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BenefitsLink > Q&A Columns >

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

Answers are provided by Robert S. Kaufman

Penality For Working Immediately After Retirement From Railroad

(Posted April 24, 2002)

Question 173: I have filed for my 60/30 annuity beginning on January 1, 2002. I have continued to hold a second job for a nonrailroad employer because it would cause me hardship to go for 60 days or more without a check. Under the circumstances, will I receive full benefits from January or will I be penalized for continuing nonrailroad work?

Answer: The short answer is "yes", you will lose up to 50% of your Tier 2 & Supplemental Annuity for each month you continue to work in nonrailroad employment (called "Last Person Employment").

Unfortunately, there is no exemption from the penality for work done between filing for Railroad Retirement and receiving your first payment. Although this rule may seem harsh, many retirees can get by because of the extra payments made at retirement by the railroad, such as the last paycheck or payment for unused vacation days.

The Railroad Retirement Board tries to start payments within 45 days even when, as in your case, the board cannot determine the final rate. The partial rate is usually substantial and is close to the final one. If you don't receive your first payment within 45 days, you should recontact the RRB and find out the status of your case.

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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