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is illegally receiving RRB benefits; or you wish to reportor discuss any other suspected misconduct relating to theRRB, its programs or employees, please contact the Officeof Inspector General at:

Toll-Free Hotline: 1-800-772-4258U.S. Mail:RRB-OIG Hotline Officer844 North Rush Street, 4th FloorChicago, IL 60611-2092Fax: (312) 751-4342E-mail: hotline@oig.rrb.gov

Please review the RRB’s e-mail notice and Internet privacy policy at www.rrb.gov before submitting information

online.

Note: Please do not contact the Office of Inspector

General’s Hotline with questions regarding benefit eligibility requirements, delayed payments or similar issues.These types of matters should be directed to an RRBoffice.

etirement Act and the Railroad 

 Act. These programs provide 

old age and in the event of disabili

employment and sickness. The 

d also administers aspects of the 

s administrative responsibilities Act and the Internal Revenue Code. 

mission, the Railroad Retirement 

o the right people, in the right 

ner, and will take appropriate action 

rs’ trust funds. The Railroad 

at every person who comes into con

courtesy and concern, and respond 

accurately and clearly. 
have any comments or sugges

ntation of information in this

 know. You can fax us at 

us at opa@rrb.gov or write us at

ublic Affairs, U.S. Railroad

orth Rush Street, Chicago, IL

in accessible formats) should office. Complaints of alleged

RB on the basis of disability

days in writing with the

on, U. S. Railroad Retirement

Street, Chicago, Illinois 60611-

ndividual rights under this reg

to the RRB’s Director of Equal

e address.

trative responsibilities under the Social Security Act for certain benefit payments and railroad workers’ Medicare coverage. 

This booklet describes the retirement and disability 

annuities provided for employees under the Railroad Retirement Act, and the benefits available to their spouses and survivors. Medicare and unemployment-sickness insurance benefits are described in separate publications. 

The information in this booklet supersedes earlier 

editions. If you have any questions about the information in this booklet, or if you want one of the RRB’s publications on Medicare or unemployment and sickness insurance benefits, call the RRB toll-free at 1-877-772-5772. Agency field office representatives will be glad to answer your questions and explain your benefit rights. Cities with these offices are listed at the back of this booklet. 

In addition, through automated menus available 24 

hours a day, you can find the address for the field office serving your area and listen to special announcements about the agency’s benefit programs. You can also request a replacement Medicare card, a letter showing your current monthly benefit rate, a replacement tax statement for the 
ALABAMA

BirminghamARIZONAMesaARKANSASLittle RockCALIFORNIACovinaOaklandRosevilleCOLORADODenverFLORIDAJacksonvilleTampaGEORGIAAtlantaILLINOISChicagoDecaturJolietINDIANAIndianapolis

IOWADes MoinesKANSASWichitaKENTUCKYLouisvilleLOUISIANANew OrleansMARYLANDBaltimoreMASSACHUSETTSBostonMICHIGANDetroitMINNESOTADuluthSt. PaulMISSOURIKansas CitySt. LouisMONTANABillings

NEBRASKAOmahaNEW JERSEYNewarkNEW MEXICOAlbuquerqueNEW YORKAlbanyBuffaloNew YorkWestburyNORTH CAROLINACharlotteNORTH DAKOTAFargoOHIOCincinnatiClevelandOREGONPortland

PENNSYLVANIAAltoonaHarrisburgPhiladelphiaPittsburghScrantonTENNESSEENashvilleTEXASFort WorthHoustonUTAHSalt Lake CityVIRGINIARichmondRoanokeWASHINGTONBellevueSpokaneWEST VIRGINIAHuntingtonWISCONSINMilwaukee

59

Insurance Act account statement, 

nd compensation history. In 

B’s publications are available for 

, as is information about benefit 

pics of interest. 

ed for the purpose of general 

tations, exceptions, and special 
nuity that would be payable under

ation, the provision did not apply.

me age reductions that apply to

o tier II amounts.

fies for a railroad retirement

her the widow(er) nor the

y railroad service before 1975,

le to the widow(er) is reduced by

dow(er)’s own employee annuity.

15 percent of the deceased

 and each surviving parent

minimum total tier II amount

ercent of the employee’s tier II

m, 130 percent.

ot provided for a surviving

rried widow(er). However, parti

ended to surviving former spous

eements. A tier II benefit is not

ts if other family members may

arent has remarried.

58

Employees with Public, Non-profit 

Cost-of-living Increases in Employee and Spouse

or Foreign Pensions . . . . . . . . . . . . . . . . . . . . . . 11

Workers’ Compensation . . . . . . . . . . . . . . . . . . . . 12

Spouses with Dual Benefits . . . . . . . . . . . . . . . . . . . . . . . . 12

Social Security Benefits . . . . . . . . . . . . . . . . . . . . 12Public Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Employee Annuity . . . . . . . . . . . . . . . . . . . . . . . . 13

Minimum Guaranty for Employee and Spouse Annuities . 13

Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Working After Retirement . . . . . . . . . . . . . . . . . . . . . . . . . 15

Disability Work Restrictions . . . . . . . . . . . . . . . . . 18

When Annuities Stop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18SURVIVOR BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . 20Types of Survivor Benefits . . . . . . . . . . . . . . . . . . . . . . . . 20Survivor Annuity Estimates . . . . . . . . . . . . . . . . . . . . . . . . 23Survivor Annuity Tiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Survivors with Dual Benefits . . . . . . . . . . . . . . . . . . . . . . . 24

Social Security Benefits . . . . . . . . . . . . . . . . . . . . 24Public Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Employee Annuity . . . . . . . . . . . . . . . . . . . . . . . . 25

Cost-of-living Increases in Survivor Annuities . . . . . . . . . 26Work and Earnings Limitations . . . . . . . . . . . . . . . . . . . . . 26When Survivor Payments Stop . . . . . . . . . . . . . . . . . . . . . 27Lump-sum Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . 29

Residual Lump-sum Payment . . . . . . . . . . . . . . . . 30
own employee annuity.

The tier I amount may also be reduced by certain

Federal, State or local government pensions which arebased on a widow(er)’s own earnings. For widow(er)ssubject to the government pension reduction, the tier Ireduction is equal to 2/3 of the public pension.Tier IIWidow(er)s

December 2001 legislation established an “initial

minimum amount” which yields, in effect, a widow(er)’stier II benefit equal to the tier II benefit the employeewould have received at the time of the award of thewidow(er)’s annuity, minus any applicable age reduction. It does this by providing an additional amount, initially setat 50 percent of the employee’s tier II, to the 100 percenttier I and 50 percent tier II benefits provided under priorlaw.

This additional amount is offset each year by the dollar amount of any cost-of-living increases payable in both

the tier I and tier II benefits provided under prior law.Consequently, such a widow(er)’s net benefit payment will

57

ance Payments . . . . . . . . . . . . 40

 . . . . . . . . . . . . . . . . . . . . . . . . 40

ds . . . . . . . . . . . . . . . . . . . . . . 41

 . . . . . . . . . . . . . . . . . . . . . . . . 42

 . . . . . . . . . . . . . . . . . . . . . . . . 43

T ANNUITY

TS . . . . . . . . . . . . . . . . . . . . . 44

ity . . . . . . . . . . . . . . . . . . . . . . 44

 . . . . . . . . . . . . . . . . . . . . . . . . 44 . . . . . . . . . . . . . . . . . . . . . . . . 49

Dual Benefit Payment . . . . . . 50

ity Formula . . . . . . . . . . . . . . 50

 . . . . . . . . . . . . . . . . . . . . . . . . 51

 . . . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . 54

 . . . . . . . . . . . . . . . . . . . . . . . . 54

 . . . . . . . . . . . . . . . . . . . . . . . . 55

 . . . . . . . . . . . . . . . . . . . . . . . . 55 . . . . . . . . . . . . . . . . . . . . . . . . 57

 . . . . . . . . . . . . . . . . . . . . . . . . 59
er)

s date of birth. For a surviv

married widow(er), the maximum

ent. For a disabled widow(er),

ed spouse or disabled remarried

reduction is 28.5 percent, even if

50.

viving divorced spouse whose eli

g for a child of the employee

 full tier I amount. Benefits to a

e end when the child is 16. An

s 75 percent of the full tier I

t the family can receive is subject

pplicable if there are three or

t counting aged or disabled sur

entitled to survivor annuities).

 can receive 82.5 percent of the

oth parents are eligible, the total

han 150 percent of the full tier I

reviously described is reduced by

security benefit or by the tier I

56

cases, military service may be counted as railroad service. 

Credit for a month of railroad service is given for 

every month in which an employee had some compensated service for an employer covered by the Railroad Retirement Act, even if only one day’s service is performed in the month. (However, local lodge compensation 

earned after 1974 is disregarded for any calendar month in which it is less than $25.) Under certain circumstances, additional months of service may be deemed. 

Covered employers include railroads engaged in 

interstate commerce and some of their subsidiaries, railroad associations and national railway labor organizations. 

Railroad retirement benefits are based on months of 

service and earnings credits. Earnings are creditable up to certain annual maximums on the amount of compensation subject to railroad retirement taxes. 

AGE AND SERVICE, DISABILITY AND

SUPPLEMENTAL ANNUITIES

An AGE AND SERVICE ANNUITY can be paid to: 

¡ Employees with 30 or more years of creditable 

service. They are eligible for regular annuities based on 

1 
Tier I

The survivor tier I amount is based on the deceased

employee’s combined railroad retirement and social security credits, and is computed using social security formulas.In general, the survivor tier I amount is equal to theamount of survivor benefits that would have been payableunder social security.

The gross survivor tier I amount (before reductions

for early retirement, or other benefits) is generally equivalent to the unreduced tier I retirement benefit the deceasedemployee had, or would have, received.

For surviving aged or disabled widow(er)s, remarried

widow(er)s and surviving divorced spouses whose annuities begin a year or more after the employee’s death, the“average indexed monthly earnings,” upon which the tier Ibenefit is based, may be reindexed using a later year if itwould result in a higher benefit, provided the employeedied before age 62. The reindexing takes into accountchanges in national earnings levels which occur after theemployee’s death but before the survivor becomes eligiblefor benefits. This provides a benefit consistent with earn

55

ges from age 65 for those born 

 those born in 1960 or later, the 

rity. Reduced annuities are still 

maximum reduction will be 

percent by the year 2022. The 

ty (as defined on page 10) is not 

nt if the employee had any cred

ore August 12, 1983. (See pages 

nation of age reductions.) 

n age cannot be paid until the 

mployment, files an application 

 return to work for a railroad 

an be paid for: 

t any age, if an employee is per

regular work and has at least 10 

ditable railroad service. Employ

9 months) of creditable railroad 

were performed after 1995, may 

defined on page 8) before retire

otal disability if they also meet 

nings requirements. An age 

uld be payable at age 62. 

2 
p

g 

unt after the 25 percent reduction

 dual benefit entitlement.

r, age reductions are gradually

e reduction for spouses of

ess than 30 years of service is

 36 months the spouse is under

her or his annuity begins and

h month (if any) over 36.

ployee had any creditable rail

mber 1983, the employee and

tier II purposes remains age 65.

plied to spouse annuities based

 a child.

L ANNUITIES

e and spouse are railroad employ

me railroad service before 1975,

s reduced by the amount of the

o which the spouse is entitled and

stored in the spouse tier II

I amount cannot be reduced

54

any disability annuity payments can begin. 

An employee can be in compensated service while 

filing a disability annuity application as long as the compensated service is not active service and terminates within 

90 days from the date of filing. However, in order for a supplemental annuity to be paid by the RRB, or for an eligible spouse to begin receiving annuity payments, a disabled annuitant under full retirement age must relinquish employment rights. 

