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BenefitsLink > Q&A Columns >

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

Answers are provided by Robert S. Kaufman

How To Avoid Post-Retirement Work Restrictions For Tier 2

(Posted February 18, 2002)

Question 160: I'm 60 and will retire soon on a 60/30 benefit. I know my Tier 2 will be penalized if I continue to work for my last non-railroad employer. Will I suffer any penality in either Tier 1 or Tier 2 if I leave my current employer and go to work for a new non-railroad employer?

Answer: The answer to your question is "NO" for Tier 2, and "YES" for Tier 1 if you earn more than $11,280 for 2002. Please see Q&A 142 of this column for a complete discussion of post-retirement work restrictions.

In order to avoid Tier 2 work deductions entirely, be sure you quit your current nonrailroad employment before you file for a 60/30 benefit, and do not secure a job with another nonrailroad employer until after you have filed with the U.S. Railroad Retirement Board.

By the way, the Tier 2 work deductions are very severe compared to the those for Social Security & Tier 1. For Tier 2,there is no "exempt amount." Also, they continue beyond age 65. Tier 2 work deductions also apply to a Supplemental Employee Annuity.

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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