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PART 237—INSURANCE ANNUITIES AND LUMP SUMS FOR SURVIVORS

Subpart A—Insured Status Sec. 237.101 Statutory provisions. 237.102 Completely insured status. 237.108 Partially insured status. 237.104 Alternative method of determining

insured status.

Subpart B-Basic Computation 237.201 Statutory provisions. 237.202 Basic amount. 237.203 Average monthly remuneration. 237.204 Closing date. 237.205 Reduction because of military sery.

ice used for other benefits.

Subpart — Family Relationships 237.301 Statutory provisions. 237.302 Applicable state law and status. 237.308 Definition of "widow". 237.304 Definition of "widower". 237.306 Definition of "living with". 237.306 Definition of "child". 237.307 Definition of “dependent upon”. 237.308 Definition of "parent". Subpart D-Insurance Annuity Payments to

Survivors 237.401 Statutory provisions. 237.404 Only one insurance annuity to an

individual. 297.406 Widow's insurance annuity. 237.407 Widower's insurance annuity. 237.408 Widow's current insurance annuity. 237.409 Child's insurance annuity. 237.410 Parent's insurance annuity. 237.411 Beginning and ending of insurance

annuities. Subpart E-lump-Sum Death Payments 237.501 Statutory provisions. 237.502 Lump-sum death payments. 237.503 Payment when lump sum exceeds

insurance annuities accrued. 237.504 Meaning of terms. Subpart F-Maximum and Minimum Insurance

Annuity Totals 237.601 Statutory provisions. 237.602 Application of maximum and minic

mum and basis for computation. 237.603 Reduction. 237.604 Increase. 237.605 Monthly application of provisions. 237.606 Relation to provisions for deduc

tions and adjustments. 237.607 Overall minimum based on Social

Security Act formula.

Subpart G-Deductions 237.701 Statutory provisions. 237.702 Deductions because an individual

works or a widow fails to have a child in her care.

Sec. 287.708 Deductions because of death-bene

fit payments. Subpart H-Application for Insurance Annuities

and Lump Sums for Survivors 237.801 Statutory provisions. 237.802 Application to be filed. 237.803 Filing date of application. 237.804 Signature on application form. 237.805 Limitation on filing. 237.806 Filing of application. 237.807 Individual deterred from flling ap

plication. 237.808 Application deemed to have been

Aled. 237.809 Application where individual is in

competent. 237.810 Cancellation of application.

Subpart 1-Miscellaneous 237.901 Statutory provisions. 237.902 Act of March 7, 1942 (56 Stat. 143,

144). 237.903 Payment of insurance annuity in

lump sum. 237.904 Meaning of "retirement annuity”. 237.905 Proof of continuance of disability

of child age 18 or over. 237.906 Rounding of insurance annuity. 237.907 Effect of felonious homicide. 237.908 Escheat.

AUTHORITY: The provisions of this part 237 Issued under secs. 3, 10, 50 Stat. 310, as amended, 314, as amended; 45 U.S.C. 228c, 228j.

Subpart A-Insured Status § 237.101 Statutory provisions.

An employee will have been "completely insured” if it appears to the satisfaction of the Board that at the time of his death, whether before or after the enactment of this section, he will have completed ten years of service and will have had the qualifications set forth in any one of the following paragraphs:

(1) a current connection with the railroad industry; and a number of quarters of coverage, not less than six, and at least equal to one-half of the number of quarters, elapsing in the period after 1936, or after the quarter in which he will have attained the age of twenty-one, whichever is later, and up to but excluding the quarter in which he will have attained the age of sixty-five years or died, whichever will first have occurred (excluding from the elapsed quarters any quarter which is not a quarter of coverage and during any part of which a retirement annuity will have been payable to him); and 11 the number of such elapsed quarters 18 an odd number such number shall be reduced by one; or

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(11) a current connection with the rail. road industry; and either will have had forty or more quarters of coverage or would be fully insured under title II of the Social Socurity Act 11 his service as an employee after December 31, 1936, were included in the term "employment" as defined in that Act; or

(111) & pension will have been payable to him; or a retirement annuity based on seryice of not less than ten years (as computed in awarding the annuity) will have begun to accrue to him before 1948. (Section 5(1) (7) of the act.)

An employee will have been "partially insured" at the time of his death, whether before or after the enactment of this section, if it appears to the satisfaction of the Board that he will have completed ten years of service and (1) will have had a current connection with the railroad industry; and (11) either will have had six or more quarters of coverage in the period ending with the quarter in which he will have died or in which a retirement annuity will have begun to accrue to him and beginning with the third calendar year next preceding the year in which such event occurs, or would be currently insured under title II of the Social Security Act if his service as an employee after December 31, 1936, were included in the term "employment” as defined in that Act. (Section 5(1) (8) of the act.)

