FOM1 Art 3 Appendices 

Appendix A – Railroad Employer Pension Table 

Click Railroad Employer Pension Table to access the Table. 

Appendix B - Explanation of Closing Date for Employees Born Before 

September 2, 1916 

B1 Closing Date Requirement for Sup Ann. 

Effective October 1, 1981, the "closing date" provision described in this appendix does 

not apply to employees born September 2, 1916, or later. The "closing date" provisions 

described below still apply to employees who were born prior to September 2, 1916. 

The supplemental annuity "closing date" provision became effective January 1, 1971. 

The closing date indicated in a schedule based on the employee’s date of birth. Each 

employee's closing date was the last day that employee could perform compensated 

service for an RR Act employer and still be entitled to a supplemental annuity. At that 

time, the "closing date" requirement applied to all employees, including those who had 

already retired. 

If employees performed any service after their closing date, they were not eligible for 

the SUP ANN. If annuitants performed employer service after their closing dates, their 

SUP ANNs terminated as of the last day of the month before the month they returned to 

service. An exception was made for an employee who had at least 276 months of 

service but less than 300 months of service on the scheduled closing date, as explained 

below. 

The RRB discontinued releasing closing date notices in 1975. Employees should have 

been advised of their closing date if they submitted advance proof of age. 

If annuitants worked through their closing dates and alleged that they received 

erroneous advice from RRB as to the last date that they could work and receive SUP 

ANNs, the case were referred to the Methods and Procedures section for consideration. 

Particular attention was paid to those cases in which individuals had a birthday on the 

first day of the month and attained the age that determined their closing date in the 

preceding month. 

B2. Schedule Of Closing Dates. 

Initially, this provision applied to employees who were age 68 or over in 1970. The age 

was gradually reduced over the next 3 years until it reached age 65 in 1973. For 

employees who attained age 65 after 1973, their "closing date" was the last day of the 

month following the month in which they attain age 65. 

An employee's "closing date" was determined from the following schedule: 

