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BenefitsLink > Q&A Columns >

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

Answers are provided by Robert S. Kaufman

Tier 2 Benefits

(Posted January 26, 2913)

Question 950: What determines if an employee has Tier I or Tier II benefits?

Answer: Most rail workers receive an annuity that consists of two components: Tier 1 and Tier 2. Tier 1 is similar to a Social Security benefit; it is based on the combined earnings under railroad service and any non-railroad service that was covered by Social Security. Tier 2 is similar to a private pension; it is based only on railroad service.

If a rail worker has between 5 and 10 years of rail service and is eligible for a Total and Permanent Disability Annuity, only a Tier 1 benefit is paid until the employee reaches retirement age.


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
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