Railroad Retirement Board
The U.S. Railroad Retirement Board is an independent agency in the executive branch of the United States government created in 1935 to administer a social insurance program providing retirement benefits to the country's railroad workers.
Who is eligible for funds from Railroad Retirement?
Who Is Eligible for Funds From Railroad Retirement?
- Retirement Benefits. The normal retirement age is 65 to 67, depending on your year of birth. ...
- Disability. If an employee is totally and permanently disabled according to Social Security, he is entitled to a disability annuity from the Railroad Retirement Board.
- Spouses. ...
- Survivor Benefits. ...
How much is your railroad retirement really worth?
The Railroad Retirement Board website illustrates prospective benefits under the two systems. Assuming employees have similar work histories and receive maximum monthly benefits, a person receiving Railroad Retirement would collect $2,700 a month. Under Social Security, the person would receive $1,400 per month.
Do you pay into Railroad Retirement?
Railroad employees pay into the Railroad Retirement system instead of paying Social Security tax and receive similar benefits. Some of these benefits may be taxable. Railroad retirement pension benefits fall into several categories with varying tax consequences.
How do I contact Railroad Retirement?
- RRB National Telephone Service: (877) 772-5772
- Headquarters Personnel Directory: (312) 751-4300
- General TTY: (312) 751-4701
Can you apply for railroad retirement Online?
Applicants may file in person or by telephone and mail.
How long does it take to get your first railroad retirement check?
within 65 daysYou will receive your first payment, or a decision, within 65 days of the date you file your application, or become entitled to benefits, if later.
When can I draw my railroad retirement?
Full retirement age for a railroad employee with less than 30 years of service is age 66 for those born in 1943 through 1954, and gradually increases to age 67 for those born in 1960, or later.
How much is railroad retirement monthly?
The average age annuity being paid by the Railroad Retirement Board (RRB) at the end of fiscal year 2020 to career rail employees was $3,735 a month, and for all retired rail employees the average was $2,985. The average age retirement benefit being paid under social security was approximately $1,505 a month.
Can you collect social security and railroad retirement at the same time?
Answer: Yes, you can apply for and receive both benefits, but the Tier 1 portion of your Railroad Retirement Annuity will be reduced by the amount of your Social Security benefit, so you may not receive more in total benefits.
Who is eligible for railroad retirement benefits?
In order to qualify for railroad retirement benefits, you must have been a railroad worker for at least 10 years, or for at least 5 years after 1995. Workers can receive full retirement benefits at age 60 with 30 years of service. The RRB also pays benefits to family members and survivors of railroad workers.
How do I retire early from railroad retirement?
Your Tier 1 will have an age reduction if: all of the following apply: have an age reduction if you retire before attaining age 65. 120 - 359 months of railroad service, with service before 8/12/1983, the first full month you are age 62. you retire before attaining your Full Retirement Age.
What is full retirement age?
Full retirement age is the age when you can start receiving your full retirement benefit amount. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960, until it reaches 67.
Which is better railroad retirement or Social Security?
Employers and employees covered by the Railroad Retirement Act pay higher retirement taxes than those covered by the Social Security Act, so that railroad retirement benefits remain higher than social security benefits, especially for “career” employees who have 30 or more years of service.
Can I cash out my railroad retirement?
You aren't allowed to take any early withdrawals or loans against your Railroad Retirement Annuity. The earliest you can start receiving funds is when you are at retirement age. For railroaders this can be as early as 60 years old.
How to contact the Railroad Retirement Board?
You should contact a Railroad Retirement Board office or the Board’s toll-free telephone number at 877-772-5772 (TTY 312-751-4701) for information about railroad pension benefits based on those earnings.
How long did you work in the railroad industry?
Worked in the railroad industry for less than 10 years and you have less than five years of railroad earnings after 1995.
Do railroad earnings count toward Social Security?
If you do not meet the minimum qualifications for a Railroad pension, your railroad industry earnings will count toward your Social Security credits. Below are examples of how earnings in the railroad industry may affect your retirement:
How long do you have to be on the railroad to get supplemental annuity?
It means you have 12 months of railroad service in the 30 month period before you start your annuity. You can start receiving the supplemental annuity at age 60 if you have 30 years of service. You’ll receive the annuity at age 65 if you have 25-29 years of creditable service. Included in Tier 1 benefits are also Spousal Benefits, Disability, ...
How many years of railroad service is considered retirement?
Like Social Security, the retirement benefit amount is based on your highest 35 years of railroad service income. An additional benefit that is not available through Social Security the Supplemental Annuity .
What did railroaders want?
Railroaders wanted a separate system that would create a uniform national retirement plan for railroad workers and were able to successfully lobby for the 1937 Railroad Retirement and Carriers’ Taxing Act , which established the National Railroad Retirement program. Later legislation in the early 1970’s restructured the retirement plan into 2 tiers, ...
What is the RRB?
The Railroad Retirement Board (RRB) is an independent agency in the Executive Branch of the Federal Government. It was started in the 1930s to nationalize railroad retirement. Railroaders already had individual company pension plans, but the Great Depression shook up that unstable system and created a retirement crisis for railroad retirees.
What is Tier 2 Social Security?
Tier 2 - Tier 2 is an additional benefit for Railroaders that is not available in the Social Security system. It is built to resemble a defined benefit pension and is based on the tenure you have in the railroad system. This benefit is in addition to any pension, 401k, deferred compensation, or other retirement benefits you are entitled to by ...
