER ABD fields. 

2. The reported service months are verified with the employer. 

 If the employer indicates all of the service months were reported 

erroneously, the months are removed from EDM and RESOLVED is 

entered in the SERVICE AFTER ABD fields; 

	 If the employer indicates the service months were reported correctly, they 

remain on EDM, PROPERLY CREDITED SM is entered in the SERVICE 

AFTER ABD fields, and the service after ABD information is forwarded to 

RBD, normally on Form GL-132, to review and take the necessary action. 

207.12.4 Service After ABD After Adjustment Made to Earnings Record 

EDM is programmed to check for service months after the ABD whenever a change is 

made to an employee’s EDM record (e.g., additional service months reported, 

compensation amount(s) increased, ABD added or changed, etc.). This can result in 

the employee having 4 or more service months after the ABD when (s)he previously 

had 3 or less. When this occurs, the SERVICE AFTER ABD flag is reset from LESS 

THAN 4 SM to INVESTIGATION PENDING. All of the reported service months after the 

ABD are then investigated, including those that were already posted prior to the 

adjustment (see FOM1 207.12.3, above). 

EXAMPLE: Employee’s ABD is 02/01/2006 and service months were initially reported 

for February, March, and April of 2006. LESS THAN 4 SM was entered in the SERVICE 

AFTER ABD field, and no action was necessary at the time. The employer submits a 

2007 service and compensation report showing a service month reported for March. 

LESS THAN 4 SM is changed to INVESTIGATION PENDING in the SERVICE AFTER 

ABD field, and all 4 service months are investigated. 

207.12.5 Investigating Service Months After ABD 

A. CESC Investigates Service After ABD 

CESC of P&S has the primary responsibility for investigating service months after the 

ABD. The cases requiring investigation primarily are identified in its biannual Return to 

Service Project. However, individual cases may be referred to CESC by RBD. 

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CESC generally runs the Return to Service Project twice a year; once in summer, after 

all annual service and compensation reports have been posted; and once at the end of 

the year to include any subsequent service and compensation adjustments. 

When the project is run, Form GL-132, “Notice of Service Reported for Annuitant Who Is 

Receiving an RRB Annuity”, is printed for each employee with 4 or more service months 

posted after the ABD, “Investigation Pending” in the EDM Service After Annuity 

Beginning Date (SAABD) field, and service months after the ABD were reported for 

months within the four year period prior to the current year (if the project is run in 2009, 

a GL-132 is printed for each employee with reported service months after the ABD in 

2005 or later). Form GL-132 is not printed when the employee’s annuity is suspended 

or terminated with one of the following codes at the time the project is run: 

	 01 – Death 

	 02 – Returned to employer service 

	 08 – Recovery from disability 

	 09 – Disabled with excess earnings 

	 20 – Return to substantial gainful activity 

	 61 – Application or award cancelled 

	 62 – Deletion of CHICO record. 

CESC sends the forms to the respective railroad employers to verify that the service 

months after the ABD were reported correctly. 

The Quality Reporting Service Center (QRSC) in CESC removes the service months 

from the record if the employer responds that the service months were reported 

erroneously (e.g., for payment in lieu of vacation). 

CESC forwards Form GL-132 to RBD when: 

 The employer indicates the employee returned to service; 

	 The employer indicates the service months were reported correctly for reasons 

other than returning to railroad service (e.g., was paid for vacation taken); or 

	 The employer indicates some, but not all, of the service months were reported 

erroneously and 4 or more service months after the ABD remain after the 

erroneous months are removed. 

If the Form GL-132 is not fully completed, the information on it conflicts with the action 

taken on EDM, or the appropriate change to the SAABD indicator was not made, make 

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a copy of the form for the employee file and return the original to CESC, notating on the 

form why you are returning it to CESC. 

The following chart provides a summary of the action CESC takes based on the 

information the employer provides. 

Months After the ABD Are: CES Action: 

Return to service  Leave months on EDM 

 Set EDM SAABD flag to PROPERLY 

CREDITED SERVICE MONTHS 

 Forward GL-132 to RBD 

Payment for vacation taken  Leave months on EDM 

 Set EDM SAABD flag to PROPERLY 

CREDITED SERVICE MONTHS 

 Forward GL-132 to RBD 

Separation Allowance  Remove months from EDM 

 Set EDM SAABD flag to Resolved 

CESC does not forward GL-132 to RBD 

when months are separation allowance. 

