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305.5 Entitlement Requirements

To be entitled to an age and service annuity, an employee must:

A. Be full retirement age (FRA) or over, and have at least 120 months of creditable 

railroad (RR) service or at least 60 months of RR service after 1995; or

B. Be age 60 or over but less than FRA, and have at least 30 years of creditable RR 

service (60/30 provision). The annuity rate is unreduced if the employee attained 

age 60 and acquired 30 years of service before 7-1-84, or if the employee is at 

least age 62 on the annuity beginning date, or if the ABD is later than 12-31-

2001.

Tier I of a 60/30 annuity may be reduced as follows, if the employee is under age 

62 on the annuity beginning date and the annuity beginning date is prior to 1-1-

2002:

1. A 10 percent reduction applies if the employee attains age 60 or acquires 

30 years of service 7-1-84 through 12-31-85.

2. A 20 percent reduction applies if the employee attains age 60 or acquires 

30 years of service 1-1-86 or later.

Tier II and the vested dual benefit are never reduced; or

C. Be age 62 or over but less than FRA, and have at least 120 months of creditable 

RR service or at least 60 months of creditable RR service after 1995. The tier 1 

is reduced for each month the employee is under FRA when the annuity begins; 

Tier 2 is reduced as follows:

1. If the employee has railroad service before 8-12-1983, tier 2 is reduced for 

each month the employee is under age 65 when the annuity begins.

2. If the employee does not have railroad service before 8-12-1983, tier 2 is 

reduced for each month the employee is under FRA when the annuity 

begins; and

D. Cease all RR service; and

E. Relinquish all rights to return to the service of employers under the Railroad 

Retirement Act (RRA); and

F. File an application for an age and service annuity.

NOTE 1: For those whose annuity begins prior to 1-1-2000 and for those born prior to 

1938, FRA is 65. For those born in 1960 or later, FRA is 67. For those born 1938-
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1959, the age varies. See RCM 8.3.92 for FRA chart. More information on FRA and 

age reductions can also be found in FOM Article 10 Appendices G, H, and I.

NOTE 2: An employee who was previously awarded a disability annuity may qualify for 

an age and service annuity before FRA only if the disability annuity terminated because 

of a medical recovery from the disability before age 65.

305.10 Evidence Requirements

Appendix I

Evidence When Required

Application (AA-1) Always

Self-Employment 

Questionnaire (AA-4)

When the employee was self-employed in the 12 

months preceding the application filing date, or in 

any period after leaving railroad service in cases in 

which S/E vs. LPE decision is needed for work 

deduction purposes.

Notice of Protection of Filing 

Date for Social Security 

Benefits (RR-8)

Used with the Application AA-1 only if the employee 

is eligible for security benefits, or will be eligible 

within 3 months, and he wishes to use the filing 

date of the Application AA-1 as the filing date of an 

application for social security benefits.

Criminal Activity Information Verify applicant information about criminal activity 

with appropriate state correctional authorities. (See

FOM1 150.30 for Criminal Activity procedures. See 

Appendix I of this article for a complete list of these 

authorities. See FOM1 1110.5.14 for how to handle 

earnings of incarcerated annuitants.).

Proof of Age Always

Proof of Military Service If the employee performed military service which 

could be creditable under either the RRA or the 

SSA.

Earnings Information 

Request (G-19F)

If the employee had pre-retirement non-railroad 

employment earnings and the ABD is in a prior year 

or the ABD is in the current year and the applicant 

has ceased the non-railroad work after the month of 

the ABD.
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Notice of Retirement and 

Request for Service Needed 

for Eligibility (G-88A.2)

When a report of railroad service and tier II 

compensation for the lag period is required for 

eligibility.

Prior service (AA-15) If the employee has less than 30 years of 

subsequent service and prior service was not 

previously established.

Application for Substitution of 

Payee (AA-5)

If a substitute payee is required.

Check List for Employee, 

and Divorced 

Spouse/Spouse Annuity and 

HIB Applications (G-230)

Always required for transmittal of an application.

305.15 Annuity Beginning Date

The employee annuity beginning date (ABD) is explained in FOM1 111.10. Retroactivity 

of the annuity application is explained in FOM1 112.5. 

305.25 Selecting Type Of Annuity

305.25.1 60/30 Employee and Disability

When an employee who is at least age 60 and has 30 years of service applies for an 

annuity, it may be to his advantage to file for an A&SA even though he may be disabled. 

