
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-90 Section 103(i)(1)]
[Document affected by Public Law 107-90 Section 103(i)(4)]
[CITE: 45USC231e]

 
                           TITLE 45--RAILROADS
 
               CHAPTER 9--RETIREMENT OF RAILROAD EMPLOYEES
 
             SUBCHAPTER IV--RAILROAD RETIREMENT ACT OF 1974
 
Sec. 231e. Lump sum payments


(a) Eligible annuities; applications; reversion; determination of status 
        of recipient

    (1) Annuities under section 231a(a)(1) of this title and 
supplemental annuities under section 231a(b) of this title which will 
have become due an individual but will not have been paid at the time of 
such individual's death shall be payable to the person, if any, who is 
determined by the Board to be such individual's widow or widower and to 
have been living with such individual at the time of such individual's 
death and who will not have died before receiving payment of such 
annuities. If there be no such widow or widower, such annuities shall be 
payable to any person or persons, equitably entitled thereto, to the 
extent and in the proportions that he or they shall have paid the 
expenses of burial of such individual, and to the extent that he or they 
will not have been reimbursed under subsection (b) of this section for 
having paid such expenses. If there be no person or persons so entitled, 
or if the total of such annuities exceeds the amount payable under this 
subdivision to such person or persons, such total, or the remainder 
thereof, as the case may be, shall be paid to the children, 
grandchildren, parents, or brothers and sisters of the deceased 
individual in the same manner as if such annuities were a lump sum 
payable under subsection (c)(1) of this section.
    (2) Annuities under section 231a(d) of this title which will have 
become due a survivor of an employee but will not have been paid at the 
time of such survivor's death shall be payable to the person, if any, 
who is determined by the Board to be such employee's widow or widower 
and to have been living with such employee at the time of the employee's 
death and who will not have died before receiving payment of such 
annuities. If there be no such widow or widower, such annuities shall be 
payable to the children, grandchildren, parents, or brothers and sisters 
of the deceased employee in the same manner as if such unpaid annuities 
were a lump sum payable under subsection (c)(1) of this section.
    (3) Annuities under section 231a(c) of this title which will have 
become due a spouse or divorced wife of an individual but which will not 
have been paid at the time of such spouse's or divorced wife's death 
shall be payable to the individual from whose employment such annuities 
derived and who will not have died before receiving payment of such 
annuities. If there be no such individual, such annuities shall be paid 
as provided in the last two sentences of subdivision (1) of this 
subsection as if such annuities were annuities due to an individual but 
unpaid at the time of such individual's death.
    (4) Applications for accrued and unpaid annuities provided for in 
the preceding subdivisions of this subsection shall be filed prior to 
the expiration of two years after the death of the person to whom such 
annuities were originally due.
    (5) If there is no person to whom all or any part of the payments 
described in subdivision (1), (2), or (3) can be made, such payment or 
part thereof shall escheat to the credit of the Railroad Retirement 
Account.
    (6) For the purposes of this subsection and subsection (c) of this 
section, a widow or widower of an individual shall be deemed to have 
been living with the individual at the time of the individual's death if 
the applicable conditions set forth in section 216(h)(2) or (3) of the 
Social Security Act [42 U.S.C. 416(h)(2) or (3)], as in effect before 
1957, are fulfilled.
    (7) In determining for purposes of this subsection and subsections 
(c) and (d) of this section whether an applicant is the widow, widower, 
child, or parent of an employee as claimed, the rules set forth in 
section 216(h) of the Social Security Act [42 U.S.C. 416(h)] shall be 
applied. In determining for purposes of this subsection and subsections 
(c) and (d) of this section whether an applicant is the grandchild, 
brother, or sister of an employee as claimed, the Board shall apply such 
law as would be applied in determining the devolution of intestate 
personal property by the courts of the State in which such employee was 
domiciled at the time of his death, or if such employee was not so 
domiciled in any State by the courts of the District of Columbia 
Applicants who according to such law would have the same status relative 
to taking personal property as a grandchild, brother, or sister shall be 
deemed such.

