Spouse/Divorced

Spouse Annuity

United States of America 

Railroad Retirement Board

Visit our Web site at www.rrb.gov

Form RB-30 (04-16)
INTRODUCTION

This is important information regarding your spouse or divorced spouse annuity under the 

Railroad Retirement Act (RRA). We recommend that you read this booklet before you

file your application. It explains the requirements you must meet to qualify for a spouse or 

divorced spouse annuity.

The employee must file a separate application to qualify for an employee annuity before

you can be paid a spouse or divorced spouse annuity on the employee’s earnings record.

However, in certain cases, a divorced spouse can be paid an annuity if the employee is eligible and not receiving an annuity, and both the employee and divorced spouse are at least age

62 for a full month. Booklet RB-1, Age and Service Employee Annuity, explains the employee application and entitlement requirements. In order to receive a spouse or divorced spouse

annuity, you must file an application and meet the requirements, as explained in Part I and

Part II of this booklet.

Part VII of this booklet explains what will happen after you file your application and

includes information about how and when you will receive your monthly payments.

Railroad Retirement Board (RRB) representatives will be happy to discuss and explain

the information included in this booklet. To locate the nearest office, visit our Web site 

at www.rrb.gov or call 877-772-5772. When contacting the RRB by telephone or mail, 

always provide your RRB claim number, your name, and your daytime telephone number.

Your railroad retirement annuity is affected by certain events that may occur. A description of these events and an explanation of how you should report them are covered in the 

Booklet RB-9, Employee and Spouse Annuities - Events That Must Be Reported. Because

these events can take place any time after you receive your annuity payments, you should 

keep the RB-9 booklet for future reference.

Important Notices

Be sure to read the important notices at the end of this booklet.

Other Booklets of Interest

IB-2 Railroad Retirement and Survivor Benefits

RB-3 Furnishing Evidence to Support Your Claim

G-179 Special Guaranty in Employee and Spouse Annuities

RRB booklets are available on the Railroad Retirement Board’s Web site at www.rrb.gov.
TABLE OF CONTENTS

PART I - APPLYING FOR YOUR ANNUITY

1

1

2

Annuity 3

Chapter 5 Additional Requirements for Annuities Based on 60-119 Months of

Railroad Service with at Least 60 Months of Railroad Service After 1995 3

Chapter 6 Selecting Type of Annuity on Your Application 3

PART II - WHEN YOUR ANNUITY CAN BEGIN

Chapter 7 Stop Railroad Work 4

Chapter 8 File RRA Annuity Application 4

Chapter 9 Earliest Possible Spouse Annuity Beginning Date 5

Chapter 10 Earliest Possible Divorced Spouse Annuity Beginning Date 5

PART III - REDUCTIONS FOR EARLY RETIREMENT

Chapter 11 Basic Formula 6

Chapter 12 Full Retirement Age for Spouse and Divorced Spouse 6

Chapter 13 Spouse Annuity Age Reduction When Employee Has Less Than 360

Months of Railroad Service 6

Chapter 14 Spouse Annuity When Employee Has at Least 360 Months of Railroad

Service 7

Chapter 15 Divorced Spouse Annuity Age Reduction 7

PART IV - DEDUCTIONS FOR EARNINGS

Chapter 16 Self-Employment and Other Nonrailroad Work 7

Chapter 17 Spouse Tier 1 and Divorced Spouse Annuity Work Deductions 8

Chapter 18 Your Last Pre-Retirement Nonrailroad Employer 9

Chapter 19 Spouse Annuity Tier 2 Work Deductions 9

PART V - REDUCTIONS FOR OTHER BENEFITS

Chapter 20 Social Security Benefits 10

Chapter 21 Other Railroad Retirement Annuities 10

Chapter 22 Public Service Pensions 11

PART VI - DEDUCTIONS FOR OTHER FEDERAL PROGRAMS

Chapter 23 Medicare Coverage and You 12

Chapter 24 Federal Income Tax Withholding 14

Chapter 1 Marriage Requirements for Spouse or Divorced Spouse Annuity 

Chapter 2 Age Requirements for Spouse Annuity or Divorced Spouse Annuity 

Chapter 3 Annuity Based on Child-In-Care 

Chapter 4 Additional Requirements You Must Meet to Receive a Divorced Spouse
TABLE OF CONTENTS

PART VII - AFTER YOU APPLY FOR YOUR ANNUITY

Chapter 25 Notice of Decision about Your Application 14

Chapter 26 How Payments Are Made 14

Chapter 27 Receiving Your Payment 15

Chapter 28 Change of Address 15

Chapter 29 When Your Annuity Is Not Payable 16

Chapter 30 When Your Annuity Ends 16

Chapter 31 Records You Should Keep 16

APPENDIXES 

Appendix A Spouse Age Requirements - Employee Has 60 - 359 Months of Railroad Service

Appendix B Spouse Age Requirements - Employee Has At Least 360 Months of Railroad

Service

Appendix C Divorced Spouse Age Requirement

Appendix D Determining Your Work Deductions

IMPORTANT NOTICES

Nondiscrimination on the Basis of Disability

Fraud and Abuse Hot Line

Paperwork Reduction Act and Privacy Act Notices
PART I -

APPLYING FOR YOUR ANNUITY

A spouse annuity under the Railroad Retirement

Act (RRA) is a monthly amount paid to the wife or

husband of a retired railroad employee. A divorced

spouse annuity under the RRA is a monthly

amount paid to a person who is legally divorced

from the employee. Included in this section are the

requirements you must meet to receive a spouse or

divorced spouse annuity.

Shorten the processing time for your annuity

application by submitting proof of your date of

birth and proof of marriage or divorce to your local

Railroad Retirement Board (RRB) office now.

Booklet RB-3, Furnishing Evidence to Support

Your Claim, will explain acceptable evidence for

proof of age and proof of marriage or divorce.

Whenever sending documents to the RRB, always

include your name, social security number, and

daytime telephone number where you can be

reached.

You may file your application up to three

months before your annuity beginning date. We

recommend that you read this booklet and read

booklet RB-3, Furnishing Evidence to Support

Your Claim, before you file your annuity

application.

Chapter 1 - Marriage Requirements for

Spouse or Divorced Spouse Annuity

A. Spouse Annuity - In order to qualify for a

spouse annuity, you must be the legal spouse

of the employee and you must have been

legally married to the railroad employee for

at least one year immediately prior to filing

your spouse annuity application. The oneyear marriage requirement is waived if any of

following conditions exist:

1. you are the natural parent of the railroad

employee’s child; or,

2. you were eligible for a widow(er)’s,

parent’s, or disabled child’s annuity

under the Railroad Retirement Act in the

month before your marriage to the

employee; or,

3. you had met the one-year marriage

requirement for a previous spouse annuity

on the employee’s earnings record before

a divorce and you later remarried that

employee.

B. Divorced Spouse - The marriage requirement

for a divorced spouse annuity is met if your

marriage ended by a final divorce decree and:

1. you were legally married to the railroad

employee for at least 10 consecutive years

immediately preceding the date of your

final divorce decree; and,

2. you are divorced from that railroad

employee; and,

3. you are not currently married to anyone.

(If you remarried after the divorce from

the employee, the later marriage must have

terminated.)

Chapter 2 - Age Requirements for Spouse 

Annuity or Divorced Spouse Annuity

A. Spouse Annuity Age Requirements - The

employee must be currently receiving an

employee annuity and must attain a certain age

in order for you to qualify for a spouse annuity.

If the employee has attained the required age,

you may then be eligible for a spouse

annuity, regardless of your age, if you have

the employee’s Child-in-Care. Child-in-Care

is explained in Chapter 3. Otherwise, your own

age requirement is explained in this chapter

and summarized in the Appendixes.

The age requirement for a spouse annuity

depends on both the employee’s total months

of railroad service and the employee’s Annuity

Beginning Date (ABD). Your Full Retirement

Age (FRA) affects the amount of any age

reduction to your spouse annuity as explained

in Chapter 12 and Chapter 13.