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EE DOB 

Before 1/2/1903 

1/2/1903 - 2/1/1903 

2/2/1903 - 3/1/1903 

3/2/1903 - 4/1/1903 

4/2/1903 - 5/1/1903 

5/2/1903 - 6/1/1903 

6/2/1903 - 7/1/1903 

7/2/1903 - 8/1/1903 

8/2/1903 - 9/1/1903 

9/2/1903 - 10/1/1903 

0/2/1903 - 11/1/1903 

1/2/1903 - 12/1/1903 

2/2/1903 - 1/1/1904 

1/2/1904 - 1/1/1905 

1/2/1905 - 2/1/1905 

2/2/1905 - 3/1/1905 

3/2/1905 - 4/1/1905 

4/2/1905 - 5/1/1905 

5/2/1905 - 6/1/1905 

6/2/1905 - 7/1/1905 

7/2/1905 - 8/1/1905 

8/2/1905 - 9/1/1905 

9/2/1905 - 10/1/1905 

0/2/1905 - 11/1/1905 

1/2/1905 - 12/1/1905 

2/2/1905 - 1/1/1906 

1/2/1906 - 1/1/1907 

1/2/1907 - 2/1/1907 

2/2/1907 - 3/1/1907 

3/2/1907 - 4/1/1907 

4/2/1907 - 5/1/1907 

5/2/1907 - 6/1/1907 

6/2/1907 - 7/1/1907 

7/2/1907 - 8/1/1907 

8/2/1907 - 9/1/1907 

9/2/1907 - 10/1/1907 

10/2/1907 - 11/1/1907 

11/2/1907 - 12/1/1907 

12/2/1907 - 1/1/1908 

1/2/1908 - 1/1/1909 

1/2/1909 - 9/1/1916 

After 9/1/16 

Employee Attains Closing Date 

Age 68 before 1/1971 1/31/1971 

Age 68 in 1/1971 2/28/1971 

Age 68 in 2/1971 3/31/1971 

Age 68 in 3/1971 4/30/1971 

Age 68 in 4/1971 5/31/1971 

Age 68 in 5/1971 6/30/1971 

Age 68 in 6/1971 7/31/1971 

Age 68 in 7/1971 8/31/1971 

Age 68 in 8/1971 9/30/1971 

Age 68 in 9/1971 10/31/1971 

Age 68 in 10/1971 11/30/1971 

Age 68 in 11/1971 12/31/1971 

Age 68 in 12/1971 1/31/1972 

Age 67 in 1971 1/31/1972 

Age 67 in 1/1972 2/29/1972 

Age 67 in 2/1972 3/31/1972 

Age 67 in 3/1972 4/30/1972 

Age 67 in 4/1972 5/31/1972 

Age 67 in 5/1972 6/30/1972 

Age 67 in 6/1972 7/31/1972 

Age 67 in 7/1972 8/31/1972 

Age 67 in 8/1972 9/30/1972 

Age 67 in 9/1972 10/31/1972 

Age 67 in 10/1972 11/30/1972 

Age 67 in 11/1972 12/31/1972 

Age 67 in 12/1972 1/31/1973 

Age 66 in 1972 1/31/1973 

Age 66 in 1/1973 2/29/1973 

Age 66 in 2/1973 3/31/1973 

Age 66 in 3/1973 4/30/1973 

Age 66 in 4/1973 5/31/1973 

Age 66 in 5/1973 6/30/1973 

Age 66 in 6/1973 7/31/1973 

Age 66 in 7/1973 8/31/1973 

Age 66 in 8/1973 9/30/1973 

Age 66 in 9/1973 10/31/1973 

Age 66 in 10/1973 11/30/1973 

Age 66 in 11/1973 12/31/1973 

Age 66 in 12/1973 1/31/1974 

Age 65 in 1973 1/31/1974 

Age 65 after 1973 The last day of the month 

following the month in which age 65 is attained. 

Age 65 after 9/1981 Closing date provision 

eliminated. 

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B3. Special Closing Date For Employees Who Had Between 23 And 25 Years Of 

Railroad Service On The Regular Closing Date. 

A special closing date provision applied for employees born before September 2, 1916, 

if they had at least 276 months but less than 300 months of creditable railroad service 

on their regular closing date and they were not entitled (or potentially entitled) to an RIB 

before their regular closing date. However, if these employees had the required service 

months but lacked a current connection, the special closing date was the last day of the 

month in which the current connection was acquired. The closing date was extended to 

the earliest of the following dates: 

A. The last day of the month before the month in which RIB entitlement (or 

potentially entitlement) began; or 

B. The last day of the month in which the 300th service month was acquired; or 

Example: John Dell was born 8-25-16, had 299 service months through 9-30-81 

(his regular closing date) and had a current connection. He earned his 300th 

service month in 10-81, ceased railroad employment as of 10-31-81. His special 

closing date was 10-31-81, and he was entitled to a SUP ANN since he ceased 

railroad service on that date. 

C. The last day of the month in which the current connection was acquired. 

B4. How Special Closing Date Was Determined Based On Month Employee 

Became Entitled Or Potentially Entitled To Rib. 

If employees became entitled or potentially entitled to an RIB after their regular closing 

date, their special closing date was the last day of the month before the month of RIB 

entitlement. In determining the special closing date, it was assumed that the point in 

time when employees became potentially entitled to an RIB was the day they earned 

the dollar amount that gave the qualifying quarter of coverage and not the effective date 

of potential entitlement. 

Example: Alice Smith was born 8-25-16, was concurrently employed by a railroad and 

an employer covered by the SS Act. She had 298 service months as of 10-1981 (her 

regular closing date was 9-30-81) and a current connection. She needed one quarter of 

coverage to qualify for an RIB. In 11-1981 she performed work that gave her the 

qualifying quarter of coverage and her 299th service month. In 12-1981 she acquired 

her 300th service month and ceased railroad service on 12-31-81. Her special closing 

date was 10-31-81, the last day of the month before the month in which she earned her 

qualifying quarter of coverage. She was not entitled to a SUP ANN since she 

performed railroad service after that date. 

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B5.How Special Closing Date Was Determined When Employee First Qualified For 

A Sup Ann And Became Entitled Or Potentially Entitled To Rib In Same Quarters. 

In absence of evidence to the contrary, it was assumed that employees performed RR 

service before they earned the dollar amount that made them entitled or potentially 

entitled for an RIB. In this situation, the employees' closing date was the last day of the 

month they first became eligible for a SUP ANN and they were entitled to SUP ANNs 

providing they did not perform RR service after that date. This principle applied even if 

the employee became eligible for a SUP ANN and an RIB in the same calendar month. 

Example: Mr. Casey Jones was born 8-25-16 and was concurrently employed by a 

railroad and an employer covered by the SS Act. He had 299 service months as of 10-

1981 (his regular closing date was 9-30-81) and a current connection. He needed one 

quarter of coverage to qualify for RIB. In 11-1981 he performed work that gave him his 

qualifying quarter of coverage, acquired his 300th service month, and ceased railroad 

service. Since both events occurred in the same month, his special closing date was 

11-30-81, which was the last day of the month in which he acquires 300 months of 

service. He was entitled to a SUP ANN since he did not perform railroad service after 

that date. 

B6. Effect Of Vacation Pay, Pay For Time Lost, Sick Leave, Separation Pay, And 

Similar Payments Reported For A Period After The Closing Date. 

A. Vacation Pay. - Vacation pay was not credited to a period after the closing date 

for employees whose actual DLW was before that date and who were otherwise 

entitled to a SUP ANN. This was true even for individuals who retained status as 

an "employee" for the period covered by the vacation pay after their DLW and 

closing date. Vacation pay was never credited in such a manner that it would 

constitute service after an employee's closing date as that would have caused 

loss of entitlement to a SUP ANN. 

