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Annuities are payable to surviving widows and widowers, children and certain
other dependents. Lump-sum benefits are payable after the death of a railroad
employee only if there are no qualified survivors of the employee immediately
eligible for monthly annuities. With the exception of a residual lump-sum death benefit,
eligibility for survivor benefits depends on whether or not the employee was
“insured” under the Railroad Retirement Act at the time of death.
An employee is insured if he or she has at least 10 years of railroad service,
or 5 years performed after 1995, and a “current connection” with the railroad
industry as of the month the annuity begins or the month of death, whichever
occurs first. The current connection requirement is described at the beginning
of this publication.
If a deceased employee was not so insured, jurisdiction of any survivor benefits
payable is transferred to the Social Security Administration and any survivor
benefits are paid by that agency instead of the Board. Regardless of which
agency has jurisdiction, the deceased employee's railroad retirement and social
security credits will be combined for the purpose of benefit computations.
Types of Survivor Benefits
Annuities are payable to widows, widowers, and unmarried children; in certain
cases, benefits are also payable to parents, remarried widow(er)s, grandchildren
and surviving divorced spouses.
WIDOWS’ and WIDOWERS’ ANNUITIES are
payable at:
Age 60; age reductions are applied to annuities awarded before full retirement
age. The eligibility age for unreduced annuities is gradually rising from age 65
to age 67, depending on the year of birth.
Ages 50-59 if the widow(er) is totally and permanently disabled and unable to
work in any regular employment. The disability must have begun within 7 years
after the employee's death or within 7 years after the termination of an annuity
based on caring for a child of the deceased employee. A 5-month waiting period
is required after the onset of disability before a disability annuity can begin.
Any age if the widow(er) is caring for an unmarried child of the deceased
employee under age 18 or a disabled child of any age who became disabled before
age 22.
Generally, the widow(er) must have been married to the employee for at least 9
months prior to death, unless she or he was the natural parent of their child,
the employee's death was accidental or while on active duty in the U.S. Armed
Forces, the widow(er) was potentially entitled to certain railroad retirement or
social security benefits in the month before the month of death, or the marriage
was postponed due to State restrictions on divorce due to mental incompetence or
similar incapacity.
Survivor annuities may also be payable to a surviving divorced spouse, or
remarried widow(er). Benefits are limited to the amounts social security would
pay and therefore are less than the amount of the survivor annuity otherwise
payable. However, a former spouse may be paid a court-ordered partition
amount.
A surviving divorced spouse may qualify if she or he was married to the employee
for at least 10 consecutive years, is unmarried or remarried under the conditions described
in the next paragraph, and is age 60 or older (50 if disabled). A surviving
divorced spouse who is unmarried can qualify at any age if caring for the
employee’s child and the child is under age 16 or disabled, in which case the
10-year marriage requirement does not apply.
The portion of a survivor annuity equivalent to a social security benefit (tier
I) may be
paid to a widow(er) or surviving divorced spouse who remarries after age 60, or
to a disabled widow(er) or disabled surviving divorced spouse who remarries
after age 50; however, remarriage prior to age 60 (or age 50 if disabled) would
not prevent eligibility if such remarriage ends. Such social security level
benefits may also be paid to a younger widow(er) or surviving divorced spouse
caring for the employee’s child who is under age 16 or disabled, if the
remarriage is to a person receiving railroad retirement or social security
benefits or the remarriage ends.
OTHER SURVIVOR ANNUITIESare payable to:
An unmarried child under age 18.
Anunmarried child age 18 in full-time attendance at an elementary or secondary
school or in approved homeschooling until the student attains age 19 or the end
of the school term in progress when the student attains age 19. In most cases
where a student attains age 19 during the school term, benefits are limited to
the 2 months following the month age 19 is attained. These benefits will
be terminated earlier if the student marries, graduates or ceases full-time
attendance.
Anunmarried disabled child over age 18 if the child became totally and
permanently disabled before age 22.
Anunmarried dependent grandchild meeting any of the requirements described
above for a child, if both the grandchild’s parents are deceased or disabled.
Aparent at age 60 who was dependent on the employee for at least half of the
parent’s support. If the employee was also survived by a widow(er), surviving
divorced spouse or child who could ever qualify for an annuity, the parent's
annuity is limited to the amount that social security would pay.
