(b) If compensation records are not available for at least one-half or for 18, whichever is higher, of the months of proved service in the period 1924–31 that are included in the individual's "years of service," the "monthly compensation for service prior to January 1, 1937," shall be the higher of: (1) The monthly average of the compensation earned in the months in the period 1924-31 which are included in the "years of service" and for which compensation records are available; or (2) the Interstate Commerce Commission average.

(ii) (a) If 18 or more months of service are proved in the period 1924-31 but less than 18 months in such period are included in the individual's "years of service," the "monthly compensation for service prior to January 1, 1937," shall be the monthly average of the compensation earned in the last 18 months of proved service in the period 1924–31 provided that compensation records are available for all such 18 months.

(b) If compensation records are not available for all of the last 18 months of proved service in the period 1924-31, the "monthly compensation for service prior to January 1, 1937," shall be the higher of: (1) The monthly average of the compensation earned in those months in the last 18 months of proved service in the period 1924-31 for which compensation records are available; or (2) the Interstate Commerce Commission average.

(iii) (a) If the individual's service began before 1932 but less than 18 months of service are proved in the period 192431, the "monthly compensation for service prior to January 1, 1937," shall be the higher of: (1) The monthly average of the compensation earned in the months in the period 1924-36 which are included in the individual's "years of service" and for which compensation records are available; or (2) the Interstate Commerce Commission average.

(b) If no service was proved in the period 1924-36 but service prior thereto is proved and is included in the individual's "years of service," the "monthly compensation for service prior to January 1, 1937," shall be the Interstate Commerce Commission average for the occupation in which the individual was last engaged prior to 1924.

(iv) If the individual's service began after 1931, the "monthly compensation for service prior to January 1, 1937," shall be the higher of: (a) The monthly

average of the compensation earned in the months in the period 1932-36 which are included in the individual's "years of service" and for which compensation records are available; or (b) the Interstate Commerce Commission average.

(2) For a station employee whose duties consisted of or included the carrying of passengers' hand baggage and otherwise assisting passengers at passenger stations and whose remuneration for service to the employer was, in whole or in substantial part, in the form of tips, the "monthly compensation" paid or attributable as paid with respect to each month of service before September 1941 shall be the result obtained by dividing (i) the creditable compensation earned by him as a station employee in the period September 1940-August 1941 by (ii) the number of months he rendered service as a station employee during that period: Provided, however, That in any case in which service of a station employee in the period September 1940August 1941 is, in the judgment of the Board, insufficient to constitute a fair and equitable basis for determining the amount of compensation paid or attributable as paid to him in each month of service before September 1941, the Board shall determine the amount of such compensation for each such month in such manner as in its judgment shall be fair and equitable.

The following paragraphs of this section shall not be applicable to station employees.

(c) (1) The term "occupation" as used in this chapter shall mean that activity in which an individual was engaged while in the service of an employer.

(2) If an individual was engaged in more than one "occupation" in any calendar month, he shall be considered to have been engaged throughout that calendar month in whichever one of such "occupations" has the highest Interstate Commerce Commission average.

(d) (1) The term "Interstate Commerce Commission average" as used in this chapter shall mean the consolidated monthly average of employee earnings reported to the Interstate Commerce Commission for the years 1924-31 by all Class I carrier-employers for employees in the occupation in which the individual was employed during the period specified, or in an occupation essentially similar thereto.

(2) For any individual who was employed in two or more occupations in the

period specified, the "Interstate Commerce Commission average" shall be obtained by: Multiplying such monthly average of earnings reported by carrieremployers for each occupation by the number of calendar months in which the individual was engaged in such occupation during the period specified; and dividing the sum of the products by the total number of months of service in all occupations in which he was engaged during such period.

(3) If the Interstate Commerce Commission average exceeds $300, $300 shall be used in lieu of such average.

(e) For the purposes of this chapter there shall be regarded as a month for which compensation records are available only a month of service for which all of the employee's claimed compensation can be verified in accordance with the provisions of § 222.5 of this chapter, and every other month of service shall be regarded as a month for which compensation records are missing.