There are several factors to consider.

A. Annuity Considerations

1. Advantages for 60/30 - The 60/30 annuity can begin immediately. A 

waiting period must be applied to disability annuities that need not be 

applied to the 60/30 annuity. 

Although tier I of a disability annuity may be reduced for entitlement to 

worker's compensation or a public disability benefit, no reduction applies 

to a 60/30 annuity, even if the annuitant has a DF.

2. Advantages for D/A - If retroactivity is a factor in determining an ABD, a 

disability annuity may be advantageous because the annuity may begin 12 

months before the month the application is filed. A 60/30 annuity may 

begin only 6 months before the application filing date.
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B. IMPACT - The employee may be given the advantage of more immediate 

payment through IMPACT if he files for a 60/30 annuity. The IMPACT payment 

is not delayed by the development of medical evidence and the disability rating. 

C. Disability freeze - The employee may still receive the full benefit of having a 

disability freeze period by filing a Form AA-1d (Application for Determination of 

Employee Disability) when applying for an A&SA. If the medical evidence 

establishes that the beneficiary is disabled within the meaning of the Social 

Security Act, the main advantages are:

1. Earlier Medicare coverage, if he is under age 63 when the DF application 

is filed;

2. Earlier eligibility for the vested dual benefit; and

3. Possible annuity increase.

4. Earlier social security equivalent benefit (SSEB) date of entitlement if the 

employee is under age 62 as of the later of (1) the ABD, and (2) the first 

day of the month following the disability freeze waiting period.

Any tier 1 payments made from this earlier SSEB date of entitlement and 

before age 62 will be taxed under what are more advantageous Federal 

income tax rules.

If the applicant is under age 65 and is disabled when he files an application for a 

60/30 annuity, you should also develop the Application AA-1d and medical 

evidence to establish a disability freeze.

D. Coverage under GA-46000 - A 60/30 annuitant who has a disability freeze may 

qualify under the disability requirements of The Travelers National Early 

Retirement Major Medical Benefit Plan GA-46000. Applicants with questions 

about eligibility for GA-46000 should be instructed to contact either The Travelers 

Insurance Company or their union.

E. Work deductions - If an applicant expects to work after his annuity is awarded, he 

should consider the effect of work restrictions. Applying for an A&SA may be 

more advantageous if an applicant expects to have regular earnings after his 

ABD. A disability annuity is not payable for any month in which an annuitant 

earns more than the monthly earnings amount in employment of any type FOM 

1125.5.2(). An A&SA is subject to deductions for excess earnings. Both 

annuities are subject to deductions for last person service. Earnings deductions 

are discussed further in FOM-I-305.30. 

305.25.2 Military Service Required for 60/30 and for Vesting

If an employee has military service (M/S) that may be credited as compensation to give 

him 30 years of service, but would also give the employee a vested status if used as 
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wages, it will generally be to his advantage to use the M/S as compensation to make 

him eligible under the 60/30 provision. In making this determination, it is important to 

consider whether the M/S will make the employee eligible for a supplemental annuity or 

qualify the spouse for an annuity at an earlier age.

If the employee wants to use his M/S as compensation to give him 30 years, he should 

indicate in item 25 of the Application AA-1 that he wants a full 60/30 age annuity. RASI 

will then pay the annuity using M/S as compensation to establish eligibility for a 60/30 

annuity. If the employee is not sure which use of M/S (as compensation or wages) is to 

his advantage, and he indicates in item 25 of the Application AA-1 that he is filing for a 

reduced annuity, the final payment of his annuity will be handled manually. The 

examiner will decide which use of M/S is to the employee's advantage. If a statement 

from the employee is required, RBD will ask you to develop one.

305.25.3 Employee Disability Applicant Also Eligible for Reduced Age Annuity 

(New Section)

At times, an employee will file an application for a disability annuity who also meets the 

eligibility requirements for a reduced age annuity. If such a person claims dire need, a 

reduced age annuity may be paid pending the disability rating. However, this may 

require additional payment actions, additional RUIA fund transfers, and overpayment 

recovery action. For these reasons, do not offer this option routinely. This option 

should only be offered when dire need is claimed. In these situations:

1. The AA-1 must show that the employee is filing for a disability annuity.

2. The AA-1 must show that the employee will accept a reduced age annuity if not 

entitled to a full age or disability annuity; or the employee must submit a signed 

written statement to that effect. If a statement is needed, send it to RIS, supervisor. 

