How does Railroad Retirement work?

[Pj]

Pretty much for full retirement. If you have military service that can be creditied. You will receive some sort of fundage from the RRB, most likely with a reduced benefit. When you hit 60 or 65 and still working, contact the RRB and they will let you know what options you have available.

[dequino67]

If you have military service that can be credited.

I'm assuming that's only for active duty, of which I only have 3 years. Be nice if the 5 years of inactive duty I have counted....



Thanks Pj.

[COEN77]

If you have military service that can be credited.

I'm assuming that's only for active duty, of which I only have 3 years. Be nice if the 5 years of inactive duty I have counted....



Thanks Pj.

Military credit for Railroad Retirement only counts if you were already working for the railroad like being drafted or a person working for the railroad can enlist doing only one hitch with an exception during wartime than it can be extended. I learned that when I retired from CSX in 2010. I thought military credit counted also. As for full retirement age without 30 years RRB credit it's based on year of birth. That changed about 10 years ago or so.

[beanerschnitzel]

Happy Saturday Everyone!

RRB.gov is not very user friendly even though I consider myself above average with searching keywords, ETC. I am a 44 yr old retired military, collecting a retirement from 24 yrs of service. I have an offer from UP (pending PAT, Medical & back-ground) to start this month. In a perfect world I can work till I'm 65 (perfect world i.e. no furlough) and accumulate 240+ months of service. with this scenario...

1- What king of railroad retirement can I expect to receive?
2- Is the retirement the 80% of the 30 yr career?
3- Will I have to take the RRR minus what I receive from the military?
4- Is my wife still eligible for the Tier 2 plan? 4a- Minus the same 20%?

My wife is a Federal employee that pays into a plan similar to a 401K, but isn't.

5- Will that factor the same as a 401k plus whatever her retirement is and reduce her payment?

She is also 9+ yrs younger than I and wont be able to retire from the Gov't until she's 62ish, approx 6-7 yrs after I'd retire from the RR.

Thank for taking the time to help me figure this out.

[Pj]

If you haven't read thru the entire thread yet, please do. It think most of those questions have been asnwered.

On the RRB.gov site, there is a pdf (don't recall the publication number - but its there under explinatin of benefits) on the penalty for "early retirement" and its substancial.

Bascially, you need 30 years in to have the full retirement. How much of your military service will credit towards that, I dunno. IIRC you will need at least 10 years of railroad service to be vested.

I'm mobile at the moment and can't fully answer the questions, but thats what I recall off the top of my head. The RRB form with the formula's is on the website. If you call their 800#, the phone drones are pretty much unhelpful unless your already in the system - and you won't show up in their system for at least a year. The RR's report the employee's information (usually in April IIRC) so it won't be until the following april that they know you exist (but will have all your time credit showing when you do).

[COEN77]

Happy Saturday Everyone!

I have an offer from UP (pending PAT, Medical & back-ground) to start this month. In a perfect world I can work till I'm 65 (perfect world i.e. no furlough) and accumulate 240+ months of service. with this scenario...

1- What king of railroad retirement can I expect to receive?
2- Is the retirement the 80% of the 30 yr career?
3- Will I have to take the RRR minus what I receive from the military?
4- Is my wife still eligible for the Tier 2 plan? 4a- Minus the same 20%?

My wife is a Federal employee that pays into a plan similar to a 401K, but isn't.

5- Will that factor the same as a 401k plus whatever her retirement is and reduce her payment?

She is also 9+ yrs younger than I and wont be able to retire from the Gov't until she's 62ish, approx 6-7 yrs after I'd retire from the RR.

Thank for taking the time to help me figure this out.

Lot's of good questions. Full retirement is based on year of birth with less than 30 years (360 months) in RRB. The last year for age 65 was 1954. Seeing you were born in 1969 staying a few more years might be beneficial. Anything less would be subject to the 20% reduction which would include the wifes stipend. There is a big difference by staying at least 20 years (240 months RRB credit) anything less would greatly reduce the amount. Not sure if military pension would affect it. Same goes for your wife with her federal employee pension. I do know when comparing social security to RRB it's one or the other can't draw both. 401K's won't affect anything seeing it's investments even with a employer match. As for what a person will get on RRB retirement that's up to the individual it's based on a formula of their railroad earnings for the two tier system one is based on best 5 years the other the last five years. After it's calculated even with a 20% reduction it's still a decent retirement. Just throwing a figure out there as a guideline a few friends that had to retire early with less than 30 years on RRB permanent disability they're collecting around $2800-$3000 a month.

