Spouse/Divorced Spouse Annuities

RB-30 (8-07)
Reductions for Early Retirement

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Basic Formula

Regular railroad retirement annuities are calculated under the following two-tier formula:

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.

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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.

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Full Retirement Age For Spouse or 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:

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Determining Your Full Retirement Age

If you were born:	Then your FRA is:
Before 1-2-1938,	65.
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.
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.
1-2-1958 thru 1-1-1959,	66 and 8 months.
1-2-1959 thru 1-1-1960,	66 and 10 months.
1-2-1960 and later,	67.

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(FRA also affects Tier 1 component work deductions, regardless of the number of the employee's years of railroad service.)

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

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

Tier 1 Component Age Reduction

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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 annuity beginning date.

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 annuity beginning date.
   
   
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 annuity beginning date.

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Spouse Age Requirements when Employee has 60-359 Months Railroad Service

If the employee retired with an annuity beginning date:	and the employee has attained:	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:
before 1975 based on at least 120 months of railroad service,	age 65,	your Full Retirement Age.	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 Full Retirement Age.	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 Full Retirement Age.	your Full Retirement Age.
in 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. (The employee must have an SS Act Insured Status to qualify you for a Tier 1 component.)	age 65.
in January 2002 or later, based on 60-119 months railroad with at least 60 months of railroad service after 1995, and did not have railroad service before August 12, 1983,	age 62,	your FRA. (The employee must have an SS Act Insured Status to qualify you for a Tier 1 component.)	your Full Retirement Age.

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

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

If the employee annuity is based on age and service, your spouse Tier 1 may have an age reduction, depending on the employee's annuity beginning date.

If the employee annuity is based on disability, your spouse Tier 1 may have an age reduction, depending on your spouse annuity beginning date.

Your spouse Tier 2 will not have an age reduction.

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

If the employee is retired based on:	and the employee:	your spouse annuity can begin the first full month you are age 60. Your Tier 1 will:	Your Tier 2 will:
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. Note: For these cases, your spouse annuity cannot begin before January 1, 1975.	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. 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.	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 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 railroad 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 railroad 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. -  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.	not have an age reduction.

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Divorced Spouse Annuity

A divorced spouse annuity is limited to 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 Full Retirement Age (FRA) and by 1/240 for each additional month you are under FRA on your annuity beginning date. However, if you were entitled to a spouse annuity before your final divorce from the employee, any previous spouse annuity age reduction is applied to your divorced spouse annuity.

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Summary of Divorced Spouse Age Reductions

If the employee is receiving an RRA employee annuity and 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.

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