Pay for time lost  Leave months on EDM 

 Set EDM SAABD flag to PROPERLY 

CREDITED SERVICE MONTHS 

 Forward GL-132 to RBD 

Dismissal Allowance  Leave months on EDM 

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 Set EDM SAABD flag to PROPERLY 

CREDITED SERVICE MONTHS 

 Forward GL-132 to RBD 

Guarantee Pay  Leave months on EDM 

 Set EDM SAABD flag to PROPERLY 

CREDITED SERVICE MONTHS 

 Forward GL-132 to RBD 

Reported in error  Remove months from EDM 

 Set EDM SAABD flag to RESOLVED 

CESC does not forward GL-132 to RBD 

when months are reported in error. 

Payment in lieu of vacation  Remove months from EDM 

 Set EDM SAABD flag to RESOLVED 

CESC does not forward GL-132 to RBD 

when months are payment in lieu of 

vacation. 

B. When RBD Should Request CESC to Investigate 

1. EDM SAABD Indicator Is “Investigation Pending” 

When the EDM Service After ABD indicator is “Investigation Pending”, request 

CESC to investigate when: 

 CESC has performed the Return to Service Project (see “NOTE”, below); and 

 The case is not on Universal STAR with Category Code CES132. 

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CES132 is the Category Code used for CESC’s Return to Service Project and 

indicates Forms GL-132 have been released to employers. 

NOTE: CESC generally does not perform the Return to Service Project until June 

or July. Unless a priority case, service after ABD cases should be held until after 

the SAABD program is run and the cases are entered on Universal STAR. 

2. EDM SAABD Indicator Is Other Than “Investigation Pending” 

Request CESC to investigate when the EDM SAABD Indicator is other than 

“Investigation Pending” only when RRB receives documentation that conflicts 

with the service month after the ABD information posted to EDM or a GL-132 

returned by the employer. 

If there is no GL-132 in file for a given year and no documentation that shows 

conflicting service month information for that year, assume all service months 

after the ABD have been properly investigated and the appropriate changes to 

the EDM record have been made. 

C. When RBD Should Not Request CESC to Investigate 

1. EDM SAABD Indicator Is “Investigation Pending 

When the EDM Service After ABD indicator is “Investigation Pending”, do not 

request CES to investigate when: 

 CESC has performed the Return to Service Project (see “NOTE”, below); and 

 The case is on Universal STAR with Category Code CES132. 

CES132 is the Category Code used for CESC’s Return to Service Project and 

indicates Forms GL-132 have been released to employers. 

Pend these cases for the receipt of a GL-132 from CESC. Do not pend for less 

than 2 months, the length of CESC’s complete tracing schedule (see 

CCOM 1205.4). 

NOTE: CESC generally does not perform the Return to Service Project until June 

or July. Unless a priority case, service after ABD cases should be held until after 

the SAABD program is run and the cases are entered on Universal STAR. 

2. EDM SAABD Indicator Is Other Than “Investigation Pending” 

When the EDM SAABD indicator is other than “Investigation Pending”, assume 

service months have been investigated and necessary changes to EDM made. 

Do not request CESC to investigate service months after the ABD unless RRB 

has received documentation that conflicts with the information on EDM or a 

completed GL-132 returned by the employer. 

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D. How to Request CESC to Investigate 

Request CESC to investigate service after the ABD by sending an email to the 

QRSC mailbox. The email should include the following: 

	 “RR Service After ABD” in the email subject line; 

	 The claim number, employee name, and BA number of the employer; 

	 A statement requesting CESC to investigate the service after the ABD; and 

	 Any information relating to the service after the ABD available from the file, 

imaging, etc. 

In most cases, CES will fax Form GL-132 to the employer. If RBD handling is 

required based on the information on the returned form, CESC will send the 

GL-132 to the RBD Director’s office. If RBD handling is not required, CESC will 

take its action and send an email to the requestor describing what action they 

took. Allow 45 days for CESC to respond to the initial request. 

207.12.6 RBD Receives Form GL-132 from CESC 

RBD is responsible for handling any adjudication required based on the service after 

ABD information on Form GL-132. This includes: 

	 Suspending the annuity if the annuitant is still in RR service; 

	 Determining if the additional months have an impact on entitlement for the employee 

or his family; 

	 Calculating any overpayment and taking recovery action; 

	 Making any necessary adjustments to the annuity to include the additional service; 

	 Changing the ABD (See FOM1 207.12.7); and 

	 Coordinating with DBD when the service could impact the annuitant’s disability 

rating. 

