Twenty-Fifth

Actuarial Valuation

of the Assets and Liabilities

Under the Railroad Retirement Acts

as of December 31, 2010

with

Technical Supplement

U.S. Railroad Retirement Board

Bureau of the Actuary

Chicago, Illinois
Twenty-Fifth Actuarial Valuation

of the Assets and Liabilities

Under the Railroad Retirement Acts

as of December 31, 2010

with

Technical Supplement

by

Frank J. Buzzi, Chief Actuary

with Statements of the

Railroad Retirement Board

and the

Actuarial Advisory Committee

U.S. Railroad Retirement Board

Bureau of the Actuary

August 2012

i

CONTENTS

Statement of the Railroad Retirement Board v

Statement of the Actuarial Advisory Committee vii

Report of the Actuary

I. Introduction 1

II. Summary of Recent Developments and Results 1

III. Regular and Supplemental Benefits and Their Financing 3

IV. The Financial Interchange and Dual Benefits 6

V. Assumptions, Methodology, and Valuation Results 8

VI. Statement of Actuarial Opinion 13

Appendix

Outline of the benefit and financing provisions of the railroad retirement system as

 amended through December 31, 2011 28

Technical Supplement

General Methodology and Assumptions 37

Mortality, Remarriage, and Related Experience 57

Retirement Studies 71

Withdrawal Studies 78

Employee and Beneficiary Censuses, Family Composition, and Miscellaneous Statistics 81
ii

TABLES

1. Employment, inflation and investment return assumptions 14

2. Progress of the Combined National Railroad Retirement Investment Trust and Railroad 

 Retirement Account, and Social Security Equivalent Benefit Account 16

3. Present value of benefits in millions of dollars 19

4. Present value of benefits as a percentage of the present value of tier 2 payroll 20

5. Balance of the Combined National Railroad Retirement Investment Trust and Railroad

 Retirement Account, and the Social Security Equivalent Benefit Account as of

 December 31, 2010 21

6. Actuarial surplus or (deficiency) for National Railroad Retirement Investment Trust and

 Railroad Retirement Account 22

7. Unfunded accrued liability 23

8. Vested dual benefit amounts and average number of beneficiaries 24

9. Supplemental annuity benefit amounts and average number of beneficiaries 25

10. Average number of railroad retirement annuitants and number of annuitants per full

 time employee 26

11. Transfers to railroad retirement system under financial interchange with social security

 system, 1937-2012 27

S-1. 2010 RRB Annuitants Mortality Table 43

S-2. 2010 RRB Disabled Mortality Table for Annuitants with Disability Freeze 44

S-3. 2010 RRB Disabled Mortality Table for Annuitants without Disability Freeze 45

S-4. 2006 RRB Active Service Mortality Table 46

S-5. 2010 RRB Spouse Total Termination Table 47

S-6. Probability of a retired employee having a spouse eligible for railroad retirement benefits 48

S-7. 1995 RRB Mortality Table for Widows 49

S-8. 1997 RRB Remarriage Table 50

S-9. 2004 RRB Total Termination Table for Disabled Children 51

S-10. Calendar year rates of immediate age retirement 52

S-11. Rates of immediate disability retirement and of eligibility for disability freeze 53

S-12. Calendar year rates of final withdrawal 54

S-13. Service months and salary scales 55

S-14. Family characteristics of railroad employees assumed for the valuation of survivor

 benefits 56

S-15. Mortality experience of railroad age annuitants between anniversaries of retirement

 in 2006 and 2009, by sex and type of retirement 58
iii

S-16. Mortality experience of railroad age annuitants between anniversaries of retirement

 in 2006 and 2009, by year 59

S-17. Mortality ratios for railroad age annuitants on a select and ultimate basis between

 anniversaries of retirement in 2006 and 2009 60

S-18. Age specific death rates of railroad disability annuitants between anniversaries of

 retirement in 2006 and 2009, by age and duration 61

S-19. Mortality experience of railroad disability annuitants between anniversaries of

 retirement in 2006 and 2009, by disability freeze status 62

S-20. Percentages of railroad disability annuitants included in the 25th valuation mortality studies 

 who would have qualified for a benefit under the social security disability standards 63

S-21. Mortality experience of active railroad employees during calendar years 2004-2008 64

S-22. Total termination experience of spouse annuitants between anniversaries of retirement

 in 2006 and 2009 65

S-23. Mortality experience of spouse annuitants between anniversaries of retirement

 in 2006 and 2009 66

S-24. Number of retired employees and number with a spouse eligible for railroad retirement

 benefits, by age of employee on December 31, 2009 67

S-25. Mortality experience of widow annuitants between anniversaries of retirement

 in 2006 and 2009 68

S-26. Remarriage experience of widows between 1997 and 2009 anniversaries of widowhood 69

S-27. Total termination experience of disabled children annuitants between anniversaries of

 retirement in 2006 and 2009 70

S-28. Rates of immediate age retirement 72

S-29. Immediate age retirement experience of railroad employees with 5-29 years of

 service during calendar years 2007-2009 73

S-30. Immediate age retirement experience of railroad employees with 30 or more years of

 service during calendar years 2007-2009 74

S-31. Rates of immediate disability retirement 75

S-32. Immediate disability retirement experience of railroad employees during calendar

 years 2007-2009 76

S-33. Percentages of immediate disability retirements meeting the disability freeze standards

 of the Social Security Act 77

S-34. Withdrawal experience of railroad employees during calendar years 2005-2008, 

 by attained age and years of service 79

S-35. Distribution of 2010 active employees by age and completed years of service 82
iv

S-36. Census of vested inactive employees in 2010 by age and completed years of service 83

S-37. Comparison between 2010 and 2007 of selected characteristics of active railroad

 employees 84

S-38. Census of employee and spouse annuitants on December 31, 2010 85

S-39. Census of survivor annuitants on December 31, 2010 86

S-40. Comparison of service months of railroad employees during calendar years 2006-2008

 with assumptions used in the 25th valuation 87

S-41. Average creditable compensation per service month during 2010 88

S-42. Age distribution of new entrants during calendar years 2006-2009 and comparison with

 assumptions of the 24th valuation 89

S-43. Family characteristics of railroad employees who died in 2006-2009 with a current

 connection 90

S-44. Selected employment and benefit statistics for 2007 and 2010 91
UNITED STATES OF AMERICA 

RAILROAD RETIREMENT BOARD 


844 NORTH RUSH STREET 


CHICAGO, ILLINOIS 60611-2092 


BoARD MEMBERS: 

MICHAEL S. SCHWARTZ, CHAIRMAN 

WALTER A BARROWS, LABOR MEMBER 


JEROME F. KEVER, MANAGEMENT MEMBER 


STATEMENT OF THE RAll.,ROAD RETIREMENT BOARD 

Section 15(g) ofthe Railroad Retirement Act of 1974 requires that the Railroad Retirement Board, 

at intervals not longer than three years, estimate the liabilities created by the Act and include the 

estimate in its annual report. Section 22 ofthe Railroad Retirement Act of 1974 requires that the 

Board submit to the President and the Congress, by July 1 of each year, a report containing a fiveyear projection ofthe revenues to and payments from the Railroad Retirement Account. Section 

502 ofthe Railroad Retirement Solvency Act of 1983, Public Law ~8-76, requires that the Board 

submit to the Congress, by July 1 of each year, a report on the actuarial status ofthe railroad 

retirement system. the 25th valuation was prepared by the Board's Chief Actuary and meets these 

requirements. The Actuarial Advisory Committee reviewed the valuation as to assumptions and 

methods as required by Section 15(f) ofthe Railroad Retirement Act. 

The Chief Actuary's report describes the results ofthree valuations, each valuation differing from 

the others as to the employment assumption on which it is based. Cash flow problems occur only 

under the most pessimistic employment assumption. Even under that assumption, the cash flow 

problems do not occur until the year 2035. 

Section 502 ofthe Solvency Act requires recommendations with respect to tax rates and whether 

any part ofthe 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. The Chief 

Actuary's report does not recommend a change in the tax rate, nor does it recommend a diversion of 

taxes from the Railroad Retirement Account to the Railroad Unemployment Insurance Account. 

The Board Members believe that the 25th valuation presents a fair picture ofthe financial condition 

ofthe railroad retirement system, and we support the conclusions reached in the report. 

o Printed on recycled paper 

v
The Railroad Retirement Board wishes to thank the members ofthe Actuarial Advisory Committee 

for their assistance in this important project. 

Walter A. Barrows 

~q~ Jerome F. Kever 

vi
STATEMENT OF THE ACTUARIAL ADVISORY COMMITTEE 


May 30, 2012 


This statement sets forth the Committee's review ofthe twenty-fifth actuarial valuation ofthe 

railroad retirement system. This valuation, performed as ofDecember 31, 2010, was completed in 

the spring of2012 by Mr. Frank J. Buzzi, Chief Actuary of the Railroad Retirement Board, and his 

staff. In both the planning and carrying out ofthe valuation, the Committee has counseled with 

Mr. Buzzi as to the structure, actuarial methods, actuarial assumptions, and procedures ofthe 

valuation and as to the scope and content ofhis report. In all, the Committee has met with the 

Chief Actuary on September 23,2010, November 14,2011, and May 30, 2012, for the purpose of 

reviewing and discussing the significant elements ofthe twenty-fifth valuation. 

The Committee believes that the actuarial assumptions are reasonable and that the valuation results 

present a fair picture ofthe financial condition of the railroad retirement system. 

Section 502 of the Railroad Retirement Solvency Act requires the Board to report to Congress on 

the actuarial status of the railroad retirement system each year. The report must include 

recommendations for any desirable financing changes. The Chief Actuary recommends no change 

in payroll tax rates under the railroad retirement system. 

The Chief Actuary's report indicates that the average cost ofthe program over the projection period 

as measured by the excess of present value oftier 2 payroll taxes over the actuarial surplus ranges 

from 16.79% to 22.40% of payroll, depending on assumed future employment levels. This 

compares to a range of 16.13% to 21.57% of payroll in the twenty-fourth valuation. 

The Committee acknowledges the valuable help of the Board, the Chief Actuary and his staff in the 

Committee's review of this valuation. 

Respectfully submitted, 

Albert Pike 3rd, M.A.A.A., Chair 

I'ki;:-~~ Keith T. Sartain, M.A.A.A. 

vii

1

REPORT OF THE ACTUARY

I. INTRODUCTION

Section 15 of the Railroad Retirement Act of 1974 requires that the Railroad Retirement Board, at 

intervals of not more than three years, prepare actuarial valuations of the railroad retirement system. 

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. 

This 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 any debt to the Railroad Retirement Account. 

This report, the 25th actuarial valuation, is intended to meet these three requirements for 2012. 

II. SUMMARY OF RECENT DEVELOPMENTS AND RESULTS

Recent actuarial reports have discussed in detail the importance of the level of railroad employment 

to the railroad retirement system's financial stability. The payroll tax on railroad employment has 

been the major source of income to the system since its establishment in the 1930s. It is clear that

with a fixed tax rate the fewer railroad workers there are, the less money the retirement account 

collects in payroll taxes, and the more likely the system is to require additional funds. Declines in 

railroad employment over a long period, coupled with inflation and subsequent benefit increases, 

required legislation to strengthen the system's financial condition in 1974, 1981, 1983, and 1987. 

With the introduction of the average account benefits ratio to automatically adjust the payroll tax

rates in 2004 and later, there is less need for corrective legislation.

The 24th valuation (2009 actuarial report) projected a surplus of 0.35 percent of tier 2 payroll and an 

average tier 2 tax rate of 18.97 percent under the intermediate employment assumption. Since the 

24th valuation employment dropped in 2009 and 2010, then rose to close to the optimistic 

assumption in 2011, investment return and inflation have been favorable while wage increases have 

been lower than projected. The average tier 2 tax rate has increased to 19.70 percent, and the 

surplus has increased to 0.42 percent of tier 2 payroll. Most of the increase in the average tier 2 tax 
2

rate was expected based on tax increases projected in the 24th valuation, with the remainder 

attributable to changes in experience and assumptions (see Section V). The combined effect of a 

0.73 percent of payroll increase in projected future tier 2 tax rates net of a 0.07 percent of payroll 

increase in projected surplus results in an overall increase in cost equal to 0.66 percent of tier 2 

payroll. 

The 25th valuation has been prepared under three assumptions as to the future behavior of railroad 

employment. These employment assumptions are similar to the employment assumptions used in 

the 24th valuation. Employment assumptions I and II assume stable passenger employment and 

different rates of decline in freight employment. Employment assumption III follows the structure 

of assumptions I and II, except that it has declines in passenger employment and steeper declines in 

freight employment than employment assumptions I and II. Employment assumptions I, II and III 

are intended to provide an optimistic, moderate and pessimistic outlook, respectively. The specific 

results of the projections made in this report of the railroad retirement system's financial condition 

are as follows:

1. Under employment assumption I, the average tier 2 tax rate is 17.25 percent, and an 

actuarial surplus of 0.46 percent of tier 2 payroll exists as of December 31, 2010. There are 

no cash flow problems during the 75-year projection period, and the tier 2 payroll tax rate 

ranges from 10.0% to 20.0%.

2. Under employment assumption II, the average tier 2 tax rate is 19.70 percent, and an 

actuarial surplus of 0.42 percent of tier 2 payroll exists as of December 31, 2010. There are 

no cash flow problems during the 75-year projection period, and the tier 2 payroll tax rate 

ranges from 12.0% to 27.0%.

3. Under employment assumption III, the average tier 2 tax rate is 21.82 percent, and an 

actuarial deficiency of 0.58 percent of tier 2 payroll exists as of December 31, 2010. Cash 

flow problems arise in 2035 and remain to the end of the 75-year projection period. The tier 

2 payroll tax rate ranges from 16.0% to 27.0%. 

The average tier 2 tax rate is calculated by dividing the present value of tier 2 payroll taxes by the 

present value of tier 2 payroll as of January 1, 2011. The surplus or deficiency figures given above 

represent the change in the average tier 2 tax rate which would produce a balance of zero in the 

combined National Railroad Retirement Investment Trust, Railroad Retirement Account and Social 

Security Equivalent Benefit Account at the end of the 75-year projection period. 

The conclusion is that, barring a sudden, unanticipated, large drop 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 not assured. Under the 

current financing structure, actual levels of railroad employment and investment return over the 

coming years will determine whether additional corrective action is necessary.

As mentioned earlier, this report is intended to meet the requirements of Section 502 of the 1983 

Solvency Act. Section 502 requires recommendations with regard to (1) the tax rates and (2) 
3

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.

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

The tier 2 tax rate schedule maintains a close balance between the present value of future 

income and expenditures. Although future financing problems are projected to occur under 

employment assumption III, as discussed above, the absence of projected cash flow 

problems for at least 23 years under each employment assumption indicates that an 

immediate change in the tax rate schedule is not required. 

2. No diversion of taxes from the Railroad Retirement Account to the Railroad Unemployment 

Insurance Account is recommended. As of May 30, 2012, there are no loans outstanding 

from the Railroad Retirement Account to the Railroad Unemployment Insurance Account.

Section V of this report presents details of the valuations under the three employment assumptions. 

III. REGULAR AND SUPPLEMENTAL BENEFITS AND THEIR FINANCING

The Appendix contains a detailed description of the provisions of the current law. Sections III and 

IV provide a more general summary of the law.

Amounts available for payment of railroad retirement benefits are held in four Accounts: the 

National Railroad Retirement Investment Trust (NRRIT), the Railroad Retirement (RR) Account, 

the Social Security Equivalent Benefit (SSEB) Account, and the Dual Benefits Payments Account. 

Because of their intertwined nature, the NRRIT, RR Account and SSEB Account are discussed 

together in this section. Dual benefits and the Dual Benefits Payments Account are discussed in a 

separate section, Section IV.

Amounts held in the NRRIT, RR Account and SSEB Account are mainly used to pay monthly 

benefits to retired or disabled employees, their spouses, and survivors. The various types of 

benefits and their eligibility requirements are described in the Appendix. The Accounts also pay 

out relatively small amounts in lump sums to employees and their survivors in certain cases. The 

monthly benefits consist of three components, known as tier 1, tier 2 and supplemental annuity. 

For all categories of recipients, the gross tier 1 benefit is generally equivalent to the benefit that the 

social security system would pay if all the employee's earnings (railroad and non-railroad) had been 

covered under the Social Security Act. Any benefit actually received from social security is 

subtracted to determine the net tier 1 benefit payable. Section IV explains the logic behind this 

determination. The cost-of-living increase paid to social security beneficiaries automatically carries 

over to the tier 1 component of railroad retirement annuities. 

There are some differences between social security benefits and tier 1 benefits. The most 

significant are as follows:
4

1. An employee may not retire before age 62 under the social security system. Under the 

railroad retirement system, an employee may retire at age 60 with 30 years of service. A 

spouse of a 30-year employee may also retire at age 60. If the employee retired after 2001, 

there is no age reduction in either case.

2. Railroad retirement pays an occupational disability benefit under tier 1 and tier 2. Social 

security requires total and permanent disability. A five-month waiting period applies under 

both systems. 

3. Widow(er)s who retire at age 60 or 61 under railroad retirement are deemed age 62 in the 

computation of the tier 1 benefit, resulting in a smaller age reduction than under social 

security. 

4. From the start of the railroad retirement system through 1984, earnings up to a monthly 

maximum amount were taxed and credited for benefit computation purposes. Social 

security has always used an annual earnings limit. The 1983 Solvency Act changed railroad 

retirement to an annual earnings limit for 1985 and later years, but benefit computations for 

new beneficiaries continue to reflect the pre-1985 use of a monthly limit. All benefits 

awarded before 1985 reflect a monthly limit exclusively.

The formula used to compute the tier 2 component of railroad retirement is comparable to a private 

pension formula. Under the formula adopted in 1981, the employee tier 2 benefit is equal to 0.7 

percent of the employee's average monthly railroad earnings for the 60 months of highest earnings, 

multiplied by the number of years of railroad service, less 25 percent of any vested dual benefit. 

Unlike private pensions, tier 2 benefits (1) provide automatic cost-of-living increases, and (2) are 

paid to spouses and survivors without any reduction in employee benefit for the payment of these 

auxiliary benefits. 

The tier 2 benefit for spouses is equal to 45 percent of the employee's tier 2 benefit. The survivor's 

tier 2 benefit is a specified percentage of the employee's tier 2 benefit. The Appendix lists the 

percentages and describes an initial minimum widow(er)’s amount which became payable 

beginning in calendar year 2002. 

The tier 2 cost-of-living increases for employees, spouses and survivors are equal to 32.5 percent of 

the percentage increase which is used in computing social security increases (and tier 1 increases). 

The increase is paid at the same time as the tier 1 cost-of-living increase.

The portion of tier 1 benefits which is considered equivalent to social security benefits is subject to 

Federal income tax under the rules that apply to social security benefits. Tier 2 benefits, the portion 

of tier 1 benefits in excess of social security benefits, supplemental annuity benefits, and vested dual 

benefits are subject to Federal income tax under the rules that apply to private pensions. 

A railroad retiree may receive a supplemental annuity in addition to his regular annuity if (1) the 

retiree has a "current connection" with the railroad industry at the time of retirement, and (2) the 

retiree has attained age 65 with 25 years of railroad service, or attained age 60 with 30 years of 
5

railroad service. A current connection is generally defined as at least 12 months of railroad service 

in the 30 months preceding retirement. 

The 1981 amendments added the requirement that an employee must have worked in the railroad 

industry before October 1, 1981, to receive a supplemental annuity. This provision results in 

phasing out the supplemental annuity over a long period. The last supplemental annuity check will 

probably not be paid until after 2060. 

The monthly supplemental annuity benefit is $23, plus $4 for each year of service in excess of 25, 

with a maximum benefit of $43. No cost-of-living increases are applied. Spouses and survivors do 

not receive a supplemental annuity. 

If the recipient of a supplemental annuity receives a private pension from his railroad employer, the 

supplemental annuity is reduced by the portion of the private pension that is attributable to the 

employer's contributions. This reduction is not made if the private pension is reduced for receipt of 

the supplemental annuity. 

Benefits paid from the NRRIT, RR Account and SSEB Account are financed by the following 

sources of income: 

1. Payroll tax. Employees and employers pay a tax at the social security rate on earnings in a 

year up to the social security, or tier 1, earnings limit. (The Medicare hospital insurance 

portion of this rate is not subject to an earnings limit.) This tax is called the tier 1 tax. In 

addition, employers and employees pay a tier 2 tax equal to a percentage of the employee's 

earnings up to the tier 2 earnings limit. The tier 2 earnings limit is what the social security 

limit would be if the 1977 social security amendments had not been enacted. The 2012 

earnings limits are $110,100 and $81,900 for tier 1 and tier 2, respectively.

Tier 2 taxes on both employers and employees are based on a 10-year average of the ratio of 

certain asset balances to the sum of benefits and administrative expenses (the average 

account benefits ratio). Depending on the average account benefits ratio, the tier 2 tax rate 

for employers will range between 8.2 percent and 22.1 percent, while the tier 2 tax rate for 

employees will be between 0 percent and 4.9 percent. This calculation is described in the 

Appendix. 

2. Income tax. The tax on tier 1 benefits up to the social security level is credited to the SSEB 

Account and then to social security through the financial interchange. Revenue derived

from taxing certain RR Account benefits (tier 2 and the excess of tier 1 over the social 

security level) is transferred to the RR Account.

3. Investment income. 

4. The financial interchange with the social security system. This extremely important 

arrangement, which will be discussed in detail in Section IV, has resulted in the large annual 

lump sum transfers of money from social security to railroad retirement shown in Table 11. 
6

5. Advances from general revenues related to certain features of the financial interchange. 

Financial interchange transfers are made in a lump sum for a whole fiscal year in the June 

following the end of that fiscal year. For example, the transfer reflecting transactions which 

occurred from October 2009 through September 2010 (fiscal year 2010) took place in June 

2011. At any time, therefore, there are between 9 and 21 months' worth of financial 

interchange transfers that are, in a sense, owed to the railroad retirement system. Railroad 

retirement receives interest on this money, so this practice does no long-term harm to the 

financial condition of the railroad retirement system. The lag in the transfers, however, 

could cause short-term cash flow problems. 

 In order to avoid the cash flow problems caused by this lag, the 1983 Solvency Act provided 

for monthly loans to railroad retirement from U.S. Treasury general funds. Each loan is 

equal to the transfer the Railroad Retirement Board estimates railroad retirement would have 

received in the preceding month, with interest, if the financial interchange with social 

security were on an up-to-date basis. Railroad retirement must repay these loans when it 

receives the transfer from social security against which the money was advanced.

The 1983 Solvency Act created the SSEB Account, effective October 1, 1984. Before that date, all 

tier 1 benefits, tier 2 benefits, lump sums and administrative expenses had been paid from the RR 

Account, and all the income described above had been credited to the RR Account. Since then, the 

SSEB Account has paid the social security level of benefits and the administrative expenses 

allocable to that level of benefits. The tier 1 portion of the payroll tax, the income taxes on the 

social security level of benefits, the income from the financial interchange, and the advances from 

general revenues are credited to the SSEB Account. Repayment of the advances is made from the 

SSEB Account. 

In order to maximize investment returns to the Railroad Retirement system, the Railroad Retirement 

and Survivors’ Improvement Act of 2001 created the National Railroad Retirement Investment 

Trust (NRRIT) to manage and invest amounts collected in the RR Account and SSEB Account. 

Since the initial transfer of assets to the NRRIT during calendar years 2002-2004, the NRRIT has 

been transferring funds back to the RR Account as needed for the payment of benefits. The balance 

of the SSEB Account not needed to pay current benefits and administrative expenses has been

transferred annually to the RR Account, reducing the amount needed from the NRRIT.

IV. THE FINANCIAL INTERCHANGE AND DUAL BENEFITS

In the early 1950s, an arrangement known as the financial interchange was established between the 

railroad retirement and social security systems. The purpose of the financial interchange is to place 

the social security trust funds in the same financial position they would have been if railroad 

employment had always been covered under social security. If railroad employment had been 

covered under social security, social security would have collected taxes on railroad employment, 

and it would have paid benefits based on railroad employment. Under the financial interchange, the 

railroad retirement system gives the social security system the taxes social security would have 

collected, and the social security system gives the railroad retirement system the additional benefits 
7

social security would have paid to railroad workers and their families over what it actually pays 

them.

The word "additional" in the preceding sentence is important, because it is possible for a railroad 

employee to be covered under both railroad retirement and social security. The social security 

coverage may be based on earnings from moonlighting while in a railroad job or from coverage 

under the two systems at different times. Fulfilling the purpose of the financial interchange requires 

deducting from social security's fund only the difference between what social security would have 

paid had it covered railroad employment and what it actually pays the person based on his nonrailroad employment. Under the financial interchange, therefore, social security subtracts an 

employee's social security benefit from the amount it would otherwise give to the railroad 

retirement system.

This arrangement gave rise to problems that became acute in the early 1970s. The problems arose 

from the weighting in the social security formula in favor of low-earning, short-service workers. A 

railroad employee's non-railroad earnings usually added little to the benefit social security would 

have paid on combined railroad and non-railroad earnings (called gross tier 1 today). However, the 

employee might qualify for the minimum social security benefit, receiving much more from social 

security than his non-railroad earnings added to his gross tier 1 benefit. 

In order to improve the system's financial condition, the Railroad Retirement Act of 1974 provided 

that the tier 1 component of the railroad retirement annuity be reduced by any social security 

benefit. This essentially integrated the two systems and eliminated the advantage of qualifying for 

benefits under both systems. 

It was generally considered unfair to eliminate this advantage entirely for those already retired or 

close to retirement when the 1974 Act became effective. The 1974 Act, therefore, provided for a 

restoration of social security benefits that were considered vested at the end of 1974. The restored 

amount is known as the "vested dual benefit." This benefit was available to qualifying spouses and 

survivors as well as to qualifying employees.

For employees retiring in 1975 or later, the vested dual benefit is equal to 

(1) a social security benefit based on social security earnings, plus

(2) a social security benefit based on railroad earnings, minus

(3) a social security benefit based on combined railroad and social security earnings.

Social security or railroad earnings after 1974 are not included in this calculation. The "social 

security benefit" referred to in (1), (2) and (3) is the one which would have been calculated at the 

end of 1974. The resulting amount is increased by all the automatic social security cost-of-living 

adjustments between 1974 and the earlier of the year the employee retired and 1981. 

Spouses and survivors are not awarded vested dual benefits after August 13, 1981, though they 

continue to receive these benefits if they were awarded before that date.
8

 

Since October 1981, vested dual benefits have been paid from a segregated Dual Benefits Payments 

Account, and appropriations have been made to that account. This means that, starting in fiscal year 

1982, each annual appropriation is to be sufficient to pay the benefits for that year. If the 

appropriation for a fiscal year is less than required for full funding, the Railroad Retirement Board 

must reduce benefits to a level that the amount appropriated will cover. 

