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1045.5 Purpose of Chapter

This chapter explains how survivor annuities are computed and contains instructions for 

estimating survivor benefits.

1045.10 Widow(er)'s Insurance Annuities

1045.10.1 Tier I

A. Original rate - An aged or disabled widow(er)'s original rate is the highest 

applicable PIA from the following list. A young widow(er)'s original rate is 75% of 

the highest applicable survivor PIA from the following list:

1. AIME PIA #1 - if the employee's eligibility year is 1979 or later.

2. Alternative PIA – The 1983 social Security Act Amendments provide an 

alternative method of computing the PIA for aged and disabled 

widow(er)s, (including remarried widow(er)s and surviving divorced 

spouses), if the employee died before attainment of age 62 and the 

widow(er) first meets all criteria to an annuity, other than filing an 

application, in January 1985 or later.

The alternative PIA is an AIME PIA which must be considered if:

• The employee died before attainment of age 62 but after 1978, and

• An aged or disabled widow(er), (including remarried widow(er)s and 

surviving divorced spouses), first meet all eligibility requirements 

January 1, 1985 or later, (OBD must be 1/85 or later).

3. TRANS PIA #1 - if the employee's eligibility year is 1979-1983.

4. AMW PIA #1 - if the employee's eligibility year is before 1979.

5. Special Minimum PIA #1 - if the employee had RR Act or SS Act covered 

employment or self-employment for many years at low earnings.

6. Frozen Minimum PIA #1 - if the employee had low earnings. The 1981 SS 

Act amendments eliminated the frozen minimum PIA 1-1-82 for 

beneficiaries in cases in which the employee's year of eligibility is 1982.

Note: The employee's year of eligibility is the earlier of:

• The month he attained age 62;

• The month he received a disability freeze; or
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• The month he died.

7. Deemed PIA - if the employee was entitled to delayed retirement credits, 

the amount he would have received under the SS Act (PIA #9 plus DRCs) 

is calculated.

Note: A deemed PIA cannot be used in computing a young mother/young 

father's or divorced young mother's annuity.

8. 1977 O.S. PIA - If the employee's eligibility year is 1979 or later and a PIA 

larger than the AIME PIA can be obtained by using the actual earnings 

before 1951.

B. Reduced for maximum rate - A reduction for the SSA family maximum is always 

involved when there are three or more beneficiaries. It may be involved when 

there are two beneficiaries and one of them is an aged or disabled widow(er). 

See FOM-I-1050.10. 

C. First adjusted rate - Ordinarily, the widow(er)'s first adjusted rate is:

• The widow(er)'s reduced for age rate if that rate is less than the RIB limitation rate; 

or

• The widow(er)’s age adjusted rate if (s)he is entitled to an SSA DIB based on her 

own earnings record; or,

• The RIB limitation rate if that rate is less than the reduced for age or age adjusted 

rate; or

• The sole survivor minimum rate if it is higher than age reduced rate, the age 

adjusted rate or the RIB limitation rate;

Note: The 1981 SS Act amendments eliminated the SSM rate effective 1-1-82 in 

cases in which the employee's eligibility year is 1982 or later; or

• The lesser of the original rate or the reduced for maximum rate if the above 

adjustments do not apply.

1. Reduced for Age Rate Prior to the Year 2000 - If the widow(er) is under 

full retirement age on her annuity beginning date, the annuity is subject to 

an age reduction. An aged widow(er) under age 62 on the annuity 

beginning dated is deemed to be age 62. This deeming provision does 

not apply to remarried widow(er)s and surviving divorced spouses. The 

age reduced rate is determined by multiplying the original rate or the 

reduced for maximum rate by the appropriate decimal from the chart in 

FOM-I-10, Appendix K. 
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2. Reduced for Age Rate Effective With the Year 2000.- For widow(er)s born 

January 2, 1940 or later with annuity beginning dates of January 1, 2000, 

and later, new age reduction factors apply, however, the deeming 

provisions applicable prior to the year 2000 still apply. Refer to 

appendices "M" through "X" for the age reduction factors for widow(er)s 

born January 2, 1940 or later with annuity beginning dates of January 1, 

2000, and later.

An aged widow(er)'s age reduction is adjusted at full retirement age to 

take into consideration any months her annuity was not paid between 

ages 62 and full retirement age due to excess earnings.

3. The age adjusted rate - Under the provisions of the Social Security Act, if 

an age reduced widow(er) is entitled to a disability benefit based on her 

own earnings record, (s)he may be entitled to the tier 1 age adjusted rate. 

If this provision applies, only the amount of the widow(er)’s tier 1 which 

exceeds the amount of the disability annuity is reduced for early 

retirement.

a. This provision applies if the following conditions are met:

• The widow(er)’s annuity is age reduced; and,

• The widow(er) is entitled to a disability insurance benefit (DIB) 

under the SS Act and the date of entitlement is the same as, or 

earlier than, the OBD; and,

• The DIB PIA is less than the death PIA (increased for DRC’s) or 

the widow(er)’s share of the maximum, if applicable; and,

• The widow(er)’s tier 1 is not reduced by an additional amount 

(i.e., PSP or EE tier 1) which, when added to the SS DIB, 

exceeds the death PIA; and,

• The OBD is 1/1978 or later

b. Attainment of Full Retirement Age - Under the SS Act, a disability 

insurance benefit is converted to a retirement insurance benefit at 

full retirement age. Therefore, when the widow(er) attains full 

retirement age, the tier 1 age reduction is removed.

c. Tier 2 - Entitlement to this provision has no effect on the 1981 Act 

tier 2.

d. RIB Limit - If the employee’s annuity was age reduced, the RIB limit 

must be considered. If the tier 1 age adjusted rate is higher than the 

RIB limit, either the RIB limit amount or 82.5% of the PIA, 
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whichever is greater, becomes the tier 1 age adjusted rate. If the 

RIB limit applies, there is no change in the age reduction at full 

retirement age.

e. Notifying the Widow That the Age Adjusted Rate Applies - Code 

paragraph 504.5 is included on the award letter. It reads as 

follows:

“Since you are entitled to a Social Security disability insurance 

benefit, we have applied an age reduction to only a portion of your 

Tier 1. When you attain full retirement age, your Tier 1 age 

reduction will be removed.”

f. Example - The widow(er)’s date of birth is 6-15-1936. Her ABD will 

be 3-1-1999. (S)he is receiving a disability annuity based on her 

own earnings record from SSA. The age adjusted rate would be 

computed as follows:

Death PIA $1500.00

SS PIA - 850.00

Difference 650.00

Times age reduction factor X .87175

Age reduced difference 566.63 rounds to 566.60

Age reduced difference $ 566.60

SS PIA + 850

Age adjusted rate 1416.60

When the widow(er) attains full retirement age, the age adjusted 

rate becomes the full death PIA, $1500.00.

4. If the employee received a reduced age and service annuity under either 

the 1937 or 1974 RR Act, the RIB limitation must be considered.

The chart in Appendix L, sometimes called the screening guide, can be 

used to determine if the RIB limitation will apply.

The RIB limitation provides that an aged widow(er)'s first adjusted rate 

cannot exceed the higher of:
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• 82 1/2% of the tier I PIA; or

• The amount the employee would have received under the SS Act. The 

employee's tier I including any age reduction must be recalculated from 

his ABD.

The RIB limitation will not apply in initial DWIA cases because the 

widow(er)'s age reduced rate will always be less than the RIB limit 

amount.

5. Sole survivor minimum - The 1981 SS Act amendments eliminated the Sole 

Survivor Minimum (SSM) rate effective 1-1-82 for beneficiaries in cases in 

which the employee's year of eligibility is 1982 or later.

The SS Act provided that an aged widow(er)'s first adjusted rate would not be 

less than $84.50 if (s)he was the sole survivor. A disabled widow(er)'s first 

adjusted rate would not be less than $84.50 reduced by 43/240 of 1% for 

each month the widow(er) was under age 60 on her ABD.

The sole survivor minimum did not apply if the annuity of another entitled 

beneficiary was being withheld because of work deductions.

The sole survivor minimum did not apply in aged widow(er) cases when the 

ABD was after May 1976. It did not apply in disabled widow(er) cases when 

the ABD was after May 1977. The frozen minimum PIA after reduction for 

age and/or application of the RIB limit produced a higher rate.