Survivor Annuity Estimates
The best way for survivors to obtain an annuity estimate is to visit or
telephone a Board field office. Active or retired employees who are
concerned about the amount of benefits which would be payable to their survivors
may also receive estimates from the nearest Board field office.
The following information may be helpful in providing an idea of the amount of
potential survivor benefits:
The average annuity awarded to widow(er)s in fiscal year 2008, excluding
remarried widow(er)s and surviving divorced spouses, was $1,625 a month.
Children received $1,153 a month, on the average. Total family benefits for widow(er)s with children averaged
$3,390 a month. The average annuity awarded to
remarried widow(er)s or surviving divorced spouses in fiscal year 2008 was $914
a month.
Survivor Annuity Tiers
Survivor annuities, like retirement annuities, consist of tier I and tier II
components.
Tier I is based on the deceased employee's combined railroad retirement and
social security credits, and is generally equivalent to the amount that would
have been payable under social security.
Tier II amounts are percentages of
the deceased employee's tier II amount, as described in the
section on formulas.
Survivor annuity amounts may also be determined under certain minimum provisions
which guarantee that a widow(er)’s annuity will be at least equal to the
two-tier benefit the deceased employee would have received at the time of the
award of the widow(er)’s annuity, minus certain reductions including those for
age and receipt of social security benefits, and no less than the spouse annuity
she or he was receiving just prior to the employee’s death.
Survivors with Dual Benefits
Social Security Benefits
The tier I portion is reduced by the amount of any social security benefits
received by a survivor annuitant, even if the social security benefits are based
on the survivor’s own earnings. This reduction follows the principles of social
security law which, in effect, limit payment to the higher of any two or more
benefits payable to an individual at one time. When both railroad retirement
annuities and social security benefits are payable, they are generally combined
into a single payment issued through the Board. A survivor annuitant must notify
the Board if any benefits are received directly from the Social Security
Administration or if those benefits increase other than for an annual
cost-of-living increase.
Public Pensions
The tier I portion of a widow(er)’s annuity may be reduced for receipt of any
Federal, State or local government pension based on the widow(er)’s own
earnings. The reduction generally does not apply if the employment on which the
pension is based was covered under the Social Security Act throughout the last
60 months of public employment.
Most military service pensions and payments from the Department of Veterans
Affairs will not cause a reduction. Pensions paid by a foreign government or
interstate instrumentality will also not cause a reduction. For those subject to
a public pension
reduction, the tier I reduction is equal to 2/3 of the amount of the public
pension.
Employee Annuity
If a widow(er) is qualified for a railroad retirement employee annuity as well
as a survivor annuity, a special guaranty applies in some cases. If either the
deceased employee or the survivor annuitant completed 120 months of railroad
service before 1975, the widow or dependent widower may receive both an employee
annuity and a survivor annuity, without a full dual benefit reduction.
If either the deceased employee or the survivor annuitant had some service
before 1975 but had not completed 120 months of railroad service before 1975,
the employee annuity and the tier II portion of the survivor annuity would be
payable to the widow(er). The tier I portion of the survivor annuity would be
payable only to the extent that it exceeds the tier I portion of the employee
annuity.
If both the widow(er) and the deceased employee started railroad employment
after 1974, the survivor annuity payable to the widow(er) is reduced by the
amount of the employee annuity.
Cost-of-living Increases in Survivor
Annuities
Cost-of-living increases, effective December 1 and included in the January
payment, are made on the basis of increases in national prices or, in some
circumstances, average national wages, and calculated the same way as
cost-of-living increases in employee and spouse annuities.
However, in the case of widow(er)s' annuities computed on the basis of the
initial minimum amount provided under 2001 legislation, the monthly amount will
not increase until the amount payable under previous law plus subsequent
cost-of-living increases is higher than the initial minimum amount.
View presentation on Widow(er)'s Initial Minimum Amount
Work and Earnings Limitations
A survivor annuity is not payable for any month the survivor works for an
employer covered under the Railroad Retirement Act, regardless of the survivor's
age.