1
1. Employee’s ABD is After December

2001 and Based on 60-119 Months of

Railroad Service with at Least 60 Months

of Railroad Service After 1995 - The

employee must be at least age 62 to qualify

you for a spouse annuity. The employee

must have a Social Security (SS) Act

Insured Status (see Chapter 5) to qualify

you for a Tier I component.

You must have attained age 62 for a full

month.

2. Employee’s ABD is After December 1974

and Based on 120-359 Months of Railroad

Service - The employee must be at least

age 62 to qualify you for a spouse annuity.

You must have attained age 62 for a full

month.

3. Employee’s ABD is After June 1974 and

Based on at Least 360 Months of Railroad

Service - The employee must be at least

age 60 to qualify you for a spouse annuity

beginning January 1, 1975, or later.

You must have attained age 60 for a full

month.

4. Employee’s ABD is Before January 1975 if

the Employee Has Less Than 360 Months

of Railroad Service, or Employee’s ABD

is Before July 1974 if the Employee Has

at Least 360 Months of Railroad Service

- The employee must be at least age 65 to

qualify you for a spouse annuity.

You must have attained age 62 for a full

month.

B. Divorced Spouse Annuity Age Requirements -

If the employee is not receiving an annuity,

the employee must be at least age 62 for a full

month.

If the employee is totally and permanently

disabled with a disability freeze, the employee

must be at least age 62 (disability freeze is

explained in Chapter 5).

2

If the employee is receiving an age and service

annuity or a disability annuity without a

disability freeze, the employee must be at least

age 62 for a full month.

You must have attained age 62 for a full month.

Chapter 3 - Annuity Based on Child-In-Care

A. Spouse Annuity - A spouse may qualify for a

full spouse annuity, based on having a child

of the employee in care. The employee must

have attained age 62 (or age 60 with 30 years

of railroad service) to qualify the spouse for

this annuity. The child must be either:

1. under age 18 or

2. age 18 or older with a permanent disability

that began before the child attained age 22

that makes the child unable to perform any

type of regular employment.

The term Child-in-Care includes the railroad

employee’s unmarried natural child, or

unmarried dependent adopted child, stepchild,

or, under certain conditions, a grandchild

whose parents are deceased or disabled.

A child is in your care if you exercise parental

control over, and are responsible for, the

welfare and care of the child. If the child is

permanently disabled, but mentally competent,

he or she is considered to be in your care if

you perform personal services for that child.

The RRB will make the final determination

regarding the personal services you perform

and whether or not they constitute the child

being in your care.

B. Divorced Spouse Annuity - There is no

provision in the Railroad Retirement Act for

a divorced spouse annuity based on having a

Child-in-Care.
Chapter 4 - Additional Requirements You 

Must Meet to Receive a Divorced Spouse 

Annuity

In addition to the marriage requirements for a

divorced spouse annuity explained in Chapter 1

and the age requirements for a divorced spouse

annuity explained in Chapter 2, the RRA states

that, to qualify for a divorced spouse annuity, the

following conditions must also apply:

1. You cannot be entitled to a benefit from the

Social Security Administration based on

your own earnings (before any reductions

for age, earnings, etc.) that is equal to or

greater than your divorced spouse annuity

(before any reductions for age, earnings,

etc.).

2. You cannot be entitled to another RRA

annuity based on a different claim number

that is equal to or greater than your

divorced spouse annuity.

3. You and the employee must be divorced

for two full years from the date the divorce

became final if the employee is not

currently receiving an annuity.

Your divorced spouse annuity may begin before

the railroad employee’s annuity begins, if the

employee is eligible, the two-year divorce

requirement is met, and both you and the employee

are age 62 for a full month.

Chapter 5 - Additional Requirements for

Annuities Based on 60-119 Months of

Railroad Service with at Least 60 Months 

of Railroad Service After 1995

If the employee annuity is based on 60-119 months

of railroad service with at least 60 months of railroad

service after 1995, the employee must have a Social

Security (SS) Act Insured Status on combined

railroad earnings, creditable military service earnings,

and social security earnings, to qualify you for a

spouse annuity Tier 1 component or for a divorced

spouse annuity. An SS Act Insured Status is based

on Quarters of Coverage (QC). In general, the SS

Act specifies an amount for each calendar year that

will qualify the wage earner for a QC for that year.

If the employee earns that amount (or a multiple of

that amount up to 4 QCs), the employee’s earnings

record will be credited with those QCs.

The employee has an SS Act Insured Status if:

A. Employee Annuity Based on Age - The

employee must have a Fully Insured Status

as de fined in the SS Act, but using combined

railroad earnings, creditable military service

earnings, and social security earnings. The SS

Act QC requirement for a Fully Insured Status

for employees born after 1928 is 40 QC.

B. Employee Annuity Based on Disability - The

employee must have a Disability Freeze (D/F)

as de fined in the SS Act, but using combined

railroad earnings, creditable military service

earnings, and social security earnings. The SS

Act requirements are:

1. The employee must be rated totally and

permanently disabled;

2. the employee must have a Fully Insured

Status. Generally, the QC requirement for

a Fully Insured Status is at least one QC

for each calendar year after the year the

employee attained age 21, through the year

the employee became disabled; and,

3. the employee must have at least 20 QC in a

period of 40 consecutive calendar quarters

(10 years) ending with the quarter of the

disability onset date. This is also referred to

as the 20-in-40 QC test.

Chapter 6 - Selecting Type of Annuity on 

Your Application

When you file your application for a spouse

annuity or divorced spouse annuity, your

application must indicate the type of annuity for

which you are filing.

A. Spouse Annuity - The type of annuity on your

application should be based on whether you are

filing based on your age or based on having a

Child-in-Care.

3
1. Choose Full Age Annuity if you believe

that you qualify for a spouse annuity that

is not reduced for early retirement. You

should also indicate whether or not you

would accept a Reduced Age Annuity

should you be found not eligible for a Full

Age Annuity.

Full Age Annuity means that:

a. you have attained Full Retirement Age

(FRA);

b. the employee is not receiving a 60/30

annuity that is reduced for retirement

before age 62 with an ABD before

January 2002 (see Appendix B at the

end of this booklet); and,

c. you did not previously receive an age

reduced spouse annuity or age reduced

divorced spouse annuity on the same

earnings record.

2. Choose Reduced Age Annuity if you

believe that you do not meet the

requirements for a spouse annuity that is

not reduced for early retirement. If you

previously received a spouse annuity or

divorced spouse annuity based on the same

earnings record that had an age reduction,

choose Reduced Age Annuity.

3. Choose Reduced 60/30 Age Annuity if the

employee is receiving a 60/30 annuity that is

reduced for retirement before age 62 with an

ABD before January 2002 (see Appendix B

at the end of this booklet).

4. Choose Annuity Based on Children if you

want your annuity to be based on having

a child of the employee in your care,

regardless of your age. You should also

indicate whether or not you would accept a

Reduced Age Annuity should you be found

not eligible for a Full Age Annuity based on

having a Child-in-Care.

B. Divorced Spouse Annuity - The type of

annuity depends on your age and whether you

were previously entitled to an annuity on the

same earnings record.

4

1. Choose Full Age Annuity if you meet the

requirements for a divorced spouse annuity

that is not reduced for early retirement.

You should also indicate whether or not

you would accept a Reduced Age Annuity

should you be found not eligible for a Full

Age Annuity.

Full Age Annuity means that:

a. you have attained FRA and

b. you did not receive an age reduced

spouse annuity based on the same

earnings record before your divorce.

2. Choose Reduced Age Annuity if you do

not meet the requirements for a Full Age

Annuity.

3. Choose Divorced Spouse With Previous

Spouse Annuity Age Reduction if you

previously received a spouse annuity based

on the same earnings record that had an age

reduction and that terminated due to your

divorce from the employee.

PART II - WHEN YOUR ANNUITY CAN 

BEGIN

Chapter 7 - Stop Railroad Work

In addition to the requirements in Part I - Applying

for Your Annuity, if you are working for a railroad,

you must stop the railroad work and give up any

rights you have to return to such work.