The appropriation for vested dual benefits in fiscal year 1982 was less than required for full 

funding, resulting in a cutback in benefits during that year. Full funding was restored for the last 

two months of fiscal year 1982. The appropriation was less than required in fiscal year 1986, 

resulting in a cutback during April-September of that year. The appropriation was again less than 

required in fiscal year 1988, which resulted in a cutback during April-September. Benefits were cut 

back in January 1996 due to a lapse in government funding and then restored later that same month. 

For years other than those mentioned, full benefits have been paid. 

V. ASSUMPTIONS, METHODOLOGY, AND VALUATION RESULTS

A. Assumptions and Methodology

Average railroad employment is assumed to be 230,000 in 2011 under each of the three 

employment assumptions. This is the estimated average for the year (subject to later adjustment) 

and exceeded the range projected for 2011 under the employment assumptions contained in the 

2011 Section 502 report.

Employment assumptions I and II, based on a model developed by the Association of American 

Railroads, assume that (1) passenger employment will remain at the level of 45,000, and (2) the 

employment base, excluding passenger employment, will 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 differs from employment assumptions I and II by assuming that (1) 

passenger employment will decline by 500 per year until a level of 35,000 is reached and then 

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

Because inflation has been fairly stable at relatively low levels in recent years, only one set of 

earnings and price inflation assumptions was used in this valuation. The ultimate earnings increase, 

cost-of-living increase and investment return assumptions have been lowered from 4.0%, 3.0% and 

7.5% in the 24th valuation to 3.8%, 2.8% and 7.0%, respectively, in the 25th valuation. Table 1 

shows the employment, inflation and investment return assumptions used in the 25th valuation. A 

comparison of historical and projected employment is illustrated in Figure 1. 

Only one combination of non-economic assumptions (for example, rates of mortality, disability, 

retirement, and withdrawal) was used in this valuation. These assumptions, some of which were 
9

changed from the 24th valuation to reflect recent experience, are discussed in the Technical 

Supplement to this report. 

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

assumption for the 75 calendar years 2011-2085. The projections of these components were 

combined and the investment income calculated to produce the projected balances in the combined 

NRRIT and RR Account and in the SSEB Account separately for each year. The results are 

summarized in Table 2. Present values of the various components of NRRIT and RR Account 

income and outgo were calculated by discounting amounts in each projection year to December 31, 

2010, using a constant 7.0% interest rate. The present values were combined to calculate the 

NRRIT and RR Account actuarial surplus or deficiency. The derivation of the surplus or deficiency 

appears in Table 6.

B. Valuation Results

This section sets forth the results of the valuation in the form of a discussion of the tables in which 

the results appear. Because it is desirable for the discussion of a table to be reasonably selfcontained, there is some repetition between tables and between this section and preceding sections 

of this report. 

Table 2. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and

Railroad Retirement (RR) Account, and the Social Security Equivalent Benefit (SSEB) Account. 

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

assumption for the 75 calendar years 2011-2085. The projections of these components were 

combined and the investment income calculated to produce the projected balances in the combined 

NRRIT and RR Account, and the SSEB Account at the end of each projection year. The results are 

summarized in Table 2. 

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

show, for the SSEB Account and the combined NRRIT and RR Account 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, average account benefits ratio and combined employer and employee tier 2 

tax rate.

The balances of the RR Account and NRRIT are combined because amounts not needed to pay 

current benefit and administrative costs are invested by the NRRIT. The SSEB Account is assumed 

to maintain a target balance of approximately 1.5 months of benefit payments in order to meet 

benefit obligations and contingencies, and to transfer any excess to the RR Account or NRRIT. 

Table 2 indicates that no cash-flow problems arise under employment assumptions I and II (Tables 

2-I and 2-II).

Under employment assumption I, the combined account balance declines through 2023 and then 

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

rate increases to 20% in 2026-2034, decreases to 14.0% in 2058 and remains between 10.0% and 

14.0% thereafter. 
10

Under employment assumption II, the combined account balance declines through 2026, and grows 

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

rate increases to 27% in 2030-2036, and then generally decreases until reaching the minimum rate 

of 12.0% in 2084-2085. 

Under employment assumption III, the combined account balance declines until the balance 

becomes negative in 2035. 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 grows through the end of the projection period, when the balance 

reaches -$254,757 million. The combined employer and employee tier 2 tax rate increases to 27% 

in 2027 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. 

Table 3. Present value of benefits in millions of dollars. This table shows, for each employment 

assumption, the present value of tier 2 benefits, supplemental annuity benefits and the portion of 

tier 1 benefits which exceeds the social security level of benefits. The portion of tier 1 benefits in 

excess of the social security level is referred to as "tier 1 liability." The most important components 

of this liability were described in Section III. Supplemental annuity benefits are included with tier 2 

benefits in this table. The present values are shown separately by type of beneficiary (employee, 

spouse, survivor) and by employee status on the valuation date (retired, retired and deceased, active, 

inactive, future entrants).

Table 4. Present value of benefits as a percentage of the present value of tier 2 payroll. The format 

for this table is the same as for Table 3. Each number in Table 4 was obtained by dividing the 

corresponding number in Table 3 by the appropriate present value of one percent of tier 2 payroll. 

The payroll figures are shown in Table 6. 

Table 5. Balance of the Combined National Railroad Retirement Investment Trust and Railroad 

Retirement Account, and the Social Security Equivalent Benefit Account as of December 31, 2010. 

This table derives the balance in the accounts as of December 31, 2010. No accrual adjustments are 

made either for financial interchange amounts due and unpaid on that date or for benefits due on 

January 3, 2011, because these amounts are included in the projected future cash flows. For the 

purpose of the present value calculations, an adjustment is made for the difference between the 

actual return earned in calendar year 2011 and the 7.0% used in the present value calculations as 

discussed in Table 6 below. 

Table 6. Actuarial surplus or (deficiency) for National Railroad Retirement Investment Trust and 

Railroad Retirement Account. The top half of Table 6 expresses the asset and liability components 

of the actuarial balance as present values in dollars. The bottom half expresses these components as 

a percentage of tier 2 payroll. The actuarial surplus or deficiency was calculated for the NRRIT and 

RR Account, but not for the SSEB Account, for the following reason. 

The SSEB Account 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. If there were no other 

source of income or outgo during the course of a year, a surplus or deficiency would build up, 
11

depending on whether taxes exceeded or were less than benefits. However, the SSEB Account also 

receives or pays any financial interchange transfers. The financial interchange transfer, subject to 

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

the year. Furthermore, this would be the case even if the social security level of benefits or taxes 

are raised or lowered. The SSEB Account can thus be regarded as automatically funded, the 

financial interchange being the mechanism for correcting any surplus or deficiency. Therefore, the 

concept of actuarial balance is not meaningful when applied to the SSEB Account. 

The qualification mentioned above arises because, in a relatively small number of cases, the railroad 

retirement system does not pay benefits when social security would pay benefits. In these cases, 

mainly dependent children of retired railroad employees, the SSEB Account collects an amount 

through the financial interchange but does not pay a corresponding benefit. This imbalance 

between outgo and income is transferred from time to time to the RR Account or NRRIT. The 

value of these transfers, or amounts available for transfer, is included as an asset in Table 6 as 

“Available from SSEB Account.” 

Revenue derived from taxing NRRIT and RR Account benefits (tier 2 and the excess of tier 1 over 

the social security level) is transferred to the RR Account. The present value of these transfers is 

shown as an asset in Table 6 as “Income taxes on benefits.”

Although the actual return of the trust funds during calendar year 2011 was approximately -1.6%, 

this rate is not used in the present value calculations because using a negative rate of return would 

distort the present values of income and expenditure. Instead, the present value calculations use 

7.0% as the rate for 2011, as well as for the remaining 74 years of the projection. In order to 

account for the 2011 loss and not overstate the surplus, the beginning asset value is adjusted for the 

anticipated loss. The adjusted balance as of December 31, 2010, is calculated so that, assuming a 

7.0% rate of return for 2011, the combined RRA, NRRIT, and SSEBA balance projected on 

December 31, 2011, is equal to the actual balance on that date. 

The cost of the system to the railroad industry may be considered as the excess of “Retirement 

taxes” over “Actuarial surplus or (deficiency).” Table 6 shows that the cost of the system is much 

more stable when expressed in dollars than when expressed as a percentage of payroll. For 

example, the cost of the system under employment assumption III is $61,116 million, or 22.40 

percent of payroll, whereas the cost under employment assumption I is $68,979 million, or 16.79 

percent of payroll. Using employment assumption III as the base, the percentage cost variation in 

dollars between the two valuations is 12.87 percent. As a percentage of payroll, the percentage cost 

variation is 25.04 percent.

Table 7. Unfunded accrued liability. The railroad retirement program is a social insurance program 

rather than a private pension plan. A private pension plan should build up funds in an orderly way 

over the working lifetimes of the participants. With a fully funded program, the value of the 

accumulated assets will be sufficient to discharge all liabilities for the accrued benefits. Pay-asyou-go funding, where the pension costs are charged to the retirement years as the benefits are paid, 

is not acceptable for a private pension plan because of a lack of participant security. Because 

private pension plans can terminate, they should, ideally, be fully funded to protect the rights of 

active and retired participants. 
12

For a social insurance plan, however, the situation is different, and full funding is not necessary. 

The program is expected to operate indefinitely. Because the program is compulsory, new entrants 

will constantly be entering the program, and they and their employers will be paying taxes to 

support the program. 

Unlike some other social insurance programs, the railroad retirement program relies on payroll 

taxes from the employers and employees of a single industry. Although the railroad retirement 

program is not subject to the funding standards of a private pension plan, it is still of interest to 

calculate the normal cost and the accrued liability for the plan.

Table 7 illustrates what the funding requirements would be for the railroad retirement system as of 

December 31, 2010, using the entry age normal actuarial funding method. The present value of 

future benefits and the present value of future administrative expenses for former and present 

employees are shown on lines 1 and 2, respectively. The portion of the actuarial present value of 

benefits assigned to a particular year is called the normal cost. For the entry age normal actuarial 

funding method, the normal cost rate is the average cost expressed as a level percentage of payroll 

(line 4) that would fund the average employee’s benefits, including dependent benefits, and 

expenses over the employee’s working lifetime. The accrued liability for the program, shown on 

line 6, is equal to the difference between the present value of benefits and administrative expenses 

for former and present employees and the present value of future normal costs. Then the unfunded 

accrued liability (line 8) is the difference between the accrued liability and the funds on hand as of 

December 31, 2010 (line 6 minus line 7). This is the amount needed, in excess of funds on hand 

and future normal costs, to fund combined NRRIT and RR Account benefits and expenses for 

former and present employees. Line 10 shows the level tax rate that would be required to fund the 

unfunded accrued liability and meet the normal costs for the next 30 years. The level tax rate after 

30 years if all assumptions were realized is shown on line 11. 

Table 8. Vested dual benefit amounts and average number of beneficiaries. This table shows a 

projection of vested dual benefit payments for every fiscal year from 2013 through 2030. After 

2030, the amounts become insignificant. The amounts shown assume that the benefits are fully 

funded. Fiscal years are shown because vested dual benefit appropriations are made on a fiscal year 

basis. The table also indicates the average number of vested dual beneficiaries in each fiscal year. 

The table applies to all the employment assumptions discussed in this report.

The revenue derived from taxing pre-October 1988 vested dual benefits was transferred to the RR 

Account. The revenue derived from taxing vested dual benefits in fiscal years 1989 and later is 

transferred to the Dual Benefits Payments Account, and it reduces the amount of the appropriation 

by the same amount. Therefore, the amount available for the payment of vested dual benefits is 

unaffected by income tax revenues derived from these benefits.

The 1981 amendments removed much of the uncertainty from projections of future vested dual 

benefit payments. The volatility caused by inflation is gone, since future awards take into account 

cost-of-living increases from 1975 through 1981, rather than through the date of retirement. Also, 

awards of these benefits to spouses and widow(er)s ceased after August 13, 1981. The primary 
13

uncertainty which remains in projecting future vested dual benefit payments is estimating the 

relatively high rates of future mortality for the very old. 

The projections of vested dual benefit payments by the Railroad Retirement Board are the basis for 

the agency's requests for appropriated amounts. Generally, a margin of about 2 percent is added to 

projected amounts to determine the appropriated amounts requested. This margin is needed because 

of the uncertainties in making projections and to ensure that adequate funds are available for the full 

payment of vested dual benefits. Appropriated amounts remaining in a fiscal year after all benefit 

payments have been made are returned to the Treasury. 

Table 9. Supplemental annuity benefit amounts and average number of beneficiaries. This table 

shows a projection of supplemental annuity benefits for every calendar year from 2012 through 

2050. Since service before October 1, 1981, is required for a supplemental annuity, benefit amounts 

after 2050 will continue to decline. 

Table 10. Average number of railroad retirement annuitants and number of annuitants per full time 

employee. The left half of Table 10 shows the average number of annuitants under each 

employment assumption, and the right half shows the average number per full time employee. 

Under employment assumption I, the average number of annuitants per full time employee 

generally declines throughout the projection period. Under employment assumption II, the average 

number of annuitants per full time employee increases until reaching a maximum of 2.58 in 2020-

2022 and then declines. Under employment assumption III, the average number of annuitants per 

full time employee increases steadily to 3.44 in 2038-2041 and declines thereafter. 

VI. STATEMENT OF ACTUARIAL OPINION

It is my opinion that (1) the techniques and methodology used herein to evaluate the financial and 

actuarial status of the Railroad Retirement System are generally accepted within the actuarial 

profession; and (2) the assumptions used and the resulting actuarial estimates are, in the aggregate, 

reasonable for the purpose of evaluating the financial and actuarial status of the trust funds, taking 

into consideration the experience and expectations of the program. 

 Frank J. Buzzi

 Chief Actuary, Railroad Retirement Board 

 Fellow of the Society of Actuaries 

 Member of the American Academy of Actuaries 

 Enrolled Actuary #11-4940 
 14

Table 1. Employment, inflation and investment return assumptions

Calendar Average employment (thousands) Percentage increase over prior year Investment

year I II III Earnings Cost of living return

2011 230 230 230 3.5% 0.0% -1.6% 

2012 229 226 223 3.8 3.6 7.0 

2013 228 223 216 3.8 2.0 7.0 

2014 227 219 210 3.8 2.4 7.0 

2015 226 216 203 3.8 2.8 7.0 

2016 225 212 197 3.8 2.8 7.0 

2017 224 209 191 3.8 2.8 7.0 

2018 224 206 186 3.8 2.8 7.0 

2019 223 202 180 3.8 2.8 7.0 

2020 222 199 175 3.8 2.8 7.0 

2021 221 196 170 3.8 2.8 7.0 

2022 220 193 164 3.8 2.8 7.0 

2023 219 190 160 3.8 2.8 7.0 

2024 218 187 155 3.8 2.8 7.0 

2025 217 184 150 3.8 2.8 7.0 

2026 217 182 146 3.8 2.8 7.0 

2027 216 179 142 3.8 2.8 7.0 

2028 215 176 137 3.8 2.8 7.0 

2029 214 174 133 3.8 2.8 7.0 

2030 213 171 129 3.8 2.8 7.0 

2031 212 168 126 3.8 2.8 7.0 

2032 211 166 123 3.8 2.8 7.0 

2033 211 164 119 3.8 2.8 7.0 

2034 210 161 117 3.8 2.8 7.0 

2035 209 159 114 3.8 2.8 7.0 

2036 208 157 111 3.8 2.8 7.0 

2037 207 154 108 3.8 2.8 7.0 

2038 207 152 106 3.8 2.8 7.0 

2039 206 151 104 3.8 2.8 7.0 

2040 205 149 102 3.8 2.8 7.0 

2041 205 147 100 3.8 2.8 7.0 

2042 204 146 98 3.8 2.8 7.0 

2043 203 144 97 3.8 2.8 7.0 

2044 203 143 95 3.8 2.8 7.0 

2045 202 142 94 3.8 2.8 7.0 

2046 202 140 93 3.8 2.8 7.0 

2047 201 139 91 3.8 2.8 7.0 

2048 201 138 90 3.8 2.8 7.0 

2049 201 137 89 3.8 2.8 7.0 

2050 200 137 89 3.8 2.8 7.0 

2051 200 136 88 3.8 2.8 7.0 

2052 200 135 87 3.8 2.8 7.0 

2053 200 135 87 3.8 2.8 7.0 

2054 199 134 86 3.8 2.8 7.0 

2055 199 134 86 3.8 2.8 7.0 

2056 199 133 85 3.8 2.8 7.0 

2057 199 133 85 3.8 2.8 7.0 

2058 199 133 85 3.8 2.8 7.0 

2059 199 133 85 3.8 2.8 7.0 

2060 199 133 85 3.8 2.8 7.0 

2061-2085 199 133 85 3.8 2.8 7.0 
1937 1947 1957 1967 1977 1987 1997 2007 2017 2027 2037 2047 2057 2067 2077

Calendar Year

Figure 1. Average Railroad Employment 1937-2085, Historical and Projected

50,000

100,000

200,000

400,000

600,000

800,000

1,000,000

1,400,000

1,800,000

Employment Assumption I

Employment Assumption II

Employment Assumption III
 16

Table 2-I. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement (RR) Account, and

the Social Security Equivalent Benefit (SSEB) Account under Employment Assumption I

(Dollar amounts in millions)

Average Combined NRRIT and RR Account SSEB Account

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

2012 4.75 6.50 16.0% $4,969 $2,885 $1,928 $23,148 $6,664 $2,840 $3,777 $829 $23,977

2013 4.52 6.30 17.0% 5,130 3,125 1,604 22,747 6,849 2,935 3,938 852 23,599

2014 4.29 6.10 17.0% 5,296 3,220 1,616 22,287 7,066 3,038 4,054 879 23,166

2015 4.08 5.90 18.0% 5,469 3,497 1,588 21,902 7,317 3,153 4,196 910 22,812

2016 3.87 5.50 18.0% 5,623 3,610 1,456 21,345 7,583 3,275 4,306 908 22,253

2017 3.69 5.10 18.0% 5,755 3,729 1,491 20,809 7,852 3,406 4,515 977 21,786

2018 3.53 4.70 18.0% 5,868 3,852 1,497 20,290 8,114 3,543 4,603 1,009 21,299

2019 3.38 4.50 18.0% 5,963 3,979 1,468 19,774 8,368 3,687 4,713 1,041 20,815

2020 3.25 4.30 18.0% 6,042 4,112 1,440 19,285 8,606 3,838 4,797 1,071 20,356

2021 3.13 4.10 18.0% 6,105 4,248 1,292 18,720 8,829 3,994 4,862 1,098 19,818

2022 3.06 3.90 19.0% 6,155 4,610 1,393 18,568 9,037 4,156 4,907 1,124 19,692

2023 3.03 3.70 19.0% 6,201 4,763 1,393 18,523 9,228 4,301 4,951 1,148 19,671

2024 3.01 3.60 19.0% 6,253 4,920 1,398 18,589 9,406 4,447 4,980 1,170 19,759

2025 3.01 3.50 19.0% 6,310 5,079 1,410 18,768 9,582 4,596 5,008 1,191 19,959

2026 3.05 3.30 20.0% 6,369 5,495 1,346 19,240 9,763 4,747 5,039 1,214 20,454

2027 3.12 3.30 20.0% 6,435 5,670 1,479 19,953 9,948 4,902 5,070 1,237 21,190

2028 3.21 3.20 20.0% 6,516 5,849 1,536 20,822 10,135 5,059 5,099 1,260 22,082

2029 3.32 3.20 20.0% 6,614 6,033 1,603 21,843 10,325 5,219 5,129 1,283 23,126

2030 3.44 3.20 20.0% 6,722 6,223 1,680 23,025 10,524 5,386 5,163 1,308 24,333

2031 3.56 3.20 20.0% 6,839 6,419 1,710 24,315 10,741 5,556 5,211 1,335 25,650

2032 3.72 3.20 20.0% 6,954 6,620 1,863 25,843 10,975 5,734 5,271 1,364 27,207

2033 3.91 3.30 20.0% 7,056 6,831 1,977 27,595 11,222 5,921 5,332 1,394 28,989

2034 4.11 3.40 20.0% 7,178 7,050 2,107 29,574 11,476 6,116 5,392 1,426 31,000

2035 4.28 3.50 19.0% 7,338 6,935 2,239 31,410 11,736 6,313 5,456 1,458 32,868

2036 4.45 3.60 19.0% 7,509 7,154 2,344 33,400 12,019 6,516 5,538 1,493 34,893

2037 4.63 3.80 19.0% 7,684 7,387 2,516 35,619 12,320 6,733 5,625 1,530 37,149

2038 4.83 3.90 19.0% 7,874 7,628 2,679 38,052 12,622 6,956 5,703 1,568 39,620

2039 5.00 4.10 18.0% 8,066 7,493 2,842 40,321 12,938 7,191 5,786 1,607 41,928

2040 5.19 4.20 18.0% 8,244 7,747 3,007 42,830 13,272 7,442 5,871 1,648 44,478

2041 5.39 4.40 18.0% 8,447 8,007 3,177 45,568 13,644 7,700 5,990 1,694 47,262

2042 5.59 4.60 18.0% 8,675 8,273 3,383 48,548 14,051 7,965 6,137 1,745 50,293

2043 5.81 4.80 18.0% 8,890 8,562 3,601 51,822 14,460 8,253 6,257 1,795 53,617

2044 6.00 5.00 18.0% 9,226 8,859 3,838 55,292 14,861 8,540 6,371 1,845 57,137

2045 6.12 5.20 18.0% 9,650 9,162 4,083 58,888 15,263 8,827 6,486 1,895 60,783

2046 6.30 5.40 18.0% 9,946 9,481 4,328 62,751 15,780 9,146 6,698 1,959 64,710

2047 6.55 5.50 18.0% 10,188 9,814 4,606 66,983 16,360 9,486 6,946 2,031 69,014

2048 6.82 5.70 18.0% 10,468 10,171 4,921 71,608 16,895 9,846 7,116 2,097 73,705

2049 7.04 5.90 18.0% 10,866 10,539 5,255 76,536 17,425 10,207 7,284 2,163 78,699

2050 7.16 6.10 17.0% 11,357 10,352 5,585 81,115 17,953 10,573 7,445 2,228 83,343

2051 7.33 6.30 17.0% 11,732 10,727 5,902 86,012 18,593 10,969 7,703 2,308 88,320

2052 7.50 6.50 16.0% 12,075 10,508 6,230 90,675 19,292 11,386 7,993 2,395 93,070

2053 7.67 6.70 16.0% 12,473 10,895 6,573 95,669 19,955 11,819 8,218 2,477 98,146

2054 7.83 6.90 16.0% 12,896 11,296 6,931 101,001 20,645 12,267 8,464 2,563 103,564

2055 7.95 7.10 15.0% 13,342 11,035 7,288 105,981 21,361 12,733 8,717 2,652 108,633

2060 8.57 7.90 14.0% 15,635 12,432 9,194 133,873 25,354 15,374 10,085 3,147 137,020

2065 8.64 8.50 10.0% 18,337 11,018 10,928 157,469 29,995 18,572 11,547 3,723 161,192

2070 8.21 8.60 10.0% 21,631 13,244 12,273 176,419 35,528 22,413 13,263 4,410 180,829

2075 7.90 8.30 12.0% 25,700 18,785 13,994 202,129 42,241 27,042 15,379 5,243 207,372

2080 7.90 8.00 12.0% 30,769 22,619 16,741 241,961 50,455 32,628 18,048 6,263 248,224

2085 8.00 8.00 12.0% 36,986 27,249 20,349 294,442 60,498 39,374 21,394 7,510 301,952

 

a

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

 expenses paid from the RR Account 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 SSEB Account.

 

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.
 17

Table 2-II. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement (RR) Account, and

the Social Security Equivalent Benefit (SSEB) Account under Employment Assumption II

(Dollar amounts in millions)

Average Combined NRRIT and RR Account SSEB Account

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

2012 4.75 6.50 16.0% $4,969 $2,868 $1,928 $23,131 $6,664 $2,824 $3,793 $829 $23,960

2013 4.51 6.30 17.0% 5,130 3,076 1,601 22,678 6,849 2,889 3,983 852 23,530

2014 4.27 6.10 17.0% 5,296 3,138 1,608 22,128 7,066 2,963 4,130 879 23,007

2015 4.04 5.90 18.0% 5,469 3,374 1,572 21,606 7,317 3,044 4,304 910 22,516

2016 3.79 5.50 18.0% 5,622 3,449 1,430 20,862 7,583 3,132 4,449 908 21,770

2017 3.57 5.10 18.0% 5,754 3,526 1,449 20,083 7,852 3,225 4,696 977 21,060

2018 3.36 4.70 18.0% 5,866 3,605 1,437 19,258 8,113 3,322 4,823 1,009 20,267

2019 3.16 4.40 18.0% 5,960 3,685 1,385 18,369 8,367 3,424 4,975 1,041 19,410

2020 2.97 4.20 18.0% 6,037 3,770 1,329 17,431 8,604 3,530 5,103 1,070 18,501

2021 2.76 4.00 18.0% 6,099 3,854 1,147 16,333 8,826 3,639 5,215 1,098 17,431

2022 2.60 3.80 19.0% 6,147 4,136 1,209 15,531 9,032 3,751 5,307 1,123 16,654

2023 2.45 3.60 19.0% 6,191 4,229 1,161 14,730 9,219 3,843 5,400 1,147 15,877

2024 2.33 3.30 20.0% 6,239 4,529 1,119 14,139 9,392 3,934 5,480 1,168 15,307

2025 2.22 3.20 20.0% 6,294 4,626 1,083 13,554 9,563 4,025 5,559 1,189 14,743

2026 2.09 3.00 20.0% 6,349 4,724 954 12,883 9,736 4,115 5,643 1,211 14,094

2027 2.07 2.80 23.0% 6,409 5,483 1,028 12,985 9,912 4,206 5,728 1,232 14,217

2028 2.07 2.60 23.0% 6,485 5,597 1,040 13,137 10,087 4,296 5,812 1,254 14,391

2029 2.07 2.50 23.0% 6,577 5,711 1,055 13,325 10,263 4,386 5,898 1,276 14,601

2030 2.18 2.40 27.0% 6,678 6,767 1,105 14,519 10,446 4,479 5,989 1,298 15,817

2031 2.33 2.30 27.0% 6,791 6,905 1,134 15,767 10,643 4,572 6,095 1,322 17,089

2032 2.50 2.30 27.0% 6,898 7,045 1,282 17,197 10,853 4,668 6,211 1,349 18,546

2033 2.68 2.30 27.0% 6,990 7,194 1,388 18,790 11,072 4,771 6,327 1,376 20,166

2034 2.89 2.30 27.0% 7,099 7,349 1,505 20,544 11,292 4,877 6,442 1,403 21,947

2035 3.09 2.40 27.0% 7,244 7,502 1,632 22,434 11,514 4,981 6,560 1,430 23,864

2036 3.30 2.40 27.0% 7,395 7,659 1,739 24,436 11,752 5,088 6,694 1,460 25,896

2037 3.40 2.60 23.0% 7,549 6,743 1,870 25,501 12,002 5,205 6,828 1,490 26,991

2038 3.48 2.70 23.0% 7,710 6,895 1,950 26,636 12,245 5,325 6,951 1,520 28,156

2039 3.56 2.80 23.0% 7,869 7,057 2,033 27,857 12,496 5,452 7,075 1,551 29,408

2040 3.57 3.00 20.0% 8,011 6,358 2,091 28,294 12,758 5,592 7,198 1,584 29,878

2041 3.56 3.10 20.0% 8,172 6,515 2,114 28,751 13,050 5,736 7,350 1,620 30,371

2042 3.54 3.30 20.0% 8,348 6,675 2,157 29,235 13,363 5,882 7,519 1,659 30,894

2043 3.54 3.40 20.0% 8,502 6,859 2,199 29,792 13,664 6,049 7,652 1,696 31,488

2044 3.51 3.40 20.0% 8,768 7,045 2,243 30,311 13,947 6,211 7,771 1,731 32,042

2045 3.40 3.50 19.0% 9,102 6,902 2,268 30,379 14,221 6,370 7,885 1,765 32,144

2046 3.33 3.50 19.0% 9,278 7,098 2,264 30,463 14,605 6,560 8,092 1,813 32,276

2047 3.30 3.50 19.0% 9,398 7,303 2,277 30,646 15,027 6,765 8,315 1,865 32,511

2048 3.28 3.50 19.0% 9,557 7,530 2,308 30,927 15,382 6,985 8,441 1,909 32,836

2049 3.23 3.50 19.0% 9,825 7,762 2,335 31,200 15,720 7,201 8,561 1,951 33,151

2050 3.15 3.50 19.0% 10,163 8,000 2,358 31,395 16,045 7,417 8,668 1,992 33,387

2051 3.13 3.40 20.0% 10,355 8,652 2,383 32,074 16,472 7,663 8,862 2,045 34,119

2052 3.16 3.40 20.0% 10,515 8,929 2,439 32,928 16,933 7,922 9,067 2,102 35,030

2053 3.19 3.40 20.0% 10,730 9,224 2,518 33,940 17,330 8,192 9,187 2,151 36,091

2054 3.23 3.30 20.0% 10,961 9,532 2,598 35,109 17,740 8,472 9,319 2,202 37,311

2055 3.28 3.30 20.0% 11,203 9,854 2,689 36,449 18,161 8,764 9,449 2,254 38,703

2060 3.82 3.40 20.0% 12,350 11,713 3,397 47,101 20,434 10,461 10,033 2,537 49,638

2065 4.69 3.90 19.0% 13,731 13,370 4,563 64,492 22,972 12,558 10,482 2,852 67,344

2070 5.72 4.70 18.0% 15,539 15,245 6,206 89,059 26,027 15,086 11,024 3,231 92,290

2075 7.10 5.70 18.0% 17,946 18,308 8,772 127,908 29,879 18,141 11,843 3,709 131,617

2080 8.35 7.00 15.0% 21,105 18,578 12,087 176,350 34,817 21,842 13,110 4,322 180,672

2085 8.92 8.20 12.0% 25,066 18,216 15,348 223,029 41,096 26,329 14,939 5,101 228,130

 

a

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

 expenses paid from the RR Account 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 SSEB Account.