The first adjusted rate is rounded down to the dollar before it is reduced for 

other benefits.

D. Reduction for other benefits

1. Public service pension - The widow(er)'s first adjusted rate is subject to 

reduction for entitlement to a public service pension (PSP) based on the 

widow(er)'s own earnings payable to the widow(er). The reduction does 

not apply, however, if social security (FICA) taxes were deducted from her 

government earnings on the last day of her government employment 

and/or the widow(er) filed for and became entitled to an annuity (including 

a retirement annuity which was "converted" to a survivor annuity) before 

12-1-77.

a. The reduction applies to widow(er)s who:

• Do not meet the January 1977 SS Act eligibility requirements (see 

FOM-I-120.40.4). However, the reduction does not apply beginning 

12-1-82 if the annuitant is dependent and eligible for the PSP before 7-

1-83; or
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• Are eligible for the PSP 12-1-82 or later, and are not dependent; or

• Are eligible for the PSP 7-1-83 or later. Dependency does not matter in 

this situation.

b. The amount of the reduction is equal to:

• 100% of the PSP for months before December 1984 and 66 2/3% of 

the PSP beginning in December 1984 if the survivor is first eligible for 

the PSP before 7-1-83;

• 66 2/3% of the PSP if the survivor is first eligible for the PSP 7-1-83 or 

later.

2. Social security benefits - The widow(er)'s first adjusted rate is reduced by 

the full amount of any social security benefit to which she is entitled. This 

is true even though the full amount is not payable because of excess 

earnings.

Remarried widow(er)s who were awarded an annuity prior to August 12, 

1983, will not be reduced for any social security auxiliary benefit to which 

they become entitled.

3. Employee annuity tier I - The widow(er)'s first adjusted rate is reduced for 

any RR retirement annuity as follows:

a. If the reduction for the employee tier I is first applied on an award 

with a final voucher date of 10-1-88 or later, or if the case is 

reopened 10-1-88 or later, the widow(er)'s first adjusted rate is 

reduced by the amount of the employee annuity tier I, after age 

reduction, for all date breaks.

b. If the reduction for the employee tier I is first applied on an award 

with a final voucher date prior to 10-1-88, the widow(er)'s first 

adjusted rate is reduced by the amount of the employee annuity tier 

I, before any age reduction, through 9-30-88. Effective 10-1-88, the 

widow(er)'s first adjusted rate is reduced by the amount of the 

employee annuity tier I, after any age reduction.

c. If both the employee and widow(er) started railroad work after 

1974, the full amount of the survivor annuity is reduced by the full 

amount of the employee annuity to which the widow(er) is entitled.

E. Net tier I - The widow(er)'s net tier I is what is left after reducing her first adjusted 

rate for entitlement to other benefits.

Note: Conviction and confinement for a criminal offense or being one of the 

categories defined in FOM1 150 may require the suspension of an individual’s 
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O/M share or the conversion of his Tier 1 tax status to all NSSEB. See 

FOM1 150 for further information on prisoner procedures. 

Under the 1988 SS Act amendments, a widow(er)'s tier I benefit is not payable 

from the annuity beginning date if the deceased employee had been 

removed/deported on or after 11-10-88, due to associations with the Nazi 

government of Germany during World War II, and the widow(er) is an alien who 

is not living in the U.S.

1045.10.2 Tier II

A. Basic rate - The widow(er)'s basic tier II rate is:

1. 30% of her dollar rounded tier I rate after offset for any public service 

pension for rates payable before 11-1-87, or 30% of her dollar rounded tier 

I rate before offset for any public service pension for rates payable 11-1-

87 or later, if the employee was awarded a RRA payment or died before 

10-1-81 and the widow(er)'s annuity is awarded before 10-1-86; or

2. 50% of the employee's tier II if the employee was not awarded a RRA 

payment and did not die before 10-1-81 or the widow(er)'s annuity is first 

awarded 10-1-86 or later. A reduction for the family maximum is involved 

if there are more than two entitled children. If the widow(er) is under age 

65 on her ABD, her tier II is reduced for age. The reduced for age rate is 

determined by multiplying the basic rate or the reduced for maximum rate 

by the appropriate decimal from the chart in FOM-I-10, Appendix J. 

Effective 1-1-84, a disabled widow(er)'s age reduction cannot exceed a 60 

month reduction. This applies to cases on the rolls and new cases. For 

months before 1-1984, a disabled widow(er)s reduced for age rate was 

determined using the chart in FOM-I-10, Appendix K. 

B. COL Increases

1. June 1, 1982 or later:

a. Widow(er) receiving a tier II based on 30% of her tier I rate:

In 1982 and 1983, a widow(er) received a COL increase on her tier 

II effective June 1 equal to 32.5% of the rise in the Consumer Price 

Index (CPI) between the first quarter of the previous year and the 

first quarter of the current year if her ABD was June 1 or earlier.

Beginning in 1984, a widow(er) will receive a COL increase on her 

tier II effective December 1 equal to 32.5% of the tier I COL, 

provided her ABD is December 1 or earlier.

If the family composition changes and causes a change in the 

widow(er)'s tier I amount, her tier II must be recomputed. First, 
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fictitious tier I amounts are computed for currently eligible family 

members as of May 1982, or the ABD if later. Second, the 

widow(er)'s "new" basic tier II is 30% of her dollar rounded fictitious 

first adjusted tier I rate. Third, the new basic tier II is increased by 

the amount of all tier II COL increases from June 1, 1982, or the 

ABD if later, through the current date. The tier II takeback is not, 

however, recomputed unless the actual tier I rate paid in November 

1983 was incorrect.

b. Widow(er) receiving a tier II based on 50% of the employee's tier II.

In 1982 and 1983 the widow(er) received a COL increase on her 

tier II effective June 1 equal to 32.5% of the rise in the Consumer 

Price Index (CPI) between the first quarter of the previous year and 

the first quarter of the current year if her ABD was June 1 or earlier.

Beginning in 1984, a widow(er) will receive a COL increase on her 

tier II effective December 1 equal to 32.5% of the tier I COL, 

provided her ABD is December 1 or earlier.

The COL increase is applied to her basic rate after any reduction 

for the family maximum or age.

If the family composition changes and causes a change in the 

widow(er)'s share of the employee's tier II, the widow(er)'s tier II 

must be recomputed. First, "new" tier II amounts are computed for 

currently eligible family members as of May 1982, or the ABD if 

later. Second, the widow(er)'s new tier II is increased by the 

amount of all tier II COL increases from June 1, 1982, or the ABD if 

later, through the current date.

2. June 1, 1981 or earlier - The tier II was recomputed whenever the tier I 

rate after offset for any public service pension changed. This means that 

the widow received the benefit of a full cost-of-living increase, not only in 

tier I, but also tier II.

Dual Annuity Adjustment Amount – This was previously called the 

widow(er)'s employee annuity restored amount.

a. A young mother, an aged or disabled widow, or a dependent aged or 

disabled widower is entitled to an increase in the dual annuity 

adjustment amount if the following conditions are met:

• The widow(er) is entitled to her own employee annuity; and

• Either the widow(er) or the deceased employee had 120 months of 

creditable railroad service before 1975.
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In these cases, the dual annuity adjustment amount dual annuity 

adjustment amount is computed the same way as the vested dual 

benefit is computed for a vested widow or a vested dependent 

widower. See FOM-1-1045.10.3. 

The dual annuity adjustment amount is increased by the cumulative 

tier I COL percentage increase after 1974 but not beyond the later of 

the widow(er)'s employee annuity ABD or the WIA OBD. It is not 

increased or decreased after that date.

b. If both the employee and widow(er) have less than 120 months of 

creditable railroad service before 1975, the dual annuity adjustment 

amount does not apply.

c. If neither the employee nor the widow(er) have any creditable railroad 

service before 1975, the entire employee annuity is deducted from the 

widow(er)’s annuity. The employee annuity is first deducted from the 

widow(er)’s tier 1. If the employee annuity is greater than the 

widow(er)’s tier 1, the dual annuity adjustment amount is a negative 

number. It will be the lower of the amount of the employee annuity that 

could not be deducted from tier 1 or the widow(er)’s net tier 2 before 

the WIMA increase. It is recomputed every time there is a change in 

either the widow(er)’s annuity or the widow(er)’s own employee annuity

D. Additional amount - spouse minimum - Under the 1976 amendments to the RR 

Act, the spouse minimum guaranty provides that a spouse who was entitled to an 

annuity the month before the death of an employee who was insured for survivor 

benefits, will receive a WIA of not less than the amount (s)he received the month 

before the employee died. If the spouse annuity was increased under the O/M, 

the additional amount payable under the O/M is not included in the spouse 

minimum guarantee rate. The spouse minimum rate is the spouse's rate after 

age and other benefit reductions, but before SMIB or any actuarial adjustment.

