| Basic
Formula
Regular railroad retirement annuities are calculated
under the following two-tier formula:
Tier 1 Component
The first tier is based on railroad retirement credits
and any social security credits an employee has acquired.
If the employee has at least 120 months of railroad service,
or 60-119 months of railroad service with at least 60
months of railroad service after 1995, the amount of
the first tier is calculated using reductions to the
social security formula.
Exception: If the employee has at least 360 months of
railroad service or is disabled and has at least 120
months of railroad service, the amount of the first tier
is calculated using social security formulas and railroad
retirement age and service requirements.
Tier 2 Component
The second tier is based on railroad retirement credits
only, and may be compared to the retirement benefits
sometimes paid to workers in other industries in addition
to social security benefits. Reductions are based on
the Railroad Retirement Act.
Full Retirement
Age For Spouse or Divorced Spouse
The term Full
Retirement Age (FRA)
means the age at which the spouse of an employee with
less than 360 months of railroad service or a divorced
spouse can receive a full annuity (not reduced for
early retirement). FRA for
persons who were born before January 2, 1938, is age
65. The FRA for
persons born after January 1, 1938, will gradually
increase over a 20-year period to age 67, as illustrated
in the following chart:
| Determining
Your Full Retirement Age |
| Before
1-2-1938 |
65 |
| 1-2-1938
thru 1-1-1939 |
65
and 2 months |
| 1-2-1939
thru 1-1-1940 |
65
and 4 months |
| 1-2-1940
thru 1-1-1941 |
65
and 6 months |
| 1-2-1941
thru 1-1-1942 |
65
and 8 months |
| 1-2-1942
thru 1-1-1943 |
65
and 10 months |
| 1-2-1943
thru 1-1-1955 |
66 |
| 1-2-1955
thru 1-1-1956 |
66
and 2 months |
| 1-2-1956
thru 1-1-1957 |
66
and 4 months |
| 1-2-1957
thru 1-1-1958 |
66
and 6 months |
| 1-2-1958
thru 1-1-1959 |
66
and 8 months |
| 1-2-1959
thru 1-1-1960 |
66
and 10 months |
| 1-2-1960
and later |
67 |
(FRA also affects Tier 1 component work
deductions, regardless of the number of the employee's
years of railroad service.)
Spouse Annuity
Age Reduction When Employee Has Less Than 360 Months
of Railroad Service -
Please refer to the summary chart below
to see if an age reduction applies to your spouse annuity.
Tier 1 Component
Age Reduction
Your spouse Tier 1 component age reduction depends on
the employee's total years of railroad service.
- Employee Has 60-119
Months of Railroad Service with at Least 60 Months
of Railroad Service After 1995 -
Your Tier 1 is reduced by 1/144 for the first 36 months
you are under FRA and by 1/240 for each additional
month you are under FRA on your RRA annuity beginning date (ABD), or
if earlier, your social security benefit date of entitlement.
- Employee Has 120-359
Months of Railroad Service -
Your Tier 1 is reduced by 1/144 for the first 36 months
you are under FRA and by 1/240 for each additional
month you are under FRA on your annuity beginning date.
Tier 2 Component
Age Reduction -
Your spouse Tier 2 component age reduction depends on whether
or not the employee had railroad service before August
12, 1983.
- Employee Does Not
Have Railroad Service Before August 12, 1983 - Your Tier 2 is reduced by 1/144 for the
first 36 months you are under FRA and by 1/240 for
each additional month you are under FRA on your annuity
beginning date.
- Employee Has Some
Railroad Service Before August 12, 1983 -
Your Tier 2 is reduced by 1/144 for each
month you are under age 65 on your annuity beginning
date.
