Booklet RB-9 (05-16)

Employee and
Spouse Annuities
Events that
Must Be Reported

Form RB-9 (05-16)

Introduction

What to Report and Why

This booklet describes the different events that can affect
your annuity under the Railroad Retirement Act (RRA).
Whether you are receiving your own annuity, or you
receive payments on behalf of another person, it is your
responsibility to be aware of these events and to notify the
Railroad Retirement Board (RRB) immediately when any
apply to you.
Any new circumstances may cause changes in your entitlement
or in the amount of your annuity. Keep this booklet handy
and refer to it to see if you need to report an event.
If you are not sure if your report is necessary, RRB
representatives will be happy to assist you. To locate the
nearest office, visit out Web site at www.rrb.gov or call
877-772-5772.
Failure to promptly notify the RRB usually constitutes
“fault” on your part that requires you to repay any resulting
overpayment. This could cause your benefits to be suspended,
and may result in the assessment of interest and penalties.
Even if an overpayment may not result, some of the events
described in this booklet must be reported to assure that
the RRB provides you with timely information about your
annuity and with the maximum benefits payable to you.
Other Booklets and Forms of Interest
AB-31
G-77a
G-179
RB-1
RB-30

How Work Affects Your Disability Annuity
How Work Affects Your Railroad Retirement
Benefits
Special Guaranty in Employee and Spouse
Annuities
Age and Service Employee Annuities
Spouse/Divorced Spouse Annuity

RRB booklets and forms are available on the RRB’s website
at www.rrb.gov.

Your annuity entitlement and the amount payable to you
each month is determined according to law and by the
circumstances that exist on the date your annuity begins. Any
later changes in those circumstances are very important. To
guarantee correct payment of the benefits you are due, you
must notify the RRB about all of the events that are described
in this booklet. They are:
Page

Subject

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3

Social Security Benefits
Non-covered Service Pension and Public Service
Pension
Railroad Work
Nonrailroad Earnings after You Attain Full
Retirement Age
Tier 1 Reductions for Nonrailroad Earnings
Before You Attain Full Retirement Age
What Earnings Count for Tier 1 Reduction
When to Report Earnings
Last Pre-Retirement Nonrailroad Employment
(LPE)
LPE Exceptions
Annuity Deductions for LPE
Pension from a Railroad Employer
Total and Permanent Disability after Retirement
Disability and Medical Recovery
Disability Work Deductions
Worker’s Compensation or Other Disability
Based Public Benefits
Marital Status Change
Qualifying Child Status Changes
Conviction for a Criminal Offense
Spouse or Employee Death
Change of Address
Direct Deposit

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How to Report
You may call, visit, or write to any RRB office. In most cases,
your reporting can be completely handled by telephone. If
you plan to personally visit one of the RRB offices, please
call for an appointment. You will not be refused service if
you do not make an appointment, but the RRB staff may be
better able to assist you when an appointment is made.
Always provide the following when you call, visit or write
to the RRB:
•
•
•
•
•
•

Your name;
Your RRB claim number;
The railroad employee’s name, if you are not the
employee;
Your daytime telephone number;
A clear explanation of what you are reporting; and
The exact month, day, and year that the event occurred
or will occur.
Social Security Benefits

The Tier 1 component of your employee, spouse, or divorced
spouse annuity already includes credit for the railroad
worker’s earnings covered by social security taxes. When
you file for social security benefits (SS benefits), the RRB
must reduce your Tier 1 component by the amount of SS
benefits you receive.
If you are awarded SS benefits, the RRB usually will
pay them combined with your annuity. We will adjust
your Tier 1 and send you a letter to explain the two
benefits. If SSA notifies you that they, not the RRB,
will pay your SS benefit payments, notify the nearest
RRB office at once. It is your responsibility to notify us.
Do not expect the Social Security Administration

to tell the RRB that you are being paid SS benefits. Any
delay could cause your annuity to be overpaid. In many
cases, filing for SS benefits will not increase your total benefit
rate, because of the reduction in your Tier 1 component.
If your annuity is increased under the Special Guaranty
provision (see booklet G-179, Special Guaranty in Employee
and Spouse Annuities), you must notify the RRB if any
spouse, minor child, disabled child or student child included
in that computation begins to receive SS benefits, on any
account number.
Non-covered Service Pensions and
Public Service Pensions
A Non-covered Service Pension can reduce your employee
Tier 1 component and the Tier 1 component of your spouse,
as explained in booklet RB-1, Age and Service Employee
Annuities.
A Public Service Pension can reduce your spouse Tier 1
component, as explained in booklet RB-30, Spouse/Divorced
Spouse Annuity.
If you begin to receive a Non-covered Service Pension or
Public Service Pension, report it to the RRB so we can make
a timely adjustment of your annuity.
If your Tier 1 after reduction for your pension is greater than
zero, also notify us when the pension rate increases.

