Annual Rate Newsletter

Let Us Know I f You Change Your Address
We need your correct mailing address to mail
benefit notices, tax statements and important
information about changes that may affect yo[-lr
benefits. Please check your address on the
accompanying letter. I f it is correct, you do not
have to do anything. I f it is incorrect, please
contact your nearest RRB office to report your new
address.

Over 86 percent of all railroad retirement
beneficiaries have their monthly benefits deposited
directly into an account at their bank, savings and
loan, or credit union. Direct Deposit is a simple,
safe and secure way to receive benefits.
Beneficiaries on Direct Deposit do not have to worry
about lost, stolen or misplaced checks.
I f you receive a check and want to switch to Direct
Deposit for your montl-~lyrailroad retirement
benefits, visit your bank or other financial
institution. Most financial institutions are able to
corr~pletea Direct Deposit enrollment to get you
started. Or, you can contact your nearest RRB
office to sign up.
If you already have Direct Deposit, be sure to
promptly notify your nearest RRB office if you
change banks or bank accounts. Check with your
RRB office before you close your old bank account
to ensure that your RRB benefits are not delayed.
Railroad retirement beneficiaries can obtain information
and a number of services through the ~&B's website
and toll-free, automated RRB Helpline. If you want to
talk to an RRB claims representatiqe,
call your nearest RRB office.

RRB Website: www.rrb.gov
RRB HelpLine: 1-800-808-0772

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Tax Information
We will mail a tax statement for your 2006 railroad
retirement benefits by January 31,2007. If you do
not receive a statement by February 15, let us
know.
If your monthly benefit amount includes Social
Security benefits, the Social Security Administration
(SSA) will mail you a separate tax statement. I f
you changed your address in the past year and
have not reported the change to SSA, call 1-800772-1213 as soon as possible so that SSA has your
new address.

You can change the amount of the tax withheld
from your monthly benefit by contacting your
nearest RRB office. (If you want taxes withheld
from Social Security benefits paid by the RW, you
must contact SSA to request the withlioldirlg.)
Medicare Information
In 2007, the Medicare Part B premium for most
beneficiaries is $93.50. I f your Medicare premium is
more than your monthly benefit amount, we will bill you
for the amount you owe, instead of deducting it from
your benefits. The Part B deductible for 2007 is
$131.00; up from $124.00 in 2006.

In 2007, the Medicare Part A deductible is $992.00. This
is the amount you pay for a hospital stay before
Medicare begins to pay.
I f you have Medicare, a monthly income of less than

$1,123 (or $1,565 for a couple)*, and resources (such
as bank accol-lnts, stocks and bonds) not exceeding
$4,000 for a single person or $6,000 for a couple, you
may qualify for a Medicare Savings Program. A
Medicare Savings Program can help pay your Medicare
premiums, and-in some cases, deduhibles and
coinsurance amounts. To find out if you are eligible for
a Medicare Savings Program, call your state medical
assistance office. You can get the number to call in your
state by calling 1-800-MEDICARE (1-800-633-4227) and
asking for information about the Medicare Savings
Program.

* Incomelimits increase slightly each year and are higher in Alaska and
Hawaii.

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I Computer Matching and Privacy Protection
The Computer Matching and Privacy Protection Act of
1988 requires the RRB to periodically let you know that
information you provide to us may be used, without your
consent, in automated matching programs. These
matching programs are a computer comparison of RRB
records with records kept by other Federal, state or local
government agencies. Information from these matching
programs can be used to establish or verify a person's
eligibility for benefits and to help in the collection of
debts.

More Medicare
Information

Part B Premiums Based on Income
Starting January I,
2007, some Medicare
beneficiaries with higher incomes will pay higher
monthly Medicare Part B premiums. The Part B
premiums in 2007 for beneficiaries with higher
incomes will be $105.80, $124.40, $142.90, or
$161.40, depending on how much a beneficiary's
annual modified adjusted gross income exceeds
$80,000, or if married and filing a joint tax return,
exceeds $160,000. (These income amounts will
change each year.) About 4 percent of all
Medicare beneficiaries with Part B coverage will
pay these higher premiums.

The Social Security Administration (SSA)

determines if a
beneficiary is required to pay
higher premiums based on income level. SSA
sent letters in November 2006, to railroad
retirerr~er~t
beneficiaries who will pay higher
premiurr~sin 2007. SSA also notified the RRB so
we can collect the correct premium arnour~ts.
Prescription Drug Plan Annual Enrollment
Period The annual period available to Medicare
beneficiaries to enroll in a Medicare prescription
drug plan or to change plans ends December 31;
2006. I n most cases, the next chance to join or
change plans will be November 15,2007 to
December 31, 2007. I f you enrolled in a plan in
2006 and are not changing plans, you do not
have to do anything. Your plan should have
already sent you a letter explaining any changes
for 2007.

The option to have monthly Medicare prescription
drug plan premiums deducted from benefits you
receive from the Railroad Retirement Board will
not be available in 2007. Although this payment
option is not yet available, this does not affect
your prescription drug plan eligibility or coverage.

Computer matching programs are conducted under strict
guidelines designed to ensure that confidential
information is protected and only used for the limited
purpose of the matching program.

Retiree Earnings Limits for 2007
Railroad retirement beneficiaries who are under
full retirement age and who work after retirement
can earn more in 2007 without having their
benefits reduced. For those under full retirement
age throughout 2007 the exempt earnings
amount is $XX,XXX. For beneficiaries attaining
full retirernent age in 2007 the exempt amount is
$XX,XXX, and only earnings in months before the
rnonth you attain full retirement age are counted.
Let us know if you need help determining your
full retirement age.

File Typeapplication/pdfFile Modified2007-08-24File Created2007-08-24