FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 1 of 52

325.5 Overall Minimum Defined

The overall minimum (O/M) guaranty is a provision of the Railroad Retirement Act (RR 

Act) that guarantees the employee and his family the same amount of benefits that 

would be payable under the Social Security Act (SS Act) if his railroad earnings were 

wages under the SS Act. The O/M applies if benefits payable under the O/M formula 

exceed the benefits payable to the employee, spouse and divorced spouse under the 

railroad formula.

In determining the O/M amount, all persons in the family group who could qualify for 

benefits under the SS Act are taken into account. The additional amount provided 

under the O/M is prorated between the employee and the spouse if the spouse is 

eligible for a railroad annuity. If the spouse is not eligible for an annuity, the amount of 

the increase under the O/M is included in the employee's annuity. A divorced spouse's 

O/M share is not prorated, because her O/M benefit is not reduced for the family 

maximum.

The term "spouse" in this chapter does not include a divorced spouse unless there is a 

specific reference to a divorced spouse.

325.5.1 Retirement Overall Minimum Provisions of the 1937 RR Act

The retirement O/M provision of section 3(e) of the 1937 RR Act guarantees that, 

effective 6-1-59, the total annuities payable for a full month to an employee and his 

family will not be less than 110% of the monthly amount which would be payable under 

the SS Act if railroad service after 1936 were credited as employment under the SS Act.

To be entitled to this retirement O/M computation, the employee must have filed his 

annuity application and have an annuity beginning date (ABD) before January 1, 1975. 

These benefits were converted to 1974 RR Act rates effective 1-1-75.

325.5.2 Retirement Overall Minimum Provisions of the 1974 RR Act

A. 110% grandfather retirement overall minimum -- The 110% retirement O/M 

provision of section 3(f)(2) of the 1974 Railroad Retirement Act guaranteed that, 

when an employee's annuity under the 1974 RR Act began to accrue after 

December 31, 1974, but before January l, 1983, the total monthly annuities 

(including any supplemental annuity payable before age 65 but excluding any 

vested dual benefit) payable to an employee and his family would not be less 

than the total amount that would have been payable under the retirement O/M 

provisions of the 1937 RR Act as in effect on December 31, 1974.

To be entitled to this retirement O/M computation, the employee must have filed 

his annuity application or have an annuity beginning date after December 31, 

1974.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 2 of 52

This provision no longer applied in most cases beginning 6-1-1976. Cumulative 

cost of living increases by 6-1-1976 caused the 100% retirement O/M rate to 

exceed the 12-31-1974 retirement O/M rate.

B. 100% retirement overall minimum -- The 100% retirement O/M provision of 

section 3(f)(3) of the 1974 RR Act guarantees that the total monthly benefits 

payable (including any vested dual benefit but excluding any supplemental 

annuity) to an employee and his family will not be less than the monthly amount 

which would be payable under the SS Act if railroad service after 1936 were 

credited as employment under the SS Act. To be entitled to this O/M 

computation, the employee must have filed his annuity application or have an 

annuity beginning date after December 31, 1974.

325.10 Types of Overall Minimum

There are three types of retirement overall minimum (O/M) payments possible, 

depending on the status of the employee.

325.10.1 Full Overall Minimum

The employee may be entitled to the full age and service (A&S) retirement O/M 

computation if he has attained Social Security Act (SS Act) retirement age before the 

retirement O/M effective date.

The spouse must have attained age 62 or have an eligible child of the employee in care 

to be included in the full retirement O/M computation. If the spouse is under SS Act 

retirement age and does not have an eligible child of the employee in care on the date 

the spouse is included in the full retirement O/M computation, the spouse retirement 

O/M share is reduced for age.

A divorced spouse may be included in the retirement O/M only if she is entitled to a 

divorced spouse annuity. See FOM-I-325.20. The employee and divorced spouse 

must have attained age 62. A divorced spouse is not eligible before age 62 based on a 

child in care. The divorced spouse's retirement O/M share is reduced for age if she is 

under SS Act retirement age, even if she does have a child in care.

325.10.2 Reduced Overall Minimum

The employee may be entitled to a reduced age and service retirement O/M 

computation if he has attained age 62. The employee's retirement O/M share is 

reduced for the months the employee is under SS Act retirement age on the retirement 

O/M effective date. If the employee is under SS Act retirement age on his/her ABD, the 

employee's retirement O/M share is reduced for age, regardless of the number of 

railroad service months (s)he may have.

The spouse must have attained age 62 or have an eligible child of the employee in care 

to be included in the reduced retirement O/M computation. If the spouse is under SS 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 3 of 52

Act retirement age and does not have an eligible child of the employee in care on the 

date the spouse is included in the reduced retirement O/M computation, the spouse 

retirement O/M share is reduced for age.

A divorced spouse may be included in the retirement O/M only if she is entitled to a 

divorced spouse annuity. See FOM-I-325.20. The employee and divorced spouse 

must have attained age 62. A divorced spouse is not eligible before age 62 based on a 

child in care. The divorced spouse's retirement O/M share is reduced for age if she is

under SS Act retirement age, even if she does have a child in care.

325.10.3 Disability Retirement Overall Minimum

The disability retirement overall minimum (DIB O/M) may be paid to the employee with a 

disability freeze and a DIB (disability insurance benefit) insured status at any age up to 

SS Act retirement age without an age reduction. The DIB retirement O/M is converted 

to a full age retirement O/M in the month the employee attains SS Act retirement age, if 

the retirement O/M is still applicable.

The spouse must have attained age 62 or have an eligible child of the employee in care 

to be included in the DIB retirement O/M computation. If the spouse is under SS Act 

retirement age and does not have an eligible child of the employee in care on the date 

the spouse is included in the DIB retirement O/M computation, the spouse retirement 

O/M share is reduced for age.

A divorced spouse may be included in the DIB retirement O/M only if she is entitled to a 

divorced spouse annuity. See FOM-I-325.20. The employee and divorced spouse 

must have attained age 62. A divorced spouse is not eligible before age 62 based on a 

child in care. The divorced spouse's DIB retirement O/M share is reduced for age if she 

is under SS Act retirement age, even if she does have a child in care.

325.15 Requirements for Employee Retirement Overall Minimum 

Increase

325.15.1 Retirement Overall Minimum Based on Age and Service

In order to have an annuity increased under the retirement overall minimum (O/M) 

based on age and service, the employee must:

A. Have filed an annuity application; and,

B. Have 120 or more months of railroad service; or at least 60 months of railroad 

service after 1995; and,

C. Have ceased all RR service; and,

D. Have relinquished all rights to return to the service of employers under the 

Railroad Retirement Act (RR Act); and,
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 4 of 52

E. Have attained age 62. Effective 9-1-81, an employee must be age 62 for a full 

month before he is eligible for the Retirement O/M.

The employee is age 62 for a full month if his 62nd birthday is on the first or 

second day of the month. If his 62nd birthday is on or after the third day of the 

month, the retirement O/M may not begin until the first day of the following 

month.

Before 9-1-81, the employee was eligible for the retirement O/M the first day of 

the month in which he attained age 62; and

F. Be fully insured under the Social Security Act (SS Act) using the employee's 

combined railroad service after 1936 and wages (PIA 9). The employee's 

railroad service is treated as employment covered under the SS Act when 

determining the employee's insured status for the retirement O/M computation. 

For example, an employee who needs 28 quarters of coverage (QCs) for an 

insured status under the SS Act is insured for the retirement O/M if he has 28 

compensation (railroad) quarters of coverage.

The fully insured status of the employee also entitles his spouse, divorced 

spouse annuitant or children to be included in the retirement O/M computation as 

long as they meet the other requirements for retirement O/M entitlement. 

The retirement O/M fully insured status determination is separate from the 

determination of vested dual benefit (VDB) insured status. VDB insured status is 

based on wages only, as explained in FOM 230.

G. The employee must not be subject to suspension due to criminal activity, be a 

fugitive felon, or a probation or parole violator, or be removed/deported from the 

United States. Please see FOM1 150 for information on how to determine 

whether any of these suspension events applies and, if so, how to handle the 

case from that point on. 

325.15.2 Retirement O/M Based on Disability

In order to have an annuity increased under the retirement O/M based on disability, the 

employee must:

A. Have filed an application for a disability annuity; and

B. Have 120 or more months of railroad service; or at least 60 months of railroad 

service after 1995; and

C. Have ceased all RR service; and

D. Be totally and permanently disabled within the meaning of the SS Act (i.e., he 

must have a disability freeze). Felony conviction may affect the disability rating 

for the Disability O/M; see FOM-I-1305.20. Payment of disability or retirement 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 5 of 52

O/M benefits may be withheld and the tier 1 may be withheld or taxed as all 

NSSEB if the employee is subject to any of the suspension rules found in 

FOM1 150, Criminal Activity Cases, or is removed/deported from the U.S.

E. Have a disability insured status under the SS Act using the employee's combined 

railroad service after 1936 and wages. The employee's railroad service is treated 

as employment covered under the SS Act when determining the employee's 

disability insured status for the retirement O/M computation.

To have a disability insured status, an employee must be fully insured under the 

SS Act (railroad compensation is treated as wages) and must have at least 20 

quarters of coverage in a period of 40 consecutive calendar quarters ending with 

the quarter in which the disability onset is established. (Disability insured status 

requirements are outlined in FOM-I-230.)

The employee's disability insured status also entitles his spouse, divorced 

spouse annuitant, or children to be included in the disability retirement O/M 

computation as long as they meet the other requirements for retirement O/M 

entitlement; and

The disability insured status determination for the disability retirement O/M is 

separate from the determination of VDB insured status. VDB insured status is 

based on wages only, as explained in FOM 230.

F. Serve a waiting period, if required. Under SS Act rules, an employee must have 

been under a continuous period of disability for 5 full calendar months before 

entitlement to the disability O/M. A waiting period is not required if the 

annuitant's previous disability freeze (DF) or disability ended within 60 months 

before the month his current disability began. (The waiting period requirements 

are outlined in FOM-I-230.)

325.20 Ineligible Person Included Defined

A spouse who is not receiving a railroad retirement spouse annuity or a child may be 

included in the retirement overall minimum (O/M) as an "ineligible person included" 

(IPI), if she would be entitled to an auxiliary social security benefit if the employee's 

railroad service were covered under the Social Security Act (SS Act) and she is not 

excluded under the Railroad Retirement Act (RR Act).

An auxiliary beneficiary under the SS Act is a person in a retirement case, other than 

the wage earner, who would be entitled to benefits on the wage earner's account if the 

Social Security Administration had jurisdiction of payments.

The 1972 Technical Amendments to the 1937 RR Act and section 3(f)(3)(i) of the 1974 

RR Act exclude a divorced spouse and a not living with spouse from the retirement O/M 

computation. Any divorced or not living with spouse who was included in the retirement 

O/M prior to 10-5-72 continued to be included until the retirement O/M no longer 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 6 of 52

applied, the annuity was terminated or the spouse could no longer qualify for a benefit 

under the SS Act.

Beginning 10-l-81, a divorced spouse may be included in the retirement O/M only if she 

is entitled to a divorced spouse annuity. A divorced spouse who is not entitled to an 

annuity cannot be included in the retirement O/M as an IPI, because of the 1972 

Technical Amendments.

325.25 Eligibility of Spouse Under The Overall Minimum

If the employee has attained age 62 or is entitled to a disability freeze (DF) and is 

insured under the Social Security Act (SS Act) (RR service after 1936 is treated as SS 

Act employment in determining insured status), the spouse may be included in the 

family group for the purpose of computing the retirement O/M if she meets the following 

requirements:

325.25.1 Age Requirement 

A male or female spouse is entitled at any age if he or she has the employee's minor or 

disabled child in care; see FOM-I-325.25.5.

A male or female spouse may be entitled to a reduced spouse benefit at age 62 or a full 

spouse benefit at SS Act retirement age under the retirement O/M computation.

Beginning 9-1-81, the employee and spouse must be age 62 for a full month before the 

spouse may be included in the O/M. If her 62nd birthday is on the first or second day of 

the month, she may be included beginning the first day of that month. If her 62nd 

birthday is on or after the third day of the month, she may not be included until the first 

day of the following month. If the employee is a disability annuitant or has a DF, the 

spouse may be included in the retirement O/M the first day of the month in which the 

employee attains age 62. The spouse, however, always has to be age 62 for a full 

month.

Before 9-1-81, the spouse was eligible for the retirement O/M the first day of the month 

in which she attained age 62.