Exception: You do not need to report increases in your Civil
Service Retirement System (CSRS) pension. The RRB receives your
pension rates from the Office of Personnel Management after each
cost-of-living increase.
Railroad Work
You must notify the RRB immediately if you go to work
in the railroad industry. Do not wait for your employer to
notify the RRB.

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If you are the employee annuitant, your regular annuity, or
any supplemental annuity cannot be paid for any month in
which you work for a railroad employer. This law applies no
matter how old you are or how much money you earn from
that work.

However, Last Pre-Retirement Nonrailroad Employer (LPE)
work deductions can still apply as explained on page 10.

If you are the spouse annuitant, your annuity is not payable
for any month you work for a railroad or for any month the
employee annuitant returns to railroad work.

This section only concerns the Tier 1 component, vested dual
benefit (VDB), and Special Guaranty reductions for age and
service annuitants and their families. Tier 2 reductions for
Last Pre-Retirement Nonrailroad Employment are explained
on pages 8-10. The rules for disability annuitants are
explained on page 11.

Nonrailroad Earnings
After You Attain Full Retirement Age
This section applies to annuities based on age and service and
disability annuities. For months after you have attained Full
Retirement Age (FRA), your Tier 1 component is not subject
to reductions because of your nonrailroad earnings.
DETERMINING YOUR FULL RETIREMENT AGE
If you were born:
then your FRA is:
Before 1-2-1938
65

Tier 1 Reductions for Nonrailroad Earnings
Before You Attain Full Retirement Age

Your Tier 1 components are not reduced for your nonrailroad
earnings if you are receiving social security benefits.
Otherwise, your nonrailroad earnings over the Annual
Earnings Exempt Amount could reduce your employee or
spouse annuity Tier 1, any VDB, or your Special Guaranty
computation rate if you have not attained Full Retirement
Age.
The employee’s nonrailroad earnings also can cause a
reduction to the spouse Tier 1 component. The employee’s
nonrailroad earnings also cause a reduction to the divorced
spouse annuity within two years of the date of the final
divorce decree.

1-2-1938 thru 1-1-1939

65 and 2 months

1-2-1939 thru 1-1-1940

65 and 4 months

1-2-1940 thru 1-1-1941

65 and 6 months

1-2-1941 thru 1-1-1942

65 and 8 months

1-2-1942 thru 1-1-1943

65 and 10 months

What Earnings Count for Tier 1 Reductions

1-2-1943 thru 1-1-1955

66

1-2-1955 thru 1-1-1956

66 and 2 months

1-2-1956 thru 1-1-1957

66 and 4 months

1-2-1957 thru 1-1-1958

66 and 6 months

Tier 1 earnings restrictions apply to gross earnings from
your employment for others, plus any net earnings from
self-employment. Your net self-employment amount is the
earnings amount after business expenses that you report to the
Internal Revenue Service.

1-2-1958 thru1-1-1959

66 and 8 months

1-2-1959 thru 1-1-1960

66 and 10 months

1-2-1960 and later

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Do not include as earnings, any money you received for
reasons other than for work you performed. Gifts, interest
earned, inheritance, pensions, and investment income do not
count as earnings for this purpose.
When to Report Earnings
You should report your earnings when you begin or end
nonrailroad employment and expect to earn more than the
Annual Earnings Exempt Amount to allow timely adjustment
of your annuity. Also report if you will earn substantially
more or less than you earned in the previous year.
When you tell us that you have begun nonrailroad employment
or changed your earnings from the previous year, we apply
temporary deductions to your annuity based on the amount
you expect to earn.

