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RRB
News
U.S.
Railroad Retirement Board
Office of Public Affairs • 844 North Rush
Street • Chicago, Illinois 60611-2092 |
312
751-4777
312 751-7154 fax
www.rrb.gov |
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No. 04-7 |
For
Immediate Release October
2004 |
Railroad
Retirement Benefit
Increases |
Most
railroad retirement annuities, like social security
benefits, are scheduled to increase in January
2005 on the basis of the rise in the Consumer
Price Index (CPI) during the 12 months preceding
October 2004.
Cost-of-living increases are calculated in both
the tier I and tier II benefits included in a
railroad retirement annuity. Tier I benefits,
like social security benefits, will increase by
2.7 percent, which is the percentage of the CPI
rise. Tier II benefits will increase by 0.9 percent,
which is 32.5 percent of the CPI rise. The vested
dual benefit payments and supplemental annuities
also paid by the Railroad Retirement Board are
not adjusted for the CPI rise.
In January 2005, the average regular railroad
retirement employee annuity will increase $35
a month to $1,692 and the average of combined
benefits for an employee and spouse will increase
$48 a month to $2,390. For those aged widow(er)s
eligible for an increase, the average annuity
will increase $21 a month to $884. However, widow(er)s
whose annuities are being paid under the Railroad
Retirement and Survivors' Improvement Act of 2001
are not receiving annual cost-of-living adjustments
until their annuity amount is exceeded by the
amount that would have been paid under prior law,
counting all interim cost-of-living increases
otherwise payable. Almost 33 percent of the widow(er)s
on the Board's rolls are being paid under the
2001 law.
If a railroad retirement or survivor annuitant
also receives a social security or other government
benefit, such as a public service pension or another
railroad retirement annuity, the increased tier
I benefit is reduced by the increased government
benefit. However, tier II cost-of-living increases
are not reduced by increases in other government
benefits. If a widow(er) whose annuity is being
paid under the new law is also entitled to an
increased government benefit, her or his annuity
may decrease. However, the total amount of the
combined railroad retirement widow(er)'s annuity
and other government benefits will not be less
than the total payable before the cost-of-living
increase and before increased Medicare premium
deductions.
For those beneficiaries covered by Medicare, the
basic Part B premium generally deducted from monthly
benefits increases from $66.60 to $78.20 in 2005.
In late December the Railroad Retirement Board
will mail notices to all annuitants providing
a breakdown of the annuity rates payable to them
in January 2005.
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