Term |
Definition |
Accelerated Unemployment or Sickness Insurance Benefits |
Payable if employee with 10 years of
service does not have sufficient earnings to qualify for
unemployment-sickness insurance benefits in current benefit year but will
qualify in next benefit year. Must have 14 or more consecutive days of
unemployment or sickness. |
ABD |
The term "annuity beginning date" (ABD)
means the date on which an employee, spouse, or divorced spouse applicant
first becomes entitled to an annuity or any portion thereof. No annuity can
ever begin to accrue on the 31st day of the month. |
Accrual |
Amount of back benefits due. |
Age and Service
Annuity |
Monthly benefit payable to employees with
at least 10 years (120 months) of creditable railroad service, or at least 5
years (60 months) of creditable railroad service after 1995. |
Age Reduction |
Permanent reduction made in the
computation of a retirement or survivor annuity if an individual chooses to
receive benefits prior to the age required for a full unreduced annuity. |
Annual
Earnings Exempt Amount |
The amount of money you can earn in a year
without losing part of your annuity. There are separate Annual Earnings
Exempt Amounts for persons under Full Retirement Age and for
the year in which the person attains Full Retirement Age. |
Annuity |
Monthly railroad retirement benefit
payment. |
BA-6 Form |
Yearly statement providing current and
cumulative record of employee's railroad service and compensation. |
Base Year |
Calendar year from which earnings and
service months are used to determine eligibility for Railroad Unemployment
Insurance Act (unemployment and sickness) benefits. |
Benefit Year
|
The 12-month period usually beginning July
1 of any year and ending June 30 of the next year. Pertains to unemployment
and sickness insurance benefits. |
Creditable Compensation |
The amount of money an employee is paid
for service that counts toward railroad retirement benefits. |
Current
Connection |
An employee has a current connection if he
or she has 12 months of railroad service in the 30-month period immediately
preceding the employee's railroad retirement annuity beginning date or
death. If an employee does not qualify on this basis, but has 12 months'
service in an earlier 30-month period, he or she may still meet the current
connection requirement. A current connection is required for survivor,
supplemental and occupational disability annuities. It is not required for
annuities based on age and service or total disability. |
Direct Deposit
|
Electronic deposits of payments directly
to beneficiary's checking or savings account. |
Designation of ABD
|
At the time of filing, most applicants
either select a specific beginning date or request the RRB to begin the
annuity on the earliest date permitted by law. if the specified date
precedes the earliest date possible, the annuity may not begin until the
earliest possible date.
Under the 1937 Act, the applicant had to designate an ABD before an
annuity could begin to accrue. This is not true under the 1974 Act. Now if
an application is submitted without designation of ABD, the RRB will begin
the annuity on the earliest date permitted by law, provided all eligibility
and entitlement requirements have been met. If the selection of a later ABD
would be more advantageous, the applicant should be given an opportunity to
designate the later ABD. However, without the applicant's approval, we have
no authority to establish an ABD that is any later than the earliest date
possible. |
Earnings |
Income from work performed for another
person or company, or from self-employment. Does not include investments,
interest income, etc. |
Employer |
An interstate railroad or affiliate
engaged in railroad-connected operations. Employer associations and national
railroad labor organizations and subordinate units are also railroad
employers. |
Extended
Unemployment or Sickness Insurance Benefits |
Thirteen consecutive weeks of payments
available if employee has 10 years of service and has exhausted normal
benefits or is not qualified for normal benefits in current benefit year but
was in the previous benefit year. |
Full Retirement Age |
The age at which you can receive a full
Tier 1 benefit unreduced for early retirement. |
Last
Pre-Retirement Nonrailroad Employer |
Your Last
Pre-Retirement Nonrailroad Employer (LPE) is defined as any nonrailroad
individual, company or institution for whom you are working on your annuity
beginning date (ABD) or for whom you stopped working in order to receive an
annuity. This includes work for a Canadian railroad that is not covered
under the Railroad Retirement Act and work as an elected or appointed public
official. |
Lump-sum
Death Payment |
An amount payable to certain survivors of
an employee with 10 years of railroad service, or 5 years of railroad
service after 1995, and a current connection, if there is no survivor
immediately eligible for an annuity upon the employee's death. |
Medicare Hospital Insurance (Part A) |
Helps pay for medically necessary
inpatient care in a hospital, skilled nursing facility or psychiatric
hospital, and for hospice and home health care. |
Medicare Medical Insurance (Part B) |
Helps pay for medically necessary
physician services and many other medical services and supplies not covered
by Part A. |
Normal
Unemployment or Sickness Insurance Benefits |
Payable for up to 130 days in a benefit
year to qualified employees. Days of unemployment or sickness do not have to
be consecutive. |
Occupational Disability Annuity |
Annuity payable when an employee meets
certain age and service requirements with a current connection and is
permanently disabled for his or her regular railroad occupation. |
Railroad Retirement Maximum |
Limits total monthly benefits payable to
an employee and spouse. |
Service Month |
A month of service is credited if an
employee has at least one day of earnings, vacation pay, certain sick pay,
or other compensation credited by a railroad employer or union. Special
rules apply if service months are allocated as a result of a personal injury
settlement. |
Sickness
Benefits |
To be eligible, employee must be unable to
work because of sickness or injury and have earned qualifying creditable
compensation in a base year. |
Spouse Annuity |
Annuity payable to the wife or husband of
an employee annuitant based on age or on caring for the employee's unmarried
child who is under age 18 or disabled before age 22. |
Supplemental Annuity |
Additional amount payable if employee has
at least 25 years of railroad service beginning before 10-1-81 and a current
connection. |
Survivor
Benefits |
Monthly benefits payable to surviving
widows and widowers, children and certain other dependents if the employee
had at least 10 years of railroad service, or 5 years of railroad service
after 1995, and a current connection. |
Tier I Benefit |
A component of a railroad retirement
annuity which approximates a social security benefit. Includes all railroad
and social security earnings. |
Tier II Benefit |
A component of a railroad retirement
annuity which is paid in addition to a tier I benefit. Based solely on
railroad work. |
Total and Permanent
Disability Annuity |
Annuity payable when employee meets
certain age and service requirements and is unable to engage in any
substantial gainful employment due to a permanent medical condition. Also
payable to disabled widow(er)s over age 50 and disabled children over age 18
who became totally and permanently disabled before age 22. |
Unemployment Benefits |
To be eligible, employee must be able to
work and available for work and have earned qualifying creditable
compensation in the base year. |
Vested Dual
Benefit |
Additional amount payable if employee
qualified for both railroad retirement and social security benefits before
1975 and met certain vesting requirements. |
Work
Restrictions |
Annuity not payable if working for
railroad or rail union. Employee and spouse tier I, vested dual benefits and
survivor benefits reduced if earnings over certain limits. Work performed
for retired railroad employee's or spouse's last pre-retirement nonrailroad
employer reduces tier II and supplemental benefits. |