HOW EARNINGS DEDUCTIONS ARE ASSESSED
If:

Then the
amount of:

For
months:

employees are
entitled based
on age and are
under FRA for
the full calendar
year,

$1.00 for every
$2.00 which they
earn over their
Annual Earnings
Exempt Amount,

in the full
calendar
year,

employee and
spouse Tier 1,
any employee
VDB, or all
family member
shares in the
calculation of
the Special
Guaranty
computation.

employees are
entitled based on
age and attain
FRA during the
calendar year,

$1.00 for every
$3.00 which they
earn over their
Annual Earnings
Exempt Amount,

up to the
month the
employees
attain FRA,

employee and
spouse Tier 1,
any employee
VDB, or all
family member
shares in the
calculation of
the Special
Guaranty
computation.

spouses are
under FRA for
the full calendar
year,

$1.00 for every
$2.00 which
spouses earn
over their Annual
Earnings Exempt
Amount,

in the full
calendar
year,

their spouse
Tier 1 or their
shares in the
calculation of
the Special
Guaranty
increase.

spouses attain
FRA during the
calendar year,

$1.00 for every
$3.00 which
spouses earn
over their Annual
Earnings Exempt
Amount,

up to the
month the
spouses
attain FRA,

their spouse
Tier 1 or their
shares in the
calculation of
the Special
Guaranty
increase.

your minor or
student children
work,

$1.00 for every
$2.00 which they
earn
over their Annual
Earnings Exempt
Amount,

in the full
calendar
year,

their shares in
the calculation
of the Special
Guaranty
increase.

Later, if your nonrailroad earnings are covered by the Federal
Insurance Contributions Act (FICA) or the Self-Employment
Contributions Act (SECA), the RRB will receive an annual
report of those earnings from a tape match with the Social
Security Administration.
It sometimes takes longer for the RRB to receive information
about nonrailroad earnings that are not covered by FICA or
SECA. If you receive such earnings, you should report your
final earnings for the year by April 15, of the following year.
Refer to Form G-77a, How Work Affects Your Railroad
Retirement Benefits, for the current Annual Earnings Exempt
Amounts for your age group and refer to the following chart:

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Is deducted
from:

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Last Pre-Retirement Nonrailroad Employment
Your Last Pre-Retirement Nonrailroad Employer (LPE) is
defined as any nonrailroad individual, company, or institution
for whom you are working on your annuity beginning date
(ABD) or for whom you stopped working in order to receive
an annuity. This includes work for a Canadian railroad that is
not covered under the Railroad Retirement Act and work as
an elected or appointed public official.

records. Any work for your LPE that continues or is resumed
after your annuity beginning date must be reported to the
RRB at once. Be sure to provide the name and address of your
employer and your estimated monthly earnings.
If you stop LPE, or you expect a change in your estimated
monthly earnings, contact the nearest RRB office to have
your payments adjusted.
LPE Exceptions

The nonrailroad employer is always your LPE if you are
working in nonrailroad employment on your ABD or, if
you have stopped working, you still hold rights to return to
service of the nonrailroad employer on your ABD.
The nonrailroad employer would be presumed to be your LPE
if:
•

You are the employee annuitant, and stopped working
for the nonrailroad employer within six months
immediately before your employee ABD, whether or
not you also had been working for a railroad employer
at the same time, or,

•

You are a spouse annuitant, who may have never
worked for a railroad, and stopped working for
the nonrailroad employer within the six months
immediately before your ABD.
the eloyee annuitant, and stoppedr not you also had been
When applicants were working for two or more persons,
companies, or institutions within the six months preceding
their ABD, all such employers are presumed to be LPE.

Some types of nonrailroad employment are not counted as
LPE. These types of work do not affect payment of your Tier
2 component or supplemental annuity. These exceptions are:
•
•
•
•
•
•
•

Military service
Jury duty
Mail handling by contract with the U.S. Postal Service
Volunteer work
Work for which you only receive payment of expenses
Work as member (owner) of a Limited Liability
Corporation (LLC)
Self-employment

NOTE 1: If you claim an LPE exception as a member of an
LLC, you must submit proof, including your statement, the
name of any license, and copies of articles of organization,
the operating agreement, and contracts with various clients.
NOTE 2: Work as an LLC employee, hired by the members
who own an LLC, is counted as LPE.

When you applied for your annuity, we asked for the
names of your most recent nonrailroad employers,
if any. That information established your LPE for RRB

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Total and Permanent Disability after Retirement

NOTE 3: If you begin self-employment that has any connection
with railroad employment or your LPE (such as consultant
work), report this to the nearest RRB office. We may ask you to
complete Form AA-4, Self-Employment and Substantial Service
Questionnaire, which will help the RRB determine whether
to consider your work self-employment or a continuation of
railroad service or LPE.

