Spring 2024

PRE-RETIREMENT SEMINAR

Presented by the

Office of the Labor Member

U.S. Railroad Retirement Board
------- DISCLAIMER -------

Public Domain and use of RRB.gov content

We provide this resource for educational purposes to promote a better understanding of 

the railroad retirement and unemployment/sickness benefit programs and to address

current informational needs of the railroad community. As with other materials produced 

by RRB employees, this publication is available at RRB.gov and therefore in the public 

domain. Government works in the public domain may be freely distributed and copied as 

permitted by applicable law. Appropriate acknowledgement should be given if unaltered 

portions of this publication are repurposed by a third party. Such acknowledgement 

should include the publication date and link to the RRB web page where the original 

content is located. Additionally, when quoting RRB materials, a source citation should 

clearly indicate which text is provided by the RRB and which is not.

The RRB will not endorse, verify, nor be liable for any modifications made to information 

presented in the public domain. Likewise, RRB.gov content may not be used in a 

misleading manner or to state or imply an endorsement by the agency or its employees of 

a third party, commercial product, service, or activity.

RRB Seal

Although the agency seal is prominently visible at RRB.gov, it is not considered part of the 

public domain and is protected by the Copyright Act. Under 18 U.S.C. § 701, the use of 

agency seals is prohibited except as authorized under regulations made pursuant to law. 

As such, unofficial use of the RRB’s seal is prohibited unless written permission is granted 

by the agency’s Director of Administration (see 20 C.F.R. § 369).
PROGRAM CONTENTS 

1

SUBJECT PAGE

Slide 1 RETIRED EMPLOYEE AND SPOUSE BENEFITS 3

Slide 2 Retirement Benefits 4

Slide 3 Creditable Railroad Service 5

Slide 4 Military Service Creditable if... 6

Slide 5 Railroad Employee Taxes and Wage Bases 7

Slide 6 Form BA-6 8

Fact Sheet 1 What to Check on Form BA-6 9

Slides 7-8 Current Connection 11-12

Slide 9 TIER I 13

Slide 10 TIER II 14

Fact Sheet 2 Tier II Amounts 15

Fact Sheet 3 RRB/SSA Comparison Chart 16

Slide 11 Supplemental Annuities 17

Slide 12 Employees with less than 30 YEARS OF SERVICE 18

Fact Sheet 4 When Can I Retire? - Employee 19

Fact Sheet 5 Regular Age Annuities Summary 20

Slide 13 Employees with 30 YEARS OF SERVICE 21

Slide 14 Employee Disability Annuities 22

Slide 15 SPOUSE ANNUITIES 23

Slide 16 Spouse Annuity Requirements 24

Slide 17 Spouse Eligibility - less than 30 YEARS OF SERVICE 25

Slide 18 Spouse Eligibility - Child-in-Care Provisions 26

Fact Sheet 6 When Can I Retire? - Spouse 27

Slide 19 Spouse Eligibility - 30 YEARS OF SERVICE 29

Slide 20 Divorced Spouse Requirements 30

Slide 21 Property Settlements 31

Slide 22 Spouse Tier Components 32

Slide 23 WORKING AFTER RETIREMENT 33
PROGRAM CONTENTS 

2

 SUBJECT PAGE

Slide 24 Working after Retirement 34

Slide 25 TIER I Earnings Deductions 35

Slide 26 TIER II Earnings Deductions 36

Slide 27 Disability Work Restrictions 37

Slide 28 SURVIVOR BENEFITS 38

Slide 29 Insured Status 39

Slides 30-31 Survivor Annuities 40-41

Slide 32 Survivor Tier Components 42

Fact Sheet 7 When Can A Widow(er) Retire? 43

Fact Sheet 8 Widow(er)’s Initial Minimum Amount (WIMA) 44

Slide 33 Survivor Earnings Restrictions 45

Slide 34 Lump-Sum Death Benefit 46

Slide 35 ITEMS AFFECTING ALL RETIREMENT AND SURVIVOR ANNUITIES 47

Slide 36 Annuity Beginning Dates 48

Slide 37 Filing an Application 49

Slide 38 Filing for Social Security Benefits 50

Slide 39 Cost-of-Living Adjustments (COLAs) 51

Slide 40 Income Taxes 52

Slide 41 Appeals Process 53

Slide 42 Retirement Health Insurance 54

Slide 43 Medicare 55

Slide 44 Self-Service Options 56

Slide 45 Protect Yourself From Fraud 57

Slide 46 RRB.gov 58

Slides 47-57 UNEMPLOYMENT AND SICKNESS BENEFITS 59-70

Glossary end pages
RETIRED EMPLOYEE 

AND

SPOUSE BENEFITS

1

• Retirement benefits can be paid to railroad employees based on age or 

disability.

• Benefits can be paid to the retired employee’s spouse based on age or 

caring for the employee’s minor or disabled child.

• Benefits may also be payable to an employee’s divorced spouse based

on age, even if the employee has not retired.

3
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

• Retirement annuity

‐ Age

‐ Total disability

‐ Occupational disability

• Supplemental annuity

• Spouse annuity

RETIREMENT BENEFITS

2

• A railroad retirement benefit is called an annuity.

- These are monthly payments.

- Payable on the first business day of the month for the previous month.

- Made up of one or more components called tiers.

• An annuitant must be alive the entire month for an annuity to be

payable for that month.

4
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

CREDITABLE RAILROAD SERVICE

• Compensation from any covered railroad employer, 

including unions

• Credit for any month employee worked, even if employee 

worked only one day

• Minimum railroad service requirement for benefits is

5 years (60 months) performed after 1995

• Otherwise, need 10 years (120 months) of creditable 

railroad service

3

• Compensation can include earnings, vacation pay, pay for time lost, etc.

• Can receive credit in personal injury settlements, or other pay for time lost

situations, if allocated to specific months.

- In these cases, a service month can only be credited if compensation allocated for that 

month is at least 10 times the daily rate of pay.

- Pay for time lost applies only to months lost due to that injury.

• Additional service months can sometimes be deemed when employee doesn’t

actually work in every month of a year. During a deemed service month, the

employee must be:

- In an employment relation with a covered employer (on approved leave of absence), or

- An employee representative.

• Local lodge service is creditable if the compensation is at least $25/month and 

the work was preceded by creditable service to a covered employer.

• If an employee does not meet the minimum service requirement, railroad 

retirement credits are transferred to the Social Security Administration at

the time of their retirement or death.

5
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

MILITARY SERVICE CREDITABLE IF...

• Active duty is preceded by rail service in same or 

preceding year, 

– AND –

• Employee entered involuntarily or during war or 

national emergency.

• If used by the RRB, cannot be used as quarters of 

coverage to qualify under social security

4

6

• Compensation credited:

Years after 1974 Up to social security maximum

1968 – 1974 $260 per month

1937 – 1967 $160 per month

• Creditable military service can be used to meet minimum 

service requirements – 10 years, or 5 years performed 

after 1995.

• Veterans encouraged to submit proof of military service to RRB 

well in advance of retirement.

WAR AND NATIONAL EMERGENCY PERIODS

Persian Gulf/Current Conflict – August 2, 1990 to date not yet determined

Korea/Vietnam – December 16, 1950 to September 14, 1978

World War II – September 8, 1939 to June 14, 1948
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

RAILROAD EMPLOYEE TAXES AND WAGE BASES FOR 2024

5

TIER I

RAILROAD

RETIREMENT

MEDICARE

HOSPITAL

INSURANCE TIER II

TAX RATE 6.20% 1.45% 4.90%

WAGE BASE $168,600 NO CAP $125,100

2024 tax on employee earning $168,600 is $19,027.80 

• Tier I tax rate and wage base same as under social security. 

• An additional 0.9% in hospital insurance taxes (2.35% in total) applies

to an individual’s income exceeding $200,000, or $250,000 for a married

couple filing a joint tax return. While employers will begin withholding

the additional Medicare tax as soon as an individual’s wages exceed the

$200,000 threshold, the final amount owed or refunded will be calculated

as part of the individual’s federal income tax return.

• Employer tier I tax rate and wage base same as for employee. However,

in 2024 employer pays tier II tax of 13.10% on $125,100 base. The 2024

employer tax on an employee earning $168,600 is $29,286.00. 

• Employer and employee tier II rates are based on the ratio of certain asset 

balances to the sum of benefits and administrative expenses.

• If excess tax withheld from two employers, credit may be due employee.

- Claim credit for excess tier I taxes with IRS Form 1040.

- Claim credit for excess tier II taxes using IRS Form 843.

- See IRS publication 505, Tax Withholding and Estimated Tax (IRS.gov).

7
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

FORM BA-6

• Issued every June to those with creditable railroad 

compensation in previous year

• Provides current and cumulative record of railroad service

and compensation

• Shows pay that was subject to taxes, not amount of taxes

• If employee’s address changes, they should always

notify the RRB and their employer

• Indicates if employee is qualified to claim unemployment

or sickness benefits

6

• Form BA-6 also shows deemed service months and miscellaneous 

compensation, such as taxable sickness payments.

- Additional service months may be deemed in some cases where an employee does

not actually work in every month of the year.

- The employee’s compensation for the year, up to the tier II maximum, must exceed

an amount equal to 1/12 of the tier II maximum multiplied by the number of

service months actually worked.

- An employee may never be credited with more than 12 service months in any

calendar year.

• Form BA-6 reflects creditable military service, if previously reported to the RRB. 

• If an employee disagrees with any information on Form BA-6, they should

notify the RRB as early as possible. An employee has 4 years to protest any 

discrepancies in the record.

