U.S. Railroad Retirement Board
 

R A I L R O A D

RETIREMENT

and SURVIVOR 

BENEFIT S
U.S. Railroad Retirement Board 

MISSION STATEMENT 

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. 
INTRODUCTION
 

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. The U.S. Railroad Retirement Board (RRB) administers 

these benefit programs, as well as 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. Field office representatives can provide you 

with informational materials, explain your rights, and answer any 

questions you may have. Cities with these offices are listed on 

page 54 of this booklet. 

In addition, through automated menus available 24 hours a day, 

you can find the address for the field office serving your area and 

listen to special announcements about the agency’s benefit programs. You can also request a replacement Medicare card, a letter 

showing your current monthly benefit rate, a duplicate 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 available through 

Benefit Online Services at RRB.gov. Employees with online accounts can log in to use web-based features for obtaining annuity estimates, applying for or claiming unemployment benefits, 
claiming sickness benefits, viewing their Railroad Unemployment 

Insurance Act account statement, and reviewing their service and 

compensation history. All RRB publications covering benefits and 

other related topics are available at RRB.gov under the Benefits 

tab. 

This booklet is issued for the purpose of general 

information. Certain limitations, exceptions, 

and special cases are not covered. 
 

 

 

 

 

 

 

 

 

 

 

 

 

Page 

EMPLOYEE AND SPOUSE ANNUITIES

Service and Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . 1

- Military Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

- Service and Earnings Records . . . . . . . . . . . . . . . . . . . . 3

Employee Annuities . . . . . . . . . . . . . . . . . . . . . . . . . . 4

- Age and Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

- Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

- Supplemental Annuities . . . . . . . . . . . . . . . . . . . . . . . 6

Current Connection Requirement . . . . . . . . . . . . . . . . . . . 7

Spouse Annuities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Employee and Spouse Annuity Estimates . . . . . . . . . . . . . . . 10

Two-Tier Annuities and Dual Benefits. . . . . . . . . . . . . . . . . 12

- Employees with Railroad Retirement and Social Security. . . . . . 13

- Employees with Public, Non-Profit, or Foreign Pensions . . . . . . 14

- Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . 14

Spouses with Dual Benefits . . . . . . . . . . . . . . . . . . . . . . 15

- Social Security Benefits . . . . . . . . . . . . . . . . . . . . . . . 15

- Public Pensions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

- Employee Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Minimum Guaranty for Employee and Spouse Annuities. . . . . . . 16

Cost-of-Living Increases. . . . . . . . . . . . . . . . . . . . . . . . 16

Working After Retirement . . . . . . . . . . . . . . . . . . . . . . . 17

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

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

SURVIVOR BENEFITS

Types of Survivor Benefits. . . . . . . . . . . . . . . . . . . . . . . 21

Survivor Annuity Estimates . . . . . . . . . . . . . . . . . . . . . . 24

Survivor Annuity Tiers. . . . . . . . . . . . . . . . . . . . . . . . . 24

Survivors with Dual Benefits . . . . . . . . . . . . . . . . . . . . . 25

- Social Security Benefits . . . . . . . . . . . . . . . . . . . . . . . 25

- Public Pensions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

- Employee Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Cost-of-Living Increases (Survivor). . . . . . . . . . . . . . . . . . 26

Work and Earnings Limitations . . . . . . . . . . . . . . . . . . . . 27

When Survivor Payments Stop . . . . . . . . . . . . . . . . . . . . 27

Lump-Sum Death Benefits. . . . . . . . . . . . . . . . . . . . . . . 29

CONTENTS
 

 

 

 

 

 

 

 

 

 

Page 

RETIREMENT AND SURVIVOR INFORMATION

Applying for an Annuity . . . . . . . . . . . . . . . . . . . . . . . . 30

If Requirements for Benefits are not Met . . . . . . . . . . . . . . . 34

Garnishments/Property Settlements . . . . . . . . . . . . . . . . . . 34

Monitoring Retirement and Survivor Benefit Payments. . . . . . . . 35

The Right to Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Railroad Retirement Taxes. . . . . . . . . . . . . . . . . . . . . . . 37

