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 2011
ANNUAL ACTUARIAL REPORT REQUIRED BY

RAILROAD RETIREMENT ACT OF 1974 AND

RAILROAD RETIREMENT SOLVENCY ACT OF 1983

I. INTRODUCTION

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.

This report is intended to meet the requirements of Section 22 and Section 502 for 2011.

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 2005 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%

1965 753,000 3.7
2

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

Between 1955 and 2005, the average annual rate of decline was 3.3 percent. Since 2005, 

average employment and rates of decline have been as follows:

 Average employment Annual rate of decline

Year for year from previous year

2006 236,000 (1.7%)

2007 237,000 (0.4)

2008 235,000 0.8

2009 223,000 5.1

2010 221,000 0.9

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

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

irregular.

Three employment assumptions were used in the 24th actuarial valuation, which served as 

the 2009 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 43,000, 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 2010 annual report continued the use of the three employment assumptions, updating 

them as to current employment levels.

The projected average employment for 2010, based on the three employment assumptions 

used in the 2010 report, ranged from 213,000 to 219,000. The actual average

employment for 2010 was 221,000 (subject to later adjustment), which was above the 

range of projected amounts. Passenger employment at the end of calendar year 2010 was 

estimated to be 44,000. Based on this result, it was decided to use 2010 average 
3

employment of 221,000 as a starting point in this year's report and continue the use of the 

rates of decline used in the 24th valuation. In this year’s report, for employment 

assumptions I and II, passenger employment is assumed to remain level at 44,000. 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. These assumptions are 

shown in Table 1.

III. RESULTS

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

employment assumption for the 25 calendar years 2011-2035. 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 arise only under employment assumption III, 

and not until 2034. The results shown in Table 2 will be discussed separately for the 

SSEBA and the combined NRRIT and RRA.

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 

 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 (and for years before 2002, the SSEBA) 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

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 ABR’s, 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.

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

declines through 2024 and then grows through the end of the projection period. The 

combined employer and employee tier 2 tax rate increases to 19% in 2025-2035.

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

declines through 2027 and then grows through the end of the projection period. The 

combined employer and employee tier 2 tax rate increases to 27% in 2033-2035.

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

declines until the balance becomes negative in 2034. Negative after-transfer balances 

indicate the amount that would be owed, including interest, if unreduced benefits were 

paid by borrowing from some unknown source. The combined account deficit reaches 
5

$2,872 million at the end of the projection period. The combined employer and 

employee tier 2 tax rate increases to 27% in 2028 and remains at that level through the 

end of the projection period. Under this assumption, the tax rate mechanism does not 

respond quickly enough to avoid cash flow problems.

C. Analysis of Results

Under both employment assumptions I and II, no cash flow problems occur throughout 

the 25-year projection period, and the ABR remains above 0.5 in each year. Under 

employment assumption III, cash flow problems occur in 2034. In order to maintain an 

ABR of at least 0.5 throughout the projection period under employment assumption III, 

the increase in tier 2 tax rate to 27% would need to be accelerated to calendar year 2024. 

Alternatively, increasing the tier 2 tax rate to 20.7% beginning in 2012 would also 

maintain an ABR of at least 0.5 throughout the projection period.

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 23 years. The long-term stability of 

the system, however, is still questionable. 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 2010 Report

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

last year’s report. The projected combined account balances are higher through calendar 

year 2027 under each employment assumption. Under employment assumptions I and II, 

the account balances are lower at the end of the current projection period due to lower tax

rates in some earlier years.

The favorable comparison with last year was largely due to both actual investment return 

of approximately 14.4% exceeding the expected investment return of 7.5% in calendar 

year 2010 and to higher projected employment. This was offset by a lower estimated 

wage increase for calendar year 2010.

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 23 

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. The loans outstanding 

from the Railroad Retirement Account to the Railroad Unemployment Insurance Account 

are expected to be repaid in calendar year 2011 without any diversion of taxes.
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

2010 221 221 221 2.4% 0.0% 14.4% 

2011 220 218 214 4.0 0.0 7.5 

2012 219 214 208 4.0 3.0 7.5 

2013 218 211 202 4.0 3.0 7.5 

2014 218 207 196 4.0 3.0 7.5 

2015 217 204 190 4.0 3.0 7.5 

2016 216 201 184 4.0 3.0 7.5 

2017 215 198 179 4.0 3.0 7.5 

2018 214 195 173 4.0 3.0 7.5 

2019 213 192 168 4.0 3.0 7.5 

2020 212 189 163 4.0 3.0 7.5 

2021 212 186 158 4.0 3.0 7.5 

2022 211 183 154 4.0 3.0 7.5 

2023 210 180 149 4.0 3.0 7.5 

2024 209 177 145 4.0 3.0 7.5 

2025 208 175 140 4.0 3.0 7.5 

2026 207 172 136 4.0 3.0 7.5 

2027 207 170 132 4.0 3.0 7.5 

2028 206 167 128 4.0 3.0 7.5 

2029 205 165 125 4.0 3.0 7.5 

2030 204 162 122 4.0 3.0 7.5 

2031 203 160 119 4.0 3.0 7.5 

2032 203 158 116 4.0 3.0 7.5 

2033 202 155 113 4.0 3.0 7.5 

2034 201 153 110 4.0 3.0 7.5 

2035 200 151 108 4.0 3.0 7.5 
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

