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330.5 Non-railroad Work

330.5.1 Before December 1, 1988

To be eligible for an employee, spouse or divorced spouse annuity before 

December 1, 1988, the applicant must have stopped any compensated service 

for, and relinquished all rights to return to, the service of a "Last Pre-retirement 

Nonrailroad Employer" (LPE), even though the compensation may be small and 

the service performed on a temporary, part-time, casual or irregular basis. 

LPE is explained in more detail in FOM1_330_15. 

An applicant for an employee, spouse or divorced spouse annuity did not have to 

cease the types of nonrailroad work that was not LPE. 

330.5.2 December 1, 1988, or Later

Effective December 1, 1988 the applicant does not have to stop any nonrailroad 

service and the applicant is no longer required to relinquish rights to nonrailroad 

service. Earnings from any nonrailroad employer are possibly subject to work 

deductions (refer to FOM1 1110.5 ).

This includes a "Last Pre-retirement Nonrailroad Employer" (LPE) (see 

FOM-I-330.15). However, LPE earnings after the ABD require deductions from 

the applicant's Tier II and supplemental annuity. A spouse's Tier II is reduced for 

the employee's LPE earnings as well as for the spouse's own LPE earnings. 

Refer to FOM1 1121.05. 

330.15 Last Pre-Retirement Non-Railroad Employment Defined

330.15.1 Definition

An annuitant’s Last Pre-Retirement Nonrailroad Employer (LPE) is defined as 

any nonrailroad individual, company or institution whom they are working before 

their annuity beginning date (ABD) or whom they stopped working within six 

months of the ABD in order to receive an annuity. With the exception of 

seasonal employment as described in FOM1 330.37, the nonrailroad employer is 

always the annuitant’s LPE if they are working in nonrailroad employment before

their ABD or, if they have stopped working, they still hold rights to return to 

service of the nonrailroad employer on their ABD. 

In accordance with Legal Opinion L-2021-01, dated July 27, 2021, work for a new 

nonrailroad employer that begins on the same date that an annuitant’s 

entitlement to an annuity begins is not work for a pre-retirement employer, and 

earnings from that work are not subject to Tier II work deductions.
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Note: This definition of the LPE employer is effective for ABDs February 1, 

2004 and later. Cases with an ABD prior to February 1, 2004 were 

processed without regard to the “within six months” rule.

If the applicant stopped work for a nonrailroad employer more than six months 

before the ABD, and does not have re-employment rights, we assume the person 

stopped working for reasons other than receiving an annuity, unless there is 

information to the contrary. Therefore, such employer is not considered to be 

their LPE. 

Example 1: The spouse’s ABD is 12/01/2021. On her application she indicated 

that she last worked for Chili’s, a nonrailroad employer on 03/19/2021. Since her 

date last worked for Chili’s is more than six months before her ABD, Chili’s is not 

her LPE employer. 

Example 2: An employee’s ABD is 06/01/2021. According to his application, his

last nonrailroad employer was Microsoft and the date last worked was 

11/25/2020. Since his date last worked is more than six months before his ABD, 

Microsoft is not his LPE employer.

Example 3: An employee’s ABD is 08/01/2021. According to his application, he

will begin working for his nonrailroad employer, Starbucks, on the same day as 

his ABD. Since he will begin working on 08/01/2021, his ABD, Starbucks is not 

his LPE employer. Therefore, the earnings made from working at Starbucks will 

not be subject to Tier II work deductions.

Example 4 : A spouse has a 02/01/2021 ABD. Her date last worked is 

07/31/2020 for her nonrailroad employer, Farmer’s Mart. This is a unique case 

because there are exactly six months in the period between the date last worked 

and the ABD. If evidence in the case proves that the date last worked is correct 

and that the annuitant does not have any rights to return to work for Farmer’s 

Mart, then Farmer’s Mart would not be her LPE employer. In this type of case, 

examiners might request further development from field offices.

If the applicant stopped work for a nonrailroad employer within six months of the 

ABD, we assume the person stopped work in order to receive an annuity, unless 

there is information to the contrary (i.e., applicant was laid off without return to 

work rights). Therefore, such employer is considered to be their LPE. 

Example 5: The spouse’s ABD is 12/01/2021. On her application she listed her 

LPE employer, Target with a DLW of 6/06/2021. We later discovered that she 

began working for a new employer, Walmart on 12/01/2021. Apply FOM 330.15

as written to this situation; Walmart would not be her LPE because she began 

working for the employer on her ABD. Earnings made from her new employer will 

not be subject to Tier II work deductions. 
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Example 6: An employee’s ABD is 01/01/2021. The employee starts his 

nonrailroad employment with Taco Bell on 04/01/2021. Since he will began 

working for Taco Bell after his ABD, Taco Bell is not his LPE employer and 

earnings made from his new employer will not be subject to Tier II work 

deductions. However, if the employee request a later ABD of 06/01/2021 and the 

employee continues his employment with Taco Bell, then Taco Bell is considered 

to be his LPE. Earning made from Taco Bell will be subject to Tier II work 

deductions starting with the new ABD.

Example 7: A spouse’s ABD is 10/01/2021 based on child in care. According to 

her application, she will begin working for her nonrailroad employer, Costco on 

the same day as her ABD. Since she will begin working on 10/01/2021, her 

ABD, Costco is not her LPE employer. Therefore, the earnings made from 

working at Costco will not be subject to Tier II work deductions.

However, if the spouse’s ABD changes from 10/01/2021 because she is no 

longer entitled to an annuity based on child in care to an ABD of 11/01/2021 

based on age and service and the spouse is still employed by Costco, then 

Costco will be her LPE employer because she is working for Costco within six 

months of her new ABD.

330.15.2 More than One LPE

When the annuitant was working for two or more persons, companies, or 

institutions within the six months preceding their ABD, all such employers are 

presumed to be their LPE.

330.25 LPE Determinations

Each LPE decision is based on the facts and circumstances in the particular 

case. Although there are no set rules that cover every case, the basic guidelines 

are in FOM1 330.30. It is extremely important to have an accurate LPE 

determination made before the annuity is awarded. Be sure to consider any nonrailroad work that might begin before the annuity beginning date but after the 

filing date. An erroneous decision or a decision based on incomplete or 

inaccurate information may result in a large overpayment.

330.25.1 By RRB Field Office

The field office has the authority to make the LPE or simple “seasonal 

employment” or “self-employment” determination. The field office will decide what 

data to develop and whether a review of their determination by RBD is required. 

If the claimed “seasonal employment” or “self-employment” does not specifically 

meet the basic guidelines in FOM1 330.30, the field office should request a 

review of their determination by RBD. The field office may also request a RBD 

review for any other case in which they want RBD to make the LPE 

determination.
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When LPE, seasonal employment or self-employment indicated on an application 

does not require review by RBD, the field office will make the determination that 

the work is LPE, seasonal employment or self-employment. The field office will 

document this decision by specific entries made on the APPLE APMU032 NonRailroad Employment screen, APPLE APMU005 (PF 24) Summary screen, and 

APPLE APMU550 Remarks screen of the application. The APPLE Receipt for 

Your Claim will include the name of the LPE that was entered on the application 

as LPE.

However, when the applicant is claiming self-employment or “seasonal 

employment” that could be LPE, the field office should always release an RL-299 

series letter to the applicant (see FOM1 330.28). The LPE, seasonal employment 

or self-employment determination made by the field office that did not require 

review by RBD will be final. 

330.25.2 By RBD

In most cases, RBD can resolve LPE questions using the information in this 

chapter or precedent legal opinions. If the examiner cannot readily resolve an 

LPE question, the case should be discussed with their supervisor, who will 

complete Form G-231a Worksheet for Development and Determination of PreRetirement Nonrailroad Employment and either make the decision based on 

precedent opinion or refer the case to their attorney-advisor. RBD should always 

release an RL-299 series letter to the applicant (see FOM1 330.28).