If you receive an inquiry from a spouse who is eligible for a reduced spouse benefit 

under the retirement O/M but is not eligible for an RR spouse annuity because the 

employee does not meet the age requirement to qualify the spouse for an annuity, refer 

to FOM-I-325.150 - "Spouse Retirement O/M Elections."

If a spouse meets the age requirements and other eligibility requirements (e.g., ceases 

last person service) for an RR spouse annuity and the employee is old enough to qualify 

the spouse for an RR spouse annuity, the spouse should file an application Form AA-3 

(Application for Spouse/Divorced Spouse Annuity). 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 7 of 52

325.25.2 Marriage Requirement 

To be included in the family retirement O/M computation, the spouse must be:

A. The legal or deemed spouse; and either

B. The natural parent of the employee's child (the child need not still survive); or

C. Married to the employee for at least one year; or

D. Eligible for a widow(er), parent, or disabled child insurance annuity under the RR 

Act in the month before the month the spouse married the employee.

A spouse is considered eligible under the RR Act if the spouse meets all the 

requirements for entitlement under that act, other than the filing of an application 

and the attainment of the required age; or

E. Entitled or potentially entitled to a widow(er)'s, parent's, or disabled child's benefit 

under the SS Act in the month the spouse married the employee.

A spouse is considered potentially entitled under the SS Act if the spouse meets 

all the requirements for entitlement under that act, other than the filing of an 

application and the attainment of the required age.

325.25.3 Living With Requirement

The 1983 RR amendments eliminated the living with requirement except when:

A. The spouse could be included in the retirement O/M as a de facto (deemed) 

spouse; or

B. The spouse could be included prior to 8-12-83. The spouse must, on the 

retirement O/M effective date:

1. Be a member of the employee's household; or

2. Receive regular contributions from the employee toward support; or

3. Have a court order requiring the employee to contribute towards her 

support.

325.25.4 Dependency Requirement 

A husband must have been dependent on the railroad employee for one-half of his 

support in order to be included in the retirement O/M before 3-1-1977.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 8 of 52

325.25.5 Eligibility Based on Child in Care 

A spouse may be included in the retirement O/M at any age if he or she has the 

employee's minor or disabled child in care. A male spouse with a child of the employee 

in his care became eligible for inclusion in the retirement O/M effective December 1, 

1978.

The child must meet the eligibility requirements listed in FOM-I-325.30.2 - 325.30.5. 

The 1981 SS Act amendments changed the child's age requirements for the spouse's

eligibility. The age requirements for the child's eligibility in FOM-I-325.30.l are 

unchanged.

The amendments also require that a spouse have a child in care for a full month, unless 

the spouse was born before 9-2-19. The child must be eligible for a full month before 

he may be included in the O/M.

A. Child's age requirement for spouse's eligibility

1. When the spouse is first eligible based on a minor child in care 9-1-81 or 

later, the child must be under age 16.

2. When the spouse is eligible in August 1981 based on a minor child in 

care, the child must be under age 18. However, the spouse's eligibility 

terminates 8-31-83 if the child has attained age 16. Beginning 9-1-83, a 

spouse must have in care a child under age 16.

3. A spouse may be included in the retirement O/M if she has a disabled 

child in care. The child must be age 16 or over, with a permanent 

disability that began before age 22 and prevents any kind of regular 

employment. A child may be rated disabled at age 16-18 to qualify a 

spouse, if the spouse is not eligible because the minor child is age 16-18. 

B. Full month care requirement - Under the 1981 SS Act amendments, a spouse 

must have a child in care throughout the entire month before she may be 

included in the O/M. The requirement does not apply if the spouse attained age 

62 before 9-1-81 (date of birth before 9-2-19).

The child must also meet the eligibility requirements for a full month (see FOM-I325.30.5) before the spouse is eligible based on having the child in care.

325.26 Eligibility Of Divorced Spouse Under The Overall Minimum

A divorced spouse must be entitled to a divorced spouse annuity to be included in the 

overall minimum (O/M). All the requirements in FOM-I-320.11 must be met.

The employee and divorced spouse must be age 62 for a full month before the divorced 

spouse may be included in the retirement O/M. If the employee has a disability freeze 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 9 of 52

(DF), the divorced spouse could be included in the retirement O/M the first day of the 

month in which the employee attains age 62. The divorced spouse, however, always

has to be age 62 for a full month.

A divorced spouse is not eligible before age 62 based on having a child in care.

325.30 Eligibility Of Child Under The Retirement Overall Minimum 

The 1937 and 1974 Railroad Retirement Acts (RR Acts) does not currently provide a 

child's annuity in retirement cases. However, if the employee has attained age 62 or is 

entitled to a disability freeze (DF) and is insured under the Social Security Act (SS Act) 

(RR service after 1936 is treated as SS Act employment in determining insured status), 

a child may be included in the family group for the purpose of computing the retirement 

O/M if he meets the requirements outlined below.

325.30.1 Age Requirement

The child must be:

A. Under age 18; or

B. Age 18 or over and either:

1. A full-time student (FTS) as defined in FOM-I-5; or

2. Disabled before age 22.

325.30.2 Relationship Requirement 

The child must be the child, stepchild, grandchild or step-grandchild of the wage earner. 

The child meets this requirement if he meets one of the conditions below. The child 

must be:

A. A natural, legitimate child who is:

1. A child of a valid ceremonial marriage; or

2. A child of a voidable marriage; or

3. A child of a void marriage, in some states; or

4. A child legitimated under applicable state law; or

5. A legitimate child under state law even though there has been no marriage 

or act of legitimation; or 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 10 of 52

B. An illegitimate child, if the child would have rights under applicable state law for 

the purpose of inheriting the employee's intestate (without a will) personal 

property; or

C. A stepchild. The marriage of the employee and the child's parent must take 

place one year before the child otherwise qualifies for inclusion in the O/M. The 

month in which the first anniversary date occurs is the first month the stepchild 

may be included in the O/M; or

D. A legally adopted child. The child may be adopted at any time. However, if the 

child is adopted after the employee would be entitled to an age or disability 

benefit under the SS Act if his RR service were wages under that act, the special 

dependency requirements in FOM-I-325.30.3 must be met; or

E. An equitably adopted child; or

F. A deemed child; or

G. A grandchild. Effective 1-1-73, a grandchild of an employee is deemed to be the 

employee's child to qualify for the retirement O/M if:

1. The grandchild began living with the employee before the grandchild 

became age 18; and

2. The grandchild was living with the employee and receiving one-half 

support from the employee for the year before the month the employee 

became entitled to the retirement O/M or the year before a DF began 

which continued until the retirement O/M effective date; and

3. The grandchild's parents were either dead or disabled in the month the 

employee became entitled to the retirement O/M or the month a DF began 

which continued until the retirement O/M effective date.

325.30.3 Dependency Requirement 

The child must be dependent on the employee for the 1-year period before the month 

the child may otherwise be included in the O/M, or in the month the employee would be 

entitled to an age or disability benefit under the SS Act if his RR service were wages 

under that act, or in the month the employee's DF begins, if the DF continues until the 

employee would be entitled to an age or disability benefit under the SS Act. 

A. When dependency may be deemed

1. Natural child or Adopted Child - Deem a child dependent upon the 

employee when the employee is his natural parent. If dependency is 

deemed, an indication that a child is actually dependent on someone other 

than the employee is immaterial.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 11 of 52

A legally adopted child (including an adopted grandchild) who is adopted 

by the employee during his lifetime is deemed dependent to be included in 

the computation of the employee's annuity under the retirement O/M, if the 

following requirements are met:

a. Months after 9-1972 - Deem a legally adopted child dependent 

upon the employee when the employee is his legally adoptive 

parent. This is true even when the child is living with and chiefly 

supported by his stepfather. A child will not be removed from the 

employee's retirement O/M computation if he is subsequently 

adopted by someone other than the employee.

b. Months after 1-1968 and prior to 10-1972 - A child is deemed 

dependent upon the employee as for months after 9-1972 unless 

the child is subsequently adopted by someone other than the 

employee.

See FOM-I-945.10.9 if an employee legally adopts a grandchild 

after the employee would be entitled to an SS benefit.

2. Illegitimate child - An illegitimate child is deemed a child of the employee if 

the child has inheritance rights under state law.

3. Child of invalid ceremonial marriage - Deem the dependency of such a 

child upon his natural parent as for a legitimate child. Since the 

dependency of such a child is deemed, it is not necessary to determine 

whether the child has inheritance rights under applicable state law.

4. Illegitimate child deemed a child - Deem the dependency of such a child 

upon the parent as for a legitimate child upon the parent as for a legitimate 

child.

B. Equitably adopted child - Do not deem a child's dependency upon an equitably 

adopting parent as in the case of a legally adopting parent. To establish 

dependency upon an equitably adopting parent, he or she must be either:

1. Be living with the equitably adopted child; or

2. Be contributing to the equitably adopted child's support.

If a child is equitably adopted after the employee would be entitled to an 

age or disability benefit under the SS Act if his RR service were wages 

under that act, the child may not be included in the retirement O/M.

C. Stepchild - Do not deem a child's dependency upon a stepparent. To establish 

dependency upon a stepparent, he or she must meet the following requirements:
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 12 of 52

1. Months after July 1, 1996 - The employee must be contributing at least 

one-half of the stepchild's support. "Living-with" is no longer an option for 

meeting dependency.

2. Prior to July 1, 1996 - The stepparent must either:

a. Be living with the stepchild; or

b. Be contributing one-half of the stepchild's support.

D. Grandchild - In establishing the dependency of a grandchild on the employee, the 

grandchild must have:

1. Begun living with the employee before the grandchild attained age 18;

2. Currently living with the employee; and

3. Receiving at least one-half support from the employee; and,

4. The child's parents must be deceased or disabled.

The grandchild must have been living with and receiving at least one-half support 

from the employee for the entire year before the beginning date of the retirement 

O/M. If the grandchild was born during this 1-year period, the dependency 

requirements are deemed to be met if the grandchild lived with the employee in 

the U.S. and received at least one-half support from the employee for 

substantially the entire period between the date of his birth and the retirement 

O/M beginning date.

325.30.4 Marriage Requirement 

The child must be unmarried at the time the child is otherwise qualified for the O/M. A 

widowed or divorced child or a child whose marriage is void or has been annulled is 

considered unmarried.

325.30.5 Full Month Eligibility Requirement 

Beginning 9-1-1981 a child who was not entitled on any earnings record before 

September 1981 must meet the 1981 SS Act amendment full month requirement. The 

conditions for eligibility must be met on the first day of the month and throughout the 

month before eligibility is established. If this requirement is not met, entitlement begins 

the first day of the following month. This provision does not apply to surviving children 

of a deceased employee.

Following are some examples of the full month entitlement requirement:

A. A child must be born, adopted, have inheritance rights or otherwise meet the 

definition of a child on the first day of the month.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 13 of 52

EXCEPTION: A deemed child is eligible from the first day of the month in which 

the employee acknowledged the child in writing, or was decreed by a court to be 

the child's parent or was ordered by the court to contribute to the child's support. 

If the child's relationship is deemed on the basis of other evidence, the conditions 

for entitlement must be met throughout the entire month. This exception is 

effective 9-1-1981 for age and service annuitants, and for disability annuitants 

paid final 4-20-1983 or later.

B. A child must be dependent throughout the first month of entitlement; or

C. A child must be unmarried throughout the first month of entitlement; or

D. A child must be a full-time student or be disabled throughout the first month of 

entitlement. A child qualifying as a student must be in full-time attendance (FTA) 

throughout the first month of entitlement. A secondary school student is deemed 

to meet this requirement.

325.30.6 Child Entitled Under Two Railroad Earnings Records

A child can usually be included in the computation of benefits payable on only one RR 

earnings record. The dually entitled child should be paid on the RR earnings record 

with the higher PIA, unless this would result in the family as a whole receiving less total 

monthly benefits (the RR rate must be considered in retirement cases). Once a 

determination is made as to which record produces the higher benefit as of the latest 

ABD, eligibility cannot switch to the other record.

If both the employee and spouse are railroad employees, a child may be eligible for 

inclusion in the retirement O/M on one record and qualify that employee for a spouse 

annuity on the other earnings record, on the basis of having a child in care. However, it 

is possible that the retirement O/M will not apply. If a beneficiary is simultaneously 

entitled to both an employee annuity on one wage record and a spouse annuity on 

another wage record, the total retirement O/M benefits payable on both wage records 

must exceed the total railroad formula rates payable on both wage records for the 

retirement O/M to apply in either case.

