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1.1.1 Eligibility Requirements

A. Age and Service Requirement

The age requirement for an age and service annuity depends on the employee’s years 

of creditable railroad service. The earliest age at which the employees can receive an 

age and service annuity is shown below. The RRB considers employees to have 

attained their age on the day before their birthday, as explained in FOM-I-111.3.2

Determining Employees’ Earliest Retirement Age

If the employees have: Their annuity can begin 

the first full month they 

attain:

at least 360 months of railroad service, Age 60.

120-359 months of railroad service, Age 62.

60-119 months of railroad service with at least 60 

months of railroad service after 1995.

Age 62.

B. Requirements for Employee Previously Awarded a Disability Annuity

Employees who were previously awarded disability annuities can qualify for age and 

service annuities only if their disability annuity terminated because they recovered 

medically from their disability before attaining Full Retirement Age (FRA) or if they 

cancel their disability annuity application and refund any amount paid by the RRB based 

on the disability annuity application.

Former disability annuitants were not required to have 120 months of creditable railroad 

service to be eligible for an annuity at age 62 if their disability annuities were payable on 

10-29-51. A new award may have been made to them if they reapplied for an annuity 

and had met the other eligibility and entitlement requirements.

C. Full Retirement Age

The term Full Retirement Age (FRA) means the age at which an employee with less 

than 360 months of railroad service can receive a full annuity (not reduced for early 

retirement). FRA is attained the first day of the month in which that age is attained.

If employees have less than 360 months of railroad service, FRA for their Tier 1 age 

reduction is age 65 if they were born before January 2, 1938. The FRA for persons 
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born after January 1, 1938, will gradually increase over a 20-year period to age 67, as 

illustrated in the following chart.

Determining Employees’ Full Retirement Age (FRA)

If employees 

were born:

then their FRA is: If employees 

were born:

then their FRA is:

Before 1-2-1938 65 1-2-1955 thru 

1-1-1956

66 and 2 months

1-2-1938 thru 1-

1-1939

65 and 2 months 1-2-1956 thru 

1-1-1957

66 and 4 months

1-2-1939 thru 1-

1-1940

65 and 4 months 1-2-1957 thru 

1-1-1958

66 and 6 months

1-2-1940 thru 1-

1-1941

65 and 6 months 1-2-1958 thru 

1-1-1959

66 and 8 months

1-2-1941 thru 1-

1-1942

65 and 8 months 1-2-1959 thru 

1-1-1960

66 and 10 months

1-2-1942 thru 1-

1-1943

65 and 10 months 1-2-1960 and 

later

67

1-2-1943 thru 1-

1-1955

66

(Full Retirement Age also affects Tier 1 annuity deductions due to earnings as 

described in RCM 5.7, regardless of the employee’s total years of railroad service.)

D. Employee Age Reductions

1. General 60/30

Employee 60/30 cases never have a tier 1 age reduction if the employees are at least 

age 62 on their employee ABD. 

In addition, the Railroad Retirement and Survivor Improvement Act of 2001 (RRSIA) 

removed the Tier 1 age reduction for 60/30 employees retiring at age 60-61 who have 

an annuity beginning date of January 1, 2002, or later. 

However, some 60/30 cases still have Tier 1 age reductions if the employees retired at 

age 60-61 and have annuity beginning dates before January 1, 2002, as explained in 

RCM 8.6. 
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2. Employee Has Less than 360 Months of Service but at Least 120 Months of 

Service

a. Tier 1 Age Reductions - If the employee has less than 360 months of railroad 

service, the employee’s Tier 1 will be reduced by 1/180 for each of the first 36 

months they are under FRA and 1/240 for each additional month they are under 

FRA on the annuity beginning date. 

b. Tier 2 Age Reductions - The age reduction is based on age 65 or FRA, depending 

on the employee’s railroad service.

• If the employees began railroad service before August 12, 1983, their Tier 2 will 

be reduced by 1/180 for each month they are under age 65 on their annuity 

beginning date.

• If the employee began railroad service after August 11, 1983, their Tier 2 will be 

reduced by 1/180 for each of the first 36 months they are under FRA and 1/240 

for each additional month they are under FRA on their annuity beginning date.

3. Employee Has Less than 120 Months of Service but at Least 60 Months of 

Service after 1995

a. Tier 1 Age Reductions - If the employee has less than 120 months of railroad 

service, the employee’s Tier 1 will be reduced by 1/180 for each of the first 36 

months they are under FRA and 1/240 for each additional month they are under 

FRA on the earlier of their RRA annuity beginning date or social security benefit date 

of entitlement. 

b. Tier 2 Age Reductions - The age reduction is based on age 65 or FRA, depending 

on the employee’s railroad service.

• If the employee should happen to have some service before 8/12/83, their Tier 2 

will be reduced by 1/180 for each month they are under age 65 on their annuity 

beginning date.

• If the employee began railroad service after August 11, 1983, their Tier 2 will be 

reduced by 1/180 for each of the first 36 months they are under FRA and 1/240 

for each additional month they are under FRA on their annuity beginning date.

4. Summary Chart

The conditions for employee annuity age reductions are explained in the following 

chart.

 

Employee Annuity Age Reductions
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If the employees 

have:

The employees’ Tier 1 will 

have an age reduction if:

The employees’ Tier 

2 will:

At least 360 or more 

months of railroad 

service. 

all of the following apply: 

the employees first met the 

age or service requirements in 

a month after June 1984 and 

before January 2002. 

the employees had an annuity 

beginning date before January 

1, 2002; and,

the employees’ ABDs are 

before the month they attain 

age 62.

not have an age 

reduction

120 - 359 months of 

railroad service, with 

railroad service before 

8/12/1983.

the employees’ ABDs are 

before the month they attain 

their FRA.

have an age reduction 

if the employees’ 

ABDs are before the 

month they attain age 

65.

120 - 359 months of 

railroad service, 

without railroad 

service before 

8/12/1983.

the employees’ ABDs are 

before the month they attain 

their FRA.

have an age reduction 

if the employees’ 

ABDs are before the 

month they attain their 

FRA.

Less than 120 months 

of railroad service, but 

at least 60 months of 

railroad service after 

1995 and some 

railroad service before 

8/12/1983.

the employees’ ABDs or SSA 

dates of entitlement are before 

the month they attain their 

FRA.

(The employee must have an 

SSA Fully Insured Status to 

receive a Tier 1 component.)

have an age reduction 

if the employees’ 

ABDs are before the 

month they attain age 

65.

Less than 120 months 

of railroad service, but 

at least 60 months of 

railroad service after 

1995, without railroad 

service before 

8/12/1983.

the employees’ ABDs or SSA 

dates of entitlement are before 

the month they attain their 

FRA.

(The employee must have an 

SSA Fully Insured Status to 

receive a Tier 1 component.) 

have an age reduction 

if the employees’ 

ABDs are before the 

month they attain their 

FRA.
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More than 120 

months of railroad 

service, but originally 

paid with at least 60 

months of railroad 

service after 1995 and 

some railroad service 

before 8/12/1983. the 

employees’ RR ABDs 

are before the month 

they attain their FRA.

the employees’ RR ABDs are 

before the month they attain 

their FRA.

have an age reduction 

if the employees’ RR 

ABDs are before the 

month they attain age 

65.

More than 120 

months of railroad 

service, but originally 

paid with at least 60 

months of railroad 

service after 1995, 

without railroad 

service before 

8/12/1983.

the employees’ RR ABDs are 

before the month they attain 

their FRA.

have an age reduction 

if the employees’ RR 

ABDs are before the 

month they attain their 

FRA

1.1.2 Entitlement Requirements

A. Entire Age and Service Benefit

The employees must meet the age and service requirements for eligibility explained in 

RCM 1.1.1 and must file an annuity application. Also:

1. The employees must stop all railroad work for pay before their annuity can begin. 

Also note that, after the annuity is awarded, payment cannot be made for any 

month in which the employees return to work for a railroad employer.

2. Before an age and service annuity can be paid, employees must relinquish all 

seniority or other rights to return to work for any railroad employer. While an age 

and service annuity can begin to accrue as early as the day after they stop 

working for the railroad, it cannot be awarded until they relinquish rights to 

railroad employment. (See RCM 1.6.)