(b) Payments in accordance with Railroad Retirement Act of 1937 and 
        Social Security Act

    (1) Upon the death of an individual who will have completed ten 
years of service prior to January 1, 1975, and will have had a current 
connection with the railroad industry at the time of his death, a lump-
sum payment shall be made in accordance with the provisions of section 
5(f)(1) of the Railroad Retirement Act of 1937 [45 U.S.C. 228e(f)(1)] as 
in effect on December 31, 1974, in an amount, if any, which would have 
been payable under such section on the basis of (A) the individual's 
compensation after December 31, 1936, and prior to January 1, 1975, and 
(B) the individual's wages (as defined in section 209 of the Social 
Security Act [42 U.S.C. 409]) prior to January 1, 1975. Any lump sum 
payable under this subdivision shall be in an amount computed as if the 
individual had died on January 1, 1975. No lump sum shall be payable 
under this subdivision if the employee died leaving a surviving divorced 
wife who would on proper application therefore be entitled to receive an 
annuity under section 231a(d) of this title for the month in which the 
employee's death occurred.
    (2) Upon the death of an individual who will not have completed ten 
years of service prior to January 1, 1975, but who (i) will have 
completed ten years of service at the time of his death, (ii) will have 
had a current connection with the railroad industry at the time of his 
death, and (iii) will have died leaving no widow, surviving divorced 
wife, widower, child, or parent who would on proper application therefor 
be entitled to receive an annuity under section 231a(d) of this title 
for the month in which such death occurred, a lump-sum death payment 
shall be made in accordance with the provisions of section 202(i) of the 
Social Security Act [42 U.S.C. 402(i)] in an amount equal to the amount 
which would have been payable under such section 202(i) if such 
individual's service as an employee after December 31, 1936, were 
included in the term ``employment'' as defined in that Act. If a lump 
sum would be payable to a widow or widower under this subdivision except 
for the fact that a survivor will have been entitled to receive an 
annuity for the month in which the individual will have died, but within 
one year after the individual's death there will not have accrued to 
survivors of the individual, by reason of his death, annuities which, 
after all deductions pursuant to section 231a(g) and 231a(h) of this 
title, are equal to such lump sum, a payment equal to the amount by 
which such lump sum exceeds such annuities so accrued after such 
deductions shall then nevertheless be made under this subdivision to the 
widow or widower to whom a lump sum would have been payable under this 
subdivision except for the fact that a monthly benefit under section 
231a(d) of this title was payable for the month in which the individual 
died, if such widow or widower will not have died before receiving 
payment of such lump sum.

(c) Payments in the absence of further benefits

    (1) Whenever it shall appear, with respect to the death of an 
employee, that no benefits, or no further benefits (other than benefits 
payable to a widow, widower, or parent under either this subchapter or 
the Social Security Act [42 U.S.C. 301 et seq.] upon attaining the age 
of eligibility therefor at a future date) will be payable under this 
subchapter or under the Social Security Act, a lump sum in an amount 
computed under subdivision (2) of this subsection shall be paid to such 
person or persons as the deceased employee may have designated by a 
writing filed with the Board prior to his or her death, or if there be 
no designation, to the following person (or, if more than one, in equal 
shares to the persons) whose relationship to the deceased employee will 
have been determined by the Board and who will not have died before 
receiving payment of the lump sum provided for in this subdivision--
        (i) the widow or widower of the deceased employee who was living 
    with such employee at the time of such employee's death; or
        (ii) if there be no such widow or widower, to any child or 
    children of such employee; or
        (iii) if there be no such widow, widower, or child, to any 
    grandchild or grandchildren of such employee; or
        (iv) if there be no such widow, widower, child, or grandchild, 
    to any parent or parents of such employee; or
        (v) if there be no such widow, widower, child, grandchild, or 
    parent, to any brother or sister of such employee; or
        (vi) if there be no such widow, widower, child, grandchild, 
    parent, brother, or sister, to the estate of such employee:

