20 CFR § 218.30 - Separation, displacement or dismissal allowance.

---
identifier: "/us/cfr/t20/s218.30"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 218.30 - Separation, displacement or dismissal allowance."
title_number: 20
title_name: "Employees' Benefits"
section_number: "218.30"
section_name: "Separation, displacement or dismissal allowance."
chapter_name: "RAILROAD RETIREMENT BOARD"
subchapter_number: "B"
subchapter_name: "REGULATIONS UNDER THE RAILROAD RETIREMENT ACT"
part_number: "218"
part_name: "ANNUITY BEGINNING AND ENDING DATES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "45 U.S.C. 231f(b)(5)."
regulatory_source: "54 FR 30725, July 24, 1989, unless otherwise noted."
cfr_part: "218"
---


# 218.30 Separation, displacement or dismissal allowance.

(a) *General.* When an employee receives a separation, displacement or dismissal allowance from a railroad employer, the annuity beginning date depends on whether the payments are a separation allowance as described in paragraph (b) of this section, or monthly compensation payments as described in paragraph (c) of this section. (Part 211 of this chapter discusses how a separation, displacement or dismissal alowance is credited as compensation.)

(b) *Separation allowance.* When an employee accepts a separation allowance, the employee gives up his or her job rights. Regardless of whether a separation allowance is paid in a lump sum or in installments, the annuity can begin as early as the day after the day the separation allowance is credited.

(c) *Monthly compensation payments.* An employee who receives monthly compensation payments keeps his or her job rights while the payments are being made. The annuity cannot begin until after the end of the period for which payments are made.