[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