Amount payable
For employees meeting the vesting requirements, the additional amount is determined by computing PIA's based solely on the individual's
- railroad service before 1975,
- social security covered earnings before 1975, and
- combined railroad and nonrailroad earnings before 1975.
The vested dual benefit is the amount by which the total of the first two PIA computations exceeds the third PIA computation.
Cost-of-living increase
Increase the vested dual benefit by the cumulative cost-of-living percentage applicable to tier 1 benefits that occurred between
January 1,1975, and the date of retirement
or
January 1, 1982, whichever was earlier.
The computed amount is then frozen; that is, no further cost-of-living increases are applied thereafter.
Age reductions
Apply the same formula for age reductions as used for the tier 1 component of those employees retiring at ages 62 through full retirement age with less than 30 years of service.
No age reduction applies to employees who retire with 30 years of service.