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Answers are provided by Robert S. Kaufman
Coordination with Private Railroad Pension Plans
(Posted November 30, 1999)
Question 35: I have 34 years of railroad service. I'm disabled, and I receive a Disability Annuity from the Railroad Retirement Board. For over 20 years, I served as an officer of the railroad for which I worked. Next year, when I turn 60, I'll be entitled to retirement benefits from that railroad company. Will this have any effect on my Disability Annuity from Railroad Retirement?
Answer: Generally, retirement benefits paid by a railroad do not have any effect on payments under Railroad Retirement except for the Supplemental Annuity.
With more than 30 years of rail service, you will be eligible for a Supplemental Railroad Retirement Annuity at 60. That benefit is comparatively small, with a maximum monthly amount of $43. Because it is financed by a seperate Trust Fund paid for by railroads (but not by employees), that benefit is reduced by the amount of any private railroad pension, and the railroad receives a "credit" against its tax liability.
Assuming your monthly pension will be atleast $43, you will not receive a Supplemental Annuity under Railroad Retirement.
Otherwise there should be no impact on your Railroad Retirement Disability Annuity.
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