98-14326. Recovery of Overpayments

[Federal Register Volume 63, Number 104 (Monday, June 1, 1998)]
[Rules and Regulations]
[Pages 29547-29548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14326]


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RAILROAD RETIREMENT BOARD

20 CFR Part 255

RIN 3220-AB34


Recovery of Overpayments

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) hereby amends its 
regulations regarding recovery of overpayments to explain what 
actuarial tables and interest rates are used to calculate an actuarial 
adjustment in an

[[Page 29548]]

individual's annuity in order to recover an overpayment of benefits. 
The regulation also adds a provision to explain when an actuarial 
adjustment in an annuity takes effect when an annuity is paid by 
electronic funds transfer (EFT).

DATES EFFECTIVE: July 1, 1998.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 North 
Rush Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT: Michael C. Litt, Bureau of Law, 
Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois 
60611, [phone], TDD [phone].

SUPPLEMENTARY INFORMATION: Section 255.8 of the Board's regulations (62 
FR 64164) provides for recovery of an overpayment by means of an 
actuarial adjustment. In accordance with this provision, an overpayment 
may be recovered by permanently reducing the annuity payable to the 
individual from whom recovery is sought. The calculation of the 
reduction is performed using actuarial tables. Formerly, the authority 
for the use of these tables is contained in a Board Order which is not 
readily available to the public. This amendment adds language 
specifying that the Board will use the tables and interest rate adopted 
in accordance with the triennial evaluation of the railroad retirement 
trust funds as required by section 15(g) of the Railroad Retirement 
Act.
    Previously, where an annuity is paid by check, an actuarial 
reduction takes effect, and the overpayment is recovered, upon 
negotiation of the first check which reflects the adjustment. The 
amendment adds language to provide that, in the case of an annuity paid 
by electronic funds transfer, the adjustment is effective when the 
first payment reflecting the actuarially adjusted rate is deposited.
    The rule was published as a proposed rule February 12, 1998 (63 FR 
7088) requesting comments on or before April 13, 1998. 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 
for purposes of 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 255.8

    Railroad employees, Railroad retirement.

    For the reasons set out in the preamble, title 20, part 255 of the 
Code of Federal Regulations is amended as follows:

PART 255--RECOVERY OF OVERPAYMENTS

    1. The authority citation for part 255 continues to read as 
follows:

    Authority: 45 U.S.C. 231f(b)(5); 45 U.S.C. 231(i).

    2. Section 255.8 is revised to read as follows:


Sec. 255.8  Recovery by adjustment in connection with subsequent 
payments.

    (a) Recovery of an overpayment may be made by permanently reducing 
the amount of any annuity payable to the individual or individuals from 
whom recovery is sought. This method of recovery is called an actuarial 
adjustment of the annuity. The Board cannot require any individual to 
take an actuarial adjustment in order to recover an overpayment nor is 
an actuarial adjustment available as a matter of right. An actuarial 
adjustment becomes effective and the debt is considered recovered when, 
in the case of an individual paid by electronic funds transfer, the 
first annuity payment reflecting the annuity rate after actuarial 
adjustment is deposited to the account of the overpaid individual, or, 
in the case of an individual paid by check, the first annuity check 
reflecting the annuity rate after actuarial adjustment is negotiated.

    Example. An annuitant agrees to recovery of a $5,000 overpayment 
by actuarial adjustment. However, the annuitant dies before 
negotiating the first annuity check reflecting the actuarially-
reduced rate. The $5,000 is not considered recovered. If the 
annuitant had negotiated the check before he died, the $5,000 would 
be considered fully recovered.

    (b) In calculating any adjustment under this section, beginning 
with the first day of January after the tables and long-term or 
ultimate interest rate go into effect under section 15(g) of the 
Railroad Retirement Act (the triennial evaluation), the Board shall use 
those tables and long-term or ultimate interest rate.

    Dated: May 21, 1998.

    By Authority of the Board,
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 98-14326 Filed 5-29-98; 8:45 am]
BILLING CODE 7905-01-P