Provided, however, That if the employee is survived by a widow, widower, 
or parent who may upon attaining the age of eligibility be entitled to 
benefits under this subchapter or under the Social Security Act, such 
lump sum shall not be paid unless such widow, widower, or parent makes 
and files with the Board an irrevocable election, in such form as the 
Board may prescribed, to have such lump sum be paid in lieu of all 
benefits to which such widow, widower, or parent might otherwise become 
entitled under this subchapter on the basis of the deceased employee's 
compensation and years of service or under the Social Security Act on 
the basis of the deceased employee's wages from (A) employment with an 
employer as defined in section 231(a) of this title or (B) service as an 
employee representative as defined in section 231(c) of this title. Any 
election made and filed by a widow, widower, or parent pursuant to this 
subdivision shall be legally effective according to its terms. After a 
lump sum with respect to the death of an employee is paid pursuant to an 
election filed with the Board under the provisions of this subsection, 
no further benefits shall be paid (other than to a survivor in the 
circumstances described in paragraph (3)) under this subchapter or the 
Social Security Act on the basis of such employee's compensation and 
service under this subchapter, except that nothing in this subchapter or 
the Social Security Act shall operate to deprive a widow, widower, or 
parent making such election of any insurance benefit under title II of 
the Social Security Act [42 U.S.C. 401 et seq.] to which such individual 
would have been entitled if the employee had not rendered service as an 
employee under this subchapter.
    (2) The lump sum provided under subdivision (1) of this subsection 
shall be in an amount equal to (A) the sum of 4 per centum of the 
deceased employee's compensation paid after December 31, 1936, and prior 
to January 1, 1947, plus 7 per centum of such employee's compensation 
paid after December 31, 1946, and before January 1, 1959, plus 7\1/2\ 
per centum of such employee's compensation paid after December 31, 1958, 
and before January 1, 1962, plus 8 per centum of such employee's 
compensation paid after December 31, 1961, and before January 1, 1966, 
plus an amount equal to the total of all employee taxes payable by such 
employee after December 31, 1965, and before January 1, 1975, under the 
provisions of section 3201 of the Railroad Retirement Tax Act [26 U.S.C. 
3201] (excluding, for this purpose, the amount of the employee tax 
attributable to that portion of the tax rate derived from section 
3101(b) of the Internal Revenue Code of 1986 [26 U.S.C. 3101(b)]), plus 
one-half of 1 per centum of the compensation on which such taxes were 
payable, deeming the compensation attributable to creditable military 
service after June 30, 1963, and before January 1, 1975, to be taxable 
compensation, and one-half of the taxes payable by an employee 
representative under section 3211 of the Railroad Retirement Tax Act [26 
U.S.C. 3211] to be employee taxes under section 3201 of such Act, minus 
(B) the sum of all benefits paid to such employee, and to others 
deriving from such employee, during his or her life, or to others by 
reason of his or her death, under this subchapter, the Railroad 
Retirement Act of 1937 [45 U.S.C. 228a et seq.], or the Social Security 
Act [42 U.S.C. 301 et seq.] (excluding, for this purpose, payments to 
providers of services under section 231f(d) of this title or section 21 
of the Railroad Retirement Act of 1937 [45 U.S.C. 228s-2], any 
supplemental annuity payments made to the employee under section 231a(b) 
of this title or section 3(j) of the Railroad Retirement Act of 1937 [45 
U.S.C. 228c(j)], any amounts by which that portion of the annuities 
provided the employee under section 231b(a) of this title or his spouse 
or divorced wife under section 231c(a) of this title were increased by 
reason of the employee's wages and self-employment income derived from 
employment and self-employment under the Social Security Act, that 
portion of the annuities provided the employee under section 231b(h) of 
this title or his spouse under section 231c(e) of this title, and so 
much of the benefits paid to the employee and to others deriving from 
him or her under the Social Security Act during his or her lifetime as 
would have been payable under that Act if such employee had not rendered 
service as an employee as defined in section 231(b) of this title). In 
computing compensation for purposes of this subdivision there shall be 
excluded compensation in excess of $300 for any month before July 1, 
1954; compensation in excess of $350 for any month after June 30, 1954, 
and before June 1, 1959; compensation in excess of $400 for any month 
after May 31, 1959, and before November 1, 1963; compensation in excess 
of $450 for any month after October 31, 1963, and before October 1, 
1965; and compensation in excess of (i) $450 or (ii) an amount equal to 
one-twelfth of the current maximum annual taxable ``wages'' as defined 
in section 3121 of the Internal Revenue Code of 1986 [26 U.S.C. 3121], 
whichever is greater, for any month after September 30, 1965.
    (3) Notwithstanding the last sentence of paragraph (1), benefits 
shall be paid to a survivor who--
        (A) is a divorced wife; and
        (B) through administrative error received benefits otherwise 
    precluded by the making of a lump sum payment under this section to 
    a widow;

