Subscribe to Free Daily Newsletters
Post a Job

Featured Jobs

DB/CB Plan Administrator

Ingham Retirement Group
(Miami FL / Telecommute)
DC Plan Administrator
Heritage Administrative Services, LLC
(Woodbury NY)
DC Plan Administrator

The Benefit Advantage
(Auburn Hills MI / Telecommute)
Retirement Plan Administrator

Group RHI
(Telecommute)
Defined Contribution Plan Administrator

The MandMarblestone Group, llc
(Philadelphia PA / Telecommute)
Defined Contribution Plan Specialist

Aprio
(Alpharetta GA / AL / NC / Telecommute)
Defined Benefit Plan Administrator

AimPoint Pension
(Telecommute)

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn
Twitter
Facebook

BenefitsLink > Q&A Columns >

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

Answers are provided by Robert S. Kaufman

Transfers between Railroad Retirement, Social Security and Medicare

(Posted June 21, 2004)

Question 469: Does the Railroad Retirement program pay into Social Security for benefits (Medicare, etc.)?

Answer: A portion of the payroll taxes that rail workers and railroads pay goes into the Social Security Trust Funds to reimburse those accounts for payroll taxes on railroad employment Social Security would have received if railroad employment were covered by the Social Security system. Rail workers and employers also pay into the Hospital Insurance Trust Fund, which finances Part A of Medicare.

There is a reverse transfer; Social Security Trust Funds reimburse the Railroad Retirement Trust Funds for benefits that Social Security would be paying if Railroad Retirement were not a separate system. The annual amount is nearly half of the income to Railroad Retirement.


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
Related links:

(restricted access)

(restricted access)

© 2019 BenefitsLink.com, Inc.