An individual shall be deemed to have "a current connection with the railroad industry" at the time an annuity begins to accrue to him and at death if, in any thirty consecutive calendar months before the month in which an annuity under section 2 begins to accrue to him (or the month in which he dies if that first occurs), he will have been in service as an employee in not less than twelve calendar months and, if such thirty calendar months do not immediately precede such month, he will not have been engaged in any regular employment other than employment for an employer in the period before such month and after the end of such thirty months. For the purposes of section 5 only, an individual shall be deemed also to have a "current connection with the railroad industry” if he is in all other respects completely insured but would not be fully insured under the Social Security Act, or if he is in all other respects partially insured but would be neither fully nor currently insured under the Social Security Act, or if he has no wage quarters of coverage. (Section 1(0) of the act.)

The term "quarter of coverage" shall mean a compensation quarter of coverage or a wage quarter of coverage, and the term “quarters of coverage" shall mean compensation quarters of coverage, or wage quarters of coverage, or both: Provided, That there shall be for a single employee no more than four quarters of coverage for a single calendar year. (Section 5(1) (3) of the act.)

The term "compensation quarter of coverage" shall mean any quarter of coverage

If upon computation of the compensation quarters of coverage in accordance with the above table an employee is found to lack a completely or partially Insured status which he would have if compensation paid in a calendar year were presumed to have been paid in equal proportions with respect to all months in the year in which the employee will have been in service as an employee, such presumption shall be made. (Section 6(1)(4) of the act.)

The term “wage quarter of coverage" sball mean any quarter of coverage determined in accordance with the provisions of Title II of the Social Security Act. (Section 5(1) (5) of the act.) (Board Order 59-232, 25 F.R. 479, Jan. 21, 1960; 25 F.R. 1073, Feb. 6, 1960) 8 237.102 Completely insured status.

(a) Payments based upon, and existence of, completely insured status. (1) All insurance annuities and lump sums, other than a residual lump sum, for survivors are conditioned upon an employee's insured status. This status is determined by the employee's service, compensation, and wage history. Unless the employee was completely insured at death, his widow cannot become entitled to a widow's insurance annuity, her widower cannot become entitled to a widower's insurance annuity, and his or her surviving parent cannot become entitled to a parent's insurance annuity on the basis of the employee's earnings.

(2) For the purpose of determining whether an employee was completely insured at death, it is immaterial whether his death occurred before, on, or after the enactment date of section 5 of the act.

(3) An employee was completely insured at death if:

(1) He had completed at least 10 years of service, had acquired the number of

quarters of coverage specified in paragraph (d) of this section, and had a current connection with the railroad industry at the time of his death; or

(ii) He had completed at least 10 years of service, would be fully insured under title II of the Social Security Act if his service after 1936 were included in the term "employment" as defined in that act, and had a current connection with the railroad industry at the time of his death, provided that his death occurred on or after September 6, 1958 (or before that date if none of his survivors became entitled earlier to monthly benefits under title I of the Social Security Act by reason of his death); or

(iii) There had been payable to him a pension under section 6 of the act; or

(iv) There had begun to accrue to him before 1948 a retirement annuity based on not less than 10 years of service (as computed in awarding the annuity).

(b) Quarter of coverage. A quarter of coverage may be either a compensation quarter of coverage or a wage quarter of coverage.

A compensation quarter of coverage is a quarter of coverage computed, with respect to compensation paid an employee after 1936, regardless of his age, in accordance with the table contained in section 5(1) (4) of the act.

A wage quarter of coverage is a quarter of coverage determined in accordance with the provisions of Title II of the Social Security Act.

The term “quarters of coverage" includes compensation quarters of coverage, wage quarters of coverage, or both. However, no employee may acquire more than four quarters of coverage for a single calendar year.

(c) Current connection with the railroad industry.