A SUPPLEMENTAL ANNUITY can be paid at: 

¡ Age 60, if the employee has at least 30 years of 

creditable railroad service. 

¡ Age 65, if the employee has 25-29 years of 

railroad service. 

In addition to the service requirements, a “current 

connection” with the railroad industry is required for all supplemental annuities. An employee must also be receiving a railroad retirement age and service or disability annuity before a supplemental annuity can be paid. Eligibility is further limited to employees who had some rail service before October 1981. 

3 
later, the spouse can receive an unreduced annuity as earlyas age 60. If the spouse is entitled based on having aminor or disabled child in care, there is no age reduction.

Reductions for other benefits

After any applicable age reduction required for the

spouse’s early retirement, the spouse tier I amount isreduced by the amount of any social security benefit towhich the spouse is entitled.

The tier I amount may also be reduced for certain

Federal, State or local government pension paymentsbased on the spouse’s own earnings. For spouses subjectto the public pension reduction, the tier I reduction is equalto 2/3 of the public pension.

The spouse tier I amount may also be reduced if the

employee under age 65 is receiving a disability annuityand a workers’ compensation or public disability benefit.

While these offsets can reduce or even completely

wipe out the tier I benefit otherwise payable to a spouse,they do not affect the tier II benefit potentially payable tothat spouse.

53

q

p

p

 

s not qualify on this basis, but has 

arlier 30-month period, he or she 

 connection requirement. This 

es if the employee did not have 

outside the railroad industry after 

nth period which included 12 

e and before the month the annu

eath. Full or part-time work for a 

he interval between the end of the 

uding 12 months of railroad serv

e of an employee’s annuity, or the 

can break a current connection. 

an unincorporated business will 

ction; however, self-employment 

ction if the business is incorpo

 U.S. Government agencies--

tion, National Transportation 

nsportation Board, National 

ortation Security Administration, 

rrent connection. State employ4 
ges 60 or 61 with 30 or more

lroad retirement annuities begin

The spouses of these employees

nnuities at age 60.

uired for spouses of employees

who attained 60/30 eligibility after

uities began before January 2002

r I portion of the spouse annuity.

60/30 eligibility before July 1984,

years of service or begins receiv

or 61 after 2001 with 30 years of

portion is not subject to these

nnuity is subject to 60/30 age

such an employee may receive a

ess the spouse is already of full

ouse cases, the tier I benefit is

yee’s reduced tier I on the

ning date and is also frozen until

hout which both the employee

hen it is recomputed based on 1/2

52

job in the railroad industry, and did not thereafter decline an offer of employment in the same class or craft in the railroad industry, regardless of the distance to the new position. 

A termination of railroad service is considered voluntary unless there was no choice available to the individual 

to remain in service. Generally, where an employee has no option to remain in the service of his or her railroad employer, the termination of the employment is considered involuntary, regardless of whether the employee does or does not receive a separation allowance. However, each case is decided by the RRB on an individual basis. This exception to the normal current connection requirements became effective October 1, 1981, but only for employees still living on that date who left the rail industry on or after October 1, 1975, or who were on leave of absence, on furlough, or absent due to injury on October 1, 1975. 

Once a current connection is established at the time 

the railroad retirement annuity begins, an employee never loses it no matter what kind of work is performed thereafter. 

5 
by a railroad labor organization.

SPOUSE ANNUITY

The spouse annuity formula is based on certain percentages of the employee’s tier I and tier II amounts.

Tier I

The tier I portion of a spouse annuity, before any

applicable reductions, is 50 percent of the railroad employee’s unreduced tier I amount.

Spouse age reductions

Age reductions required for those spouses (between

age 62 and full retirement age) of employees retiring withless than 30 years of service are applied separately to eachannuity component. Full retirement age for a spouse isgradually rising, just as for an employee. Actuariallyreduced benefits continue to be available but at greaterreductions. The tier I reduction is 1/144 for each of thefirst 36 months the spouse is under full retirement agewhen her or his annuity begins and will decrease to 1/240for each month (if any) over 36. This will result in a gradual increase in the reduction at age 62 from 25 percent to

51

61 before 2002. If the employee 

annuity, has attained age 60 and 

e spouse can receive an unre

l month she or he is age 60, 

employee annuity began before 

he spouse’s annuity beginning 

yee with less than 30 years of 

loyee’s spouse is also eligible for 

onth the spouse is age 62. Early 

applied to the spouse annuity if 

 her or his full retirement age. 

pouse is gradually rising to age 

e, depending on the year of birth. 

payable at age 62, but the maxi

 percent rather than 25 percent 

r II portion of a spouse annuity 

 not reduced beyond 25 percent reditable railroad service before 

mployee receiving an age and 

use of a disability annuitant who 

n age and service annuity) is 

6 
 before 1975.

efit is increased by the cumula

age increases applicable to tier I

ween January 1, 1975, and the

ary 1, 1982, whichever was earli

t is then frozen; that is, no further

e applied thereafter. The amount

 due is added to the tier portions

gular annuity.

tion applied to the tier I compo

ed dual benefit component of an

ees retiring before full retirement

s of service.

ormula

pplemental annuity awarded after

$4 for each year of service over

43. A fraction of $4 is added for

vice.

e also receives a private pension

 by a railroad, or a distribution

ch the employer contributes

50

p

p

y 

p

y

received a spouse annuity. However, entitlement to a surviving divorced spouse, surviving divorced young mother 

(father), or remarried widow(er) annuity does not waive the 1-year marriage requirement. 

An annuity may also be payable to the divorced wife 

or husband of a retired employee if their marriage lasted for at least 10 consecutive years, both have attained age 62 for a full month and the divorced spouse is not currently married. The amount of a divorced spouse’s annuity is, in effect, equal to what social security would pay in the same situation and therefore less than the amount of the spouse annuity otherwise payable (tier I only). A divorced spouse can receive an annuity even if the employee has not retired, provided they have been divorced for a period of not less than 2 years, the employee and former spouse are at least age 62, and the employee is fully insured under the Social Security Act using combined railroad and social security earnings. A court-ordered partition payment may be paid even if the employee is not entitled to an annuity provided that the employee has 10 years of railroad service or 5 years after 1995 and both the employee and former spouse are 62. 

7 
benefit amount due.

Age reductions

Age reductions required for those employees retiring

between age 62 and full retirement age with less than 30 years of service are also applied to the tier II component of an annuity. The reduction is 1/180 for each of thefirst 36 months the employee is under full retirement agewhen his or her annuity begins and 1/240 for each additional month.

Full retirement age is gradually rising as mentioned

earlier. However, if an employee had any creditable railroad service before August 12, 1983, the retirement age fortier II purposes will remain 65.

Employees with 5-9 years of creditable service, if at

least 5 years were after 1995, are eligible for tier II benefits the first full month they are age 62. Their tier II benefits are subject to the same age reductions that apply toemployees with 10-29 years of service. If eligible on thebasis of total disability, a tier II benefit is not payable untilage 62 and that amount is reduced for early retirement.

49

want estimates can also contact 

pproximate figures. Each RRB 

timates for employees with at 

service, or 5 years after 1995. It 

a precise amount if the employee 

ext page show (1) fiscal year 2011 

 employees retiring before full 

cal year 2011 annuity awards to 

e of less than 30 years of service. 

IES AND DUAL BENEFITS 

irement annuities are calculated 

The annuity formula compo

pouses are described in the sec

ck of this booklet. 

d on railroad retirement credits 

edits an employee has acquired. 

er is calculated using social secu

lroad retirement age and service 

(continued on page 10) 

8 
 are under age 65 and receiving a

 I amount is, under certain cir

eceipt of workers’ compensation

ts.

age reduction, the tier I amount is

any social security benefits also

unt below zero.

n-profit or foreign pensions

 attain eligibility for both tier I

rnment pension or other payments

ay be required for receipt of a

art or in whole, on employment

tirement or social security after

o payments from a non-profit

ain foreign governments or

mployee’s tier I benefit will not

1/2 of his or her pension from

However, if the employee is

g a disability annuity, the tier I

y an added amount if the pension

ment is a public disability benefit.

48

nection, a supplemental annuity may be payable. The supplemental annuity amount, for awards after 1974, is $23 plus $4 for each year of service over 25 years, up to a maximum of $43 for employees with 30 or more years of service. Figures in the tables on this page are monthly averages and include supplemental annuity amounts. 

Table 2.--Fiscal Year 2011 Annuity Awards 

Based on Service Averaging Less than 30 Years 

Average Average years 

award of service 

Employee full retirement age or over $2,224 22.0 Employee full retirement age or over and spouse $3,099 23.7 Employee under full retirement age with less than 30 years of service $1,491 16.4 Employee under full retirement age with less than 30 years of service and spouse $2,043 16.7 Employee retiring because of disability $2,526 24.6 

9 
employee is already of full retirement age on the beginning

date of his or her railroad retirement annuity.

Age reductions are required in the tier I annuity

amounts of 30-year employees who retired at ages 60-61before 2002 and attained age 60 or completed 30 years ofservice after June 1984. The age reductions are appliedonly to the tier I annuity portion. If an employee affectedby this provision was born before 1938 and attained 60/30eligibility after December 1985, tier I is permanentlyreduced by approximately 20 percent. For those born after1937 who retired before 2002, the reduction graduallyincreased as described earlier. In both cases, the tier I

47

1940 65 and 6 months 22.50%1941 65 and 8 months 23.333%1942 65 and 10 months 24.167%1943 through 1954 66 25.00%1955 66 and 2 months 25.833%1956 66 and 4 months 26.667%1957 66 and 6 months 27.50%1958 66 and 8 months 28.333%1959 66 and 10 months 29.167%1960 or later 67 30.00%

d Retirement and Social 

red or disabled railroad retire

arded social security benefits, the 

ation determines the amount due, 

benefit payment is issued by the 

 an employee annuity is based on 

ad retirement and social security 

al security formulas, and approx

y would pay if railroad work 

em. It is reduced by the amount 

ty benefit paid on the basis of the 

mployment in order to prevent a 

sed on social security covered 

nt is also reduced in the event a 

payable to the employee on the 

earnings. This reduction follows 

ty law which, in effect, limit pay

two or more benefits payable to 

 An annuitant is required to 

nefits are received directly from 

10 
ar over two separate 6

year peri

affect how reduced benefits are

ment. The increase in full retire

age 66 affects those people who

38 through 1942. The full retire

ge 66 for people born in the years

increase in full retirement age

ects those who were born in the

 For people who were born in

ement age will be age 67.

ontinue to be available but at

arly-retirement reduction factor

for each of the first 36 months of

dless of the age of initial entitle

40 for each month (if any) over

This will result in a gradual

at age 62 to 30 percent for an

 retirement age is in effect.

less than 10 years of railroad

tled to an age-reduced social

eduction in his or her tier I will

tion applicable on the beginning

cial security benefit, even if the

46

begin to receive a social security benefit if he or she were to file for such a benefit. 

Employees who do not qualify for a vested dual benefit may be eligible for a refund of any excess social security taxes they paid (see page 39). 

Limitations on vested dual benefits 

Vested dual benefit payments are funded by annual 

appropriations from general U.S. Treasury revenues. These appropriations account for less than one percent of total financing sources for the railroad retirement system. 

Payment of vested dual benefits is dependent on the 

time and amount of such appropriations. If the appropriation in a fiscal year is for less than the estimated total vested dual benefit payments, individual payments must be reduced. 

Employees with Public, Non-profit or Foreign Pensions 

For employees first eligible for a railroad retirement 

annuity and a Federal, State or local government pension 

after 1985, there may be a reduction in the tier I amount for receipt of a public pension based, in part or in whole, 

11 
status

 under Social Security Act rules (usually 40 quarters

of coverage), counting both railroad retirement and socialsecurity covered earnings.