The statement may be combined with the statement described in 3 below.

3. Obtain a signed written statement from the employee that he will repay any 

overpayment that may occur from being paid a reduced age annuity. He must also 

state that he relinquishes his rights to return to railroad service in order to receive 

the age and service annuity, and that once the relinquishment takes effect, it cannot 

be revoked. Send the statement to RIS, supervisor.

4. Send an email explaining the situation to RIS supervisor with copy to DBD mailbox.

5. The supervisor or senior examiner of RIS will make arrangements for the payment.

6. DBD will keep a control on the case. Once the disability rating has been completed, 

the DBD initial lead examiner will notify the RIS supervisor by email.
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305.30 Reduction In Annuity For Earnings

An age and service annuity may be reduced for excess earnings if the employee has a 

work deduction insured status, is under age 70 and has earnings in excess of the 

annual limit. The annuity components that may be withheld for excess earnings are the 

portion of tier I attributable to wages before 1974 and to railroad compensation and 

wages after 1974, and the vested dual benefit.

Tier II and the supplemental annuity are reduced up to 50% effective 12-1-88 for last 

person service earnings. If earnings from all sources exceed the annual earnings 

exempt amount, tier I and any VDB are also subject to deduction.

LPS earnings deductions apply regardless of the annuitant's earnings or age. 

305.35 Suspension Of Annuity

An age and service annuity is not payable for any month in which the annuitant:

A. Works for a railroad employer; or

B. Criminal activity may require the suspension of an individual’s O/M share or the 

conversion of his Tier 1 tax status to all NSSEB. See FOM1 150 for further 

information on criminal activity procedures. 

C. Payment of tier I or DIB O/M may be withheld if the employee is deported from 

the U.S. 11-10-88 or later, due to association with the Nazi government of 

Germany during World War II.

305.40 Termination Of Annuity

An annuity terminates with the last day of the month before the month in which the 

annuitant dies.

305.45 Reinstatement And Recomputation Of Annuity

When annuity payments were suspended because the annuitant returned to RR 

service, payments are reinstated effective with the first day of the month following the 

month in which he ceased employment. Tier I increases, if any, are applied the first of 

the year following the year the compensation is earned. If a tier II recomputation is 

payable, it is effective with the first of the month following the date last worked.

305.45.1 Field Office Action

The annuitant must complete Form G-88 (Certification of Termination of Service and

Relinquishment of Rights) to have payments reinstated. A new application is not 

required. Submit the Form G-88 to Headquarters for reinstatement, via a cover memo.
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The field office should also release Form G-88A.2 to confirm the date last worked -

railroad, date rights relinquished, and any LAG needed to pay the annuity.

305.45.2 Headquarters Action

RBD will reinstate the annuity when the Form G-88 is received. If the Form G-88A.2 is 

returned to correct the date last worked or date rights relinquished, RBD will review and 

make any necessary adjustment.

When the railroad submits its annual report after the end of the year, RBD will 

determine whether or not an increase is payable. If applicable, the annuity will be 

recertified and an adjustment letter will be sent to the employee with a copy to the field 

office.

If, after the annual report is received, it is determined that inclusion of the additional 

service would not yield a payable increase, a Form Letter RL-23b will be sent to the 

employee with a copy to the field office, advising that an increase is not payable.

305.50 Vested Dual Benefit Entitlement Requirements

Under the 1974 Railroad Retirement Act (RRA), an annuitant who is entitled to social 

security benefits in addition to a railroad retirement annuity does not receive the full 

advantage of receiving both benefits. That is because a railroad annuity must be 

reduced for the amount of social security benefits payable. However, an annuitant will 

benefit from social security coverage if he is vested. The vested annuitant receives an 

additional annuity amount called a vested dual benefit, which is added to the annuity 

computation. It is designed to simulate the additional amount that the employee would 

receive because of entitlement to both RR and SS benefits. Although it is not 

necessary for the employee to be on the rolls on 12-31-74 to be vested, more stringent 

vesting requirements must be met by employees who come on the rolls after that date.

Because of separate funding, vested dual benefits may be subject to a percentage 

cutback if the total amount appropriated is insufficient to pay total vested dual benefits 

for that fiscal year.