Also note that, after the annuity is awarded,

payment cannot be made for any month in which

you return to work for a railroad employer.

Chapter 8 - File RRA Annuity Application

You must file an RRA application for a spouse

annuity or divorced spouse annuity to receive railroad

retirementspouse or divorced spouse benefits.

If you were previously entitled to spouse benefits

based on Child-in-Care that terminated when the

child attained age 18, you may need to file another
spouse annuity application. This application is

required to pay spouse benefits based on your age.

Please discuss this with an RRB representative.

When you file an application, you may select the

day you want your annuity to begin. You have

two choices: the earliest date permitted by law, or

a later date designated by you that may be to your

advantage.

Most applicants select the earliest date permitted

by law. This means the RRB will set your annuity

beginning date as the very first day it could legally

begin. If you choose to select a beginning date

yourself, your annuity will begin on that date.

However, the date you choose cannot be before the

earliest date permitted by law.

Note - If you delay filing for benefi ts, you may lose

bene fits for some or all of the period before the

month in which you file.

Chapter 9 - Earliest Possible Spouse

Annuity Beginning Date

The earliest spouse annuity beginning date

permitted by law is the latest of the following:

1. The first day of the month you meet the

marriage requirement.

2. The day after the day you last worked in

the railroad industry.

3. The first day of the first full month you are

age 62 if the employee has less than 360

months of railroad service and you file for

a Reduced Age Annuity.

4. The first day of the first full month you

are age 60 if the employee has at least 360

months of service.

5. The first day of the month in which you are

Full Retirement Age if the employee has

less than 360 months of railroad service

and you file for a Full Age Annuity.

6. The first day of the month in which you

filed your annuity application if your

annuity is reduced for early retirement and

an earlier beginning date would increase

your age reduction.

7. The first full month you have the

employee’s Child-in-Care, regardless of

the dates in Items 3-5 above.

8. The first day of the sixth month prior to

the month in which you filed your annuity

application if your annuity is not reduced

for early retirement or if an earlier

beginning date would not increase an age

reduction.

However, your spouse annuity will not begin

before the railroad employee’s annuity begins

or before the railroad employee meets the age

requirement described in Chapter 2(A) and

Appendixes A-B.

If Items 1-5 above apply, you can file your

application up to three months before the earliest

annuity beginning date permitted by law.

Chapter 10 - Earliest Possible Divorced

Spouse Annuity Beginning Date

The earliest divorced spouse annuity beginning

date permitted by law is the latest of the

following:

1. The first day of the month in which your

decree of absolute divorce becomes final.

2. The day after the day you last worked in

the railroad industry.

3. The first day of the first full month in

which you are age 62 if you file for a

Reduced Age Annuity.

4. The first day of the month in which you are

Full Retirement Age if you file for a Full

Age Annuity.

5. The first day of the month in which two

full years have passed since the date of

the decree of absolute divorce became

final only if the employee is not currently

receiving an annuity.

5
6. The first day of the month in which you

file your annuity application if your RRA

annuity is reduced for early retirement.

7. The first day of the sixth month prior to

the month in which you file your annuity

application if your RRA annuity is not

reduced for early retirement.

However, your divorced spouse annuity will not

begin before the railroad employee meets the age

requirement described in Chapter 2(B).

If Items 1-5 above apply, you can file your application up to three months before the earliest annuity

beginning date permitted by law.

PART III - REDUCTIONS FOR EARLY 

RETIREMENT

Chapter 11 - Basic Formula

Railroad retirement annuities are calculated under

the following two-tier formula:

A. Tier 1 Component - The first tier is based

on railroad retirement credits and any social

security credits an employee has acquired.

If the employee has at least 120 months of

railroad service, or 60-119 months of railroad

service with at least 60 months of railroad

service after 1995, the amount of the first tier

is calculated using reductions to the social

security formula.

Exception: If the employee has at least 360

months of railroad service or is disabled and

has at least 120 months of railroad service,

the amount of the first tier is calculated using

social security formulas and railroad retirement

age and service requirements.

B. Tier 2 Component - The second tier is based

on railroad retirement credits only, and may be

compared to the retirement benefits sometimes

paid to workers in other industries in addition

to social security benefits. Reductions are

based on the Railroad Retirement Act.

6

Chapter 12 - Full Retirement Age for

Spouse and Divorced Spouse

The term Full Retirement Age (FRA) means the

age at which the spouse of an employee with less

than 360 months of railroad service or a divorced

spouse can receive a full annuity (not reduced for

early retirement). FRA for persons who were born

before January 2, 1938, is age 65. The FRA for

persons born after January 1, 1938, will gradually

increase over a 20-year period to age 67, as

illustrated in the following chart.

DETERMINING YOUR FULL RETIREMENT AGE

If your year of birth is: Then your FRA

is:

Before 1-2-1938 65

1-2-1938 thru 1-1-1939 65 and 2 months

1-2-1939 thru 1-1-1940 65 and 4 months

1-2-1940 thru 1-1-1941 65 and 6 months

1-2-1941 thru 1-1-1942 65 and 8 months

1-2-1942 thru 1-1-1943 65 and 10 months

1-2-1943 thru 1-1-1955 66

1-2-1955 thru 1-1-1956 66 and 2 months

1-2-1956 thru 1-1-1957 66 and 4 months

1-2-1957 thru 1-1-1958 66 and 6 months

1-2-1958 thru 1-1-1959 66 and 8 months

1-2-1959 thru 1-1-1960 66 and 10 months

1-2-1960 and later 67

(FRA also affects Tier 2 component work

deductions, for nonrailroad earnings, regardless

of the number of the employee’s years of railroad

service, as described in Chapter 17.)

Chapter 13 - Spouse Annuity Age

Reduction When Employee Has Less

Than 360 Months of Railroad Service

A. Tier 1 Component Age Reduction - Your

spouse Tier 1 component age reduction

depends on the employee’s total years of

railroad service.

1. Employee Has 60-119 Months of Railroad

Service with at Least 60 Months of Railroad

Service After 1995 - Your Tier 1 is reduced

by 1/144 for the first 36 months you are under

Full Retirement Age (FRA) and by 1/240 for

each additional month you are under FRA on
your RRA Annuity Beginning Date (ABD)

or, if earlier, your social security bene fit

date of entitlement.

2. Employee Has 120-359 Months of Railroad

Service - Your Tier 1 is reduced by 1/144

for the first 36 months you are under FRA

and by 1/240 for each additional month

you are under FRA on your ABD.

B. Tier 2 Component Age Reduction - Your

spouse Tier 2 component age reduction

depends on whether or not the employee had

railroad service before August 12, 1983.

1. Employee Does Not Have Railroad Service

Before August 12, 1983 - Your Tier 2 is

reduced by 1/144 for the first 36 months

you are under FRA and by 1/240 for each

additional month you are under FRA on

your ABD.

2. Employee Has Some Railroad Service

Before August 12, 1983 - Your Tier 2 is

reduced by 1/144 for each month you are

under age 65 on your ABD.

Chapter 14 - Spouse Annuity When

Employee Has at Least 360 Months of

Railroad Service

Refer to Appendix B at the end of this booklet to

see if an age reduction applies to your spouse Tier

1 component.

Your spouse Tier 2 component will not have an

age reduction.

Chapter 15 - Divorced Spouse Annuity

Age Reduction

A divorced spouse annuity is limited to a Tier 1

component only. Regardless of the employee’s

total years of railroad service, your annuity is

reduced by 1/144 for the first 36 months you are

under Full Retirement Age (FRA) and by 1/240

for each additional month you are under FRA on

your Annuity Beginning Date. However, if you

were entitled to a spouse annuity before your final

divorce from the employee, any previous spouse

annuity age reduction is applied to your divorced

spouse annuity.

PART IV - DEDUCTIONS FOR EARNINGS

A spouse annuity is not payable for any month

in which you are or the employee is in railroad

service. In addition, nonrailroad earnings after

your Annuity Beginning Date can have an effect on

your annuity computation as explained in Chapters

16-19.

