An AGE AND SERVICE ANNUITY can be paid to:
- Employees with 30 or more years of creditable service. They are eligible for regular annuities based on age and service the first full month they are age 60. Early retirement reductions are applied if the employee first became eligible for a 60/30 annuity July 1, 1984, or later and retired at ages 60 or 61 before 2002.
- Employees with 10-29 years of creditable service, or 5-9 years, if at least 5 years were after 1995. They are eligible for regular annuities based on age and service the first full month they are age 62. Early retirement annuity reductions are applied to annuities awarded before full retirement age, which ranges from age 65 for those born before 1938 to age 67 for those born in 1960 or later, the same as under social security. Reduced annuities are still payable at age 62 but the maximum reduction will be 30 percent rather than 20 percent by the year 2022. The tier II portion of an annuity is not reduced beyond 20 percent if the employee had any creditable railroad service before August 12, 1983. See Railroad Retirement Annuity Formula Components for a detailed explanation of age reductions.
An annuity based on age cannot be paid until the employee stops railroad employment, files an application and gives up any rights to return to work for a railroad employer.