(1) A deceased individual will have had à current connection with the railroad industry at the time of his death if he will have had a period of 30 consecutive calendar months which meets the following requirements: First, that period must have ended before an annuity had begun to accrue to him in accordance with Part 214 of this chapter, or before the month in which he died if that occurred first. Second, during that period he must have been in service as an employee in at least 12 calendar months. Third, if there was any interval between the end of the 30-month period and the month in which an annuity began to

accrue to him, or the month in which he died if that occurred first, he must not, in that interval, have been engaged in any regular employment other than serv. ice for an employer. For the purposes of this paragraph, "regular employment" shall mean full- or part-time employment for remuneration by an individual for a person (as defined in § 201.1(j) of this chapter) on a continuing or recurring basis. Self-employment shall not be considered "regular employment.” An individual performing employment for remuneration, whether or not under a contract, shall be deemed to be in the employ of a person unless such employment is performed as a part of his independently established trade, business or occupation. An individual shall be deemed to have been engaged in "regular employment” in the interval between the end of the last 30-month period in which he had been in service as an employee in 12 calendar months and the month in which an annuity had begun to accrue to him, or the month in which he died if that occurred first, if he worked for one or more persons in any three consecutive calendar quarters wholly or partially within such interval and earned wages of at least $300 for work in each of any two consecutive calendar quarters wholly or partially within such interval even though such two quarters do not fall within a three-consecutive-calendarquarter period of work.

(2) A deceased individual will have also had a current connection with the railroad industry at the time of his death for the purposes of this part if:

(i) He was neither fully nor currently insured under the Social Security Act, but would otherwise have a completely or partially insured status under the Railroad Retirement Act; or

(ü) He had no wage quarters of coverage.

(3) A determination as to whether or not a deceased individual will have had a current connection with the railroad industry made on or after June 8, 1960 shall be made under the provisions of this paragraph.

(d) Determination of completely insured status on basis of quarters of coverage and current connection. An employee, whether or not he was completely insured at death by virtue of having been a pensioner or an annuitant, could have been completely insured at the time of his death if at that time he had com

pleted at least 10 years of service, had a current connection with the railroad industry, and had at least 40 quarters of coverage; or had quarters of coverage at least equal to one-half the number of elapsed quarters after 1936 but not less than six; or had suficient quarters of coverage to be fully insured under Title II of the Social Security Act if his service after 1936 were included in the term "employment” as defined in that act, provided that his death occurred on or after September 6, 1958 (or before that date if none of his survivors became entitled earlier to monthly benefits under Title II of the Social Security Act by reason of his death). In the case of an employee who, at the time of his death, had completed at least 10 years of service and had a current connection with the railroad industry, the determination of required quarters of coverage under provisions other than those of Title II of the Social Security Act is made as follows:

(1) Elapsed quarters. Take the number of calendar quarters which have elapsed after 1936, or after the quarter in which the employee attained the age of 21 if he attained such age after 1936, and up to but excluding the quarter in which the employee attained the age of 65 or died, whichever occurred first. Subtract from that number of elapsed quarters the number of such quarters which is not a wage quarter of coverage and during any part of which a retirement annuity was payable to the employee. If the resulting number of elapsed quarters is an odd number, subtract one. Take one-half of the number of elapsed quarters thus obtained, and the resulting number, if six or more, is the number of quarters of coverage required; if the resulting number is less than six, the number of quarters of coverage required is six,

(2) Quarters of coverage determined. (i) Determine the number of quarters of coverage the employee had acquired. If this number equals or exceeds the number required, the employee was completely insured.

(ii) A quarter of coverage may be acquired at any time subsequent to December 31, 1936, regardless of whether there are any elapsed quarters under subparagraph (1) of this paragraph and regardless of the age of the employee.

(iii) Quarters of coverage need not be consecutive and no particular order of their acquisition is required. (12 F.R. 2018, Mar. 27, 1947, as amended by Board Order 59–232, 25 F.R. 479, Jan. 21, 1960; 25 F.R. 1073, Feb. 6, 1960; Board Order 60–99, 25 F.R. 5765, June 23, 1960) § 237.103 Partially insured status.

(a) Payments based upon partially insured status. An employee who was not completely insured at death may nevertheless have had a service, compensation, and wage history which, upon his death, will give him the status of a partially insured employee. Unless he was either completely insured or partially insured at death, his widow cannot become entitled to a widow's current insurance annuity, his surviving child cannot become entitled to a child's insurance annuity, and no persun can become entitled to a lump-sum payment under section 5 (f) (1) of the act, on the basis of his earnings. For the purpose of determining whether an employee was a partially insured employee at death it is immaterial whether his death occurred before, on, or after the enactment date of section 5 of the act.

(b) Determination of partially insured status. (1) An employee was partially insured at death if he had completed at least 10 years of service, had a current connection with the railroad industry, and:

(i) Had at least six quarters of coverage in the period beginning with the third year before the year of retirement or death and ending with the quarter in which such event occurred; or

(ii) Had suficient quarters of coverage to be currently insured under Title II of the Social Security Act if his seryice after 1936 were included in the term "employment” as defined in that act, provided that his death occurred on or after September 6, 1958 (or before that date if none of his survivors became entitled earlier to monthly benefits under Title II of the Social Security Act by reason of his death).