- Correspondence reporting inaccuracies must include employee’s social security 

number and any supporting documentation (copies of pay stubs). Mail to RRB 

headquarters: Protest Unit – CESC, 844 North Rush Street, Chicago, IL 60611-1275

• Go to RRB.gov/BA6 for detailed information on reviewing your BA-6.

8
EXAMPLE 

ONLY

CERTIFIED 01-15-2023

2022 CERTIFICATE OF SERVICE 

MONTHS AND COMPENSATION

SERVICE AND COMPENSATION REPORTED 

FOR PERIOD ENDING DECEMBER 31, 2022

FORM BA-6 (6-23)

SERVICE AND COMPENSATION ON RECORD FOR REVIEW PERIOD

SEPARATION ALLOWANCE/

SEVERANCE PAYMENT

SERVICE MONTHS

PROFILE*

TAXABLE AMOUNT COMPENSATION 

AMOUNT J 

1 

1 

1 

F 

1 

1 

1

M 

1 

1 

1 

A 

1 

1 

1 

M 

1 

1 

1

J 

1 

1 

1

J 

1 

D

1

A 

1 

D 

1

S 

1 

1 

1

O 

1 

1 

1

N 

1 

1 

1

D 

1 

1 

0

TOTAL

12

12

11

2022 120,600.00 

116,250.00 

106,475.00 

2021

2020

2019 55,375.00 0 0 0 0 0 0 0 1 1 1 1 1 05

*1 - A reported month; 0 - A month not reported; D - A “deemed” month

CAREER TOTAL RETIREMENT RECORD

SEPARATION ALLOWANCE/

SEVERANCE PAYMENT SERVICE MONTHS

EMPLOYEE

TAXABLE CONTRIBUTIONS

AMOUNT

COMPENSATION

AMOUNT

REPORTED DEEMED MILITARY TOTAL

987,900.00 205 2 12 219 42,700.00 

YOUR 2022 REPORTING EMPLOYER(S) 

The service and compensation shown on this form for 2022 were gathered from a report(s) received from the 

following employer(s): CRESCENT RAILROAD COMPANY 

BIRTH DATE SEX 

07-1970 M

RRB OFFICE SERVING YOUR AREA 2022 RUIA EARNINGS 

123 CENTRAL AVENUE

WINDY CITY, IL 60000

PHONE (877) 772-5772

QUALIFIED QUALIFYING 

EARNINGS

Y $21,060

CREDITABLE

COMPENSATION YEAR 

CREDITABLE

COMPENSATION

0123 ****

JB HARRIS 

123 MAIN ST 

LOGANVILLE, IL 60000

c

d e

f

g

h

i 

1. Name/address

2. Birth date

3. Sex

4. Last 4 years of service, by month, and

compensation

Be sure to check these items: 

5. Career total compensation, separation allowance/severance

payments, service, and employee tier II contributions

6. Reporting employer(s) for year

7. Local RRB office

8. RUIA Earnings

U.S. RAILROAD RETIREMENT BOARD

ERHARD CHORLÉ, JOHN BRAGG, THOMAS JAYNE

MEMBERS

9
Always notify the Railroad Retirement Board if your address changes during the year. 

Form BA-6, Certificate of Service Months and Compensation, is a statement of your service and compensation record at the Railroad 

Retirement Board (RRB). We sent you this form because you performed railroad service and/or received railroad compensation in 2022. 

This certificate shows you your service under the Railroad Unemployment Insurance Act and the Railroad Retirement Act (RRA) and 

your compensation under the RRA. We use this information shown to determine whether you qualify for benefits and the amount of 

those benefits. It does not show taxes deducted from your earnings under the Railroad Retirement Tax Act (RRTA). 

NOTE: Compensation amounts on this certificate, which were reported to the RRB by your employer(s), may be less than amounts on 

your year-end payroll stub and Internal Revenue Service (IRS) Form W-2. 

You can request a history statement online by clicking on the button labeled Request Documents at RRB.gov/myRRB. 

For detailed information about how to review your Form BA-6, go to RRB.gov/BA6.

HOW TO FILE A PROTEST – If you believe your 2019-2022 service and/or compensation information is incorrect, you may file a 

formal protest with the RRB in writing or complete Form G-70, Protest Record of Service Months and Compensation. Get the form from 

our website or any RRB office. YOU MUST FILE A PROTEST WITHIN FOUR YEARS OF THE DATE THE SERVICE AND/

OR COMPENSATION WAS TO BE REPORTED. When filing a protest, always include: 

• Your social security number

• The employer’s name

• A clear description of the error you believe has occurred

• Your duty station, department and occupation

You must submit evidence with your protest. Without evidence, we have no basis on which to request a correction if your 

employer does not agree with you. Check stubs are the best evidence to submit; your IRS Forms W-2 are useful but not as 

detailed as check stubs. 

Send your protest to Protest Unit-CESC, U.S. Railroad Retirement Board, 844 N. Rush Street, Chicago, IL 60611-1275. 

If you protest the information in our records after the four-year period, we will not correct that information unless exceptional 

circumstances exist. The following dates apply to the information on this certificate: 

Earnings Year 2022 2021 2020 2019 

Last Date to File a Protest February 28, 2027 February 28, 2026 February 28, 2025 February 29, 2024 

NOTE: Before filing a formal protest with the RRB, you may find it helpful to ask your employer about the reported amounts that you 

think are incorrect. However, keep in mind that discussing your earnings with your employer is not the same as filing a formal protest 

with the RRB and does not extend the time for filing a formal protest. 

NEWS YOU CAN USE

• File Form SI-1a/b, Application for Sickness Benefits and Statement of Sickness, within 10 days of the first claimed day of

sickness. You may lose benefits if your application is filed late.

• Submit proof of your age and military service as permanent records for RRB files. If you performed active military service in a

branch of the Armed Forces, that service may increase or provide eligibility for benefits. Submit a copy of your latest DD-214 (or

other service evidence) to your nearest RRB office for a determination of creditability. Your local RRB office will explain how to

obtain acceptable evidence for proof of military service and age.

• Create a myRRB account at RRB.gov/myRRB to get annuity estimates, apply for or claim unemployment benefits, claim

sickness benefits, view RUIA account statement, and review service and compensation history.

• RRB publications covering benefits and other related topics are available at RRB.gov under the Benefits tab of the main menu. In

addition, frequently asked questions are answered online at RRB.gov/FAQ.

• Call us toll-free (877-772-5772) and use the automated menu for unemployment and sickness claim information.

• Visit your local RRB office to speak with an RRB representative or pick up informational pamphlets. See the “RRB Office

Serving Your Area” section on the front of this form for the phone number or address. Although most items can be handled by

telephone, our field staff will be glad to help you with any railroad retirement matter. Please phone ahead to arrange a convenient

time to speak with a representative.

RRB Representatives Available: Monday - Friday 9:00 a.m. to 3:00 p.m.; Closed Federal Holidays

10
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

• Current connection needed for:

‐Survivor benefits

‐Occupational disability annuities

‐Supplemental annuities

• Not needed for any other type of annuity

‐such as a 60/30 retirement annuity

CURRENT CONNECTION

U.S. RAILROAD RETIREMENT BOARD | RRB.gov

7

• Current connection can only be broken by working for a nonrailroad 

employer after leaving railroad service and before railroad retirement 

annuity begins.

• Once a current connection is established at the time of retirement, 

including disability cases, an employee never loses it, no matter what kind 

of work is performed thereafter.

• Contact RRB field office with any specific questions about current 

connection.

11
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

CURRENT CONNECTION (CONTINUED)

• Under certain conditions, can be deemed 

for supplemental and survivor benefits

• Self-employment and certain federal 

employment do not break a current 

connection

8

• For current connection to be deemed, employee must have:

- separated from railroad industry involuntarily after October 1, 1975, 

- had at least 25 years of service at separation, AND

- must not have declined an offer of employment in the same class or craft in

the railroad industry regardless of the distance to the new position.

• A deemed current connection does not establish a current connection for

occupational disability annuities.

• Self-employment in an unincorporated business will generally not break a current 

connection; self-employment can break a current connection if the business is 

incorporated.

- Membership in a Limited Liability Corporation (LLC) is generally self-employment

and will not break a current connection.

- Employees hired by the members who own an LLC may break their current 

connection.

- Employment with a Subchapter “S” corporation is not self-employment and

will break a current connection.

• Work for the following U.S. government agencies will not break a current 

connection: Department of Transportation; National Transportation Safety

Board; National Mediation Board; Railroad Retirement Board; Surface 

Transportation Board; Transportation Security Administration; U.S. Coast Guard.

12
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

• Tier I approximates social security benefit payable if

all work had been performed under social security

• Employees with 10 years (120 months) of railroad 

service eligible for tier I 

• Employees with 5 years (60 months) of railroad service 

after 1995 but less than 10 years can receive tier I if 

they are also insured under social security based on 

combined railroad and social security earnings

TIER I

9

• Social security credits are combined with railroad retirement credits

in computing tier I.

- Calculated using social security formulas.

- Reduced for age if required.

- Reduced for social security benefits.

- May be reduced for certain pensions from work not covered by

social security after 1956, for those first eligible for a railroad

retirement annuity and a pension after 1985.

- If disability annuity and under full retirement age, may be reduced

for workers’ compensation or public disability benefits.

• Tier I is subject to garnishment for court-ordered child support or

spousal maintenance.

13
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

TIER II

• Paid in addition to tier I

• Considers railroad work only

‐ Computed under a separate formula

‐ Comparable to an industrial pension

‐ Reduced for age, if required

• Based on:

‐ 60 months of highest earnings (up to tier II maximum)

- AND -

‐ Total years of railroad service

10

ELIGIBILITY:

» Employees with 10 years (120 months) of railroad service;

» Employees with 5 years (60 months) of railroad service after 1995

but less than 10 years also eligible if at least age 62.

