Railroad Retirement

System

Annual Report Required by Railroad

Retirement Act of 1974 and Railroad

Retirement Solvency Act of 1983

U.S. Railroad Retirement Board

Bureau of the Actuary

June 2016
ANNUAL ACTUARIAL REPORT REQUIRED BY

RAILROAD RETIREMENT ACT OF 1974 AND

RAILROAD RETIREMENT SOLVENCY ACT OF 1983

I. INTRODUCTION

This report is intended to meet the requirements of Section 22 of the Railroad Retirement 

Act of 1974 and Section 502 of the Railroad Retirement Solvency Act of 1983.

Section 22 of the Railroad Retirement Act of 1974 requires the Railroad Retirement 

Board to prepare an annual report containing a five-year projection of revenues to and 

payments from the Railroad Retirement Account and to submit the report to the President 

and the Congress by July 1. The report must also contain a five-year projection of the 

account benefits ratio and average account benefits ratio. If the five-year projection 

indicates that funds in the Railroad Retirement Account will be insufficient to pay full 

benefits, (1) representatives of railroad employees, railroad carriers and the President 

must submit proposals to the Congress to preserve the financial solvency of the Railroad 

Retirement Account, and (2) the Railroad Retirement Board must issue regulations to 

reduce annuity levels during any fiscal year in which there would be insufficient funds to 

make full payments.

Section 502 of the Railroad Retirement Solvency Act of 1983 requires the Railroad 

Retirement Board to prepare an annual report on the actuarial status of the railroad 

retirement system and to submit the report to the Congress by July 1. The report must 

contain recommendations for any financing changes which might be advisable, including 

(1) changes in the tax rates, and (2) whether any part of the taxes on employers should be 

diverted to the Railroad Unemployment Insurance Account to aid in the repayment of its 

debt to the Railroad Retirement Account.

II. RAILROAD EMPLOYMENT

Over the years, the main source of income to the railroad retirement system has been a 

payroll tax on railroad employment. The amount of income that the tax produces is 

directly dependent on the number of railroad employees covered under the system.

An abbreviated history of average railroad employment from 1955 through 2010 is 

shown in the following table.

Average annual rate of decline

 Average employment for the 5-year period

Year for year ending with the year

1955 1,239,000

1960 909,000 6.0%
2

1965 753,000 3.7

1970 640,000 3.2

1975 548,000 3.1

1980 532,000 0.6

1985 372,000 6.9

1990 296,000 4.5

1995 265,000 2.2

2000 246,000 1.5

2005 232,000 1.2

2010 221,000 1.0

Between 1955 and 2010, the average annual rate of decline was 3.1 percent. Since 2010, 

average employment has instead had an increasing period with rates of decline as 

follows:

 Average employment Annual rate of decline

Year for year from previous year

2011 229,000 -3.6%

2012 234,000 -2.2%

2013 237,000 -1.3%

2014 242,000 -2.1%

2015 246,000 -1.7%

Two things become clear from the figures shown -- (1) railroad employment has 

generally declined over a long period of years, and (2) the rate of decline has been 

irregular.

Three employment assumptions were used in the 26th actuarial valuation, which served as 

the 2015 annual report required by Section 502. Employment assumptions I and II were 

based on a model developed by the Association of American Railroads, and assumed that 

(1) passenger employment would remain at the level of 46,000, and (2) the employment 

base, excluding passenger employment, would decline at a constant annual rate (0.5

percent for assumption I and 2.0 percent for assumption II) for 25 years, at a reducing 

rate over the next 25 years, and remain level thereafter. Employment assumption III 

differed from employment assumptions I and II by assuming that (1) passenger 

employment would decline by 500 per year until a level of 35,000 was reached and then 

remain level, and (2) the employment base, excluding passenger employment, would 

decline at a constant annual rate of 3.5 percent for 25 years, at a reducing rate over the 

next 25 years, and remain level thereafter.

The projected average employment for 2015, based on the three employment assumptions 

used in the 2015 report, ranged from 234,000 to 241,000. The actual average
3

employment for 2015 was 246,000 (subject to later adjustment), which was above the 

range of projected amounts. Average passenger employment for calendar year 2015 was 

estimated to be 46,000. 

