Annuity rates under the Railroad Retirement Act (RRA) are generally higher than the benefit rates paid under the Social Security Act, especially for railroad employees who have 30 or more years of creditable railroad service. These higher rates can be attributed to the additional retirement taxes paid by employers and employees covered under the RRA.
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The following questions and answers describe these benefits, their eligibility requirements, and how to apply for and claim them. It also explains how a federal sequestration order reduces benefit rates.
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EMPLOYEE GUIDE TO RAILROAD RETIREMENT BENEFITS
Retirement, disability, and survivor benefits paid by the Railroad Retirement Board (RRB) are known as annuities. Annuities are made up of one or more components called tiers. Tier I is based on a combination of your railroad retirement credits and any social security credits you have acquired. It is computed using social security formulas, but with railroad retirement age and service requirements. Tier II is based on your railroad retirement credits only, and is computed under a separate formula. (*IB-2 pages 41-45)
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Annuity rates under the Railroad Retirement Act (RRA) are generally higher than the benefit rates paid under the Social Security Act, especially for railroad employees who have 30 or more years of creditable railroad service. These higher rates can be attributed to the additional retirement taxes paid by employers and employees covered under the RRA.
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The following questions and answers describe these benefits, their eligibility requirements, and how to apply for and claim them. It also explains how a federal sequestration order reduces benefit rates.
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Page Last Updated: Aug 02, 2024 (15:52:25)
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