A divorced spouse annuity is not payable for any

month in which you are in railroad service.

Chapter 16 - Self-Employment and Other

Nonrailroad Work

Earnings from nonrailroad employment, including

self-employment, after your annuity beginning date

may cause work deductions. Nonrailroad work is any

job that is not in the railroad industry. This includes

work for a Canadian railroad which is not covered

under the Railroad Retirement Act and work as an

elected or appointed public official.

If you are claiming self-employment, the RRB

determines whether or not you are performing

“substantial services” as an independent

contractor. The payment of self-employment taxes

may be evidence of an independent contractor

status, but is not conclusive. If you are working for

an incorporated business that you own, the RRB

does not consider that work self-employment. If

you are self-employed as a consultant, the RRB

considers how your self-employment compares

to the work you did for your former railroad or

nonrailroad employer before you applied for your

annuity. You should complete and return Form

AA-4, Self-Employment and Substantial Service

Questionnaire, to provide the RRB with the

necessary information to make that determination.

For more information about self-employment,

see Form G-177L, General Information about

Continuing in or Returning to Nonrailroad

Employment after Retirement under the Railroad

Retirement Act.

7
Chapter 17 - Spouse Tier 1 and Divorced 

Spouse Annuity Work Deductions

If both you and the employee are Full Retirement

Age (FRA) (see Chapter 14) or older on your

annuity beginning date, you may skip to Chapter

18. You are not affected by work deductions to

your spouse annuity Tier 1 component or divorced

spouse annuity.

If either you are or the employee is under FRA,

earnings from any nonrailroad employment

(including self-employment) over the Annual

Earnings Exempt Amount may cause work deductions to your spouse annuity Tier 1 component or

divorced spouse annuity.

A. Definition of Annual Earnings Exempt

Amount - The term Annual Earnings Exempt

Amount means the amount of money you or

the employee can earn in a year without losing

part of your annuity. There are separate Annual

Earnings Exempt Amounts for persons under

FRA and for the year in which the person

attains FRA. Refer to Appendix D at the end

of this booklet and to Form G-77a, How Work

Affects Your Railroad Retirement Benefi ts, for

the Annual Earnings Exempt Amounts to use

when completing the earnings items on your

annuity application.

B. Defi nition of Earnings for Work Deductions -

In general, earnings restrictions apply to gross

earnings from employment and net earnings

from self-employment. Gross earnings are all

salaries, commissions, bonuses, retroactive

wage increases, or any allowances for room or

board. If these earnings are from an employer

covered under the Social Security Act, the

amount of the gross earnings is equal to the

amount reported for social security tax under

the Federal Insurance Contributions Act.

Net earnings from self-employment equal the

amount of gross income minus expenses that

were reported for social security tax under

the Self-Employment Contributions Act. Add

your earnings from employment and selfemployment together to determine the total

earnings for the year for the purpose of Tier 1

work deductions.

8

Do not include as earnings any money that you

received for any reason other than work, such

as interest from savings, income investments,

gifts, inheritances, pensions or other retirement

benefi ts.

When employees have earnings over the

Annual Earnings Exempt Amount for their age

group, the excess is charged against their

annuity and the annuities of all others entitled

on their earnings record. An exception applies

for a divorced spouse who has been divorced

from the employee for at least two years. The

employee’s earnings will not cause work

deductions to the divorced spouse annuity

effective from the second anniversary of the

divorce. If the employee was receiving an

annuity prior to the divorce, none of the

divorced spouse’s annuity will be withheld

based on the employee’s earnings.

C. Exception for First Year of Entitlement - In

the year your annuity begins, deductions for

your own earnings are based on your earnings

for the entire year, not just the earnings after

you retire. However, a special rule may be used

to apply work deductions in the first year after

your annuity begins in which you have a nonwork month. For many people, this is the year

their annuity begins.

A Non-Work Month is a month in which you

earn less than the Monthly Earnings Exempt

Amount for your age (the Annual Earnings

Exempt Amount for your age divided by

twelve) or, if self-employed, render no

substantial services. (The RRB uses Form

AA-4, Self-Employment and Substantial

Service Questionnaire, to determine months in

which you rendered no substantial services.)

1. Special Rule Applies - In the year the

special rule is applied, no Tier 1 work

deductions for your own earnings are

applied to any Non-Work Month. If you

have high earnings before your annuity

begins but do not earn more than the

Monthly Earnings Exempt Amount in any

month after your annuity begins, Tier 1

deductions for your own earnings will not

be required.
2. Special Rule Does Not Apply - If you do

earn more than the Monthly Earnings

Exempt Amount in one or more months

after your annuity begins, deductions are

assessed to those months up to the amount

required based on your total earnings for

the year. Also, after the first year in which

you have a Non-Work Month, this monthly

test does not apply. If your earnings are

high enough, deductions will be assessed to

your annuity for the entire year, even if you

only work part of the year.

D. Exception for Social Security Benefit

Entitlement - No earnings deductions are made

by the RRB in your spouse annuity Tier 1

component or divorced spouse annuity if you

are receiving social security bene fits. Earnings

deductions may be made by the Social Security

Administration in your socialsecurity benefit.

Chapter 18 - Your Last Pre-Retirement

Nonrailroad Employer

A. Definition - Your Last Pre-Retirement

Nonrailroad Employer (LPE) is de fined as any

nonrailroad individual, company, or institution

for whom you are working on the date your

spouse annuity begins or for whom you

stopped working in order to receive an annuity.

Even work for which you are paid minimal

earnings can be LPE. A few exceptions for

types of nonrailroad work are listed in Section

B of this chapter.

The nonrailroad employer is always your LPE

if you are working in nonrailroad employment

on the date your spouse annuity begins or, if

you have stopped working, you still hold rights

to return to service of the nonrailroad employer

on the date your spouse annuity begins.

The nonrailroad employer is presumed to be

your LPE if you stopped working within the

six months preceding your annuity beginning

date. When you were working for two or more

persons, companies, or institutions within the

six months preceding your annuity beginning

date, all such employers are presumed to be

your LPE.

B. Work That is not Considered Last PreRetirement Nonrailroad Employment - Some

types of nonrailroad work are not considered

LPE no matter when they are done. The

following types of nonrailroad work are not

LPE:

1. military service;

2. mail handling under contract for the U.S.

Post Office;

3. jury duty;

4. employment for which you are reimbursed

only for your expenses;

5. certain seasonal employment where you do

not have rights to return to the employment

(such as working in a department store

during the Christmas season);

6. work as a member (owner) of a Limited

Liability Corporation; or,

7. self-employment as defined under the

Railroad Retirement Act.

Also note that any nonrailroad employment

after the date your spouse annuity begins, for

an employer that you never worked for before

the date your spouse annuity begins, is not LPE

and does not affect your Tier 2 component. It

can, however, cause Tier 1 work deductions as

explained in Chapter 17.

Chapter 19 - Spouse Annuity Tier 2 Work 

Deductions

Employee annuitants must report earnings from

their own Last Pre-Retirement Nonrailroad

Employer (LPE). They are charged work

deductions against their Tier 2 components and

their supplemental annuities, if any, and the Tier

2 components of spouses entitled on their earnings

records. The term LPE is explained in Chapter 18.

Also, if you are applying for a spouse annuity,

you must report your own earnings from LPE

in or after the month your spouse annuity

begins. Your LPE earnings will reduce your Tier

2 component. The reduction is $1 for each $2

earned (subject to a maximum reduction of 50%

of the Tier 2). The reduction to Tier 2 occurs at

any age, even after Full Retirement Age (which is

explained in Chapter 12).
9
Work deductions for LPE apply even if the

employee has 360 or more months of railroad

service. There is no Annual Earnings Exempt

Amount or Monthly Earnings Exempt Amount for

the first year of entitlement for LPE work

deductions. The LPE work deductions apply no

matter how much money you earn in LPE.

Earnings from self-employment or other

nonrailroad employment are not added to your

LPE earnings when computing Tier 2 component

work deductions.