(f) No redetermination of the "monthly compensation for service prior to January 1, 1937," shall be made under the provisions of this section in any case in which prior to January 28, 1959, a final determination of the monthly compensation for such service has been made under this section as originally promulgated or as amended, or under any other authority: Provided, however, That the "monthly compensation for service prior to January 1, 1937," shall be redetermined in any case in which compensation records become available for any month or months which in the making of the previous determination were regarded as a month or months for which compensation records were missing, and such redetermination would result in an increase in such monthly compensation. [Board Order 59-19, 24 F. R. 1248, Feb. 18, 1959]

act and § 208.5 of this chapter, the minimum annuity payable for a month after May 1959 shall, except as provided in § 225.6 and prior to any reduction pursuant to §§ 225.7, 225.8 and 225.9, be whichever of the following is the least:

(a) $5.00 multiplied by the number of the individual's "years of service"; or (b) $83.50; or

(c) 110 percent of the individual's "monthly compensation" as determined under § 225.3.

[Board Order 59-229, 24 F.R. 10881, Dec. 29, 1959]

§ 225.6

Over-all minimum based on Social Security Act formula.

(a) When an individual's annuity is not subject to & reduction under § 225.7 or § 225.8, and the amount of annuity payable to such individual for an entire month plus the amount, if any, of the spouse's annuity payable for such month to the spouse of such individual, is less than 110 percent of the amount, or 110 percent of the additional amount, which would have been payable for such month under the Social Security Act to the individual, his spouse, and his children, if any, the amount of the annuity or annuities shall be increased proportionately to 110 percent of such amount or 110 percent of such additional amount.

(b) When an individual's annuity is subject to a reduction under § 225.7, and the amount of annuity payable to such individual for an entire month plus the amount, if any, of the spouse's annuity payable for such month to the spouse of such individual, is less than 110 percent of the amount, or 110 percent of the additional amount, which would have been payable for such month under the Social Security Act to the individual, his spouse, and his children, if any, the total amount of such individual's annuity plus the amount of the spouse's annuity, if any, shall be increased to 110 percent of such amount, or 110 percent of such additional amount, and then, if the Social Security Act formula became applicable after the month in which the annuity began to accrue and before the month the individual attained age 65, reduced by the amount the individual's annuity would have been reduced under § 225.7 had he been age 65 in the month that formula became applicable, or, if such formula became applicable in or after the month the individual attained age 65, reduced by the monetary amount

that the individual's annuity was reduced under § 225.7. The amount of such individual's annuity and the amount of his spouse's annuity, if any, shall be increased proportionately to such total amount as so reduced.

(c) When an individual's annuity is subject to a reduction under § 225.8, and the amount of annuity payable to such individual for an entire month without regard to such reduction plus the amount, if any, of the spouse's annuity payable for such month to the spouse of such individual, is less than 110 percent of the amount, or 110 percent of the additional amount, which would have been payable for such month under the Social Security Act to the individual, his spouse, and his children, if any, the total amount of such individual's annuity plus the amount of the spouse's annuity, if any, shall be increased to 110 percent of such amount, or 110 percent of such additional amount, and then reduced by the same amount in money as the individual's annuity was reduced under § 225.8. The amount of such individual's annuity and the amount of his spouse's annuity, if any, shall be increased proportionately to such total amount as so reduced.

(d) For the purpose of this section:

(1) The individual's service as an employee after 1936 shall be deemed to have been “employment” as that term is defined in the Social Security Act;

(2) Quarters of coverage shall be determined in accordance with section 5(1) (4) of the Railroad Retirement Act (see 237.101 of this chapter), except that the alternate method in such section relating to determining quarters of coverage in a case where an individual lacks a completely or partially insured status does not apply. If an individual lacks an insured status for the purpose of this section through the use of the table appearing in § 237.101 of this chapter, quarters of coverage shall be determined by presuming the individual's compensation in a calendar year after 1936 to have been paid in equal proportions with respect to all months in which he will have been in service as an employee in such calendar year, with the individual being credited with one quarter of coverage for each calendar quarter in which the prorated compensation and wages, if any, total $50 or more;