Dual Tax Payments . . . . . . . . . . . . . . . . . . . . . . . . . . 37

- Dual Railroad Retirement-Social Security Taxes . . . . . . . . . . 38

- Separation/Severance Allowances . . . . . . . . . . . . . . . . . . 38

Federal Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . 40

ANNUITY FORMULA COMPONENTS

Employee Retirement Annuity. . . . . . . . . . . . . . . . . . . . . 41

- Tier I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

- Tier II. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

- Amount of Vested Dual Benefit Payment . . . . . . . . . . . . . . 45

- Supplemental Annuity Formula . . . . . . . . . . . . . . . . . . . 46

Spouse Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

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

- Tier II. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Dual Annuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Survivor Annuity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

- Tier I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

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

RRB FIELD OFFICES. . . . . . . . . . . . . . . . . . . . . . . . 54
EMPLOYEE AND SPOUSE ANNUITIES 

SERVICE AND EARNINGS 

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. 

An employee will receive credit for a month of railroad service for every month in which he or she had some compensated 

service for a covered employer (under the Railroad Retirement 

Act), even if the employee only performs one day of service in a 

given month. (However, any local lodge compensation earned after 1974 is disregarded if is less than $25 for any calendar month.) 

Covered employers include interstate railroads and their affiliates 

engaged in railroad-connected operations, as well as employer associations and national railway labor organizations and their subordinate units. 

Service performed for a covered employer or as an employee 

representative is creditable toward all types of benefits under the 

Railroad Retirement Act. Service months need not be consecutive, 

and, in some cases, military service may be counted as railroad 

service. Special rules may apply when crediting service months 

resulting from a settlement for an on-the-job injury. 

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 rep1
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

resentative, 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. 

How much creditable railroad service is 

needed for a regular employee annuity? 

10 years (120 months) 

OR 

5 years (60 months) if performed after 1995 

Military Service 

Active duty military service may be credited towards retirement 

benefits under certain conditions. To be creditable as compensation under the Railroad Retirement Act, an employee's 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. 

If an employee's military service began during a war or national 

emergency period, any active duty service he or she was required 

to continue in beyond the end of the war or national emergency is 

creditable, except any 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 

2
 
 

Employee and Spouse Annuities 

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. 

war and national emergency periods 

♦ August 2,1990 to date as yet undetermined 

♦ December 16,1950 to September 14, 1978 

♦ September 8, 1939 to June 14, 1948 

Service and Earnings Records 

Employers are required to report their employees' service and 

earnings compensation to the RRB, which maintains a record of 

all covered railroad service and creditable earnings after 1936. The 

RRB saves this information under each employee's social security 

number (as reported by the employer). 

Each year, the RRB sends employees a Certificate of Service 

Months and Compensation (Form BA-6). This statement is important because it provides employees with a current and cumulative record of their railroad service and compensation. It includes 

deemed service months, separation (or severance) allowances, and 

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 reflects creditable military service previously reported to the RRB. 

Employees are encouraged to carefully review Form BA-6 for 

accuracy upon receipt. If an employee disagrees with the informa3
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

tion shown on Form BA-6, he or she should notify the RRB as 

soon as possible. The law limits the period during which corrections can be made to 4 years. When reporting an inaccuracy on 

Form BA-6, all correspondence must include the employee’s social security number. Employees can mail this information to any 

RRB field office or to RRB headquarters at: 

Protest Unit - CESC 

U.S. Railroad Retirement Board 

844 North Rush Street 

Chicago, IL 60611-1275 

Railroad employees who have already established a Benefit 

Online Services account at RRB.gov can view their individual 

railroad retirement records of service months and compensation 

through a feature called View Service & Compensation History. 

Though this alternative record does not replace Form BA-6, it 

does make similar information available online. This feature is 

only available to employees with RRB online accounts. 

EMPLOYEE ANNUITIES 

AGE AND SERVICE ANNUITIES CAN BE PAID TO: 

▪ Employees with 30 or more years of creditable service

 (commonly referred to as 60/30) 

They are eligible for regular annuities based on age and 

service the first full month they are age 60. There is no age 

reduction for those who retire after 2001 with at least 30 

years of service. 

- Employees retiring after the first full month they reach

 age 60 can have their annuities begin the first day they 

 are eligible, with up to 6 months' retroactivity. 

