Source: https://www.govregs.com/regulations/title20_chapterII_part227_section227.4
Timestamp: 2020-02-27 05:16:41
Document Index: 737516379

Matched Legal Cases: ['§ 227', 'art 227', 'art 227', '§ 227', '§ 227', '§ 227', '§ 216']

20 CFR 227.4 - Reduction for employer pension. § 227.4 - Reduction for employer pension.
All TitlesTitle 20Chapter IIPart 227 - COMPUTING SUPPLEMENTAL ANNUITIES
View all text of Part 227 [§ 227.1 - § 227.5]
§ 227.4 - Reduction for employer pension.
(a) General. The supplemental annuity for each month is reduced by the amount of any private pension the employee is receiving for that month based on the contributions of a railroad employer. This reduction is applied to the supplemental annuity amount after any reduction for railroad retirement family maximum. Private pension is explained in § 216.14 of this chapter.
(b) Private pension reduced for supplemental annuity. If the employer reduces the private pension for the employee's entitlement to the supplemental annuity, the reduced pension amount is subtracted from the supplemental annuity. However, the reduction in the supplemental annuity can be no greater than the difference between the supplemental annuity amount, after any reduction for railroad retirement family maximum, and the amount the private pension is reduced for the supplemental annuity. This guarantees that the sum of the reduced supplemental annuity and the reduced employer pension is not less than the amount of the full employer pension.
Example:The full employer pension is $80. This is reduced by $35 because of the employee's entitlement to a supplemental annuity. The initial supplemental annuity rate is $43.
Full employer pension $80
Reduction for supplemental annuity −35
Reduced pension amount 45
Supplemental annuity 43
Reduced pension amount −45
Reduction in private pension −35
Reduction in private pension −8
Reduced supplemental annuity 35
(c) Part of private pension based on employee contributions. If the employer pension is based on both employer and employee contributions, a special formula is used to determine the amount to be subtracted from the supplemental annuity. The Board first computes the pension amount the employee's contributions could have purchased from a private insurance company. That amount is subtracted from the total employer pension. The result is the pension amount used to reduce the supplemental annuity.