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 2013
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 2013.

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%

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

2010 221,000 1.0

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

average employment and rates of decline have been as follows:

 Average employment Annual rate of decline

Year for year from previous year

2011 229,000 -3.6%

2012 234,000 -2.2%

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

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

Three employment assumptions were used in the 25th actuarial valuation, which served as 

the 2012 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 45,000, 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 2012, based on the three employment assumptions 

used in the 2012 report, ranged from 223,000 to 229,000. The actual average

employment for 2012 was 234,000 (subject to later adjustment), which was above the 

range of projected amounts. Passenger employment at the end of calendar year 2012 was 

estimated to be 45,000. Based on this result, it was decided to use 2012 average 

employment of 234,000 as a starting point in this year's report and continue the use of the 

rates of decline used in the 25th valuation. In this year’s report, for employment 

assumptions I and II, passenger employment is assumed to remain level at 45,000. For 

employment assumption III, passenger employment is assumed to decline by 500 per 
3

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 2013-2037. 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.

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.

 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

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 2021 and then grows through the end of the projection period. The 

combined employer and employee tier 2 tax rate increases to 19% in 2028-2030 and then 

decreases to 18% for the remainder of the projection period.

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 23% in 2036-2037.

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 2031. 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 0.71.
5

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 2012 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 at the end of each 

year, except under employment assumption II where lower tax rates lead to lower account 

balances in 2034-2037. 

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

employment experience, with the largest impacts resulting from employment exceeding 

our projections and actual investment return of approximately 13.9% exceeding the 

expected investment return of 7.0% in calendar year 2012.

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.

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.
6

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

2012 234 234 234 3.8% 3.6% 13.9% 

2013 233 230 227 3.8 1.7 7.0 

2014 232 227 220 3.8 1.8 7.0 

2015 231 223 213 3.8 2.3 7.0 

2016 230 219 207 3.8 2.8 7.0 

2017 229 216 201 3.8 2.8 7.0 

2018 228 212 195 3.8 2.8 7.0 

2019 228 209 189 3.8 2.8 7.0 

2020 227 206 183 3.8 2.8 7.0 

2021 226 203 178 3.8 2.8 7.0 

2022 225 199 172 3.8 2.8 7.0 

2023 224 196 167 3.8 2.8 7.0 

2024 223 193 162 3.8 2.8 7.0 

2025 222 190 157 3.8 2.8 7.0 

2026 221 187 153 3.8 2.8 7.0 

2027 220 185 148 3.8 2.8 7.0 

2028 219 182 144 3.8 2.8 7.0 

2029 219 179 140 3.8 2.8 7.0 

2030 218 176 136 3.8 2.8 7.0 

2031 217 174 132 3.8 2.8 7.0 

2032 216 171 128 3.8 2.8 7.0 

2033 215 169 124 3.8 2.8 7.0 

2034 214 166 121 3.8 2.8 7.0 

2035 213 164 118 3.8 2.8 7.0 

2036 213 161 115 3.8 2.8 7.0 

2037 212 159 113 3.8 2.8 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

2013 4.87 6.40 17.0% $5,112 $3,184 $2,032 $24,512 $6,823 $3,004 $3,625 $849 $25,361

