RAILROAD

RETIREMENT 

and SURVIVOR 

BENEFITS

U.S. Railroad Retirement Board www.rrb.gov
The Railroad Retirement Board’s mission is to administer retirement/survivor and unemployment/sickness 

insurance benefit programs for railroad workers and their 

families under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. These programs provide income protection during old age and in the event of 

disability, death or temporary unemployment and sickness. 

The Railroad Retirement Board also administers aspects of 

the Medicare program and has administrative responsibilities under the Social Security Act and the Internal Revenue 

Code. 

In carrying out its mission, the Railroad Retirement 

Board will pay benefits to the right people, in the right 

amounts, in a timely manner, and will take appropriate action to safeguard our customers’ trust funds. The Railroad 

Retirement Board will treat every person who comes into 

contact with the agency with courtesy and concern, and 

respond to all inquiries promptly, accurately and clearly. 

U.S. Railroad Retirement Board

MISSION STATEMENT
The Railroad Retirement Act is a Federal law that 

provides retirement and disability annuities for qualified 

railroad employees, spouse annuities for their wives or 

husbands, and survivor benefits for the families of deceased 

employees who were insured under the Act. These benefit 

programs are administered by the U.S. Railroad Retirement 

Board (RRB). The RRB also administers the Railroad Unemployment Insurance Act, and has administrative 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 

INTRODUCTION
a replacement Medicare card, a letter showing your current 

monthly benefit rate, a replacement tax statement for the 

most recently completed tax year, or a statement of creditable railroad service and compensation. Information on 

unemployment-sickness claims is also available. 

The services listed above, and others, are also available 

by visiting the RRB’s website at www.rrb.gov, selecting 

“Beneficiaries & RR Employees,” and clicking on “Benefit 

Online Services.” Other online services allow users to get 

annuity estimates, apply for or claim unemployment benefits, claim sickness benefits, view their Railroad Unemployment Insurance Act account statement, and review their 

service and compensation history. In addition, many of the 

RRB’s publications are available for viewing and downloading, as is information about benefit requirements and 

other topics of interest. 

This booklet is issued for the purpose of general 

information. Certain limitations, exceptions, 

and special cases are not covered.
Page 

EMPLOYEE AND SPOUSE ANNUITIES . . . . . . . . . 1

Basic Service Requirement . . . . . . . . . . . . . . . . . . . 1

Age and Service, Disability, and 

 Supplemental Annuities . . . . . . . . . . . . . . . . . . . . 2

Current Connection Requirement . . . . . . . . . . . . . . . . 4

Spouse Annuities . . . . . . . . . . . . . . . . . . . . . . . . 6

Employee and Spouse Annuity Estimates . . . . . . . . . . . . 8

Two-tier Annuities and Dual Benefits . . . . . . . . . . . . . . 9

Employees with Railroad Retirement

and Social Security Benefits . . . . . . . . . . . . . . . 11

Employees with Public, Non-profit, or Foreign Pensions . 12

Workers’ Compensation . . . . . . . . . . . . . . . . . . 13

Spouses with Dual Benefits . . . . . . . . . . . . . . . . . . 13

Social Security Benefits . . . . . . . . . . . . . . . . . . 13

Public Pensions . . . . . . . . . . . . . . . . . . . . . . 14

Employee Annuity . . . . . . . . . . . . . . . . . . . . . 14

Minimum Guaranty for Employee

 and Spouse Annuities . . . . . . . . . . . . . . . . . . . . 14

Cost-of-Living Increases in Employee

 and Spouse Retirement Benefits . . . . . . . . . . . . . . . 15

Working After Retirement . . . . . . . . . . . . . . . . . . . 16

Disability Work Restrictions . . . . . . . . . . . . . . . . 19

When Annuities Stop . . . . . . . . . . . . . . . . . . . . . 20

SURVIVOR BENEFITS 22

Types of Survivor Benefits . . . . . . . . . . . . . . . . . . . 22

Survivor Annuity Estimates . . . . . . . . . . . . . . . . . . 25

Survivor Annuity Tiers . . . . . . . . . . . . . . . . . . . . . 26

Survivors with Dual Benefits . . . . . . . . . . . . . . . . . 27

Social Security Benefits . . . . . . . . . . . . . . . . . . 27

Public Pensions . . . . . . . . . . . . . . . . . . . . . . 27

Employee Annuity . . . . . . . . . . . . . . . . . . . . . 28

CONTENTS
Page 

Cost-of-living Increases in Survivor Annuities . . . . . . . . .28

Work and Earnings Limitations . . . . . . . . . . . . . . . . .29

When Survivor Payments Stop . . . . . . . . . . . . . . . . .30

Lump-sum Death Benefits . . . . . . . . . . . . . . . . . . . 31

Residual Lump-sum Payment . . . . . . . . . . . . . . .32

RETIREMENT AND SURVIVOR INFORMATION 33

Applying for an Annuity . . . . . . . . . . . . . . . . . . . . 33

Monitoring Retirement and Survivor Benefit Payments . . . . 37

Right of Appeal . . . . . . . . . . . . . . . . . . . . . . . . .38

Garnishments/Property Settlements . . . . . . . . . . . . . . .38

If Requirements for Benefits Are not Met . . . . . . . . . . . .38

Railroad Retirement Taxes . . . . . . . . . . . . . . . . . . . 39

Dual Tax Payments . . . . . . . . . . . . . . . . . . . . . . .41

Dual Railroad Retirement-Social Security Taxes . . . . .42

Separation or Severance Payments . . . . . . . . . . . . 42

Federal Income Tax . . . . . . . . . . . . . . . . . . . . . . .43

Service and Earnings Records . . . . . . . . . . . . . . . . . 44

 Military Service . . . . . . . . . . . . . . . . . . . . . .44

Form BA-6 . . . . . . . . . . . . . . . . . . . . . . . . .46

RAILROAD RETIREMENT ANNUITY 

FORMULA COMPONENTS 47

Employee Retirement Annuity . . . . . . . . . . . . . . . . . 47

 Tier I . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

 Tier II . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Amount of Vested Dual Benefit Payment . . . . . . . . .53

Supplemental Annuity Formula . . . . . . . . . . . . . .54

Spouse Annuity . . . . . . . . . . . . . . . . . . . . . . . . .54

 Tier I . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

 Tier II . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Dual Annuities . . . . . . . . . . . . . . . . . . . . . . . . . 58

Survivor Annuity . . . . . . . . . . . . . . . . . . . . . . . . 59

 Tier I . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

 Tier II . . . . . . . . . . . . . . . . . . . . . . . . . . . .61

RRB OFFICES . . . . . . . . . . . . . . . . . . . . . . . . 63
BASIC SERVICE REQUIREMENT

The basic requirement for a regular employee annuity 

is 120 months (10 years) of creditable railroad service or 

60 months (5 years) of creditable railroad service if such 

service was performed after 1995. Service months need not 

be consecutive, and, in some 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. 

EMPLOYEE AND SPOUSE 

ANNUITIES

1
2

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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 age 

and service the first full month they are age 60. Early retirement reductions are applied if the employee first became 

eligible for a 60/30 annuity July 1, 1984, or later and retired 

at ages 60 or 61 before 2002.

 Employees with 10-29 years of creditable service, or 

5-9 years, if at least 5 years were after 1995. They are eligible for regular annuities based on age and service the first 

full month they are age 62. Early retirement annuity reductions are applied to annuities awarded before full retirement 

age, which ranges from age 65 for those born before 1938 

to age 67 for those born in 1960 or later, the same as under 

social security. Reduced annuities are still payable at age 62 

but the maximum reduction will be 30 percent rather than 

20 percent by the year 2022. The tier II portion of an annuity (as defined on page 9) is not reduced beyond 20 percent 

if the employee had any creditable railroad service before 

August 12, 1983. (See pages 49-53 for a detailed explanation of age reductions.) 

