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Answers are provided by Robert S. Kaufman
Changing From a Reduced 60/30 to a Full 60/30 Benefit
(Posted December 19, 2001)
Question 148: I retired in 2001 and have received a reduced 60/30 benefit since April 2001. According to Q&A 145, I have the option of cancelling my original application, repaying the benefits I received for 2001, and applying for an unreduced benefit effective January 1, 2002. My question is, how do I repay my benefits for 2001? Do I have to pay it back in a single payment or can I work out other arrangements?
Answer: The Railroad Retirement Board is naturally reluctant to announce its policies on repaying benefits until President Bush signs the legislation. But this is what I've learned so far. Keep in mind that it's tentative at this point until the RRB offically announces the final policy.
Each retiree will be given an option of paying a full recovery or spreading out the recovery for up to four years. If the retiree elects to spread the recovery, the RRB will divide the amount into 48 segments. Each month a segment will be deducted from the full 60/30 amount.
If you decide to cancel your application, the RRB will continue to pay you at the reduced rate until it is ready to award full 60/30 benefits (probably around June 2002). Then the RRB will increase your payments to the higher amount and probably apply the additional amount due from January 1 to the recovery of your reduced payments for 2001. They also will begin to recover the remaining balance of your 2001 payments in 48 equal monthly segments.
Soon after the legislation has been signed by the President, you should contact the RRB office where you originally filed, and ask for instructions.
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