Social Security Benefits

If you are entitled to Social Security (SS) benefits based on any wage record, your Tier 1 component  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 may be 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 Tier 1 component. 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 your own earnings record or the earnings record of your spouse.

Non-Covered Service Pensions

A Non-Covered Service Pension (NCSP) is any payment based on earnings for services performed after 1956 that are not covered as employment under the Social Security (SS) Act or the Railroad Retirement Act (RRA). This payment may either be a monthly check or a lump-sum payment. This information is important because it may reduce the amount of your Tier 1 component.

Exceptions for Non-Covered Service Pension Reduction —

You are not subject to the non-covered service pension reduction if your date of birth is before January 2, 1924, or if you  have at least 30 Years of Coverage. Approximately one Year of Coverage is credited for each year in which you have wages, compensation, or self-employment earnings equal to or more than the following: 25% of the SSA maximum creditable earnings for years before 1979, 25% of the Tier 2 maximum creditable earnings for years 1979 – 1990, and 15% of the Tier 2 maximum creditable earnings for years after 1990. Ask your RRB representative if this exception applies to you.

Also note that the following monthly benefits are not considered to be non-covered service pensions:

1. A private pension from your railroad employer.

2. Payment from the Department of Veterans Affairs.
   
3. Pensions based on military service active duty.

When Non-Covered Service Pension Reduction May Apply —

If none of the exceptions above apply, your date of birth is January 2, 1924, or later, and you are receiving or expect to receive a pension or annuity (or a lump-sum payment in excess of your own contributions to the pension plan) that is based on any work performed after 1956 not covered by the SS Act or the RRA, the RRB will use Form G-209 Employee Non-Covered Service Pension Questionnaire to obtain the information necessary to compute any offset for your non-covered service pension.

Other Railroad Retirement Annuities

If you are entitled to more than one railroad retirement annuity, your employee annuity is not reduced for the other railroad retirement annuity. But your employee annuity can have an effect on the other railroad retirement annuity.

Spouse Annuity —

If you are entitled to both a Railroad Retirement Act 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. If either earnings record has railroad service before January 1, 1975, your RRA spouse annuity Tier 1 is reduced by your RRA employee annuity Tier 1. The reduction may be restored to your RRA spouse annuity Tier 2.
   

2. 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.

Widow(er) Annuity —

If you are entitled to both an RRA employee annuity based on your own earnings record and an RRA widow(er) annuity based on a different earnings record, the reduction to your RRA widow(er) annuity depends on railroad service before January 1, 1975.

1. If either earnings record has at least 120 months of railroad service before January 1, 1975, your RRA widow(er) annuity Tier 1 is reduced by your own RRA employee annuity Tier 1. If you are a widow, the reduction may be partially restored to your RRA widow annuity Tier 2. If you are a widower, you may be eligible for the restored amount if you were dependent on your deceased spouse for 1/2 of your support.
   

2. If either earnings record has some railroad service before January 1, 1975, but neither earnings record has 120 months of railroad service before January 1, 1975, your RRA widow(er) annuity Tier 1 is reduced by your own RRA employee annuity Tier 1. The reduction is not restored to your widow(er) annuity Tier 2.
   
3. If neither earnings record has any railroad service before January 1, 1975, your RRA widow(er) annuity Tier 1 and Tier 2 is reduced by your RRA employee annuity Tier 1 and Tier 2. The reduction is not restored to your RRA widow(er) 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.

Surviving Divorced Spouse Annuity or Remarried Widow Annuity —

If you are entitled to both an RRA employee annuity, based on your own earnings record, and an RRA surviving divorced spouse annuity or RRA remarried widow(er) annuity, based on a different earnings record, the reduction depends on railroad service before January 1, 1975.

1. If there is railroad service before January 1, 1975, on either earnings record, your RRA surviving divorced spouse annuity or RRA remarried widow(er) annuity will be reduced by your RRA employee annuity Tier 1.
   

2. If neither earnings record has railroad service before January 1, 1975, your RRA surviving divorced spouse annuity or RRA remarried widow(er) annuity is reduced by your RRA employee annuity Tier 1 and Tier 2.

The Worker's Compensation and Public Disability Benefit (WC/PDB) provision only applies to disability annuitants. If you are not filing for a disability annuity, you can skip this section.

The Tier 1 component of your disability annuity may be reduced if you are receiving WC benefits or certain PDBs. The WC benefits that affect your annuity are those payments made to you by a Federal or State worker’s compensation insurance law for a work-related injury or disease you may have. The PDBs that may affect your annuity are those payments made to you by a Federal, State or local government based on employment that is not entirely covered by the Social Security (SS) Act.

Generally, when 85% or more of the period of service for a Federal, State, or local government is covered under the SS Act, a PDB based on that service paid by Federal, State or local plan will not cause a reduction. Also, payments from the Department of Veterans Affairs will not cause a reduction.

Military service disability pensions based entirely on active duty before 1957 will cause a PDB reduction.

If you receive WC or a PDB based on any employment from a Federal, State, or local government that was not covered under the SS Act, you must submit proof of the amounts and effective dates of your WC or PDB.

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