4
 
Employee and Spouse Annuities 

▪ 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 

the employee's full retirement age, which ranges from age 

65 to age 67, depending on the year of birth. 

Reduced annuities are still payable at age 62 to those with 

less than 30 years of service, but the maximum reduction is 

gradually rising to 30 percent by the year 2022. The tier II 

portion of an annuity (as defined on page 12) is not reduced 

beyond 20 percent if the employee had any creditable railroad service before August 12, 1983. (See pages 42-46 for 

a detailed explanation of age reductions.) 

- Employees retiring at or after age 62 with an age reduction can have their annuities begin on the first day of the 

month they file their application. 

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. 

DISABILITY ANNUITIES CAN BE PAID FOR: 

▪ Total disability, at any age, if an employee is disabled from 

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 12) 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. 

total disaBility means a physical or mental disability that prevents any regular employment. 

5
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

▪ Occupational disability, if an employee is disabled from his 

or her regular railroad occupation at age 60, and has at least 

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

least 20 years (240 months) of service. 

- An annuity based on occupational disability also requires 

 a current connection with the railroad industry. 

occUpational disaBility means an employee is disabled from 

his or her regular railroad occupation (generally, the job he or 

she worked the longest in the last 5 years) and the condition is 

expected to last at least 12 months or longer. 

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. 

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 creditable 

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. 

6
 
 

Employee and Spouse Annuities 

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 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, and the 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. 

7
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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, 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 

An employee must be retired in order for his or her spouse to 

receive a railroad retirement spouse annuity. Benefits can be paid 

to spouses (including those eligible in same-sex marriages) on the 

basis of age or caring for the employee's minor or disabled child. 

An employee's divorced spouse(s) may also be paid benefits based 

on age, even if the employee has not retired. 

8
 
 

 

Employee and Spouse Annuities 

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; or the spouse was previously married to the employee and received a spouse annuity. An 

employee's spouse is not eligible for railroad retirement benefits 

based solely on the spouse’s own disability. 

The age requirements for a spouse annuity depend on the employee’s age, date of retirement, and years of railroad service. 

▪ Employee with 30 years of service, age 60: 

Spouse is also eligible for an annuity the first full month 

she/he 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 service, 

the spouse can receive an unreduced annuity the first full 

month she/he is age 60, regardless of whether the employee's annuity began before or after 2002 as long as the 

spouse’s annuity beginning date is after 2001. 

▪ Employee with less than 30 years of service, age 62: 

Spouse is also eligible for an annuity the first full month 

she/he is age 62. Early retirement reductions are applied to 

the spouse's annuity if she/he retires before 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 is also rising (from 25 percent) and 

will be 35 percent by the year 2022. The tier II portion of 

a spouse's annuity (as defined on page 12) is not reduced 

beyond 25 percent if the employee had any creditable railroad service before August 12, 1983. 

9
 
 

 

 

 

 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

▪ Employee receiving an age and service annuity - or

 disability annuitant otherwise eligible for an age and

service annuity: 

Spouse is eligible for an annuity at any age if caring for the 

employee’s unmarried child under age 18. The spouse is 

also eligible if caring for the employee’s disabled child of 

any age who became disabled before age 22. 

▪ Divorced spouses: 

An annuity may also be payable to the divorced spouse 

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 section of RRB.gov. Instructions for establishing an online account are available by 

10
 
 

Employee and Spouse Annuities 

clicking on the link for requesting a Password Request Code 

(PRC) in that same section. Estimates are based on 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 can also contact any RRB field office to request 

an approximate estimate or to schedule an appointment for individual pre-retirement counseling, which is available in-person 

or over the phone. Estimates can only be furnished for employees with at least 10 years of railroad service, or 5 years of service 

after 1995; it is not possible to provide a precise amount if the 

employee is not currently eligible. 

The following tables show (1) fiscal year 2018 annuity awards 

to 30-year employees retiring before full retirement age and (2) 

fiscal year 2018 annuity awards to employees with an average 

of less than 30 years of service. Figures used in these tables for 

award amounts and years of service are monthly averages and include supplemental annuity amounts. 

average

AWARD 

average

YEARS OF SERVICE 

Employee $4,180 37.1 

Employee and spouse $5,821 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. 