 

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.
 18

Table 2-III. Progress of the Combined National Railroad Retirement Investment Trust (NRRIT) and Railroad Retirement (RR) Account, and

the Social Security Equivalent Benefit (SSEB) Account under Employment Assumption III

(Dollar amounts in millions)

Average Combined NRRIT and RR Account SSEB Account

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

2012 4.75 6.50 16.0% $4,969 $2,849 $1,927 $23,111 $6,664 $2,806 $3,812 $829 $23,940

2013 4.49 6.30 17.0% 5,130 3,019 1,597 22,598 6,849 2,836 4,036 852 23,450

2014 4.24 6.10 17.0% 5,296 3,044 1,599 21,945 7,066 2,875 4,218 879 22,824

2015 3.98 5.90 18.0% 5,468 3,234 1,554 21,265 7,317 2,921 4,428 910 22,175

2016 3.70 5.50 18.0% 5,621 3,266 1,399 20,309 7,583 2,970 4,611 908 21,217

2017 3.44 5.10 18.0% 5,752 3,299 1,402 19,257 7,852 3,023 4,898 977 20,234

2018 3.18 4.70 18.0% 5,863 3,331 1,369 18,094 8,113 3,077 5,068 1,009 19,103

2019 2.91 4.40 18.0% 5,956 3,363 1,291 16,792 8,366 3,135 5,263 1,041 17,833

2020 2.64 4.10 18.0% 6,032 3,397 1,205 15,362 8,602 3,195 5,436 1,070 16,432

2021 2.37 3.90 19.0% 6,093 3,597 993 13,860 8,822 3,256 5,594 1,097 14,957

2022 2.11 3.60 19.0% 6,139 3,631 1,017 12,369 9,026 3,318 5,733 1,123 13,492

2023 1.86 3.40 20.0% 6,180 3,836 925 10,951 9,209 3,358 5,874 1,145 12,096

2024 1.61 3.10 20.0% 6,226 3,871 831 9,427 9,377 3,396 6,002 1,166 10,593

2025 1.41 2.80 23.0% 6,276 4,426 746 8,324 9,541 3,431 6,130 1,186 9,510

2026 1.20 2.60 23.0% 6,328 4,459 579 7,034 9,707 3,464 6,263 1,207 8,241

2027 1.07 2.30 27.0% 6,384 5,199 609 6,459 9,872 3,496 6,396 1,227 7,686

2028 0.97 2.10 27.0% 6,454 5,234 571 5,810 10,033 3,525 6,528 1,247 7,057

2029 0.84 1.90 27.0% 6,540 5,266 527 5,063 10,194 3,552 6,662 1,267 6,330

2030 0.71 1.70 27.0% 6,634 5,299 475 4,203 10,359 3,578 6,801 1,287 5,490

2031 0.54 1.50 27.0% 6,734 5,334 357 3,160 10,535 3,606 6,951 1,309 4,469

2032 0.38 1.30 27.0% 6,826 5,376 341 2,050 10,720 3,638 7,105 1,332 3,382

2033 0.20 1.10 27.0% 6,900 5,427 266 843 10,908 3,677 7,254 1,355 2,198

2034 0.08 0.90 27.0% 6,987 5,482 663 - 11,093 3,719 6,918 898 898

2035 0.01 0.80 27.0% 7,107 5,534 1,013 (560) 11,274 3,757 6,619 - (560)

2036 -0.22 0.70 27.0% 7,233 5,589 (15) (2,220) 11,466 3,797 7,669 - (2,220)

2037 -0.45 0.50 27.0% 7,357 5,656 (104) (4,025) 11,662 3,845 7,817 - (4,025)

2038 -0.71 0.40 27.0% 7,488 5,728 (231) (6,016) 11,845 3,895 7,949 - (6,016)

2039 -0.97 0.20 27.0% 7,613 5,808 (370) (8,191) 12,027 3,951 8,076 - (8,191)

2040 -1.26 -0.10 27.0% 7,718 5,904 (521) (10,526) 12,214 4,018 8,197 - (10,526)

2041 -1.56 -0.30 27.0% 7,839 6,000 (693) (13,058) 12,424 4,086 8,338 - (13,058)

2042 -1.87 -0.50 27.0% 7,968 6,098 (860) (15,787) 12,643 4,155 8,489 - (15,787)

2043 -2.20 -0.70 27.0% 8,064 6,227 (1,048) (18,672) 12,838 4,244 8,594 - (18,672)

2044 -2.53 -1.00 27.0% 8,265 6,352 (1,251) (21,836) 13,005 4,324 8,681 - (21,836)

2045 -2.86 -1.20 27.0% 8,510 6,477 (1,475) (25,344) 13,156 4,401 8,755 - (25,344)

2046 -3.25 -1.50 27.0% 8,570 6,627 (1,717) (29,005) 13,411 4,509 8,902 - (29,005)

2047 -3.68 -1.80 27.0% 8,576 6,787 (1,963) (32,756) 13,682 4,628 9,054 - (32,756)

2048 -4.10 -2.10 27.0% 8,625 6,973 (2,218) (36,626) 13,862 4,757 9,105 - (36,626)

2049 -4.51 -2.50 27.0% 8,777 7,157 (2,487) (40,733) 14,017 4,878 9,139 - (40,733)

2050 -4.90 -2.80 27.0% 8,974 7,342 (2,773) (45,137) 14,152 4,998 9,154 - (45,137)

2051 -5.36 -3.20 27.0% 8,996 7,551 (3,073) (49,656) 14,382 5,145 9,237 - (49,656)

2052 -5.87 -3.60 27.0% 8,986 7,769 (3,378) (54,250) 14,623 5,302 9,321 - (54,250)

2053 -6.37 -4.00 27.0% 9,037 8,005 (3,691) (58,973) 14,776 5,463 9,312 - (58,973)

2054 -6.86 -4.40 27.0% 9,096 8,251 (4,013) (63,831) 14,934 5,631 9,303 - (63,831)

2055 -7.35 -4.80 27.0% 9,158 8,508 (4,344) (68,826) 15,092 5,806 9,286 - (68,826)

2060 -10.02 -7.20 27.0% 9,327 10,030 (6,095) (95,075) 15,903 6,841 9,063 - (95,075)

2065 -12.54 -9.80 27.0% 9,664 11,961 (7,950) (122,813) 16,796 8,137 8,658 - (122,813)

2070 -14.49 -12.30 27.0% 10,398 14,306 (9,900) (152,039) 18,076 9,705 8,371 - (152,039)

2075 -15.64 -14.20 27.0% 11,656 17,160 (11,981) (183,373) 20,022 11,614 8,408 - (183,373)

2080 -16.08 -15.50 27.0% 13,472 20,636 (14,242) (217,554) 22,842 13,952 8,890 - (217,554)

2085 -16.05 -16.00 27.0% 15,818 24,857 (16,698) (254,757) 26,649 16,810 9,838 - (254,757)

 

a

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

 expenses paid from the RR Account 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 SSEB Account.

 

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.
 19

Table 3. Present valuea

 of benefits in millions of dollars

Employment assumption I Employment assumption II Employment assumption III

Tier 1 Tier 1 Tier 1

Tier 2b liabilityc Total Tier 2b liabilityc Total Tier 2b liabilityc Total

Employee annuities

Retired $ 19,701 $ 7,197 $ 26,899 $ 19,701 $ 7,197 $ 26,899 $ 19,701 $ 7,197 $ 26,899

Active 20,621 9,211 29,831 20,621 9,211 29,831 20,621 9,211 29,831

Inactive 1,163 291 1,454 1,163 291 1,454 1,163 291 1,454

Future entrants 8,120 3,248 11,368 5,952 2,386 8,338 4,001 1,606 5,607

Total 49,605 19,948 69,552 47,437 19,086 66,523 45,486 18,306 63,792

Spouse annuities

Retired 5,323 2,101 7,423 5,323 2,101 7,423 5,323 2,101 7,423

Active 5,193 2,808 8,001 5,193 2,808 8,001 5,193 2,808 8,001

Inactive 252 55 306 252 55 306 252 55 306

Future entrants 1,755 714 2,469 1,290 528 1,818 868 356 1,224

Total 12,522 5,677 18,200 12,058 5,491 17,549 11,636 5,319 16,955

Survivor annuities

Retired & deceased 5,850 900 6,750 5,850 900 6,750 5,850 900 6,750

Active 2,388 286 2,674 2,388 286 2,674 2,388 286 2,674

Inactive 45 18 62 45 18 62 45 18 62

Future entrants 956 177 1,133 707 130 838 478 88 566

Total 9,239 1,380 10,619 8,990 1,334 10,324 8,761 1,291 10,052

All annuities combined

Retired & deceased 30,874 10,198 41,072 30,874 10,198 41,072 30,874 10,198 41,072

Active 28,202 12,304 40,506 28,202 12,304 40,506 28,202 12,304 40,506

Inactive 1,459 363 1,823 1,459 363 1,823 1,459 363 1,823

Future entrants 10,830 4,140 14,970 7,950 3,045 10,994 5,347 2,050 7,398

Total annuities $ 71,366 $ 27,005 $ 98,371 $ 68,485 $ 25,910 $ 94,395 $ 65,883 $ 24,916 $ 90,799

Lump sum payments 59 59 59

Total benefits $ 98,430 $ 94,454 $ 90,858

Note: Detail may not add to totals due to rounding.

a

 Present values are determined using a 7% interest rate for all years.

b

 Includes supplemental annuity benefits.

c

 Tier 1 benefits in excess of social security level.
 20

Table 4. Present valuea

 of benefits as a percentage of the present valuea of tier 2 payroll

Employment assumption I Employment assumption II Employment assumption III

Tier 1 Tier 1 Tier 1

Tier 2b liabilityc Total Tier 2b liabilityc Total Tier 2b liabilityc Total

Employee annuities

Retired 4.79% 1.75% 6.55% 5.85% 2.14% 7.99% 7.22% 2.64% 9.86%

Active 5.02 2.24 7.26 6.13 2.74 8.86 7.56 3.38 10.94 

Inactive 0.28 0.07 0.35 0.35 0.09 0.43 0.43 0.11 0.53 

Future entrants 1.98 0.79 2.77 1.77 0.71 2.48 1.47 0.59 2.06 

Total 12.07 4.85 16.93 14.09 5.67 19.76 16.68 6.71 23.39 

Spouse annuities

Retired 1.30 0.51 1.81 1.58 0.62 2.21 1.95 0.77 2.72 

Active 1.26 0.68 1.95 1.54 0.83 2.38 1.90 1.03 2.93 

Inactive 0.06 0.01 0.07 0.07 0.02 0.09 0.09 0.02 0.11 

Future entrants 0.43 0.17 0.60 0.38 0.16 0.54 0.32 0.13 0.45 

Total 3.05 1.38 4.43 3.58 1.63 5.21 4.27 1.95 6.22 

Survivor annuities

Retired & deceased 1.42 0.22 1.64 1.74 0.27 2.01 2.14 0.33 2.47 

Active 0.58 0.07 0.65 0.71 0.08 0.79 0.88 0.10 0.98 

Inactive 0.01 0.00 0.02 0.01 0.01 0.02 0.02 0.01 0.02 

Future entrants 0.23 0.04 0.28 0.21 0.04 0.25 0.18 0.03 0.21 

Total 2.25 0.34 2.58 2.67 0.40 3.07 3.21 0.47 3.69 

All annuities combined

Retired & deceased 7.51 2.48 9.99 9.17 3.03 12.20 11.32 3.74 15.06 

Active 6.86 2.99 9.86 8.38 3.66 12.03 10.34 4.51 14.85 

Inactive 0.36 0.09 0.44 0.43 0.11 0.54 0.54 0.13 0.67 

Future entrants 2.64 1.01 3.64 2.36 0.90 3.27 1.96 0.75 2.71 

Total annuities 17.37% 6.57% 23.94% 20.35% 7.70% 28.05% 24.15% 9.14% 33.29%

Lump sum payments 0.01 0.02 0.02 

Total benefits 23.95% 28.06% 33.31%

Note: Detail may not add to totals due to rounding.

a

 Present values are determined using a 7% interest rate for all years.

b

 Includes supplemental annuity benefits.

c

 Tier 1 benefits in excess of social security level.
 21

Table 5. Balance of the Combined National Railroad Retirement Investment Trust

and Railroad Retirement Account, and the Social Security

Equivalent Benefit Account as of December 31, 2010

(Dollar amounts in millions)

Combined NRRIT SSEB

and RR Account Account

Securities:

Market value of NRRIT investments $ 24,978 -$ 

Par value specialsa (including accrued interest) 379 857

Loan to Railroad Unemployment Insurance Account 48

Cash accounts 3 3

Balance 25,408 860

Adjustment to reflect actual returnb

 1,918 - 

Adjusted balance for use in present value calculation $ 23,490 $ 860

a

 Par value specials are securities issued by the Treasury directly to the RR and SSEB

 Accounts, maturing on the first business day of the month following the month of issue.

 Their yield rate each month is the average yield rate, computed as of the last day of the

 previous month, of marketable Treasury notes with maturity dates not less than three

 years away.

b

 This adjustment, which accounts for the difference between the actual -1.6% return 

 earned in calendar year 2011 and the 7% rate used in the present value calculations,

 provides for consistency with the present value calculations.
 22

Table 6. Actuarial surplus or (deficiency) for National Railroad Retirement

Investment Trust and Railroad Retirement Account

Employment assumption

I II III

Present values in millions of dollars

Adjusted funds on hand, 12/31/2010 23,490$ 23,490$ 23,490$ 

Retirement taxes 70,868 66,314 59,522 

Income taxes on benefits 6,668 6,396 6,150 

Available from SSEB Account 2,443 2,368 2,300 

Total, present and prospective assets 103,469 98,568 91,462 

Benefit payments 98,430 94,454 90,858 

Administrative expenses 3,150 2,687 2,198 

Total liabilities 101,580 97,141 93,056 

Actuarial surplus or (deficiency) 1,889 1,427 (1,594) 

One percent of tier 2 payroll 4,109$ 3,366$ 2,728$ 

Present values as a

percentage of tier 2 payroll

Adjusted funds on hand, 12/31/2010 5.72% 6.98% 8.61%

Retirement taxes 17.25 19.70 21.82 

Income taxes on benefits 1.62 1.90 2.25 

Available from SSEB Account 0.59 0.70 0.84 

Total, present and prospective assets 25.18 29.28 33.53 

Benefit payments 23.95 28.06 33.31 

Administrative expenses 0.77 0.80 0.81 

Total liabilities 24.72 28.86 34.12 

Actuarial surplus or (deficiency) 0.46 0.42 (0.58) 
 23

Table 7. Unfunded accrued liability

(Dollar amounts in millions)

Amount or rate

1. Present value of benefits for former and present employees 83,460$ 

2. Present value of administrative expenses for former and present

employees 2,374 

3. Present value of tier 2 payroll for present employees 145,539 

4. Normal cost as a level percentage of tier 2 payroll 7.46%

5. Present value of future service costs for present employees = 10,857 

(3) x (4)

6. Accrued liability = (1) + (2) - (5) 74,977 

7. Funds on hand, 12/31/2010a 24,350 

8. Unfunded accrued liability = (6) - (7) 50,627 

9. Level amount to fund unfunded accrued liability in 30 years 3,935 

Employment Assumption

I II III

10. Level tax rate to fund unfunded accrued liability and meet

normal costs for next 30 years 25.36% 27.77% 30.88%

11. Tax rate after 30 years (normal cost rate) 7.46% 7.46% 7.46%

a

 The amount shown is the sum of the NRRIT, RR Account and SSEB Account balances shown

 in Table 5.
 24

Table 8. Vested dual benefit amounts and average number of beneficiaries

Vested dual Average

Fiscal benefit amountsa number of

year (Millions) beneficiaries

2013 $44 22,000 

2014 39 20,000 

2015 34 17,000 

2016 29 15,000 

2017 25 13,000 

2018 22 11,000 

2019 18 9,000 

2020 15 8,000 

2021 13 6,000 

2022 11 5,000 

2023 9 4,000 

2024 7 4,000 

2025 6 3,000 

2026 5 2,000 

2027 4 2,000 

2028 3 1,000 

2029 2 1,000 

2030 2 1,000 

a

 When projected amounts are used to determine the appropriation

 needed for benefit payments, a margin must be added to ensure

 payment of full benefits.
 25

Table 9. Supplemental annuity benefit amounts and average number of beneficiaries

Supplemental Average

Calendar benefit amounts number of

year (Millions) beneficiariesa

2012 $62 123,000 

2013 62 123,000 

2014 62 124,000 

2015 62 124,000 

2016 62 123,000 

2017 61 122,000 

2018 60 120,000 

2019 59 117,000 

2020 58 114,000 

2021 56 110,000 

2022 53 106,000 

2023 51 101,000 

2024 49 96,000 

2025 46 91,000 

2026 44 86,000 

2027 41 81,000 

2028 39 76,000 

2029 36 71,000 

2030 34 67,000 

2031 31 62,000 

2032 29 57,000 

2033 27 53,000 

2034 24 48,000 

2035 22 44,000 

2036 20 40,000 

2037 18 36,000 

2038 16 32,000 

2039 14 28,000 

2040 13 25,000 

2041 11 22,000 

2042 10 19,000 

2043 8 16,000 

2044 7 14,000 

2045 6 12,000 

2046 5 10,000 

2047 4 8,000 

2048 3 6,000 

2049 3 5,000 

2050 2 4,000 

a

 Average number in a year. Excludes cases where the supplemental annuity is totally 

 eliminated because of a private pension. On January 1, 2011, there were about 33,000

 of these cases.
 26

Table 10. Average number of railroad retirement annuitantsa and number of annuitants per full time employee

Average number of annuitants Average number of annuitants

Calendar under each employment assumption per full time employee

year I II III I II III 

2012 544,900 544,900 544,900 2.38 2.41 2.44

2013 541,500 541,500 541,500 2.37 2.43 2.50

2014 538,300 538,300 538,300 2.37 2.46 2.57

2015 535,400 535,400 535,400 2.37 2.48 2.63

2016 532,300 532,300 532,300 2.36 2.51 2.70

2017 528,800 528,800 528,800 2.36 2.53 2.76

2018 524,400 524,400 524,300 2.35 2.55 2.82

2019 519,200 519,100 519,100 2.33 2.57 2.88

2020 513,100 513,000 512,800 2.31 2.58 2.93

2021 506,100 505,900 505,800 2.29 2.58 2.98

2022 498,400 498,100 497,800 2.27 2.58 3.03

2023 490,000 489,600 489,100 2.24 2.57 3.06

2024 481,200 480,700 480,000 2.20 2.57 3.10

2025 472,500 471,700 470,800 2.17 2.56 3.13

2026 463,800 462,800 461,700 2.14 2.55 3.16

2027 455,400 454,000 452,500 2.11 2.54 3.20

2028 447,100 445,400 443,500 2.08 2.53 3.23

2029 439,200 437,100 434,700 2.05 2.52 3.26

2030 431,600 429,000 426,100 2.02 2.51 3.29

2031 424,500 421,400 418,000 2.00 2.50 3.33

2032 417,800 414,000 409,900 1.98 2.49 3.35

2033 411,000 406,500 401,700 1.95 2.48 3.36

2034 404,600 399,300 393,600 1.93 2.48 3.38

2035 398,900 392,700 386,000 1.91 2.47 3.40

2036 393,700 386,500 378,800 1.89 2.47 3.42

2037 388,900 380,600 371,700 1.88 2.46 3.43

2038 384,100 374,600 364,500 1.86 2.46 3.44

2039 379,500 368,700 357,300 1.84 2.45 3.44

2040 374,900 362,800 350,000 1.83 2.44 3.44

2041 371,200 357,600 343,400 1.81 2.43 3.44

2042 368,100 352,900 337,100 1.80 2.42 3.43

2043 364,700 347,800 330,100 1.79 2.41 3.42

2044 362,300 343,400 323,900 1.79 2.40 3.40

2045 360,700 339,600 318,100 1.78 2.40 3.39

2046 359,000 335,600 311,800 1.78 2.39 3.37

2047 357,300 331,500 305,300 1.77 2.38 3.34

2048 355,400 327,000 298,300 1.77 2.36 3.30

2049 354,100 323,200 292,000 1.76 2.35 3.26

2050 353,300 319,700 285,900 1.76 2.34 3.23

2055 348,900 300,300 253,100 1.75 2.25 2.95

2060 343,600 280,300 221,100 1.73 2.11 2.61

2065 337,100 260,900 192,800 1.70 1.97 2.28

2070 330,800 244,200 170,800 1.67 1.84 2.02

2075 325,700 231,600 155,800 1.64 1.75 1.84

2080 322,400 223,200 146,700 1.62 1.68 1.73

2085 320,600 218,200 141,700 1.61 1.64 1.67

a

 Excludes partition payments to spouses and divorced spouses where the employee is deceased or not

 otherwise entitled to an annuity. On December 31, 2010, there were 745 of these cases.
 27

Table 11. Transfers to railroad retirement system under financial interchange with social security system, 1937-2012a

(Millions of dollars)

Benefit Tax Cash transfers toc

Fiscal credits to credits to railroad retirement

Determination years railroad social Year of

number covered retirementb security Amount transfer

1-25 1937-76 d 20,912.4 e 9,743.9 11,826.7 d 1953-77 d

26 1977 f 2,556.6 e 1,060.8 1,618.5 1978

27 1978 2,230.3 902.6 1,477.4 1979

28 1979 2,389.5 1,089.9 1,429.9 1980

29 1980 2,683.4 1,204.8 1,614.4 1981

30 1981 2,973.7 1,322.5 1,819.6 1982

31 1982 3,321.9 1,296.0 2,278.6 1983

32 1983 3,471.8 1,287.9 2,425.6 1984

33 1984 3,524.1 1,472.8 2,352.9 1985

34 1985 3,658.5 1,443.1 2,652.8 1986

35 1986 3,744.8 1,398.7 2,614.2 1987

36 1987 3,864.4 1,305.0 2,851.3 1988

37 1988 4,028.8 1,427.3 2,933.5 1989

38 1989 4,149.5 1,418.9 3,049.1 1990

39 1990 4,415.3 1,451.1 3,456.7 1991

40 1991 4,434.7 1,476.5 3,206.4 1992

41 1992 4,720.1 1,523.1 3,435.4 1993

42 1993 4,796.5 1,583.3 3,525.5 1994

43 1994 5,199.6 1,515.5 4,120.1 1995

44 1995 4,836.2 e 1,545.1 3,556.3 1996

45 1996 5,008.0 1,566.8 3,747.2 1997

46 1997 5,114.1 1,615.4 3,819.1 1998

47 1998 5,173.5 1,641.9 3,816.0 1999

48 1999 5,195.6 1,767.5 3,697.6 2000

49 2000 4,767.8 e 1,750.9 3,282.8 2001

50 2001 5,180.5 1,756.9 3,646.8 2002

51 2002 5,217.5 1,748.2 3,747.3 2003

52 2003 5,350.6 1,731.1 3,843.5 2004

53 2004 5,480.8 1,820.0 3,917.3 2005

54 2005 5,527.6 1,906.1 3,846.3 2006

55 2006 5,746.8 1,976.5 4,019.8 2007

56 2007 5,853.6 2,076.6 4,049.9 2008

57 2008 6,005.5 2,095.6 4,137.3 2009

58 2009 6,212.0 2,035.4 4,391.6 2010

59 2010 6,431.5 2,074.1 4,574.3 2011

60 2011 6,524.1 2,143.3 4,651.0 2012

Total 1937-2011 180,701.6 65,175.1 125,432.5

a

 Financial interchange transactions with the Hospital Insurance Trust Fund are not included. These involve mainly a transfer of collected

 taxes to the Centers for Medicare & Medicaid Services, with some adjustments for difference in earnings bases under the two systems.

b

 Amounts include allowances for administrative expenses and adjustments to previous determinations.

c

 Transfers include interest which is not shown in table.

d

 First determination covered period January 1937-June 1952. Initial balance of $488.2 million was never transferred to social security;

 only interest was paid until debt was liquidated by subsequent offsets in favor of railroad retirement.

e

 Includes adjustment for pre-1957 military service.

f

 1977 figure covered 15 months (July 1976 - September 1977) because of change in definition of fiscal year.
28

A P P E N D I X

Outline of the benefit and financing provisions

of the railroad retirement system as amended through December 31, 2011

EMPLOYEE BENEFITS

1. Normal age annuity

Requirement of 10 years of service or 5 years of service after 1995 for retirement at social security retirement age (see definition at end of 

outline). Employees with less than 10 years of service must meet Social Security Act eligibility requirements to receive a tier 1 benefit.