3. Before December 1, 1988, employees must have stopped work for their last nonrailroad employer as explained in RCM 1.6. 

B. Insured Status Requirement for Tier 1 Component

Age and service employee annuitants must have an SSA Fully Insured Status based on 

combined SSA wages and railroad earnings to receive a Tier 1 component. 
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The Quarter of Coverage (QC) requirement for Fully Insured Status for employees born 

after 1928 is 40 QCs. Therefore, if employees have at least 120 months of railroad 

service, they are assumed to have at least 40 quarters of coverage.

If employees have less than 120 months of railroad service, but at least 60 months of 

railroad service after 1995, their SSA wages must provide the additional quarters of 

coverage needed for an SSA Fully Insured Status to qualify them for the Tier 1 

component. Refer to RCM 5.6.5 for more information about a Fully Insured Status.

1.1.3 Annuity Beginning Date

When an employee meets the requirements for entitlement to an A&SA, the annuity can 

begin on the latest of the earliest date permitted by law, or the day designated by the 

employee.

To determine the correct ABD for a particular age and service annuity see the 

instructions in FOM-I-111.10.1

1.1.4 When an Age and Service Annuity Is Suspended or Terminated

A. Entire Age and Service Employee Annuity Is Suspended

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

for an RR Act employer or other suspension events as explained in RCM 6.3.6 - RCM 

6.3.7.

NOTE: Before 12/1/88, an age and service annuity was not payable for any month in 

which the employee returned to last person service employment as explained in RCM 

1.6.

B. Tier 1 Component Only is Suspended

1. Alien Nonpayment Cases - The employee tier 1 is exempt from the alien 

nonpayment provisions as explained in RCM 4.9.21.

2. Deportation cases - Effective with tier I components payable for December 1, 

1988, an employee tier I is suspended when:

a. a final order of deportation has been issued against such individual on 

the basis of association with the NAZI government of Germany during 

World War II, and

b. the final orders of deportation are issued on or after November 10. 

1988.

The suspension is effective with the first full month after the final orders of deportation 

are issued. The Tier I becomes payable, only when the individual is lawfully admitted to 

the United States for permanent residence.
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C. Age and Service Annuity Is Terminated.

An age and service annuity terminates with the first day of the month in which the 

employee dies. This means that the last month that the annuity is payable is the month 

prior to the month in which the death occurs.

1.1.5 Public Service Pension Reduction

A reduction to the employee's annuity for his or her own public service pension is built 

into the computation of the PIA #1 and PIA #9 as explained in RCM 1.1.15 - 1.1.18

1.1.6 Reduction For Worker's Compensation Or Public Disability

If the employee is receiving worker's compensation or other public disability benefits, his 

or her annuity may be subject to a reduction as explained in RCM 8.5.

1.1.7 Employee Age Reductions

A. Employee Has Less Than 30 Years Service - When the non-disability employee 

with 120-359 months railroad service has an annuity beginning date before (s)he 

attains full retirement age (FRA), the employee's railroad formula tier I, tier II and 

vested dual benefit are reduced by 1/180 for each month up to 36 months plus 

1/240 for each additional month beyond 36 that the employee is under FRA when 

the employee annuity begins. 

EXCEPTION: The number of months used for the Tier 2 reduction is as follows: 

1. If the employee has railroad service before 8/12/1983, tier 2 will be 

reduced by the number of months the employee is under age 65. 

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

be reduced by the number of months the employee is under FRA. 

NOTE: For those with an ABD earlier than 1-1-2001 and born prior to 1938, FRA 

is 65. For those born in 1960 or later, FRA is 67. For those born 1938-1959, the 

age varies. See RCM 8.3.92 for FRA chart. 

B. Employee Has 30 or More Years RR Service.--When the age and service 

employee has 30 or more years of railroad service and age reduction may apply 

to the tier I portion of his or her annuity as follows: 

1. Employee Attained 60/30 Before 7-1-84 or Has an ABD of 1-1-2002 or 

Later.--If the employee attained age 60 and acquired 30 or more years of 

railroad service before 7-1-84, or has an ABD of 1-1-2002 or later, his or 

her annuity is not subject to an age reduction. 

2. Employee Attains 60/30 7-1-84 or Later and Has an ABD Before 1-1-2002 

But Delays Retirement to Age 62.--If the employee either attains age 60 or 
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acquires 30 or more years of railroad service 7-1-84 or later and has an 

ABD before 1-1-2002 and delays his or her retirement until the month in 

which (s)he attains age 62, his or her annuity is not subject to an age 

reduction. 

3. Employee Attains 60/30 7-1-84 through 12-31-85 and has an ABD before 

1-1-2002 and Retires Before Age 62.--If the employer attains age 60 and 

acquires 30 or more years of railroad service before 1-1-86, but did not 

meet both requirements before 7-1-84 and has an ABD before the month 

in which (s)he attains age 62 and before 1-1-2002, his or her tier I is 

subject to a fixed age reduction of 36/180 divided by 2 (or .1000) effective 

on the ABD. The tier I benefit is recalculated effective with the first full 

month the employee is age 62. The employee's age reduction for the 

recalculated tier I changes to 35/180 divided by 2 (or .0972) as of the 

month the tier I recalculation is effective unless the employee was born on 

the second day of the month. In that case the age reduction remains the 

same (36/180 divided by 2). The employee's tier II or vested dual benefit 

is not subject to an age reduction. 

4. Employee Attains 60/30 1-1-86 or Later and Has an ABD Before 1-1-2002 

and Retires Before Age 62.--If the employee either attains age 60 or 

acquires 30 or more years of railroad service 1-1-86 or later and has an 

ABD before the month in which (s)he attains age 62 and before 1-1-2002, 

his or her tier I is subject to an age reduction based on the number of 

months between age 62 and his FRA month. The tier I benefit is 

recalculated effective the first full month the employee is age 62. The 

number of months used for the employee's age reduction in the 

recalculation is changed to reflect the number of full months under FRA. 

However, there would be no change in the number of months used in the 

age reduction if the employee was born on the second day of the month. 

In that case, the age reduction remains the same (1/180 for each of the 

first 36 months under FRA, plus 1/240 for each additional month beyond 

36.). The employees tier II or vested dual benefit is not subject to an age 

reduction. 

C. Employee Benefit Under the Special Guaranty Rate.--The age reduction to the 

employee's special guaranty rate is explained in RCM 8.3.85-8.3.88. 

D. Employee Has 5 – 9 Years of Service--Effective January 2002, the Railroad 

Retirement and Survivor’s Improvement Act (RRSIA) established entitlement for 

employees with 5 – 9 years of railroad service. To be eligible for benefits, an 

employee with less than 120 months of service must have at least 60 months of 

service after 1995. RRSIA provides for full age and service annuities; reduced 

age and service annuities; and total and permanent disability annuities. There is 

no provision for occupational disability annuities under RRSIA. No employee, 

spouse or divorced spouse can be eligible for a 5-9 year annuity before the 

employee has earned the 60th month of railroad service after 1995. No 
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entitlement under RRSIA can be effective before January 1, 2002, the effective 

date of the RRSIA provision. See Appendix B for information about RRSIA. 

NOTE: The employee may have service months prior to 1995. All railroad 

service will be used to compute the annuity, but only railroad service after 1995 

will be used to determine eligibility under RRSIA.

1.1.8 Reduction For Social Security Benefits

The employee's tier I is reduced but not below zero, by the full amount of any social 

security benefit (s)he is receiving. This is the amount before SSA applies work 

deductions, partial withholding or temporary withholding.

If the employee's social security benefit was subject to work deductions for a year 1975-

1981, refer to RCM 5.7 Appendix E and RCM 5.7 Appendix F, "Form G-101a 

Instructions" for procedure to restore the tier I offset for SS benefits.

1.1.9 Reduction For Earnings

If the employee has a work deduction insured status, his or her annuity is adjusted for 

excess earnings. Effective 12-1-88, an employee's tier 2, supplemental annuity and 

spouse's tier 2 are subject to work deductions for last person service. Both types of 

work deductions are explained in RCM 5.7.