An annuity based on age cannot be paid until the employee stops railroad employment, files an application and 

gives up any rights to return to work for a railroad 

employer. 
A DISABILITY ANNUITY can be paid for: 

 Total disability, at any age, if an employee is permanently disabled for all regular work and has at least 10 

years (120 months) of creditable railroad service. Employees with 5-9 years of creditable railroad service, if at least 5 

years were performed after 1995, may qualify for tier I only 

(as defined on page 9) before retirement age on the basis of 

total disability if they also meet certain social security earnings requirements. An age reduced tier II amount would be 

payable at age 62. 

 Occupational disability, at age 60, if an employee 

has at least 10 years of railroad service or at any age if the 

employee has at least 20 years (240 months) of service, 

when the employee is permanently disabled for his or her 

regular railroad occupation. An annuity based on occupational, rather than total, disability also requires a “current 

connection” with the railroad industry. 

A 5-month waiting period beginning with the month 

after the month of the onset of disability is required before 

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. 

Employee and Spouse Annuities

3
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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 entitled 

to receive a railroad retirement age and service or disability 

annuity before a supplemental annuity can be paid. Eligibility is further limited to employees who had at least one 

month of creditable rail service before October 1981.

CURRENT CONNECTION REQUIREMENT

An employee who worked for a railroad in at least 12 

months in the 30 months immediately preceding the month 

his or her railroad retirement annuity begins will meet the 

current connection requirement for a supplemental annuity, occupational disability annuity or the survivor benefits 

described later in this booklet. (If the employee died before 

retirement, railroad service in at least 12 months in the 30 

months before the month of death will meet the current 

connection requirement for the purpose of paying survivor 

benefits.) 

If an employee does not qualify on this basis, but has 

12 service months in an earlier 30-month period, he or she 

may still meet the current connection requirement. This alternative generally applies if the employee did not have any 

4
Employee and Spouse Annuities

regular employment outside the railroad industry after the 

end of the last 30-month period which included 12 months 

of railroad service and before the month the annuity begins 

or the month of death. Full or part-time work for a nonrailroad employer in the interval between the end of the last 

30-month period including 12 months of railroad service 

and the month an employee’s annuity begins, or the month 

of death if earlier, can break a current connection. 

Self-employment in an unincorporated business will not 

break a current connection; however, self-employment can 

break a current connection if the business is incorporated. 

Working for certain U.S. Government agencies--

Department of Transportation, National Transportation 

Safety Board, Surface Transportation Board, National 

Mediation Board, Transportation Security Administration, 

RRB--will not break a current connection. State employment with the Alaska Railroad, as long as that railroad 

remains an entity of the State of Alaska, will not break a 

current connection. Also, railroad service in Canada for a 

Canadian railroad will neither break nor preserve a current 

connection. 

A current connection can also be maintained, for purposes of supplemental and survivor annuities, but not for 

an occupational disability annuity, if the employee completed 25 years of railroad service, was involuntarily terminated without fault from his or her last job in the railroad 

industry, and did not thereafter decline an offer of employment in the same class or craft in the railroad industry, 

5
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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. 

SPOUSE ANNUITIES 

The age requirements for a spouse annuity depend on 

the employee’s age and date of retirement and the employee’s years of railroad service. 

 If a retired employee with 30 years of service is age 

60, the employee’s spouse is also eligible for an annuity the 

first full month the spouse is age 60. Certain early retirement reductions are applied if the employee first became 

eligible for a 60/30 annuity July 1, 1984, or later and retired 

at ages 60 or 61 before 2002. If the employee was awarded 

a disability annuity, has attained age 60 and has 30 years of 

6
Employee and Spouse Annuities

service, the spouse can receive an unreduced annuity the 

first full month she or he is age 60, regardless of whether 

the employee annuity began before or after 2002 as long as 

the spouse’s annuity beginning date is after 2001. 

 If a retired employee with less than 30 years of 

service is age 62, the employee’s spouse is also eligible for 

an annuity the first full month the spouse is age 62. Early 

retirement reductions are applied to the spouse annuity if 

the spouse retires prior to her or his full retirement age. 

Full retirement age for a spouse is gradually rising to age 

67, just as for an employee, depending on the year of birth. 

Reduced benefits are still payable at age 62, but the maximum reduction will be 35 percent rather than 25 percent by 

the year 2022. The tier II portion of a spouse annuity (as 

defined on page 9) is not reduced beyond 25 percent if the 

employee had any creditable railroad service before 

August 12, 1983. 

 A spouse of an employee receiving an age and service annuity (or a spouse of a disability annuitant who 

is otherwise eligible for an age and service annuity) is 

eligible for a spouse annuity at any age if caring for the 

employee’s unmarried child, and the child is under age 18 

or a disabled child of any age who became disabled before 

age 22. 

The employee must have been married to the spouse 

for at least 1 year, unless the spouse is the natural parent of 

their child, the spouse was eligible or potentially eligible 

for a railroad retirement widow(er)’s, parent’s or disabled 

child’s annuity in the month before marrying the employee, 

7
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

or the spouse was previously married to the employee and 

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 a period of at least 10 years immediately before the 

date the divorce became final, 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. Also, 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. 

EMPLOYEE AND SPOUSE ANNUITY ESTIMATES

Railroad employees with RRB online accounts can 

get estimates of future annuities for themselves and their 

spouses by visiting the Benefit Online Services Login 

section of the www.rrb.gov home page. Instructions for 

8
Employee and Spouse Annuities

establishing an online account are available by clicking on 

the link for requesting a Password Request Code (PRC) in 

that same section. The estimates are based on the service 

and earnings records maintained by the RRB and show the 

earliest date the employee can receive a full annuity and, if 

applicable, the earliest date he or she can receive a reduced 

annuity. Employees who want estimates can also contact an 

RRB field office for approximate figures. Each RRB field 

office can furnish estimates for employees with at least 

10 years of railroad service, or 5 years after 1995. It is not 

possible to provide a precise amount if the employee is not 

currently eligible. 

The tables on the next page show (1) fiscal year 2015 

annuity awards to 30-year employees retiring before full 

retirement age and (2) fiscal year 2015 annuity awards to 

employees with an average of less than 30 years of service.

TWO-TIER ANNUITIES AND DUAL BENEFITS

Regular railroad retirement annuities are calculated 

under a two-tier formula. The annuity formula components 

for employees and spouses are described in the section on 

formulas at the back of this booklet. 

The first tier is based on railroad retirement credits and 

any social security credits an employee has acquired. The 

amount of the first tier is calculated using social security 

formulas, but with railroad retirement age and service requirements.

The second tier is based on railroad retirement credits 

(continued on page 11)

9
Average 

award

Average years 

of service

Employee full retirement

age or over $2,559 22.0

Employee full retirement age 

or over and spouse $3,627 23.9

Employee under full retirement 

age with less than 30 years of 

service $1,740 16.0

Employee under full retirement 

age with less than 30 years of 

service and spouse $2,372 16.5

Employee retiring because 

of disability $2,614 21.3

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

Table 2. Fiscal Year 2015 Annuity Awards 

Based on Service Averaging Less than 30 Years 

Average 

award

Average years 

of service

Employee $3,884 37.1

Employee and spouse $5,464 37.3

NOTE.--For employees with at least 25 years of service and a current connection, a supplemental annuity may be payable. The supplemental annuity 

amount 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 1. Fiscal Year 2015 Annuity Awards 

to 30-Year Employees Retiring Before Full Retirement Age

10
Employee and Spouse Annuities

only, and may be compared to the retirement benefits paid 

over and above social security benefits to workers in other 

industries. 

An additional amount may also be payable as part of 

the regular annuity if an employee had at least 120 months 

of railroad service and acquired sufficient quarters of coverage for an insured status under the Social Security Act 

before 1975 and also met certain vesting requirements. 

Employees with Railroad Retirement 

and Social Security Benefits 

If a retired or disabled railroad retirement annuitant is 

also awarded social security benefits, the Social Security 

Administration determines the amount due, but a combined 

monthly benefit payment is issued by the RRB. 