330.25.3 By RRB Bureau of Law

The RRB Bureau of Law has the authority to make LPE determinations when the 

employee or spouse writes to them directly or when the field office or RBD 

requests them to make the LPE determinations. 

a. Informal Determination

The Bureau of Law may make an informal determination by replying to the 

inquiry by email. RBD should document this determination by sending an RL-299 

series letter to the employee or spouse. Send a copy of the letter to imaging for 

the claim file. 

b. Formal Determination

The Bureau of Law makes a formal determination by responding directly to the 

employee or spouse. The final determination is the legal opinion issued by the 

Bureau of Law. Send a copy of the legal opinion to imaging for the claim file. 
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330.26 How to Request RBD Review

Cases that need to be reviewed by RBD should be notated on the application via 

the Self-Employment Review field on the APPLE Non-Railroad Employment 

Screen. Be sure to have the AA-4 imaged, as a work item, to RBD to adjudicate. 

It is not necessary to enter a review code in the Manual Review item of the 

APPLE Summary Screen to prevent the release of IMPACT and/or SPAR, unless 

the contact representative questions whether LPE or self-employment is actually 

railroad employment. 

If the question is whether employment is LPE, the RRB field office should apply a 

potential LPE work deduction reduction to the Tier II IMPACT or SPAR amount.

330.27 Advance LPE Determinations

A potential employee or spouse annuitant may request an LPE determination 

before he or she files an application. Such a request will be handled in the same 

manner as if an annuity application had been filed. Complete information should 

be developed and reviewed by the field office. Based on the criteria presented in

FOM1 330.30, the field may either make the determination whether employment 

is LPE or self-employment, or can refer the advance LPE determination to RBD 

for a decision. Use an RL-299 series letter to advise the employee or spouse of 

the determination (see FOM1 330.28).

An advance LPE determination remains effective when an application is filed,

provided the facts on which the decision is based have not changed. The facts 

must be restated to insure that no change has occurred alter the determination.

330.28 RL-299 Series Notification of Decision Letters

As explained in FOM1 1745 the field offices or RBD examiners use the following 

letters to advise an employee or spouse of an LPE determination:

• Use Form RL-299A to notify an employee whether the RRB considers work 

claimed as self-employment to actually be self-employment or to be Last 

Pre-retirement Nonrailroad Employment (LPE). 

• Use Form RL-299B to notify a spouse whether the RRB considers work 

claimed as self-employment to actually be self-employment or to be Last 

Pre-retirement Nonrailroad Employment (LPE).

• Use Form RL-299C to notify an employee or spouse that the RRB considers 

the work to be “seasonal employment.’ 

• Use Form RL-299D to notify an employee or spouse that the RRB considers 

work claimed as “seasonal employment” to actually be LPE. 
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• Use Form RL-299E for advance LPE determinations for an employee or 

spouse (see FOM1 330.27) when the LPE does not involve any claim of SEI 

or “seasonal employment.” Note that the RL-299E letter is not required if the 

applicant is filing an AA-1 or AA-3 at the same time. The APPLE Receipt 

page of the application, which includes the name of the LPE, is sufficient 

notice to the applicant of the LPE determination.

Do not include an AB-25 appeals paragraph in these letters. Instead use one of 

the code paragraphs designed for these letters that will advise the person that a 

subsequent award or adjustment letter will provide appeals rights. The applicant 

can appeal any mention of the LPE on the RL-20 award letters. 

330.30 LPE Guidelines

Each LPE decision is based on the facts and circumstances in the particular 

case. There are no set rules that cover every case. The following guidelines 

indicate the information needed by the field office or RBD to make an LPE 

determination.

330.30.1 Employment That is Considered LPE - 

The following types of work are LPE if the work continues past the ABD or ends 

within 6 months of the ABD. The RRB field office may make the LPE 

determination.

1. Ordinary nonrailroad work for wages or commissions, full or part- time.

2. Service in Canada for a railroad employer whose principal operation is in 

Canada (see RCM 5.2.13).

3. Public office. (See FOM1 330.34) 

330.30.2 Employment Not Considered LPE - 

The following types of work are not LPE. The RRB field office may make the LPE 

determination without RBD review.

1. Ordinary nonrailroad work for wages or commissions, full or part time that 

ends more than 6 months before the ABD

2. Service in Canada for a railroad employer, whose principal operation is in 

the United States.

3. Self-employment (see FOM1 330.31).

4. Military Service.

5. Employment that is gratuitous or for which only a gratuity is paid.
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6. Service for less than $25.00 ($3.00 before 1-1-75) a month to a local 

lodge or division of a railway labor organization is not railroad service or 

LPE. An exception is service performed as an employee representative by 

a local lodge or division secretary collecting insurance premiums. This 

service is considered LPE even if the commissions received are less than 

$25.00 a month.

7. Mail handling under contract for the Post Office Department.

8. Jury duty.

9. For annuity beginning dates prior to 12-1-88, nonrailroad employment 

which begins after the applicant demonstrated intent to retire (see FOM1 

330.110).

10. Nonrailroad employment which began on or after the annuity beginning 

date. 

11. Ownership of a Limited Liability Corporation (LLC), legally referred to as 

being a “member” (see FOM1 330.36.) 

12. “Seasonal” employment (see FOM1 330.37.)

330.30.3 Work That Does Not Need RBD Review - 

The following types of work may or may not be LPE. The RRB field office may 

make the LPE determination.

1. Public Employment. (See FOM1 330.35.)

2. Work for a Corporation. (See FOM1 330.36.) 

3. Work for a Reorganized or Merged Employer. (See FOM1 330.38.)

330.30.4 Work That Needs RBD Review - 

The following types of work require RBD review:

1. Consultants, especially consultants for a former employer (see FOM1 

330.33.3.)

2. Ministers of churches (see FOM1 330.33.5.)

3. Salesmen (see FOM1 330.33.4), and

4. Volunteer Public Service, such as CETA employment (see FOM1 

330.35.2). 
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330.31 Self-Employment

Self-employment is work performed in a person's own business, trade or 

profession, rather than for an employer. While self-employment is not LPE, some 

activities claimed by the applicant as self-employment may actually be 

employment for someone else (e.g., salesman or domestic worker). An applicant 

may or may not be considered self-employed if he works in an incorporated 

business. Refer to FOM1 330.36 if the claimed self-employment involves a 

corporation. Refer to FOM1 330.33.4 if the applicant claims self-employment as 

an independent contractor. The fact that an applicant has reported earnings as 

self-employment to the Internal Revenue Service does not make his work "selfemployment."

A determination must be made by the RRB field office or RBD in each case the 

Application AA-1 or Application AA-3 indicates self-employment during the last 6 

months preceding the annuity beginning date or during the last 6 months 

concurrent with railroad work. The applicant should also complete Form AA-4, 

"Self-Employment and Substantial Service Questionnaire." Consider the 

circumstances of each case. Form G-177L General Information about 

Continuing in or Returning to Nonrailroad Employment after Retirement under the 

Railroad Retirement Act provides guidelines, based on precedent legal opinions

that will permit a determination in most cases.

In disability cases, DBD must evaluate all work done in the last 15 years 

immediately prior to alleged disability onset date in order to determine SGA and 

whether or not substantial services were performed. Therefore, in disability 

cases, secure an AA-4 for work shown as self-employment during this 15-year 

period. If the work does not affect C/C or LPE determination (e.g. the work 

covered on the AA-4 was performed more than 12 months before date last 

worked in RR or non-RR work), a determination by RBD or the field office is not 

necessary.

Use this information to make a determination before the case is processed for 

award.

330.32 Railroad Employment vs. Self-Employment 

Determination

See FOM1 330.36 if the claimed self-employment involves a corporation. 

