Twenty-Sixth

Actuarial Valuation

of the Assets and Liabilities

Under the Railroad Retirement Acts

as of December 31, 2013

with

Technical Supplement

U.S. Railroad Retirement Board

Bureau of the Actuary

Chicago, Illinois
Twenty-Sixth Actuarial Valuation

of the Assets and Liabilities

Under the Railroad Retirement Acts

as of December 31, 2013

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

September 2015

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, 2014 28

Technical Supplement

General Methodology and Assumptions 37

Mortality, Remarriage, and Related Experience 58

Retirement Studies 73

Withdrawal Studies 80

Employee and Beneficiary Censuses, Family Composition, and Miscellaneous Statistics 83
ii

TABLES

1. Employment and economic assumptions 14

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

 Retirement Account, and the 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, 2013 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, 1937-2015 27

S-1. 2010 Base Year RRB Annuitants Mortality Table 43

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

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

S-4. 2009 RRB Active Service Mortality Table 46

S-5. 2010 Base Year RRB Spouse Total Termination Table 47

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

S-7. 2013 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. 2013 RRB Mortality Improvement Scale 52

S-11. Calendar year rates of immediate age retirement 53

S-12. Rates of immediate disability retirement and of eligibility for disability freeze 54

S-13. Calendar year rates of final withdrawal 55

S-14. Service months and salary scales 56

S-15. Family characteristics of railroad employees assumed for the valuation of survivor 57

 benefits
iii

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

 in 2009 and 2012, by sex and type of retirement 59

S-17. Mortality experience of railroad age annuitants between anniversaries of retirement

 in 2009 and 2012, by year 60

S-18. Mortality ratios for railroad age annuitants on a select and ultimate basis between

 anniversaries of retirement in 2009 and 2012 61

S-19. Age specific death rates of railroad disability annuitants between anniversaries of

 retirement in 2009 and 2012, by age and duration 62

S-20. Mortality experience of railroad disability annuitants between anniversaries of

 retirement in 2009 and 2012, by disability freeze status 63

S-21. Percentages of railroad disability annuitants included in the 26th valuation mortality studies 

 who would have qualified for a benefit under the social security disability standards 64

S-22. Mortality experience of active railroad employees during calendar years 2007-2011 65

S-23. Total termination experience of spouse annuitants between anniversaries of retirement

 in 2009 and 2012 66

S-24. Mortality experience of spouse annuitants between anniversaries of retirement

 in 2009 and 2012 67

S-25. Number of retired employees and number with a spouse eligible for railroad retirement

 benefits, by age of employee on December 31, 2012 68

S-26. Mortality experience of widow annuitants between anniversaries of retirement

 in 2009 and 2012 69

S-27. Remarriage experience of widows between 2000 and 2012 anniversaries of widowhood 70

S-28. Total termination experience of disabled children annuitants between anniversaries of

 retirement in 2009 and 2012 71

S-29. Improvement in annuitant mortality and spouse total termination 72

S-30. Rates of immediate age retirement 74

S-31. Immediate age retirement experience of railroad employees with 5-29 years of

 service during calendar years 2010-2012 75

S-32. Immediate age retirement experience of railroad employees with 30 or more years of

 service during calendar years 2010-2012 76

S-33. Rates of immediate disability retirement 77

S-34. Immediate disability retirement experience of railroad employees during calendar

 years 2010-2012 78

S-35. Percentages of immediate disability retirements meeting the disability freeze standards

 of the Social Security Act 79

S-36 Withdrawal experience of railroad employees during calendar years 2008-2011, 

 by attained age and years of service 81
iv

S-37. Distribution of 2013 active employees by age and completed years of service 84

S-38. Census of vested inactive employees in 2013 by age and completed years of service 85

S-39. Comparison between 2013 and 2010 of selected characteristics of active railroad

 employees 86

S-40. Census of employee and spouse annuitants on December 31, 2013 87

S-41. Census of survivor annuitants on December 31, 2013 88

S-42. Comparison of service months of railroad employees during calendar years 2009-2011

 with assumptions used in the 26th valuation 89

S-43. Average creditable compensation per service month during 2013 90

S-44. Age distribution of new entrants during calendar years 2009-2012 and comparison with

 assumptions of the 25th valuation 91

S-45. Family characteristics of railroad employees who died in 2009-2012 with a current

 connection 92

S-46. Selected employment and benefit statistics for 2010 and 2013 93
v
vi
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 26th actuarial valuation, is intended to meet these three requirements for 2015. 

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 (page 34 item 36) to automatically adjust 

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

The 25th valuation (2012 actuarial report) projected a surplus of 0.42 percent of tier 2 payroll and an 

average tier 2 tax rate of 19.70 percent under the intermediate employment assumption. Favorable 

employment and investment experience have combined to produce higher initial trust fund balances 

which in turn have produced generally lower tier 2 taxes due to the tier 2 tax rate schedule. The 

average tier 2 tax rate has decreased to 18.20 percent, and the surplus has decreased to 0.37 percent 

of tier 2 payroll. The combined effect of a 1.50 percent of payroll decrease in projected future tier 2 
 

 

 

 

 

 

 

 

 

 

 

2 

tax rates net of a 0.05 percent of payroll decrease in projected surplus results in an overall 

improvement equal to 1.45 percent of tier 2 payroll. 

The 26th 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 25th 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 16.09 percent, and an

actuarial surplus of 0.47 percent of tier 2 payroll exists as of December 31, 2013. There are

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

ranges from 12.0% to 18.0%.

2.	 Under employment assumption II, the average tier 2 tax rate is 18.20 percent, and an

actuarial surplus of 0.37 percent of tier 2 payroll exists as of December 31, 2013. There are

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

ranges from 16.0% to 23.0%.

3.	 Under employment assumption III, the average tier 2 tax rate is 20.47 percent, and an

actuarial deficiency of 0.19 percent of tier 2 payroll exists as of December 31, 2013. Cash

flow problems arise in 2047 and remain to the end of the 75-year projection period. The tier

2 payroll tax rate ranges from 18.0% 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, 2014. The surplus or deficiency figures given above 

and illustrated in Table 6 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 32 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) 

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. 
 

 

 

 

 

 

3 

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 32 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 28, 2015, 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: 

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
 

 

 

 

 

 

 

 

 

4 

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 many 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. 

Before applicable reductions, the tier 2 benefit for spouses and survivors is a specified percentage of 

the employee's tier 2 benefit. The Appendix lists the percentages and also describes the 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 

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

in the 30 months preceding retirement. 
 

 

 

 

 

 

5 

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. There is no limit to earnings subject

to the hospital insurance portion of the tier 1 tax rate. Beginning in 2013, employees pay an

additional 0.9 percent on earnings above $200,000 (for those who file an individual return)

or $250,000 (for those who file a joint return).

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 2015 earnings limits are $118,500 and $88,200 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 2012 through September 2013 (fiscal year 2013) took place in June

2014. 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 242,000 in 2014 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 2014 under the employment assumptions contained in the 

2014 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 46,000, 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 

and cost-of-living increase assumptions have been lowered from 3.8% and 2.8% in the 25th

valuation to 3.7% and 2.7%, respectively, in the 26th valuation. Table 1. Employment and 

economic assumptions shows the assumptions used in the 26th 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 25th 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 2014-2088. 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, 

2013, 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 2014-2088. 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 generally increases throughout the 

projection period. The combined employer and employee tier 2 tax rate remains at 18% through 

2035, decreases to 12.0% in 2046 and remains between 12.0% and 14.0% thereafter. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 

Under employment assumption II, the combined account balance is generally increasing with some 

declines primarily in 2047 through 2055. The combined employer and employee tier 2 tax rate 

remains at 18% through 2050, increases to 23% in 2063-2064, and then generally decreases until 

reaching 16.0% in 2088. 

Under employment assumption III, the combined account balance declines after 2016 until the 

balance becomes negative in 2047. 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 2083 (not shown) and then decreases through 

the end of the projection period, when the balance reaches -$95,110 million. The combined 

employer and employee tier 2 tax rate increases to 27% in 2040 and remains at that level through 

the end of the projection period. Under this assumption, the tax rate mechanism does not 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, 2013. 

This table derives the balance in the accounts as of December 31, 2013. No accrual adjustments are 

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

January 2, 2014, because these amounts are included in the projected future cash flows. For the 

purpose of the present value calculations, an adjustment is made 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, 

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 
 

 

 

 

 

 

 

 

 

 

11 

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 2014 was approximately 5.5%, 

this rate is not used in the present value calculations. Instead, the present value calculations use 

7.0% as the rate for 2014, as well as for the remaining 74 years of the projection. The adjusted 

balance as of December 31, 2013, is calculated so that, assuming a 7.0% rate of return for 2014, the 

combined RRA, NRRIT, and SSEBA balance projected on December 31, 2014, 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 $63,686 million, or 20.66 

percent of payroll, whereas the cost under employment assumption I is $72,633 million, or 15.62 

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

dollars between the two valuations is 14.05 percent. As a percentage of payroll, the percentage cost 

variation is 24.39 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. 

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 
 

 

 

 

 

 

 

 

 

12 

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, 2013, 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 normal cost rate is 7.41% of tier 2 payroll. 

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. The unfunded accrued liability (line 8) is the difference 

between the accrued liability and the funds on hand as of December 31, 2013 (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. 

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 2016 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 

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 14
 

Table 1. Employment and economic assumptions 

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

year I II III Earnings Cost of livinga return 

2014 242 242 242 3.7% 1.5% b 5.5% b 

2015 241 238 234 3.7 1.7 b 7.0 

2016 240 234 227 3.7 0.5 7.0 

2017 239 230 220 3.7 1.6 7.0 

2018 238 227 214 3.7 2.7 7.0 

2019 237 223 207 3.7 2.7 7.0 

2020 236 219 201 3.7 2.7 7.0 

2021 235 216 195 3.7 2.7 7.0 

2022 234 213 189 3.7 2.7 7.0 

2023 233 209 184 3.7 2.7 7.0 

2024 232 206 178 3.7 2.7 7.0 

2025 231 203 173 3.7 2.7 7.0 

2026 230 200 168 3.7 2.7 7.0 

2027 229 197 163 3.7 2.7 7.0 

2028 229 194 158 3.7 2.7 7.0 

2029 228 191 153 3.7 2.7 7.0 

2030 227 188 149 3.7 2.7 7.0 

2031 226 185 144 3.7 2.7 7.0 

2032 225 182 140 3.7 2.7 7.0 

2033 224 179 136 3.7 2.7 7.0 

2034 223 177 132 3.7 2.7 7.0 

2035 222 174 128 3.7 2.7 7.0 

2036 221 172 124 3.7 2.7 7.0 

2037 221 169 121 3.7 2.7 7.0 

2038 220 167 118 3.7 2.7 7.0 

2039 219 164 115 3.7 2.7 7.0 

2040 218 162 113 3.7 2.7 7.0 

2041 217 160 110 3.7 2.7 7.0 

2042 216 158 108 3.7 2.7 7.0 

2043 216 156 106 3.7 2.7 7.0 

2044 215 154 104 3.7 2.7 7.0 

2045 214 152 102 3.7 2.7 7.0 

2046 214 151 100 3.7 2.7 7.0 

2047 213 150 99 3.7 2.7 7.0 

2048 213 148 97 3.7 2.7 7.0 

2049 212 147 96 3.7 2.7 7.0 

2050 212 146 95 3.7 2.7 7.0 

2051 211 145 94 3.7 2.7 7.0 

2052 211 144 93 3.7 2.7 7.0 

2053 210 143 92 3.7 2.7 7.0 

2054 210 142 91 3.7 2.7 7.0 

2055 210 142 90 3.7 2.7 7.0 

2056 210 141 90 3.7 2.7 7.0 

2057 209 140 89 3.7 2.7 7.0 

2058 209 140 89 3.7 2.7 7.0 

2059 209 140 88 3.7 2.7 7.0 

2060 209 139 88 3.7 2.7 7.0 

2061 209 139 88 3.7 2.7 7.0 

2062 209 139 88 3.7 2.7 7.0 

2063 209 139 88 3.7 2.7 7.0 

2064-2088 209 139 88 3.7 2.7 7.0 

a

 Page 31 item 16. 

b

 Actual. 
Figure 1. Average Railroad Employment 1937 -2088, Historical and Projected 

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 

50,000 

1937 1947 1957 1967 1977 1987 1997 2007 2017 2027 2037 2047 2057 2067 2077 2087
 

Calendar Year 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 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 expense e end year end year 

2015 5.08 6.00 18.0% $5,389 $3,630 $2,108 $26,973 $7,111 $3,283 $3,753 $885 $27,858 

2016 4.99 5.80 18.0% 5,500 3,750 1,939 27,162 7,206 3,401 3,817 897 28,059 

2017 4.91 5.50 18.0% 5,608 3,877 1,837 27,268 7,377 3,529 3,643 691 27,959 

2018 4.84 5.20 18.0% 5,718 4,009 1,845 27,404 7,626 3,666 4,079 809 28,213 

2019 4.79 5.10 18.0% 5,811 4,144 1,856 27,593 7,877 3,809 4,197 939 28,532 

2020 4.78 5.00 18.0% 5,891 4,283 1,941 27,927 8,116 3,957 4,230 1,010 28,937 

2021 4.78 5.00 18.0% 5,956 4,427 1,898 28,296 8,341 4,112 4,196 976 29,272 

2022 4.83 5.00 18.0% 6,009 4,574 1,987 28,848 8,552 4,271 4,369 1,064 29,912 

2023 4.91 5.00 18.0% 6,063 4,725 2,101 29,611 8,748 4,433 4,340 1,088 30,699 

2024 5.00 5.00 18.0% 6,125 4,878 2,163 30,527 8,937 4,597 4,363 1,112 31,639 

2025 5.10 4.90 18.0% 6,193 5,033 2,120 31,488 9,126 4,763 4,386 1,135 32,623 

2026 5.23 4.90 18.0% 6,263 5,192 2,307 32,725 9,317 4,919 4,422 1,159 33,884 

2027 5.39 5.00 18.0% 6,341 5,355 2,400 34,140 9,512 5,078 4,457 1,183 35,323 

2028 5.56 5.00 18.0% 6,435 5,522 2,505 35,732 9,712 5,240 4,497 1,208 36,940 

2029 5.73 5.10 18.0% 6,548 5,692 2,621 37,497 9,921 5,403 4,545 1,234 38,731 

2030 5.91 5.20 18.0% 6,674 5,867 2,749 39,439 10,140 5,570 4,597 1,261 40,700 

2031 6.10 5.30 18.0% 6,809 6,048 2,851 41,529 10,370 5,743 4,655 1,289 42,818 

2032 6.31 5.40 18.0% 6,939 6,235 3,041 43,864 10,615 5,924 4,722 1,320 45,184 

2033 6.56 5.60 18.0% 7,060 6,429 3,209 46,443 10,880 6,113 4,799 1,353 47,796 

2034 6.82 5.70 18.0% 7,205 6,630 3,395 49,263 11,155 6,308 4,881 1,387 50,650 

2035 7.07 5.90 18.0% 7,389 6,834 3,598 52,306 11,436 6,504 4,966 1,421 53,727 

2036 7.28 6.10 17.0% 7,583 6,686 3,796 55,206 11,730 6,709 5,057 1,458 56,664 

2037 7.49 6.30 17.0% 7,784 6,896 4,009 58,327 12,039 6,922 5,155 1,496 59,823 

2038 7.66 6.50 16.0% 8,005 6,728 4,217 61,266 12,359 7,142 5,256 1,536 62,802 

2039 7.83 6.70 16.0% 8,232 6,941 4,426 64,401 12,699 7,372 5,369 1,578 65,979 

2040 7.98 7.00 15.0% 8,444 6,755 4,634 67,346 13,057 7,617 5,485 1,623 68,969 

2041 8.12 7.20 15.0% 8,692 6,973 4,844 70,471 13,425 7,868 5,603 1,668 72,139 

2042 8.23 7.40 15.0% 8,976 7,197 5,065 73,756 13,818 8,124 5,742 1,717 75,473 

2043 8.32 7.60 14.0% 9,252 6,983 5,281 76,768 14,235 8,399 5,888 1,769 78,537 

2044 8.39 7.70 14.0% 9,553 7,214 5,494 79,924 14,682 8,683 6,054 1,824 81,748 

2045 8.45 7.90 14.0% 9,878 7,453 5,714 83,213 15,171 8,977 6,255 1,885 85,098 

2046 8.44 8.00 12.0% 10,192 6,710 5,910 85,640 15,695 9,293 6,467 1,950 87,590 

2047 8.36 8.10 12.0% 10,606 6,940 6,082 88,056 16,223 9,612 6,677 2,016 90,072 

2048 8.20 8.20 12.0% 11,129 7,179 6,250 90,356 16,753 9,931 6,887 2,081 92,437 

2049 8.08 8.30 12.0% 11,544 7,425 6,401 92,639 17,393 10,281 7,191 2,161 94,800 

2050 8.04 8.30 12.0% 11,878 7,680 6,560 95,000 18,118 10,657 7,551 2,251 97,251 

2051 8.01 8.30 12.0% 12,229 7,951 6,739 97,461 18,817 11,056 7,848 2,338 99,799 

2052 7.94 8.30 12.0% 12,679 8,235 6,918 99,936 19,507 11,462 8,130 2,424 102,360 

2053 7.81 8.30 12.0% 13,225 8,530 7,095 102,336 20,191 11,872 8,405 2,509 104,845 

2054 7.71 8.20 12.0% 13,677 8,833 7,259 104,750 20,973 12,311 8,758 2,606 107,356 

2055 7.66 8.20 12.0% 14,078 9,145 7,431 107,248 21,823 12,774 9,154 2,711 109,959 

2056 7.61 8.10 12.0% 14,516 9,472 7,620 109,824 22,648 13,254 9,497 2,814 112,638 

2057 7.56 8.00 12.0% 14,984 9,813 7,809 112,462 23,490 13,751 9,843 2,918 115,380 

2058 7.57 7.90 14.0% 15,479 11,674 8,057 116,715 24,353 14,265 10,195 3,026 119,741 

2059 7.61 7.90 14.0% 15,979 12,095 8,364 121,195 25,248 14,800 10,559 3,137 124,332 

2060 7.67 7.80 14.0% 16,487 12,532 8,688 125,927 26,173 15,356 10,932 3,252 129,179 

2061 7.72 7.80 14.0% 17,019 12,986 9,031 130,925 27,117 15,932 11,302 3,369 134,294 

2062 7.78 7.70 14.0% 17,571 13,457 9,391 136,202 28,094 16,531 11,685 3,491 139,693 

2063 7.84 7.70 14.0% 18,145 13,947 9,771 141,775 29,105 17,153 12,078 3,616 145,391 

2064 7.91 7.70 14.0% 18,738 14,456 10,173 147,666 30,144 17,798 12,475 3,745 151,411 

2065 7.98 7.70 14.0% 19,354 14,984 10,597 153,893 31,217 18,467 12,883 3,878 157,771 

2070 8.27 8.00 12.0% 22,880 15,606 13,005 188,196 37,182 22,196 15,145 4,619 192,815 

2075 8.13 8.20 12.0% 27,178 18,690 15,198 219,789 44,361 26,669 17,885 5,511 225,300 

2080 7.94 8.20 12.0% 32,489 22,401 17,736 256,215 53,089 32,039 21,284 6,595 262,810 

2085 7.66 8.00 12.0% 39,014 26,868 20,587 296,873 63,787 38,501 25,573 7,924 304,797 

2088 7.76 7.90 14.0% 43,614 34,445 23,227 337,254 71,329 42,994 28,662 8,861 346,115 

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. 

