RB-30, Spouse/Divorced Spouse Annuity

Spouse/Divorced
Spouse Annuity

United States of America
Railroad Retirement Board
Visit our Web site at www.rrb.gov

Form RB-30 (05-09)

INTRODUCTION

This is important information regarding your spouse or divorced spouse annuity
under the Railroad Retirement Act (RRA). We recommend that you read this booklet
before you file your application. It explains the requirements you must meet to qualify
for a spouse or divorced spouse annuity.
The employee must file a separate application to qualify for an employee annuity
before you can be paid a spouse or divorced spouse annuity on the employee's earnings record. However, in certain cases, a divorced spouse can be paid an annuity if the
employee is eligible and not receiving an annuity, and both the employee and
divorced spouse are at least age 62 for a full month. Booklet RB-1, Age and Service
Employee Annuity, explains the employee application and entitlement requirements.
In order to receive a spouse or divorced spouse annuity, you must file an application
and meet the requirements, as explained in Part I and Part II of this booklet
Part VII of this booklet explains what will happen after you file your application and
includes information about how and when you will receive your monthly payments.

Railroad Retirement Board (RRB) representatives will be happy to discuss and explain
the information included in this booklet. To locate the nearest office, visit our Web site
at www.rrb.gov or call 877-772-5772. When contacting the RRB by telephone or mail,
always provide your RRB claim number, your name, and your daytime telephone
number.
Your railroad retirement annuity is affected by certain events that may occur. A
description of these events and an explanation of how you should report them are
covered in the Booklet RB-9, Employee and Spouse Annuities - Events That Must Be
Reported. Because these events can take place any time after you receive your annuity
payments, you should keep the RB-9 booklet for future reference.

Important Notices
Be sure to read the important notices at the end of this booklet.

Other Booklets of Interest
IB-2 Railroad Retirement and Survivor Benefits
RB-3 Furnishing Evidence to Support Your Claim
G-179 Special Guaranty in Employee and Spouse Annuities
RRB booklets are available on the Railroad Retirement Board's Web site at
www.rrb.gov.

TABLE OF CONTENTS
PART I - APPLYING FOR YOUR ANNUITY
Chapter 1
Marriage Requirements for Spouse or Divorced Spouse Annuity
Chapter 2
Age Requirements for Spouse Annuity or Divorced Spouse Annuity
Chapter 3
Annuity Based on Child-In-Care
Chapter 4
Additional Requirements You Must Meet to Receive a Divorced Spouse
Annuity
Chapter 5
Additional Requirements for Annuities Based on 60-119 Months of
Railroad Service with at Least 60 Months of Railroad Service After 1995
Chapter 6
Selecting Type of Annuity on Your Application

3
3

PART II - WHEN YOUR ANNUITY CAN BEGIN
Chapter 7
Stop Railroad Work
Chapter 8
File RRA Annuity Application
Chapter 9
Earliest Possible Spouse Annuity Beginning Date
Chapter 10 Earliest Possible Divorced Spouse Annuity Beginning Date

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4
5
5

1
1
2
3

PART III - REDUCTIONS FOR EARLY RETIREMENT
Chapter 11
Basic Formula
Chapter 12
Full Retirement Age for Spouse and Divorced Spouse
Chapter 13
Spouse Annuity Age Reduction When Employee Has Less Than 360
Months of Railroad Service
Chapter 14
Spouse Annuity When Employee Has at Least 360 Months of Railroad
Service
Chapter 15
Divorced Spouse Annuity Age Reduction

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7

PART IV - DEDUCTIONS FOR EARNINGS
Chapter 16
Self-Employment and Other Nonrailroad Work
Chapter 17
Spouse Tier 1 and Divorced Spouse Annuity Work Deductions
Chapter 18
Your Last Pre-Retirement Nonrailroad Employer
Chapter 19
Spouse Annuity Tier 2 Work Deductions

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8
9
9

PART V - REDUCTIONS FOR OTHER BENEFITS
Chapter 20
Social Security Benefits
Chapter 21
Other Railroad Retirement Annuities
Chapter 22
Public Service Pensions

10
10
11

PART VI - DEDUCTIONS FOR OTHER FEDERAL PROGRAMS
Chapter 23
Medicare Coverage and You
Chapter 24
Federal Income Tax Withholding

12
14

6
6
6

TABLE OF CONTENTS
PART VII - AFTER YOU APPLY FOR YOUR ANNUITY
Chapter 25
Notice of Decision about Your Application
Chapter 26
How Payments Are Made
Chapter 27
Direct Deposit to a Financial Institution
Chapter 28
Change of Address
Chapter 29
When Your Annuity Is Not Payable
Chapter 30
When Your Annuity Ends
Chapter 31
Records You Should Keep

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14
15
15
16
16
16

APPENDIXES
Appendix A
Appendix B
Appendix C
Appendix D

Spouse Age Requirements - Employee Has 60 - 359 Months of Railroad Service
Spouse Age Requirements - Employee Has At Least 360 Months of Railroad
Service
Divorced Spouse Age Requirement
Determining Your Work Deductions

IMPORTANT NOTICES
Nondiscrimination on the Basis of Disability
Fraud and Abuse Hot Line
Paperwork Reduction Act and Privacy Act Notices

PART I APPLYING FOR YOUR ANNUITY
A spouse annuity under the Railroad Retirement
Act (RRA) is a monthly amount paid to the wife
or husband of a retired railroad employee. A
divorced spouse annuity under the RRA is a
monthly amount paid to a person who is legally
divorced from the employee. Included in this
section are the requirements you must meet to
receive a spouse or divorced spouse annuity.
Shorten the processing time for your annuity
application by submitting proof of your date of
birth and proof of marriage or divorce to your
local Railroad Retirement Board (RRB) office
now. Booklet RB-3, Furnishing Evidence to
Support Your Claim, will explain acceptable evidence for proof of age and proof of marriage or
divorce. Whenever sending documents to the
RRB, always include your name, social security
number, and daytime telephone number where
you can be reached.
You may file your application up to three
months before your annuity beginning date.
We recommend that you read this booklet and
read booklet RB-3, Furnishing Evidence to
Support Your Claim, before you file your
annuity application.

Chapter 1 - Marriage Requirements for
Spouse or Divorced Spouse Annuity
A. Spouse Annuity - In order to qualify for a
spouse annuity, you must be the legal spouse
of the employee and you must have been
legally married to the railroad employee for
at least one year immediately prior to filing
your spouse annuity application. The oneyear marriage requirement is waived if any of
following conditions exist:
1. you are the natural parent of the railroad
employee's child; or,
2. you were eligible for a widow(er)'s,
parent's, or disabled child's annuity
under the Railroad Retirement Act in the

month before your marriage to the
employee; or,
3. you had met the one-year marriage
requirement for a previous spouse
annuity on the employee's earnings
record before a divorce and you later
remarried that employee.

B. Divorced Spouse - The marriage requirement
for a divorced spouse annuity is met if your
marriage ended by a final divorce decree and:
1. you were legally married to the railroad
employee for at least 10 consecutive years
immediately preceding the date of your
final divorce decree; and,
2. you are divorced from that railroad
employee; and,
3. you are not currently married to anyone.
(If you remarried after the divorce from
the employee, the later marriage must
have terminated.)

Chapter 2 - Age Requirements for Spouse
Annuity or Divorced Spouse Annuity
A. Spouse Annuity Age Requirements - The
employee must be currently receiving an
employee annuity and must attain a certain
age in order for you to qualify for a spouse
annuity. If the employee has attained the
required age, you may then be eligible for a
spouse annuity, regardless of your age, if you
have the employee's Child-in-Care. Child-inCare is explained in Chapter 3. Otherwise,
your own age requirement is explained in
this chapter and summarized in the
Appendixes.
The age requirement for a spouse annuity
depends on both the employee's total months
of railroad service and the employee's
Annuity Beginning Date (ABD). Your Full
Retirement Age (FRA) affects the amount of
any age reduction to your spouse annuity as
explained in Chapter 12 and Chapter 13.

