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How Is Spouse Annuity Calulated If Social Security and Pension Involved?
(Posted March 31, 2013)
Question 995: I plan to retire at age 62. My wife will already be retired then, receiving Social Security and a pension (I'm not sure of the amounts). How is her Spouse Annuity calculated?
Answer: Before any reductions, A Spouse Annuity consists of 50% of rail worker's Tier 1, and 45% of Tier 2.
If the spouse is not full retirement age, a reduction of up to 30% for age is applied.
Tier 1 will be reduced by the amount of Social Security. It could also be reduced by 2/3 of any pension from government employment that was not covered by Social Security.
As you near 62, you should ask the Railroad Retirement Board for an estimate of you and your wife's annuities.
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