2011 5.40 6.70 16.0% $4,797 $2,691 $2,166 $25,468 $6,379 $2,617 $3,696 $794 $26,262

2012 5.13 6.50 16.0% 4,992 2,771 1,868 25,114 6,621 2,705 3,946 824 25,938

2013 4.89 6.40 17.0% 5,177 3,012 1,887 24,837 6,877 2,802 4,107 856 25,693

2014 4.65 6.30 17.0% 5,358 3,107 1,867 24,452 7,145 2,907 4,271 889 25,341

2015 4.44 6.00 18.0% 5,533 3,372 1,846 24,138 7,420 3,019 4,435 923 25,061

2016 4.24 5.70 18.0% 5,689 3,483 1,722 23,653 7,701 3,139 4,558 919 24,572

2017 4.06 5.40 18.0% 5,822 3,597 1,751 23,178 7,984 3,267 4,791 993 24,171

2018 3.90 5.00 18.0% 5,935 3,717 1,763 22,724 8,262 3,402 4,895 1,028 23,752

2019 3.76 4.80 18.0% 6,027 3,840 1,737 22,274 8,527 3,543 5,017 1,061 23,335

2020 3.64 4.60 18.0% 6,104 3,968 1,712 21,850 8,777 3,691 5,117 1,092 22,942

2021 3.52 4.50 18.0% 6,164 4,100 1,566 21,353 9,010 3,844 5,194 1,121 22,474

2022 3.45 4.30 18.0% 6,208 4,238 1,663 21,046 9,225 3,983 5,269 1,148 22,194

2023 3.39 4.10 18.0% 6,248 4,380 1,650 20,828 9,422 4,125 5,321 1,172 22,000

2024 3.34 4.00 18.0% 6,292 4,525 1,643 20,704 9,606 4,270 5,359 1,195 21,899

2025 3.34 3.80 19.0% 6,339 4,909 1,651 20,926 9,788 4,417 5,394 1,217 22,143

2026 3.35 3.70 19.0% 6,385 5,070 1,583 21,194 9,974 4,567 5,430 1,240 22,434

2027 3.40 3.60 19.0% 6,434 5,236 1,703 21,698 10,162 4,722 5,463 1,264 22,962

2028 3.47 3.60 19.0% 6,498 5,406 1,748 22,355 10,352 4,881 5,495 1,287 23,642

2029 3.55 3.50 19.0% 6,576 5,582 1,805 23,165 10,547 5,043 5,529 1,311 24,476

2030 3.64 3.50 19.0% 6,662 5,764 1,872 24,139 10,754 5,210 5,569 1,337 25,476

2031 3.75 3.50 19.0% 6,754 5,951 1,893 25,228 10,975 5,383 5,619 1,364 26,592

2032 3.89 3.50 19.0% 6,841 6,147 2,039 26,573 11,212 5,564 5,677 1,393 27,966

2033 4.07 3.60 19.0% 6,919 6,351 2,147 28,152 11,468 5,754 5,745 1,425 29,577

2034 4.27 3.60 19.0% 7,015 6,562 2,274 29,973 11,735 5,950 5,818 1,458 31,431

2035 4.48 3.70 19.0% 7,141 6,781 2,418 32,030 12,012 6,151 5,896 1,492 33,522

 

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

2011 5.39 6.70 16.0% $4,797 $2,676 $2,165 $25,452 $6,379 $2,601 $3,711 $794 $26,246

