Some retired railroad employees may be eligible to receive a supplemental annuity from the RRB. This is in addition to the regular age and service or disability annuity.
Requirements for a Supplemental Annuity
To be eligible for the supplemental annuity, you must meet all of the following requirements:
- Age and Railroad Service - You must be at least age 65 with at least 300 months (25 years) of creditable railroad service, or at least age 60 with at least 360 months (30 years) of creditable railroad service. (Note that the age requirement for the supplemental annuity is not affected by the definition of Full Retirement Age (FRA));
- Qualified for Annuity - You must be eligible for, and have filed for, an age and service or disability annuity. The supplemental annuity can never begin before the regular age and service or disability annuity;
- Railroad Service Before October 1, 1981 - You must have railroad service creditable to at least one month before October 1, 1981; and,
- Current Connection - You must have a Current Connection with the railroad industry.
Reduction for Employer Pension
The amount of your supplemental annuity is reduced if you are receiving a monthly pension from your railroad employer that is based in whole or in part on railroad employer contributions. It is also reduced for any lump-sum distribution of the employer contributions that you receive from your pension plan, in lieu of a monthly rate. The lump-sum distribution is considered to be paid, even if you roll-over the funds to another pension account. Your own contributions to your pension account do not affect your supplemental annuity.
On your annuity application, you will be asked to include the name of the railroad employer(s) with whom you still hold pension rights (other than railroad retirement). Indicate the category (choose one only) that most accurately applies to the job position that vested you for the employer monthly pension or lump-sum pension payment.
The RRB will forward Form G-88p, "Employer's Supplemental Pension Report" to your railroad employer when you:
- are retiring from a job position that is covered by an employer monthly pension or lump-sum pension plan that could cause a reduction to your RRB supplemental annuity or
- indicate that you are receiving, or will receive, an employer monthly pension or lump-sum pension payment.