A Non-Covered Service Pension (NCSP) is any payment based on earnings for services performed after 1956 that are not covered as employment under the Social Security (SS) Act or the Railroad Retirement Act (RRA). This payment may either be a monthly check or a lump-sum payment. The NCSP payment reduced the individual’s primary insurance amount, which is calculated based on the individual’s lifetime earnings and determines the monthly Tier I annuity amount.
The Social Security Fairness Act signed into law on January 5, 2025, ended NCSP statutory reductions for railroad retirees who are receiving public pension from work not covered by social security. If you are currently entitled to, or will be entitled to a NCSP payment (or lump-sum payment that is more than just a refund of your own contribution to the fund), there will not be an offset in your annuity effective January 1, 2024.