The tier I portion of an employee annuity is based on 

his or her combined railroad retirement and social security 

credits, figured under social security formulas, and approximates what social security would pay if railroad work were 

covered by that system. It is reduced by the amount of any 

actual social security benefit paid on the basis of the employee’s nonrailroad employment in order to prevent a duplication of benefits based on social security covered earnings. The tier I amount is also reduced in the event a social 

security benefit is payable to the employee on the basis of 

another person’s earnings. This reduction follows principles 

of social security law which, in effect, limit payment to the 

higher of any two or more benefits payable to an individual 

at one time. An annuitant is required to advise the RRB if 

any benefits are received directly from the Social Security 

Administration or if those benefits increase other than for a 

cost-of-living increase. 

11
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

If an employee qualified for dual benefits before 1975 

and met certain vesting requirements, he or she can receive an additional annuity amount, which offsets, in part, 

the dual benefit reduction. This additional amount, which 

reflects the dual benefits payable prior to 1975, is called the 

vested dual benefit payment. The vested dual benefit cannot be paid prior to the date the employee could 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 42). 

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, 

12
Employee and Spouse Annuities

on employment not covered by social security or railroad 

retirement after 1956. This may also apply to certain other 

payments not covered by railroad retirement or social 

security, such as from a non-profit organization or from a 

foreign government or a foreign employer, but it does not 

include military service pensions, payments by the Department of Veterans Affairs, or certain benefits payable by a 

foreign government as a result of a totalization agreement 

between that government and the United States. 

Workers’ Compensation 

If an employee is receiving a disability annuity, the 

tier I portion may, under certain circumstances, be reduced 

for receipt of workers’ compensation or public disability 

benefits. 

If an annuitant becomes entitled to any pensions or 

benefits as described above, the RRB must be notified immediately. 

SPOUSES WITH DUAL BENEFITS

Social Security Benefits 

The tier I portion of a spouse annuity is reduced for any 

social security entitlement, regardless of whether the social 

security benefit is based on the spouse’s own earnings, the 

employee’s earnings or the earnings of another person. This 

reduction follows principles of social security law which, 

in effect, limit payment to the higher of any two or more 

benefits payable to an individual at one time. 

13
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

Public Pensions 

The tier I portion of a spouse annuity may also be 

reduced for receipt of any Federal, State, or local government pension separately payable to the spouse based on the 

spouse’s own earnings. The reduction generally does not 

apply if the employment on 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 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 employee and spouse 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 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 

14
Employee and Spouse Annuities

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

intended to cover situations in which one or more members 

of a family would otherwise be eligible for a type of social 

security benefit which is not provided under the Railroad 

Retirement Act. 

For example, social security provides children’s benefits 

when an employee is totally disabled, retired, or deceased. 

The Railroad Retirement Act only provides children’s 

benefits if the employee is deceased. Therefore, if a retired 

rail employee has children who would otherwise be eligible 

for a benefit under social security, the employee’s annuity 

would be increased to reflect what social security would 

pay the family, unless the annuity is already more than that 

amount.

COST-OF-LIVING INCREASES IN EMPLOYEE 

AND SPOUSE RETIREMENT BENEFITS

After retirement, the tier I portions of both employee 

and spouse annuities are generally increased for higher living costs at the same time, and by the same percentage, as 

social security benefits. These increases, effective 

December 1 and included in the January payment, are 

based on the rise in the Consumer Price Index from the 

third quarter of the last year a cost-of-living adjustment 

became effective to the corresponding period of the current year. Generally, if the Index increases by 5 percent, for 

example, the tier I portion increases by 5 percent. Under 

certain circumstances, the increase can be based on average 

national wage increases rather than price increases. 

15
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

If an annuitant is receiving both railroad retirement 

and social security benefits, the increased tier I portion is 

reduced by the increased social security benefit. 

The tier II portions of retired employee and spouse 

annuities are normally increased by 32.5 percent of the 

increase in the Consumer Price Index. 

Tier II cost-of-living increases are generally payable at 

the same time as tier I cost-of-living increases. Vested dual 

benefit payments and supplemental annuities are not increased by these cost-of-living adjustments. 

WORKING AFTER RETIREMENT

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. 

16
Employee and Spouse Annuities

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 and vested dual benefits of these employee and spouse 

annuities are subject to deductions if earnings exceed the 

exempt amounts applicable to social security beneficiaries. Prior to the calendar year in which full social security 

retirement age is attained, the deduction is $1 in benefits for 

every $2 of annual earnings exceeding an exempt amount 

($15,720 in 2016). 

If the employee or spouse has a tier I reduction for 

social security benefits, the tier I benefit is not reduced for 

excess earnings. 

In the first year in which an employee subject to these 

earnings deductions is both entitled to an annuity and has 

a non-work month, full tier I and vested dual benefits can 

be paid for those months in which the employee had low 

earnings or did not have substantial self-employment, no 

matter what total earnings for the year were. A non-work 

month is one in which the employee neither earns over 

1/12 of the annual exempt amount nor has substantial selfemployment. Non-work months can be claimed in only one 

calendar year, which need not necessarily be the first year 

of entitlement.

 In the calendar year in which an individual attains full 

17
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

social security retirement age, deductions of $1 are made in 

tier I and vested dual benefits for every $3 earned in excess 

of an exempt amount ($41,880 in 2016), but only counting 

those earnings in the months prior to the month full retirement age is attained. These tier I and vested dual benefit 

deductions stop effective with the month full retirement age 

is attained. 

Earnings received for services rendered, plus any net 

earnings from self-employment, are considered when assessing deductions for earnings. Interest, dividends, certain 

rental income or income from some stocks, bonds, or other 

investments are not generally considered earnings for this 

purpose. 

Annuitants under full retirement age who work after 

retirement and expect that their earnings for a year will be 

more than the annual exempt amount must promptly notify 

the RRB and furnish an estimate of their expected earnings 

in order to prevent an overpayment and penalties. They 

should also notify the RRB if their original estimate 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 annuity 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. 

18
Employee and Spouse Annuities

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 at least 

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 at least 10 years of railroad service, or 5 years 

after 1995, and both the employee and former spouse are 

age 62.) 

Disability Work Restrictions 

If an annuity is based on disability, there are certain 

work restrictions that can affect payment, depending on 

the amount of earnings. The annuity is not payable for any 

month in which the disabled employee annuitant works for 

an employer covered under the Railroad Retirement Act. 

The annuity is not payable for any month in 2016 in which 

the disabled employee annuitant earns more than $880 

in any employment or net self-employment, exclusive of 

disability-related work expenses. Withheld payments will 

be restored if earnings for the year are less than $11,000 

after deduction of disability-related work expenses. Failure 

to report such earnings could involve a significant penalty 

charge. 

19
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

These disability work restrictions cease upon a disabled 

employee annuitant’s attainment of full retirement age. 

This transition is effective no earlier than full retirement 

age even if the annuitant had 30 years of service. Earnings 

deductions continue to apply to those working for their last 

pre-retirement nonrailroad employer. 

If a disabled employee annuitant works before full 

retirement age, this may also raise a question about the possibility of that individual’s recovery from disability, regardless of the amount of earnings. Consequently, any earnings 

must be reported promptly to avoid overpayments, which 

are recoverable by the RRB and may also include penalties. 

WHEN ANNUITIES STOP

Payment of any annuity stops upon the annuitant’s 

death, and the annuity is not payable for any day in the 

month of death. 

A disability annuity stops after the employee recovers from the disability; it can be reinstated if the disabling 

condition recurs. 

A spouse annuity stops if the employee’s annuity terminates, or the spouse annuity was based on caring for a 

child and the child is no longer under age 18 or disabled 

or the child is no longer in the spouse’s care. However, 

the spouse annuity may continue if she or he is qualified 

without the child or it can resume when the spouse attains a 

qualifying age. 

20
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. 

Employee and Spouse Annuities

21
Annuities are payable to surviving widow(er)s, children 

and certain other dependents. Lump-sum benefits are payable after the death of a railroad employee only if there are 

no qualified survivors of the employee immediately eligible 

for monthly annuities. With the exception of a residual 

lump-sum death benefit, eligibility for survivor benefits depends on whether or not the employee was “insured” under 

the Railroad Retirement Act at the time of death. 