Otherwise, the fact that an applicant has claimed self-employment and reported 

earnings as self-employment to the Internal Revenue Service does not require 

the RRB to consider the work to be "self-employment." Secure complete details 

of the work on Form AA-4, Self-Employment and Substantial Service 

Questionnaire. Refer to FOM-I-212.8 if the employee is only receiving 

reimbursement for expenses. 
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330.32.1 APPLE Summary Screen 

The RRB field office will leave the IMPACT and SPAR items blank and code the 

APPLE Summary Screen for MANUAL REVIEW (to prevent the release of 

IMPACT and/or SPAR) when claimed nonrailroad employment or selfemployment could actually be railroad employment. 

330.32.2 Work for a Railroad Employer 

If applicants perform work for a railroad and that work is subject to the continuing 

authority of the railroad to supervise and direct the manner in which the work is 

done, or if they are integrated into the staff or operations of the railroad while 

performing such work, then they are considered to be acting as an employee of 

the railroad. This is especially true if the work is similar to their last railroad job.

330.32.3 Consultant Services

Employment as a consultant in work similar to their last railroad job is not 

considered LPE when the person is reimbursed only for expenses incurred or his 

services are also available to the public. On the other hand, consultant services 

performed exclusively for the railroad for an indefinite period may be railroad 

employment.

330.32.4 Self-Employed Independent Contractor 

In general, if the arrangement between the applicants and the railroad is such 

that the applicants are not supervised by the railroad when performing their 

services and they are not integrated into the staff or operations of that railroad, 

then they are considered to be self-employed independent contractors. 

330.32.5 Notice of Self-Employment vs. Railroad Determination 

RBD will use RRAILS letter RL-299A to advise an employee or RL-299B to 

advise a spouse when the RRB considers work claimed as self-employment to 

actually be self-employment (see FOM1 330.28). 

If RBD considers work claimed as self-employment to actually be railroad 

employment, they should refer the case to BFO - Audit and Compliance Section 

for a “coverage determination.” A copy of this referral should be sent to the 

applicant and imaged for the claim file.

330.33 LPE vs. Self-Employment Determination 

See FOM1 330.36 if the claimed self-employment involves a corporation. 

Otherwise, the fact that an applicant has claimed self-employment and reported 

earnings as self-employment to the Internal Revenue Service does not require 

the RRB to consider the work to be "self-employment." Secure complete details 
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of the work on Form AA-4, Self-Employment and Substantial Service 

Questionnaire. 

330.33.1 APPLE Summary Screen

The RRB field office will not prevent the release of IMPACT and/or SPAR 

pending an RBD review of an LPE vs. self-employment determination. However, 

the field office is to apply a potential LPE work deduction reduction to the Tier II

IMPACT or SPAR amount. See FOM1 1121.05. for more information about LPE 

work deductions.

330.33.2 Work for an Employer 

If the person performs work for their client subject to the continuing authority of 

that client to supervise and direct the manner in which the person works, or if the 

person is integrated into the staff or operations of their client while performing 

such work, then the person will be considered to be acting as an employee and 

their client is their LPE employer.

330.33.3 Consultant Services

Employment as a consultant (such as a physician or an attorney) is not 

considered LPE when the person is reimbursed only for expenses incurred or his 

services are also available to the public. On the other hand, consultant services 

performed exclusively for one individual or company for an indefinite period may 

be LPE. 

330.33.4 Self-Employed Independent Contractor 

In general, if the arrangement between the person and their client is such that the 

person is not supervised by their client when the person performs services and 

the person is not integrated into the staff or operations of that client, then the 

person is considered to be a self-employed independent contractor.

a. Salespersons

Salespersons who work as independent contractors are self-employed. If 

workers are independent contractors under the IRS common law rules, he/she 

may be treated as an employee by statute, i.e. statutory employee, for certain 

employment tax purposes such as Social Security and Medicare taxes. 

Salespersons who cannot be considered independent contractors or selfemployed persons are considered to be working for someone else. As such, the 

employment is considered LPE.

Whether or not a salesperson (e.g., real estate, insurance, cosmetic) can be 

considered an independent contractor will depend on several factors discussed 

on Form AA-4. Specifically pertinent:
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• Income is derived solely from sales activity (commissions) rather than a 

guaranteed salary for specific hours worked; and

• There is a contract stipulating that the individual is not an employee of the 

company, rather he is an independent contractor.

b. Avon Salespersons

Situation: The spouse applicant is an Avon sales representative. She/He solicits 

orders for Avon products, collects payment and delivers products to the 

customer. She/He has a written contract that specifically disallows any 

employer/employee relationship and identifies the amount of commission to be 

paid based on total sales. She/He reports her/his earnings to the IRS and pays 

self-employment tax.

Determination: This is self-employment. The spouse is not under any individual's 

supervision. She/He alone determines the amount of time spent on this activity. 

Her/His income is based solely on the amount of products sold.

c. Gas Station Franchise

Situation: The spouse applicant owns and operates a Shell gas station. His 

business is not incorporated. He has a contract with the Shell Oil Co. to purchase 

gasoline and other petroleum products, renewable yearly. He employs 2 parttime attendants. He determines the number of hours he will work, pays all the 

expenses related to operating the station, reports his earnings to the IRS and 

pays the self-employment tax.

Determination: This is self-employment. The spouse is able to terminate the 

relationship with Shell Oil; he is not subject to their supervision and his income is 

not guaranteed. It is based solely on the amount of products and services he 

sells.

d. Coffee Cart Service

Situation: The spouse applicant has a coffee cart service. She provides coffee 

snacks to the employees of a Power Co. She is not supervised and she 

determines the number of hours she will work. She has a written contract with the 

Power Co. that states spouse is an independent contractor; that she does not 

participate in employee benefits; that she is responsible for all state and federal 

tax and unemployment insurance; and that her compensation consists of income 

derived from services rendered after the expense of supplies and equipment. 

In addition to the preceding, the Power Co. guarantees her a minimum monthly 

income of $750.00, reserves the right to terminate the contract and mandates at 

least 2 daily runs, once in the morning and once in the afternoon.

Determination: This is LPE.
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e. Cattle Rancher

Situation: The employee applicant raises cattle and grows feed for these cattle 

on a family owned farm. His earnings are based on the cattle sold. He is 

responsible for all the expenses and pays self-employment tax on the net 

income.

Determination: This is self-employment. 

330.33.5 Minister

Employment as a minister of a church (or a rabbi of a synagogue) may be 

considered as self-employment or LPE depending on the circumstances. The 

fact that wages as a minister are reported to SSA as self-employment income 

has no bearing on our determination. A church is an identifiable entity and may 

be considered a "person" within the meaning of the LPE provision of the Railroad 

Retirement Act.

If the individual does not have any specific duties with the church and is not 

subject to the direction and control of a supervisor, the activities claimed by the 

applicant are considered self-employment. If the church exercises control over 

the way the minister serves the congregation, the church is an LPE employer. 

When employment as a minister is indicated, Headquarters review of the field 

office determination is required. If doubt exists about whether the activity is selfemployment or LPE, RBD should refer the case to their attorney-advisor.

The following aspects should be considered when determining whether or not the 

individual is performing "compensated service" within the meaning of the 

Railroad Retirement Act:

 Motive for working - The receipt of remuneration should be incidental to and 

not at all the motivating factor in the performance of the functions of the 

religious office.

 Previous Agreement with the Church Regarding Remuneration - If the 

individual reports that he has an agreement to receive any form of payment 

or fixed amount in return for his services, determine that the individual is 

performing compensated service.

 Other Considerations - Reimbursement to clergyman for expenses incurred 

while performing job should not be considered compensation.

a. Minister in LPE

Situation: John Doe is a clergyman at a church in Louisville, KY. His duties 

consist of visitation of members, sick calls, mid-week services and two services 

each Sunday. These duties have been chosen and assigned to him by the 
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church. Before assuming the position of minister with this Church, he made an 

agreement with the elders to receive a fixed percentage of the contribution made 

by his parishioners to the church. He had been a minister to this church for 2 

years averaging about $250 per month at the time he filed for a railroad 

retirement annuity.

