TN 12 (01-14)
RS 01602.225 Railroad Retirement Board (RRB) Residual Lump-Sum (LS) Payment for the Period of 1937 through 1974
The residual lump-sum (LS) payment represents a refund of the deceased employee's RR retirement taxes paid from 1937 through 1974. Since the period for a residual LS ended in 1974, these payments should rarely be an issue for survivor claims. For additional information on residual death payments from the RRB, see RS 01601.150 and RS 01601.155.
· A residual LS payment is immaterial when adjudicating a Social Security (SS) survivor claim on the record of a deceased number holder (NH) who is insured solely on SS earnings.
· The RRB residual payment is a benefit determined and paid by RRB.
· The survivor must submit an election to the RRB for the residual payment. RRB’s payment of the residual LS deletes RR earnings for purposes of either RRB or SSA insured status, benefit computation, or for any other purposes.
If you identify a claim with a residual lump-sum payment, the following rules apply.
If survivor insured status does not exist with either agency based on combined RR and SS earnings, RRB will pay the residual to an eligible survivor. The ICER will indicate the message, “RR NO ELECTION MADE,” on the RR data field. For more information, see SM 00349.115.
The informational/certified earnings record, (ICER), displays the gross residual amount on the RR Data line in the GRES field. For more information, see SM 00349.115.
If survivor insured status exists with either agency, based on combined earnings, but the survivor does not currently receive monthly benefits, (for example, the only potentially eligible survivor is a 45 year old widow), the survivor may elect to receive the residual LS by waiving his or her future rights to a monthly benefit from RRB. The survivor’s election to receive the residual LS also eliminates the use of RR earnings to determine SS insured status or the amount of monthly benefits. The ICER will indicate the message, “RR Election Made” on the RR data field. For more information on residual payments, see RS 01601.155.
Technicians should rarely encounter cases with an RR election issue. If you are processing a case with a residual lump sum payment, contact your regional office RRB Coordinator for additional instructions.