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 2020
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 2015 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

1970 640,000 3.2
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

2015 247,000 -2.2

Between 1955 and 2015, the average annual rate of decline was 2.7 percent. Since 2015, 

average employment has continued to decline with rates of decline as follows:

 Average employment Annual rate of decline

Year for year from previous year

2016 231,000 6.5%

2017 225,000 2.6

2018 224,000 0.4

2019 214,000 4.5

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 27th actuarial valuation, which served as 

the 2018 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 48,000, 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 40,000 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 2019 annual report continued the use of the three employment assumptions, updating 

them to reflect recent employment declines. This 2020 annual report also continues to 

use the three employment assumptions with the exception of an additional decline in one 

year as outlined below.

The projected average employment for 2019, based on the three employment assumptions 

used in the 2019 annual report, ranged from 217,000 to 222,000. The actual average

employment for 2019 was 214,000 (subject to later adjustment), which was lower than

the range of projected amounts. Average passenger employment for calendar year 2019 
3

was estimated to be 48,000. Based on this result, it was decided to use 2019 average 

employment of 214,000 as a starting point in this year's report.

The rates of decline in freight employment from the 27th valuation continue to be used in 

all years except for 2020, where an additional decline in freight employment of 5, 6 or 7

percent between 2019 and 2020 is assumed to recognize a decline in employment 

measured for January 2020 to 197,000. The assumed declines in freight employment for 

2020 are thus 5.5 percent, 8 percent, and 10.5 percent under employment assumptions I, 

II and III, respectively. These declines led to increases in assumed withdrawals in 2019 

and 2020.

For employment assumptions I and II, passenger employment is assumed to remain level 

at 48,000. For employment assumption III, passenger employment is assumed to decline 

by 500 per year until a level of 40,000 is reached and then remain level. 

Although the current coronavirus pandemic may result in employment falling below the 

employment assumptions noted above in the short term, these assumptions are intended 

to provide a reasonable range within which overall experience is expected to fall during

the projection period. With the exception of the economic assumptions shown in Table 1

and the assumptions discussed above, the assumptions used in this report correspond to 

those published in the Twenty-Seventh Actuarial Valuation of the Assets and Liabilities

Under the Railroad Retirement Acts as of December 31, 2016 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 2020-2044. 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

 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

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.

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 
5

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.

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

declines through 2025 but then increases through the remainder of the 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 

generally declines throughout the projection period, except for an increase in 2044. The 

combined employer and employee tier 2 tax rate increases to 19% in 2031-2036, with 

further increases to 20% in 2037-2043 and 23% in 2044.

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

declines throughout the entire projection period. The combined employer and employee 

tier 2 tax rate increases in steps, starting at 18% in 2020, until reaching 27% in 2039. 

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 0.36.

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 under all 

assumptions except under employment assumption III, where the ABR falls to 0.36 in 

calendar year 2044.

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 2019 Report

Favorable investment return in calendar year 2019 results in higher starting combined 

RRA, NRRIT, and SSEBA balances under each employment assumption. Lower 

projected employment, however, results in generally lower projected payroll tax income 

which is partially offset by lower projected benefit payments. Under each employment 

assumption, the combined account balances are lower at the end of the projection period 

than in last year’s report. 

Under each employment assumption, the tax rates are the same or within 1 percent of last 

year’s report, except under employment assumption III for 2036 and 2039, where the 

rates are 3 and 4 percent higher, respectively.
6

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.

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

2019 214 214 214 1.4% 2.8% 16.8% 

2020 205 201 196 2.0 1.6 0.0 

2021 204 198 190 3.6 0.5 7.0 

2022 203 195 185 3.6 1.5 7.0 

2023 202 192 179 3.6 2.6 7.0 

2024 202 189 174 3.6 2.6 7.0 

2025 201 186 169 3.6 2.6 7.0 

2026 200 183 164 3.6 2.6 7.0 

2027 199 181 160 3.6 2.6 7.0 

2028 199 178 155 3.6 2.6 7.0 

2029 198 175 151 3.6 2.6 7.0 

2030 197 173 147 3.6 2.6 7.0 

2031 196 170 142 3.6 2.6 7.0 

2032 196 168 138 3.6 2.6 7.0 

2033 195 165 134 3.6 2.6 7.0 

2034 194 163 131 3.6 2.6 7.0 

2035 193 161 127 3.6 2.6 7.0 

2036 193 159 124 3.6 2.6 7.0 

2037 192 156 121 3.6 2.6 7.0 

2038 191 154 118 3.6 2.6 7.0 

2039 191 152 115 3.6 2.6 7.0 

2040 190 150 113 3.6 2.6 7.0 

2041 189 148 110 3.6 2.6 7.0 

2042 188 146 108 3.6 2.6 7.0 

2043 188 144 105 3.6 2.6 7.0 

2044 187 142 103 3.6 2.6 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

2020 4.42 5.00 18.0% $5,757 $3,536 $115 $24,643 $7,640 $3,221 $4,288 $951 $25,594