Determination: Mr. Doe is working for a church that can be considered an LPE 

employer because they exercise control over his duties. He is also rendering 

compensated service because he made an agreement with the elders to receive 

money for his services.

b. Minster Not LPE

Situation: Donald Smith is a clergyman at a church in Seattle, Washington. He 

performs the various duties required of a minister such as making sick calls, midweek services, and Sunday services. Occasionally at the Sunday services, a 

collection is made for the benefit of the minister. The amounts of money collected 

range from $25 to $75 per month. There is no agreement between the minister 

and the congregation that these collections are made in return for Mr. Smith's 

services as minister.

Determination: This church is considered an LPE employer because it exercises 

control over the way Mr. Smith renders service to the church. However, Mr. 

Smith has no previous agreement to receive money for being a minister, so that 

he is not in compensated service to an LPE employer. Therefore, he may go on 

rendering service to the church and receive money from them in the same 

manner without LPE work deductions.

330.33.6 Notice of SEI vs. LPE Determination

The field office or RBD will use RRAILS letter RL-299A to advise an employee or 

RL-299B to advise a spouse whether the RRB considers work claimed as selfemployment to actually be self-employment or to be LPE (see FOM1330.28). 

330.34 Public Office

330.34.1 General

If the application filing date in June 24, 1991, or later, all appointed or elected

public office is considered to be LPE and subject to LPE work deductions.

330.34.2 Appointed Public Office When Filing Date before June 24, 1991

Appointed public office positions were or were not considered to be LPE 

depending on the primary motive that the individual had in serving. The following 

guidelines were used in determining whether or not the public office was 

considered LPE:
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a. Remuneration of More Than $150 a Month (More Than $1800 a Year)

This service was treated as LPE because we assumed that the individual's prime 

motive in serving in the public office was the salary involved rather than the 

desire to serve the public.

b. Remuneration of $150 a Month ($1,800 a Year) or Less - 

An LPE determination was required because we could not make an assumption 

of what the individual's prime motive in serving was. The field office developed 

information concerning the statute or ordinance that established the office, the 

duties and the term of office and the amount of compensation paid.

330.34.3 Elected Public Office When Filing Date Before June 24, 1991. - 

If the elected public office positions were with a foreign country, they were 

subject to the guidelines in FOM1330.34.2. Otherwise, an exception was made 

for elected officials based on their annuity beginning date:

a. Annuity Beginning Date was 1-1-75 or Later - 

The elected public office positions within the United States, a State, or political 

sub-division of a State were not considered LPE, and the elected official did not 

have to stop that service, regardless of the amount of remuneration received or 

the motive the individual had in serving. This provision also applied to individuals 

appointed to fill an unexpired portion of a term of an elected office; or, 

b. Annuity Beginning Date was before 1-1-75 - 

The elected public office positions within the United States, a State, or political 

sub-division of a State was subject to the guidelines outlined in Section B(2) 

above. 

330.34.4 Public Office Questionnaire Used Before June 24, 1991

Form AA-4 was not used. The RRB field offices secured the following information 

in a domestic appointed public office position or in a foreign appointed or elected 

public office position. The field offices developed the following information.

1. Is the applicant in an elected or appointed position?

2. Was the applicant required to take an oath of office?

3. Is there a definite term of office? If so, what is the term?

4. How often, and in what amounts, is compensation paid (i.e., salary per 

day, per month, or per year, whichever is appropriate)?
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5. What are the duties and responsibilities of the office?

6. How much time is spent in the performance of the duties of the office?

7. What is the citation to the state statute that establishes the position and 

prescribes the duties and compensation? If the position is provided by 

local ordinance, obtain a copy or submit a verbatim extract of the pertinent 

provision.

330.35 Public Employment

For public employment, in addition to Form AA-4, determine if the service is 

regular employment, is performed under provisions of The Domestic and 

Volunteer Service Act of 1973 or is performed Title V of the Older American 

Community Service Employment Act.

330.35.1 General

"Public employment" (i.e., employment by a unit of a local, State, or Federal 

government) differs from "public office" in that the person in public employment is 

under the control and supervision of another "person." Therefore, "public 

employment" is usually considered LPE. 

If a unit of a local, state, or Federal government employs the applicant, determine 

whether the governmental unit by which the applicant is employed is independent 

of any larger unit or is an integral part of a larger unit. In public employment 

cases it is necessary to determine which governmental unit is the last employer. 

Generally, if an employee worked for a governmental unit that is an integral part 

of a larger political entity, the entire entity is the LPE employer.

EXAMPLE 1: An age and service applicant last worked for the VA. His LPE 

employer is the U.S. Government and not just the VA.

EXAMPLE 2: A spouse applicant last worked for the Klondike Water Department 

that is an integral part of the village government of Klondike, Arizona. Her LPE 

employer is the village of Klondike, and not just the Water Department.

In some cases, particularly those involving local governmental units, it may be 

difficult to distinguish the political entity. Most States have independent local or 

regional districts such as school districts, park districts, sanitation districts, fire 

protection districts, etc., which are not part of a larger political entity. In 

developing data in these cases, be sure to find out whether the governmental 

unit is "independent" or part of a larger unit.

EXAMPLE 3: A disability applicant last worked for the Frostfree Falls Park 

District, an independent political unit that operates the park system in the town of 

Frostfree Falls, Minnesota. His LPE employer is the Frostfree Falls Park District 

and not the town of Frostfree Falls.
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330.35.2 Volunteer Public Service (Not Covered By Domestic and 

Volunteer Services Act of 1973) 

In a case in which persons appear to have an LPE because of their continued 

service as a volunteer worker, that is not covered by the Domestic and Volunteer 

Services Act of 1973, (such as volunteer firemen), investigate the payments 

made to them. If the organization considers the payments to be just 

reimbursement for the person’s expenses, the organization is not the person’s 

LPE. Under such circumstances, their service is not LPE, even if the payments 

are reported to SSA as wages or if payment is made at a set rate; for instance, 

$3 for each fire to which the annuitants respond.

If, however, the person receives payments that are considered to be 

compensation, and not merely reimbursement for expenses, the organization is 

their LPE and their employment is considered earnings from LPE.

330.35.3 Volunteer Services under Domestic and Volunteer Service Act of 

1973

The Domestic and Volunteer Service Act of 1973 consolidated, under the 

ACTION Agency, the domestic volunteer programs. The act was comprised of six 

volunteer service programs throughout the Federal Government identified under 

Titles I, II and III of this act. 

These services are meant to be provided by volunteers and not by members of 

the labor force. A stipend or allowance may be provided only to enable 

volunteers to effectively carry out their assignments. Payments to volunteers 

under this Act shall not eliminate eligibility for any government program. 

Therefore, this employment is not LPE.

These programs are:

a. Title I - National Volunteer Antipoverty Programs

Part A - Volunteers in Service to America (VISTA).

Part B - Service - Learning Programs.

Part C - Special Volunteer Programs.

b. Title II - National Older American Volunteer Programs

Part A - Retired Senior Volunteer Program.

Part B - Foster Grandparent Program and Older American Community Service 

Programs.
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c. Title III - 

National Volunteer Programs To Assist Small Business and Promote Volunteer 

Service By Persons With Business Experience

330.35.4 Public Service Performed under Title V of the Older American 

Community Service Employment Act

Service performed under and entirely funded by Title V of the Older American 

Community Service Employment Act does not constitute LPE.

330.35.5 CETA employment

The purpose of the Comprehensive Employment and Training Act (CETA) is to 

provide job training and employment opportunities for economically 

disadvantaged, unemployed, and underemployed persons and to assure that 

training and other services lead to maximum employment opportunities and 

enhance self-sufficiency by establishing a flexible and decentralized system of 

Federal, state, and local programs.