During calendar year 2015, employment peaked at an estimated 252,000 in April 2015 

and then declined. The decline continued into 2016 reaching an estimated 225,000 in

April 2016 which is the latest data available as of this writing. Based on this result, it 

was decided to use average employment of 230,000 as a starting point in this year's report 

so as to better target current employment levels and to continue the use of the rates of 

decline used in the 26th valuation. In this year’s report, for employment assumptions I 

and II, passenger employment is assumed to remain level at 46,000. For employment 

assumption III, passenger employment is assumed to decline by 500 per year until a level 

of 35,000 is reached and then remain level.

With the exception of the economic and employment assumptions shown in Table 1, the 

assumptions used in this report correspond to those published in the Twenty-Sixth 

Actuarial Valuation of the Assets and Liabilities Under the Railroad Retirement Acts as 

of December 31, 2013 with Technical Supplement, which may be found at www.rrb.gov.

III. RESULTS

Projections were made for the various components of income and outgo under each 

employment assumption for the 25 calendar years 2016-2040. The projections of these 

components were combined and the investment income calculated to produce the 

projected balances in the accounts at the end of each projection year. The results are 

summarized in Table 2 and Figure 1.

Table 2 consists of three tables, one for each of employment assumptions I, II and III. 

The tables show, for the Social Security Equivalent Benefit Account (SSEBA) and the 

combined National Railroad Retirement Investment Trust (NRRIT) and Railroad 

Retirement Account (RRA), for each projection year, (1) the various elements of income 

and outgo, (2) the account balance on December 31, and (3) the account benefits ratio 

(ABR) and average account benefits ratio (AABR). 1

Table 2 indicates that cash flow problems do not arise during the projection period under 

any of the three employment assumptions. The results shown in Table 2 will be 

discussed separately for the SSEBA and the combined NRRIT and RRA.

 1 At the end of each fiscal year (September 30), the Account Benefits Ratio (ABR) is calculated by dividing 

the fair market value of the assets in the RRA and the NRRIT as of the close of such fiscal year by the total 

benefits and administrative expenses paid from the RRA and the NRRIT during such fiscal year. The 

Average Account Benefits Ratio (AABR), with respect to any calendar year, is the average of the account 

benefits ratios for the 10 most recent fiscal years ending before such calendar year. If the AABR is not a 

multiple of 0.1, it is increased to the next highest multiple of 0.1. The tier 2 tax rate is determined from a 

tax rate table based on the AABR.
4

A. Social Security Equivalent Benefit Account

The SSEBA pays the social security level of benefits and administrative expenses 

allocable to those benefits, and it receives as income the social security level of taxes. 

The SSEBA also receives or pays the financial interchange transfers between the railroad 

retirement and social security systems. The financial interchange transfer, subject to the 

qualification in the next paragraph, should be enough to offset any surplus or deficit for 

the year. The SSEBA can thus be regarded as automatically funded, the financial 

interchange being the mechanism for correcting any surplus or deficiency.

The qualification mentioned in the preceding paragraph arises because, in a relatively 

small number of cases, the railroad retirement system does not pay benefits when the 

social security system would. In these cases, mainly dependent children of retired 

railroad employees, the SSEBA collects an amount through the financial interchange but 

does not pay a corresponding benefit. This imbalance between outgo and income is small 

in any particular year.

The SSEBA must from time to time transfer to the NRRIT or RRA amounts not needed 

to pay current benefits and administrative expenses in such a manner as to maximize 

investment return to the Railroad Retirement system.

The SSEBA is assumed to maintain a target balance of approximately 1.5 months of 

benefit payments in order to meet benefit obligations and contingencies, and transfer any 

excess to the NRRIT/RRA. However, if the NRRIT/RRA runs into cash flow problems, 

the SSEBA is assumed to transfer enough of its accumulated funds to the NRRIT/RRA to 

provide for benefit payments until the SSEBA is exhausted. Thereafter, the SSEBA is 

assumed to transfer to the NRRIT/RRA any excess of income over outgo, maintaining a 

zero balance.

B. Railroad Retirement Account and National Railroad Retirement Investment Trust

The RRA receives tier 2 payroll taxes and income taxes on tier 2 and excess tier 1 

benefits. Tier 2 benefits, excess tier 1 benefits, supplemental annuity benefits and 

administrative expenses are paid from the RRA. The NRRIT receives funds from the 

RRA and SSEBA for investment, pays investment expenses, and transfers funds to the 

RRA to meet benefit obligations.