 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. 

c
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 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 expense e end year end year 

2015 5.07 6.00 18.0% $5,389 $3,609 $2,107 $26,951 $7,111 $3,265 $3,772 $885 $27,836 

2016 4.98 5.80 18.0% 5,500 3,689 1,935 27,075 7,206 3,348 3,870 897 27,972 

2017 4.88 5.50 18.0% 5,608 3,776 1,827 27,071 7,377 3,440 3,731 691 27,762 

2018 4.79 5.20 18.0% 5,717 3,867 1,826 27,047 7,626 3,540 4,205 809 27,856 

2019 4.70 5.10 18.0% 5,810 3,956 1,824 27,018 7,877 3,642 4,364 938 27,956 

2020 4.65 5.00 18.0% 5,889 4,048 1,892 27,069 8,116 3,748 4,440 1,010 28,079 

2021 4.59 5.00 18.0% 5,953 4,141 1,828 27,084 8,341 3,856 4,451 976 28,060 

2022 4.57 4.90 18.0% 6,006 4,235 1,889 27,202 8,551 3,965 4,674 1,064 28,266 

2023 4.57 4.90 18.0% 6,058 4,328 1,971 27,444 8,746 4,075 4,695 1,088 28,532 

2024 4.57 4.80 18.0% 6,118 4,423 1,994 27,743 8,933 4,185 4,771 1,111 28,854 

2025 4.56 4.80 18.0% 6,184 4,515 1,906 27,980 9,120 4,293 4,850 1,134 29,114 

2026 4.58 4.70 18.0% 6,251 4,608 2,040 28,377 9,308 4,388 4,943 1,158 29,535 

2027 4.59 4.70 18.0% 6,325 4,703 2,072 28,827 9,497 4,484 5,037 1,181 30,008 

2028 4.61 4.70 18.0% 6,415 4,797 2,106 29,316 9,691 4,578 5,137 1,205 30,521 

2029 4.61 4.60 18.0% 6,524 4,892 2,143 29,827 9,892 4,671 5,246 1,230 31,057 

2030 4.61 4.60 18.0% 6,643 4,989 2,181 30,353 10,101 4,765 5,362 1,256 31,609 

2031 4.60 4.60 18.0% 6,771 5,088 2,180 30,851 10,318 4,861 5,484 1,283 32,134 

2032 4.60 4.60 18.0% 6,893 5,190 2,256 31,403 10,548 4,961 5,616 1,311 32,714 

2033 4.61 4.60 18.0% 7,004 5,295 2,296 31,990 10,795 5,067 5,759 1,342 33,332 

2034 4.61 4.60 18.0% 7,137 5,402 2,340 32,595 11,050 5,172 5,909 1,374 33,969 

2035 4.59 4.60 18.0% 7,307 5,510 2,384 33,183 11,305 5,276 6,061 1,405 34,588 

2036 4.56 4.70 18.0% 7,484 5,622 2,421 33,742 11,569 5,385 6,217 1,438 35,180 

2037 4.52 4.60 18.0% 7,665 5,738 2,467 34,282 11,844 5,497 6,380 1,472 35,754 

2038 4.48 4.60 18.0% 7,864 5,856 2,506 34,780 12,123 5,612 6,545 1,506 36,286 

2039 4.42 4.60 18.0% 8,064 5,980 2,541 35,237 12,416 5,732 6,721 1,543 36,780 

2040 4.38 4.60 18.0% 8,247 6,113 2,576 35,678 12,721 5,864 6,895 1,581 37,259 

2041 4.32 4.60 18.0% 8,461 6,250 2,608 36,075 13,026 5,997 7,067 1,618 37,693 

2042 4.24 4.60 18.0% 8,708 6,391 2,636 36,394 13,350 6,132 7,258 1,658 38,052 

2043 4.16 4.50 18.0% 8,942 6,545 2,659 36,657 13,690 6,282 7,450 1,701 38,358 

2044 4.07 4.50 18.0% 9,196 6,705 2,678 36,843 14,051 6,438 7,658 1,745 38,588 

2045 3.97 4.40 18.0% 9,470 6,870 2,690 36,933 14,442 6,598 7,892 1,794 38,727 

2046 3.87 4.40 18.0% 9,723 7,051 2,698 36,959 14,853 6,778 8,127 1,845 38,804 

2047 3.73 4.30 18.0% 10,069 7,240 2,703 36,833 15,256 6,956 8,349 1,895 38,728 

2048 3.56 4.20 18.0% 10,495 7,433 2,693 36,464 15,648 7,133 8,564 1,943 38,407 

2049 3.41 4.10 18.0% 10,781 7,639 2,660 35,983 16,142 7,339 8,864 2,005 37,988 

2050 3.30 4.00 18.0% 10,981 7,856 2,629 35,486 16,693 7,566 9,196 2,073 37,559 

2051 3.22 3.90 19.0% 11,200 8,498 2,627 35,411 17,189 7,809 9,441 2,134 37,545 

2052 3.13 3.80 19.0% 11,511 8,757 2,631 35,288 17,661 8,054 9,666 2,193 37,481 

2053 3.02 3.70 19.0% 11,892 9,023 2,629 35,048 18,116 8,299 9,873 2,249 37,297 

2054 2.93 3.60 19.0% 12,144 9,304 2,611 34,818 18,654 8,571 10,150 2,316 37,134 

2055 2.87 3.50 19.0% 12,341 9,595 2,604 34,677 19,232 8,860 10,444 2,388 37,065 

2056 2.84 3.40 20.0% 12,576 10,377 2,631 35,109 19,755 9,160 10,659 2,452 37,561 

2057 2.83 3.20 20.0% 12,831 10,715 2,674 35,667 20,276 9,472 10,868 2,517 38,184 

2058 2.82 3.20 20.0% 13,100 11,067 2,726 36,359 20,799 9,795 11,069 2,582 38,941 

2059 2.83 3.10 20.0% 13,358 11,434 2,786 37,221 21,335 10,133 11,269 2,648 39,869 

2060 2.85 3.00 20.0% 13,614 11,818 2,860 38,286 21,881 10,487 11,462 2,716 41,002 

2061 2.89 3.00 20.0% 13,883 12,220 2,950 39,572 22,426 10,855 11,638 2,784 42,356 

2062 2.94 3.00 20.0% 14,165 12,641 3,053 41,101 22,986 11,240 11,815 2,853 43,954 

2063 3.10 2.90 23.0% 14,457 14,886 3,242 44,773 23,559 11,642 11,988 2,924 47,697 

2064 3.32 2.90 23.0% 14,764 15,413 3,517 48,938 24,142 12,062 12,152 2,997 51,935 

2065 3.45 3.00 20.0% 15,085 14,023 3,753 51,628 24,740 12,499 12,316 3,071 54,699 

2070 4.20 3.40 20.0% 16,953 16,711 5,046 71,131 28,054 14,935 13,207 3,482 74,613 

2075 5.01 4.20 18.0% 19,358 18,099 6,796 96,658 32,103 17,867 14,346 3,985 100,643 

2080 5.88 5.00 18.0% 22,516 21,641 9,177 132,354 37,204 21,397 15,946 4,618 136,972 

2085 6.94 5.90 18.0% 26,578 25,919 12,653 184,474 43,721 25,665 18,233 5,427 189,901 

2088 7.46 6.50 16.0% 29,483 25,922 15,094 219,657 48,446 28,644 20,007 6,014 225,671 

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. 

 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. 

c
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 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 expense e end year end year 

2015 5.07 6.00 18.0% $5,389 $3,585 $2,106 $26,925 $7,111 $3,243 $3,793 $885 $27,810 

2016 4.96 5.80 18.0% 5,500 3,620 1,931 26,976 7,206 3,286 3,931 897 27,873 

2017 4.85 5.50 18.0% 5,607 3,662 1,816 26,846 7,377 3,339 3,832 691 27,537 

2018 4.72 5.20 18.0% 5,717 3,706 1,804 26,640 7,626 3,398 4,347 809 27,449 

2019 4.60 5.10 18.0% 5,808 3,747 1,788 26,366 7,877 3,456 4,550 938 27,304 

2020 4.49 5.00 18.0% 5,887 3,788 1,836 26,103 8,116 3,515 4,673 1,010 27,113 

2021 4.38 4.90 18.0% 5,950 3,828 1,748 25,728 8,340 3,574 4,731 975 26,703 

2022 4.28 4.90 18.0% 6,001 3,866 1,780 25,373 8,550 3,633 5,005 1,064 26,437 

2023 4.20 4.80 18.0% 6,052 3,902 1,827 25,050 8,744 3,690 5,077 1,088 26,138 

2024 4.10 4.70 18.0% 6,110 3,937 1,808 24,684 8,929 3,745 5,207 1,111 25,795 

2025 3.98 4.60 18.0% 6,174 3,968 1,672 24,150 9,113 3,796 5,340 1,134 25,284 

2026 3.86 4.50 18.0% 6,238 3,997 1,749 23,659 9,297 3,832 5,487 1,156 24,815 

2027 3.73 4.40 18.0% 6,309 4,027 1,717 23,094 9,480 3,867 5,637 1,179 24,273 

2028 3.58 4.30 18.0% 6,394 4,054 1,678 22,432 9,668 3,898 5,793 1,202 23,634 

2029 3.41 4.20 18.0% 6,497 4,080 1,631 21,646 9,860 3,926 5,958 1,226 22,872 

2030 3.22 4.10 18.0% 6,610 4,106 1,576 20,717 10,058 3,953 6,129 1,251 21,968 

2031 3.02 3.90 19.0% 6,730 4,334 1,479 19,800 10,261 3,980 6,306 1,276 21,076 

2032 2.83 3.80 19.0% 6,844 4,361 1,453 18,769 10,475 4,008 6,493 1,302 20,071 

2033 2.62 3.60 19.0% 6,945 4,389 1,380 17,593 10,703 4,039 6,692 1,330 18,923 

2034 2.39 3.50 19.0% 7,067 4,417 1,298 16,240 10,936 4,068 6,896 1,359 17,599 

2035 2.15 3.30 20.0% 7,223 4,648 1,210 14,876 11,165 4,093 7,100 1,388 16,264 

2036 1.90 3.10 20.0% 7,383 4,681 1,108 13,282 11,396 4,122 7,303 1,416 14,698 

2037 1.69 2.90 23.0% 7,545 5,347 1,024 12,109 11,634 4,159 7,505 1,446 13,555 

2038 1.48 2.70 23.0% 7,722 5,395 942 10,724 11,872 4,196 7,705 1,475 12,199 

2039 1.25 2.50 23.0% 7,898 5,449 843 9,118 12,117 4,239 7,908 1,505 10,623 

2040 1.10 2.30 27.0% 8,051 6,371 764 8,202 12,366 4,292 8,104 1,536 9,738 

2041 0.95 2.10 27.0% 8,234 6,451 700 7,119 12,607 4,346 8,291 1,566 8,685 

2042 0.78 1.90 27.0% 8,445 6,532 623 5,829 12,860 4,400 8,491 1,597 7,426 

2043 0.59 1.70 27.0% 8,639 6,630 533 4,353 13,123 4,467 8,689 1,630 5,983 

2044 0.39 1.50 27.0% 8,850 6,735 429 2,667 13,397 4,537 8,894 1,664 4,331 

2045 0.18 1.30 27.0% 9,074 6,844 309 747 13,691 4,610 9,117 1,700 2,447 

2046 0.10 1.10 27.0% 9,267 6,977 1,543 - 13,990 4,700 7,960 370 370 

2047 -0.11 0.90 27.0% 9,547 7,113 436 (1,998) 14,267 4,787 9,110 - (1,998) 

2048 -0.38 0.70 27.0% 9,882 7,251 (105) (4,734) 14,525 4,872 9,653 - (4,734) 

2049 -0.65 0.50 27.0% 10,036 7,413 (293) (7,651) 14,876 4,988 9,889 - (7,651) 

2050 -0.94 0.30 27.0% 10,109 7,589 (490) (10,661) 15,257 5,119 10,138 - (10,661) 

2051 -1.24 0.10 27.0% 10,207 7,791 (694) (13,771) 15,552 5,262 10,289 - (13,771) 

2052 -1.53 -0.20 27.0% 10,388 7,996 (908) (17,070) 15,813 5,401 10,412 - (17,070) 

2053 -1.83 -0.40 27.0% 10,609 8,204 (1,138) (20,614) 16,048 5,539 10,509 - (20,614) 

2054 -2.15 -0.70 27.0% 10,670 8,431 (1,376) (24,228) 16,358 5,703 10,655 - (24,228) 

2055 -2.48 -0.90 27.0% 10,675 8,670 (1,618) (27,850) 16,679 5,878 10,801 - (27,850) 

2056 -2.81 -1.20 27.0% 10,723 8,926 (1,861) (31,508) 16,917 6,058 10,858 - (31,508) 

2057 -3.14 -1.50 27.0% 10,782 9,193 (2,107) (35,205) 17,142 6,245 10,897 - (35,205) 

2058 -3.46 -1.80 27.0% 10,846 9,470 (2,356) (38,937) 17,358 6,437 10,920 - (38,937) 

2059 -3.79 -2.10 27.0% 10,888 9,762 (2,606) (42,668) 17,573 6,640 10,933 - (42,668) 

2060 -4.12 -2.40 27.0% 10,924 10,068 (2,855) (46,379) 17,785 6,853 10,932 - (46,379) 

2061 -4.44 -2.70 27.0% 10,970 10,391 (3,102) (50,060) 17,983 7,074 10,908 - (50,060) 

2062 -4.75 -3.00 27.0% 11,022 10,730 (3,347) (53,700) 18,186 7,307 10,879 - (53,700) 

2063 -5.05 -3.30 27.0% 11,080 11,088 (3,589) (57,280) 18,391 7,551 10,840 - (57,280) 

2064 -5.33 -3.70 27.0% 11,143 11,464 (3,825) (60,784) 18,595 7,806 10,789 - (60,784) 

2065 -5.61 -4.00 27.0% 11,213 11,856 (4,056) (64,198) 18,805 8,072 10,733 - (64,198) 

2070 -6.65 -5.50 27.0% 11,801 14,059 (5,103) (79,630) 20,057 9,556 10,500 - (79,630) 

2075 -7.05 -6.50 27.0% 12,867 16,732 (5,916) (91,560) 21,865 11,349 10,516 - (91,560) 

2080 -6.74 -7.00 27.0% 14,574 19,976 (6,414) (98,816) 24,527 13,528 10,999 - (98,816) 

2085 -5.87 -6.80 27.0% 16,888 23,925 (6,470) (99,437) 28,288 16,201 12,088 - (99,437) 

2088 -5.12 -6.30 27.0% 18,547 26,682 (6,195) (95,110) 31,134 18,082 13,052 - (95,110) 

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. 

 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. 

c
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 19 

Table 3. Present valuea of benefits in millions of dollars 

Employment assumption I 

Tier 1 

Tier 2b liabilityc Total 

Employment assumption II 

Tier 1 

Tier 2b liabilityc Total 

Employment assumption III 

Tier 1 

Tier 2b liabilityc Total 

Employee annuities 

Retired 

Active 

Inactive 

Future entrants 

Total 

$ 22,414 

21,692 

1,051 

9,007 

54,164 

$ 7,933 

8,970 

214 

3,082 

20,199 

$ 30,347 

30,662 

1,265 

12,089 

74,363 

$22,414 

21,692 

1,051 

6,454 

51,610 

$ 7,933 

8,970 

214 

2,214 

19,332 

$ 30,347 

30,662 

1,265 

8,668 

70,942 

$22,414 

21,692 

1,051 

4,148 

49,305 

$ 7,933 

8,970 

214 

1,425 

18,542 

$ 30,347 

30,662 

1,265 

5,573 

67,847 

Spouse annuities 

Retired 6,353 2,517 8,870 6,353 2,517 8,870 6,353 2,517 8,870 

Active 5,492 2,899 8,392 5,492 2,899 8,392 5,492 2,899 8,392 

Inactive 233 49 281 233 49 281 233 49 281 

Future entrants 2,003 773 2,776 1,438 558 1,996 924 359 1,283 

Total 14,081 6,238 20,319 13,516 6,023 19,539 13,002 5,824 18,826 

Survivor annuities 

Retired & deceased 6,177 872 7,049 6,177 872 7,049 6,177 872 7,049 

Active 2,296 275 2,571 2,296 275 2,571 2,296 275 2,571 

Inactive 32 13 45 32 13 45 32 13 45 

Future entrants 787 147 935 571 106 677 369 68 438 

Total 9,293 1,307 10,600 9,076 1,266 10,342 8,875 1,228 10,103 

All annuities combined 

Retired & deceased 34,944 11,322 46,266 34,944 11,322 46,266 34,944 11,322 46,266 

Active 29,481 12,144 41,625 29,481 12,144 41,625 29,481 12,144 41,625 

Inactive 1,316 276 1,592 1,316 276 1,592 1,316 276 1,592 

Future entrants 11,798 4,002 15,799 8,463 2,878 11,341 5,441 1,853 7,294 

Total annuities $ 77,538 $27,744 $105,281 $74,203 $26,620 $100,823 $71,182 $25,595 $ 96,776 

Lump sum payments 55 55 55 

Total benefits $105,336 $100,878 $ 96,831 

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. 