[markhb]

Just curious (I'm in my late 40's and not looking to switch industries): does railroad retirement (Tiers I and II) apply to the job titles that aren't specifically railroad trades (sales & marketing, IT, accounting, etc.), or just to jobs that are specific to the railroad industry? Example: a computer programmer working as a full-time employee for CSX... would they be in Railroad Retirement or Social Security?

[Gadfly]

Just curious (I'm in my late 40's and not looking to switch industries): does railroad retirement (Tiers I and II) apply to the job titles that aren't specifically railroad trades (sales & marketing, IT, accounting, etc.), or just to jobs that are specific to the railroad industry? Example: a computer programmer working as a full-time employee for CSX... would they be in Railroad Retirement or Social Security?

Once you become a full-time railroad employee it doesn't matter WHAT position you hold. Once "vested" you ARE railroad. Period. It has nothing to DO with being a train & engine employee. Railroad is railroad, so you can kiss Socialist IN-security goodbye! Best thing that ever happened to THIS railroader!

GF

[Desertdweller]

Me, too!

[markhb]

Thanks for the answer!

[Jeff Smith]

I normally don't approve advertisements, but this looks like it may be a resource. Caveat emptor.

[N91566]

Can someone explain "maintaining a connection" and "breaking the string"?
I get the obvious, but what are the consequences of taking a non RR job if one has many, many months payed into the RRB?
Thank you in advance!
'566

[kirbster30]

I had a question about railroad retirement. I worked for food business from 16 to 25. I am 25 now joining the railroad. Well the money I paid into Social Security carry over into the railroad retirement where is all that money paid into Social Security A waste?

[BR&P]

Assuming you stay with the railroad to retirement, that SS contribution will be factored into your total lifetime earnings.

[Gadfly]

I had a good laugh when a group of people showed up here some time ago wringing their hands with glee. They somehow had the impression that they could hire out on the railroad in their 40's, work until they were 62-65 and then collect the same pension as the rest of us already retired with only 18-20 years service. They argued me (and others) down with this assertion. When they found out it was NOT true, the group, disappointed I'm sure, disappeared not to be heard from again.

I went out on disability (heart) myself. Railroad retirement was one of the best things that could've happened to me! It is a very difficult lifestyle and takes a toll on one and his family;' I'm living proof of it. Still, with all its difficulties I wouldn't have traded places with anyone, and tho I wondered at the time if I could stick with it. I can look back with a bit of pride on a good career that's like nothing else, where I saw machinery,worked with trains, both steam and diesel, dealt with stuff behind the scenes that rail buffs only dream about. And, again, there's the retirement.

Recently, I was delivering cars for a Toyota dealership as a part-time gig, and the fella I was riding with just flat out asked me just HOW much $$ did I make anyways. Not being particularly friendly towards this person, whom I regard and deal with on a strictly professional level for certain reasons, I was offended by his impertinent question. It was none of his business, so I pulled a figure down out of a hat and told him "$2900/mo" plus whatever I earn as a contract driver!
It wasn't toooo far off the mark, but enough not to reveal my true income. The guy was shocked, and, I guess, offended that I earned that much more than HE did--which happened to be $1480/mo Socialist IN-security and what he earned driving cars. He literally sputtered and blubbered in shock, "Why you don't NEED to be driving cars; you make too much already"! I thought he was going to cry!!!!! And later, when driving with other drivers, he talked about me to the other drivers about how "unfair" it was that railroaders make so much than the "rest of us" and "it oughta be stopped" BWAHHHHHHH! BOO HOO!!!!!!
Of course this man has no understanding of how RRB works and how WE put so much MORE into it during our working years.

Not liking this fellow, who can be a real "butt" at times, knowing that the income disparity worried him so much was, well, WORTH it!!!!


\GF