The tier 2 payroll tax rate is determined from a tax rate table based on the AABR. The 

combined employer and employee tier 2 tax rate is 18% for values of the AABR between 

4.0 and 6.0, inclusive. A maximum rate of 27% is reached when the AABR falls below 

2.5, and a minimum rate of 8.2% is reached when the AABR reaches 9.0. Since the 

AABR is a 10-year average of the ABRs, whether the AABR in a given year increases or 

decreases from the prior year depends solely on whether the ABR in the prior year is 

greater or less than the ABR 10 years earlier.
5

Under employment assumption I (Table 2-I), the combined NRRIT and RRA balance 

declines initially but then increases through the remainder of projection period. The 

combined employer and employee tier 2 tax rate remains level at 18%.

Under employment assumption II (Table 2-II), the combined NRRIT and RRA balance 

remains relatively level, declining through 2022 and then generally growing through the 

end of the projection period. The combined employer and employee tier 2 tax rate

increases to 19% in 2035-2040.

Under employment assumption III (Table 2-III), the combined NRRIT and RRA balance 

declines through the end of the projection period. The combined employer and employee 

tier 2 tax rate increases to 27% in 2038. Despite the 27% tax rate, expenditures continue 

to exceed income at the end of the projection period and the ABR falls to a level of 0.98.

C. Analysis of Results

Under each employment assumption, no cash flow problems occur throughout the 25-

year projection period, and the ABR remains above 0.5 in each year.

The overall conclusion is that, barring a sudden, unanticipated, large decrease in railroad 

employment or substantial investment losses, the railroad retirement system will 

experience no cash flow problems during the next 25 years. The long-term stability of 

the system, however, is still uncertain. Under the current financing structure, actual 

levels of railroad employment and investment return over the coming years will largely 

determine whether corrective action is necessary.

D. Comparison of Results with 2015 Report

The projected tier 2 tax rates for each calendar year are either the same or higher than in 

last year’s report. The projected combined account balances are lower at the end of each 

year. 

The unfavorable comparison with last year was due to overall unfavorable economic and 

employment experience, with the largest impacts resulting from declining employment

and actual investment return of approximately 0.2% falling below the expected 

investment return of 7.0% in calendar year 2015.

IV. RECOMMENDATIONS

As stated in the introduction, this report must contain recommendations with regard to 

(1) tax rates and (2) whether any part of the taxes on employers should be diverted to the 

Railroad Unemployment Insurance Account to aid in the repayment of any debt to the 

Railroad Retirement Account.
6

A. Tax Rates

This report recommends no change in the rate of tax imposed on employers and 

employees. The tax adjustment mechanism will automatically increase or decrease tax 

rates in response to changes in fund balance. Even under a pessimistic employment 

assumption, this mechanism is expected to prevent cash flow problems for at least 25

years.

B. Diversion of Taxes to Railroad Unemployment Insurance Account

No diversion of taxes from the Railroad Retirement Account to the Railroad 

Unemployment Insurance Account is recommended at this time. There are currently no

loans outstanding from the Railroad Retirement Account to the Railroad Unemployment 

Insurance Account.
Table 1. Employment, inflation and investment return assumptions

Percentage increase

Calendar Average employment (thousands) over prior year Investment

year I II III Earnings Cost of living return

2015 230 230 230 2.5% 1.7% 0.2% 

2016 229 226 223 3.7 0.0 7.0 

2017 228 223 216 3.7 0.5 7.0 

2018 227 219 210 3.7 1.6 7.0 

2019 226 216 204 3.7 2.7 7.0 

2020 225 212 197 3.7 2.7 7.0 

2021 225 209 192 3.7 2.7 7.0 

2022 224 206 186 3.7 2.7 7.0 

2023 223 203 180 3.7 2.7 7.0 

2024 222 199 175 3.7 2.7 7.0 

2025 221 196 170 3.7 2.7 7.0 

2026 220 193 165 3.7 2.7 7.0 

2027 219 190 160 3.7 2.7 7.0 

2028 218 188 155 3.7 2.7 7.0 

2029 218 185 151 3.7 2.7 7.0 

2030 217 182 146 3.7 2.7 7.0 

2031 216 179 142 3.7 2.7 7.0 

2032 215 177 138 3.7 2.7 7.0 

2033 214 174 134 3.7 2.7 7.0 

2034 213 171 130 3.7 2.7 7.0 

2035 212 169 126 3.7 2.7 7.0 

2036 212 166 123 3.7 2.7 7.0 

2037 211 164 119 3.7 2.7 7.0 

2038 210 162 116 3.7 2.7 7.0 

2039 209 159 113 3.7 2.7 7.0 

2040 208 157 111 3.7 2.7 7.0 
Table 2-I. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), and

