81 FR 89014 - Payments Pursuant to Court Decree or Court-Approved Property Settlement

RAILROAD RETIREMENT BOARD

Federal Register Volume 81, Issue 237 (December 9, 2016)

The Railroad Retirement Board (Board) proposes to amend its regulations addressing who may receive a portion of an employee annuity due to a former spouse of a railroad annuitant under a court decree of divorce or court-approved property settlement, but which was unpaid at the time of the former spouse's death. The current regulation states that the Board will follow the priority order provided for employee annuities unpaid at death in Section 234.1 of the Board's regulations. The proper section pertaining to employee annuities due but unpaid at death is located in Section 234.31 of the Board's regulations. This amendment is necessary to insert the correct section reference.

[Federal Register Volume 81, Number 237 (Friday, December 9, 2016)]
[Proposed Rules]
[Pages 89014-89015]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29496]


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RAILROAD RETIREMENT BOARD

20 CFR Part 295

RIN 3220-AB69


Payments Pursuant to Court Decree or Court-Approved Property 
Settlement

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

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SUMMARY: The Railroad Retirement Board (Board) proposes to amend its 
regulations addressing who may receive a portion of an employee annuity 
due to a former spouse of a railroad annuitant under a court decree of 
divorce or court-approved property settlement, but which was unpaid at 
the time of the former spouse's death. The current regulation states 
that the Board will follow the priority order provided for employee 
annuities unpaid at death in Section 234.1 of the Board's regulations. 
The proper section pertaining to employee annuities due but unpaid at 
death is located in Section 234.31 of the Board's regulations. This 
amendment is necessary to insert the correct section reference.

DATES: Submit comments on or before February 7, 2017.

ADDRESSES: You may submit comments, identified by 3220-AB69, by any of 
the following methods:
1. Internet--Send comments via email to [email protected]
2. Fax--(312) 751-7102.
3. Mail--Secretary to the Board, Railroad Retirement Board, 844 N. Rush 
Street, Chicago, Illinois, 60611-2092.

    Do not submit the same comments multiple times or by more than one 
method. Regardless of which method you choose, please state that your 
comments refer to RIN number 3220-AB69.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available as comments are 
made public without change, with any personal information provided. The 
Board strongly urges you not to include in your comments any personal 
information, such as Social Security numbers or medical information.

FOR FURTHER INFORMATION CONTACT: Marguerite P. Dadabo, Assistant 
General Counsel, Railroad Retirement Board, 844 North Rush Street, 
Chicago, IL 60611-2092, (312) 751-4945, TTD (312) 751-4701.

SUPPLEMENTARY INFORMATION: 

Background Information

    The Railroad Retirement Act (RRA) provides monthly annuities for 
railroad employees based on age and years of service in the railroad 
industry. Section 14(b)(2) of the RRA [45 U.S.C. 231m(b)(2)] provides 
that portions of an employee annuity calculated under sections 2(b), 
3(b), 3(f), and 3(h) of the RRA [45 U.S.C. 231a(b), 231b(b), 231c(f), 
and 231c(h)] may be characterized as community property and subject to 
distribution in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree. The current version of 
Board regulations at Title 20 of the Code of Federal Regulations, Part 
295, sections 295.1-7 implement this provision.
    The current version of section 295.5(d) of the Board's regulations 
explains that payments to a spouse or former spouse pursuant to a court 
order will not be made to the heirs, legatees, creditors, or assignees 
of a deceased spouse or former spouse. Any annuity amounts due to the 
spouse or former spouse but unpaid at the time of the spouse or former 
spouse's death will be made in accordance with the Board's regulations 
governing payments of employee annuities due but unpaid at the death of 
the employee. At the time section 295.5(d) was published in the Federal 
Register, the Board regulations governing employee annuities due but 
unpaid at death were found in section 234.1 of the Board's regulations. 
Part 234 of the Board's regulations has since been amended and the 
section governing employee annuities due but unpaid at death is now 
designated as section 234.31 of the Board's regulations.

Proposed Changes

    We propose to amend section 295.5(d) of the Board's regulations to 
provide the correct cross-reference to the section of the Board's 
regulations governing employee annuities due but unpaid at death. This 
change is not intended to be substantive.

Clarity of This Proposed Rule

    Executive Order 12866, as supplemented by Executive Order 13563, 
requires each agency to write all rules in plain language. In addition 
to your substantive comments on this proposed rule, we invite your 
comments on how to make it easier to understand.
    For example:

 Are the requirements for the rule clearly stated?
 Have we organized the material to meet your needs?
 What else could we do to make the rule easier to understand?
 Does the rule contain technical language or jargon that is not 
clear?
 Would a different format make the rule easier to understand?

When will we start to use this rule?

    We will not use this rule until we evaluate public comments and 
publish a final rule in the Federal Register. All final rules we issue 
include an effective date. We will continue to use our current rules 
until that date. If we publish a final rule, we will include a

[[Page 89015]]

summary of relevant comments we received, if any, and responses to 
them. We will also include an explanation of how we will apply the new 
rule.

Regulatory Procedures

Executive Order 12866, as Supplemented by Executive Order 13563

    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, as supplemented by Executive Order 13563. 
Therefore, no regulatory impact analysis is required.

Regulatory Flexibility Act

    The Board certifies that this proposed rule would not have a 
significant economic impact on a substantial number of small entities 
because it affects individuals only. Therefore, a regulatory 
flexibility analysis is not required under the Regulatory Flexibility 
Act, as amended.

Paperwork Reduction Act

    This Proposed Rule imposes no reporting or recordkeeping 
requirements subject to OMB clearance.

List of Subjects in 20 CFR Part 295

    Railroad retirement.

    For the reasons set out in the preamble, the Railroad Retirement 
Board proposes to amend title 20, chapter II, subchapter B, part 295 of 
the Code of Federal Regulations as follows:

PART 295--PAYMENTS PURSUANT TO COURT DECREE OR COURT-APPROVED 
SETTLEMENT

0
1. The authority citation for part 295 continues to read as follows:

    Authority:  45 U.S.C. 231f; 45 U.S.C. 231m.


Sec.  295.5  [Amended]

0
2. Amend Sec.  295.5 to revise paragraph (d) to read as follows:


Sec.  295.5   Limitations.

* * * * *
    (d) Payees. Payment of an amount awarded to a spouse or former 
spouse by a court decree or property settlement will be made only to 
the spouse or former spouse except where the Board determines that 
another person shall be recognized to act on behalf of the spouse or 
former spouse as provided in Part 266 of the chapter, relating to 
incompetence. Payment will not be made to the heirs, legatees, 
creditors or assignees of a spouse or former spouse, except that where 
an amount is payable to a spouse or former spouse pursuant to this 
part, but is unpaid at the death of that spouse or former spouse, the 
unpaid amount may be paid in accordance with Sec.  234.31 of this 
chapter, pertaining to employee annuities unpaid at death.
* * * * *

    Dated: December 6, 2016.

    By Authority of the Board.
Martha P. Rico,
Secretary to the Board.
[FR Doc. 2016-29496 Filed 12-8-16; 8:45 am]
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