2. Prenormal age annuity

A. Eligible for unreduced benefit upon later of (1) attainment of age 60 and (2) completion of 30 years of service (60/30 eligibility).

B. Eligible for reduced benefit with less than 30 years of service upon later of (1) attainment of age 62 and (2) completion of 10 years 

of service or 5 years of service after 1995. The benefit is reduced by 1/180 for each of the first 36 months and by 1/240 for each 

additional month the employee is under social security retirement age. (Reduction for age in excess of 36 months applies only to 

tier 1 benefit if employee had any service before 8-12-1983.)

3. Total and permanent disability annuity

10-year service requirement or 5 years of service after 1995. Benefit may not begin earlier than the later of (1) the first day of the sixth 

month following date disability begins and (2) the first day of the twelfth month before the month in which the application is filed. 

Employees with less than 10 years of service and at least 5 years of service after 1995 who meet Social Security eligibility requirements 

may qualify for a tier 1 benefit only (an age reduced tier 2 benefit would be payable at age 62).

4. Occupational disability annuity

Requirement of 20 years of service or attainment of age 60 with 10 years of service; current connection (see definition at end of outline) 

required. Benefit may not begin earlier than the later of (1) the first day of the sixth month following date disability begins and (2) the first 

day of the twelfth month before the month in which the application is filed.

5. Supplemental annuity

Requirement of attainment of age 60 with 30 years of service if retired on or after 7-1-1974, or age 65 with 25 years of service. Must have 

service before 10-1-1981. Current connection required.

6. Vested dual benefit

A. Requirement of fully insured (see definition at end of outline) status under Social Security Act effective 12-31-1974 and either 

(1) 25 years of railroad service before 1975 or (2) 10 years of railroad service before 1975, with some railroad work in 1974 or a 

current connection on 12-31-1974 or at the time the annuity begins, or

B. Requirement of fully insured status under Social Security Act as of last year of railroad work before 1975 and 10 years of railroad 

service before 1975.
29

7. Work restrictions

Suspension of annuity for any month annuitant is employed by a railroad. For disabilities in 2012, loss of one month's annuity for each 

$790 in excess of $9,480 earned in a year with the last $395 of such excess treated as $790 (no annuity is lost for any month with earnings 

below $790). In addition, the tier 1 portion of a regular annuity based on railroad earnings (see definition at end of outline) after 1974 and 

all social security earnings (see definition at end of outline) is subject to social security work restrictions, unless a social security benefit is 

also being paid. If annuitant is employed by last non-railroad employer preceding retirement, the tier 2 portion and the supplemental 

annuity are reduced by one dollar for each two dollars of earnings, subject to a maximum reduction of 50 percent. All vested dual benefits 

are subject to social security work restrictions.

8. Creditable service (continuity not required)

All service after December 31, 1936. Service before 1937 may be used if annuitant had employment relation on August 29, 1935 or 6 

months of service after August 29, 1935 and before 1946. No limit on service except 30-year maximum if pre-1937 service used. 

Additional service months may be deemed, for years after 1984, where employee does not work in every month of year, but railroad 

earnings exceed monthly prorations of annual tier 2 maximum earnings creditable.

9. Creditable and taxable railroad earnings

From 1966 through 1978, the maximum monthly earnings were one-twelfth of the annual social security maximum. The 1977 social 

security amendments introduced a difference between the maximum monthly earnings creditable for tier 1 and tier 2 benefits starting

in 1979. 

before July 1, 1954 $ 300 Tier 1 Tier 2 

July 1, 1954 - May 31, 1959 350 1979 $1,908.33 $1,575

June 1, 1959 – Oct. 31, 1963 400 1980 2,158.33 1,700

Nov. 1, 1963 – Dec. 31, 1965 450 1981 2,475 1,850

1966-67 550 1982 2,700 2,025

1968-71 650 1983 2,975 2,225

1972 750 1984 3,150 2,350

1973 900

1974 1,100

1975 1,175

1976 1,275

1977 1,375

1978 1,475

Starting in 1985, earnings are credited on an annual rather than a monthly basis. The annual maximums are:

 Tier 1 Tier 2 Tier 1 Tier 2

1985 $39,600 $29,700 1999 $72,600 $53,700

1986 42,000 31,500 2000 76,200 56,700

1987 43,800 32,700 2001 80,400 59,700

1988 45,000 33,600 2002 84,900 63,000

1989 48,000 35,700 2003 87,000 64,500

1990 51,300 38,100 2004 87,900 65,100

1991 53,400 39,600 2005 90,000 66,900

1992 55,500 41,400 2006 94,200 69,900

1993 57,600 42,900 2007 97,500 72,600

1994 60,600 45,000 2008 102,000 75,900

1995 61,200 45,300 2009 106,800 79,200

1996 62,700 46,500 2010 106,800 79,200

1997 65,400 48,600 2011 106,800 79,200

1998 68,400 50,700 2012 110,100 81,900
30

10. Creditable military service and earnings

Military service is creditable in war and national emergency periods, and in some cases between June 15, 1948 and December 15, 1950, if 

preceded by railroad service in the year of entry into military service or the preceding year.

Earnings: $160 before 1968

$260 after 1967 but before 1975

For each calendar year after 1974, earnings are the same as that credited under social security.

11. Basic monthly annuity computation

Tier 1: Social security benefit based on combined railroad and social security earnings, less social security benefit actually payable (based 

on social security earnings only). See item 2 for computation of tier 1 benefit for employees with 60/30 eligibility.

Tier 2: 0.7% of the average monthly compensation (AMC) multiplied by the number of years of service. This amount is then reduced by 

25% of the employee's gross vested dual benefit. The AMC is the average of an individual's highest 60 months of railroad earnings 

up to the tier 2 maximum. For each month of service in a year for which the Railroad Retirement Board's records do not show 

earnings on a monthly basis, the total earnings for the year divided by the months of service in that year will be considered the 

monthly earnings for each month of service in the year.

12. Vested dual benefit computation

A. For employees satisfying requirements in item 6.A., benefit is social security benefit based on railroad earnings through 1974, plus 

social security benefit based on social security earnings through 1974, less social security benefit based on combined railroad and 

social security earnings through 1974.

B. For employees satisfying requirements of item 6.B., benefit is the same as in A., except for the exclusion of all earnings after last 

pre-1975 year employee had railroad employment.

In both cases, benefit might be proportionally reduced so that the total amount paid out in vested dual benefits in any fiscal year does 

not exceed the total amount appropriated for that year (see item 39).

13. Supplemental annuity computation

For employees who were entitled to supplemental annuities or who would have been entitled, but for last person service, prior to 1975, the 

monthly benefit is a minimum of $45 increased by $5 for each year of service over 25, with a maximum benefit of $70. These employees 

have a reduction in their regular railroad retirement annuity because of the supplemental annuity. For employees first entitled or potentially 

entitled after 1974, the monthly benefit is a minimum of $23 increased by $4 for each year of service over 25, with a maximum benefit of 

$43. These employees have no reduction in their regular railroad retirement annuity. Supplemental annuity will be reduced if employee 

receives a private pension from railroad employer based on employer contributions.

14. Tax rebate lump sum

Employee who has at least 10 years of railroad service and is not eligible for the vested dual benefit will receive a lump sum at retirement 

computed by summing for each year from 1951 through 1974 the product of the social security tax rate for the year times the excess of the 

employee's combined railroad and social security earnings for the year over (approximately) the maximum creditable for the year under the 

1937 Act. Survivors of employee may receive refund if employee dies before receiving it.

15. Separation/severance lump sum 

Lump sum, equal to tier 2 payroll taxes deducted from separation or severance payments, will be paid at retirement to employees with at 

least 10 years of service or 5 years of service after 1995 to the extent that separation or severance payments did not yield additional tier 2 

service credits.
31

16. Cost-of-living increases (annually, effective with January 1 payments)

Tier 1: Same as social security increases.

Tier 2: 32.5% of social security increases.

Vested dual benefits: Frozen at the 1974 level, except that social security cost-of-living increases effective between 12-31-1974 and the 

earlier of January 1, 1982 and the annuity beginning date are included in the benefit computation.

Supplemental annuity: None.

SPOUSE BENEFITS

17. Eligibility

A. Unreduced annuity:

1. Spouse retiring at age 60 (or any age with a child in care), if (a) employee attained 60/30 eligibility before 7-1-1984 and retired 

at age 60 or later, (b) employee attained 60/30 eligibility after 6-30-1984 and retired at age 62 or later, (c) employee has 30 or 

more years of service and retired after 12-31-2001 at age 60 or later, or (d) spouse retired after 12-31-2001, and employee 

retired from disability, has 30 or more years of service and is age 60 or over.

2. Spouse retiring at social security normal retirement age (or any age with a child in care), if (a) employee retired before 1-1-

1975 and is age 65 or over, (b) employee retired after 12-31-1974 and is age 62 or over, or (c) employee retired after 6-30-

1974, has 30 or more years of service and is age 60 or over.

B. Reduced annuity:

1. Spouse retiring at age 60 if employee attained 60/30 eligibility after 6-30-1984 and retired with an age annuity before 1-1-2002 

before attaining age 62.

2. Spouse retiring at age 62, if employee has less than 30 years of service, is retired, and has attained age 62. Age reduction is 

1/144 for each of the first 36 months spouse is under social security retirement age and 1/240 for each month in excess of 36 

that spouse is under retirement age. (Reduction for age in excess of 36 months applies to tier 1, but not tier 2, if employee had 

any service before 8-12-1983.)

18. Work restrictions

Same as employee; in addition, spouse is not paid for any month employee annuity is not payable by virtue of work restrictions, and spouse 

is reduced $1 for each $2 of employee's earnings for last non-railroad employer preceding employee's retirement (see item 7).

19. Annuity computation

Tier 1: One-half of social security benefit based on employee's combined railroad and social security earnings. See item 17 for 

computation of spouse tier 1 in cases where employee is receiving a reduced 60/30 benefit. If spouse is entitled to a social security 

benefit, tier 1 is reduced by the amount of the benefit, but not below 0. If spouse is entitled to employee annuity or a public service 

pension, certain additional restrictions apply.

Tier 2: 45% of employee's tier 2 benefit. Spouse receives additional benefit if spouse is also an employee annuitant and either the 

employee or spouse has railroad service prior to 1975.

20. Vested dual benefit

A spouse receiving a vested dual benefit on August 13, 1981 will continue to receive a benefit (adjusted as described in item 12). No 

vested dual benefits will be awarded after that date.
32

21. Divorced spouse, partitioned spouse and partitioned divorced spouse

A divorced spouse is entitled to a tier 1 benefit if the employee is retired, the employee and divorced spouse have been married for at least 

10 consecutive years and have both attained age 62, and the divorced spouse is unmarried. If the employee is not retired, but has sufficient 

railroad service to otherwise be eligible for an annuity, the divorced spouse can receive a tier 1 benefit if the above conditions are met and 

the parties have been divorced for a period of not less than 2 years, and the employee is fully insured under the Social Security Act using 

combined railroad and social security earnings.

If the employee is retired, a court ordered partition of tier 2, supplemental annuity, vested dual benefit or minimum guarantee amounts (see 

item 42) is payable with the employee’s monthly annuity reduced by the amount of the partition payment. If the employee is not retired, a 

court ordered partition of tier 2 or vested dual benefit payments is payable if (1) the employee has 10 years of service or 5 years of service 

after 1995, and (2) both the employee and spouse or former spouse have attained age 62. 

22. Cost-of-living increases for spouses

Each tier is subject to same percentage increase as corresponding tier of employee benefit.

SURVIVOR AND DEATH BENEFITS

23. Employee requirement for survivor benefits

All benefits except residual lump sum require deceased employee to have 10 years of railroad service or 5 years of service after 1995 and a 

current connection. If employee does not meet above conditions, his or her earnings record is transferred to social security, which pays any 

survivor benefits.

24. Aged widow's and widower's eligibility

A widow or widower must be age 60 and unremarried. Those age 60-61 are deemed age 62 in computing the benefit. The age reduction 

for each month of age under social security retirement age is 28.5% divided by the number of months from age 60 to social security 

retirement age.

25. Disabled widow's and widower's eligibility

A widow or widower must be at least age 50 and under age 60, unremarried, and totally and permanently disabled if disability occurs 

within 7 years of employee's death or within 7 years after widowed mother's or father's status terminated. Age reduction is 28.5%. Benefit 

may not begin earlier than the later of (1) the first day of the sixth month following the date disability begins and (2) the first day of the 

twelfth month before the month in which the application is filed.

26. Widowed mother's and father's eligibility

Unremarried surviving spouse of a deceased employee who is under social security retirement age and who at the time of filing an 

application has in his or her care a minor or disabled child of the deceased employee.

27. Divorced widow(er)'s, remarried widow(er)'s eligibility, partitioned surviving spouse and partitioned surviving divorced spouse

The following are eligible for a tier 1 benefit.

A. Divorced widow(er) - must (1) have been married to employee at least 10 years, be unmarried or remarried after age 60 (after age 

50 and disability onset if disabled), and have attained age 60 or age 50 if disabled, or (2) be unmarried at any age with a child of the 

employee in care. 

B. Remarried widow(er) - must have remarried after age 60 (after age 50 and disability onset if disabled), or the remarriage must have 

ended. Widow(er) must have attained age 60, be between 50 and 59 and disabled or be any age with a child in care.

Benefits for divorced aged widow(er)s and remarried aged widow(er)s are reduced for the full number of months under social security 

retirement age.
33

Where court ordered partition of tier 2, supplemental annuity and vested dual benefit payments are in effect at the time of the employee’s 

death, such payments will continue after the employee’s death unless the court order requires termination upon the employee’s death. 

Where the employee dies before partition payments are initiated, and the employee acquired 120 months of railroad service, or 60 months 

of service after 1995, such payments may be made when both the surviving spouse/divorced spouse, and the employee if he or she had 

survived, would be 62.

28. Child's eligibility

A child of a deceased employee must be under 18 or under 19 and a full-time elementary or secondary school student. Unmarried children 

continuously disabled since before age 22 are also eligible, regardless of age.

29. Parent's eligibility

A parent of a deceased employee who has attained age 60 and received at least one-half of his or her support from the employee will be 

eligible for an annuity. If the employee died leaving a widow, widower or child who is or might become eligible in the future, the parent 

will be eligible for a tier 1 benefit only. In certain instances, a remarried parent of a deceased employee will be eligible for a tier 1 benefit.

30. Work restrictions

Annuity not payable for any month in which survivor engages in railroad employment. Entire benefit subject to social security work 

restrictions.

31. Annuity computation

Tier 1: Amount payable to survivor under Social Security Act, based on the deceased employee's combined railroad and social security 

earnings after 12-31-1936, less the amount of any social security benefit received. Additional restrictions exist for a widow or 

widower who also receives an annuity as a railroad employee or who receives a public service pension.

Tier 2: Widow or widower - 50% of employee tier 2 benefit

Parent - 35% of employee tier 2 benefit

Children - 15% of employee tier 2 benefit for each child

The total family tier 2 benefit has a minimum of 35% and a maximum of 80% of the employee's tier 2 benefit (a maximum

of 130% is used for the purpose of calculating the widow(er) intitial minimum amount).

For a widow or widower an “initial minimum amount” based on the two-tier annuity amount that would have been payable to the railroad 

employee at the time the widow(er)’s annuity is awarded is computed with a widow(er)’s tier 2 amount equal to 100 percent of the 

employee’s tier 2 amount. Widow(er)s’ annuities computed on the basis of the initial minimum amount are not adjusted for annual cost-ofliving increases until the total annuity amount is exceeded by the annuity amount the widow(er) would have been paid under prior law (tier 

2 amount equal to 50 percent of the employee’s tier 2 amount), with all interim cost-of-living increases otherwise payable.

For an aged widow or widower, the total benefit exclusive of any vested dual benefit may not be less than amount received as spouse in 

month before employee's death.

All percentages are before deductions for work or entitlement to social security benefit or railroad retirement employee annuity.

32. Vested dual benefit for widow or widower

A widow or widower receiving a vested dual benefit on August 13, 1981 will continue to receive a benefit (adjusted as described in item 

12). No vested dual benefits will be awarded after that date.
34

33. Insurance lump sum

Payable if employee leaves no survivor eligible for monthly benefits in the month of his or her death.

A. If employee had 10 years of service before 1-1-1975, the benefit is 10 times the basic amount. The basic amount is 52.4% of the 

first $75 of average monthly remuneration (AMR), plus 12.8% of the remainder, increased by 1% for each year before 1975 with 

earnings of $200 or more. The AMR is based on combined railroad and social security earnings before 1975 and after 1936.

B. If employee had less than 10 years of service as of 12-31-1974, the amount will be the amount social security would have paid 

(currently $255). This amount will only be paid to a widow or widower living with the employee at the time of the employee's 

death.

34. Residual lump sum death benefit

Payable when it appears no further benefits will derive from deceased employee except possibly to a widow, widower or parent at a future 

date. In this case, survivor must waive the right to all future benefits based on the deceased employee's railroad service. The amount 

payable is the sum of 4% of taxable railroad earnings from 1-1-1937 to 12-31-1946, 7% from 1-1-1947 to 12-31-1958, 7-1/2% from 

1-1-1959 to 12-31-1961, 8% from 1-1-1962 to 12-31-1965, 8.1% from 1-1-1966 to 12-31-1966, 8.65% from 1-1-1967 to 12-31-1967, 8.8% 

from 1-1-1968 to 12-31-1968, 9.45% from 1-1-1969 to 12-31-1970, 9.85% from 1-1-1971 to 12-31-1972, 10.1% from 1-1-1973 to 

9-30-1973, 5.35% from 10-1-1973 to 12-31-1973, and 5.45% from 1-1-1974 to 12-31-1974. Railroad earnings after 1974 are not taken 

into account. The amount actually paid is reduced by the amount of benefits paid deriving from the deceased employee.

35. Cost-of-living increases for survivors

Each tier is subject to same percentage increase as corresponding tier of employee benefit.

FINANCING, INVESTMENTS AND TAXATION OF BENEFITS

36. Employee and employer payroll taxes

Employees and employers contribute at the prevailing social security rate up to the tier 1 earnings limit. In addition, employees and 

employers pay a tier 2 tax up to the tier 2 earnings limit. Tier 2 taxes on both employers and employees are based on the ratio of certain 

asset balances to the sum of benefits and administrative expenses (the average account benefits ratio). 

At the end of each fiscal year (September 30), an Account Benefits Ratio (ABR) is calculated by dividing the fair market value of the assets 

in the RR Account and the NRRIT (and for years before 2002, the SSEB Account) as of the close of such fiscal year by the total benefits 

and administrative expenses paid from the RR Account and the NRRIT during such fiscal year. The Average Account Benefits Ratio 

(AABR), with respect to any calendar year, is then calculated as 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.

 AABR Tier 2 tax rate 

At least But less than Employer Employee

2.5 22.1 4.9

2.5 3.0 18.1 4.9

3.0 3.5 15.1 4.9

3.5 4.0 14.1 4.9

4.0 6.1 13.1 4.9

6.1 6.5 12.6 4.4

6.5 7.0 12.1 3.9

7.0 7.5 11.6 3.4

7.5 8.0 11.1 2.9

8.0 8.5 10.1 1.9

8.5 9.0 9.1 0.9

9.0 8.2 0.0

Contributions to 401(k) deferred compensation plans and the value of employer-paid premiums for group term life insurance coverage in 

excess of $50,000 are included in railroad earnings for payroll tax purposes.
35

37. Financial interchange

Railroad retirement system pays to social security system the taxes social security would have collected and receives the additional amount 

of benefits and administrative expenses social security would have paid if railroad employment had been covered under social security. 

The net difference (including interest) is transferred in the June after the fiscal year for which the transfer is made.

The Railroad Retirement Board estimates the amount and direction of the financial interchange transfer that would be made for each month 

if transfers were on a current monthly basis. If this estimate favors the railroad retirement system, Treasury advances the amount with 

interest to the Railroad Retirement Account, as a loan from the general fund, by the middle of the succeeding month. Within 10 days after 

receipt of the annual financial interchange for a fiscal year, the RRB must repay the amount, with interest, advanced during the fiscal year.

38. Investments

Amounts in the Railroad Retirement Account and in the Social Security Equivalent Benefit Account not needed to pay current benefits and 

administrative expenses are invested by the National Railroad Retirement Investment Trust, whose Board of seven trustees is empowered 

to invest Trust assets in non-governmental assets, such as equities and debt, as well as in governmental securities. The Trust transfers

funds back to the Railroad Retirement Account as needed for the payment of benefits.

39. Financing of vested dual benefits

General revenue appropriations finance all vested dual benefit payments since September 1981. Beginning October 1, 1981, each annual 

appropriation is placed in the Dual Benefits Payments Account. Total benefits paid in any fiscal year (starting with 1982) may not exceed 

the total available in the account. The account may borrow at the end of a fiscal year the amount that the Railroad Retirement Board 

estimates will be necessary to pay vested dual benefits for the first month of the next fiscal year.

40. Taxability of benefits

The portion of tier 1 benefits equivalent to social security benefits is taxed under the same rules as are social security benefits. Tier 1 

benefits in excess of social security equivalent benefits, tier 2 benefits, vested dual benefits, and supplemental annuities are taxed under the 

rules by which private pensions are taxed. 

Revenues from taxes on social security equivalent benefits are transferred to the social security system through the financial interchange. 

Revenues from taxes on tier 1 benefits in excess of social security equivalent benefits and tier 2 benefits are transferred to the Railroad 

Retirement Account. Revenues from taxes on vested dual benefits are transferred to the Dual Benefits Payments Account.

MISCELLANEOUS PROVISIONS

41. Benefit preservation

Each year the Railroad Retirement Board must report to the President and Congress the results of a five-year projection of anticipated 

revenues to and payments from the Railroad Retirement Account. If the results show that the funds in the account will be insufficient to 

pay full benefits at any time during the five-year period, the report must indicate (1) the first fiscal year in which benefits would have to be 

reduced because of insufficient funds in the absence of any changes, and (2) the amount of adjustments necessary to preserve financial 

solvency. Within 180 days after publication of this report, representatives of railroad labor and management are obligated to submit 

proposals designed to preserve the fund's solvency. The Railroad Retirement Board will publish regulations necessary to provide a 

constant level of benefits at the maximum level possible and to insure that no individual receives less than what he or she would have had 

all his earnings been covered under social security. The Railroad Retirement Board's regulations will take effect beginning with the first 

year in which benefit reductions will be necessary and continue until legislative action supersedes them.

42. Minimum annuity

The overall minimum guaranty for employees and dependents is 100% of the amount, or the additional amount, the family would receive 

under the Social Security Act if the employee's railroad earnings after 1936 were credited as social security earnings.
36

43. Automatic benefit eligibility adjustments

A liberalization of entitlement provisions enacted for title II of the Social Security Act will be applied to provide entitlement to a Tier 1

benefit under the Railroad Retirement Act.

44. Transfer of credits

Transfer of railroad retirement credits is made to social security if an employee had less than 10 years of railroad service and less than 5 

years of service after 1995 or, in the case of a survivor, if the employee lacked a current connection.

DEFINITIONS

The meanings of terms used in the outline are defined below:

Railroad earnings - earnings derived from covered railroad employment, up to the maximums specified in item 9.

Social security earnings - earnings derived from employment covered under the Social Security Act (excludes railroad earnings), up to 

the maximums allowed.

Current connection - generally defined as having at least 12 months of railroad service in the 30 months preceding death or retirement. 

An employee whose last 12 months of railroad service occurred prior to the 30 months before retirement or death may maintain a 

current connection if the employee did not perform any regular employment between the end of the 30 month period containing the last 

12 months of railroad service and the month of retirement or death. For purposes of the supplemental annuity or survivors' benefits, an 

employee who was terminated involuntarily and without fault on or after October 1, 1975, after 25 years of service and did not 

thereafter decline an offer of employment in the same class or craft in the railroad industry is deemed to have a current connection. 

Fully insured - insured for retirement at age 62 under social security; does not necessarily imply an insured status for disability benefits 

or for survivor benefits for death before age 62.

Social security benefit - when used in describing the computation of the vested dual benefit, the term "social security benefit" means a 

primary insurance amount computed by using the social security formula in effect in 1974 and the specified earnings; it does not imply 

an actual benefit.

Social security retirement age - the age at which an individual may receive an unreduced benefit at retirement under the Social Security 

Act, as follows:

Year of attainment

of early retirement age 

(62 for employees and spouses, Retirement age

60 for widows and widowers) (age for unreduced benefit)

1999 or earlier 65 years, 0 months

2000 65 years, 2 months

2001 65 years, 4 months

2002 65 years, 6 months

2003 65 years, 8 months

2004 65 years, 10 months

2005-2016 66 years, 0 months

2017 66 years, 2 months

2018 66 years, 4 months

2019 66 years, 6 months

2020 66 years, 8 months

2021 66 years, 10 months

2022 or later 67 years, 0 months
37

TECHNICAL SUPPLEMENT

GENERAL METHODOLOGY AND ASSUMPTIONS

1. Approach. The 25th valuation presents results under three different employment assumptions. 

The same set of earnings inflation, price inflation, and interest rate assumptions was used with 

each of the three employment assumptions. This set of assumptions is discussed in Section V 

and listed in Table 1 of the valuation report.

A projection of the progress of the railroad retirement fund through 2085 is shown under each of 

the three employment assumptions. All the projections are based on an open group (that is, they 

include future entrants). The calculations were arranged so that closed-group valuations, limited 

to former and present employees, could be obtained as a by-product. A balance sheet deriving 

actuarial surplus or deficiency is also shown.

2. Basic data. All data concerning current beneficiaries were derived from "universe" files (files

including all beneficiaries as of December 31, 2010). These files included information needed 

to project benefits for current beneficiaries. Information needed to derive exposures and 

terminations for mortality and remarriage studies was obtained from similar universe files

created at an earlier date.

Active and inactive census data and data needed to study the withdrawal, mortality, and age and 

disability retirement experience of active employees were also compiled from universe files.

3. Service tables. For the projections of employees in active service and new entrants, a service 

month table was prepared.

Five sets of withdrawal rates were used with the differentiation made by attained age. Four sets 

of rates for disability retirement and two sets of rates for age retirement were used, with the 

differentiation made by completed years of service. Rates of death in active service are 

aggregate.

4. Actuarial assumptions.

Mortality after age retirement. Mortality studies for nondisability retirements covering the 

period 2006-2009 showed that the pattern of improved mortality at the younger ages found in 

the 2003-2006 experience continued. Based on the thinning of margin and the degree of fit by 

attained age, a new table, the 2010 RRB Annuitants Mortality Table, was constructed. The 

experience period for the mortality studies is very close to the valuation date, ending only one 

year prior to the date. The final rates were obtained by adding a 6% margin, which provides for 

near-term mortality improvement. Longer-term mortality improvement for those who have not 

yet retired is provided for by using an additional 1-year rateback in age.