1.1.10 Requirements For Increasing An A&SA Under The O/M

In order to have his A&SA increased under the O/M, this annuitant must meet the 

requirements of the SS Act as explained in RCM 8.3.8.

1.1.11 When The O/M Is Applicable

An Age & Service (A&S) can be increased under the O/M as explained in RCM 8.3.11 

through 8.3.13.

1.1.12 Referral For O/M And WF Test

The Monthly Attainment Processing (MAP) program will release a diary card in cases on 

the rolls where the spouse's date of birth has been entered into PREH to alert the 

examiner of the possible need for an adjustment when the following events occur:

• A spouse who is receiving an annuity that is not based on the O/M formula attains 

age 62; or

• (A spouse who is receiving an annuity that is not based on the O/M formula attains 

full retirement age or)
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• A spouse who is not receiving an annuity and is not included as an IPI in an annuity 

based on the O/M formula attains full retirement age.

The referral message will read "ANN-SP 62 OR SP FRA TEST FOR O/M AND VDB." 

Upon receipt of this referral, examine the folder to determine if the annuity could be paid 

under the O/M formula is explained in RCM Chapter 8.3 or to determine if the spouse is 

eligible for a regular spouse's annuity (see RCM Chapter 1.3).

A diary card will also be released when the employee attains age 62 and a PIA #4 

amount has been entered into the record to alert the examiner to pay the employee a 

RIB VDB as explained in Section 1.1.33. Prior to the 1981 amendments, diary cards 

were also used to determine if the spouse annuitant was entitled to a VDB (see RCM 

Chapter 1.3. Appendix D).

1.1.13 Development

There should be sufficient information on recently filed applications to identify potentially 

eligible auxiliary beneficiaries. When complete SS benefit information is not in file or the 

SS benefit amount stated in file would not preclude application of the O/M, release Form 

G-60 to obtain or verify SS benefit information. Develop any required evidence (see 

RCM 1.1.21) or additional information through the field.

If Forms G-319, and/or G-320 were developed but it is determined that the O/M is not 

applicable, release Form Letter RL-300 to the employee (see RCM Part 11.)

1.1.14 Earnings Restrictions

When an A&SA is increased under the O/M, the amount of the increase is affected if the 

annuitant earns more than the annual exempt amount while he is under full retirement 

age, (age 70 prior to January 1, 2000), or (age 72 prior to 1-1-83). The annuitant's 

increase under the O/M is also affected if he works outside the U.S for 45 or more hours 

in a month before he attains full retirement age, (age 70 prior to January 1, 2000), or 

(72 prior to 1-1-83). See RCM 8.3.135 - 8.3.143 for a complete discussion of how work 

deductions apply to an A&SA increased under the O/M.

1.1.15 Non-covered Service Pension (NCSP) Provision

Except as explained in RCM 1.1.17, the 1983 Social Security Act Amendments (PL 98-

21) establish a reduction in PIA #1, PIA #9, PIA #17 and SSEB PIA for the following 

annuities:

1) Employees who attain age 62 after 1985 (including employees receiving a reduced 

60/30 annuity who attain age 62 after 1985); or

Become entitled to a disability annuity after 1985; and
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Become entitled to a pension based in whole or in part on non-covered service 1-1986 

or later (See RCM 1.1.116)

2) Spouses/divorced spouses (including independently-entitled divorced spouses) who 

become eligible for an annuity on the wage record of an employee who is entitled to a 

pension based in whole or in part on non-covered service 1/1986 or later (see RCM 

1.1.116). The NCSP reduction is factored into the PIA calculation, whereby 

spouses/divorced spouses receive one-half of the employee’s NCSP-reduced tier 1.

1.1.16 Definition Of Non-covered Service Pension

For purposes of the employee non-covered service pension provision, a non-covered 

service pension (NCSP) is any payment based in whole or in part on earnings for 

services that are not covered as employment under section 210 of the Social Security 

Act. 

A lump-sum payment that is actually a refund of the individual's contributions to an 

employee pension, including interest, is not a pension payment and does not affect the 

tier I or O/M benefit

Pensions that are paid in other than monthly amounts will be allocated to an equivalent 

monthly amount. Also, a lump sum payment that is made as a substitute for periodic 

payments qualifies as a pension under this provision. The lump sum will be prorated to 

a monthly amount. 

Finally, the offset is the amount of the non-covered service pension before any 

reduction in the pension that the individual elects to provide a survivor’s benefit.

Note: A public disability benefit may also be considered a NCSP. Examiners should 

consider this whenever a PDB offset applies. Form G-207 is used to determine if an 

annuity is subject to reduction due to a NCSP. Form G-207 also has a reminder to 

consider a reduction in the employee’s annuity due to a Public Disability Benefit. If 

Form G-209 was not previously requested, the examiner should have the field service 

develop for this unless an exception applies. 

1.1.17 Exceptions To The Non-covered Service Pension Provision

The non-covered service pension provision does not apply if the employee:

A. Becomes entitled to a disability annuity before 1986 and remains entitled to it in 

any of the 12 months immediately before he attains age 62 or has re-entitlement 

to a disability annuity; or

B. Has 30 years of coverage as explained in RCM 8.11 Appendix M. (The 30 years 

of coverage requirement should not be confused with 30 years of service. An 

individual with very low wages could have 12 months of service in a calendar 

year but not a year of coverage.)
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C. Is a newly hired federal employee (hired after 12-1983).

D. Is an employee of a non-profit organization which did not have Social Security 

coverage for any of its employees on 12/31/83 and who became covered under 

the SS Act for the first time as an employee of that organization under the 

compulsory coverage provisions in P.L. 98-21.

E. Meets the age and service requirements for his/her non-covered employment 

pension prior to 1986, even if (s)he does not elect to receive the pension until 

after 1985. In determining if this exemption applies, the individual must meet all 

the requirements for the pension (e.g., years of service, attainment of age, 

amount of contributions, etc.) prior to 1986.

F. Is entitled to the pension based entirely on non-covered employment prior to 

1957. (This includes military service pensions based wholly on military service 

performed before 1957.)

G. Is receiving pension payments based on earnings as a minister from a church. 

H. Beginning January 1995, a foreign pension that is payable by another country 

based on a totalization agreement with the United States will cause an exemption 

to the non-covered service pension. A foreign pension is based on a totalization 

agreement if entitlement to the pension is established as the result of the 

agreement between the U.S. and the foreign country. 

A foreign pension is not based on an agreement if the beneficiary met the normal 

benefit eligibility requirements of the other country and did NOT rely on the 

agreement to establish entitlement.

While most U.S. agreements provide for adding U.S. and foreign credits together, 

if necessary, to establish entitlement to a foreign benefit, not all do. Certain 

agreements establish alternative eligibility requirements. When entitlement to the 

foreign benefit is established in accordance with such alternative requirements, 

the foreign pension is considered to be a pension based on an agreement with 

the U.S.

Example: Under Swiss law, a non-Swiss citizen would normally need 10 years of 

Swiss coverage to qualify for a retirement pension. The U.S.- Swiss social 

security agreement modifies Swiss law so that a U.S. citizen can qualify for a 

Swiss retirement pension with as little as one year of Swiss coverage. Thus, a 

U.S. citizen who qualifies for a Swiss retirement pension with less than 10 years 

of Swiss coverage would receive a Swiss pension based on the agreement with 

the U.S. 

Conversely, a U.S. citizen who receives a Swiss retirement pension with 10 

years or more of Swiss coverage would not receive a pension based on the 

agreement with the United States.
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The following types of pensions paid by agreement countries always allow for an 

exemption from the NCSP provision:

Country Type of Pension

Canada Old Age Security (OAS)

Finland National Pension Scheme (NPS)

Netherlands National Insurance Scheme (AOW)

Norway Basic Pension Program

Sweden Basic Pension Program

The following types of pensions paid by agreement countries do NOT allow for 

an exemption from the NCSP provision unless the applicant claims an 

exemption under the totalization agreement:

Country Type of Pension

Australia Effective – October 1, 2002

Austria All

Belgium All

Canada Canada Pension Plan (CPP)

(a) Retirement

(b) Disability

Quebec Pension Plan (QPP)

(a) Retirement

(b) Disability

Chile Effective - December 1, 2001

Finland Employment Pension Scheme (EPS)

France All

Germany All

Greece All

Ireland All

Italy All

Japan All – Effective October 1, 2005

Luxembourg All

Netherlands Employed Persons Insurance Scheme (EPIS)

Norway Supplementary Pension Program

Portugal All

Republic of Korea All - Effective April 1, 2001

Spain All

Sweden Supplementary Pension

Switzerland All
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NOTE: Swiss retirement pensions paid to U.S.

citizens with less than 10 years of Swiss coverage 

are always based on the agreement.

