Some retired railroad employees may be eligible to receive a supplemental annuity from the RRB. This is in addition to the regular age and service or disability annuity.
Requirements for a Supplemental Annuity
To be eligible for the supplemental annuity, you must meet all of the following requirements:
- Age and Railroad Service - You must be at least age 65 with at least 300 months (25 years) of creditable railroad service, or at least age 60 with at least 360 months (30 years) of creditable railroad service. (Note that the age requirement for the supplemental annuity is not affected by the definition of Full Retirement Age (FRA));
- Qualified for Annuity - You must be eligible for, and have filed for, an age and service or disability annuity. The supplemental annuity can never begin before the regular age and service or disability annuity;
- Railroad Service Before October 1, 1981 - You must have railroad service creditable to at least one month before October 1, 1981; and,
- Current Connection - You must have a Current Connection with the railroad industry.
Reduction for Employer Pension
The amount of your supplemental annuity is reduced if you receive either of the following:
- A monthly pension from your railroad employer that is based in whole or in part on railroad employer contributions.
- A lump-sum distribution from an employer pension in lieu of a monthly benefit
A lump-sum distribution is considerd to be paid even if you roll-over the funds to another account. If a lump-sum distribution is paid in installments, the installment payments are considered part of the single lump-sum distribution. Your own contributions to your pension account do not affect your supplemental annuity. Also, there is no reduction to the supplemental annuity for a pension paid by a railroad labor union.
You are requested on your application, to enter the name(s) of the railroad employer(s) with which you still hold pension rights. Select the category that most accurately applies to the job position that qualified you for the employer pension.
The RRB may forward Form G-88p, Employer's Supplemental Pension Report to your railroad employer if additional information about your employer pension is needed.