if that divorced wife makes an election to repay to the Board the lump 
sum payment. The Board may withhold up to 10 percent of each benefit 
amount paid after October 21, 1998, toward such reimbursement. The Board 
may waive such repayment to the extent the Board determines it would 
cause an unjust financial hardship for the beneficiary.

(d) Payments to recipients ineligible for certain other annuities

    (1) Every individual who will have completed ten years of service at 
the time of his retirement or death, but does not meet the 
qualifications for an annuity amount determined under the provisions of 
section 231b(h)(1) or 231b(h)(2) of this title, shall, at the time his 
annuity under section 231a(a)(1) of this title begins to accrue, be 
entitled to a lump sum in the amount provided under subdivision (2) of 
this subsection. If an individual otherwise eligible for a lump sum 
under this section dies before he becomes entitled to an annuity under 
section 231a(a)(1) of this title, or before he receives payment of such 
lump sum, such lump sum shall be payable to the person, if any, who is 
determined by the Board to be such individual's widow or widower and who 
will not have died before receiving payment of such lump sum. If there 
be no such widow or widower, such lump sum shall be payable to the 
children, grandchildren, parents, brothers and sisters, or the estate of 
the deceased individual in the same manner as if such lump sum were a 
lump sum payable under subsection (c)(1) of this section.
    (2) The lump sum provided under subdivision (1) of this subsection 
shall be in an amount equal to the sum of (A) 1.5 per centum of so much 
of such individual's combined earnings for any calendar year after 1950 
and before 1954 as is in excess of $3,600, plus (B) 2 per centum of so 
much of such individual's combined earnings for any calendar year after 
1953 and before 1957 as is in excess of $4,200, plus (C) 2.25 per centum 
of so much of such individual's combined earnings for any calendar year 
after 1956 and before 1959 as is in excess of $4,200, plus (D) 2.5 per 
centum of so much of such individual's combined earnings for the 
calendar year 1959 as is in excess of $4,800, plus (E) 3 per centum of 
so much of such individual's combined earnings for each of the calendar 
years 1960 and 1961 as is in excess of $4,800, plus (F) 3.125 per centum 
of so much of such individual's combined earnings for the calendar year 
1962 as is in excess of $4,800, plus (G) 3.625 per centum of so much of 
such individual's combined earnings for any calendar year after 1962 and 
before 1966 as is in excess of $5,400, plus (H) 4.2 per centum of so 
much of such individual's combined earnings for the calendar year 1966 
as is in excess of $6,600, plus (I) 4.4 per centum of so much of such 
individual's combined earnings for the calendar year 1967 as is in 
excess of $6,600, plus (J) 3.8 per centum of so much of such 
individual's combined earnings for the calendar year 1968 as is in 
excess of $7,800, plus (K) 4.2 per centum of so much of such 
individual's combined earnings for each of the calendar years 1969 and 
1970 as is in excess of $7,800, plus (L) 4.6 per centum of so much of 
such individual's combined earnings for the calendar year 1971 as is in 
excess of $7,800, plus (M) 4.6 per centum of so much of such 
individual's combined earnings for the calendar year 1972 as is in 
excess of $9,000, plus (N) 4.85 per centum of so much of such 
individual's combined earnings for the calendar year 1973 as is in 
excess of $10,800, plus (O) 4.95 per centum of so much of such 
individual's combined earnings for the calendar year 1974 as is in 
excess of $13,200. For purposes of this subsection, the term ``combined 
earnings'' shall include ``compensation'' as defined in section 1(h) of 
the Railroad Retirement Act of 1937 [45 U.S.C. 228a(h)], ``wages'' as 
defined in section 209 of the Social Security Act [42 U.S.C. 409], and 
``self-employment'' income as defined in section 211(b) of the Social 
Security Act [42 U.S.C. 411(b)].

