Policy and Systems

The tier I amount is based on the deceased employee's combined railroad retirement and social security credits. The tier I you will receive is equal to a percentage of the amount that the employee would have received if he or she had retired under the social security system only. The percentage depends on the type of benefit you are receiving and the number of annuitants who are qualified to receive a benefit. If there are fewer than three qualified family members, the percentages are as follows:

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Cost-of-Living Increases

Periodically, you will receive a cost-of-living increase. Your gross tier I increase will be the same percentage as the social security benefit cost-of-living increase. Your tier II will generally increase by 32.5 percent of the tier I percentage increase. An increase may not be payable each year.

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The Parts Of A Railroad Retirement Annuity

Your annuity can be made up of one or two parts, depending on the type of annuity you are receiving. The first part, tier I, is included in all annuities.

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Part VII - How Your Annuity Is Computed

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Change of Address

Always inform the RRB when there is a change in your mailing address. It is important to report all changes to the RRB, even if your payments are sent directly to a financial institution. This mailing address is used to send you any material other than your payments, such as award notices, notices of cost-of-living increases, Medicare information, taxation information, new annual exempt amounts, etc.

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Changing Account or Financial Organization

To arrange to have your payment sent to a different account or a different financial institution, simply notify the nearest office of the RRB. To avoid delays in the receipt of your payment, do not close the old account until your annuity payments have begun to be deposited into the new account.

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How Payments Are Made

In most cases, RRB annuity payments are deposited directly into the applicant's checking or savings account at their financial institution. Therefore, when filing for an annuity, bring the following: your checkbook or a voided check; your bank statement; or the name, location, and telephone number of your financial institution. This will allow the field office representative to properly route your payment.

The first payment which you receive from the RRB will include all back payments which are due. This payment may be received at any time during the month.

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Notice Of Railroad Retirement Board Decision About Your Application

Using the information on your application and the proofs, the RRB will decide if an annuity can be paid.

If an annuity cannot be paid, the RRB will send you a letter which explains:

why an annuity cannot be paid; and
what you can do if you disagree with the reason an annuity cannot be paid.

If an annuity can be paid, you will receive:

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Part VI - After You Apply For Your Annuity

The sections in this part of the booklet explain what the Railroad Retirement Board (RRB) does after we receive your annuity application. Included is important information about how soon you can expect a decision on your application and the different ways in which the RRB can send you your annuity payments.

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