305.50.1 Employee on the Rolls on December 31, 1974

An employee who filed an application before January l, 1975, and had a beginning date 

before January 1, 1975, is vested if he was:

A. Receiving SS benefits on 12-31-74; or

B. Fully or transitionally insured under the Social Security Act (SSA) as of 12-31-74; 

or

C. Entitled to a wife's or a transitional wife's benefit, a husband's, widow's, or 

widower's SS benefit on 12-31-74. If the employee is the wife or dependent 
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husband of an insured person, that person must be receiving a retirement 

insurance benefit or a disability insurance benefit before a VDB amount may be 

computed for the employee. The employee's VDB entitlement must have been 

determined before 8-13-81 (see FOM1 305.51); or

D. The wife, widow, dependent husband, or dependent widower of a person who 

was fully insured under the SSA on 12-31-74. If the employee is the wife or 

dependent husband of an insured person, that person must be receiving a 

retirement insurance benefit or a disability insurance benefit before a windfall 

amount may be computed for the employee. The employee's VDB entitlement 

must have been determined before 8-13-81 (see FOM1 305.51).

305.50.2 Employee on the Rolls After December 31, 1974 and Insured on Own 

Wage Record

An employee who filed an application after 1-1-75 or had an annuity beginning date 

after 1-1-75 is vested if either A. or B. apply:

A. The employee has at least 10 years of RR service as of 12-31-74;

AND HAS EITHER

1. Some RR service in 1974; or

2. A current connection (C/C) on 12-31-74 or on his ABD, whichever is later; 

or

3. At least 25 years of RR service as of 12-31-74;

AND

The employee has a fully or transitionally insured status under the SSA as of 12-

31-74;

OR

B. The employee has at least 10 years of RR service as of 12-31-74;

AND

A fully insured status under the SSA by the end of the year before 1974 in which 

RR service was last performed by the employee.

EXAMPLE 1: The employee (date of birth 6-13-13) last worked in the RR 

industry in 1962. At the time he had 27 years of RR service, but no insured 

status under the SSA. He worked for an SS employer from 1962 to June 1975, 

when he retired and filed for both benefits. He was insured for SS benefits by 

12-31-74.
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This employee is vested under the conditions in FOM-I-305.50.2A and is entitled 

to the VDB because he had over 25 years of RR service and was insured under 

the SSA as of 12-31-74.

EXAMPLE 2: The employee (date of birth 7-14-16) last worked in the RR 

industry in 1964. At the time he had 23 years of RR service, but no insured 

status under the SSA. He had been working for an SS employer since 1964. He 

filed for both benefits in July 1981. He was insured for SS benefits by 12-31-74.

This employee is not vested since he had less than 25 years of RR service as of 

12-31-74, he had no C/C on 12-31-74 or his ABD, he did not perform RR service 

in 1974, and he did not have an SS insured status in 1964, the last year in which 

he performed RR service.

305.51 Employee Vested On Another Account

Prior to 8-13-81, an employee could receive a vested dual benefit (VDB) if the employee 

was eligible for an SS benefit as a wife, widow, dependent husband, or dependent 

widower, and other vesting requirements were met. Beginning 8-13-81, a VDB based 

on another account may be paid only if the vesting requirements are met and the 

employee was entitled to the VDB before 8-13-81.

The following section explains the vesting requirements for VDB eligibility on another 

account. FOM1 305.51.2 explains the requirements that must be met for payment of a 

VDB 8-13-81 or later.

305.51.1 Employee on the Rolls After December 31, 1974 and Eligible for an SS 

Benefit on Other than Own Wage Record

An employee who filed an application after 1-1-75 or had an annuity beginning date 

after 1-1-75 and who was not fully insured under the SSA as of 12-31-74 based on his 

own wage record may be vested if either A or B apply:

A. The employee has at least 10 years of RR service as of 12-31-74;

AND

Is the wife, widow, dependent husband or dependent widower of a person who is 

fully insured under the SSA as of 12-31-74, or is eligible for a transitional wife's 

benefit under the SSA as of 12-31-74, and the employee has one of the 

following:

1. Some RR service in 1974; or

2. A C/C on 12-31-74 or on his ABD, whichever is later; or

3. At least 25 years of RR service as of 12-31-74;
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OR

B. The employee has at least 10 years of RR service as of 12-31-74;

AND

Is the wife, widow, dependent husband or dependent widower of a person who 

was fully insured under the SSA by the end of the year before 1974 in which RR 

service was last performed by the employee.