• Tier II is subject to garnishment and is also divisible as property if the RRB 

receives a court order (divorce decree, legal separation, or annulment) that 

complies with certain regulations.

TIER II FORMULA:

AVERAGE MONTHLY COMPENSATION X YEARS OF SERVICE X .007

»Maximum tier II creditable compensation:

14

- 2020 $102,300

- 2021 $106,200

- 2022 $109,200

- 2023 $118,800

- 2024 $125,100

This provides average monthly compensation (AMC) of $9,360.
ADDITIONAL SERVICE MAY PROVIDE 

HIGHER TIER II AMOUNT

The following illustrates the effect of additional years of service on tier II amounts.

It assumes a railroad employee had the maximum tier II creditable compensation

for the 5 years ending in 2023 when the average monthly compensation (AMC)

was $8,920. Even if an employee earns less than the maximum, additional service

would still increase the annuity proportionately.

$1,248.80

$1,561

$1,873.20

$2,185.40

$2,497.60

TIER II FORMULA = AMC x YEARS OF SERVICE x .007

20 Years 25 Years 30 Years 35 Years 40 Years

15
RRB 

MONTHLY ANNUAL MONTHLY ANNUAL 

Employee Age Annuity Being Paid* $4,310 $51,720 $1,810 $21,720

Spouse Annuity Being Paid $1,235 $14,820 $865 $10,380

Employee Age Annuity Awarded* $4,775 $57,300 $2,535 $30,420

Spouse Annuity Awarded* $1,770 $21,240 $1,270 $15,240

Disability Annuity Awarded $3,810 $45,720 $1,665 $19,980

Occupational Disability Annuity? YES YES NO NO

Full Annuity at 60 with 30 Years? YES YES NO NO

Widow(er) Annuity Being Paid $2,090 $25,080 $1,640 $19,680

Widow(er) Annuity Awarded $2,725 $32,700 $1,575 $18,900

SSA 

*Career rail employee with at least 30 years of service. (The RRB figures do not include 

 employees initially awarded an annuity based on disability.) 

NOTE: Annuity Being Paid reflects the average amount being paid to all individuals 

 in that particular category as of the end of fiscal year 2023. 

 Annuity Awarded reflects the average amount paid to individuals who were 

 newly awarded annuities in that particular category during fiscal year 2023. 

16 
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SUPPLEMENTAL ANNUITIES

•Supplemental annuity payable if:

‐25 years of railroad service, and

‐Railroad service began before 10-1-81, and 

‐Current connection

11

• Supplemental annuity payable at:

- Age 60 if 30 years of service;

- Otherwise age 65.

• Maximum monthly supplemental annuity is $43.

• If employee also receives private pension paid for entirely or in part

by a railroad, supplemental annuity subject to reduction.

• Private pensions paid by railway labor organizations will not cause a 

reduction in supplemental annuities.

• Supplemental annuities are subject to division as property if the RRB 

receives a court document (such as a divorce decree, legal separation,

or annulment) that complies with certain regulations.

17
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

EMPLOYEES WITH LESS THAN 30 YEARS OF SERVICE

• Reduced tier I and tier II amounts payable at 62

‐ Age reduction varies depending on year of birth

- OR -

• Unreduced tier I and tier II amounts payable at full 

retirement age

‐ Full retirement age varies depending on year of birth 

12

• For employees with less than 30 years of service, increased age reductions 

affect both tier I and tier II. However, for those employees who had any 

railroad service before August 12, 1983, the maximum tier II reduction remains

20% and the full retirement age remains 65 for tier II purposes.

• Employees with 5-9 years of service after 1995 must have a social security 

insured status (using railroad and social security earnings) for tier I. Generally,

10 years of combined earnings fulfills this requirement.

• If an employee has less than 10 years of railroad service and is already entitled

to an age-reduced social security benefit, the age reduction in their tier I

will be based on the age reduction applicable on the beginning date of the

employee’s social security benefit, even if the employee is already of full

retirement age on the beginning date of their railroad retirement annuity.

• Regardless of the amount of railroad service, in most instances an employee 

who has reached full retirement age and is still working for a railroad should 

file for social security benefits if eligible. Social security will pay full benefits as 

work restrictions no longer apply. Check with an RRB field office to confirm 

advantage of filing.

• The next page covers age reductions for employees who retire with less than 

30 years of service.

18
AN EMPLOYEE

BORN IN*

AT AGE 62,

ANNUITY

REDUCED BY

OR

NO ANNUITY REDUCTION

IF RETIREMENT AGE

IS AT LEAST**

1957 27.50% 66 and 6 months

1958 28.333% 66 and 8 months

1959 29.167% 66 and 10 months

1960 or later 30.00% 67

*A person attains a given age the day before their birthday, and those born on the first or

 second day of a month are eligible for an annuity beginning date on the first of that month.

**For an employee with less than 10 years of railroad service – If they are already entitled to

 an age-reduced social security benefit, the age reduction applied to their tier I will be based

 on the age reduction applicable on the beginning date of their social security benefit, even if

 they are already full retirement age on their railroad retirement annuity beginning date.

NOTE – Employees with any railroad service before August 12,1983: Tier II reduction remains

20% and full retirement age remains 65 for tier II purposes.

19
YEARS OF SERVICE REDUCED ANNUITY FULL ANNUITY

5 AFTER 1995 AGES 62-66* AGES 66-67*

10 - 29 AGES 62-66* AGES 66-67*

30+ NONE AGE 60

*Depending on the employee’s year of birth. For those with less

than 10 years of railroad service who are already entitled to an

age-reduced social security benefit, the tier I age reduction is based 

on the reduction applicable on the beginning date of their social 

security benefit, even if the employee is already of full retirement 

age on the beginning date of their railroad retirement annuity.

AGE REDUCTIONS ARE PERMANENT.

20
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

EMPLOYEES WITH 30 YEARS OF SERVICE

•Employees retiring at age 60 or older

‐No age reduction in tier I or tier II

•Commonly referred to as 60/30

13

• Although employees retiring at 60 with 30 years of service have no

age reduction, work deductions still apply until they reach their full 

retirement age.

21
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

EMPLOYEE DISABILITY ANNUITIES

14

TYPE OF

DISABILITY AGE YEARS OFSERVICE

CURRENT 

CONNECTION

TOTAL Under full retirement age 10

or 5 after 1995 NO

OCCUPATIONAL

Under 60 20 YES

60 to full retirement age 10 YES

TOTAL DISABILITY means a physical or mental impairment that prevents any regular employment.

- May qualify for early Medicare coverage and lower federal income tax on annuity. 

OCCUPATIONAL DISABILITY means a physical or mental impairment preventing the employee

from being able to work their regular railroad occupation and the condition is expected to

last at least 12 months or longer.

- Generally, the job the employee worked the longest in the last 5 years.

• Employees filing for disability are required to submit medical evidence supporting their claim.

• Five-month waiting period after month of onset of disability before benefits can begin; however, 

sickness benefits may be payable during waiting period. 

- Waiting period is five full months; employees need not wait until the end of the waiting 

period to file an application.

• Employee can be in compensated service while filing a disability application as long as the

service terminates within 90 days from date of filing and is not active service.

• For those with less than 10 years of railroad service, the employee must meet social security’s 

insured status and generally have 20 quarters of coverage (railroad and/or social security) in the 

last 40 quarters preceding disability in order to receive an annuity.

• No age reduction if employee has at least 10 years of service. 

- There is no tier I age reduction for those with less than 10 years of service; however, tier II

is not payable until the employee attains age 62 and is reduced for early retirement. 

• In order for the supplemental annuity to be paid or for an eligible spouse to receive an annuity,

a disability annuitant under full retirement age must relinquish rights.

22
SPOUSE ANNUITIES

15

• Spouses can be male or female, and/or in same-sex marriages.

• The spouse of an employee is not eligible for a railroad retirement annuity 

solely on the spouse’s own disability.

23
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SPOUSE ANNUITY REQUIREMENTS

•Employee is retired, receiving annuity, and 

meets age requirements

•Spouse married to employee for at least 1 year 

and meets age requirement, or is natural 

parent of their child

‐ Spouse must give up any railroad employment

16

• Exceptions to 1 year marriage requirement:

- Spouse was eligible for a railroad retirement widow(er)’s, parent’s, or disabled

child’s annuity in the month before marrying the employee; or

- Spouse was previously married to the employee and received a spouse annuity.

• Marriage does not have to take place before retirement or leaving railroad 

work in order for spouse annuity to be payable.

• If the employee retired on a disability annuity, the spouse becomes eligible

for an annuity when the employee reaches regular full retirement age.

- In addition, the spouse must meet the age requirement or have the employee’s

minor or disabled child in care.

• An employee disability annuitant under full retirement age must relinquish 

rights to return to work for any rail employer before a spouse annuity may

be paid.

24
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SPOUSE ELIGIBILITY (LESS THAN 30 YEARS OF SERVICE)

•Spouse of employee who retired at 62 or 

older with less than 30 years of service

‐ Receives reduced annuity at 62

- OR -

• Unreduced annuity at full retirement age 

(varies depending on spouse’s date of 

birth), or any age with child in care

17

• In order for a spouse to qualify for an annuity based on caring for a child,

the child must be under 18 or have become disabled before age 22.

- A child in care does not receive their own payment.

• The chart on page 27 illustrates spouse’s age reduction if employee retires 

with less than 30 years of service.