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1. Employee's ABD is After December 2001
and Based on 60-119 Months of Railroad
Service with at Least 60 Months of
Railroad Service After 1995 - The
employee must be at least age 62 to
qualify you for a spouse annuity. The
employee must have a Social Security (SS)
Act Insured Status (see Chapter 5) to
qualify you for a Tier 1 component.
You must have attained age 62 for a full
month.
2. Employee's ABD is After December 1974
and Based on 120-359 Months of Railroad
Service - The employee must be at least
age 62 to qualify you for a spouse
annuity.
You must have attained age 62 for a full
month.
3. Employee's ABD is After June 1974 and
Based on at Least 360 Months of Railroad
Service - The employee must be at least
age 60 to qualify you for a spouse annuity
beginning January 1, 1975, or later.
You must have attained age 60 for a full
month.
4. Employee's ABD is Before January 1975 if
the Employee Has Less Than 360 Months
of Railroad Service, or Employee's ABD is
Before July 1974 if the Employee Has at
Least 360 Months of Railroad Service The employee must be at least age 65 to
qualify you for a spouse annuity.
You must have attained age 62 for a full
month.

B. Divorced Spouse Annuity Age Requirements If the employee is not receiving an annuity,
the employee must be at least age 62 for a full
month.
If the employee is totally and permanently
disabled with a disability freeze, the employee must be at least age 62 (disability freeze is
explained in Chapter 5).
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If the employee is receiving an age and
service annuity or a disability annuity
without a disability freeze, the employee
must be at least age 62 for a full month.
You must have attained age 62 for a full
month.

Chapter 3 - Annuity Based on Child-In-Care
A. Spouse Annuity - A wife may qualify for a
full spouse annuity, or a husband may
qualify for a Tier 1 only spouse benefit, based
on having a child of the employee in care.
The employee must have attained age 62 (or
age 60 with 30 years of railroad service) to
qualify the spouse for this annuity. The child
must be either:
1. under age 18 or
2. age 18 or older with a permanent disability
that began before the child attained age 22
that makes the child unable to perform
any type of regular employment.
The term Child-in-Care includes the railroad
employee's unmarried natural child, or
unmarried dependent adopted child,
stepchild, or, under certain conditions, a
grandchild whose parents are deceased or
disabled.
A child is in your care if you exercise parental
control over, and are responsible for, the
welfare and care of the child. If the child is
permanently disabled, but mentally competent, he or she is considered to be in your care
if you perform personal services for that
child. The RRB will make the final determination regarding the personal services you
perform and whether or not they constitute
the child being in your care.

B. Divorced Spouse Annuity - There is no provision in the Railroad Retirement Act for a
divorced spouse annuity based on having a
Child-in-Care.

Chapter 4 - Additional Requirements You
Must Meet to Receive a Divorced Spouse
Annuity
In addition to the marriage requirements for a
divorced spouse annuity explained in Chapter 1
and the age requirements for a divorced spouse
annuity explained in Chapter 2, the RRA states
that, to qualify for a divorced spouse annuity, the
following conditions must also apply:
1. You cannot be entitled to a benefit from
the Social Security Administration based
on your own earnings (before any reductions for age, earnings, etc.) that is equal
to or greater than your divorced spouse
annuity (before any reductions for age,
earnings, etc.).
2. You cannot be entitled to another RRA
annuity based on a different claim
number that is equal to or greater than
your divorced spouse annuity.
3. You and the employee must be divorced
for two full years from the date the
divorce became final if the employee is
not currently receiving an annuity.
Your divorced spouse annuity may begin before
the railroad employee's annuity begins, if the
employee is eligible, the two-year divorce
requirement is met, and both you and the
employee are age 62 for a full month.

Chapter 5 - Additional Requirements for
Annuities Based on 60-119 Months of
Railroad Service with at Least 60 Months
of Railroad Service After 1995
If the employee annuity is based on 60-119
months of railroad service with at least 60 months
of railroad service after 1995, the employee must
have a Social Security (SS) Act Insured Status on
combined railroad earnings, creditable military
service earnings, and social security earnings, to
qualify you for a spouse annuity Tier 1 component or for a divorced spouse annuity. An SS Act
Insured Status is based on Quarters of Coverage
(QC). In general, the SS Act specifies an amount

for each calendar year that will qualify the wage
earner for a QC for that year. If the employee
earns that amount (or a multiple of that amount
up to 4 QCs), the employee's earnings record will
be credited with those QCs.
The employee has an SS Act Insured Status if:

A. Employee Annuity Based on Age - The
employee must have a Fully Insured Status as
defined in the SS Act, but using combined
railroad earnings, creditable military service
earnings, and social security earnings. The SS
Act QC requirement for a Fully Insured Status
for employees born after 1928 is 40 QC.
B. Employee Annuity Based on Disability - The
employee must have a Disability Freeze
(D/F) as defined in the SS Act, but using
combined railroad earnings, creditable military service earnings, and social security
earnings. The SS Act requirements are:
1. The employee must be rated totally and
permanently disabled;
2. the employee must have a Fully Insured
Status. Generally, the QC requirement for
a Fully Insured Status is at least one QC
for each calendar year after the year the
employee attained age 21, through the
year the employee became disabled; and,
3. the employee must have at least 20 QC in
a period of 40 consecutive calendar quarters (10 years) ending with the quarter of
the disability onset date. This is also
referred to as the 20-in-40 QC test.

Chapter 6 - Selecting Type of Annuity on
Your Application
When you file your application for a spouse
annuity or divorced spouse annuity, your application must indicate the type of annuity for
which you are filing.

A. Spouse Annuity - The type of annuity on
your application should be based on whether
you are filing based on your age or based on
having a Child-in-Care.
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1. Choose Full Age Annuity if you believe
that you qualify for a spouse annuity that
is not reduced for early retirement. You
should also indicate whether or not you
would accept a Reduced Age Annuity
should you be found not eligible for a
Full Age Annuity.

Full Age Annuity means that:

Full Age Annuity means that:

a. you have attained Full Retirement
Age (FRA);
b. the employee is not receiving a 60/30
annuity that is reduced for retirement
before age 62 with an ABD before
January 2002 (see Appendix B at the
end of this booklet); and,
c. you did not previously receive an age
reduced spouse annuity or age
reduced divorced spouse annuity on
the same earnings record.

a. you have attained FRA and
b. you did not receive an age reduced
spouse annuity based on the same
earnings record before your divorce.

2. Choose Reduced Age Annuity if you
believe that you do not meet the requirements for a spouse annuity that is not
reduced for early retirement. If you previously received a spouse annuity or
divorced spouse annuity based on the
same earnings record that had an age
reduction, choose Reduced Age Annuity.
3. Choose Reduced 60/30 Age Annuity if the
employee is receiving a 60/30 annuity that
is reduced for retirement before age 62
with an ABD before January 2002 (see
Appendix B at the end of this booklet).
4. Choose Annuity Based on Children if you
want your annuity to be based on having
a child of the employee in your care,
regardless of your age. You should also
indicate whether or not you would accept
a Reduced Age Annuity should you be
found not eligible for a Full Age Annuity
based on having a Child-in-Care.

B. Divorced Spouse Annuity - The type of
annuity depends on your age and whether
you were previously entitled to an annuity on
the same earnings record.

