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Answers are provided by Robert S. Kaufman
Continuing To Work Outside Railroad Industry After Retirement
(Posted March 26, 2002)
Question 168: I work part-time as a maintenance man at a church cemetery. I earn about $3,000 a year. The church board wants me to continue after I retire from the railroad on 60/30 next month. How will this affect my Railroad Retirement?
Answer: Your work for the church cemetery will be considered by Railroad Retirement as "Last Person Employment." There is a special deduction for Last Person Employment. Your earnings will reduce your Tier 2 and Supplemental Annuity amounts by $1 for every $2 you receive (the gross amount before any reductions for FICA and workers' compensation). But the deduction is not allowed to reduce your Tier 2 or Supplemental Annuity amounts to less than 50% of the full amounts.
At this point, your earnings will not affect your Tier 1 because they are several thousand dollars below the annual earnings limitation.
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