Spouse Age Requirements
when Employee has 60-359 Months Railroad Service |
|
|
|
| before 1975 based on at least
120 months of railroad service, |
age 65, |
your Full Retirement Age (FRA). |
age 65. |
| in 1975, or later, based on at
least 120 months of railroad service, including some
railroad service before August 12, 1983, |
age 62, |
your FRA. |
age 65. |
| in 1975, or later, based on at
least 120 months of railroad service and no railroad
service before August 12, 1983, |
age 62, |
your FRA. |
your FRA. |
| in January 2002 or later, based
on 60-119 months of railroad service with at least
60 months of railroad service after 1995, and had
some railroad service before August 12, 1983, |
age 62, |
your FRA.
(The employee must have an SS Act Insured Status
to qualify you for a Tier 1 component.) |
age 65. |
| in January 2002 or later, based
on 60-119 months railroad with at least 60 months
of railroad service after 1995, and did not have
railroad service before August 12, 1983, |
age 62, |
your FRA.
(The employee must have an SS Act Insured Status
to qualify you for a Tier 1 component.) |
your FRA.
|
Spouse Annuity
When Employee Has At Least 360 Months of Railroad Service
-
Please refer to the summary
chart below to see if an age reduction applies
to your spouse annuity.
If the employee annuity is based
on age and service, your spouse Tier 1 may have an age
reduction, depending on the employee's annuity beginning
date.
If the employee annuity is based
on disability, your spouse Tier 1 may have an age reduction,
depending on your spouse annuity beginning date.
Your spouse Tier 2 will not have
an age reduction.
Spouse
Age Requirements
When
Employee Has at Least 360 Months Railroad Service |
age with an
annuity beginning date of July 1, 1974 or
later, and both attained age 60 and acquired
360 months of railroad service before July 1984, |
retired at
age 60 or later, |
not have an
age reduction.
Note: For these cases, your
spouse annuity cannot begin before January 1,
1975. |
not have
an age reduction. |
| age and either attained age 60
or acquired 360 months of railroad service in July
1984 through December 2001, |
retired at age 60 through age
61, with an employee annuity beginning date before
January 2002, |
have an age reduction based on
the employee's age reduction until both you and
the employee have attained age 62.
You will then have an age reduction for the number of
months you are under Full Retirement Age (FRA) when both
you and the employee are age 62.
|
not have an age reduction. |
| age and either attained age 60
or acquired 360 months of railroad service in July
1984 through December 2001, |
retired at age 62 or later, |
not have an age reduction. |
not have an age reduction. |
| age with at least 360 months
of railroad service and an annuity beginning date
of January 2002, or later, |
retired at age 60 or later, |
not have an age reduction. |
not have an age reduction. |
| disability with at least 360
months of railroad service and an employee annuity
beginning date before July 1, 1984, |
has attained
age 60, |
not have an age reduction. |
not have an age reduction. |
| disability with at least 360
months of railroad service and an employee annuity
beginning date of July 1, 1984, or later, |
has attained
age 60
|
have an age reduction depending
on your spouse annuity beginning date.
- If your spouse annuity begins before January
2002, and begins before your FRA, your Tier
1 will have an age reduction. (If you are age
60-61 on the date your spouse annuity begins,
you are deemed to be age 62.)
- If your spouse annuity begins January 1,
2002, or later, your Tier 1 will not have an
age reduction.
|
not have
an age reduction. |
Divorced Spouse
Annuity -
A divorced spouse annuity is limited to Tier 1 component
only. Regardless of the employee's total years of railroad
service, your annuity is reduced by 1/144 for the first
36 months you are under Full Retirement
Age (FRA) and by 1/240 for each additional month
you are under FRA on your annuity beginning date. However,
if you were entitled to a spouse annuity before your
final divorce from the employee, any previous spouse
annuity age reduction is applied to your divorced spouse
annuity.
| Summary
of Divorced Spouse Age Reductions |
| an SS Act Fully Insured
Status based on combined railroad and SSA earnings
(40 Quarters of Coverage for those born after 1928), |
age 62 for a full month, |
age 62, |
your FRA. |
| an SS Act Disability Insured
Status based on combined railroad and SSA earnings
(disability freeze), |
age 62, |
age 62. |
your FRA. |
|