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1. Choose Full Age Annuity if you meet the
requirements for a divorced spouse
annuity that is not reduced for early
retirement. You should also indicate
whether or not you would accept a
Reduced Age Annuity should you be
found not eligible for a Full Age Annuity.

2. Choose Reduced Age Annuity if you do
not meet the requirements for a Full Age
Annuity.
3. Choose Divorced Spouse With Previous
Spouse Annuity Age Reduction if you
previously received a spouse annuity
based on the same earnings record that
had an age reduction and that terminated
due to your divorce from the employee.

PART II - WHEN YOUR ANNUITY CAN
BEGIN
Chapter 7 - Stop Railroad Work
In addition to the requirements in Part I - Applying
for Your Annuity, if you are working for a railroad, you must stop the railroad work and give up
any rights you have to return to such work.
Also note that, after the annuity is awarded,
payment cannot be made for any month in which
you return to work for a railroad employer.

Chapter 8 - File RRA Annuity Application
You must file an RRA application for a spouse
annuity or divorced spouse annuity to receive railroad retirement spouse or divorced spouse benefits.
If you were previously entitled to spouse benefits
based on Child-in-Care that terminated when the
child attained age 18, you may need to file another

spouse annuity application. This application is
required to pay spouse benefits based on your age.
Please discuss this with an RRB representative.

annuity is reduced for early retirement
and an earlier beginning date would
increase your age reduction.

When you file an application, you may select the
day you want your annuity to begin. You have
two choices: the earliest date permitted by law, or
a later date designated by you that may be to
your advantage.

7. The first full month you have the employee's Child-in-Care, regardless of the dates
in Items 3 - 5 above.

Most applicants select the earliest date permitted
by law. This means the RRB will set your annuity
beginning date as the very first day it could
legally begin. If you choose to select a beginning
date yourself, your annuity will begin on that
date. However, the date you choose cannot be
before the earliest date permitted by law.
Note - If you delay filing for benefits, you may
lose benefits for some or all of the period before
the month in which you file.

8. The first day of the sixth month prior to
the month in which you filed your
annuity application if your annuity is not
reduced for early retirement or if an
earlier beginning date would not increase
an age reduction.
However, your spouse annuity will not begin
before the railroad employee's annuity begins or
before the railroad employee meets the age
requirement described in Chapter 2(A) and
Appendixes A-B.

Chapter 9 - Earliest Possible Spouse
Annuity Beginning Date

If Items 1-5 above apply, you can file your application up to three months before the earliest
annuity beginning date permitted by law.

The earliest spouse annuity beginning date permitted by law is the latest of the following:

Chapter 10 - Earliest Possible Divorced
Spouse Annuity Beginning Date

1. The first day of the month you meet the
marriage requirement.

The earliest divorced spouse annuity beginning date permitted by law is the latest of the
following:

2. The day after the day you last worked in
the railroad industry.
3. The first day of the first full month you
are age 62 if the employee has less than
360 months of railroad service and you
file for a Reduced Age Annuity.
4. The first day of the first full month you
are age 60 if the employee has at least 360
months of service.
5. The first day of the month in which you
are Full Retirement Age (FRA) if the
employee has less than 360 months of
railroad service and you file for a Full
Age Annuity.
6. The first day of the month in which you
filed your annuity application if your

1. The first day of the month in which your
decree of absolute divorce becomes final.
2. The day after the day you last worked in
the railroad industry.
3. The first day of the first full month in
which you are age 62 if you file for a
Reduced Age Annuity.
4. The first day of the month in which you
are FRA if you file for a Full Age Annuity.
5. The first day of the month in which two
full years have passed since the date of
the decree of absolute divorce became
final only if the employee is not currently
receiving an annuity.

5

6. The first day of the month in which you
file your annuity application if your RRA
annuity is reduced for early retirement.
7. The first day of the sixth month prior to
the month in which you file your annuity
application if your RRA annuity is not
reduced for early retirement.
However, your divorced spouse annuity will not
begin before the railroad employee meets the age
requirement described in Chapter 2(B).
If Items 1-5 above apply, you can file your application up to three months before the earliest
annuity beginning date permitted by law.

PART III - REDUCTIONS FOR EARLY
RETIREMENT
Chapter 11 - Basic Formula
Railroad retirement annuities are calculated
under the following two-tier formula:

A. Tier 1 Component - The first tier is based on
railroad retirement credits and any social
security credits an employee has acquired. If
the employee has at least 120 months of railroad service, or 60-119 months of railroad
service with at least 60 months of railroad
service after 1995, the amount of the first tier
is calculated using reductions to the social
security formula.
Exception: If the employee has at least 360
months of railroad service or is disabled and
has at least 120 months of railroad service,
the amount of the first tier is calculated using
social security formulas and railroad retirement age and service requirements.

B. Tier 2 Component - The second tier is based
on railroad retirement credits only, and may
be compared to the retirement benefits sometimes paid to workers in other industries in
addition to social security benefits.
Reductions are based on the Railroad
Retirement Act.

6

Chapter 12 - Full Retirement Age for
Spouse and Divorced Spouse
The term Full Retirement Age (FRA) means the
age at which the spouse of an employee with less
than 360 months of railroad service or a divorced
spouse can receive a full annuity (not reduced for
early retirement). FRA for persons who were
born before January 2, 1938, is age 65. The FRA
for persons born after January 1, 1938, will gradually increase over a 20-year period to age 67, as
illustrated in the following chart.
DETERMINING YOUR FULL RETIREMENT AGE

If your year of birth is:

Then your
FRA is:

Before 1-2-1938
1-2-1938 thru 1-1-1939
1-2-1939 thru 1-1-1940
1-2-1940 thru 1-1-1941
1-2-1941 thru 1-1-1942
1-2-1942 thru 1-1-1943
1-2-1943 thru 1-1-1955
1-2-1955 thru 1-1-1956
1-2-1956 thru 1-1-1957
1-2-1957 thru 1-1-1958
1-2-1958 thru 1-1-1959
1-2-1959 thru 1-1-1960
1-2-1960 and later

65
65 and 2 months
65 and 4 months
65 and 6 months
65 and 8 months
65 and 10 months
66
66 and 2 months
66 and 4 months
66 and 6 months
66 and 8 months
66 and 10 months
67

(FRA also affects Tier 1 component work deductions, for nonrailroad earnings, regardless of the
number of the employee's years of railroad
service, as described in Chapter 17.)

Chapter 13 - Spouse Annuity Age
Reduction When Employee Has Less
Than 360 Months of Railroad Service
A. Tier 1 Component Age Reduction - Your
spouse Tier 1 component age reduction
depends on the employee's total years of railroad service.
1. Employee Has 60-119 Months of Railroad
Service with at Least 60 Months of
Railroad Service After 1995 - Your Tier 1
is reduced by 1/144 for the first 36
months you are under FRA and by 1/240
for each additional month you are under

FRA on your RRA Annuity Beginning
Date (ABD) or, if earlier, your social security benefit date of entitlement.
2. Employee Has 120-359 Months of
Railroad Service - Your Tier 1 is reduced
by 1/144 for the first 36 months you are
under FRA and by 1/240 for each additional month you are under FRA on your
ABD.

B. Tier 2 Component Age Reduction - Your
spouse Tier 2 component age reduction
depends on whether or not the employee had
railroad service before August 12, 1983.
1. Employee Does Not Have Railroad Service
Before August 12, 1983 - Your Tier 2 is
reduced by 1/144 for the first 36 months
you are under FRA and by 1/240 for each
additional month you are under FRA on
your ABD.
2. Employee Has Some Railroad Service
Before August 12, 1983 - Your Tier 2 is
reduced by 1/144 for each month you are
under age 65 on your ABD.

