Policy and Systems

A lump-sum death payment is meant to help defray the costs of the employee's burial expenses. It can only be paid to a widow(er) who was living with the employee when he or she died or to the person who paid all or part of the employee's burial expenses. The lump-sum death payment cannot be paid if anyone is eligible for monthly survivor benefits in the month of the employee's death. A lump-sum death payment is not taxable for Federal income tax purposes.

There are two different types of lump-sum death payments.

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What Happens If The Employee Does Not Meet The Requirements

If the employee does not meet the requirements described in the section, Requirements The Employee Must Have Met, the RRB cannot pay you a lump-sum death payment. However, the Social Security Administration (SSA) may be able to pay you if you are the widow(er) who was living in the same household as the employee. Your application will be transferred to that agency.

A lump-sum death payment can be paid by either the RRB or SSA but not by both, even though the employee may have received payments from both agencies.

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Requirements The Employee Must Have Met

The Railroad Retirement Board (RRB) can pay a lump-sum death payment only if the employee:

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Lump-Sum Death Payment

If it appears that you may be entitled to a lump-sum death payment, please read this part of the booklet thoroughly. It will provide information which will help you understand what a lump-sum death payment is and when one can be paid.

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Lump-Sum Death Payment, Residual Lump-Sum, Annuities Unpaid at Death

Introduction

Refer to this booklet if it appears you may be entitled to one or more of the following benefits:

Lump-Sum Death Payment
Residual Lump-Sum
Annuities Unpaid At Death
Railroad Tax Refund

The sections in the booklet explain:

The different types of benefits.
The requirements that must be met before each payment can be made.

The booklet also contains information about:

Read more about Lump-Sum Death Payment, Residual Lump-Sum, Annuities Unpaid at Death

Personal Injury Settlements

You may receive benefits for any kind of injury or illness whether it occurs on or off the job; but if you are paid a settlement or collect damages as a result of the injury or illness, the amount of your benefits must be refunded to the RRB. This is true regardless of a State's "no-fault" law. The RRB will normally notify the liable party, and the person or company making the settlement or paying the damages usually reimburses the RRB for the amount due. However, if the RRB is not reimbursed in full at the time of settlement, you may have to repay benefits to the RRB.

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Benefit Reductions

Benefits are not payable to you in the full amount if you are also receiving:

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Medical Examination

In certain situations you may be required to be examined by a doctor selected by the RRB. If you fail to take the medical examination when required, you may be disqualified from receiving sickness benefits.