Mortality after disability retirement. The overall ratio of actual to expected deaths after 

disability retirement based on the 24th valuation standard was 99.9% and 97.5% for annuitants 

with and without disability freeze, respectively. Based on the improvement in mortality and the 
38

degree of fit by five-year age group, two new tables, the 2010 RRB Disabled Mortality Table 

for Annuitants with Disability Freeze and the 2010 RRB Disabled Mortality Table for 

Annuitants without Disability Freeze, were constructed. The experience period on which the 

tables were based was 2006-2009. The final rates were obtained by adding a 6% margin, which 

provides for near-term mortality improvement. Long-term mortality improvement for those who 

have not yet retired is provided for by using a 1-year rateback in age. 

Mortality of employees in active service. Mortality studies for active employees showed an 

overall ratio of actual to expected deaths of 90.8%. Based on the recent improvement in the 

mortality experience, a new table, the 2006 Active Service Mortality Table, was constructed. 

Because of the relatively low rates of active service mortality, the relatively small impact on the 

valuation results, and the lack of persistent improvement in active service mortality, we did not 

provide a margin for active service mortality improvement.

Total termination for spouses. Total termination rates are used in projecting future tier 1 and 

tier 2 benefits for spouses receiving these benefits on the valuation date. Spouse benefits 

terminate at either the spouse's or the employee's death. A spouse receiving benefits at the time 

of the employee's death would begin to receive survivor benefits if the employee maintained a 

current connection.

The overall ratio of actual terminations to those expected on the basis of the 24th valuation 

standard was 101.1%. Based on the improvement in spouse termination since the 2003-2006

period, a new table, the 2010 RRB Spouse Total Termination Table, was constructed. The final 

rates were obtained by adding a 6% margin for future improvement in spouse termination. 

Probability of a retired employee having an eligible spouse. Projected tier 1 and tier 2 benefits 

for spouses of active employees and future entrants were determined by applying factors to the 

projected employee tier 1 and tier 2 benefits, respectively. These factors, shown in Table S-6, 

reflect the age-by-age probability that an employee annuitant has a spouse receiving benefits. 

Although the overall ratio of the actual number of spouses on December 31, 2009, to the 

expected number based on the 24th valuation standard was 99.9% and 102.0%, for employees 

with fewer than 30 years of service and employees with 30 or more years of service, 

respectively, it has been past practice to update this table for each new valuation.

Mortality of widow annuitants. The ratio of actual to expected deaths for widow annuitants was 

106.6% based on the 24th valuation standard, the 1995 RRB Mortality Table for Widows. Since 

the current standard provides adequate margin for near-term mortality improvement, both 

overall and at most ages, the 24th valuation standard was retained. A one-year rateback in age is 

used to provide for longer-term mortality improvement for widows coming from future 

employee deaths.

Remarriage of widows. The overall ratio of actual to expected remarriages on the basis of the 

24th valuation standard, the 1997 RRB Remarriage Table, was 95.1%. Based on the degree of 

fit, relatively small number of remarriages, and relatively small impact of a change in 

remarriage rates on the valuation results, the 24th valuation standard was retained.
39

Total termination for disabled children. The overall ratio of actual terminations to those 

expected on the basis of the 24th valuation standard, the 2004 RRB Total Termination Table for 

Disabled Children, was 113.7%. Based on the relatively small number of terminations, the 

accompanying higher volatility of termination rates, the fact that most terminations are due to 

death and death rates have been declining for other categories of beneficiaries, and the adequate 

margin in the current standard, the 24th valuation standard was retained.

Withdrawal from the railroad industry. The overall ratio of actual final withdrawals 

(withdrawals net of re-entrants) to those expected on the basis of the 24th valuation standard was 

82.0%. Based on the relatively stable overall withdrawal rates in the last two studies, a new 

table was constructed.

Age retirement. A normal age annuity is payable at social security normal retirement age 

(SSNRA) with 10 years of total service or 5 years of service after 1995. For employees with 30 

or more years of service, an unreduced benefit is payable to those who retire after the attainment 

of age 60. Benefits are reduced for employees who retire from age 62 to SSNRA with 5-29 

years of service. A supplemental annuity is payable to employees with service before October, 

1981, who have attained age 60 with 30 or more years of service, or attained age 65 with 25 or 

more years of service.

A comparison between the rates of age retirements assumed in the 24th and 25th valuations and 

the crude rates during calendar years 2007-2009 is shown in Table S-28. For employees with 5-

29 years of service, the assumed 25th valuation rates are close to the 2007-2009 crude rates at 

ages under 69 and constant for ages over 68. For employees with 30 or more years of service, 

the assumed 25thvaluation rates are close to the crude rates up to age 70 and constant for ages 

over age 70.

Disability retirement. An employee is eligible for disability retirement based on total and 

permanent disability at any age with at least 10 years of service or 5 years of service after 1995. 

Eligibility for occupational disability requires (i) permanent disability for an employee's regular 

railroad occupation, (ii) attainment of age 60 with 10 years of service or any age with 20 years 

of service, and (iii) a current connection.

For employees with 10-19 years of service, the ratio of actual disability retirements during 

2007-2009 to those expected based on the 24th valuation standard was 64.6%. The ratio of 

actual to expected disability retirements for employees with 20-24 years of service was 68.2%, 

and for employees with 25-29 years of service it was 83.1%. For employees with 30 or more 

years of service the ratio of actual to expected disability retirements was 82.9%. The overall 

ratio of actual to expected disability retirements for all employees was 77.8%. Because of the 

recent volatility of experience, current experience was combined with that of the period 2004-

2006, and a new table of rates of disability retirement was constructed based on the combined 

2004-2009 experience.

Disability retirements are not projected for participants with 5-9 years of service because the 

benefits are limited to what social security would pay and are reimbursed through the financial 
40

interchange. These employees become eligible for tier 2 benefits at age 62 and are treated as 

vested withdrawals in our projections.

The ratio of actual to expected disability retirements qualifying for a disability freeze based on 

the 24th valuation standard was 100.2% and 103.0% for employees with 10-19 years of service 

and 20 or more years of service, respectively. A new table of percentages eligible for a 

disability freeze was constructed for the 25th valuation. In the current experience, the disability 

freeze rates for the 20-24 years of service group, the 25-29 years of service group, and the 30 or 

more years of service group are close, and there is a single set of rates for employees with 20 or 

more years of service. These rates are shown in Table S-11.

Other assumptions. Assumptions involving (1) service months and salary scales, (2) family 

composition, and (3) the age distribution of new entrants are shown in Tables S-13, S-14, and

S-42, respectively.

Investment and administrative expenses. For investment and administrative expenses, best 

estimates are used in the initial projection years. Thereafter, investment expenses are assumed 

to equal 0.3% (30 basis points) of the prior year end combined NRRIT and RR Account fund 

balance. Administrative expenses are assumed to increase at the same rate as the wage increase 

assumption shown in Table 1 of the valuation report, subject to the following limits. 

Administrative expenses for the RR Account are limited to 2% of benefits paid from the RR 

Account and NRRIT. Administrative expenses for the SSEB Account are limited to 0.7% of 

benefits paid from the SSEB Account.

 

A complete list of the assumptions and the tables that present them follows.
41

List of assumptions and tables used in the 25th valuation

Item Assumption or table

A. Mortality and total termination rates

1. After age retirement

(a) Current retirements Table S-1

(b) Future retirements Table S-1 with a 1-year rateback in age

2. After disability retirement

(a) with Disability Freeze

(i) Current retirements Table S-2

(ii) Future retirements Table S-2 with a 1-year rateback in age

(b) without Disability Freeze

(i) Current retirements Table S-3

(ii) Future retirements Table S-3 with a 1-year rateback in age

3. Employees in active service Table S-4

4. Spouses Table S-5

5. Nondisabled widows

(a) Widows of deceased employees Table S-7

(b) Widows coming from future Table S-7 with a 1-year rateback in age

 employee deaths

6. Disabled widows Table S-2

7. Children under age 18 Disregarded

8. Disabled children age 18 and over Table S-9

B. Remarriage rates for widows Table S-8

C. Retirement rates

1. Age retirement Table S-10

2. Disability (with "disability Table S-11

freeze" percentages)

D. Withdrawal rates Table S-12

E. Other assumptions

1. Probability of a retired employee Table S-6

having an eligible spouse

2. Economic assumptions Table 1 of valuation report
42

3. Service months and salary scales Table S-13

4. Family composition Table S-14

5. Age distribution of future entrants Table S-42
 43

Table S-1. 2010 RRB Annuitants Mortality Table

Agea 1,000qx Agea 1,000qx

60 5.89 95 259.05

61 6.65 96 282.16

62 7.51 97 304.43

63 8.48 98 323.79

64 9.56 99 340.33

65 10.78 100 354.14

66 12.14 101 365.25

67 13.66 102 373.70

68 15.37 103 379.47

69 17.27 104 382.53

70 19.40 105 384.21

71 21.77 106 385.88

72 24.42 107 387.55

73 27.36 108 389.22

74 30.64 109 390.88

75 34.28 110 1,000.00

76 38.33

77 42.81

78 47.78

79 53.27

80 59.34

81 66.04

82 73.42

83 81.54

84 90.46

85 100.24

86 110.95

87 122.64

88 135.38

89 149.25

90 164.29

91 180.57

92 198.14

93 217.06

94 237.35

a

 Age nearest birthday.
 44

Table S-2. 2010 RRB Disabled Mortality Table for Annuitants with Disability Freezea

Ageb 1,000qx Ageb 1,000qx Ageb 1,000qx

30 14.96 65 29.66 100 363.62

31 15.11 66 31.60 101 372.80

32 15.27 67 33.83 102 380.06

33 15.43 68 36.41 103 385.23

34 15.59 69 39.37 104 388.11

35 15.75 70 42.79 105 389.77

36 15.91 71 46.49 106 391.43

37 16.08 72 50.50 107 393.08

38 16.25 73 54.86 108 394.73

39 16.42 74 59.57 109 396.38

40 16.59 75 64.67 110 1,000.00

41 16.77 76 70.19

42 16.95 77 76.17

43 17.14 78 82.62

44 17.32 79 89.60

45 17.52 80 97.13

46 17.71 81 105.26

47 17.91 82 114.01

48 18.12 83 123.44

49 18.33 84 133.59

50 18.55 85 144.49

51 18.78 86 156.19

52 19.03 87 168.74

53 19.33 88 182.18

54 19.68 89 196.54

55 20.08 90 211.87

56 20.54 91 228.10

57 21.07 92 244.93

58 21.69 93 262.01

59 22.40 94 279.00

60 23.22 95 295.58

61 24.17 96 311.48

62 25.26 97 326.45

63 26.52 98 340.26

64 27.98 99 352.72

a

 Qualified under social security definition of disability.

b

 Age nearest birthday.
 45

Table S-3. 2010 RRB Disabled Mortality Table for Annuitants without Disability Freezea

Ageb 1,000qx Ageb 1,000qx Ageb 1,000qx

40 3.80 70 30.54 100 359.30

41 3.95 71 33.61 101 369.12

42 4.12 72 36.98 102 376.86

43 4.30 73 40.69 103 382.34

44 4.49 74 44.75 104 385.33

45 4.70 75 49.21 105 387.00

46 4.93 76 54.11 106 388.66

47 5.17 77 59.47 107 390.33

48 5.44 78 65.35 108 391.98

49 5.74 79 71.78 109 393.63

50 6.07 80 78.82 110 1,000.00

51 6.44 81 86.51

52 6.85 82 94.91

53 7.31 83 104.07

54 7.82 84 114.06

55 8.39 85 124.93

56 9.02 86 136.75

57 9.72 87 149.59

58 10.51 88 163.50

59 11.38 89 178.56

60 12.34 90 194.82

61 13.42 91 212.34

62 14.62 92 230.72

63 15.96 93 249.33

64 17.44 94 267.81

65 19.09 95 285.82

66 20.92 96 303.06

67 22.96 97 319.25

68 25.23 98 334.17

69 27.74 99 347.58

a

 Not qualified under social security definition of disability.

b

 Age nearest birthday.
 46

Table S-4. 2006 RRB Active Service Mortality Tablea

Ageb 1,000qx-1/2 Ageb 1,000qx-1/2

45 1.58 

46 1.66 

17 1.05 47 1.75 

18 1.05 48 1.85 

19 1.05 49 1.96 

20 1.05 50 2.09 

21 1.05 51 2.23 

22 1.05 52 2.39 

23 1.05 53 2.57 

24 1.05 54 2.77 

25 1.05 55 3.00 

26 1.05 56 3.26 

27 1.05 57 3.55 

28 1.05 58 3.87 

29 1.05 59 4.24 

30 1.05 60 4.65 

31 1.06 61 5.11 

32 1.08 62 5.62 

33 1.10 63 6.21 

34 1.12 64 6.86 

35 1.14 65 7.60 

36 1.16 66 8.42 

37 1.19 67 9.35 

38 1.22 68 10.40 

39 1.26 69 11.58 

40 1.30 70 12.90 

41 1.34 71 14.38 

42 1.39 72 16.06 

43 1.45 73 17.94 

44 1.51 74 20.05 

75 22.42 

a

 Deaths in active service are those of employees who last worked in the

 railroad industry in the year in which death occurred or in the preceding

 calendar year. The exposures correspond to this definition.

b

 Age attained in calendar year of exposure.
 47

Table S-5. 2010 RRB Spouse Total Terminationa Table

Ageb Ageb

60 21.27 95 361.09

61 22.95 96 380.99

62 24.79 97 400.52

63 26.78 98 419.64

64 28.96 99 438.34

65 31.34 100 456.60

66 33.93 101 474.41

67 36.76 102 491.76

68 39.84 103 508.64

69 43.21 104 525.04

70 46.90 105 540.96

71 50.92 106 556.39

72 55.32 107 571.34

73 60.12 108 585.81

74 65.38 109 599.79

75 71.12 110 1,000.00

76 77.41

77 84.28

78 91.78

79 99.99

80 108.96

81 118.76

82 129.45

83 141.11

84 153.83

85 167.68

86 182.75

87 199.11

88 216.86

89 236.08

90 256.83

91 278.20

92 299.35

93 320.24

94 340.83

a

 Mainly death of employee or death of spouse.

b

 Age nearest birthday.

t 000qx ,1 t 000qx ,1
48

Table S-6. Probability of a retired employee having a spouse eligible for railroad retirement benefits

Employees with Employees with

Agea of 30 or more less than 30

employee years of service years of service

59 and under 0.000 0.000

60 0.233 0.000

61 0.352 0.000

62 0.449 0.090

63 0.530 0.200

64 0.597 0.274

65 0.651 0.340

66 0.694 0.398

67 0.726 0.448

68 0.750 0.491

69 0.766 0.527

70 0.776 0.556

71 0.781 0.579

72 0.783 0.597

73 0.783 0.608

74 0.780 0.615

75 0.775 0.617

76 0.768 0.615

77 0.758 0.609

78 0.746 0.599

79 0.732 0.586

80 0.715 0.571

81 0.696 0.552

82 0.675 0.532

83 0.653 0.510

84 0.628 0.487

85 0.603 0.463

86 0.576 0.438

87 0.547 0.412

88 0.518 0.387

89 0.489 0.361

90 0.458 0.334

91 0.428 0.308

92 0.397 0.282

93 0.366 0.255

94 0.335 0.229

95 0.304 0.203

96 0.274 0.178

97 0.245 0.153

98 0.216 0.128

99 & over 0.189 0.104

a

 Age nearest birthday.
 49

Table S-7. 1995 RRB Mortality Table for Widows

Agea 1,000qx Agea 1,000qx Agea 1,000qx

20 0.23 55 5.42 90 128.50

21 0.25 56 5.93 91 140.66

22 0.27 57 6.49 92 153.98

23 0.30 58 7.11 93 168.56

24 0.33 59 7.78 94 184.52

25 0.36 60 8.52 95 201.99

26 0.39 61 9.32 96 221.00

27 0.43 62 10.21 97 241.15

28 0.47 63 11.17 98 261.92

29 0.52 64 12.23 99 282.85

30 0.56 65 13.39 100 303.44

31 0.62 66 14.66 101 323.26

32 0.68 67 16.04 102 341.87

33 0.74 68 17.56 103 358.88

34 0.81 69 19.23 104 373.89

35 0.89 70 21.05 105 386.55

36 0.97 71 23.04 106 396.55

37 1.06 72 25.22 107 403.60

38 1.16 73 27.61 108 407.43

39 1.27 74 30.22 109 407.86

40 1.39 75 33.08 110 1,000.00

41 1.53 76 36.21

42 1.67 77 39.64

43 1.83 78 43.40

44 2.00 79 47.51

45 2.19 80 52.00

46 2.40 81 56.93

47 2.63 82 62.32

48 2.88 83 68.22

49 3.15 84 74.67

50 3.45 85 81.74

51 3.77 86 89.48

52 4.13 87 97.96

53 4.52 88 107.23

54 4.95 89 117.38

a

 Age nearest birthday.
 50

Table S-8. 1997 RRB Remarriage Table

(Probabilities of remarriage)

Agea at for n equal to

widowhood [x] 0 1 2 3 4 Agea

 x

20 24.76 56.57 66.98 72.11 61.24 25 45.66

21 23.57 53.82 63.69 68.54 58.18 26 43.35

22 22.42 51.18 60.54 65.12 55.24 27 41.14

23 21.32 48.64 57.51 61.83 52.42 28 39.02

24 20.27 46.21 54.61 58.67 49.71 29 36.98

25 19.25 43.88 51.82 55.64 47.12 30 35.02

26 18.28 41.64 49.14 52.73 44.62 31 33.14

27 17.35 39.49 46.58 49.94 42.23 32 31.34

28 16.45 37.42 44.11 47.27 39.93 33 29.61

29 15.59 35.44 41.74 44.69 37.73 34 27.95

30 14.77 33.54 39.47 42.23 35.61 35 26.36

31 13.97 31.72 37.29 39.86 33.58 36 24.83

32 13.21 29.97 35.20 37.59 31.63 37 23.36

33 12.48 28.29 33.20 35.40 29.76 38 21.95

34 11.78 26.67 31.27 33.31 27.97 39 20.60

35 11.11 25.13 29.42 31.30 26.24 40 19.30

36 10.47 23.64 27.64 29.37 24.59 41 18.05

37 9.85 22.21 25.94 27.52 23.00 42 16.86

38 9.25 20.84 24.31 25.74 21.48 43 15.71

39 8.68 19.53 22.74 24.04 20.02 44 14.61

40 8.14 18.27 21.23 22.40 18.61 45 13.55

41 7.61 17.06 19.79 20.83 17.26 46 12.53

42 7.11 15.90 18.40 19.32 15.97 47 11.56

43 6.62 14.78 17.07 17.88 14.73 48 10.63

44 6.16 13.71 15.79 16.49 13.54 49 9.73

45 5.71 12.69 14.56 15.15 12.40 50 8.87

46 5.29 11.70 13.38 13.87 11.30 51 8.04

47 4.87 10.75 12.25 12.65 10.25 52 7.25

48 4.48 9.85 11.17 11.47 9.24 53 6.49

49 4.10 8.98 10.13 10.34 8.27 54 5.76

50 3.74 8.14 9.13 9.25 7.33 55 5.06

51 3.39 7.34 8.17 8.21 6.44 56 4.38

52 3.06 6.57 7.25 7.21 5.58 57 3.74

53 2.74 5.83 6.37 6.25 4.76 58 3.12

54 2.43 5.12 5.52 5.33 3.97 59 2.52

55 2.13 4.44 4.71 4.44 3.21 60 8.29

56 1.85 3.78 3.93 3.60 14.84 61 4.17

57 1.58 3.15 3.18 15.76 8.28 62 5.24

58 1.31 2.55 14.26 8.24 9.93 63 4.67

59 1.06 13.76 8.54 10.16 8.98 64 4.16

60 7.27 8.49 9.95 9.11 8.13 65 3.71

61 3.77 9.78 9.10 8.16 7.35 66 3.31

62 4.67 8.98 8.32 7.32 6.65 67 2.95

63 4.18 8.24 7.60 6.56 6.01 68 2.63

64 3.74 7.56 6.95 5.88 5.44 69 2.34

65 3.35 6.94 6.35 5.27 4.92 70 2.08

66 3.00 6.38 5.81 4.72 4.45 71 1.85

67 2.68 5.86 5.31 4.23 4.03 72 1.64

68 2.40 5.38 4.85 3.79 3.60 73 1.45

69 2.15 4.94 4.43 3.36 3.17 74 1.27

70 1.92 4.54 4.02 2.95 2.77 75 1.10

71 1.72 4.13 3.60 2.56 2.38 76 0.94

72 1.54 3.73 3.21 2.20 2.03 77 0.81

73 1.39 3.34 2.83 1.86 1.70 78 0.69

74 1.26 2.96 2.47 1.57 1.42 79 0.58

75 1.14 2.61 2.14 1.30 1.16 80 0.49

76 1.04 2.28 1.84 1.08 0.95 81 0.40

77 0.95 1.97 1.57 0.88 0.76 82 0.33

78 0.87 1.70 1.33 0.71 0.60 83 0.27

79 0.79 1.45 1.11 0.57 0.47 84 0.22

80 0.73 1.22 0.92 0.45 0.37 85 0.18

81 0.68 1.03 0.76 0.35 0.28 86 0.15

82 0.63 0.85 0.62 0.27 0.22 87 0.12

83 0.59 0.71 0.50 0.21 0.16 88 0.09

84 0.48 0.38 0.32 0.16 0.12 89 0.06

a

 Age nearest birthday.

m 1,000q ][ +nx

m 1,000qx
 51

Table S-9. 2004 RRB Total Termination Table for Disabled Children

Agea Agea Agea

50 16.97 85 142.28

51 17.85 86 152.12

52 18.79 87 162.66

18 21.92 53 19.79 88 173.96

19 21.83 54 20.87 89 186.07

20 21.54 55 22.03 90 199.04

21 21.06 56 23.27 91 212.94

22 20.39 57 24.59 92 227.83

23 19.53 58 26.01 93 243.79

24 18.50 59 27.54 94 260.90

25 17.30 60 29.17 95 279.22

26 15.95 61 30.92 96 298.86

27 14.45 62 32.79 97 319.90

28 13.19 63 34.80 98 342.44

29 12.14 64 36.96 99 366.60

30 11.30 65 39.26 100 379.29

31 10.65 66 41.73 101 384.08

32 10.17 67 44.38 102 386.52

33 9.85 68 47.22 103 387.90

34 9.68 69 50.26 104 389.28

35 9.63 70 53.52 105 390.66

36 9.70 71 57.01 106 392.03

37 9.88 72 60.75 107 393.39

38 10.14 73 64.76 108 394.76

39 10.47 74 69.05 109 396.12

40 10.86 75 73.65 110 1,000.00

41 11.30 76 78.58

42 11.77 77 83.87

43 12.27 78 89.53

44 12.81 79 95.60

45 13.39 80 102.10

46 14.01 81 109.06

47 14.68 82 116.53

48 15.39 83 124.53

49 16.15 84 133.10

a

 Age nearest birthday.

t 000qx ,1 t 000qx ,1 t 000qx ,1
52

Table S-10. Calendar year ratesa of immediateb age retirement

(Retirements per 1,000 exposed)

 Years of service 

Agec 5-29 30 & over

60 610

61 480

62 110 400

63 90 380

64 70 350

65 180 400

66 330 350

67 250 300

68 250 300

69 200 300

70 200 300

71 200 200

72 200 200

73 200 200

74 200 200

75 & over 200 200

a

 Technically probabilities.

b

 Immediate retirements are defined as those for which the calendar year of retirement

 is the same as, or the year following, the calendar year of last employment in the

 railroad industry.

c

 The age interval is from x-.5 to x+.5, except as indicated below:

 Interval for 

Age Years of service Exposure Retirements

60 30 or more 59.5-60.5 60-60.5

62 5-29 61.5-62.5 62-62.5
 53

Table S-11. Ratesa of immediateb disability retirement and of eligibility for disability freezec

Percent of retirements eligible

Calendar year rates per 1,000 exposed for disability freeze

10-19 years 20-24 years 25-29 years 30 or more 10-19 years 20 or more

Aged of service of service of service years of service of service years of service

Under 35 1.2 3.4 2.2 2.2 98.2% 39.3% 

35 1.3 3.5 2.3 2.3 98.2 39.5 

36 1.5 3.8 2.5 2.5 98.2 39.7 

37 1.6 4.3 2.8 2.8 98.2 39.9 

38 1.8 5.0 3.2 3.2 98.2 40.1 

39 2.0 5.9 3.8 3.8 98.2 40.3 

40 2.2 7.0 4.5 4.5 98.2 40.5 

41 2.4 8.3 5.4 5.4 98.2 40.7 

42 2.7 9.8 6.4 6.4 98.2 40.9 

43 3.1 11.4 7.4 7.4 98.2 41.1 

44 3.4 13.1 8.5 8.5 98.2 41.3 

45 3.9 14.8 9.8 9.8 98.2 41.5 

46 4.4 16.7 11.2 11.2 98.2 41.7 

47 4.9 18.7 12.6 12.6 98.2 41.9 

48 5.6 20.8 14.0 14.0 98.2 42.1 

49 6.3 23.1 15.4 15.4 98.2 42.6 

50 7.2 25.4 16.9 16.9 98.2 43.6 

51 8.2 28.0 18.4 18.4 98.2 45.7 

52 9.3 30.7 20.0 20.0 98.2 50.3 

53 10.6 33.5 21.6 21.6 98.2 60.0 

54 12.1 36.5 23.2 23.2 98.2 80.5 

55 13.8 39.8 24.8 24.8 98.2 93.4 

56 15.8 43.2 26.5 26.5 98.2 93.4 

57 18.0 46.8 28.2 28.2 98.2 93.4 

58 20.6 50.7 29.9 29.9 98.2 93.4 

59 23.6 54.8 31.7 31.7 98.2 93.4 

60 40.3 59.1 33.5 16.3 93.4 93.4 

61 47.0 63.7 35.4 12.8 93.4 93.4 

62 46.2 68.3 48.4 9.7 93.4 93.4 

63 45.4 67.7 47.8 7.0 93.4 93.4 

64 37.3 63.9 44.0 4.6 93.4 93.4 

65 16.3 42.9 23.0 2.6 93.4 93.4 

a

 Technically probabilities.

b

 Immediate retirements are defined as those for which the calendar year of retirement is the same as,

 or the year following, the calendar year of last employment in the railroad industry.

c

 Qualified under the social security definition of disability.