RBD is also responsible for imaging the GL-132 when its handling is completed. 

The following chart provides a summary of RBD action based on the information the 

employer provides. 

Months After the ABD are: RBD Action: 

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Return to service  Take all required adjudicative action. 

 Code EE-SPEC-CALC-CD in PREH to a ‘1’ if 

ABD is not changed. 

Payment for vacation taken  If additional months do not benefit EE or family, 

no action is necessary. 

 If additional months benefit EE or family, take all 

required adjudicative action. 

 Code EE-SPEC-CALC-CD in PREH to a ‘1’ if 

ABD is not changed. 

Separation allowance  Review previous use of SAABD. 

 Close open RESCUE referral (case will be 

included in next RESCUE run). 

Pay for time lost  Take all required adjudicative action. 

 Code EE-SPEC-CALC-CD in PREH to a ‘1’ if 

ABD is not changed. 

Dismissal allowance  Take all required adjudicative action. 

 Code EE-SPEC-CALC-CD in PREH to a ‘1’ if 

ABD is not changed. 

Guarantee Pay  Take all required adjudicative action. 

 Code EE-SPEC-CALC-CD in PREH to a ‘1’ if 

ABD is not changed. 

Reported in error  Review previous use of SAABD. 

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 Close open RESCUE referral (case will be 

included in next RESCUE run). 

Payment in lieu of vacation  Review previous use of SAABD. 

 Close open RESCUE referral (case will be 

included in next RESCUE run). 

NOTE: In rare situations, CESC may be unable to obtain the SAABD information from 

the employer. If CESC informs you that this is the case, no action is necessary on the 

SAABD since RRB cannot verify that the service months were reported correctly. 

207.12.7 Changing the ABD 

Whether an ABD should be changed depends on the type of service months posted, 

and whether the months must be consecutive from the current ABD. Use the following 

guidelines to determine if an ABD should be changed. 

A. When Months After ABD are Return to Service or Pay for Time Lost: 

	 If the service months are consecutive to the original DLWRR or ABD (the 

employee remained in railroad service), the ABD must be changed to the day 

after the new DLWRR provided on the GL-132. If a new DLWRR is not provided, 

change the ABD to the 1st day of the month following the last railroad month 

posted. 

	 If the service months are not consecutive to the original DLWRR or ABD (i.e., the 

employee returned to railroad service), the ABD is not changed. 

EXAMPLE #1 – ABD Changed: EE receives a reduced age 62 annuity with 250 

service months credited through his ABD of 04/01/2007. The employer reported 

service months for April, May, June, July, and August of 2007. Change the ABD to 

09/01/2007. Adjust the annuity from the new ABD of 09/01/2007 and recover the 

overpayment for the 5 months worked. 

EXAMPLE #2 – ABD Not Changed: EE receives a reduced age 62 annuity with 250 

service months credited through his ABD of 04/01/2007. The employer reported 

service months for July, August, September, and October. Because the additional 

months are not consecutive to the original DLWRR or ABD, do not change the ABD. 

Adjust the annuity from November 2007 (month after last month worked) and 

recover the overpayment for the 4 months worked. Code PREH for return to 

service. 

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EXAMPLE #3 – ABD Changed (EE becomes entitled to different type of annuity): EE 

receives a reduced age 62 annuity with 356 service months credited through his 

ABD of 04/01/2007. The employer reported service months for April, May, June, 

and July. The employee is now eligible for a full 60/30 annuity, because he now has 

360 service months. Pay the full 60/30 annuity with an ABD of 08/01/2007. Assess 

the overpayment for the 4 additional service months from 04/2007 through 08/2007. 

EXAMPLE #4 – ABD Changed (Months not consecutive, but EE becomes entitled to 

different type of retirement annuity): EE receives a reduced age 62 annuity with 356 

service months credited through his ABD of 04/01/2007. The employer reported 

service months for July, August, September, and October 2007. The employee is 

now eligible for a full 60/30 annuity, because he now has 360 service months. 

Because this is a different type of retirement annuity, change the ABD and pay the 

full 60/30 annuity effective 11/01/2007, even though the service months are not 

consecutive from the original ABD. Assess the overpayment for the 4 additional 

service months from 07/2007 through 10/2007. Code PREH for the new annuity 

type. 