CETA employment may or may not be regular employment that is considered to 

be LPE. A determination must be made by RBD in each case, based on the 

particular facts in the case. The wages may or may not be covered under the 

Federal Insurance Contributions Act (FICA), and may or may not be creditable as 

employment for purposes of state unemployment compensation acts. Since the 

facts vary in individual cases, no guidelines have been established that will 

indicate whether CETA employment is LPE.

CETA employment, in addition to Form AA-4, secure the following information:

1. Under which subchapter or Title was the person employed?

2. What type of work did the person perform?

3. Was this work similar to that performed with the railroad?

4. Did the person receive any special training for this job?

5. How long was the person employed under CETA?

6. Did the person pay FICA taxes?

330.36 Corporations

Employment with Corporations may or may not be LPE. 
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330.36.1 Corporation Work that is Self-Employment

1. Directors of a Corporation - Directors of a corporation are persons who 

represent the stockholders in business dealings with the corporation’s 

management. A person serving as a member of a corporation's board of 

directors is not an employee of the company. The company is not their 

LPE. The position is self-employment that will not break their C/C.

NOTE: When applying work deductions for years before 1991, corporate 

director’s earnings are treated as earnings for the year in which they are 

received. Effective January 1991, corporate director’s earnings are 

treated as received in the year that the relevant services are performed.

2. Limited Liability Corporations (LLC) - LLC is a business that has some of 

the organizational features of an incorporated business but does not meet 

the federal requirements of a true corporation. An owner of a LLC is 

legally referred to as a “member.” Membership in a LLC is selfemployment, not LPE.

The person that is claiming that his company is an LLC must submit proof. 

Proof of LLC structure is the individual’s statement supported by the 

business name on any license, articles of the organization, or the 

operating agreement. If the person is claiming a consultant business, the 

LLC contracts with various clients will be preferred proof.

330.36.2 Corporation Work that is LPE

When a business has been incorporated, the corporation is a legal person and, 

therefore, an employer.

1. Corporate officers -Corporate officers (e.g. President, Vice-President, 

Secretary, or Treasurer) are employees that have administrative duties. 

The corporation is their LPE.

2. Subchapter “S” corporations.- Subchapter “S” type corporations are full 

corporations and are LPE.

3. Limited Liability Corporations (LLC) - An LLC is an LPE for persons who 

do not own the LLC, but are hired by the members who own an LLC.

330.37 Seasonal Employment

330.37.1 Definition of “Seasonal Employment”

Some types of nonrailroad seasonal work are not LPE, even though work is 

performed in the 6 months immediately before the ABD. With respect to 

nonrailroad seasonal employment (i.e. Christmas season employment), L-97-37 

states that the employer is not considered to be LPE if:
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• the annuitant possesses no re-employment rights and must reapply each 

year for the position; and,

• the employment relationship is terminated at the end of each period of 

employment; and,

• such employment has terminated prior to the annuity beginning date for 

some reason not related to the application for an annuity under the Railroad 

Retirement Act. 

Whether an individual is in a period of seasonal employment when his or her 

annuity begins is relevant to the question of whether LPE work deductions apply 

only to the extent that such information sheds light on the question of whether 

the seasonal employment terminated prior to the annuity beginning date for some 

reason not related to the application for an annuity.

You have to determine if there is a pattern of seasonal employment during the 

years prior to the time the application is filed. If there is a pattern of prior 

seasonal employment, then that employment terminated prior to the annuity

beginning date for some reason not related to the application for an annuity. The 

annuitant does not have to be outside of a period of seasonal employment for the 

exemption to apply. 

Example 1 - The employee works for H&R Block during the tax season from 

January 15, 2003 through May 15, 2003. He does not retain employment rights 

with H&R block when he stops working on May 15, 2003. His RRB annuity 

begins July 15, 2003. H&R Block is not his LPE. If he re-applies to work at H&R 

Block in the next tax season and begins work on January 15 2004, he is not in 

LPE. 

Example 2 -The employee (age 62 with 32 years of railroad service) stop working 

in railroad employment on December 20, 2003. The earliest possible ABD by 

law is December 21, 2003. On that day, the employee is working for Mr. Santa 

Claus as an order fulfillment specialist. The employee has worked for Mr. Santa 

Claus for the last three Christmas seasons. Mr. Santa Claus is not the 

employee’s LPE employer even though he is working for Mr. Santa Claus on his 

ABD because a pattern of seasonal employment has been established.

330.37.2 Document the APPLE Screen

The field office should document the decision that the nonrailroad employment 

was “Seasonal Employment” by using the Employment Type Code = 6 -

“Seasonal Employment.” on the APPLE Nonrailroad Work screen. Document the 

decision that the nonrailroad employment was seasonal work, on the APPLE 

APMU550 Remarks screen (PF-12). Enter a complete explanation about the 

seasonal non-RR employment (include employer's name and address, and dates 

involved). 
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When pre-filling the name of the LPE on the Form AA-1 Receipt for Your Claim, 

APPLE will edit out nonrailroad work that has an Employment Type Code = 6 - 

“Seasonal Employment.”

If the claimed “seasonal employment” does not specifically meet the basic 

guidelines in FOM1 330.30 and the field determines the employment not to be 

LPE, the field office should request RBD manual review by using manual review 

code “3” on the APPLE Summary screen. 

330.37.3 Notice of Seasonal vs. LPE Determination

The field office or RBD will use RRAILS letter RL-299C to advise an employee or 

spouse that the work is considered to be “seasonal employment or RL-299D to 

advise an employee or spouse that the RRB considers work claimed as seasonal 

employment to actually be LPE (see FOM1 330.28 ).

330.38 Work for Reorganized or Merged LPE Employer

330.38.1 Change in Employer EIN

Most LPE employers are identified by their Employer Identification Number (EIN). 

L-77-135 and L-68-1 explain that the dissolution of a corporation and creation of 

a new corporate entity or other business structure, such as a partnership, with a 

new EIN, means that an employer becomes a "new person." Employment for that 

new person is not LPE, even if there is no change in the duties of the job.

330.38.2 Under Jurisdiction of Holding Company

The fact that an LPE is in Chapter 11 bankruptcy and is under the jurisdiction of a 

holding company does not necessarily mean that it has become a new 

corporation entity. The annuitant's earnings may temporarily be reported under 

the holding company's EIN for the LPE employer. However, the LPE may emerge 

from the Chapter 11 proceedings with the original corporate structure and the 

original EIN.

330.38.3 Working for Subsidiary with Different EIN

L-77-162 describes a situation in which the annuitant was working for a 

subsidiary of the LPE with different EIN. It states that the strongest indication of 

an employer-employee relationship is the continuing authority of the employer to 

supervise and direct the manner of the annuitant's performance. Annuitants are 

determined to be in LPE, even though they are carried on the payroll of a 

subsidiary
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330.38.4 Consolidation of Payroll Processing for the Federal Civilian 

Workforce

Effective January 10, 2003 the Office of Management and Budget (OMB) 

consolidated the payroll processing for the civilian Federal workforce As a 

result; the entire Federal civilian payroll is processed by the following four 

agencies:

• Department of Defense Finance and Accounting Service

• General Services Administration

• Department of Agriculture National Finance Center

• Department of Interior National Business Center

Due to the consolidation of payroll processing for the Federal civilian workforce, 

the Employer Identification Number (EIN) appearing for a civilian Federal 

employee may not show the agency the employee worked for, but will show the 

agency that processes the payroll.

330.40 LPE Entries on Annuity Application Forms

Instructions for completing the Nonrailroad work items on the RRAILS Application 

AA-1 is in FOM1 1710, Form AA-1.

APPLE On-line Help includes instructions for completing the nonrailroad work 

screen. 

330.41 When LPE Data On Application Is Incorrect

LPE information provided by the applicant or annuitant might be contradicted by 

other evidence in file. An example would be a wage pattern - confirmed as LPE 

by SSA's employer breakdown - showing employment after the ABD year.