Table 1. Fiscal Year 2018 Annuity Awards to

30-Year Employees Retiring Before Full Retirement Age 

11
 
 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

Table 2. Fiscal Year 2018 Annuity Awards

EMPLOYEE IS... 

average

AWARD 

average

YEARS OF SERVICE

Based on Service Averaging Less than 30 Years 

Full retirement age or over $2,579 21.1

 Full retirement age or over and spouse $3,552 22.7

 Under full retirement age with less than

30 years of service $1,988 16.3

 Under full retirement age with less than

30 years of service and spouse $2,778 16.8

 Retiring because of disability $2,776 20.1 

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 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 10 years 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. 

12
 
 

Employee and Spouse Annuities 

Employees with Railroad Retirement and Social Security 

If a retired or disabled railroad retirement annuitant is also 

awarded social security benefits, the Social Security Administration determines the amount of the social security benefit due. The 

RRB then issues a combined monthly benefit payment after the 

railroad retirement annuity has been reduced by the amount of the 

social security benefit. 

The tier I portion of an employee's annuity is based on his 

or her combined railroad retirement and social security credits, 

computed 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 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. 

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 38). 

13
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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, 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 payments from a non-profit 

organization, a foreign government, or a foreign employer. This 

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. 

14
 
Employee and Spouse Annuities 

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 limit payment to the 

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

time. 

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 individuals in a marriage are railroad employees and 

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. 

If 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. 

15
 
 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

MINIMUM GUARANTY FOR EMPLOYEE
 

AND SPOUSE ANNUITIES 

Under a special minimum guaranty provision, railroad families 

will not receive less in monthly benefits than they would have if 

railroad earnings were covered by social security rather than railroad retirement laws. This 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. 

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. 

16
 
Employee and Spouse Annuities 

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 preretirement nonrailroad employer are subject to an earnings deduction. Such employment will reduce tier II benefits and supplemental annuity payments, which are not otherwise subject to earnings 

deductions, by $1 for each $2 of earnings received, subject to a 

maximum reduction of 50 percent. These reductions continue after full retirement age. Work that begins on the same day as the 

annuity beginning date is not last pre-retirement nonrailroad employment. 

Retired employees and spouses who have not yet attained full 

social security retirement age, which ranges from age 65 for those 

born before 1938 to age 67 for those born in 1960 or later, may 

also be subject to additional earnings deductions for any earnings, 

in or outside the rail industry, that exceed certain exempt amounts. 

The tier I benefit of these employee and spouse annuities is subject 

to deduction 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 

17
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

in benefits for every $2 of annual earnings exceeding an exempt 

amount ($17,640 in 2019). 

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, a full tier I benefit can be paid for those months in which 

the employee had low earnings or did not have substantial selfemployment, 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 self-employment. 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 social 

security retirement age, deductions of $1 are made in the tier I benefit for every $3 earned in excess of an exempt amount ($46,920 in 

2019), but only counting those earnings in the months prior to the 

month full retirement age is attained. This tier I benefit deduction 

stops 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 no18
 
Employee and Spouse Annuities 

tify 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 preretirement nonrailroad employer or other post-retirement employment. 

A spouse annuity is not payable for any month in which the 

employee’s annuity is not payable, or for any month in which the 

spouse, regardless of age, works for an employer covered under 

the Railroad Retirement Act. A divorced spouse annuity is not 

payable for any month in which the divorced 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. 

Disability Work Restrictions 

If an employee's 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 annuitant works for an employer covered under the Railroad Retirement Act. The annuity is not payable for 

any month in 2019 in which the annuitant earns more than $950 

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 $11,875 (after disability-related work expenses are deducted). Failure to report such earnings 

could involve a significant penalty charge. 

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 an19
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

nuitant had 30 years of service. Earnings deductions continue to 

apply to those working for their last pre-retirement nonrailroad 

employer. 

When a disabled employee annuitant works before reaching 

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 work activity 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. 

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, 

20
 
Survivor Benefits 

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. 

SURVIVOR BENEFITS 

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 on pages 7-8 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 children. 

In certain cases, benefits are also payable to parents, remarried 

widow(er)s, grandchildren, and surviving divorced spouses. 

