the first month after December 1946 in which all of the conditions of entitlement are satisfied. The last month for which such individual is entitled to such annuity is the month immediately preceding the first month in which either of the following events occurs:

(1) He remarries; or

(2) He dies.

(c) Rate of annuity. A parent's insurance annuity for a month is equal to two-thirds of the basic amount of the deceased employee. If the parent is entitled to a parent's insurance annuity with respect to more than one deceased employee, his parent's insurance annuity shall be two-thirds of whichever employee's basic amount is greatest. The rate shall be adjusted in accordance with §§ 237.205 and 237.404 and Subpart F of this part.

§ 237.411

Beginning and ending of insurance annuities.

(a) Beginning. An insurance annuity under this subpart shall begin with the first month after December 1946, or in the case of a widower's insurance annuity with the first month after October 1951, with respect to which all of the conditions of entitlement for such annuity, as set out in the preceding sections of this subpart, are satisfied, if the individual shall have filed an application for such annuity, as prescribed in Subpart H of this part:

(1) In such month; or

(2) In the three months immediately preceding such month; or

(3) In the 12 months immediately succeeding such month.

(b) Ending. No insurance annuity under this subpart shall be payable for the month in which the conditions of entitlement for such annuity, as set out in the preceding sections of this subpart, cease to be satisfied.

[Board Order 60-59, 25 F.R. 3819, Apr. 30, 1960]

Subpart E-Lump-Sum Death
Payments

§ 237.501 Statutory provisions.

Lump-sum payment. Upon the death, after the month in which this Act is enacted [the 1937 Act as amended September 6, 1958], of a completely or partially insured employee who will have died leaving no widow, widower, child, or parent who would on proper application therefor be entitled to receive an annuity under this section for the month in which such death occurred, a

lump sum of ten times the employee's basic amount shall be paid to the person, if any, who is determined by the Board to be the widow or widower of the deceased employee and to have been living with such employee at the time of such employee's death and who will not have died before receiving payment of such lump sum. If there be no such widow or widower, such lump sum shall be paid to any person or persons, equitably entitled thereto, to the extent and in the proportions that he or they shall have paid the expenses of burial of such deceased employee. If a lump sum would be payable to a widow or widower under this paragraph except for the fact that a survivor will have been entitled to receive an annuity for the month in which the employee will have died, but within one year after the employee's death there will not have accrued to survivors of the employee, by reason of his death annuities which, after all deductions pursuant to paragraph (1) of subsection (1) will have been made, are equal to such lump sum, a payment equal to the amount by which such lump sum exceeds such annuities so accrued after such deductions shall then nevertheless be made under this paragraph to the person (or, if more than one, in equal shares to the persons) first named in the following order of preference: the widow, widower, child, or parent of the employee then entitled to a survivor annuity under this section. No payment shall be made to any person under this paragraph, unless application therefor shall have been filled, by or on behalf of any such person (whether or not legally competent), prior to the expiration of two years after the date of death of the deceased employee, except that if the deceased employee is a person to whom section 2 of the Act of March 7, 1942 (56 Stat. 143, 144), is applicable such two years shall run from the date on which the deceased employee, pursuant to said Act, is determined to be dead, and for all other purposes of this section such employee, so long as it does not appear that he is in fact alive, shall be deemed to have died on the date determined pursuant to said Act to be the date or presumptive date of death. (Section 5(f) (1) of the act.)

[Board Order 60-50, 25 F.R. 2890, Apr. 6, 1960; 25 F.R. 3396, Apr. 20, 1960]

§ 237.502 Lump-sum death payments.

(a) Conditions of payment. A lump sum is payable to one or more of the persons described in paragraph (b) of this section if:

(1) The employee died after September 1958 either completely or partially insured at the time of his death; and

(2) Such deceased employee was not survived by a widow, widower, child, or parent (see § 237.504 (a)), who, upon application therefor, would be entitled to receive a widow's insurance annuity, a widower's insurance annuity, a widow's

current insurance annuity, a child's insurance annuity, or a parent's insurance annuity, upon the basis of the insured status of such employee, for the month in which such employee died; and

(3) An application (see Subpart H of this part) for such lump sum has been filed no later than the second anniversary of the death of such employee (see § 237.902 (b)).

(b) Persons entitled to receive payments (1) Survivor of deceased. If the employee is survived by a person who is determined by the Board to be the employee's widow or widower and to have been living with such employee at the time of the employee's death and who will not have died before receiving payment of such lump sum, such person will, under the conditions stated in paragraph (a) of this section, become entitled to a lump-sum death payment.

If the

(2) Persons equitably entitled. employee was not survived by a person described under subparagraph (1) of this paragraph, the lump sum will be payable to any person or persons equitably entitled thereto to the extent and in the proportions that he or they shall have paid the burial expenses of the employee. If such an equitably entitled person dies before receiving payment of the lump sum, the lump-sum death payment will be payable to the estate of such equitably entitled person.