What is railroad retirement?
Railroad Retirement provides retirement benefits and comprehensive survivor and unemployment-sickness programs for the nation's railroad workers and their families. Railroad Retirement is administered by the Railroad Retirement Board (RRB), an independent agency in the executive branch of the Federal Government.
What is the Tier 1 tax for railroad employees?
Railroad employees and employers pay a Tier I tax which is the same as the Social Security tax. Employees and employers also pay a Tier II tax which contributes to financing Railroad Retirement benefit payments in excess of coverage provided under Social Security. 2021 Employee Tax Withholding:
How to contact RRB office?
To contact your local RRB office, call (877) 772-5772 or use the RRB Zip Locator at www.rrb.gov to find the office nearest you. Applications for a Railroad Retirement Annuity are accepted by the Railroad Retirement Board up to three months in advance of an annuity beginning date.
When is a spouse's pension payable?
The Railroad Retirement Board generally provides a “Spousal Annuity” that is payable once the spouse reaches a certain age, which is dependent on the employee’s age, date of retirement and the employee’s years of railroad service. If a retired employee with 30 years of service is age 60, for example, the employee’s spouse is also eligible ...
Is Railroad Retirement a Social Security benefit?
Railroad Retirement is a program similar to, but legislatively and administratively separate from, the Social Security system. The two systems (Social Security and Railroad Retirement) are closely coordinated with regard to earnings credits, benefit payments and taxes. Railroad Retirement provides retirement benefits and comprehensive survivor ...
Is a railroad retirement annuity payable for a spouse?
Neither a regular Railroad Retirement annuity nor a spouse annuity is payable for any month in which a retired employee works for an employer covered under the Railroad Retirement Act, including labor organizations.
How long do you have to be married to receive railroad retirement?
First, they must qualify to receive the benefit. In order to qualify, you and your spouse have to have been married at least 1 year when you retire or share a child together under the age of 18. If you have spent 30 years in Railroad retirement and you are 60 you get the awesome benefit of receiving your retirement benefits early.
How many years of marriage do you have to be married to receive a railroad annuity?
Been married to you for at least 10 consecutive years. Not remarried. Not be entitled to a social security benefit (before any reductions) on their own earnings record that exceeds the amount of the divorced spouse railroad annuity.
Can you get spousal benefits if you are both railroaders?
If you and your spouse are both Railroaders do you both receive spousal benefits IN ADDITION to your own benefits? IT DEPENDS. If you both started in the Railroads before 1974, then you are the lucky ones – BOTH OF YOU can receive your own railroad benefit AND a spousal entitlement benefit.
When can I start collecting railroad benefits?
You can begin receiving your benefits: At age 60, if you have 30 or more years of qualified work, or. At age 62.
What are the benefits of railroad retirement?
One of the enormous benefits of receiving railroad retirement is how well it works with Social Security and Medicare. Quick history lesson: The Railroad Retirement Act of 1934 didn’t just protect railroad workers–it laid the groundwork for Social Security the following year. Because of this, the Social Security and the Railroad Retirement Board ...
What is the RRB?
The Railroad Retirement Board (RRB) works with Social Security to provide retirement and disability benefits for qualified railroad workers and their qualified survivors. If you’re already receiving railroad benefits or Social Security, you’ll be automatically enrolled in Medicare. Original Medicare is a fee-for-service health insurance program ...
How old do you have to be to get unemployment?
At age 60, if you have 30 or more years of qualified work, or. At age 62. You’ll need to apply through your local RRB office when you decide to begin receiving your benefits. The agency will begin processing your application up to three months before your benefits start date, so make sure to plan.
How old do you have to be to retire from the railroad?
You can start drawing railroad retirement at age 60 with 30 years of experience, but applying before full retirement age means you’ll receive a reduction if you don’t have enough years of service.
Does Railroad Retirement work with Social Security?
Remember, railroad retirement works with Social Security, not in addition to it. That means your RRB benefit subtracts the amount you receive from Social Security. For example, let’s say your RRB monthly annuity payment is $1,000, and your Social Security payment is $800 per month. The RRB will reduce its amount by $800.
Do you get Social Security if you work for the railroad?
You do–one of the benefits of working for the railroad is that your time worked and taxes paid are automatically transferred to the regular Social Security system if you leave the industry and don’t qualify for railroad retirement benefits.
What to do if you are not collecting Railroad Retirement?
If you are not collecting Railroad Retirement benefits when you turn 65, you should contact your local RRB field office to enroll in Medicare. If you are under 65 and have a disability, you will have to fulfill different eligibility requirements to qualify for Medicare.
What Medicare Parts does RRB automatically enroll you in?
If you are receiving Railroad Retirement benefits or railroad disability annuity checks when you become eligible for Medicare, RRB should automatically enroll you in Medicare Parts A and B . You should receive your red, white, and blue Medicare card and a letter from RRB explaining that you have been enrolled in Medicare.
Apply for Retirement Benefits
Starting your Social Security retirement benefits is a major step on your retirement journey. This page will guide you through the process of applying for retirement benefits when you’re ready to take that step. Our online application is a convenient way to apply on your own schedule, without an appointment.
Ready To Retire?
Before you apply, take time to review the basics, understand the process, and gather the documents you’ll need to complete an application.