PART V - REDUCTIONS FOR OTHER 

BENEFITS

Chapter 20 - Social Security Benefi ts

If you are entitled to Social Security (SS) benefits

based on any wage record, your spouse annuity

Tier 1 component or your divorced spouse annuity

will be offset for those SS benefits (before any

withholding under the SS Act for your earnings

over the Annual Earnings Exempt Amount). This is

why your SS benefits may be certified to the RRB

for payment. If you have already filed for your SS

bene fits, it is important to include the SS bene fit

information on your annuity application. This will

help to prevent an overpayment of your annuity.

A. Annuity Based on at Least 120 Months of

Railroad Service - Your railroad retirement

application may be used to protect your filing

date for SS bene fits if you have not yet filed

at the Social Security Administration (SSA)

and will be entitled to the SS bene fits within

three months. This means the date you file your

railroad retirement application can be used as

the date you file for SS benefits. If you want

to use your railroad retirement application to

protect your filing date, the RRB representative

will prepare Form RR-8, Notice of Protection

of Filing Date for Social Security Benefi ts, and

send a copy to your local SSA office. The SSA

office will contact you to secure an application

forSSbenefi ts.

Your railroad retirement application may protect

your filing date, but it is not an application for

10

SS benefits. You must file a separate application

forthose benefits at SSA.

In many cases, filing for SS bene fits will not

affect your total bene fit rate, because of the

deduction in your annuity. It is usually not to

your advantage to apply for bene fits at both

agencies. It is a good idea to discuss this matter

with an RRB representative before deciding to

file for SS bene fits. Contact your local RRB

office for information about your situation

before filing at SSA.

B. Annuity Based on 60-119 Months of Railroad

Service With at Least 60 Months of Railroad

Service After 1995 - Your railroad retirement

application is also deemed to be an application

for any SS benefits that you may be entitled to

on the employee’s earnings record or your own

earnings record.

Chapter 21 - Other Railroad Retirement

Annuities

If you are entitled to more than one Railroad

Retirement Act (RRA) annuity, the other RRA

annuity can have an effect on your spouse or

divorced spouse annuity.

A. Spouse Annuity - If you are entitled to both

an RRA employee annuity based on your own

earnings record, and an RRA spouse annuity

based on a different earnings record, the

reduction to your RRA spouse annuity depends

on whether or not there is railroad service

before January 1, 1975, on either earnings

record.

1. If either earnings record has railroad service

before January 1, 1975, your RRA spouse

annuity Tier 1 is reduced by your own RRA

employee annuity Tier 1. The reduction in

your RRA spouse annuity Tier 1 may be

restored to your RRA spouse annuity Tier 2.

2. If neither earnings record has railroad

service before January 1, 1975, your RRA

spouse annuity Tier 1 and Tier 2 are reduced

by your own RRA employee annuity Tier 1

and Tier 2. The reduction is not restored to

your RRA spouse annuity Tier 2.
B. Divorced Spouse Annuity - If you are entitled

to both an RRA employee annuity based

on your own earnings record and an RRA

divorced spouse annuity based on a different

earnings record, your RRA divorced spouse

annuity is reduced by your RRA employee

annuity.

C. Survivor Annuity - If you are entitled to both

an RRA spouse/divorced spouse annuity and

an RRA survivor annuity based on different

earnings records, only the higher of your RRA

spouse/divorced spouse annuity or your RRA

survivor annuity is payable unless you elect to

receive the smaller benefit.

Chapter 22 - Public Service Pensions

A. General - Any Public Service Pension

(PSP) payable to you may have an effect on

the amount of your spouse annuity Tier 1

component or your divorced spouse annuity.

A PSP is retirement pay you receive for public

service employment. This may either be

monthly payments or a lump-sum payment. It

may be administered by a government agency

or a private insurance company.

If you are currently entitled to, or will be

entitled to, a PSP (or lump-sum payment that

is more than just a refund of your own

contribution to the pension fund), there may be

an offset in your annuity.

Public service means service performed for the

Federal Government of the United States, a

State government, or any political subdivision

of a State, such as a city, county, town,

township, village, school or sanitation district.

The de finition of State includes the 50 States,

the District of Columbia, the Commonwealth

of Puerto Rico, the Virgin Islands, Guam, and

American Samoa.

B. Exceptions to PSP Offset - If you believe that

you qualify for an exception from the PSP

offset, contact an RRB offi ce. In general, the

PSP offset will not apply to your Tier 1 if your:

1. public service employer was an interstate

instrumentality, i.e., rare cases in which

two or more States are organized as a

corporation to perform a governmental

function (they are not considered public

service employers for reduction purposes);

or,

2. public service employer was a government

of a foreign country (such as Canada); or,

3. government pension payments are social

security, railroad retirement, veterans’

affairs, military service, worker’s

compensation or black lung benefits.

(However, social security benefits will

cause a reduction to Tier 1 as explained

in Chapter 20 and railroad retirement

benefits will cause a reduction as

explained in Chapter 21); or,

4. pension payments are based on the

earnings of another person; or,

5. Federal employment was covered under the

Federal Employees Retirement System and

FICA taxes were deducted from the last 60

months of your Federal employment. (Note

that a person covered under the Federal

Civil Service Retirement System who has

a payroll deduction for Medicare (Hospital

Insurance) only tax, does not qualify for

exemption from the PSP offset); or,

6. state or local government employment was

covered under the Social Security Act and:

a. Federal Insurance Compensation Act

(FICA)taxeswerebeingdeductedon your

lastdayofemployment,andeitheryoufiled

for your spouse annuity before April 2004

oryourlastdayofstateorlocalgovernment

employment was before July 1, 2004; or,

b. FICA taxes were deducted from the last

60 consecutive months of your

employment and you file for your spouse

annuity after March 2004 and your last

day of state or local government

employment is after June 2004.

11
Note: If your last day of state or local

government employment is before March

2, 2009, there is a provision for reducing the

requirement of FICA taxes deducted for 60

consecutive months by giving you credit for

months before March 2004 for which you

paid FICA taxes.

PART VI - DEDUCTIONS FOR OTHER 

FEDERAL PROGRAMS

Chapter 23 - Medicare Coverage and You

A. General Information About Medicare -

Medicare is a Federal health insurance

program, administered by the Centers for

Medicare & Medicaid Services (CMS), for

people who are age 65 or older, who are totally

and permanently disabled, or who have

permanent kidney failure. One part of Medicare

is Hospital Insurance (also known as Part A)

and the other part is Medical Insurance (also

known as Part B). Medicare also provides

prescription drug coverage (Part D) on a

voluntary basis.

If you are eligible for Medicare because of

permanent kidney failure (End Stage Renal

Disease), you must call or visit your local

Social Security Administration (SSA) office

or call SSA at 1-800-772-1213 to enroll in

Medicare Part A and Part B. For all other

Medicare eligibility, the RRB can help you

enroll in Medicare Part A and Part B.

1. Hospital Insurance (Part A) can help pay

for four kinds of care:

a. inpatient hospital care;

b. inpatient care in a skilled nursing facility

following a hospital stay;

c. care in your home by a home health

agency; and,

d. hospice care.

As soon as you are determined to be eligible

for Medicare, you will automatically be

enrolled for Hospital Insurance (Part A).

You do not pay a monthly premium for your

Hospital Insurance (Part A).

12

2. Medical Insurance (Part B) can help

pay for the following additional kinds of

medically necessary care:

a. doctors’ services;

b. outpatient hospital services; and,

c. a number of other medical services and

supplies that are not covered by

Hospital Insurance (Part A).

B. Medical Insurance (Part B) at Age 65 or Older -

Enrollment for Medical Insurance (Part B)

depends on your age when you file your spouse

or divorced spouse annuity application.

1. If you are under age 64 years and 5 months

when you file your annuity application, you

will be automatically enrolled in Medical

Insurance (Part B) at age 65, unless you

decline this coverage.

2. If you are at least age 64 years and

5 months when you file your annuity

application, you can use your annuity

application to enroll for Medical

Insurance (Part B).