B. Pay for Time Lost, Sick Leave, Separation Pay, and Similar Payments. - If, under 

existing procedure, such a payment would be credited to a period after the 

employee's closing date, the employee was given an opportunity to have the 

payment allocated to a period before the closing date. 

Appendix_C - Employee Annuity Legislative History 

The Age and Service Employee Legislative History is in RCM 1.1, Appendix A. 

The Employee Disability Annuity Legislative History is in DCM 3, Appendix D. (The 

Employee Disability Freeze and DIB (O/M) Legislative History is in DCM 6 Appendix 4). 

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Appendix_D - Supplemental Annuity Rates 

D1. 1974 Railroad Retirement Act Supplemental Annuities (Before Reduction For 

Employer Pension) 

The supplemental annuities paid under the 1974 Railroad Retirement Act (RR Act) 

began January 1, 1975, or later. The minimum SUP ANN rate is $23.00 for 25 years of 

service. The years of service used to compute the net SUP ANN under the 1974 RR 

Act are not rounded and the SUP ANN rate is not rounded to the next higher nickel. The 

employee's tier 2 rate does not include a reduction for the SUP ANN. 

YRS/MOS. 

OF SERVICE 

1974 RR ACT 

SUP ANN RATE 

YRS/MOS. 

OF SERVICE 

1974 RR ACT 

SUP ANN RATE 

25 

25 - 2/12 

25 - 4/12 

25 - 6/12 

25 - 8/12 

25 - 10/12 

23.00 

23.67 

24.33 

25.00 

25.67 

26.33 

25 - 1/12 

25 - 3/12 

25 - 5/12 

25 - 7/12 

25 - 9/12 

25 - 11/12 

23.33 

24.00 

24.67 

25.33 

26.00 

26.67 

26 

26 - 2/12 

26 - 4/12 

26 - 6/12 

26 - 8/12 

26 - 10/12 

27.00 

27.67 

28.33 

29.00 

29.67 

30.33 

26 - 1/12 

26 - 3/12 

26 - 5/12 

26 - 7/12 

26 - 9/12 

26 - 11/12 

27.33 

28.00 

28.67 

29.33 

30.00 

30.67 

27 

27 - 2/12 

27 - 4/12 

27 - 6/12 

27 - 8/12 

27 - 10/12 

31.00 

31.67 

32.33 

33.00 

33.67 

34.33 

27 - 1/12 

27 - 3/12 

27 - 5/12 

27 - 7/12 

27 - 9/12 

27 - 11/12 

31.33 

32.00 

32.67 

33.33 

34.00 

34.67 

28 

28 - 2/12 

28 - 4/12 

28 - 6/12 

28 - 8/12 

28 - 10/12 

35.00 

35.67 

36.33 

37.00 

37.67 

38.33 

28 - 1/12 

28 - 3/12 

28 - 5/12 

28 - 7/12 

28 - 9/12 

28 - 11/12 

35.33 

36.00 

36.67 

37.33 

38.00 

38.67 

29 

29 - 2/12 

29 - 4/12 

29 - 6/12 

29 - 8/12 

39.00 

39.67 

40.33 

41.00 

41.67 

29 - 1/12 

29 - 3/12 

29 - 5/12 

29 - 7/12 

29 - 9/12 

39.33 

40.00 

40.67 

41.33 

42.00 

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YRS/MOS. 

OF SERVICE 

1974 RR ACT 

SUP ANN RATE 

YRS/MOS. 

OF SERVICE 

1974 RR ACT 

SUP ANN RATE 

29 - 10/12 42.33 29 - 11/12 42.67 

30 or more 43.00 

D2. 1937 Railroad Retirement Act Supplemental Annuities (Before Reduction For 

Employer Pension) 

The SUP ANN paid before 1975 under the 1937 RR Act continue to use the 1937 SUP 

ANN rates. The years of service used to compute the net SUP ANN under the 1937 RR 

Act remains rounded if more they include a fraction of 6/12 or larger and the SUP ANN 

rate remains rounded to the next higher nickel amount (except the $70.00 maximum 

amount). The employee's equalized tier 2 rate includes a reduction for the SUP ANN. 

YRS/MOS. 

OF SERVICE 

1937 RR ACT 

SUP ANN RATE 

YRS/MOS. 

