How does Railroad Retirement work?

[BR&P]

you make too much already"!

At that point I would have asked him "And just who the **** are YOU to say what I should make?"

The other nice thing is the spouse benefit. I get my retirement, and my wife also gets 47% of what I get as a spouse benefit. And because my wife worked the railroad also, SHE gets HER retirement and I get 47% of that for MY spouse benefit!

The one thing HATE about the system is that, while I can work at WalMart, Home Depot or where ever else, if I work ONE hour on a railroad payroll, I lose my ENTIRE month's benefit, my wife loses that ENTIRE month's spouse benefit, and I lose that month's spouse benefit from her retirement. I would dearly love to just work a week here, two weeks there, and boom around the country where shortlines are short of people. But with that much of a financial penalty, there's no way in the world I would think of it.

Probably about the time I turn 95 years old, they will repeal that!

[BostonUrbEx]

The other nice thing is the spouse benefit. I get my retirement, and my wife also gets 47% of what I get as a spouse benefit. And because my wife worked the railroad also, SHE gets HER retirement and I get 47% of that for MY spouse benefit!

Wait, so as a household, you're essentially pulling in 294% of an annual income?

I thought that if both spouses earn railroad retirement, they each get their 100% and that's it -- nothing extra.

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I have a question: I know even less about social security than railroad retirement. What happens if I'm putting in to social security every year through side jobs/a second job alongside my railroad employment? I get both when I retire? How much does one even earn from social security?

[BR&P]

Wait, so as a household, you're essentially pulling in 294% of an annual income?

I thought that if both spouses earn railroad retirement, they each get their 100% and that's it -- nothing extra.

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I have a question: I know even less about social security than railroad retirement. What happens if I'm putting in to social security every year through side jobs/a second job alongside my railroad employment? I get both when I retire? How much does one even earn from social security?

No, your previous annual income is not exactly what you get as your retirement benefit. There is a complicated formula that takes into account your total career earnings, your highest earning years, and various other factors I don't pretend to understand. Obviously that will vary from one individual to another. But it's not "100%" of your previous annual earnings.

But yes, it is very possible to actually get more money after your retirement than you were getting for working.

Your SS earnings are equivalent to your Tier I portion. Non-RR earnings have the SS added to your total Tier 1 pay-in if I understand correctly.

[dgvrengineer]

Social Security is rolled into RR Retirement and all counted as if it was Tier 1 RR Retirement earnings. You can also retire on SS early and
continue to work for a railroad until you are full retirement age or later and then retire under RR Retirement and collect full RR Retirement
benefits. They will not pay you in addition to SS but pay the difference between your early SS retirement and full RR Retirement benefits plus
your Tier 2 benefits. I took early retirement at 64 from SS and continue to work for a RR. Sometime after I am 66 I will retire as above.

Larry

[RailraoderS]

Can someone help me with this question.. this is my 1st post here after making an account....(I am the wife of a full time CSX employee -he has worked there for 17 yrs so far.. he is 51 yrs old)...His Health insurance covers our entire family.. this question is about how that works - when retirement comes...

If I should start a new thread on this.. please advise me where.. this forum is HUGE!

QUESTION: I have, for the most part, been mostly a Stay at Home Mother (we have 6 kids).. My step Mother came to me not long ago, and asked me how many Social Security CREDITS I HAD -since I have worked mainly in our beginning years.. I have 33 total..(I am 49 yrs old).. She told me that I needed to have AT LEAST 40 credits to someday be eligible for MEDICARE when I retire.. if I do not have these 40 credits.. I would be dependent on getting Medicaid ..

And with being the spouse of a Railroad worker, his Pension & a 401K he started years ago (about $100,000 in there now) -this would render me making too much to even be eligible to even qualify for Medicaid...

So how does Railroad health care work when an Employee retires.. or dies ?? .. does the wife /widow continue to receive benefits, is there a time frame ... or does both of us need to get Medicare.. just like those on Social Security ??

I am wanting to know if I need to get a job so I can earn those 7 more credits ?? This is my plan actually.. but still want to learn how all of this works...

So does Railroad Retirement include some sort of Railroad health care plan or do we , too, fall under Medicare -like everyone else does ??

If you know any links to explain all of this.. please include them.. thank you all so much !

[dgvrengineer]

Railroad Retirement does not include any medical insurance. Usually, post retirement insurance is determined by the employees union contract with his
railroad. Now, I think your step-mother is confusing Social Security with Medicare. They are not related at all. Everyone is entitled (at this time) to Medicare.
You apply for Medicare 3 months before your 65th birthday through the Railroad Retirement Board but it works just like if you were getting Social Security. It has nothing to do with how much you made or how many credits you have accrued. If you have any questions, call the Railroad Retirement Board. They have
a toll free number and are very helpful.

[RailraoderS]

Thank you... now we are worried about His possibly getting LAID OFF...hasn't happened YET ....but at CSX.. they seem to be getting rid of employees and shops all over the United states.. so we are holding our breath... I probably should start a new thread here.. I don't know.. I have so many questions... he heard today.. even though he has been at the RR for 17 yrs straight.. has a 401K.. that IF he gets laid off.. if he takes another job OUTSIDE the RR. that disqualifies him for getting RR retirement, he'd be CUT OFF...

But we also heard unemployment benefits on the RR are TERRIBLE.. like $50 or $60 a day.. is this right ???

So many questions.. we will have 2 sons in college this year.. getting pretty stressed out if he gets laid off..

[CaptainHook]

I been working on the railroad for a few years now, was not told about RR Retirement. So someone who makes $70k-90k throughout their 30 year career can expect to have a railroad retirement of $3500-$4000 a month? THEN if they are married the spouse would receive $1750-$2000 a month as well?!! total $5250-$6000 for 1 month in retirement!!!? Do these figures seem about right or am I off? if so can you help clarify with those figures. Are taxes taken out of that?

I wish I could go back and see Ms. Wellington my 6th grade teacher who said I wouldn't reach the American Dream doing this work and to move on.

[dremoney9972]

Quick question,
I know the lirr and mta metro north get railroad retirement in lieu of social security, was wondering if the same is true for NYC transit?

[DutchRailnut]

no, nycta is not a railroad, and they do not withhold rr retirement but social security.
as with everything , you get what you pay for.

[Kelly&Kelly]

Yes, Captain. The numbers you quote are correct. To earn that maximum payment of Railroad Retirement Annuity, you would need about 30 years on the job with annual earnings in the $120,000 range today. Less earnings or reduced service time would reduce your annuity. A small portion is exempt from federal income tax. In some states, depending on your employer, it could all be exempt from State tax. At applicable age, you receive Medicare benefits, which in your case are administered by the US Railroad Retirement Board.

Remember that your payments to Railroad Retirement throughout your career are significantly larger than they would be if you worked under Social Security.

Railroad workers' lifespans are shorter than US average. So you'll have to live long enough to enjoy your retirement. I wish you good health.

[BostonUrbEx]

Does the RRB only consider "creditable compensation" to be your paychecks *after* taxes? I received a statement from RRB which seems to list my "2015 creditable compensation" well below what I make before taxes. After-taxes seems more reasonable.

[DutchRailnut]

don't forget RR retirement is withheld on Salary, not on arbitraries.

[BostonUrbEx]

I'm not sure what that means. So overtime and holiday pay do not count towards RRB? Just the minimum base pay?

[DutchRailnut]

all hourly pay is income and taxed for pension, but contractual arbitraries like no meals or no heat, work gear allowance or whatever is in your contract is not taxed for Railroad retirement.