United Kingdom All

If the applicant wishes to claim an exemption from the NCSP provision based on 

a totalization agreement, the field office will secure a statement that authorizes 

RRB to request verification of the receipt of the totalization benefit. Send the 

statement to P&S-RAC to determine if the offset can be removed.

I. Prior to January 1995, military reservists who received a pension based in whole 

or in part on reserve service before 1988 were subject to the NCSP provision. 

Effective January 1995 and later, the PIA’s 1, 9 and 17 are exempt from the 

NCSP provision if the pension is based, in whole or in part, on non-covered 

reserve duty before 1988, but after 1956.

NOTE: After removal of the NCSP provision caused by military reserve service, 

the NCSP may still apply because of receipt of another pension based on noncovered employment.

1.1.18 Adjustment To The PIA #1, PIA #9, PIA #17 or SSEB

The adjustment to the amount of the PIA #1, PIA #9, PIA #17 or SSEB is explained in 

RCM 8.11.76 - 8.11.79.

The reduced PIA’s are based on the PIA’s in effect on the ABD. The amount of the noncovered service pension used is the monthly rate effective on the later of the ABD or 

beginning date of the non-covered service pension. If the employee becomes entitled to 

the NCSP based on non-covered service after the ABD month, the PIA #1, PIA #9,PIA 

#17, or SSEB is computed as if the NCSP were payable in the ABD month. However, 

the reduced PIA’s are not used in the tier I or Retirement O/M benefit until the first 

month that the employee is entitled to both the NCSP and the RRB annuity.

The reduced PIA #1 is used to compute the employee and spouse tier I benefit. The 

reduced PIA #9 is used to compute the Retirement O/M benefit for the spouse or 

children. The reduced PIA #17 is used to compute the work deduction amount. These 

reduced PIA’s are effective until entitlement to the non-covered service pension ceases 

or the employee dies. The full employee tier I PIA is used to compute a survivor annuity.

The highest of three PIA computations for the gross tier 1 amount for the employee 

annuity is used when the employee is subject to a non-covered service pension 

reduction: 

• the NCSP reduced regular PIA: based on the employee’s “year of coverage” 

total and reduced bend point percentage; or

• the unreduced special minimum PIA, or 
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• the special guaranty rate: based on the regular unreduced PIA minus 1⁄2 the 

employee’s pension amount attributable to post-1956 non-covered earnings. 

See the G-60 instructions for requesting the PIA’s. In some cases, the G563 may be 

necessary. 

1.1.19 Future Entitlement

If the employee indicates that he has future entitlement to a NCSP, enter a call-up for 

the month before the expected date of entitlement (item 6 on the G-209) or the NonCovered Service Pension screen of APPLE. Upon receipt of the case, initiate 

development action through the F/O. Do not suspend or reduce the annuity until 

development has been completed and a determination has been made.

1.1.20 Evidence Requirements For Age And Service Annuity

Evidence When Required

Application (AA-1) Always.

Age Always.

Service and Compensation 

Report After 1936

Always.

Cessation of Service and 

Relinquishment of Rights

Always.

Service and Compensation 

Before 1937

If claimed and employee has less than 360 

months subsequent service.

Current Connection If a current connection is required.

Military Service If military service is to be included in the annuity 

computation.

Non-covered Service 

Pension (G-209)

If the employee's date of birth is January 2, 1924 

or later and (s)he is receiving a pension or 

annuity based on any work after 1956 not 

covered by social security or Railroad Retirement 

that begins January 1, 1986 or later.

VA Benefits (G-432 series) If annuity rate prior to 9-1-83 is based in part on 

military service.
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Joint and Survivor Annuity If joint and survivor election made before 7-31-46 

is operative.

Incompetency (G-253a, G478, or G-479)If incompetency is alleged or employee is in a 

mental institution.

Self-Employment 

Questionnaire - AA-4

If the employee was self-employed in the 

prescribed interval.

Guardianship (AA-5) If guardian or other legal representative is 

selected as representative payee.

Marriage If joint and survivor election is operative.

Citizenship and Residency Foreign case. 

Verification statement from 

the government service 

employer.

If the employee qualifies for an indexed tier 2 

based on federal employment.

1.1.21 Evidence Requirements For O/M

Additional evidence is required to increase an age and service annuity under the 

Retirement O/M (see RCM 8.3.12).

Use Form G-230 to request the required forms.

Evidence When Required

G-319, Statement Regarding 

Family and Earnings For 

Special Guaranty 

Computation

Always request this form from the employee. 

Request a second Form G-319 from the spouse if 

spouse alone or spouse with minor or disabled 

child in care could be included in the O/M.

G-320, Student 

Questionnaire for Special 

Guaranty Computation

If an elementary or secondary school student age 

18-19 could be included in the O/M.

AA-19a, Application For 

Determination of Child 

Disability

If disabled child could be included in the O/M.

G-315A, Statement of School 

Official 

If an elementary or secondary school student age 

18-19 could be included in the O/M.

Also request the following:
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Evidence When Required

Marriage If spouse could be included in O/M.

Age and Relationship of 

child(ren)

If children could be included in O/M.

Proof of Termination of 

Marriage of Child

If a child could be included in the O/M, is 

currently unmarried but was previously married, 

and the marriage terminated before the initial 

application was filed. 

Social Security Benefit Data If file indicates that spouse or children to be 

included in the O/M computation are receiving SS 

benefits.

Form G-208, Public Service 

Pension Questionnaire

When PSP of the spouse affects the 

computation.

NOTE 1: If the employee's annuity is increased under the "Spouse Election 

Procedure," refer to RCM 1.3 Appendix C.

NOTE 2: If Forms G-319 and/or G-320 are developed but it is then determined 

that the retirement O/M is not payable, release Form Letter RL-300 as explained 

in RCM Part 11.

If the forms requested above are not returned within 60 days, request the status of the 

Retirement O/M development from the RRB field office.

1.1.25 Eligibility For An Employee Annuity And A Spouse Annuity Or 

A Divorced Spouse Annuity

An individual may be simultaneously "entitled" to an employee annuity on his or her own 

earnings record and a spouse/divorced spouse annuity on a different railroad earnings 

record. The individual must file an annuity application on each RRB claim number to 

become "entitled" to each of these annuities. Further instructions for headquarters 

processing are contained in RCM 8.1 Appendix H, "Handling of Dual Entitlement 

Cases."

There is no reduction in the employee annuity for simultaneous entitlement to a spouse 

annuity or a divorced spouse annuity on the different RRB claim number. However, the 

spouse annuity or divorced spouse annuity will need to be adjusted for the simultaneous 

entitlement to an employee annuity.
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A. RASI Processing of Annuity - The field is instructed to enter an IMPACT rate for 

the employee annuity or a SPAR rate for the spouse annuity as follows:

1. Simultaneous Filing - If the applicant is simultaneously filing for both the 

employee annuity on his own RRB earnings record and the spouse 

annuity on a different RRB claim number and:

a. Railroad Service Before 1975 - If either earnings record has 

railroad service before 1975, the RRB field office is instructed to 

enter an IMPACT rate and a SPAR rate (adjusted for the own 

employee annuity). 

b. No Railroad Service Before 1975 - If neither earnings record has 

railroad service before 1975, the RRB field office is instructed to 

enter an IMPACT rate, but not to enter a SPAR rate. 