OF SERVICE 

1937 RR ACT 

SUP ANN RATE 

24 - 6/12 45.05 24 - 7/12 45.05 

24 - 8/12 45.05 24 - 9/12 45.05 

24 - 10/12 45.05 24 - 11/12 45.05 

25 45.05 25 - 1/12 45.45 

25 - 2/12 45.85 25 - 3/12 46.25 

25 - 4/12 46.75 25 - 5/12 47.15 

25 - 6/12 50.05 25 - 7/12 50.05 

25 - 8/12 50.05 25 - 9/12 50.05 

25 - 10/12 50.05 25 - 11/12 50.05 

26 50.05 26 - 1/12 50.45 

26 - 2/12 50.85 26 - 3/12 51.25 

26 - 4/12 51.75 26 - 5/12 52.15 

26 - 6/12 55.05 26 - 7/12 55.05 

26 - 8/12 55.05 26 - 9/12 55.05 

26 - 10/12 55.05 26 - 11/12 55.05 

27 55.05 27 - 1/12 55.45 

27 - 2/12 55.85 27 - 3/12 56.25 

27 - 4/12 56.75 27 - 5/12 57.15 

27 - 6/12 60.05 27 - 7/12 60.05 

27 - 8/12 60.05 27 - 9/12 60.05 

27 - 10/12 60.05 27 - 11/12 60.05 

28 60.05 28 - 1/12 60.45 

28 - 2/12 60.85 28 - 3/12 61.25 

28 - 4/12 61.75 28 - 5/12 62.15 

28 - 6/12 65.05 28 - 7/12 65.05 

28 - 8/12 65.05 28 - 9/12 65.05 

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YRS/MOS. 

OF SERVICE 

1937 RR ACT 

SUP ANN RATE 

YRS/MOS. 

OF SERVICE 

1937 RR ACT 

SUP ANN RATE 

28 - 10/12 65.05 28 - 11/12 65.05 

29 65.05 29 - 1/12 65.45 

29 - 2/12 65.85 29 - 3/12 66.25 

29 - 4/12 66.75 29 - 5/12 67.15 

29 - 6/12 70.00 29 - 7/12 70.00 

29 - 8/12 70.00 29 - 9/12 70.00 

29 - 10/12 70.00 29 - 11/12 70.00 

30 or more 70.00 

Appendix_E - Supplemental Annuity Historical Background 

E1. Legislative History 

Effective Date Supplemental Annuity Provision 

11-01-66 Limited eligibility to annuitants first awarded regular annuities 

after June 30, 1966. 

Required coordination of SUP ANN benefits with railroads with 

approved private railroad pension plans to reduce the SUP ANN 

and create supplemental annuity tax credits for the railroads 

based on those reductions. 

The RRB Supplemental Annuity Tax Credit/Tax Liability 

(TACAL) program was established to create quarterly reports of 

supplemental annuity tax credits for these railroads. 

Established operation of the program for a fixed period of time 

(5 years). 

Financed benefits through a separate supplemental annuity 

account maintained by employer contributions only. 

Subjected SUP ANN payments to Federal income tax. 

04-01-1970 Established borrowing authority. SUP ANN payments due 

between 12-1-1969 and 3-1-1970 had been delayed until 

sufficient tax receipts were received to cover the SUP ANN 

payments. 

Limited entitlement to eligible employees who ceased RR 

service on or before their "closing date". 

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Established permanent SUP ANN program as part of the 

Railroad Retirement system. 

Gave RRB authority to adjust the man-hour SUP ANN tax rate 

quarterly. 

Established "Supplemental Annuity Tax Liabilities" for 

employers with pension plans established through collective 

bargaining agreements (negotiated pension plans). The TACAL 

program was expanded to create quarterly reports of 

supplemental annuity tax liabilities for these railroads. 

01-01-1975 Extended SUP ANN eligibility to annuitants age 60 with 30 

years of service whose annuities were first awarded after June 

30, 1974. 

Changed supplemental annuity rates for new entitlements- from 

minimum $23 at 25 years of service plus $4 for each additional 

year up to a maximum of $43 at 30 years of service. For new 

entitlements, also removed SUP ANN reduction from the 

regular annuity computation. 

For cases converted from the 1937 RRA to the 1974 RRA, the 

1974 RRA conversion rate left the SUP ANN at the old rate (i.e. 

$70.00) and left the reduction to the basic annuity. The 1974 

RRA tier 2 was based on an “equalized amount.” 

10-01-1981 Eliminated the closing date requirement effective 10-1-81, for 

employees born 9-2-16 or later. 

Required employees to have at least one month of railroad 

service before 10-1-81 to be eligible for a SUP ANN. 

Stopped rounding years of service. 

12-01-1988 Permitted last pre-retirement non-railroad (LPE) after the after 

ABD with earnings deductions in tier 2 and supplemental 

annuity. 

10-1-1987 PL 100-119 (Gramm-Rudman) cut back SUP ANN by 8.5%. 

Withheld amounts later restored. 

10-1-1989 PL 100-119 (Gramm-Rudman) cut back SUP ANN by .7%. 

10-1-1990 Restored full SUP ANN. Stated that SUP ANN is exempt from 

any further cutbacks for PL 100-119. 

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1-1-2002 Section 203(b) of the Railroad Retirement and Survivor’s 

Improvement Act of 2001, removed the supplemental annuity 

tax, supplemental annuity tax credits, and supplemental annuity 

tax liabilities from the Internal Revenue Code sections 3221(c) 

and 3221(d) effective for months after December 2001. The 

SUP ANN is now funded by part of the railroad tier 2 taxes. 