 Tier 1 benefits in excess of social security level. c
 20 

Table 4. Present valuea of benefits as a percentage of the present valuea of tier 2 payroll 

Employment assumption I 

Tier 1 

Tier 2b liabilityc Total 

Employment assumption II 

Tier 1 

Tier 2b liabilityc Total 

Employment assumption III 

Tier 1 

Tier 2b liabilityc Total 

Employee annuities 

Retired 

Active 

Inactive 

Future entrants 

Total 

4.82% 

4.66 

0.23 

1.94 

11.65 

1.71% 

1.93 

0.05 

0.66 

4.34 

6.53% 

6.59 

0.27 

2.60 

15.99 

5.89% 

5.70 

0.28 

1.69 

13.55 

2.08% 

2.36 

0.06 

0.58 

5.08 

7.97% 

8.05 

0.33 

2.28 

18.63 

7.27% 

7.04 

0.34 

1.35 

15.99 

2.57% 

2.91 

0.07 

0.46 

6.01 

9.84% 

9.95 

0.41 

1.81 

22.01 

Spouse annuities 

Retired 1.37 0.54 1.91 1.67 0.66 2.33 2.06 0.82 2.88 

Active 1.18 0.62 1.80 1.44 0.76 2.20 1.78 0.94 2.72 

Inactive 0.05 0.01 0.06 0.06 0.01 0.07 0.08 0.02 0.09 

Future entrants 0.43 0.17 0.60 0.38 0.15 0.52 0.30 0.12 0.42 

Total 3.03 1.34 4.37 3.55 1.58 5.13 4.22 1.89 6.11 

Survivor annuities 

Retired & deceased 1.33 0.19 1.52 1.62 0.23 1.85 2.00 0.28 2.29 

Active 0.49 0.06 0.55 0.60 0.07 0.68 0.74 0.09 0.83 

Inactive 0.01 0.00 0.01 0.01 0.00 0.01 0.01 0.00 0.01 

Future entrants 0.17 0.03 0.20 0.15 0.03 0.18 0.12 0.02 0.14 

Total 2.00 0.28 2.28 2.38 0.33 2.72 2.88 0.40 3.28 

All annuities combined 

Retired & deceased 7.51 2.43 9.95 9.18 2.97 12.15 11.33 3.67 15.01 

Active 6.34 2.61 8.95 7.74 3.19 10.93 9.56 3.94 13.50 

Inactive 0.28 0.06 0.34 0.35 0.07 0.42 0.43 0.09 0.52 

Future entrants 2.54 0.86 3.40 2.22 0.76 2.98 1.77 0.60 2.37 

Total annuities 16.67% 5.97% 22.64% 19.48% 6.99% 26.47% 23.09% 8.30% 31.39% 

Lump sum payments 0.01 0.01 0.02 

Total benefits 22.65% 26.49% 31.41% 

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. 

 Tier 1 benefits in excess of social security level. c
 

 

 

 

 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, 2013
 

(Dollar amounts in millions)
 

Combined NRRIT SSEB 

and RR Account Account 

Securities: 

Market value of NRRIT investments 

Par value specialsa (including accrued interest) 

Cash accounts 

$ 26,239 

456 

9 

$ -

923 

8 

Balance 

Adjustment for present value calculationb

Adjusted balance for use in present value calculation $ 

26,704 

(181) 

26,524 $ 

931 

-

931 

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 accounts for the difference between the actual assets on December 31, 2014,

 used in Tables 2-I, 2-II and 2-III, and the assets that would have been projected starting with

 the December 31, 2013 assets using a 7.0% rate. With this adjustment the present value of the

 ultimate combined account values in Tables 2 discounted at a 7.0% rate will equal the surplus

 or deficiency shown in Table 6. 
 

 

 

 

 

 

 

 

 

 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, 12/31/2013 $ 26,524 $ 26,524 $ 26,524 

Retirement taxes 74,798 69,308 63,091 

Income taxes on benefits 7,871 7,534 7,229 

Available from SSEB Account 2,188 2,106 2,032 

Total, present and prospective assets 111,381 105,472 98,876 

Benefit payments 105,336 100,878 96,831 

Administrative expenses 3,880 3,183 2,640 

Total liabilities 109,216 104,061 99,471 

Actuarial surplus or (deficiency) 2,165 1,411 (595) 

One percent of tier 2 payroll $ 4,650 $ 3,808 $ 3,083 

Present values as a 

percentage of tier 2 payroll 

Adjusted funds on hand, 12/31/2013 5.70% 6.96% 8.60% 

Retirement taxes 16.09 18.20 20.47 

Income taxes on benefits 1.69 1.98 2.34 

Available from SSEB Account 0.47 0.55 0.66 

Total, present and prospective assets 23.95 27.70 32.07 

Benefit payments 22.65 26.49 31.41 

Administrative expenses 0.83 0.84 0.86 

Total liabilities 23.49 27.32 32.27 

Actuarial surplus or (deficiency) 0.47 0.37 (0.19) 
 

 

 

 

 

 

 23 

Table 7. Unfunded accrued liability 

(Dollar amounts in millions) 

Amount or rate 

1.	 Present value of benefits for former and present employees $ 89,537 

2.	 Present value of administrative expenses for former and present

employees 2,825 

3.	 Present value of tier 2 payroll for present employees 178,811 

4.	 Normal cost as a level percentage of tier 2 payroll 7.41% 

5.	 Present value of future service costs for present employees = 13,250 

(3) x (4)

6.	 Accrued liability = (1) + (2) - (5) 79,112 

7.	 Funds on hand, 12/31/2013a 27,455 

8.	 Unfunded accrued liability = (6) - (7) 51,657 

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 

2016 $29 15,000 

2017 25 13,000 

2018 22 11,000 

2019 18 9,000 

2020 16 8,000 

2021 13 7,000 

2022 11 6,000 

2023 9 5,000 

2024 8 4,000 

2025 6 3,000 

2026 5 3,000 

2027 4 2,000 

2028 3 2,000 

2029 3 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 

2015 $61 122,000 

2016 61 122,000 

2017 61 121,000 

2018 60 119,000 

2019 59 117,000 

2020 57 114,000 

2021 56 110,000 

2022 54 106,000 

2023 51 102,000 

2024 49 97,000 

2025 47 93,000 

2026 44 88,000 

2027 42 84,000 

2028 40 79,000 

2029 37 74,000 

2030 35 70,000 

2031 33 65,000 

2032 31 61,000 

2033 28 56,000 

2034 26 52,000 

2035 24 48,000 

2036 22 44,000 

2037 20 40,000 

2038 18 36,000 

2039 16 33,000 

2040 15 29,000 

2041 13 26,000 

2042 11 23,000 

2043 10 20,000 

2044 9 17,000 

2045 7 15,000 

2046 6 12,000 

2047 5 10,000 

2048 4 9,000 

2049 4 7,000 

2050 3 6,000 

a

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

 eliminated because of a private pension. On January 1, 2014, there were about 34,000

 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 

2015 532,100 532,100 532,100 2.21 2.24 2.27 

2016 529,200 529,200 529,200 2.21 2.26 2.33 

2017 525,800 525,800 525,800 2.20 2.28 2.38 

2018 521,900 521,900 521,900 2.19 2.30 2.44 

2019 517,500 517,500 517,500 2.18 2.32 2.50 

2020 512,400 512,400 512,400 2.17 2.33 2.55 

2021 506,400 506,400 506,400 2.15 2.34 2.60 

2022 499,500 499,500 499,400 2.13 2.35 2.64 

2023 492,100 492,000 491,900 2.11 2.35 2.68 

2024 484,500 484,300 484,100 2.09 2.35 2.72 

2025 476,900 476,600 476,300 2.06 2.35 2.76 

2026 469,200 468,800 468,300 2.04 2.35 2.79 

2027 461,600 461,000 460,300 2.01 2.34 2.83 

2028 454,300 453,500 452,500 1.99 2.34 2.87 

2029 447,400 446,400 445,200 1.97 2.34 2.90 

2030 440,900 439,500 438,000 1.94 2.34 2.94 

2031 434,600 432,900 430,900 1.92 2.34 2.98 

2032 428,500 426,300 423,900 1.90 2.34 3.03 

2033 422,500 419,800 417,000 1.89 2.34 3.07 

2034 417,000 413,800 410,400 1.87 2.34 3.11 

2035 412,100 408,300 404,200 1.85 2.34 3.15 

2036 407,400 402,900 398,000 1.84 2.35 3.20 

2037 403,000 397,700 392,000 1.83 2.35 3.23 

2038 398,900 392,600 386,000 1.82 2.36 3.26 

2039 395,000 387,800 380,200 1.81 2.36 3.30 

2040 391,200 382,900 374,200 1.79 2.36 3.32 

2041 387,800 378,300 368,400 1.79 2.37 3.34 

2042 385,100 374,300 363,000 1.78 2.37 3.37 

2043 382,400 370,200 357,600 1.77 2.37 3.38 

2044 380,300 366,700 352,600 1.77 2.38 3.40 

2045 378,900 363,700 348,000 1.77 2.38 3.42 

2046 377,600 360,600 343,200 1.77 2.39 3.42 

2047 377,000 358,100 338,800 1.77 2.39 3.43 

2048 377,300 356,300 334,800 1.77 2.40 3.44 

2049 377,600 354,100 330,200 1.78 2.41 3.44 

2050 377,900 351,800 325,300 1.79 2.41 3.43 

2051 377,900 349,000 319,800 1.79 2.41 3.41 

2052 378,200 346,400 314,600 1.79 2.41 3.40 

2053 378,900 344,200 309,400 1.80 2.41 3.37 

2054 379,500 341,500 303,800 1.81 2.40 3.34 

2055 379,900 338,700 297,900 1.81 2.39 3.30 

2060 379,900 321,700 265,800 1.82 2.31 3.02 

2065 377,600 303,000 234,000 1.81 2.18 2.67 

2070 374,400 285,400 206,700 1.79 2.06 2.36 

2075 371,600 270,900 186,000 1.78 1.95 2.12 

2080 370,300 260,700 172,500 1.77 1.88 1.97 

2085 370,800 254,800 165,100 1.78 1.84 1.89 

2088 371,900 252,900 162,700 1.78 1.82 1.86 

a

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

 otherwise entitled to an annuity. On December 31, 2013, there were 1,119 of these cases. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 27 

Table 11. Transfers to railroad retirement system under financial interchange with social security system, 1937-2015a 

(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
 

61 2012 6,714.8 e 2,442.5 4,499.0 2013
 

62 2013 6,939.1 2,433.4 4,700.8 2014
 

63 2014 7,053.1 2,575.3 4,676.6 2015
 

Total 1937-2014 201,408.6 72,626.3 139,308.9 

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, 2014
 

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 2015, loss of one month's annuity for each 

$850 in excess of $10,200 earned in a year with the last $425 of such excess treated as $850 (no annuity is lost for any month with earnings 

below $850). 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 2001 $80,400 $59,700 

1986 42,000 31,500 2002 84,900 63,000 

1987 43,800 32,700 2003 87,000 64,500 

1988 45,000 33,600 2004 87,900 65,100 

1989 48,000 35,700 2005 90,000 66,900 

1990 51,300 38,100 2006 94,200 69,900 

1991 53,400 39,600 2007 97,500 72,600 

1992 55,500 41,400 2008 102,000 75,900 

1993 57,600 42,900 2009 106,800 79,200 

1994 60,600 45,000 2010 106,800 79,200 

1995 61,200 45,300 2011 106,800 79,200 

1996 62,700 46,500 2012 110,100 81,900 

1997 65,400 48,600 2013 113,700 84,300 

1998 68,400 50,700 2014 117,000 87,000 

1999 72,600 53,700 2015 118,500 88,200 

2000 76,200 56,700 
 

 

 

 

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. There is no limit to earnings 

subject to the hospital insurance portion of the tier 1 tax rate. Beginning in 2013, employees pay an additional 0.9 percent on earnings 

above $200,000 (for those who file an individual return) or $250,000 (for those who file a joint return). 

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 26th valuation presents results under three different employment assumptions.

The same set of earnings inflation, price inflation, and investment return 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 2088 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, 2013). 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 2009-2012 showed that the pattern of improved mortality at the younger ages found in

the 2006-2009 experience continued. The overall ratio of actual to expected deaths after age

retirement based on the 25th valuation standard was 100.7%. Based on the thinning of margin

and the degree of fit by attained age, a new table, the 2010 Base Year 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. In the past, the final rates were obtained

by adding a 6% margin, which provided for near-term mortality improvement. Longer-term

mortality improvement for those who had not yet retired was provided for by using an additional

1-year rateback in age. For this valuation, a transition was made to a separate mortality

improvement scale, the 2013 RRB Mortality Improvement Scale, to be used in conjunction with
 

 

38
 

the base rates. This is consistent with current actuarial practice and provides for more explicit 

mortality improvement. 

Mortality after disability retirement. The overall ratio of actual to expected deaths after 

disability retirement based on the 25th valuation standard was 99.8% and 101.9% for annuitants 

with and without disability freeze, respectively. Based on the improvement in mortality and the 

degree of fit by five-year age group, two new tables, the 2010 Base Year RRB Disabled 

Mortality Table for Annuitants with Disability Freeze and the 2010 Base Year RRB Disabled 

Mortality Table for Annuitants without Disability Freeze, were constructed. The tables were 

based on experience between the anniversaries of retirement in 2009 and 2012. In the past, the 

final rates were obtained by adding a 6% margin, which provided for near-term mortality 

improvement. Long-term mortality improvement for those who have not yet retired was 

provided for by using a 1-year rateback in age. For this valuation, a transition was made to the 

2013 RRB Mortality Improvement Scale to be used in conjunction with the base rates to provide 

for more explicit mortality improvement. 

Mortality of employees in active service. Mortality studies for active employees showed an 

overall ratio of actual to expected deaths of 90.3%. Based on the recent improvement in the 

mortality experience, a new table, the 2009 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 continue 

to provide no 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 25th valuation 

standard was 101.1%. Based on the improvement in spouse termination since the 2006-2009 

period, a new table, the 2010 Base Year RRB Spouse Total Termination Table, was constructed. 

In the past, the final rates were obtained by adding a 6% margin for future improvement in 

spouse termination. For the 26th valuation, the 2013 RRB Mortality Improvement Scale was 

used in conjunction with the base rates. 

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, 2012, to the 

expected number based on the 25th valuation standard was 100.7% and 100.6%, 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. 
39
 

Mortality of widow annuitants. The ratio of actual to expected deaths for widow annuitants was 

103.9% based on the 25th valuation standard, the 1995 RRB Mortality Table for Widows. The 

mortality of widows, after having worsened from the 1991-1994 period to the 2000-2003 period, 

has improved since then, but has not shown the same consistent improvement as the experience 

of employee annuitants has. Based on the thinning of margin and the degree of fit by attained 

age, a new table, the 2013 RRB Mortality Table for Widows, was constructed. The final rates 

were obtained by adding a 6% margin, which provides for near-term mortality improvement. 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 

25th valuation standard, the 1997 RRB Remarriage Table, was 86.8%. Based on the degree of 

fit, newness of the current standard, relatively small number of remarriages, and relatively small 

impact of a change in remarriage rates on the valuation results, the 25th valuation standard was 

retained. 

Total termination for disabled children. The overall ratio of actual terminations to those 

expected on the basis of the 25th valuation standard, the 2004 RRB Total Termination Table for 

Disabled Children, was 108.1%. Based on the relatively small number of terminations, the 

accompanying higher volatility of termination rates, and the adequate margin in the current 

standard, the 25th 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 25th valuation standard was 

84.3%. Based on the wide variation in withdrawal experience by year for the study period 

2008-2011 and the fact that the study period included an economic recession and a global 

financial crisis, the experience during the study period may not be representative of what is 

expected during the projection period. The 25th valuation standard for withdrawal rates was 

retained. 

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 25th and 26th valuations and 

the crude rates during calendar years 2010-2012 is shown in Table S-30. For employees with 5-

29 years of service, the assumed 26th valuation rates are close to the 2010-2012 crude rates at 

ages under 68 and constant for ages over 67. For employees with 30 or more years of service, 

the assumed 26th valuation rates are close to the crude rates up to age 67 and constant for ages 

over 71. 
40
 

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 

2010-2012 to those expected based on the 25th valuation standard was 75.3%. The ratio of 

actual to expected disability retirements for employees with 20-24 years of service was 66.7%, 

and for employees with 25-29 years of service it was 95.7%. For employees with 30 or more 

years of service the ratio of actual to expected disability retirements was 91.5%. The overall 

ratio of actual to expected disability retirements for all employees was 84.3%. Because of the 

recent volatility of experience, current experience was combined with that of the period 2007-

2009, and a new table of rates of disability retirement was constructed based on the combined 

2007-2012 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 

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 25th valuation standard was 100.2% and 100.6% 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 26th valuation. In the current experience, as shown in 

table S-35, 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 therefore a single set of 

rates is assumed for employees with 20 or more years of service. These rates are shown in 

Table S-12. 