1. Cases awarded before 8-13-81 - The tier II will be increased for the 

spouse minimum if:

a. The total WIA net tier I, the tier II basic rate and any employee 

annuity dual annuity adjustment amount is less than the spouse 

annuity tier I, tier II and wife's vested dual benefit (VDB) after the 

VDB cutback;

AND

b. One or more of the following conditions exist:

• The employee had no earnings after 1936; or

• The widow(er) is entitled to an employee annuity; or
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• The widow(er) is entitled to a remarried widow(er)'s benefit at 

SSA; or

• The widow(er)'s original tier I rate was reduced for:

• The SSA family maximum; or

• An age reduction; or

• An RIB limitation.

The additional amount is computed as follows:

• No age reduction in the spouse annuity or the age reduction 

was based on the spouse tier I, tier II and wife's VDB, if any.

Step 1 - The widow(er)'s net tier I, basic tier II and dual annuity 

adjustment amount, if any, are added together.

Step 2 - The step 1 result is subtracted from the spouse's 

annuity rate in the month before the employee's death. The 

result is the additional amount due to the spouse minimum.

• The spouse annuity was reduced for age and the age reduction 

was based on the spouse tier I, tier II and an RIB/DIB VDB.

Step 1 - The age reduction on the spouse annuity VDB is 

subtracted from the total spouse annuity age reduction.

Step 2 - The step 1 result is subtracted from the sum of the 

spouse annuity net tier I and tier II amounts for the month before 

the employee's death.

Step 3 - The widow(er)'s net tier I, basic tier II and dual annuity 

adjustment amount, if any, are added together.

Step 4 - The step 2 result is subtracted from the step 3 result. 

The result is the additional amount due to the spouse minimum.

The additional amount due to the spouse minimum does not 

increase because of COL increases. On the contrary, it 

decreases as the net tier I and the tier II basic rate increase. It 

is intended to preserve only the amount that the widow(er) was 

receiving as a spouse in the month before the employee's 

death. It is possible, after one or more COL increases, that the 

net tier I, the basic tier II and the dual annuity adjustment 

amount, if any, will exceed the spouse minimum rate. At that 
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time, the additional amount due to the spouse minimum will be 

zero.

2. Cases awarded 8-13-81 or later - The tier II will be increased for the 

spouse minimum if the sum of the total WIA net tier I, the basic tier II and 

any dual annuity adjustment amount is less than the spouse annuity tier I, 

tier II and any VDB after the VDB cutback.

The additional amount is computed as follows:

Step 1 - The spouse annuity net tier I and tier II amounts, the VDB after 

cutback, and any RR grandfather increase for the month before the 

employee's death are added together.

Step 2 - The widow(er)'s net tier I, the basic tier II and any dual annuity 

adjustment amount are added together.

Step 3 - The step 2 result is subtracted from the step 1 result. The result is 

the additional amount due to the spouse minimum.

The spouse minimum computation must be made on a case by case basis 

when:

• The spouse annuity was an initial 1974 Act award (ABD or filing date 

after 12-1974) that was increased for O/M increase (grandfather or 

100% O/M increases); or

• The spouse annuity was a conversion case (ABD and filing date before 

1-1975) and the spouse was entitled to an O/M grandfather 

equalization amount in the month before the employee died.

The additional amount due to the spouse minimum does not increase 

because of COL increases. On the contrary, it decreases as the net tier I 

and the basic tier II increase. It is intended to preserve only the amount 

that the widow(er) was receiving as a spouse in the month before the 

employee's death. It is possible, after one or more COL increases, that 

the net tier I, the basic tier II, and the dual annuity adjustment amount, if 

any, will exceed the spouse minimum rate. At that time, the additional 

amount due to the spouse minimum will be zero.

If the widow(er) becomes entitled to a RIB or DIB in or after the month of 

the employee's death, the tier II spouse guaranty rate must be reduced. 

This reduction is the lesser of the gross spouse annuity tier I amount or 

RIB/DIB amount.

If the spouse annuity was reduced for public pension, the spouse 

minimum rate reflects this reduction. However, if the widower becomes 
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entitled to a public pension in or after the month of the employee's death, 

the spouse minimum rate is not recomputed.

E. Additional amount - equalization - If the widow(er)'s insurance annuity was 

initially awarded under the 1937 RR Act and the widow(er) is not entitled to a 

vested dual benefit, she may be entitled to an additional amount due to 

equalization.

If the amount that (s)he would have received in January 1975 under the 1937 RR 

Act exceeds the net tier I, the basic tier II and the dual annuity adjustment 

amount, if any, in January 1975; the excess is the additional amount due to 

equalization.

The additional amount due to equalization does not increase because of COL

increases. On the contrary, it decreases as the net tier I and the other 

components of tier II (except the additional amount spouse minimum) increase. 

It is intended only to preserve the amount that the beneficiary would have 

received in January 1975 under the 1937 RR Act. It is possible, after one or 

more COL increases, that the net tier I and the other components of tier II will 

exceed the equalized rate. At that time, the additional amount due to equalization 

will be zero.

F. Solvency Reduction - A chart in the appendix summarizes the effect of the tier II 

solvency reduction on widow(er)s and other survivors.

The first solvency reduction is effective on 12-1-83 or the survivor's ABD, if later. 

The first solvency reduction cannot exceed the difference between the survivor's 

12/83 and 11/83 net tier I amounts if the survivor's ABD was before 12/83. The 

first solvency reduction is equal to the difference between the employee's 12/83 

and 11/83 net tier I amounts as explained in the above chart if the survivor's ABD 

is after 11/83 and the solvency reduction provisions are applicable.

The full amount of the employee's solvency reduction is deducted from the last 

computed tier II rate of each survivor annuity. The survivor's tier II cannot, 

however, be reduced below $10.00. Also, there is no reduction if the survivor's 

last computed tier II rate is less than $10.00.

If the survivor's ABD was before 12-1-84, a second and final solvency reduction 

was effective on 12-1-84. It was equal to the difference between the total 

solvency reduction and the reduction made on 12-1-83 or the survivor's ABD. 

The survivor's tier II could not, however, be reduced below $10.00. Also, there 

was no reduction if the survivor's last computed tier II rate was less than $10.00.

Examples: Employee A died in 8/81; his widow will attain age 60 in 1/84 and has 

filed an application for an annuity to begin in that month. She is entitled to a 

1974 Act tier II which is not subject to the solvency reduction.
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Employee B was awarded a 60/30 annuity beginning 6/83; he died in 12/83. His 

widow filed an application for an annuity to begin in 1/84, the month she will 

attain age 60. She is entitled to a 1981 amendment tier II. Her annuity is subject 

to the solvency reduction.

Employee C died in 1/84; he never applied for an annuity. His widow's tier II will 

not be subject to a solvency reduction.

G. The Widow(er)’s Initial Minimum Amount (WIMA) – Effective February 1, 2002, a 

widow(er) who is paid under the 1981 Amendments may receive an additional 

tier II amount called the “Widow(er)’s Initial Minimum Amount”, (WIMA). The 

WIMA guaranty provides that the widow(er)’s annuity will be calculated using 100 

percent of the tier II that would have been used to compute the annuity for the 

deceased employee on the survivor OBD.

The WIMA is computed as follows:

1. The statutory share of the OBD PIA is determined.

2. The statutory share of the OBD PIA is adjusted for the family maximum, 

the widow(er)’s age reduction and/or the employee’s RIB limit. The 

statutory share of the OBD PIA is not adjusted for a public service 

pension, social security benefits, dual annuity entitlement, or excess 

earnings. NOTE: A maximum of 60 months is used to compute the age 

reduction for disabled widow(er)s with an OBD before January 1984.