325.31 The Family Maximum Benefit (FMB) Amount

The social security formula limits the maximum amount of monthly benefits which may 

be payable for any month on any one wage record. This maximum amount is called the 

Family Maximum Benefit (FMB) amount. When the retirement overall minimum (O/M) 

amount is calculated for payment, by law PIA 9 is used. Since the field offices do not 

have access to and/or a method to compute PIA 9, the field offices should use the tier I 

PIA in place of PIA 9. Therefore, the final retirement O/M amount might be different due 

to the fact that PIA 9 may be higher or lower than the tier I PIA the field offices is using.

NOTE: The tier I PIA AND PIA 9 are not always the same. The tier I PIA is based on 

the employee's annuity beginning date (ABD) year, and PIA 9 is based on the 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 14 of 52

employee's actual age. Therefore in the following cases, the tier I PIA used by the field 

offices may be greater than the PIA 9 that would be used to pay the O/M-full 60/30, full 

60/30 with a disability freeze (DF), a disability annuity with no DF and a disability 

annuity with the DF year after the ABD or RR disability year.

325.31.1 Age and Service Retirement O/M

PIA 9 (Field offices use tier I PIA) and the corresponding FMB amount are used to 

determine the amount to pay. The family maximum bend points and formulas for age 

and service retirement O/M and disability retirement O/M cases can be found in FOM 

1010. The employee's share of the rate payable to the family is PIA 9 reduced for any 

months before the employee attains Social Security Act (SS Act) retirement age (field 

offices use the tier I PIA).

Note: When the employee claims only one minor/disabled child, the FMB amount does 

not apply. However, the most the employee can receive is 150% of the tier I PIA.

325.31.2 Disability Annuity with No Disability Freeze 

The retirement O/M is not payable until the employee attains age 62 and qualifies for 

the age and service retirement O/M. The computation is then the same as 1 above.

325.31.3 Disability Annuity with Disability Freeze 

The disability (DIB) retirement O/M can be paid to the employee, as long as all of the 

eligibility requirements are met. The 1980 Social Security DIB Amendments established 

separate rules limiting the family maximum for DIB retirement O/M cases when the 

disability onset is after 1978 and the DIB Retirement O/M effective date is 7-1-80 or 

later. Before the amendments, the age and service and DIB retirement O/M family 

maximum computations were the same.

Under this provision, the DIB retirement O/M is the higher of 100% of the Primary 

Insurance Amount (PIA) or 85% of the AIME (Average Indexed Monthly Earnings), but 

not to exceed 150% of the PIA. The family maximum bend points and formulas for age 

and service retirement O/M and disability retirement O/M cases can be found in FOM 

1010.

325.32 Reduction for Worker's Compensation And Public Disability 

Benefits

An annuity paid under the DIB (disability) retirement O/M is reduced for any month in 

which a disabled worker is entitled to state or Federal periodic worker's compensation 

(WC) benefits. Beginning 3-2-1981, offset may also apply for entitlement to a public 

disability benefit. Black lung benefits paid under the Federal Coal Mine and Safety Act, 

applied for on or after July 1, 1973, are considered worker's compensation and are used 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 15 of 52

as an offset against the DIB retirement O/M beginning January l, 1974. FOM-I-120 

defines WC payments and public disability benefits.

325.32.1 Conditions for Reduction for Current Cases 

The DIB retirement O/M effective date and the disability freeze date affect the 

conditions for applying the WC/public disability benefit reduction. If the DF date is 3-2-

1981 or later, offset applies under the following conditions:

A. Offset is removed when the employee attains age 65;

B. Offset applies for public disability benefits, as well as WC payments and black 

lung benefits; and

C. Offset applies in any month the WC/public disability benefit is payable, 

regardless of when the RRB received notice.

325.32.2 Applying the Reduction 

The initial worker's compensation or public disability benefit reduction is equal to the 

difference between:

A. The total family DIB Retirement O/M plus the amount of the WC/public disability 

benefit; and

B. The higher of the total family DIB Retirement O/M or 80% of the employee's 

average current earnings (ACE) before his disablement. The ACE is defined in 

FOM-I-120.

The reduction equals zero if the total family DIB retirement O/M plus the WC/public 

disability benefit is lower than 80% of the ACE. The reduction is never greater than the 

amount of the WC/public disability benefit. 

The reduction is first applied to the retirement O/M shares of any auxiliary beneficiaries.

The employee's share is reduced only if the WC/public disability benefit is larger than 

the auxiliaries' retirement O/M shares. The reduction is applied after adjustment for the 

family maximum, but before reduction for other benefits or excess earnings. If the 

family composition changes the reduction is recomputed as if the new family 

composition had existed when the reduction was originally calculated.

If the employee is receiving an SS benefit that is reduced for worker's compensation, 

the SS benefit that is being paid after the worker's compensation reduction is used for 

reduction.

The applicant may have the option of receiving his worker's compensation in a lumpsum payment in lieu of periodic payments. Electing such a lump-sum payment will not 

exempt his worker's compensation from offset; it will simply be prorated for offset 

purposes, based on the periodic rate to which he would have been entitled if he had 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 16 of 52

selected installment payments. Generally, most lump-sum settlements are in lieu of 

periodic payments.

325.32.3 Developing Worker's Compensation Information 

The application Forms AA-1 and AA-1d ask if the employee has received or expects to 

receive workman's compensation (WC) or public disability benefits. Form G-204 

(Verification of WC/Public Disability Benefit Information) should be released to the payer 

of the benefit when the response is "Yes."

You should also release a Form G-204 if a disability retirement O/M annuitant in pay 

status reports receipt of a WC/PDB or the Headquarters adjudicating unit requests 

release based on a report from the Social Security Administration or the annuitant.

If the employee has an award notice or other verification of the WC/public disability 

benefit that includes the information necessary to make an offset determination (see 

FOM -I-1720), submit a copy and do not release a Form G-204. If the award letter or 

other verification provides some, but not all information, submit a copy but also release 

a Form G-204. Until the payment is verified, the Headquarters adjudicating unit will use 

the maximum WC rate payable by the state of the employee's residence for the offset 

amount, or the claimed public disability benefit amount, if it is higher. The Headquarters 

adjudicating unit will adjust the amount of the reduction, if necessary, after verification is 

received.

If the amount of the employee's monthly worker's compensation payment, or public 

disability benefit increases or decreases, notify the Headquarters adjudicating unit. The 

retirement O/M payment will be adjusted effective with the date of the change.

325.33 Securing Public Service Pension Information

A spouse or divorced spouse included in the retirement overall minimum (O/M) may be 

subject to reduction for a public service pension (PSP). The PSP must be based on the 

spouse's or divorced spouse's own earnings that are not be covered under the Social 

Security Act (SS Act) (Federal Insurance Contribution Act taxes were not deducted on 

the last day the individual was employed in that position).

The offset only applies to spouses and divorced spouses who:

A. Do not meet the January 1977 SS Act eligibility requirements. That includes 

divorced wives married to the employee less than 20 years, non-dependent 

husbands, husbands entitled based on a child in care and divorced husbands.

B. Are first eligible for the PSP 12-1-1982 or later, and are not dependent (or 

deemed dependent) on the employee; or

C. Are first eligible for the PSP 7-1-1983 or later. Dependency does not matter.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 17 of 52

The retirement O/M share is reduced for only 66 2/3% of the PSP instead of 100% of 

the PSP if the annuitant is first eligible for the PSP 7-1-1983 or later. Effective 12-1-

1984, the reduction in the retirement O/M share is 66 2/3% of the PSP, including any 

beneficiary whose previous reduction was 100% of the PSP.

The guidelines for determining one-half support, to qualify the spouse for an exemption, 

are in FOM-I-945.10. Form G-134 (Statement Regarding Contributions and Support) is 

used to prove the dependency to qualify the spouse for an exemption to the PSP offset. 

The dates that the dependency requirement may be tested are any of the following 

times:

The employee's annuity beginning date; or

When the employee's disability began. This date can be used only if the disability 

continued until the employee attained age 65; or

Secure Form G-208 (Public Service Pension Questionnaire) when Form G-319 

indicates that the spouse is entitled to a public service pension unless the pension is 

payable by a state or local government entity and FICA taxes were deducted on the last 

day of employment.

Proof of the PSP rate must be submitted if the PSP reduction applies and a net tier I or 

retirement O/M share is payable after offset for the PSP. When the spouse or divorced 

spouse who meets the January 1977 SS Act requirements is eligible for the PSP before 

12-1-82, but the PSP does not begin until 12-1-82 or later, she must submit proof that 

she was eligible for the PSP before 12-1-82. A spouse or divorced spouse who is 

eligible for the PSP before 7-1-83 and claims dependency must prove eligibility before 

7-1-83 if her PSP begins 7-1-83 or later. If an individual's eligibility for the PSP was 

postponed until December 1982 or July 1983 because of a condition that eligibility 

requirements had to be met for a full month, she is deemed to be eligible for the PSP in 

either November 1982 or June 1983, and must submit proof. This exemption is 

effective 12-1-84.

Proof of payment of FICA tax on the date last worked for the PSP employer must be 

submitted if this qualifies the spouse or divorced spouse to an exemption.

Note: The 1% "Medicare Only" tax for employees covered under the Civil Service 

Retirement System does not qualify the spouse or divorced spouse to an exemption to 

the PSP reduction. 

More information about the PSP offset is in FOM-I-120.

325.34 Securing SS Benefit Information

RBD always develops social security benefit information from the Social Security 

Administration when information on the retirement Overall minimum development forms 

or in the claim file indicates that a minor child, disabled child or full time student is 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 18 of 52

entitled to or has filed for social security benefits on his own, his mother's, the employee 

annuitant's or any other wage record. 

325.35 Overall Minimum (O/M) Testing

Use Form G-301 on RRAILS for overall minimum (O/M) testing. When the O/M amount 

is calculated for payment, by law PIA 9 is used. Since the field offices do not have 

access to and/or a method to compute PIA 9, the field offices should use the tier 1 PIA 

in place of PIA 9. Therefore, the final O/M amount might be different due to the fact that 

PIA 9 may be higher or lower than the tier 1 PIA. 

Check APPLE for eligible family members on the Employee Family screen. If there are 

no eligible minor or disabled children or full-time students, the O/M will probably not 

apply. 

Check for social security benefits. Reduce the O/M rate by the total social security 

benefits received by the family. This includes any social security benefits the employee 

and the included beneficiaries are receiving on any Social Security Administration (SSA) 

claim number, plus benefits paid on the employee's number, whether the person(s) 

receiving those benefits are included as beneficiaries in the O/M test or not. Remember 

to include SSA benefit reductions for both O/M and RR rates when testing for O/M 

payability.

NAVIGATING THE G-301 ON RRAILS

Choose G-301 from the Form section of RRAILS. Double click and the form will open 

up.

• Enter the claim number.

• Tab to the TYPE OF EMPLOYEE ANNUITY to highlight the field, and then tab 

again.

• From the shaded field below the TYPE OF EMPLOYEE ANNUITY, a pop up box 

will ask ‘Is the employee a DIB?’ If the answer is YES, the blank field under the 

TYPE OF EMPLOYEE ANNUITY will display DISABILITY TEST. Move to the 

DISABILITY TEST section on the right side of the form.

• If the answer is NO, a pop up box will ask ‘Is the employee age 62?’ If the 

answer is NO, the field under the TYPE OF EMPLOYEE ANNUITY will display 

O/M DOES NOT APPLY. Terminate the test.

• If the answer is YES, a pop up box will ask ‘Did the employee claim more than 1 

child?’ If the answer is YES, the blank field under the TYPE OF EMPLOYEE 

ANNUITY will display FMB TEST. Move to the FMB TEST on the top left side of 

the form.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 19 of 52

• If the answer NO, the blank field under the TYPE OF EMPLOYEE ANNUITY will 

display 150% PIA 1 TEST. Move to the 150% PIA 1 TEST in the middle of the 

left side of the form.

• The fields are self-explanatory. Some of the computations will be done for you. 

The program will use standard rounding procedures.

• Once you have completed the form, route it to IMAGING through RRAILS.

EXAMPLES

EXAMPLE 1: The employee is over FRA and indicates one disabled child in care. SS 

benefits are not involved. The employee's date of birth (DOB) is 12-23-25 and his 

annuity beginning date (ABD) is 01-01-92.