Chapter 14 - Spouse Annuity When
Employee Has at Least 360 Months of
Railroad Service
Please refer to Appendix B at the end of this
booklet to see if an age reduction applies to your
spouse Tier 1 component.
Your spouse Tier 2 component will not have an
age reduction.

Chapter 15 - Divorced Spouse Annuity
Age Reduction
A divorced spouse annuity is limited to a Tier 1
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 FRA and by 1/240 for each additional
month you are under FRA on your ABD.
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.

PART IV - 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 (ABD) can have an
effect your annuity computation as explained in
this section.
A divorced spouse annuity is not payable for any
month in which you are in railroad service.

Chapter 16 - Self-Employment and Other
Nonrailroad Work
Earnings from nonrailroad employment, including
self-employment, after your 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.
If you are claiming self-employment, the RRB
determines whether or not you are performing
"substantial services" as an independent contractor. The payment of self-employment taxes may
be evidence of an independent contractor status,
but is not conclusive. If you are working for an
incorporated business that you own, the RRB
does not consider that work self-employment. If
you are self-employed as a consultant, the RRB
considers how your self-employment compares
to the work you did for your former railroad or
nonrailroad employer before you applied for
your annuity. You should complete and return
Form AA-4 Self-Employment and Substantial
Service Questionnaire to provide the RRB with
the necessary information to make that determination. For more information about self-employment, see Form G-177L, General Information
about Continuing in or Returning to Nonrailroad
Employment after Retirement under the Railroad
Retirement Act.

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Chapter 17 - Spouse Tier 1 and Divorced
Spouse Annuity Work Deductions
If both you and the employee are Full
Retirement Age (FRA) (see Chapter 14) or older
on your annuity beginning date, you may skip
to Chapter 18. You are not affected by work
deductions to your spouse annuity Tier 1 component or divorced spouse annuity.
If either you are or the employee is under FRA,
earnings from any nonrailroad employment
(including self-employment) over the Annual
Earnings Exempt Amount may cause work
deductions to your spouse annuity Tier 1 component or divorced spouse annuity.

A. Definition of Annual Earnings Exempt
Amount - The term Annual Earnings Exempt
Amount means the amount of money you or
the employee can earn in a year without
losing part of your annuity. There are separate Annual Earnings Exempt Amounts for
persons under FRA and for the year in which
the person attains FRA. Refer to Appendix D
at the end of this booklet and to Form G-77a
How Work Affects Your Railroad Retirement
Benefits for the Annual Earnings Exempt
Amounts to use when completing the earnings items on your annuity application.
B. Definition of Earnings for Work Deductions In general, earnings restrictions apply to
gross earnings from employment and net
earnings from self-employment. Gross earnings are all salaries, commissions, bonuses,
retroactive wage increases, or any allowances
for room or board. If these earnings are from
an employer covered under the Social
Security Act, the amount of the gross earnings is equal to the amount reported for
social security tax under the Federal
Insurance Contributions Act (FICA). Net
earnings from self-employment equal the
amount of gross income minus expenses that
were reported for social security tax under
the Self-Employment Contributions Act
(SECA). Add your earnings from employment and self-employment together to determine the total earnings for the year for the
purpose of Tier 1 work deductions.
8

Do not include as earnings any money that
you received for any reason other than work,
such as interest from savings, income investments, gifts, inheritances, pensions or other
retirement benefits.
When employees have earnings over the
Annual Earnings Exempt Amount for their
age group, the excess is charged against their
annuity and the annuities of all others entitled
on their earnings record. An exception applies
for a divorced spouse who has been divorced
from the employee for at least two years. The
employee's earnings will not cause work
deductions to the divorced spouse annuity
effective from the second anniversary of the
divorce. If the employee was receiving an
annuity prior to the divorce, none of the
divorced spouse’s annuity will be withheld
based on the employee’s earnings.

C. Exception for First Year of Entitlement - In
the year your annuity begins, deductions for
your own earnings are based on your earnings for the entire year, not just the earnings
after you retire. However, a special rule may
be used to apply work deductions in the first
year after your annuity begins in which you
have a non-work month. For many people,
this is the year their annuity begins.
A Non-Work Month is a month in which you
earn less than the Monthly Earnings Exempt
Amount for your age (the Annual Earnings
Exempt Amount for your age divided by
twelve) or, if self-employed, render no substantial services. (The RRB uses Form AA-4
Self-Employment and Substantial Service
Questionnaire to determine months in which
you rendered no substantial services.)
1. Special Rule Applies - In the year the
special rule is applied, no Tier 1 work
deductions for your own earnings are
applied to any Non-Work Month. If you
have high earnings before your annuity
begins but do not earn more than the
Monthly Earnings Exempt Amount in any
month after your annuity begins, Tier 1
deductions for your own earnings will not
be required.

2. Special Rule Does Not Apply - If you do
earn more than the Monthly Earnings
Exempt Amount in one or more months
after your annuity begins, deductions are
assessed to those months up to the
amount required based on your total
earnings for the year. Also, after the first
year in which you have a Non-Work
Month, this monthly test does not apply.
If your earnings are high enough, deductions will be assessed to your annuity for
the entire year, even if you only work part
of the year.

D. Exception for Social Security Benefit
Entitlement - No earnings deductions are
made by the RRB in your spouse annuity Tier 1
component or divorced spouse annuity if you
are receiving social security benefits. Earnings
deductions may be made by the Social Security
Administration in your social security benefit.

Chapter 18 - Your Last Pre-Retirement
Nonrailroad Employer
A. Definition - Your Last Pre-Retirement
Nonrailroad Employer (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
in Section B of this chapter.
The nonrailroad employer is always your
LPE if you are working in nonrailroad
employment on the date your spouse annuity
begins or, if you have stopped working, you
still hold rights to return to service of the
nonrailroad employer on the date your
spouse annuity begins.
The nonrailroad employer is presumed to be
your LPE if you stopped working within the
six months preceding your annuity beginning
date. When you were working for two or
more persons, companies, or institutions
within the six months preceding your
annuity beginning date, all such employers
are presumed to be your LPE.

B. Work That is not Considered Last PreRetirement Nonrailroad Employment Some types of nonrailroad work are not considered LPE no matter when they are done.
The following types of nonrailroad work are
not LPE:
1. military service;
2. mail handling under contract for the U.S.
Post Office;
3. jury duty;
4. employment for which you are reimbursed only for your expenses;
5. certain seasonal employment where you
do not have rights to return to the
employment (such as working in a
department store during the Christmas
season);
6. work as a member (owner) of a Limited
Liability Corporation; or,
7. self-employment as defined under the
Railroad Retirement Act.
Also note that any nonrailroad employment
after the date your spouse annuity begins, for
an employer that you never worked for
before the date your spouse annuity begins,
is not LPE and does not affect your Tier 2
component. It can, however, cause Tier 1
work deductions as explained in Chapter 17.

Chapter 19 - Spouse Annuity Tier 2 Work
Deductions
Employee annuitants must report earnings from
their own Last Pre-Retirement Nonrailroad
Employer (LPE). They are charged work deductions against their Tier 2 components and their
supplemental annuities, if any, and the Tier 2
components of spouses entitled on their earnings
records. The term LPE is explained in Chapter 18.
Also, if you are applying for a spouse annuity,
you must report your own earnings from LPE in
or after the month your spouse annuity begins.
Your LPE earnings will reduce your Tier 2 component. The reduction is $1 for each $2 earned
(subject to a maximum reduction of 50% of the
Tier 2). The reduction to Tier 2 occurs at any age,
even after Full Retirement Age (which is
explained in Chapter 12).
9

Work deductions for LPE apply even if the
employee has 360 or more months of railroad
service. There is no Annual Earnings Exempt
Amount or Monthly Earnings Exempt Amount
for the first year of entitlement for LPE work
deductions. The LPE work deductions apply no
matter how much money you earn in LPE.
Earnings from self-employment or other nonrailroad employment are not added to your LPE
earnings when computing Tier 2 component
work deductions.

