Railroad Retirement

Trains Magazine General Discussion
1

Hopefully the forum participants can answer a few questions regarding Railroad Retirement:

  1. Do I understand correctly that a portion of the Railroad Retirement Program contains a component that is akin to a private pension and a component that is akin to Social Security?

  2. I presume the Railroad Retirement Program contains a COLA that is implemented annually to cover inflation for the preceding 12 months. Is this correct?

  3. Assuming the answer to #1 and #2 is yes, does the COLA cover both components of Railroad Retirement?

  4. Social Security beneficiaries who begin taking their benefits before they reach full retirement age have an actuarial reduction of their benefits. Is this also true for Railroad Retirement beneficiaries?

  5. The longer a potential Social Security beneficiary postpones taking his or her benefits, up to age 70 or 70 1/2, the amount of their annual benefit increases dramatically. The annual return is roughly 8 per cent. Is this also true for Railroad Retirement?

  6. Are all of Amtrak’s on-board service employees covered by Railroad Retirement?

2

Yes more or less, Tier 1 is equivalent to SS, Tier 2 is an additonal pension.

Tier 1 should index similarly to SS.

Not sure.

True, however standard retirement age for RR employees with 30 years service is 60. So the reductions are based off age 60.

There is some increase but not that dramatic. Over 40 years service the benefit pretty much maxes out.

They should be.

I would suggest you call the railroad retirement board directly. They can give you the straight answers and I have always found them very helpful.

3

Thanks for your thorough response to my questions regarding Railroad Retirement.