What The Special Guaranty Provision Means

The Special Guaranty provision of the RRA states that the total monthly benefits payable (including any vested dual benefits but excluding any supplemental annuity) to you and your family will not be less than the monthly amount which would be payable under the SS Act if railroad service after 1936 were credited as "employment" under the SS Act.

The Special Guaranty rate is referred to as an "increase" because the employee must be entitled to an RR Act employee annuity and the Special Guaranty rate must exceed the regular RRA formula rate to apply.  There are two basic types of Special Guaranty computations – one type for disability annuitants with a disability freeze and one type based on the employee’s age and railroad service.

Special Guaranty Based on Disability

You may be entitled to the Special Guaranty computation at any age if you are eligible for a disability freeze under SS Act rules. It means that you are considered totally and permanently disabled for all employment, the disability is expected to last at least 12 months, and you have the required Quarters of Coverage under SS Act rules.

The disability freeze is determined based on the medical evidence submitted for you and based on your earnings record. All of your earnings from railroad and social security-covered employment are used as if they were earnings under the SS Act.

The disability freeze is further explained in booklet RB-1D, "Employee Disability Benefits".

Your Special Guaranty benefit based on disability is not reduced for age.

Special Guaranty Based On Age

You may be entitled to the Special Guaranty computation based on age if you have attained age 62 for a full month and you have an SS Act Insured Status. See booklet RB-1, "Employee Age and Service Annuities" for an explanation of SS Act Insured Status.

When The Increase Can Begin Based On Disability Freeze

The RRA limits the points at which your annuity can be tested for the Special Guaranty increase.

• You Have a Disability Freeze - The Special Guaranty increase can begin the later of:
• your annuity beginning date; or,
• if a disability waiting period is required, the first full month after the five-month disability waiting period. (The waiting period begins with the date of your disability onset and extends five full calendar months. If you had a disability freeze in the past which terminated based on recovery from disability, a new waiting period may not be required).
   
• You Do No Have a Disability Freeze - The Special Guaranty increase would be based on your age as explained in the next section.

When The Increase Can Begin Based On Age

The increase can begin the later of:

• your annuity beginning date;
• the first full month you are age 62; or,
• the first full month your spouse, who was married to you on your employee annuity beginning date, is age 62 and meets the other spouse eligibility requirements.

If both you and your spouse are entitled to RRA annuities, the Special Guaranty increase is divided between the employee and spouse annuities. You receive 2/3 of the family total (excluding any divorced spouse) as your monthly annuity rate. Your spouse receives 1/3 of the family total (excluding any divorced spouse) as the spouse monthly annuity rate.

If you are not married, or your spouse does not meet the requirements for an RRA spouse annuity, the total family rate (excluding a divorced spouse) is paid to you as your annuity rate.

An RRA divorced spouse annuity is not increased under the Special Guaranty.

When the Special Guaranty Increase Is No Longer Payable

Effective the month the regular RRA annuity computation exceeds the Special Guaranty rate, in other than work deduction cases, the Special Guaranty rate will no longer be payable. This could occur:

• when family members become entitled to other benefits (see Part IV); or,
• due to terminating events for family members (see Part V).