As explained in the section "Tier I," a widow(er) type annuity must be adjusted for any public service pension payment, based on your earnings, that you receive.
A public service pension is the retirement pay you receive because you worked for the Federal Government of the United States, a state government or any political subdivision of a state, such as a city, county, town, township, village, school or sanitation district. The definition of "state" includes the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam and American Samoa. Work for the government of a foreign country is not included.
The public service pension may either be monthly checks or a lump-sum payment. It may be administered by the government agency or a private insurance company. The following are not considered to be public service pension payments:
- Social security benefits.
- Railroad retirement annuities.
- Veteran affairs benefits.
- Worker's compensation.
- Black lung benefits.
In addition, your annuity will not be adjusted for a public service pension if:
- you were eligible for or entitled to a public service pension before July 1, 1983; a special exemption may apply to you. Contact an RRB field office if this situation applies to you.
- you worked for state or local government:
- Your application for benefits was filed after March 2004 and your date last worked is later than June 30, 2004 and FICA taxes were deducted from your public service wages for 60 months. Coverage must include the last month of employment.
- Your application for benefits was filed before March 2004 or your date last worked is before July 1, 2004, FICA taxes must have been deducted on the last day of your public service employment.
- you are a federal employee and you elected coverage under the Federal Employee Retirement System (FERS). If FERS coverage was elected in 1998, you must have worked for a minimum of five years under FERS.
If you are receiving a public service pension when you file an application, you must report, to the RRB, any changes in the amount of the public service pension payments.