(c) Amount of payment. The lump sum to which a widow or widower is entitled under paragraph (b)(1) of this section is an amount equal to ten times the basic amount of the deceased employee. Where payment is made to an applicant because he is equitably entitled under paragraph (b) (2) of this section, the amount payable to him will be determined as follows:

(1) If no person other than such applicant is, or becomes, equitably entitled under paragraph (b) (2) of this section, the amount payable will be an amount equal to the amount of burial expenses paid by the applicant, or ten times the basic amount of the deceased, whichever is less.

(2) If two or more persons are, or become, equitably entitled under paragraph (b) (2) of this section, the amount payable to any such applicant is an amount equal to that proportion of ten times the basic amount of the deceased which the amount of burial expenses paid by such applicant bears to the total amount of burial expenses paid by all

persons equitably entitled, but in no event shall the amount paid to such applicant exceed the amount of burial expenses paid by him.

The

(d) Effect on later entitlement. lump sum is not in lieu of, and does not affect, later entitlement of survivors to insurance annuities.

[12 FR. 2028, Mar. 27, 1947; as amended by Board Order 55-89, 20 FR. 3719, May 27, 1955; Board Order 60-50, 25 F.R. 2890, Apr. 6, 1960] § 237.503 Payment when lump sum exceeds insurance annuities accrued. (a) Conditions of payment. The payment provided for in this section shall be made to one or more of the persons described in paragraph (b) of this section if: (1) A lump sum would have been payable to a widow or widower under § 237.502 except for the fact that a survivor was entitled to receive an insurance annuity for the month in which the employee died (see § 237.502(a) (2)); and

(2) Within 1 year after the employee's death there did not accrue to his survivors, by reason of his death, insurance annuities which, after all deductions required by § 237.702 were made, were equal to the lump sum referred to in subparagraph (1) of this paragraph, and

(3) An application (see Subpart H of this part) for such payment has been filed no later than the second anniversary of the death of such employee (see § 237.902 (b)).

(b) Persons entitled to receive payment. The payment provided for in this section shall be made to the widow, widower, child, or parent of the deceased employee, in that order, provided that such person is entitled to an insurance annuity on the first anniversary of the employee's death. If there is more than one such person, they shall share equally in the payment.

(c) Amount of payment. The payment to be made under this section is an amount equal to the excess of the lump sum referred to in paragraph (a) (1) of this section over the insurance annuities which accrued to survivors within 1 year after the employee's death, as such annuities may have been reduced by any deductions required by § 237.702 (see paragraph (a) (2) of this section).

entitlement of survivors to insurance annuities.

[12 F.R. 2023, Mar. 27, 1947, as amended by Board Order 60-50, 25 FR. 2890, Apr. 6, 1960]

§ 237.504 Meaning of terms.

(a) The terms "widow," "widower," "child," and "parent" as they first appear in section 5 (f) of the act (see § 237.502 (a) (2)), are used as defined in §§ 237.303, 237.304, 237.306, and 237.308, respectively.

(b) The meaning of the terms "widow," "child" (or "children"), and "parent" (or "parents"), except as they first appear in section 5 (f) of the act, and of the term "widower" as used in such section 5 (f), is determined by reference to applicable State law. An individual is such a "widow," "widower," "child," or "parent" of a deceased employee if he is the widow, widower, child, or parent of the deceased employee, or has the same status as such, under applicable State law, without regard to the definitions referred to in paragraph (a) of this section.

[12 F.R. 2023, Mar. 27, 1947, as amended by Board Order 55-89, 20 F.R. 3720, May 27, 1955]

Subpart F-Maximum and Minimum Insurance Annuity Totals

§ 237.601 Statutory provisions.

Maximum and minimum annuity totals. Whenever according to the provisions of this section as to annuities, payable for a month with respect to the death of an employee, the total of annuities is more than $36.30 and exceeds either (a) $193.60, or (b) an amount equal to two and two-thirds times such employee's basic amount, whichever of such amounts is the lesser, such total of annuities shall, after any deductions under subsection (1), be reduced to such lesser amount or to $36.30, whichever is greater. Whenever such total of annuities is less than $16.95, such total shall, prior to any deductions under subsection (1), be increased to $16.95. (Section 5(h) of the act.) In the case of an individual having a current connection with the railroad industry, *** if for any entire month * ⚫ the total of survivor annuities under this Act deriving from the same employee, is less than 110 per centum of the amount, or 110 per centum of the additional amount, which would have been payable to all persons for such month under the Social Security Act (deeming completely and partially insured Individuals to be fully and currently insured, respectively, individuals entitled to insurance annuities under subsections (a) and (d) of section 5 to have attained age sixty-five, * ** and individuals entitled to insurance annuities under subsection (c)

of section 5 on the basis of disability to be less than eighteen years of age, and disregarding any possible deductions under subsections (f) and (g) (2) of section 203 of the Social Security Act) if such employee's service as an employee after December 31, 1936, were included in the term "employment" as defined in that Act and quarters of coverage were determined in accordance with section 5(1)(4) of this Act, such annuity or annuities, shall be increased proportionately to a total of 110 per centum of such amount or 110 per centum of such additional amount. * .. (Section 3(e) of the act.)