3. 100 percent of the employee tier II on the survivor OBD reduced for the 

tier 2 maximum, age and takeback(s). (If the tier II family maximum 

applies, 130 percent of the tier II is payable. The widow(er) is entitled to a 

100 percent proportional share.)

4. Add the result of step two, rounded down to the dollar, to step three. This 

is the WIMA guaranty amount.

Once the WIMA has been determined, it will be compared to the 

widow(er)’s regular annuity rate effective the later of 

February 1, 2002 or the OBD and on each datebreak 

thereafter to determine if a WIMA increase is payable. If 

the WIMA is higher than the regular annuity rate, the 

additional amount is added to the widow(er)’s tier II. 

The WIMA is recomputed if there is a change in the family 

group or a young mother/father switches to a widow(er)’s 

annuity. If there is a break in entitlement, (for 

instance, a young mother’s annuity terminates when her 

child attains age 18, but the young mother has future 

entitlement as a widow), the WIMA will be recomputed based 

on the new survivor OBD. 
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The WIMA is also recomputed for ARFs and RIB/DIB 

adjustments effective November 2006 and later. SURPASS has 

been programmed for these calculations.

H. Net Tier II - The net tier II is the last computed rate.

1045.10.3 Vested Dual Benefit (VDB)

A vested widow or a vested dependent widower can be paid a vested dual benefit 

(VDB) if the annuity was authorized for payment before August 13, 1981, and:

• The widow(er)'s date of birth is before August 14, 1919; or

• The widow(er)'s date of entitlement to a disability insurance benefit under the SS Act 

is August 1981 or earlier.

A widow(er) cannot be paid a vested dual benefit if it was erroneously denied before 8-

13-81. The 1981 RR Act amendments prohibited payment of a VDB in all cases in 

which entitlement was not determined prior to 8-13-81, including cases when 

entitlement was denied incorrectly.

A widow(er) who was born before August 14, 1919, and whose annuity was authorized 

for payment before August 13, 1981, can be paid a VDB when (s)he becomes entitled 

to a retirement insurance benefit under the SS Act even if the date of entitlement is after 

August 1981. The reason for this is that her VDB was technically awarded before 

August 13, 1981, even though the VDB amount at that time was zero.

Example: A vested widow born on August 13, 1919 was awarded an RR Act annuity 

effective August 1, 1979 (age 60). She later applies for her SS Act retirement insurance 

benefit and selects a January 1, 1982, date of entitlement. She can be paid a VDB from 

January 1, 1982.

Under the November 1976 Amendments to the RR Act, the VDB was equal to the 1937 

RR Act WIA plus the COL increases after 1974 through the later of the widow(er)'s SS 

ABD or RR ABD minus the sum of the net tier I and the tier II payable.

The widow(er)'s dual annuity adjustment amount is equal to the 1937 RR Act WIA plus 

the COL increases after 1974 through the later of the widow(er)'s employee ABD or WIA 

ABD minus the sum of the net tier I and the basic tier II.

The 1937 RR Act WIA was computed as follows:

A. Basic rate - The basic rate is the WIA basic amount. This is generally slightly 

less than the lump-sum basic amount which is shown on the MARC because the 

lump-sum basic amount deems the employee to have died on 1-1-75.

B. 1968 table increase - The basic rate is increased by the amount shown in the 

following chart which corresponds to the employee's AMW:
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AMW Increase

Up to 100 7.53

101 - 150 9.26

151 - 200 10.62

201 - 250 12.07

251 - 300 13.34

301 - 350 14.70

351 - 400 16.06

401 - 450 17.24

451 - 500 18.60

501 - 550 19.87

551 - 600 22.96

Over 600 25.95

C. 1968 SS benefit reduction - An SS benefit reduction is made in the 1968 and 

1970 rate computations if the following conditions are met:

• Widow(er) not entitled to an employee annuity VDB.

• The widow(er) is eligible for an SS benefit on her own account (i.e., she is 

either age 62 or entitled to a DIB).

• Widow(er) entitled to an employee annuity VDB.

• The widow(er)'s employee annuity was initially awarded under the 1974 RR 

Act; and

• The widow(er) is eligible for an SS benefit on her own account (i.e., she is 

either age 62 or entitled to a DIB); and

• The widow(er)'s employee annuity PIA #4 (PIA based on SS earnings through 

her vesting year) is less than her regular PIA #21 (PIA based on SS earnings 

through the employee's vesting year).

The reduction is equal to:
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• 10.27% of PIA #21 if the widow is not entitled to an employee annuity VDB;

OR

• 10.27% of the difference between PIA #21 and PIA #4 if the widow is entitled 

to an employee annuity VDB.

D. Net table increase - The net table increase is the result of step B minus step C. If 

the result is $5.00 or more, it is added to the basic rate. Skip to step H.

E. Minimum increase - The minimum increase is $5.00 and must be considered 

when the step D result is less than $5.00.

F. 1968 SS benefit reduction - If an SS benefit reduction was made in step C, it 

must also be made here. The SS benefit reduction to be applied to the minimum 

increase is:

• 3.44% of PIA #21 if the widow(er) is not entitled to an employee annuity VDB;

OR

• 3.44% of the difference between PIA #21 and PIA #4 if the widow(er) is 

entitled to an employee annuity VDB;

BUT NOT MORE THAN

• 5.8% of the basic rate.

G. Net minimum increase - The net minimum increase is the result of step E minus 

step F. The net minimum increase is compared to the net table increase. The 

higher increase is added to the basic rate.

H. 1970 increase - The gross 1970 increase is 15% of the last computed rate but 

not more than $25.00. If the result is less than $5.00, it is added to the 1968 

rate. Skip to step K.

I. 1970 SS benefit reduction - If an SS benefit reduction was made in step C, it 

must also be made here. The SS benefit reduction to the 1970 increase is:

• 8.87% of PIA #21 if the widow(er) is not entitled to an employee annuity VDB;

OR

• 8.87% of the difference between PIA #21 and PIA #4 if the widow(er) is 

entitled to an employee annuity VDB.
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J. Net 1970 increase - The net 1970 increase is the result of step H minus step 1. If 

the result is less than $5.00, it is increased to $5.00. The result is added to the 

1968 rate.

K. Combined 1971/1972 increase - The combined 1971/1972 increase is obtained 

by multiplying the 1970 rate by 1.32.

L. 1974 increase - The 1974 increase is obtained by adding 9.9099% of PIA #8 to 

the step K result.

M. 1937 Act rate - The step L result, if it does not end in 5c/, is rounded up to the 

next 5c/. The result is the 1937 Act WIA rate.

N. COL increase - The 1937 Act WIA rate is multiplied by the appropriate 

percentage in the chart located in the appendix.

O. VDB computation - The VDB was the difference between:

• The 1937 RR Act WIA rate plus appropriate COL increases;

AND

• The total of the net tier I and the net tier on the later of the VDB date of 

entitlement or the widow(er)'s RIB/DIB date of entitlement.

VDB cutback - Under the 1981 RR Act amendments, the VDB must be cut back 

whenever the Congress appropriates less to the Dual Benefits Payment Account 

for a fiscal year than what is needed to make full VDB payments.

P. Additional amount - VDB equalization - If the widow(er)'s insurance annuity was 

initially awarded under the 1937 RR Act and the widow(er) was entitled to SS 

benefits on December 31, 1974, (s)he may be entitled to an additional amount 

due to equalization.

If the amount that (s)he would have received in January 1975 under the 1937 RR 

Act exceeds the net tier I and the tier II in January 1975, the excess is the 

additional amount due to equalization.

The additional amount due to equalization is frozen and does not increase or 

decrease.

Q. Additional Amount - Spouse Minimum - (Cases awarded before 8-13-81 only.) 

The VDB will be increased for the spouse minimum if the widow(er) was entitled 

to a spouse annuity RIB/DIB VDB based on her own earnings, in the month 

before the employee died.

NOTE: In some cases, both the tier II and the VDB can be increased due to the 

spouse minimum guarantee.
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The additional amount is computed as follows:

Step 1 - The sum of the widow(er)'s net tier I, net tier II and VDB benefit is 

subtracted from the spouse's railroad retirement formula annuity rate (before any 

actuarial reduction) for the month before the employee's death. The result is the 

additional amount due to the spouse minimum.