Mortality Improvement. The mortality experience of aged and disabled annuitants and the 

spouse termination experience were studied to see how mortality had improved in the past. As 

well as reviewing the RRB historical experience, as shown in Table S-29, other sources, such as 

the mortality experience of the U. S. population and the mortality assumptions in the 2014 

OASDI Trustees’ Report, were taken into account in developing the 2013 RRB Mortality 

Improvement Scale shown in Table S-10. 

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-14, S-15, and 

S-44, 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. 
 

41 

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. 
 

 

 

 

 

 

 

 

42
 

List of assumptions and tables used in the 26th valuation

 Item	 Assumption or table 

A. Mortality and total termination rates 

1. After age retirement Table S-1 with Table S-10 

2. After disability retirement 

(a) with Disability Freeze Table S-2 with Table S-10 

(b) without Disability Freeze Table S-3 with Table S-10 

3. Employees in active service Table S-4 

4. Spouses Table S-5 with Table S-10 

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 with Table S-10
 

7. Children under age 18 Disregarded 

8. Disabled children age 18 and over Table S-9 

9. Mortality improvement Table S-10 

B. Remarriage rates for widows Table S-8
 

C. Retirement rates 

1. Age retirement Table S-11 

2. Disability (with "disability Table S-12

 freeze" percentages)
 

D. Withdrawal rates Table S-13 

E. Other assumptions 

1. Probability of a retired employee Table S-6 

having an eligible spouse 

2. Economic assumptions Table 1 of valuation report 

3. Service months and salary scales Table S-14 

4. Family composition Table S-15
 

5. Age distribution of future entrants Table S-44
 
 43 

Table S-1. 2010 Base Yeara RRB Annuitants Mortality Table 

Ageb 1,000qx Ageb 1,000qx 

60 

61 

62 

63 

64 

5.99 

6.72 

7.54 

8.45 

9.48 

95 

96 

97 

98 

99 

269.61 

291.33 

310.37 

327.08 

341.74 

65 

66 

67 

68 

69 

10.63 

11.92 

13.37 

14.98 

16.80 

100 

101 

102 

103 

104 

354.60 

365.89 

375.81 

384.57 

392.32 

70 

71 

72 

73 

74 

18.83 

21.10 

23.64 

26.49 

29.67 

105 

106 

107 

108 

109 

399.24 

405.48 

411.40 

417.25 

423.05 

75 

76 

77 

78 

79 

33.23 

37.21 

41.66 

46.62 

52.16 

110 1,000.00 

80 

81 

82 

83 

84 

58.33 

65.22 

72.88 

81.40 

90.86 

85 

86 

87 

88 

89 

101.37 

112.87 

125.43 

139.11 

153.95 

90 

91 

92 

93 

94 

170.00 

187.31 

205.91 

225.82 

247.06 

a For use with 2013 RRB Mortality Improvement Scale. 

b Age nearest birthday. 
 44
 

Table S-2. 2010 Base Yeara RRB Disabled Mortality Table for Annuitants with Disability Freeze b
 

Agec 1,000qx Agec 1,000qx Agec 1,000qx 

30 

31 

32 

33 

34 

15.94 

16.14 

16.34 

16.53 

16.73 

65 

66 

67 

68 

69 

29.12 

30.93 

33.05 

35.54 

38.45 

100 

101 

102 

103 

104 

359.09 

370.01 

380.10 

389.32 

397.63 

35 

36 

37 

38 

39 

16.92 

17.11 

17.30 

17.49 

17.68 

70 

71 

72 

73 

74 

41.86 

45.56 

49.58 

53.95 

58.68 

105 

106 

107 

108 

109 

405.01 

411.40 

417.25 

423.05 

428.79 

40 

41 

42 

43 

44 

17.87 

18.05 

18.24 

18.42 

18.60 

75 

76 

77 

78 

79 

63.82 

69.40 

75.44 

81.98 

89.06 

110 1,000.00 

45 

46 

47 

48 

49 

18.78 

18.95 

19.12 

19.30 

19.46 

80 

81 

82 

83 

84 

96.72 

105.00 

113.95 

123.60 

134.01 

50 

51 

52 

53 

54 

19.63 

19.79 

19.99 

20.21 

20.48 

85 

86 

87 

88 

89 

145.21 

157.27 

170.22 

184.12 

199.02 

55 

56 

57 

58 

59 

20.79 

21.15 

21.58 

22.09 

22.68 

90 

91 

92 

93 

94 

214.95 

231.30 

247.41 

263.21 

278.62 

60 

61 

62 

63 

64 

23.37 

24.19 

25.14 

26.27 

27.58 

95 

96 

97 

98 

99 

293.56 

307.96 

321.77 

334.92 

347.38 

a For use with 2013 RRB Mortality Improvement Scale. 

b Qualified under social security definition of disability. 

Age nearest birthday. c
 45
 

Table S-3. 2010 RRB Base Yeara Disabled Mortality Table for Annuitants without Disability Freeze b
 

Agec 1,000qx Agec 1,000qx Agec 1,000qx 

40 

41 

42 

43 

44 

4.39 

4.57 

4.76 

4.97 

5.19 

70 

71 

72 

73 

74 

30.18 

33.30 

36.73 

40.51 

44.67 

100 

101 

102 

103 

104 

355.07 

366.31 

376.66 

386.08 

394.54 

45 

46 

47 

48 

49 

5.43 

5.70 

5.97 

6.28 

6.63 

75 

76 

77 

78 

79 

49.24 

54.28 

59.80 

65.88 

72.54 

105 

106 

107 

108 

109 

402.00 

408.44 

414.33 

420.16 

425.93 

50 

51 

52 

53 

54 

7.01 

7.43 

7.90 

8.43 

9.02 

80 

81 

82 

83 

84 

79.85 

87.86 

96.63 

106.23 

116.71 

110 1,000.00 

55 

56 

57 

58 

59 

9.67 

10.17 

10.73 

11.37 

12.09 

85 

86 

87 

88 

89 

128.15 

140.62 

154.20 

168.95 

184.95 

60 

61 

62 

63 

64 

12.91 

13.84 

14.89 

16.08 

17.43 

90 

91 

92 

93 

94 

202.28 

220.07 

237.48 

254.43 

270.84 

65 

66 

67 

68 

69 

18.95 

20.68 

22.63 

24.85 

27.35 

95 

96 

97 

98 

99 

286.66 

301.83 

316.30 

330.03 

342.96 

a For use with 2013 RRB Mortality Improvement Scale. 

b Not qualified under social security definition of disability. 

Age nearest birthday. c
 46 

Table S-4. 2009 RRB Active Service Mortality Tablea 

Ageb 1,000qx-1/2 Ageb 1,000qx-1/2 

45 1.51 

46 1.59 

17 .87 47 1.69 

18 .87 48 1.78 

19 .87 49 1.89 

20 .87 50 2.01 

21 .87 51 2.14 

22 .87 52 2.29 

23 .87 53 2.45 

24 .87 54 2.62 

25 .87 55 2.81 

26 .87 56 3.02 

27 .87 57 3.25 

28 .87 58 3.50 

29 .87 59 3.77 

30 .87 60 4.07 

31 .89 61 4.41 

32 .91 62 4.77 

33 .94 63 5.17 

34 .97 64 5.60 

35 1.00 65 6.08 

36 1.03 66 6.61 

37 1.07 67 7.18 

38 1.11 68 7.82 

39 1.15 69 8.51 

40 1.20 70 9.27 

41 1.25 71 10.10 

42 1.31 72 11.02 

43 1.37 73 12.02 

44 1.44 74 13.12 

75 14.33 

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 Base Yeara RRB Spouse Total Terminationb Table
 

Agec t 1,000qx Agec t 1,000qx

60 

61 

62 

63 

64 

18.62 

20.42 

22.38 

24.53 

26.89 

95 

96 

97 

98 

99 

347.01 

362.93 

378.46 

393.61 

408.39 

65 

66 

67 

68 

69 

29.47 

32.29 

35.38 

38.76 

42.45 

100 

101 

102 

103 

104 

422.81 

436.88 

450.60 

463.99 

477.06 

70 

71 

72 

73 

74 

46.48 

50.89 

55.71 

60.96 

66.70 

105 

106 

107 

108 

109 

489.81 

502.24 

514.38 

526.21 

537.76 

75 

76 

77 

78 

79 

72.95 

79.76 

87.18 

95.25 

104.02 

110 1,000.00 

80 

81 

82 

83 

84 

113.55 

123.89 

135.10 

147.24 

160.36 

85 

86 

87 

88 

89 

174.53 

189.80 

206.24 

223.89 

242.80 

90 

91 

92 

93 

94 

261.26 

279.27 

296.84 

313.98 

330.70 

a

 For use with 2013 RRB Mortality Improvement Scale. 

b

 Mainly death of employee or death of spouse.
 

 Age nearest birthday.
 c
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 0.223 0.000 

61 0.362 0.000 

62 0.456 0.083 

63 0.540 0.202 

64 0.609 0.275 

65 0.661 0.339 

66 0.693 0.395 

67 0.719 0.444 

68 0.740 0.485 

69 0.756 0.520 

70 0.770 0.549 

71 0.779 0.572 

72 0.785 0.590 

73 0.787 0.604 

74 0.787 0.613 

75 0.783 0.617 

76 0.776 0.618 

77 0.767 0.615 

78 0.755 0.608 

79 0.740 0.598 

80 0.723 0.586 

81 0.704 0.570 

82 0.684 0.552 

83 0.661 0.531 

84 0.636 0.509 

85 0.611 0.485 

86 0.583 0.459 

87 0.555 0.432 

88 0.526 0.404 

89 0.495 0.375 

90 0.464 0.346 

91 0.433 0.316 

92 0.400 0.287 

93 0.368 0.257 

94 0.336 0.228 

95 0.303 0.200 

96 0.271 0.173 

97 0.240 0.147 

98 0.208 0.122 

99 & over 0.178 0.099 

a Age nearest birthday. 
 49 

Table S-7. 2013 RRB Mortality Table for Widows 

Agea 1,000qx Agea 1,000qx Agea 1,000qx 

20 

21 

22 

23 

24 

0.39 

0.41 

0.42 

0.43 

0.45 

55 

56 

57 

58 

59 

4.79 

5.25 

5.76 

6.32 

6.92 

90 

91 

92 

93 

94 

128.04 

141.79 

157.64 

175.10 

193.69 

25 

26 

27 

28 

29 

0.47 

0.48 

0.50 

0.52 

0.54 

60 

61 

62 

63 

64 

7.59 

8.32 

9.12 

9.99 

10.95 

95 

96 

97 

98 

99 

212.98 

232.53 

251.99 

271.00 

289.28 

30 

31 

32 

33 

34 

0.56 

0.58 

0.61 

0.65 

0.70 

65 

66 

67 

68 

69 

12.00 

13.16 

14.42 

15.80 

17.31 

100 

101 

102 

103 

104 

306.54 

322.55 

337.10 

349.99 

361.04 

35 

36 

37 

38 

39 

0.76 

0.83 

0.91 

1.00 

1.10 

70 

71 

72 

73 

74 

18.96 

20.77 

22.76 

24.92 

27.30 

105 

106 

107 

108 

109 

370.06 

376.89 

382.53 

388.11 

393.63 

40 

41 

42 

43 

44 

1.20 

1.32 

1.45 

1.59 

1.74 

75 

76 

77 

78 

79 

29.89 

32.78 

35.98 

39.55 

43.51 

110 1,000.00 

45 

46 

47 

48 

49 

1.91 

2.09 

2.30 

2.52 

2.76 

80 

81 

82 

83 

84 

47.90 

52.78 

58.19 

64.18 

70.82 

50 

51 

52 

53 

54 

3.03 

3.32 

3.64 

3.99 

4.37 

85 

86 

87 

88 

89 

78.17 

86.29 

95.26 

105.15 

116.05 

a Age nearest birthday. 
 50 

Table S-8. 1997 RRB Remarriage Table 

(Probabilities of remarriage) 

Agea

 at

m 1,000 q[ ]nx for n equal to 

widowhood [x] 0 1 2 3 4 Agea

 x m 1,000qx

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. 
 51 

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

Agea t 1,000qx Agea t 1,000qx Agea t 1,000qx

18 

19 

21.92 

21.83 

50 

51 

52 

53 

54 

16.97 

17.85 

18.79 

19.79 

20.87 

85 

86 

87 

88 

89 

142.28 

152.12 

162.66 

173.96 

186.07 

20 

21 

22 

23 

24 

21.54 

21.06 

20.39 

19.53 

18.50 

55 

56 

57 

58 

59 

22.03 

23.27 

24.59 

26.01 

27.54 

90 

91 

92 

93 

94 

199.04 

212.94 

227.83 

243.79 

260.90 

25 

26 

27 

28 

29 

17.30 

15.95 

14.45 

13.19 

12.14 

60 

61 

62 

63 

64 

29.17 

30.92 

32.79 

34.80 

36.96 

95 

96 

97 

98 

99 

279.22 

298.86 

319.90 

342.44 

366.60 

30 

31 

32 

33 

34 

11.30 

10.65 

10.17 

9.85 

9.68 

65 

66 

67 

68 

69 

39.26 

41.73 

44.38 

47.22 

50.26 

100 

101 

102 

103 

104 

379.29 

384.08 

386.52 

387.90 

389.28 

35 

36 

37 

38 

39 

9.63 

9.70 

9.88 

10.14 

10.47 

70 

71 

72 

73 

74 

53.52 

57.01 

60.75 

64.76 

69.05 

105 

106 

107 

108 

109 

390.66 

392.03 

393.39 

394.76 

396.12 

40 

41 

42 

43 

44 

10.86 

11.30 

11.77 

12.27 

12.81 

75 

76 

77 

78 

79 

73.65 

78.58 

83.87 

89.53 

95.60 

110 1,000.00 

45 

46 

47 

48 

49 

13.39 

14.01 

14.68 

15.39 

16.15 

80 

81 

82 

83 

84 

102.10 

109.06 

116.53 

124.53 

133.10 

a

 Age nearest birthday. 
52 

Table S-10. 2013 RRB Mortality Improvement Scale 

Annual rate of mortality 

Agea improvement 

85 & under 1.00% 

86 0.95% 

87 0.90% 

88 0.86% 

89 0.81% 

90 0.77% 

91 0.74% 

92 0.70% 

93 0.66% 

94 0.63% 

95 0.60% 

96 0.57% 

97 0.54% 

98 0.51% 

99 0.49% 

100 0.46% 

101 0.44% 

102 0.42% 

103 0.40% 

104 0.38% 

105 0.36% 

106 0.34% 

107 0.32% 

108 0.31% 

109 0.29% 

110 0.00% 

a Age nearest birthday. 
53 

Table S-11. Calendar year ratesa of immediateb age retirement 

(Retirements per 1,000 exposed)

 Years of service 

Agec 5-29 30 & over 

60 600 

61 460 

62 100 350 

63 90 350 

64 80 310 

65 150 370 

66 320 330 

67 260 320 

68 200 300 

69 200 300 

70 200 300 

71 200 250 

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
 
 54
 

Table S-12. Ratesa of immediateb disability retirement and of eligibility for disability freeze c
 

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 1.4 4.1 3.5 3.5 97.8% 44.8% 

35 1.5 4.4 3.8 3.8 97.8 44.8 

36 1.5 4.7 4.1 4.1 97.8 44.8 

37 1.6 5.0 4.3 4.3 97.8 44.8 

38 1.6 5.3 4.6 4.6 97.8 44.8 

39 1.7 5.6 4.9 4.9 97.8 44.8 

40 1.8 6.0 5.2 5.2 97.8 44.8 

41 2.0 6.3 5.3 5.3 97.8 44.8 

42 2.1 6.6 5.6 5.6 97.8 44.8 

43 2.3 7.0 6.1 6.1 97.8 44.8 

44 2.5 7.7 6.9 6.9 97.8 44.8 

45 2.8 8.8 7.9 7.9 97.8 44.8 

46 3.1 10.2 9.1 9.1 97.8 44.9 

47 3.5 12.0 10.5 10.5 97.8 45.0 

48 3.9 14.2 12.0 12.0 97.8 45.3 

49 4.5 16.4 13.6 13.6 97.8 45.8 

50 5.1 18.7 15.2 15.2 97.8 46.8 

51 5.9 21.1 16.8 16.8 97.8 49.0 

52 6.8 23.5 18.3 18.3 97.8 53.6 

53 7.9 25.9 19.8 19.8 97.8 62.9 

54 9.2 28.5 21.3 21.3 97.8 81.9 

55 10.8 31.1 22.9 22.9 97.8 93.9 

56 12.7 33.7 24.6 24.6 97.8 93.9 

57 15.0 36.5 26.3 26.3 97.8 93.9 

58 17.8 39.3 28.0 28.0 97.8 93.9 

59 21.1 42.2 29.8 29.8 97.8 93.9 

60 30.2 45.1 31.7 16.3 93.6 93.9 

61 36.6 48.1 33.6 12.1 93.6 93.9 

62 39.1 56.1 45.2 8.6 93.6 93.9 

63 39.1 55.6 44.8 6.0 93.6 93.9 

64 33.8 53.0 42.2 4.2 93.6 93.9 

65 22.8 39.6 28.8 3.1 93.6 93.9 

66 4.4 2.9 2.9 2.9 93.6 93.9 

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. 

Qualified under the social security definition of disability. 

d Age attained in calendar year of exposure. 

c
 55 

Table S-13. 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.
 