2012 5.12 6.50 16.0% 4,992 2,728 1,865 25,053 6,621 2,663 3,988 824 25,877

2013 4.86 6.40 17.0% 5,177 2,937 1,880 24,693 6,877 2,732 4,177 856 25,549

2014 4.61 6.30 17.0% 5,357 3,000 1,852 24,188 7,145 2,806 4,373 889 25,077

2015 4.37 6.00 18.0% 5,532 3,224 1,820 23,699 7,420 2,885 4,569 923 24,622

2016 4.13 5.70 18.0% 5,688 3,296 1,681 22,988 7,701 2,970 4,727 919 23,907

2017 3.90 5.40 18.0% 5,820 3,370 1,692 22,229 7,983 3,060 4,997 993 23,222

2018 3.69 5.00 18.0% 5,932 3,446 1,681 21,424 8,261 3,156 5,140 1,028 22,452

2019 3.49 4.70 18.0% 6,023 3,524 1,627 20,552 8,525 3,255 5,303 1,061 21,613

2020 3.30 4.50 18.0% 6,098 3,604 1,569 19,627 8,774 3,359 5,446 1,092 20,719

2021 3.09 4.30 18.0% 6,157 3,686 1,383 18,540 9,005 3,466 5,568 1,120 19,660

2022 2.91 4.10 18.0% 6,198 3,771 1,434 17,547 9,218 3,555 5,689 1,147 18,694

2023 2.76 3.90 19.0% 6,235 4,048 1,375 16,734 9,410 3,646 5,789 1,171 17,905

2024 2.61 3.70 19.0% 6,277 4,140 1,321 15,918 9,589 3,736 5,875 1,193 17,111

2025 2.46 3.50 19.0% 6,320 4,232 1,265 15,095 9,765 3,825 5,961 1,214 16,309

2026 2.33 3.30 20.0% 6,361 4,529 1,125 14,389 9,942 3,916 6,048 1,236 15,625

2027 2.22 3.10 20.0% 6,404 4,629 1,170 13,782 10,118 4,007 6,133 1,258 15,040

2028 2.19 2.90 23.0% 6,462 5,372 1,155 13,848 10,295 4,099 6,218 1,280 15,128

2029 2.18 2.80 23.0% 6,534 5,488 1,164 13,966 10,474 4,191 6,306 1,302 15,268

2030 2.18 2.70 23.0% 6,613 5,608 1,177 14,138 10,662 4,285 6,400 1,325 15,463

2031 2.18 2.50 23.0% 6,696 5,730 1,136 14,309 10,859 4,380 6,504 1,350 15,659

2032 2.20 2.50 23.0% 6,770 5,856 1,211 14,606 11,067 4,480 6,613 1,375 15,981

2033 2.35 2.40 27.0% 6,832 6,948 1,277 15,999 11,290 4,586 6,732 1,403 17,402

2034 2.54 2.30 27.0% 6,912 7,106 1,388 17,581 11,518 4,693 6,854 1,431 19,012

2035 2.75 2.30 27.0% 7,019 7,267 1,512 19,342 11,751 4,801 6,978 1,460 20,802

 

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

2011 5.39 6.70 16.0% $4,797 $2,658 $2,164 $25,433 $6,379 $2,584 $3,729 $794 $26,227

2012 5.10 6.50 16.0% 4,992 2,679 1,861 24,981 6,621 2,614 4,037 824 25,805

2013 4.83 6.40 17.0% 5,176 2,851 1,871 24,527 6,877 2,650 4,259 856 25,383

2014 4.56 6.30 17.0% 5,357 2,878 1,834 23,882 7,145 2,690 4,489 889 24,771

2015 4.29 6.00 18.0% 5,531 3,054 1,790 23,195 7,420 2,732 4,722 923 24,118

2016 4.00 5.70 18.0% 5,687 3,085 1,635 22,228 7,701 2,779 4,917 919 23,147

2017 3.73 5.30 18.0% 5,818 3,115 1,624 21,149 7,983 2,830 5,227 993 22,142

2018 3.46 4.90 18.0% 5,928 3,146 1,588 19,955 8,260 2,883 5,411 1,028 20,983

2019 3.19 4.60 18.0% 6,018 3,178 1,503 18,618 8,523 2,940 5,616 1,061 19,679

2020 2.91 4.40 18.0% 6,092 3,209 1,408 17,143 8,771 2,998 5,803 1,091 18,234

2021 2.61 4.20 18.0% 6,148 3,242 1,179 15,415 9,000 3,059 5,970 1,120 16,535

2022 2.34 3.90 19.0% 6,188 3,432 1,186 13,846 9,209 3,099 6,136 1,146 14,992

2023 2.06 3.60 19.0% 6,222 3,467 1,075 12,165 9,397 3,139 6,281 1,169 13,334

2024 1.78 3.40 20.0% 6,260 3,661 960 10,526 9,570 3,177 6,414 1,190 11,716

2025 1.50 3.10 20.0% 6,299 3,693 840 8,760 9,738 3,212 6,547 1,211 9,971

2026 1.24 2.80 23.0% 6,334 4,217 638 7,281 9,905 3,246 6,680 1,232 8,513

2027 1.00 2.50 23.0% 6,373 4,251 623 5,782 10,069 3,278 6,811 1,252 7,034

2028 0.83 2.30 27.0% 6,424 4,957 540 4,855 10,231 3,312 6,939 1,272 6,127

2029 0.67 2.00 27.0% 6,489 5,003 472 3,841 10,393 3,346 7,067 1,292 5,133

2030 0.50 1.70 27.0% 6,558 5,053 398 2,734 10,560 3,383 7,198 1,312 4,046

2031 0.31 1.50 27.0% 6,630 5,105 259 1,468 10,732 3,420 7,333 1,334 2,802

2032 0.11 1.30 27.0% 6,689 5,161 224 164 10,909 3,462 7,469 1,355 1,519

2033 0.09 1.10 27.0% 6,732 5,223 1,346 - 11,096 3,507 6,395 161 161

2034 -0.10 0.90 27.0% 6,791 5,285 213 (1,293) 11,283 3,552 7,569 - (1,293)

2035 -0.32 0.70 27.0% 6,872 5,350 (56) (2,872) 11,467 3,598 7,869 - (2,872)

 

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 

Figure 1. Combined NRRIT, RRA and SSEBA Balance

(In millions)

Employment assumption I

Employment assumption II

Employment assumption III