Step 2 - The additional amount due to the spouse minimum is added to the VDB. 

Unlike the tier II spouse minimum amount, the VDB spouse minimum amount is 

frozen.

R. Dual annuity adjustment amount - The employee annuity dual annuity adjustment 

amount is the difference between:

• The 1937 RR Act WIA rate plus appropriate COL increases;

AND

• The total of the net tier I and the basic tier II on the later of 1-1-75, the WIA 

ABD or the widow(er)'s employee annuity ABD.

1045.10.4 WIA Rate

The WIA rate is the sum of the net tier I, net tier II and the VDB, if any.

1045.15 Remarried Widow(er)'s Annuity

A remarried widow(er)'s annuity consists of a tier I amount only. The tier I is computed 

as explained in FOM-I-1045.10.1 except that:

• When the remarried widow(er) previously received a WIA, the age reduction in her 

remarried widow(er)'s annuity is based on the number of months she was actually 

under age 65 on her WIA ABD.

• A remarried widow(er) age 60-61 is not deemed to be age 62 when computing the 

age reduction.

• A remarried widow(er)'s annuity may be recomputed at age 62 if she did not receive 

payment for month(s) between her ABD and attainment of age 62 due to excess 

earnings.

A remarried widow(er)'s tier I amount will be less than her WIA tier I if (s)he began to 

receive a WIA prior to attainment of age 62.

1045.20 Surviving Divorced Spouse's Annuity

• A surviving divorced spouse's annuity consists of a tier I amount only. The tier I is 

computed as explained in FOM-I-1045.10.1 except that:
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• The public service pension offset applies to a surviving divorced spouse who was 

married to the employee for 10, but less than 20 years.

• The surviving divorced spouse's annuity is not reduced for the SSA family maximum 

nor is her annuity rate considered in computing the SSA family maximum.

1045.25 Divorced Young Mother's Or Father's Annuity

A divorced young mother's or father's annuity consists of a tier I amount only. The tier I 

is computed as explained in FOM-I-1045.10.1, except that the public pension offset 

applies to a divorced young mother who was married to the employee for 10, but less 

than 20 years.

A divorced young mother's or father's annuity rate is considered in computing the SSA 

family maximum and her annuity can be reduced for the SSA family maximum.

1045.30 Child's Insurance Annuity (CIA)

1045.30.1 Tier I

A. Original rate - A child's original rate is 75% of the highest applicable survivor PIA 

from the following list:

1. AIME PIA #1 - if the employee's eligibility year is 1979 or later.

2. TRANS PIA #1 - if the employee's eligibility year is 1979- 1983.

3. AMW PIA #1 - if the employee's eligibility year is before 1979.

4. Special Minimum PIA #1 - if the employee had RR Act or SS Act covered 

employment or self-employment for many years at low earnings.

5. Frozen Minimum PIA #1 - if the employee had low earnings. The 1981 SS 

Act amendments eliminated the frozen minimum PIA 1-1-82 for 

beneficiaries in cases in which the employee's year of eligibility is 1982.

Note: The employee's year of eligibility is the earlier of:

• The month he attained age 62;

• The month he received a disability freeze; or

• The month he died.

6. 1977 O.S. PIA - If the employee's eligibility year is 1979 or later and a PIA 

larger than the AIME PIA can be attained by using the actual earnings 

before 1951.
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 20 of 38

B. Reduced for maximum rate - A reduction for the family maximum is always 

involved when there are three or more beneficiaries. It may be involved when 

there are two beneficiaries and one of them is an aged or disabled widow(er) or a 

remarried aged or disabled widow(er).

C. First adjusted rate - Ordinarily, the child's first adjusted rate is the lesser of:

1. The original rate (75% of the PIA); or

2. The reduced for maximum rate; but not less than

The 1981 SS Act amendments eliminated the SSM rate effective 1-1-82 in cases 

in which the employee's eligibility year is 1982 or later.

The SS Act provided that a child's first adjusted rate would not be less than the 

amount shown in the following charts if (s)he was the sole survivor.

The sole survivor minimum did not apply if the annuity of another beneficiary was 

being withheld because of work deductions.

• Employee's eligibility year was before 1979.

SSM Rate Effective

$114.30 6-1-77

 121.80 6-1-78

 133.90 6-1-79

 153.10 6-1-80

 170.30 6-1-81

 182.90 6-1-82

 189.30 12-1-83

 195.90 12-1-84

 201.90 12-1-85

• Employee's eligibility year was after 1978. The sole survivor minimum rate 

was equal to the frozen minimum PIA of $122.00 increased for months after 

May of the year in which the employee died. Since the frozen minimum PIA 

did not receive a COL increase during a year in which no individual was 
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entitled to a benefit, the sole survivor minimum rate could not receive a COL 

increase for any year in which no individual was entitled to an annuity.

D. Reduction for other benefits - The child's first adjusted rate must be reduced, but 

not below zero, by the full amount of any social security benefit (s)he is entitled 

to. This is true even though the full amount is not payable because of excess 

earnings.

E. Net tier I - The child's net tier I is what is left after reducing the first adjusted rate 

for entitlement to social security benefits and rounding down to the next dollar.

Note: Conviction and confinement for a criminal offense or being one of the 

categories of individuals defined in FOM1 150 may require the suspension of an 

individual’s O/M share or the conversion of his Tier 1 tax status to all NSSEB. 

See FOM1 150 for further information on criminal activity procedures. Under the 

1988 SS Act amendments, a child's tier I benefit is not payable from the annuity 

beginning date, if the deceased employee had been removed/deported on or 

after 11-10-88, due to associations with the Nazi government of Germany during 

World War II, and the child is an alien who is not living in the U.S.

1045.30.2 Tier II

A. Basic rate - The child's basic rate is:

• 30% of his (her) first adjusted tier I rate if the employee was awarded a RRA 

payment or died before 10-1-81 and the child's annuity was awarded before 

10-1-86; or

• 15% of the employee's tier II if the employee was not awarded a RRA 

payment before 10-1-81 and died after 9-30-81 or the child's annuity is first 

awarded 10-1-86 or later. This tier II amount is subject to the family 

maximum tier II of 80% of the employee's tier II and minimum of 35% of the 

employee's tier II.

B. COL Increases

1. June 1, 1982 or later

a. Child receiving a tier II based on 30% of tier I rate - In 1982 and 

1983, a child received a COL increase on tier II effective June 1 

equal to 32.5% of the rise in the Consumer Price Index (CPI) 

between the first quarter of the previous year and the first quarter of 

the current year if his ABD was June 1 or earlier.

Beginning in 1984, a child will receive a COL increase on his tier II 

effective December 1 equal to 32.5% of the tier I COL, provided his 

ABD is December 1 or earlier.
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If the family composition changes and causes a change in the 

child's tier I amount, his tier II must be recomputed. First, fictitious 

tier I amounts are computed for currently eligible family members 

as of May 1982, or the ABD if later. Second, the child's "new" basic 

tier II is 30% of his dollar rounded fictitious first adjusted tier I rate. 

Third, the new basic tier II is increased by the amount of all tier II 

COL increases from June 1, 1982, or the ABD if later, through the 

current date.

b. Child receiving a tier II based on 15% of the employee's tier II - In 

1982 and 1983, a child received a COL increase on his tier II 

effective June 1 equal to 32.5% of the rise in the Consumer Price 

Index (CPI) between the first quarter of the previous year and the 

first quarter of the current year if his ABD was June 1 or earlier.

Beginning in 1984, a child will receive a COL increase on his tier II 

effective December 1 equal to 32.5% of the tier I COL, provided his 

ABD is December 1 or earlier.

The COL increase is applied to his basic rate after any reduction for 

the family maximum.

If the family composition changes and causes a change in the 

child's share of the employee's tier II, the child's tier II must be 

recomputed. First, "new" tier II amounts are computed for currently 

eligible family members as of May 1982, or the ABD if later. 

Second, the child's new tier II is increased by the amount of all tier 

II COL increases from June 1, 1982, or the ABD if later, through the 

current date. The solvency reduction is not, however, recomputed 

unless the actual tier I rate paid in November 1983 was incorrect.