Delayed retirement credits

Tier I benefits are increased for each month an

employee delays retirement past full retirement age, upuntil age 70. For those who attain full retirement age onJanuary 1, 2007, or later with a date of birth of January 2,1941, through January 1, 1943, the delayed retirementcredit is 5/8 of 1 percent per month. For those bornJanuary 2, 1943, or later, the delayed retirement credit is2/3 of 1 percent per month (8 percent per year). Delayedretirement credits are not given to an employee with lessthan 10 years of railroad service, even if the employee isover full retirement age when retiring from his or her railroad job, if the employee is also entitled to an age-reducedsocial security benefit and the beginning date of that socialsecurity benefit precedes the beginning date of his or herrailroad retirement annuity.

Age reductions

For employees retiring between age 62 and full

retirement age with less than 30 years of service, age

45

 

ceiving a disability annuity, the 

certain circumstances, be reduced 

mpensation or public disability 

mes entitled to any pensions or 

ve, the RRB must be notified 

TH DUAL BENEFITS 

 

 a spouse annuity is reduced for 

ment, regardless of whether the 

based on the spouse’s own earn

ngs or the earnings of another 

llows principles of social security 

 payment to the higher of any 

able to an individual at one time. 

12 
ETIREMENT ANNUITY

gular annuity is the total of por

 separately under different for

us any vested dual benefit pay

ulated in generally the same way

t. Any social security credits of

d with his or her railroad retire

mputation purposes.

 an employee’s creditable earn

nto account the changes in wage

etime. This procedure, called

able earnings from past years to

age levels just prior to the

ligibility. The adjusted earnings

rage indexed monthly earnings,”

o determine the gross tier I

ble in 2012, the gross tier I is

44

the Department of Veterans Affairs will not cause a reduction. Pensions paid by a foreign government or interstate instrumentality will also not cause a reduction. For spouses subject to the public pension reduction, the tier I reduction is equal to 2/3 of the amount of the public pension. 

Employee Annuity 

If both the husband and wife are qualified railroad 

employees and either had some railroad service before 1975, both can receive separate railroad retirement employee and spouse annuities, without a full dual benefit reduction. 

If both the husband and wife started railroad employment after 1974, the amount of any spouse or divorced 

spouse annuity is reduced by the amount of the employee annuity to which the spouse is also entitled. 

MINIMUM GUARANTY FOR EMPLOYEE 

AND SPOUSE ANNUITIES 

Under a special minimum guaranty provision, railroad families will not receive less in monthly benefits than 

they would have if railroad earnings were covered by social security rather than railroad retirement laws. This 

13 
able sickness payments. It also includes cumulativeamounts of railroad retirement payroll taxes paid by theemployee over and above social security equivalent payrolltaxes and creditable military service if previously reported.

The BA-6 form should be carefully reviewed for

accuracy. Employees can also view their individualrecords via the RRB’s website. This feature, “ViewService & Compensation History,” is available to employees by visiting the RRB’s website at www.rrb.gov, selecting “Beneficiaries & RR Employees,” and clicking on“Benefit Online Services.”

An employee who disagrees with information on the

BA-6 form should write to the RRB as soon as possible, asthe law limits to 4 years the period during which corrections can be made. All letters concerning BA-6 formsmust include the employee’s social security number and beaddressed to:

Protest Unit - CES

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, Illinois 60611-2092

43

r social security, the employee

s 

ed to reflect what social security 

ess the annuity is already more 

NCREASES IN EMPLOYEE 

ETIREMENT BENEFITS

e tier I portions of both employee 

generally increased for higher liv

, and by the same percentage, as 

These increases, effective 

 in the January payment, are 

onsumer Price Index from the 

ar a cost-of-living adjustment 

orresponding period of the current 

dex increases by 5 percent, for 

 increases by 5 percent. Under 

 increase can be based on aver

es rather than price increases. 

ceiving both railroad retirement 

ts, the increased tier I portion is 

social security benefit. 

14 
al emergency periods that affect

9, to June 14, 1948.

50, to September 14, 1978.

o date as yet undetermined.

egan during a war or national

tive duty service the employee

n beyond the end of the war or

ditable, except that voluntary

 September 14, 1978, is not cred

who voluntarily served in the

ne 15, 1948, and December 15,

declared national state of emer

ad retirement credit for their mil

rmed railroad service in the year

efore they entered military serv

o rail service in the year their mil

he following year and had no

mployment.

42

Neither a regular annuity, a supplemental annuity, 

nor a spouse annuity is payable for any month in which a retired employee, regardless of age, works for an employer covered under the Railroad Retirement Act, including labor organizations. However, service for less than $25 a month to a local lodge will not prevent payment of the annuity for that month. 

Retired employees and spouses who work for their 

last pre-retirement nonrailroad employer are subject to an earnings deduction. Such employment will reduce tier II benefits and supplemental annuity payments, which are not otherwise subject to earnings deductions, by $1 for each $2 of earnings received, subject to a maximum reduction of 50 percent. These reductions continue after full retirement age. Work that begins on the same day as the annuity beginning date is not last pre-retirement nonrailroad employment. 

Retired employees and spouses who have not yet 

attained full social security retirement age, which ranges from age 65 for those born before 1938 to age 67 for those born in 1960 or later, may also be subject to additional earnings deductions for any earnings, in or outside the rail industry, that exceed certain exempt amounts. The tier I 

15 
tion is recorded under the employee

s social security

account number used by the employer to report service andcompensation to the RRB.

Additional service months may be deemed in some

cases where an employee does not actually work in everymonth of the year. For additional service months to bedeemed, the employee’s compensation for the year, up tothe tier II maximum, must exceed an amount equal to 1/12of the tier II maximum multiplied by the number of servicemonths actually worked. The excess amount is then divided by 1/12 of the tier II maximum; the result, rounded upto a whole number, equals the maximum number ofmonths that may be deemed as service months for thatyear. The employee must be in an employment relation(on an approved leave of absence) with a covered railroademployer, or be an employee representative, during adeemed service month. An employee may never be credited with more than 12 service months in any calendar year.

Except for benefits paid for on-the-job injuries, sickness benefits are subject to tier I railroad retirement taxes

if paid within 6 months after the month in which theemployee last worked. They are credited as compensationfor tier I benefits, but are not credited as service months.

41

which an employee subject to 

 is both entitled to an annuity and 

full annuity can be paid for those 

oyee had low earnings or did not 

oyment, no matter what total 

e. A non-work month is one in 

er earns over 1/12 of the annual 

ubstantial self-employment. Non

med in only one calendar year, 

y be the first year of entitlement. 

 in which an individual attains 

ment age, deductions of $1 are 

dual benefits for every $3 earned 

mount ($38,880 in 2012), but only 

n the months prior to the month 

ned. These tier I and vested dual 

fective with the month full retire

or services rendered, plus any net 

yment, are considered when 

arnings. Interest, dividends, cer16 
ovision applies to separation and

 after 1984.

INCOME TAX ON 

TIREMENT BENEFITS

 a railroad retirement annuity that

 social security benefit is treated

t for Federal income tax purpos

ount of other income received in

 of these benefit payments may

me tax.

eding social security benefits,

s payable between ages 60 and

al disability annuities, plus the

retirement annuities, vested dual

l annuities paid by the RRB are

ns for Federal income tax pur

rement Act specifically exempts

from State and local income tax.

ocial Security Administration

ements to annuitants each

f a request not to withhold, taxes

40

changes significantly. 

Retired employees and spouses who return to work 

for a railroad or for their last pre-retirement nonrailroad employer must notify the RRB, regardless of earnings or age. 

A spouse benefit is subject to reductions not only for 

the spouse’s earnings, but also for the earnings of the employee, regardless of whether the earnings are from service for the last pre-retirement nonrailroad employer or other post-retirement employment. 

A spouse annuity is not payable for any month in 

which the employee’s annuity is not payable, or for any month in which the spouse, regardless of age, works for an employer covered under the Railroad Retirement Act. (A divorced spouse can receive an annuity even if the employee has not retired, provided they have been divorced for a 

period of not less than 2 years, the employee and former spouse are at least age 62, and the employee is fully insured under the Social Security Act using combined railroad and social security earnings. A court-ordered partition payment may be paid even if the employee is not entitled to an annuity provided that the employee has 10 years of 

17 
I or tier II railroad retirement taxes withheld. Employeeswho had tier I taxes withheld from their supplemental sickness benefits may also be eligible for a tax credit of anyexcess tier I tax. Such tax credits may be claimed on anemployee’s Federal income tax return.

Employees who worked for two or more railroads, or

had both railroad retirement and social security taxes withheld from their earnings, should see Internal RevenueService publication 505, Tax Withholding and EstimatedTax, for information on how to figure any excess railroadretirement or social security tax withheld.

Dual Railroad Retirement-Social Security Taxes Paid,1951-74

An employee with 10 or more years of railroad service who is not entitled to a vested dual benefit payment

may be entitled to a refund of excess social security taxesif his or her combined taxable earnings from the railroadretirement and social security systems in any year in theperiod 1951-1974 exceeded a maximum annual amountcreditable under the Railroad Retirement Act. Eligibleemployees will receive their refunds from the RRB atretirement without applying for them. In the event an

39

ant earns more than $790 in any 

mployment, exclusive of disability

Withheld payments will be restored if 

ess than $9,875 after deduction of 

penses. Failure to report such earn

ficant penalty charge. 

rk restrictions cease upon a disabled 

inment of full retirement age. This 

arlier than full retirement age even if 

s of service. Earnings deductions 

 working for their last pre-retirement 

yee annuitant works before full retire

aise a question about the possibility 

ery from disability, regardless of the 

sequently, any earnings must be 

d overpayments, which are recover

 also include penalties. 

ANNUITIES STOP 

uity stops upon the annuitant’s death, 

able for any day in the month of 

18 
 percent in 2011, and subsequent

emporary reduction through 

employer tier I tax rate is 

e tier II tax on employees is 

r II tax rate on rail employers,

nd rail employee representatives

An employee representative is a

ered labor organization who

ered under the Acts administered

h employers and employees are

in asset balances to the sum of

e expenses (the average account

g on the average account benefits

loyers range between 8.20 per

hile the tier II tax rate for

nd 4.90 percent.

taxes apply to earnings on an

ts of earnings subject to these

ually on the basis of national

38

qualifying age. 

While a divorce ends eligibility for a spouse annuity, 

a divorced spouse may, under conditions described previously, qualify for a divorced spouse annuity. 

A divorced spouse’s annuity stops upon remarriage or 

upon entitlement to a social security benefit based on her or his own earnings if the unreduced social security benefit is equal to or greater than one-half of the employee’s unreduced tier I amount. A divorced spouse’s annuity may be 

reduced or stopped if the divorced spouse is also entitled to a railroad retirement annuity. 

It is important to notify the RRB promptly if one of 

the above changes occurs. Failure to report can result in an overpayment, which the RRB will take action to recover, sometimes with interest or penalties. Failure to report changes promptly or making a false statement can also result in a fine or imprisonment. 

