Regular railroad retirement annuities are calculated under the following two-tier formula:
Tier I Component
The first tier is based on railroad retirement credits and any social security credits an employee has acquired. If you have at least 120 months of railroad service, or 60-119 months of railroad service with at least 60 months of railroad service after 1995, the amount of the first tier is calculated using social security formulas and age requirements. Exception: If you have at least 360 months of railroad service or are disabled and have at least 120 months of railroad service, the amount of the first tier is calculated using social security formulas and railroad retirement age and service requirements.
Tier II Component
The second tier is based on railroad retirement credits only, and may be compared to the retirement benefits sometimes paid to workers in other industries in addition to social security benefits.