d

 Age attained in calendar year of exposure.
 54

Table S-12. Calendar year ratesa of final withdrawal

Years of Attained agec

serviceb Under 25 25-34 35-44 45-54 55 & over

0 0.186 0.144 0.177 0.210 0.245

1 0.143 0.105 0.112 0.116 0.135

2 0.088 0.069 0.068 0.068 0.077

3 0.063 0.052 0.046 0.045 0.057

4 0.050 0.045 0.037 0.037 0.050

5 0.043 0.040 0.033 0.034 0.045

6 0.039 0.036 0.031 0.031 0.040

7 0.036 0.032 0.028 0.028 0.036

8 0.033 0.028 0.026 0.025 0.032

9 0.030 0.025 0.024 0.023 0.029

10 0.028 0.022 0.022 0.021 0.025

11 0.025 0.020 0.020 0.019 0.023

12 0.023 0.019 0.019 0.017 0.020

13 0.020 0.017 0.017 0.015 0.018

14 0.018 0.016 0.016 0.014 0.016

15 0.016 0.015 0.015 0.013 0.014

16 0.014 0.013 0.013 0.011 0.012

17 0.013 0.012 0.012 0.010 0.011

18 0.011 0.011 0.011 0.009 0.009

19 0.011 0.011 0.011 0.008 0.008

20 0.010 0.010 0.010 0.007 0.007

21 0.009 0.009 0.009 0.007 0.006

22 0.008 0.008 0.008 0.006 0.005

23 0.007 0.007 0.007 0.005 0.004

24 0.006 0.006 0.006 0.005 0.004

25 0.006 0.006 0.006 0.004 0.003

26 0.005 0.005 0.005 0.004 0.003

27 0.004 0.004 0.004 0.003 0.002

28 0.004 0.004 0.004 0.003 0.002

29 0.003 0.003 0.003 0.002 0.001

30 & over 0.005 0.005 0.005 0.005 0.009

a

 Technically probabilities.

b

 Rounded up to nearest whole year.

c

 Age attained in calendar year of exposure.
 55

Table S-13. Service months and salary scales

Years Increase in average monthly salary

of Service from prior service level

servicea months Tier 1 Tier 2

0 6.6 

1 11.6 20.3% 19.6%

2 11.7 8.8% 7.7%

3 11.7 5.8% 4.9%

4 11.7 4.4% 3.7%

5 11.7 3.3% 2.7%

6 11.7 2.5% 2.0%

7 11.7 1.8% 1.4%

8 11.7 1.3% 1.0%

9 11.8 0.9% 0.6%

10 11.8 0.7% 0.4%

11 11.8 0.6% 0.3%

12 11.8 0.6% 0.3%

13 11.8 0.6% 0.3%

14 11.8 0.6% 0.3%

15 11.8 0.6% 0.3%

16 11.8 0.5% 0.3%

17 11.8 0.5% 0.3%

18 11.8 0.5% 0.3%

19 11.8 0.5% 0.3%

20 11.8 0.5% 0.3%

21 11.8 0.5% 0.3%

22 11.8 0.5% 0.3%

23 11.8 0.5% 0.3%

24 11.8 0.5% 0.3%

25 11.8 0.5% 0.3%

26 11.9 0.5% 0.3%

27 11.9 0.5% 0.3%

28 11.9 0.5% 0.3%

29 11.9 0.5% 0.3%

30 11.9 0.4% 0.3%

31 11.9 0.4% 0.3%

32 11.9 0.4% 0.2%

33 11.9 0.4% 0.2%

34 11.9 0.4% 0.2%

35 11.9 0.4% 0.2%

36 11.9 0.4% 0.2%

37 11.9 0.4% 0.2%

38 11.9 0.4% 0.2%

39 11.9 0.4% 0.2%

40 11.9 0.4% 0.2%

41 11.9 0.4% 0.2%

42 11.9 0.4% 0.2%

43 11.9 0.4% 0.2%

44 11.9 0.4% 0.2%

45 & over 11.9 0.4% 0.2%

a

 Rounded up to nearest whole year.
 56

Table S-14. Family characteristics of railroad employees assumed for the valuation of survivor benefits

Percent married

eligible child

Widow Widow Widow Youngest Youngest Youngest eligible child

Age of age age under child child child Minor Disabled

employeea Total 62 & over 60-61 age 60 under 16 age 16-17 disabled child child

Under 35 70.0 - - 70.0 57.5 - - 80.8 -

35 - 39 70.0 - - 70.0 57.5 2.8 - 87.7 1.9

40 - 44 70.0 - - 70.0 54.6 6.6 0.2 81.6 1.9

45 - 49 70.0 - - 70.0 28.7 9.5 0.5 53.2 1.9

50 - 54 70.0 1.6 0.8 67.6 15.1 5.2 1.1 26.7 1.9

55 - 59 70.0 3.7 3.0 63.3 5.2 2.0 1.3 10.4 1.9

60 - 64 70.0 18.2 15.4 36.4 2.3 0.8 0.7 4.8 1.9

65 - 69 70.0 51.6 7.6 10.8 0.6 0.3 0.2 1.7 1.6

70 - 74 70.0 63.8 2.1 4.1 0.3 0.1 0.1 0.8 1.4

75 - 79 67.1 64.6 0.8 1.7 0.2 - - 0.4 1.0

80 - 84 60.4 59.3 0.4 0.7 0.1 - - 0.2 0.8

85 - 89 50.7 50.2 0.1 0.4 0.1 - - 0.1 0.7

90 & over 33.4 33.0 0.1 0.3 - - - - 0.6

Average

Widow Widow Widow Youngest Youngest Youngest Youngest All All number

Age of age age under child child child child minor disabled of minor

employeea 62 & over 60-61 age 60 under 16 age 16-17 disabled under 16b children children childrenc

Under 35 - - 31 31 - - 4 6 - 2.3

35 - 39 - - 36 36 38 - 7 8 20 2.1

40 - 44 - - 41 40 42 44 9 10 20 1.9

45 - 49 - - 45 43 47 48 11 12 22 1.6

50 - 54 64 61 50 46 48 52 11 12 25 1.5

55 - 59 65 61 53 49 51 54 11 12 28 1.4

60 - 64 66 61 56 50 53 55 11 12 31 1.3

65 - 69 67 61 56 50 53 56 11 12 35 1.3

70 - 74 70 61 55 47 53 57 11 12 39 1.3

75 - 79 74 61 55 47 - - 11 12 43 1.3

80 - 84 78 61 54 47 - - 11 12 47 1.3

85 - 89 82 61 54 47 - - 11 12 51 1.3

90 & over 86 61 54 - - - - - 55 -

a

 Age nearest birthday at time of death.

b

 Includes families with widows under 60 and children under 16 only.

c

 Includes families with minor children only.

eligible child Average ages of children

Widow under 60 with

Percent with

Average ages of widows

Widow under 60 with
57

MORTALITY, REMARRIAGE, AND RELATED EXPERIENCE

1. Mortality of age annuitants. The mortality studies conducted for age annuitants are summarized 

in Tables S-15 through S-17. The tables show actual-to-expected ratios by age, sex, year and 

duration on the basis of the 24th and 25thvaluation standards.

2. Mortality after disability retirement. The mortality studies conducted for disability annuitants 

are summarized in Tables S-18 through S-20. The tables show select, ultimate and aggregate 

crude death rates, actual-to-expected ratios, and disability freeze percentages.

3. Mortality in active service. The mortality experience of active railroad employees is shown in 

Table S-21. The table provides crude rates and actual-to-expected ratios.

4. Total termination, mortality and probability of spouse. Tables S-22 and S-23 show, 

respectively, the total termination and mortality experience of spouse annuitants between 

anniversaries of retirement in 2006 and 2009. Spouse mortality is not used directly in any part 

of the valuation. Table S-24 shows, as of December 31, 2009, the number of retired employees 

and the number of eligible spouses of employees, by age of employee. The probabilities shown 

in Table S-6 are based on the results shown in Table S-24.

5. Mortality and remarriage of widows. Table S-25 shows ratios of actual deaths of widow 

annuitants to those expected on the basis of the 24thvaluation standard, which was retained for 

the 25th valuation. Table S-26 shows ratios of actual remarriages to those expected on the basis 

of the 1997 RRB Remarriage Table.

6. Termination of disabled children. Table S-27 shows ratios of actual terminations of disabled 

children annuitants to those expected on the basis of the 2004 RRB Total Termination Table for 

Disabled Children. 
 58

Table S-15. Mortality experience of railroad age annuitantsa between anniversaries of retirement in 2006 and 2009, by sex and type of retirement

Ageb

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95 & over

A. Both sexes combined

Exposed 596,210 85,716 93,378 91,595 107,931 115,384 68,880 26,648 6,678 

Actual deaths 34,703 707 1,360 2,379 5,118 8,828 8,847 5,360 2,104 

Age specific death rates (per thousand) 58.2 8.2 14.6 26.0 47.4 76.5 128.4 201.1 315.1 

Ratio of actual to expected deaths

1994 GAM malesc 104.6% 78.0% 81.3% 90.4% 102.2% 102.1% 112.8% 114.8% 117.6%

2007 RRBd 99.1% 98.9% 98.7% 96.8% 99.9% 96.7% 100.2% 100.5% 103.3%

2010 RRBe 106.0% 105.6% 106.3% 104.8% 108.2% 104.3% 107.0% 105.8% 105.5%

B. Male

Exposed 534,023 78,985 84,645 82,931 98,849 100,429 59,997 23,015 5,172 

Actual deaths 31,453 676 1,266 2,232 4,840 7,992 8,007 4,762 1,678 

Age specific death rates (per thousand) 58.9 8.6 15.0 26.9 49.0 79.6 133.5 206.9 324.4 

Ratio of actual to expected deaths

1994 GAM malesc 108.2% 81.1% 83.5% 93.6% 105.5% 106.4% 117.1% 118.2% 121.7%

2007 RRBd 102.7% 102.8% 101.4% 100.2% 103.1% 100.8% 104.1% 103.6% 106.8%

2010 RRBe 109.9% 109.7% 109.2% 108.6% 111.7% 108.7% 111.1% 109.0% 109.2%

C. Female

Exposed 62,187 6,731 8,733 8,664 9,082 14,955 8,883 3,633 1,506 

Actual deaths 3,250 31 94 147 278 836 840 598 426 

Age specific death rates (per thousand) 52.3 4.6 10.8 17.0 30.6 55.9 94.6 164.6 282.9 

Ratio of actual to expected deaths

1995 RRB Widowsf, 1-year rateback 101.3% 47.5% 73.3% 73.0% 83.2% 97.1% 107.9% 120.7% 124.0%

2007 RRBd 74.1% 54.4% 72.8% 63.4% 64.6% 69.7% 73.9% 81.6% 91.3%

2010 RRBe 79.0% 58.0% 78.4% 68.6% 70.0% 75.2% 78.9% 85.8% 93.1%

D. Immediateg

Exposed 382,090 63,253 58,074 54,095 62,508 72,511 47,875 19,190 4,584 

Actual deaths 22,795 470 806 1,379 2,987 5,576 6,220 3,894 1,463 

Age specific death rates (per thousand) 59.7 7.4 13.9 25.5 47.8 76.9 129.9 202.9 319.2 

Ratio of actual to expected deaths

2007 RRBd 99.3% 90.7% 94.4% 95.3% 100.4% 96.8% 101.1% 101.4% 104.9%

2010 RRBe 106.1% 96.7% 101.7% 103.2% 108.7% 104.4% 107.9% 106.7% 107.1%

E. Deferredg

Exposed 214,120 22,463 35,304 37,500 45,423 42,873 21,005 7,458 2,094 

Actual deaths 11,908 237 554 1,000 2,131 3,252 2,627 1,466 641 

Age specific death rates (per thousand) 55.6 10.6 15.7 26.7 46.9 75.9 125.1 196.6 306.1 

Ratio of actual to expected deaths

2007 RRBd 98.8% 120.8% 105.8% 98.9% 99.2% 96.6% 98.2% 98.4% 99.8%

2010 RRBe 105.8% 129.0% 114.0% 107.1% 107.4% 104.2% 104.9% 103.6% 101.8%

a

 Nondisability retirement.

b

 Age nearest birthday at the beginning of the year of exposure.

c

 1994 Group Annuity Mortality Static Table.

d

 2007 RRB Annuitants Mortality Table.

e

 2010 RRB Annuitants Mortality Table.

f

 1995 RRB Mortality Table for Widows.

g

 Immediate retirements are those which occur in the same calendar year as, or the calendar year following, the year of last employment

 in the railroad industry; all others are deferred retirements.
59

Table S-16. Mortality experience of railroad age annuitantsa between anniversaries of retirement in 2006 and 2009, by year

Ageb

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95 & over

1. 2006-2009 experience

Exposed 596,210 85,716 93,378 91,595 107,931 115,384 68,880 26,648 6,678

Actual deaths 34,703 707 1,360 2,379 5,118 8,828 8,847 5,360 2,104

Crude rate per 1,000 58.2 8.2 14.6 26.0 47.4 76.5 128.4 201.1 315.1

Ratio Act./Exp.c 99.1% 98.9% 98.7% 96.8% 99.9% 96.7% 100.2% 100.5% 103.3%

Ratio Act./Exp.d 106.0% 105.6% 106.3% 104.8% 108.2% 104.3% 107.0% 105.8% 105.5%

2. Crude rate per 1,000 for

 individual yearse

2006 - 2007 58.4 8.5 15.3 26.5 48.1 75.9 130.5 194.9 314.1

2007 - 2008 58.9 7.8 14.3 27.0 47.7 78.2 127.5 209.2 309.8

2008 - 2009 57.3 8.4 14.1 24.4 46.2 75.4 127.4 199.1 321.2

3. Ratio Act./Exp.c for

 individual yearse

2006 - 2007 99.4% 100.6% 102.4% 98.6% 101.0% 96.3% 101.6% 97.5% 102.8%

2007 - 2008 100.2% 94.1% 97.2% 100.7% 100.6% 98.8% 99.4% 104.5% 101.4%

2008 - 2009 97.8% 102.1% 96.8% 90.9% 97.6% 95.0% 99.6% 99.4% 105.6%

4. Ratio Act./Exp.d for

 individual yearse

2006 - 2007 106.3% 107.3% 110.3% 106.8% 109.4% 103.8% 108.5% 102.7% 105.0%

2007 - 2008 107.1% 100.4% 104.8% 109.0% 109.0% 106.6% 106.1% 110.1% 103.6%

2008 - 2009 104.5% 108.9% 104.2% 98.4% 105.8% 102.5% 106.3% 104.7% 107.8%

a

 Nondisability retirement.

b

 Age nearest birthday at the beginning of the year of exposure.

c

 Expected based on 2007 RRB Annuitants Mortality Table.

d

 Expected based on 2010 RRB Annuitants Mortality Table.

e

 Exposure is between anniversaries of retirement in indicated years.
60

Table S-17. Mortality ratios for railroad age annuitants on a select and ultimate

 basis between anniversaries of retirement in 2006 and 2009

Actual Crude rate Ratio Ratio

Duration Exposure deaths per 1,000 Act./Exp.a Act./Exp.b

0 27,659 219 7.9 96.9% 103.3% 

1 25,593 225 8.8 95.2 101.8 

2 23,577 236 10.0 95.5 102.3 

3 22,965 259 11.3 95.7 102.7 

4 26,514 313 11.8 90.8 97.6 

5 24,201 369 15.2 101.2 109.0 

6 22,601 404 17.9 101.6 109.7 

7 17,629 361 20.5 96.8 104.6 

8 17,913 408 22.8 96.6 104.5 

9 17,850 425 23.8 90.8 98.3 

10 & over 369,708 31,484 85.2 99.5 106.3 

All durations 596,210 34,703 58.2 99.1% 106.0% 

a

 Expected based on 2007 RRB Annuitants Mortality Table.

b

 Expected based on 2010 RRB Annuitants Mortality Table.
 61

Table S-18. Age specific death rates of railroad disability annuitants between anniversaries

 of retirement in 2006 and 2009, by age and duration

Age at retirementa

All ages Under 40 40-44 45-49 50-54 55-59 60 & over

Exposed

Duration 0 10,609 165 212 721 3,020 4,660 1,832 

1 11,130 157 235 990 3,410 4,651 1,688 

2 11,766 167 272 1,302 3,756 4,627 1,643 

3 12,509 180 361 1,675 4,099 4,616 1,579 

4 13,061 186 468 1,979 4,369 4,446 1,615 

Actual deaths

Duration 0 345 b b 12 79 171 72 

1 285 b b 19 84 120 56 

2 229 b b 29 53 83 60 

3 250 b b 25 71 101 50 

4 231 b b 29 63 87 43 

Crude rate per 1,000

Duration 0 32.5 b b 16.6 26.2 36.7 39.3 

1 25.6 b b 19.2 24.6 25.8 33.2 

2 19.5 b b 22.3 14.1 17.9 36.5 

3 20.0 b b 14.9 17.3 21.9 31.7 

4 17.7 b b 14.7 14.4 19.6 26.6 

Actual Crude rate

Agec Exposed deaths per 1,000

Under 50 2,702 25 9.3

50-54 14,645 175 11.9

55-59 33,949 552 16.3

60-64 42,707 952 22.3

65-69 36,014 1,114 30.9

70-74 26,883 1,325 49.3

75-79 23,051 1,741 75.5

80-84 16,604 1,843 111.0

85 & over 9,573 1,806 188.7

All ages 206,128 9,533 46.2

a

 Age nearest birthday. Those retiring prior to attainment of normal retirement age are included

 in 60 & over group.

b

 Fewer than 10 actual deaths.

c

 Age nearest birthday at the beginning of the year of exposure.

Ultimate section, durations 5 and over

Select section
Table S-19. Mortality experience of railroad disability annuitants between anniversaries of retirement in 2006 and 2009, by disability freeze status

All disability annuitants Annuitants with disability freeze Annuitants without disability freeze

Attained Actual Crude rate Actual Crude rate Ratio Ratio Actual Crude rate Ratio Ratio

agea Exposed deaths per 1,000 Exposed deaths per 1,000 Act./Expb Act./Expc Exposed deaths per 1,000 Act./Expd Act./Expe

Under 40 660 11 16.7 635 11 17.3 105.2% 108.2% 25 f f f f 

40-44 1,139 15 13.2 1,045 15 14.4 81.3 84.3 94 f f f f 

45-49 5,985 84 14.0 4,003 70 17.5 91.4 96.9 1,982 14 7.1 144.6% 129.8%

50-54 28,824 446 15.5 17,288 361 20.9 101.5 108.8 11,537 85 7.4 103.0 104.1 

55-59 56,633 1,057 18.7 38,240 866 22.6 102.0 106.4 18,393 191 10.4 95.0 105.3 

60-64 57,716 1,371 23.8 41,272 1,112 26.9 97.4 106.7 16,444 259 15.8 93.5 108.1 

65-69 38,131 1,174 30.8 27,015 916 33.9 88.0 100.8 11,116 258 23.2 88.0 101.6 

70-74 26,884 1,325 49.3 17,486 947 54.2 97.9 107.6 9,398 378 40.2 95.9 107.6 

75-79 23,051 1,741 75.5 13,239 1,097 82.9 103.4 108.7 9,812 644 65.6 99.9 108.6 

80-84 16,607 1,843 111.0 8,985 1,095 121.9 106.7 108.7 7,622 748 98.1 99.4 105.8 

85-89 6,972 1,134 162.7 4,292 738 171.9 104.4 103.9 2,680 396 147.8 97.6 102.1 

90-94 2,098 501 238.8 1,428 344 240.9 104.0 102.3 670 157 234.3 103.2 106.7 

95 & over 503 171 340.0 315 105 333.3 103.5 103.4 188 66 351.1 103.7 105.9 

All ages 265,202 10,873 41.0 175,243 7,677 43.8 99.9% 106.0% 89,959 3,196 35.5 97.5% 105.9%

a

 Age nearest birthday at the beginning of the year of exposure.

b

 Expected based on 2007 RRB Disabled Mortality Table for Annuitants with Disability Freeze.

c

 Expected based on 2010 RRB Disabled Mortality Table for Annuitants with Disability Freeze.

d

 Expected based on 2007 RRB Disabled Mortality Table for Annuitants without Disability Freeze.

e

 Expected based on 2010 RRB Disabled Mortality Table for Annuitants without Disability Freeze.

f

 Fewer than 10 actual deaths.
63

Table S-20. Percentages of railroad disability annuitants included in the 25th valuation mortality studies

 who would have qualified for a benefit under the social security disability standards

Period between anniversaries of retirement

2006-2007 2007-2008 2008-2009

Duration and type Actual Actual Actual

of freeze decision Exposures deaths Exposures deaths Exposures deaths

Duration 0

 Freeze allowed 79.6% 96.3% 81.3% 92.2% 80.8% 91.8% 

 Freeze disallowed 20.4 3.7 18.5 7.8 17.8 7.4 

 No freeze decision 0.1 0.0 0.2 0.0 1.4 0.8 

Duration 1

 Freeze allowed 77.9 92.8 79.2 93.0 81.1 89.8 

 Freeze disallowed 22.1 7.2 20.8 7.0 18.7 10.2 

 No freeze decision 0.0 0.0 0.1 0.0 0.2 0.0 

Duration 2

 Freeze allowed 77.6 88.0 77.6 82.1 78.9 94.7 

 Freeze disallowed 22.4 12.0 22.4 17.9 21.0 5.3 

 No freeze decision 0.0 0.0 0.0 0.0 0.1 0.0 

Duration 3

 Freeze allowed 77.6 86.5 77.6 86.8 77.6 90.0 

 Freeze disallowed 22.4 13.5 22.4 13.2 22.4 10.0 

 No freeze decision 0.0 0.0 0.0 0.0 0.0 0.0 

Duration 4

 Freeze allowed 76.2 80.3 77.5 91.8 77.5 87.5 

 Freeze disallowed 23.8 19.7 22.5 8.2 22.5 12.5 

 No freeze decision 0.0 0.0 0.0 0.0 0.0 0.0 

Duration 5 and over

 Freeze allowed 61.9 67.5 62.6 68.4 63.2 67.7 

 Freeze disallowed 38.1 32.5 37.4 31.6 36.8 32.3 

 No freeze decision 0.0 0.0 0.0 0.0 0.0 0.0 
64

Table S-21. Mortality experience of activea railroad employees during calendar years 2004-2008

Actual Crude rate Ratio Ratio

Ageb Exposed deaths per 1,000 Act./Exp.c Act./Exp.d

Under 35 247,186 261 1.1 93.7% 99.0% 

35-39 136,547 152 1.1 87.3 93.3 

40-44 131,332 176 1.3 88.8 95.7 

45-49 172,398 339 2.0 101.0 110.6 

50-54 240,202 582 2.4 90.4 100.2 

55-59 222,873 753 3.4 85.3 95.2 

60-64 63,092 356 5.6 96.0 107.5 

65 & over 9,992 100 10.0 90.1 100.9 

All ages 1,223,621 2,719 2.2 90.8% 100.0% 

a

 An employee is said to have died in active service if he died before retirement and had last

 worked in the railroad industry in the calendar year of his death or the calendar year

 immediately preceding.

b

 Age attained in calendar year of exposure.

c

 Expected deaths based on 2003 RRB Active Service Mortality Table.

d

 Expected deaths based on 2006 RRB Active Service Mortality Table.
65

Table S-22. Total termination experience of spouse annuitants between anniversaries of retirement in 2006 and 2009a

Ageb

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90 & over

1. 2006-2009 experience

Exposedc 429,946 79,356 95,101 86,938 81,337 57,232 24,430 5,552

Actual terminations 32,708 2,033 3,935 5,097 7,169 7,713 5,015 1,746

Crude rate per 1,000 76.1 25.6 41.4 58.6 88.1 134.8 205.3 314.5

Ratio Act./Exp. Id 101.1% 93.5% 105.2% 99.6% 99.7% 101.4% 103.6% 104.6%

Ratio Act./Exp. IIe 106.0% 100.9% 112.3% 105.4% 104.5% 105.4% 106.9% 107.1%

2. Crude rate per 1,000 for

 individual years

2006 - 2007 77.5 27.1 44.1 58.6 86.3 138.4 206.9 310.7

2007 - 2008 75.3 23.6 39.5 57.9 89.8 133.7 202.0 317.4

2008 - 2009 75.5 26.2 40.6 59.5 88.5 132.0 206.9 315.1

3. Ratio Act./Exp. for

 individual years Id

2006 - 2007 102.4% 98.3% 111.7% 99.3% 97.7% 104.3% 104.7% 103.3%

2007 - 2008 99.9% 86.4% 100.5% 98.4% 101.6% 100.6% 101.8% 105.6%

2008 - 2009 101.0% 95.9% 103.4% 101.3% 99.9% 99.1% 104.2% 104.8%

4. Ratio Act./Exp. for

 individual years IIe

2006 - 2007 107.4% 106.0% 119.3% 105.0% 102.4% 108.5% 108.1% 105.8%

2007 - 2008 104.8% 93.2% 107.3% 104.0% 106.5% 104.6% 105.1% 108.1%

2008 - 2009 105.8% 103.5% 110.4% 107.1% 104.7% 103.0% 107.6% 107.3%

a

 Excludes spouses under age 60 with child in care.

b

 Age nearest birthday at the beginning of the year of exposure.

c

 Exposure is between anniversaries of retirement in indicated years.

d

 Expected based on 2007 RRB Spouse Total Termination Table.

e

 Expected based on 2010 RRB Spouse Total Termination Table.
66

Table S-23. Mortality experience of spouse annuitants between anniversaries of retirement in 2006 and 2009a

Ageb

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90 & over

1. 2006-2009 experience

Exposedc 419,082 78,612 93,729 85,176 78,888 54,715 22,887 5,077

Actual deaths 10,980 545 1,190 1,573 2,271 2,678 1,928 795

Crude rate per 1,000 26.2 6.9 12.7 18.5 28.8 48.9 84.2 156.6

Ratio Act./Exp.d 75.9% 65.4% 77.8% 71.3% 70.3% 76.1% 83.7% 93.5%

2. Crude rate per 1,000 for

 individual years

2006 - 2007 27.0 7.6 13.1 19.0 28.9 49.2 89.8 160.8

2007 - 2008 25.2 6.6 12.0 17.1 28.6 48.8 78.8 147.8

2008 - 2009 26.3 6.6 13.0 19.3 29.0 48.8 84.2 161.2

3. Ratio Act./Exp. for

 individual yearsd

2006 - 2007 77.8% 71.5% 79.7% 73.1% 70.7% 76.5% 89.6% 96.5%

2007 - 2008 73.0% 62.5% 73.3% 66.0% 69.7% 75.8% 78.1% 87.7%

2008 - 2009 76.7% 62.5% 80.2% 74.7% 70.6% 75.8% 83.4% 96.4%

a

 Excludes spouses under age 60 with child in care.

b

 Age nearest birthday at the beginning of the year of exposure.

c

 Exposure is between anniversaries of retirement in indicated years.