EXAMPLE #5 – ABD Not Changed (Large gap between ABD and SAABD): EE 

(DOB 10/31/1949) receives an occupational disability annuity with 400 service 

months credited through his ABD of 12/01/2004. The employer reported service 

months for June, July, August, September, and October 2006; and January, March, 

and August 2007. Because the additional months are not consecutive to the ABD or 

DLWRR, do not change the ABD. Adjust the annuity at each break in service and 

recover the overpayment for the 8 months worked. Code PREH for return to 

service. 

B. When Months After ABD Are for Payment in Lieu of Vacation. 

1. Since the months have been removed, review previous action, if any, that was 

taken based on the original SAABD months. Reverse the previous action. 

2. Close the referral on USTAR, if one is pending. 

C. When Months after ABD are for Vacation Taken. 

Determine if the additional months benefit the employee or family. 

1. If the months do not benefit the employee or family, close the referral on 

USTAR, if one is pending. No further action is necessary. 

IMPORTANT NOTE: Service months for vacation taken that are not credited are 

not removed from EDM (see FOM1 210.2.1). An overpayment should not be 

assessed for service months after the ABD when the service months are for 

vacation taken and have not been credited. 

2. If the months benefit the employee or family: 

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	 Calculate the annuity with the additional service months included, as well 

as the net overpayment. 

	 E-mail the field requesting them to provide the employer with the 

information and ask him or her to decide if he wants his annuity adjusted. 

	 If the employee wants his annuity adjusted to include the vacation months, 

have the field obtain a signed statement from him (see FOM1 207.12.8.B). 

	 When the field has obtained the employee’s signed statement, adjust the 

annuity and recover the overpayment for those months. 

NOTE: If the vacation months are not consecutive to the DLW-RR and EE 

would lose more months than will be added if the ABD is changed, the 

vacation months can be considered a return to service and the ABD can 

remain unchanged. 

	 If the employee does not want his annuity adjusted to include the vacation 

months, close the referral on USTAR, if one is pending. No further action 

is necessary. 

207.12.8 Special Situations 

A. Service Months after ABD Needed to Qualify for Benefits 

An employee may have enough service months on EDM to qualify for additional 

benefits, but because his annuity was paid based on fewer service months than 

required for those benefits, they are not payable. However, the employee has the 

option of using any service months after the ABD to attain the required number of 

service months needed, including service months reported for return to railroad service. 

If the employee wishes to use months after the ABD, the current ABD can be changed 

or kept, depending on what most benefits the employee or family (an ABD can be 

changed only if the months are consecutive from the original ABD). However, this 

generally can be done only within 4 years from the date the annuity was initially 

awarded (see RCM 6.2 for reopening rules). In either case, the annuity is not payable 

for the service month(s) used to qualify for the additional benefits, and must be 

recovered. 

When additional months are used for a Supplemental Annuity, if the required service 

months to qualify are attained after the employee has already attained the required age, 

the Supplemental Annuity beginning date is the month following the month the required 

service months are attained (see FOM1 315.3). 

B. Spouse Files for Full Age Annuity – EE Disability Annuity Based on Less Than 

360 Months 

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This is an example of a common situation in which additional months are needed to 

qualify for benefits. Other situations should be handled similarly. 

A spouse files an application for a full age spouse annuity. The employee’s earnings 

record indicates he has 360 service months (an employee probably would be aware of 

this from his BA-6). However, she does not qualify for the spouse annuity, because the 

employee’s disability annuity was paid based on less than 360 service months through 

his ABD. 

1. Field Office Handling 

When a spouse files for a full age spouse annuity and the employee is a disability 

annuitant, verify the number of service months credited through his ABD by 

accessing the PREH 3300 screen. Refer to these fields on the left side of the 

screen: 

 YOS-TOT-CNT (Indicates total full years of service) 

	 YOS-TOT-RMDR-MO-CNT (Indicates additional service months following 

the last full year of service) 

If the YOS-TOT-CNT is 30 or more, no further action is necessary and the 

application can be submitted for payment. 

If the YOS-TOT-CNT is less than 30, do the following: 

a) Determine the total number of service months through the employee’s ABD. 