• If employee retired with less than 10 years of service, 5 of which are after 

1995, reduced tier II amount is payable to spouse at 62. Reduced tier I 

amount is only payable to spouse if employee had insured status under 

social security based on combined railroad and social security earnings.

• If employee has less than 10 years of railroad service and the spouse is 

already entitled to an age-reduced social security benefit, the age reduction 

in their tier I will be based on the age reduction applicable on the beginning 

date of the spouse’s social security benefit, even if the spouse is already of 

full retirement age on the beginning date of their railroad retirement 

annuity.

25
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SPOUSE ELIGIBILITY CHILD-IN-CARE PROVISIONS

• For a spouse to be eligible based on 

child-in-care, the child must be:

‐ Natural or adopted child (or stepchild) of the 

employee; and

‐ Dependent on the employee; and

‐ Unmarried; and

‐ Under age 18, or totally disabled before age 22

18

• Under child-in-care provisions, the employee’s spouse may also qualify

for a spouse annuity if they are caring for a dependent grandchild of the 

employee, and both of the grandchild’s parents are deceased or disabled.

- A child in care does not receive their own payment.

26
A SPOUSE

BORN IN*

AT AGE 62, ANNUITY

REDUCED BY**

OR

NO ANNUITY REDUCTION

IF RETIREMENT AGE

IS AT LEAST

1957 32.50% 66 and 6 months

1958 33.333% 66 and 8 months

1959 34.167% 66 and 10 months

1960 or later 35.00% 67

These reductions also apply to divorced spouses.

*A person attains a given age the day before their birthday, and those born on the first or

second day of a month are eligible for an annuity beginning date on the first of that month.

**For the spouse of an employee who has less than 10 years of railroad service – If the spouse is

already entitled to an age-reduced social security benefit, the age reduction in their tier I will be

based on the age reduction applicable on the beginning date of their social security benefit,

even if they are already full retirement age on their railroad retirement annuity beginning date.

NOTE – If the employee had any rail service before August 12, 1983, the spouse’s tier II reduction

remains 25% and their full retirement age remains 65 for tier II purposes.

27

U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SPOUSE ELIGIBILITY (30 YEARS OF SERVICE)

• FOR SPOUSE OF 60/30 EMPLOYEE

‐If the employee’s annuity began after 2001, 

spouse can receive full annuity at 60 or any 

age with minor or disabled child in care

19

• In order for a spouse to qualify for benefits based on caring for a child, the 

child must be under 18 or have become disabled before age 22.

– A child in care does not receive their own payment.

• If employee was awarded a disability annuity, has attained age 60, and has 

30 years of service, the spouse can receive a full annuity at age 60, 

regardless of whether the employee annuity began before 2002, as long as

the spouse’s annuity beginning date is after 2001. 

29
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

DIVORCED SPOUSE REQUIREMENTS

• Employee must be 62 or over

• Divorced spouse

‐ Married to employee at least 10 years

‐ Not presently married

‐ Age 62 or over

• Divorced spouse receives tier I only

‐ If employee retired with 5 years of service after 1995,

annuity payable only if employee had insured status

under social security

20

• A divorced spouse must have been married to the employee for a period

of at least 10 years immediately before the date the divorce became final.

• The employee need not be receiving an annuity for a divorced spouse to 

receive one as long as the employee is at least 62 and fully insured under

the Social Security Act and they have been divorced for at least 2 years.

• Payment of divorced spouse annuity has no effect on annuity payable to 

employee or current spouse.

• Child in care does not qualify divorced spouse for an annuity.

• A divorced spouse annuity beginning before full retirement age is reduced 

even if the employee has 30 years of service.

30
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

PROPERTY SETTLEMENTS

• Tier I is not subject to division

• Employee tier II and supplemental annuity 

components are subject to property 

settlements in divorce, annulment, and

legal separation cases

21

• The RRB must honor court orders that treat non-tier I annuity components

as property subject to division in proceedings related to divorce, annulment, 

or legal separation, and which order the RRB to make payments to the 

divorced spouse.

- The Attorney’s Guide to the Partition of Railroad Retirement Annuities covers this 

subject in greater detail and is available at RRB.gov under the Resources tab (Legal 

Information).

• In separation or divorce cases, there is no limit on the amount subject to 

division of employee’s tier II and supplemental annuity components. 

• Payment of a partition amount as part of a court-ordered property 

distribution can be made, or continue, after the employee’s death unless a 

court order requires termination of payments upon the employee’s death.

• Court-ordered payment of a partition amount can be made even if no 

survivor benefits are payable by the RRB.

• Partitions may be paid to a divorced spouse even if the employee is not 

receiving an annuity, under the condition that both the employee and 

divorced spouse are 62 and have been divorced for at least 2 years.

31
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SPOUSE TIER COMPONENTS

• TIER I

‐ 50% of employee tier I

‐ May be reduced for age or early retirement

‐ Reduced for social security benefit or other railroad retirement 

annuity

‐ May be reduced for public service pension based on own 

earnings

• TIER II

‐ 45% of employee tier II

‐ Not payable to divorced spouses

‐ May be reduced for age or early retirement

22

TIER I

• Reduction for public pension is 2/3 of pension amount based on own 

earnings. Generally doesn’t apply if employment on which pension is based 

was covered under social security throughout last 60 months of public 

employment or if spouse eligible for pension before December 1982.

• May be reduced if employee under full retirement age receiving disability

annuity and workers’ compensation or public disability benefits.

• Spouse not reduced in 60/30 disability cases when spouse annuity 

beginning date is January 1, 2002, or later.

TIER II

• May be payable even if no tier I amount payable; for example, if spouse

tier I reduced to zero due to social security or public pension entitlement.

32
WORKING AFTER 

RETIREMENT

23

• The annuity amount payable to a retiree may be affected by work/earnings.

Factors to consider include:

- earnings deductions (tier I and tier II); and

- work restrictions for disabled annuitants.

33
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

WORKING AFTER RETIREMENT

•Annuity not payable if employee or spouse is 

working for railroad or rail union

•All employees and spouses under full 

retirement age are subject to work deductions 

for excess earnings

•Work for last pre-retirement nonrailroad

employer is subject to work deductions, 

regardless of age

24

• Earnings include all wages received for service plus any net earnings from 

self-employment. Interest, dividends, etc. not considered earnings for this 

purpose.

• Earnings of $25 or more a month by a local lodge employee will prevent 

payment of the annuity for that month.

• Employment beginning on or after the employee’s annuity beginning date 

will not break a current connection.

34

EMPLOYEE/SPOUSE BIRTH YEAR* FULL RETIREMENT AGE IS...

 1957 66 and 6 months

 1958 66 and 8 months

 1959 66 and 10 months

 1960 or later 67

*A person attains a given age the day before their birthday.
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

TIER I EARNINGS DEDUCTIONS

• Prior to full retirement age, some or all of tier I will be 

reduced if earnings are over certain amounts

‐ Reduction eliminated once full retirement age attained

• Prior to year full retirement age attained:

‐ Deduction of $1 for every $2 earned over annual exempt amount 

($22,320 in 2024)

• In year full retirement age is attained:

‐ Deduction of $1 for every $3 earned over annual exempt amount 

($59,520 in 2024)

‐ However, earnings only considered through month before full 

retirement age attained 25

• Work deductions apply to all employees and spouses under full retirement

age, regardless of the employee’s years of service. 60/30 annuitants are

subject to work deductions until they reach full retirement age.

• No deduction once full retirement age attained.

• Spouse is subject to tier I deduction not only for spouse’s excess earnings,

but possibly for employee’s as well.

• Spouse annuity not payable if employee annuity not payable.

• An annuity to a divorced spouse or a court-ordered partition payment may be 

made despite the employee’s work activity.

35
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

TIER II EARNINGS DEDUCTIONS

• If employee or spouse continues work for their last

pre-retirement nonrailroad employer (LPE):

‐ Tier I subject to deductions as explained on previous slide

‐ Tier II and supplemental payments reduced by $1 for each $2

of earnings

o Maximum reduction of 50%

‐ Tier II and supplemental payments affected by all earnings, 

regardless of amount

‐ Unlike tier I, tier II deductions continue after full retirement age

26

• Self-employment, and work that begins on the same day as the annuity 

beginning date, is not considered last pre-retirement nonrailroad

employment.

• A spouse annuity is subject to tier II deductions not only for the spouse’s 

earnings, but also for employee’s. However, spouse’s earnings have no 

effect on employee’s annuity.

36
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

DISABILITY WORK RESTRICTIONS 

• Work by disability annuitant must be consistent 

with disabled status

• Disability annuity not payable for any month

with earnings over $1,210 in 2024, except for 

disability-related work expenses

• All work activity must be reported

• Work restrictions apply to both total and 

occupational disability annuities

27

• Withheld payments restored if earnings for 2024 less than $15,125.

• Any work or earnings reviewed to determine whether it indicates

recovery from disability.

• Considered a disability annuitant until attainment of full retirement age.

37

A disability annuitant considering employment 

must first contact an RRB field office.
SURVIVOR

BENEFITS

28

• Survivor benefits include monthly annuities and lump-sum payments.

38
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

INSURED STATUS

•RRB pays survivor annuities if deceased railroad 

employee had: 

‐ 10 years of service, or at least 5 years after 1995

- AND -

‐ Current connection at retirement or death

• Otherwise, jurisdiction of any survivor benefits 

payable transferred to social security

29

• 10 years of service, or, if less than 10 years, at least 5 years after 1995 also 

required for lump-sum death benefits.

• Survivor annuities are based on combined railroad retirement and social 

security credits.

• Payable by either RRB or the Social Security Administration but not both, 

even if employee received benefits under both programs.

