The residual payment is made to the employee's widow(er), children, grandchildren,
parents, brothers, sisters, or estate, in that order. A surviving divorced spouse
cannot receive the residual payment. If the employee wishes the payment to be made
differently, they can file a designation of beneficiary with RRB. Once a designation
is made, the employee must make a new one if they want to change the beneficiary.
(See RS 01602.225.)
A change in the law can create current eligibility for benefits that did not exist
before, e.g., insured status requirements are lowered or a new class of beneficiary
now exists. If the new claimant is the same person that previously received the residual
payment, an overpayment exists. If the new claimant is not the person who received
the residual, no overpayment exists. If the residual was paid in error, RRB earnings
will be reinstated for RR or SS survivor benefit purposes. The amount of the erroneous
residual lump sum paid is an overpayment subject to recovery by RRB unless the current
claimant is not the person who received the residual payment.