1-1-2003 The TACAL program created reports in the year 2002 for 

adjustments for months before January 2002 only. 

The TACAL program was shut down. 

E2. SUP ANN Cutbacks From 1987 Through 1990 

Supplemental annuity funds were sequestered for two periods under the provisions of 

PL100-119, the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 

1987 (also referred to as the Gramm-Rudman). However, it was later determined that 

the SUP ANN is not subject to sequestration under this Act. Therefore, only the two 

periods listed below are affected by this legislation. 

The SUP ANN Tax Credit (TACAL) cases were not affected by this cutback. The 

cutback applied to the SUP ANN rate after reduction for the employer pension. 

A. November 1987 through January 1988.--The net SUP ANN rate for recurring SUP 

ANNs or SUP ANN accruals was cut back by 8.5%. However, the accumulated 

cutback amounts was subsequently paid to the employees in a special DAISY run 

on February 5, 1988, as "one payment only." All SUP ANN Tax Liability (TACAL) 

records with a net SUP ANN greater than zero show this accrual posted to the 

month of April 1970. 

B. October 1989 through September 1990.--

1. The net SUP ANN rate for recurring SUP ANNs or SUP ANN accruals was cut 

back by 2.7% from November 1989 through February 1990. 

2. Beginning with payments for February 1990, the reduction percentage was 

changed to .7% and made retroactive to October 1989. The accumulated 

cutback amounts to that point (difference between 2.7% and .7%) were paid to 

the employees in a February 1990 mass adjustment. All SUP ANN Tax Liability 

(TACAL) records with a net SUP ANN greater than zero included this accrual in 

the month in which the accrual was paid; and, 

3. The cutback of .7% continued through September 1990. 

C. October 1990 or Later.--Effective October 1,1990, no new or increased SUP ANN 

payments were cutback. Initial supplemental annuity payments made October 1, 

1990 or later or SUP ANN reinstatements were not cutback, even if they retroacted 

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into the October 1, 1989 through September 30, 1990 period. However, the amount 

withheld from SUP ANN from October 1989 through September 1990 was not paid 

to the annuitants who did not need a SUP ANN adjustment for some other reason. 

The cutback remained for the closed period. 

E3. Effect of Railroad Retirement and Survivors Improvement Act (RRSIA) on 

Supplemental Annuity 

Employer Tax Liabilities 

A. Effective January 2002 or Later - The RRSIA of 2001 amendments deleted Section 

3221(d) from the Internal Revenue (IRS) Code effective with calendar year 2002. 

That section had been the basis for supplemental annuity tax liabilities. The RRB 

supplemental annuity is now funded through the tier 2 tax on employers. 

B. Before January 2002 - A supplemental annuity tax liability was billed to the railroad 

as a "Special Supplemental Tax" under Section 3221(d) of the Internal Revenue 

Code for any month for which the employee was paid an RRB supplemental annuity 

when, prior to retirement, the employee was covered under a private pension plan, 

approved by the RRB's Bureau of Law, that was established pursuant to a collective 

bargaining (union) agreement. These are referred to as collective bargaining (CB) 

cases. Effective January 1, 2000 through December 2001, the employee must 

have been a member of the collective bargaining unit before retirement to be 

considered a CB case. 

There was a "Special Supplemental Tax" (in lieu of the work-hour tax) that was 

equal to the amount of the supplemental annuity being paid in CB cases, plus a 

percentage added to reimburse the RRB for administrative costs. However, if the 

employee's supplemental annuity was reduced to zero by the collective bargaining 

private pension, then the employer had no supplemental annuity tax liability for that 

employee. 

The supplemental annuity tax liabilities were accumulated mechanically by the 

Supplemental Annuity Tax Credit/Tax Liability (TACAL) program for each employee 

record and mailed to the railroad employers after the end of each calendar quarter. 

Form G-241, Summary Statement of Quarterly Railroad Retirement Supplemental 

Annuity Tax Liabilities, provided the total supplemental annuity tax liabilities for that 

calendar quarter to each railroad with an approved pension based on a collective 

bargaining agreement. The Form G-241 stated that the amount of the SUP ANN 

Tax Liability was due to the Internal Revenue Service no later than the last day of 

the second month after the quarter ended. 

At the end of the calendar year, the railroad attached the Form G-241 for each 

calendar quarter to their Form CT-1, Employer's Annual Railroad Retirement Tax 

Return, to determine any adjustment for the taxes paid. 

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The TACAL program produced Form G-241 through the four quarters in calendar 

year 2002. No amounts were posted to months after December 2001. Instead, 

TACAL processed corrections for months before January 2002, as “increases” or 

“decreases” for a previous quarter. The employer must have filed a corrected Form 

CT-1 within three years to claim these corrected amounts. Employers who had no 

corrections for months before January 2002 did not receive any TACAL quarterly 

reports in the calendar year 2002. 