19 
37

Tier IIEmployees 3.90% $81,900Employers 12.10% $81,900

Annual regular taxes

on employees earning $110,100Tier I Tier II Total

Employees $6,220.65 $3,194.10 $9,414.75Employers $8,422.65 $9,909.90 $18,332.55

* Legislation enacted in December 2010 temporarily lowered the

social security payroll tax rate on employees, and the corresponding tier I payroll tax rate on railroad employees, by 2 percentagepoints for calendar year 2011. This temporary rate reduction wassubsequently extended for calendar year 2012 under legislationenacted in February 2012. The tier I tax rate on employees is divided into 4.20% for railroad retirement and 1.45% for Medicare hospital insurance. The tier I tax rate on employers is divided into 6.20%for railroad retirement and 1.45% for Medicare hospital insurance.The 2012 maximum earnings base for railroad retirement is$110,100 and the Medicare hospital insurance tax is applied to allearnings. Consequently, employee and employer contributionscontinue to be made at the 1.45% rate, even after the employeehas earned $110,100.

d

 under the Railroad Retirement 

ured if he or she has at least 10 

or 5 years performed after 1995, 

” with the railroad industry as of 

gins or the month of death, 

he current connection require

eginning of this booklet. 

yee was not so insured, jurisdic

fits payable is transferred to the 

ation and any survivor benefits 

stead of the RRB. Regardless of 

tion, the deceased employee’s 

cial security credits will be com

enefit computations. 

URVIVOR BENEFITS 

le to widow(er)s and unmarried 

benefits are also payable to par

s, grandchildren and surviving 

20 
OR BENEFITS ARE NOT MET

s are not payable by the RRB

60 months of creditable service

of service at any time. Service

ilitary service.

are not payable unless the employ

on with the railroad industry and

able service after 1995 or 120

ime.

ve circumstances, if the require

ployee’s railroad retirement 

he Social Security Administration

rity credits. Benefits paid by that

y take into account both railroad

d earnings.

ment Act does not allow a former

draw his or her retirement taxes.

 railroad retirement taxes are not

ent tax withholding has exceeded

36

(continued on page 38)

tion of an annuity based on caring for a child of the deceased employee. In most cases, a 5-month waiting period is required after the onset of disability before a disability annuity can begin. 

¡ Any age if the widow(er) is caring for an unmarried child of the deceased employee under age 18 or a disabled child of any age who became disabled before age 22. Generally, the widow(er) must have been married to 

the employee for at least 9 months prior to death, unless she or he was the natural parent of their child, the employee’s death was accidental or while on active duty in the U.S. Armed Forces, the widow(er) was potentially entitled 

to certain railroad retirement or social security benefits in the month before the month of death, or the marriage was postponed due to State restrictions on divorce due to mental incompetence or similar incapacity. 

Survivor annuities may also be payable to a surviving 

divorced spouse or remarried widow(er). Benefits are limited to the amounts social security would pay and therefore are less than the amount of the survivor annuity otherwise payable. However, a former spouse may be paid a courtordered partition amount. 

21 
beneficiaries in order to ensure the reporting of eventswhich would require suspension or termination of monthlybenefits. The records of beneficiaries are also checkedwith the Social Security Administration because annuitiesmay be affected by nonrailroad earnings and because entitlement to social security benefits affects the amount of allannuities.

RIGHT OF APPEAL

Persons who believe that their claims have not been

adjudicated correctly may ask for reconsideration from theRRB unit that denied the claim. If not satisfied with thatreview, the applicant may appeal to the RRB’s Bureau ofHearings and Appeals.

Further appeals can be carried to the three-member

Board itself, and beyond the Board to Federal courts. TheRRB’s field office personnel will explain these appealsprocedures and the time limits on filing appeals to thoseseeking reconsideration of their claims.

GARNISHMENT/PROPERTY SETTLEMENTS

Garnishment

Certain percentages of an employee, spouse or survivor annuity may be subject to legal process (i.e., garnish

35

r I) may be paid to a widow(er) 

use who remarries after age 60, 

) or disabled surviving divorced 

er age 50; however, remarriage 

 if disabled) would not prevent 

age ends. Such social security 

 paid to a younger widow(er) or 

e caring for the employee’s child 

sabled, if the remarriage is to a 

retirement or social security ben

ds. 

TIES are payable to: 

ld under age 18. ld age 18 in full-time attendance 

dary school or in approved 

tudent attains age 19 or the end 

ress when the student attains age 

a student attains age 19 during 

are limited to the 2 months fol

is attained. These benefits will 

e student marries, graduates or 

e. 

22 
t furnish proof of age, proof of

 employee’s death. A surviving

nish proof of divorce from the

r a disability annuity, the

ide supporting medical evidence.

of of relationship to the employ

om the employee.

gible for benefits, proof of the

ch child is needed. If a child is

 supporting medical evidence is

old students must provide proof of

gh school attendance. A step

st furnish proof of dependency on

rvivor annuity application is 

w(er)s and 6 months for full retire

thers (fathers), children and par

dow(er)s ages 60-61 is 6 months

age reduction, although this does

orced spouses or remarried

here is generally no retroactivity

34

employee was also survived by a widow(er), surviving divorced spouse or child who could ever qualify for an annuity, the parent’s annuity is limited to the amount that social security would pay. 

SURVIVOR ANNUITY ESTIMATES 

The best way for survivors to obtain an annuity estimate is to visit the nearest RRB field office or contact the 

agency toll-free at 1-877-772-5772. Active or retired employees who are concerned about the amount of benefits which would be payable to their survivors may also receive estimates from an RRB field office. 

The average annuity awarded to widow(er)s in fiscal 

year 2011, excluding remarried widow(er)s and surviving divorced spouses, was $1,782 a month. Children received $1,194 a month, on the average. Total family benefits for widow(er)s with children averaged $3,604 a month. The average annuity awarded to remarried widow(er)s or surviving divorced spouses in fiscal year 2011 was $1,007 a month. 

23 
The best proof of marriage is a certified copy of the publicor church record or the original marriage certificate. Adivorced spouse would be expected to furnish a certifiedcopy of the final divorce decree. Proof of military servicemay be a certificate of discharge, or any official militaryrecord that shows the dates of service.

Employees are encouraged to file proofs of age, and

especially of any military service, well in advance ofretirement in order to expedite the annuity applicationprocess and avoid delays resulting from inadequate proofs.Information will be recorded and stored electronically andall proofs will be promptly returned.

Applicants for disability annuities are required to

submit supporting medical information. They are sometimes asked to take a special medical examination given bya doctor designated by the RRB.

An annuity is effective as of the first full month

throughout which the employee and/or spouse is age 60, orage 62 in the case of reduced annuities. An annuity iseffective the first day of the month full retirement age isattained in the case of unreduced annuities with less than30 years of service.

33

, as described in the section on 

is booklet. 

mounts may also be determined 

rovisions which guarantee that a be at least equal to the two-tier 

oyee would have received at the 

widow(er)’s annuity, minus certain 

e for age and receipt of social 

ess than the spouse annuity she 

rior to the employee’s death. 

WITH DUAL BENEFITS 

 

 reduced by the amount of any 

ceived by a survivor annuitant, 

 benefits are based on the sur

is reduction follows the princi

 which, in effect, limit payment 

r more benefits payable to an 

When both railroad retirement 

ity benefits are payable, they are 

 single payment issued through 

24 
vailable in field offices and

applicants should contact an RRB

ement consultation. Certain doc

 filing a railroad retirement annu

ses:

oyee’s age.

tary service.

e if the spouse is eligible or will 

igible for a spouse annuity. A

must furnish proof of divorce

e.

se’s or divorced spouse’s age.

relationship and age, if the 

g for an annuity based on caring 

s child.

ial security benefit award or 

ity claim determination.

32

which the pension is based was covered under the Social Security Act throughout the last 60 months of public employment. 

Most military service pensions and payments from 

the Department of Veterans Affairs will not cause a reduction. Pensions paid by a foreign government or interstate instrumentality will also not cause a reduction. For those subject to a public pension reduction, the tier I reduction is equal to 2/3 of the amount of the public pension. 

Employee Annuity 

If a widow(er) is qualified for a railroad retirement 

employee annuity as well as a survivor annuity, a special guaranty applies in some cases. If either the deceased employee or the survivor annuitant completed 120 months of railroad service before 1975, the widow or dependent widower may receive both an employee annuity and a survivor annuity, without a full dual benefit reduction. 

If either the deceased employee or the survivor annuitant had some service before 1975 but had not completed 

120 months of railroad service before 1975, the employee annuity and the tier II portion of the survivor annuity 

25 
phone and mail. The agency accepts applications up to 3 months in advance of an annuity beginning date whichallows the agency to complete the processing of most newclaims by a person’s retirement date. An employee can bein compensated service while filing a disability applicationprovided that the compensated service is not active serviceand terminates within 90 days from the date of filing.When an employee files a disability application while stillin compensated service, it will be necessary for theemployee to provide a specific ending date of the compensation. Compensated service includes not only compensation with respect to active service performed by an employee for an employer, but also includes pay for time lost,wage continuation payments, certain employee protectionpayments and any other payment for which the employeewill receive additional creditable service.

Railroad employees can get estimates of their future

annuities over the Internet. Employees can access thisservice by visiting the RRB’s website at www.rrb.gov,selecting “Beneficiaries & RR Employees,” and clicking on“Benefit Online Services.” 

Persons applying for railroad retirement benefits will

be required to enroll in either the Direct Deposit Program,

31

ases, effective December 1 and 

ayment, are made on the basis of 

s or, in some circumstances, 

nd calculated the same way as 

 employee and spouse annuities. 

e of widow(er)s’ annuities com

nitial minimum amount provided 

e monthly amount will not 

payable under previous law plus 

increases is higher than the initial 

RNINGS LIMITATIONS 

s not payable for any month the 

ployer covered under the Railroad 

s of the survivor’s age. 

eceiving social security benefits 

ment annuity and social security 

ings limitations purposes. Prior 

ich full retirement age is 

ion of $1 in benefits for every $2 

26 
s previously paid on the basis of

This benefit is seldom payable.

30

earnings for the year were. 

As work and earnings may affect the payment of an 

annuity, they must be reported promptly to the RRB in order to prevent potential overpayments. 

These earnings restrictions do not apply to disabled 

widow(er)s under age 60 or to disabled children. However, any work or earnings by a disability annuitant must be reported and are reviewed to determine whether they indicate recovery from the disability. 

WHEN SURVIVOR PAYMENTS STOP 

All survivor payments stop upon death; no annuity is 

payable for the month of death. 

A widow(er)’s annuity will be reduced upon remarriage and in some cases payment will be prevented. A 

widow(er)’s, surviving divorced spouse’s and remarried widow(er)’s annuity could also end upon entitlement to another survivor or spouse annuity under the Railroad Retirement Act which is greater than the widow(er)’s annuity. 

27 
payable only to the widow(er) living in the same householdas the employee at the time of the employee’s death.

If the employee had less than 10 years of service but

had 5 years after 1995, he or she must have met socialsecurity’s insured status requirements for the lump sum tobe payable.

If the employee had 10 years of service before 1975,

the lump sum is payable to the living-with widow(er). Ifthere is no such widow(er), the lump sum may be paid tothe funeral home or the payer of the funeral expenses.These lump sums averaged $1,008 in fiscal year 2011.

If a widow(er) is eligible for monthly benefits at the

time of the employee’s death, but the widow(er) had excessearnings deductions which prevented annuity payments orfor any other reason did not receive monthly benefits in the12-month period beginning with the month of the employee’s death totaling at least as much as the lump sum, thedifference between the lump-sum benefit and monthly benefits actually paid, if any, is payable in the form of adeferred lump-sum benefit.

29

hild’s annuity will stop if he or 

8 or recovers from the disability 

nuity was based. Similarly, an 

’s disability stops if the Social 

ubsequently determines that the 

ed. If the child is 18 and a full

chool student, the annuity stops 

 ceases, at graduation, or upon 

most cases, when a student attains 

erm, benefits are extended to the 

onth age 19 is attained. 

p if it was based on disability and 

rom the disability before age 60. 

e reinstated if the disability 

the widow(er) is still under age 

annuity may stop upon remar

married parent is entitled to a 

ccurrences must be reported 

rder to prevent an overpayment. 

