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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.
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