d

 Expected based on 1995 RRB Mortality Table for Widows.
67

Table S-24. Number of retired employees and number with a spouse eligible for railroad

 retirement benefits, by age of employee on December 31, 2009

30 or more years of service Less than 30 years of service

Number of Ratio of Number of Ratio of

Agea of Number of eligible spouses to Number of eligible spouses to

employee employees spouses employees employees spouses employees

60 3,069 714 0.233

61 6,307 2,230 0.354

62 7,022 3,134 0.446 4,028 363 0.090

63 7,724 4,078 0.528 5,566 1,148 0.206

64 5,689 3,413 0.600 4,238 1,171 0.276

65 5,921 3,861 0.652 4,349 1,441 0.331

66 5,643 3,926 0.696 4,744 1,849 0.390

67 5,941 4,306 0.725 5,052 2,248 0.445

68 5,024 3,753 0.747 4,529 2,215 0.489

69 4,534 3,479 0.767 4,134 2,205 0.533

70 3,990 3,114 0.780 3,745 2,117 0.565

71 3,972 3,098 0.780 3,689 2,134 0.578

72 4,046 3,156 0.780 3,737 2,262 0.605

73 3,885 3,026 0.779 3,370 2,013 0.597

74 3,691 2,883 0.781 3,438 2,096 0.610

75 3,920 3,051 0.778 3,476 2,161 0.622

76 3,708 2,872 0.775 3,218 1,937 0.602

77 3,909 2,918 0.746 3,287 2,021 0.615

78 3,906 2,912 0.746 3,068 1,832 0.597

79 4,191 3,043 0.726 3,231 1,924 0.595

80 4,346 3,156 0.726 3,209 1,848 0.576

81 4,774 3,383 0.709 3,183 1,783 0.560

82 5,091 3,430 0.674 3,332 1,795 0.539

83 4,801 3,141 0.654 3,229 1,643 0.509

84 4,481 2,765 0.617 2,940 1,430 0.486

85 4,062 2,409 0.593 2,678 1,199 0.448

86 3,711 2,153 0.580 2,437 1,024 0.420

87 3,268 1,827 0.559 2,057 843 0.410

88 2,716 1,371 0.505 1,773 687 0.387

89 2,357 1,144 0.485 1,474 535 0.363

90 1,988 883 0.444 1,149 389 0.339

91 1,559 689 0.442 877 286 0.326

92 1,261 510 0.404 747 230 0.308

93 961 367 0.382 581 133 0.229

94 696 233 0.335 428 112 0.262

95 505 148 0.293 316 57 0.180

96 339 107 0.316 225 34 0.151

97 189 54 0.286 159 30 0.189

98 134 27 0.201 135 18 0.133

99 & over 248 32 0.129 235 21 0.089

a

 Age nearest birthday.
Table S-25. Mortality experience of widow annuitants between anniversaries of retirement in 2006 and 2009

Agea

All ages under 50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95 & over

1. 2006-2009 experience

Exposed 450,966 1,586 703 469 16,029 28,894 46,229 79,162 103,316 97,160 54,586 22,832

Actual deaths 37,288 d d d 155 510 1,232 3,122 6,434 10,236 9,214 6,385

Crude rate per 1,000 82.7 d d d 9.7 17.7 26.6 39.4 62.3 105.4 168.8 279.7

Ratio Act./Exp.b 106.6% d d d 91.7% 107.5% 102.9% 97.1% 98.7% 108.1% 112.0% 112.1%

2. Crude rate per 1,000 for

 individual yearsc

2006 - 2007 83.2 d d d 8.5 17.9 26.9 38.9 62.7 108.9 170.7 290.5

2007 - 2008 83.0 d d d 10.8 16.7 27.1 40.6 62.9 102.3 171.5 282.5

2008 - 2009 81.8 d d d 9.8 18.4 25.9 38.8 61.2 104.8 164.2 265.4

3. Ratio Act./Exp. for

 individual yearsc

2006 - 2007 108.4% d d d 80.2% 108.8% 103.5% 95.9% 99.4% 111.9% 113.1% 116.2%

2007 - 2008 106.9% d d d 102.4% 101.6% 104.7% 100.0% 99.8% 105.0% 113.7% 113.2%

2008 - 2009 104.4% d d d 93.0% 112.1% 100.3% 95.4% 96.9% 107.2% 109.1% 106.8%

a

 Age nearest birthday at the beginning of the year of exposure.

b

 Expected based on 1995 RRB Mortality Table for Widows.

c

 Exposure is between anniversaries of retirement in indicated years.

d Fewer than 10 actual deaths.
 69

Table S-26. Remarriage experience of widows between 1997 and 2009 anniversaries of widowhood

Agea

All ages Under 35 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70 & over

1. Exposed

Durationb

 0 87,323 120 198 391 519 784 966 6,677 10,461 67,208

1 87,376 125 209 397 523 856 1,984 6,845 10,982 65,456

2 86,792 126 224 380 507 869 2,739 7,117 11,442 63,389

3 86,104 133 218 369 492 874 3,469 7,410 11,946 61,192

4 85,046 134 227 325 492 879 4,081 7,721 12,447 58,740

5 or more 1,626,850 89 443 1,347 1,880 3,267 6,155 43,442 91,772 1,478,455

2. Actual remarriages

Durationb

 0 103 c c c c c c 20 23 52

1 249 c c c c c 12 46 59 114

2 257 c c c c c 16 51 68 91

3 234 c c c c c 25 49 54 79

4 204 c c c c c 36 50 41 60

5 or more 1,266 c 15 16 19 18 25 212 276 682

3. Crude remarriage rate per 1,000

Durationb

 0 1.18 c c c c c c 3.00 2.20 0.77

1 2.85 c c c c c 6.05 6.72 5.37 1.74

2 2.96 c c c c c 5.84 7.17 5.94 1.44

3 2.72 c c c c c 7.21 6.61 4.52 1.29

4 2.40 c c c c c 8.82 6.48 3.29 1.02

5 or more 0.78 c 33.89 11.88 10.11 5.51 4.06 4.88 3.01 0.46

4. Ratio Act./Exp.d

Durationb 0 77.4% c c c c c c 64.4% 82.5% 84.6%

1 86.7% c c c c c 66.6% 78.4% 92.4% 94.4%

2 93.5% c c c c c 61.9% 86.7% 112.8% 90.7%

3 100.6% c c c c c 70.5% 90.9% 107.9% 125.9%

4 92.0% c c c c c 88.7% 98.1% 83.2% 106.5%

5 or more 98.7% c 151.0% 71.6% 87.2% 77.6% 113.1% 96.0% 103.7% 98.4%

a

 For durations 0-4, age nearest birthday on date of employee's death. For durations 5 and over, age nearest birthday at

 beginning of year of exposure which is on an anniversary of employee's death.

b

 Completed years since employee's death.

c

 Fewer than 10 actual remarriages.

d

 Expected based on 1997 RRB Remarriage Table.
70

Table S-27. Total termination experience of disabled children annuitants

 between anniversaries of retirement in 2006 and 2009

Actual Ratio

Agea Exposed terminations Act./Exp.b

Under 25 472 c c 

25-29 578 c c 

30-34 797 11 134.5% 

35-39 1,177 c c 

40-44 2,128 23 90.6 

45-49 3,170 65 138.6 

50-54 3,803 79 110.1 

55-59 3,748 118 127.7 

60-64 3,574 145 123.3 

65-69 2,837 144 114.8 

70-74 2,046 126 101.8 

75-79 1,579 140 105.6 

80-84 1,050 147 122.0 

85-89 477 86 113.9 

90 & over 158 41 111.5 

All ages 27,594 1,144 113.7% 

a

 Age nearest birthday at beginning of the year of exposure.

b

 Expected based on 2004 RRB Total Termination Table for Disabled Children.

c

 Fewer than 10 actual terminations.
71

RETIREMENT STUDIES

1. Age retirement. Age retirement studies covering experience during calendar years 2007-2009

are summarized in Tables S-28 through S-30. Table S-28 shows a comparison among crude 

retirement rates for 2007-2009, the 24th valuation retirement rates, and the 25th valuation 

retirement rates. Tables S-29 and S-30 show ratios of actual retirements to those expected for 

employees with 5-29 years of service and for employees with 30 or more years of service, 

respectively.

2. Disability retirement. Table S-31 shows a comparison of crude disability retirement rates for 

2007-2009 with the 24th and 25th valuation standards. Table S-32 shows ratios of actual 

retirements in 2007-2009 to those expected by age and service.

Table S-33 shows percentages of disability retirements in 2007-2009 that were eligible for a 

disability freeze. Disability freeze standards are needed because of the financial interchange 

with social security. Assumptions must be made regarding the percentage of railroad retirement 

disability annuitants who would qualify under the social security definition of disability. Only 

these disabilities qualify for reimbursement under the financial interchange.
72

Table S-28. Ratesa of immediate age retirement

5-29 years of service 30 or more years of service

Assumed Assumed 2007-2009 Assumed Assumed 2007-2009

rates 24th rates 25th Crude rates 24th rates 25th Crude

Ageb valuation valuation rates valuation valuation rates

60 0.62 0.61 0.611

61 0.49 0.48 0.481

62 0.10 0.11 0.112 0.40 0.40 0.390

63 0.09 0.09 0.086 0.40 0.38 0.376

64 0.09 0.07 0.071 0.40 0.35 0.350

65 0.23 0.18 0.178 0.43 0.40 0.395

66 0.38 0.33 0.332 0.33 0.35 0.342

67 0.25 0.25 0.231 0.33 0.30 0.324

68 0.25 0.25 0.251 0.30 0.30 0.302

69 0.25 0.20 0.218 0.30 0.30 0.259

70 0.25 0.20 0.183 0.30 0.30 0.296

71 0.25 0.20 0.200 0.30 0.20 0.221

72 0.25 0.20 0.167 0.25 0.20 c

73 0.25 0.20 0.255 0.25 0.20 0.250

74 0.25 0.20 c 0.25 0.20 0.298

75 & over 0.25 0.20 0.121 0.25 0.20 0.176

a

 Technically probabilities, because exposures were not adjusted for other separations.

b

 Age attained in calendar year of exposure.

c

 Insufficient data.
73

Table S-29. Immediate agea retirement experience of railroad employees with

 5-29 years of service during calendar years 2007-2009

Actual Crude rated Ratio Ratio

Ageb Exposedc retirements per 1,000 Act./Exp. Ie Act./Exp. IIe

62 3,825 427 111.6 111.6% 101.5% 

63 2,608 225 86.3 95.9 95.9 

64 1,919 137 71.4 79.3 102.0 

65 1,582 282 178.3 77.5 99.0 

66 1,087 361 332.1 87.4 100.6 

67 553 128 231.5 92.6 92.6 

68 362 91 251.4 100.6 100.6 

69 248 54 217.7 87.1 108.9 

70-74 441 85 192.7 77.1 96.4 

75 & over 99 12 121.2 48.5 60.6 

All ages 12,724 1,802 141.6 90.4 99.0 

a

 Nondisability retirement.

b

 Age attained in calendar year of exposure.

c

 Exposure includes part of the year in which employees were not eligible for age

 retirement because they were under 62.

d

 Technically probabilities, because exposures were not adjusted for other separations.

e

 I and II denote expected according to rates used in the 24th and 25th valuations,

 respectively.
74

Table S-30. Immediate agea retirement experience of railroad employees with

 30 or more years of service during calendar years 2007-2009

Actual Crude rated Ratio Ratio

Ageb Exposedc retirements per 1,000 Act./Exp. Ie Act./Exp. IIe

60 18,379 11,221 610.5 98.5% 100.1% 

61 7,133 3,434 481.4 98.2 100.3 

62 3,635 1,418 390.1 97.5 97.5 

63 2,256 849 376.3 94.1 99.0 

64 1,539 538 349.6 87.4 99.9 

65 1,105 436 394.6 91.8 98.6 

66 767 262 341.6 103.5 97.6 

67 522 169 323.8 98.1 107.9 

68 321 97 302.2 100.7 100.7 

69 220 57 259.1 86.4 86.4 

70-74 422 100 237.0 85.2 101.4 

75 & over 142 25 176.1 70.4 88.0 

All ages 36,441 18,606 510.6 97.5 99.8 

a

 Nondisability retirement.

b

 Age attained in calendar year of exposure.

c

 Exposure includes part of the year in which employees were not eligible for age

 retirement because they were under 60.

d

 Technically probabilities, because exposures were not adjusted for other separations.

e

 I and II denote expected according to rates used in the 24th and 25th valuations,

 respectively.
Table S-31. Ratesa

 of immediateb disability retirement

10-19 years of service 20-24 years of service 25-29 years of service 30 or more years of service

Assumed Assumed 2007-2009 Assumed Assumed 2007-2009 Assumed Assumed 2007-2009 Assumed Assumed 2007-2009

rates 24th rates 25th Crude rates 24th rates 25th Crude rates 24th rates 25th Crude rates 24th rates 25th Crude

Agec valuation valuation rates valuation valuation rates valuation valuation rates valuation valuation rates

Under 35 0.0012 0.0012 d 0.0046 0.0034 d 0.0026 0.0022 d 0.0026 0.0022 d

35 0.0015 0.0013 d 0.0054 0.0035 d 0.0030 0.0023 d 0.0030 0.0023 d

36 0.0017 0.0015 d 0.0063 0.0038 d 0.0035 0.0025 d 0.0035 0.0025 d

37 0.0020 0.0016 0.0020 0.0073 0.0043 d 0.0041 0.0028 d 0.0041 0.0028 d

38 0.0024 0.0018 d 0.0084 0.0050 d 0.0047 0.0032 d 0.0047 0.0032 d

39 0.0027 0.0020 0.0019 0.0096 0.0059 d 0.0053 0.0038 d 0.0053 0.0038 d

40 0.0032 0.0022 0.0024 0.0109 0.0070 d 0.0060 0.0045 d 0.0060 0.0045 d

41 0.0036 0.0024 0.0021 0.0123 0.0083 d 0.0068 0.0054 d 0.0068 0.0054 d

42 0.0041 0.0027 0.0030 0.0139 0.0098 d 0.0077 0.0064 d 0.0077 0.0064 d

43 0.0047 0.0031 0.0023 0.0155 0.0114 0.0075 0.0086 0.0074 d 0.0086 0.0074 d

44 0.0053 0.0034 0.0022 0.0173 0.0131 0.0094 0.0096 0.0085 d 0.0096 0.0085 d

45 0.0060 0.0039 0.0037 0.0192 0.0148 0.0058 0.0112 0.0098 d 0.0112 0.0098 d

46 0.0068 0.0044 0.0038 0.0213 0.0167 0.0095 0.0127 0.0112 d 0.0127 0.0112 d

47 0.0076 0.0049 0.0038 0.0235 0.0187 0.0132 0.0143 0.0126 0.0043 0.0143 0.0126 d

48 0.0086 0.0056 0.0029 0.0259 0.0208 0.0127 0.0159 0.0140 0.0088 0.0159 0.0140 d

49 0.0096 0.0063 0.0067 0.0284 0.0231 0.0142 0.0176 0.0154 0.0114 0.0176 0.0154 0.0075

50 0.0108 0.0072 0.0038 0.0312 0.0254 0.0301 0.0192 0.0169 0.0178 0.0192 0.0169 0.0156

51 0.0120 0.0082 0.0080 0.0342 0.0280 0.0354 0.0210 0.0184 0.0259 0.0210 0.0184 0.0207

52 0.0135 0.0093 0.0085 0.0374 0.0307 0.0290 0.0227 0.0200 0.0191 0.0227 0.0200 0.0189

53 0.0150 0.0106 0.0072 0.0409 0.0335 0.0273 0.0245 0.0216 0.0195 0.0245 0.0216 0.0197

54 0.0168 0.0121 0.0071 0.0447 0.0365 0.0263 0.0263 0.0232 0.0185 0.0263 0.0232 0.0214

55 0.0187 0.0138 0.0104 0.0487 0.0398 0.0316 0.0282 0.0248 0.0239 0.0282 0.0248 0.0222

56 0.0209 0.0158 0.0118 0.0531 0.0432 0.0421 0.0301 0.0265 0.0287 0.0301 0.0265 0.0266

57 0.0232 0.0180 0.0156 0.0578 0.0468 0.0386 0.0320 0.0282 0.0231 0.0320 0.0282 0.0245

58 0.0259 0.0206 0.0151 0.0628 0.0507 0.0390 0.0340 0.0299 0.0248 0.0340 0.0299 0.0293

59 0.0288 0.0236 0.0258 0.0683 0.0548 0.0465 0.0360 0.0317 0.0267 0.0360 0.0317 0.0302

60 0.0501 0.0403 0.0382 0.0742 0.0591 0.0521 0.0380 0.0335 0.0324 0.0184 0.0163 0.0163

61 0.0493 0.0470 0.0432 0.0805 0.0637 0.0563 0.0401 0.0354 0.0404 0.0148 0.0128 0.0112

62 0.0473 0.0462 0.0423 0.0862 0.0683 0.0597 0.0566 0.0484 0.0434 0.0114 0.0097 0.0096

63 0.0427 0.0454 0.0402 0.0825 0.0677 0.0626 0.0529 0.0478 0.0514 0.0082 0.0070 0.0080

64 0.0321 0.0373 0.0406 0.0718 0.0639 0.0618 0.0422 0.0440 0.0466 0.0054 0.0046 d

65 0.0077 0.0163 0.0208 0.0405 0.0429 0.0479 0.0109 0.0230 0.0223 0.0028 0.0026 d

a

 Technically probabilities, because exposures were not adjusted for other terminations.

b

 Immediate retirements are defined as those for which the calendar year of retirement is the same as, or the year following, the calendar year of last employment in the railroad industry.

c

 Age attained in calendar year of exposure.

d

 Insufficient data.
 76

Table S-32. Immediate disability retirement experience of railroad employees during calendar years 2007-2009

Attained agea

All ages Under 40 40-44 45-49 50-54 55-59 60-65b 60 61 62 63 64 65b 

1. 10-19 years of service

Exposed 154,808 48,428 35,254 29,167 21,793 13,586 6,580 1,834 1,551 1,205 821 640 529

Actual retirements 869 54 85 120 149 203 258 70 67 51 33 26 11

Crude rate per 1,000c 5.6 1.1 2.4 4.1 6.8 14.9 39.2 38.2 43.2 42.3 40.2 40.6 20.8

Ratio Act./Exp.d 64.6% 60.4% 58.0% 54.0% 51.1% 65.2% 90.5% 76.2% 87.6% 89.5% 94.1% 126.6% 270.1%

Ratio Act./Exp.e 84.2% 72.8% 87.8% 83.1% 73.6% 84.0% 94.8% 94.7% 91.9% 91.6% 88.5% 108.9% 127.6%

2. 20-24 years of service

Exposed 40,643 308 5,173 11,787 11,951 7,720 3,704 1,036 817 687 479 372 313

Actual retirements 1,041 2 40 133 357 300 209 54 46 41 30 23 15

Crude rate per 1,000c 25.6 6.5 7.7 11.3 29.9 38.9 56.4 52.1 56.3 59.7 62.6 61.8 47.9

Ratio Act./Exp.d 68.2% 69.5% 51.7% 47.3% 80.3% 68.4% 74.4% 70.2% 69.9% 69.2% 75.9% 86.1% 118.3%

Ratio Act./Exp.e 84.6% 113.6% 71.2% 59.4% 98.1% 84.4% 90.9% 88.2% 88.4% 87.4% 92.5% 96.8% 111.7%

3. 25-29 years of service

Exposed 69,871 0 185 13,617 29,731 18,405 7,933 2,380 1,905 1,452 972 686 538

Actual retirements 1,500 f f 119 602 468 311 77 77 63 50 32 12

Crude rate per 1,000c 21.5 f f 8.7 20.2 25.4 39.2 32.4 40.4 43.4 51.4 46.6 22.3

Ratio Act./Exp.d 83.1% f f 55.2% 89.4% 80.7% 92.8% 85.1% 100.8% 76.7% 97.2% 110.5% 204.6%

Ratio Act./Exp.e 93.7% f f 62.9% 101.6% 91.7% 101.5% 96.6% 114.2% 89.6% 107.6% 106.0% 97.0%

4. 30 or more years of service

Exposed 171,846 0 0 2,122 46,534 89,161 34,029 18,367 7,131 3,631 2,256 1,539 1,105

Actual retirements 3,753 f f 13 925 2,377 438 299 80 35 18 f f 

Crude rate per 1,000c 21.8 f f 6.1 19.9 26.7 12.9 16.3 11.2 9.6 8.0 f f 

Ratio Act./Exp.d 82.9% f f 35.5% 83.6% 82.9% 85.1% 88.5% 75.8% 84.6% 97.3% f f 

Ratio Act./Exp.e 94.2% f f 40.5% 94.9% 94.1% 96.9% 99.9% 87.4% 98.9% 113.8% f f 

a

 Age attained in calendar year of exposure.

b

 Refers to employees retiring before normal retirement age. Exposure includes part of the year in which employees were not eligible for disability retirement

 because they passed normal retirement age.

c

 Technically probabilities of retirement, because exposures were not adjusted for other terminations.

d

 Expected based on 24th valuation disability rates.

e

 Expected based on 25th valuation disability rates.

f

 Insufficient data.
Table S-33. Percentages of immediatea

 disability retirements meeting the disability freeze standards of the Social Security Act

10-19 years of service 20-24 years of service 25-29 years of service 30 or more years of service

Assumed Assumed 2007-2009 Assumed Assumed 2007-2009 Assumed Assumed 2007-2009 Assumed Assumed 2007-2009

rates 24th rates 25th Crude rates 24th rates 25th Crude rates 24th rates 25th Crude rates 24th rates 25th Crude

Ageb valuation valuation rates valuation valuation rates valuation valuation rates valuation valuation rates

Under 35 98.5% 98.2% c 36.3% 39.3% c 36.3% 39.3% c 36.3% 39.3% c

35 98.5 98.2 c 36.3 39.5 c 36.3 39.5 c 36.3 39.5 c

36 98.5 98.2 c 36.3 39.7 c 36.3 39.7 c 36.3 39.7 c

37 98.5 98.2 92.9% 36.3 39.9 c 36.3 39.9 c 36.3 39.9 c

38 98.5 98.2 c 36.3 40.1 c 36.3 40.1 c 36.3 40.1 c

39 98.5 98.2 100.0 36.4 40.3 c 36.4 40.3 c 36.4 40.3 c

40 98.5 98.2 100.0 36.4 40.5 c 36.4 40.5 c 36.4 40.5 c

41 98.5 98.2 100.0 36.5 40.7 c 36.5 40.7 c 36.5 40.7 c

42 98.5 98.2 100.0 36.6 40.9 c 36.6 40.9 c 36.6 40.9 c

43 98.5 98.2 81.3 36.8 41.1 c 36.8 41.1 c 36.8 41.1 c

44 98.5 98.2 93.3 37.0 41.3 c 37.0 41.3 c 37.0 41.3 c

45 98.5 98.2 95.8 37.4 41.5 c 37.4 41.5 c 37.4 41.5 c

46 98.5 98.2 95.7 37.9 41.7 59.1% 37.9 41.7 c 37.9 41.7 c

47 98.5 98.2 95.2 38.7 41.9 56.3 38.7 41.9 c 38.7 41.9 c

48 98.5 98.2 100.0 39.9 42.1 45.2 39.9 42.1 37.8% 39.9 42.1 c

49 98.5 98.2 97.1 41.6 42.6 52.8 41.6 42.6 47.5 41.6 42.6 c

50 98.5 98.2 100.0 44.3 43.6 53.8 44.3 43.6 44.2 44.3 43.6 45.0% 

51 98.5 98.2 100.0 48.2 45.7 35.9 48.2 45.7 43.3 48.2 45.7 30.3 

52 98.5 98.2 100.0 54.1 50.3 54.9 54.1 50.3 53.8 54.1 50.3 52.0 

53 98.5 98.2 96.6 62.9 60.0 50.0 62.9 60.0 57.9 62.9 60.0 64.9 

54 98.5 98.2 100.0 76.1 80.5 79.6 76.1 80.5 82.7 76.1 80.5 79.6 

55 98.5 98.2 100.0 89.5 93.4 96.8 89.5 93.4 90.4 89.5 93.4 92.0 

56 98.5 98.2 100.0 89.5 93.4 89.2 89.5 93.4 95.0 89.5 93.4 92.9 

57 98.5 98.2 100.0 89.5 93.4 89.8 89.5 93.4 96.3 89.5 93.4 94.4 

58 98.5 98.2 100.0 89.5 93.4 98.1 89.5 93.4 97.4 89.5 93.4 92.1 

59 98.5 98.2 100.0 89.5 93.4 84.9 89.5 93.4 97.2 89.5 93.4 92.8 

60 91.9 93.4 94.3 89.5 93.4 92.6 89.5 93.4 94.8 89.5 93.4 96.0 

61 91.9 93.4 91.0 89.5 93.4 93.5 89.5 93.4 92.2 89.5 93.4 95.0 

62 91.9 93.4 92.2 89.5 93.4 90.2 89.5 93.4 96.8 89.5 93.4 100.0 

63 91.9 93.4 90.9 89.5 93.4 86.7 89.5 93.4 98.0 89.5 93.4 88.9 

64 91.9 93.4 100.0 89.5 93.4 91.3 89.5 93.4 96.9 89.5 93.4 c

65 91.9 93.4 100.0 89.5 93.4 86.7 89.5 93.4 83.3 89.5 93.4 c

a

 Immediate retirements are defined as those for which the calendar year of retirement is the same as, or the year following, the calendar year of last employment in the railroad industry.

b

 Age attained in calendar year of exposure.

c

 Insufficient data.
78

WITHDRAWAL STUDIES

Table S-34 shows the select withdrawal experience for the years 2005-2008. The actual 

withdrawals are shown net of re-entrants into the industry for each attained age and service 

group. Since a re-entrant maintains his prior earnings and service credit, he cannot be 

considered a final withdrawal. The table presents crude net withdrawal rates by attained age 

and years of service along with ratios of actual net withdrawals to those expected on the basis of 

the 24th valuation standard and the 25th valuation standard.
Table S-34. Withdrawal experience of railroad employees during calender years 2005-2008, by attained age and years of service

Years Attained ageb

 under 25 Attained ageb 25-34 Attained ageb 35-44

of Actual netc Crude rate Ratio Act./Exp. Actual netc Crude rate Ratio Act./Exp. Actual netc Crude rate Ratio Act./Exp.

servicea Exposed withdrawals per 100 I

d IId Exposed withdrawals per 100 I

d IId Exposed withdrawals per 100 Id IId

0 18,796 3,500 18.6 95.0% 100.1% 30,959 4,454 14.4 97.2% 99.9% 20,557 3,638 17.7 100.0% 100.0%

1 13,079 1,872 14.3 83.7 100.1 30,233 3,187 10.5 90.9 100.4 19,673 2,205 11.2 97.5 100.1 