Contact the RRB if you are receiving an age and service
annuity or occupational disability annuity and you become
totally disabled before you reach Full Retirement Age. You
may be eligible for early Medicare coverage and other benefits
if you meet requirements for total and permanent disability.

Annuity Deductions for LPE

Disability and Medical Recovery

Earnings reductions for LPE occur at any age, even after
attaining Full Retirement Age. There is no Annual Earnings
Exempt Amount for LPE. Even work for minimum pay may
be LPE.

You must report ANY new employment. It is important that
your report includes:

Any LPE earnings received by an employee annuitant for
service in or after the month the annuity begins, will reduce the
amount of the employee’s Tier 2 component, the employee’s
supplemental annuity, if any, and the spouse’s Tier 2 component.
The LPE work deduction is $1.00 for every $2.00 earned, but
not more than 50% of the Tier 2 components and supplemental
annuity.
Any LPE earnings received by a spouse annuitant for service
in or after the month a spouse annuity begins, will reduce the
amount of the spouse’s Tier 2 component (up to 50%).
A prompt report will allow for a timely adjustment to avoid
overpayment of your annuity.
Pension from a Railroad Employer

•
•
•
•
•

The kind of work you are doing;
How much you expect t earn each month;
The period of time you expect to be working;
How many hours you expect to work; and,
The amount of any disability-related work expenses.

work and earnings will be evaluated to see if you are able to
perform regular work. ANY work after your annuity begins,
regardless of your amount of earnings, may raise questions
about medical recovery.
If you return to work, or your doctor tells you that you are able
to work, notify your local RRB office. We will ask for more
information about your condition and possibly request new
medical examinations. Failure to promptly contact the RRB
about changes in your disability status could result in large
annuity overpayments with penalties.
Disability Work Deductions

The supplemental annuity is reduced by the amount of a pension
from a railroad employer that is based on the employer’s
contributions. Notify the RRB promptly if you begin receiving
a railroad pension or receive a lump-sum distribution from a
railroad pension. Not doing so will cause your supplemental
annuity to be overpaid.

If you are less than Full Retirement Age and you receive a
disability-based annuity, the Annual Earnings Exempt Amount
does not apply to your disability Tier 1 component.

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Your disability annuity cannot be paid for any month
you work and have earnings over the disability
earnings limit (refer to Form AB-31, How Work Affects

Your Disability). “Earnings” are defined on page 5 of
this booklet. Certain disability-related work expenses are
subtracted from your earnings, such as the costs of special
transportation, medicine used to control the impairment that
caused the disability, attendant care, medical devices, and
prosthetic devices.
When you tell us that you will have earnings over the
disability earnings limit, we apply temporary deductions to
your annuity for the calendar year based on the amount you
expect to earn. We will send you a form after the end of that
year to report your actual monthly and total earnings for that
year.
•

If your total earnings are less than the disability
earnings maximum for that calendar year, any
monthly benefits that we withheld will be paid to you.

Marital Status Change
If your marriage ends by divorce or annulment, notify the RRB
to have your records updated (including any name change)
and to assure that any spouse annuity is adjusted or terminated
timely. Also report if a child, included in the Special Guaranty
computation, marries.
If a stepchild is included in your Special Guaranty computation,
and your marriage to the child’s natural parent ends by divorce
or annulment, notify the RRB. We are required to exclude the
stepchild from the Special Guaranty computation.
If you are receiving a divorced spouse annuity, your entitlement
ends the month that you remarry.
Qualifying Child Status Changes

•

If your total earnings are greater than the disability
earnings maximum during that year, you will not be
entitled to an annuity for some months in that year.
How long your annuity is not payable depends on how
much you earn, but the number of months withheld
will not exceed the actual number of months that you
worked in that year.
Worker’s Compensation or Other
Disability-Based Public Benefits

Your disability annuity Tier 1 component is subject to a
reduction if you also receive worker’s compensation or
another public, disability-based, benefit before you reach
Full Retirement Age. This reduction requirement may apply
even if you received a lump-sum payment or an amount
divided and paid in several payments. If you receive a public
disability or worker’s compensation award, or if the amount
you receive changes, notify the RRB as soon as possible.
Delay may cause a large overpayment of your annuity.

