Glossary of RRB Terms

TERM	DEFINITION
Accelerated Unemployment or Sickness Insurance Benefits	Payable if employee with 10 years of service does not have sufficient earnings to qualify for unemployment-sickness insurance benefits in current benefit year but will qualify in next benefit year. Must have 14 or more consecutive days of unemployment or sickness.
Annuity Beginning Date (ABD)	The date on which an employee, spouse, or divorced spouse applicant first becomes entitled to an annuity or any portion thereof. No annuity can begin to accrue on the 31^stday of a month.
Accrual	Amount of back benefits due.
Age and Service Annuity	Monthly benefit payable to employees with at least 10 years (120 months) of creditable railroad service, or at least 5 years (60 months) of creditable railroad service after 1995.
Age Reduction	Permanent reduction made in the computation of a retirement or survivor annuity if an individual chooses to receive benefits prior to the age required for a full unreduced annuity.
Annual Earnings Exempt Amount	The amount of money you can earn in a year without losing part of your annuity. There are separate *Annual Earnings Exempt Amounts* for persons under Full Retirement Age and for the year in which the person attains Full Retirement Age.
Annuity	Monthly railroad retirement benefit payment.
BA-6 Form	Yearly statement providing current and cumulative record of employee's railroad service and compensation.
Base Year	Calendar year from which an employee’s earnings and service months are used to determine eligibility for unemployment and sickness benefits under the Railroad Unemployment Insurance Act.
Benefit Year	The 12-month period during which qualified employees are paid benefits for days of unemployment/sickness. Usually begins July 1 of any year and ends June 30 of the next year. Pertains to unemployment and sickness benefits only.
Creditable Compensation	The amount of money an employee is paid for service that counts toward railroad retirement benefits.
Current Connection	An employee has a current connection if he or she has 12 months of railroad service in the 30-month period immediately preceding his/her railroad retirement annuity beginning date or death. If an employee is not qualified on this basis, and he or she has 12 months of service in an earlier 30-month period, the current connection requirement may still be met. A current connection is required for survivor, occupational disability, and supplemental annuities; and is not required for age and service or total disability annuities.
Deemed Service Months	If an employee does not actually work in every month of the year, additional service months may be deemed (or credited) in some cases. Employee must have sufficient yearly tier II compensation, and be in an employment relationship with a covered railroad employer, or be an employee representative, during a deemed service month.
Designation of Annuity Beginning Date (ABD)	At the time of filing, most applicants either select a specific beginning date or request the RRB to begin the annuity on the earliest date permitted by law. If the specified date precedes the earliest date possible, the annuity may not begin until the earliest possible date. Under the 1937 Act, the applicant had to designate an ABD before an annuity could begin to accrue. This is not true under the 1974 Act. Now if an application is submitted without designation of ABD, the RRB will begin the annuity on the earliest date permitted by law, provided all eligibility and entitlement requirements have been met. If the selection of a later ABD would be more advantageous, the applicant should be given an opportunity to designate the later ABD. However, without the applicant's approval, we have no authority to establish an ABD that is any later than the earliest date possible.
Direct Deposit	Benefit payments are transferred directly to a beneficiary’s checking or savings account.
Direct Express	Benefit payments are transferred to a Debit MasterCard® issued (by Direct Express) to individuals who do not have a checking or savings account.
Earnings	Income from work performed for another person or company, or from self-employment. Does not include investments, interest income, etc.
Employer	Interstate railroad or affiliate engaged in railroad-connected operations. National/international railroad labor organizations (and their subordinate units) and employer associations are also railroad employers.
Extended Unemployment or Sickness Insurance Benefits	Thirteen consecutive weeks of payments available if employee has 10 years of service and has exhausted normal benefits or is not qualified for normal benefits in current benefit year but was in the previous benefit year.
Full Retirement Age	Age at which full retirement annuity is payable (gradually increasing to 67, depending on year of birth). Unreduced annuity is payable to those who are 60 with 30 years of service, but work deductions still apply until full retirement age is attained.