2021 4.26 4.90 18.0% 5,739 3,620 1,647 24,171 7,677 3,315 4,353 942 25,113

2022 4.21 4.80 18.0% 5,743 3,732 1,705 23,865 7,770 3,438 4,356 968 24,833

2023 4.15 4.80 18.0% 5,766 3,846 1,694 23,639 7,937 3,566 4,391 988 24,627

2024 4.10 4.70 18.0% 5,799 3,963 1,684 23,488 8,100 3,695 4,426 1,009 24,497

2025 4.05 4.60 18.0% 5,838 4,079 1,602 23,330 8,260 3,824 4,456 1,028 24,358

2026 4.02 4.50 18.0% 5,879 4,272 1,677 23,401 8,422 4,011 4,430 1,049 24,450

2027 4.02 4.40 18.0% 5,926 4,396 1,687 23,558 8,583 4,147 4,457 1,069 24,627

2028 4.01 4.30 18.0% 5,990 4,522 1,703 23,793 8,747 4,283 4,483 1,089 24,882

2029 4.01 4.20 18.0% 6,071 4,650 1,723 24,095 8,913 4,421 4,512 1,109 25,204

2030 4.01 4.20 18.0% 6,163 4,783 1,748 24,463 9,083 4,563 4,542 1,131 25,594

2031 4.01 4.10 18.0% 6,260 4,919 1,745 24,868 9,262 4,692 4,593 1,153 26,021

2032 4.04 4.10 18.0% 6,351 5,060 1,808 25,385 9,452 4,826 4,649 1,176 26,561

2033 4.08 4.10 18.0% 6,429 5,205 1,848 26,009 9,654 4,967 4,712 1,201 27,210

2034 4.13 4.10 18.0% 6,525 5,355 1,896 26,735 9,858 5,111 4,772 1,227 27,962

2035 4.18 4.10 18.0% 6,651 5,510 1,951 27,545 10,059 5,257 4,826 1,252 28,797

2036 4.22 4.10 18.0% 6,786 5,670 2,006 28,434 10,268 5,408 4,886 1,278 29,712

2037 4.28 4.10 18.0% 6,928 5,835 2,076 29,416 10,486 5,564 4,948 1,305 30,721

2038 4.34 4.10 18.0% 7,086 6,007 2,148 30,486 10,704 5,726 5,005 1,332 31,818

2039 4.40 4.20 18.0% 7,244 6,185 2,226 31,653 10,929 5,895 5,062 1,359 33,012

2040 4.48 4.20 18.0% 7,405 6,371 2,310 32,929 11,164 6,071 5,122 1,389 34,318

2041 4.55 4.30 18.0% 7,589 6,562 2,401 34,303 11,406 6,252 5,185 1,419 35,722

2042 4.62 4.30 18.0% 7,799 6,760 2,500 35,764 11,662 6,437 5,257 1,450 37,214

2043 4.68 4.40 18.0% 8,028 6,964 2,604 37,305 11,931 6,629 5,335 1,484 38,789

2044 4.73 4.40 18.0% 8,284 7,177 2,712 38,909 12,216 6,827 5,424 1,519 40,428

 

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

2020 4.41 5.00 18.0% $5,757 $3,512 $115 $24,619 $7,640 $3,200 $4,309 $951 $25,570

