President Bush signed the Railroad Retirement and Survivors' Improvement Act (RRSIA)
into law on December 21, 2001. We have provided answers to commonly asked
questions about the law below.
Question
How do I get a copy of the changes under the recent legislation of the
Railroad Retirement and Survivors' Improvement Act of 2001.
Answer
RR Retirement Benefit & Financing Changes
news release explains and provides a summary of the changes.
T-35 Leaflet, The RR Retirement and Survivors' Improvement Act of
2001 publication provides more information. If you want the entire text with the exact wording of the bill
(H.R.10) as signed by the President, it is available on the
Library of Congress web site.
Question
I am receiving a widow(er)'s benefit. When will I receive my increase?
Answer
If you currently receive a widow's or widower's benefit from the Railroad
Retirement Board, you will receive a letter by late January. The letter will
advise whether or not you are due an increase, and if so, when you can expect
payment of any increase due.
We are currently calculating the benefits and will not know the exact amount
of anyone's increase until late April. If you are due an increase, the change is
effective February 1, 2002. Accrual checks for the increase due for the months
of February and March will be paid in late April. The May 1, 2002 check (payment
for April 2002) will reflect the new increased monthly rates due to the new
provisions for widow(er)s.
Question
I had been told that if I had been receiving widow's benefits for seven (7)
or more years, that I would not get an increase. When I received the letter from
the Railroad Retirement Board, it said that because my benefits started before
1986, I would not get the increase. I am confused. Which is it, 1986 or seven
(7) years ago (1995)?
Answer
We can understand how the two pieces of information given to you could cause
confusion. Some widow(er)s are entitled to a Widow(er)'s Initial Minimum Amount
(WIMA) calculation and some are not entitled to the calculation. Widow(er)s paid
under the 1937/1974 Act are not entitled to the WIMA calculation. Widow(er)s
paid under the 1937/1974 Act received a letter that mentions 1986 because
1937/1974 Act annuities began before 1986. This means that you are not eligible
for a WIMA calculation. Widow(er)s whose annuities began in 1986 or later were
paid under the 1981 Act and are eligible for a WIMA calculation. The WIMA
amount, however, may be less than one's current rate. While each case is
different, the WIMA will generally not apply if the 1981 Act widow(er) has been
on the rolls for more than seven (7) years. The letters being released from the
Railroad Retirement Board are accurate according to the law. Each case has been
reviewed individually to determine whether or not an increase is payable.
Question
I am still working and plan to retire. Where can I obtain information on my
health insurance coverage? Will I be able to retire early under the new law and
continue my current health insurance coverage?
Answer
If you require specific information regarding private health insurance, or
the effect of the recent legislation on the availability of health insurance to
early retirees and their families, please contact the personnel office of your
railroad employer or your health insurance provider.
Question
I wish to file for benefits. How can I obtain an application?
Answer
At this time, it is necessary for you to contact your local Railroad
Retirement Board field office to obtain an
application.
Question
Is it important that I file for benefits immediately?
Answer
Persons, age 60 or older with 30 years of railroad service, wanting to
receive benefits retroactive to January 1, 2002 or later have up to six months
from the date they wish their annuity to begin to file an application without a
loss of benefits.
Question
I am already receiving reduced benefits. I had over 30 years railroad service
but I retired before age 62 and before the law changed. Will I still have a
reduction?
Answer
Yes, you will continue to receive reduced benefits based on the law that was
applicable at the time you filed. The new law provides that persons whose
retirement begins January 1, 2002 or later with 30 years railroad service can
retire at age 60 or older with no age reduction. If your retirement was recent,
within the last few years, you may wish to contact your local
field office to obtain
more information.
Question
With the new law, after retirement will I still have my benefits reduced for
work deductions?
Answer
The new law does not affect work deductions in any way and they will still be
applied. In 2002, excess earnings work deductions will be applied to all
annuitants born in 1937 or later. In 2002, for persons attaining age 65 this
year with earnings over $30,000 and for persons age 60 to 64 with earnings over
$11,280, work deductions will continue to be applied.
Note: These amounts do not apply to
disabled employee annuitants born in 1937 or later who must notify us of any
amount of earnings, and have work deductions applied if they have earnings of
more than $400 in any month.
Also for all regular retirement annuities, additional work deductions can
also be applied if persons continue to work for their last non-railroad employer
prior to their retirement.
Question
Under the new amendments, is a current connection necessary to receive an
annuity?
Answer
The new law did not change the rules governing a "current connection" with
the railroad industry. A "current connection" is not required in order for an
employee to receive a regular annuity. The current connection is required for
only three entitlements: supplemental annuity, occupational disability, and
survivor benefits. More information can be obtained by reading
The Importance of
a Current Connection for Railroad Retirement Benefits.
Question
I am currently receiving monthly benefits that are reduced because of the
Railroad Maximum. Will this reduction be removed back to the date my annuity
began?
Answer
No, the maximum is eliminated effective January 1, 2002. Benefits paid for
months prior to January will remain the same. If you are due an increase, a
letter is being released to you in late January. Accrual checks for the increase
due for the months of January through April will be paid in late May. The June
1, 2002 check (payment for May 2002) will reflect the new increased monthly rate
due to the elimination of Railroad Maximum.
Question
I have more than 5 (five) but less than 10 (ten) years of railroad service.
Will I be eligible for railroad retirement annuity under the new five-year
vesting provision?
Answer
If you have less than 120 railroad service months, you must have actually
worked or earned 60 railroad service months after 1995 in order to qualify under
the new provision. (Months prior to 1996 are not considered for obtaining the 60
railroad service months needed.) If you do not meet this requirement, you will
not be eligible even though you may have 60 months railroad service prior to
1996.
|