PART V- REDUCTIONS FOR OTHER
BENEFITS
Chapter 20 - Social Security Benefits
If you are entitled to Social Security (SS) benefits
based on any wage record, your spouse annuity
Tier 1 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 may be 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. This will help to prevent an overpayment of
your annuity.

A. Annuity Based on at Least 120 Months of
Railroad Service - Your railroad retirement
application may be used to protect your filing
date for SS benefits if you have not yet filed
at the Social Security Administration (SSA)
and will be entitled to the SS benefits within
three months. This means the date you file
your railroad retirement application can be
used as the date you file for SS benefits. If
you want to use your railroad retirement
application to protect your filing date, the
RRB representative will prepare Form RR-8
Notice of Protection of Filing Date for Social
Security Benefits and send a copy to your
local SSA office. The SSA office will contact
you to secure an application for SS benefits.
Your railroad retirement application may protect
your filing date, but it is not an application for
10

SS benefits. You must file a separate application
for those benefits at SSA.
In many cases, filing for SS benefits will not
affect your total benefit rate, because of the
deduction in your annuity. It is usually not to
your advantage to apply for benefits at both
agencies. It is a good idea to discuss this
matter with an RRB representative before
deciding to file for SS benefits. Contact your
local RRB office for information about your
situation before filing at SSA.

B. Annuity Based on 60-119 Months of Railroad
Service With at Least 60 Months of Railroad
Service After 1995 - Your railroad retirement
application is also deemed to be an application for any SS benefits that you may be entitled to on the employee's earnings record or
your own earnings record.

Chapter 21 - Other Railroad Retirement
Annuities
If you are entitled to more than one Railroad
Retirement Act (RRA) annuity, the other RRA
annuity can have an effect on your spouse or
divorced spouse annuity.

A. Spouse Annuity - If you are entitled to both
an RRA employee annuity based on your
own earnings record, and an RRA spouse
annuity based on a different earnings record,
the reduction to your RRA spouse annuity
depends on whether or not there is railroad
service before January 1, 1975, on either earnings record.
1. If either earnings record has railroad
service before January 1, 1975, your RRA
spouse annuity Tier 1 is reduced by your
own RRA employee annuity Tier 1. The
reduction in your RRA spouse annuity
Tier 1 may be restored to your RRA
spouse annuity Tier 2.
2. If neither earnings record has railroad
service before January 1, 1975, your RRA
spouse annuity Tier 1 and Tier 2 is reduced
by your own RRA employee annuity Tier 1
and Tier 2. The reduction is not restored to
your RRA spouse annuity Tier 2.

B. Divorced Spouse Annuity - If you are entitled
to both an RRA employee annuity based on
your own earnings record and an RRA
divorced spouse annuity based on a different
earnings record, your RRA divorced spouse
annuity is reduced by your RRA employee
annuity.
C. Survivor Annuity - If you are entitled to both
an RRA spouse/divorced spouse annuity and
an RRA survivor annuity based on different
earnings records, only the higher of your
RRA spouse/divorced spouse annuity or
your RRA survivor annuity is payable unless
you elect to receive the smaller benefit.

Chapter 22 - Public Service Pensions
A. General - Any Public Service Pension (PSP)
payable to you may have an effect on the
amount of your spouse annuity Tier 1 component or your divorced spouse annuity. A PSP
is retirement pay you receive for public
service employment. This may either be
monthly payments or a lump-sum payment.
It may be administered by a government
agency or a private insurance company.
If you are currently entitled to, or will be entitled to, a PSP (or lump-sum payment that is
more than just a refund of your own contribution to the pension fund), there may be an
offset in your annuity.
Public service means service performed 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.

B. Exceptions to PSP Offset - If you believe that
you qualify for an exception from the PSP
offset, please ask your RRB field office. In
general, the PSP offset will not apply to your
Tier 1 if your:
1. public service employer was an interstate
instrumentality, i.e., rare cases in which

two or more States are organized as a corporation to perform a governmental function (they are not considered public
service employers for reduction purposes); or,
2. public service employer was a government of a foreign country (such as
Canada); or,
3. government pension payments are social
security, railroad retirement, veterans'
affairs, military service, worker's compensation or black lung benefits. (However,
social security benefits will cause a
reduction to Tier 1 as explained in
Chapter 20 and railroad retirement benefits will cause a reduction as explained in
Chapter 21); or,
4. pension payments are based on the
earnings of another person; or,
5. Federal employment was covered under
the Federal Employees Retirement
System (FERS) and FICA taxes were
deducted from the last 60 months of your
Federal employment. (Note that a person
covered under the Federal Civil Service
Retirement System (CSRS), who has a
payroll deduction for Medicare (Hospital
Insurance) only tax, does not qualify for
exemption from the PSP offset); or,
6. state or local government employment was
covered under the Social Security Act and:
a. Federal Insurance Compensation Act
(FICA) taxes were being deducted on
your last day of employment, and
either you filed for your spouse
annuity before April 2004 or your last
day of state or local government
employment was before July 1, 2004; or,
b. FICA taxes were deducted from the
last 60 consecutive months of your
employment and you file for your
spouse annuity after March 2004 and
your last day of state or local government employment is after June 2004.
11

Note: If your last day of state or local
government employment is before
March 2, 2009, there is a provision for
reducing the requirement of FICA
taxes deducted for 60 consecutive
months by giving you credit for
months before March 2004 for which
you paid FICA taxes.

PART VI - DEDUCTIONS FOR OTHER
FEDERAL PROGRAMS
Chapter 23 - Medicare Coverage and You
A. General Information About Medicare Medicare is a Federal health insurance
program, administered by the Centers for
Medicare & Medicaid Services (CMS), for
people who are age 65 or older, who are
totally and permanently disabled, or who
have permanent kidney failure. One part of
Medicare is Hospital Insurance (also known
as Part A) and the other part is Medical
Insurance (also known as Part B). Medicare
also provides prescription drug coverage
(Part D) on a voluntary basis.
If you are eligible for Medicare because of permanent kidney failure (End Stage Renal
Disease), you must call or visit your local
Social Security Administration (SSA) office or
call SSA at 1-800-772-1213 to enroll in Medicare
Part A and Part B. For all other Medicare eligibility, the RRB can help you enroll in Medicare
Part A and Part B.
1. Hospital Insurance (Part A) can help pay
for four kinds of care:
a. inpatient hospital care;
b. inpatient care in a skilled nursing
facility following a hospital stay;
c. care in your home by a home health
agency; and,
d. hospice care.
As soon as you are determined to be eligible for Medicare, you will automatically be
enrolled for Hospital Insurance (Part A).
You do not pay a monthly premium for
your Hospital Insurance (Part A).
12

2. Medical Insurance (Part B) can help pay
for the following additional kinds of medically necessary care:
a. doctors' services;
b. outpatient hospital services; and,
c. a number of other medical services
and supplies that are not covered by
Hospital Insurance (Part A).

