20 CFR § 234.58 - Computation of the separation allowance lump-sum payment.

---
identifier: "/us/cfr/t20/s234.58"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 234.58 - Computation of the separation allowance lump-sum payment."
title_number: 20
title_name: "Employees' Benefits"
section_number: "234.58"
section_name: "Computation of the separation allowance lump-sum payment."
chapter_name: "RAILROAD RETIREMENT BOARD"
subchapter_number: "B"
subchapter_name: "REGULATIONS UNDER THE RAILROAD RETIREMENT ACT"
part_number: "234"
part_name: "LUMP-SUM PAYMENTS"
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."
regulatory_source: "51 FR 3036, Jan. 23, 1986, unless otherwise noted."
cfr_part: "234"
---


# 234.58 Computation of the separation allowance lump-sum payment.

The separation allowance lump-sum payment is calculated as follows:

(a) Determine the amount of the compensation due to the receipt of separation or severance pay that could not be considered in the computation of tier II;

(b) Multiply this amount by the rate or rates of tax imposed by section 3201(b) of the Internal Revenue Code of 1954 or 1986 on the compensation (tier II tax); and

(c) The product is the amount of the separation allowance lump-sum payment.