28 
hild’s annuity will stop if he or

8 or recovers from the disability

nuity was based. Similarly, an

’s disability stops if the Social

ubsequently determines that the

ed. If the child is 18 and a full

chool student, the annuity stops

 ceases, at graduation, or upon

most cases, when a student attains

erm, benefits are extended to the

onth age 19 is attained.

p if it was based on disability and

rom the disability before age 60.

e reinstated if the disability

the widow(er) is still under age

annuity may stop upon remar

married parent is entitled to a 

ccurrences must be reported

rder to prevent an overpayment.

28

payable only to the widow(er) living in the same household as the employee at the time of the employee’s death. 

If the employee had less than 10 years of service but 

had 5 years after 1995, he or she must have met social security’s insured status requirements for the lump sum to be payable. 

If the employee had 10 years of service before 1975, 

the lump sum is payable to the living-with widow(er). If there is no such widow(er), the lump sum may be paid to the funeral home or the payer of the funeral expenses. These lump sums averaged $1,008 in fiscal year 2011. 

If a widow(er) is eligible for monthly benefits at the 

time of the employee’s death, but the widow(er) had excess earnings deductions which prevented annuity payments or for any other reason did not receive monthly benefits in the 12-month period beginning with the month of the employee’s death totaling at least as much as the lump sum, the difference between the lump-sum benefit and monthly benefits actually paid, if any, is payable in the form of a deferred lump-sum benefit. 

29 
earnings for the year were.

As work and earnings may affect the payment of an

annuity, they must be reported promptly to the RRB inorder to prevent potential overpayments.

These earnings restrictions do not apply to disabled

widow(er)s under age 60 or to disabled children. However,any work or earnings by a disability annuitant must bereported and are reviewed to determine whether they indicate recovery from the disability.

WHEN SURVIVOR PAYMENTS STOP

All survivor payments stop upon death; no annuity is

payable for the month of death.

A widow(er)’s annuity will be reduced upon remarriage and in some cases payment will be prevented. A

widow(er)’s, surviving divorced spouse’s and remarriedwidow(er)’s annuity could also end upon entitlement toanother survivor or spouse annuity under the RailroadRetirement Act which is greater than the widow(er)’s annuity.

27

s previously paid on the basis of 

This benefit is seldom payable. 

30 
ases, effective December 1 and

ayment, are made on the basis of

s or, in some circumstances,

nd calculated the same way as

 employee and spouse annuities.

e of widow(er)s’ annuities com

nitial minimum amount provided

e monthly amount will not

payable under previous law plus

increases is higher than the initial

RNINGS LIMITATIONS

s not payable for any month the

ployer covered under the Railroad

s of the survivor’s age.

eceiving social security benefits

ment annuity and social security

ings limitations purposes. Prior

ich full retirement age is

ion of $1 in benefits for every $2

26

phone and mail. The agency accepts applications up to 3 months in advance of an annuity beginning date which allows the agency to complete the processing of most new claims by a person’s retirement date. An employee can be in compensated service while filing a disability application provided that the compensated service is not active service and terminates within 90 days from the date of filing. When an employee files a disability application while still in compensated service, it will be necessary for the employee to provide a specific ending date of the compensation. Compensated service includes not only compensation with respect to active service performed by an employee for an employer, but also includes pay for time lost, wage continuation payments, certain employee protection payments and any other payment for which the employee will receive additional creditable service. 

Railroad employees can get estimates of their future 

annuities over the Internet. Employees can access this service by visiting the RRB’s website at www.rrb.gov, selecting “Beneficiaries & RR Employees,” and clicking on “Benefit Online Services.” 

Persons applying for railroad retirement benefits will 

be required to enroll in either the Direct Deposit Program, 

31 
which the pension is based was covered under the SocialSecurity Act throughout the last 60 months of publicemployment. 

Most military service pensions and payments from

the Department of Veterans Affairs will not cause a reduction. Pensions paid by a foreign government or interstateinstrumentality will also not cause a reduction. For thosesubject to a public pension reduction, the tier I reduction isequal to 2/3 of the amount of the public pension.

Employee Annuity

If a widow(er) is qualified for a railroad retirement

employee annuity as well as a survivor annuity, a specialguaranty applies in some cases. If either the deceasedemployee or the survivor annuitant completed 120 monthsof railroad service before 1975, the widow or dependentwidower may receive both an employee annuity and a survivor annuity, without a full dual benefit reduction.

If either the deceased employee or the survivor annuitant had some service before 1975 but had not completed

120 months of railroad service before 1975, the employeeannuity and the tier II portion of the survivor annuity

25

vailable in field offices and 

applicants should contact an RRB 

ement consultation. Certain doc

 filing a railroad retirement annu

ses: 

oyee’s age. 

tary service. 

e if the spouse is eligible or will 

igible for a spouse annuity. A 

must furnish proof of divorce 

e. 

se’s or divorced spouse’s age. 

 relationship and age, if the 

g for an annuity based on caring 

s child. 

ial security benefit award or 

ity claim determination. 

32 
, as described in the section on

is booklet.

mounts may also be determined

rovisions which guarantee that abe at least equal to the two-tier

oyee would have received at the

widow(er)’s annuity, minus certain

e for age and receipt of social

ess than the spouse annuity she

rior to the employee’s death.

WITH DUAL BENEFITS

 reduced by the amount of any

ceived by a survivor annuitant,

 benefits are based on the sur

is reduction follows the princi

 which, in effect, limit payment

r more benefits payable to an

When both railroad retirement

ity benefits are payable, they are

 single payment issued through

24

The best proof of marriage is a certified copy of the public or church record or the original marriage certificate. A divorced spouse would be expected to furnish a certified copy of the final divorce decree. Proof of military service may be a certificate of discharge, or any official military record that shows the dates of service. 

Employees are encouraged to file proofs of age, and 

especially of any military service, well in advance of retirement in order to expedite the annuity application process and avoid delays resulting from inadequate proofs. Information will be recorded and stored electronically and all proofs will be promptly returned. 

Applicants for disability annuities are required to 

submit supporting medical information. They are sometimes asked to take a special medical examination given by a doctor designated by the RRB. 

An annuity is effective as of the first full month 

throughout which the employee and/or spouse is age 60, or age 62 in the case of reduced annuities. An annuity is effective the first day of the month full retirement age is attained in the case of unreduced annuities with less than 30 years of service. 

33 
employee was also survived by a widow(er), survivingdivorced spouse or child who could ever qualify for anannuity, the parent’s annuity is limited to the amount thatsocial security would pay.

SURVIVOR ANNUITY ESTIMATES

The best way for survivors to obtain an annuity estimate is to visit the nearest RRB field office or contact the

agency toll-free at 1-877-772-5772. Active or retiredemployees who are concerned about the amount of benefitswhich would be payable to their survivors may also receiveestimates from an RRB field office.

The average annuity awarded to widow(er)s in fiscal

year 2011, excluding remarried widow(er)s and survivingdivorced spouses, was $1,782 a month. Children received$1,194 a month, on the average. Total family benefits forwidow(er)s with children averaged $3,604 a month. Theaverage annuity awarded to remarried widow(er)s or surviving divorced spouses in fiscal year 2011 was $1,007 amonth.

23

t furnish proof of age, proof of 

 employee’s death. A surviving 

nish proof of divorce from the 

r a disability annuity, the 

ide supporting medical evidence. 

of of relationship to the employ

om the employee. 

gible for benefits, proof of the 

ch child is needed. If a child is 

 supporting medical evidence is 

old students must provide proof of 

gh school attendance. A step

st furnish proof of dependency on 

rvivor annuity application is 

w(er)s and 6 months for full retire

thers (fathers), children and par

dow(er)s ages 60-61 is 6 months 

age reduction, although this does 

orced spouses or remarried 

here is generally no retroactivity 

34 
r I) may be paid to a widow(er)

use who remarries after age 60,

) or disabled surviving divorced

er age 50; however, remarriage

 if disabled) would not prevent

age ends. Such social security

 paid to a younger widow(er) or

e caring for the employee’s child

sabled, if the remarriage is to a

retirement or social security ben

ds.

TIES are payable to:

ld under age 18.ld age 18 in full-time attendance

dary school or in approved

tudent attains age 19 or the end

ress when the student attains age

a student attains age 19 during

are limited to the 2 months fol

is attained. These benefits will

e student marries, graduates or

e.

22

beneficiaries in order to ensure the reporting of events which would require suspension or termination of monthly benefits. The records of beneficiaries are also checked with the Social Security Administration because annuities may be affected by nonrailroad earnings and because entitlement to social security benefits affects the amount of all annuities. 

RIGHT OF APPEAL 

Persons who believe that their claims have not been 

adjudicated correctly may ask for reconsideration from the RRB unit that denied the claim. If not satisfied with that review, the applicant may appeal to the RRB’s Bureau of Hearings and Appeals. 

Further appeals can be carried to the three-member 

Board itself, and beyond the Board to Federal courts. The RRB’s field office personnel will explain these appeals procedures and the time limits on filing appeals to those seeking reconsideration of their claims. 

GARNISHMENT/PROPERTY SETTLEMENTS 

Garnishment 

Certain percentages of an employee, spouse or survivor annuity may be subject to legal process (i.e., garnish35 
tion of an annuity based on caring for a child of thedeceased employee. In most cases, a 5-month waitingperiod is required after the onset of disability before a disability annuity can begin.

¡ Any age if the widow(er) is caring for an unmarried child of the deceased employee under age 18 or a disabled child of any age who became disabled before age 22.Generally, the widow(er) must have been married to

the employee for at least 9 months prior to death, unlessshe or he was the natural parent of their child, the employee’s death was accidental or while on active duty in theU.S. Armed Forces, the widow(er) was potentially entitledto certain railroad retirement or social security benefits inthe month before the month of death, or the marriage waspostponed due to State restrictions on divorce due to mental incompetence or similar incapacity.

Survivor annuities may also be payable to a surviving

divorced spouse or remarried widow(er). Benefits are limited to the amounts social security would pay and thereforeare less than the amount of the survivor annuity otherwisepayable. However, a former spouse may be paid a courtordered partition amount. 

21

OR BENEFITS ARE NOT MET 

s are not payable by the RRB 

60 months of creditable service 

of service at any time. Service 

ilitary service. 

are not payable unless the employ

on with the railroad industry and 

able service after 1995 or 120 

ime. 

ve circumstances, if the require

ployee’s railroad retirement 

he Social Security Administration 

rity credits. Benefits paid by that 

y take into account both railroad 

d earnings. 

ment Act does not allow a former 

draw his or her retirement taxes. 

 railroad retirement taxes are not 

ent tax withholding has exceeded 

(continued on page 38) 

36 
d

 under the Railroad Retirement

ured if he or she has at least 10

or 5 years performed after 1995,

” with the railroad industry as of

gins or the month of death,

he current connection require

eginning of this booklet.

yee was not so insured, jurisdic

fits payable is transferred to the

ation and any survivor benefits

stead of the RRB. Regardless of

tion, the deceased employee’s

cial security credits will be com

enefit computations.

URVIVOR BENEFITS

le to widow(er)s and unmarried

benefits are also payable to par

s, grandchildren and surviving

20

Tier II Employees 3.90% $81,900 Employers 12.10% $81,900 

Annual regular taxes 

on employees earning $110,100 

Tier I Tier II Total 

Employees $6,220.65 $3,194.10 $9,414.75 Employers $8,422.65 $9,909.90 $18,332.55 

* Legislation enacted in December 2010 temporarily lowered the 

social security payroll tax rate on employees, and the corresponding tier I payroll tax rate on railroad employees, by 2 percentage 

points for calendar year 2011. This temporary rate reduction was subsequently extended for calendar year 2012 under legislation enacted in February 2012. The tier I tax rate on employees is divided into 4.20% for railroad retirement and 1.45% for Medicare hospital insurance. The tier I tax rate on employers is divided into 6.20% for railroad retirement and 1.45% for Medicare hospital insurance. The 2012 maximum earnings base for railroad retirement is $110,100 and the Medicare hospital insurance tax is applied to all earnings. Consequently, employee and employer contributions continue to be made at the 1.45% rate, even after the employee has earned $110,100. 

