BenefitsLink > Q&A Columns >
Answers are provided by Robert S. Kaufman
What Is Tier 1?
(Posted May 13, 2008)
Question 664: Can you explain what "Tier 1" is?
Answer: Railroad Retirement benefits consist of two parts, called "tiers."
Tier 1 is the basic benefit. It is computed similar to how Social Security benefits are computed. Tier 1 uses all the worker's earnings as counted by either Railroad Retirement and Social Security. It is reduced by the amount of any Social Security payments the worker is receiving.
Tier 2 is computed like a private industry pension. It is based only on earnings in the rail industry. It is not reduced for Social Security payments the worker is receiving.
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