[Board Order 60-50, 25 F.R. 2890, Apr. 6, 1960] § 237.602 Application of maximum and minimum and basis for computation.

(a) Application of maximum and miniтит. The reductions and increases provided for in this subpart apply only to insurance annuities for survivors. Lump sums under section 5 (f) of the act are not subject to reductions or increases under this subpart.

(b) Basis for computing reductions and increases. Whether there is to be a reduction or increase in any insurance annuity or annuities, and the extent of such reduction or increase, depends upon the total amount of insurance annuities for a month as calculated under section 5 of the act with respect to the insured status of a deceased employee. [12 FR. 2024, Mar. 27, 1947]

§ 237.603 Reduction.

(a) Conditions requiring reduction. Reductions are made only when there are two or more insurance annuities based upon the insured status of a deceased employee and when the total of such annuities, as calculated under Subpart D of this part:

(1) For a month after June 1956 and before June 1959 is more than $33 and exceeds either (i) $176, or (ii) an amount equal to two and two-thirds times the basic amount of the employee.

(2) For a month after May 1959 is more than $36.30 and exceeds either (1) $193.60, or (ii) an amount equal to two and two-thirds times the basic amount of the employee.

(b) Amount of reduction. If the conditions described in paragraph (a) of this section exist, each of the insurance annuities must be proportionately reduced so that the total of the insurance annuities:

(1) For a month after June 1956 and before June 1959 will be whichever is the least of the amounts stated in para

graph (a) (1) (1) and (ii) of this section. If, however, such least amount is under $33, the total is reduced only to $33.

(2) For a month after May 1959 will be whichever is the least of the amounts stated in paragraph (a) (2) (i) and (ii) of this section. If, however, such least amount is under $36.30, the total is reduced only to $36.30.

[Board Order 60-50, 25 F.R. 2891, Apr. 6, 1960]

§ 237.604 Increase.

(a) Conditions

requiring

increase.

An increase is made when the insurance annuity or total of insurance annuities calculated under Subpart D of this part on the basis of the insured status of a deceased employee is less than $15.40 for a month after June 1956 and before June 1959, and less than $16.95 for a month after May 1959.

(b) Amount of increase. If the condition described in paragraph (a) of this section exists, the insurance annuity or total of insurance annuities is increased to $15.40 for a month after June 1956 and before June 1959, and to $16.95 for a month after May 1959. [Board Order 30-50, 25 F.R. 2891, Apr. 6, 1960]

§ 237.605 Monthly application of provisions.

The total amount of insurance annuities based on the insured status of a deceased employee, as calculated under Subpart D of this part, may be different in one month than in another. Accordingly, a reduction or increase may be required in one month and not in another, or the amount of the reduction or increase may be greater or less in one month than in another. [12 F.R. 2024, Mar. 27, 1947]

§ 237.606 Relation to provisions for deductions and adjustments.

(a) Reductions under this subpart are made after making any deductions which may be required under Subpart G of this part and before making any adjustments under Part 255 of this chapter.

(b) Increases under this subpart are made before making any deductions which may be required under Subpart G of this part and before making any adjustments under Part 255 of this chapter.

[Board Order 60-50, 25 F.R. 2891, Apr. 6, 1960]

§ 237.607 Overall minimum based on Social Security Act formula.

(a) When the total amount of insurance annuities payable for an entire month after May 1959, based on the insured status of a deceased individual, is less than 110 percent of the amount or 110 percent of the additional amount of insurance benefits which would be payable for that month under the Social Security Act if the individual's service as an employee after 1936 were included with "employment" as defined in the Social Security Act, the amount of such insurance annuities shall be increased proportionately to 110 percent of such amount or 110 percent of such additional amount.

(b) For the purpose of this section: (1) Completely and partially insured individuals shall be deemed to be fully and currently insured, respectively, under the Social Security Act;

(2) An individual who has attained the age of 60 but not the age of 65 and is entitled to a widow's, widower's, or parent's insurance annuity shall be deemed to have attained the age of 65;

(3) An individual entitled to a child's insurance annuity when 18 years of age or over shall be deemed to be less than 18 years of age; and

(4) The amount of any deduction which would be applied under subsections (f) and (g) (2) of section 203 of the Social Security Act for failure to report an event which would cause a deduction under that act shall be disregarded. [Board Order 60-50, 25 F.R. 2891, Apr. 6, 1960; 25 F.R. 3396, Apr. 20, 1960]

Subpart G-Deductions

§ 237.701 Statutory provisions.