37 
qualifying age.

While a divorce ends eligibility for a spouse annuity,

a divorced spouse may, under conditions described previously, qualify for a divorced spouse annuity.

A divorced spouse’s annuity stops upon remarriage or

upon entitlement to a social security benefit based on heror his own earnings if the unreduced social security benefitis equal to or greater than one-half of the employee’s unreduced tier I amount. A divorced spouse’s annuity may bereduced or stopped if the divorced spouse is also entitled toa railroad retirement annuity.

It is important to notify the RRB promptly if one of

the above changes occurs. Failure to report can result in anoverpayment, which the RRB will take action to recover,sometimes with interest or penalties. Failure to reportchanges promptly or making a false statement can alsoresult in a fine or imprisonment.

19

 percent in 2011, and subsequent 

emporary reduction through 

employer tier I tax rate is 

e tier II tax on employees is 

r II tax rate on rail employers, 

nd rail employee representatives 

An employee representative is a 

ered labor organization who 

ered under the Acts administered 

h employers and employees are 

in asset balances to the sum of 

e expenses (the average account 

g on the average account benefits 

loyers range between 8.20 per

hile the tier II tax rate for 

nd 4.90 percent. 

taxes apply to earnings on an 

ts of earnings subject to these 

ually on the basis of national 

38 
ant earns more than $790 in any

mployment, exclusive of disability

Withheld payments will be restored if

ess than $9,875 after deduction of

penses. Failure to report such earn

ficant penalty charge.

rk restrictions cease upon a disabled

inment of full retirement age. This

arlier than full retirement age even if

s of service. Earnings deductions

 working for their last pre-retirement

yee annuitant works before full retire

aise a question about the possibility

ery from disability, regardless of the

sequently, any earnings must be

d overpayments, which are recover

 also include penalties.

ANNUITIES STOP

uity stops upon the annuitant’s death,

able for any day in the month of

18

I or tier II railroad retirement taxes withheld. Employees who had tier I taxes withheld from their supplemental sickness benefits may also be eligible for a tax credit of any excess tier I tax. Such tax credits may be claimed on an employee’s Federal income tax return. 

Employees who worked for two or more railroads, or 

had both railroad retirement and social security taxes withheld from their earnings, should see Internal Revenue Service publication 505, Tax Withholding and Estimated Tax, for information on how to figure any excess railroad retirement or social security tax withheld. 

Dual Railroad Retirement-Social Security Taxes Paid, 1951-74 

An employee with 10 or more years of railroad service who is not entitled to a vested dual benefit payment 

may be entitled to a refund of excess social security taxes if his or her combined taxable earnings from the railroad retirement and social security systems in any year in the period 1951-1974 exceeded a maximum annual amount creditable under the Railroad Retirement Act. Eligible employees will receive their refunds from the RRB at retirement without applying for them. In the event an 

39 
changes significantly.

Retired employees and spouses who return to work

for a railroad or for their last pre-retirement nonrailroademployer must notify the RRB, regardless of earnings orage.

A spouse benefit is subject to reductions not only for

the spouse’s earnings, but also for the earnings of theemployee, regardless of whether the earnings are fromservice for the last pre-retirement nonrailroad employer orother post-retirement employment.

A spouse annuity is not payable for any month in

which the employee’s annuity is not payable, or for anymonth in which the spouse, regardless of age, works for anemployer covered under the Railroad Retirement Act. (Adivorced spouse can receive an annuity even if the employee has not retired, provided they have been divorced for aperiod of not less than 2 years, the employee and formerspouse are at least age 62, and the employee is fullyinsured under the Social Security Act using combined railroad and social security earnings. A court-ordered partitionpayment may be paid even if the employee is not entitledto an annuity provided that the employee has 10 years of

17

ovision applies to separation and 

 after 1984. 

INCOME TAX ON 

TIREMENT BENEFITS

 a railroad retirement annuity that 

 social security benefit is treated 

t for Federal income tax purpos

ount of other income received in 

 of these benefit payments may 

me tax. 

eding social security benefits, 

s payable between ages 60 and 

al disability annuities, plus the 

retirement annuities, vested dual 

l annuities paid by the RRB are 

ns for Federal income tax pur

rement Act specifically exempts 

from State and local income tax. 

ocial Security Administration 

ements to annuitants each 

f a request not to withhold, taxes 

40 
which an employee subject to

 is both entitled to an annuity and

full annuity can be paid for those

oyee had low earnings or did not

oyment, no matter what total

e. A non-work month is one in

er earns over 1/12 of the annual

ubstantial self-employment. Non

med in only one calendar year,

y be the first year of entitlement.

 in which an individual attains

ment age, deductions of $1 are

dual benefits for every $3 earned

mount ($38,880 in 2012), but only

n the months prior to the month

ned. These tier I and vested dual

fective with the month full retire

or services rendered, plus any net

yment, are considered when

arnings. Interest, dividends, cer

16

tion is recorded under the employee

s social security 

account number used by the employer to report service and compensation to the RRB. 

Additional service months may be deemed in some 

cases where an employee does not actually work in every month of the year. For additional service months to be deemed, the employee’s compensation for the year, up to the tier II maximum, must exceed an amount equal to 1/12 of the tier II maximum multiplied by the number of service months actually worked. The excess amount is then divided by 1/12 of the tier II maximum; the result, rounded up to a whole number, equals the maximum number of months that may be deemed as service months for that year. The employee must be in an employment relation (on an approved leave of absence) with a covered railroad employer, or be an employee representative, during a deemed service month. An employee may never be credited with more than 12 service months in any calendar year. 

Except for benefits paid for on-the-job injuries, sickness benefits are subject to tier I railroad retirement taxes 

if paid within 6 months after the month in which the employee last worked. They are credited as compensation for tier I benefits, but are not credited as service months. 

41 
Neither a regular annuity, a supplemental annuity,

nor a spouse annuity is payable for any month in which aretired employee, regardless of age, works for an employercovered under the Railroad Retirement Act, including labororganizations. However, service for less than $25 a monthto a local lodge will not prevent payment of the annuity forthat month.

Retired employees and spouses who work for their

last pre-retirement nonrailroad employer are subject to anearnings deduction. Such employment will reduce tier IIbenefits and supplemental annuity payments, which are nototherwise subject to earnings deductions, by $1 for each $2of earnings received, subject to a maximum reduction of50 percent. These reductions continue after full retirementage. Work that begins on the same day as the annuitybeginning date is not last pre-retirement nonrailroademployment.

Retired employees and spouses who have not yet

attained full social security retirement age, which rangesfrom age 65 for those born before 1938 to age 67 for thoseborn in 1960 or later, may also be subject to additionalearnings deductions for any earnings, in or outside the railindustry, that exceed certain exempt amounts. The tier I

15

al emergency periods that affect 

9, to June 14, 1948. 

50, to September 14, 1978. 

o date as yet undetermined. 

egan during a war or national 

tive duty service the employee 

n beyond the end of the war or 

ditable, except that voluntary 

 September 14, 1978, is not cred

who voluntarily served in the 

ne 15, 1948, and December 15, 

declared national state of emer

ad retirement credit for their mil

rmed railroad service in the year 

efore they entered military serv

o rail service in the year their mil

he following year and had no 

mployment. 

42 
r social security, the employee

s

ed to reflect what social security

ess the annuity is already more

NCREASES IN EMPLOYEE 

ETIREMENT BENEFITS

e tier I portions of both employee

generally increased for higher liv

, and by the same percentage, as

These increases, effective

 in the January payment, are

onsumer Price Index from the

ar a cost-of-living adjustment

orresponding period of the current

dex increases by 5 percent, for

 increases by 5 percent. Under

 increase can be based on aver

es rather than price increases.

ceiving both railroad retirement

ts, the increased tier I portion is

social security benefit.

14

able sickness payments. It also includes cumulative amounts of railroad retirement payroll taxes paid by the employee over and above social security equivalent payroll taxes and creditable military service if previously reported. 

The BA-6 form should be carefully reviewed for 

accuracy. Employees can also view their individual records via the RRB’s website. This feature, “View Service & Compensation History,” is available to employees by visiting the RRB’s website at www.rrb.gov, selecting “Beneficiaries & RR Employees,” and clicking on “Benefit Online Services.” 

An employee who disagrees with information on the 

BA-6 form should write to the RRB as soon as possible, as the law limits to 4 years the period during which corrections can be made. All letters concerning BA-6 forms must include the employee’s social security number and be addressed to: 

Protest Unit - CES

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, Illinois 60611-2092

43 
the Department of Veterans Affairs will not cause a reduction. Pensions paid by a foreign government or interstateinstrumentality will also not cause a reduction. For spouses subject to the public pension reduction, the tier I reduction is equal to 2/3 of the amount of the public pension.

Employee Annuity

If both the husband and wife are qualified railroad

employees and either had some railroad service before1975, both can receive separate railroad retirementemployee and spouse annuities, without a full dual benefitreduction.

If both the husband and wife started railroad employment after 1974, the amount of any spouse or divorced

spouse annuity is reduced by the amount of the employeeannuity to which the spouse is also entitled.

MINIMUM GUARANTY FOR EMPLOYEE 

AND SPOUSE ANNUITIES

Under a special minimum guaranty provision, railroad families will not receive less in monthly benefits than

they would have if railroad earnings were covered bysocial security rather than railroad retirement laws. This

13

ETIREMENT ANNUITY 

gular annuity is the total of por

 separately under different for

us any vested dual benefit pay

ulated in generally the same way 

t. Any social security credits of 

d with his or her railroad retire

mputation purposes. 

 an employee’s creditable earn

nto account the changes in wage 

etime. This procedure, called 

able earnings from past years to 

age levels just prior to the 

ligibility. The adjusted earnings 

rage indexed monthly earnings,” 

o determine the gross tier I 

ble in 2012, the gross tier I is 

44 
ceiving a disability annuity, the

certain circumstances, be reduced

mpensation or public disability

mes entitled to any pensions or

ve, the RRB must be notified

TH DUAL BENEFITS

 a spouse annuity is reduced for

ment, regardless of whether the

based on the spouse’s own earn

ngs or the earnings of another

llows principles of social security

 payment to the higher of any

able to an individual at one time.

12

status

 under Social Security Act rules (usually 40 quarters 

of coverage), counting both railroad retirement and social security covered earnings. 

Delayed retirement credits 

Tier I benefits are increased for each month an 

employee delays retirement past full retirement age, up until age 70. For those who attain full retirement age on January 1, 2007, or later with a date of birth of January 2, 1941, through January 1, 1943, the delayed retirement credit is 5/8 of 1 percent per month. For those born January 2, 1943, or later, the delayed retirement credit is 2/3 of 1 percent per month (8 percent per year). Delayed retirement credits are not given to an employee with less than 10 years of railroad service, even if the employee is over full retirement age when retiring from his or her railroad job, if the employee is also entitled to an age-reduced social security benefit and the beginning date of that social security benefit precedes the beginning date of his or her railroad retirement annuity. 

Age reductions 

For employees retiring between age 62 and full 

retirement age with less than 30 years of service, age 

45 
begin to receive a social security benefit if he or she wereto file for such a benefit.

Employees who do not qualify for a vested dual benefit may be eligible for a refund of any excess social security taxes they paid (see page 39).

