Employee's Special Guaranty Increase

The Special Guaranty provision of the Railroad Retirement Act (RRA) states that the total monthly benefits payable (excluding a supplemental annuity) to the employee's family will not be less than the monthly amount which would have been payable under the Social Security Act (SS Act) if the railroad employment had been covered under the SS Act..

When A Student Can Be Included

A student can be included in the family group if the Special Guaranty rate exceeds the regular railroad retirement rate in the month the child becomes entitled as a student. Otherwise, a student benefit is not payable in a retirement case

Forms Needed to Include A Student in the Family Group

The following forms are available at the RRB field office nearest you to develop the information needed to include the student in the family group:

• Form G-319 Statement Regarding Family and Earnings for the Special Guaranty Computation is required from the employee to provide information about a student’s relationship to the employee.
• Form G-320 Student Questionnaire for Special Guaranty Computation is required from the employee to obtain current information about the school attendance.

Independent Study And Home Schooling

If a student is enrolled at an educational institution for less than 20 hours per week, but participates in the school's independent study program, provide documentation from the school recognizing and providing credits for the independent study.

The RRB requires the documentation listed in Part I for home schooling cases.

One Application Concept for Special Guaranty

A Form G-319, Statement Regarding Family and Earnings for the Special Guaranty Computation, including minor children protects their rights to student benefits when they attain age 18, provided there is no break in entitlement between the month they attain age 18 and the month they become entitled as full-time students.

Employees who have children in elementary or high school at educational institutions, or in home schooling, in the month their children attain age 18, need only submit Form G-320 Student Questionnaire for Special Guaranty Computation to furnish the RRB with verification of the full-time school attendance in order to include the students in the Special Guaranty at age 18. The RRB also requires the documentation listed in Part I for home schooling cases.

A new Form G-319 is not needed.

How A Student Benefit Is Paid

The benefits are not paid directly to the student. If both the employee and the spouse are entitled to railroad retirement annuities, the amount of the total family benefit is divided between the employee and spouse annuities. The employee receives 2/3 of the family total (excluding any divorce spouse) as the employee monthly annuity rate. The spouse receives 1/3 of the family total (excluding any divorced spouse) as the spouse monthly annuity rate.

If there is no spouse annuitant, the total family Special Guaranty rate (excluding any divorced spouse) is paid to the employee as the employee monthly annuity rate.

When the Special Guaranty is No Longer Payable

The Special Guaranty is not payable when the employee annuity is not payable.

Also, the Special Guaranty may no longer be payable when an event, which terminates the entitlement of a family member, causes the regular railroad formula rate to exceed the Special Guaranty rate. The student events are listed in Part IV of this booklet.

When the Special Guaranty ends, student benefits are no longer payable in retirement cases.