If the employee annuitant is the wife or husband of the fully insured person, that 

person must be entitled to (i.e., must be receiving) an SS benefit for the annuitant 

to be eligible for an SS benefit. Therefore, the VDB benefit may not be paid prior 

to the beginning date of the wage earner's SS benefit. However, the employee 

does not have to be receiving a spouse SS benefit to be entitled to the VDB.

If the employee is vested as the widow(er) of the fully insured person, the 

employee does not have to be receiving an SS benefit to be entitled to the VDB. 

The terms "wife" and "widow" under the SSA include divorced wives (except 

when eligibility for a transitional wife's benefit is involved) and surviving divorced 

wives, respectively. To be eligible, the wife or widow must be finally divorced 

from the wage earner and have been married to him for at least 20 years 

immediately before the date the divorce becomes final. Effective 1-1-79, a 

divorced wife or widow is eligible for benefits under the SSA if she was married to 

the wage earner for only 10 years; however, the marriage must have lasted for 

20 years in order to pay a divorced wife's or widow's VDB.

EXAMPLE 1: Mary Jones (date of birth 9-30-21) has 31 years of RR service and 

retired under the 60/30 provision of the RRA on 9-1-81. Her husband, who was 

insured under the SSA, died in 1970. Therefore, at age 60 she is eligible for a 

widow's benefit at SSA. Mrs. Jones is eligible for a VDB benefit since she meets 

RR vesting requirements and her late husband had an insured status under the 

SSA by December 31, 1974. 

EXAMPLE 2: Beatrice Smith (date of birth 4-4-19) has 25 years of RR service 

and filed for a reduced age annuity beginning 4-1-81. Her husband, whose date 

of birth is 1-26-18, was insured under the SSA by 12-31-74. However, he has 

not yet filed for his SS benefit. Mrs. Smith is not entitled to a VDB until her 

husband is entitled to an SS benefit, although she is vested as the wife of a 

person who is fully insured under the SSA as of 12-31-74.

305.51.2 Vested Dual Benefit Payment 8-13-81 or Later

Beginning 8-13-81, a vested dual benefit (VDB) may be paid to an employee vested on 

another account only if the following requirements are met:
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A. The employee's annuity (partial or final) was authorized for payment before 8-13-

81. Generally, if the employee's annuity was paid before 9-1-81, it was probably 

authorized for payment before 8-13-81. An annuity award processed by RASI is 

authorized for payment on the date the computer run is made. A claim 

processed manually is authorized for payment on the date the award form is 

signed by both a claims examiner and a claims authorizer; AND

B. All the VDB entitlement requirements were met before 8-13-81, and the RRB was 

aware of such entitlement before 8-13-81.

If the employee is vested as a spouse, the employee's date of birth must be 

before August 14, 1919. The person on whose earnings record the employee is 

vested must have been awarded SS benefits before 8-13-81, and the RRB must 

have been aware of such entitlement before that date.

If a VDB was paid before 8-13-81 based on a spouse vested status, the VDB 

may continue to be paid when it converts to a widow(er)'s VDB 8-13-81 or later, if 

there is no break in entitlement.

If the employee is vested because of entitlement to a mother's or a disabled 

widow(er)'s SS benefit, the SS benefit must have been paid before 8-13-81 and 

the RRB must have been aware of such entitlement before that date.

An SS benefit does not have to be paid before an employee may be vested as an 

aged widow(er). However, the RRB must have been aware of the employee's 

vested status before 8-13-81; AND

C. The auxiliary VDB must not have been erroneously denied before 8-13-81. The 

1981 RRA amendments prohibit payment of a VDB in all cases in which 

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

entitlement was denied incorrectly.

An erroneous VDB denial generally means that the employee was eligible for the 

VDB when the annuity was awarded or recertified, but the auxiliary VDB 

determination was not made or was made incorrectly. The fact that the VDB was 

not paid, for whatever reason (delay, oversight, etc.), when evidence indicates 

such entitlement, means that the VDB was erroneously denied and cannot be 

paid.

EXAMPLE: A female employee's RIB/DIB VDB was paid 7-1-81. The evidence 

in file also indicated she was vested as a spouse, but the spouse VDB was not 

paid on 7-1-81. Because the spouse VDB was not paid when the annuity was 

recertified and the employee was eligible for the VDB, the spouse VDB was 

erroneously denied and cannot be paid.
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305.55 Chart Of Requirements For Vested Status

See Appendix K in the manual for a chart summarizing the vesting requirements for 

employees on the rolls after December 31, 1974. 