2. June 1, 1981 or earlier - The tier II was recomputed whenever the tier I 

first adjusted rate changed due to COL inclusion. This gave the effect of 

getting a full cost-of-living percentage increase to the combined tier I and 

tier II.

C. Additional amount - equalization - If the child's insurance annuity was initially 

awarded under the 1937 RR Act, the child may be entitled to an additional 

amount due to equalization.

If the amount that (s)he would have received in January 1975 under the 1937 RR 

Act exceeds the net tier I and the basic tier II rate, in January 1975, the excess is 

the additional amount due to equalization.

The additional amount due to equalization does not increase because of COL 

increases. On the contrary, it decreases as the net tier I and the basic tier II 

increase. It is intended only to preserve the amount that the beneficiary would 
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 23 of 38

have received in January 1975 under the 1937 RR Act. It is possible, after one 

or more COL increases, that the net tier I and the basic tier II will exceed the 

equalized rate. At that time, the additional amount due to equalization will be 

zero.

D. Solvency Reduction - See FOM-I-1045.10F for an explanation of the solvency 

reduction.

E. Net Tier II - The net tier II is the last computed rate.

1045.30.3 CIA Rate

The CIA rate is the sum of the net tier I and the net tier II.

1045.35 Parent's Insurance Annuity

1045.35.1 Tier I

A. Original rate - A parent's original rate is 82 1/2% (75%, if two parents are entitled) 

of the highest applicable PIA from the following list:

1. AIME PIA #1 - if the employee's eligibility year is 1979 or later.

2. TRANS PIA #1 - if the employee's eligibility year is 1979- 1983.

3. AMW PIA #1 - if the employee's eligibility year is before 1979.

4. Special Minimum PIA #1 - if the employee had RR Act or SS Act covered 

employment or self-employment for many years at low earnings.

5. Frozen Minimum PIA #1 - if the employee had low earnings. The 1981 SS 

Act amendments eliminated the frozen minimum PIA 1-1-82 for 

beneficiaries in cases in which the employee's year of eligibility is 1982.

Note: The employee's year of eligibility is the earlier of:

• The month he attained age 62;

• The month he received a disability freeze; or

• The month he died.

6. 1977 O.S. PIA - If the employee's eligibility is 1979 or later and a PIA 

larger than the AIME PIA can be obtained by using the actual earnings 

before 1951.

B. Reduced for maximum rate - A reduction for the SSA family maximum is not 

involved when there are one or two entitled parents.
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 24 of 38

C. First adjusted rate - Ordinarily, the parent's first adjusted rate is the original rate. 

It may be the sole survivor minimum rate if the parent is the sole survivor.

The 1981 SS Act amendments eliminated the SSM rate effective 1-1-82 in cases 

in which the employee's eligibility year is 1982 or later.

The SS Act provides that a parent's first adjusted rate will not be less than the 

amount shown in the following charts if (s)he is the sole survivor.

The sole survivor minimum did not apply if both parents were entitled and one 

parent's annuity was being withheld because of work deductions.

• Employee's eligibility year is before 1979

SSM Rate Effective

$114.30 6-1-77

 121.80 6-1-78

 133.90 6-1-79

 153.10 6-1-80

 170.30 6-1-81

 182.90 6-1-82

 189.30 12-1-83

 195.90 12-1-84

 201.90 12-1-85

 204.50 12-1-86

 213.10 12-1-87

 221.60 12-1-88

 232.00 12-1-89

 244.00 12-1-90

 253.00 12-1-91

 260.50 12-1-92
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 25 of 38

• Employee's eligibility year is after 1978 - The sole survivor minimum rate was 

equal to the frozen minimum PIA of $122.00 increased for months after May 

of the year in which the employee died. The sole survivor minimum rate did 

not receive a COL increase for any year in which no individual was entitled to 

an annuity.

D. Reduction for other benefits - The parent's first adjusted rate must be reduced by 

the amount of the following benefits:

1. Social Security benefit - The parent's first adjusted rate is reduced by the 

full amount of any social security benefit to which (s)he is entitled. This is 

true even though the full amount is not payable because of excess 

earnings or a worker's compensation offset.

2. Employee annuity tier I - The parent's first adjusted rate is reduced for any 

RR retirement annuity, as follows:

a. If the reduction for the employee tier I is first applied on an award 

with a final voucher date of 10-1-88 or later, or if the case is 

reopened 10-1-88 or later, the parent's first adjusted rate is reduced 

by the amount of the employee annuity tier I, after age reduction, 

for all date breaks.

b. If the reduction for the employee tier I is first applied on an award 

with a final voucher date prior to 10-1-88, the parent's first adjusted 

rate is reduced by the amount of the employee annuity tier I, before 

any age reduction, through 9-30-88. Effective 10-1-88, the parent's 

first adjusted rate is reduced by the amount of the employee 

annuity tier I, after any age reduction.

If the parent's employee annuity net tier I is zero, there is no 

reduction in the parent's insurance annuity.

E. Net tier I - The parent's net tier I is what is left after reducing the first adjusted 

rate for entitlement to other benefits and rounding down to the next dollar.

Note: Conviction and confinement for a criminal offense or being one of the 

categories of individuals defined in FOM1 150 may require the suspension of an 

individual’s O/M share or the conversion of his Tier 1 tax status to all NSSEB. 

See FOM1 150 for further information on prisoner procedures. 

1045.35.2 Tier II

A parent's insurance annuity includes a tier II only when the employee was not survived 

by a widow(er) or child who could ever qualify for monthly benefits.

Under the 1988 SS Act amendments, a parent's tier I benefit is not payable from the 

annuity beginning date if the deceased employee had been deported on or after 11-10-
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 26 of 38

89, due to associations with the Nazi government of Germany during World War II, and

the parent is an alien who is not living in the U.S.

A. Basic rate - The parent's basic rate is:

• 30% of his(her) first adjusted rate if the employee was awarded a RRA 

payment or died before 10-1-81 and the parent's annuity was awarded before 

10-1-86; or

• 35% of the employee's tier II if the employee was not awarded a RRA 

payment before 10-1-81 and died after 9-30-81 or the parent's annuity is first 

awarded 10-1-86 or later.

B. COL Increases

1. June 1, 1982 or later

a. Parent receiving a tier II based on 30% of her tier I rate - In 1982 

and 1983, a parent received a COL increase on her tier II effective 

June 1 equal to 32.5% of the rise in the Consumer Price Index 

(CPI) between the first quarter of the previous year and the first 

quarter of the current year if her ABD was June 1 or earlier.

Beginning in 1984, a parent will receive a COL increase on her tier 

II equal to 32.5% of the tier I COL, provided her ABD is December 

1 or earlier.

If the family composition changes and causes a change in the 

parent's tier I amount, her tier II must be recomputed. First, 

fictitious tier I amounts are computed for currently eligible family 

members as of May 1982, or the ABD if later. Second, the parent's 

"new" basic tier II is 30% of her dollar rounded fictitious first 

adjusted tier I rate. Third, the new basic tier II is increased by the 

amount of all tier II COL increases from June 1, 1982, or the ABD if 

later, through the current date. The tier II takeback is not, however, 

recomputed unless the actual tier I rate paid in November 1983 was 

incorrect.

b. Receiving a tier II based on 35% of the employee's tier II - In 1982 

and 1983, a parent received a COL increase on her tier II effective 

June 1 equal to 32.5% of the rise in the Consumer Price Index 

(CPI) between the first quarter of the previous year and the first 

quarter of the current year if her ABD was June 1 or earlier.

Beginning in 1984, a parent will receive a COL increase on her tier 

II equal to 32.5% of the tier I COL, provided her ABD is December 

1 or earlier.
FOM1 1045

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The COL increase is applied to her basic rate after any reduction 

for the family maximum.

2. June 1, 1981 or earlier - The tier II was recomputed whenever the tier I 

rate after offset for any public service pension changed.

C. Additional amount - equalization - If the parent's insurance annuity was initially 

awarded under the 1937 RR Act, the parent may be entitled to an additional 

amount due to equalization.

If the amount that (s)he would have received in January 1975 under the 1937 RR 

Act exceeds the net tier I and the basic tier II rate, in January 1975, the excess is 

the additional amount due to equalization.