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If your spouse annuity is based on a child in your care, your
benefit eligibility ends if certain events occur before you qualify
for an annuity based on your age. If the child attains age 18 or is
no longer disabled, or if the child enters military service, marries,
dies, or leaves your care before age 18, your payments must stop.
Your spouse annuity termination is automatically processed
when RRB records show the child is age 18, but you must report
events that could end your spouse annuity eligibility earlier. You
must also notify your local RRB office if you receive an annuity
payment after your entitlement ends.
Conviction for a Criminal Offense
A prison sentence or confinement due to a conviction for a
criminal offense changes the income tax liability for annuity
payments and the reports required by the RRB to the IRS.

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If you or your spouse are confined due to a conviction for a
criminal offense, report this to the RRB. The RRB will then
determine if any payment changes are required. Also report if
you receive a spouse annuity based on a child in your care or the
Special Guaranty computation includes a child and that child is
confined due to a conviction for a criminal offense.
Places of confinement include prisons, jails, hospitals, schools,
halfway houses, and other facilities in which a person is under
the control and jurisdiction of a penal system. The period of
confinement ends when the prisoner is paroled or released
because the sentence has ended, been suspended, or overturned.
Spouse or Employee Death
Promptly notify the RRB when an employee or spouse dies, to
avoid possible overpayment. An annuity is not payable for the
month in which an employee or spouse dies. It is against the law
to cash an annuity check issued to a person who has died. If a
payment by check is received after that person’s date of death,
it must be returned to the RRB or to the Treasury Department
address shown on the envelope.
It is also against the law to use direct deposit funds received by a
financial institution for a person who has died. If a direct deposit
annuity payment is received after that person’s date of death,
the financial institution is required to return it to the Treasury
Department at once.
When an employee dies, survivor benefits may be payable.

Change of Address
Even though your payments may be sent by direct deposit, notify
both the RRB and the financial institution that receives your
payment as soon as possible, if your home address changes.
We need your home address to mail important information about
RRB benefit increases, earnings allowances, Medicare, and
your income tax statements. If you do not report your change of
address, the RRB is not responsible for information you do not
receive.
To report an address change, write the RRB and provide the
following information:
•
•
•
•
•
•

Your railroad retirement claim number;
Your name;
Your new address;
Your old address;
The date you will start receiving mail at the new address; and,
If your spouse also receives an annuity from the
RRB, a statement that your change of address applies
to both you and your spouse or applies to you alone.
Direct Deposit

An address change report does not change your direct deposit
information. If you are changing bank accounts, or wish your
payments to go to a different financial institution, you must tell
the RRB your new account number and the new bank’s routing
number. (The routing number appears at the bottom of your new
checks or the bank will give it to you.)
Do not close your old account until you receive the first RRB
payment in your new account.

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Reminder

NONDISCRIMINATION ON THE BASIS OF DISABILITY

A prompt report of any of the events described in this booklet will
allow the RRB to provide you with accurate and timely benefits
and service. For your convenience, most of this reporting may be
handled completely by telephone without a trip to an RRB office.
If additional action is required on your part, contact the nearest
office of the RRB.

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, 60611-1275. Questions about individual
rights under this regulation may be directed to the RRB’s Director of Equal
Opportunity at the same address.

Use the following chart to keep a record of the events that you
report to the RRB; the method used to report the event (i.e.,
telephone, mail); and the date that you reported the event. When
writing to the RRB, we recommend that you keep a copy of your
report.

Event

Method Used
Date
to Report
Reported

FRAUD, WASTE, AND ABUSE HOTLINE
The RRB’s Office of Inspector General established its Hotline as a public
service. The Hotline provides individuals with a means to report or discuss
any suspected misconduct relating to the RRB, its programs or employees.
If you believe a doctor, hospital, or other health care provider is billing
Medicare for services not provided or for unnecessary medical procedures or
supplies; someone is illegally receiving RRB benefits; or you wish to report
or discuss any other suspected misconduct relating to the RRB, its programs
or employees, please contact the Office of Inspector General at:
Toll-Free Hotline: 1-800-772-4258
U.S. Mail: RRB-OIG Hotline Officer
844 North Rush Street
Chicago, Illinois 60611-1275
Fax: (312) 751-4342
Email: [email protected]
Please review the RRB’s email notice and Internet privacy policy at
www.rrb.gov before submitting information online.
Note: Please do not contact the Office of Inspector General’s Hotline with
questions regarding benefit eligibility requirements, delayed payments or
similar problems. These types of matters should be directed to an RRB
office.

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