Limitations on vested dual benefits

Vested dual benefit payments are funded by annual

appropriations from general U.S. Treasury revenues. Theseappropriations account for less than one percent of totalfinancing sources for the railroad retirement system.

Payment of vested dual benefits is dependent on the

time and amount of such appropriations. If the appropriation in a fiscal year is for less than the estimated total vested dual benefit payments, individual payments must bereduced.

Employees with Public, Non-profit or Foreign Pensions

For employees first eligible for a railroad retirement

annuity and a Federal, State or local government pension

after 1985, there may be a reduction in the tier I amountfor receipt of a public pension based, in part or in whole,

11

ar over two separate 6

year peri

affect how reduced benefits are 

ment. The increase in full retire

age 66 affects those people who 

38 through 1942. The full retire

ge 66 for people born in the years 

increase in full retirement age 

ects those who were born in the 

 For people who were born in 

ement age will be age 67. 

ontinue to be available but at 

arly-retirement reduction factor 

for each of the first 36 months of 

dless of the age of initial entitle

40 for each month (if any) over 

This will result in a gradual 

at age 62 to 30 percent for an 

 retirement age is in effect. 

less than 10 years of railroad 

tled to an age-reduced social 

eduction in his or her tier I will 

tion applicable on the beginning 

cial security benefit, even if the 

46 
d Retirement and Social

red or disabled railroad retire

arded social security benefits, the

ation determines the amount due,

benefit payment is issued by the

 an employee annuity is based on

ad retirement and social security

al security formulas, and approx

y would pay if railroad work

em. It is reduced by the amount

ty benefit paid on the basis of the

mployment in order to prevent a

sed on social security covered

nt is also reduced in the event a

payable to the employee on the

earnings. This reduction follows

ty law which, in effect, limit pay

two or more benefits payable to

 An annuitant is required to

nefits are received directly from 

10

1940 65 and 6 months 22.50% 1941 65 and 8 months 23.333% 1942 65 and 10 months 24.167% 1943 through 1954 66 25.00% 1955 66 and 2 months 25.833% 1956 66 and 4 months 26.667% 1957 66 and 6 months 27.50% 1958 66 and 8 months 28.333% 1959 66 and 10 months 29.167% 1960 or later 67 30.00% 

employee is already of full retirement age on the beginning date of his or her railroad retirement annuity. 

Age reductions are required in the tier I annuity 

amounts of 30-year employees who retired at ages 60-61 before 2002 and attained age 60 or completed 30 years of service after June 1984. The age reductions are applied only to the tier I annuity portion. If an employee affected by this provision was born before 1938 and attained 60/30 eligibility after December 1985, tier I is permanently reduced by approximately 20 percent. For those born after 1937 who retired before 2002, the reduction gradually increased as described earlier. In both cases, the tier I 

47 
9

Table 2.--Fiscal Year 2011 Annuity Awards 

Based on Service Averaging Less than 30 Years

Average Average years

award of service

Employee full retirementage or over $2,224 22.0Employee full retirement age or over and spouse $3,099 23.7Employee under fullretirement age with less than 30 years of service $1,491 16.4Employee under full retirement age with less than 30 years of serviceand spouse $2,043 16.7

Employee retiring because of disability $2,526 24.6

nection, a supplemental annuity may be payable. The supplemental annuityamount, for awards after 1974, is $23 plus $4 for each year of service over25 years, up to a maximum of $43 for employees with 30 or more years ofservice. Figures in the tables on this page are monthly averages and includesupplemental annuity amounts.

 are under age 65 and receiving a 

 I amount is, under certain cir

eceipt of workers’ compensation 

ts. 

 

age reduction, the tier I amount is 

any social security benefits also 

unt below zero. 

n-profit or foreign pensions 

 attain eligibility for both tier I 

rnment pension or other payments 

ay be required for receipt of a 

art or in whole, on employment 

tirement or social security after 

o payments from a non-profit 

ain foreign governments or 

mployee’s tier I benefit will not 

1/2 of his or her pension from 

However, if the employee is 

g a disability annuity, the tier I 

y an added amount if the pension 

ment is a public disability benefit. 

48 
want estimates can also contact

pproximate figures. Each RRB

timates for employees with at

service, or 5 years after 1995. It

a precise amount if the employee

ext page show (1) fiscal year 2011

 employees retiring before full

cal year 2011 annuity awards to

e of less than 30 years of service.

IES AND DUAL BENEFITS

irement annuities are calculated

The annuity formula compo

pouses are described in the sec

ck of this booklet.

d on railroad retirement credits

edits an employee has acquired.

er is calculated using social secu

lroad retirement age and service

8

(continued on page 10)

benefit amount due. 

Age reductions 

Age reductions required for those employees retiring 

between age 62 and full retirement age with less than 30 years of service are also applied to the tier II component of an annuity. The reduction is 1/180 for each of the 

first 36 months the employee is under full retirement age when his or her annuity begins and 1/240 for each additional month. 

Full retirement age is gradually rising as mentioned 

earlier. However, if an employee had any creditable railroad service before August 12, 1983, the retirement age for tier II purposes will remain 65. 

Employees with 5-9 years of creditable service, if at 

least 5 years were after 1995, are eligible for tier II benefits the first full month they are age 62. Their tier II benefits are subject to the same age reductions that apply to employees with 10-29 years of service. If eligible on the basis of total disability, a tier II benefit is not payable until age 62 and that amount is reduced for early retirement. 

49 
p

p

y 

p

y

received a spouse annuity. However, entitlement to a surviving divorced spouse, surviving divorced young mother(father), or remarried widow(er) annuity does not waivethe 1-year marriage requirement.

An annuity may also be payable to the divorced wife

or husband of a retired employee if their marriage lastedfor at least 10 consecutive years, both have attained age 62for a full month and the divorced spouse is not currentlymarried. The amount of a divorced spouse’s annuity is, ineffect, equal to what social security would pay in the samesituation and therefore less than the amount of the spouseannuity otherwise payable (tier I only). A divorced spousecan receive an annuity even if the employee has not retired,provided they have been divorced for a period of not lessthan 2 years, the employee and former spouse are at leastage 62, and the employee is fully insured under the SocialSecurity Act using combined railroad and social securityearnings. A court-ordered partition payment may be paideven if the employee is not entitled to an annuity providedthat the employee has 10 years of railroad service or 5years after 1995 and both the employee and former spouseare 62.

7

 before 1975. 

efit is increased by the cumula

age increases applicable to tier I 

ween January 1, 1975, and the 

ary 1, 1982, whichever was earli

t is then frozen; that is, no further 

e applied thereafter. The amount 

 due is added to the tier portions 

gular annuity. 

tion applied to the tier I compo

ed dual benefit component of an 

ees retiring before full retirement 

s of service. 

ormula 

pplemental annuity awarded after 

$4 for each year of service over 

43. A fraction of $4 is added for 

vice. 

e also receives a private pension 

 by a railroad, or a distribution 

ch the employer contributes 

50 
61 before 2002. If the employee

annuity, has attained age 60 and

e spouse can receive an unre

l month she or he is age 60,

employee annuity began before

he spouse’s annuity beginning

yee with less than 30 years of

loyee’s spouse is also eligible for

onth the spouse is age 62. Early

applied to the spouse annuity if

 her or his full retirement age.

pouse is gradually rising to age

e, depending on the year of birth.

payable at age 62, but the maxi

 percent rather than 25 percent

r II portion of a spouse annuity

 not reduced beyond 25 percentreditable railroad service before

mployee receiving an age and

use of a disability annuitant who

n age and service annuity) is 

6

by a railroad labor organization. 

SPOUSE ANNUITY 

The spouse annuity formula is based on certain percentages of the employee’s tier I and tier II amounts. 

Tier I 

The tier I portion of a spouse annuity, before any 

applicable reductions, is 50 percent of the railroad employee’s unreduced tier I amount. 

Spouse age reductions 

Age reductions required for those spouses (between 

age 62 and full retirement age) of employees retiring with less than 30 years of service are applied separately to each annuity component. Full retirement age for a spouse is gradually rising, just as for an employee. Actuarially reduced benefits continue to be available but at greater reductions. The tier I reduction is 1/144 for each of the first 36 months the spouse is under full retirement age when her or his annuity begins and will decrease to 1/240 for each month (if any) over 36. This will result in a gradual increase in the reduction at age 62 from 25 percent to 

51 
job in the railroad industry, and did not thereafter declinean offer of employment in the same class or craft in therailroad industry, regardless of the distance to the newposition. 

A termination of railroad service is considered voluntary unless there was no choice available to the individual

to remain in service. Generally, where an employee has nooption to remain in the service of his or her railroademployer, the termination of the employment is consideredinvoluntary, regardless of whether the employee does ordoes not receive a separation allowance. However, eachcase is decided by the RRB on an individual basis. Thisexception to the normal current connection requirementsbecame effective October 1, 1981, but only for employeesstill living on that date who left the rail industry on or afterOctober 1, 1975, or who were on leave of absence, on furlough, or absent due to injury on October 1, 1975.

Once a current connection is established at the time

the railroad retirement annuity begins, an employee neverloses it no matter what kind of work is performed thereafter.

5

ges 60 or 61 with 30 or more 

lroad retirement annuities begin 

The spouses of these employees 

nnuities at age 60. 

uired for spouses of employees 

who attained 60/30 eligibility after 

uities began before January 2002 

r I portion of the spouse annuity. 

60/30 eligibility before July 1984, 

years of service or begins receiv

or 61 after 2001 with 30 years of 

portion is not subject to these 

nnuity is subject to 60/30 age 

such an employee may receive a 

ess the spouse is already of full 

ouse cases, the tier I benefit is 

yee’s reduced tier I on the 

ning date and is also frozen until 

hout which both the employee 

hen it is recomputed based on 1/2 

52 
q

p

p

s not qualify on this basis, but has

arlier 30-month period, he or she

 connection requirement. This

es if the employee did not have

outside the railroad industry after

nth period which included 12

e and before the month the annu

eath. Full or part-time work for a

he interval between the end of the

uding 12 months of railroad serv

e of an employee’s annuity, or the

can break a current connection.

an unincorporated business will

ction; however, self-employment

ction if the business is incorpo

 U.S. Government agencies--

tion, National Transportation

nsportation Board, National

ortation Security Administration,

rrent connection. State employ

4

later, the spouse can receive an unreduced annuity as early as age 60. If the spouse is entitled based on having a minor or disabled child in care, there is no age reduction. 

Reductions for other benefits 

After any applicable age reduction required for the 

spouse’s early retirement, the spouse tier I amount is reduced by the amount of any social security benefit to which the spouse is entitled. 

The tier I amount may also be reduced for certain 

Federal, State or local government pension payments based on the spouse’s own earnings. For spouses subject to the public pension reduction, the tier I reduction is equal to 2/3 of the public pension. 

The spouse tier I amount may also be reduced if the 

employee under age 65 is receiving a disability annuity and a workers’ compensation or public disability benefit. 

While these offsets can reduce or even completely 

wipe out the tier I benefit otherwise payable to a spouse, they do not affect the tier II benefit potentially payable to that spouse. 

53 
any disability annuity payments can begin.

An employee can be in compensated service while

filing a disability annuity application as long as the compensated service is not active service and terminates within90 days from the date of filing. However, in order for asupplemental annuity to be paid by the RRB, or for an eligible spouse to begin receiving annuity payments, a disabled annuitant under full retirement age must relinquishemployment rights.

A SUPPLEMENTAL ANNUITY can be paid at:

¡ Age 60, if the employee has at least 30 years of

creditable railroad service.

¡ Age 65, if the employee has 25-29 years of 

railroad service.

