If you are entitled to Social Security (SS) benefits based on any wage record, your spouse annuity Tier 1 component or your divorced spouse annuity will be offset for those SS benefits (before any withholding under the SS Act for your earnings over the Annual Earnings Exempt Amount). This is why your SS benefits are certified to the RRB for payment. If you have already filed for your SS benefits, it is important to include the SS benefit information on your annuity application. This will help to prevent an overpayment of your annuity.

Annuity Based on at Least 120 Months of Railroad Service -

Your railroad retirement application may be used to protect your filing date for SS benefits if you have not yet filed at the Social Security Administration (SSA) and will be entitled to the SS benefits within three months. This means the date you file your railroad retirement application can be used as the date you file for SS benefits. If you want to use your railroad retirement application to protect your filing date, the RRB representative will prepare Form RR-8 Notice of Protection of Filing Date for Social Security Benefits and send a copy to your local SSA office. The SSA office will contact you to secure an application for SS benefits.

Your railroad retirement application may protect your filing date, but it is not an application for SS benefits. You must file a separate application for those benefits at SSA.

In many cases, filing for SS benefits will not affect your total benefit rate, because of the deduction in your annuity. It is usually not to your advantage to apply for benefits at both agencies. It is a good idea to discuss this matter with an RRB representative before deciding to file for SS benefits. Contact your local RRB office for information about your situation before filing at SSA.   

Annuity Based on 60-119 Months of Railroad Service with at least 60 months of Railroad Service After 1995 –

Your railroad retirement application is also deemed to be an application for any SS benefits that you may be entitled to on the employee's earnings record or your own earnings record.

Other Railroad Retirement Annuities

If you are entitled to more than one Railroad Retirement Act (RRA) annuity, the other RRA annuity can have an effect on your spouse or divorced spouse annuity.

Spouse Annuity -

If you are entitled to both an RRA employee annuity based on your own earnings record, and an RRA spouse annuity based on a different earnings record, the reduction to your RRA spouse annuity depends on whether or not there is railroad service before January 1, 1975 on either earnings record:

1. Railroad Service Before January 1, 1975 -

   If either earnings record has railroad service before January 1, 1975, your RRA spouse annuity Tier 1 is reduced by your own RRA employee annuity Tier 1. The reduction in your RRA spouse annuity Tier 1 may be restored to your RRA spouse annuity Tier 2; or

   
   

2. No Railroad Service Before January 1, 1975 -

   If neither earnings record has railroad service before January 1, 1975, your RRA spouse annuity Tier 1 and Tier 2 is reduced by your own RRA employee annuity Tier 1 and Tier 2. The reduction is not restored to your RRA spouse annuity Tier 2.

Divorced Spouse Annuity -

If you are entitled to both an RRA employee annuity based on your own earnings record, and an RRA divorced spouse annuity based on a different earnings record, your RRA divorced spouse annuity is reduced by your RRA employee annuity.

Survivor Annuity -

If you are entitled to both an RRA spouse/divorced spouse annuity and an RRA survivor annuity based on a different earnings record, only the higher of your RRA spouse/divorced spouse annuity or your RRA survivor annuity is payable unless you elect to receive the smaller benefit.

Public Service Pensions

General -

Any Public Service Pension (PSP) payable to you may have an effect on the amount of your spouse annuity Tier 1 component or your divorced spouse annuity. A PSP is retirement pay you receive for public service employment. This may either be monthly payments or a lump-sum payment. It may be administered by a government agency or a private insurance company.

If you are currently entitled to, or will be entitled to, a PSP (or lump-sum payment that is more than just a refund of your own contribution to the pension fund), there may be an offset in your annuity.

Public service means service performed for the Federal Government of the United States, a State government, or any political subdivision of a State, such as a city, county, town, township, village, school or sanitation district. The definition of State includes the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.

Exceptions to PSP Offset -

If you believe that you qualify for an exception from the PSP offset, please ask your RRB field office.  In general, the PSP offset will not apply to your Tier 1 if your:

1. public service employer was an interstate instrumentality i.e. rare cases in which two or more states are organized as a corporation to perform a governmental function (they are not considered public service employers for reduction purposes); or,
   
2. public service employer was a government of a foreign country (such as Canada); or,
   
3. government pension payments are social security, railroad retirement, veterans' affairs, military service, worker’s compensation or black lung benefits. (However, social security benefits will cause a reduction to Tier 1 and railroad retirement benefits will cause a reduction);
   
4. Federal employment was covered under the Federal Employees Retirement System (FERS) and FICA taxes were deducted from the last 60 months of your Federal employment. (Note that a person covered under the Federal Civil Service Retirement System (CSRS), who has a payroll deduction for Medicare (Hospital Insurance) only tax, does not qualify for exemption from the PSP offset); or,
   
5. state or local government employment was covered under the Social Security Act and:

1. Federal Insurance Compensation Act (FICA) taxes were being deducted on your last day of employment, and either you filed for your spouse annuity before April 2004 or your last day of state or local government employment was before July 1, 2004; or
   
2. FICA taxes were deducted from the last 60 consecutive months of your employment and you  file for your spouse annuity after March 2004 and your last day of state or local government employment is after June 2004.
   

Note: If your last day of state or local government employment is before March 2, 2009, there is a provision for reducing the requirement of FICA taxes deducted for 60 consecutive months by giving you credit for months before March 2004 for which you paid FICA taxes.

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