Age attained in calendar year of exposure.
 c
 56 

Table S-14. Service months and salary scales 

Years Increase in average monthly salary 

of Service from prior service level 

servicea months Tier 1 Tier 2 

0 6.4 

1 11.3 21.9% 21.2% 

2 11.4 8.2% 6.9% 

3 11.5 5.6% 4.6% 

4 11.6 4.4% 3.6% 

5 11.6 3.5% 2.8% 

6 11.7 2.7% 2.2% 

7 11.7 2.1% 1.6% 

8 11.7 1.6% 1.2% 

9 11.7 1.2% 0.8% 

10 11.8 0.9% 0.6% 

11 11.8 0.7% 0.4% 

12 11.8 0.5% 0.3% 

13 11.8 0.5% 0.2% 

14 11.8 0.4% 0.2% 

15 11.8 0.4% 0.2% 

16 11.8 0.4% 0.2% 

17 11.8 0.4% 0.2% 

18 11.8 0.4% 0.2% 

19 11.8 0.4% 0.2% 

20 11.8 0.4% 0.2% 

21 11.8 0.4% 0.2% 

22 11.8 0.4% 0.2% 

23 11.8 0.4% 0.2% 

24 11.8 0.4% 0.2% 

25 11.8 0.4% 0.2% 

26 11.8 0.4% 0.2% 

27 11.8 0.4% 0.2% 

28 11.9 0.4% 0.2% 

29 11.9 0.4% 0.2% 

30 11.9 0.4% 0.2% 

31 11.9 0.4% 0.2% 

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. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 57 

Table S-15. Family characteristics of railroad employees assumed for the valuation of survivor benefits 

Percent married 

Widow under 60 with 

eligible child Percent with 

Widow Widow Widow Youngest Youngest Youngest eligible child 

Age of age age under child child child Minor Disabled 

employee

a Total 62 & over 60-61 age 60 under 16 age 16-17 disabled child child 

Under 35 69.0 - - 69.0 59.3 - - 81.8 -

35 - 39 69.0 - - 69.0 61.5 2.0 - 88.4 1.8 

40 - 44 69.0 - - 69.0 58.6 5.6 - 83.8 1.8 

45 - 49 69.0 - - 69.0 32.7 8.8 0.6 55.0 1.8 

50 - 54 69.0 1.6 1.0 66.4 14.3 5.3 1.4 26.3 1.8 

55 - 59 69.0 3.9 3.3 61.8 5.1 2.1 1.1 10.8 1.8 

60 - 64 69.0 19.0 14.9 35.1 1.8 0.7 0.7 4.2 1.8 

65 - 69 69.0 51.2 7.3 10.5 0.6 0.4 0.2 2.0 1.6 

70 - 74 69.0 63.0 2.2 3.8 0.3 0.1 0.1 0.7 1.4 

75 - 79 67.8 65.4 0.8 1.6 0.1 - - 0.3 1.0 

80 - 84 61.4 60.2 0.4 0.8 - - - 0.1 0.8 

85 - 89 51.6 51.1 0.1 0.4 - - - - 0.7 

90 & over 35.3 35.0 0.1 0.2 - - - - 0.6 

Average ages of widows 

Widow under 60 with 

eligible child Average ages of children 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 - - 5 6 - 2.1 

35 - 39 - - 36 36 38 - 7 8 20 2.1 

40 - 44 - - 41 41 42 - 9 10 20 1.9 

45 - 49 - - 46 44 47 48 11 12 22 1.6 

50 - 54 64 61 50 47 49 52 11 12 24 1.5 

55 - 59 65 61 54 49 51 55 11 12 27 1.4 

60 - 64 66 61 56 50 52 56 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 79 61 55 - - - - 12 47 1.3 

85 - 89 83 61 55 - - - - - 51 -

90 & over 87 61 55 - - - - - 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.
 
58
 

MORTALITY, REMARRIAGE, AND RELATED EXPERIENCE 

1. Mortality of age annuitants. The mortality studies conducted for age annuitants are summarized 

in Tables S-16 through S-18. The tables show actual-to-expected ratios by age, sex, year and 

duration on the basis of the 25h and 26th valuation standards. 

2.	 Mortality after disability retirement. The mortality studies conducted for disability annuitants 

are summarized in Tables S-19 through S-21. 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-22. The table provides crude rates and actual-to-expected ratios. 

4. Total termination, mortality and probability of spouse. Tables S-23 and S-24 show, 

respectively, the total termination and mortality experience of spouse annuitants between 

anniversaries of retirement in 2009 and 2012. Spouse mortality is not used directly in any part 

of the valuation. Table S-25 shows, as of December 31, 2012, 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-25. 

5. Mortality and remarriage of widows. Table S-26 shows ratios of actual deaths of widow 

annuitants to those expected on the basis of the 25th and 26th valuation standards. Table S-27 

shows ratios of actual remarriages to those expected on the basis of the 1997 RRB Remarriage 

Table. 

6. Termination of disabled children. Table S-28 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. 

7. Mortality improvement. Table S-29 shows average annual improvement in annuitant mortality 

and spouse total termination from 1957 through 2011. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 59 

Table S-16. Mortality experience of railroad age annuitantsa between anniversaries of retirement in 2009 and 2012, 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 101,103 586,909 110,955 85,329 84,738 97,361 71,719 7,030 28,674

Actual deaths 31,781 790 1,526 2,056 3,608 7,025 8,926 5,750 2,100 

Age specific death rates (per thousand) 54.1 7.8 13.8 24.3 42.3 72.2 124.5 200.5 298.7 

Ratio of actual to expected deaths 

1994 GAM malesc 99.5% 73.4% 76.5% 84.6% 91.9% 95.1% 109.0% 113.8% 112.1% 

2010 RRBd 100.7% 99.3% 100.0% 98.2% 97.4% 97.0% 103.4% 104.8% 100.4% 

2010 Base Year RRBe 100.0% 99.3% 102.2% 101.4% 99.9% 97.5% 101.2% 101.0% 98.0% 

B. Male 

Exposed 92,503 525,000 100,365 77,224 76,477 87,449 60,844 5,630 24,508

Actual deaths 28,718 750 1,429 1,909 3,395 6,504 7,947 5,067 1,717 

Age specific death rates (per thousand) 54.7 8.1 14.2 25.0 44.0 74.4 130.6 206.7 305.0 

Ratio of actual to expected deaths 

1994 GAM malesc 102.9% 76.3% 79.2% 87.1% 95.5% 98.2% 114.4% 117.4% 115.1% 

2010 RRBd 104.4% 103.3% 103.6% 101.1% 101.2% 100.2% 108.5% 108.2% 103.0% 

2010 Base Year RRBe 103.7% 103.2% 105.9% 104.3% 103.9% 100.8% 106.2% 104.2% 100.5% 

C. Female 

Exposed 61,909 8,600 8,261 10,590 8,105 9,912 10,875 4,166 1,400 

Actual deaths 3,063 40 97 147 213 521 979 683 383 

Age specific death rates (per thousand) 49.5 4.7 9.2 17.8 26.3 52.6 90.0 163.9 273.6 

Ratio of actual to expected deaths 

1995 RRB Widowsf

, 1-year rateback 97.1% 47.6% 62.2% 76.6% 72.1% 89.5% 102.4% 120.2% 120.0% 

2010 RRBd 75.5% 58.0% 66.4% 71.9% 60.9% 69.0% 74.9% 85.5% 90.2% 

2010 Base Year RRBe 74.7% 58.0% 67.9% 74.3% 62.5% 69.3% 73.3% 82.3% 88.3% 

D. Immediateg 

Exposed 76,992 378,760 70,667 51,988 49,281 57,999 46,624 4,940 20,269

Actual deaths 20,626 561 958 1,226 2,111 4,257 5,912 4,124 1,477 

Age specific death rates (per thousand) 54.5 7.3 13.6 23.6 42.8 73.4 126.8 203.5 299.0 

Ratio of actual to expected deaths 

2010 RRBd 101.6% 94.3% 98.8% 95.6% 98.9% 98.3% 104.9% 106.3% 100.9% 

2010 Base Year RRBe 100.8% 94.2% 101.0% 98.7% 101.5% 98.8% 102.6% 102.4% 98.5% 

E. Deferred

g 

Exposed 24,111 208,149 40,288 32,750 36,048 39,362 25,095 8,405 2,090 

Actual deaths 11,155 229 568 830 1,497 2,768 3,014 1,626 623 

Age specific death rates (per thousand) 53.6 9.5 14.1 25.3 41.5 70.3 120.1 193.5 298.1 

Ratio of actual to expected deaths 

2010 RRBd 98.9% 114.1% 102.1% 102.3% 95.3% 95.0% 100.6% 101.4% 99.3% 

2010 Base Year RRBe 98.5% 114.4% 104.4% 105.6% 97.8% 95.6% 98.5% 97.7% 97.0% 

a Nondisability retirement.
 

b Age nearest birthday at the beginning of the year of exposure.
 

c 1994 Group Annuity Mortality Static Table.
 

d 2010 RRB Annuitants Mortality Table.
 

e 2010 Base Year 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. 
60
 

Table S-17. Mortality experience of railroad age annuitantsa

 between anniversaries of retirement in 2009 and 2012, by year 

Ageb 

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95 & over 

1. 2009-2012 experience 

Exposed 586,909 101,103 110,955 84,738 85,329 97,361 71,719 28,674 7,030 

Actual deaths 31,781 790 1,526 2,056 3,608 7,025 8,926 5,750 2,100 

Crude rate per 1,000 54.1 7.8 13.8 24.3 42.3 72.2 124.5 200.5 298.7 

Ratio Act./Exp.c 100.7% 99.3% 100.0% 98.2% 97.4% 97.0% 103.4% 104.8% 100.4% 

Ratio Act./Exp.d 100.0% 99.3% 102.2% 101.4% 99.9% 97.5% 101.2% 101.0% 98.0% 

2. Crude rate per 1,000 for

 individual yearse 

2009 - 2010 55.1 8.4 13.8 23.6 43.3 73.8 124.5 198.3 297.1 

2010 - 2011 54.2 7.5 14.5 25.3 42.4 69.5 126.3 197.9 308.2 

2011 - 2012 53.2 7.5 13.0 23.9 41.0 73.1 122.6 205.2 291.1 

3. Ratio Act./Exp.c

 for

 individual yearse 

2009 - 2010 101.4% 108.5% 101.3% 95.4% 99.3% 99.6% 103.8% 103.7% 99.8% 

2010 - 2011 100.7% 95.8% 105.4% 102.2% 97.7% 93.4% 104.8% 103.5% 103.5% 

2011 - 2012 99.9% 94.6% 93.8% 97.2% 94.8% 97.9% 101.5% 107.3% 98.0% 

4. Ratio Act./Exp.d

 for

 individual yearse 

2009 - 2010 100.8% 108.4% 103.5% 98.5% 101.9% 100.2% 101.6% 99.9% 97.5% 

2010 - 2011 100.0% 95.7% 107.7% 105.5% 100.3% 93.9% 102.6% 99.7% 101.0% 

2011 - 2012 99.2% 94.5% 95.9% 100.3% 97.3% 98.4% 99.4% 103.3% 95.7% 

a Nondisability retirement.
 

b Age nearest birthday at the beginning of the year of exposure.
 

c Expected based on 2010 RRB Annuitants Mortality Table.
 

d Expected based on 2010 Base Year RRB Annuitants Mortality Table.
 

e Exposure is between anniversaries of retirement in indicated years.
 
 

 

 

 

61
 

Table S-18. Mortality ratios for railroad age annuitants on a select and ultimate

 basis between anniversaries of retirement in 2009 and 2012 

Duration Exposure 

Actual 

deaths 

Crude rate 

per 1,000 

Ratio 

Act./Exp.a 

Ratio 

Act./Exp.b 

0 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 & over 

31,413 

30,506 

29,295 

26,931 

24,850 

22,788 

22,081 

25,400 

23,014 

21,360 

329,271 

236 

271 

256 

283 

312 

316 

348 

435 

431 

485 

28,408 

7.5 

8.9 

8.7 

10.5 

12.6 

13.9 

15.8 

17.1 

18.7 

22.7 

86.3 

96.2% 

101.6 

89.7 

96.2 

102.3 

100.4 

101.8 

100.3 

95.2 

99.3 

100.9 

96.0% 

102.0 

90.4 

97.5 

104.0 

102.5 

104.3 

102.9 

97.9 

102.3 

99.9 

All durations 586,909 31,781 54.1 100.7% 100.0% 

a Expected based on 2010 RRB Annuitants Mortality Table. 

b Expected based on 2010 Base Year RRB Annuitants Mortality Table. 
 

 

 

 

 

 

 

 

 

 

 

 62 

Table S-19. Age specific death rates of railroad disability annuitants between anniversaries

 of retirement in 2009 and 2012, by age and duration 

Select section 

Age at retirementa 

All ages Under 40 40-44 45-49 50-54 55-59 60 & over 

Exposed 

Duration 0 9,237 158 263 480 1,967 4,365 2,005 

1 9,551 183 244 531 2,255 4,380 1,959 

2 9,567 191 227 567 2,503 4,263 1,817 

3 9,844 174 217 689 2,818 4,282 1,665 

4 10,349 152 228 923 3,182 4,327 1,538 

Actual deaths 

Duration 0 295 b b 18 40 157 70 

1 247 b b 15 40 106 79 

2 199 b b b 40 95 50 

3 180 b b 12 36 84 41 

4 208 b b 16 49 91 44 

Crude rate per 1,000 

Duration 0 31.9 b b 37.5 20.3 36.0 34.9 

1 25.9 b b 28.3 17.7 24.2 40.3 

2 20.8 b b b 16.0 22.3 27.5 

3 18.3 b b 17.4 12.8 19.6 24.6 

4 20.1 b b 17.3 15.4 21.0 28.6 

Ultimate section, durations 5 and over 

Agec Exposed 

Actual 

deaths 

Crude rate 

per 1,000 

Under 50 

50-54 

55-59 

60-64 

65-69 

70-74 

75-79 

80-84 

85 & over 

1,825 

9,221 

31,384 

51,270 

43,881 

28,222 

20,604 

16,411 

10,478 

15 

125 

516 

1,078 

1,333 

1,280 

1,372 

1,760 

1,908 

8.2 

13.6 

16.4 

21.0 

30.4 

45.4 

66.6 

107.2 

182.1 

All ages 213,295 9,387 44.0 

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. 
Table S-20. Mortality experience of railroad disability annuitants between anniversaries of retirement in 2009 and 2012, by dis

All disability annuitants Annuitants with disability freeze Annuitants with

Attained Actual Crude rate Actual Crude rate Ratio Ratio Actual Cru

age

a Exposed deaths per 1,000 Exposed deaths per 1,000 Act./Expb Act./Expc Exposed deaths per 

Under 40 721 13 18.0 698 12 17.2 107.3% 99.8% 23 f 

40-44 1,367 19 13.9 1,268 18 14.2 83.6 77.7 99 f 

45-49 3,153 60 19.0 2,578 58 22.5 125.0 117.2 575 f 

50-54 17,530 268 15.3 11,091 218 19.7 102.2 97.6 6,440 50 55-59 50,309 941 18.7 34,866 764 21.9 102.8 100.5 15,443 177 60-64 67,093 1,502 22.4 48,424 1,236 25.5 100.5 101.0 18,669 266 65-69 45,950 1,393 30.3 32,649 1,085 33.2 98.4 100.7 13,301 308 70-74 28,226 1,280 45.3 19,368 963 49.7 99.5 101.4 8,858 317 

75-79 20,604 1,372 66.6 12,576 885 70.4 93.0 93.8 8,028 487 

80-84 16,413 1,760 107.2 8,771 1,007 114.8 101.6 101.6 7,642 753 85-89 7,662 1,219 159.1 4,152 698 168.1 101.9 101.1 3,510 521 90-94 2,351 545 231.8 1,477 357 241.7 102.2 101.2 874 188 

95 & over 465 144 309.7 308 95 308.4 93.8 94.7 157 49 

All ages 261,842 10,516 40.2 178,226 7,396 41.5 99.8% 100.0% 83,616 3,120 

a

 Age nearest birthday at the beginning of the year of exposure.

b

 Expected based on 2010 RRB Disabled Mortality Table for Annuitants with Disability Freeze.

c

 Expected based on 2010 Base Year RRB Disabled Mortality Table for Annuitants with Disability Freeze.

d

 Expected based on 2010 RRB Disabled Mortality Table for Annuitants without Disability Freeze.

e

 Expected based on 2010 Base Year RRB Disabled Mortality Table for Annuitants without Disability Freeze.

f

 Fewer than 10 actual deaths.
64
 

Table S-21. Percentages of railroad disability annuitants included in the 26th valuation mortality studies

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

Period between anniversaries of retirement 

Duration and type 

of freeze decision 

2009-2010 

Actual 

Exposures deaths 

2010-2011 

Actual 

Exposures deaths 

2011-2012 

Actual 

Exposures deaths 

Duration 0

 Freeze allowed 

Freeze disallowed 

No freeze decision 

84.8% 

15.2 

0.0 

91.8% 

8.2 

0.0 

85.5% 

14.4 

0.0 

95.4% 

4.6 

0.0 

85.3% 

14.2 

0.4 

94.4% 

5.6 

0.0 

Duration 1

 Freeze allowed 

Freeze disallowed 

No freeze decision 

84.0 

15.9 

0.0 

82.7 

17.3 

0.0 

84.6 

15.3 

0.0 

87.4 

12.6 

0.0 

85.2 

14.8 

0.0 

96.2 

3.8 

0.0 

Duration 2

 Freeze allowed 

Freeze disallowed 

No freeze decision 

82.6 

17.4 

0.0 

87.5 

12.5 

0.0 

84.2 

15.8 

0.0 

90.4 

9.6 

0.0 

84.7 

15.3 

0.0 

90.3 

9.7 

0.0 

Duration 3

 Freeze allowed 

Freeze disallowed 

No freeze decision 

79.8 

20.2 

0.0 

94.7 

5.3 

0.0 

82.6 

17.4 

0.0 

89.1 

10.9 

0.0 

84.1 

15.9 

0.0 

88.2 

11.8 

0.0 

Duration 4

 Freeze allowed 

Freeze disallowed 

No freeze decision 

78.2 

21.8 

0.0 

85.4 

14.6 

0.0 

79.6 

20.4 

0.0 

93.4 

6.6 

0.0 

82.5 

17.5 

0.0 

90.8 

9.2 

0.0 

Duration 5 and over

 Freeze allowed 

Freeze disallowed 

No freeze decision 

64.1 

35.9 

0.0 

67.3 

32.7 

0.0 

64.7 

35.3 

0.0 

67.5 

32.5 

0.0 

65.2 

34.8 

0.0 

68.9 

31.1 

0.0 
65 

Table S-22. Mortality experience of activea railroad employees during calendar years 2007-2011 

Actual Crude rate Ratio Ratio 

Ageb Exposed deaths per 1,000 Act./Exp.c Act./Exp.d 

Under 35 254,371 230 0.9 84.8% 101.2% 

35-39 147,731 156 1.1 88.3 98.3 

40-44 144,217 198 1.4 98.4 104.7 

45-49 144,943 245 1.7 95.7 99.6 

50-54 197,418 447 2.3 93.0 97.5 

55-59 223,946 714 3.2 89.3 97.8 

60-64 75,703 360 4.8 90.5 105.6 

65 & over 12,524 94 7.5 75.6 100.5 

All ages 1,200,852 2,444 2.0 90.3% 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 2006 RRB Active Service Mortality Table.
 

d Expected deaths based on 2009 RRB Active Service Mortality Table.
 
