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When Will 5-Year Vesting Begin?
(Posted July 21, 2001)
Question 115: Will the 5-year vesting proposal ever come about? It would certainly help me. I plan to retire at 62 with 36 years under Social Security and 6 years under Railroad Retirement by that time. Also, when I retire, will I get more from Social Security or Railroad Retirement?
Answer: Five year vesting will go into effect if H.R. 1140 is passed by Congress and signed by President Bush. The legislation is pending in the House of Repersentatives.
If H.R. 1140 becomes law, you will be vested for both Social Security and Railroad Retirement.
You would most likely receive more from Railroad Retirement because Tier 1 would be larger than your Social Security benefit alone. This is because Railroad Retirement combines your earnings from both programs whereas Social Security does not when you are vested for Railraod Retirement. And you would receive a Tier 2 from Railroad Retirement (Social Security does not have a similiar benefit).
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