If you want Medical Insurance (Part B) at age

65, you must pay a premium for each month

you have this insurance. If you receive an

annuity, the premium will usually be deducted

from your monthly annuity rate.

If you do not want Medical Insurance (Part B)

at age 65, and then later decide that you do want

to sign up, your protection may be delayed and

your premiums may be more expensive.

If, at any time, you wish to cancel the election

that you make on your annuity application, you

must contact the nearest office of the RRB.

C. Special Enrollment Period - You may

delay enrolling in Medical Insurance (Part

B) coverage without penalty if you are

covered under a Group Health Plan (GHP)

at age 65. The GHP must be based on your

own employment or the employee’s

employment. You may enroll in Medical

Insurance (Part B) at any time while
you are covered under the GHP or you can

enroll during a Special Enrollment Period

(SEP). Your SEP begins when the employment

on which the GHP is based ends, or the first

month you are no longer covered under the

GHP, whichever comes first. The SEP lasts for

eight months.

The beginning date of your Medical Insurance

(Part B) coverage depends on the status of your

GHP coverage when you file for the Medical

Insurance (Part B).

1. If you file for Medical Insurance (Part B)

during any month in which you are enrolled in

a GHP, or in the first full month of your SEP,

you can choose the effective date of your

Medical Insurance (Part B). This effective

date can be the first day of the month you file

or the first day of any of the following three

months afterthe month of filing.

Example 1 - If your GHP coverage based on

current employment has not ended and you

file for Medical Insurance (Part B) in May,

you can choose May 1, June 1, July 1, or

August 1 for your Medical Insurance (Part B)

effective date.

Example 2 - If your GHP coverage based

on current employment ends on March 19,

and you file for Medical Insurance (Part B),

the following applies:

a. If you file anytime after March 19, but

before April 1, you can choose the

effective date of March 1, April 1,

May 1, or June 1 for your Medical

Insurance (Part B).

b. If you file anytime in April, you can

choose the effective date of April 1,

May 1, June 1, or July 1 for your 

Medical Insurance (Part B).

2. If you file for Medical Insurance (Part

B) during the other seven months of your

SEP, your Medical Insurance (Part B) will

begin the first day of the month after the

month you file. The beginning date can be

no later than the ninth month after the start

of your SEP.

Example - If your GHP coverage based

on current employment ends on March 19,

and you file for Medical Insurance (Part B)

anytime during the period May 1 through

November 30, your Medical Insurance (Part

B) will begin the month after the month in

which you file your annuity application.

If you are already enrolled in Medical

Insurance (Part B) and are paying higher

premiums due to late enrollment, and you had

GHP coverage at age 65, you may use your

annuity application to request a review of the

Medical Insurance (Part B) premium rate you

are paying.

D. Prescription Drugs - Medicare offers

optional prescription drug coverage (Part D)

through Medicare prescription drug plans

and other health plan options. To enroll in a

Medicare prescription drug plan, you must

have Medicare Part A and/or Part B. You will

generally pay a monthly premium, an annual

deductible, and a share of the cost of each

prescription.

When a person first becomes eligible for

Medicare, they can enroll in a Medicare

prescription drug plan during the period that

starts three months before the month their

Medicare coverage starts and ends three

months after that month. If you do not join a

drug plan when you are first eligible, you may

have to pay a higher premium if you join later.

E. Early Medicare Based on Disability - The

RRA does not provide a spouse annuity or

divorced spouse annuity based on disability.

If you are totally disabled for all employment,

you may be covered by early Medicare before

age 65 on your own earnings record. If you

have at least 120 months of railroad service,

or 60-119 months of railroad service with at

least 60 months of railroad service after 1995,

refer to Booklet RB-1D, Employee Disability

Bene fi ts, for an explanation of the disability

requirements. Otherwise, you should contact

13
SSA to file for early Medicare on your own

earnings record.

F. More Information About Medicare - You may

find answers to your questions by contacting the

nearest RRB office; going to www.medicare.gov;

or calling 1-800-MEDICARE (1-800-633-4227).

Chapter 24 - Federal Income Tax

Withholding

Withholding for Federal Income Tax may occur,

either based on your election fi led on IRS Form

W-4V, Voluntary Withholding Request, and/or

Form RRB W-4P, Withholding Election Form, or,

if you do not fi le Form RRB W-4P, based on a

status of “Married with three dependents.”

PART VII - AFTER YOU APPLY FOR

YOUR ANNUITY

The chapters in this part of the booklet explain

what the Railroad Retirement Board does after you

file your annuity application. Included is important

information about how soon you can expect a

decision on your application.

Chapter 25 - Notice of Decision about

Your Application

When you are ready to retire, contact an RRB office

to file your spouse annuity or divorced spouse

annuity application. Our goal is to process your

application as quickly as possible. Claims for some

benefits may take longer to handle than others

if they are more complex, or if we have to get

information from other people or organizations. If

this happens, we will give you an explanation and

an estimate of the time required to make a decision.

Sometimes we will not be able to make a decision

on your application for benefits without some

additional information from you. If so, we will

contact you by telephone or mail and ask you to

send us the required forms, proofs, or statements.

If you do not receive a notice that additional

information is needed, you should receive the

decision on your annuity application as follows:

A. Advance Filing Cases - When you file up

to three months before the earliest date your

annuity can begin (see Chapters 9 and 10),

you should receive your annuity award letter

and first payment within 35 days of the date

your annuity can begin. However, note that no

payment is due until the first day of the month

after the first month of annuity entitlement, as

explained in Chapter 26.

B. Other Than Advance Filing Cases - If you

do not file your application in advance of the

earliest date on which your annuity can begin,

you should receive your annuity award letter

and first payment within 65 days from the date

you file your application.

C. Annuity Denial - If you cannot be paid an

annuity, the RRB will send you a decision

within 35 days of the beginning date you

requested, if you filed in advance, or within

65 days of the date you filed, if you did not

file in advance, explaining why you cannot be

paid and what you can do if you disagree with

the reason you cannot be paid. If you think we

made the wrong decision about your bene fits,

you have the right to ask for a review and to

appeal within the required time limit shown in

the denial letter.

Chapter 26 - How Payments Are Made

The first payment you receive from the RRB will

be separate from your annuity award letter.

Annuities are payable at the beginning of the month

following the month for which the annuity accrued.

The payment that you receive at the beginning

of the month actually represents the annuity that

accrued for the previous month.

A. Advance Filing Cases - When you file up to

three months before the earliest date your

annuity can begin (see Chapters 9 and 10), no

payment is due until the first day of the month

after the first month of annuity entitlement.

14
B. Other Than Advance Filing Cases - If you

are not filing in advance of your annuity

beginning date, the initial payment may be a

partial payment, with an estimated monthly

rate, representing payment due through the end

of the preceding month. You will continue to

receive this partial amount until your final rate

can be determined and awarded. Once your

final rate has been certified, you will receive

any increase due from your annuity beginning

date. You may receive this payment at any

time during the month.

Remember: The payment that you receive

after your initial payment will be made once

a month on the first day of the month. If the

first day of the month falls on a Sunday or

a holiday, the payment will be received on

the next business day. The payment that you

receive at the beginning of each month

actually represents the annuity that accrued for

the previous month.

Chapter 27 - Receiving Your Payment

All applicants filing for RRB benefits must choose

to receive their annuity payments by Direct

Deposit to their financial institution or by the

Direct Express® Debit MasterCard®.

Even though your payments are paid electronically

be sure to keep your home address on our

records current. See Chapter 28 for additional

information.

A. Direct Deposit

Under the RRB’s Direct Deposit program,

your monthly annuity payment will be

deposited directly into the bank, credit union,

or financial institution account that you

indicate on your annuity application. You

will find that this is both safe and convenient.

If you decline direct deposit, you can still

change your mind at a later date. Telephone or

visit an RRB office. Have one of your

personal checks available because it contains

the information needed to start direct deposit.