330.41.1 Annuitant's Statement

If the employment requires LPE work deductions, handle the case as follows:

1. Obtain the Form G-19F, Earnings Questionnaire , or an equivalent 

statement if the annuitant failed to report post-ABD earnings in a prior 

year. (Earnings reports are discussed in FOM1 1121.40.2); or,

2. If the annuitant stopped working in LPE and does not need to report prior 

year earnings, obtain the annuitant's certification on Form G-88 or in a 

signed statement.
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In all other situations, the annuitant should provide a signed statement 

acknowledging or protesting the LPE data.

330.41.2 Contact the Employer(s) Regarding LPE

When necessary, RBD will release Form G-231 (Request for Field Investigation 

of Last Pre-retirement Nonrailroad Employer) to the field office serving the area 

in which the employer is located.

330.42 Annuitant Protests Earnings Report From SSA

Information on earnings amounts and employers is received twice a year from 

SSA, usually in May and November. When an annuitant's payments have been 

suspended or are being adjusted based on his wage record from the Social 

Security Administration (SSA) indicating LPE, and the annuitant protests that he 

did not perform the service, develop the basis for the protest. 

The actual work may have been performed by someone else using his SSA 

number, such as his wife or other family members, or by persons not of the 

family. Get statements from the employer, the actual employee, and the 

annuitant explaining in detail the circumstances of the employment. If the work 

was not the annuitant's, RBD will adjust the annuity accordingly. 

RBD will send a full report of our investigation and decision, including any copies 

of statements, to the appropriate SSA office and request SSA to notify us of any 

action they take to adjust the wages of the persons involved. An adjustment to 

remove the earnings from the computation of the annuity will be made after SSA 

has adjusted the annuitant's wage record.

330.44 LPE Earnings Reports

LPE work deductions are discussed in FOM 1 1121. 

330.44.1 Annuitant Stops LPE

A person is considered to cease service as of the last day they performs 

compensated service for an LPE. If "Pay For Time Lost" or vacation pay extends 

past the actual day last worked, the person is considered to cease service at the 

end of the "Pay For Time Lost. If the person stops LPE, they should contact the 

nearest RRB office to complete Form G-19F, Earnings Questionnaire. 

The field office should use the SPEED (System Processing Excess Earnings 

Data) found in Boardwalk to report the earnings information. By doing so, the 

earnings information is stored in a database and a STAR referral is created for 

handling by the appropriate unit in Operations. Refer to FOM 1 15125 for 

detailed instructions for accessing and using SPEED. Make sure you use the 

proper reporting screen in SPEED and indicate it is a “Cease Work” report.
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If LPE Work deductions are being applied to the spouse based on EE’s LPE and 

the EE ceases such work, indicate in Remarks on the EE’s Cease Work Report 

that the spouse work deductions also need to be removed. 

Field offices should retain all original earnings reports until September 30th each 

year. At that time, the accumulated reports should be batched and submitted to 

headquarters for imaging as explained in FOM 1 1115.35.3. 

330.44.2 Annuitant Returns to LPE

An employee or spouse must notify the RRB immediately of return to work for an 

LPE employer. A written statement must be submitted if the employee or spouse 

has already retired and wishes to return to work.

Obtain a written statement from the annuitant which includes:

• An estimate of the expected average monthly earnings;

• The name and address of the employer; and

• The beginning date, and if known, the ending date of the employment.

Advise the employee or spouse that next year the RRB will request a final report 

of earnings, including a monthly breakdown of LPE earnings. 

330.50 Railroad Work

330.50.1 Railroad Work Applicants Must Stop

An employee, spouse or divorced spouse annuity cannot begin earlier than the 

day after the last day of the applicant's railroad service. 

The one exception to work the applicant must stop is service for less than $25.00 

a month to a local lodge or division of a railway labor organization. However, 

work by a local lodge or division secretary collecting insurance premiums, 

regardless of the amount of salary, is railroad work which must be stopped.

After the annuity is awarded, payment cannot be made for any month in which 

the annuitant works for a railroad employer.

In contrast with the above, the payment of membership dues by local lodges on 

behalf of their secretaries is not creditable compensation (railroad work). This 

represents payments of an employee expense and will not affect payment of the 

annuity.
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330.50.2 When Cessation of Service Occurs

An applicant is considered to cease service as of the last day he performs 

compensated service for an RR or LPE employer. If "Pay For Time Lost" extends 

past the actual day last worked, the applicant is considered to cease service at 

the end of the "Pay For Time Lost."

330.52 Relinquishment of Rights

The relinquishment of rights only affects the benefits under the Railroad 

Retirement Act (RRA). The relinquishment of rights does not bind the railroad 

should the employer choose to provide certain employee benefits (i.e. health 

insurance, an employee buyout) after the employee stops working. 

If an individual cancels a previously submitted relinquishment of rights before it 

becomes effective, no annuities that require the individual's relinquishment of 

rights are payable. However, once effective, the employees cannot revoke the 

relinquishment of rights, even if they offer to refund the amount of the RRA 

annuities that were paid based on the relinquishment of rights. 

330.52.1 Age and Service Cases

Before an age and service employee annuity can be paid under the Railroad 

Retirement Act (RRA), an applicant for an employee age and service annuity 

must relinquish all seniority or other rights he or she may have to return to work 

for any railroad employer.

While a non-disability annuity can begin to accrue when an applicant stops 

working, it cannot be awarded until relinquishment of rights is effected. For 

example, a qualified age and service applicant who stops working on December 

31 but does not relinquish his rights until March 15, is entitled to an annuity from 

January 1. However, payment cannot be vouchered before March 15, the day 

relinquishment of rights is accomplished.

330.52.2 Disability Annuities

A disability annuity can be paid to an employee who has stopped railroad 

employment, but has not relinquished his rights.

If a disability annuitant under Full Retirement Age becomes eligible for a 

supplemental annuity (SUPP ANN), the employee must relinquish rights to 

railroad employment before the SUPP ANN may be paid. A SUP ANN may not 

begin before the 1st day of the 12th month prior to the month the employee 

relinquishes his rights.

Automatic relinquishment of rights in disability cases at Full Retirement Age is 

explained in FOM1 330.54. 
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330.52.3 Spouse/Divorced Spouse Annuities

Before applications for spouse annuities or divorced spouse annuities can be 

paid, the applicants must relinquish all seniority or other rights they may have to 

return to work for any railroad employer. While a spouse annuity or divorced 

spouse annuity can begin to accrue when an applicant stops working, it cannot 

be awarded until relinquishment of rights is effected. 

For example, a qualified spouse applicant who stops working for a railroad on 

December 31, is entitled to a spouse annuity from January 1. However, the 

spouse does not relinquish rights until March 15. Payment cannot be vouchered 

before March 15, the day relinquishment of rights is accomplished.

If a disability annuitant under Full Retirement Age has a spouse eligible for a 

spouse annuity, the employee must relinquish rights to railroad employment 

before the spouse annuity may be paid. The retroactivity of a spouse's annuity is 

not affected by the date the employee relinquishes rights. Therefore, the spouse 

may file an application as soon as she is otherwise eligible for an annuity in order 

to protect her filing date. However, the annuity cannot be paid until the employee 

relinquishes his rights.

In these cases, code the APPLE Summary screen for manual review. Do not 

enter a SPAR rate. Explain the reason for the manual review code in the remarks 

section of the APPLE Summary screen and in an email message to RBD. If a G346 is submitted, Item 8 should be crossed out and initialed by the employee..