Deductions from annuities. (1) Deductions shall be made from any payments under this section to which an individual is entitled, until the total of such deductions equals such individual's annuity or annuities under this section for any month in which such individual

(1) Will have rendered compensated service within or without the United States to an employer;

(i) will have been under the age of seventy-two and for which month he is charged with any excess earnings under section 203 (f) of the Social Security Act or, having engaged in any activity outside the United States, would be charged under such section 203 (f) with any excess earnings derived from such activity if it had been an activity within the United States; and for purposes of this subdivision the Board

shall have the authority to make such determinations and such suspensions of payment of benefits in the manner and to the extent that the Secretary of Health, Education, and Welfare would be authorized to do so under section 203 (h) (3) of the Social Security Act if the individuals to whom this subdivision applies were entitled to benefits under section 202 of such Act; or

(iii) If a widow otherwise entitled to an annuity under subsection (b) will not have had in her care a child of the deceased employee entitled to receive an annuity under subsection (c).

(2) The total of deductions for all events described in paragraph (1) occurring in the same month shall be limited to the amount of such individual's annuity or annuities for that month. Such individual (or anyone in receipt of an annuity in his behalf) shall report to the Board the occurrence of any event described in paragraph (1).

(3) Deductions shall also be made from any payments under this section with respect to the death of an employee until such deductions total

(1) Any death benefit, paid with respect to the death of such employee, under sections 5 of the Retirement Acts (other than a survivor annuity pursuant to an election); and

(11) Any lump sum paid, with respect to the death of such employee, under title II of the Social Security Act.

(4) The deductions provided in this subsection shall be made in such amounts and at such time or times as the Board shall determine. Decreases or increases in the total of annuities payable for a month with respect to the death of an employee shall be equally apportioned among all annuities in such total. (Section 5(1) of the act) [Board Order 60-12, 25 F.R. 1674, Feb. 26, 1960, as amended by Board Order 63-149, 28 F.R. 9525, Aug. 30, 1963]

§ 237.702 Deductions because an individual works or a widow fails to have a child in her care.

Section 5 (i) (1) of the act provides for deductions from an individual's insurance annuity or annuities upon the occurrence of certain events, which are enumerated in paragraphs (a), (b), and (c) of this section.

(a) Employer service. Deductions are to be made from any annuity or annuities payable to an individual under this part for any month in which such individual renders compensated service (see Parts 220 and 222 of this chapter) within or without the United States to an "employer" (see Part 202 of this chapter). The amount to be deducted is equal to the amount of such individual's insurance annuity or annuities for the

month in which the compensated service was rendered.

(b) Work other than employer service-(1) When deductions imposed. Deductions are to be made from any annuity or annuities payable to an individual under this part for any month in which the individual is under age 72 and is charged, in accordance with the provisions of subparagraph (3) of this paragraph, with excess earnings determined in the following manner:

(i) Excess earnings for a taxable year beginning after December 1960 and ending on or before June 30, 1961, are those "earnings," as that term is defined in subparagraph (6) of this paragraph, which are in excess of $100 times the number of months in such year, except that one-half of the first $300 of such excess (or one-half of all such excess if it is less than $300) shall not be included. The excess earnings so determined, if not a multiple of $1, shall be reduced to the next lower multiple of $1.

(ii) Excess earnings for a taxable year ending after June 30, 1961, are those "earnings," as that term is defined in subparagraph (6) of this paragraph, which are in excess of $100 times the number of months in such year, except that one-half of the first $500 of such excess (or one-half of all such excess if it is less than $500) shall not be included. The excess earnings so determined, if not a multiple of $1, shall be reduced to the next lower multiple of $1.

The

(2) Amount of deductions. amount to be deducted shall be equal to the annuity or total of annuities payable to the individual in the month in which such individual is charged, in accordance with the provisions of subparagraph (3) of this paragraph, with excess earnings equal to such annuity or annuities. If the excess earnings to be charged are less than the annuity or annuities, the deduction with respect to such month shall be equal only to the amount of such excess earnings.

(3) Charging of excess earnings. The amount of an individual's excess earnings in a taxable year, as determined in accordance with the provisions of subparagraph (1) of this paragraph, shall be charged to the first month of the taxable year in an amount equal to the annuity payable for such month (or all of the excess earnings shall be charged to such month if such excess is less than the annuity payable for such month). The balance of the excess earnings, if any,