For either a. or b. above, RASI will establish a manual OP code "034" for 

the employee annuity. This will prevent final payment of the employee 

annuity until the manual OP code is cleared, as explained in RCM 9.2, but 

will not zero out any IMPACT rate entered by the RRB field office. RASI 

will establish a 953 call-up #407 for the spouse annuity. This will prevent 

final payment of the spouse annuity until the call-up is cleared as 

explained in RCM 9.2, but will not zero out any SPAR rate entered by the 

RRB field office. RBD should process the case at Headquarters under 

procedures for “Handling of Dual Entitlement Cases” in RCM 8.1 Appendix 

H.

2. Spouse/Divorced Spouse Annuity in Pay Status - If the spouse/divorced 

spouse annuity on a different RRB claim number is in pay status when the 

applicant files for the employee annuity on his or her own earnings record, 

the RRB field office is instructed not to enter an IMPACT rate. 

RASI will set a manual OP "034". This will prevent final payment of the 

employee annuity until the call-up is cleared as explained in RCM 9.2, but 

will not zero out any IMPACT rate erroneously entered by the RRB field 

office. RBD should process the case at Headquarters under procedures 

for " Handling of Dual Entitlement Cases" in RCM 8.1 Appendix H.

If any overpayment in the spouse annuity is to be recovered from the 

accrual for the employee annuity, the case must be dumped from RASI 

and paid on the Retirement On-line Calculation (ROC) program.

B. Reduction to Spouse Annuity - The reduction to the spouse annuity for the dual 

entitlement is explained in RCM 1.3.11. 

C. Reduction to Divorced Spouse Annuity - A divorced spouse annuity on the 

different RRB claim number (which is Tier 1 only) is reduced by the full amount of 
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the employee annuity on his or her own earnings record, as explained in RCM 

1.3.91. There is no restoration of the reduction amount.

1.1.26 Eligibility For A Survivor Annuity And An Employee Annuity

An individual may be simultaneously "entitled" to an employee annuity on his or her own 

earnings record and a survivor annuity on a different railroad earnings record. The 

individual must file an annuity application on each claim number to become "entitled" to 

each of these annuities. Further instructions regarding headquarters processing are 

contained in RCM 8.1 Appendix H, "Handling of Dual Entitlement Cases."

There is no reduction in the employee annuity for simultaneous entitlement to a survivor 

annuity on the different RRB claim number. However, the survivor annuity will need to 

be adjusted for the simultaneous entitlement to an employee annuity.

A. RASI Processing of Employee Annuity - The field is instructed to enter an 

IMPACT rate for the employee annuity as follows:

1. Simultaneous Filing - If the applicant is simultaneously filing for both the 

employee annuity on his own RRB earnings record and the survivor 

annuity on a different RRB claim number, the RRB field office is instructed 

to enter an IMPACT rate. 

2. Survivor Annuity in Pay Status - If the survivor annuity on a different RRB 

claim number is in pay status when the applicant files for the employee 

annuity on his own earnings record, the RRB field office is instructed not

to enter an IMPACT rate.

For either 1 or 2 above, RASI will set a manual OP "034." This will prevent final 

payment of the employee annuity until the call-up is cleared as explained in RCM 

9.2, but will not zero out any IMPACT rate entered by the RRB field office. BRB 

should process the case at Headquarters under procedures for "Handling of Dual 

Entitlement Cases" in RCM 8.1 Appendix H. 

If any overpayment in the survivor annuity is to be recovered from the accrual for 

the employee annuity, the employee annuity application must be dumped from 

RASI and paid on the Retirement On-line Calculation (ROC) program.

B. Reduction to Survivor Annuity - There is a reduction in the survivor annuity on the

different RRB claim number for "entitlement" to an employee annuity on his own 

earnings record:

1. Railroad Service Before 1975 - If either the survivor annuity on the 

different RRB claim number or the employee annuity on his or her own 

earnings record is based on any railroad service before 1975, the tier 1 

portion of a widow(er)'s annuity or WCIA is reduced for the net tier 1 of an 

employee annuity. If either the employee or survivor had 10 or more years 
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of railroad service before 1975, a restoration amount may be included in 

the survivor tier 2 portion. 

2. No Railroad Service Before 1975 - If neither the survivor annuity on the 

different RRB claim number nor the employee annuity on his or her own 

earnings record is based on any railroad service before 1975, (i.e., both 

annuities are based solely on service after 1974), the survivor total net 

annuity rate (tier 1 and tier 2) is reduced, but not below zero, by the 

amount of the employee annuity (tier 1 and tier 2). There is no restoration 

of the reduction amount:

a. If the employee annuity is higher, entitlement continues on the 

earnings record for the survivor annuity, even though the survivor 

annuity rate is zero. SBD will not deny the survivor annuity 

application. The survivor annuity must remain in a "suspended" or 

"constructive award" status with an annuity rate of "zero." 

b. If the survivor annuity is higher, the survivor annuity rate will be the 

amount of the difference between the survivor annuity before 

adjustment for the employee annuity and the amount of the 

employee annuity.

1.1.30 Windfall Benefit Entitlement

Unlike the RR Act of 1937, the 1974 RR Act restricts the receipt of RR and SS benefits 

(dual benefits) by annuitants. Under the new law even though annuitants may be 

insured and entitled under both systems, they can qualify for the full amount of the dual 

benefits only if they are also "dually vested" as of 12-31-74 (or earlier in some cases). 

The vested annuitant will receive an additional annuity amount called a "windfall dual 

benefit" which is computed and 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.

Prior to the 1981 RR Act Amendments, annuitants could be vested for windfall benefits 

under their own wage record or they could be vested for auxiliary windfall benefits 

based on other than their own wage records.

However, the 1981 RR Act Amendments eliminated the auxiliary windfall benefits 

except when:

• the employee is awarded an annuity before August 13, 1981; and

• the employee meets all windfall requirements (including the attainment of age 62) 

before August 13, 1981; and
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• the primary beneficiary, on whose record the auxiliary windfall is based, is insured 

and has filed at SSA before August 13, 1981.

(Based on L82-134, if an auxiliary windfall was erroneously denied prior to 8-13-81, it 

cannot be paid after 8-12-81, even if the error is discovered later.)

For example, if a female employee attains age 60 in April 1979, is awarded a 60/30 

annuity in the same month, meets all entitlement requirements for an requirements for 

an SS benefit before August 13, 1981, the auxiliary windfall is effective beginning April 

1981, the month she attains age 62. This holds true regardless of when the Board 

actually pays the windfall benefit.

1.1.31 Employee On The Rolls On 12-31-74 And Fully Insured On Own 

Wage Record

An employee on the rolls as of 12-31-74 who is either receiving SS benefits on that 

date, or who is fully insured under the SS Act as of that date, is considered vested, 

thereby preserving his rights to dual benefits.

An annuitant on the rolls of 12-31-74 who is transitionally insured under the SS Act is 

also entitled to a windfall dual benefit. This transitional benefit (is) treated in the same 

manner as an RIB based on a regular SS Act insured status.

An annuitant is transitionally insured if he attained age 72 prior to 1969 and is not 

insured at SSA under the regular rules, but has at least 3 quarters of coverage.

1.1.32 Employee On The Rolls After 12-31-74 And Fully Insured On 

Own Wage Record

An employee who was not on the rolls before 1-1-75 can only receive windfall dual 

benefits if he is vested under both the RR and SS Act on 12-31-74 (or earlier in some 

cases). An employee who has sufficient service and compensation to be fully insured 

under both systems, including a transitionally insured status, but who was not on the 

rolls before 1-1-75 can be vested in two different ways:

A. The employee is vested if he has:

1. A fully insured status under the SS Act as of 12-31-74 (or a transitionally 

insured status under the SS Act as of 12-31-74);

AND

2. At least 10 years of RR service as of 12-31-74.

AND EITHER HAS:

• Some RR service in 1974;
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OR

• A C/C on 12-31-74 or on his ABD;

OR

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

EXAMPLE 1: The employee (DOB 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 

SS Act. He worked for an SS employer form 1962 to June 1975, when he retired 

and filed for both benefits. (He was insured for SS benefits by 12-31-74).

This employee is vested and, therefore, entitled to the windfall dual benefit 

because he had over 25 years of RR service and was insured under the SS Act 

as of 12-31-74.

