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Railroad Retirement Information

U.S. R a i l r o a d R e t i r e m e n t B o a r d

8 4 4 N o r t h R u s h S t r e e t C h i c a g o , I l l i n o i s 6 0 6 1 1 - 1 2 7 5

RRB.gov

877-772-5772 general information

Public Affairs

312-751-4777

opa@rrb.gov media inquiries

For Publication 

March 2023 

Comparison of Benefits Under Railroad Retirement and Social Security

Benefits under the Railroad Retirement Act (RRA) are generally higher than those under the 

Social Security Act, especially for railroad employees who have 30 or more years of creditable 

railroad service. These higher benefits can be attributed to the additional retirement taxes paid by 

employers and employees covered under the RRA. 

The following questions and answers show the differences in railroad retirement and social 

security benefit rates payable at the close of the fiscal year ending September 30, 2022. They also

detail the differences in eligibility age requirements and payroll tax rates under the two systems.

1. How do the average monthly railroad retirement and social security benefits paid to 

retired employees and spouses compare?

The average age annuity being paid by the Railroad Retirement Board (RRB) at the end of fiscal 

year 2022 to career rail employees was $4,020 a month, and for all retired rail employees the average 

was $3,210. The average age retirement benefit being paid under social security was approximately 

$1,650 a month. Spouse benefits averaged $1,160 a month under railroad retirement compared to $810 

under social security. 

The RRA also provides supplemental railroad retirement annuities of between $23 and $43 a

month, which are payable to employees with railroad service prior to October 1981 who retire directly 

from the rail industry with 25 or more years of service. 

2. Are the benefits awarded to recent retirees generally greater than the benefits payable to 

those who retired years ago?

Yes, because recent awards are based on higher average earnings. Age annuities awarded to career 

railroad employees retiring in fiscal year 2022 averaged nearly $4,560 a month while monthly benefits 

awarded to workers retiring at full retirement age under social security averaged about $2,320. If 

spouse benefits are added, the combined benefits for the employee and spouse would total $6,340 

under railroad retirement coverage, compared to $3,480 under social security. Adding a supplemental 

annuity to the railroad family’s benefit increases average total benefits for current career rail retirees to 

about $6,355 a month. 
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3. How much are the disability benefits currently awarded?

Disabled railroad workers retiring directly from the railroad industry in fiscal year 2022 were

awarded $3,495 a month on average while awards for disabled workers under social security averaged

$1,555.

While both the Railroad Retirement and Social Security Acts provide benefits to workers who are 

totally disabled for any regular work, the RRA also provides disability benefits specifically for 

employees who are disabled for work in their regular railroad occupation. Employees may be eligible

for such an occupational disability annuity at age 60 with 10 years of service, or at any age with 20

years of service.

4. Can railroaders receive benefits at earlier ages than workers under social security?

Railroad employees with 30 or more years of creditable railroad service are eligible for regular 

annuities based on age and service the first full month they are age 60, and rail employees with less 

than 30 years of creditable service are eligible for regular annuities based on age and service the 

first full month they are age 62.

No early retirement reduction applies if a rail employee retires at age 60 or older with 30 years of 

service and his or her retirement is after 2001.

Early retirement reductions are applied to annuities awarded before full retirement age (the age

at which an employee can receive full benefits with no reduction for early retirement). Full 

retirement age varies depending on an individual’s year of birth, the same as under social security.

Under social security, a worker cannot begin receiving retirement benefits based on age until age 

62, regardless of how long he or she worked, and social security retirement benefits are reduced for 

retirement prior to full retirement age regardless of years of coverage.

5. Can the spouse of a railroader receive a benefit at an earlier age than the spouse of a 

worker under social security?

If a retired railroad employee with 30 or more years of service is age 60, the employee’s spouse is 

also eligible for an annuity the first full month the spouse is age 60. The spouse of a worker under 

social security is not eligible for a spouse benefit based on age until both the worker and the spouse are 

at least age 62. Regardless of age, the spouses of workers under both retirement systems are eligible if 

the worker is retired and the spouse is caring for a qualifying child.