305.60 One-Half Support Requirement For Husbands And Widowers

A male employee could receive a vested dual benefit (VDB) as the husband or widower 

of a person who is insured under the Social Security Act (SSA) only if he met the onehalf support requirement under SSA rules. The VDB was calculated using the benefit to 

which the husband or widower would have been entitled under the SSA on December 

31, 1974. Since on 12-31-74 one-half support was a requirement for paying the 

husband's and widower's benefits, the VDB could not be paid to employees who did not 

meet the one-half support requirement. If the employee did meet the one-half support 

requirement, the VDB date of entitlement could not be prior to the date the one-half 

support requirement was met. All the requirements in FOM1 305.51 must be met for 

payment of the VDB 8-13-81 or later. Proof of one-half support must have been 

submitted before 8-13-81.

305.60.1 When Requirement Must Be Met

The point at which the one-half support requirement must be met is any of the following:

A. At the beginning of the wage earner's disability freeze period; or

B. At the time the wage earner became entitled to a retirement insurance benefit 

(RIB); or

C. At the time the wage earner became entitled to a disability insurance benefit 

(DIB); or

D. At the time the wage earner died.

305.60.2 When Proof of Support Must Be Filed

Proof of support must be filed within 2 years after the point at which the support 

requirement must be met, unless good cause can be established. The employee 

should have completed and filed Form G-134 (Statement Regarding Contributions and 

Support). Proof of support must have been submitted before 8-13-81.

EXAMPLE: The employee's wife is entitled to a DIB effective 11-1-75 based on a 

period of disability beginning 5-1-75. She attained age 65 in 2-80. In this case, the 

support requirement may be met on 5-1-75, 11-1-75 or 2-1-80 (when the DIB is 

switched to an RIB). If the employee has not filed proof of support by 11-77 (2 years 

after the DIB entitlement date), he may still become entitled to a VDB effective 2-1-80 if 

the one-half support requirement is met on that date and the employee filed proof of 

support before 8-13-81.
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305.65 Proofs Required For Payment Of Vested Dual Benefit

Before paying a vested dual benefit (VDB) based on the employee's status as the 

spouse or widow(er) of a person insured at the Social Security Administration, it was 

necessary to develop proof of marriage, proof of death and any other evidence that 

would be needed to award a spouse or widow(er)'s SS benefit. Living with is not a 

requirement for the payment of a spouse SS benefit. In most cases, if a spouse or 

widow(er) SS benefit is being paid, it is assumed that the necessary proofs were 

developed at the Social Security Administration. The VDB will then be paid without 

further development, if the requirements in FOM1 305.51 are met for payment of the 

VDB 8-13-81 or later.

However, if a divorced wife's or widow's SS benefit is being paid from 1-1-79 or later, 

evidence had to be developed showing the date of marriage and date the divorce 

became final. Although a divorced wife's or widow's SS benefit may be paid effective 

January 1, 1979 or later if she was married to the wage earner for 10 years, the 

marriage must have lasted for 20 years in order to pay the VDB. This is because 20 

years of marriage was a requirement for paying a divorced wife's or widow's SS benefit 

on December 31, 1974. No VDB may be paid unless all required proofs were submitted 

before 8-13-81.

305.70 When The Vested Dual Benefit Is Payable

The vested dual benefit (VDB) amount becomes payable to the annuitant at the earliest 

point at which he would be eligible for an SS benefit or on his ABD, whichever is later. 

If the annuitant is entitled to a VDB because he is the spouse or dependent husband of 

a person who is fully insured under the Social Security Act (SSA) as of December 31, 

1974 (or earlier in some cases), that person must be entitled to an RIB or DIB for the 

annuitant to be eligible for an SS benefit. Therefore, the VDB may not be paid prior to 

the beginning date of the wage earner's SS benefit.

The earliest point at which the annuitant would be eligible for an SS benefit depends on 

whether eligibility is based on his own wage record or someone else's wage record.