B. Medical Insurance (Part B) at Age 65 or Older Enrollment for Medical Insurance (Part B)
depends on your age when you file your
spouse or divorced spouse annuity application.
1. If you are under age 64 years and 5
months when you file your annuity application, you will be automatically enrolled
in Medical Insurance (Part B) at age 65,
unless you decline this coverage.
2. If you are at least age 64 years and 5
months when you file your annuity
application , you can use your annuity
application to enroll for Medical
Insurance (Part B).
If you want Medical Insurance (Part B) at
age 65, you must pay a premium for each
month you have this insurance. If you
receive an annuity, the premium will usually
be deducted from your monthly annuity rate.
If you do not want Medical Insurance (Part B)
at age 65, and then later decide that you do
want to sign up, your protection may be
delayed and your premiums may be more
expensive.
If, at any time, you wish to cancel the election
that you make on your annuity application,
you must contact the nearest office of the RRB.

C. Special Enrollment Period - You may delay
enrolling in Medical Insurance (Part B) coverage without penalty if you are covered under
a Group Health Plan (GHP) at age 65. The
GHP must be based on your own employment or the employee's employment. You
may enroll in Medical Insurance (Part B) at

any time while you are covered under the
GHP or you can enroll during a Special
Enrollment Period (SEP) . Your SEP begins
when the employment on which the GHP is
based ends, or the first month you are no
longer covered under the GHP, whichever
comes first. The SEP lasts for eight months.
The beginning date of your Medical
Insurance (Part B) coverage depends on the
status of your GHP coverage when you file
for the Medical Insurance (Part B).
1. If you file for Medical Insurance (Part B)
during any month in which you are
enrolled in a GHP , or in the first full
month of your SEP, you can choose the
effective date of your Medical Insurance
(Part B). This effective date can be the first
day of the month you file or the first day
of any of the following three months after
the month of filing.
Example 1 - If your GHP coverage based
on current employment has not ended
and you file for Medical Insurance (Part B)
in May, you can choose May 1, June 1,
July 1, or August 1 for your Medical
Insurance (Part B) effective date.
Example 2 - If your GHP coverage based
on current employment ends on March 19,
and you file for Medical Insurance (Part B),
the following applies:
a. If you file anytime after March 19, but
before April 1, you can choose the
effective date of March 1, April 1,
May 1, or June 1 for your Medical
Insurance (Part B).
b. If you file anytime in April, you can
choose the effective date of April 1,
May 1, June 1, or July 1 for your
Medical Insurance (Part B).
2. If you file for Medical Insurance (Part B)
during the other seven months of your
SEP, your Medical Insurance (Part B) will
begin the first day of the month after the
month you file. The beginning date can

be no later than the ninth month after the
start of your SEP.
Example - If your GHP coverage based on
current employment ends on March 19,
and you file for Medical Insurance (Part B)
anytime during the period May 1 through
November 30, your Medical Insurance
(Part B) will begin the month after the
month in which you file your annuity
application.
If you are already enrolled in Medical
Insurance (Part B) and are paying higher premiums due to late enrollment, and you had
GHP coverage at age 65, you may use your
annuity application to request a review of the
Medical Insurance (Part B) premium rate you
are paying.

D. Prescription Drugs - Medicare offers optional
prescription drug coverage (Part D) through
Medicare prescription drug plans and other
health plan options. To enroll in a Medicare
prescription drug plan, you must have
Medicare Part A and/or Part B. You will generally pay a monthly premium, an annual
deductible, and a share of the cost of each
prescription.
When a person first becomes eligible for
Medicare, they can enroll in a Medicare prescription drug plan during the period that
starts three months before the month their
Medicare coverage starts and ends three
months after that month. If you do not join a
drug plan when you are first eligible, you
may have to pay a higher premium if you
join later.

E. Early Medicare Based on Disability - The
RRA does not provide a spouse annuity or
divorced spouse annuity based on disability.
If you are totally disabled for all employment, you may be covered by early Medicare
before age 65 on your own earnings record. If
you have at least 120 months of railroad
service, or 60-119 months of railroad service
with at least 60 months of railroad service
after 1995, refer to Booklet RB-1D, Employee
Disability Benefits, for an explanation of the
13

disability requirements. Otherwise, you
should contact SSA to file for early Medicare
on your own earnings record.

If you do not receive a notice that additional
information is needed, you should receive the
decision on your annuity application as follows:

F. More Information About Medicare - You may
find answers to your questions by contacting the
nearest RRB office; going to www.medicare.gov;
or calling 1-800-MEDICARE (1-800-633-4227).

A. Advance Filing Cases - When you file up to
three months before the earliest date your
annuity can begin (see Chapters 9 and 10),
you should receive your annuity award letter
and first payment within 35 days of the date
your annuity can begin. However, note that
no payment is due until the first day of the
month after the first month of annuity entitlement, as explained in Chapter 26.

Chapter 24 - Federal Income Tax
Withholding
Withholding for Federal Income Tax may occur,
either based on your election filed on IRS Form
W-4V, Voluntary Withholding Request, and/or
Form RRB W-4P, Withholding Election Form, or,
if you do not file Form RRB W-4P, based on a
status of "Married with three dependents."

PART VII - AFTER YOU APPLY FOR
YOUR ANNUITY
The chapters in this part of the booklet explain
what the Railroad Retirement Board (RRB) does
after you file your annuity application. Included
is important information about how soon you
can expect a decision on your application.

Chapter 25 - Notice of Decision about
Your Application
When you are ready to retire, contact your RRB
field office to file your spouse annuity or divorce
spouse annuity application. Our goal is to
process your application as quickly as possible.
Claims for some benefits may take longer to
handle than others if they are more complex, or if
we have to get information from other people or
organizations. If this happens, we will give you
an explanation and an estimate of the time
required to make a decision.
Sometimes we will not be able to make a decision
on your application for benefits without some
additional information from you. If so, we will
contact you by telephone or mail and ask you to
send us the required forms, proofs, or statements.

14

B. Other Than Advance Filing Cases - If you do
not file your application in advance of the earliest date on which your annuity can begin,
you should receive your annuity award letter
and first payment within 65 days from the
date you file your application.
C. Annuity Denial - If you cannot be paid an
annuity, the RRB will send you a decision
within 35 days of the beginning date you
requested, if you filed in advance, or within
65 days of the date you filed, if you did not
file in advance, explaining why you cannot be
paid and what you can do if you disagree
with the reason you cannot be paid. If you
think we made the wrong decision about your
benefits, you have the right to ask for a
review and to appeal within the required time
limit shown in the denial letter.

Chapter 26 - How Payments Are Made
The first payment you receive from the RRB will
be separate from your annuity award letter.
Annuities are payable at the beginning of the
month following the month for which the annuity
accrued. The payment that you receive at the
beginning of the month actually represents the
annuity that accrued for the previous month.

A. Advance Filing Cases - When you file up to
three months before the earliest date your
annuity can begin (see Chapters 9 and 10), no
payment is due until the first day of the month
after the first month of annuity entitlement.

B. Other Than Advance Filing Cases - If you are
not filing in advance of your annuity beginning date, the initial payment may be a
partial payment, with an estimated monthly
rate, representing payment due through the
end of the preceding month. You will continue to receive this partial amount until your
final rate can be determined and awarded.
Once your final rate has been certified, you
will receive any increase due from your
annuity beginning date. You may receive this
payment at any time during the month.
Remember: The payment that you receive
after your initial payment will be made once
a month on the first day of the month. If the
first day of the month falls on a Sunday or a
holiday, the payment will be received on the
next business day. The payment that you
receive at the beginning of each month actually represents the annuity that accrued for
the previous month.

