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

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.

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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