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Social Security Benefits

If you are entitled to Social Security (SS) benefits based on any wage record, your spouse annuity Tier I component or your divorced spouse annuity will be offset for those SS benefits (before any withholding under the SS Act for your earnings over the Annual Earnings Exempt Amount). This is why your SS benefits are certified to the RRB for payment. If you have already filed for your SS benefits, it is important to include the SS benefit information on your annuity application.

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Reductions for Other Benefits

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Spouse Tier II Component Work Deductions

Employee annuitants must report earnings from their own Last Pre-Retirement Nonrailroad Employer (LPE). They are charged work deductions against their Tier II components and their supplemental annuities, if any, and the Tier II components of spouses entitled on their earnings records.

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Last Pre-Retirement Employment (LPE)

Definition

Your Last Pre-Retirement Nonrailroad Employment (LPE) is defined as any nonrailroad individual, company or institution for whom you are working on the date your spouse annuity begins or for whom you stopped working in order to receive an annuity. Even work for which you are paid minimal earnings can be LPE. A few exceptions for types of nonrailroad work are listed below.

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Spouse Tier I and Divorced Spouse Annuity Work Deductions

If both you and the employee are Full Retirement Age (FRA), or older, on your ABD, you may skip to Tier II Component Work Deductions. You are not affected by work deductions to your spouse annuity Tier I component or divorced spouse annuity.

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Self-Employment and Other Nonrailroad Work

Earnings from nonrailroad employment, including self-employment, after you annuity beginning date may cause work deductions. Nonrailroad work is any job that is not in the railroad industry. This includes work for a Canadian railroad, which is not covered under the Railroad Retirement Act, and work as an elected or appointed public official.

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Deductions For Earnings

A spouse annuity is not payable for any month in which you are or the employee is in railroad service. In addition, nonrailroad earnings after your Annuity Beginning Date can have an effect on your annuity computation.

A divorced spouse annuity is not payable for any month in which you are in railroad service.

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Divorced Spouse Annuity

A divorced spouse annuity is limited to Tier I component only. Regardless of the employee's total years of railroad service, your annuity is reduced by 1/144 for the first 36 months you are under Full Retirement Age (FRA) and by 1/240 for each additional month you are under FRA on your annuity beginning date. However, if you were entitled to a spouse annuity before your final divorce from the employee, any previous spouse annuity age reduction is applied to your divorced spouse annuity.

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Spouse Annuity When Employee Has At Least 360 Months of Railroad Service

Please refer to the summary chart below to see if an age reduction applies to your spouse Tier I component.

Your spouse Tier II will not have an age reduction.

Spouse Age Requirements when Employee has at Least 360 Months Railroad Service

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Spouse Annuity Age Reduction When Employee Has Less Than 360 Months of Railroad Service

Please refer to the summary chart below to see if an age reduction applies to your spouse annuity.

Tier I Component Age Reduction

Your spouse Tier I component age reduction depends on the employee's total years of railroad service.

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