Your Last Pre-Retirement Nonrailroad Employment (LPE) is defined as any nonrailroad individual, company or institution for whom you are working on the date your employee annuity begins or for whom you stopped working in order to receive an annuity. A few exceptions for types of nonrailroad work are listed below.
The nonrailroad employer is always your LPE if you are working in nonrailroad employment on the date your employee annuity begins or, if you have stopped working, you still hold rights to return to service of the nonrailroad employer on the date your employee annuity begins.
The nonrailroad employer is presumed to be your LPE if your stopped working within the six months preceding your annuity beginning date. When you were working for two or more persons, companies, or institutions within the six months preceding your annuity beginning date, all such employers are presumed to be your LPE.
Work That is not Considered LPE
Nonrailroad employment after the date your annuity begins is not LPE unless you worked for that employer before the date your annuity begins. Also, some types of nonrailroad work are not considered LPE, no matter when they are done.
The following types of work are not LPE:
- military service;
- mail handling under contract for the U.S. Post Office;
- jury duty;
- employment for which you are reimbursed only for your expenses;
- certain seasonal employment where you do not have rights to return to the employment (such as working in a department store during the Christmas season);
- work as a member (owner) of a Limited Liability Corporation; or,
- self-employment as defined under the Railroad Retirement Act.
Even though earnings from employment described above are not from LPE, they can cause tier I work deductions.