Disability Annuities

Notes:

• For those with less than 10 years of railroad service, the employee must meet social security’s insured status and have 20 quarters of coverage (railroad and/or social security) in the last 40 quarters preceding disability in order to receive a benefit.
• No age reduction if employee has at least 10 years of service. For those with less than 10 years of service, a tier II benefit is not payable until the employee attains age 62. The tier II benefit is reduced for early retirement.
• Five-month waiting period after month of onset of disability before benefits can begin; however, sickness benefits may be payable during waiting period. Waiting period is five full months. Employees need not wait until the end of the waiting period to file an application.
• Total and permanent disability means a physical or mental disability that prevents any regular employment. May qualify for early Medicare coverage and lower Federal income tax on annuity.
• Occupational disability means the employee is permanently disabled for his or her regular railroad occupation (generally, the job employee worked the longest in the last 5 years).
• Employee can be in compensated service while filing a disability application as long as compensated service terminates within 90 days from date of filing and the compensated service is not active service.
• In order for the supplemental annuity to be paid or for an eligible spouse to receive benefits, a disability annuitant under full retirement age must relinquish rights.