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Tier II Calculation
- Paid in addition to tier I benefit and
based solely on railroad work
- Based on:
- 60 months of highest earnings
(up to tier II maximum)
and
- Total years of railroad service
Notes:
- Tier II
- computed under a separate formula
- comparable to an industrial pension
- reduced for age if required
- reduced by 25% of employee vested dual benefit amount
- Maximum tier II creditable compensation:
- 2005 - $66,900
- 2006 - $69,900
- 2007 - $72,600
- 2008 - $75,900
- 2009 - $79,200
This provides average monthly compensation (AMC) of $6,075.
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