[Federal Register Volume 62, Number 249 (Tuesday, December 30, 1997)]
[Rules and Regulations]
[Page 67724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33808]
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RAILROAD RETIREMENT BOARD
20 CFR Part 295
RIN 3220-AB29
Payments Pursuant to Court Decree or Court-Approved Property
Settlement
AGENCY: Railroad Retirement Board.
ACTION: Final rule.
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SUMMARY: The Railroad Retirement Board hereby amends its regulations
under part 295 by eliminating the Medicare Part B premium as a
deduction from the amount of benefits available for division in a
divorce proceeding or property settlement related to a divorce or legal
separation.
EFFECTIVE DATE: This regulation shall be effective January 29, 1998.
ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois 60611.
FOR FURTHER INFORMATION CONTACT:
Thomas W. Sadler, Senior Attorney, Railroad Retirement Board, 844 North
Rush Street, Chicago, Illinois 60611, telephone (312) 751-4513, TTD
(312) 751-4701.
SUPPLEMENTARY INFORMATION: Part 295 describes the Board's requirements
for obtaining an enforceable order directing the Board to partition a
railroad retirement annuity incident to a divorce, settlement, or
annulment. Section 295.1(b) describes what benefits are subject to
division under this part. Section 295.5(e)(1) further defines the net
amount of benefits subject to division as excluding amounts deducted
for an employee's elected Medicare Part B premium. When section
295.5(e)(1) was initially approved in 1986, the Board was concerned
about the risk that Medicare premium deductions might not be satisfied
from the nondivisible portion of an employee's annuity in the event
that the portion would not be payable due to work deductions. In
practice, however, the agency has determined that only in rare cases is
the nondivisible portion insufficient to accommodate the Medicare Part
B deduction. The Medicare Part B premium is a personal expense elected
to be made by the employee. The Board believes that it is more
consistent with the nature of the Part B premium that it be paid
entirely by the employee rather than, in effect, partly by the employee
and partly by the divorced spouse. Accordingly, the agency is revising
part 295 to remove the Medicare Part B premium as a deduction from
divisible benefits prior to partition in an action for divorce,
settlement, or annulment.
The Board published this regulation as a proposed rule on July 31,
1997 (62 FR 40995) and invited comments by September 29, 1997. No
comments were received.
The Board, with the concurrence of the Office of Management and
Budget, has determined that this is not a significant regulatory action
under Executive Order 12866; therefore, no regulatory impact analysis
is required. There are no information collections associated with this
rule.
List of Subjects in 20 CFR Part 295
Railroad employees, Railroad retirement.
For the reasons set out in the preamble, chapter II of title 20 of
the Code of Federal Regulations is amended as follows:
PART 295--PAYMENTS PURSUANT TO COURT DECREE OR COURT-APPROVED
PROPERTY SETTLEMENT
1. The authority for part 295 continues to read as follows:
Authority: 45 U.S.C. 231f; 45 U.S.C. 231m.
Sec. 295.5 [Amended]
2. Section 295.5(e)(1) is amended by removing the comma after
``Board'' and by removing ``and the amount of any Medicare Part B
premium''.
Dated: December 16, 1997.
By authority of the Board.
For the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 97-33808 Filed 12-29-97; 8:45 am]
BILLING CODE 7905-01-M