(3) A woman entitled to a spouse's annuity pursuant to an election made under section 2(h) of the Railroad Re

tirement Act shall be deemed entitled to a wife's insurance benefit under section 202(q) of the Social Security Act;

(4) The amount of any possible deductions for failure to report an event causing a deduction as provided in subsections (g) and (h) (2) of section 203 of the Social Security Act shall be disregarded; and

(5) A "period of disability," within the meaning of section 216(i) of the Social Security Act, with respect to any individual who has filed an application therefor and who either will have completed ten years of service or will have been awarded an annuity shall be determined by the Board on the basis of its records or evidence obtained by it.

(e) In determining a "period of disability" for an individual, the Board shall have the same authority as the Secretary of Health, Education, and Welfare would have to determine such a period for such individual.

(f) An application filed with the Board for a disability annuity shall be deemed to be an application to determine a "period of disability."

[Board Order 62-33, 27 F.R. 3322, Apr. 7, 1962]

§ 225.7 Annuities subject to reduction where individual is under age 65. Where the eligibility of a male applicant for an annuity is based on age 60 to 65 and 30 years of service and where the eligibility of a male or female applicant for an annuity is based on age 62 to 65 and less than 30 years of service, the amount of the annuity, as computed under §§ 225.1 to 225.6, shall be reduced by 1/180 for each calendar month during all of which the individual is less than 65 years of age when the annuity begins to accrue.

[Board Order 62-33, 27 F.R. 3322, Apr. 7, 1962]

§ 225.8 Effect of election of joint and survivor annuity.

If a joint and survivor election is operative, the value of the annuity, as computed under §§ 225.1 to 225.7, shall be applied to the payment of two annuities, a joint and survivor annuity to the individual during life, and a survivor annuity to the surviving spouse during life; the amounts of both annuities shall be such that their combined actuarial value as determined by the Board shall be the same as the actuarial value of the annuity computed

under §§ 225.1 to 225.7: Provided, however, That such joint and survivor annuity shall upon revocation of the election or death of the spouse be increased to the amount that would have been payable had an election not been made, such increased annuity to begin to accrue, subject to the provisions of

214.1 of this chapter, on the first of the calendar month following the calendar month in which the election was revoked or the spouse died, but not before November 1, 1951.

(Sec. 2, 50 Stat. 309, as amended; 45 U.S.C. 228b) [Board Order 55-89, 20 F.R. 3710, May 27, 1955]

§ 225.9 Reduction because of military service used for other benefits.

When any other gratuitous benefit is payable on a periodic basis under another act of Congress on the basis of military service included in an individual's years of service, the annuity of such individual for all or part of a month for which such other benefit is payable, shall be reduced by

(a) The proportion that the number of years of service by which such military service increases the years of service bears to the total years of service, or

(b) The aggregate amount of such other benefit for that month, whichever results in the smaller reduction; however, where eligibility for the annuity exists without the crediting of the military service on the basis of which such other benefit is payable, the annuity shall not be reduced below the amount which would be payable without the crediting of the military service.

(Sec. 3A, 54 Stat. 1014, as amended; 45 U.S.C. 228c-1) [Board Order 55-89, 20 F.R. 3710, May 27, 1955]

§ 225.10 [Reserved]

(a) Recomputation of retirement annuity. Subject to the provisions of paragraph (b) of this section, the retirement annuity of an individual shall be recomputed and recertified to include service rendered by such individual as an employee after such annuity began to accrue if the individual has, on or before the date of his death, filed with an office of the Board a duly executed application for such recomputation subject to the same conditions and limitations prescribed in § 210.2 of this chapter relating to the execution and filing of an applica

tion for an annuity. A recomputation under this section shall be made according to the provisions of section 3 of the act, as amended, and shall take into account all the individual's service rendered as an employee up to the date the application for recomputation is filed with the Board.