Social Security Equivalent Benefit Account (SSEBA) under Employment Assumption I

(Dollar amounts in millions)

Average Combined NRRIT and RRA SSEBA

Account account Tier 2 Benefits Benefits Other Combined

Calendar benefits benefits tax and admin- Tax Other Balance, and admin- Tax income and Balance, balance,

year ratioa ratiob

rate istration incomec incomed end year istration incomec expensee end year end year

2016 4.68 5.80 18.0% $5,471 $3,628 $1,857 $25,279 $7,138 $3,318 $3,857 $888 $26,167

2017 4.58 5.50 18.0% 5,565 3,755 1,702 25,171 7,233 3,443 3,583 681 25,852

2018 4.49 5.10 18.0% 5,653 3,881 1,696 25,095 7,396 3,571 3,941 796 25,891

2019 4.41 5.00 18.0% 5,744 4,008 1,692 25,051 7,636 3,706 4,057 923 25,974

2020 4.37 4.90 18.0% 5,820 4,141 1,772 25,144 7,872 3,848 4,081 980 26,124

2021 4.33 4.80 18.0% 5,884 4,277 1,701 25,238 8,096 3,995 4,063 941 26,179

2022 4.33 4.70 18.0% 5,935 4,419 1,762 25,484 8,306 4,148 4,250 1,034 26,518

2023 4.36 4.70 18.0% 5,987 4,564 1,858 25,919 8,502 4,305 4,222 1,058 26,977

2024 4.41 4.60 18.0% 6,047 4,713 1,897 26,482 8,688 4,464 4,247 1,081 27,563

2025 4.45 4.50 18.0% 6,113 4,862 1,830 27,061 8,873 4,624 4,271 1,104 28,165

2026 4.53 4.50 18.0% 6,183 5,017 1,990 27,884 9,061 4,790 4,295 1,127 29,011

2027 4.63 4.50 18.0% 6,260 5,175 2,054 28,854 9,254 4,944 4,334 1,151 30,005

2028 4.74 4.50 18.0% 6,352 5,337 2,127 29,966 9,450 5,100 4,374 1,175 31,141

2029 4.85 4.50 18.0% 6,464 5,503 2,210 31,216 9,652 5,259 4,418 1,200 32,416

2030 4.97 4.50 18.0% 6,589 5,675 2,302 32,604 9,862 5,421 4,466 1,226 33,830

2031 5.09 4.60 18.0% 6,722 5,851 2,365 34,097 10,085 5,588 4,525 1,254 35,351

2032 5.23 4.70 18.0% 6,852 6,032 2,512 35,789 10,326 5,762 4,594 1,284 37,073

2033 5.41 4.80 18.0% 6,972 6,221 2,636 37,674 10,582 5,945 4,669 1,316 38,990

2034 5.59 4.90 18.0% 7,113 6,416 2,774 39,751 10,843 6,133 4,743 1,348 41,099

2035 5.77 5.00 18.0% 7,290 6,617 2,925 42,002 11,106 6,323 4,815 1,381 43,383

2036 5.95 5.10 18.0% 7,476 6,824 3,080 44,431 11,385 6,521 4,898 1,415 45,846

2037 6.13 5.30 18.0% 7,673 7,039 3,260 47,056 11,681 6,726 4,992 1,452 48,508

2038 6.32 5.40 18.0% 7,889 7,261 3,449 49,876 11,982 6,938 5,080 1,489 51,365

2039 6.53 5.60 18.0% 8,107 7,494 3,651 52,914 12,294 7,161 5,172 1,528 54,442

2040 6.75 5.70 18.0% 8,321 7,737 3,868 56,198 12,625 7,397 5,269 1,569 57,767

 

a

 The fair market value of the assets in the RRA and NRRIT as of the close of the fiscal year (September 30) divided by the total benefits and administrative expenses

 paid from the RRA and NRRIT during the fiscal year.

 

b

 The average of the account benefits ratios for the 10 most recent fiscal years ending before the calendar year.

 

c

 Includes payroll taxes and income taxes on benefits.

 

d

 Includes investment income and transfers from the SSEBA.