Last Pre-Retirement nonrailroad Employer (LPE)	Any nonrailroad individual, company, or institution for whom you are working on your annuity beginning date (ABD) or for whom you stopped working in order to receive an annuity. This includes work for a Canadian railroad that is not covered under the Railroad Retirement Act and work as an elected or appointed public official.
Lump-Sum Death Benefit	One-time payment issued if there is no survivor immediately eligible for an annuity upon the death of an employee who had a current connection and 10 years of railroad service (or at least 5 years of service after 1995).
Medicare Hospital Insurance (Part A)	Helps pay for medically necessary inpatient care in a hospital, skilled nursing facility, or psychiatric hospital, and for hospice and home health care.
Medicare Medical Insurance (Part B)	Helps pay for medically necessary physician services and many other medical services and supplies not covered by Part A.
Medicare Advantage Plans (Part C)	Plans (offered by Medicare-approved private companies) which combine Part A and Part B and, in some cases, Part D coverage.
Medicare Prescription Drug Coverage (Part D)	Voluntary prescription drug coverage that helps pay for brand name and generic drugs. Drug plan costs and coverage vary from plan to plan.
Normal Unemployment or Sickness Insurance Benefits	Payable for up to 130 days in a benefit year to qualified employees. Days of unemployment or sickness do not have to be consecutive.
Occupational Disability Annuity	Type of annuity payable to an employee who meets certain age and service requirements and is disabled from being able to perform his/her regular railroad occupation, and the disabling condition is expected to last at least 12 months or longer. Generally, the job employee worked the longest in the last 5 years; current connection and medical evidence required.
Railroad Retirement Maximum	Limits total monthly benefits payable to an employee and spouse.
Service Month	A month of service is credited if an employee has at least one day of earnings, vacation pay, certain sick pay, or other compensation credited by a railroad employer or union in a given month. Special rules apply if service months are allocated as a result of a personal injury settlement.
Sickness Benefits	Provided to qualified employees to restore part of lost wages arising from periods of sickness (for female employees, this includes health conditions related to pregnancy, miscarriage, or child birth). Employee must be unable to work because of sickness or injury.
Spouse Annuity	Annuity payable to the wife or husband of an employee annuitant based on age or on caring for the employee's unmarried child who is under age 18 or disabled before age 22. Benefits can be paid to eligible spouses in same-sex marriages.
Supplemental Annuity	Additional amount payable if employee has at least 25 years of railroad service beginning before October 1, 1981, and a current connection.
Survivor Benefits	MMonthly benefits payable for widow(er)s and/or surviving children and other dependents after death of employee who met service requirements and had a current connection.
Tier I Benefit	A component of a railroad retirement annuity which approximates a social security benefit. Based on railroad and social security earnings.
Tier II Benefit	A component of a railroad retirement annuity paid in addition to a tier I benefit. Based solely on railroad work.
Total Disability Annuity	Type of annuity payable to an employee who meets certain age and service requirements and has a physical or mental condition that makes him/her unable to engage in any regular gainful employment; medical evidence required. Also payable to disabled widow(er)s ages 50-59 and unmarried disabled children over age 18 who become totally disabled before age 22.
Unemployment Benefits	Provided to qualified employees to restore part of the lost wages arising from periods of unemployment. The employee must be ready, willing, and able to work, and be available for work.
Widow(er)'s Initial Minimum Amount (WIMA)	Based on the two-tier annuity amount that would have been payable to the railroad employee when the widow(er)’s annuity is awarded, minus any applicable reductions. Such annuities computed on the basis of this initial minimum amount will not increase until the amount payable under previous law plus subsequent cost-of-living increases is higher than the initial minimum amount.
Work Restrictions	An annuity is not payable if a retiree works for a railroad or rail union after his/her retirement. Employee and spouse tier I and survivor benefits are reduced if earnings are over certain limits (until full retirement age is attained). Work performed for a retired employee’s or spouse’s last pre-retirement nonrailroad employer reduces both tier II and supplemental benefits, regardless of age.

Published by: Public Affairs | Email: opa@rrb.gov