Chapter 27 - Direct Deposit to a Financial
Institution
The preferred method of receiving most Federal
Government payments is directly to a savings or
checking account at a financial institution,
instead of being sent to the recipient's home.
Under the RRB's Direct Deposit program, your
monthly annuity payment will be made directly
to your savings or checking account at the financial institution that you indicate on your annuity
application. You will find that this is both safe
and convenient.
If you do not initially enroll in the Direct Deposit
program, you can still change your mind at a
later date. Telephone or visit your RRB field
office. Have one of your personal checks handy.
It contains the information needed to start direct
deposit. The field office representative will enter
the information into our payment system and tell
you when the direct deposit will take effect.

Form SF-1199A, Authorization for Deposit of
Federal Recurring Benefits. Your financial institution will submit your enrollment to the RRB.
Shortly after the RRB receives your direct deposit
information, your monthly annuity payments
will start going directly to your savings or checking account.
If you later change your account or financial
institution, follow the steps indicated above for
direct deposit to your new account. Keep your
old account open until the direct deposit of payments to your new account begins.
Even though your payments are on direct
deposit, be sure to keep your home address on
our records current as explained in Chapter 28.

Chapter 28 - Change of Address
Notify the nearest RRB office immediately if you
change your address, even when your monthly
annuity payments are going directly to your
savings or checking account. All correspondence
from the RRB is sent to your home mailing
address on record. This mailing address is used
to send any material other than your payments
to you (such as notices of cost-of-living increases,
Medicare information, new Annual Earnings
Exempt Amounts, and tax statements). If you do
not report your change of address, the RRB
cannot be responsible for any important information that you do not receive.
A notice of change of address must always
include:

.your RRB claim number;
.your name;
.your new address;
.your old address;
.the date you will start receiving mail at

the new address; and
.a statement that your notice of change of
address applies for both you and the
employee or applies to you alone.

You may also take one of your annuity checks to
your financial institution and ask them to complete an automated Quick$tart enrollment or a

15

Chapter 29 - When Your Annuity Is Not
Payable
A. Spouse Annuity - A spouse annuity is not
payable for any month in which:
1. the employee's annuity is not payable;
2. you work for a railroad employer;
3. neither you nor the employee began railroad service before 1975 and you become
entitled to your own RRA employee
annuity that exceeds the amount of the
spouse annuity; or,
4. you become entitled to an RRA survivor
annuity on a different RRB earnings
record that exceeds the spouse annuity
rate.

B. Divorced Spouse Annuit y - A divorced
spouse annuity is not payable for any month
in which:
1. you work for a railroad employer, or
2. you become entitled to an RRA annuity
based on your own earnings record that
exceeds your RRA divorced spouse
annuity rate.

Chapter 30 - When Your Annuity Ends
A. Spouse Annuity - A spouse annuity ends the
month before the month in which:
1. you die;
2. the employee dies (a widow(er)'s annuity
may become payable at this time);
3. the employee's entitlement to an employee
annuity terminates due to recovery from
disability;
4. your marriage to the employee ends by
absolute divorce (a divorced spouse
annuity may become payable at this
time);
5. your marriage to the employee is dissolved by annulment; or,
6. the child qualifying you for an annuity is
no longer in your care or attains age 18 or
recovers from disability. Your spouse
annuity will end unless you are old
enough to receive a spouse annuity based
on age.
16

B. Divorced Spouse Annuity - A divorced
spouse annuity ends the month before the
month in which:
1. you die;
2. the employee dies (a surviving divorced
spouse annuity may become payable at
this time);
3. the employee's entitlement to an employee annuity terminates due to recovery
from disability if you have not been
divorced for two full years;
4. you marry;
5. you become entitled to social security
benefits on your own earnings record that
are greater than the RRA divorced spouse
gross annuity; or,
6. you become entitled to an RRA survivor
annuity based on another claim number
that exceeds the amount of the RRA
divorced spouse annuity.

Chapter 31 - Records You Should Keep
We recommend that you keep this booklet, even
after you file your annuity application. It contains
important information concerning your entitlement
to railroad retirement benefits. You should also
keep your annuity award notice or denial notice.
Also keep:
notes from the RRB representatives who
helped you file your annuity application. The
notes should detail any special aspects of your
claim (such as why a certain employer was or
was not your LPE);
.copy of the AA-3, Receipt for Your Claim;
.copy of Federal income tax forms (Form
RRB W-4P, Withholding Election Form, and
IRS Form W-4V, Voluntary Withholding
Request); and
.Booklet RB-9, Employee and Spouse
Annuities - Events That Must Be Reported, to
help you comply with the RRB's reporting
requirements.

APPENDIXES
Your Full Retirement Age (FRA) is explained in Chapter 12 of this booklet. Use
Appendixes A-C to determine the age requirement for your spouse annuity or divorced spouse
annuity and to determine if an age reduction would apply.

Appendix A
SPOUSE AGE REQUIREMENTS
EMPLOYEE HAS 60 - 359 MONTHS OF RAILROAD SERVICE
your spouse annuity can begin
the first full month you are
age 62.
Your Tier 1 will have an age
reduction if you retire before
attaining:

Your Tier 2 will have
an age reduction if
you retire before
attaining:

If the employee retired with an
annuity beginning date:

and the employee
has attained:

before 1975 based on at
least 120 months of
railroad service,

age 65,

your Full Retirement Age
(FRA).

age 65.

in 1975, or later, based on
at least 120 months
of railroad service, including
some railroad service
before August 12, 1983,

age 62,

your FRA.

age 65.

in 1975, or later, based on
at least 120 months of
railroad service and no
railroad service before
August 12, 1983,

age 62,

your FRA.

your FRA.

of January 2002 or later,
based on 60 - 119 months of
railroad service with at
least 60 months of railroad
service after 1995, and had
some railroad service
before August 12, 1983,

age 62,

your FRA.

age 65.

of January 2002 or later,
based on 60 - 119 months of
railroad service with at
least 60 months of railroad
service after 1995, and did not
have railroad service
before August 12, 1983,

age 62,

(The employee must have
an SS Act Insured Status
to qualify you for a Tier 1
benefit.)

your FRA.
(The employee must have
an SS Act Insured Status
to qualify you for a Tier 1
component.)

your FRA.

Appendix B
SPOUSE AGE REQUIREMENTS
EMPLOYEE HAS AT LEAST 360 MONTHS OF RAILROAD SERVICE
your spouse annuity can begin the
first full month you are age 60.
Your Tier 1 will:

If the employee
is retired based on:

and the
employee:

age with an annuity beginning date
of July 1, 1974, or later, and both
attained age 60 and acquired 360
months of railroad service before
July 1984,

retired at age 60 or
later,

not have an age reduction.

age and either attained age 60 or
acquired 360 months of railroad
service in July 1984 through
December 2001,

retired at age 60
through age 61,
with an employee
annuity beginning
date before
January 2002,

have an age reduction based on the
employee’s age reduction until both you
and the employee have attained age 62.

age and either attained age 60 or
acquired 360 months of railroad
service in July 1984 through
December 2001,

retired at age 62 or
later,

not have an age reduction.

not have
an age
reduction.

age with at least 360 months of
railroad service and an annuity
beginning date of January 2002,
or later,

retired at age 60
or later

not have an age reduction.

not have
an age
reduction.

disability with at least 360 months
of service and an employee annuity
beginning date before July 1, 1984,

has attained
age 60,

not have an age reduction.

not have
an age
reduction.

disability with at least 360 months
of service and an employee annuity
beginning date of July 1, 1984, or
later,

has attained
age 60,

have an age reduction depending on
your spouse annuity beginning date.

not have
an age
reduction.

Note: For these cases, your spouse
annuity cannot begin before
January 1, 1975.

Your Tier 2
will:
not have
an age
reduction.

not have
an age
reduction.

You will then have an age reduction for
the number of months you are under
Full Retirement Age (FRA) when both
you and the employee are age 62.