21
 
 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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 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 adoptive 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 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 court-ordered 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 imme22
 
 

Survivor Benefits 

diately 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 if the remarriage ends. 

OTHER SURVIVOR ANNUITIES ARE PAYABLE T0: 

► 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 gets married, graduates 

from school, or ceases full-time attendance. 

► An unmarried disabled child over age 18 if the child 

became totally disabled before age 22. 

23
 
 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

► 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 

Survivors can call the agency toll-free (1-877-772-5772) to 

speak with a field service representative and request an annuity 

estimate. Active or retired employees who are concerned about 

the amount of benefits which would be payable to their survivors 

may also receive estimates from field service staff. Pre-retirement 

counseling is also available by appointment at any RRB field office or over the phone. 

The average annuity awarded to widow(er)s in fiscal year 2018, 

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

was $2,178 a month. On average, children received $1,386 per 

month, while total family benefits for widow(er)s with children 

averaged $4,056 a month. The average annuity awarded to remarried widow(er)s or surviving divorced spouses in fiscal year 

2018 was $1,229 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. 

24
 
Survivor Benefits 

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 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 

25
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

by a foreign government or interstate instrumentality will also not 

cause a reduction. For those subject to a public pension reduction, 

the tier I reduction is equal to 2/3 of the amount of the public pension. 

Employee Annuity 

If a widow(er) is also entitled to a railroad retirement employee annuity, and 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 widow(er)’s own employee annuity. 

If a widow or dependent widower is also a railroad employee 

annuitant, and either the widow(er) or the deceased employee had 

10 years 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 survivor annuitant had 

some railroad service before 1975 but less than 10 years of service, the widow(er)’s own 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 widow(er)’s own 

employee annuity. 

COST-OF-LIVING INCREASES (SURVIVOR) 

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-of-living increases in employee 

and spouse annuities. 

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. 

26
 
Survivor Benefits 

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 ($17,640 

in 2019). The deduction is $1 for every $3 earned over an exempt 

amount ($46,920 in 2019) 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. 

These earnings restrictions do not apply to disabled children 

or to disabled widow(er)s under age 60. However, annuitants receiving disability benefits must report any work or earnings to the 

RRB. The agency reviews such information to determine whether 

recovery from the disability is indicated. 

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, surviv27
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

ing 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 stops when he or she turns 18, 

or if the child marries or recovers from their disability upon which 

the 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 these occurrences must be reported to the RRB timely 

28
 
Survivor Benefits 

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. 

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 $1,016 

in fiscal year 2018. 

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 lumpsum 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 $936 in fiscal year 

2018. 

29
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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. 

RETIREMENT AND SURVIVOR INFORMATION 

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. 

30
 
Retirement and Survivor Information 

Railroad employees with RRB online accounts can get estimates of their future annuities by visiting the Benefit Online Services section of RRB.gov. Instructions for establishing an online 

account are 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 at RRB.gov and in all RRB field offices. 

To expedite filing, applicants may schedule an appointment 

for individual pre-retirement counseling, which is provided at 

any RRB field office or over the phone. Certain documents are 

required when filing a railroad retirement annuity application, 

including: 

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. 

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

31
 
 

 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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

is applying for an annuity based on caring for the 

employee’s child. 

» Information about any public service pension 

for which the applicant qualifies. 

» Banking information for Direct Deposit of benefit 

payments (needed at time application is filed). 

» Supporting medical evidence if applying for a 

disability annuity. 

A photocopy of a record is not accepted as an official 

document. To avoid delays in application processing, any 

proof submitted must be an original or certified copy. 

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

documents 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 and spouses are encouraged to submit their proofs 

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 

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 

32
 
Retirement and Survivor Information 

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. 

» For eligible children, proof of the relationship and age 

of each child is needed. Supporting medical evidence 

is required if a child is over age 18 and disabled. Proof 

of full-time elementary or high school attendance is 

needed for eighteen-year-old students. The employee's 

stepchildren must furnish proof of their 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. For widow(er)s between 

33
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

ages 60-61, retroactivity 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. 

IF REQUIREMENTS ARE NOT MET 

Retirement annuities are not payable by the RRB unless the 

employee has 5 years of creditable service after 1995, or 10 years 

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 5 years of 

creditable service after 1995 or 10 years 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. 