6. Does social security offer any benefits that are not available under railroad retirement?

Social security does pay certain types of benefits that are not available under railroad retirement. 

For example, social security provides children’s benefits when an employee is disabled, retired, or 

deceased, whereas the RRB only pays children’s benefits if the employee is deceased.

However, the RRA includes a special minimum guaranty provision which ensures that railroad 

families will not receive less in monthly benefits than they would have if railroad earnings were

covered by social security rather than railroad retirement laws. This guaranty is intended to cover 

situations in which one or more members of a family would otherwise be eligible for a type of social 

security benefit that is not provided under the RRA. Therefore, if a retired rail employee has children 
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who would otherwise be eligible for a benefit under social security, the employee’s annuity can be

increased to reflect what social security would pay the family.

7. How much are monthly benefits for survivors under railroad retirement and social 

security?

Survivor benefits are generally higher if payable by the RRB rather than social security. At the end 

of fiscal year 2022, the average annuity being paid to all aged and disabled widow(er)s was $1,970 a 

month, compared to $1,500 under social security.

Benefits awarded by the RRB in fiscal year 2022 to aged and disabled widow(er)s of railroaders 

averaged about $2,520 a month, compared to approximately $1,445 under social security.

The annuities being paid at the end of fiscal year 2022 to widowed mothers/fathers averaged

$2,130 a month and children’s annuities averaged $1,330, compared to $1,115 and $970 a month for 

widowed mothers/fathers and children, respectively, under social security.

Those awarded in fiscal year 2022 averaged $2,255 a month for widowed mothers/fathers and

$1,720 a month for children under railroad retirement, compared to $1,100 and $980 for widowed 

mothers/fathers and children, respectively, under social security.

8. How do railroad retirement and social security lump-sum death benefit provisions differ?

Both the railroad retirement and social security systems provide a lump-sum death benefit. The 

railroad retirement lump-sum benefit is generally payable only if survivor annuities are not 

immediately due upon an employee’s death. The social security lump-sum benefit may be payable 

regardless of whether monthly benefits are also due. Both railroad retirement and social security 

provide a lump-sum benefit of $255. However, if a railroad employee completed 10 years of creditable 

railroad service before 1975, the average railroad retirement lump-sum benefit payable is $1,040 in 

fiscal year 2022. Also, if an employee had less than 10 years of service but had at least 5 years of such 

service after 1995, he or she would have to have had an insured status under social security law

(counting both railroad retirement and social security credits) for the $255 lump-sum benefit to be

payable.

The social security lump sum is generally only payable to the widow(er) living with the employee 

at the time of death. Under railroad retirement, if the employee had 10 years of service before 1975 

and was not survived by a living-with widow(er), the lump sum may be paid to the funeral home or the 

payer of the funeral expenses.

9. How do railroad retirement and social security payroll taxes compare?

Railroad retirement payroll taxes, like railroad retirement benefits, are calculated on a two-tier 

basis. Rail employees and employers pay tier I taxes at the same rate as social security taxes,

7.65 percent, consisting of 6.20 percent for retirement on earnings up to $160,200 in 2023, and 1.45 

percent for Medicare hospital insurance on all earnings. An additional 0.9 percent in Medicare taxes
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(2.35 percent in total) will be withheld from employees on earnings above $200,000. 

In addition, rail employees and employers both pay tier II taxes which are used to finance railroad 

retirement benefit payments over and above social security levels. In 2023, the tier II tax rate on 

earnings up to $118,800 is 4.9 percent for employees and 13.1 percent for employers.

10. How much are regular railroad retirement taxes for an employee earning $160,200 in 

2023 compared to social security taxes?

The maximum amount of regular railroad retirement taxes that an employee earning $160,200 can 

pay in 2023 is $18,076.50, compared to $12,255.30 under social security. For railroad employers, the 

maximum annual regular retirement taxes on an employee earning $160,200 are $27,818.10, compared 

to $12,255.30 under social security. Employees earning over $160,200, and their employers, will pay 

more in retirement taxes than the above amounts because the Medicare hospital insurance tax is 

applied to all earnings.

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