The additional amount due to equalization does not increase because of COL 

increases. On the contrary, it decreases as the net tier I and the basic tier II 

increase. It is intended only to preserve the amount that the beneficiary would 

have received in January 1975 under the 1937 RR Act. It is possible, after one 

or more COL increases, that the net tier I and the basic tier II will exceed the 

equalized rate. At that time, the additional amount due to equalization will be 

zero.

D. Solvency Reduction - See FOM-I-1045.10F for an explanation of the solvency 

reduction.

E. Net Tier II - The net tier II is the last computed rate.

1045.35.3 Parent's Insurance Annuity Rate

The parent's insurance annuity rate is the sum of the net tier I and the net tier II.

1045.40 Survivor Estimates

1045.40.1 General

This section explains how to estimate survivor benefits. It is designed to be used with 

RRB Form G-308, Worksheet for Estimating Survivor Benefits.

When furnishing a survivor estimate, explain that the actual annuity rate will probably be 

different from the estimate because all the facts are not available at the time you are 

preparing the estimate. Also, if the date of entitlement is not immediate, possible 

amendments to the law could result in changes. Do not request survivor annuity 

estimates except when you do not have PIA and basic amount data available or when 

there are unusual circumstances.

1045.40.2 Tier I

A. Tier I PIA
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 28 of 38

1. If the employee has not retired or death occurs before the employee 

appears on the BIC, the approximate amount of the tier I PIA may be 

found on the MARC under "tier I, PIA 1."

2. If the employee has retired and appears on the BIC, the approximate 

amount of the tier I PIA may be found on the BIC under "SUR PIA."

• If the SUR PIA field is blank, use the tier I PIA shown on the COL 

microfiche.

• See FOM I-1005.55.4 for the COL increase amounts.

B. Deeming adjustment - Certain RR Act deeming provisions do not carry over from 

retirement benefits to survivor benefits. Therefore, the PIA may have to be 

adjusted as explained below.

1. If the SUR PIA from the BIC is not shown and the tier I PIA shown on the 

COL microfiche is used, and the employee was receiving a 60/30 annuity 

or an occupational disability annuity, subtract $30.00:

a. If an occupational disability annuity began after 1978, also subtract 

$50.00 for each COL increase the employee received prior to the 

earlier of:

• The year of his death;

• The year he was granted a DF; or

• The year he attained age 62.

b. If an occupational disability annuity began before 1979, also 

subtract $10.00 for each year the employee received an annuity 

prior to the earlier of:

• The year of his death;

• The year he was granted a DF; or

• The year he attained age 62.

c. If the employee met the 60/30 requirements before 7-1-84 and the 

60/30 began after 1978, also subtract $30.00 for each COL

increase the employee received prior to the earlier of:

• The year of his death;

• The year he was granted a DF; or
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 29 of 38

• The year he attained age 62.

2. If the tier I PIA from the MARC is used, subtract:

a. $30.00 when the employee was eligible for a 60/30 annuity before 

7-1-84.

b. An additional $100.00 if the MARC shows a table PIA due to an 

incorrect date of birth and the employee is entitled to an AIME PIA 

based on his actual date of birth.

C. Age discrepancy adjustment

1. If an employee born before 1930 is younger than shown on the MARC, 

subtract an additional $30.00 for each year (s)he is younger than shown 

on the MARC.

2. If an employee born after 1929 is older than shown on the MARC, subtract 

an additional $30.00 for each (s)he is older than shown on the MARC. 

D. Estimate Tier I PIA - If adjustments occur as described in B or C above, this 

figure represents the appropriate PIA, after those adjustments, to be used in 

determining survivor annuity estimates.

E. Original rate - The original rate is the following percentage of the tier I PIA after 

any deeming adjustment:

Beneficiary Share

Widow(er) - aged or disabled 100%

Widow(er) - mother or father 75%

Remarried widow(er) 100%

Surviving divorced spouse 100%

Surviving divorced young mother/father 75%

Child 75%

One parent 821⁄2%

Two parents 75%

F. Reduced for maximum rate - A reduction for the SSA family maximum is always 

involved when there are three or more beneficiaries not counting a surviving 
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divorced spouse, but counting a surviving divorced mother/father. The SSA 

family maximum may be involved when there are two beneficiaries not counting a 

surviving divorced spouse, but counting a surviving divorced mother/father and 

one of the beneficiaries is an aged or disabled widow(er).

Add all of the original rates except the surviving divorced wife's original rate. If 

the total exceeds the SSA family maximum for the PIA (or the closest PIA if you 

adjusted the PIA as explained in step B), multiply the SSA family maximum by 

the appropriate factor from the following charts to obtain the reduced for 

maximum rate. A surviving divorced wife's rate is not reduced for the SSA family 

maximum. Be sure to use the appropriate AIME or TRANS table to determine 

the family maximum if the employee actually attained age 62, met the SS Act 

disability standards (i.e., the employee was awarded a period of disability) or died 

after 1978. If the employee actually attained age 62, met the SS Act disability 

standards (i.e., the employee was awarded a period of disability) or died before 

1979, use the AMW PIA table.

Family Composition Share Factors

(Including a 100% Beneficiary)

Type of Shares 100% Share 75% Share

1-100% Share and 1-75% 

Share

.57143 .42857

1-100% Share and 2-75% 

Shares

.40000 .30000

1-100% Share and 3-75% 

Shares

.30769 .23077

1-100% Share and 4-75% 

Shares

.25000 .18750

1-100% Share and 5-75% 

Shares

.21053 .15789

Family Composition Share Factors

# of Shares Each Share

3 - 75% Shares .33333
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4 - 75% Shares .25000

5 - 75% Shares .20000

6 - 75% Shares .16667

The family composition above does not include the surviving divorced spouse 

and/or a legal widow found entitled after a deemed widow.

G. First adjusted rate (for the following beneficiaries only: aged, disabled, remarried 

widow(er) and surviving divorced spouse)

1. If the survivor will be under age 65 on her ABD, her first adjusted rate is 

the result of multiplying the original rate or the reduced for maximum rate 

by the decimal for the reduced rate from the chart in FOM-I-10, Appendix 

K. A disabled widow(er), remarried disabled widow(er) or a surviving 

disabled divorced spouse is deemed to be age 60 effective 1-1984. Use 

the chart in FOM-I-10, Appendix L to determine a disabled beneficiary's 

age reduced rate for months before 1-1984.

2. If the employee received a reduced age and service annuity, a further 

adjustment for the RIB limitation may be necessary. (Disregard this step if 

the survivor is applying for a DWIA.)

Compare the number of months the employee's annuity was reduced for 

age to the number of months the survivor's annuity is reduced for age 

using the chart click button to view chart. 

a. If the WIA reduction months equal or exceed the number in the 

chart, no adjustment is necessary.

b. If the WIA reduction months are less than shown in the chart, 

further reduce the first adjusted rate to 82 1/2% of the PIA after any 

deeming adjustment.

3. Applying the Age Adjusted Rate - If the survivor is under age 65 on her 

ABD and (s)he is entitled to a SS disability benefit based on her own 

earnings record, (s)he may be entitled to the tier 1 age adjusted rate. If 

this provision applies, only the amount of the widow(er)’s tier 1 which 

exceeds the amount of the disability annuity is reduced for early 

retirement.

a. This provision applies if the following conditions are met:

• The widow(er)’s annuity is age reduced; and,
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FOM1 1045 Survivor Annuities Revised March 28, 2022 Page 32 of 38

• The widow(er) is entitled to a disability insurance benefit (DIB) 

under the SS Act and the date of entitlement is the same as, or 

earlier than, the OBD; and,

• The DIB PIA is less than the death PIA (increased for DRC’s) or 

the widow(er)’s share of the maximum, if applicable; and,

• The widow(er)’s tier 1 is not reduced by an additional amount 

(i.e., PSP or EE tier 1) which, when added to the SS DIB, 

exceeds the death PIA; and,

• The OBD is 1/1978 or later

b. Attainment of Full Retirement Age--Under the SS Act, a disability 

insurance benefit is converted to a retirement insurance benefit at 

full retirement age. Therefore, when the widow(er) attains full 

retirement age, the tier 1 age reduction is removed.

c. RIB Limit. - The age adjusted rate may be higher than the RIB limit 

amount. If this is the case, the RIB limit becomes the age adjusted 

rate.