RRA Maximum Reduction 

A. Effective for Rates Payable January 1, 2002, or Later – The Railroad Retirement and 

Survivors Improvement Act (RRSIA) of 2001, removed the RRA maximum reduction 

from all annuities effective January 1, 2002, regardless of the employee or spouse 

annuity beginning date. 

B. 1974 Railroad Retirement Act Rates Payable Before January 1, 2002 – The 1974 

Railroad Retirement Act (RRA) established a maximum of monthly annuities that an 

employee and spouse could initially receive. If the total of the applicable annuity 

components exceeded the RRA maximum, the law provided for reducing certain 

components so that the total annuities paid did not exceed the RRA maximum. The 

reduction applied to the annuity components in the following order: 

	 net spouse tier 2; then 

	 gross supplemental annuity; then 

	 net employee tier 2. 

When the employee's supplemental annuity was reduced for the RRA maximum, the 

reduction was applied to the gross supplemental annuity, before any reduction for a 

railroad pension based on employer contributions. If an employee's supplemental 

annuity was subject to reduction by both the RRA maximum and the railroad 

pension, L-80-37 stated that the RRA maximum reduction was applied first. This 

caused the railroad to lose tax credits which it would normally have received if the 

supplemental annuity was first reduced for the pension. 

The railroad was notified when a supplemental annuity has been reduced for the 

RRA maximum. The notation "SUP ANN REDUCED FOR RRA MAXIMUM" was 

shown on monthly RL-5A listings provided to requesting employers. 

E4. Effect of Supplemental Annuity on Regular Annuity Under 1937 Act 

A. Before February 1968 - A regular annuity was generally paid at the pre-1966 formula 

rate for any month the annuitant was also entitled to payment of a SUP ANN. In a 

few cases when the SUP ANN rate was less than the 7 percent regular annuity 

increase under the 1966 amendments, the regular annuity rate was increased to an 

amount which added to the SUP ANN equaled the 1966 amendment rate. 

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B. Beginning February 1968 - The table and minimum increases provided by the 1968 

amendments were reduced because of an annuitant's entitlement to payment of a 

SUP ANN. 

C. Beginning January 1970 - The 15 percent increase provided by the 1970 

amendments was not reduced because of an annuitant's entitlement to payment of a 

SUP ANN. However, in a few cases the regular annuity rate was increased under 

the L-70-207 Guaranty to an amount which added to the SUP ANN equaled the 

regular annuity rate that would have been payable if there was no SUP ANN 

entitlement. The L-70-207 Guaranty applied in cases where there was no SS 

entitlement when the table increase in the 1968 COMP was reduced by: 

 The SUP ANN rate; or 

 6.55 percent of the basic annuity rate and the difference between that 

amount and the SUP ANN was less than 15 percent of the 6.55 reduction 

amount. (This usually occurred when the SUP ANN was less than $30.) 

E5. TACAL Program 

The TACAL program was used prior to the year 2003 to store the amount of 

supplemental tax credit or supplemental tax liability for the railroads in an “Ideal History” 

format for the years that the employee supplemental annuities are reduced under 

section 2(h)(2) of the Railroad Retirement Act for their employer pension. It produced 

quarterly reports that the railroads attached to their Form CT-1 Employer's Annual 

Railroad Retirement Tax Return when paying their RRB taxes to the Internal Revenue 

Service. The program is now obsolete. 

Appendix_F - Spouse Annuity Legislative History 

The Spouse Annuity Legislative History is in RCM 1.3, Appendix A. 

Appendix_G – Retirement O/M Legislative History 

The Retirement O/M Age and Service and IPI Legislative History are in 

RCM 1.5, Appendix B. 

The DIB O/M Legislative History is in the Disability Claims Manual 

Appendix_H - Glossary Of Terms - Felony Case Development 

1. Felony - A crime is a felony if it is an offense which constitutes a felony under 

applicable law. If the law does not classify any crime as a felony (e.g., law of 

New Jersey, Uniform Code of Military Justice), an offense punishable by death or 

imprisonment for a term exceeding one year is considered a felony for this 

procedure. 

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A felony may have been committed even if the resulting sentence is less than 

one year. The length of the sentence is not an indication of a felony, except as 

stated in the preceding paragraph. 

Also note that a person charged with a felony may plead guilty to, and be 

convicted of, a lesser charge; in that case, benefits are not suspended. 

A juvenile charged with, and tried for, a felony as an adult, will be affected if 

convicted. 

2. Conviction - Tier I or the O/M will not be suspended until the individual has 

actually been convicted of a felony, and is confined to a penal institution or 

correctional facility. A grand jury indictment or otherwise being charged with a 

crime does not cause suspension. If an individual is confined but not convicted, 

and is subsequently convicted, suspension is effective with the month of 

conviction. 