FULL O/M—150% of PIA 1

A. Enter the ABD annuity rate

(T1 = 1041.00, T2 = 647.31, VDB = 200.21): $1,888.51

B. Enter the tier 1 PIA amount: 1,041.80

C. Enter the ABD age reduction factor: 0.00

D. The program will compute the amount from Item B. times Item C.: 0.00

E. The program will compute150% of PIA 1: 1,562.70

(1) Enter the SS BEN the employee is receiving: 0.00

(2) Enter the SS BEN the included beneficiary is receiving: 0.00

(3) Enter the SS BEN other beneficiaries are receiving on the employee's 

number: 0.00

(4) The amount from Item D. will prefill: 0.00

F. The program will total E(1) + E(2) + E(3) + E(4): 0.00

G. The program will compute Item E. minus Item F.: $1,562.70

Since A. is greater than G., the "O/M does not apply." 

EXAMPLE 2: The employee is age 62 and indicates he has two minor children in his 

care. SS benefits are involved. Each of the children is receiving $90.00 per month on 

the spouse's wage record as of 08-01-91. The employee's DOB is 07-03-1930, and his 

ABD is 08-01-1992. His eligibility year is 1992.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 20 of 52

REDUCED RETIREMENT O/M - FMB

A. Enter the ABD net annuity rate

(T1 = 554.00, T2 = 11.41, VDB=92.15): $657.56

B. Enter the tier 1 PIA amount: 687.80

C. Enter the age reduction factor: 19444 (Notice the factor is entered as 5 digits 

without a decimal or per cent sign.)

D. The program will compute Item B. times Item C.: 133.80 

E. Enter the FMB amount: 1266.90 (See FOM1 1010.20.)

(1) Enter the SS BEN the employee is receiving: 0.00

(2) Enter the SS BEN the included beneficiary is receiving: 180.00

(3) Enter the SS BEN the other beneficiaries are receiving on the employee's 

number: 0.00

(4) The program will prefill the amount from Item D.: 133.80

F. The program will total E(1) + E(2) + E(3) + E(4): 313.80

G. The program will compute item E minus Item F: $953.10

Since A. is less than G., the "O/M may apply." Code RASI REV on the APPLE 

Summary Screen with an “O”. Do not develop any O/M forms until you receive an email 

from headquarters indicating the O/M will definitely apply. See NOTE below before 

continuing.

EXAMPLE 3: The employee is over age 62 but under FRA. The employee indicates 

two minor children in his care. SS benefits are not involved. The employee's DOB is 11-

22-29, and his ABD is 11-01-92. His eligibility year is 1991. 

REDUCED RETIREMENT O/M - FMB

A. Enter the ABD net annuity rate

(Tl = 696.00, T2 = 794.13): $1,490.13

B. Enter the tier 1 PIA amount: 804.10

C. Enter the ABD age reduction factor: 13333 (Notice the factor is entered as 5 

digits without a decimal or per cent sign.)

D. The program will compute Item B. times Item C.: 107.20
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 21 of 52

E. Enter the FMB amount: 1,458.90 (See FOM1 1010.20.)

(1) Enter the SS BEN the employee is receiving: 0.00

(2) Enter the SS BEN the included beneficiary is receiving: 0.00

(3) Enter the SS BEN other beneficiaries are receiving on the employee's 

number: 0.00

(4) The program will prefill the amount from Item D.: 107.20

F. The program will compute the total of E(1) + E(2) +E(3) +E (4): 107.20

G. The program will compute Item E minus Item F.: $1,351.70

Since A is greater than G, the "O/M does not apply."

EXAMPLE 4: The employee filed for a disability annuity, and indicates a minor child in 

his care. SS benefit is involved. The minor child is receiving $250.00 per month on the 

spouse's wage record as of 10-01-91.

DIB O/M TEST

A. Enter the ABD annuity rate 

(T1 = 950.00, T2 = 34.13): $984.13

B. Enter the tier 1 PIA 950.10

C. The program will compute 150% of the PIA 1: 1425.10

(1) Enter the SS BEN the employee is receiving: 0.00

(2) Enter the SS BEN the included beneficiary is receiving: 250.00

(3) Enter the SS BEN other beneficiaries are receiving on the employee's 

number: 0.00

D. Enter the total of C.(1) + C.(2) + C.(3): 250.00

E. Item C minus Item D.: $1,175.10

Since A is less than E, the "O/M may apply." Code RASI REV on the APPLE Summary 

Screen with an “O”. Do not develop any O/M forms until you receive an email from 

headquarters indicating the O/M will definitely apply. See NOTE before continuing.

NOTE: Occasionally, you will see ‘special interest cases.’ These could be terminally ill 

(TERI) cases, Compassionate Allowance (CAL) cases, Congressionals, etc., that invite 

additional scrutiny. If the O/M may apply, follow these steps.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 22 of 52

Code the RASI REV on the APPLE Summary Screen with an “O”.

Develop the G-319 for natural minor children only at the time you take the 

application.

Image the completed G-319 and send to RBD via Imaging Active Workflow. RBD will

pay the case with the O/M as soon as it is appropriate. If there is a six month or more 

lapse between the date of the application and the date the case is ready to pay, RBD 

will instruct the field to contact the employee and make sure the family information has 

not changed.

Development for disabled, step, grand, and adopted children will still be deferred IN ALL 

CASES until RBD determines the O/M will definitely apply.

If unsure, consult with your manager to determine if you have a ‘special interest case’.

325.36 Retirement Overall Minimum (O/M) Development Procedure

When taking an application (age & service or disability), if the employee states that a 

minor child, disabled child, student or spouse (not entitled to a spouse annuity) is in 

his/her care, the contact representative should make an initial determination as to 

whether the retirement overall minimum (O/M) could apply. Use the G-301 on RRAILS. 

See the instructions in FOM1 325.35 above. 

The field offices should identify these cases by coding RASI REV on the APPLE 

Summary Screen with an “O”. Do not develop any O/M forms until you receive an email 

from headquarters indicating the O/M will definitely apply. See the NOTE in FOM1 

325.35 for ‘special interest cases’.

In disability cases, the disability freeze (DF) rating will generate a DF G-90 (wage 

record) at the end of the month. Examiners in RBD will screen each G-90 in the month 

after the freeze is granted to determine if either an increase in the railroad annuity is 

due, or if the O/M could apply. If RBD determines that the O/M is payable, an email will 

be sent to the field office to develop for the G-319 and G-320. Actionable G-90s are 

controlled on STAR.

If, after the rating is made, the annuitant contacts the field office regarding payment of 

the O/M, and the claims representative knows the O/M will be payable, do not wait for 

the field assignment. Secure the forms and send them to RBD.

In age and service cases, the RBD examiner will review each case with the award 

message “O/M May Be Payable” after the annuitant is paid final. If the examiner 

determines that the O/M is payable, an email will be sent to the field office to develop

the G-319 and the G-320. As with disability G-90s, possible age and service O/M cases 

are controlled on STAR.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 23 of 52

The RBD assignment should always give the type of O/M payable, the O/M effective 

date, the amount of the increase, and the number of auxiliary beneficiaries needed to 

provide the maximum benefits. Usually, development only needs to be made for one or 

two of the employee’s youngest children since this will result in the maximum O/M 

benefit. 

NOTE: Effective July 1, 1996, a stepchild can no longer qualify for an annuity based on 

“living with” the employee. A stepchild must be or have been receiving one-half of 

his/her support from the employee to be eligible for a survivor annuity or to be included 

in the O/M computations. For survivor annuities, the dependency requirement must be 

met at the time of the employee’s death, unless the employee had a DF. In that case 

the dependency requirement can be met at the time of the period of disability or when 

the employee would have qualified for social security benefits. In O/M cases where 

stepchildren are involved and the employee has a DF, develop a dependency 

determination for each stepchild regardless as to whether or not the stepchild is the 

qualifying dependant. (It is not necessary to develop dependency for stepchildren in 

age and service O/M cases unless the child is needed to increase the O/M rate. That is 

because dependency in non-freeze cases must be re-established at the time of the 

employee’s death to pay survivor benefits.) Making a dependency determination will 

protect each stepchild’s eligibility to future survivor benefits. 

The forms to be included with the initial retirement O/M development are:

Form G-319, "Statement Regarding Family and Earnings For Special Guaranty 

Computation"; and,

Booklet G-179, "Special Guaranty in Employee and Spouse Annuities."

If the family group includes a child age 18-19, RBD will request the field office to 

develop for student benefits. See FOM1 525.10 for evidence requirements for students.

If the family group includes a disabled child, RBD will also request the field office to 

develop a Form AA-19a, "Application For Determination of Child Disability." Booklet 

RB-19a, "Child Disability Benefits," should be given to the applicant to explain the child 

disability requirements. The child's disability rating will be handled by DSUBD. DSUBD 

will initiate development of medical evidence or contact the Social Security 

Administration for copies of their medical evidence.

325.37 Handling Inquiries at The Field Office

When an inquiry is received about a possible increase under the retirement overall 

minimum (O/M):

A. Determine if a switch to the O/M is possible; and 

B. Determine if the O/M rate could exceed the tier formula rate(s); be sure to 

consider the reduction for the family's Social Security Act benefits. A divorced 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 24 of 52

spouse's annuity is included in the total RR rate for the O/M test. However, the 

family maximum is not adjusted to include the divorced spouse.

If the O/M rate is the lesser figure, the O/M does not apply. Advise the annuitant 

accordingly.

If the estimated O/M rate is the higher figure, the O/M may apply. Forward the 

inquiry to the Headquarters adjudicating unit for necessary attention. Wait until 

the Headquarters adjudicating unit determines if the O/M applies before 

developing evidence and statements.

325.38 Evidence Requirements

In addition to evidence required for an age and service or disability annuity, the 

following evidence is required for increasing an annuity under the overall minimum 

(O/M): (The RRB forms G series and AA series are available on RRAILS).

Statement Regarding Family and Earnings for Special Guaranty Computations (G- 319, 

Employee, Spouse)

Form G-319 is always required from the employee (and spouse). Form G-319 is 

required from the spouse when no AA-3 application has been filed in the past 6 months 

and the spouse is eligible for inclusion in the O/M. Statement by Employee Annuitant 

regarding Student Age 18-19 (G-320)

If an FTS age 18-19 is to be included in the O/M.

Student Questionnaire (G-315)

If FTS age 18-19 can be included in O/M.

Statement by School Official of Students Full-Time School Attendance (G-315a)

If FTS age 18-19 can be included in retirement O/M and the full time student was not 

verified on Form G-315.

Notice of Cessation of Full-Time School Attendance (G-315a.1)

If FTS age 18-19 can be included in O/M. This form is released to the school after the 

full time attendance is verified.

Application for Determination of Child's Disability (AA-19a)

If an alleged disabled child age 18 or over (or attaining age 18 within 3 months) is to be 

included in the retirement O/M or is filing for early disability Medicare. It is also required 

for spouse's eligibility based on a child in care age 16-18 and disabled.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 25 of 52

Public Service Pension Questionnaire (G-208)

If a spouse is to be included in the O/M and social security taxes were deducted from 

the spouse's earnings on the last day of employment by a state or local government 

entity. If the spouse was a federal employee, the G-208 must be secured.

Proof of public service pension rate or exemption

If the spouse Retirement O/M share after public service pension (PSP) rate or reduction 

is greater than zero. Proof of any exemptions to the PSP reduction is required, when 

applicable.

Statement Regarding Contributions and Support (G-134)

If a spouse may be exempt from a PSP reduction based on dependency.

Proof of age of spouse

If the spouse is to be included in the retirement O/M based on age, or if the spouse will 

attain age 62 before her eligibility based on a child in care terminates.

Proof of marriage

If the spouse, or the employee’s stepchild is to be included in the O/M.

Marital Relationship of Child's Parents

If child is stepchild of employee annuitant or when child's natural mother is eligible for 

spouse's annuity and does not file, or when "child" is born of an invalid ceremonial 

marriage.

Proof of living with

If the spouse is to be included in the retirement O/M as a de facto (deemed) spouse, or 

if the spouse could be included before 8-12-83.

Proof of termination of marriage prior to the marriage to the employee

If there is reasonable doubt whether the prior marriage of either the employee or spouse 

was ended.

Proof of age and relationship of children

If children may be included in the O/M.

Proof of dependency of child (G-134)

If an equitably adopted child, grandchild, or a stepchild is included in the O/M.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 26 of 52

Proof of termination of marriage of child

If a child has been married but is widowed or divorced at the time the initial application 

is filed, he may be considered unmarried. Secure proof of the termination.