66
 

Table S-23. Total termination experience of spouse annuitants between anniversaries of retirement in 2009 and 2012a 

Ageb 

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90 & over 

1. 2009-2012 experience 

Exposedc 429,415 93,821 102,547 80,537 69,112 52,013 24,949 6,436 

Actual terminations 30,180 2,210 3,714 4,464 5,976 6,828 5,104 1,884 

Crude rate per 1,000 70.3 23.6 36.2 55.4 86.5 131.3 204.6 292.7 

Ratio Act./Exp. Id 101.1% 92.4% 98.2% 100.1% 102.3% 102.3% 105.9% 99.8% 

Ratio Act./Exp. IIe 100.0% 101.7% 102.0% 99.4% 98.9% 98.1% 102.2% 100.5% 

2. Crude rate per 1,000 for

 individual years 

2009 - 2010 72.5 26.3 34.9 58.6 89.3 130.6 206.8 281.9 

2010 - 2011 71.2 22.5 38.1 55.8 85.2 134.2 209.0 299.4 

2011 - 2012 67.2 22.0 35.7 51.9 84.7 129.0 197.7 295.9 

3. Ratio Act./Exp. for

 individual years Id 

2009 - 2010 103.0% 103.9% 94.7% 105.5% 105.5% 101.8% 107.2% 96.2% 

2010 - 2011 102.2% 88.3% 103.0% 100.8% 100.6% 104.7% 108.2% 102.1% 

2011 - 2012 98.0% 86.0% 96.8% 94.0% 100.3% 100.4% 102.1% 100.9% 

4. Ratio Act./Exp. for

 individual years IIe 

2009 - 2010 101.7% 114.5% 98.4% 104.8% 102.0% 97.6% 103.5% 96.8% 

2010 - 2011 101.1% 97.2% 107.0% 100.1% 97.3% 100.4% 104.4% 102.7% 

2011 - 2012 97.1% 94.6% 100.5% 93.4% 97.0% 96.3% 98.6% 101.5% 

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 2010 RRB Spouse Total Termination Table.
 e Expected based on 2010 Base Year RRB Spouse Total Termination Table.
 
67
 

Table S-24. Mortality experience of spouse annuitants between anniversaries of retirement in 2009 and 2012a 

Ageb 

All ages 60-64 65-69 70-74 75-79 80-84 85-89 90 & over 

1. 2009-2012 experience 

Exposedc 419,360 93,004 101,238 78,993 67,083 49,780 23,351 5,912 

Actual deaths 10,069 576 1,096 1,376 1,917 2,361 1,907 836 

Crude rate per 1,000 24.0 6.2 10.8 17.4 28.6 47.4 81.7 141.4 

Ratio Act./Exp.d 77.4% 65.1% 73.8% 75.0% 76.7% 78.7% 82.9% 83.4% 

2. Crude rate per 1,000 for

 individual years 

2009 - 2010 25.4 6.7 11.5 19.6 28.1 48.4 86.0 146.9 

2010 - 2011 24.0 6.6 10.5 16.8 29.5 47.4 80.3 138.4 

2011 - 2012 22.7 5.3 10.6 15.8 28.2 46.4 78.6 139.4 

3. Ratio Act./Exp. for

 individual yearsd 

2009 - 2010 80.8% 71.0% 78.4% 84.1% 75.1% 80.3% 87.6% 87.5% 

2010 - 2011 77.0% 69.3% 71.2% 72.4% 79.1% 78.6% 81.3% 81.2% 

2011 - 2012 74.3% 55.7% 72.0% 68.4% 75.9% 77.0% 79.8% 81.9% 

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 2013 RRB Mortality Table for Widows.
 
68 

Table S-25. Number of retired employees and number with a spouse eligible for railroad

 retirement benefits, by age of employee on December 31, 2012 

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 2,914 650 0.223 

61 5,974 2,159 0.361 

62 7,067 3,231 0.457 3,674 305 0.083 

63 7,140 3,823 0.535 4,842 990 0.204 

64 7,603 4,664 0.613 5,416 1,474 0.272 

65 7,679 5,090 0.663 5,744 1,919 0.334 

66 8,269 5,658 0.684 6,731 2,699 0.401 

67 5,829 4,188 0.718 4,977 2,243 0.451 

68 5,951 4,427 0.744 4,972 2,424 0.488 

69 5,511 4,155 0.754 4,828 2,490 0.516 

70 5,795 4,545 0.784 4,840 2,629 0.543 

71 4,792 3,739 0.780 4,205 2,403 0.571 

72 4,359 3,431 0.787 3,920 2,318 0.591 

73 3,732 2,948 0.790 3,408 2,072 0.608 

74 3,730 2,910 0.780 3,360 2,016 0.600 

75 3,697 2,870 0.776 3,368 2,097 0.623 

76 3,580 2,734 0.764 3,002 1,815 0.605 

77 3,297 2,545 0.772 3,012 1,880 0.624 

78 3,471 2,593 0.747 3,060 1,859 0.608 

79 3,262 2,427 0.744 2,711 1,588 0.586 

80 3,360 2,368 0.705 2,791 1,649 0.591 

81 3,255 2,314 0.711 2,581 1,472 0.570 

82 3,519 2,388 0.679 2,687 1,513 0.563 

83 3,526 2,369 0.672 2,566 1,421 0.554 

84 3,782 2,474 0.654 2,511 1,300 0.518 

85 3,837 2,368 0.617 2,549 1,270 0.498 

86 3,598 2,112 0.587 2,452 1,111 0.453 

87 3,190 1,718 0.539 2,110 867 0.411 

88 2,767 1,424 0.515 1,825 702 0.385 

89 2,404 1,211 0.504 1,593 565 0.355 

90 2,109 1,011 0.479 1,344 471 0.350 

91 1,583 675 0.426 1,058 325 0.307 

92 1,326 513 0.387 851 248 0.291 

93 1,038 355 0.342 610 170 0.279 

94 774 261 0.337 458 101 0.221 

95 562 179 0.319 328 81 0.247 

96 403 115 0.285 247 40 0.162 

97 253 64 0.253 172 34 0.198 

98 174 40 0.230 112 11 0.098 

99 & over 271 45 0.166 226 20 0.088 

a Age nearest birthday. 
Table S-26. Mortality experience of widow annuitants between anniversaries of retirement in 2009 and 2012 

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. 2009-2012 experience 

Exposed 

Actual deaths 

Crude rate per 1,000 

Ratio Act./Exp.b 

Ratio Act./Exp.c 

404,375 

33,726 

83.4 

103.9% 

106.0% 

1,346 

e 

e 

e 

e 

631 

e 

e 

e 

e 

488 

e 

e 

e 

e 

16,669 

137 

8.2 

77.8% 

87.1% 

27,245 

450 

16.5 

100.6% 

111.9% 

39,511 

1,034 

26.2 

101.3% 

112.3% 

62,047 

2,391 

38.5 

94.7% 

104.1% 

89,469 

5,563 

62.2 

98.3% 

105.1% 

89,704 

9,182 

102.4 

104.2% 

107.1% 

55,039 

8,963 

162.8 

108.1% 

105.9% 

22,229 

6,006 

270.2 

108.7% 

105.3% 

2. Crude rate per 1,000 for

 individual yearsc 

2009 - 2010 82.0 e e e 7.9 17.5 25.4 38.3 62.3 101.2 161.1 272.1 

2010 - 2011 84.2 e e e 8.3 16.0 25.0 38.3 62.6 103.9 163.1 275.8 

2011 - 2012 84.2 e e e 8.4 16.0 28.3 39.0 61.5 102.0 164.2 262.6 

3. Ratio Act./Exp.b for

 individual yearsd 

2009 - 2010 103.2% e e e 75.1% 106.7% 98.1% 93.9% 98.7% 103.1% 106.9% 109.4% 

2010 - 2011 

2011 - 2012 

104.7% 

103.8% 

e 

e 

e 

e 

e 

e 

78.9% 

79.3% 

97.6% 

97.5% 

96.9% 

109.6% 

94.3% 

96.1% 

99.1% 

97.2% 

105.8% 

103.9% 

108.4% 

109.0% 

111.0% 

105.7% 

4. Ratio Act./Exp.c for

 individual yearsd 

2009 - 2010 105.4% e e e 84.0% 118.7% 108.7% 103.2% 105.4% 105.9% 104.7% 105.9% 

2010 - 2011 106.8% e e e 88.3% 108.6% 107.3% 103.7% 105.9% 108.6% 106.1% 107.6% 

2011 - 2012 105.8% e e e 88.7% 108.5% 121.4% 105.6% 103.8% 106.8% 106.7% 102.4% 

a

 Age nearest birthday at the beginning of the year of exposure. 

b

 Expected based on 1995 RRB Mortality Table for Widows. 

 Expected based on 2013 RRB Mortality Table for Widows. 

d

 Exposure is between anniversaries of retirement in indicated years. 

e Fewer than 10 actual deaths. 

c
 

 

 

 

 

 

c

 70 

Table S-27. Remarriage experience of widows between 2000 and 2012 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 77,929 106 168 304 441 739 958 6,303 8,678 60,234 

1 78,176 115 163 300 447 826 1,908 6,421 8,951 59,046 

2 77,660 112 174 301 467 842 2,620 6,451 9,286 57,407 

3 76,839 109 171 298 449 836 3,288 6,499 9,760 55,429 

4 75,645 108 170 278 442 833 3,824 6,542 10,158 53,290 

5 or more 1,432,470 58 322 998 1,572 3,062 6,001 40,479 76,914 1,303,064 

2. Actual remarriages 

Durationb 0 80 c c c c c c 14 16 41 

1 167 c c c c c c 30 41 78 

2 195 c c c c c 15 35 40 79 

3 179 c c c c c 24 40 34 59 

4 151 c c c c c 27 35 31 47 

5 or more 1,044 c c 10 13 18 21 178 223 572 

3. Crude remarriage rate per 1,000 

Durationb 0 1.03 c c c c c c 2.22 1.84 0.68 

1 2.14 c c c c c c 4.67 4.58 1.32 

2 2.51 c c c c c 5.73 5.43 4.31 1.38 

3 2.33 c c c c c 7.30 6.15 3.48 1.06 

4 2.00 c c c c c 7.06 5.35 3.05 0.88 

5 or more 0.73 c c 10.02 8.27 5.88 3.50 4.40 2.90 0.44 

4. Ratio Act./Exp.d 

Durationb 0 68.5% c c c c c c 47.7% 68.8% 77.1% 

1 66.9% c c c c c c 54.5% 78.5% 75.6% 

2 81.7% c c c c c 61.1% 65.4% 81.7% 91.8% 

3 88.8% c c c c c 71.1% 84.2% 83.0% 110.5% 

4 79.2% c c c c c 70.9% 80.6% 77.1% 97.6% 

5 or more 95.3% c c 60.5% 72.0% 83.0% 97.6% 86.1% 99.7% 99.0% 

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.
 

Fewer than 10 actual remarriages.
 d Expected based on 1997 RRB Remarriage Table. 
71 

Table S-28. Total termination experience of disabled children annuitants

 between anniversaries of retirement in 2009 and 2012 

Actual Ratio 

Agea Exposed terminations Act./Exp.b 

Under 25 448 c c 

25-29 539 c c 

30-34 745 10 130.2% 

35-39 1,032 12 116.4 

40-44 1,520 21 116.1 

45-49 2,751 45 110.3 

50-54 3,471 58 88.2 

55-59 3,715 114 124.5 

60-64 3,405 143 127.8 

65-69 2,975 146 110.7 

70-74 2,056 140 112.4 

75-79 1,433 112 93.7 

80-84 998 119 103.2 

85-89 457 75 102.7 

90 & over 170 40 101.3 

All ages 25,715 1,045 108.1% 

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.
 
72
 

Table S-29. Improvement in annuitant mortality and spouse total termination 

Age of Average annual improvement in annuitant mortalitya 

employee 1957 - 1984 1984 - 2011 1957 - 2011 

60 - 64 2.7% 1.9% 2.3% 

65 - 69 1.4% 1.9% 1.6% 

70 - 74 0.9% 1.8% 1.3% 

75 - 79 0.8% 1.5% 1.2% 

80 - 84 0.8% 1.1% 0.9% 

85 - 89 0.9% 0.5% 0.7% 

90 & over 0.5% 0.1% 0.3% 

Age of Average annual improvement in spouse total terminationb 

spouse 1957 - 1984 1984 - 2011 1957 - 2011 

60 - 64 NA 1.8% NA 

65 - 69 1.2% 1.6% 1.4% 

70 - 74 0.7% 1.4% 1.1% 

75 - 79 0.7% 1.1% 0.9% 

80 - 84 0.8% 0.8% 0.8% 

85 & over 0.4% 0.2% 0.3% 

a Includes both disabled and nondisabled annuitants. 

b Mainly death of employee or death of spouse. 
73
 

RETIREMENT STUDIES 

1. Age retirement. Age retirement studies covering experience during calendar years 2010-2012 

are summarized in Tables S-30 through S-32. Table S-30 shows a comparison among crude 

retirement rates for 2010-2012, the 25th valuation retirement rates, and the 26th valuation 

retirement rates. Tables S-31 and S-32 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-33 shows a comparison of crude disability retirement rates for 

2010-2012 with the 25th and 26th valuation standards. Table S-34 shows ratios of actual 

retirements in 2010-2012 to those expected by age and service. 

Table S-35 shows percentages of disability retirements in 2010-2012 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. 
74 

Table S-30. Ratesa of immediate age retirement 

5-29 years of service 30 or more years of service 

Assumed Assumed 2010-2012 Assumed Assumed 2010-2012 

rates 25th rates 26th Crude rates 25th rates 26th Crude 

Ageb valuation valuation rates valuation valuation rates 

60 0.61 0.60 0.590 

61 0.48 0.46 0.468 

62 0.11 0.10 0.098 0.40 0.35 0.355 

63 0.09 0.09 0.086 0.38 0.35 0.351 

64 0.07 0.08 0.080 0.35 0.31 0.314 

65 0.18 0.15 0.149 0.40 0.37 0.368 

66 0.33 0.32 0.320 0.35 0.33 0.333 

67 0.25 0.26 0.268 0.30 0.32 0.321 

68 0.25 0.20 0.207 0.30 0.30 0.274 

69 0.20 0.20 0.194 0.30 0.30 0.315 

70 0.20 0.20 0.225 0.30 0.30 0.337 

71 0.20 0.20 0.276 0.20 0.25 0.278 

72 0.20 0.20 0.186 0.20 0.20 0.237 

73 0.20 0.20 0.186 0.20 0.20 0.191 

74 0.20 0.20 c 0.20 0.20 0.246 

75 & over 0.20 0.20 0.239 0.20 0.20 0.205 

a Technically probabilities, because exposures were not adjusted for other separations.
 

b Age attained in calendar year of exposure.
 

c Insufficient data.
 
