Accelerated Unemployment or Sickness Insurance Benefits |
Payable if employee with 10 years of service does not have sufficient earnings to qualify for unemployment-sickness insurance benefits in current benefit year but will qualify in next benefit year. Must have 14 or more consecutive days of unemployment or sickness. |
ABD |
The term annuity beginning date (ABD) means the date on which an employee, spouse, or divorced spouse applicant first becomes entitled to an annuity or any portion thereof. No annuity can ever begin to accrue on the 31st day of the month. |
Accrual |
Amount of back benefits due. |
Age and Service Annuity |
Monthly benefit payable to employees with at least 10 years (120 months) of creditable railroad service, or at least 5 years (60 months) of creditable railroad service after 1995. |
Age Reduction |
Permanent reduction made in the computation of a retirement or survivor annuity if an individual chooses to receive benefits prior to the age required for a full unreduced annuity. |
Annual Earnings Exempt Amount |
The amount of money you can earn in a year without losing part of your annuity. There are separate Annual Earnings Exempt Amounts for persons under Full Retirement Age and for the year in which the person attains Full Retirement Age. |
Annuity |
Monthly railroad retirement benefit payment. |
BA-6 Form |
Yearly statement providing current and cumulative record of employee's railroad service and compensation. |
Base Year |
Calendar year from which earnings and service months are used to determine eligibility for Railroad Unemployment Insurance Act (unemployment and sickness) benefits. |
Benefit Year |
The 12-month period usually beginning July 1 of any year and ending June 30 of the next year. Pertains to unemployment and sickness insurance benefits. |
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 he or she has 12 months of railroad service in the 30-month period immediately preceding the employee's railroad retirement annuity beginning date or death. If an employee does not qualify on this basis, but has 12 months of service in an earlier 30-month period, he or she may still meet the current connection requirement. A current connection is required for survivor, supplemental, and occupational disability annuities. It is not required for annuities based on age and service or total disability. |
Direct Deposit |
Electronic deposits of payments directly to beneficiary's checking or savings account. |
Direct Express |
U.S. Treasury program for electronically issuing payments to individuals without checking or savings accounts. Payments are transferred to a beneficiary's Direct Express-issued Debit MasterCard®. |
Designation of ABD
|
At the time of filing, most applicants either select a specific beginning date or request the RRB to begin the annuity on the earliest date permitted by law. If the specified date precedes the earliest date possible, the annuity may not begin until the earliest possible date.
Under the 1937 Act, the applicant had to designate an ABD before an annuity could begin to accrue. This is not true under the 1974 Act. Now if an application is submitted without designation of ABD, the RRB will begin the annuity on the earliest date permitted by law, provided all eligibility and entitlement requirements have been met. If the selection of a later ABD would be more advantageous, the applicant should be given an opportunity to designate the later ABD. However, without the applicant's approval, we have no authority to establish an ABD that is any later than the earliest date possible. |
Earnings |
Income from work performed for another person or company, or from self-employment. Does not include investments, interest income, etc. |
Employer |
An interstate railroad or affiliate engaged in railroad-connected operations. Employer associations, national railroad labor organizations, and subordinate units are also railroad employers. |
Extended Unemployment or Sickness Insurance Benefits |
Thirteen consecutive weeks of payments available if employee has 10 years of service and has exhausted normal benefits or is not qualified for normal benefits in current benefit year but was in the previous benefit year. |
Full Retirement Age |
Age at which full retirement annuity payable (gradually increasing from 65 to 67, depending on year of birth). Unreduced annuity is payable to those age 60 with 30 years of service but work deductions still apply while under full retirement age. |
Last Pre-Retirement Nonrailroad Employer |
Your Last Pre-Retirement nonrailroad Employer (LPE) is defined as any nonrailroad individual, company or institution for whom you are working on your annuity beginning date (ABD) or for whom you stopped working in order to receive an annuity. This includes work for a Canadian railroad that is not covered under the Railroad Retirement Act and work as an elected or appointed public official. |
Lump-Sum Death Payment |
An amount payable to certain survivors of an employee with 10 years of railroad service, or 5 years of railroad service after 1995, and a current connection, if there is no survivor immediately eligible for an annuity upon the employee's death. |
Medicare Hospital Insurance
(Part A) |
Helps pay for medically necessary inpatient care in a hospital, skilled nursing facility, or psychiatric hospital, and for hospice and home health care. |
Medicare Medical Insurance
(Part B) |
Helps pay for medically necessary physician services and many other medical services and supplies not covered by Part A. |
Medicare Advantage Plans
(Part C) |
Plans (offered by private companies approved by Medicare) which combine Part A and Part B and, in some cases, Part D coverage. |
Medicare Prescription Drug Coverage
(Part D) |
Voluntary prescription drug coverage that helps pay for brand name and generic drugs. Drug plan costs and coverage vary from plan to plan. |
Normal Unemployment or Sickness Insurance Benefits |
Payable for up to 130 days in a benefit year to qualified employees. Days of unemployment or sickness do not have to be consecutive. |
Occupational Disability Annuity |
Annuity payable when an employee meets certain age and service requirements with a current connection and is permanently disabled for his or her regular railroad occupation. |
Railroad Retirement Maximum |
Limits total monthly benefits payable to an employee and spouse. |
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. Special rules apply if service months are allocated as a result of a personal injury settlement. |
Sickness Benefits |
To be eligible, employee must be unable to work because of sickness or injury and have earned qualifying creditable compensation in a base year. |
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. Benefits can be paid to eligible spouses in same-sex marriages. |
Supplemental Annuity |
Additional amount payable if employee has at least 25 years of railroad service beginning before October 1, 1981, and a current connection. |
Survivor Benefits |
Monthly benefits payable to surviving widows and widowers, children, and certain dependents if employee met service requirements and had a current connection. |
Tier I Benefit |
A component of a railroad retirement annuity which approximates a social security benefit. Includes all railroad and social security earnings. |
Tier II Benefit |
A component of a railroad retirement annuity which is paid in addition to a tier I benefit. Based solely on railroad work. |
Total Disability Annuity |
Annuity payable when employee meets certain age and service requirements and is unable to engage in any substantial gainful employment due to a permanent medical condition. Also payable to disabled widow(er)s over age 50 and disabled children over age 18 who became totally disabled before age 22. |
Unemployment Benefits |
To be eligible, employee must be able to work and available for work and have earned qualifying creditable compensation in the base year. |
Vested Dual Benefit |
Additional amount payable if employee qualified for both railroad retirement and social security benefits before 1975 and met certain vesting requirements. |
Work Restrictions |
Annuity not payable if working for railroad or rail union. Employee and spouse tier I, vested dual benefits, and survivor benefits reduced if earnings over certain limits unless full retirement age has been reached. Work performed for retired railroad employee's or spouse's Last Pre-Retirement nonrailroad Employer (LPE) reduces tier II and supplemental benefits. |