330.53 When Relinquishment Of Rights Is Accomplished

An individual's right to return to work for an employer is ended (for the purposes 

of the Railroad Retirement Act) whenever any of the following events occur:

A. An employer reports to the RRB that the individual no longer has the right; 

or

B. The individual or an authorized agent of that individual gives the employer 

an oral or written notice of the individual's wish to give up that right; and:

1. The individual certifies to the RRB that the right has been given up; 

and,

2. The RRB notifies the employer of the individual's certification; and,

3. The employer either confirms the individual's right has been given 

up or fails to reply within 10 days following the day the RRB mailed 

the notice to the employer; or,

C. The employer or the individual or both take an action which clearly and 

positively ends that right; or,
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D. The individual signs a statement that he or she gives up all rights to return 

to work in order to receive a separation allowance or severance pay.

E. An event occurs which under established rules or practices of the 

employer automatically ends the right to return to service; or

F. The RRB gives up that right for the applicant filing up to 3 months in 

advance of the date last worked or disability annuitant, having been 

authorized to do so, as explained in FOM1 330.56); or,

G. The individual never has that right and permanently stops working; or, 

H. The applicant dies. 

330.54 How Relinquishment Of Rights Is Accomplished

330.54.1 Relinquishment of Rights to Railroad Service in Age and Service 

Cases

Before an annuity can be awarded, an employee age and service applicant, a 

spouse applicant or a divorced spouse applicant must certify to the RRB that 

(s)he has relinquished any and all rights to return to railroad service.

The Form AA-1 "Application For Employee Annuity" and Form AA-3 "Application 

For Spouse/Divorced Spouse Annuity" include questions concerning the 

applicant's rights to return to railroad service.

Under advance filing procedures, an age and service employee or spouse 

applicant may file for an annuity up to 3 months before retiring from railroad 

service. After certifying the date on which employment ended or will end on the 

annuity application, the applicant must promptly report any change in the date 

last worked. Otherwise, the annuity beginning date could be incorrect, resulting in 

erroneous payments. Use electronic mail to notify RBD when the applicant 

reports a change. 

Relinquishment of rights is satisfied if the applicant:

A. Indicates on the Form AA-1, Form AA-3 or Form G-346 that he does not 

have seniority or other rights to work for a railroad employer or work for a 

railroad labor organization; or

B. Completes an acceptable Form G-88, a modified Form G-88 in the case of 

a spouse applicant; or

C. Furnishes the required information in a signed statement witnessed by 2 

persons or authenticated by an authorized RRB employee. 
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330.54.2 Relinquishment of Rights to Railroad Service in Disability Cases

Disability annuitants who file a Form AA-1d "Application For Determination of 

Employee Disability," authorize the RRB to automatically relinquish their rights 

either at attainment of Full Retirement Age or before attaining Full Retirement 

Age when: 

1. The disabled annuitant becomes eligible for a SUPP ANN, or,

2. the spouse of the disability annuitant becomes eligible for a spouse 

annuity; or,

3. If the disability annuity is denied, the employee is eligible for a reduced 

age annuity, and the employee indicated on the Application AA-1 that he 

or she would accept the reduced age and service annuity.

In addition, Form G-346, "Employee's Certification," with a revision date of 10-92 

or later, includes the statements from the employees authorizing the RRB to 

relinquish their rights in order to pay the spouse annuities.

Note - Before 5-76, the Form AA-1d "Application For Determination of Employee 

Disability" with a revision date before 5-76 gave the applicant the option of having 

the RRB relinquish his rights at age 65. If the annuitant did not authorize the RRB 

to relinquish his rights at age 65, his annuity payments were suspended at age 

65. We informed the annuitant that we would resume payments when he 

relinquished his rights. When the annuitant later notified us that he had 

relinquished his rights, we furnished the date rights relinquished (DRR) to the 

employer and reinstated payments from the date of suspension. 

330.55 Relinquishment of Rights When An Employee Claims His 

Termination Is Wrong 

The applicant has no rights but is attempting to restore them when:

A. an applicant's employment has been terminated by an employer; and,

B. the applicant disputes the termination action and is prosecuting a claim 

before the National Railroad Adjustment Board for reinstatement and for 

time lost from the effective date of the termination action. 

The following statement must be made over the applicant's signature in the 

remarks sections of the application and the Form G-88: "I do not at this time 

possess any rights to return to the service of an employer. This statement shall 

be without prejudice to my claim that I was wrongfully deprived of such rights on 

(date of termination)." Item 4 on the Form G-88 and item 11 on the Form G-88A.2 

should not be completed.
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The applicant must also sign an "Assignment of Claim" statement to the extent of 

the annuity payments he may receive for any period for which he may 

subsequently be awarded back pay. RBD requires only the original copy of the 

statement in the format listed below. 

330.55.1 Action by the Field Office

The field office will prepare Form RL-40A, Assignment of Claim, for the 

employee’s signature. The form is available on RRAILS. Forward the signed 

statement to the Retirement Benefits Division-Retirement Initial Section (RBDRIS). with the application package.

If the employee requests a copy for himself, or his representative, prepare 

additional copies as needed. 

If the employee does not wish to complete the "Assignment of Claim" statement 

at the time of filing (e.g., he wishes to consult a representative), give the 

employee the "Assignment of Claim" statement, to be returned to your office. 

Indicate on the APPLE Summary screen that the "Assignment of Claim" 

statement will be submitted at a later date. Always code the APPLE Summary 

screen for MANUAL REVIEW.

330.55.2 Action by RBD-RIS Examiner

The RBD-RIS examiner will review Form RL-40A for completeness and forward 

it, along with the Form RL-40 cover letter, to the railroad employer’s highest 

ranking official. Form RL-40 is available on RRAILS. The title of the railroad 

official and address of the employer can be obtained on RRAILS by using the 

railroad employer’s BA number. 

NOTE: No annuity will be paid until the RL-40 A statement has been reviewed by 

the RIS examiner. 

330.56 Annuitant Protests Automatic Relinquishment Of Rights

Certain disabled employees may not wish to relinquish their rights because of 

possible adverse effects on their benefits from the railroad. If an employee does 

not wish to relinquish his rights before he attains full retirement age, he must 

notify the RRB in writing when he files the application. Secure a signed 

statement from the employee that he does not authorize the RRB to relinquish 

his rights before full retirement age. You may use the "Remarks" section of the 

application for this purpose. Code the case for MANUAL REVIEW on the APPLE 

Summary screen. Instruct the employee that he must notify the RRB if he later 

wishes to relinquish his rights before attaining full retirement age. When the 

annuitant later notifies the RRB that he has relinquished his rights, RBD will 

furnish the date rights relinquished (DRR) to the employer and pay the benefits 

that require the relinquishment of rights.
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330.57 Annuitant Wants to Revoke Relinquishment of Rights

If a disability annuitant protests the RRB's automatic relinquishment of rights 

before it becomes effective, no annuities that require the individual's 

relinquishment of rights are payable. 

However, the age and service or disability annuitant cannot revoke the 

relinquishment of rights once relinquishment of rights has become effective, even 

if they offer to refund the amount of the RRA annuities that were paid based on 

the relinquishment of rights. 

330.58 Unacceptable Certifications

A certification of termination of service and relinquishment of rights is not 

acceptable if executed:

A. Before the date on which the applicant claims to have stopped work and 

relinquished rights to return to service; or,

B. Before the date on which the applicant states the employment relationship 

ceased and rights were relinquished to return to service; or,

C. More than 15 days before the ABD. When an employer indicates on a 

Form G-88A.1 listing or G-88A.2 that the DLW or DRR is later than the 

date claimed by the applicant, consider the applicant's certification 

acceptable if it was not completed more than 15 days before the ABD 

determined on the basis of the employer's report. Use the dates furnished 

by the employer for all adjudicative purposes.

If an employee or spouse applicant completes an unacceptable certification, RBD 

will request the RRB field office to obtain a Form G-88 from the applicant 

certifying the revised date RR employment ended and rights were relinquished. 

The field office should advise the applicant when to complete and return the 

Form G-88 to the RRB. (This depends on why the former certification was not 

acceptable.) 

A Form G-88 should not be requested in any case when the age and service 

application is filed more than 3 months before the annuity may begin. RBD will 

deny the claim and advise the applicant to file a new application.