In addition to the service requirements, a “current

connection” with the railroad industry is required for allsupplemental annuities. An employee must also be receiving a railroad retirement age and service or disability annuity before a supplemental annuity can be paid. Eligibilityis further limited to employees who had some rail servicebefore October 1981.

3

p

g 

unt after the 25 percent reduction 

 dual benefit entitlement. 

r, age reductions are gradually 

e reduction for spouses of 

ess than 30 years of service is 

 36 months the spouse is under 

her or his annuity begins and 

h month (if any) over 36. 

ployee had any creditable rail

mber 1983, the employee and 

tier II purposes remains age 65. 

plied to spouse annuities based 

 a child. 

L ANNUITIES 

e and spouse are railroad employ

me railroad service before 1975, 

s reduced by the amount of the 

o which the spouse is entitled and 

stored in the spouse tier II 

I amount cannot be reduced 

54 
ges from age 65 for those born

 those born in 1960 or later, the

rity. Reduced annuities are still

maximum reduction will be 

percent by the year 2022. The

ty (as defined on page 10) is not

nt if the employee had any cred

ore August 12, 1983. (See pages

nation of age reductions.)

n age cannot be paid until the

mployment, files an application

 return to work for a railroad

an be paid for:

t any age, if an employee is per

regular work and has at least 10ditable railroad service. Employ

9 months) of creditable railroad

were performed after 1995, may

defined on page 8) before retire

otal disability if they also meet

nings requirements. An age

uld be payable at age 62.

2

Tier I 

The survivor tier I amount is based on the deceased 

employee’s combined railroad retirement and social security credits, and is computed using social security formulas. In general, the survivor tier I amount is equal to the amount of survivor benefits that would have been payable under social security. 

The gross survivor tier I amount (before reductions 

for early retirement, or other benefits) is generally equivalent to the unreduced tier I retirement benefit the deceased employee had, or would have, received. 

For surviving aged or disabled widow(er)s, remarried 

widow(er)s and surviving divorced spouses whose annuities begin a year or more after the employee’s death, the “average indexed monthly earnings,” upon which the tier I benefit is based, may be reindexed using a later year if it would result in a higher benefit, provided the employee died before age 62. The reindexing takes into account changes in national earnings levels which occur after the employee’s death but before the survivor becomes eligible for benefits. This provides a benefit consistent with earn55 
cases, military service may be counted as railroad service.

Credit for a month of railroad service is given for

every month in which an employee had some compensatedservice for an employer covered by the RailroadRetirement Act, even if only one day’s service is performed in the month. (However, local lodge compensationearned after 1974 is disregarded for any calendar month inwhich it is less than $25.) Under certain circumstances,additional months of service may be deemed.

Covered employers include railroads engaged in

interstate commerce and some of their subsidiaries, railroad associations and national railway labor organizations.

Railroad retirement benefits are based on months of

service and earnings credits. Earnings are creditable up tocertain annual maximums on the amount of compensationsubject to railroad retirement taxes.

AGE AND SERVICE, DISABILITY AND

SUPPLEMENTAL ANNUITIES

An AGE AND SERVICE ANNUITY can be paid to:

¡ Employees with 30 or more years of creditable

service. They are eligible for regular annuities based on

1

er)

s date of birth. For a surviv

married widow(er), the maximum 

ent. For a disabled widow(er), 

ed spouse or disabled remarried 

reduction is 28.5 percent, even if 

50. 

viving divorced spouse whose eli

g for a child of the employee 

 full tier I amount. Benefits to a 

e end when the child is 16. An 

s 75 percent of the full tier I 

t the family can receive is subject 

pplicable if there are three or 

t counting aged or disabled sur

entitled to survivor annuities). 

 can receive 82.5 percent of the 

oth parents are eligible, the total 

han 150 percent of the full tier I 

reviously described is reduced by 

security benefit or by the tier I 

56 
ance Payments . . . . . . . . . . . . 40

 . . . . . . . . . . . . . . . . . . . . . . . . 40

ds . . . . . . . . . . . . . . . . . . . . . . 41

 . . . . . . . . . . . . . . . . . . . . . . . . 42

 . . . . . . . . . . . . . . . . . . . . . . . . 43

T ANNUITY

TS . . . . . . . . . . . . . . . . . . . . . 44

ity . . . . . . . . . . . . . . . . . . . . . . 44

 . . . . . . . . . . . . . . . . . . . . . . . . 44 . . . . . . . . . . . . . . . . . . . . . . . . 49

Dual Benefit Payment . . . . . . 50

ity Formula . . . . . . . . . . . . . . 50

 . . . . . . . . . . . . . . . . . . . . . . . . 51

 . . . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . 54

 . . . . . . . . . . . . . . . . . . . . . . . . 54 . . . . . . . . . . . . . . . . . . . . . . . . 55

 . . . . . . . . . . . . . . . . . . . . . . . . 55 . . . . . . . . . . . . . . . . . . . . . . . . 57

 . . . . . . . . . . . . . . . . . . . . . . . . 59

own employee annuity. 

The tier I amount may also be reduced by certain 

Federal, State or local government pensions which are based on a widow(er)’s own earnings. For widow(er)s subject to the government pension reduction, the tier I reduction is equal to 2/3 of the public pension. Tier II Widow(er)s 

December 2001 legislation established an “initial 

minimum amount” which yields, in effect, a widow(er)’s tier II benefit equal to the tier II benefit the employee would have received at the time of the award of the widow(er)’s annuity, minus any applicable age reduction. It does this by providing an additional amount, initially set at 50 percent of the employee’s tier II, to the 100 percent tier I and 50 percent tier II benefits provided under prior law. 

This additional amount is offset each year by the dollar amount of any cost-of-living increases payable in both 

the tier I and tier II benefits provided under prior law. Consequently, such a widow(er)’s net benefit payment will 

57 
Employees with Public, Non-profit 

or Foreign Pensions . . . . . . . . . . . . . . . . . . . . . . 11

Workers’ Compensation . . . . . . . . . . . . . . . . . . . . 12

Spouses with Dual Benefits . . . . . . . . . . . . . . . . . . . . . . . . 12

Social Security Benefits . . . . . . . . . . . . . . . . . . . . 12Public Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Employee Annuity . . . . . . . . . . . . . . . . . . . . . . . . 13

Minimum Guaranty for Employee and Spouse Annuities . 13Cost-of-living Increases in Employee and Spouse

Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Working After Retirement . . . . . . . . . . . . . . . . . . . . . . . . . 15

Disability Work Restrictions . . . . . . . . . . . . . . . . . 18

When Annuities Stop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18SURVIVOR BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . 20Types of Survivor Benefits . . . . . . . . . . . . . . . . . . . . . . . . 20Survivor Annuity Estimates . . . . . . . . . . . . . . . . . . . . . . . . 23Survivor Annuity Tiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Survivors with Dual Benefits . . . . . . . . . . . . . . . . . . . . . . . 24

Social Security Benefits . . . . . . . . . . . . . . . . . . . . 24Public Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Employee Annuity . . . . . . . . . . . . . . . . . . . . . . . . 25

Cost-of-living Increases in Survivor Annuities . . . . . . . . . 26Work and Earnings Limitations . . . . . . . . . . . . . . . . . . . . . 26When Survivor Payments Stop . . . . . . . . . . . . . . . . . . . . . 27Lump-sum Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . 29

Residual Lump-sum Payment . . . . . . . . . . . . . . . . 30

nuity that would be payable under 

ation, the provision did not apply. 

me age reductions that apply to 

o tier II amounts. 

fies for a railroad retirement 

her the widow(er) nor the 

y railroad service before 1975, 

le to the widow(er) is reduced by 

dow(er)’s own employee annuity. 

15 percent of the deceased 

 and each surviving parent 

minimum total tier II amount 

ercent of the employee’s tier II 

m, 130 percent. 

ot provided for a surviving 

rried widow(er). However, parti

ended to surviving former spous

eements. A tier II benefit is not 

ts if other family members may 

arent has remarried. 

58 
Insurance Act account statement,

nd compensation history. In

B’s publications are available for

, as is information about benefit

pics of interest.

ed for the purpose of general

tations, exceptions, and special

ALABAMA IOWA NEBRASKA PENNSYLVANIA Birmingham Des Moines Omaha Altoona ARIZONA Mesa 

KANSAS Wichita 

NEW JERSEY Newark 

Harrisburg Philadelphia Pittsburgh 

ARKANSAS Little Rock 

KENTUCKY Louisville 

NEW MEXICO Albuquerque 

Scranton TENNESSEE Nashville 

CALIFORNIA Covina Oakland Roseville 

LOUISIANA New Orleans MARYLAND Baltimore 

NEW YORK Albany Buffalo New York Westbury 

TEXAS Fort Worth Houston UTAH 

COLORADO Denver MASSACHUSETTS Boston NORTH CAROLINA Charlotte Salt Lake City VIRGINIA FLORIDA Jacksonville 

MICHIGAN Detroit 

NORTH DAKOTA Fargo 

Richmond Roanoke 

Tampa GEORGIA 

MINNESOTA Duluth 

OHIO Cincinnati 

WASHINGTON Bellevue 

Atlanta St. Paul Cleveland Spokane ILLINOIS Chicago Decatur Joliet 

MISSOURI Kansas City St. Louis MONTANA 

OREGON Portland 

WEST VIRGINIA Huntington WISCONSIN Milwaukee 

INDIANA Indianapolis Billings 

59 
trative responsibilities under the Social Security Act forcertain benefit payments and railroad workers’ Medicarecoverage.

This booklet describes the retirement and disability

annuities provided for employees under the RailroadRetirement Act, and the benefits available to their spousesand survivors. Medicare and unemployment-sicknessinsurance benefits are described in separate publications.

The information in this booklet supersedes earlier

editions. If you have any questions about the informationin this booklet, or if you want one of the RRB’s publications on Medicare or unemployment and sickness insurance benefits, call the RRB toll-free at 1-877-772-5772.Agency field office representatives will be glad to answeryour questions and explain your benefit rights. Cities withthese offices are listed at the back of this booklet.

In addition, through automated menus available 24

hours a day, you can find the address for the field officeserving your area and listen to special announcementsabout the agency’s benefit programs. You can also requesta replacement Medicare card, a letter showing your currentmonthly benefit rate, a replacement tax statement for the

in accessible formats) should  office. Complaints of alleged 

RB on the basis of disability 

days in writing with the 

on, U. S. Railroad Retirement 

Street, Chicago, Illinois 60611-

ndividual rights under this reg

to the RRB’s Director of Equal 

e address. 

have any comments or sugges

ntation of information in this 

 know. You can fax us at 

us at opa@rrb.gov or write us at 

ublic Affairs, U.S. Railroad 

orth Rush Street, Chicago, IL 
etirement Act and the Railroad

 Act. These programs provide

old age and in the event of disabili

employment and sickness. The

d also administers aspects of the

s administrative responsibilitiesAct and the Internal Revenue Code.

mission, the Railroad Retirement

o the right people, in the right

ner, and will take appropriate action

rs’ trust funds. The Railroad

at every person who comes into con

courtesy and concern, and respond

accurately and clearly.

is illegally receiving RRB benefits; or you wish to report or discuss any other suspected misconduct relating to the RRB, its programs or employees, please contact the Office of Inspector General at: 

Toll-Free Hotline: 1-800-772-4258 U.S. Mail: RRB-OIG Hotline Officer 844 North Rush Street, 4th Floor Chicago, IL 60611-2092 Fax: (312) 751-4342 E-mail: hotline@oig.rrb.gov 

Please review the RRB’s e-mail notice and Internet privacy policy at www.rrb.gov before submitting information 

online. 

Note: Please do not contact the Office of Inspector 

General’s Hotline with questions regarding benefit eligibility requirements, delayed payments or similar issues. These types of matters should be directed to an RRB office. 
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