Use this formula, if necessary: 

(YOS-TOT-CNT x 12) + YOS-TOT-RMDR-MO-CNT = Total ABD SM 

EXAMPLE: (29 yrs. X 12) + 9 mos. = 357 Total SM on the ABD 

b) Access the EDM Employee Service and Earnings Totals screen (PF16) to 

verify that the employee has at least 360 total creditable service months (see 

TOTAL CREDITABLE in the left column under SERVICE MONTHS 

TOTALS). 

c) If TOTAL CREDITABLE is 360 or more, determine the difference between 

360 and the number of service months through the ABD. This is the number 

of additional months the employee needs for the spouse to qualify for the full 

age spouse annuity. 

d) Advise the employee of the following: 

	 Although his service and compensation record indicates he has at least 

360 service months, his annuity is based on (give # of SM), which does 

not qualify the spouse for the full age spouse annuity; 

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	 (# of SM) additional service months need to be used to attain 360 and 

qualify the spouse for the annuity; 

	 RRB may reset the employee’s ABD if it is to both the employee’s and 

spouse’s advantage and it is less than 4 years from the date his disability 

annuity was initially awarded; 

	 Annuity payments for the additional months that are used must be 

recovered. Provide an estimate of the overpayment amount [(# of 

additional months needed) x (current monthly annuity payment) = 

estimated O/P]. Also advise that all accruals will be applied to the 

overpayment. If an overpayment remains after the accruals are applied, a 

letter will be sent that will include the final overpayment amount and 

repayment options. In most cases, the options are: 

- Refunding the overpayment by cash or credit card; 

- Suspending an annuity until the overpayment amount is recovered (full 

withholding); or 

- Withholding part of the monthly annuity payment for a set period of time 

(partial withholding), usually 48 months (i.e., O/P  48 = amount withheld 

monthly). 

e) If the employee agrees to have the additional service months used, secure a 

signed statement from him in which he states that he: 

	 Agrees to have (# months) additional service months used in order for his 

spouse to qualify for a full age spouse annuity; and 

	 Understands the annuity payments for those months must be recovered, 

and that the estimated overpayment amount is [(# additional months to be 

used) x (current monthly annuity payment) = estimated overpayment]. 

f) When the employee submits the signed statement, refer the case to RBD for 

handling. Indicate in Remarks that the employee’s annuity was based on less 

than 360 SM on the ABD, he wants to use additional months to give him 360 

SM to qualify the spouse for an annuity, and he has submitted his signed 

statement. 

g) If the employee does not submit a signed statement or indicates he does not 

want additional months used to qualify the spouse, submit the spouse 

application for denial. 

2. RBD Handling 

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a) When the field office submits an application for RBD handling or notifies RBD 

they have secured the signed statement (if the application was already 

submitted): 

	 Calculate both the employee’s and spouse’s annuities with the current 

employee ABD and also with the ABD reset to the month following the last 

additional service month used (if it has been less than 4 years from the 

date the annuity was initially awarded, per the reopening rules in RCM 6.2 

). 

	 Pay the initial spouse annuity and recertify the employee’s annuity using 

the most advantageous of the two computations. Apply all accruals to the 

overpayment. 

	 Recover any remaining overpayment per current procedure. 

b) If a case rejects on RASI (Reject Code 083 – SPOUSE TOO YOUNG FOR 

BENEFIT CLAIMED): 

	 Do not deny the application. Email the field office advising that the case 

rejected and request them to secure a signed statement from the 

employee, per the field office handling instructions, above. 

	 When the field office notifies RBD they have secured the statement, pay 

the initial spouse annuity and recertify the employee’s annuity. Apply all 

accruals to the overpayment. 

	 Recover any remaining overpayment per current procedure. 

c) If the employee has less than 4 reported service months after the ABD (EDM 

SAABD flag is LESS THAN 4 SM): 

Send an e-mail to the QRSC mailbox requesting that the service months after 

the ABD be verified. The e-mail should include the following information: 

	 “Verify Service Months for Additional Benefits” in the subject line; 

	 The claim number, employee name, BA number, ABD, and the service 

months that need to be verified; and 

	 A general statement that the service months after the ABD need to be 

verified, because the employee needs additional service months for 

additional benefits. 

	 After they have completed their investigation, CESC will send a return 

e-mail to the RBD mailbox advising whether all reported months are valid 

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service months, none are valid service months, or if only some are valid 

service months, which months they are. 

If there are no longer enough valid service months for the employee to qualify 

for additional benefits, request the field office to inform the employee that this 

is the case. If an application has been submitted, deny the application. 

If there are enough properly reported service months for the additional 

benefits to be paid, handle following the instructions in 2(a) or 2(b), above. 

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