Or, you may take one of your annuity checks

to your financial institution and ask them to

complete an automated Quick$tart enrollment or

a Form SF-1199A, Authorization for Deposit of

Federal Recurring Benefi ts. Your financial

institution will have this form on hand. Your

financial institution will submit your enrollment

to the RRB. Shortly after the RRB receives

your direct deposit information, your monthly

annuity payment will start going directly to your

savings or checking account.

If you later change your account or financial

institution, follow the steps indicated above for

direct deposit to your new account. Keep your

old account open until the direct deposit of

payments to your new account begins.

B. Direct Express® Debit MasterCard®

The Direct Express® Debit MasterCard® is a

prepaid Debit MasterCard® you can use to get

your monthly annuity payment. You do not need

an account at a financial institution to sign up.

Your monthly annuity payment will

automatically be deposited directly to your card

account. You can use your card to make

purchases, pay bills, or get cash. There is no

sign-up fee or monthly fees, and most services

are free. After your annuity has been approved,

you will receive in the mail a Direct Express®

Debit MasterCard® and information package

explaining the services available.

Chapter 28 - Change of Address

Notify the nearest RRB offi ce immediately if you

change your address, even when your monthly

annuity payments are going directly to your

savings or checking account. All correspondence

from the RRB is sent to your home mailing

address on record. This mailing address is used

to send any material other than your payments to

you (such as notices of cost-of-living increases,

Medicare information, new Annual Earnings

Exempt Amounts, and tax statements). If you do

not report your change of address, the RRB cannot

be responsible for any important information that

you do not receive.

15
A notice of change of address must always include:

• your RRB claim number;

• your name;

• your new address;

• your old address;

• the date you will start receiving mail at the new

address; and

• a statement that your notice of change of

address applies for both you and the employee

or applies to you alone.

Chapter 29 - When Your Annuity Is Not

Payable

A. Spouse Annuity - A spouse annuity is not

payable for any month in which:

1. the employee’s annuity is not payable;

2. you work for a railroad employer;

3. neither you nor the employee began

railroad service before 1975 and you

become entitled to your own RRA

employee annuity that exceeds the amount

of the spouse annuity; or,

4. you become entitled to an RRA survivor

annuity on a different RRB earnings record

that exceeds the spouse annuity rate.

B. Divorced Spouse Annuity - A divorced spouse

annuity is not payable for any month in which:

1. you work for a railroad employer, or

2. you become entitled to an RRA annuity

based on your own earnings record that

exceeds your RRA divorced spouse

annuity rate.

Chapter 30 - When Your Annuity Ends

A. Spouse Annuity - A spouse annuity ends the

month before the month in which:

1. you die;

2. the employee dies (a widow(er)’s annuity

may become payable at this time);

3. the employee’s entitlement to an employee

annuity terminates due to recovery from

disability;

4. your marriage to the employee ends by

absolute divorce (a divorced spouse

annuity may become payable at this time);

5. your marriage to the employee is dissolved

by annulment; or,

6. the child qualifying you for an annuity is

no longer in your care or attains age 18

or recovers from disability. Your spouse

annuity will end unless you are old enough

to receive a spouse annuity based on age.

B. Divorced Spouse Annuity - A divorced

spouse annuity ends the month before the

month in which:

1. you die;

2. the employee dies (a surviving divorced

spouse annuity may become payable at

this time);

3. the employee’s entitlement to an

employee annuity terminates due to

recovery from disability if you have not

been divorced for two full years;

4. you marry;

5. you become entitled to social security

bene fi ts on your own earnings record that

are greater than the RRA divorced spouse

gross annuity; or

6. you become entitled to an RRA survivor

annuity based on another claim number

that exceeds the amount of the RRA

divorced spouse annuity.

Chapter 31 - Records You Should Keep

We recommend that you keep this booklet even

after you file your annuity application. It contains

important information concerning your entitlement

to railroad retirement benefits. You should also keep

your annuity award notice or denial notice.

Also keep:

• notes from the RRB representatives who helped

you file your annuity application. The notes

should detail any special aspects of your claim

(such as why a certain employer was not your

LPE).

• copy of the AA-3, Receipt for Your Claim;

• copy of Federal income tax forms (Form RRB

W-4P, Withholding Election Form, and IRS Form

W-4V, Voluntary Withholding Request); and

• Booklet RB-9. Employee and Spouse Annuities -

Events That Must Be Reported, to help comply with

theRRB’sreporting requirements.
16
APPENDIXES

Your Full Retirement Age (FRA) is explained in Chapter 12 of this booklet. Use Appendixes

A-C to determine the age requirement for yourspouse annuity or divorced spouse annuity and to determine if an age reduction would apply.

Appendix A

SPOUSE AGE REQUIREMENTS

EMPLOYEE HAS 60 - 359 MONTHS OF RAILROAD SERVICE

If the employee retired with an 

annuity beginning date:

and the employee 

has attained:

your spouse annuity can begin 

the fi rst full month you are

age 62.

Your Tier 1 will have an age 

reduction if you retire before 

attaining:

Your Tier 2 will have 

an age reduction if 

you retire before 

attaining:

before 1975 based on at 

least 120 months of 

railroad service,

age 65, your Full Retirement Age

(FRA).

age 65.

in 1975, or later, based on 

at least 120 months

of railroad service, including 

some railroad service

before August 12, 1983,

age 62, your FRA. age 65.

in 1975, or later, based on 

at least 120 months of 

railroad service and no 

railroad service before 

August 12, 1983,

age 62, your FRA. your FRA.

of January 2002 or later, 

based on 60-119 months of 

railroad service with at 

least 60 months of railroad 

service after 1995, and had 

some railroad service 

before August 12, 1983,

age 62, your FRA.

(The employee must have 

an SS Act Insured Status 

to qualify you for a Tier 1 

benefi t.)

age 65.

of January 2002 or later, 

based on 60-119 months of 

railroad service with at 

least 60 months of railroad

service after 1995, and did not 

have railroad service

before August 12, 1983,

age 62, your FRA.

(The employee must have 

an SS Act Insured Status 

to qualify you for a Tier 1 

component.)

your FRA.
Appendix B

SPOUSE AGE REQUIREMENTS

EMPLOYEE HAS AT LEAST 360 MONTHS OF RAILROAD SERVICE

If the employee is 

retired based on:

and the 

employee:

your spouse annuity can begin the 

fi rst full month you are age 60.

Your Tier 1 will:

Your Tier 2 

will:

age with an annuity beginning date of 

July 1, 1974, or later, and both attained 

age 60 and acquired 360 months of 

railroad service before July 1984,

retired at age 60 or 

later,

not have an age reduction.

Note: For these cases, your spouse 

annuity cannot begin before January 1, 

1975.

not have 

an age 

reduction.

age and either attained age 60 or 

acquired 360 months of railroad service 

in July 1984 through December 2001,

retired at age 60 

through age 61, 

with an employee 

annuity beginning 

date before January 

2002,

have an age reduction based on the 

employee’s age reduction until both you 

and the employee have attained age 62.

You will then have an age reduction for 

the number of months you are under Full 

Retirement Age (FRA) when both you and 

the employee are age 62.

not have 

an age 

reduction.

age and either attained age 60 or 

acquired 360 months of railroad service 

in July 1984 through December 2001,

retired at age 62 or 

later,

not have an age reduction. not have 

an age 

reduction.

age with at least 360 months of

railroad service and an annuity beginning

date ofJanuary 2002, or later,

retired at age 60 or 

later

not have an age reduction. not have 

an age 

reduction.

disability with at least 360 months 

of service and an employee annuity 

beginning date before July 1, 1984,

has attained age 60, not have an age reduction. not have 

an age 

reduction.

disability with at least 360 months 

of service and an employee annuity

beginning date of July 1, 1984, or later,

has attained age 60, have an age reduction depending on your 

spouse annuity beginning date.

• If your spouse annuity begins 

before January 2002, and begins 

before your FRA, your Tier 1 will 

have an age reduction. (If you are 

age 60-61 on the date your spouse 

annuity begins, you are deemed to 

be age 62.)

