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Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

Last Person Employment Work Deductions Are Different from Regular Work Deductions

(Posted May 29, 2014)

Question 1135: I am 70-years-old and retiring from a Class I carrier at the end of June. I have worked for an outside contractor part-time during the last 6 months before my retirement and wish to continue working for this company. I earned under $15,480 a year in this part-time work. Will this pre-retirement
employment hurt my Tier 2 benefits? I was hoping that falling under the $15,480 threshold would help.

Answer: In assessing "Last Person Employment" work deductions, the Railroad Retirement Board will reduce your Tier 2 for the first $2 that you earn. The $15,480 annual earnings limit only applies to Tier 1. Your Tier 2 is reduced by $1 for every $2 that you earn from that employer up to a maximum reduction of 50%. And the
Tier 2 reductions are applied regardless of your age.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
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