About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (May 11, 2023)

handle is hein.crs/govelpb0001 and id is 1 raw text is: CongressionaI Res ar h Service Informing Ih legisIative debae since 1914 Updated May 11, 2023 Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits Introduction The Railroad Retirement Board (RRB) administers retirement, survivor, disability, unemployment, and sickness benefits for railroad workers and their families under the provisions of the Railroad Retirement Act (RRA) and the Railroad Unemployment Insurance Act (RUIA). Work for railroads engaged in interstate commerce, railroad associations, and railroad labor organizations is covered by the railroad benefits system instead of Social Security or the federal-state unemployment compensation system. During FY2022, the RRB paid $13.4 billion in retirement and survivor benefits to approximately 506,000 beneficiaries. Unemployment and sickness benefits totaling $94 million were paid to approximately 23,000 claimants. The number of railroad workers has been generally declining since the 1950s. In December 2022, about 194,000 railroad workers were employed. The RRB consists of three members appointed by the President with the advice and consent of the Senate to staggered five-year terms. One member is appointed on the recommendation of the railroad industry, one is appointed on the recommendation of railroad labor organizations, and the chair is appointed to represent the public. Retirement, Survivor, and Disability B3enefits Similar to Social Security, the RRB provides retirement, survivor, and disability benefits to covered employees and their families who meet insurance requirements by working in covered railroad employment and paying RRA payroll taxes (see Table 1). Retirement Benefits Tier I retirement annuities are designed to be nearly equivalent to Social Security retirement benefits and are calculated using the Social Security benefit formula. To be eligible for retirement benefits, a person must have at least 10 years of railroad service or at least five years after 1995 and a sufficient combination of railroad service and work covered by Social Security. Tier I benefits are more generous than Social Security in that, at the age of 60, railroad workers with at least 30 years of covered railroad work may receive unreduced retirement annuities, unlike Social Security, which pays unreduced benefits only at full retirement age and pays reduced benefits at age 62. Because work covered by Social Security is counted toward tier I benefits, if a railroad retirement annuitant is also awarded Social Security benefits, those benefits are subtracted from tier I benefits. Tier II retirement annuities are paid in addition to tier I benefits and any private pension and retirement savings plans offered by railroad employers. Tier II benefits are similar to private pensions and are based on the worker's 60 highest months of railroad earnings. Table 1. Railroad Retirement, Survivor, and Disability Benefits, September 2022 Number of Benefits Type of Benefit (% of Total Benefits) Retirement 179,295 (30.3%) Supplemental Annuities 105,171 (17.80%) Disability 64,875 (11.0%) Spouses 141,566(23.9%) Surviving Spouses 90,595 (15.3%) Surviving Children 7,306 (1.2%) Partition Paymentsa 2,646 (0.4%) Total 591,454 (100%) Source: Railroad Retirement Board, Bureau of the Actuary, Quarterly Benefit Statistics, July-September 2022, Table 1. Notes: There were 477,271 beneficiaries in September 2022. Beneficiaries may be eligible for more than one type of benefit. The total number of benefits does not include the 10 dependent parents' annuities. a. Partition payments are made to spouses pursuant to divorce rulings. Supplemental annuities are paid to employees first hired in railroad work before October 1981 and who are age 65 or older with at least 25 years of railroad service or age 60 with at least 20 years of service. Workers must also have a current connection to the railroad industry (generally 12 months of railroad work in the previous 30 months prior to retiring). In addition, vested dual benefits are paid to those who were insured for both railroad retirement and Social Security in 1974 when the two-tier railroad retirement benefit structure was established. Disability Benefits Railroad workers may be eligible for disability benefits if they are unable to work because of physical or mental impairments. Total disability benefits are paid to workers who are permanently and totally disabled and unable to perform any work. Occupational disability benefits are paid to workers unable to perform their regular railroad occupations if they are age 60 or older with at least 10 years of railroad service or any age with at least 20 years of

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most