• If your spouse annuity begins

before January 2002, and begins
before your FRA, your Tier 1 will
have an age reduction. (If you are
age 60-61 on the date your spouse
annuity begins, you are deemed
to be age 62.)

• If your spouse annuity begins

January 1, 2002, or later, your Tier 1
will not have an age reduction.

Appendix C
DIVORCED SPOUSE AGE REQUIREMENT
If the employee
has:

and the employee
is at least:

your divorced spouse
annuity can begin the
first full month you are:

Your annuity will
have an age
reduction if you
retire before
attaining:

an SS Act Fully Insured
Status based on combined
railroad and SSA earnings
(40 Quarters of Coverage
for those born after 1928),

age 62 for a full
month,

age 62.

your FRA.

an SS Act Disability Insured
Status based on combined
railroad and SSA earnings
(disability freeze),

age 62,

age 62.

your FRA.

Appendix D
Use Appendix D to determine the effect of your nonrailroad earnings on your spouse or divorced
spouse annuity.

DETERMINING YOUR WORK DEDUCTIONS
For a year in which:

you may lose up to $1 in your
Tier 1 component for every:

The reduction:

you attain Full
Retirement Age
(FRA),

$3.00 of earnings over the Annual Earnings Exempt
Amount for your age group. However, your earnings are
only counted for months before the month in which you
attain FRA.

is removed effective
the month in which
you attain your FRA.

you are under
your FRA for the
entire year,

$2.00 of earnings over the Annual Earnings Exempt
Amount for your age group.

applies for the full
year.

you work outside
the U.S. for 45 or
more hours per
month,

$2.00 of earnings. There is no Annual Earnings Exempt
Amount for work outside the U. S.. However, your
earnings are only counted for months before the month
in which you attain FRA.

is removed effective
the month in which
you attain your
FRA.

Nondiscrimination on the Basis of Disability
Under Section 504 of the Rehabilitation Act of 1973 and Railroad Retirement
Board (RRB) regulations, no qualified person may be discriminated against on
the basis of disability. RRB programs and activities must be accessible to all
qualified applicants and beneficiaries, including those with impaired vision or
hearing. Disabled persons needing assistance (including auxiliary aids or
program information in accessible formats) should contact the nearest RRB
office. Complaints of alleged discrimination by the RRB on the basis of disability
must be filed within 90 days in writing with the Director of Administration,
Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois, 60611-2092.
Questions about individual rights under this regulation may be directed to the
RRB's Director of Equal Opportunity at the same address.

Fraud and Abuse Hot Line
Call the toll-free Fraud and Abuse Hot Line if you have reason to believe that
someone is receiving railroad retirement or unemployment-sickness benefits to
which (s)he is not entitled; that persons responsible for the financial affairs of
minors or incompetent beneficiaries are misappropriating benefits; or that a
doctor, hospital, or other provider of health care services is performing unnecessary or inappropriate services or is billing Medicare for services not received.
You may also use the Hot Line to report any suspected misconduct by a Railroad
Retirement Board (RRB) employee. The Hot Line has been installed by the RRB's
Inspector General to receive any evidence of fraud or abuse of the RRB's benefit
programs.
Call (toll-free) 1-800-772-4258. Or you may send your complaints in writing to
the Railroad Retirement Board, OIG, Hot Line Officer, 844 North Rush Street,
Chicago, Illinois, 60611-2092. Please do not call the Hot Line with questions
about eligibility requirements, delayed claims, or similar problems. Such
matters should be directed to the nearest RRB field office.

Paperwork Reduction Act and Privacy Act Notices
This notice is given under the Paperwork Reduction Act of
1995 and the Privacy Act of 1974. The Privacy Act requires
that the Railroad Retirement Board (RRB) tell you the following whenever we ask you for information:
1) The law which allows us to ask for information;
2) whether that law requires you to give us the
information and what, if anything, might happen to you if
you do not give it to us;
3) the reason why the information is requested; and
4) the persons, organizations, and agencies to which we
may release the information without your permission.
The RRB’s authority for requesting this information is
Section 7(b) of the Railroad Retirement Act (RRA) of 1974.
Providing us with this information is voluntary on your part.
However, if you fail to provide us with the requested information we may be unable to pay you any benefits. The RRB
needs this information to determine whether you are eligible
to receive such benefits and, if so, the amount you are entitled to receive. If your annuity application is approved and
we begin to pay you benefits, information that we may
request from you in the future will be used to determine
whether you are entitled to continue to receive such benefits.
Although the information we request is almost never used
for any purpose other than the payment of benefits under
the RRA, the RRB does have the authority to release information to the indicated individuals, organizations, and/or
agencies without your approval:
1) An attorney, the Office of the President, a
Congressional office, a labor union or the Department of
State’s embassy or consular offices if they allege to be
representing you at your request.
2) Other people who are receiving benefits based on the
same railroad retirement account as you are if the
information affects their payments from the RRB.
3) A person who will receive benefits on your behalf if the
RRB decided that some medical condition keeps you from
receiving your own benefits; such information may also be
released in determining whether such a medical condition
exists and who is suitable to receive such benefits for you.
4) People or organizations who are working for the RRB;
such information may include medical records.
5) The U.S. Treasury Department or U.S. Postal Service
to issue payments and to investigate lost, forged, or
stolen payments.
6) Your last employer to make sure that you are eligible to
receive railroad retirement benefits and you continue to
receive any available medical benefits, and to any railroad
employer (or to its insurance company) to make sure that
you can receive any private retirement or insurance
benefits which may be offered by the employer.

7) The Social Security Administration, Centers for
Medicare & Medicaid Services, Pension Benefit
Guarantee Corporation, Office of Personnel Management,
Department of Veterans Affairs, or Federal, State, or local
welfare or public aid agencies to determine if you can
receive benefits from their organizations and if any
previous benefits were paid incorrectly.
8) The Internal Revenue Service or to State and local
taxing authorities for figuring your taxes and for use in audits.
9) Your last address and the name of your last employer
may be released to the Department of Health and Human
Services to be used in the Parent Locator Service.
10) The General Accounting Office for audits and for
collecting overpayments owed to the RRB or the Social
Security Administration.
11) The U.S. Department of Labor as required by the
Federal Coal Mine and Safety Act.
12) In certain cases for law enforcement purposes and for
court proceedings.
13) Information about the determination and recovery of
an overpayment made to you may be released to any
other person from whom any portion of the overpayment
is being recovered.
14) Your name and address may be released to a
Member of Congress to inform you about current or
proposed legislation which could affect the railroad
retirement system.
15) Professional Standards Review Organizations and
State Licensing Boards when services provided by
physicians or practitioners suggest unethical or
unprofessional conduct.
We estimate the AA-3 process takes an average of 30 to 58
minutes per response to complete, including the time for
reviewing the instructions, getting the needed data, and reviewing the completed form. Federal agencies may not conduct or
sponsor, and respondents are not required to respond to, a
collection of information unless it displays a valid OMB
number. If you wish, send comments regarding the accuracy
of our estimate or any other aspect of this process, including
suggestions for reducing the completion time, to Chief of
Information Resources Management, Railroad Retirement
Board, 844 North Rush Street, Chicago, Illinois 60611-2092.
Computer Matching and Privacy Protection Act Notice
The Computer Matching and Privacy Protection Act of 1988
requires the Railroad Retirement Board (RRB) to advise you
that information you have provided may be used, without
your consent, in automated matching programs. These
matching programs are a computer comparison of RRB
records with records kept by other Federal, State, or local
governmental agencies. Information from these programs
can be used to establish or verify a person’s eligibility for federally funded or administered benefit programs and for repayment of payments or delinquent debts under these programs.