An employee is insured if he or she has at least 10 years 

of railroad service, or 5 years performed after 1995, and 

a “current connection” with the railroad industry as of the 

month the annuity begins or the month of death, whichever 

occurs first. The current connection requirement is described at the beginning of this booklet. 

If a deceased employee was not so insured, jurisdiction 

of any survivor benefits payable is transferred to the Social 

Security Administration and any survivor benefits are paid 

by that agency instead of the RRB. Regardless of which 

agency has jurisdiction, the deceased employee’s railroad 

retirement and social security credits will be combined for 

the purpose of benefit computations. 

TYPES OF SURVIVOR BENEFITS

Annuities are payable to widow(er)s and unmarried 

SURVIVOR BENEFITS

22
children; in certain cases, benefits are also payable to parents, remarried widow(er)s, grandchildren and surviving 

divorced spouses. 

WIDOW(ER)S’ ANNUITIES are payable at: 

 Age 60; age reductions are applied to annuities 

awarded before full retirement age. The eligibility age for 

unreduced annuities is gradually rising from age 65 to age 

67, depending on the year of birth. 

 Ages 50-59 if the widow(er) is totally and permanently disabled and unable to work in any regular employment. 

The disability must have begun within 7 years after the 

employee’s death or within 7 years after the termination 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 or adopted 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 marriage, or the marriage 

was postponed due to State restrictions on the employee’s 

prior marriage and divorce due to mental incompetence or 

Survivor Benefits

23
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. 

A surviving divorced spouse may qualify if she or he 

was married to the employee for a period of at least 10 

years immediately before the date the divorce became final, 

is unmarried or remarried under the conditions described in 

the next paragraph, and is age 60 or older (age 50 or older 

if disabled). A surviving divorced spouse who is unmarried 

can qualify at any age if caring for the employee’s child 

and the child is under age 16 or disabled, in which case the 

10-year marriage requirement does not apply. 

The portion of a survivor annuity equivalent to a social security benefit (tier I) may be paid to a widow(er) or 

surviving divorced spouse who remarries after age 60, or to 

a disabled widow(er) or disabled surviving divorced spouse 

who remarries after age 50; however, remarriage prior to 

age 60 (or age 50 if disabled) would not prevent eligibility 

if such remarriage ends. Such social security level benefits may also be paid to a younger widow(er) or surviving 

divorced spouse caring for the employee’s child who is 

under age 16 or disabled, if the remarriage is to a person 

entitled to railroad retirement or social security benefits or 

the remarriage ends. 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

24
Survivor Benefits

OTHER SURVIVOR ANNUITIES are payable to: 

 An unmarried child under age 18. 

 An unmarried child age 18 in full-time attendance at 

an elementary or secondary school or in approved homeschooling until the student attains age 19 or the end of the 

school term in progress when the student attains age 19. In 

most cases where a student attains age 19 during the school 

term, benefits are limited to the 2 months following the 

month age 19 is attained. These benefits will be terminated 

earlier if the student marries, graduates or ceases full-time 

attendance. 

 An unmarried disabled child over age 18 if the child 

became totally and permanently disabled before age 22. 

 An unmarried dependent grandchild meeting any of 

the requirements described above for a child, if both the 

grandchild’s parents are deceased or found disabled by the 

Social Security Administration.

 A parent at age 60 who was dependent on the employee for at least half of the parent’s support. If the 

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 

25
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 2015, excluding remarried widow(er)s and surviving 

divorced spouses, was $2,019 a month. Children received 

$1,302 a month, on the average. Total family benefits for 

widow(er)s with children averaged $3,751 a month. The 

average annuity awarded to remarried widow(er)s or surviving divorced spouses in fiscal year 2015 was $1,171 a 

month. 

SURVIVOR ANNUITY TIERS

Survivor annuities, like retirement annuities, consist of 

tier I and tier II components. 

Tier I is based on the deceased employee’s combined 

railroad retirement and social security credits, and is generally equivalent to the amount that would have been payable 

under social security. 

Tier II amounts are percentages of the deceased employee’s tier II amount, as described in the section on 

formulas at the back of this booklet. 

Survivor annuity amounts may also be determined 

under certain minimum provisions which guarantee that a 

widow(er)’s annuity will be at least equal to the two-tier 

benefit the deceased employee would have received at the 

time of the award of the widow(er)’s annuity, minus certain reductions including those for age and receipt of social 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

26
Survivor Benefits

security benefits, and no less than the spouse annuity she or 

he was receiving just prior to the employee’s death. 

SURVIVORS WITH DUAL BENEFITS

Social Security Benefits 

The tier I portion is reduced by the amount of any social 

security benefits received by a survivor annuitant, even if 

the social security benefits are based on the survivor’s own 

earnings. This reduction follows the principles of social 

security law which, in effect, limit payment to the higher 

of any two or more benefits payable to an individual at one 

time. When both railroad retirement annuities and social 

security benefits are payable, they are generally combined 

into a single payment issued through the RRB. A survivor 

annuitant must notify the RRB if any benefits are received 

directly from the Social Security Administration or if those 

benefits increase other than for a cost-of-living increase. 

Public Pensions 

The tier I portion of a widow(er)’s annuity may be reduced for receipt of any Federal, State, or local government 

pension based on the widow(er)’s own earnings. The reduction generally does not apply if the employment on 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 

27
2/3 of the amount of the public pension. 

Employee Annuity 

If a widow(er) is entitled to 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 

would be payable to the widow(er). The tier I portion of the 

survivor annuity would be payable only to the extent that it 

exceeds the tier I portion of the employee annuity. 

If both the widow(er) and the deceased employee 

started railroad employment after 1974, the survivor annuity (tier I and tier II) payable to the widow(er) is reduced by 

the full amount of the employee annuity. 

COST-OF-LIVING INCREASES 

IN SURVIVOR ANNUITIES

Cost-of-living increases, effective December 1 and 

included in the January payment, are made on the basis of 

increases in national prices or, in some circumstances, average national wages, and calculated the same way as cost-ofliving increases in employee and spouse annuities. 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

28
Survivor Benefits

However, in the case of widow(er)s’ annuities computed on the basis of the initial minimum amount provided 

under 2001 legislation, the monthly amount will not increase until the amount payable under previous law plus 

subsequent cost-of-living increases is higher than the initial 

minimum amount. 

WORK AND EARNINGS LIMITATIONS 

A survivor annuity is not payable for any month the 

survivor works for an employer covered under the Railroad 

Retirement Act, regardless of the survivor’s age. 

Survivors who are receiving social security benefits 

have their railroad retirement annuity and social security 

benefit combined for earnings limitations purposes. Prior 

to the calendar year in which full retirement age is attained, 

there is a deduction of $1 in benefits for every $2 earned 

over an exempt amount ($15,720 in 2016). The deduction 

is $1 for every $3 earned over an exempt amount ($41,880 

in 2016) for the months in the calendar year in which the 

individual attains full retirement age, up to the month of 

attainment. Work deductions stop effective with the month 

full retirement age is attained. In the first year in which a 

survivor is both entitled to an annuity and has a non-work 

month, a full annuity can be paid for those months in which 

the survivor had low earnings or did not have substantial 

self-employment, no matter what total 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. 

29
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. 

A surviving divorced spouse’s or remarried widow(er)’s 

annuity could stop when entitled to a social security benefit 

which equals or exceeds the deceased employee’s basic 

tier I amount and reduces the annuity amount to zero. 

A widow(er)’s, remarried widow(er)’s, or surviving 

divorced spouse’s annuity which is based on a child in 

care will end if the child is no longer in the person’s care, 

the child’s eligibility ceases, or, in most situations, remarriage occurs. Provided the child in care is not disabled, this 

type of annuity also ends when the child reaches age 18 

(for widow(er)s), or age 16 (for remarried widow(er)s and 

surviving divorced spouses.)