"Child in care"

Only when a spouse under FRA may be included in the retirement O/M on the basis of 

having a child in care.

Proof of child's disability 

If an alleged disabled child age 18 or over (or will attain age 18 within 3 months) is to be 

included in the retirement O/M or is filing for early disability Medicare. May be required 

for spouse's eligibility based on a child in care age 16-18, and disabled.

Proof of death or disability of grandchild's parents

If a grandchild is to be included in the retirement O/M as a child IPI who has not been 

adopted by the employee.

325.40 Switch From RR Rate To Retirement Overall Minimum (O/M) 

Rate Permitted

Amendments effective 10-5-1972 restricted the times when the annuity may be 

switched from the RR formula rate to the retirement overall minimum (O/M) formula 

rate.

325.40.1 Initial Change To Retirement O/M Formula On Annuity Beginning Date Or 

Month Immediately After Disability Waiting Period

Practically all retirement annuities are initially awarded under the RR formula. The 

retirement O/M computation increase, if applicable, is awarded later by means of a 

recertification award.

The spouse and children may be included in the family group at this time if they meet 

the eligibility requirements and the retirement O/M effective date is the annuity 

beginning date (ABD), or the first day of the month following the month in which a 

disability waiting period ends.

A divorced spouse may be included at this time only if she qualifies for a divorced 

spouse annuity.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 27 of 52

325.40.2 Change to Retirement O/M Effective After ABD or Month Not Immediately 

After Disability Waiting Period

If it was initially determined that the retirement O/M was not applicable on the ABD, or 

on the first day after the month in which a disability waiting period ends, the retirement 

O/M can be tested again effective the month in which:

A. The employee attains age 62; or

B. The spouse who was married to the employee when the employee's annuity 

attains age 62 and the employee is eligible for the retirement O/M computation. 

Any eligible children listed in the claim file will be included in the retirement O/M 

test. If the retirement O/M does not apply, no development will be initiated to 

determine if other children not listed in the claim file may be eligible for inclusion 

in the O/M; or

C. The spouse who married the employee after the employee's annuity began 

becomes entitled to an RR spouse annuity and both the employee and spouse 

are eligible for the retirement O/M computation. Only the employee and spouse 

may be included in the family group. Children may not be included, even if a 

spouse is entitled based on children in care. This situation may occur when the 

employee acquires an eligible child after the employee was initially entitled to the 

O/M; or

D. There is a general benefit or cost-of-living increase which increases the 

retirement O/M rates, and the retirement O/M formula rates exceed the RR 

formula rates. Only the employee, a divorced spouse annuitant, and either an 

eligible spouse who was married to the employee when the employee's annuity 

began or an eligible spouse who married the employee after the employee's 

annuity began but is receiving an RR spouse annuity, may be included. Children 

may not be included, even if a spouse is entitled based on children in care. This 

situation may occur when the employee acquires an eligible child after the 

employee was initially entitled to the O/M.

325.45 Continuous Retirement Overall Minimum (O/M) Entitlement

When a terminating event occurs for an auxiliary beneficiary in a retirement O/M case, 

the retirement O/M may continue to apply for the employee alone or for the employee 

and other family members. If the retirement O/M continues to apply after a terminating 

event, an eligible auxiliary beneficiary may be included in the retirement O/M 

computation.

If the RR formula is actually paid for 1 or more months after the terminating event, and 

retirement O/M entitlement is restored back to the month in which the terminating event 

occurred, the annuity may be switched back to the O/M.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 28 of 52

EXAMPLE: A full time student ceases full-time attendance (FTA) and is removed from 

the retirement O/M computation. As a result, the annuity is switched to the RR formula. 

Later, the child resumes FTA and is deemed to be in FTA during the period of nonattendance. The annuity may be switched back to the retirement O/M retroactive to the 

month the annuity was switched to the RR formula.

325.50 Switch From RR Rate To Retirement Overall Minimum (O/M) 

Rate Prohibited

Effective 10-5-72, the annuity rate may not be changed from the RR formula to the 

retirement overall minimum (O/M) computation if it was initially determined that the 

retirement O/M did not apply or the retirement O/M did apply but later was removed, 

breaking the continuity of the retirement O/M computation. Switching is prohibited in the 

following situations, even though the retirement O/M rate may be higher than the RR 

rate (this list is not exhaustive):

A. The employee marries after the annuity beginning date (ABD) and the spouse is 

not receiving a spouse annuity. The spouse may not be included until she 

becomes entitled to a spouse annuity; or

B. The employee adopts a child after the ABD; or

C. A child who was previously removed from the retirement O/M computation 

becomes re-entitled in a month after a month in which the RR formula applies 

(e.g., a child returns to full-time school attendance); or

D. A child who qualified a wife for a spouse annuity which was paid under the RR 

formula attains age 18 and is a full time student; or

E. A spouse who qualified for a spouse annuity based on having children in her 

care, which was paid under the RR formula, dies.

325.55 Changes From Retirement Overall Minimum (O/M) Rate To RR 

Rate Permitted

The annuity rate may be changed from the retirement overall minimum (O/M) to the RR 

formula rate whenever the RR rate yields a higher monthly benefit. The RR rate may be 

paid, subject to Railroad Retirement Act work deductions, if that rate is higher after work 

deductions are applied to the O/M.

The annuity rate may also be switched from the retirement O/M rate to the RR rate, 

even if the retirement O/M is still applicable, to prevent an overpayment or to conduct an 

investigation to determine continuing retirement O/M entitlement. The RR rate may be 

paid, for example, when investigating the continuance or cessation of disability.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 29 of 52

325.60 Effective Date of Retirement Overall Minimum

Entitlement to the retirement overall minimum (O/M) increase begins with the first month 

in which all the requirements are met, unless the employee limits the retroactivity of his 

application.

325.60.1 Retirement O/M Based on Age and Service 

The effective date of the retirement O/M based on age and service is the later of:

A. The first full month the employee is age 62; or

B. The employee's annuity beginning date (ABD).

325.60.2 Retirement O/M Based on Disability

The effective date of the retirement O/M based on disability is the later of:

A. The first day of the month following the month in which the disability waiting 

period ends, in a case requiring a waiting period; or,

B. The first day of the first month in which the employee is disabled and meets the 

disability insured status requirements under the Social Security Act, if no waiting 

period is required. Railroad service after 1936 is treated as social security 

employment in determining the disability insured status.

A waiting period is not required if the employee previously had a disability freeze 

or a disability which ended within 60 months before the month his current 

disability began; or,

C. The ABD.

325.65 Effective Date Of Spouse Retirement Overall Minimum Benefit

325.65.1 Married When Employee Filed for Annuity

A spouse who was married to the employee at the time he filed for the employee 

annuity may be included in the family group for the retirement overall minimum (O/M) 

computation on the later of:

A. The employee's annuity beginning date (ABD); or

B. The first day of the month after the month in which a disability waiting period 

ends; or
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 30 of 52

C. The first full month the employee is age 62. If the employee is a disability 

annuitant or has a disability freeze (DF), the retirement O/M may begin the first 

day of the month the employee attains age 62; or

D. The first full month the spouse attains age 62.

325.65.2 Married After Employee Filed for Annuity

A spouse who was married to the employee after he filed for the employee annuity may 

be included in the family group for the retirement O/M computation on the later of:

A. O/M Computation rate in force when spouse becomes eligible - If the total 

retirement O/M computation rates exceed the total RR formula rates for the 

month before the month in which the spouse meets the eligibility requirements, 

the spouse may be included in the family group as soon as she meets the 

eligibility requirements. 

Example: The family group on the employee's ABD of 5-1-77 consists of the 

employee and a full time student (FTS). The retirement O/M is in force. On 8-1-

78, the spouse meets the eligibility requirements and may be included in the 

family group.

B. RR formula rate in force when spouse becomes eligible - A spouse who was 

married to the employee after he filed for the employee annuity and is at least 

age 62 or has the employee's child in care, may be included in the family group 

for the retirement O/M computation on the later of:

1. The first day of the month after the month in which a disability waiting 

period ends; or

2. The first full month the employee is age 62. If the employee is a disability 

annuitant or has a DF, the spouse may be included in the retirement O/M 

the first day of the month the employee attains age 62; or

3. The spouse ABD.

325.66 Effective Date of Divorced Spouse Retirement Overall 

Minimum Benefit

A divorced spouse annuitant may be included in the retirement overall minimum (O/M) 

on the later of:

A. October 1, 1981; or

B. The employee's annuity beginning date (ABD); or
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 31 of 52

C. The first full month the employee is age 62. If the employee has a disability 

freeze, the retirement O/M may begin the first day of the month in which the 

employee attains age 62; or

D. The divorced spouse's ABD.

325.70 Effective Date Of Child's Retirement Overall Minimum Benefit

325.70.1 Child Eligible on Annuity Beginning Date or After Disability Waiting 

Period 

If the child meets the eligibility requirements on the employee's annuity beginning date 

(ABD), or on the first day of the month following the month in which the disability waiting 

period ends, the child may be included in the family group for the retirement overall 

minimum (O/M) computation.

EXAMPLE: The family group on the employee's ABD consists of the employee and two 

eligible full-time students. The students may be included in the retirement O/M 

computation. 

325.70.2 Retirement O/M in Force When Child Becomes Eligible 

If the total retirement O/M computation rates exceed the total RR formula rates for the 

month before the month in which the child meets the eligibility requirements, the child 

may be included in the family group for recomputing the retirement O/M rates.

EXAMPLE: The family group on the employee's ABD of 5-1-80 consists of the 

employee, spouse, and minor child. The retirement O/M computation is in force. On 9-

1-80, a second child becomes a full time student (FTS). This child may be included in 

the family group for the retirement O/M computation.

325.70.3 RR Rate in Force When Child Becomes Eligible 

If the total RR formula rates exceed the total retirement O/M rates for the month before 

the month in which the child meets the eligibility requirements, the child may not be 

included in the family group for computing the retirement O/M rates.

If an alleged disabled child may not be included in the O/M, develop a Form AA-19a and 

medical evidence for Medicare eligibility only.

EXAMPLE 1: The family group on the employee's ABD consists of the employee and 

RR spouse annuitant with a minor child in her care. The RR formula employee and 

spouse rates exceed the total retirement O/M formula rates. The child attains age 18 in 

9-79 and the spouse annuity terminates. Although the child is an FTS, he may not be 

included in the family group for the retirement O/M computation.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 32 of 52

EXAMPLE 2: The family group on the ABD 1-1-80 consisted of the employee and FTS. 

The retirement O/M formula applied. The child ceased full time attendance (FTA) on 5-

13-80. This caused the employee annuity to revert to the RR formula. When the child 

returned to FTA on 1-1-81, the child's benefit may not be considered in the retirement 

O/M computation to cause an increase from the RR formula to the O/M, because of the 

break in the continuity of the retirement O/M formula.

325.75 Developing Child's Disability at Age 16

If a spouse is included in the retirement overall minimum (O/M) computation based on a 

minor child in care, 4 months before a child attains age 16, a computer-prepared Form 

Letter RL-175 is released to the employee. This advance notice is sent out before 

payments are suspended to develop the possibility of continuing eligibility. The 

employee is advised to contact the field office if the child is disabled.

If the spouse is not eligible for an unreduced spouse annuity based on her age and 

claims that the child in her care is disabled, develop a Form AA-19a and medical 

evidence for the child. A new Form G-319 is not required. If a child is rated disabled at 

age 16, only disability monitoring would be required after that date. It is not necessary 

to re-establish the child's disability at age 18. 

If the spouse is eligible for an unreduced annuity based on her age when the child 

attains age 16, a determination on the alleged disability of that child is not required until 

the child attains age 18.

If the spouse files for a spouse annuity and the combined employee and spouse annuity 

tier rates exceed the retirement O/M rate, retirement O/M no longer applies. If the child 

is disabled, a disability determination should be made only for the child's eligibility for 

Medicare coverage. 

325.80 Developing Child as Full Time Student After Age 18

Form letter RL-175 is released to the employee 4 months before a child will attain age 

18. This advance notice is sent out before payments are suspended to enable the 

employee to contact the RRB field office to develop the possibility of continuing eligibility 

after the child attains age 18. The form shows the month the child attains age 18 and 

advises the employee to call the nearest RRB field office if the child is disabled or is 

attending school full-time.

