There are as many as 4 components of a regular annuity
- Tier I
- Tier II
- Vested Dual Benefit
- Supplemental Annuity
Specific information about each component is shown below.
Tier I is based on earnings an employee has acquired under both railroad retirement and social security covered employment.
The calculation uses the social security benefit formula, but with railroad retirement age and service requirements.
NOTE: Certain factors may differ for annuities based on disability.
Tier II is based only on railroad earnings.
It is computed under a separate formula that compares to retirement benefits paid over and above social security benefits to workers in other industries.
Vested Dual Benefit
The vested dual benefit is payable as part of the regular annuity if an employee qualified for both railroad retirement and social security benefits before 1975 and met certain vesting requirements.
A supplemental annuity may also be payable to an employee who is age 60 and has at least 30 years of creditable railroad service; or is age 65 and has 25-29 years of railroad service.
A "current connection" with the railroad industry is required for supplemental annuities. Eligibility is further limited to employees who had some rail service before October 1981.
A current connection is generally defined as having at least 12 months of railroad service in the 30 months preceding death or retirement. An employee whose last 12 months of railroad service occurred prior to the 30 months before retirement or death may maintain a current connection if the employee did not perform any regular employment between the end of the 30-month period containing the last 12 months of railroad service and the month of retirement or death. For purposes of the supplemental annuity or survivors' benefits, an employee who was terminated involuntarily and without fault on or after October 1, 1975, after 25 years of service and did not thereafter decline an offer of employment in the same class or craft in the railroad industry is deemed to have a current connection.