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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.
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