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

Answers are provided by Robert S. Kaufman

Tier 1 Amount Approximates Social Security Benefit

(Posted November 17, 1998)

Question 12: Is my Tier 1 Annuity portion the exact equivalent of what the Social security Administration would have paid if my railroad earnings had been covered by Social Security?

Bloomington IN

Answer: The Tier 1 Amount under Railroad Retirement is approximently what SSA would pay if your railroad service had been credited as Social Security earnings. The actual calculation under Social Security are quite complex and depend on a worker's age & earning history. Because Railroad Retirement pays certain benefits which SSA doesn't, ie. early retirement benefits at Age 60; occupational disability there are certain "deeming" provisions provided by the Railroad Retirement Act in order to calculate benefits which are not provided by SSA. Otherwise, the calculations are exactly as prescribed by the Social Security Act.

Robert S. Kaufman

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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