EXAMPLE 2: The employee's DOB is 2-3-15. He retired under the 60/30 

provision of the RR Act on 2-1-75 but need 26 QC's for a fully insured status 

under the SS Act at age 62. Therefore, he worked for an SS employer in April 

1975 and became insured. However, because he was not insured under the SS 

Act on 12-31-74 he is not vested for windfall dual benefits.

B. If the employee has at least 10 years of RR service but less than 25 years of RR 

service as of 12-31-74, no RR service in 1974 and no C/C on 12-31-74 or on his 

ABD, he is vested if he has:

1. At least 10 years of RR service as of 12-31-74;

AND

2. A fully insured status under the SS Act by the end of the year before 1974 

in which RR service was last performed by the employee.

EXAMPLE: The employee (DOB 7-14-14) last worked in the RR industry in 

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

SS Act. He has been working for an SS employer since 1964 and plans to retire 

and file for both benefits in July 1969. (He was insured for SS benefits by 12-31-

74.) He would not be 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.

(NOTE: If an employee was previously entitled to a 1937 Act disability annuity 

which terminated after January 1975 due to his recovery, met the RRB/DIB WF 

requirements at conversion, and was entitled to an annuity in December 1974 

and January 1975, his RIB/DIB WF entitlement may be preserved. See RCM 

1.2.406 for an explanation of preservation of WF entitlement.)
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1.1.33 When The Windfall Benefit Is Payable

The windfall 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.

The earliest point at which the annuitant would be eligible for an SS benefit is:

A. (Any age if he is eligible for DIB at SSA (See RCM 1.2.404A.)

B. (Age 62 if he is eligible for a reduced RIB (since 60/30 cases are deemed age 65 

on the ABD, they are eligible for a full RIB at age 62.)

Effective September 1, 1981, the earliest date a reduced RIB can begin is the 

first day of the month after the month in which the employee's 62nd birthday falls, 

unless his birthday is either the first or second day of the month. If his birthday is 

on the first or second day of the month the RIB will be payable from the first day 

of that month.

EXAMPLE 1: Mr. Smith was born October 10, 1919. He files on October 10, 

1981 for his RIB and meets all eligibility requirements. His RIB date of 

entitlement is November 1, 1981.

EXAMPLE 2: Mr. Jones was born October 2, 1919. He files on October 10, 1981 

for his RIB and meets all eligibility requirements. His RIB date of entitlement is 

October 1, 1981.

(The Monthly Attainment Processing (MAP) program will release a diary card in 

cases on the rolls where the employee's RIB windfall date of entitlement has 

been entered into the Research record to alert the examiner to the need to pay 

the employee a RIB windfall when the employee attains age 62 and:

• Is receiving a 60/30 annuity; or

• Is receiving a disability annuity and was not entitled to a DIB windfall.

The referral message will read "ANN-SP 62 OR SP 65 TEST FOR O/M AND 

WF." Upon receipt of this referral, examine the folder to determine if the RIB 

windfall is payable and/or if the annuity could be paid under the O/M formula as 

explained in section 1.1.12.)

1.1.34 When Entitlement Ends

When dual benefit payments end with the earlier of the following dates:

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

• 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 window(er)'s benefit under the SS Act.
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1.1.35 1974 RR Act Work Deductions Applied To The Windfall Dual 

Benefit

In most cases, the entire windfall dual benefit is subject to work deductions for excess 

earnings. However, the only work deduction amount that will be applied to the windfall 

benefit is the amount that cannot be recovered from tier I.

1.1.36 Cost-Of-Living Increases

Windfall dual benefits will be frozen at the 1974 benefit levels. However, they will be 

increased by any SS Act cost-of-living increases effective between 12-31-74 and the 

employee's ABD. Windfalls that begin to accrue June 1, 1981 or later will have a costof-living increase frozen at 81%.

Appendices

Appendix A - Age and Service Annuity Legislative History

Effective Date Age and Service Employee Provisions

06-24-1937 Full age and service annuity (A&S) at age 65 with any amount 

of service. Reduced A&SA at age 60 with 30 years of service.

01-01-1947 Full A&SA at age 60 for female employees with 30 years 

service. 

11-01-1951 10-year minimum service requirement.

Retirement O/M computation at age 62 for female employees.

11-01-1956 Reduced Retirement O/M computation at age 62 for female 

employees.

06-01-1959 Reduced A&SA at age 62 for female employees with less than 

30 years of service.

08-01-1961 Reduced O/M computation at age 62 for male employees.

10-01-1961 Reduced A&SA at age 62 for male employees with less than 

30 years of service.

07-01-1974 Full A&SA at age 60 for men with 30 years of service.

01-01-1975 Tiered annuity computation under the 1974 Railroad 

Retirement Act.

Work deductions applied to portions of an A&SA if there is a 

work deduction insured status and excess earnings. Work 

deductions no longer apply when the annuitant attains age 72.

01-01-1978 In work deduction computations, non-work months are 

considered only in the first year after 1977 in which the 
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Effective Date Age and Service Employee Provisions

beneficiary is entitled to an annuity.

08-13-1981 Elimination of employee auxiliary vested dual benefits.

09-01-1981 Tier I and the VDB may not begin before the first full month 

the employee is age 62.

06-01-1982 Retroactivity of application limited for tier I.

01-01-1983 Work deductions no longer apply when the annuitant attains 

age 70.

09-01-1983 Retroactivity of tier I, tier 2, and the VDB is limited for 

applications filed 9-1-83 or later.

07-01-1984 Employees who receive a 60/30 annuity with an ABD at age 

60-61 will have an age reduction if they either attained age 60 

or acquired their 360 month of railroad service after June 30, 

1984.

01-01-1986 Noncovered service pension reduction in PIA 1 and PIA 9.

12-01-1988 Last pre-retirement non-railroad employment (LPE) permitted 

after ABD with earnings deductions in tier 2 and supplemental 

annuity. 

12-01-1988 RRA credit for voluntary military service between 6-15-48 and 

12-15-50.

1-01-2001

Definition of “full retirement age” gradually changes from age 

65 to age 67 for employees born after 1937.

1-1-2002 Age reduction no longer applies for an employee who receives 

a 60/30 annuity with an ABD at age 60-61, provided the ABD 

is January 1, 2002, or later.

1-1-2002 Railroad Retirement and Survivor’s Improvement Act of 2001 

removed the Railroad Retirement Maximum provision from the 

Railroad Retirement Act. Any reductions to the employee 

annuities in pay status were removed effective from 1-1-2002.

1-1-2002 Employee may qualify for an annuity at age 62 based on less 

than 120 months of railroad service, but at least 60 months of 

railroad service after 1995. 

Tier 1 is payable only when the age and service employee has 

sufficient quarters of coverage based on combined railroad 

compensation and SSA wages for an insured status under the 

SS Act.
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Effective Date Age and Service Employee Provisions

1-1-2002 Employer tier 2 tax based on Account Benefits Ratio. 

Amendments also expanded investment options for the 

Railroad Retirement Account.

Appendix_B RRSIA Information 

WHAT RRSIA DID NOT CHANGE

All evidence requirements remain the same. All rules for setting an ABD, for 

determining a total and permanent disability, for determining spouse, divorced 

spouse, and widow entitlements are the same. For a retirement annuity, the 

employee must stop all compensated work in the railroad industry and relinquish 

rights. The computation of PIAs and the basic tier 2 will not change. The 

reductions to tier 1 for SSA benefits, NCSP, PSP, etc., still apply. The reductions 

made for excess earnings and LPE earnings remain the same. 

WHAT RRSIA CHANGED

RRSIA made significant changes in how the RRB pays annuities.

1. Beginning in January 2002, an employee with less than 120 months of 

railroad service can be eligible for an RRB annuity provided that at least 60 

months of service were acquired after 1995. Creditable military service 

after 1995 may be used to compute the 60 months of service.

2. The employee must have a social security insured status (SSIS) to be 

entitled to the tier 1. The SSIS is determined by counting the quarters of 

coverage (QCs) earned by the employee in combined railroad and social 

security earnings. The required number of QCs is determined by the 

employee’s year of birth. This information will be on the G-90. If there is 

no SSIS, the employee will not be entitled to a tier 1. The employee could 

still be entitled to a tier 2 on the ABD. 