2021 4.25 4.90 18.0% 5,739 3,552 1,643 24,076 7,677 3,257 4,412 943 25,019

2022 4.17 4.80 18.0% 5,743 3,625 1,695 23,654 7,770 3,345 4,449 968 24,622

2023 4.09 4.80 18.0% 5,766 3,701 1,675 23,264 7,937 3,438 4,519 988 24,252

2024 4.01 4.70 18.0% 5,798 3,777 1,652 22,895 8,100 3,531 4,590 1,009 23,904

2025 3.91 4.50 18.0% 5,836 3,852 1,553 22,463 8,260 3,621 4,659 1,028 23,491

2026 3.83 4.50 18.0% 5,876 4,000 1,608 22,194 8,421 3,768 4,673 1,048 23,242

2027 3.76 4.40 18.0% 5,922 4,076 1,592 21,940 8,582 3,860 4,742 1,068 23,008

2028 3.68 4.20 18.0% 5,985 4,152 1,577 21,684 8,744 3,951 4,813 1,089 22,773

2029 3.59 4.10 18.0% 6,065 4,229 1,562 21,410 8,909 4,041 4,888 1,109 22,519

2030 3.49 4.00 18.0% 6,154 4,307 1,544 21,108 9,077 4,132 4,966 1,130 22,238

2031 3.41 3.90 19.0% 6,249 4,601 1,501 20,961 9,253 4,209 5,066 1,152 22,113

2032 3.35 3.80 19.0% 6,337 4,686 1,524 20,834 9,438 4,287 5,173 1,175 22,009

2033 3.29 3.80 19.0% 6,412 4,773 1,517 20,711 9,635 4,371 5,289 1,199 21,910

2034 3.22 3.70 19.0% 6,504 4,863 1,511 20,581 9,832 4,454 5,402 1,223 21,804

2035 3.14 3.60 19.0% 6,626 4,954 1,504 20,414 10,024 4,537 5,511 1,247 21,661

2036 3.05 3.50 19.0% 6,755 5,048 1,488 20,195 10,222 4,621 5,626 1,272 21,467

2037 2.99 3.40 20.0% 6,891 5,385 1,488 20,177 10,428 4,709 5,744 1,297 21,474

2038 2.92 3.40 20.0% 7,042 5,490 1,488 20,113 10,632 4,798 5,859 1,323 21,436

2039 2.84 3.30 20.0% 7,192 5,598 1,485 20,005 10,840 4,891 5,975 1,348 21,353

2040 2.77 3.20 20.0% 7,342 5,711 1,478 19,852 11,054 4,988 6,093 1,375 21,227

2041 2.68 3.10 20.0% 7,514 5,827 1,467 19,632 11,272 5,087 6,213 1,402 21,034

2042 2.58 3.10 20.0% 7,708 5,945 1,452 19,321 11,500 5,187 6,342 1,430 20,751

2043 2.46 3.00 20.0% 7,919 6,068 1,429 18,899 11,737 5,289 6,477 1,459 20,358

2044 2.41 2.90 23.0% 8,154 7,018 1,429 19,192 11,985 5,393 6,622 1,490 20,682

 

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

2020 4.41 5.00 18.0% $5,757 $3,485 $115 $24,592 $7,640 $3,176 $4,332 $951 $25,543

2021 4.23 4.90 18.0% 5,739 3,476 1,638 23,967 7,677 3,190 4,479 943 24,910

2022 4.14 4.80 18.0% 5,742 3,505 1,684 23,413 7,770 3,240 4,555 968 24,381

2023 4.03 4.80 18.0% 5,765 3,537 1,652 22,838 7,937 3,294 4,664 988 23,826

2024 3.90 4.70 18.0% 5,796 3,568 1,615 22,224 8,100 3,346 4,775 1,009 23,233

2025 3.75 4.50 18.0% 5,834 3,597 1,497 21,484 8,260 3,395 4,885 1,028 22,512

2026 3.62 4.40 18.0% 5,873 3,697 1,529 20,836 8,421 3,497 4,943 1,048 21,884

2027 3.47 4.30 18.0% 5,918 3,723 1,486 20,126 8,581 3,544 5,057 1,068 21,194

2028 3.31 4.20 18.0% 5,979 3,747 1,437 19,331 8,742 3,587 5,175 1,088 20,419

2029 3.13 4.00 18.0% 6,057 3,771 1,382 18,427 8,905 3,628 5,297 1,108 19,535

2030 2.94 3.80 19.0% 6,144 3,975 1,326 17,583 9,071 3,667 5,424 1,129 18,712

2031 2.74 3.70 19.0% 6,236 3,999 1,235 16,580 9,242 3,691 5,573 1,150 17,730

2032 2.54 3.60 19.0% 6,321 4,022 1,195 15,476 9,422 3,715 5,730 1,173 16,649

2033 2.34 3.40 20.0% 6,392 4,229 1,125 14,438 9,613 3,741 5,895 1,196 15,634

2034 2.14 3.20 20.0% 6,480 4,254 1,053 13,266 9,802 3,766 6,059 1,220 14,486

2035 1.90 3.00 20.0% 6,596 4,283 972 11,925 9,985 3,791 6,216 1,242 13,167

2036 1.72 2.90 23.0% 6,719 4,878 893 10,977 10,172 3,820 6,375 1,265 12,242

2037 1.53 2.70 23.0% 6,849 4,920 831 9,878 10,363 3,852 6,535 1,289 11,167

2038 1.32 2.50 23.0% 6,993 4,965 754 8,604 10,552 3,885 6,690 1,313 9,917

2039 1.19 2.30 27.0% 7,134 5,778 693 7,941 10,742 3,921 6,844 1,336 9,277

2040 1.06 2.10 27.0% 7,276 5,838 646 7,150 10,934 3,961 6,997 1,360 8,510

2041 0.91 1.90 27.0% 7,436 5,901 589 6,203 11,126 4,001 7,149 1,384 7,587

2042 0.75 1.70 27.0% 7,617 5,964 522 5,073 11,324 4,042 7,307 1,408 6,481

2043 0.57 1.50 27.0% 7,811 6,032 441 3,734 11,527 4,083 7,469 1,433 5,167

2044 0.36 1.40 27.0% 8,027 6,102 344 2,154 11,736 4,126 7,636 1,459 3,613

 

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

Figure 1. Combined NRRIT, RRA and SSEBA Balance

(In millions)

Employment assumption I

Employment assumption II

Employment assumption III