2014 4.68 6.20 17.0% 5,268 3,282 1,747 24,273 7,002 3,110 3,915 871 25,144

2015 4.52 6.00 18.0% 5,429 3,568 1,735 24,147 7,215 3,227 4,014 897 25,044

2016 4.36 5.70 18.0% 5,582 3,689 1,724 23,978 7,475 3,354 4,154 930 24,908

2017 4.21 5.30 18.0% 5,712 3,815 1,606 23,688 7,747 3,489 4,064 736 24,424

2018 4.08 5.00 18.0% 5,823 3,946 1,586 23,396 8,012 3,631 4,513 868 24,264

2019 3.96 4.80 18.0% 5,917 4,080 1,568 23,127 8,266 3,780 4,630 1,012 24,139

2020 3.89 4.60 18.0% 5,995 4,220 1,662 23,015 8,507 3,936 4,617 1,058 24,073

2021 3.82 4.50 18.0% 6,058 4,365 1,546 22,868 8,732 4,098 4,614 1,039 23,907

2022 3.79 4.40 18.0% 6,108 4,512 1,630 22,902 8,942 4,265 4,750 1,112 24,014

2023 3.79 4.30 18.0% 6,156 4,664 1,692 23,102 9,138 4,436 4,726 1,136 24,238

2024 3.80 4.20 18.0% 6,209 4,819 1,715 23,427 9,321 4,588 4,756 1,159 24,586

2025 3.82 4.10 18.0% 6,267 4,977 1,631 23,769 9,501 4,742 4,781 1,181 24,950

2026 3.87 4.00 18.0% 6,328 5,139 1,776 24,356 9,684 4,900 4,807 1,204 25,560

2027 3.94 4.00 18.0% 6,395 5,304 1,824 25,090 9,872 5,060 4,835 1,227 26,317

2028 4.06 3.90 19.0% 6,481 5,754 1,892 26,254 10,066 5,223 4,867 1,251 27,505

2029 4.20 3.90 19.0% 6,586 5,937 1,979 27,584 10,263 5,389 4,898 1,275 28,859

2030 4.34 3.90 19.0% 6,700 6,127 2,078 29,089 10,467 5,561 4,931 1,300 30,389

2031 4.47 4.00 18.0% 6,823 6,013 2,138 30,418 10,684 5,738 4,973 1,327 31,745

2032 4.61 4.10 18.0% 6,941 6,205 2,274 31,956 10,923 5,922 5,030 1,357 33,313

2033 4.78 4.10 18.0% 7,051 6,403 2,388 33,696 11,183 6,115 5,100 1,389 35,085

2034 4.96 4.20 18.0% 7,182 6,609 2,517 35,639 11,446 6,315 5,164 1,421 37,060

2035 5.14 4.40 18.0% 7,351 6,821 2,659 37,768 11,713 6,518 5,228 1,455 39,223

2036 5.32 4.50 18.0% 7,532 7,040 2,806 40,082 11,999 6,728 5,306 1,490 41,572

2037 5.51 4.60 18.0% 7,721 7,268 2,978 42,607 12,308 6,949 5,397 1,528 44,135

 

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

2013 4.87 6.40 17.0% $5,112 $3,165 $2,031 $24,492 $6,823 $2,987 $3,642 $849 $25,341