(b) Cessation of service and relinquishment of rights as conditions for recomputation. An individual shall be entitled to have his retirement annuity recomputed under paragraph (a) of this section only if he shall have ceased to render service for compensation to an employer as defined in Part 202 of this chapter, and shall have relinquished all rights which he may have had to return to the service of any such employer; but the requirement of relinquishment of rights shall not apply to an individual entitled to an annuity described in § 208.7 (a) (3) or (4) of this chapter, prior to attaining age 65.

(c) Filing date of application for recomputation. An application for recomputation of a retirement annuity, filed in the manner and form prescribed in paragraph (a) of this section and § 210.2 of this chapter, shall be considered filed as of the date prescribed in § 210.3 of this chapter.

(d) Signature on application for recomputation. An application for recomputation of a retirement annuity shall be signed in the manner prescribed in § 210.4 of this chapter. In addition, the conditions prescribed in that section with respect to re-executed or corrected applications shall also apply to such an application.

(e) Presumptions from application; application where individual is incompetent; alteration; cancellation and effect of cancellation of application. Sections 210.5, 210.7, 210.10, 210.11, and 210.12, respectively, of this chapter shall govern the presumptions which shall be made from a duly executed application for recomputation of a retirement annuity received on or prior to the date of death of the applicant, the execution and filing of such an application in the event the individual is mentally incompetent, the restrictions governing the alteration of such an application, the cancellation of such an application, and the effect of a cancellation.

(f) Effective date of increase where retirement annuity is recomputed to include service rendered after annuity began to accrue. Any increase in a re

tirement annuity resulting from a recomputation to include service rendered after the annuity has begun to accrue shall be effective as of the latest of the following dates: (1) twelve months before the filing date of the application for recomputation, or (2) the first day of the month following the last month in which the employee worked for an employer under the act: Provided, however, That no such increase in annuity shall be effective before November 1, 1951. [Board Order 55-89, 20 F.R. 3711, May 27, 1955]

§ 225.12 Rounding annuity.

When awarded on or after September 6, 1958, a monthly annuity that is computed or recomputed under this part and that is not a multiple of $0.10, shall be raised to the next higher multiple of $0.10.

[Board Order 59-19, 24 F.R. 1248, Feb. 18, 1959]

For the purposes of this Act, the term "spouse" shall mean the wife or husband of a retirement annuitant or pensioner who (1) was married to such annuitant or pensioner for a period of not less than one year immediately preceding the day on which the application for a spouse's annuity is filed, or in the month prior to her or his marriage to such annuitant or pensioner was eligible for an annuity under subsection (a) or (d) of section 5 of this Act or, on the basis of disability, under subsection (c) thereof, or is the parent of such annuitant's or pensioner's son or daughter, if, as of the day on which the application for a spouse's annuity is filed, such wife or husband and such annuitant or pensioner were members of the same household, or such wife or husband was receiving regular contributions from such annuitant or pensioner toward her or his support, or such annuitant or pensioner has been ordered by any court to contribute to the support of such wife or husband; and (ii) in the case of a husband, was receiving at least one-half of his support from his wife at the time his wife's retirement annuity or pension began. (Section 2(f) of the Act.) [Board Order 62-33, 27 F.R. 3322, Apr. 7, 1962]

§ 232.102 Definition of "spouse".

The term "spouse" means a wife or husband of a retirement annuitant or pensioner as defined in section 2 of the act and in §§ 232.103 and 232.104. [Board Order 55-89, 20 F.R. 3711, May 27. 1955]

§ 232.103 Definition of "wife".

An individual is a "wife," as that term is used in section 2 of the act, when such an individual is the wife of a retirement annuitant or pensioner under the law of the state of his domicile and when:

(a) She has been married to such annuitant or pensioner for at least one year preceding the date on which an application for a spouse's annuity is filed, or in the month before her marriage was eligible for an insurance annuity under § 237.406 or § 237.410 of this chapter or, on the basis of disability, § 237.409 of this chapter, or is the natural mother of his son or daughter, and

(b) As of the date on which an application for a spouse's annuity is filed, she was a member of the same household as such annuitant or pensioner, or he was contributing toward her support regu