Survivors who are receiving social security benefits have their railroad
retirement annuity and social security benefit combined for earnings limitations
purposes. Prior to the calendar year in which full retirement age is attained,
there is a deduction of $1 in benefits for every $2 earned over an exempt amount
($14,160 in 2009). The deduction is $1 for every $3 earned over an exempt amount
($37,680 in 2009) for the months in the calendar year in which the individual
attains full retirement age, up to the month of attainment. Work deductions stop
effective with the month full retirement age is attained. In the first
year in which a survivor is both entitled to an annuity and has a non-work
month, a full annuity can be paid for those months in which the survivor had low
earnings or did not have substantial self-employment, no matter what total
earnings for the year were.
As work and earnings may affect the payment of an annuity, they must be reported
promptly to the Board in order to prevent potential overpayments.
These earnings restrictions do not apply to disabled widow(er)s under age 60 or
to disabled children. However, any work or earnings by a disability
annuitant must be reported and are reviewed to determine whether they indicate
recovery from the disability.
When Survivor Payments Stop
All survivor payments stop upon death, and no annuity is payable for the month of death.
A widow(er)’s annuity will be reduced upon remarriage and in some cases payment
will be prevented. A widow(er)'s, surviving divorced spouse's and
remarried widow(er)'s annuity could also end upon entitlement to another
survivor or spouse annuity under the Railroad Retirement Act which is greater
than the widow(er)'s annuity.
A surviving divorced spouse's or remarried widow(er)'s annuity could stop
when entitled to a social security benefit which equals or exceeds the deceased
employee's basic tier I amount and reduces the annuity amount to zero.
A widow(er)'s or surviving divorced spouse's annuity which is based on a
child in care will end if the child is no longer in the person's care, the
child's eligibility ceases, or remarriage occurs.
A child’s or grandchild’s annuity will stop if he or she marries, reaches age 18, or
recovers from the disability upon which his or her annuity was based. If the
child is 18 and a full-time elementary or high school student, the annuity stops
when full-time attendance ceases, at graduation, or upon attainment of age 19.
In most cases, when a student attains age 19 during the school term, benefits
are extended to the 2 months following the month age 19 is attained.
An annuity will stop if it was based on disability and the beneficiary
recovers from the disability before age 60. A disability annuity can be
reinstated if the disability recurs within 7 years and the widow(er) is still
under age 60.
A parent's survivor annuity may stop upon remarriage; in certain cases, a
remarried parent is entitled to a tier I benefit.
Any of the above occurrences must be reported promptly to the Board in order to
prevent an overpayment.
Lump-sum Death Benefits
A lump-sum death benefit is payable to certain survivors of an employee with 10
or more years of railroad service, or less than 10 years if at least 5 years
were after 1995, and a current connection with the railroad industry if there is
no survivor immediately eligible for a monthly annuity upon the employee’s death.
If the employee did not have 10 years of service before 1975, the lump sum is
limited to $255 and is payable only
to the widow(er) living in the same household as the employee at the time of the
employee's death.
If the employee had less than 10 years of service but had 5 years after 1995, he
or she must have met social security's insured status requirements for the lump
sum to be payable.
If the employee had 10 years of service before 1975, the lump sum is payable to
the living-with widow or widower. If there is no such widow or widower,
the lump sum may be paid to the funeral home or the payer of the funeral
expenses. These lump sums averaged $989 in fiscal year 2008.
If a widow(er) is eligible for monthly benefits at the time of the employee’s
death, but the widow(er) had excess earnings deductions which prevented annuity
payments or for any other reason did not receive monthly benefits in the
12-month period beginning with the month of the employee’s death totaling at
least as much as the lump sum, the difference between the lump-sum benefit and
monthly benefits actually paid, if any, is payable in the form of a deferred
lump-sum benefit.
The average for all types of lump sums was $905 in fiscal year 2008.
Residual Lump-sum Payment
The railroad retirement system also provides, under certain conditions, a
residual lump-sum death benefit which ensures that a railroad family receives at
least as much in benefits as the employee paid in railroad retirement taxes
before 1975. This benefit is, in effect, a refund of an employee’s pre-1975
railroad retirement taxes, after subtraction of any benefits previously paid on
the basis of the employee’s service. This benefit is seldom payable.