A child’s or grandchild’s annuity will stop if he or she 

marries, reaches age 18 or recovers from the disability upon 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

30
Survivor Benefits

which his or her annuity was based. Similarly, an annuity 

based on a parent’s disability stops if the Social Security 

Administration subsequently determines that the parent is 

no longer disabled. If the child is 18 and a full-time elementary or high school student, the annuity stops when full-time 

attendance ceases, at graduation, or upon attainment of age 

19. In most cases, when a student attains age 19 during the 

school term, benefits are extended to the 2 months following 

the month age 19 is attained. 

An annuity will stop if it was based on disability and 

the beneficiary recovers from the disability before age 60. 

A disability annuity can be reinstated if the disability recurs 

within 7 years and the widow(er) is still under age 60. 

A parent’s survivor annuity may stop upon remarriage; in 

certain cases a remarried parent is entitled to a tier I benefit. 

Any of the above occurrences must be reported promptly 

to the RRB in order to prevent an overpayment. 

LUMP-SUM DEATH BENEFITS

A lump-sum death benefit is payable to certain survivors 

of an employee with 10 or more years of railroad service, 

or less than 10 years if at least 5 years were after 1995, and 

a current connection with the railroad industry if there is no 

survivor immediately eligible for a monthly annuity upon the 

employee’s death. 

If the employee did not have 10 years of service before 

1975, the lump sum is limited to $255 and is payable only to 

the widow(er) living in the same household as the employee 

at the time of the employee’s death. 

31
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 $1,014 in fiscal year 2015. 

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. 

The average for all types of lump sums was $927 in fiscal 

year 2015. 

Residual Lump-sum Payment 

The railroad retirement system also provides, under 

certain conditions, a residual lump-sum death benefit which 

ensures that a railroad family receives at least as much in 

benefits as the employee paid in railroad retirement taxes 

before 1975. This benefit is, in effect, a refund of an employee’s pre-1975 railroad retirement taxes, after subtraction of any benefits previously paid on the basis of the 

employee’s service. This benefit is seldom payable.

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

32
APPLYING FOR AN ANNUITY

Applications for railroad retirement or survivor benefits are generally filed at one of the RRB’s field offices, 

with a traveling RRB representative at a customer outreach 

program service location, or by telephone 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 with RRB online accounts can 

get estimates of their future annuities over the Internet, by 

33

RETIREMENT AND SURVIVOR

INFORMATION
visiting the Benefit Online Services Login section of the 

www.rrb.gov home page. Instructions for establishing an 

online account are also available by clicking on the link for 

requesting a Password Request Code (PRC) in that same 

section. 

Persons applying for railroad retirement benefits are 

required to enroll in either the Direct Deposit Program, 

which electronically transfers payments into an individual’s checking or savings account, or the U.S. Department 

of the Treasury’s Direct Express program, which electronically transfers Federal payments to an individual’s Direct 

Express-issued Debit MasterCard®. Enrollment waivers are 

available only under very limited conditions. 

Applicants for railroad retirement and survivor benefits can check with an RRB field office as to when they can 

expect their first payment. Customer service standards and 

progress reports are available in field offices and online at 

www.rrb.gov. 

To expedite filing, applicants should contact an RRB 

field office for a pre-retirement consultation. Certain documents are required when filing a railroad retirement annuity application, such as: 

For Employees and Spouses: 

 Proof of an employee’s age. 

 Proof of any military service. 

 Proof of marriage if the spouse is eligible or will 

shortly become eligible for a spouse annuity. A divorced 

spouse must furnish proof of divorce from the employee.

34

RAILROAD RETIREMENT AND SURVIVOR BENEFITS
 Retirement and Survivor Information

 Proof of the spouse’s or divorced spouse’s age. 

 Proof of a child’s relationship and age, if the spouse 

is applying for an annuity based on caring for the employee’s child. 

 Notice of any social security benefit award or other 

social security claim determination. 

 Information about any public service pension for 

which the applicant qualifies. 

 Banking information for Direct Deposit of benefit 

payments. 

 Supporting medical evidence if applying for a disability annuity. 

The best proof of age is a certified copy of a civil or 

church document recorded at or close to the time of birth. 

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 

35
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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. 

The retroactivity of a retirement annuity application is 

limited to 1 year for disability annuities and 6 months for 

full age annuities. There is generally no retroactivity for 

reduced age annuities. 

Any social security benefits due the retired employee or 

family member which begin after 1974 are paid through the 

RRB. Even though the RRB processes payment, the Social 

Security Administration is responsible for all adjudication. 

For Survivors: 

 A widow(er) must furnish proof of age, proof of 

marriage and proof of the employee’s death. A surviving 

divorced spouse must furnish proof of divorce from the employee. If applying for a disability annuity, the widow(er) 

must also provide supporting medical evidence. A parent 

must furnish proof of relationship to the employee and 

proof of support from the employee. 

 If children are eligible for benefits, proof of the 

36
Retirement and Survivor Information

relationship and age of each child is needed. If a child is 

over age 18 and disabled, supporting medical evidence is 

required. Eighteen-year-old students must provide proof of 

full-time elementary or high school attendance. A stepchild 

of the employee must furnish proof of dependency on the 

employee. 

Retroactivity of a survivor annuity application is 1 year 

for disabled widow(er)s and 6 months for full retirement 

age widow(er)s, mothers (fathers), children and parents. 

Retroactivity for widow(er)s ages 60-61 is 6 months if it 

does not increase the age reduction, although this does not 

apply to surviving divorced spouses or remarried 

widow(er)s. Otherwise, there is generally no retroactivity 

for reduced age widow(er)s’ annuities. Lump-sum death 

benefit applications must be filed within 2 years after the 

death of the employee. There is no time limit on filing for a 

residual payment. 

MONITORING RETIREMENT AND 

SURVIVOR PAYMENTS

Under several monitoring programs now in effect, the 

RRB maintains contact with retirement and survivor 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. 

37
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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., garnishment) 

to enforce an obligation for child support and/or alimony 

payments. 

Property Settlements 

Employee tier II benefits, vested dual benefits and supplemental annuities are subject to court-ordered property 

settlements in proceedings related to divorce, annulment or 

legal separation. Tier I benefits are not subject to property 

settlements. 

IF REQUIREMENTS FOR BENEFITS ARE NOT MET

Retirement annuities are not payable by the RRB unless the employee has 60 months of creditable service after 

38
Retirement and Survivor Information

1995 or 120 months of service at any time. Service includes 

any creditable military service. 

Survivor annuities are not payable unless the employee had a current connection with the railroad industry and 

either 60 months of creditable service after 1995 or 120 

months of service at any time. 

In either of the above circumstances, if the requirements are not met, the employee’s railroad retirement 

credits are transferred to the Social Security Administration 

and treated as social security credits. Benefits paid by that 

agency would accordingly take into account both railroad 

and social security covered earnings. 

The Railroad Retirement Act does not allow a former 

railroad employee to withdraw his or her retirement taxes. 

Like social security taxes, railroad retirement taxes are not 

refundable unless retirement tax withholding has exceeded 

annual maximums. 

RAILROAD RETIREMENT TAXES

By law, railroad retirement tier I payroll taxes are 

coordinated with social security taxes and increase automatically when social security taxes rise. Employees and 

employers pay tier I taxes which are the same as social 

security taxes. In addition, both employees and employers 

pay tier II taxes to finance railroad retirement benefit payments over and above social security levels. 

39

(continued on page 41)
40

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

Tax rate

Maximum 

annual 

taxable 

earnings

Tier I

Employees & employers 7.65%* $118,500

Tier II

Employees 

Employers

 4.90%

13.10%

$88,200

$88,200

Annual regular taxes

on employees earning $118,500

 Tier I Tier II Total

Employees $9,065.25 $4,321.80 $13,387.05

Employers $9,065.25 $11,554.20 $20,619.45

* The tier I tax rate is divided into 6.20 percent for railroad retirement and 

1.45 percent for Medicare hospital insurance. The 2016 maximum earnings base 

for railroad retirement is $118,500, and the Medicare hospital insurance tax is 

applied to all earnings. Consequently, employee and employer contributions 

continue to be made at the 1.45 percent rate, even after the employee has earned 

$118,500. An additional 0.9 percent in hospital insurance taxes (2.35 percent in 

total) applies to on an individual’s income exceeding $200,000, or $250,000 for a 

married couple filing a joint tax return. While employers will begin withholding the 

additional Medicare tax as soon as an individual’s wages exceed the $200,000 

threshold, the final amount owed or refunded will be calculated as part of the 

individual’s Federal income tax return. 