305.70.1 Eligibility Based on Own Wage Record

The earliest point at which an employee would be eligible for an SS benefit on his own 

wage record is:

A. Age 62 if he is eligible for an RIB. If the employee attains age 62 on 9-1-81 or 

later, the VDB may not be paid until the first full month the employee is age 62. If 

the employee's 62nd birthday is on or after the third day of the month, the VDB 

may not begin until the first day of the next month; or

B. Any age if he is eligible for a DIB at the Social Security Administration. (Since the 

Social Security Administration would not pay the DIB until after the expiration of 
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the five-month waiting period, the VDB would also not be payable until after the 

five-month waiting period.)

305.70.2 Eligibility Based on Someone Else's Wage Record

All the requirements in FOM1 305.51 must be met for payment of the vested dual 

benefit 8-13-81 or later. The earliest point at which an employee would be eligible for 

an SS benefit on someone else's wage record is:

A. Age 62 if the employee is eligible for a wife's or husband's SS benefit; or

B. Age 60 if the employee is eligible for a widow(er)'s or remarried widow(er)'s SS 

benefit; or

C. Age 50 if the employee is eligible for a disabled widow(er)'s SS benefit; or

D. Any age if the employee is eligible for a mother's SS benefit based on having in 

her care a child entitled to a child's SS benefit on her husband's or deceased 

husband's wage record.

305.71 Waiver Of Vested Dual Benefit Entitlement

When entitlement to a vested dual benefit (VDB) causes a decrease in the annuity rate, 

the annuitant may wish to waive entitlement to the VDB. An annuitant may request VDB 

waiver at any time. However, RBD will initiate the development of VDB waiver only in 

the following situations:

A. The VDB entitlement causes the annuity rate to decrease. This may happen if 

the tier II reduction for the RIB/DIB VDB exceeds the amount of the RIB/DIB 

VDB. The cases affected are generally 1974 Railroad Retirement Act conversion 

cases, or cases in which an auxiliary VDB had been paid; or

B. The VDB cutback percentage is greater than 75%. The tier II reduction for VDB 

entitlement is 25% of the VDB. If the VDB is cut back more than 75%, the tier II 

reduction will exceed the amount of the VDB payable. VDB entitlement, 

therefore, will cause the annuity rate to decrease.

Whenever entitlement to an RIB/DIB VDB is waived, the annuitant's tier II is not reduced 

for the VDB. The employee's VDB waiver does not affect any other annuity; the spouse 

tier II and the RRA maximum computation will be based on the employee's tier II after 

reduction for VDB entitlement. The spouse may still receive the spouse VDB, if the 

conditions for payment before the 1981 amendments are met.

The effective date of the waiver and other general information is in FOM1 110. If the 

VDB has not been awarded, the waiver may be effective with the VDB date of 

entitlement. If the VDB has been paid, the rules in FOM-I-110 apply.
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When RBD initiates development in the situations listed in this section, you will receive 

a memorandum which explains the advantages of waiving the VDB. The memo will 

include the annuity rates with and without the VDB, and the effect on annuity payments 

if the VDB is not waived (e.g., an overpayment). You should contact the annuitant to 

explain the advantages of waiving the VDB. Your response to RBD should be:

1. If the annuitant agrees, a clear and unambiguous statement waiving VDB 

entitlement; or

2. If the annuitant does not wish to waive the VDB, notify RBD; or

3. If the annuitant does not respond immediately, notify RBD of the date you 

contacted the annuitant. If RBD has not received a response within 60 days of 

the date of your contact, the VDB will be paid and any overpayment will be 

recovered. An extension of the time for response will be granted if requested.

305.75 When Vested Dual Benefit Entitlement Ends

Vested dual benefit (VDB) payments end with the earliest of the following dates:

A. The last day of the month before the month in which the employee dies; or

B. The last day of the month before the month of termination of entitlement to a DIB 

or a wife's, husband's, mother's, or widow(er)'s benefit under the Social Security 

Act (SSA).

NOTE: The VDB is not terminated when one SS benefit is terminated because the 

annuitant becomes entitled to a new type of SS benefit (e.g., from a wife's to a widow's 

benefit, from a widow's to a remarried widow's benefit, etc.) since the annuitant is still 

eligible for an SS benefit. However, if there is a change in the type and rate of the SS 

benefit, the VDB will be recomputed. If VDB entitlement was established before 8-13-

81, the VDB may be recomputed if the change in computation is 8-13-81 or later.

305.80 Felony/Criminal Activity Development

Criminal activity may require the suspension of an individual’s O/M share or the 

conversion of his Tier 1 tax status to all NSSEB. See FOM1 150 for further information 

on criminal activity procedures.