The Railroad Retirement Board amends its regulations to reflect statutory amendments granting jurisdiction to the Board to pay benefits under the Railroad Retirement Act and under Title II of the Social Security Act to railroad employees and auxiliary beneficiaries who have less than ten years of railroad service, but at least five years after 1995. The amendment also adds divorced spouses to the list of auxiliary beneficiaries to whom the Board will pay benefits in accordance with controlling law. The existing regulation is no longer consistent with the statutory criteria in the Railroad Retirement Act for jurisdictional determinations and is therefore facially unlawful.

Dates

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This rule is effective September 9, 2026.

For further information contact

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Peter J. Orlowicz, Senior Counsel, Railroad Retirement Board, 844 North Rush Street, Chicago, IL 60611- 1275, (312) 751-4922.

Supplementary information

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Section 2 of the Railroad Retirement Act directs the Railroad Retirement Board to pay annuities to eligible railroad employees, spouses, divorced spouses, and survivors of a deceased railroad employee. 45 U.S.C. 231a. Section 7(b)(2) of the Railroad Retirement Act also directs the Board to provide for payment of monthly benefits under Title II of the Social Security Act for individuals who meet the minimum railroad service requirement to receive an annuity under the Railroad Retirement Act and their auxiliary beneficiaries. 45 U.S.C. 231f(b)(2). For individuals that do not meet this requirement, the Board transfers jurisdiction of their Title II benefits to the Social Security Administration for payment, and their railroad service becomes creditable under the Social Security Act pursuant to section 18 of the Railroad Retirement Act. 45 U.S.C. 231q. The Board's regulations at 20 CFR part 221 implement this statutory requirement. Section 103 of the Railroad Retirement and Survivors' Improvement Act of 2001 amended the vesting requirement for railroad employees and auxiliary beneficiaries to receive annuities under the Railroad Retirement Act. Public Law 107-90, 115 Stat. 880 (Dec. 21, 2001). Prior to this enactment, railroad employees had to accrue ten years (120 months) of railroad service creditable under the Railroad Retirement Act to qualify for an annuity under the Act for themselves, their spouse, or their survivors, and for the Board to pay Title II benefits for those individuals. Section 103 expanded annuity eligibility to include employees who had less than ten years of railroad service, but at least five years of railroad service that all accrued after December 31, 1995 (and their auxiliary beneficiaries, if other eligibility criteria were met). Although the Board implemented the statutory amendments in section 103 of the Railroad Retirement and Survivors' Improvement Act of 2001 in policy and practice to properly keep jurisdiction of Title II benefits and railroad retirement annuities for individuals with less than ten years of creditable railroad service, but at least five years after December 31, 1995, the regulations at 20 CFR part 221 were not updated to reflect these statutory amendments. Additionally, section 1122 of the Omnibus Budget Reconciliation Act of 1981 amended section 7(b)(2) of the Railroad Retirement Act to authorize the Board to maintain jurisdiction for payment of Title II benefits for divorced spouses of railroad workers who met the minimum railroad service requirement. Public Law 97-35, 95 Stat. 638 (Aug. 13, 1981); 45 U.S.C. 231f(b)(2). The regulations at 20 CFR part 221 do not properly reflect this authority. Finally, the Board is correcting a cross-reference to another part of the Board's regulations that no longer exists. As part of its review of regulations directed by Executive Order 14219, Ensuring Lawful Governance and Implementing the President's "Department of Government Efficiency" Deregulatory Initiative (Feb. 19, 2025), the Board identified this part purporting to transfer jurisdiction of benefits for divorced spouses and for individuals with less than ten years of creditable railroad service, but at least five years after December 31, 1995 to the Social Security Administration for payment as facially unlawful and in conflict with the statutory criteria in the Railroad Retirement Act for receiving such an annuity. In accordance with the Presidential memorandum of April 9, 2025, directing the repeal of unlawful regulations, the Board is revising its regulations at 20 CFR part 221 to reflect current law. Pursuant to the memorandum, notice and comment proceedings are unnecessary and contrary to the public interest because the statutory criteria of the Railroad Retirement Act controls the jurisdictional determination of which agency pays benefits to affected individuals. Therefore, no comments are being requested.

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Regulatory Analysis

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Executive Order 12866, as Supplemented by Executive Order 13563

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The Board, with 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.

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Regulatory Flexibility Act

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The Board certifies that this direct final rule would not have a significant economic impact on a substantial number of small entities because it affects only individuals.

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Paperwork Reduction Act

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This direct final rule imposes no reporting or recordkeeping requirements subject to Office of Management and Budget clearance.

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List of Subjects in 20 CFR Part 221

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Claims, Railroad retirement, Social security.

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For the reasons stated in the preamble, the Railroad Retirement Board amends 20 CFR part 221 as follows:

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PART 221--JURISDICTION DETERMINATIONS

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0 1. The authority citation for part 221 is revised to read as follows:

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Authority: 45 U.S.C. 231f(b)(1), (b)(2); 45 U.S.C. 231f(d); 45 U.S.C. 231q.

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0 2. In Sec. 221.1, revise the second sentence to read as follows:

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Sec. 221.1 Introduction.

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* * * The agency that has jurisdiction over the payment of benefits also has jurisdiction of the applicant's Medicare coverage as described in section 7(d) of the Railroad Retirement Act . * * *

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0 3. Revise Sec. 221.2 to read as follows:

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Sec. 221.2 Railroad Retirement Board jurisdiction.

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(a) Life cases. The Board has jurisdiction to pay monthly benefits to each living employee who has completed at least ten years (120 months) of creditable service under the Railroad Retirement Act (or five years (60 months) of service, all of which accrues after December 31, 1995), and to his or her eligible spouse or divorced spouse. Creditable service is described in part 220 of this chapter. (b) Death cases. The Board has jurisdiction to pay monthly benefits or lump-sum death benefits to eligible survivors of a deceased employee, when the deceased employee has at least ten years (120 months) of service that is creditable under the Railroad Retirement Act (or five years (60 months) of service, all of which accrues after December 31, 1995) and a current connection as described in part 216 of this chapter. Lump-sum death benefits are described in part 234 of this chapter. The Board also has jurisdiction to pay any residual benefits that may become payable at the death of an employee. Residual benefits are described in part 234 of this chapter. The Board retains jurisdiction to pay any residual benefit that may be payable even after jurisdiction has been transferred to the Social Security Administration as described in Sec. 221.3.