39
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SURVIVOR ANNUITIES

•Widow, Widower, Surviving Divorced Spouse, 

or Mother (Father)

‐ Age 60

‐ Ages 50-59 if disabled

o 5 month waiting period in most cases

‐Any age if caring for the employee’s minor or 

disabled child

30

40

WIDOW(ER): must be unmarried, unless the individual remarried under the conditions outlined 

below.* Generally, must have been married to employee for 9 months prior to employee’s 

death. Widow(er) can receive an annuity if caring for the employee’s child who is under age 18 

or disabled.

- Age reductions applied to tier I and tier II portions of widow(er)s’ annuities awarded before 

full retirement age. See chart on page 43.

DISABLED WIDOW(ER): must be totally disabled and unable to work in any regular employment. 

Disability must have begun within 7 years after death of employee or within 7 years after 

termination of annuity based on caring for employee’s child. Generally, a 9-month marriage 

requirement applies.

REMARRIED WIDOW(ER)*, SURVIVING DIVORCED SPOUSE, AND SURVIVING DIVORCED 

MOTHER (FATHER): receive tier I only, but payment of a partition amount to a former spouse as 

part of a property distribution can be made after employee’s death.

• Remarried widow(er) must have remarried

‒ after age 60, or 

‒ before age 60 but currently unmarried, or

‒ after age 50 and was entitled to a disabled widow(er) annuity before remarriage.

• Surviving divorced spouse must

‒ be unmarried unless the remarriage was after age 60, or age 50 if disabled.

‒ have been married to the employee for a period of at least 10 years immediately

before the date the divorce became final. 

• Surviving divorced mother (father)

‒ can receive an annuity if caring for employee’s child who is under age 16 or disabled.

‒ generally must be unmarried at the time of entitlement. In this case, 10-year marriage 

requirement does not apply.
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SURVIVOR ANNUITIES (CONT)

•Unmarried Child

‐ Under age 19 (if 18, must be attending no higher 

than secondary school)

‐ Age 18 or over if totally disabled before age 22

•Dependent Parent

‐ Age 60

‐ Meets certain other conditions

31

• Dependent grandchild can also qualify, if both the grandchild’s parents

are deceased or disabled.

• Parent must have been dependent on the employee for at least half of

the parent’s support.

• To learn more about qualifying children, contact the RRB.

41
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SURVIVOR TIER COMPONENTS

•TIER I

‐ Amount social security would generally pay, 

less any social security benefit

•TIER II

‐ Based on percentage of employee’s tier II

32

• Widow(er)s, surviving divorced spouses, and remarried widow(er)s receive 

unreduced tier I amount if annuity begins at full retirement age.

• As shown on the next page, full retirement age varies and the maximum age

reduction also varies depending on the widow(er)’s year of birth, and is 

20.36% for those born in 1962 or later.

• Tier I based on employee’s combined railroad retirement and social security 

credits. Reduced if employee had early retirement reduction.

• For widow(er)s, surviving divorced spouses, and remarried widow(er)s, tier I

may also be reduced by 2/3 of certain public pensions.

• Reduced for social security benefit or other railroad retirement annuity.

• If employee had less than 10 years of service but at least 5 years of service 

after 1995, tier II is payable to survivor. Tier I payable only if employee had

a social security insured status (using railroad and social security earnings).

- Generally, 10 years of combined earnings fulfills this requirement.

42
43

A WIDOW(ER)

BORN IN*

AT AGE 60, DEEMED

TO BE AGE 62. ANNUITY WILL

BE REDUCED BY

OR

NO ANNUITY

REDUCTION

IF RETIREMENT AGE

IS AT LEAST

1957 19.26% 66 and 2 months

1958 19.50% 66 and 4 months

1959 19.73% 66 and 6 months

1960 19.95% 66 and 8 months

1961 20.16% 66 and 10 months

1962 or later 20.36% 67

*A person attains a given age the day before their birthday, and a widow(er) born on the first day

of a month may be eligible for an annuity beginning date on the first of the month before their

birth month.

NOTE – The maximum age reduction for remarried widow(er)s and surviving divorced spouses is

 28.50% at age 60. The maximum age reduction for disabled surviving divorced spouses,

 disabled widow(er)s, and disabled remarried widow(er)s is also 28.50%.
< THE FOLLOWING INFORMATION RELATES TO THE CHART ABOVE. ALL FIGURES USED ARE FOR EXAMPLE ONLY. >

• Assumes:

– employee died last year

– first cost-of-living adjustment (COLA) of 3.6% tier I and 1.2% tier II

– future COLAs to also be 3.6% tier I and 1.2% tier II

• The $250 additional amount is reduced each year by the dollar amount of the increases

applied to tier I and tier II. For example, if tier I increases by $50 (3.6% cost-of-living) to

$1,450 and tier II increases by $3 (1.2% cost-of-living) to $253, the additional amount

will decrease by $53 to $197. The total amount payable of $1,900 will not change, and

the annuity payable will increase only when the tier I and tier II amounts (with their

subsequent cost-of-living increases) exceed $1,900.

• Assumes no reductions of any kind. If there are Medicare premiums, for example, total

amount is lowered for amount of premium. If premium increases from year to year,

total amount payable will be reduced by the increase in the premium.

WIMA: This amount equals combined tier I and tier II employee would have received

at time widow(er)’s annuity awarded.

► Determined by adding additional amount to widow(er)’s tier II

► Calculated before any applicable reductions, such as for age, earnings, social security.

44
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SURVIVOR EARNINGS RESTRICTIONS

•Rail work - Annuity not paid for any month with rail 

employment, including labor organizations

•Nonrail earnings - Deductions apply if earnings are 

over certain amounts

•Disabled widow(er)s (under age 60) and children -

No restrictions for nonrailroad work, but work 

activity could indicate recovery

•Most earnings must be reported

33

• Earnings deductions apply to entire survivor annuity. However, there are no 

special restrictions on last pre-retirement nonrailroad employer.

• Limitations do not apply to beneficiaries full retirement age or older.

• Prior to year full retirement age attained:

- Deduction is $1 for every $2 earned over annual exempt amount

($22,320 in 2024).

• In year full retirement age attained: 

- Deduction is $1 for every $3 earned over annual exempt amount

($59,520 in 2024).

- However, earnings only considered through month before full

retirement age attained.

• Deduction eliminated once full retirement age attained.

• In cases where the survivor is also a social security recipient, excess earnings 

deductions are coordinated between RRB and the Social Security 

Administration so that there is no double deduction.

45
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

LUMP-SUM DEATH BENEFIT

• Only payable if no survivor immediately eligible for 

annuity

• 10 years of service, or 5 years after 1995, and current 

connection required

‐ if less than 10 years, must also meet social security 

insured status requirements

‐ if employee did not have 10 years of service before 1975, 

lump sum limited to $255 and payable only to widow(er) 

living in same household and not eligible for annuity in 

month of employee’s death 34

• If monthly benefits immediately payable, no lump-sum benefit can be paid.

• If employee had at least 10 years of service on December 31, 1974, payable

to living-with widow(er) or payer of funeral expenses--$1,039 average.

• Unlike social security, not payable if annuity payable.

• The $255 amount same as under social security.

46
ITEMS AFFECTING 

ALL RETIREMENT AND 

SURVIVOR ANNUITIES

35

Aspects concerning employee, spouse, and survivor retirement annuities:

‐ Annuity beginning dates

‐ Filing an application

‐ Filing for social security benefits

‐ Cost-of-living increases

‐ Income taxes

‐ Appeals

‐ Health care (private insurance and Medicare)

‐ Self-service options

‐ Protecting personal information

47
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

ANNUITY BEGINNING DATES

• Employee and spouse annuities effective first day of 

month after:

‐ Age 60 attained (30 years of service)

‐ Age 62 attained (less than 30 years of service)

• Annuities effective first day of month full retirement age 

is attained:

‐ Less than 30 years of service

• Widow(er)s’ annuity effective beginning first day of 

month of employee’s death:

‐ Or first day of month widow(er) age 60, (50 if disabled)

36

• Employee and spouse annuities can’t start until employee off payroll of

railroad and union (if applicable).

• 6-month retroactive limit on full employee and spouse age retirements.

• Retroactivity for widow(er)s 60-61 or reduced 60/30 spouses is 6 months

if it does not increase age reduction.

- does not apply to divorced/remarried widow(er)s

• Disability annuities for employees and widow(er)s have 12-month 

retroactive limit; 6 months for disabled children.

48
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

FILING AN APPLICATION

• When?

‐ Up to 3 months prior to annuity beginning date

• How?

‐ In person or over the phone

‐ Contact RRB to schedule an appointment

• What’s needed?

‐ Proof of age, marriage, divorce, military service, and death

‐ Personal checking or savings account information for 

Direct Deposit

37

• Employees are encouraged to submit proof of age and military service well in

advance of retirement to expedite the application process.

- Proof of age is needed before application can be processed.

• All proofs must be originals, certified copies, or faxes sent directly to the RRB

from the official custodian of the document.

• Medical evidence of disability is required.

• The first payment an annuitant receives from the RRB may be a partial 

payment.

- Annuitant will continue to receive this amount until the final rate is awarded.

- Once final rate certified, annuitant will receive all back payments due.

• To receive annuity payments, beneficiaries are required to enroll in either:

- Direct Deposit –transfers payments to checking/savings account.

- Direct Express –transfers payments to a Direct Express-issued Debit MasterCard®.

- Enrollment waivers are available only under very limited conditions.

• Benefits of participating in Direct Deposit or Direct Express:

- Participants don’t have to worry about the mail being late, or a check being 

lost/stolen.