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. 

34
 
Retirement and Survivor Information 

Property Settlements 

Tier I benefits are not subject to 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. 

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. 

THE RIGHT TO APPEAL 

Railroad workers, spouses, or survivors whose claims for benefits under the Railroad Retirement Act are denied, or those who 

are dissatisfied with a decision on their claims, have the right to appeal; that is, they may ask for a reconsideration of any such unfavorable determinations. The notification letter sent to the applicant 

at the time of the original award or denial of the claim informs him 

or her of the right to appeal. 

An individual has 60 days from the date of the initial notice of 

a decision on his or her claim to file a written statement requesting reconsideration from the RRB unit that denied the claim. This 

step is mandatory before a decision may be appealed to the RRB’s 

Bureau of Hearings and Appeals. 

In cases involving overpayments, requests for waiver of recovery of the overpayment must be filed within 60 days of the date of 

the overpayment notice. In such cases, recovery of the overpay35
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

ment will be deferred and a personal conference may be held, if 

requested. A request for waiver received after 60 days will be considered but will not defer collection of the overpayment, and any 

amount of the overpayment recovered prior to the date on which 

the waiver request is filed will not be subject to waiver. 

An individual has 60 days from the date of the reconsideration 

or waiver decision to file an appeal with the RRB’s Bureau of 

Hearings and Appeals, a bureau independent of the units responsible for reconsideration decisions. This appeal must be filed using 

RRB Form HA-1, which is available at RRB.gov under the Resources tab (Appeals), and at every RRB field office. The Bureau 

of Hearings and Appeals may, if necessary, further investigate the 

case and obtain reports through field representatives, designated 

medical examiners, and others who may be in a position to furnish information pertinent to the appellant’s claim. If the appeal 

involves a question of fact, the appellant has the right to request 

an oral hearing. In most cases, videoconferencing or phone hearings are held. In cases where an in-person hearing is held, it may 

be conducted in the RRB office closest to the appellant’s home. 

If an appellant is not satisfied with the Bureau of Hearings and 

Appeals’ decision, he or she may appeal to the three-member 

Board, which heads the agency, within 60 days from the date on 

which notice of the Bureau of Hearings and Appeals’ decision is 

mailed. This appeal must be filed using RRB Form HA-1, which, 

as stated previously, may be obtained from RRB.gov, or the agency’s field offices. The three-member Board will base its decision 

on the evidence before the hearings officer and ordinarily will not 

accept additional evidence or conduct a hearing. 

An appellant who is not satisfied with the Board’s final decision 

may apply for a review of the case by a U.S. Circuit Court of Appeals. The petition for review must be filed within one year after 

notice of the three-member Board’s decision has been mailed to 

the appellant. 

36
 
 

Retirement and Survivor Information 

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. 

The tier I tax on employees and employers is 7.65 percent in 

2019. 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 2019. 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 

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 

37
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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 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 Allowances 

A lump sum, approximating railroad retirement tier II payroll 

taxes deducted from separation (or severance) allowances, may 

be paid upon retirement to employees meeting minimum service 

requirements, or their survivors, to the extent the separation allowances did not yield additional railroad retirement service or 

earnings credits. The lump-sum provision applies to separation allowances made after 1984. 

38
 
 

Retirement and Survivor Information 

Table 3. 2019 Regular Railroad Retirement Taxes 

MAXIMUM 

ANNUAL 

TAX TAXABLE 

RATE EARNINGS 

TIER I 

Employees & Employers 7.65%* $132,900 

TIER II 

Employees 4.90% $98,700 

Employers 13.10% $98,700 

Annual regular taxes on 

employees earning $132,900 

TIER I TIER II TOTAL 

Employees $10,166.85 $4,836.30 $15,003.15 

Employers $10,166.85 $12,929.70 $23,096.55 

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

1.45 percent for Medicare hospital insurance. The 2019 maximum earnings 

base for railroad retirement is $132,900, 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 $132,900. 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. 

39
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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. 

40
 
ANNUITY FORMULA COMPONENTS 

The following describes railroad retirement annuity formula components 

as applied to new awards. The cost-of-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 called 

tiers, which are computed separately under different formulas. 