(e) Additional lump sum payment in certain cases

    (1) Every individual who will have completed ten years of service at 
the time of his retirement or death, who will have received compensation 
in the nature of separation or severance pay on or after January 1, 
1985, and who would have been credited with additional months of service 
pursuant to section 231b(i)(4) of this title except for the fact that 
such individual was not in an employment relation to one or more 
employers nor an employee representative in such months, shall, at the 
time his annuity under section 231a(a)(1) of this title begins to 
accrue, be entitled to a lump sum in the amount provided under 
subdivision (2) of this subsection. If the full amount of a lump sum 
under this subsection cannot be determined at the time an individual's 
annuity under section 231a(a)(1) of this title begins to accrue, such 
lump sum shall be payable at such time thereafter as such amount can be 
determined. If an individual otherwise eligible for a lump sum under 
this section dies before he becomes entitled to an annuity under section 
231a(a)(1) of this title, or before he receives payment of such lump 
sum, such lump sum shall be payable to the person, if any, who is 
determined by the Board to be such individual's widow or widower and who 
will not have died before receiving payment of such lump sum. If there 
be no such widow or widower, such lump sum shall be payable to the 
children, grandchildren, parents, brothers and sisters, or the estate of 
the deceased individual in the same manner as if such lump sum were a 
lump sum payable under subsection (c)(1) of this section.
    (2) The lump sum provided under subdivision (l) \1\ of this 
subsection shall be in an amount equal to the product of (A) the 
compensation attributable to the additional months of service which 
would have been credited to the individual due to the receipt of 
payments in the nature of separation or severance pay pursuant to 
section 231b(i)(4) of this title if such individual had remained in an 
employment relation to one or more employers or had continued to be an 
employee representative and (B) the rate of tax, or rates of tax, 
imposed on the compensation described in clause (A) of this subdivision 
by section 3201(b) of title 26.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be subdivision ``(1)''.
---------------------------------------------------------------------------

(Aug. 29, 1935, ch. 812, Sec. 6, as restated June 24, 1937, ch. 382, pt. 
I, 50 Stat. 307, as restated Pub. L. 93-445, title I, Sec. 101, Oct. 16, 
1974, 88 Stat. 1334; amended Pub. L. 97-35, title XI, Sec. 1121, Aug. 
13, 1981, 95 Stat. 637; Pub. L. 98-76, title IV, Sec. 408, Aug. 12, 
1983, 97 Stat. 435; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 
2095; Pub. L. 100-647, title VII, Sec. 7301, Nov. 10, 1988, 102 Stat. 
3776; Pub. L. 105-277, div. A, Sec. 101(f) [title VII, Sec. 709(a)], 
Oct. 21, 1998, 112 Stat. 2681-337, 2681-391.)

                       References in Text

    The Social Security Act, referred to in subsec. (c), is act Aug. 14, 
1935, ch. 531, 49 Stat. 620, as amended, which is classified generally 
to chapter 7 (Sec. 301 et seq.) of Title 42, The Public Health and 
Welfare. Title II of the Social Security Act is classified generally to 
subchapter II (Sec. 401 et seq.) of chapter 7 of Title 42. For complete 
classification of this Act to the Code, see section 1305 of Title 42 and 
Tables.
    The Railroad Retirement Act of 1937, referred to in subsec. (c)(2), 
is act Aug. 29, 1935, ch. 812, 49 Stat. 867, as amended generally by act 
June 24, 1937, ch. 382, part I, 50 Stat. 307, which was classified 
principally to subchapter III (Sec. 228a et seq.) of this chapter. The 
Railroad Retirement Act of 1937 was amended generally and redesignated 
the Railroad Retirement Act of 1974 by Pub. L. 93-445, title I, Oct. 16, 
1974, 88 Stat. 1305. The Railroad Retirement Act of 1974 is classified 
generally to this subchapter. For complete classification of these Acts 
to the Code, see Tables.
    Sections 1, 3, 5, and 21 of the Railroad Retirement Act of 1937, 
referred to in subsecs. (b)(1), (c)(2), and (d)(2), which were 
classified to sections 228a, 228c, 228e, and 228s-2 of this title, have 
been omitted from the Code.


