---
kind: "section"
citation: "20 C.F.R. § 234.58"
title: "20"
number: "234.58"
heading: "Computation of the separation allowance lump-sum payment."
url: "https://uscodex.org/cfr/20/234.58"
---

# §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.**

## Notes

### Source

Source: 56 FR 1573, Jan. 16, 1991, unless otherwise noted.

### Authority

Authority: 45 U.S.C. 231f.

### Source

Source: 51 FR 3036, Jan. 23, 1986, unless otherwise noted.