- Payments are available the morning of the payment date. 

49
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

FILING FOR SOCIAL SECURITY BENEFITS

Railroad workers and retirees 

should contact an RRB field 

office before filing for any 

social security benefits

38

• A major cause of overpayments is a lack of information about the 

coordination between railroad retirement and social security programs.

• It may be advantageous to file a claim with social security if:

‐ an employee has minor or disabled children; 

‐ an employee is still working for a railroad and has 

attained full retirement age;

‐ a spouse has reached full retirement age; or

‐ SSA benefit amount exceeds/is greater than the tier I amount. 

• It is generally not advantageous to file a claim with social security if the 

employee and spouse are both railroad employees.

50

RRB field offices can help annuitants decide if and 

when they should file for social security benefits.
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

COST-OF-LIVING ADJUSTMENTS (COLAS)

• TIER I - Same as social security; COLAs based

on Consumer Price Index

• TIER II - 32.5% of tier I increase

• Supplemental Annuity - Not increased

COLAs GENERALLY PAYABLE IN JANUARY

39

• Tier I cost-of-living increases, like social security cost-of-living increases,

were 3.2% in January 2024. Tier II cost-of-living increases were 1.0%.

• When a cost-of-living increase is payable, if annuitant also receives social 

security benefits, the increased tier I portion is reduced by the increased

social security benefit.

• If a widow(er) is paid an initial minimum amount, the monthly annuity rate

will not increase until the amount payable under previous law plus cost-ofliving increases is higher than the initial minimum amount.

51
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

INCOME TAXES

•TIER I amount equivalent to social security 

benefits may be subject to federal income tax

‐ Depends on amount of certain other income

•TIER I amount exceeding social security levels, 

as well as tier II and supplemental annuity 

components, are subject to federal income tax

‐ Treated like private pensions

40

• Beneficiaries can choose to have taxes withheld (or not).

• Additional information on the tax treatment of railroad retirement annuities 

can be found in IRS Publication 525, Taxable and Nontaxable Income; 

Publication 575, Pension and Annuity Income; Publication 915, Social Security 

and Equivalent Railroad Retirement Benefits; and Publication 939, General 

Rule for Pensions and Annuities (IRS.gov).

• Railroad retirement annuities are not subject to state or local income tax.

• Legal partition is taxable to the recipient. Garnishment is taxable to the 

employee.

• The RRB issues tax statements each January and notifies the annuitant and 

the Internal Revenue Service of amounts paid and withheld.

52
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

APPEALS PROCESS

1. Request reconsideration of an initial agency decision, or 

reconsideration or waiver of an overpayment, in writing, 

from an RRB office within 60 days

2. Appeal to Bureau of Hearings and Appeals within 60 days 

using RRB Form HA-1

3. Appeal to the three-member Board within 60 days using 

RRB Form HA-1

4. Appeal to the U.S. Circuit Court of Appeals within:

‐ one year if retirement/survivor appeal

‐ 90 days if unemployment/sickness appeal

41

• RRB Form HA-1 is available at RRB.gov/Resources/Appeals and in every

RRB field office.

• Bureau of Hearings and Appeals – may further investigate and obtain 

reports through field representatives, designated medical examiners, and 

others who can provide relevant information. If a case involves a question of 

fact, the appellant has the right to request an oral hearing.

- Appeals Hearings – mostly conducted through video conferencing or

over the phone. In-person hearings may be held in the RRB office closest

to the appellant’s home.

• Appeals to Board – three-member Board bases its decision on the evidence 

before the hearings officer. Normally will not accept additional evidence or

conduct a hearing.

• Employers have the right to protest unemployment/sickness claims of their 

employees, but such protests do not prevent timely payment of benefits.

- However, employees may be required to repay benefits if their 

employers’ protests are successful.

- The employer also has the right to appeal an unfavorable decision

to the Bureau of Hearings and Appeals.

53
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

RETIREMENT HEALTH INSURANCE

• The RRB does not handle retirement health 

insurance other than Medicare

• Please contact your health insurance carrier:

‐ For information about benefits available to you and 

your family after you retire

‐ To learn if there are any restrictions on your filing date 

with the RRB, and how gaps in your healthcare 

coverage may result in higher Medicare premium rates 

in the future

42

54
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

MEDICARE

•Hospital insurance (PART A)

‐Helps pay for inpatient hospital care, skilled nursing 

facility, home health care, and hospice

•Medical insurance (PART B)

‐Helps pay for doctors’ services, outpatient care, 

medical services and supplies, and some preventive 

services

•Advantage plans (PART C)

•Prescription drug coverage (PART D)

43

• Medicare available at age 65 even though full retirement age is increasing to age 67 

(depending on year of birth) for retirement and survivor annuities.

• Enrollment for both hospital and medical insurance is automatic at age 65 for people 

receiving an annuity, but medical insurance may be declined. Coverage can begin earlier

if person is totally disabled, has permanent kidney failure, or has Amyotrophic Lateral 

Sclerosis (ALS).

• If not receiving an annuity, contact RRB office before age 65 to apply. Best time to apply is 

during 3 months before the month age 65 is reached. Coverage will begin with month age 

65 is reached.

• Hospital insurance financed by payroll tax on employees and employers - 1.45% of all 

earnings. Additional 0.9 percent in hospital insurance taxes is withheld from employees 

on earnings above $200,000.

• Medical insurance financed by monthly premiums and federal general revenue funds.

Also has $240 deductible in 2024.

• Depending on modified adjusted gross income, some beneficiaries pay Part B and/or

Part D premiums plus income-related monthly adjustment amounts.

• Enrollment in prescription drug coverage is voluntary. Variety of options available with 

different coverage and costs.

• In addition to a monthly premium, Part D enrollees pay a yearly deductible and part

of the cost of prescriptions, including a copayment or coinsurance.

• Medicare provides basic health care coverage – doesn’t cover all medical expenses and 

doesn’t cover long-term care.

55
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

SELF-SERVICE OPTIONS: 1-877-772-5772

• Use automated menus to request documents and 

get information

‐ No need to wait on hold to speak with a representative 

with these self-service options

•Request a callback using virtual hold 

‐Avoid waiting on hold to speak with a representative

‐ May not be available during periods when call volume 

exceeds maximum capacity

44

• Automated menus can be used to obtain/request:

- Verification letter of monthly benefit rate

- Service and compensation statement

- Replacement Medicare card

- Duplicate tax statement

- Field office addresses

- Status of unemployment/sickness claims

- Special announcements

- General benefit information

• After you retire, notify the RRB of any changes to your:

- Home address or bank account

- Work or earnings

- Marital status

- Filing status for public pension or social security benefits

- Disability status

• TTY: 312-751-4701

56
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

PROTECT YOURSELF FROM FRAUD

1. Understand the threats

- Fraudsters use several forms of impersonation, advance fee, and phishing schemes. 

- Government employee impersonation scams are becoming increasingly common.

2. Exercise caution

- Any legitimate request from a government agency will come to you in writing.

- Verify the identity of anyone asking for your personal information over the phone. 

- Do not provide personal information or money in response to requests or threats. 

3. Secure your information

- Store your Social Security card in a secure location - avoid carrying it with you.

- Shred documents that list personal information (SSN, Medicare, and bank accounts).

- Maintain strong passwords and use anti-virus software.

- Avoid opening emails from unknown sources or clicking on suspicious hyperlinks.

4. Report scams

- Call our toll-free number to report any threats to your personal information so that we know to take extra

precautions when handling your record.

- You may report suspicious activity or communications claiming to be from the RRB to the OIG’s Fraud, Waste,

and Abuse Hotline at 1-800-772-4258. 45

• Written notices from the RRB contain official contact information specific to each notice.

• The RRB does call individuals for official purposes, and we may request certain personal 

information over the phone in order to verify your identity. However, RRB employees will 

never threaten you for information or promise any type of official action in exchange for 

personal information or payment.

• The government (RRB, SSA, IRS, etc.) does not solicit your personal information over the 

phone or by email, or request advance fees for services in the form of wire transfers/gift 

cards. 

• If anyone pressures you to provide information or money over the phone, assume the call

is fraudulent and hang up.

RRB staff will never take the following actions as part of official agency business:

- Call you to demand an immediate payment;

- Demand that you pay a debt without the ability to appeal the amount you owe;

- Require a specific means of payment (prepaid debit card, gift card, or wire transfer);

- Ask you for your personal information or credit/debit card numbers over the phone; or

- Threaten you with arrest or deportation.

57
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

RRB.GOV

MAIN MENU NAVIGATION:

• Our Agency: RRB offices and organization details

• Benefits: publications and forms separated by benefit type

• Employers: reporting instructions, publications, Employer Online Services

• Resources: railroad jobs, legal information, appeals

• Financial & Reporting: agency operations, benefit data, NRRIT 

• Newsroom: news releases; monthly Q&A

• Field Office Locator: find RRB offices, send secure message

• FAQ: Answers to frequently asked questions

• Self-serve options available at RRB.gov/myRRB 46

• Office of the Labor Member webpage: RRB.gov/OurAgency/LaborMember

‐ Staff directory

‐ Pre-Retirement Seminars – schedule of events, spiral program booklet

‐ Educational Materials – kit materials, extra resources

‐ Monthly Questions & Answers

• Links to helpful railroad union and government websites: RRB.gov/ExternalLinks

myRRB

‐ Features a variety of self-service options for conducting business with RRB online

‐ See handout in packet for the complete list of services available

‐ Employees are required to create an account to use select features

RRB.gov/FAQ

‐ See answers to frequently asked questions on a variety of topics

58
UNEMPLOYMENT AND SICKNESS BENEFITS FOR EMPLOYEES 

59

SUBJECT PAGE

Slide 47 UNEMPLOYMENT AND SICKNESS BENEFITS 60

Slide 48 Qualifying Conditions and Base Year Earnings 61

Slide 49 How Much Do I Get? 62

Slide 50 How Long Can I Get Benefits? 63

Slide 51 Waiting Period 64

Slide 52 Eligibility for Unemployment Benefits 65

Slide 53 How to Get Unemployment Benefits 66

Slide 54 Earnings Test 67

Slide 55 Eligibility for Sickness Benefits 68

Slide 56 How to Get Sickness Benefits 69

Slide 57 Taxation of Unemployment/Sickness Benefits 70

GLOSSARY end pages

Information presented in the following pages has been 

updated to reflect rates and amounts in effect for the

current benefit year, which began July 1, 2023.
UNEMPLOYMENT AND 

SICKNESS BENEFITS

47

• Qualified railroad employees are provided these benefits to restore part

of their lost wages arising from periods of unemployment or sickness.