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. 

For those first eligible in 2019, the gross tier I is equal to: 

► 90% of the first $926 of average indexed monthly earnings, plus 

► 32% of the amount of these earnings over $926 up to $5,583, plus 

► 15% of these earnings in excess of $5,583. 

For employees with less than 10 years of creditable 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. 

41
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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. 

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 to 67, depending on 

the year of birth (see Table 4 on page 45). The maximum annuity 

reduction for retirement at age 62 is also gradually increasing to 

30 percent. There is no age reduction for those who retire after 

2001 with 30 years of service. 

The full retirement age is 66 for employees and spouses born 

in the years 1943 through 1954. The full retirement age increases 

gradually for those born in 1955 to 1960, until it reaches age 67. 

For people who were born in 1960 or later, the full retirement age 

will be age 67. 

Reduced benefits continue to be available at age 62, 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 per42
 
Annuity Formula Components 

cent for an employee once the age 67 retirement age is in effect. 

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 were required in the tier I annuity amounts of 

30-year employees who retired at ages 60-61 before 2002 and attained age 60 or completed 30 years of service after June 1984. The 

age reductions were 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 was 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 was frozen 

until the first month throughout which the employee was age 62. It 

was then recomputed to reflect interim increases in national wage 

levels and became subject to future cost-of-living increases. There 

was 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 full retirement age 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. 

43
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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 not covered by railroad retirement or 

social security after 1956. This also applies to payments from nonprofit organizations, certain foreign governments, and foreign 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 full retirement age 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 7/10 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 has any creditable railroad service before August 12, 1983, the retirement age for tier II purposes will 

remain 65. 

44
 
Annuity Formula Components 

Table 4. Employee Retiring with Less than 30 Years of Service 

BIRTH YEAR* FULL RETIREMENT AGE ANNUITY REDUCTION 

(AT AGE 62) 

1937 or earlier

1938

1939

1940

1941

1942

1943 -- 1954

1955

1956

1957

1958

1959

1960 or later

 65 

65 and 2 months 

65 and 4 months 

65 and 6 months 

65 and 8 months 

65 and 10 months 

66 

66 and 2 months 

66 and 4 months 

66 and 6 months 

66 and 8 months 

66 and 10 months 

67 

20.00% 

20.833% 

21.667% 

22.50% 

23.333% 

24.167% 

25.00% 

25.833% 

26.667% 

27.50% 

28.333% 

29.167% 

30.00% 

*A person attains a given age the day before his or her birthday, and those

born on the first or second day of a month are eligible for an annuity beginning date on the first of that month. 

Employees with 5-9 years of creditable railroad 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 

45
 
RAILROAD RETIREMENT RAILROAD RETIREMENT AND SURVIVOR BENEFITS VIVOR BENEFITS 

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 costof-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 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. 

46
 
 

 

 

 

 

Annuity Formula Components Annuity Formula Components 

SPOUSE ANNUITY 

The spouse annuity formula is based on certain percentages of 

the employee’s tier I and tier II amounts. 

TIER I 

The tier I portion of a spouse annuity, before any applicable 

reductions, is 50 percent of the railroad employee's unreduced 

tier I amount. 

Spouse Age Reductions 

Age reductions required for those spouses (between age 62 and 

full retirement age) of employees retiring with less than 30 years 

of service are applied separately to each annuity component. Full 

retirement age for a spouse is gradually rising, just as for an employee. Actuarially reduced benefits continue to be available but at 

greater reductions. The tier I reduction is 1/144 for each of the first 

36 months the spouse is under full retirement age when her or his 

annuity begins and will decrease to 1/240 for each month (if any) 

over 36. This will result in a gradual increase in the reduction at 

age 62 from 25 percent to 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 agereduced 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. 

47
 
 

 

 

 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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, retired at age 62 with 30 years of service or began 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 the spouse is age 62. Then it is recomputed based on 

1/2 of the employee’s 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 has a minor or disabled 

child in care, no age reduction would apply. 

The spouse of a disability annuitant who was otherwise eligible 

for a 60/30 age annuity received 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 reduced by the amount 

of any social security benefit to which the spouse is entitled. 

