Social
Security Benefits
If you are entitled to Social Security (SS) benefits based on any wage
record, your spouse annuity Tier 1 component
or your divorced spouse annuity will be offset for those SS benefits (before any
withholding under the SS Act for your earnings over the Annual Earnings Exempt
Amount). This is why your SS benefits are certified to the RRB for payment. If
you have already filed for your SS benefits, it is important to include the SS
benefit information on your annuity application. This will help to prevent an
overpayment of your annuity.
Annuity Based on at Least 120 Months of
Railroad Service -
Your railroad retirement application may be used to protect your filing date
for SS benefits if you have not yet filed at the Social Security Administration
(SSA) and will be entitled to the SS benefits within three months. This means
the date you file your railroad retirement application can be used as the date
you file for SS benefits. If you want to use your railroad retirement
application to protect your filing date, the RRB representative will prepare
Form RR-8 "Notice of Protection of Filing Date for Social Security Benefits" and
send a copy to your local SSA office. The SSA office will contact you to secure
an application for SS benefits.
Your railroad retirement application may protect your filing date, but it is
not an application for SS benefits. You must file a separate application for
those benefits at SSA.
In many cases, filing for SS benefits will not affect your total benefit
rate, because of the deduction in your annuity. It is usually not to your
advantage to apply for benefits at both agencies. It is a good idea to discuss
this matter with an RRB representative before deciding to file for SS benefits.
Contact your local RRB office for information about your situation before filing
at SSA.
Annuity Based on 60-119 Months of
Railroad Service with at least 60 months of Railroad Service After 1995 –
Your railroad retirement application is also deemed to be an application for
any SS benefits that you may be entitled to on the employee's earnings record or
your own earnings record.
Other Railroad Retirement Annuities
If you are entitled to more than one Railroad Retirement Act (RRA) annuity,
the other RRA annuity can have an effect on your spouse or divorced spouse
annuity.
Spouse Annuity -
If you are entitled to both an RRA employee annuity based on your own
earnings record, and an RRA spouse annuity based on a different earnings record,
the reduction to your RRA spouse annuity depends on whether or not there is
railroad service before January 1, 1975 on either earnings record:
- Railroad Service Before January 1, 1975 -
If either earnings record has railroad service before January 1, 1975, your
RRA spouse annuity Tier 1 is reduced by your own RRA employee annuity Tier 1.
The reduction in your RRA spouse annuity Tier 1 may be restored to your RRA
spouse annuity Tier 2; or
- No Railroad Service Before January 1, 1975 -
If neither earnings record has railroad service before January 1, 1975, your
RRA spouse annuity Tier 1 and Tier 2 is reduced by your own RRA employee
annuity Tier 1 and Tier 2. The reduction is not restored to your RRA spouse
annuity Tier 2.
Divorced Spouse Annuity -
If you are entitled to both an RRA employee annuity based on your own
earnings record, and an RRA divorced spouse annuity based on a different
earnings record, your RRA divorced spouse annuity is reduced by your RRA
employee annuity.
Survivor Annuity -
If you are entitled to both an RRA spouse/divorced spouse annuity and an RRA
survivor annuity based on a different earnings record, only the higher of your
RRA spouse/divorced spouse annuity or your RRA survivor annuity is payable
unless you elect to receive the smaller benefit.
Public Service Pensions
General -
Any "Public Service Pension" (PSP) payable to you may have an effect on the
amount of your spouse annuity Tier 1 component or your divorced spouse annuity.
A PSP is retirement pay you receive for public service employment. This may
either be monthly payments or a lump-sum payment. It may be administered by a
government agency or a private insurance company.
If you are currently entitled to, or will be entitled to, a PSP (or lump-sum
payment that is more than just a refund of your own contribution to the pension
fund), there may be an offset in your annuity.
Public service means service performed for the Federal Government of the
United States, a State government, or any political subdivision of a State, such
as a city, county, town, township, village, school or sanitation district. The
definition of State includes the 50 states, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.
Exceptions to PSP Offset -
If you believe that you qualify for an exception from the PSP offset, please
ask your RRB field office. In general, the PSP offset will not apply to your
Tier 1 if your:
- public service employer was an interstate instrumentality i.e. rare cases
in which two or more states are organized as a corporation to perform a
governmental function (they are not considered public service employers for
reduction purposes); or,
- public service employer was a government of a foreign country (such as
Canada); or,
- government pension payments are social security, railroad retirement,
veterans' affairs, military service, worker’s compensation or black lung
benefits. (However, social security benefits will cause a reduction to Tier 1
and railroad retirement benefits will cause a reduction);
- Federal employment was covered under the Federal Employees Retirement
System (FERS) and FICA taxes were deducted from the last 60 months of your
Federal employment. (Note that a person covered under the Federal Civil
Service Retirement System (CSRS), who has a payroll deduction for Medicare
(Hospital Insurance) only tax, does not qualify for exemption from the PSP
offset); or,
- state or local government employment was covered under the Social Security
Act and:
- Federal Insurance Compensation Act (FICA) taxes were being deducted on
your last day of employment, and either you filed for your spouse annuity
before April 2004 or your last day of state or local government employment
was before July 1, 2004; or
- FICA taxes were deducted from the last 60 consecutive months of your
employment and you file for your spouse annuity after March 2004 and your
last day of state or local government employment is after June 2004.
Note: If your last day of state or local government employment is before
March 2, 2009, there is a provision for reducing the requirement of FICA
taxes deducted for 60 consecutive months by giving you credit for months
before March 2004 for which you paid FICA taxes.
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