As the RIB limit cannot accurately be estimated, do not apply this

provision if the employee received an age reduced age and service 

annuity.

d. Calculating the Tier 1 Age Adjusted Rate

• Take the PIA, deemed PIA or share of the maximum

• Subtract the SS PIA

• Multiply the result by the by the appropriate decimal from the 

chart in FOM-I-10, Appendix J or FOM-1-10, Appendix K. 

Round down to the dime.

• Add the result to the SS PIA. The total is the tier 1 age adjusted 

rate.

e. Example. - The widow(er)’s date of birth is 6-15-1936. Her ABD will 

be 3-1-1999. (S)he is receiving a disability annuity based on her 

own earnings record from SSA. The age adjusted rate would be 

computed as follows:

Death PIA $1500.00
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SS PIA - 850.00

Difference 650.00

Times age reduction factor X .87175

Age reduced difference 566.63 rounds to 566.60

Age reduced difference $ 566.60

SS PIA + 850

Age adjusted rate 1416.60

At age 65, the age adjusted rate becomes the full death PIA, 

$1500.00.

H. Reduction for entitlement to other benefits

1. Public service pension - The widow(er)'s first adjusted rate is subject to 

reduction for entitlement to a public service pension (PSP) based on the 

widow(er)'s own earnings payable to the widow(er). The reduction does 

not apply, however, if social security (FICA) taxes were deducted from her 

government earnings on the last day of her government employment 

and/or the widow(er) filed for and became entitled to an annuity (including 

a spouse annuity which was "converted" to a survivor annuity) before 12-

1-77.

a. The reduction applies to widow(er)s who:

• Do not meet the January 1977 SS Act eligibility requirements 

(see FOM-I-120.40.4). However, the reduction does not apply 

beginning 12-1-82 if the annuitant is dependent and eligible for 

the PSP before 7-1-83; or

• Are eligible for the PSP 12-1-82 or later, and are not dependent; 

or

• Are eligible for the PSP 7-1-83 or later. Dependency does not 

matter in this situation.

b. The amount of the reduction is equal to:
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• 100% of the PSP for months before December 1984 and 66 

2/3% of the PSP beginning December 1984 if the survivor is first 

eligible for the PSP before 7-1-83;

• 66 2/3% of the PSP if the survivor is first eligible for the PSP 7-

1-83 or later.

2. Subtract the amount of any social security benefit to which the survivor is 

entitled.

3. Subtract the amount of any employee annuity tier I, after any age 

reduction, to which the survivor is entitled.

If both the employee and survivor started railroad work after 1974, the full 

amount of the survivor annuity is reduced by the full amount of the 

employee annuity.

I. Net tier I - The survivor's net tier I is what is left after any reduction for entitlement 

to other benefits, rounded down to the next dollar.

Note: Conviction and confinement for a criminal offense or being one of the 

categories of individuals defined in FOM1 150 may require the suspension of an 

individual’s O/M share or the conversion of his Tier 1 tax status to all NSSEB. 

See FOM1 150 for further information on criminal activity procedures. 

1045.40.3 Basic Tier II Rate

A. EE 1981 Amendment T-2 - Since 9-30-86 all survivor annuity tier II rates are 

based on the employee's 1981 amendment tier II; this amount is shown on the 

MARC or BIC. Do not try to estimate an annuity if the employee's 1981 

amendment tier II is not shown; send these cases to Headquarters for handling.

Note: Refer to FOM-I-1015.5.2 for more information about the EE 1981 

Amendment tier II.

B. Show 25% of the unreduced vested dual benefit (VDB) - If the records show a 

reduced VDB, multiply that amount by 31.25%, then enter that result. In cases 

that show possibly insured (PI) on the MARC, enter $42.45.

C. Subtract the applicable amount shown in step B from step A - This figure 

represents the survivor annuity bases for tier II.

D. Multiply "C" by the percentage appropriate to the beneficiary for whom the 

estimate is being calculated:

(1) 50% for widow(er)

(2) 35% for parent
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(3) 15% for child

II. Family Maximum/Minimum - When the survivor tier II is based on the employee's 

tier II, the family maximum tier II is 80% of the employee's tier II and the family 

minimum tier II is 35% of the employee's tier II.

The following charts can be used to determine an individual beneficiary's share of 

the employee's high 60 tier II:

Family Composition Widow(er) 

and Children

Widow(er)'s

Share

Child's

Share

Widow(er) and 1 Child 50% 15%

Widow(er) and 2 Children 50% 15%

Widow(er) and 3 Children 42.105% 12.632%

Widow(er) and 4 Children 36.364% 10.909%

Widow(er) and 5 Children 32.000% 9.6%

Widow(er) and 6 Children 28.572% 8.571%

Family Composition

Child(ren)

Child's

Share

1 Child 35%

2 Children 17.5%

3 Children 15%

4 Children 15%

5 Children 15%

6 Children 13.33%

Family Composition Parent's Share*

1 Parent 35%
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2 Parents 35%

*A parent's insurance annuity includes a tier II only when the employee was not 

survived by a widow(er) or child who could ever qualify for monthly benefits.

III. WIA Guaranty Rate - Under the 1976 Amendments to the RR Act, a widow or a 

dependent widower who is also entitled to an employee annuity will receive a 

dual annuity adjustment amount if either the deceased employee or the 

widow(er) had 10 years of railroad service before 1975. The amount of the tier II 

restoration is the difference between what the widow(er) would have received 

under the 1937 RR Act, including any COL increases from 1975 through 1981 

but not later than the later of the WIA ABD or the employee annuity ABD, and the 

sum of her net tier I and basic tier II.

To compute the WIA guarantee rate add $20.00 to the lump sum basic amount 

on the MARC. Multiply the result by the appropriate factor from the chart below.

Later of RR WIA6/75

ABD or EE ANN ABD Before 6/75 5/76

Factor132%142%

6/76-6/77-6/78-6/79-6/80-6/81- 

5/775/785/795/805/815/82

151%160%171%188%214%238%

6/82-12/83-12/84- 12/85-12/86 or

11/8311/8411/8511/86later

256%265%274%282%285%

The result is the WIA guarantee rate. Compare it to the WIA net tier I and basic 

tier II. If the WIA guarantee rate is greater, the tier II restoration will be the 

amount by which the WIA guarantee rate exceeds the net tier I and basic tier II. 

The tier II dual annuity adjustment amount is frozen, it is neither increased nor 

decreased.

IV. Spouse Minimum - Under the 1976 amendments to the RR Act, the spouse 

minimum guarantee provides that a spouse who was entitled to an annuity the 
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month before the employee's death, who was insured for survivor benefits, will 

receive a widow(er)'s insurance annuity of not less than the amount (s)he 

received the month before the employee died. If the spouse annuity was 

increased under the O/M, the additional amount payable under the O/M is not 

included in the spouse minimum guarantee. The spouse minimum rate is the 

spouse's rate after age and other benefit reductions, but before SMIB or any 

actuarial adjustment.

Compare the WIA net tier I, basic tier II and any dual annuity adjustment amount 

to the spouse's rate (after the VDB cutback) for the month before the employee 

died. If the spouse's rate is greater, the difference between it and the WIA 

components is the additional amount due to the spouse minimum. The additional 

amount will be added to tier II.

G. Solvency Reduction - If the employee's ABD or DOD was before 1-1-84, the 

survivor's tier II will have to be reduced as a result of the solvency reduction.

To estimate the total solvency reduction amount, divide the 12/86 PIA by 21.6.

Example: The employee died in 10/83 and the survivor's ABD is 1-1-87.

The 12/86 tier I PIA is $680.00.

The total solvency reduction amount would be 680.00 divided by 21.6 = $31.48.

Subtract the full amount of the estimated solvency reduction amount from each 

survivor's last computed tier II rate. Do not reduce the tier II below $10.00. Also, 

do not reduce the tier II rate if it is less than $10.00.

H. Net Tier II - The net tier II is the last computed rate.

1045.40.4 Survivor Estimate

The survivor's estimate annuity rate is the sum of the net tier I and net tier II.