2014 4.67 6.20 17.0% 5,268 3,229 1,744 24,197 7,002 3,061 3,963 871 25,068

2015 4.49 6.00 18.0% 5,429 3,475 1,726 23,970 7,215 3,145 4,096 897 24,867

2016 4.31 5.70 18.0% 5,581 3,557 1,706 23,652 7,475 3,237 4,270 930 24,582

2017 4.13 5.30 18.0% 5,711 3,642 1,577 23,160 7,747 3,335 4,218 736 23,896

2018 3.95 4.90 18.0% 5,822 3,727 1,541 22,606 8,012 3,437 4,707 868 23,474

2019 3.79 4.70 18.0% 5,915 3,815 1,503 22,009 8,266 3,543 4,867 1,012 23,021

2020 3.65 4.60 18.0% 5,991 3,904 1,572 21,494 8,506 3,654 4,898 1,058 22,552

2021 3.51 4.40 18.0% 6,053 3,996 1,426 20,863 8,730 3,768 4,942 1,038 21,901

2022 3.39 4.30 18.0% 6,101 4,088 1,474 20,323 8,939 3,883 5,129 1,111 21,434

2023 3.29 4.10 18.0% 6,148 4,181 1,494 19,850 9,132 4,001 5,155 1,135 20,985

2024 3.19 4.00 18.0% 6,198 4,275 1,468 19,395 9,312 4,097 5,237 1,158 20,553

2025 3.10 3.80 19.0% 6,253 4,589 1,335 19,065 9,487 4,192 5,317 1,179 20,244

2026 3.04 3.70 19.0% 6,310 4,688 1,431 18,874 9,663 4,287 5,399 1,201 20,075

2027 2.99 3.60 19.0% 6,373 4,788 1,422 18,711 9,844 4,382 5,484 1,223 19,934

2028 2.96 3.40 20.0% 6,454 5,123 1,423 18,802 10,028 4,476 5,574 1,246 20,048

2029 2.93 3.30 20.0% 6,553 5,230 1,433 18,912 10,212 4,570 5,665 1,269 20,181

2030 2.90 3.30 20.0% 6,660 5,340 1,444 19,035 10,401 4,667 5,758 1,292 20,327

2031 2.87 3.20 20.0% 6,773 5,452 1,415 19,128 10,601 4,765 5,861 1,317 20,445

2032 2.84 3.10 20.0% 6,882 5,565 1,463 19,274 10,819 4,865 5,981 1,344 20,618

2033 2.83 3.10 20.0% 6,981 5,682 1,476 19,451 11,054 4,971 6,111 1,373 20,824

2034 2.81 3.00 20.0% 7,097 5,804 1,493 19,651 11,286 5,080 6,235 1,402 21,053

2035 2.78 3.00 20.0% 7,247 5,926 1,510 19,841 11,518 5,187 6,359 1,430 21,271

2036 2.84 2.90 23.0% 7,405 6,887 1,551 20,872 11,763 5,298 6,495 1,460 22,332

2037 2.92 2.90 23.0% 7,571 7,037 1,630 21,969 12,024 5,416 6,641 1,493 23,462

 

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

2013 4.87 6.40 17.0% $5,112 $3,143 $2,030 $24,470 $6,823 $2,967 $3,662 $849 $25,319

2014 4.66 6.20 17.0% 5,268 3,168 1,740 24,110 7,002 3,004 4,020 871 24,981

2015 4.46 6.00 18.0% 5,429 3,369 1,716 23,766 7,215 3,051 4,190 897 24,663

2016 4.25 5.60 18.0% 5,581 3,407 1,686 23,279 7,475 3,105 4,402 930 24,209

2017 4.03 5.30 18.0% 5,710 3,446 1,544 22,558 7,747 3,162 4,391 736 23,294

2018 3.81 4.90 18.0% 5,820 3,484 1,490 21,713 8,012 3,221 4,923 868 22,581

2019 3.59 4.70 18.0% 5,912 3,521 1,429 20,751 8,265 3,282 5,128 1,011 21,762

2020 3.38 4.50 18.0% 5,988 3,559 1,471 19,793 8,505 3,345 5,207 1,058 20,851

2021 3.16 4.30 18.0% 6,048 3,597 1,293 18,635 8,727 3,409 5,298 1,038 19,673

2022 2.95 4.20 18.0% 6,094 3,632 1,301 17,473 8,935 3,473 5,534 1,111 18,584

2023 2.74 4.00 18.0% 6,138 3,667 1,276 16,278 9,125 3,538 5,611 1,135 17,413

2024 2.53 3.80 19.0% 6,186 3,885 1,204 15,181 9,301 3,579 5,744 1,156 16,337

2025 2.31 3.50 19.0% 6,238 3,919 1,016 13,878 9,471 3,617 5,875 1,177 15,055

2026 2.11 3.30 20.0% 6,291 4,137 1,048 12,773 9,641 3,653 6,009 1,198 13,971

2027 1.91 3.10 20.0% 6,349 4,170 973 11,567 9,812 3,687 6,147 1,219 12,786

2028 1.75 2.90 23.0% 6,425 4,766 911 10,819 9,985 3,718 6,289 1,241 12,060

2029 1.60 2.70 23.0% 6,518 4,798 860 9,959 10,156 3,746 6,431 1,262 11,221

2030 1.43 2.50 23.0% 6,618 4,832 800 8,973 10,328 3,775 6,575 1,283 10,256

2031 1.34 2.30 27.0% 6,722 5,632 720 8,603 10,510 3,802 6,730 1,305 9,908

2032 1.26 2.10 27.0% 6,824 5,673 732 8,184 10,706 3,833 6,897 1,330 9,514

2033 1.17 1.90 27.0% 6,912 5,722 704 7,698 10,913 3,870 7,069 1,355 9,053

2034 1.08 1.80 27.0% 7,014 5,778 673 7,134 11,113 3,910 7,228 1,380 8,514

2035 0.97 1.60 27.0% 7,148 5,834 635 6,454 11,307 3,949 7,382 1,404 7,858

2036 0.84 1.50 27.0% 7,286 5,891 581 5,641 11,510 3,989 7,545 1,429 7,070

2037 0.71 1.40 27.0% 7,424 5,956 530 4,703 11,720 4,035 7,711 1,455 6,158

 

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 

Figure 1. Combined NRRIT, RRA and SSEBA Balance

(In millions)

Employment assumption I

Employment assumption II

Employment assumption III