Diary cards are also forwarded to RBD for action. Listed below are the possible 

messages for children included in the retirement O/M:

CHILD IPI ATTAINING AGE 18 OR 19

CHILD IPI OVER AGE 18 OR 19 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 33 of 52

If the retirement O/M is in force when the child attains age 18, and the child is entitled 

as an FTS, the RRB field office will only need to develop current information on Form G320 and the Form G-315 series forms. The other information on Form G-319 should 

already be in the claim file. 

Develop Form AA-19a if the child attaining age 18 is disabled and the disability has not 

yet been established in the claim file. A new Form G-319 is not required. 

If a child may be eligible as either a full time student (FTS) or a disabled child, develop 

entitlement as a disabled child. However, if there will be a delay in establishing the 

child's eligibility as a disabled child, develop entitlement as an FTS as well. The child 

can then continue to be included in the retirement O/M while disability is being 

developed.

325.85 Suspension Of Employee Retirement Overall Minimum Annuity

When the employee's annuity is not payable, benefits are not payable for the spouse, 

divorced spouse or child based on the employee's wage record. If the employee's 

annuity is suspended to recover an overpayment, the annuity is still considered to be 

payable. If the retirement overall minimum (O/M) increase is not payable, in some 

cases, the employee's annuity may continue to be paid under the RR formula (e.g., 

when work deductions apply).

325.85.1 Railroad Retirement Act Provisions

A. The retirement O/M increase is not payable if the employee does not agree to 

keep the RRB informed of any event that affects the inclusion of an ineligible 

person included (IPI) who is not living with the employee.

B. The employee annuity under either the retirement O/M or RR computation is not 

payable for months in which the employee works in RR employment.

C. The DIB retirement O/M is subject to the work restrictions under the RR Act, i.e., 

no annuity is payable for any month in which a disability annuitant earns more 

than the monthly earnings amount (see FOM1.1125.5.2) in employment or selfemployment of any type, except employment under the Domestic and Volunteer 

Service Act of 1973. Programs under this act, including VISTA, are listed in 

FOM-I-310.40.1.

The disability retirement O/M is not subject to excess earnings deductions under 

the SS Act limit. However, disability may cease if the beneficiary is performing or 

is able to perform substantial gainful activity (SGA). See FOM-I-310.65 and 

325.95.

D. The age and service retirement O/M is subject to the SS Act annual exempt 

amount earnings limitation while the employee is under age 70 (age 72 before 

1983). The retirement O/M may be suspended if the employee has earnings 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 34 of 52

over the annual exempt amount. However, the RR rate will continue to be paid, 

but with a reduction for excess earnings if the employee has a work deduction 

insured status.

325.85.2 SS Act Provisions

The employee annuity may not be increased under the retirement O/M when any of the 

following events occur. These non-payment provisions would apply under the SS Act, 

and therefore may affect the payment of the O/M.

A. Vocational rehabilitation deductions - A vocational rehabilitation (VR) deduction is 

imposed against the disability retirement O/M for any month in which the 

employee refuses, without good cause, to accept VR service available to him 

under an approved VR program; or

B. SGA suspension for blind workers over age 55 - An employee who is entitled to 

the disability retirement O/M as a blind worker over age 55 will continue to be 

entitled for months in which he is engaging in "non-comparable" SGA. Disability 

for these workers is defined as inability because of blindness to engage in SGA 

requiring skills or abilities comparable to those of any gainful activity in which 

they have previously engaged with some regularity and over a substantial period 

of time. SGA that is "non-comparable" does not disqualify a blind worker from 

entitlement under this provision. However, retirement O/M payments to the 

employee or his auxiliaries will be suspended for any month in which the 

employee engages in comparable SGA. Payment may be initiated or reinstated 

for any month in which it is determined the employee is not engaging in 

comparable SGA; or

C. Deductions for work outside the U.S. - Beginning 5-1-83, work deductions may 

apply to the age and service retirement O/M if the employee works outside the 

U.S. for more than 45 hours in a month. For months before May 1983, a 7-day 

work test (see FOM-I-11) was applied to the age and service retirement O/M if 

the employee worked outside the U.S. Beginning 9-1-84, work deductions may 

apply to the shares of the spouse and child auxiliary beneficiaries when the 

employee works outside the U.S. for more than 45 hours in a month. For months 

before September 1984, a 7-day work test was applied to the shares of the 

spouse and child when the employee worked outside the U.S.; or

D. Removal/Deportation P.L. 108-203 changed the term deportation to removal 

effective as if enacted on April 1, 1997. Payment of age and service or disability 

retirement O/M benefits may be withheld if the employee is removed/deported 

from the U.S. after 9-1-54; or if removed/deported 11-10-88 or later, due to 

associations with the Nazi government of Germany during World War II; or

E. Conviction for subversive activities - Payment of the age and service or disability 

retirement O/M may be affected when the employee has been deprived of certain 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 35 of 52

benefit rights by sentence of a court after conviction on a charge involving 

espionage, sabotage, treason, sedition or subversive activities; or

F. Confined to a penal or correctional facility - O/M benefits are suspended or Tier 1 

benefits are converted to all NSSEB effective with the month (including any part 

of the month) the beneficiary has been convicted of a criminal offense and is 

confined in an institution at public expense for more than 30 continuous days. 

See FOM1 150, Criminal Activity Cases for more information. 

325.90 Termination of Employee Retirement Overall Minimum Annuity

When the employee's annuity is not payable, benefits are not payable for the spouse, 

divorced spouse or child based on the employee's wage record.

The employee benefit under the retirement overall minimum (O/M) computation 

terminates with the last day of:

A. The month before the month in which the employee dies; or

B. The second month after the month the disabled employee annuitant medically 

recovers from his disability; or

NOTE: Beginning December 1, 1980, disability retirement O/M payments will not 

be terminated or suspended when the annuitant's impairment ceases because of 

substantial gainful activity (SGA), if the annuitant is participating in an approved 

vocational rehabilitation program. The Headquarters adjudicating unit will 

determine if continuation in the program is likely to increase the possibility that 

the annuitant will eventually be permanently removed from the disability rolls. 

Information about vocational rehabilitation is requested on Form G-254 

(Continuing Disability Report).

C. The 36th month after the trial work period, if disability ceased after December 

1987 because the disabled employee is performing SGA, but has not medically 

recovered from disability. The old (15-month) rule still applies when a retroactive 

SGA cessation is being processed prior to January 1988. The 15-month trial 

work period cannot begin any earlier that December 1, 1980. See the following 

section.

325.95 Trial Work Period Extension

Public Law 96-265 changed the termination date for an annuitant receiving the DIB 

retirement O/M or for a disabled child included in the O/M. Prior to the amendment, 

retirement O/M benefits were terminated 2 months after disability ceased, whether 

because of medical recovery or because of the ability to perform SGA. Beginning 12-1-

80, if disability has not ceased before that date, a trial work period extension (TWP 

EXT) may apply when disability ceases because of the ability to perform SGA.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 36 of 52

325.95.1 TWP EXT Defined

A DIB retirement O/M annuitant or a disabled child included in the retirement O/M who 

has not medically recovered is allowed a 9-month trial work period (see FOM-I-310.65.2

). If the work performed during the TWP shows that the individual's impairment is no 

longer severe enough to prevent him from performing SGA, it is determined that the 

disability has ceased. The TWP EXT begins after the end of the TWP and does not end 

for at least 36 months if the beneficiary is not medically recovered. Effective 1/92, the 

TWP EXT begins the month after the 9th service month completed within 60 

consecutive months. The TWP EXT ends according to the following rules:

A. If the beneficiary performs SGA during the 36 months following the TWP, the

TWP EXT ends the last day of the month before the first month the beneficiary 

performs SGA after the 36-month period; or

B. If the beneficiary does not perform SGA during the 36 months following the TWP, 

the TWP EXT continues until the second month after the month the beneficiary 

first performs SGA; or

C. If the beneficiary medically recovers from his disability during the TWP or the 

following 36 months, the TWP EXT ends the last day of the second month after 

the month of medical recovery.

The following chart gives an example of how the first two rules are applied. 

9-month TWP

(April 87 - December 87)

SGA in next 36 months?

(January 88 - December 90)

YES NO

TWP extends at

least 36 months

(Jan 88 - Dec 90)

TWP extends at least

36 months

(Jan 88 - Dec 90)

1st month of SGA

after 36 months

(January 91)

1st month of SGA

after 36 months

January 91

TWP extension date

last day of month

preceding SGA

(December 31, 1990)

TWP extension ends

2 months later

(February 28, 1991)
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 37 of 52

If the applicant in this example medically recovers in June 88, the TWP EXT 

ends August 31, 1988.

325.95.2 Payment of Retirement O/M

RR annuities paid under the retirement O/M continue to be payable for the first 2 

months after it is determined that disability ceased because of SGA (i.e., the beneficiary 

is paid for the first 3 months after the TWP). The retirement O/M is not payable for any 

month SGA is performed in the next 12 months of the TWP EXT. If the beneficiary does 

not perform SGA in any of the next 12 months, the retirement O/M may still be paid for 

those months if the RR annuity is payable. Entitlement to the retirement O/M terminates 

the last day of the 36th month of the TWP EXT, even though the TWP EXT may not 

have ended then.

The RR annuity must still be suspended if the annuitant earns more than the monthly 

earnings amount (see FOM1.1125.5.2); the retirement O/M cannot be paid if the annuity 

is in suspense. Even though the annuity is suspended according to RRB rules, the end 

of the retirement O/M entitlement must still be determined according to SSA's TWP EXT 

rules, unless annuity entitlement ends first. The TWP EXT will not affect the DIB 

retirement O/M in most cases because the RR annuity will be suspended because of 

earnings over the monthly earnings amount , or terminated because a total and 

permanent disability annuity is terminated 2 months after disability ceases because of 

work performance. However, the TWP EXT will always apply to an A&SA who is 

receiving the DIB retirement O/M or a disabled child included in the O/M, as long as the 

retirement O/M is otherwise payable. The TWP EXT also will apply to a widow or child 

who are found disabled and are receiving survivor annuities.

325.95.3 Termination of Disability Freeze 

The date the disability freeze terminates depends on the pattern of SGA during the 36 

months after the TWP. The DF can terminate before the trial work period extension 

ends.

A. If the beneficiary performs SGA during the 36 months following the TWP, AND if 

he engages in SGA for every subsequent month in the 36 months, the DF ends 

the last day of the month before the retirement O/M is suspended.

Example: Joe Jones completes a TWP in December 87. It is determined that his 

disability ceased because of SGA in January 88, so the DIB Retirement O/M is 

payable for January, February and March 88. He is performing SGA in January 

88, and continues to do so through December 88 (36 months after the TWP) and 

thereafter. The DF terminates March 31,1988, the month before the month the 

retirement O/M is suspended. The TWP EXT ends December 31, 1990 (the 

month before the first month of SGA after the 36 months of the TWP EXT).

1987 A M J J A S O N D TWP ends in Dec 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 38 of 52

1988 J F M A M J J A S O N D Retirement O/M susp. April; DF ends March 31

1989 J F M A M J J A S O N D

1990 J F M A M J J A S O N D TWP EXT ends December 31

1991 J F

If Joe did not perform any SGA in January 88 through December 90, the DIB 

retirement O/M would be payable through December 90. If he performs SGA in 

every month June 90 through December 90 (remaining months of the 36 months 

after TWP) and thereafter, the DF would terminate December 31, 1990 because 

the retirement O/M is suspended beginning January 91.

B. If the beneficiary does not perform SGA during the 36 months following the TWP 

or if he does perform SGA but then has 1 or more months of no SGA before 36 

months have passed, the DF ends the date the TWP EXT ends.

Example 1: Mary Smith completes a TWP in December 87, and the TWP EXT 

begins January 88. She does not perform any SGA until January 91. Her TWP 

EXT ends March 31, 1991 (the second month following the first month of SGA 

after the TWP); the DF also ends March 31, 1991 (the last month of the TWP 

EXT).

1987 A M J J A S O N D TWP ends in Dec 

1988 J F M A M J J A S O N D

1989 J F M A M J J A S O N D

1990 J F M A M J J A S O N D Retirement O/M terminated Dec. 31

1991 J F M A TWP EXT, DF end March 31

If Mary did not perform SGA until March 91, her TWP EXT and DF would end 

May 31, 1991.

Example 2: Jane Brown completes a TWP in January 88 and her TWP EXT 

begins February 88. She performs SGA in May and June 88, does not perform 

SGA in July 88, then performs SGA in August 88 through February 91. The TWP 

EXT ends January 31, 1991 (the month before the first month of SGA after the 

36 months of the TWP EXT). The DF also ends January 31, 1991.