75 

Table S-31. Immediate agea retirement experience of railroad employees with

 5-29 years of service during calendar years 2010-2012 

Ageb Exposedc 

Actual 

retirements 

Crude rated 

per 1,000 

Ratio 

Act./Exp. Ie 

Ratio 

Act./Exp. IIe 

62 

63 

64 

65 

66 

67 

68 

69 

70-74 

75 & over 

4,427 

3,412 

2,577 

1,798 

1,228 

723 

513 

356 

606 

113 

432 

293 

205 

268 

393 

194 

106 

69 

134 

27 

97.6 

85.9 

79.5 

149.1 

320.0 

268.3 

206.6 

193.8 

221.1 

238.9 

88.7% 

95.4 

113.6 

82.8 

97.0 

107.3 

82.7 

96.9 

110.6 

119.5 

97.6% 

95.4 

99.4 

99.4 

100.0 

103.2 

103.3 

96.9 

110.6 

119.5 

All ages 15,753 2,121 134.6 95.2 99.9 

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 25th and 26th valuations,

 respectively. 
76 

Table S-32. Immediate agea retirement experience of railroad employees with

 30 or more years of service during calendar years 2010-2012 

Ageb Exposedc 

Actual 

retirements 

Crude rated 

per 1,000 

Ratio 

Act./Exp. Ie 

Ratio 

Act./Exp. IIe 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70-74 

75 & over 

18,620 

7,655 

4,262 

3,025 

2,122 

1,437 

874 

589 

416 

305 

567 

176 

10,978 

3,582 

1,513 

1,063 

666 

529 

291 

189 

114 

96 

158 

36 

589.6 

467.9 

355.0 

351.4 

313.9 

368.1 

333.0 

320.9 

274.0 

314.8 

278.7 

204.5 

96.7% 

97.5 

88.7 

92.5 

89.7 

92.0 

95.1 

107.0 

91.3 

104.9 

117.7 

102.3 

98.3% 

101.7 

101.4 

100.4 

101.2 

99.5 

100.9 

100.3 

91.3 

104.9 

112.2 

102.3 

All ages 40,048 19,215 479.8 95.7 99.5 

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 25th and 26th valuations,

 respectively. 
Table S-33. Ratesa of immediateb disability retirement 

10-19 years of service 20-24 years of service 25-29 years of service 30 or mo

Assumed Assumed 2010-2012 Assumed Assumed 2010-2012 Assumed Assumed 2010-2012 Assumed 

rates 25th rates 26th Crude rates 25th rates 26th Crude rates 25th rates 26th Crude rates 25th 

Agec valuation valuation rates valuation valuation rates valuation valuation rates valuation 

Under 35 0.0012 0.0014 d 0.0034 0.0041 d 0.0022 0.0035 d 0.0022 

35 0.0013 0.0015 d 0.0035 0.0044 d 0.0023 0.0038 d 0.0023 36 0.0015 0.0015 d 0.0038 0.0047 d 0.0025 0.0041 d 0.0025 37 0.0016 0.0016 d 0.0043 0.0050 d 0.0028 0.0043 d 0.0028 38 0.0018 0.0016 0.0025 0.0050 0.0053 d 0.0032 0.0046 d 0.0032 39 0.0020 0.0017 0.0014 0.0059 0.0056 d 0.0038 0.0049 d 0.0038 40 0.0022 0.0018 0.0023 0.0070 0.0060 d 0.0045 0.0052 d 0.0045 41 0.0024 0.0020 0.0024 0.0083 0.0063 d 0.0054 0.0053 d 0.0054 42 0.0027 0.0021 0.0022 0.0098 0.0066 0.0077 0.0064 0.0056 d 0.0064 43 0.0031 0.0023 0.0027 0.0114 0.0070 0.0073 0.0074 0.0061 d 0.0074 44 0.0034 0.0025 0.0018 0.0131 0.0077 0.0092 0.0085 0.0069 d 0.0085 45 0.0039 0.0028 0.0032 0.0148 0.0088 0.0063 0.0098 0.0079 d 0.0098 46 0.0044 0.0031 0.0036 0.0167 0.0102 0.0075 0.0112 0.0091 d 0.0112 47 0.0049 0.0035 0.0028 0.0187 0.0120 0.0090 0.0126 0.0105 d 0.0126 48 0.0056 0.0039 0.0056 0.0208 0.0142 0.0101 0.0140 0.0120 0.0110 0.0140 49 0.0063 0.0045 0.0030 0.0231 0.0164 0.0142 0.0154 0.0136 0.0094 0.0154 50 0.0072 0.0051 0.0033 0.0254 0.0187 0.0180 0.0169 0.0152 0.0243 0.0169 

51 0.0082 0.0059 0.0068 0.0280 0.0211 0.0206 0.0184 0.0168 0.0273 0.0184 

52 0.0093 0.0068 0.0072 0.0307 0.0235 0.0214 0.0200 0.0183 0.0237 0.0200 

53 0.0106 0.0079 0.0052 0.0335 0.0259 0.0195 0.0216 0.0198 0.0185 0.0216 

54 0.0121 0.0092 0.0073 0.0365 0.0285 0.0203 0.0232 0.0213 0.0188 0.0232 

55 0.0138 0.0108 0.0104 0.0398 0.0311 0.0311 0.0248 0.0229 0.0221 0.0248 

56 0.0158 0.0127 0.0132 0.0432 0.0337 0.0295 0.0265 0.0246 0.0226 0.0265 

57 0.0180 0.0150 0.0155 0.0468 0.0365 0.0311 0.0282 0.0263 0.0261 0.0282 

58 0.0206 0.0178 0.0170 0.0507 0.0393 0.0325 0.0299 0.0280 0.0318 0.0299 

59 0.0236 0.0211 0.0208 0.0548 0.0422 0.0372 0.0317 0.0298 0.0285 0.0317 

60 0.0403 0.0302 0.0249 0.0591 0.0451 0.0361 0.0335 0.0317 0.0305 0.0163 

61 0.0470 0.0366 0.0316 0.0637 0.0481 0.0587 0.0354 0.0336 0.0305 0.0128 

62 0.0462 0.0391 0.0334 0.0683 0.0561 0.0664 0.0484 0.0452 0.0432 0.0097 

63 0.0454 0.0391 0.0423 0.0677 0.0556 0.0455 0.0478 0.0448 0.0326 0.0070 

64 0.0373 0.0338 0.0295 0.0639 0.0530 0.0422 0.0440 0.0422 0.0463 0.0046 

65 0.0163 0.0228 0.0243 0.0429 0.0396 0.0251 0.0230 0.0288 0.0441 0.0026 

66 0.0000 0.0044 d 0.0000 0.0029 d 0.0000 0.0029 d 0.0000 

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 employmenc

 Age attained in calendar year of exposure.

d Insufficient data.
 78 

Table S-34. Immediate disability retirement experience of railroad employees during calendar years 2010-2012 

Attained agea 

All ages Under 40 40-44 45-49 50-54 55-59 60-64 65 66b 

1. 10-19 years of service 

Exposed 175,523 47,021 42,789 33,430 25,581 17,013 8,416 742 531 

Actual retirements 961 52 98 121 151 253 265 18 f 

Crude rate per 1,000c 5.5 1.1 2.3 3.6 5.9 14.9 31.5 24.3 f 

Ratio Act./Exp.d 75.3% 71.4% 83.9% 72.8% 63.3% 83.3% 72.3% 148.8% f 

Ratio Act./Exp.e 93.5% 71.8% 107.8% 102.7% 86.1% 99.5% 89.1% 106.4% f 

2. 20-24 years of service 

Exposed 43,694 307 6,940 12,190 10,987 8,328 4,271 398 273 

Actual retirements 882 f 55 116 219 267 213 10 f 

Crude rate per 1,000c 20.2 f 7.9 9.5 19.9 32.1 49.9 25.1 f 

Ratio Act./Exp.d 66.7% f 74.0% 50.3% 65.0% 69.0% 77.9% 58.6% f 

Ratio Act./Exp.e 88.9% f 114.3% 76.6% 85.1% 88.7% 98.3% 63.4% f 

3. 25-29 years of service 

Exposed 37,924 0 157 5,016 14,031 12,221 5,821 408 270 

Actual retirements 899 f f 46 313 315 205 18 f 

Crude rate per 1,000c 23.7 f f 9.2 22.3 25.8 35.2 44.1 f 

Ratio Act./Exp.d 95.7% f f 66.8% 110.5% 92.5% 87.0% 191.8% f 

Ratio Act./Exp.e 103.2% f f 77.8% 121.0% 99.2% 92.2% 153.2% f 

4. 30 or more years of service 

Exposed 147,217 0 0 528 27,185 81,521 35,673 1,436 874 

Actual retirements 3,099 f f f 528 2,120 442 f f 

Crude rate per 1,000c 21.1 f f f 19.4 26.0 12.4 f f 

Ratio Act./Exp.d 91.5% f f f 91.2% 91.2% 93.3% f f 

Ratio Act./Exp.e 97.7% f f f 99.5% 97.8% 96.2% 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 25th valuation disability rates. 

e Expected based on 26th valuation disability rates. 

f

 Insufficient data. 
Table S-35. 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 

Assumed Assumed 2010-2012 Assumed Assumed 2010-2012 Assumed Assumed 2010-2012 Assumed 

rates 25th rates 26th Crude rates 25th rates 26th Crude rates 25th rates 26th Crude rates 25th 

Ageb valuation valuation rates valuation valuation rates valuation valuation rates valuation 

Under 35 98.2% 97.8% c 39.3% 44.8% c 39.3% 44.8% c 39.3% 

35 98.2 97.8 c 39.5 44.8 c 39.5 44.8 c 39.5 36 98.2 97.8 c 39.7 44.8 c 39.7 44.8 c 39.7 37 98.2 97.8 c 39.9 44.8 c 39.9 44.8 c 39.9 38 98.2 97.8 100.0% 40.1 44.8 c 40.1 44.8 c 40.1 

39 98.2 97.8 100.0 40.3 44.8 c 40.3 44.8 c 40.3 

40 98.2 97.8 100.0 40.5 44.8 c 40.5 44.8 c 40.5 

41 98.2 97.8 100.0 40.7 44.8 c 40.7 44.8 c 40.7 

42 98.2 97.8 100.0 40.9 44.8 c 40.9 44.8 c 40.9 

43 98.2 97.8 95.5 41.1 44.8 c 41.1 44.8 c 41.1 

44 98.2 97.8 100.0 41.3 44.8 c 41.3 44.8 c 41.3 

45 98.2 97.8 100.0 41.5 44.8 c 41.5 44.8 c 41.5 

46 98.2 97.8 100.0 41.7 44.9 c 41.7 44.9 c 41.7 

47 98.2 97.8 94.7 41.9 45.0 43.5% 41.9 45.0 c 41.9 

48 98.2 97.8 100.0 42.1 45.3 48.0 42.1 45.3 c 42.1 

49 98.2 97.8 100.0 42.6 45.8 51.4 42.6 45.8 c 42.6 

50 98.2 97.8 89.5 43.6 46.8 41.5 43.6 46.8 31.0% 43.6 

51 98.2 97.8 97.3 45.7 49.0 44.7 45.7 49.0 34.2 45.7 

52 98.2 97.8 97.3 50.3 53.6 66.0 50.3 53.6 52.9 50.3 

53 98.2 97.8 96.0 60.0 62.9 64.3 60.0 62.9 50.9 60.0 

54 98.2 97.8 100.0 80.5 81.9 82.9 80.5 81.9 76.4 80.5 

55 98.2 97.8 97.7 93.4 93.9 91.5 93.4 93.9 95.3 93.4 

56 98.2 97.8 100.0 93.4 93.9 98.1 93.4 93.9 93.2 93.4 

57 98.2 97.8 98.1 93.4 93.9 86.3 93.4 93.9 96.9 93.4 

58 98.2 97.8 96.2 93.4 93.9 90.0 93.4 93.9 97.1 93.4 

59 98.2 97.8 100.0 93.4 93.9 92.5 93.4 93.9 90.9 93.4 

60 93.4 93.6 94.8 93.4 93.9 97.6 93.4 93.9 96.0 93.4 

61 93.4 93.6 95.2 93.4 93.9 88.3 93.4 93.9 92.9 93.4 

62 93.4 93.6 94.7 93.4 93.9 94.5 93.4 93.9 98.1 93.4 

63 93.4 93.6 87.5 93.4 93.9 96.8 93.4 93.9 90.0 93.4 

64 93.4 93.6 96.7 93.4 93.9 91.3 93.4 93.9 96.6 93.4 

65 93.4 93.6 94.4 93.4 93.9 c 93.4 93.9 100.0 93.4 

66 93.4 93.6 c 93.4 93.9 c 93.4 93.9 c 93.4 

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 employmeb

 Age attained in calendar year of exposure.

c Insufficient data.
80
 

WITHDRAWAL STUDIES 

Table S-36 shows the select withdrawal experience for the years 2008-2011. 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 26th valuation standard, which was retained from the 25th valuation standard. 
Table S-36. Withdrawal experience of railroad employees during calendar years 2008-2011, 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 Actual netc Crude rate Ratio Actual netc Crude rate Ratio

servicea Exposed withdrawals per 100 Act./Exp.d Exposed withdrawals per 100 Act./Exp.d Exposed withdrawals per 100 Act./Exp.d

0 13,584 2,249 16.6 89.0% 24,153 2,918 12.1 83.9% 15,185 2,155 14.2 80.2%

1 8,529 1,186 13.9 97.2 19,958 1,912 9.6 91.2 12,874 1,191 9.3 82.6 

2 5,923 520 8.8 99.8 21,056 1,361 6.5 93.7 13,768 757 5.5 80.9 

3 4,312 277 6.4 102.0 24,252 1,237 5.1 98.1 16,389 670 4.1 88.9 

4 2,317 110 4.7 95.0 23,519 835 3.6 78.9 17,341 589 3.4 91.8 

5 842 32 3.8 88.4 19,994 593 3.0 74.1 16,238 432 2.7 80.6 

6 115 e e e 15,519 386 2.5 69.1 14,415 339 2.4 75.9 

7 2 e e e 10,739 224 2.1 65.2 12,161 214 1.8 62.8 

8 1 e e e 7,653 170 2.2 79.3 10,286 173 1.7 64.7 

9 1 e e e 6,385 133 2.1 83.3 10,904 182 1.7 69.5 

10 2 e e e 6,240 112 1.8 81.6 13,138 227 1.7 78.5 

11 1 e e e 5,091 64 1.3 62.9 14,271 190 1.3 66.6 

12 1 e e e 3,494 40 1.1 60.3 14,037 169 1.2 63.4 

13 - e e e 2,248 20 0.9 52.3 13,146 134 1.0 60.0 

14 - e e e 1,088 12 1.1 68.9 11,034 148 1.3 83.8 

15 - e e e 429 e e e 9,448 94 1.0 66.3 

16 - e e e 70 e e e 8,088 89 1.1 84.6 

17 - e e e 5 e e e 6,490 37 0.6 47.5 

18 - e e e 2 e e e 5,123 38 0.7 67.4 

19 - e e e - e e e 4,259 30 0.7 64.0 

20 - e e e - e e e 3,392 21 0.6 61.9 

21 - e e e - e e e 2,365 26 1.1 122.2 

22 - e e e - e e e 1,428 e e e 

23 - e e e - e e e 815 e e e 

24 - e e e - e e e 425 e e e 

25 - e e e - e e e 143 e e e 

26 - e e e - e e e 24 e e e 

27 - e e e - e e e 1 e e e 

28 - e e e - e e e - e e e 

29 - e e e - e e e - e e e 

30 & over - e e e - e e e - e e e 

All years 35,630 4,377 12.3 93.2 191,895 10,018 5.2 85.0 247,188 7,916 3.2 78.7 

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

 Expected based on 26th valuation withdrawal rates.

e

 Fewer than 10 actual net withdrawals.
Table S-36. Withdrawal experience of railroad employees during calendar years 2008-2011, 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 Actual netc Crude rate Ratio Actual netc Crude rate Ratio

servicea Exposed withdrawals per 100 Act./Exp.d Exposed withdrawals per 100 Act./Exp.d Exposed withdrawals per 100 Act./Exp.d

0 7,457 1,255 16.8 80.1% 1,607 318 19.8 80.8% 61,986 8,895 14.4 83.5%

1 6,781 664 9.8 84.4 1,572 163 10.4 76.8 49,714 5,116 10.3 88.9 

2 7,098 458 6.5 94.9 1,708 122 7.1 92.8 49,553 3,218 6.5 91.3 

3 8,585 364 4.2 94.2 2,043 125 6.1 107.3 55,581 2,673 4.8 95.8 

4 9,400 337 3.6 96.9 2,276 90 4.0 79.1 54,853 1,961 3.6 86.1 

5 9,182 219 2.4 70.2 2,082 79 3.8 84.3 48,338 1,355 2.8 76.2 

6 8,612 204 2.4 76.4 2,122 62 2.9 73.0 40,783 993 2.4 72.9 

7 7,397 152 2.1 73.4 1,990 46 2.3 64.2 32,289 636 2.0 66.0 

8 6,446 130 2.0 80.7 1,900 62 3.3 102.0 26,286 535 2.0 76.0 

9 6,808 126 1.9 80.5 2,069 44 2.1 73.3 26,167 485 1.9 76.0 

10 8,107 134 1.7 78.7 2,492 41 1.6 65.8 29,979 515 1.7 78.2 

11 8,875 105 1.2 62.3 2,833 40 1.4 61.4 31,071 399 1.3 64.2 

12 8,655 110 1.3 74.8 2,866 48 1.7 83.7 29,053 367 1.3 68.3 

13 8,427 95 1.1 75.2 2,772 32 1.2 64.1 26,593 281 1.1 64.2 

14 7,600 63 0.8 59.2 2,517 31 1.2 77.0 22,239 254 1.1 74.6 

15 6,976 78 1.1 86.0 2,405 10 0.4 29.7 19,258 183 1.0 67.2 

16 6,782 78 1.2 104.6 2,466 20 0.8 67.6 17,406 187 1.1 88.9 

17 6,322 69 1.1 109.1 2,408 24 1.0 90.6 15,225 130 0.9 77.5 

18 5,942 75 1.3 140.2 2,348 11 0.5 52.1 13,415 124 0.9 94.7 

19 6,226 47 0.8 94.4 2,475 14 0.6 70.7 12,960 91 0.7 78.1 

20 6,582 56 0.9 121.5 2,625 25 1.0 136.1 12,599 102 0.8 103.7 

21 6,521 37 0.6 81.1 2,682 33 1.2 205.1 11,568 96 0.8 115.6 

22 6,067 25 0.4 68.7 2,582 32 1.2 247.9 10,077 60 0.6 98.8 

23 5,699 42 0.7 147.4 2,590 13 0.5 125.5 9,104 56 0.6 125.7 

24 5,801 17 0.3 58.6 2,826 19 0.7 168.1 9,052 41 0.5 95.7 

25 6,103 26 0.4 106.5 3,223 31 1.0 320.6 9,469 58 0.6 166.0 

26 6,631 22 0.3 82.9 3,758 19 0.5 168.5 10,413 42 0.4 110.8 

27 7,372 33 0.4 149.2 4,662 25 0.5 268.1 12,035 58 0.5 184.5 

28 8,575 28 0.3 108.8 5,832 e e e 14,407 36 0.2 96.3 

29 10,320 10 0.1 48.4 7,646 15 0.2 196.2 17,966 25 0.1 88.4 

30 & over 51,367 206 0.4 80.2 115,875 951 0.8 91.2 167,242 1,157 0.7 89.0 

All years 272,716 5,265 1.9 83.8 199,252 2,553 1.3 87.9 946,681 30,129 3.2 84.3 

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

 Expected based on 26th valuation withdrawal rates.

e

 Fewer than 10 actual net withdrawals.
83
 

EMPLOYEE AND BENEFICIARY CENSUSES, FAMILY COMPOSITION, AND 

MISCELLANEOUS STATISTICS 

Age and service distributions of active and inactive employees are shown in Tables S-37 and S-38. 

A comparison between 2010 and 2013 active censuses is shown in Table S-39. 

Tables S-40 and S-41 provide a census of beneficiaries on December 31, 2013. Also included are 

their tier 1, tier 2 and vested dual benefit amounts. 