The tier I amount may also be reduced for certain Federal, State, or 

local government pension payments based on the spouse’s own earn48
 
Annuity Formula Components 

ings. 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 full retirement age 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 Spouses 

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 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. 

49
 
RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

DUAL ANNUITIES 

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. 

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. 

A spouse who is also entitled to a survivor annuity on a different earnings record will receive only the higher benefit. 

TIER I 

SURVIVOR ANNUITY 

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 

50
 
 

 

 

 

Annuity Formula Components 

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), remarried widow(er), or surviving divorced spouse 

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 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 remarried widow(er), or surviving divorced spouse, 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. 

51
 
 

 

 

RAILROAD RETIREMENT AND SURVIVOR BENEFITS 

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 at least 10 years 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 10 years, 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. 

52
 
 

Annuity Formula Components 

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 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. 

53
 
 

RRB FIELD OFFICES
 RRB field offices are currently located in the cities listed 

below. Find contact information for any office by going to 

RRB.gov and clicking on Field Office Locator, or by calling toll-free (1-877-772-5772) and using the automated selfserve menu. Offices are also listed in telephone directories 

with other U.S. Government agencies. Most field offices are 

open to the public on weekdays from 9:00 a.m. to 3:30 p.m., 

except for Wednesdays when offices are open from 9:00 a.m. 

to noon. All RRB offices are closed on Federal holidays. 

ALABAMA IOWA NEBRASKA PENNSYLVANIA 

Birmingham Des Moines Omaha Altoona 

ARIZONA 

Mesa 

KANSAS 

Wichita 

NEW JERSEY 

Newark 

Harrisburg 

Philadelphia 

Pittsburgh 

ARKANSAS KENTUCKY NEW MEXICO 

Scranton 

Little Rock Louisville Albuquerque TENNESSEE 

CALIFORNIA LOUISIANA NEW YORK Nashville 

Covina 

Oakland 

Roseville 

COLORADO 

Denver 

FLORIDA 

Jacksonville 

Tampa 

New Orleans 

MARYLAND 

Baltimore 

MASSACHUSETTS 

Boston 

MICHIGAN 

Detroit 

Albany 

Buffalo 

Central Islip 

New York 

NORTH CAROLINA 

Charlotte 

NORTH DAKOTA 

Fargo 

TEXAS 

Fort Worth 

Houston 

UTAH 

Salt Lake City 

VIRGINIA 

Richmond 

Roanoke 

GEORGIA 

Atlanta 

ILLINOIS 

MINNESOTA 

Duluth 

St. Paul 

OHIO 

Cincinnati 

Cleveland 

WASHINGTON 

Bellevue 

Spokane 

Chicago 

Decatur 

Joliet 

MISSOURI 

Kansas City 

St. Louis 

OREGON 

Portland 

WEST VIRGINIA 

Huntington 

INDIANA 

Indianapolis 

MONTANA 

Billings 

WISCONSIN 

Milwaukee 

54
 
 

NON-DISCRIMINATION ON THE
 

BASIS OF DISABILITY
 

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. 

Public Affairs 

U.S. Railroad Retirement Board 

844 North Rush Street, Chicago, IL 60611-1275 

email: opa@rrb.gov | fax: 312-751-7154 

55
 

FRAUD, WASTE, AND ABUSE HOTLINE 

1-800-772-4258

The RRB’s Office of Inspector General(OIG) 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 OIG at: 

Toll-Free Hotline: 1-800-772-4258 

Mailing address: RRB-OIG Hotline Officer 

 844 North Rush Street, 4th Floor 

 Chicago, Illinois 60611-1275 

fax: (312) 751-4342 

email: hotline@oig.rrb.gov 

Please review the RRB’s email notice and Internet 

privacy policy at RRB.gov before submitting any 

information online. 

Note: Please do not contact the OIG’s Hotline with questions 

regarding benefit eligibility requirements, delayed payments, 

or similar issues. These types of matters should be directed to 

any RRB field office. 
RRB.gov

Chicago, Illinois 60611-1275 844 North Rush Street U.S. RAILROAD RETIREMENT BOARD 

ADDRESS SERVICE REQUESTED

 THIRD CLASS 

OFFICIAL BUSINESS 

February 2019 IB-2 PENALTY FOR PRIVATE USE, $300