2 7,287 646 8.9 91.4 100.7 26,281 1,768 6.7 77.3 97.5 17,517 1,165 6.7 86.4 97.8 

3 3,521 210 6.0 82.8 94.7 21,140 1,168 5.5 76.7 106.3 14,883 721 4.8 82.1 105.3 

4 1,410 69 4.9 78.9 97.9 15,738 674 4.3 69.1 95.2 12,211 453 3.7 71.3 100.3 

5 456 23 5.0 93.4 117.3 11,829 436 3.7 68.3 92.1 10,148 313 3.1 67.1 93.5 

6 81 e e e e 10,777 415 3.9 78.6 107.0 10,690 338 3.2 75.3 102.0 

7 9 e e e e 11,454 343 3.0 68.1 93.6 12,794 372 2.9 76.5 103.8 

8 2 e e e e 10,516 290 2.8 67.3 98.5 13,976 346 2.5 70.7 95.2 

9 2 e e e e 8,528 226 2.7 69.7 106.0 13,762 297 2.2 67.4 89.9 

10 1 e e e e 6,558 140 2.1 59.3 97.0 13,179 296 2.2 74.9 102.1 

11 - e e e e 4,400 85 1.9 56.8 96.6 11,561 215 1.9 66.4 93.0 

12 - e e e e 2,801 43 1.5 48.0 80.8 10,453 193 1.8 71.0 97.2 

13 - e e e e 1,735 37 2.1 71.1 125.4 9,616 191 2.0 82.8 116.8 

14 - e e e e 906 13 1.4 51.2 89.7 8,386 166 2.0 86.1 123.7 

15 - e e e e 345 e e e e 7,266 110 1.5 72.1 100.9 

16 - e e e e 73 e e e e 6,756 98 1.5 76.3 111.6 

17 - e e e e 1 e e e e 5,908 65 1.1 64.7 91.7 

18 - e e e e 1 e e e e 4,798 52 1.1 67.7 98.5 

19 - e e e e - e e e e 3,499 29 0.8 59.2 75.3 

20 - e e e e - e e e e 2,568 26 1.0 77.9 101.2 

21 - e e e e - e e e e 1,891 12 0.6 57.7 70.5 

22 - e e e e - e e e e 1,304 e e e e 

23 - e e e e - e e e e 914 e e e e 

24 - e e e e - e e e e 657 e e e e 

25 - e e e e - e e e e 409 e e e e 

26 - e e e e - e e e e 170 e e e e 

27 - e e e e - e e e e 3 e e e e 

28 - e e e e - e e e e 1 e e e e 

29 - e e e e - e e e e - e e e e 

30 & over - e e e e - e e e e - e e e e 

All years 44,644 6,324 14.2 90.4 100.0 194,275 13,285 6.8 83.7 99.7 235,550 11,324 4.8 86.4 99.9 

a

 Service as of beginning of calendar year of exposure rounded up to next highest whole year.

b

 Age attained in calendar year of exposure.

c

 Withdrawals less re-entrants.

d

 I and II denote expected according to rates used in the 24th valuation and 25th valuation, respectively.

e

 Less than 10 actual net withdrawals.
Table S-34. Withdrawal experience of railroad employees during calender years 2005-2008, by attained age and years of service (continued)

Years Attained ageb

 45-54 Attained ageb 55 and over All ages

of Actual netc Crude rate Ratio Act./Exp. Actual netc Crude rate Ratio Act./Exp. Actual netc Crude rate Ratio Act./Exp.

servicea Exposed withdrawals per 100 I

d IId Exposed withdrawals per 100 I

d IId Exposed withdrawals per 100 Id IId

0 9,029 1,897 21.0 101.0% 100.0% 1,668 408 24.5 90.9% 99.8% 81,009 13,897 17.2 97.7% 100.0%

1 8,865 1,023 11.5 108.9 99.5 1,723 233 13.5 116.6 100.2 73,573 8,520 11.6 93.2 100.1 

2 8,194 566 6.9 95.9 101.6 1,656 127 7.7 69.7 99.6 60,935 4,272 7.0 83.5 98.6 

3 7,434 330 4.4 76.5 98.6 1,684 99 5.9 57.1 103.1 48,662 2,528 5.2 77.6 103.8 

4 6,423 216 3.4 71.6 90.9 1,673 86 5.1 55.3 102.8 37,455 1,498 4.0 69.5 96.5 

5 5,568 167 3.0 76.9 88.2 1,391 53 3.8 46.5 84.7 29,392 992 3.4 67.9 91.9 

6 6,008 212 3.5 110.3 113.8 1,526 69 4.5 63.7 113.0 29,082 1,037 3.6 80.9 106.9 

7 7,104 220 3.1 110.6 110.6 1,722 59 3.4 57.1 95.2 33,083 994 3.0 76.9 100.8 

8 7,788 251 3.2 134.3 128.9 1,935 75 3.9 79.1 121.1 34,217 962 2.8 80.0 105.2 

9 7,628 171 2.2 101.9 97.5 2,012 58 2.9 72.1 99.4 31,932 752 2.4 74.2 96.7 

10 7,409 138 1.9 88.7 88.7 2,059 53 2.6 80.4 103.0 29,206 628 2.2 73.6 97.9 

11 6,598 100 1.5 75.8 79.8 1,886 27 1.4 53.0 62.2 24,445 427 1.7 65.1 87.5 

12 6,168 104 1.7 88.7 99.2 1,837 37 2.0 87.6 100.7 21,259 377 1.8 72.4 95.8 

13 6,058 104 1.7 95.4 114.4 1,927 33 1.7 85.6 95.1 19,336 365 1.9 84.8 114.6 

14 5,812 68 1.2 68.8 83.6 1,867 16 0.9 45.1 53.6 16,971 263 1.5 74.6 101.2 

15 5,388 64 1.2 74.2 91.4 1,832 23 1.3 69.7 89.7 14,831 203 1.4 72.3 96.7 

16 5,683 49 0.9 57.5 78.4 1,900 30 1.6 92.9 131.6 14,412 177 1.2 71.5 101.7 

17 6,034 66 1.1 78.1 109.4 2,050 29 1.4 83.2 128.6 13,993 160 1.1 72.8 104.0 

18 6,192 61 1.0 75.8 109.5 2,096 16 0.8 47.7 84.8 13,087 129 1.0 67.6 101.3 

19 6,147 49 0.8 61.3 99.6 2,070 16 0.8 48.3 96.6 11,716 94 0.8 58.0 90.2 

20 6,099 51 0.8 69.7 119.5 2,145 23 1.1 71.5 153.2 10,812 100 0.9 72.1 119.9 

21 6,459 36 0.6 50.7 79.6 2,228 14 0.6 44.9 104.7 10,578 62 0.6 50.4 82.0 

22 7,320 32 0.4 43.7 72.9 2,382 e e e e 11,006 46 0.4 38.5 69.4 

23 8,475 44 0.5 57.7 103.8 2,726 18 0.7 50.8 165.1 12,115 68 0.6 56.7 113.9 

24 10,049 41 0.4 45.3 81.6 3,306 12 0.4 30.2 90.7 14,012 58 0.4 42.8 86.0 

25 12,283 52 0.4 52.9 105.8 4,141 30 0.7 65.9 241.5 16,833 84 0.5 57.1 131.2 

26 15,420 50 0.3 46.3 81.1 5,411 11 0.2 20.3 67.8 21,001 63 0.3 38.6 80.0 

27 17,870 63 0.4 50.4 117.5 7,015 22 0.3 31.4 156.8 24,888 85 0.3 43.5 125.6 

28 19,436 80 0.4 68.6 137.2 8,549 e e e e 27,986 84 0.3 43.4 111.4 

29 19,434 36 0.2 37.0 92.6 9,961 e e e e 29,395 39 0.1 22.1 79.9 

30 & over 71,561 325 0.5 32.4 90.8 116,168 1,018 0.9 39.8 97.4 187,729 1,343 0.7 37.8 95.7 

All years 329,936 6,666 2.0 82.7 99.5 200,546 2,708 1.4 52.9 99.0 1,004,951 40,307 4.0 82.0 99.7 

a

 Service as of beginning of calendar year of exposure rounded up to next highest whole year.

b

 Age attained in calendar year of exposure.

c

 Withdrawals less re-entrants.

d

 I and II denote expected according to rates used in the 24th valuation and 25th valuation, respectively.

e

 Less than 10 actual net withdrawals.
81

EMPLOYEE AND BENEFICIARY CENSUSES, FAMILY COMPOSITION, AND

MISCELLANEOUS STATISTICS

Age and service distributions of active and inactive employees are shown in Tables S-35 and S-36. 

A comparison between 2007 and 2010 active censuses is shown in Table S-37.

Tables S-38 and S-39 provide a census of beneficiaries on December 31, 2010. Also included are 

their tier 1, tier 2 and vested dual benefit amounts.

Table S-40 shows the average number of service months in a year for calendar years 2006-2008 by 

attained age group and years of service. The number of service months credited to an employee for 

a given year is equal to the employee's total creditable tier 2 earnings in the year, divided by onetwelfth of the tier 2 earnings base for the year, with a maximum of 12 and a minimum of the 

number of months in which the individual had service.

The average creditable earnings per service month during 2010 are shown in Table S-41. Because 

of the difference in the maximum creditable earnings for tier 1 and tier 2 benefits, separate salary 

scales were constructed.

The age distribution of new entrants during calendar years 2006-2009 is shown in Table S-42, as is 

the distribution for 2003-2006.

Table S-43 presents family characteristics of railroad employees who died in the period 2006-2009

with a current connection.

Table S-44 provides selected employment and benefit statistics for 2007 and 2010.
Table S-35. Distribution of 2010 active employeesa

 by age and completed years of service

Age in Completed years of service

2010 Total 0 1 2-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40 & over

Total 238,462 13,730 7,663 38,290 46,946 36,339 20,903 13,828 14,329 25,895 17,702 2,837

Under 20 410 381 25 4 0 0 0 0 0 0 0 0

20-24 6,923 2,652 1,091 2,870 310 0 0 0 0 0 0 0

25-29 19,176 2,849 1,687 8,500 6,005 135 0 0 0 0 0 0

30-34 26,592 2,326 1,376 7,904 10,457 4,386 143 0 0 0 0 0

35-39 30,616 1,821 1,042 6,338 9,322 8,758 3,203 132 0 0 0 0

40-44 30,746 1,443 938 5,066 7,502 8,048 5,516 2,189 44 0 0 0

45-49 28,857 1,144 750 3,840 6,124 6,177 4,608 3,910 1,992 312 0 0

50-54 36,275 671 445 2,232 4,025 4,608 3,590 3,636 5,708 10,407 953 0

55-59 44,284 322 200 1,064 2,127 2,801 2,422 2,592 4,489 13,106 14,016 1,145

60-64 12,415 94 87 381 899 1,174 1,175 1,135 1,844 1,787 2,549 1,290

65-69 1,798 23 17 71 148 217 211 197 213 240 150 311

70 & over 370 4 5 20 27 35 35 37 39 43 34 91

a

 Employees alive and not retired at the end of 2010 with some railroad service in 2010.
83

Table S-36. Census of vesteda inactive employeesb in 2010 by age and

 completed years of service

Age in Completed years of service

2010 Total 5-9 10-14 15-19 20-24 25-29 30 & over

Total 49,776 8,878 23,961 9,655 4,394 1,655 1,233

Under 35 1,275 1,201 74 0 0 0 0

35-39 2,629 2,057 538 34 0 0 0

40-44 3,439 1,961 1,240 211 27 0 0

45-49 4,053 1,528 1,854 526 122 22 1

50-54 9,027 1,165 4,777 1,910 809 253 113

55-59 16,824 672 8,839 3,783 1,838 699 993

60-64 11,444 255 6,038 2,943 1,474 623 111

65 & over 1,085 39 601 248 124 58 15

a

 Employees with at least 10 years of total service, or 5 years of service after 1995.

b

 Employees alive and not retired at the end of 2010 with no railroad work in 2010.
84

Table S-37. Comparison between 2010 and 2007 of selected characteristics of activea

 railroad employees

Change from 2007 to 2010

2010 2007 Number Percent

Number alive and not retired 238,462 258,214 -19,752 -7.6%

Percent with 5 or more years

 of service 75.0% 69.3% b b 

Number age 60 or over 14,583 12,405 2,178 17.6%

Number age 65 or over 2,168 1,832 336 18.3%

Number age 60-64 with 30 or

 more years of service 5,626 4,423 1,203 27.2%

Average age on December 31 45.1 44.7 0.4 b 

Median age on December 31 45.8 46.3 -0.5 b 

Average years of service

 All employees 15.1 15.4 -0.3 b 

 Employees under age 45 7.1 6.1 1.0 b 

 Employees age 45-49 12.6 14.9 -2.3 b 

 Employees age 60 or over 26.3 26.6 -0.3 b 

 Employees age 65 or over 25.6 26.1 -0.5 b 

a

 Active employees were those with some railroad service during the year.

b

 Not applicable.
85

Table S-38. Census of employee and spouse annuitants on December 31, 2010a

Monthly benefitsb

Agec Number Tier 1 Tier 2 Vested dual Supplemental

1. Employee age annuitants

60-64 33,518 $ 64,504,556 $ 37,168,565 $ 314 $ 873,038

65-69 36,252 63,791,841 31,192,239 34,038 801,312

70-74 28,069 42,315,303 20,789,935 236,910 577,722

75-79 27,604 35,275,023 17,255,517 615,551 536,751

80-84 31,546 37,577,559 17,052,939 1,189,654 629,503

85-89 22,519 25,459,640 9,404,947 1,157,887 457,389

90-94 8,675 10,000,598 2,590,227 534,053 196,525

95 & over 1,965 1,902,824 430,666 108,436 42,509

Total 190,148 $ 280,827,344 $ 135,885,035 $ 3,876,843 $ 4,114,749

2. Employee disability annuitants

Under 40 216 $ 354,118 $ 22,368 $ - $ -

40-44 421 697,228 107,026 - -

45-49 930 1,574,878 356,636 - -

50-54 5,596 10,224,601 3,480,599 - -

55-59 16,680 30,214,465 11,533,116 - -

60-64 22,266 38,757,673 14,802,853 152 229,250

65-69 15,072 24,408,176 9,095,352 21,259 236,387

70-74 9,112 13,600,091 5,093,199 93,171 161,490

75-79 6,587 9,102,236 3,199,104 163,468 131,464

80-84 5,237 6,638,003 2,108,007 219,555 119,513

85-89 2,340 2,696,985 593,078 123,541 47,714

90-94 679 692,468 112,994 35,136 12,842

95 & over 124 96,808 12,056 5,788 1,701

Total 85,260 $ 139,057,730 $ 50,516,388 $ 662,070 $ 940,361

3. Spouse annuitants

Under 60 1,355 $ 1,218,661 $ 618,375 $ - $ -

60-64 30,666 22,573,224 14,984,698 - -

65-69 32,996 16,721,167 12,297,822 - -

70-74 25,973 9,974,771 8,177,489 - -

75-79 21,775 8,171,914 6,019,582 - -

80-84 16,083 6,318,832 3,913,754 - -

85-89 7,360 2,736,066 1,536,842 217 -

90-94 1,661 603,765 292,381 34,340 -

95 & over 147 38,287 22,602 7,099 -

Total 138,016 $ 68,356,687 $ 47,863,545 $ 41,656 $ -

a

 Includes annuities which were in withheld status as of December 31, 2010.

 Therefore, these figures may disagree with other published data.

b

 Amounts shown reflect benefits paid in January 2011.

c

 Age attained in 2010.
86

Table S-39. Census of survivor annuitants on December 31, 2010a

Monthly benefitsb

Agec Number Tier 1 Tier 2 Vested dual

1. Aged widows and widowersd

60-64 5,411 $ 7,214,236 $ 2,420,017 $ -

65-69 8,854 10,865,742 3,162,565 -

70-74 12,905 13,711,874 4,421,574 -

75-79 20,098 20,492,642 6,263,394 -

80-84 28,825 29,664,236 7,539,373 -

85-89 28,289 28,546,617 5,873,048 100

90-94 16,769 15,927,830 2,662,362 37,167

95 & over 6,333 4,635,435 818,426 40,531

Total 127,484 $ 131,058,612 $ 33,160,759 $ 77,798

2. Other survivorse

0-4 57 $ 61,752 $ 3,519 $ -

5-9 290 324,971 23,340 -

10-14 722 824,863 68,053 -

15-19 982 1,207,097 126,027 -

20-24 119 135,442 13,809 -

25-29 188 210,603 23,401 -

30-34 260 286,201 37,310 -

35-39 423 426,522 61,039 -

40-44 614 589,255 105,425 -

45-49 1,104 1,006,373 177,735 -

50-54 1,601 1,421,371 324,969 -

55-59 2,205 1,933,582 446,637 -

60-64 2,243 1,903,859 389,102 -

65-69 1,848 1,452,881 230,940 -

70-74 1,326 1,003,936 145,440 -

75-79 1,010 712,846 104,592 148

80-84 736 494,790 77,226 1,963

85-89 430 259,663 46,893 4,206

90-94 166 96,140 18,020 2,013

95 & over 22 14,132 2,604 147

Total 16,346 $ 14,366,279 $ 2,426,081 $ 8,477

a

 Includes annuities which were in withheld status as of December 31, 2010.

 Therefore, these figures may disagree with other published data.

b

 Amounts shown reflect benefits paid in January 2011.

c

 Age attained in 2010.

d

 Includes divorced and remarried aged widows and widowers, and parents.

e

 Includes disabled widows and widowers, remarried and divorced disabled widows

 and widowers, widowed mothers and fathers, remarried and divorced widowed

 mothers and fathers, minor children, student children and disabled children.
Table S-40. Comparison of service months of railroad employees during calendar years 2006-2008 with assumptions used in the 25th valuation

(For employees not separated in the year)

Years 25th

of Service months by attained age Service months by calendar year valuation

servicea Under 25 25-34 35-44 45-54 55 & over Total 2006 2007 2008 Total assumption

0 6.4 6.7 6.7 6.7 6.7 6.6 6.7 6.9 6.4 6.6 6.6 

1 11.3 11.6 11.6 11.6 11.4 11.6 11.6 11.5 11.5 11.6 11.6 

2 11.6 11.7 11.7 11.7 11.5 11.7 11.7 11.6 11.6 11.7 11.7 

3 11.7 11.7 11.7 11.7 11.6 11.7 11.7 11.7 11.7 11.7 11.7 

4 11.8 11.7 11.8 11.7 11.6 11.7 11.7 11.7 11.8 11.7 11.7 

5 11.9 11.7 11.8 11.7 11.7 11.7 11.7 11.7 11.8 11.7 11.7 

6 11.7 11.7 11.7 11.7 11.6 11.7 11.7 11.7 11.8 11.7 11.7 

7 11.8 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 

8 11.8 11.7 11.7 11.6 11.7 11.8 11.7 11.8 11.7 11.7 

9 11.8 11.8 11.7 11.7 11.8 11.8 11.8 11.8 11.8 11.8 

10 11.8 11.8 11.7 11.7 11.8 11.7 11.8 11.8 11.8 11.8 

11 11.8 11.8 11.7 11.7 11.8 11.7 11.8 11.8 11.8 11.8 

12 11.8 11.8 11.7 11.7 11.8 11.8 11.8 11.8 11.8 11.8 

13 11.9 11.8 11.7 11.7 11.8 11.8 11.8 11.8 11.8 11.8 

14 11.9 11.8 11.7 11.7 11.8 11.7 11.8 11.8 11.8 11.8 

15 11.8 11.8 11.7 11.7 11.8 11.8 11.8 11.8 11.8 11.8 

16 12.0 11.8 11.7 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

17 11.9 11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

18 11.9 11.8 11.7 11.8 11.8 11.8 11.8 11.8 11.8 

19 11.9 11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

20 11.9 11.8 11.7 11.8 11.8 11.8 11.8 11.8 11.8 

21 11.9 11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

22 11.9 11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

23 11.9 11.9 11.8 11.8 11.8 11.8 11.9 11.8 11.8 

24 11.9 11.8 11.8 11.8 11.8 11.8 11.9 11.8 11.8 

25 12.0 11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

26 11.8 11.9 11.8 11.9 11.9 11.9 11.9 11.9 11.9 

27 11.9 11.8 11.9 11.9 11.9 11.9 11.9 11.9 

28 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 

29 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 

30 & over 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 

a

 Rounded up to nearest whole year.
 88

Table S-41. Average creditablea compensation per service month during 2010

Years

of

serviceb Tier 1 Tier 2

0 $3,495 $3,466 

1 4,300 4,202 

2 4,584 4,463 

3 4,811 4,666 

4 4,931 4,799 

5 5,113 4,972 

6 5,371 5,199 

7 5,567 5,336 

8 5,720 5,391 

9 5,708 5,371 

10 5,681 5,353 

11 5,807 5,444 

12 5,911 5,557 

13 6,021 5,598 

14 5,969 5,549 

15 6,119 5,647 

16 6,151 5,650 

17 5,955 5,479 

18 5,844 5,426 

19 5,929 5,444 

20 6,036 5,547 

21 6,164 5,595 

22 6,127 5,589 

23 6,080 5,520 

24 6,090 5,508 

25 6,079 5,502 

26 6,128 5,555 

27 5,904 5,432 

28 5,920 5,454 

29 6,000 5,512 

30 6,148 5,604 

a

 Maximum creditable annual compensation during 2010 was $106,800 and $79,200

 for tier 1 and tier 2, respectively.

b

 Completed service at beginning of year rounded up to nearest whole year.
89

Table S-42. Age distribution of new entrants during calendar years 2006-2009

 and comparison with assumptions of the 24th valuation

Age at Year of entry 24th Val.

entrya 2006 2007 2008 2009 2006-09b 2003-06

All ages

 Number 23,181 17,545 17,843 6,120 64,689 80,310 

 Percent 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Under 20 2.8% 2.8% 2.6% 2.6% 2.7% 2.6%

20-24 20.7 20.4 20.3 18.6 20.3 20.0 

25-29 21.4 21.5 21.1 19.7 21.2 21.2 

30-34 17.1 16.3 16.4 14.0 16.4 17.4 

35-39 14.7 14.1 14.3 13.3 14.3 14.4 

40-44 10.8 11.1 11.1 11.1 11.0 11.7 

45-49 7.1 7.6 7.6 10.0 7.6 7.4 

50-54 3.6 3.9 4.2 6.1 4.1 3.6 

55 & over 1.9 2.3 2.4 4.5 2.4 1.8 

Average age

 at entry 32.5 32.8 33.0 34.5 32.9 32.7 

Median age

 at entry 30.9 31.0 31.2 32.4 31.1 31.2 

a

 Age attained in the year of entry (year of entry minus year of birth).

b

 Used in 25th valuation.
 90

Table S-43. Family characteristics of railroad employees who died in 2006-2009 with a current connection

Widow Widow Widow Youngest Youngest Youngest

Age of Number age age under child child child Minor Disabled

employeea of deathsb Total 62 & over 60-61 age 60 under 16 age 16-17 disabled child child

Under 35 43 69.8 - - 69.8 48.8 - - 79.1 -

35 - 39 88 71.6 - - 71.6 60.2 2.3 - 88.6 -

40 - 44 100 75.0 - - 75.0 57.0 6.0 - 84.0 -

45 - 49 197 66.0 0.7 - 65.3 28.3 8.6 0.5 56.3 1.5

50 - 54 665 65.1 1.7 1.2 62.2 15.5 5.2 1.2 27.1 2.3

55 - 59 1,484 67.1 4.2 3.2 59.7 4.9 1.8 1.3 9.8 1.9

60 - 64 2,334 69.4 17.6 15.4 36.4 2.3 1.1 0.7 4.8 1.5

65 - 69 2,723 70.8 51.8 7.9 11.1 0.5 0.2 0.2 1.5 1.2

70 - 74 3,500 69.7 62.9 2.3 4.5 0.2 0.2 0.2 0.6 1.4

75 - 79 6,493 67.3 65.0 0.8 1.5 0.1 - 0.1 0.4 1.0

80 - 84 10,299 60.1 59.0 0.4 0.7 - - - 0.2 0.8

85 - 89 10,577 51.6 51.1 0.1 0.4 0.1 - - 0.1 0.7

90 & over 9,280 34.8 34.5 0.1 0.2 - - - - 0.5

Average

Widow Widow Widow Youngest Youngest Youngest Youngest All All number

Age of age age under child child child child minor disabled of minor

employeea 62 & over 60-61 age 60 under 16 age 16-17 disabled under 16c children children childrend

Under 35 e e 31.3 30.8 e e 4.1 5.5 e 1.9

35 - 39 e e 36.5 36.6 e e 7.2 8.8 e 2.1

40 - 44 e e 40.7 39.7 e e 9.0 10.2 e 1.8

45 - 49 e e 45.9 43.7 47.5 e 10.2 10.5 e 1.6

50 - 54 64.1 61.3 50.3 46.9 49.0 51.9 11.6 11.9 26.0 1.4

55 - 59 65.6 60.8 54.1 48.8 49.5 53.8 11.0 12.1 27.5 1.4

60 - 64 64.8 61.0 55.4 48.5 53.2 55.7 12.0 12.2 29.8 1.2

65 - 69 66.2 61.1 55.3 51.0 e e 12.2 12.7 35.9 1.2

70 - 74 69.7 61.0 54.8 48.6 e e 8.6 12.2 39.9 1.2

75 - 79 74.2 60.9 54.5 49.1 e e 9.4 11.4 43.6 1.6

80 - 84 78.6 61.0 54.4 e e e e 12.5 47.8 1.3

85 - 89 82.6 61.0 55.4 e e e e 12.5 50.8 1.2

90 & over 86.6 e 53.9 e e e e e 56.6 e

a

 Age nearest birthday at time of death.

b

 Includes employees with 120 or more service months and employees with 60 or more service months after 1995.

c

 Includes families with widows under 60 and children under 16 only.

d

 Includes families with minor children only.

e

 Insufficient data.

Average ages of widows

Widow under 60 with

eligible child Average ages of children

Percent married

Widow under 60 with

eligible child Percent with

eligible child
91

Table S-44. Selected employment and benefita statistics for 2007 and 2010

Percentage

2007 2010 change

1. Membership (thousands of employees)

Average employment for the year 237 221 -6.8%

Active census, Dec. 31 258 238 -7.8 

Retired, Dec. 31 279 275 -1.4 

 Nonretired employees with vested rightsb

, total 236 229 -3.0 

Active census, Dec. 31 179 179 +0.0 

Inactive census, Dec. 31 57 50 -12.3 

 Employees in active census with

30 or more years of service 51 46 -9.8 

2. Number of beneficiaries (thousands), Dec. 31, totalc 571 551 -3.5 

Retired employees 279 275 -1.4 

Spouses 139 138 -0.7 

Survivors 160 144 -10.0 

3. Average monthly benefits paid in December

Retired employees $1,980.60 $2,217.89 +12.0 

Spouses 734.77 842.38 +14.6 

Survivors 1,128.04 1,259.11 +11.6 

4. Amount of monthly benefit payments for the year (millions), total $9,783 $10,742 +9.8 

Retired employees and their spouses 7,624 8,560 +12.3 

Survivors 2,159 2,182 +1.1 

5. Miscellaneous information

Tier 1 taxable payroll as a percentage of total payroll 92.9% 94.5%

Benefit payments in year as a percentage of tier 1 taxable payroll 62.7% 69.8%

Number of beneficiaries per 100 full-time employees 241 249

Percentage distribution of amount of monthly benefit payments in year

 Retired employees 65.9 67.1

 Spouses 12.0 12.5

 Survivors 22.1 20.3

a

 Includes tier 1, tier 2 and vested dual benefit payments. Excludes supplemental annuities.

b

 Employees with at least 10 years of total service, or 5 years of service after 1995.

c

 Individuals receiving more than one type of benefit (for example, an employee and a spouse benefit) are

 counted separately in each category but only once in total.