- Including health conditions related to the employee’s pregnancy, 

miscarriage, or childbirth.

60
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

QUALIFYING CONDITIONS AND BASE YEAR EARNINGS

• Current benefit year began July 1, 2023

‐ Ends June 30, 2024

• Need earnings of $4,387.50 in calendar year 2022

to qualify

‐ Counting earnings of no more than $1,755 per month

• New employee needs 5 months of creditable service if 

base year (2022) is first year as railroad employee

48

• For benefit year beginning July 1, 2024, need earnings of $4,737.50 in 2023, 

counting no more than $1,895 per month.

• If railroad employee’s first year of railroad service was 2023, he/she is

not eligible for unemployment or sickness benefits until July 1, 2024.

‐ Must have 5 months of creditable service in 2023.

61
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

HOW MUCH DO I GET?

•Most claimants receive $87 per day 

•Generally for 2-week period

‐ Unemployment benefits $870 

($820.41 under sequestration)

‐ Sickness benefits resulting from on-the-job injury $870 

($820.41 under sequestration)

‐ Other sickness benefits reduced to $803.45 for tier I tax

for first 6 months

($757.65 under sequestration)

49

• Under provisions of the Budget Control Act of 2011 and a subsequent sequestration 

order, unemployment and sickness benefits are being reduced by 5.7%. This reduction 

percentage will remain in effect through September 30, 2031. 

• Up to a total of $11,310 of normal benefits payable in current benefit year, but no 

more than base-year earnings, counting earnings up to $2,267 per month in calendar 

year 2022.

• First 6 months of sickness benefits not resulting from on-the-job injuries credited as 

tier I compensation but not as service months. Payments included in creditable 

compensation reported on Form BA-6.

• Daily benefit rate rises to $94 beginning July 2024.

• Current projections estimate daily benefit rate gradually increasing to $131 by 2033.

62

$870 biweekly sickness payment subject to tier I and Medicare tax totaling 7.65%:

UNDER SEQUESTRATION

GROSS

PAYABLE

TIER I TAX

7.65%

MAX NET

PAYABLE

GROSS

PAYABLE

LESS

5.70%

TIER I TAX

7.65%

MAX NET

PAYABLE

$870.00 $66.55 $803.45 $870.00 $820.41 $62.76 $757.65
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

HOW LONG CAN I GET BENEFITS?

• Normal benefits

‐ Payable for up to 130 days in benefit year

‐ Maximum of 26 weeks for unemployment, and

26 weeks for sickness

‐ Exhausting one type of benefit (unemployment

or sickness) does not exhaust other

• Extended benefits

‐ Generally 13 consecutive weeks of payments

• Accelerated benefits

‐ Under certain circumstances

50

• Extended benefits are payable if employee:

‐ Has 10 or more years of service;

‐ Exhausts normal unemployment or sickness benefits; or

‐ Is not qualified for normal benefits in current benefit year, but was

qualified in previous benefit year.

‐ No waiting period for extended benefits.

• Accelerated benefits are payable if employee:

‐ Has 10 or more years of service;

‐ Does not have sufficient earnings to qualify in current benefit year,

but will qualify in next benefit year (July 2024);

‐ Has 14 or more consecutive days of unemployment or sickness.

63
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

WAITING PERIOD

•Normally, first claim for unemployment or sickness 

in benefit year has a waiting period

‐ Often referred to as 7-day waiting period

• But:

‐As few as 5 days of unemployment/sickness can satisfy 

waiting period

‐ Maximum of 7 days payable in waiting period

‐ In following 14-day claim periods, 4 days are withheld 

and up to 10 days are payable

51

• Only one 7-day waiting period is required during any period of continuing 

unemployment/sickness, even if it continues into the next benefit year.

• A separate waiting period is required for unemployment and sickness benefits.

• During waiting period claim, maximum of $609 ($574.29 under sequestration) 

payable for unemployment claim or sickness claim with on-the-job injury. For 

sickness claim without on-the-job injury, maximum of $562.41 ($530.35 under 

sequestration) payable in waiting period claim.

64
• Suspended or discharged claimants are generally considered available for work if their case

is being actively pursued for reinstatement.

• Employee not considered available for work when he or she:

▫ marks back on the extra-board; ▫ misses a turn in pool service; or

▫ quits work to attend school; ▫ lays off to avoid maximum mileage, hours, or earnings.

• Employee with compressed work week is not available on extra rest days.

• Employee must not have voluntarily quit work without good cause and not have voluntarily retired.

• No unemployment benefits are paid for any day employee receives pay, including:

*Payments received under an RRB-approved nongovernmental supplemental unemployment or

sickness insurance plan, a group insurance policy, or an employee’s own health or accident insurance 

policy will not affect entitlement to benefits and should not be reported on claims.

**Employees must report all work performed. Under certain conditions, part-time work does not affect 

entitlement to benefits. For additional guidance on effects of part-time work contact RRB.

−railroad and nonrailroad wages;

−salary;

−pay for time lost;

−pay while sick;*

−dismissal allowances;

−most wage guaranty payments;

−scheduled vacation pay;

−holiday pay;

−military reservist pay;

−earnings from self-employment; or

−pay for work performed other than 

subsidiary remuneration.**

U.S. RAILROAD RETIREMENT BOARD | RRB.gov

ELIGIBILITY FOR UNEMPLOYMENT BENEFITS

• Employee must be ready, willing, and able to work, 

and be available for work

• Day of unemployment is a day on which above 

conditions are met, and for which employee does 

not receive any pay

• Employee has properly registered for 

unemployment benefits

•Must generally look for work and accept any 

suitable offer 52

65
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

HOW TO GET UNEMPLOYMENT BENEFITS

1. File Application for Unemployment Benefits (UI-1) online,

by mail, or at local RRB field office

‐ employee must file application within 30 days of becoming unemployed

2. RRB determines eligibility; if qualified, RRB provides

employee Claim for Unemployment Benefits (UI-3)

‐ claim made available online (myRRB) and/or mailed to claimant

3. File claim online or by returning completed claim to local

field office within 15 days from:

‐ last day of claim period, - or -

‐ date claim was made available online (myRRB) or mailed to employee

(whichever is later) 53

• Claims should not be signed or filed before last day of claim.

• Most claimants will receive first benefit payment in about 3 weeks.

• Claimants required to enroll in Direct Deposit.

• No benefits are payable for late claims without good cause.

• Railroad employers are notified of applications and claims; employer may respond

to RRB with information relating to eligibility.

• Claimant should be sure to claim rest days.

• Only need to file one application (UI-1) per benefit year, even if multiple periods of

unemployment.

• Once an employee submits a claim online, all subsequent claims will be made

available online only, and will no longer be mailed.

• The RRB will provide biweekly claims as long as the employee remains unemployed

and eligible for benefits.

• See myRRB handout in packet for more information about online services and

setting up a Login.gov account.

66
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

EARNINGS TEST

• Earnings test only applies to 

unemployment benefits

•No benefits payable for any day of 

unemployment if gross earnings of 

$1,755 or more in any 14-day

claim period

54

• Earnings include both railroad and nonrailroad pay.

• Benefits are payable for days of unemployment if gross earnings are less 

than $1,755 in a claim period.

• This amount is equivalent to the monthly compensation base.

‐ The monthly compensation base is indexed and the earnings limit 

will rise to $1,895 for the benefit year that begins July 2024.

• If employee has earnings of $1,755 or more during first claim in benefit 

year, and the earnings prevent payment of that claim, waiting period is

still satisfied.

67
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

ELIGIBILITY FOR SICKNESS BENEFITS

• Employee must be unable to work due to sickness 

or injury 

• Day of sickness is a day on which above condition 

is met, and for which employee does not receive 

any pay

• Employee has properly filed application for sickness 

benefits including signed statement from medical 

professional

55

• Statement of sickness completed by doctor or medical professional provides evidence of the 

medical condition and its expected duration.

• An employee who takes leave under the Family and Medical Leave Act, other than leave for 

their own illness or disability, is not eligible for benefits under the Railroad Unemployment 

Insurance Act.

• No sickness benefits are paid for any day on which employee receives pay, including:

68

− railroad and nonrailroad wages;

− salary;

− pay for time lost;

− pay while sick;*

− dismissal allowances;

− most wage guaranty payments;

− scheduled vacation pay;

− holiday pay;

− military reservist pay;

− earnings from self-employment; or

− pay for work performed other than 

subsidiary remuneration.**

*Payments received under an RRB-approved nongovernmental supplemental 

unemployment or sickness insurance plan, an employee’s own health or accident 

insurance policy, or a group insurance policy will not affect entitlement to benefits 

and should not be reported on claims.