Table 3. 2016 Regular Railroad Retirement Taxes
41

Retirement and Survivor Information

The tier I tax on employees and employers is 7.65 percent in 2016. The tier II tax on employees is 4.90 percent, 

while the tier II tax rate on rail employers, rail labor organizations and rail employee representatives is 13.10 percent 

in 2016. An employee representative is a labor official of a 

noncovered labor organization who represents employees 

covered under the Acts administered by the RRB. 

The ratio of certain asset balances to the sum of benefits 

and administrative expenses (the average account benefits 

ratio) determines tier II taxes on employers and employees. 

Depending on the average account benefits ratio, tier II 

taxes for employers range between 8.20 percent and 22.10 

percent, while the tier II tax rate for employees is between 

0 and 4.90 percent. 

Railroad retirement taxes apply to earnings on an annual basis. The amounts of earnings subject to these taxes are 

determined annually on the basis of national wage levels. 

DUAL TAX PAYMENTS

Since 1975, railroad employees who also worked for 

a social security covered employer in the same year may, 

under certain circumstances, receive a tax credit equivalent 

to any excess social security taxes withheld. 

Employees who worked for two or more railroads in a 

year, or who had tier I taxes withheld from their RRB sickness insurance benefits in addition to their railroad earnings, may be eligible for a tax credit of any excess tier I or 

tier II railroad retirement taxes withheld. Employees who 

had tier I taxes withheld from their supplemental sickness 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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 employee should die 

before receiving the refund, payment will be made to the 

employee’s survivors. 

Separation or Severance Payments 

A lump sum, approximating railroad retirement tier II 

payroll taxes deducted from separation or severance payments, may be paid upon retirement to employees meeting 

minimum service requirements, or their survivors, to the 

extent the separation or severance payments did not yield 

additional railroad retirement service or earnings credits. 

42
The lump-sum provision applies to separation and severance payments made after 1984. 

FEDERAL INCOME TAX ON 

RAILROAD RETIREMENT BENEFITS

The tier I portion of a railroad retirement annuity that is 

actually equivalent to a social security benefit is treated as 

a social security benefit for Federal income tax purposes. 

Depending on the amount of other income received in the 

taxable year, a portion of these benefit payments may be 

subject to Federal income tax. 

Tier I benefits exceeding social security benefits, such 

as retirement benefits payable between ages 60 and 62, and 

many occupational disability annuities, plus the tier II portion of railroad retirement annuities, vested dual benefits, 

and supplemental annuities paid by the RRB are treated 

like private pensions for Federal income tax purposes. The 

Railroad Retirement Act specifically exempts benefits paid 

by the RRB from State and local income tax. 

The RRB and the Social Security Administration issue 

tax information statements to annuitants each January. In 

the absence of a request not to withhold, taxes are withheld 

from U.S. citizens or residents whose railroad retirement 

benefits in excess of the social security equivalent level 

total more than certain annual threshold amounts. Any 

amounts withheld during the taxable year are reflected on 

the annual statements. 

Retirement and Survivor Information

43
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

SERVICE AND EARNINGS RECORDS

The RRB maintains a record of all covered railroad 

service and creditable earnings after 1936. The information 

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. 

Military Service 

Military service may be credited towards retirement 

benefits under certain conditions. To be creditable as com44
 Retirement and Survivor Information

pensation under the Railroad Retirement Act, service in the 

U.S. Armed Forces must be preceded by railroad service in 

the same or preceding calendar year. With the exceptions 

noted, the employee must also have entered active military 

service when the United States was at war or in a state of 

national emergency or have served in the Armed Forces 

involuntarily. 

The war and national emergency periods are: 

 September 8, 1939, to June 14, 1948. 

 December 16, 1950, to September 14, 1978. 

 August 2, 1990, to date as yet undetermined. 

If military service began during a war or national emergency period, any active duty service the employee was 

required to continue in beyond the end of the war or national emergency is creditable, except that voluntary service 

extending beyond September 14, 1978, is not creditable. 

Railroad workers who voluntarily served in the Armed 

Forces between June 15, 1948, and December 15, 1950, 

when there was no declared national state of emergency, 

can be given railroad retirement credit for their military 

service if they performed railroad service in the year they 

entered or the year before they entered military service, 

and if they returned to rail service in the year their military 

service ended or in the following year and had no intervening nonrailroad employment. 

Veterans should contact the RRB well in advance of 

retirement regarding required proof of military service. 

45
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

Form BA-6 

Each year, employees receive a Certificate of Service 

Months and Compensation (Form BA-6) from the RRB. 

This statement provides a current and cumulative record 

of railroad service and compensation. It includes deemed 

service months, separation allowances and severance 

payments as well as miscellaneous compensation, such 

as taxable 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 with RRB online accounts can also view 

their individual records via the agency’s website. This service, called “View Service & Compensation History,” can 

be accessed by visiting the Benefit Online Services Login 

section of the www.rrb.gov home page. 

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 - CESC

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, IL 60611-1275

46
The following describes railroad retirement annuity 

formula components as applied to new awards. The costof-living adjustments applied to annuities are described in 

previous pages of this booklet. 

EMPLOYEE RETIREMENT ANNUITY

The amount of a regular annuity is the total of portions 

which are computed separately under different formulas 

and called tiers, plus any vested dual benefit payment also 

due. 

TIER I

The first tier is calculated in generally the same way as 

a social security benefit. Any social security credits of an 

employee are combined with his or her railroad retirement 

credits for tier I computation purposes. 

In computing tier I, an employee’s creditable earnings 

are adjusted to take into account the changes in wage levels 

over a worker’s lifetime. This procedure, called indexing, 

increases creditable earnings from past years to reflect average national wage levels just prior to the employee’s first 

year of eligibility. The adjusted earnings are used to calculate “average indexed monthly earnings,” and a formula is 

applied to determine the gross tier I amount. 

47

RAILROAD RETIREMENT 

ANNUITY FORMULA 

COMPONENTS
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

For those first eligible in 2016, the gross tier I is equal 

to: 

 90 percent of the first $856 of average indexed monthly earnings, plus

 32 percent of the amount of these earnings over $856 

up to $5,157, plus

 15 percent of these earnings in excess of $5,157. 

For employees with less than 10 years of railroad service, tier I benefits are calculated only if the employee has 

at least 5 years of service after 1995 and an “insured 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 by a certain percentage for 

each month an employee delays retirement past full retirement age, up until age 70. For those born January 2, 1943, 

or later, the delayed retirement credit is 2/3 of 1 percent per 

month (8 percent per year). Those born prior to January 2, 

1943, earn a lesser percentage credit. 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. 

48
Age reductions 

For employees retiring between age 62 and full retirement age with less than 30 years of service, age reductions 

are applied separately to the components of an annuity. As 

mentioned earlier, the full retirement age is gradually rising 

from 65 to 67, depending on the year of birth (see Table 4 

on page 50). The maximum annuity reduction for retirement at age 62 is gradually increasing from 20 percent to 

30 percent. This does not affect those who retire at ages 60 

or 61 with 30 years of service. 

The full retirement age for employee and spouse benefits increases from 65 to 66 and from 66 to 67 at the rate 

of two months per year over two separate 6-year periods. 

These changes also affect how reduced benefits are computed for early retirement. The increase in full retirement 

age from age 65 to age 66 affects those people who were 

born in the years 1938 through 1942. The full retirement 

age will remain at age 66 for people born in the years 1943 

through 1954. The increase in full retirement age from age 

66 to age 67 affects those who were born in the years 1955 

through 1959. For people who were born in 1960 or later 

the full retirement age will be age 67. 