When a person has been convicted of a felony but the conviction is under 

appeal, tier I or the O/M is subject to suspension. If a conviction is overturned, 

benefits are payable as if the person had never been imprisoned for that 

conviction. If a pardon is granted, it will be reviewed at headquarters to 

determine the effect of the pardon on the status of the criminal case. 

3. Confinement - A penal institution or correctional facility includes any facility which 

is under the control and jurisdiction of the agency in charge of the penal system, 

or any facility in which convicted criminals may be incarcerated. This includes, 

for example, a mental hospital for the criminally insane which is used for 

incarcerating convicted criminals, regardless of whether that institution is 

operated by the correctional authority. 

A person is considered confined even if temporarily hospitalized outside the 

facility, or temporarily or intermittently outside the facility to work or attend school, 

or because he escaped or failed to report to begin confinement. Transfer from 

prison to a half-way house or a work-release facility is considered confinement, if 

the individual remains under a sentence of confinement. 

A prisoner released on parole, or because his sentence has ended, been 

suspension or overturned, is not under a sentence of confinement. 

4. Court of law is any duly consituted judicial tribunal administering the laws of the 

state or nation. It includes a judge or judicial officer with authority to approve a 

prisoner's participation in a rehabilitation or training program. 

Appendix_I - Addresses Of State Correctional Authorities 

ALABAMA 

State Board of Corrections 

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101 S. Union St. 

Montgomery, AL 36130 

ALASKA 

Department of Health & Social Service 

Division of Corrections 

Pouch HO 3, Health & Social Service Bldg. 

Juneau, AK 99811 

ARIZONA 

Department of Correction 

1601 West Jefferson St. 

Phoenix AZ 85007 

ARKANSAS 

Department of Correction 

Post Office Box 8707 

Pine Bluff, AR 71611 

CALIFORNIA 

Department of Correction 

P.O. Box 714 

Sacramento, CA 95803 

COLORADO 

State Department of Corrections 

Attn: Records 

2862 South Circle Drive Suite 400 

Colorado Springs CO 80906 

CONNECTICUT 

Department of Correction 

340 Capitol Ave. 

Hartford, CT 06106 

DELAWARE 

Department of Correction 

80 Monrovia Ave 

Smyrna, DE 19977 

DISTRICT OF COLUMBIA 

Department of Correction 

614 H Street NW 

Washington, D.C. 20001 

FLORIDA 

Department of Correction 

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2601 Blair Stone 

Tallahassee, FL 32399-2500 

GEORGIA 

Department of Offender 

Rehabilitation 

800 Peachtree St. NE 

Atlanta, GA 30308 

HAWAII 

Department of Social Service 

and Housing, Correction Division 

P.O. Box 339 

Honolulu, HI 96809 

IDAHO 

Department of Correction 

Box 7309 

Boise, ID 83707 

ILLINOIS 

Department of Correction 

201 Amory Bldg. 

Springfield, IL 62706 

INDIANA 

Department of Correction 

804 State Office Bldg. 

Indianapolis, IN 46204 

IOWA 

Department of Social Service 

Division of Correction 

Hoover Building 

Des Moines, IA 50319 

KANSAS 

Department of Correction 

535 Kansas Ave. 

Topeka, KS 66603 

KENTUCKY 

Bureau of Correction 

State Office Building 

Frankfort, KY 40601 

LOUISIANA 

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Department of Correction 

P.O. Box 44304 

State Capitol Station 

Baton Rouge, LA 70804 

MAINE 

Department of Mental Health and Corrections 

411 State Office Bldg. 

Augusta, ME 04333 

MARYLAND 

Department of Public Safety and Correction Services, 

Division of Correction 

6314 Windsor Mill Rd. 

Baltimore, MD 21207 

MASSACHUSETTS 

Department of Correction 

Saltonstall Office Bldg. 

100 Cambridge St. 

Boston, MA 02202 

MICHIGAN 

Department of Correction 

Stevens T. Mason Bldg. 

Lansing, MI 48913 

MINNESOTA 

Department of Correction 

430 Metro Square Bldg. 

Seventh and Roberts Streets 

St. Paul, MN 55101 

MISSISSIPPI 

Department of Correction 

723 North President St. 

Jackson, MS 39202 

MISSOURI 

Department of Social Service 

Division of Correction 

Jefferson City, MO 65101 

MONTANA 

Department of Institution 

Corrections Division 

1539 11th Ave. 

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Helena, MT 59601 

NORTH DAKOTA 

Director of Institutions 

State Capitol 

Bismark, N.D. 58505 

NEBRASKA 

Department of Correctional Service 

P.O. Box 94661 

Lincoln, NE 68509 

NEVADA 

Department of Prisons 

P.O. Box 7000 

Carson City, NV 89701 

NEW HAMPSHIRE 

(no central dept. of corrections) 

adult felons are committed to: 

New Hampshire State Prison 

Box 14 

Concord, N.H. 03301 

NEW JERSEY 

Department of Corrections 

P.O. Box 7387 

Whittlesey Rd. 