330.60 Notifying Employers In Age And Service Cases

330.60.1 Railroad Employers

A. Action by RRB Field Office - Release Form G-88A.2 if the employee's lag 

railroad service is required for eligibility. 
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B. Action by Headquarters - When the annuity is initially awarded in an age 

and service case, a G-88A.1 listing is sent to the railroad employer 

notifying of the established DLW and relinquishment of rights as explained 

in FOM 1 1720. 

330.60.2 LPE Employers

It is not necessary to notify the LPE employer when the annuitant claims to have 

terminated service with that employer. Accept the annuitant's statement of an 

ending date for these cases.

330.61 Notifying Employers In Disability Cases

330.61.1 Cessation of Service

A. Action by Railroad Retirement Board field office - Release Form G-88A.2 if 

the employee's lag railroad service is required for eligibility. This will notify 

the employer of the date last worked (DLW) in disability cases. 

Generally, the forms should be released to the employer when the 

application package is forwarded to RBD. To expedite processing of the 

Form G-88A.2, you may release the form to the employer immediately if 

the application package will be delayed in the field office. However, do not 

release the G-88A.2 to the railroad before the claimed DLW-RR.

B. Action by Headquarters - When the annuity is initially awarded in a 

disability case, a G-88a.1 listing is sent to the railroad employer notifying 

them of the established DLW and relinquishment of rights, as explained in 

FOM-I-1720. 

330.61.2 Relinquishment of Rights 

A. Before Full Retirement Age - If the disability applicant has not attained Full 

Retirement Age, the employer will not be notified of cessation of service 

and relinquishment of rights unless the railroad has requested to receive 

this information on Form RL-5a. In cases involving the spouse's 

entitlement to an annuity after the disabled employee is on the rolls, RBD 

will release a Form RL-13g.1 to notify the employer of relinquishment of 

rights. 

B. At Full Retirement Age - A Form RL-13g is used to notify a railroad 

employer that the RRB has relinquished an annuitant's rights at Full 

Retirement Age. The release of this form is explained below. 

1. Disability annuity in payment status in month before Full Retirement 

Age attained - The Form RL-13g form is computer-printed and 

released in the month before the annuitant attains Full Retirement 

Age. A Form RL-13g is not printed in cases where the annuitant 
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previously relinquished rights. No manual action is required to 

effect relinquishment of rights. 

2. Disability annuity initially awarded in or after month Full Retirement 

Age attained - The Form RL-13g is computer-printed and released 

in the month following the month of the award. No manual action is

required to effect relinquishment of rights. 

3. Disability annuity in suspense in month before Full Retirement Age 

attained - Each month, tickler referrals are produced for these 

cases for review by RBD unless the employee previously 

relinquished his rights. RBD will manually prepare and release 

Form RL-13g, except if the employee is currently in railroad service.

330.75 Confirmation Of Date Last Worked And Date Of 

Relinquishment Of Rights

In most cases, an applicant's claimed date last worked (DLW) and date of 

relinquishment of rights (DRR) are confirmed by the absence of a notice to the 

contrary from an employer. Failure of an employer to refute the employee's claim 

(as shown on a Form G-88A.1 listing to the employer) in essence confirms the 

DLW and DRR.

In other cases, the applicant's certification that he has ceased service and 

relinquished rights is confirmed by one of the following methods:

A. An employer's statement that the applicant ceased service and 

relinquished rights to return to service; or

B. The employer's certification that the applicant previously stopped working 

and did not have rights to return to service; or

C. Correction of the DLW OR DRR by an employer with a later DLW OR 

DRR date. 

330.80 Discrepancy In RR Employer's And Applicant's Statement 

Of Date Last Worked

330.80.1 Vacation Allowance Involved

Reconciliation of the date last worked (DLW) is usually not required when the 

discrepancy is explained by the fact that the applicant received a vacation 

allowance. In most cases, payment of a vacation allowance after the last day of 

compensated service does not change the employee's DLW for Railroad 

Retirement Act purposes. However, if the vacation period extends beyond 1 

calendar month and it would benefit the employee to have the additional service, 

the vacation allowance can be credited as a service month. A vacation allowance 
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should never be used as service if it will affect the annuity beginning date unless, 

of course, eligibility is involved.

A few employers consider non-agreement (supervisory) employees to be in 

compensated service during the period covered by the vacation allowance. In 

these cases, the employer-employee relationship does not end until the vacation 

period is over, and the annuity cannot begin until the day after the vacation 

period ends. These employers will change the DLW on their Form G-88A.1 

listings to the day the vacation period ends and enter the notation "Employee Not 

Covered By Vacation Agreement" in "Remarks.” See FOM 1 210. 

330.80.2 Vacation Not Involved

RBD will accept the employer's record of the applicant's last day of service 

unless it is obvious from information in file that the record is not correct. When 

the employer's record is obviously incorrect, RBD will ask the RRB Field office 

servicing the area in which the employer is located to inform the employer of the 

discrepancy and ask him to furnish a revised earnings report to the RRB.

330.95 Discrepancy In Applicant's And Employer's Statement Of 

Relinquishment of Rights

330.95.1 Acceptance of Employer's Record

Accept the employer's record of DRR if the date shown on that record is:

A. No earlier than the DLW (the date shown by the employer as the last day 

the applicant was considered an employee); and

B. Not more than 15 days later than the date on which the applicant filed his 

application or completed a Form G-88, provided the applicant has stated 

that he is not working and has not worked for any person, company or 

institution since leaving the service of an employer.

330.95.2 When Reconciliation Is Required

Reconciliation of any discrepancy between the applicant's statement and the 

employer's record of DRR is required when the employer's record may not be 

accepted under the conditions given in FOM1 330.95.1 , or before 12-1-88, when 

the applicant's employment outside the railroad industry might affect the ABD.

RBD will ask the field office to tell the applicant the date the employer reported 

and ask him to recheck his own records. If the applicant wishes to change his 

previous statement, obtain a Form G-88. Tell him also that if he feels the 

employer's report is in error, he must submit a statement from the foreman or 

supervisor for whom he last worked to confirm the DRR.
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330.110 Intent To Retire

Intent to retire rules are applicable only to cases with ABDs before 12-1-88.

330.110.1 Demonstrating Intent to Retire

An intent to retire is demonstrated if before entering any new employment the 

applicant relinquished rights to return to the service of a nonrailroad employer for 

whom (s)he last worked before the earliest or designated ABD. Intent to retire is 

also demonstrated in:

a. Age and Service and Spouse Annuities - When the applicant does not 

work through the earliest possible ABD or, before 12-1-88, did not begin 

any new employment for at least six months after that date.

b. Disability Annuities - When the applicant filed an Application AA-1d.

330.110.2 Applying Intent to Retire Rules (ABD Before 12-1-88)

When nonrailroad employment begins after the earliest possible annuity 

beginning date, consider the annuity beginning date, the employer for whom the 

applicant last worked before that date, the date the applicant relinquished his 

rights to return to the service of that employer and the date the applicant began 

any new employment. In absence of information to the contrary, it is assumed 

that an employee did not retain rights to return to the service of a nonrailroad 

employer after he stopped working for that employer.

Apply these rules to determine the applicant's ABD and LPE employer:

a. When Rights were Relinquished BEFORE the Applicant Began Other 

Employment - The new employment is not LPE.

b. When Rights were NOT Relinquished Before the Applicant Began Other 

Employment

1. In age and service and spouse cases

• If the new employment did not begin within 6 months after 

the earliest possible annuity beginning date, it is not LPE;

• If the new employment began within 6 months after the 

earliest possible ABD, it is LPE. 

2. In disability cases

• If the employment began after the application was filed, it is 

not LPE;
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• If the employment began before the application was filed, it 

is LPE.

Intent to retire rules do not apply if the ABD is after 11-30-88.