Comparing Railroad Retirement Benefits with Social Security Employers and employees covered by the Railroad Retirement Act pay higher retirement taxes than those covered by the Social Security Act, so that railroad retirement benefits remain higher than social security benefits, especially for career employees. Click here for answers to questions about the differences in rail retirement and
The amounts of compensation subject to railroad retirement tier I and tier II payroll taxes will increase in 2008. However, the tier I tax rate on employees and employers remains unchanged. Under the Railroad Retirement and Survivors’ Improvement Act of 2001, tier II tax rates are determined annually by an average account benefits ratio. Based
Railroad Retirement Spouse Benefits—In addition to the retirement annuities payable to employees, the Railroad Retirement Act, like the Social Security Act, also provides annuities for the spouses of retired employees. Payment of a spouse annuity is made directly to the wife or husband of the employee. Divorced spouses may also qualify for benefits. Read more.
TCU’s negotiated medical plans for early retirees contain provisions for automatic adjustments in the lifetime insurance maximum based on medical cost inflation. Effective January 1, 2008, the lifetime maximum will increase by $6,500. Read more.
Railroad retirement annuitants subject to earnings restrictions can earn more in 2008 without having their benefits reduced, as a result of increases in earnings limits indexed to average national wage increases. Read more.
Most railroad retirement annuities, like social security benefits, are scheduled to increase in January 2008 on the basis of the rise in the Consumer Price Index during the 12 months preceding October 2007. Read more.
The standard Medicare Part B monthly premium will be $96.40 in January 2008, an increase of $2.90 from the 2007 premium of $93.50. Read more.
The Union Plus program has an online retirement center to help plan for the future. One caution: the site works with an assumption of Social Security benefits and does not consider Railroad Retirement benefits. To adjust for this, get estimates of your retirement benefits from the RRB’s website here.
Click here to go to the Reps’ Corner article.
The Pension Protection Act of 2006, enacted last August, contains provisions which affect payments made by the Railroad Retirement Board to the divorced spouses of railroad employees. More »