• If yourspouse annuity begins

January 1, 2002, or later, your Tier 1

will not have an age reduction.

not have 

an age 

reduction.
Appendix C

DIVORCED SPOUSE AGE REQUIREMENT

If the employee 

has:

and the employee 

is at least:

your divorced spouse 

annuity can begin the

fi rst full month you are:

Your annuity will 

have an age 

reduction if you 

retire before 

attaining:

an SS Act Fully Insured 

Status based on combined 

railroad and SSA earnings 

(40 Quarters of Coverage for 

those born after 1928),

age 62 for a full 

month,

age 62. your FRA.

an SS Act Disability Insured 

Status based on combined 

railroad and SSA earnings 

(disability freeze),

age 62, age 62. your FRA.

Appendix D

Use Appendix D to determine the effect of your nonrailroad earnings on your spouse or divorced spouse 

annuity.

DETERMINING YOUR WORK DEDUCTIONS

For a year in which: you may lose up to $1 in your 

Tier 1 component for every: The reduction:

you attain Full 

Retirement Age 

(FRA),

$3.00 of earnings over the Annual Earnings Exempt Amount for 

your age group. However, your earnings are only counted for 

months before the month in which you attain FRA.

is removed effective

the month in which you

attain your FRA.

you are under 

your FRA for the 

entire year,

$2.00 of earnings over the Annual Earnings Exempt Amount for 

your age group.

applies for the full 

year.

you work outside the

U.S. for 45 or more 

hours per month,

$2.00 of earnings. There is no Annual Earnings Exempt Amount 

for work outside the U. S.. However, your earnings are only 

counted for months before the month in which you attain FRA.

is removed effective 

the month in which 

you attain your FRA.
Nondiscrimination on the Basis of Disability

Under Section 504 of the Rehabilitation Act of 1973 and Railroad Retirement Board (RRB)

regulations, no qualifi ed person may be discriminated against on the basis of disability. RRB 

programs and activities must be accessible to all qualified applicants and benefi ciaries, including

those with impaired vision or hearing. Disabled persons needing assistance (including auxiliary 

aids or program information in accessible formats) should contact the nearest RRB offi ce.

Complaints of alleged discrimination by the RRB on the basis of disability must be filed within 

90 days in writing with the Director of Administration, Railroad Retirement Board, 844

North Rush Street, Chicago, Illinois, 60611-1275. Questions about individual rights under 

this regulation may be directed to the RRB’s Director of Equal Opportunity at the same address.

FRAUD, WASTE, AND ABUSE HOTLINE

The RRB’s Office of Inspector General established its Hotline as a public service. The Hotline 

provides individuals with a means to report or discuss any suspected misconduct relating to the 

RRB, its programs or employees.

If you believe a doctor, hospital or other health care provider is billing Medicare for services not 

provided or for unnecessary medical procedures or supplies; someone is illegally receiving RRB 

benefi ts; or you wish to report or discuss any other suspected misconduct relating to the RRB, its

programs or employees, please contact the Office of Inspector General at:

Toll-Free Hotline: 1-800-772-4258

U.S. Mail: RRB-OIG Hotline Officer

844 North Rush Street 

Chicago, Illinois 60611-1275

Fax: (312) 751-4342

Email: hotline@oig.rrb.gov

Please review the RRB’s email notice and Internet privacy policy at www.rrb.gov before

submitting information online.

Note: Please do not contact the Office of Inspector General’s Hotline with questions regarding 

benefit eligibility requirements, delayed payments or similar problems. These types of matters

should be directed to an RRB office.
Paperwork Reduction Act andPrivacy Act Notices

This notice is given under the Paperwork Reduction Act of 

1995 and the Privacy Act of 1974. The Privacy Act requires 

that the Railroad Retirement Board (RRB) tell you the following whenever we ask you for information:

1) The law which allows us to ask for information;

2) whether that law requires you to give us the 

information and what, if anything, might happen to you if 

you do not give it to us;

3) the reason why the information is requested; and

4) the persons, organizations, and agencies to which we 

may release the information without your permission.

The RRB’s authority for requesting this information is 

Section 7(b) of the Railroad Retirement Act (RRA) of 1974. 

Providing us with this information is voluntary on your part. 

However, if you fail to provide us with the requested information we may be unable to pay you any benefi ts. The RRB 

needs this information to determine whether you are eligible to receive such benefi ts and, if so, the amount you are 

entitled to receive. If your annuity application is approved 

and we begin to pay you benefi ts, information that we may 

request from you in the future will be used to determine 

whether you are entitled to continue to receive such benefi ts.

Although the information we request is almost never used 

for any purpose other than the payment of benefi ts under 

the RRA, the RRB does have the authority to release information to the indicated individuals, organizations, and/or 

agencies without your approval:

1) An attorney, the Offi ce of the President, a

Congressional offi ce, a labor union or the Department of 

State’s embassy or consular offi ces if they allege to be 

representing you at your request.

2) Other people who are receiving benefi ts based on the 

same railroad retirement account as you are if the 

information affects their payments from the RRB.

3) A person who will receive benefi ts on your behalf if the 

RRB decided that some medical condition keeps you from 

receiving your own benefi ts; such information may also be 

released in determining whether such a medical condition 

exists and who is suitable to receive such benefi ts for you.

4) People or organizations who are working for the RRB; 

such information may include medical records.

5) The U.S. Treasury Department or U.S. Postal 

Service to issue payments and to investigate lost, 

forged, or stolen payments.

6) Your last employer to make sure that you are eligible to 

receive railroad retirement benefi ts and you continue to 

receive any available medical benefi ts, and to any railroad 

employer (or to its insurance company) to make sure that 

you can receive any private retirement or insurance

benefi ts which may be offered by the employer.

7) The Social Security Administration, Centers for 

Medicare & Medicaid Services, Pension Benefi t 

Guarantee Corporation, Offi ce of Personnel Management, 

Department of Veterans Affairs, or Federal, State, or local 

welfare or public aid agencies to determine if you can 

receive benefi ts from their organizations and if any 

previous benefi ts were paid incorrectly.

8) The Internal Revenue Service or to State and local

taxing authorities for fi guring your taxes and for use in audits.

9) Your last address and the name of your last employer 

may be released to the Department of Health and Human 

Services to be used in the Parent Locator Service.

10) The Government Accountability Offi ce for audits and 

for collecting overpayments owed to the RRB or the 

Social Security Administration.

11) The U.S. Department of Labor as required by the 

Federal Coal Mine and Safety Act.

12) In certain cases for law enforcement purposes and for 

court proceedings.

13) Information about the determination and recovery of 

an overpayment made to you may be released to any 

other person from whom any portion of the overpayment 

is being recovered.

14) Your name and address may be released to a 

Member of Congress to inform you about current or 

proposed legislation which could affect the railroad 

retirement system.

15) Professional Standards Review Organizations and 

State Licensing Boards when services provided by 

physicians or practitioners suggest unethical or 

unprofessional conduct.

We estimate the AA-3 process takes an average of 29 to 

30 minutes per response to complete, including the time 

for reviewing the instructions, getting the needed data, and 

reviewing the completed form. Federal agencies may not 

conduct or sponsor, and respondents are not required to 

respond to, a collection of information unless it displays a 

valid OMB number. If you wish, send comments regarding 

the accuracy of our estimate or any other aspect of this 

process, including suggestions for reducing the completion time, to Chief of Information Resources Management,

Railroad Retirement Board, 844 North Rush Street, Chicago, 

Illinois 60611-1275.

Computer Matching and Privacy Protection Act Notice

The Computer Matching and Privacy Protection Act of 1988

requires the Railroad Retirement Board (RRB) to advise you

that information you have provided may be used, without

your consent, in automated matching programs. These

matching programs are a computer comparison of RRB

records with records kept by other Federal, State, or local

governmental agencies. Information from these programs

can be used to establish or verify a person’s eligibility for federally funded or administered benefi t programs and for repayment of payments or delinquent debts under these programs.
U.S. Railroad Retirement Board Printed Matter

OfficialBusiness 

Penalty for Private Use $300

RB-30