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Answers are provided by Robert S. Kaufman
Continuing to Work After Retirement
(Posted February 27, 2002)
Question 162: I'm 60 with 30 years of railroad service. I plan to apply for Railroad Retirment and continue to work for my current nonrailroad company.
The Railroad Retirement Board said my annuity would be reduced by the maximum because I'm planning to continue to work. If I take my Railroad pension now and at some point in the future quit working, will my full benefits be restored?
Answer: The bottom line is that you will probably lose your entire Tier 1 because of your earnings. If you quit working before 65, your full Tier 1 will be restored. If you continue to work past 65, your full Tier 1 will become payable at 65.
You will also lose half of your Tier 2 and half of your Supplemental Annuity because of your earnings and the fact you are continuing to work for your last nonrailroad employer. Unlike the deduction to your Tier 1, these special work restrictions are applied to the first dollar you earn each year and they continue past 65. You could avoid these restrictions if you changed employers.
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
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