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Eliigible Spouse Continues To Work
(Posted April 7, 2006)
Question 574: My wife will turn 60 shortly and she will continue to work in her position as town clerk. I am currently collecting Railroad Retirement benefits after retiring with 40 years of rail sevice. Can my wife collect her share of my pension and continue to work without a penalty of some sort?
Answer: Your wife's employment would be considered as "Last Person Employment" by Railroad Retirement. As such, her Tier 1 would be reduced if she earned more than the annual exempt amount before she reaches her normal retirement age (around age 66 for her year of birth).
Her Tier 2 would be reduced by as much as 50% under a special earnings restriction for those workers and spouses who contine to work in "Last Person Employment" after reaching the eligibility age for benefits. The Tier 2 earnings restriction begins with the first $2 that she earns (there is no exempt amount as for Tier 1) and it also continues past her normal retirement age.
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