 

e

 Other income includes financial interchange income, advances from general revenues, and interest income. Other expense includes repayment of advances 

 from general revenues and transfers to the NRRIT or RRA.
Table 2-II. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), and

Social Security Equivalent Benefit Account (SSEBA) under Employment Assumption II

(Dollar amounts in millions)

Average Combined NRRIT and RRA SSEBA

Account account Tier 2 Benefits Benefits Other Combined

Calendar benefits benefits tax and admin- Tax Other Balance, and admin- Tax income and Balance, balance,

year ratioa ratiob

rate istration incomec incomed end year istration incomec expensee end year end year

2016 4.68 5.80 18.0% $5,471 $3,607 $1,856 $25,258 $7,138 $3,300 $3,875 $888 $26,146

2017 4.57 5.50 18.0% 5,565 3,695 1,699 25,086 7,233 3,391 3,635 681 25,767

2018 4.46 5.10 18.0% 5,653 3,782 1,687 24,901 7,396 3,484 4,028 796 25,697

2019 4.36 5.00 18.0% 5,743 3,868 1,674 24,700 7,636 3,582 4,181 922 25,622

2020 4.28 4.90 18.0% 5,819 3,957 1,740 24,578 7,872 3,684 4,245 980 25,558

2021 4.20 4.80 18.0% 5,882 4,046 1,653 24,395 8,096 3,788 4,269 941 25,336

2022 4.14 4.70 18.0% 5,933 4,138 1,692 24,292 8,305 3,896 4,501 1,033 25,325

2023 4.11 4.60 18.0% 5,983 4,230 1,762 24,301 8,501 4,004 4,521 1,058 25,359

2024 4.08 4.50 18.0% 6,042 4,323 1,769 24,351 8,686 4,113 4,596 1,081 25,432

2025 4.03 4.40 18.0% 6,107 4,414 1,664 24,323 8,869 4,219 4,673 1,103 25,426

2026 4.00 4.30 18.0% 6,174 4,507 1,779 24,435 9,055 4,327 4,751 1,126 25,561

2027 3.98 4.30 18.0% 6,248 4,601 1,791 24,579 9,244 4,422 4,846 1,150 25,729

2028 3.95 4.20 18.0% 6,337 4,696 1,804 24,742 9,436 4,515 4,945 1,174 25,916

2029 3.91 4.20 18.0% 6,445 4,791 1,818 24,906 9,632 4,608 5,048 1,198 26,104

2030 3.87 4.10 18.0% 6,564 4,889 1,832 25,062 9,834 4,701 5,157 1,223 26,285

2031 3.81 4.10 18.0% 6,692 4,987 1,805 25,162 10,047 4,796 5,278 1,249 26,411

2032 3.76 4.00 18.0% 6,815 5,088 1,852 25,288 10,276 4,894 5,410 1,278 26,566

2033 3.72 4.00 18.0% 6,926 5,193 1,863 25,419 10,518 4,998 5,550 1,308 26,727

2034 3.67 4.00 18.0% 7,058 5,301 1,876 25,537 10,762 5,102 5,690 1,338 26,875

2035 3.64 3.90 19.0% 7,223 5,680 1,897 25,890 11,004 5,206 5,829 1,368 27,258

2036 3.60 3.90 19.0% 7,397 5,798 1,917 26,208 11,259 5,313 5,978 1,400 27,608

2037 3.55 3.80 19.0% 7,578 5,919 1,945 26,494 11,526 5,423 6,137 1,433 27,927

2038 3.49 3.80 19.0% 7,775 6,043 1,968 26,730 11,793 5,535 6,291 1,466 28,196

2039 3.43 3.80 19.0% 7,970 6,173 1,986 26,919 12,067 5,654 6,447 1,500 28,419

2040 3.38 3.70 19.0% 8,157 6,311 2,001 27,073 12,353 5,782 6,606 1,535 28,608

 

a

 The fair market value of the assets in the RRA and NRRIT as of the close of the fiscal year (September 30) divided by the total benefits and administrative expenses

 paid from the RRA and NRRIT during the fiscal year.

 

b

 The average of the account benefits ratios for the 10 most recent fiscal years ending before the calendar year.

 

c

 Includes payroll taxes and income taxes on benefits.

 

d

 Includes investment income and transfers from the SSEBA.

