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and its payment brought within his own control and disposition.

(h) Allowances in lieu of vacation. Compensation shall include allowances in lieu of vacations. If an employee dies, or ceases service for the purpose of receiving an annuity, and a vacation allowance is thereafter paid, the Board may, in the interest of the employee, credit the allowance to the last day of service or allocate the compensation to a period during his life following the last day of service equivalent to the entire vacation period.

(Sec. 1, 50 Stat. 307, as amended; 45 U.S.C. 228a)

[Board Order 55-89, 20 FR 3709, May 27, 1955; 20 FR 6004, Aug. 18, 1955, as amended by Board Order 60-2, 25 FR 594, Jan. 23, 1960; Board Order 64-105, 29 FR 11916, Aug. 20, 1964]

§ 222.4 Amount of compensation attributable to each calendar month of military service creditable.

In determining the "monthly compensation" of any employee who performed military service which is creditable under Part 209 of this chapter and section 4 of the act, there shall be attributable as compensation for each such month of creditable military service the amount of $160 in addition to the compensation, if any, paid him with respect to such month: Provided, however, That the compensation so credited shall not exceed the maximum prescribed in § 222.3(a).

[Board Order 55-89, 20 FR 3710, May 27, 1955]

§ 222.5 Verification of compensation claimed.

(a) Compensation claimed shall be verified to the extent deemed necessary by the Board to determine the "monthly compensation" referred to in § 225.3 of this chapter and shall be verified from employers' pay roll or other detailed records.

(b) In any case involving verification of compensation, the Board may prescribe the extent and manner in which such compensation shall be established.

[Board Order 59-19, 24 FR 1247, Feb. 18, 1959]

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(2) If his "years of service" include only service prior to January 1, 1937, and, in the case of station employees described in paragraph (b)(2) of this section, only service prior to September 1941, his "monthly compensation for service prior to January 1, 1937," or prior to September 1941, respectively, determined as provided in paragraph (b) of this section;

(3) If his "years of service" include service subsequent to December 31, 1936, and service prior to January 1, 1937, the result obtained by (i) multiplying his "monthly compensation for service prior to January 1, 1937," determined as provided in paragraph (b) of this section, by the number of months in such portion of his "years of service" as is prior to January 1, 1937, (ii) adding to the product the total compensation earned by him in such portion of his "years of service" as is subsequent to December 31, 1936, and (iii) dividing the sum by the total number of months in his "years of service": Provided, however, That in the case of station employees described in paragraph (b)(2) of this section, if his "years of service" include service subsequent to August 31, 1941, and service prior to September 1941, the result obtained by (a) multiplying his monthly compensation for service prior to September 1941 determined as provided in paragraph (b) of this section by the number of months in such portion of his "years of service" as is prior to September 1941, (b) adding to the product the total compensation earned by him in such portion of his "years of service" as is subsequent to August 31, 1941, and (c) dividing the sum by the total number of months in his "years of service."

(b) In determining "monthly compensation," the rules set forth in this paragraph shall be applied, the Board having found, pursuant to the proviso in section 3(c) of the Railroad Retirement Act, that in any case to which paragraphs (a)(1)(ii), (iii), or (iv) of this section applies, the service included in the "years of service" in the period 1924-31 is insufficient to constitute a fair and equitable basis for determining the amount of compensation paid to the individual in each month of service before 1937, and that

the method provided in such subdivisions for determining the amount of such compensation for each such month is fair and equitable in every case to which such method is specified as applicable.

(1) For an individual other than a station employee described in paragraph (b)(2) of this section, “monthly compensation for service prior to January 1, 1937," shall be determined under the first of the following subdivisions which may be applicable:

(i)(a) If 18 or more months of proved service in the period 1924-31 are included in the individual's "years of service" and compensation records are available for at least one-half but not less than 18 of such months, the "monthly compensation for service prior to January 1, 1937," shall be the result obtained by dividing the number of months in the period 192431 which are included in the "years of service" and for which compensation records are available into the creditable compensation earned in such months.

(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 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 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 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 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 1940-August 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 carrier-employers 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 has been verified on or before June 30, 1974, 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 FR 1248, Feb. 18, 1959, as amended at 39 FR 15031, Apr. 30, 1974]

§ 225.4 "Compensation" that is included in determining "monthly compensation". The "compensation" to be included in determining the "monthly compensation" shall be determined in accordance with the provisions of Part 222 of this chapter.

[4 FR 1490, Apr. 7, 1939]

8 225.5 Minimum amount of annuity.

In the case of an individual having a current connection with the railroad industry as defined in section 1(o) of the act and $ 208.5 of this chapter, the minimum annuity payable for а 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 FR 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 a 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 1.0 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 spouse's annuity, if any, shall be increased to 110 percent of such amount,

or

the

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 Retirement 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 FR 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 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 FR 3322, Apr. 7, 1962]

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