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BenefitsLink > Q&A Columns >

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

Answers are provided by Robert S. Kaufman

Impact of Refiling for Full 60/30 Benefit

(Posted December 22, 2001 (Revised December 24, 2001))

Question 149: I'm the person who asked Q&A 144. If I decide to cancel my original claim for a reduced 60/30 and agree to pay back the benefits I received for 2001, do I get any service credit for 2001? If I don't, will 2001 just be a "lost year" with no service or earnings credited? In that event, will it affect my "current connection" status? How about Federal income tax liability for 2001 and the amount the RRB withheld each month? Finally, could you possibly show me a copy of the final legislation that President Bush is expected to sign?

Answer: I answer your easiest question first. The following is the link to see the final text of the legislation that was sent to the President:

As for your other questions, here are my answers: If you cancel and repay, 2001 will be a year with no service months or earnings credited to your account. This, in itself, will not affect the amount of your full 60/30 benefit, nor your "current connection" status. Cancelling your original reduced 60/30 application does have Federal income tax implications. And it may be a little complex because the cancellation would be in 2002; if you spread the recovery of your reduced 60/30 benefits over four years, several tax years may be involved. I suggest you pose that question to the RRB when you talk to the local district office.

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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