 

e

 Other income includes financial interchange income, advances from general revenues, and interest income. Other expense includes repayment of advances 

 from general revenues and transfers to the NRRIT or RRA.
Table 2-III. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement Account (RRA), and

Social Security Equivalent Benefit Account (SSEBA) under Employment Assumption III

(Dollar amounts in millions)

Average Combined NRRIT and RRA SSEBA

Account account Tier 2 Benefits Benefits Other Combined

Calendar benefits benefits tax and admin- Tax Other Balance, and admin- Tax income and Balance, balance,

year ratioa ratiob

rate istration incomec incomed end year istration incomec expensee end year end year

2016 4.67 5.80 18.0% $5,471 $3,583 $1,855 $25,232 $7,138 $3,279 $3,896 $888 $26,120

2017 4.55 5.50 18.0% 5,565 3,626 1,694 24,987 7,233 3,330 3,696 681 25,668

2018 4.43 5.10 18.0% 5,653 3,668 1,676 24,678 7,396 3,384 4,128 796 25,474

2019 4.30 5.00 18.0% 5,743 3,708 1,652 24,295 7,636 3,440 4,322 922 25,217

2020 4.18 4.90 18.0% 5,818 3,749 1,703 23,930 7,872 3,499 4,430 980 24,910

2021 4.05 4.80 18.0% 5,880 3,788 1,598 23,435 8,096 3,557 4,500 941 24,376

2022 3.93 4.70 18.0% 5,930 3,826 1,612 22,944 8,305 3,616 4,781 1,033 23,977

2023 3.82 4.60 18.0% 5,979 3,863 1,654 22,483 8,500 3,674 4,850 1,058 23,541

2024 3.71 4.40 18.0% 6,036 3,899 1,626 21,972 8,684 3,730 4,976 1,080 23,052

2025 3.56 4.30 18.0% 6,099 3,931 1,479 21,283 8,865 3,781 5,106 1,103 22,386

2026 3.42 4.20 18.0% 6,164 3,963 1,546 20,627 9,049 3,833 5,239 1,126 21,753

2027 3.26 4.00 18.0% 6,235 3,993 1,502 19,888 9,234 3,868 5,388 1,149 21,037

2028 3.12 3.90 19.0% 6,321 4,220 1,459 19,246 9,420 3,901 5,542 1,172 20,418

2029 2.96 3.80 19.0% 6,425 4,250 1,414 18,484 9,609 3,931 5,702 1,195 19,679

2030 2.77 3.70 19.0% 6,539 4,279 1,360 17,584 9,803 3,960 5,867 1,219 18,803

2031 2.56 3.50 19.0% 6,661 4,308 1,257 16,488 10,005 3,987 6,043 1,244 17,732

2032 2.37 3.40 20.0% 6,777 4,538 1,226 15,475 10,220 4,016 6,231 1,271 16,746

2033 2.17 3.20 20.0% 6,881 4,569 1,155 14,318 10,447 4,047 6,428 1,299 15,617

2034 1.95 3.00 20.0% 7,004 4,601 1,074 12,989 10,672 4,077 6,623 1,327 14,316

2035 1.77 2.90 23.0% 7,159 5,245 1,004 12,080 10,893 4,103 6,817 1,354 13,434

2036 1.58 2.70 23.0% 7,321 5,279 933 10,971 11,122 4,130 7,020 1,382 12,353

2037 1.38 2.50 23.0% 7,487 5,319 860 9,662 11,358 4,162 7,226 1,412 11,074

2038 1.25 2.30 27.0% 7,666 6,200 799 8,994 11,589 4,198 7,420 1,440 10,434

2039 1.12 2.10 27.0% 7,843 6,263 752 8,166 11,822 4,240 7,611 1,469 9,635

2040 0.98 1.90 27.0% 8,008 6,336 694 7,188 12,061 4,290 7,800 1,499 8,687

 

a

 The fair market value of the assets in the RRA and NRRIT as of the close of the fiscal year (September 30) divided by the total benefits and administrative expenses

 paid from the RRA and NRRIT during the fiscal year.

 

b

 The average of the account benefits ratios for the 10 most recent fiscal years ending before the calendar year.

 

c

 Includes payroll taxes and income taxes on benefits.

 

d

 Includes investment income and transfers from the SSEBA.

 

e

 Other income includes financial interchange income, advances from general revenues, and interest income. Other expense includes repayment of advances 

 from general revenues and transfers to the NRRIT or RRA.
$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

Figure 1. Combined NRRIT, RRA and SSEBA Balance

(In millions)

Employment assumption I

Employment assumption II

Employment assumption III