Trenton, N.J. 08628 

NEW MEXICO 

Criminal Justice Department 

Correction Division 

State Rd. 14 

P O Box 27116 

Santa Fe, N.M. 87502 

NEW YORK 

Department of Correctional Services 

State Office Building Campus 

Albany, NY 12226 

NORTH CAROLINA 

Department of Correction 

840 West Morgan St. 

Raleigh, N.C. 27603 

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OHIO 

Department of Rehabilitation and Correction 

1050 Freeway Drive North 

Columbus, OH 43229 

OKLAHOMA 

Department of Corrections 

3400 N. Eastern 75 Howard Ave. 

P.O. Box 11443 

Oklahoma City, OK 73111 

OREGON 

Department of Human Resources 

Correction Division 

318 Public Service Bldg. 

Salem, OR 97310 

PENNSYLVANIA 

Department of Justice 

Bureau of Correction 

P.O. Box 598 

Camp Hill, PA 17011 

RHODE ISLAND 

Department of Correction 

Cranston, RI 02920 

SOUTH CAROLINA 

Department of Correction 

4444 Broad River Road 

P.O. Box 21787 

Columbia, S.C. 29221 

SOUTH DAKOTA 

Board of Charities & Correction 

Office of Correctional Services 

Suite 402-403 Foss Building 

Pierre, SD. 

TENNESSEE 

Department of Corrections 

Rachel Jackson Building 

Ground Floor - MIS 

320 6th Avenue North 

Nashville, TN 37243 

TEXAS 

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Department of Corrections 

Box 99 

Huntsville, TX 77340 

UTAH 

For adult offenders: 

Dept of Corrections 

Records Bureau 

14717 S Minuteman Dr 

Draper UT 84020 

(801) 545-5700 

(801) 545-5702 (fax) 

For juvenile offenders: 

Department of Social Services 

Division of Corrections 

150 W. North Temple 

Salt Lake City, UT 84103 

VERMONT 

Agency of Human Services 

Department of Corrections 

State Office Building 

Montpelier, VT 05602 

VIRGINIA 

State Department of Corrections 

P.O. Box 26963 

4615 West Broad St. 

Richmond, VA 23261 

WASHINGTON 

Dept. of Social & Health Service, 

Adult Correction Division 

(Mail Stop FN - 61) 

Olympia, WA 98504 

Division of Juvenile Rehabilitation 

(Mail Stop OB 42 - J) 

Olympia, WA 98504 

PUERTO RICO 

Administration of Correction 

Call Box 71308 

San Juan, PR 00936 

WEST VIRGINIA 

Department of Correction 

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1116 Quarrier St. 

Charleston, WV 25301 

WISCONSIN 

Department of Health and Social 

Service, Division of Corrections 

Madison, WI 53701 

WYOMING 

State Board of Charities and Reform 

Capitol Building 

Cheyenne, WY 82002 

Appendix_J – CSX Separation Payments Elected by Disability 

Annuitants in 1999 and 2000 

Background. 

	 A number of disability annuitants elected voluntary separation payments 

(buyouts) from the CSX Corporation in 1999 and 2000. 

	 By electing this buyout, the annuitant relinquished seniority rights. 

	 The buyout amount was creditable as compensation in the month elected. 

	 Per Legal Opinion 99-18, election of the buyout constituted compensated 

service. A copy of the opinion is available on the RRB website under 

Legal Decision/Compensation/Separation Allowance. 

	 No annuity is payable in any month an annuitant renders compensated 

service for an employer. 

	 No annuity was payable for the month in which this buyout was elected. 

Operations Handling. 

Most of these annuitants elected to receive separation payments in December 1999. 

The others elected to receive the payments some time in 2000. In either case, the 

annuity for the month in which the payment was elected was recoverable. 

RBD handled the initial recovery action using ORCS. For the December elections they 

also prepared an adjustment award to include the compensation added due to the 

separation payment. Any resulting accrual was used to partially offset the overpayment. 

If the buyout was elected January 2000 or later, a call-up was set for May 2001 to adjust 

the annuity to include the compensation added in 2000. 

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The PARS overpayment code for these cases is O3D ("CSX Separation Elected"). By 

entering this code, ORCS should have offered only cash/credit card refund or full 

withholding. Also, paragraph #1735 was added to ORCS to explain the overpayment to 

the annuitants. It reads as follows: 

"In month year, you elected a lump sum separation payment from the CSX Railroad 

under their Voluntary Early Retirement and Separation Program. According to the 

Railroad Retirement Board's regulations, this payment is creditable as compensation. 

Also, the Railroad Retirement Act specifies that no annuity is payable for any month in 

which an individual renders compensated service to an employer. By electing the 

separation payment, you are considered to have rendered compensated service. This 

means your annuity was not payable for month year because you elected the 

separation in that month." 

To our knowledge, CSX informed those who elected the buyouts that their annuity for 

the election month was not payable and was to be recovered by RRB. 

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