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Settlements and Railroad Retirement Benefits
(Posted October 6, 2005)
Question 558: I'm presently receiving a disability annunity from Railroad Retirement. I'm looking at a settlement agreement with my former railroad employer, which is not related to an on the job injury. Is there any way RRB would stop future annunity panyments because of a settlement? If the agreement was a lump sum for, say, personal injury, would any prior or future payments have to be reimbursed to RRB?
Answer: The Railroad Retirement Board (RRB) administers two programs, Railroad Retirement, and Railroad Unemployment and Sickness Benefits.
A settlement will normally not affect Railroad Retirment benefits unless a portion of it is allocated to "Pay For Time Lost." "Pay For Time Lost" normally would extend the rail worker's date of last compensated service and would delay the beginning date of the annuity. If Railroad retirment benfits were paid for that same period, the would be recovered from future payments.
On the other hand, a settlement would affect any unemployment or sickness bemnefits paid. Those payments usually are deducted from the settlement and are sent directly to the RRB for redeposit.
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