1987 A M J J A S O N D

1988 J F M A M J J A S O N D Retirement O/M susp. May 1; Retirement O/M 

payable July 88 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 39 of 52

1989 J F M A M J J A S O N D

1990 J F M A M J J A S O N D

1991 J F M A TWP EXT, DF end Jan. 31; Retirement O/M term.

325.95.4 Handling TWP EXT Cases

If a disabled beneficiary ceases SGA during the TWP EXT, or if the earnings fall below 

the level deemed to be SGA ($500.00 a month) during the TWP EXT, the retirement 

O/M can be reinstated without developing a new application, when the annuity is still 

payable. When disability ceases because of SGA and the TWP EXT applies, DMOD 

will notify the annuitant (copy to field office) that the retirement O/M may still be payable, 

and furnishes the date the TWP EXT ends. DMOD also informs the annuitant of the 

date Medicare will terminate; the TWP EXT gives at least 39 months additional 

Medicare coverage.

The annuitant is instructed to notify the field office when he works. Report the work 

information to DMOD; you will be advised if additional development is necessary. 

325.100 Suspension of Spouse Retirement Overall Minimum Benefit

325.100.1 Railroad Retirement Act Provisions 

The retirement overall minimum (O/M) is not payable for any month in which the 

employee's annuity is suspended. If the spouse is entitled to a spouse railroad annuity 

under either the retirement O/M or RR computation, the annuity is not payable for 

months in which the employee or spouse works in RR service. The spouse may not be 

included in the retirement O/M for months she works in employer service. If the spouse 

annuity or retirement O/M share is in suspense due to work in RR service, the spouse's 

share under the retirement O/M may be redistributed among the other auxiliaries.

The spouse annuity is subject to the earnings limitations under the Social Security Act 

(SS Act) while the spouse is under age 70 (age 72 before 1983). The retirement O/M 

may be suspended if the spouse has earnings over the annual exempt amount. 

However, if the spouse is entitled to an RR annuity, the RR rate will continue to be paid, 

but with a reduction if the spouse has a work deduction insured status or earnings from 

Last Pre-retirement Non-railroad Employer (LPE). The employee's excess earnings can 

also be charged against the spouse's retirement O/M share or the spouse's RR annuity. 

However, a divorced spouse who has been divorced from the employee for at least 2 

years will not be subject to work deductions based on the employee's earnings, 

beginning 1-1-85.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 40 of 52

325.100.2 SS Act Provisions

The spouse retirement O/M benefit is not payable for any month in which the 

employee's retirement O/M benefit is not payable due to the events described in FOM-I325.85.2. 

In addition, the spouse retirement O/M benefit is not payable for any month in which the 

following events occur:

A. Deductions for work outside the U.S. - Beginning 5-1-83, work deductions may 

apply if the spouse works outside the U.S. for more than 45 hours in a month. 

For months before May, a 7-day work test (see FOM-I-11) is applied if the 

spouse works outside the U.S.; or 

B. Conviction for subversive activities - The spouse retirement O/M benefit is not 

payable when the spouse has been deprived of certain benefit rights by sentence 

of a court after conviction on a charge involving espionage, sabotage, treason, 

sedition or subversive activities; or

C. Confined to a penal or correctional facility - O/M benefits are suspended or Tier 1 

benefits are converted to all NSSEB effective with the month (including any part 

of the month) the beneficiary has been convicted of a criminal offense and is 

confined in an institution at public expense for more than 30 continuous days. 

See FOM1 150, Criminal Activity Cases for more information. 

325.105 Termination of Spouse Retirement O/M Benefit

The spouse benefits are taken into account in figuring the family retirement O/M 

computations only for those months in which the spouse would have been eligible for 

benefits under the Social Security Act. The spouse benefits end with the last day of the 

month before the month in which:

A. The spouse dies; or

B. The marriage between the spouse and the employee is ended by absolute 

divorce or, in some cases of putative marriage, by knowledge that the marriage 

was invalid. When California law is applicable, and the parties undertake in good 

faith to legalize their marriage within a reasonable time after learning of the 

defect, benefits do not end. Entitlement is not ended by a limited decree of 

divorce nor by an interlocutory or preliminary decree until such decree becomes 

final. The divorced spouse may continue to be included in the retirement O/M if 

she is entitled to a divorced spouse annuity; or

C. The employee's annuity terminates due to death or medical recovery from 

disability; or
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 41 of 52

D. The spouse does not have in care a minor or disabled (before attaining age 22) 

child of the employee and the spouse is under age 62.

The Retirement O/M share of a spouse who was eligible in August 1981, based 

on a child in care, ends the earlier of:

1. The month before the month in which the youngest child attains age 18; or

2. August 31, 1983, if the youngest child is over age 16. Otherwise, the 

spouse is entitled until the child attains age 16.

A spouse who was first eligible 9-1-81 or later, based on a child in care, is 

entitled until the youngest child attains age 16.

325.106 Suspension and Termination Of Divorced Spouse's 

Retirement Overall Minimum Benefit

The suspension events stated in FOM-I-325.100 also apply to a divorced spouse.

A divorced spouse is included in the retirement overall minimum (O/M) only if she is 

entitled to a divorced spouse annuity. A divorced spouse's entitlement terminates with 

the last day of the month before the month in which:

A. The divorced spouse dies; or

B. The employee's annuity terminates due to death or medical recovery from 

disability; or

C. The divorced spouse becomes entitled to an SS retirement or disability insurance 

benefit that is based on a PIA (primary insurance amount) that equals or exceeds 

one-half of the employee's PIA; or

D. A divorced wife remarries.

325.110 Suspension of Child's Retirement Overall Minimum Benefit

325.110.1 Railroad Retirement Act Provisions

The retirement overall minimum (O/M) is not payable for any month in which the 

employee's annuity is suspended. If the child is in employer service, the child may not 

be included in the retirement O/M and the child's share may be redistributed among the 

other auxiliaries.

The child's retirement O/M share is also subject to the Social Security Act (SS Act) 

annual exempt amount earnings limitation. The retirement O/M will be adjusted if a 

minor child or full time student (FTS) earns over the annual exempt amount. A disabled 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 42 of 52

child is not subject to the earnings limitation, but earnings may indicate recovery from 

disability.

325.110.2 SS Act Provisions 

The child's retirement O/M share is not payable for any month in which the employee's 

retirement O/M benefit is not payable due to the events described in FOM-I-325.85.2. 

In addition, the child's retirement O/M share is not payable for any month in which the 

child's benefits would not be payable under the SS Act, due to the following events:

A. Vocational rehabilitation deductions - A vocational rehabilitation (VR) deduction is 

imposed against the disabled child's retirement O/M share for any month in which 

the disabled child refuses, without good cause, to accept VR service available to 

him under an approved VR program; or

B. Substantial Gainful Activity suspension for blind workers over age 55 - If the child 

is a disabled adult child based on the special provisions for blind persons over 

age 55, the disabled child's retirement O/M share may be affected when the child 

engages in substantial gainful activity (SGA); or

C. Deductions for work outside the U.S. - Beginning 5-l-83, work deductions may 

apply if the child works outside the U.S. for more than 45 hours in a month. For 

months before May, a 7-day work test (see FOM-I-11) is applied if the child 

works outside the U.S.; or

D. Conviction for subversive activities - Payment of the child's share may be 

affected when the child has been deprived of certain benefit rights by sentence of 

a court after conviction on a charge involving espionage, sabotage, treason, 

sedition or subversive activities; or

E. Confined to a penal or correctional facility - O/M benefits are suspended or Tier 1 

benefits are converted to all NSSEB effective with the month (including any part 

of the month) the beneficiary has been convicted of a criminal offense and is 

confined in an institution at public expense for more than 30 continuous days. 

SeeFOM1 150, Criminal Activity Cases for more information. 

Benefits for the other family members are payable as if the confined person were 

receiving benefits.

325.115 Termination of Child's Retirement Overall Minimum Benefit

The child's benefits are taken into account in figuring the family retirement overall 

minimum (O/M) computations only for those months in which the child would have been 

eligible for benefits under the Social Security Act (SS Act) rules.

A child's retirement O/M benefit terminates:
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 43 of 52

A. the last day of the month before the month in which the child dies; or

B. the last day of the month before the month in which the child attains age 18, 

unless the child is determined to be disabled before attaining age 22 or is an full 

time student (FTS); or

C. the last day of the second month after the month in which the disabled child 

medically recovers from his disability.

NOTE: Beginning December 1, l980, retirement O/M benefits for a disabled child 

will not be terminated or suspended when the child's impairment ceases because 

of substantial gainful activity (SGA), if the child is participating in an approved 

vocational rehabilitation program. The Headquarters adjudicating unit will 

determine if continuation in the program is likely to increase the possibility that 

the child will eventually be permanently removed from the disability rolls. 

Information about vocational rehabilitation is requested on Form G-254; or

D. the 36th month after the trial work period (TWP), if disability ceased after 

December 1987 because the disabled child is performing SGA, but has not 

medically recovered from disability. The old (15-month) rule still applies when a 

retroactive SGA cessation is being processed prior to January 1988. Beginning 

December 1, 1980; if disability has not ceased before that date, a TWP EXT may 

apply when disability ceases because of the ability to work. See FOM-I-325.95; 

or

E. the last day of the month in which the child ceases to be an FTS; or

F. the last day of the month before the month in which the child marries.

EXCEPTION: Under the SS Act, a disabled child age 18 or over may marry any 

SS beneficiary, other than a child beneficiary under age 18 or a child beneficiary 

age 18-22 entitled because he is a FTS, without loss of benefits. However, if a 

female disabled child married a man entitled to a child's disability benefit or to a 

disability insurance benefit (DIB), the female child's entitlement ended the same 

month her husband's benefits ended (e.g., recovery from disability), unless the 

husband's entitlement (either child's disability benefits or DIB) ended because of 

death or (in the case of a DIB only) entitlement to an RIB.

Effective 6-1-83, the female disable child's entitlement on her husband's E/R 

does not end, even if he recovers from his disabilitiy; or,

G. In the case of a stepchild of the employee, the month after the month in which 

the divorce between the employee and the natural parent becomes final.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 44 of 52

325.135 Assignment Of Payment Cases

The employee may authorize the RRB to pay part of his total retirement overall 

minimum (O/M) computation annuity rate to another person by completing an 

"Assignment of Payment Statement" (a special form provided by the Headquarters 

adjudicating unit). If a garnishment is involved, see FOM-I-325.140. It is necessary for 

the person to be included in the retirement O/M computation for the assignment to be 

made. Usually the amount authorized by the employee to be paid to the assignee is 

equal to the amount the employee retirement O/M computation increases because of 

that person. However, the employee may designate an amount that is not necessarily 

attributable to the ineligible person.

The employee may request that this retirement O/M assignment amount be increased 

or decreased at any time. It is not the RRB's responsibility to solicit changes in the 

amount of the assignment whenever there is a cost-of-living increase or change in 

family group composition. The assignment amount should continue to be paid until the 

employee completes a new assignment or until the person may no longer be included in 

the retirement O/M computation. However, if the RR formula exceeds the retirement 

O/M formula, but the person for whom the assignment was made is still eligible to be 

included in the O/M, the Headquarters adjudicating unit will ask the field office to contact 

the employee to ask if there should be a change in the assignment.

Do not suggest assignment of payment or solicit a specific request for an assignment 

payment. When a request for an assignment payment is received, refer the inquiry to 

the Headquarters adjudicating unit. The "Assignment of Payment Statement" will be 

prepared by the Headquarters adjudicating unit and forwarded to the field office for 

completion by the employee.

325.140 Assignment In Lieu Of Garnishment

Beginning with the passage of the Social Services Amendments of 1974 (Public Law 

93-647), assignments may also be made with the approval of the Bureau of Law when 

an RR formula rate is payable, only if a request is made because garnishment of the 

annuity or a court order for alimony or child support is threatened. Assignments in 

retirement overall minimum (O/M) formula cases may still be made if requested by the 

employee; question the employee for the reason for the assignment to determine if a 

garnishment is involved. If the assignment is in lieu of garnishment, the procedure in 

this section applies.