Reduced benefits continue to be available but at greater 

reductions. The early-retirement reduction factor for an 

employee is 1/180 for each of the first 36 months of the 

reduction period regardless of the age of initial entitlement 

and decreases to 1/240 for each month (if any) over 36, as 

mentioned earlier. This will result in a gradual increase in 

the reduction at age 62 to 30 percent for an employee once 

the age 67 retirement age is in effect. 

49

Railroad Retirement Annuity Formula Components
50

Year of birth Full retirement 

 age

 Annuity 

 reduction 

 at age 62

1937 or earlier 65 20.00%

1938 65 and 2 months 20.833%

1939 65 and 4 months 21.667%

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%

Table 4. Employee Retiring with

Less than 30 Years of Service

RAILROAD RETIREMENT AND SURVIVOR BENEFITS

If an employee has less than 10 years of railroad service 

and is already entitled to an age-reduced social security 

benefit, the age reduction in his or her tier I will be based 

on the age reduction applicable on the beginning date of the 

employee’s social security benefit, even if the 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 
51

Railroad Retirement Annuity Formula Components

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 amount is frozen 

until the first month throughout which the employee is age 

62. It is then recomputed to reflect interim increases in 

national wage levels and will become subject to future costof-living increases. There is no reduction if the employee 

retired at age 62 or older with 30 years of service, or at age 

60 with 30 years of service and retirement is after 2001.

Workers’ compensation or public disability benefit 

reductions 

For employees who are under age 65 and receiving a 

disability annuity, the tier I amount is, under certain circumstances, reduced for receipt of workers’ compensation 

or public disability benefits. 

Social security reductions 

After any required age reduction, the tier I amount is 

reduced by the amount of any social security benefits also 

payable but not to an amount below zero. 

Reductions for public, non-profit or foreign pensions 

For employees who attain eligibility for both tier I 

benefits and certain government pension or other payments 

after 1985, a reduction may be required for receipt of a 

public pension based, in part or in whole, on employment 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

not covered by railroad retirement or social security after 

1956. This also applies to payments from a non-profit organization or from certain foreign governments or employers. 

Usually, an employee’s tier I benefit will not be reduced 

by more than 1/2 of his or her pension from noncovered 

employment. However, if the employee is under age 65 and 

receiving a disability annuity, the tier I benefit may be reduced by an added amount if the pension from noncovered 

employment is a public disability benefit. 

TIER II

The second tier of a regular annuity is computed under 

a separate formula, and is based on railroad service alone. 

Tier II benefits are equal to seven-tenths of 1 percent of the 

product which is obtained by multiplying an individual’s 

years of service by such individual’s average monthly 

compensation using the tier II tax base in the 60 months of 

highest earnings. The tier II component is reduced by 25 

percent of any gross employee vested dual 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 

(if any). 

Full retirement age is gradually rising as mentioned 

earlier. However, if an employee had any creditable railroad 

52
Railroad Retirement Annuity Formula Components

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. 

Amount of Vested Dual Benefit Payment 

To determine this additional annuity amount for a retired 

employee meeting the vesting requirements, the RRB computes a social security benefit based solely on the individual’s 

railroad service before 1975, and a social security benefit 

based solely on social security covered earnings before 1975. 

The vested dual benefit is the amount by which the total of 

these two computations exceeds a social security benefit 

based on combined railroad and social security covered earnings before 1975. 

The vested dual benefit is increased by the cumulative 

cost-of-living percentage increases applicable to tier I benefits 

that occurred between January 1, 1975, and the date of retirement or January 1, 1982, whichever was earlier. The computed amount is then frozen; that is, no further cost-of-living 

increases are applied thereafter. The amount of any vested 

dual benefit due is added to the tier portions and paid as part 

of the regular annuity. 

The same age reduction applied to the tier I component is 

applied to the vested dual benefit component of an annuity for 

53
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

those employees retiring before full retirement age with less 

than 30 years of service. 

Supplemental Annuity Formula

The amount of a supplemental annuity awarded after 

1974 is equal to $23 plus $4 for each year of service over 

25, up to a maximum of $43. A fraction of $4 is added for 

each fractional year of service.

If a retired employee also receives a private pension 

paid for entirely or in part by a railroad, the supplemental 

annuity is subject to reduction. The reduction is equal to 

the amount of the pension that is based on the employer’s 

contributions. The reduction applies whether the employee 

receives a monthly pension or elects a lump sum instead 

of a monthly pension. There is no reduction for any part of 

a private pension based on the employee’s own contributions. If the employer reduces the private pension because 

of the supplemental annuity, the amount of the reduction is 

restored to the supplemental annuity, but not over the $43 

maximum. There is no reduction to the supplemental annuity for a pension paid 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. 

54
Railroad Retirement Annuity Formula Components

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 35 percent for 

a spouse once the age 67 retirement age is in effect. If an 

employee has less than 10 years of railroad service and the 

spouse is already entitled to an age-reduced social security 

benefit, the age reduction in her or his tier I will be based 

on the age reduction applicable on the beginning date of the 

spouse’s social security benefit, even if the spouse is already of full retirement age on the beginning date of her or 

his railroad retirement annuity. 

December 2001 legislation eliminated the tier I age reduction for employees ages 60 or 61 with 30 or more years 

of service whose railroad retirement annuities begin 

January 1, 2002, or later. The spouses of these employees 

are also eligible for full annuities at age 60. 

Age reductions required for spouses of employees with 

30 years of service who attained 60/30 eligibility after June 

1984 but whose annuities began before January 2002 are 

applied only to the tier I portion of the spouse annuity. If 

the employee attained 60/30 eligibility before July 1984, 

55
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

retired at age 62 with 30 years of service or begins receiving an annuity at ages 60 or 61 after 2001 with 30 years 

of service, the spouse tier I portion is not subject to these 

reductions. 

If the employee’s annuity is subject to 60/30 age reductions, the spouse of such an employee may receive a 

reduced tier I benefit, unless the spouse is already of full 

retirement age. 

In reduced 60/30 spouse cases, the tier I benefit is equal 

to 1/2 of the employee’s reduced tier I on the employee’s 

annuity beginning date and is also frozen until the first full 

month throughout which both the employee and spouse are 

age 62. Then it is recomputed based on 1/2 of the employee’s age 62 gross tier I amount and reduced for each month 

the spouse is under full retirement age at that time. If at the 

time of recomputation the spouse is already at full retirement age, or the spouse has a minor or disabled child in 

care, no age reduction would apply. 

The spouse of a disability annuitant who is otherwise 

eligible for a 60/30 age annuity receives an age reduction if 

the spouse’s annuity beginning date was before 2002. If the 

spouse’s annuity beginning date is January 1, 2002, or 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 re56
Railroad Retirement Annuity Formula Components

duced 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 erase the tier I 

benefit amount otherwise payable to a spouse, they do not 

affect the tier II benefit potentially payable to that spouse. 

Divorced spouse 

The annuity of a divorced spouse is limited to the tier I 

amount and thus equal to what social security would pay.

TIER II

The spouse tier II amount, before any applicable reductions, is 45 percent of the employee’s unreduced tier II 

amount. If the employee is awarded a vested dual benefit, 

the employee tier II amount used in computing the spouse 

benefit is the amount after the 25 percent reduction for the 

employee’s vested dual benefit entitlement. 

Age reductions 

As mentioned earlier, age reductions are gradually increasing. The tier II age reduction for spouses of employees 

57
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

retiring with less than 30 years of service is 1/144 for each 

of the first 36 months the spouse is under full retirement 

age when her or his annuity begins and decreases to 1/240 

for each month (if any) over 36. However, if a railroad employee had any creditable railroad service before 

August 12, 1983, the employee and spouse retirement age 

for tier II purposes remains age 65. Age reductions are not 

applied to spouse annuities based on the spouse’s caring for 

a child.

DUAL ANNUITIES 

If both the employee and spouse are railroad employees 

and either one had some railroad service before 1975, the 

spouse tier I amount is reduced by the amount of the railroad employee tier I to which the spouse is entitled and that 

initial reduction is restored in the spouse tier II amount. The 

spouse tier I amount cannot be reduced below zero. 

