This section only concerns Tier 1 component, vested dual benefit (VDB) or Special Guaranty reductions for age and service annuitants and their families. Tier 2 reductions for Last Pre-retirement Nonrailroad Employer (LPE) and the rules for disability annuitants are explained in other sections of this publication.
Your Tier 1 components are not reduced for your nonrailroad earnings if you are receiving social security benefits.
Otherwise, your nonrailroad earnings over the Annual Earnings Exempt Amount could reduce your employee or spouse annuity Tier 1, any VDB, or your Special Guaranty computation rate if you have not attained Full Retirement Age (FRA).
The employee's nonrailroad earnings also can cause a reduction to the spouse tier 1 component. The employee's nonrailroad earnings also cause a reduction to the divorced spouse annuity within two years of the date of the final divorce decree.