An annuitant may assign a specific amount of an annuity to be paid directly to the 

spouse or to someone else, even if that person is not included in the retirement O/M 

computation. The assignment must be in accordance with state law provisions 

concerning garnishment, which generally require that the annuitant must be in arrears in 

making court ordered payments for alimony or child support. The amount assigned 

must meet the Federal exemption rules outlined in the following section, and the 

employee must file an acceptable assignment of payment statement with the RRB.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 45 of 52

325.140.1 Federal Exemption Rules 

A portion of retirement benefits payable is exempt from garnishment by Federal law. If 

the state in which the legal process is issued also provides for an exemption, the larger 

exemption will apply in the case.

In the absence of a state law providing for a higher exemption, the Federal law exempts 

35% of benefits from garnishment. The amount of the exemption is:

A. Increased by 10% if the beneficiary is supporting a spouse or child other than the 

spouse or child for whose support the legal process is issued; or

B. Increased by 5% if the support or alimony arrearage which caused the 

garnishment order is less than 12 weeks old.

If both of these conditions exist, the maximum retirement benefit subject to garnishment 

is 50%, unless an applicable state law provides a higher exemption. 

The amount of the retirement benefits considered for possible garnishment is the rate 

after any necessary reductions, such as withholding by the RRB for recovery of an 

overpayment or deduction of Medicare premiums. Any applicable exemptions are 

applied to the reduced benefits actually being paid.

325.140.2 Statement for Assignment

When an annuitant expresses the desire to assign a portion of an annuity in lieu of 

having the benefit garnisheed or attached, legal assistance in preparing the assignment 

statement may be suggested or you may assist in preparing the statement to be sent to 

the Bureau of Law. The statement of assignment which you assist in preparing must 

include:

A. That this statement is intended to be in accord with appropriate state law and in 

lieu of garnishment;

B. That a court order for payment of alimony or child support which is the obligation 

of the annuitant exists and a copy of the order is attached;

C. That the annuitant is in arrears in making the ordered payments and the amount 

of the arrearage;

D. Declaration of the amount to be assigned per month, and the name and address 

of the party to whom the assigned payment is to be made;

E. The signature, address, and telephone number of the annuitant; and

F. The notation that the annuitant was "Assisted in preparation by (your name and 

district office location)."
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 46 of 52

The Bureau of Law handles all matters and makes all decisions related to the 

appropriateness and acceptability of assignment requests in lieu of garnishment. In 

these cases the critical claims and reconsideration unit implements the decision of the 

Bureau of Law. This includes any subsequent rate adjustments in the employee's 

annuity. Any action that does not directly affect the annuity rate or relate to or cancel a 

garnishment (e.g., a change of address) is handled in the regular adjudication units.

325.145 Inquiries About Ineligible Person Included (IPI) Shares

The additional amount payable due to the inclusion of ineligible person included (IPI) is 

an increase in the employee's annuity. The additional amount cannot in itself be 

regarded as payable to the IPI spouse or child; the annuity remains the employee's 

benefit, even if the employee assigns part of his annuity to someone else.

In providing information on the amount of the increase due to a spouse or child, the 

amount should be that person's share of the increased retirement O/M amount payable 

above the employee's RR rate or the employee alone retirement O/M rate, whichever is 

higher.

325.150 Spouse Retirement Overall Minimum Elections Defined

The Social Security Act (SS Act) was amended effective 11-1-56 to provide reduced 

benefits for wives, ages 62-64, if the wage earner was at least age 62 or eligible for a 

disability freeze (DF). At that time, the Railroad Retirement Act (RR Act) stated that the 

spouse of an RR annuitant, age 65 or over, could not qualify for an RR Act spouse 

annuity until age 65, unless the spouse had a minor or disabled child of the employee in 

care.

The spouse election procedure was initiated to permit the inclusion of spouses ages 62-

64 who would have qualified under Social Security Administration rules in the retirement 

overall minimum (O/M) computation, provided the employee had attained age 62 or was 

entitled to a DF. The employee's annuity increased under the retirement O/M to include 

a share for the spouse until the spouse became entitled to an RR spouse annuity at age 

65. By filing an election, the spouse agreed to have the spouse annuity permanently 

reduced by a specific amount in order to permit the employee's annuity to be increased 

under the O/M.

325.155 Spouse Elections Under The 1974 Railroad Retirement Act

The benefits payable under the 1974 Railroad Retirement Act eliminated the need for a 

spouse election in most cases, and the RRB discontinued soliciting spouse elections. 

Spouse election information is released only when an inquiry concerning benefit 

entitlement or adjustment is received from an eligible employee or age 62-64 spouse.

A spouse election is not required to include an age 65 spouse or a spouse with a child 

in care in the overall minimum.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 47 of 52

325.160 When A Spouse Election May Apply

Assuming the spouse meets all other retirement overall minimum (O/M) eligibility 

requirements, a spouse election is currently required to increase the employee's annuity 

under the retirement O/M computation only in the following cases:

325.160.1 Employee's Annuity Beginning Date and Filing Date Before 1-1-75

The spouse is not eligible for a railroad spouse annuity until the employee attains age 

65 if the employee's reduced age annuity or disability annuity:

A. Began before July 1, 1974; or

B. Began between July 1, 1974 and December 31, 1974 and the employee had less 

than 30 years of railroad service.

The spouse age 62-64 (without the employee's minor or disabled child in care) may file 

a spouse election to be included as an IPI in the retirement O/M computation if the 

employee either has attained age 62 or qualifies for a disability freeze.

325.160.2 Employee's Annuity Beginning Date or Filing Date is 1-1-75 or Later 

with Less Than 30 Years Service

The spouse is not eligible for a railroad spouse annuity until the employee attains age 

62 if the employee is receiving an annuity based on disability. A spouse age 62-64 

(without the employee's minor or disabled child in care) may file a spouse election if the 

employee is under age 62 but has a DF.

325.160.3 Employee's Annuity Beginning Date is 7-1-74 or Later with 30 or More 

Years Service

The spouse is not eligible for a railroad spouse annuity until the employee attains age 

60 if the employee under age 60 is receiving an annuity based on disability. A spouse 

age 62-64 (without the employee's minor or disabled child in care) may file a spouse 

election if the employee has a DF.

325.165 Development Of Spouse Election

325.165.1 Field Office Handling of Inquiries 

Upon receipt of an inquiry from the annuitant or an age 62-64 spouse who meets the 

conditions specified in FOM-I-325.25, develop the necessary information concerning the 

annuitant and spouse and forward their inquiry to the Headquarters adjudicating unit. 

The RRB does not solicit spouse elections.

NOTE: It would not be advantageous to the annuitant or spouse to file an election if 

either of them are receiving SS benefits or expect to receive SS benefits in the near 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 48 of 52

future, or if either is working and has earnings in excess of the current annual exempt 

amount.

325.165.2 Headquarters Adjudicating Unit Action on Report of Inquiry

Upon receipt of information from a field office indicating that an annuitant's spouse 

wants to file an election, the Headquarters adjudicating unit will test the O/M. If the 

inclusion of the annuitant's spouse as an IPI in the retirement O/M computation would 

increase the monthly amount otherwise payable to the annuitant, the Headquarters 

adjudicating unit will prepare and release dictated letters and statements to the field 

office for personal delivery to the employee and spouse. 

325.165.3 Field Office Action upon Receipt of Election Letters from Headquarters 

Adjudicating Unit

Schedule an appointment with the employee and spouse. Date and deliver the dictated 

spouse election letters, and explain their contents. Also, furnish the employee and 

spouse with Form G-319 plus the dictated statements for their signature. Advise the 

employee and spouse that an election will not be accepted if it is made more than 30 

days after the date of the letters.

If the spouse wishes to make an election, help the employee and spouse complete the 

Form G-319 and the statements. Secure the required proofs. 

If the spouse does not wish to make an election or is not sure if she wishes to make an 

election, advice the Headquarters adjudicating unit of the date on which you delivered 

the letters.

325.170 Forms Required In Spouse Election

325.170.1 Spouse Requirements

In order to process a spouse election, the spouse must file Form G-319 plus a signed 

statement witnessed by an RRB representative indicating that she understands that:

A. The amount of the spouse's annuity she may receive in the future will be 

permanently reduced to take into account the additional amount paid to the 

employee before she becomes entitled to a spouse annuity; and

B. This election will not cause a reduction in any annuity payable to her as a 

widow(er); and

C. This election may not be revoked or changed in any way after the employee's 

annuity has been increased.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 49 of 52

325.170.2 Employee Requirements

The employee must file Form G-319 plus a signed statement witnessed by an RRB 

representative indicating that he understands that, as a result of the election made by 

the spouse:

A. His annuity will be increased and he will receive at least the amount his spouse 

and he would receive if his railroad service were covered by the Social Security 

Act; and

B. The amount of the spouse annuity that the spouse may receive in the future will 

be permanently reduced to take into account the additional amount paid to him 

before his spouse became entitled to a spouse annuity; and

C. All or part of the increase will not be payable if:

1. While under age 70 (age 72 before 1983), the spouse

(a) Works outside the U.S.; or

(b) Works in the United States and earns over the annual earnings 

exempt amount; or 

2. The employee or spouse receives social security benefits; or

3. The marriage is terminated by death or divorce.

The employee must agree to notify the RRB promptly of the occurrence of any of 

these events.

NOTE: The Headquarters adjudicating unit will prepare the necessary 

statements and transmit them to the district office with the request to deliver the 

dictated letters.

325.175 Evidence Required In Spouse Election Cases

The evidence required in a spouse election case is the same as the evidence listed in 

FOM-I-35. In addition, the employee and spouse must sign statements agreeing to the 

increase in the employee annuity and the future actuarial adjustment to the spouse 

annuity due to spouse election. 

325.180 Retroactivity Of Spouse Election

The spouse may be included in the employee annuity retroactive to the first day of the 

month in which the employee and spouse meet the eligibility requirements, provided the 

spouse election is filed within 30 days of the date of the spouse election letters.
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 50 of 52

325.185 Finality Of Spouse Election

Once the retirement overall minimum (O/M) computation rate is paid with the spouse 

election, the election may not be cancelled. The spouse election reduction may, 

however, be adjusted for non-payment months when the spouse annuity becomes 

payable.

The employee's monthly rate may revert back to the RR formula computation whenever 

this rate exceeds the retirement O/M computation rate.

325.190 Termination Of Increase In Employee Annuity

The increase made in the employee's annuity because of a spouse election will end with 

the month immediately preceding the month in which:

A. The marriage of the employee and the spouse is ended by a final divorce decree; 

or

B. The spouse dies; or

C. The spouse is awarded a spouse annuity.

NOTE: If the spouse annuity beginning date (ABD) is after the first day of the month, 

the spouse election increase is payable up to the day before the spouse annuity ABD.

If the employee is under age 62 and the disability insured status is terminated, the 

increase made in the employee's annuity because of the spouse election will end the 

second month after the month in which the disability ceased.

325.195 Spouse Later Does Not Qualify For RR Annuity

A spouse who has filed a valid spouse election is retained in the retirement overall 

minimum (O/M) computation as long as she meets the Social Security Act eligibility 

requirements, even though she is later not eligible for a railroad spouse annuity (e.g., 

working in RR service) or does not file for a spouse annuity.

The additional amount included in the employee annuity under the O/M provision due to 

the spouse election is made only to the employee with nothing in the statute requiring it 

to be paid to the spouse or used for her support. The employee must either file an 

assignment of payment or make regular contributions to the spouse to support her. 

Such an assignment may be made at the employee's request only. 

325.200 Effect Of Spouse Election On Future Widow(er)'S Annuity

The spouse election reduction is never applied to the widow(er)'s annuity. When the 

spouse made an election to be included in the retirement overall minimum (O/M) 

computation of the employee's annuity and subsequently does not become entitled to a 
FOM1 325

FOM1 325 Overall Minimum Guaranty Revised Feb 6, 2014 Page 51 of 52

railroad spouse annuity in a month before the month in which the employee died, no 

reduction is required due to the spouse election.

When the spouse made an election to be included in the retirement O/M computation of 

the employee's annuity and subsequently was paid a spouse annuity that had a spouse 

election reduction in the month before the month in which the employee died, the 

spouse minimum rate used in the computation of the widow(er)'s annuity is the spouse 

annuity rate before the spouse election reduction.

Example: The spouse RR annuity effective 9-1-79 before the spouse election reduction 

is $198.44. The reduction of $5.89 results in a spouse benefit payable of $192.55. The 

employee dies 12-3-79. The spouse minimum rate considered in the widow(er)'s 

insurance annuity computation effective 12-1-79 is $198.44 (rate before the spouse 

election reduction).