3. The tier 1 or tier 2 date of eligibility may be different from the ABD. The tier 

1 and tier 2 age reduction months will be counted from their respective 

dates of eligibility through the month before FRA.

4. The tier 1 date of eligibility for payment and computation of reduction 

factors will be the later of: January 1, 2002, the RRSIA effective date; the 

date the 60th month of railroad service is earned; the date the employee’s 

social security insured status (SSIS) is acquired; the first full month of age 

62; or the date of entitlement (DOE) to social security retirement benefits. 

Additionally, rules related to retroactivity and the date the claim was filed 

remain the same.
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5 Delayed retirement credits (DRCs) will be counted from the SSIS if it 

occurs after FRA. DRCs are also limited if the SSA DOE to a retirement 

(RIB) or disability (DIB) benefit is prior to the ABD. The basis of the 

disability provision is that under SSA regulation, Section 404.310, an SSA 

DIB automatically becomes an old-age benefit at FRA. See L-2009-05 for 

details. Example 1: Employee is initially entitled to a full age annuity at the 

age of 68, having less than 10 years of railroad service, but more than 60 

months after 1995. He has a social security insured status since 1984, 

and has been in receipt of a reduced RIB from SSA since age 62. DRC’s 

are not payable to this employee. 

Example 2: Employee is initially entitled to a full age annuity at the age of 

73, having less than 10 years of railroad service, but more than 60 months 

after 1995. She has a social security insured status since 1962, and has 

been in receipt of a DIB from SSA since age 55. DRC’s are not payable to 

this employee.

6. Total and permanent disability annuitants will be paid an unreduced tier 

1on the ABD. The tier 2 is not payable until the annuitant is age 62 for a 

full month and then it will be age reduced. 

All the rules for computing RRSIA age reductions have been built into the 

estimate program (REAP) and the payment programs (ROC and PC programs). 

An overview of the rules is provided below.

SSA CONSIDERATIONS

Under RRSIA, entitlement to SSA benefits is important not only for subtracting 

the SSA benefit from the tier 1, but also for computing the age reduction in tier 1. 

There are several factors to consider when determining whether or not the SSA 

entitlement will affect the age reduction in the tier 1.

1. The SSA benefit must not be terminated or withdrawn.

2. The SSA DOE must precede the ABD.

3. The amendments limit consideration to SSA benefits under section 202(a), 

(b), or (c): old age, wife’s and husband’s benefits. This would include the 

following bics: A (Primary Claimant); B, B3, B8, BA, and BD (Wife 62 and 

over); B1, B4, BG, BH, BJ (Husband 62 and over); B6, B9, BN, BP, BQ 

(Divorced Wife 62 and over); and BR, BT (Divorced Husband 62 and over). 

Notice that disability benefits, children, widows and a spouse with child in 

care are not included. 

FULL AGE AND SERVICE ANNUITY
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Just like 10 year cases, annuitants will have to attain FRA in order to be entitled 

to a retirement annuity without an age reduction. Also, rules related to 

retroactivity and the date claim filed remain the same.

• The tier 1 eligibility date will be the later of: January 1, 2002, the RRSIA 

effective date; the date the employee acquires the 60th month of railroad 

service; the date the employee’s SSIS is acquired; or the DOE to social 

security retirement benefits. 

• If the SSIS is before the ABD, the tier 1 date of entitlement will be the 

ABD. If the SSIS is after the ABD, the tier 1 date of entitlement will be the 

SSIS date. 

• If the employee has a date of entitlement to an age reduced social security 

retirement benefit, age reduction months for tier 1 are counted from the 

SSA DOE through the month before FRA. This is true even though the 

employee has applied for the railroad annuity at or after FRA. 

• Age DRCs are counted from the SSIS attainment to the ABD if the SSIS 

attainment is later than FRA. 

• If the employee is entitled to a social security retirement benefit, and the 

SSA DOE is before the ABD, count DRCs from FRA through the month 

before the SSA DOE. (In other words, don’t give an employee credit for 

age DRCs at RRB for months he receives an SSA retirement or disability 

benefit.) 

• The tier 2 eligibility date cannot be before the employee has acquired the 

60th month of railroad service. The employee will receive a full tier 2 on 

the ABD. 

EXAMPLE 1: The employee files for a full age annuity under the 5–9-year

rules. His date of birth is 06-04-1937. He acquired his 60th month of 

railroad service in 03-2001. His SSA DOE for a reduced retirement 

benefit is 01-2002. In 06-2002, he files for a full age retirement benefit at 

RRB. His date last worked is 05-31-2002. His ABD is set at 06-2002. 

The tier 1 will have 5 age reduction factors because of his DOE to SSA 

retirement benefits. 

EXAMPLE 2: The employee files for a full age annuity under the 5–9-year

rules. His date of birth is 06-04-1937. His SSA DOE for a full retirement 

benefit is 06-2002. He acquires his 60th month of railroad service in 08-

2002. In 09-2002, he files for a full age retirement benefit at RRB. His 

date last worked is 08-31-2002. His ABD is set at 09-2002. The tier 1 will 

not receive DRCs for 6, 7, or 8-2002 because he was entitled to an SSA 

retirement benefit for those months. 
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REDUCED AGE AND SERVICE ANNUITY

Just like 10-year cases, annuitants paid under RRSIA will have to be age 62 for a 

full month to receive an annuity with an age reduction. The reduction per month 

will be the same (i.e., 20% reduction over the first 3 years for employees, and 

25% reduction over the first 3 years for spouses: and for those born in 1938 or 

later, an additional 10% reduction over the next 2 years for employees and 

spouses). As with full age annuities, how we count those reduction months may 

differ.

• If the SSIS is before the ABD, the tier 1 date of entitlement will be the 

ABD. Count age reduction months from the ABD through the month 

before FRA. If the SSIS is after the ABD, the tier 1 date of entitlement will 

be the SSIS date. Count the age reduction months from the SSIS through 

the month before FRA. 

• If the employee is over age 62 and has a date of entitlement to SSA 

retirement benefits, count the age reduction months for the tier 1 from the 

SSA DOE to the month before FRA.

• If the employee is over age 62 but does not attain his 60th month of 

railroad service until after age 62, the ABD cannot be earlier than the 60th

month of service. Count age reduction months from the 60th month of 

service to the month before FRA. 

• Reduce the tier 2 by the number of months between the ABD and FRA (or 

between the ABD and age 65 if the employee has a service month before 

09-1983.)

EXAMPLE: The employee files for a railroad annuity under the 5–9-year

rules. His date of birth is 09-01-1940. His DOE at SSA is 09-2002. He 

acquires his 60th month of railroad service 06-2003. The date of filing at 

RRB is 09-03-2004. His ABD will be 09-2004. (No retroactivity for age 

reduced annuities.) However, tier 1 age reduction will be counted from the 

first date of eligibility, 06-2003. Tier 2 age reduction will be counted from 

his ABD to the month before FRA, or age 65 if there is a service month 

before 09-1983. 

TOTAL AND PERMANENT DISABILITY ANNUITY

As with 10-year cases, the Disability section will make the rating determination. 

In order for an employee with 60 months of service after 1995 to be rated for a 

total and permanent disability, the employee will have to meet social security 

disability rules.

• The employee will have to have an SSIS.
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• The employee will have to meet the 20 in 40 rule.

• The tier one will not be age reduced.

• The effective date of the tier 2 will be the later of: the ABD; the first full 

month the annuitant is 62; or the filing date. The age reduction will be 

computed from the effective date through the month before FRA. If the 

employee has a service month prior to 09-1983, count age reduction 

months up to age 65.

HOW TO PROCESS 5-9 YEAR CASES

All 5–9-year cases will be paid on ROC or the PC programs. For the PC programs, the 

SSIS and RIB DOE will be manually entered for any case which is designated as a 5–9-

year case (TYPE COMP of 8). For ROC, this information is either filled in when the 

JADE connection is made or is entered manually by the examiner. Therefore, if the 

JADE connection is not working and you don’t have MBR data available, do not process 

a 5–9-year case until the JADE connection is restored. The DRC and age reduction 

computations will be processed by the programs. For disability cases, MAP referrals 

will be generated when the annuitant is 62 and eligible for the tier 2.

