Question 1092: I'm vested with 21 years of railroad service. I left in 1997. I am 57. I work full-time for a junior college and will be vested in its pension in 2017. Can I draw Railroad Retirement at 62, and still work full-time for the college?
Answer: Your plan to continue to work full-time can cause you to lose both portions of your Tier 1 and Tier 2.
First, your Tier 1 will be subject to annual earnings restrictions until you reach your full retirement age. Since you were born in 1957, you will reach your full retirement age at 66-1/2.
The earnings limit in 2014 is $15,480. It's not possible to predict what the limit will be for 2018 when you reach 62 because it's revised each year based on the increase in the average earnings of current workers. If you earn more than the annual limit, you will lose $1 in Tier 1 for each $2 of earnings over the annual limit.
Your work for the junior college will be considered as "Last Person Employment" and your Tier 2 will be reduced by $1 for each $2 in earnings from the junior college beginning with the first $2 in earnings. The maximum reduction is 50% of your Tier 2.