(2) Quarters of coverage need not be consecutive and no particular order of their acquisition is required. (Board Order 55-89, 20 F.R. 8714, May 27, 1955, as amended by Board Order 69–282, 25 F.R. 480, Jan. 21, 1960]

& 237.104. Alternative method of de

termining insured status. Where application of the table in section 5(1) (4) of the act (see $ 237.101) does not result in an employee's having a completely or partially insured status, it shall be presumed that the compensation paid him in a calendar year was paid in equal proportions with respect to all months in the year and the last line of the table applied to the result. This alternative method shall be applied to the most recent calendar year in which the employee received compensation and each preceding calendar year until an insured status is obtained, if at all, but not beyond 1937. This alternative method is to be applied only with respect to benefits accruing under the 1951 amendments, that is, in determining the insured status of a deceased employee and in determining whether a child would be otherwise entitled to a child's insurance annuity. (Board Order 55-89, 20 F. R. 8714, May 27, 1955; 20 F. R. 6004, Aug. 18, 1965)

Subpart B-Basic Computation $ 237.201 Statutory provisions.

The term "basic amount" shall mean

(i) For an employee who will have been partially insured, or completely insured solely by virtue of paragraph (7) (i) or (7) (11) or both: the sum of (A) 49 per centum of his average monthly remuneration, up to and including 875: plus (B) 12 per centum of such average monthly remuneration exceeding $75 and up to and including $450, plus (C) i per centum of the sum of (A) plus (B) multiplied by the number of years after 1936 in each of which the compensation, wages, or both, paid to him will have been equal to $200 or more; if the basic amount, thus computed, is less than $16.95 it shall be increased to $16.95;

(ii) For an employee who will have been completely insured solely by virtue of paragraph (7) (iii) : the sum of 49 per centum of his monthly compensation if an annuity will have been payable to him, or, if a pension will have been payable to him, 49 per centum of the average monthly earnings on which such

was computed, up to and including $75. plus 12 per centum of such compensation or earnings exceeding $75 and up to and including $300. If the average monthly earnings on which a pension pay. able to him was computed are not ascertainable from the records in the possession of the Board, the amount computed under this subdivision shall be $40.33, except that if the pension payable to him was less than $30.25, such amount shall be four-thirds of the

amount of the pension or $16.13, whichever is greater. The term "monthly compensation" shall, for the purposes of this subdivision, mean the monthly compensation used in computing the annuity;

(iii) For an employee who will have been completely insured under paragraph (7) (111) and either (7) (1) or (7) (11): The higher of the two amounts computed in accordance with subdivisions (1) or (1). (Section 5(1) (10) of the act)

An employee's "average monthly renumeration" shall mean the quotient obtained by dividing (A) the sum of (i) the compensetion paid to him after 1936 and before the employee's closing date, eliminating any excess over $300 for any calendar month before July 1, 1954, any excess over $350 for any calendar month after June 30, 1954, and before the calendar month [June 1959] next following the month in which this Act was amended in 1959 (May 1959), any excess over $400 for any calendar month after the month in which this Act was so amended and before the calendar month (November 1963] next following the month in which this Act was amended in 1963 (October 1963] and any excess over $450 for any calendar month after the month in which this Act was so amended, and (11) if such compensation for any calendar year before 1955 is less than $3,600 or for any calendar year after 1954 and before 1959 is less than $4,200, or for any calendar year after 1958 is less than $4,800, and the average monthly renumeration computed on compensation alone is less than $450 and the employee has earned in such calendar year “wages" as defined in paragraph (6) hereof, such wages, in an amount not to exceed the difference between the compensation for such year and $3,600 for years before 1955, $4,200 for years after 1954 and before 1959, and $4,800 for years after 1958, by (B) three times the number of quarters elapsing after 1936 and before the employee's closing date:

Provided, That for the period prior to and including the calendar year in which he will have attained the age of twenty-two there shall be included in the divisor not more than three times the number of quarters of coverage in such period: Provided, further, That there shall be excluded from the divisor any calendar quarter which is not a quarter of coverage and during any part of which a retirement annuity will have been payable to him. An employee's "closing date” shall mean (A) the first day of the first calendar year in which such employee both had attained age 65 and was completely insured; or (B) the first day of the calendar year in which such employee died; or (C) the first day of the calendar year following the year in which such employee died, whichever would produce the highest "average monthly remuneration” as defined in the preceding sentence. If the amount of the "average

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