You may be entitled to an additional lump-sum payment if you received a Separation Allowance after 1984 and such payment did not provide additional railroad retirement service credits.
Computation of Lump-Sum
The Separation Allowance lump-sum payment for the year(s) the Separation Allowance was paid is computed as follows.
Step 1 - Subtract the amount of the Separation Allowance used in the total railroad service credits from the total amount of the Separation Allowance subject to tier II taxation.
Step 2 -If the result of Step 1 is greater than zero, multiply the result of step 1 by the amount of employee Tier 2 contribution rate(s) under the Railroad Retirement Tax Act (RRTA) for the year(s) the Separation Allowance was paid.
To be eligible for a Separation Allowance lump-sum payment, you must have completed at least 120 months of railroad service, or 60-119 months of railroad service with at least 60 months of railroad service after 1995. If you qualify for the payment, you do not have to apply for it. The RRB will automatically pay it to you when you retire. If you die before receiving this payment, it will be paid to your survivors.