| Term |
Definition |
| 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' 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. |
| 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 and 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 |
The age at which you can receive a full
Tier 1 benefit unreduced for early retirement. |
| 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. |
| 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. |
| Supplemental
Annuity |
Additional amount payable if employee has
at least 25 years of railroad service beginning before 10-1-81 and a current
connection. |
| Survivor Benefits |
Monthly benefits payable to surviving widows
and widowers, children and certain other dependents if the employee had at least 10 years of railroad service, or 5 years of railroad service after 1995, and 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 and Permanent 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 and permanently 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. Work performed for retired
railroad employee's or spouse's last pre-retirement nonrailroad employer
reduces tier II and supplemental benefits. |