If a spouse is also a railroad employee annuitant and 

both the employee and spouse 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. 

A spouse who is also entitled to a survivor annuity on 

a different earnings record will receive only the higher 

benefit. 

58
Railroad Retirement Annuity Formula Components

SURVIVOR ANNUITY

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. 

The tier I benefit for surviving aged or disabled 

widow(er)s, remarried widow(er)s and surviving divorced 

spouses is based on “average indexed monthly earnings.” 

If the annuity begins a year or more after the employee’s 

death, and the employee died before age 62, the RRB can 

recalculate this indexed amount using a later year if it 

would result in a higher benefit. The recalculation considers 

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 earnings levels at the time of the survivor’s eligibility, rather 

than the time of the employee’s death. 

A widow(er), surviving divorced spouse or remarried 

widow(er) whose annuity begins at full retirement age or 

later receives the full tier I amount unless the deceased 

employee received an annuity that was reduced for early 

59
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

retirement. The eligibility age for a full widow(er)’s annuity is gradually rising from 65 to 67. The maximum age 

reductions will range from 17.1 percent to 20.36 percent, 

depending on the widow(er)’s date of birth. For a surviving divorced spouse or remarried widow(er), the maximum 

age reduction is 28.5 percent. For a disabled widow(er), 

disabled surviving divorced spouse or disabled remarried 

widow(er), the maximum reduction is 28.5 percent, even if 

the annuity begins at age 50. 

A widow(er) or surviving divorced spouse whose eligibility is based on caring for a child of the employee 

receives 75 percent of the full tier I amount. Benefits to 

a surviving divorced spouse end when the child is 16. 

An eligible child also receives 75 percent of the full tier I 

amount. The total amount the family can receive is subject 

to a maximum (usually applicable if there are three or more 

family members, not counting aged or disabled surviving 

divorced spouses, entitled to survivor annuities). 

A dependent parent can receive 82.5 percent of the 

full tier I amount, but if both parents are eligible, the total 

amount cannot be more than 150 percent of the full tier I 

amount. 

Dual benefit reduction 

The tier I amount previously described is reduced by 

the amount of any social security benefit or by the tier I 

amount of any railroad retirement employee annuity the 

survivor also receives. In the case of a widow or dependent widower who is also a railroad employee annuitant, and 

either the widow(er) or the deceased employee had 120 

60
Railroad Retirement Annuity Formula Components

months of railroad service before 1975, the tier I reduction 

may be partially restored in the survivor tier II amount. If 

either the deceased employee or the widow(er) had some 

railroad service before 1975 but less than 120 months, the 

survivor tier I portion is payable only to the extent that it 

exceeds the tier I portion of the widow(er)’s own employee 

annuity. 

If a widow(er) qualifies for a railroad retirement employee annuity and neither the widow(er) nor the deceased 

employee had any railroad service before 1975, the survivor annuity payable to the widow(er) is reduced by the total 

amount of the widow(er)’s 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. 

61
RAILROAD RETIREMENT AND SURVIVOR BENEFITS

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 

not increase until such time as the widow(er)’s annuity, as 

computed under prior law with all interim cost-of-living increases otherwise payable, exceeds the widow(er)’s annuity 

computed under the initial minimum amount formula. 

The initial minimum amount provision applies to all 

widow(er)s whose annuities begin February 1, 2002, or later, and to some, but not all, widow(er)s on the rolls before 

that date. If, because of previous cost-of-living adjustments, 

annuities awarded before February 2002 were already 

higher than the annuity that would be payable under the 

December 2001 legislation, the provision did not apply. 

In most cases, the same age reductions that apply to 

tier I amounts also apply to tier II amounts. 

Other survivors 

Each child receives 15 percent of the deceased employee’s tier II amount, and each surviving parent receives 

35 percent. The minimum total tier II amount payable to a 

family is 35 percent of the employee’s tier II amount, and 

the maximum, 130 percent. 

A tier II benefit is not provided for a surviving divorced 

spouse or a remarried widow(er). However, partition payments may be extended to surviving former spouses pursuant to divorce agreements. A tier II benefit is not payable 

to surviving parents if other family members may receive 

benefits or if the parent has remarried. 

62
63

OFFICES OF THE 

U.S. RAILROAD RETIREMENT BOARD

At the present time, offices of the RRB are located in the 

following cities. Their addresses are listed in telephone 

directories with other U.S. Government agencies. They are 

also available by calling the RRB toll-free at 1-877-772-5772 

or by visiting the agency’s website at www.rrb.gov. RRB 

offices are open to the public from 9:00 a.m. to 3:30 p.m. 

Monday through Friday, except on Federal holidays. 

ALABAMA

Birmingham

ARIZONA

Mesa

ARKANSAS

Little Rock

CALIFORNIA

Covina

Oakland

Roseville

COLORADO

Denver

FLORIDA

Jacksonville

Tampa

GEORGIA

Atlanta

ILLINOIS

Chicago

Decatur

Joliet

INDIANA

Indianapolis

IOWA

Des Moines

KANSAS

Wichita

KENTUCKY

Louisville

LOUISIANA

New Orleans

MARYLAND

Baltimore

MASSACHUSETTS

Boston

MICHIGAN

Detroit

MINNESOTA

Duluth

St. Paul

MISSOURI

Kansas City

St. Louis

MONTANA

Billings

NEBRASKA

Omaha

NEW JERSEY

Newark

NEW MEXICO

Albuquerque

NEW YORK

Albany

Buffalo

Central Islip

New York

NORTH CAROLINA

Charlotte

NORTH DAKOTA

Fargo

OHIO

Cincinnati

Cleveland

OREGON

Portland

PENNSYLVANIA

Altoona

Harrisburg

Philadelphia

Pittsburgh

Scranton

TENNESSEE

Nashville

TEXAS

Fort Worth

Houston

UTAH

Salt Lake City

VIRGINIA

Richmond

Roanoke

WASHINGTON

Bellevue

Spokane

WEST VIRGINIA

Huntington

WISCONSIN

Milwaukee
64

Under Section 504 of the Rehabilitation Act of 1973 

and RRB regulations, no qualified person may be discriminated against on the basis of disability. The RRB’s 

programs and activities must be accessible to all qualified 

applicants and beneficiaries, including those with impaired 

vision and/or hearing. Individuals with disabilities needing 

assistance (including auxiliary aids or program information in accessible formats) should contact the nearest RRB 

office. Complaints of alleged discrimination by the RRB 

on the basis of disability must be filed within 90 days in 

writing with the Director of Administration, U. S. Railroad 

Retirement Board, 844 North Rush Street, Chicago, Illinois 

60611-1275. Questions about individual rights under this 

regulation may be directed to the RRB’s Director of Equal

Opportunity at the above address. 

COMMENTS? If you have any comments or 

suggestions regarding the presentation of information 

in this publication, please let us know. You can fax 

us at 1-312-751-7154, e-mail us at opa@rrb.gov, or 

write us at the following address: Public Affairs, 

U.S. Railroad Retirement Board, 844 North Rush 

Street, Chicago, IL 60611-1275.

NON-DISCRIMINATION ON THE BASIS

OF DISABILITY
The RRB’s Office of Inspector General established its 

Hotline as a public service. The Hotline provides individuals with a means to report or discuss any suspected misconduct relating to the RRB, its programs or employees. 

If you believe a doctor, hospital, or other health care 

provider is billing Medicare for services not provided or 

for unnecessary medical procedures or supplies; someone 

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 60611-1275 

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. 

FRAUD, WASTE, AND ABUSE HOTLINE

1-800-772-4258
www.rrb.gov

Chicago, Illinois 60611-1275844 North Rush Street U.S. RAILROAD RETIREMENT BOARD

ADDRESS SERVICE REQUESTED

 THIRD CLASS

February 2016IB-2 PENALTY FOR PRIVATE USE, $300 OFFICIAL BUSINESS