**Under certain conditions, part-time work does not affect entitlement to benefits; 

employees must report all work performed. Contact RRB for additional guidance

on effects of part-time work.
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

HOW TO GET SICKNESS BENEFITS

1. Complete Application for Sickness Benefits (SI-1a)

2. Have doctor complete Statement of Sickness (SI-1b) promptly

3. Submit SI-1a and SI-1b to RRB by mail* or fax (713-405-2078)

‐ RRB must receive application within 10 days of employee becoming sick or injured; 

*return address listed at bottom of SI-1b

4. RRB determines eligibility; if qualified, RRB provides employee

Claim for Sickness Benefits (SI-3)

‐ claim made available online (myRRB) and/or mailed to claimant

5. File claim online or by returning completed claim to RRB within

30 days from:

‐ last day of claim period, – or –

‐ date claim was made available online (myRRB) or mailed to employee

(whichever is later) 56

• Applications received after 10 days but within 30 days of first day for which employee wishes to 

claim benefits are generally considered timely filed if there is a good reason for the delay.

• Initial sickness claim must begin with 4 consecutive days of sickness and contain at least

5 days of sickness in order to satisfy waiting period.

• After initial application, biweekly claim forms are provided to employee as long as they are 

eligible for benefits and remains unable to work due to illness or injury.

• Once an employee submits a claim online, all subsequent claim forms will be made available 

online only and will no longer be mailed.

• See myRRB handout in packet for more information about online services and setting up a 

Login.gov account.

• Most delays in sickness benefit payments occur because doctors do not promptly complete and 

submit SI-1b, or because employee files their subsequent claims late.

• Claimants required to enroll in Direct Deposit. 

• SI-1a must be mailed or faxed to the RRB at 713-405-2078; SI-1b may be included with SI-1a or 

submitted separately by mail or fax. 

• Employees who return to work and stop claiming benefits but become sick or injured again the 

same benefit year must file new SI-1a and SI-1b.

69
U.S. RAILROAD RETIREMENT BOARD | RRB.gov

TAXATION OF UNEMPLOYMENT-SICKNESS BENEFITS

•All unemployment benefits are subject to federal 

income tax

• Sickness benefits resulting from on-the-job injury 

are not taxable

‐All other sickness benefits are taxable

• Unemployment and sickness benefits are not 

subject to state income tax

57

• Railroad employees with questions regarding potential tax liability should

contact the Internal Revenue Service (IRS) for advice or assistance.

• Each January, the RRB issues employees Form 1099-G showing total amount 

of unemployment benefits paid during previous year and/or Form W-2 

showing total amount of taxable sickness benefits paid.

• Employees can elect voluntary tax withholding from their benefits by

submitting Form W-4V (unemployment) and Form W-4S (sickness).

‐ Obtain either at IRS.gov by entering the appropriate form number

in the search tool at the top of the website.

70
GLOSSARY 

Accelerated

Unemployment or

Sickness Insurance

Benefits

Payable if an employee with 10 years of service does not have sufficient 

earnings to qualify for unemployment/sickness benefits in current benefit 

year, but will qualify in next benefit year. Must have 14 or more consecutive 

days of unemployment or sickness.

Accrual Amount of back payment due.

Age and Service

Annuity

Monthly payment payable to employees who meet service requirements.

Age Reduction Permanent reduction applied to a retirement or survivor annuity when an 

individual chooses to receive benefits before reaching the age required to 

receive their full annuity amount. Does not apply to those retiring at 60 after 

2001 with 30 years of service.

Annuity Monthly railroad retirement benefit payment.

Base Year Calendar year from which an employee’s earnings and service months are 

used to determine eligibility for unemployment and sickness benefits under 

the Railroad Unemployment Insurance Act.

Benefit Year The 12-month period during which qualified employees are paid benefits for 

days of unemployment/sickness. Usually begins July 1 of any year and ends 

June 30 of the next year. Pertains to unemployment and sickness benefits

only.

Creditable

Compensation

The amount of money an employee is paid for service that counts toward 

railroad retirement benefits.

Current

Connection

An employee has a current connection if they have 12 months of railroad 

service in the 30-month period immediately preceding their railroad retirement annuity beginning date or death. If an employee is not qualified on this 

basis, and they have 12 months of service in an earlier 30-month period, the 

current connection requirement may still be met. A current connection is 

required for survivor, occupational disability, and supplemental annuities; and 

is not required for age and service or total disability annuities.

Deemed

Service

Months

If an employee does not actually work in every month of the year, additional

service months may be deemed (or credited) in some cases. Employee

must have sufficient yearly tier II compensation, and be in an employment

relationship with a covered railroad employer, or be an employee representative, during a deemed service month.
Direct Deposit Benefit payments are transferred directly to a beneficiary’s checking

or savings account.

Direct Express Benefit payments are transferred to a Debit MasterCard® issued (by Direct 

Express) to individuals who do not have a checking or savings account.

Earnings Income from work performed for another person or company, or from selfemployment; investments, interest income, etc. not included.

Employer Interstate railroad or affiliate engaged in railroad-connected operations. 

National/international railroad labor organizations (and their subordinate 

units) and employer associations are also railroad employers.

Extended

Unemployment or

Sickness Benefits

Thirteen consecutive weeks of payments available to employees with

10 years of service who have exhausted their normal benefits, or are not 

qualified for normal benefits in the current benefit year but were in the 

previous benefit year.

Form BA-6 Yearly statement providing current and cumulative record of employee’s 

railroad service and compensation.

Full Retirement Age Age at which full retirement annuity is payable (gradually increasing to 67, 

depending on year of birth). Unreduced annuity is payable to those who are 

60 with 30 years of service, but work deductions still apply until full retirement 

age is attained.

Lump-Sum

Death Benefit

One-time payment issued if there is no survivor immediately eligible for an 

annuity upon the death of an employee who had a current connection and 10 

years of railroad service (or at least 5 years of service after 1995).

Medicare Part A

Hospital Insurance

Helps pay for medically necessary inpatient care in a hospital, psychiatric 

hospital, or skilled nursing facility and for hospice and home health care.

Medicare Part B

Medical Insurance

Helps pay for medically necessary physician services and many other

medical services and supplies not covered by Part A.

Medicare Part C

Advantage Plans

Plans (offered by Medicare-approved private companies) which combine 

Medicare Part A and Part B and, in some cases, Part D coverage.

Medicare Part D

Prescription Drug

Coverage

Voluntary prescription drug coverage that helps pay for brand name and 

generic drugs. Costs and coverage vary from plan to plan.
Normal

Unemployment or

Sickness Benefits

Payable to qualified employees for up to 130 days in a benefit year. Days of 

unemployment or sickness do not have to be consecutive.

Occupational

Disability

Type of annuity payable to an employee who meets certain age and service 

requirements and is disabled from being able to perform their regular 

railroad occupation*, and the disabling condition is expected to last at least 

12 months or longer. *Generally, the job employee worked the longest in 

the last 5 years; current connection and medical evidence required.

Service Month A month of service is credited if an employee has at least one day of

earnings, vacation pay, certain sick pay, or other compensation credited 

by a railroad employer or union in a given month. Special rules apply if 

service months are allocated as a result of a personal injury settlement.

Sickness Benefits Provided to qualified employees to restore part of lost wages arising from 

periods of sickness (includes health conditions related to the employee’s 

pregnancy, miscarriage, or child birth). Employee must be unable to work 

because of sickness or injury.

Spouse Annuity Annuity payable to the wife or husband of an employee annuitant based on 

age or on caring for the employee’s unmarried child who is under age 18 or 

disabled before age 22. An annuity can be paid to eligible spouses in samesex marriages.

Supplemental

Annuity

Additional amount payable if employee has at least 25 years of railroad 

service beginning before 10/1/1981, and a current connection.

Survivor Annuity Monthly annuity payable for widow(er)s and/or surviving children and other 

dependents after death of employee who met service requirements and had 

a current connection.

Tier I A component of a railroad retirement annuity which approximates a social 

security benefit. Based on railroad and social security earnings.

Tier II A component of a railroad retirement annuity paid in addition to tier I. Based 

solely on railroad work.

Total Disability Type of annuity payable to an employee who meets certain age and service 

requirements and has a physical or mental condition that makes them

unable to engage in any regular gainful employment; medical evidence 

required. Also payable to disabled widow(er)s ages 50-59 and unmarried 

disabled children over age 18 who become totally disabled before age 22.
Unemployment

Benefits

Provided to qualified employees to restore part of the lost wages arising 

from periods of unemployment. The employee must be ready, willing, and

able to work, and be available for work.

Widow(er)’s Initial

Minimum Amount

(WIMA)

Based on the two-tier annuity amount that would have been payable to 

the railroad employee when the widow(er)’s annuity is awarded, minus 

any applicable reductions. Such annuities computed on the basis of this 

initial minimum amount will not increase until the amount payable under 

previous law plus subsequent cost-of-living increases is higher than the 

initial minimum amount. 

Work

Restrictions

An annuity is not payable if a retiree works for a railroad or rail union after 

their retirement. Employee and spouse tier I and survivor amounts are 

reduced if they have earnings over certain limits (until full retirement age 

is attained). Work performed for a retired employee’s or spouse’s last 

pre-retirement nonrailroad employer reduces the tier II and supplemental 

annuity components, regardless of age.

U.S. RAILROAD RETIREMENT BOARD

Office of the Labor Member

844 North Rush Street

Chicago, IL 60611-1275

RRB.gov/LMO

Toll Free (877) 772-5772

TTY 312-751-4701