Appendix C - Aux VDB Benefit Entitlement Prior to 1981 Amendments

C1. Auxiliary Vested Dual Benefit (VDB) Entitlement Prior To 1981 Amendments 

(P.L. 97-35)

Public Law 97-35 eliminated the payment of auxiliary vested dual benefits to 

employees if the benefit was not authorized for payment as of Aug 13, 1981. This 

appendix explains entitlement requirements to auxiliary vested dual benefits as they 

were prior to the enactment of P.L. 97-35.

C2. Employee On The Rolls On 12-31-74

An employee who is entitled to a wife’s, husband’s, widow's or widower's, or 

parent's benefit at SSA on December 31, 1974, or is the wife, widow, dependent 

husband, or dependent widower of a person who was fully insured under the Social 

Security Act on December 31, 1974 is also vested for a vested dual benefit. 

However, if the employee is the wife or dependent husband of an insured person, 

that person must have filed for an RIB/DIB before a vested dual benefit amount can 

be computed for the employee.

See sec. C3 for a definition of the terms wife, husband, widow and widower and for 

instruction on developing proofs.
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NOTE 1: If an employee filed an application before 1-1-75 and had a beginning 

date before 1-1-75 he is considered to be on the rolls on 12-31-74, even though his 

annuity may not have been awarded until after that date.

NOTE 2: A non-dependent male employee is not entitled to a vested dual benefit 

on his wife's wage record.

A female employee who is entitled to a wife's transitional benefit under the SS Act is 

also entitled to a vested dual benefit. This transitional wife's benefit is treated in the 

same manner as a wife's benefit based on the wage record of her husband who is 

insured under the regular provisions.

A female employee annuitant can get a wife's transitional benefit if her husband is 

transitionally insured and she also attained age 72 before 1969.

C3. Employee On The Rolls After 12-31-74 And Eligible For An SS Benefit On

Other Than Own Wage Record

An employee who was not on the rolls before 1-1-75 and who was not fully insured 

under the SS Act as of 12-31-74 based on his own wage record can only receive 

vested dual benefits if (s)he meets the RR requirements and is the wife, widow, 

dependent husband, or dependent widower of a person who was fully insured 

under the SS Act as of 12-31-74. In addition, if the employee is the wife or 

dependent husband of the fully insured person, that person must have filed for an 

SS benefit for the employee to be eligible for an SS benefit on that wage record. 

Therefore, the vested dual benefit cannot be paid prior to the beginning date of the 

wage earner's RIB/DIB benefit.

NOTE: A non-dependent male employee cannot be vested based on his wife's 

wage record. The terms "wife" and "husband" are used as defined in RCM 1.3.1 - 

1.3.3 and "widow" or "widower" as defined in RCM 2.1.1 - 2.1.3. The terms "wife" 

and "widow" under the SS Act also include divorced wives (except when eligibility 

for a transitional wife's benefit is involved) and surviving divorced wives, 

respectively. To be eligible as of 12-31-74 the "wife" or "widow" must be finally 

divorced from the WE or deceased WE and have been married to him for a period 

of at least 20 years immediately before the date the divorce became final.

Before paying the VDB based on the employee's status as the spouse or widow(er) 

of an insured person, it is necessary to develop proof of marriage, proof of death, 

and any other evidence needed to award a spouse or widow(er) SS benefit. Livingwith is not a requirement for the payment of a spouse SS benefit.

Normally, if an SS benefit is being paid, it is safe to assume that the necessary 

proofs were developed at SSA. The VDB can be paid from the SS DOE without 

further development action. However, if a divorced wife's or widow's SS benefit is 

being paid from 1-1-79 or later, develop evidence showing the date of marriage and 

date the divorce became final. Although a divorced wife's or widow's SS benefit can 
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be paid effective 1-1-79 or later if she was married to the WE or deceased WE for 

only 10 years, the marriage must have lasted for 20 years in order to pay a divorced 

wife's or widow's vested dual benefit. This is because 20 years of marriage was a 

requirement for paying a divorced wife's or widow's benefit on 12/31/74.

The employee can be entitled to a vested dual benefit in 2 different ways:

A. The employee is entitled to a vested dual benefit if (s)he:

1. Is the wife, widow, dependent husband, or dependent widower of a 

person who is fully insured under the SS Act as of 12-31-74;

OR

Is eligible for a transitional wife's benefit under the SS Act as of 12-31-

74;

2. Has at least 10 years of RR service as of 12-31-74.

AND EITHER HAS:

• Some RR service in 1974;

OR

• A C/C on 12-31-74 or on his ABD;

OR

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

B. If the employee has at least 10 years of RR service but less than 25 years of 

RR service as of 12-31-74, no RR service in 1974 and no C/C on 12-31-74 

or on his ABD, the employee is vested if (s)he:

1. Has at least 10 years of service as of 12-31-74;

AND

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

was fully insured under the SS Act by the end of the year before 1974 

in which RR service was last performed by the employee.

If the annuitant is entitled to a vested dual benefit because (s)he is the wife 

or dependent husband of a person who is fully insured under the SS Act as 

of 12-31-74 (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 vested 

dual benefit cannot be paid prior to the DOE of the wage earner's SS benefit.
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The earliest point at which the annuitant would be eligible for an SS benefit 

based on someone else's wage record is:

• Age 62 if (s)he is eligible for a wife's or husband's benefit at SSA.

• Age 60 if (s)he is eligible for a widow(er) or remarried widow(er)'s benefit at 

SSA.

• Age 50 if (s)he is eligible for a disabled widow(er)'s benefit at SSA.

• Any age if she is eligible for a mother's insurance benefit based on having in 

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

deceased husband's E/R at SSA.

NOTE: If the wage earner is a deceased RR employee and RRB has jurisdiction 

of survivor benefits, SSA would not pay a benefit on the same wage record. 

Therefore, no widow(er)'s VDB is payable to the employee based on that wage 

record.

C4. One-Half Support Requirement For Husbands And Widowers

A male employee can receive a vested dual benefit as the husband or widower of 

person insured under SSA Act only if he meets the one-half support requirement 

under SS Act rules (see SSCM 2628). DO NOT use the one-half support rules 

outlined in RCM Chapter 4.7 since those rules are not the same as SS Act rules.

The vested dual benefit is calculated using the benefit to which the husband or 

widower would have been entitled under the SS Act on 12-31-74. Since 1/2 support 

was a requirement for paying husband's and widower's benefits as of December 31, 

1974 the vested dual benefit cannot be paid to employees who do not meet the 

one-half support requirement.

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

• At the beginning of the wage earner's period of disability, or

• At the time the wage earner became entitled to an RIB, or

• At the time the wage earner became entitled to a DIB, or

• At the time the wage earner died.

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

requirement must be met unless "good cause" can be established per SSCM 2634.

When SSA is paying the employee a husband/widower benefit, ask SSA if 

dependency was established. If so, request copies of SSA's proof(s) used to 

establish one-half support and handle the case accordingly.
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Establish the DOE of a husband/widower VDB as shown in sec. 1.1.33. However, 

the DOE cannot be prior to the date the one-half support requirement is met.

EXAMPLE: The employee's wife is entitled to a DIB effective 11-1-73 based on a 

period of disability beginning 5-1-73. She attains age 65 in 2-1978. In this case, the 

support requirement can be met on 5-1-73, 11-1-73, or 2-1-78 (when the DIB is 

switched to an RIB.) If the employee has not filed proof of support by 11-1975 (two 

years after the DIB entitlement date), he can still become entitled to a VDB effective 

2-1-78 if the one-half support requirement is met on that date and the employee 

files proof of support by 2-1-80.

NOTE: If the employee submits proof that is not sufficient to establish one-half 

support under SS Act rules, prepare a formal denial letter on an AB-25 back. The 

decision that he does not meet the support requirement is an initial decision, and 

therefore, may be appealed.

C5. When Entitlement Ends

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

• The last day of the month before the month in which the employee dies;

• The last day of the month before the month of termination of entitlement to a wife's, 

husband's, mother's, or widow(er)'s benefit under the SS Act.*

*Note: The vested dual benefit 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 of 

SS benefit, the vested dual benefit must be recomputed if the SS benefit rate changes.