                               Amendments

    1998--Subsec. (c)(1). Pub. L. 105-277, Sec. 101(f) [title VII, 
Sec. 709(a)(1)], inserted ``(other than to a survivor in the 
circumstances described in paragraph (3))'' after ``no further benefits 
shall be paid'' in last sentence.
    Subsec. (c)(3). Pub. L. 105-277, Sec. 101(f) [title VII, 
Sec. 709(a)(2)], added par. (3).
    1988--Subsec. (e). Pub. L. 100-647 added subsec. (e).
    1986--Subsec. (c)(2). Pub. L. 99-514 substituted ``Internal Revenue 
Code of 1986'' for ``Internal Revenue Code of 1954'' wherever appearing.
    1983--Subsec. (b)(1). Pub. L. 98-76 inserted provision that no lump 
sum shall be payable under this subdivision if employee died leaving a 
surviving divorced wife who would on proper application therefore be 
entitled to receive an annuity under section 231a(d) of this title for 
month in which employee's death occurred.
    1981--Subsec. (a)(3). Pub L. 97-35, Sec. 1121(a), substituted 
``spouse or divorced wife of an individual but which will not have been 
paid at the time of such spouse's or divorced wife's death'' for 
``spouse of an individual but which will not have been paid at the time 
of such spouse's death''.
    Subsec. (b)(2)(iii). Pub. L. 97-35, Sec. 1121(b), substituted 
``widow, surviving divorced wife,'' for ``widow,''.
    Subsec. (c)(1). Pub. L. 97-35, Sec. 1121(c)(1), inserted provision 
that after a lump sum with respect to the death of an employee is paid 
pursuant to an election filed with the Board under the provisions of 
this subsection, no further benefits shall be paid under this subchapter 
or the Social Security Act on the basis of such employee's compensation 
and service under this subchapter, except that nothing in this 
subchapter or the Social Security Act shall operate to deprive a widow, 
widower, or parent making such election of any insurance benefit under 
title II of the Social Security Act to which such individual would have 
been entitled if the employee had not rendered service as an employee 
under this subchapter.
    Subsec. (c)(2). Pub. L. 97-35, Sec. 1121(c)(3), substituted ``spouse 
or divorced wife'' for ``spouse''.
    Pub. L. 97-35, Sec. 1121(c)(2), substituted ``any supplemental 
annuity payments made to the employee under section 231a(b) of this 
title or section 3(j) of the Railroad Retirement Act of 1937, any 
amounts'' for ``any amounts''.


                    Effective Date of 1998 Amendment

    Pub. L. 105-277, div. A, Sec. 101(f) [title VII, Sec. 709(b)], Oct. 
21, 1998, 112 Stat. 2681-337, 2681-391, provided that: ``The amendment 
made by this section [amending this section] shall apply with respect to 
any benefits paid before the date of enactment of this Act [Oct. 21, 
1998] as well as to benefits payable on or after the date of the 
enactment of this Act.''


                    Effective Date of 1981 Amendment

    Amendment by section 1121(c)(1), (2) of Pub. L. 97-35 effective Jan 
1, 1975, and amendment by other provisions of section 1121 of Pub. L. 
97-35, effective Oct. 1, 1981, and applicable only with respect to 
annuities awarded on or after Oct. 1, 1981, see section 1129 of Pub. L. 
97-35, set out as a note under section 231 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 352 of this title; title 42 
sections 402, 405.