Table S-42 shows the average number of service months in a year for calendar years 2009-2011 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 2013 are shown in Table S-43. 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 2009-2012 is shown in Table S-44, as is 

the distribution for 2006-2009. 

Table S-45 presents family characteristics of railroad employees who died in the period 2009-2012 

with a current connection. 

Table S-46 provides selected employment and benefit statistics for 2010 and 2013. 
Table S-37. Distribution of 2013 active employeesa by age and completed years of service 

Age in 

2013 Total 0 1 2-4 5-9 

Completed years of service 

10-14 15-19 20-24 25-29 30-34 

Total 252,234 18,715 16,198 37,550 58,807 31,903 30,358 15,343 10,344 13,863 

Under 20 

20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 

70 & over 

443 

9,744 

24,016 31,640 33,723 35,762 30,835 30,042 38,772 14,161 

2,622 

474 

369 

3,958 4,613 3,342 2,345 1,788 1,159 

705 334 

82 16 

4 

71 

2,523 4,138 3,375 2,214 1,621 1,118 

685 330 

89 30 

4 

3 

3,060 8,618 8,003 5,954 4,775 3,218 2,298 1,122 

396 

85 18 

0 

203 

6,522 

13,164 11,699 

9,876 7,398 5,440 2,990 1,214 

251 

50 

0 0 

125 

3,549 6,960 6,907 5,466 4,285 2,905 1,337 

314 

55 

0 0 0 

207 

4,451 8,146 6,624 5,192 3,547 1,802 

343 

46 

0 0 0 0 

100 

2,557 4,293 3,752 2,784 1,489 

320 

48 

0 0 0 0 0 

92 

1,515 3,307 3,304 1,796 

284 

46 

0 0 0 0 0 0 

44 

3,754 8,403 1,430 

189 

43 

a

 Employees alive and not retired at the end of 2013 with some railroad service in 2013. 
85 

Table S-38. Census of vesteda inactive employeesb in 2013 by age and

 completed years of service 

Age in 

2013 Total 5-9 

Completed years of service 

10-14 15-19 20-24 25-29 30 & over 

Total 43,449 11,208 19,531 7,311 3,235 1,195 969 

Under 35 

35-39 

40-44 

45-49 

50-54 

55-59 

60-64 

65 & over 

1,307 

2,627 

3,958 

4,165 

5,746 

12,480 

11,396 

1,770 

1,240 

2,161 

2,592 

1,998 

1,651 

999 

509 

58 

66 

445 

1,158 

1,588 

2,658 

6,411 

6,221 

984 

1 

21 

193 

465 

929 

2,612 

2,681 

409 

0 

0 

15 

101 

330 

1,272 

1,290 

227 

0 

0 

0 

13 

120 

439 

550 

73 

0 

0 

0 

0 

58 

747 

145 

19 

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 2013 with no railroad work in 2013. 
86 

Table S-39. Comparison between 2013 and 2010 of selected characteristics of activea

 railroad employees 

Change from 2010 to 2013 

2013 2010 Number Percent 

Number alive and not retired 252,234 238,462 13,772 5.8% 

Percent with 5 or more years

 of service 71.3% 75.0% b b 

Number age 60 or over 17,257 14,583 2,674 18.3% 

Number age 65 or over 3,096 2,168 928 42.8% 

Number age 60-64 with 30 or

 more years of service 5,956 5,626 330 5.9% 

Average age on December 31 43.9 45.1 -1.2 b 

Median age on December 31 43.7 45.8 -2.1 b 

Average years of service

 All employees 13.2 15.1 -1.9 b

 Employees under age 45 6.8 7.1 -0.3 b

 Employees age 45-49 12.7 12.6 0.1 b

 Employees age 60 or over 25.8 26.3 -0.5 b

 Employees age 65 or over 25.6 25.6 0.0 b 

a Active employees were those with some railroad service during the year. 

b Not applicable. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

87 

Table S-40. Census of employee and spouse annuitants on December 31, 2013a 

Monthly benefitsb 

Agec Number Tier 1 Tier 2 Vested dual Supplemental 

1. Employee age annuitants 

60-64 31,942 $ 66,325,709 $ 39,963,413 -$ $ 827,920

65-69 44,149 84,975,855 42,185,166 3,963 943,384 

70-74 31,648 56,910,187 26,470,359 80,381 681,706 

75-79 25,071 37,018,931 17,808,760 347,271 497,422 

80-84 23,576 31,176,106 14,183,434 617,971 453,869 

85-89 21,517 26,754,805 11,105,008 944,644 428,864 

90-94 9,412 11,086,184 3,516,344 521,704 195,342 

95 & over 2,210 2,654,540 583,057 130,051 49,095 

Total 189,525 $ 316,902,317 $ 155,815,541 $ 2,645,985 $ 4,077,602

2. Employee disability annuitants 

Under 40 175 $ 308,622 $ 19,191 $ - $ -

40-44 493 873,569 125,924 - -

45-49 838 1,505,423 316,963 - -

50-54 2,759 5,281,910 1,667,271 - -

55-59 11,896 23,108,932 8,628,736 - -

60-64 21,162 40,213,456 15,329,349 - 222,830 

65-69 18,764 34,043,224 12,436,711 2,947 287,584 

70-74 11,166 18,777,637 6,753,531 36,648 182,295 

75-79 6,613 10,238,808 3,659,501 107,762 124,985 

80-84 4,543 6,543,655 2,133,368 133,692 96,560 

85-89 2,709 3,555,381 980,760 132,259 60,478 

90-94 731 861,192 154,326 37,423 13,802 

95 & over 147 148,336 19,843 7,367 2,137 

Total 81,996 $ 145,460,145 $ 52,225,474 $ 458,098 $ 990,671

3. Spouse annuitants 

Under 60 1,384 $ 1,360,942 $ 706,138 $ - $ -

60-64 31,225 25,583,196 17,028,812 - -

65-69 39,329 22,590,633 16,686,462 - -

70-74 27,853 12,678,507 10,142,877 - -

75-79 19,352 7,715,910 6,059,456 - -

80-84 13,921 5,549,955 3,818,816 - -

85-89 7,005 2,793,168 1,686,197 - -

90-94 1,740 643,809 371,762 1,840 -

95 & over 186 56,986 32,431 5,990 -

Total 141,995 $ 78,973,106 $ 56,532,951 $ 7,830 $ -

a Includes annuities which were in withheld status as of December 31, 2013.

 Therefore, these figures may disagree with other published data. 

b Amounts shown reflect benefits paid in January 2014. 

c Age attained in 2013. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88 

Table S-41. Census of survivor annuitants on December 31, 2013a 

Monthly benefitsb 

Agec Number Tier 1 Tier 2 Vested dual 

1. Aged widows and widowersd 

60-64 4,992 $ 7,238,455 $ 2,387,302 -$ 

65-69 9,258 12,677,524 3,804,370 -

70-74 12,046 14,654,466 4,599,109 -

75-79 16,519 18,233,047 5,842,570 -

80-84 23,389 25,669,306 7,312,152 -

85-89 25,279 27,601,094 6,473,819 -

90-94 16,337 17,621,469 3,103,859 1,508 

95 & over 6,462 5,812,473 936,838 30,197 

Total 114,282 $ 129,507,834 $ 34,460,019 $ 31,705

2. Other survivorse 

0-4 46 $ 50,348 $ 3,148 -$ 

5-9 278 330,792 23,513 -

10-14 685 848,569 66,613 -

15-19 914 1,186,939 119,510 -

20-24 118 156,076 18,260 -

25-29 159 195,870 19,573 -

30-34 259 305,686 40,482 -

35-39 353 396,050 50,688 -

40-44 573 621,242 103,853 -

45-49 829 842,313 159,030 -

50-54 1,425 1,418,960 300,420 -

55-59 2,048 1,905,740 453,918 -

60-64 2,148 2,019,135 419,656 -

65-69 1,851 1,671,341 260,800 -

70-74 1,375 1,141,741 169,379 -

75-79 960 752,016 103,670 -

80-84 653 480,006 67,421 663 

85-89 385 262,400 42,147 1,958 

90-94 170 112,039 18,272 2,184 

95 & over 31 21,592 3,608 199 

Total 15,260 $ 14,718,855 $ 2,443,961 $ 5,004

a Includes annuities which were in withheld status as of December 31, 2013.

 Therefore, these figures may disagree with other published data. 

b Amounts shown reflect benefits paid in January 2014. 

c Age attained in 2013. 

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-42. Comparison of service months of railroad employees during calendar years 2009-2011 with assumptions used in the 26th valua

(For employees not separated in the year) 

Years 

of Service months by attained age Service months by calendar year 

servicea Under 25 25-34 35-44 45-54 55 & over Total 2009 2010 2011 Total 

0 5.9 6.2 6.2 6.3 6.6 6.1 6.8 5.0 6.6 6.1 

1 10.4 10.7 10.8 11.1 11.5 10.8 10.1 10.6 11.7 10.8 

2 10.6 10.9 11.0 11.2 11.3 10.9 10.3 11.2 11.6 10.9 

3 10.8 11.0 11.0 11.1 11.3 11.0 10.4 11.1 11.7 11.0 

4 11.4 11.4 11.4 11.5 11.5 11.4 11.2 11.4 11.7 11.4 

5 11.5 11.6 11.6 11.6 11.6 11.6 11.5 11.6 11.8 11.6 

6 11.8 11.7 11.7 11.7 11.6 11.7 11.7 11.7 11.8 11.7 

7 11.8 11.8 11.7 11.7 11.8 11.7 11.7 11.8 11.8 

8 11.8 11.8 11.7 11.7 11.7 11.7 11.7 11.8 11.7 

9 11.8 11.8 11.7 11.7 11.7 11.7 11.7 11.8 11.7 

10 11.8 11.7 11.7 11.7 11.7 11.7 11.7 11.8 11.7 

11 11.9 11.8 11.7 11.6 11.8 11.8 11.7 11.8 11.8 

12 11.8 11.8 11.8 11.7 11.8 11.8 11.8 11.8 11.8 

13 11.8 11.8 11.8 11.7 11.8 11.7 11.8 11.9 11.8 

14 11.9 11.8 11.8 11.7 11.8 11.8 11.8 11.8 11.8 

15 11.9 11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

16 11.8 11.9 11.8 11.7 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 

18 11.9 11.8 11.7 11.8 11.8 11.8 11.8 11.8 

19 11.9 11.8 11.7 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 

21 11.9 11.8 11.7 11.8 11.9 11.8 11.8 11.8 

22 11.9 11.9 11.8 11.8 11.8 11.8 11.8 11.8 

23 11.9 11.9 11.8 11.8 11.8 11.9 11.9 11.8 

24 12.0 11.9 11.7 11.8 11.8 11.8 11.9 11.8 

25 12.0 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

26 11.9 11.8 11.8 11.8 11.8 11.8 11.8 11.8 

27 11.9 11.8 11.8 11.8 11.9 11.8 11.8 

28 11.9 11.8 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 

30 & over 11.9 11.8 11.9 11.9 11.9 11.8 11.9 

a

 Rounded up to nearest whole year. 
 

 90 

Table S-43. Average creditablea compensation per service month during 2013 

Years 

of 

serviceb Tier 1 Tier 2 

0 $3,913 $3,878 

1 4,690 4,602 

2 5,215 5,079 

3 5,422 5,234 

4 5,660 5,428 

5 5,786 5,526 

6 5,944 5,661 

7 6,053 5,752 

8 6,115 5,805 

9 6,322 5,967 

10 6,434 6,008 

11 6,527 6,019 

12 6,466 5,954 

13 6,466 5,976 

14 6,555 6,035 

15 6,703 6,145 

16 6,815 6,167 

17 6,786 6,141 

18 6,922 6,213 

19 6,925 6,194 

20 6,728 6,057 

21 6,576 5,975 

22 6,653 6,006 

23 6,730 6,071 

24 6,834 6,101 

25 6,787 6,085 

26 6,669 5,976 

27 6,660 5,960 

28 6,594 5,934 

29 6,671 5,990 

30 6,641 5,985 

a Maximum creditable annual compensation during 2013 was $113,700 and $84,300

 for tier 1 and tier 2, respectively. 

b Completed service at beginning of year rounded up to nearest whole year. 
91 

Table S-44. Age distribution of new entrants during calendar years 2009-2012

 and comparison with assumptions of the 25th valuation 

Age at 

entrya 2009 2010 

Year of entry 

2011 2012 2009-12b 

25th Val. 

2006-09 

All ages

 Number 

Percent 

6,118 

100.0% 

13,022 

100.0% 

25,002 

100.0% 

18,766 

100.0% 

62,908 

100.0% 

64,689 

100.0% 

Under 20 

20-24 

25-29 

30-34 

35-39 

40-44 

45-49 

50-54 

55 & over 

2.6% 

18.7 

19.7 

14.0 

13.3 

11.1 

10.0 

6.1 

4.5 

2.7% 

19.2 

20.9 

17.0 

13.3 

10.5 

8.2 

4.9 

3.2 

1.8% 

19.5 

23.3 

18.6 

13.6 

10.6 

6.8 

3.8 

2.0 

2.1% 

20.7 

23.9 

19.0 

12.1 

9.6 

6.5 

3.8 

2.4 

2.2% 

19.7 

22.6 

17.9 

13.1 

10.3 

7.3 

4.3 

2.6 

2.7% 

20.3 

21.2 

16.4 

14.3 

11.0 

7.6 

4.1 

2.4 

Average age

 at entry 34.5 33.4 32.6 32.3 32.9 32.9 

Median age

 at entry 32.4 31.5 30.8 30.3 30.9 31.1 

a Age attained in the year of entry (year of entry minus year of birth). 

b Used in 26th valuation. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 92 

Table S-45. Family characteristics of railroad employees who died in 2009-2012 with a current connection 

Percent married 

Widow under 60 with 

eligible child Percent with 

Widow Widow Widow Youngest Youngest Youngest eligible child 

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 41 70.7 - - 70.7 61.0 - - 82.9 -

35 - 39 84 69.0 - - 69.0 65.5 - - 89.3 -

40 - 44 123 78.9 - - 78.9 62.6 4.9 - 86.2 0.8 

45 - 49 160 74.4 0.8 - 73.6 36.7 8.1 0.6 56.9 1.9 

50 - 54 411 67.4 1.6 1.6 64.2 13.5 5.3 1.7 26.0 2.9 

55 - 59 1,343 66.0 4.1 3.6 58.3 5.0 2.1 0.8 11.2 1.9 

60 - 64 2,504 66.5 19.8 14.3 32.4 1.4 0.7 0.7 3.7 1.7 

65 - 69 3,000 69.0 50.8 7.1 11.1 0.7 0.5 0.1 2.2 1.6 

70 - 74 3,427 69.1 62.3 2.3 4.5 0.3 0.1 0.1 0.6 1.4 

75 - 79 4,875 68.5 66.2 0.9 1.4 0.1 - - 0.2 0.8 

80 - 84 8,377 62.2 61.0 0.4 0.8 - - - 0.1 0.9 

85 - 89 10,480 51.7 51.2 0.1 0.4 - - - - 0.7 

90 & over 9,673 35.8 35.6 - 0.2 - - - - 0.5 

Average ages of widows 

Widow under 60 with 

eligible child Average ages of children 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 31.1 31.3 e e 5.5 5.3 e 1.8 

35 - 39 e e 36.7 36.4 e e 6.1 8.2 e 2.4 

40 - 44 e e 41.6 41.3 e e 9.4 10.3 e 1.8 

45 - 49 e e 46.2 45.2 46.8 e 10.7 11.7 e 1.6 

50 - 54 e e 50.7 47.5 48.7 e 12.2 12.5 20.8 1.4 

55 - 59 65.5 60.7 54.2 49.1 51.2 55.1 12.0 12.5 27.2 1.4 

60 - 64 64.5 60.9 55.9 49.2 51.4 56.1 12.2 11.9 29.9 1.3 

65 - 69 66.2 61.1 55.3 47.3 53.9 e 11.5 11.9 35.7 1.3 

70 - 74 69.6 61.0 55.0 49.9 e e 10.9 12.8 38.5 1.2 

75 - 79 74.0 61.1 55.0 e e e e 12.9 44.4 1.1 

80 - 84 78.6 61.1 54.6 e e e e 11.5 49.0 1.3 

85 - 89 82.8 61.0 56.1 e e e e e 51.5 e 

90 & over 86.9 e 55.1 e e e e e 56.1 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.
 
 

 

 

 

 

93 

Table S-46. Selected employment and benefita

 statistics for 2010 and 2013 

Percentage 

2010 2013 change 

1. Membership (thousands of employees) 

Average employment for the year 221 237 7.2% 

Active census, Dec. 31 238 252 5.9 

Retired, Dec. 31 275 272 -1.1 

Nonretired employees with vested rightsb

, total 229 223 -2.6 

Active census, Dec. 31 179 180 +0.6 

Inactive census, Dec. 31 50 43 -14.0 

Employees in active census with 

30 or more years of service 46 33 -28.3 

2. Number of beneficiaries (thousands), Dec. 31, totalc 551 536 -2.7 

Retired employees 275 272 -1.1 

Spouses 138 142 +2.9 

Survivors 144 130 -9.7 

3. Average monthly benefits paid in December 

Retired employees $2,217.89 $2,480.50 +11.8 

Spouses 842.38 954.36 +13.3 

Survivors 1,259.11 1,398.52 +11.1 

4. Amount of monthly benefit payments for the year (millions), total $10,742 $11,629 +8.3 

Retired employees and their spouses 8,560 9,454 +10.4 

Survivors 2,182 2,175 -0.3 

5. Miscellaneous information 

Tier 1 taxable payroll as a percentage of total payroll 94.5% 95.2% 

Benefit payments in year as a percentage of tier 1 taxable payroll 69.8% 65.3% 

Number of beneficiaries per 100 full-time employees 249 226 

Percentage distribution of amount of monthly benefit payments in year

 Retired employees 67.1 68.0

 Spouses 12.5 13.3

 Survivors 20.3 18.7
 

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.