RB-9, Employee and Spouse Annuities - Events That Must Be Reported

EVENTS THAT AFFECT
EMPLOYEE AND
SPOUSE ANNUITIES

United States of America
Railroad Retirement Board
Visit our Website at www.rrb.gov

RB-9 (07-19)

Introduction
This booklet describes the different events that can affect your annuity under the Railroad Retirement Act
(RRA).
Whether you are receiving your own annuity, or you receive payments on behalf of another person, it is
your responsibility to be aware of these events and to notify the Railroad Retirement Board (RRB)
immediately when any apply to you.
Any new circumstances may cause changes in your entitlement or in the amount of your annuity. Keep this
booklet handy and refer to it to see if you need to report an event.
If you are not sure if your report is necessary, RRB representatives will be happy to assist you. To locate
the nearest office, visit our Web site at www.rrb.gov or call 877-772-5772.
Failure to promptly notify the RRB usually constitutes “fault” on your part that requires you to repay any
resulting overpayment. This could cause your benefits to be suspended, and may result in the assessment
of interest and penalties.
Even if an overpayment may not result, some of the events described in this booklet must be reported to
assure that the RRB provides you with timely information about your annuity and with the maximum
benefits payable to you.
Other Booklets and Forms of Interest
AB-31
G-77a
G-179
RB-1
RB-30

How Work Affects Your Disability Annuity
How Work Affects Your Railroad Retirement Benefits
Special Guaranty in Employee and Spouse Annuities
Age and Service Employee Annuities
Spouse/Divorced Spouse Annuity

RRB booklets and forms are available on the RRB’s website at www.rrb.gov.

What to Report and Why
Your annuity entitlement and the amount payable to you each month is determined according to law and by
the circumstances that exist on the date your annuity begins. Any later changes in those circumstances are
very important. To guarantee correct payment of the benefits you are due, you must notify the RRB about
all of the events that are described in this booklet. They are:
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Subject
Social Security Benefits
Non-covered Service Pension and Public Service Pension
Railroad Work
Non-railroad Earnings after You Attain Full Retirement Age
Tier 1 Reductions for Non-railroad Earnings Before You Attain Full Retirement Age
What Earnings Count for Tier 1 Reduction
When to Report Earnings
Last Pre-Retirement Non-railroad Employment (LPE)
LPE Exceptions
Annuity Deductions for LPE
Pension from a Railroad Employer
Total and Permanent Disability after Retirement
Disability and Medical Recovery
Disability Work Deductions
Worker’s Compensation or Other Disability Based Public Benefits
Marital Status Change
Qualifying Child Status Changes
Conviction for a Criminal Offense
Spouse or Employee Death
Change of Address
Direct Deposit

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How to Report
You may call, visit, or write to any RRB office. In most cases, your reporting can be completely handled
by telephone. If you plan to personally visit one of the RRB offices, please call for an appointment. You
will not be refused service if you do not make an appointment, but the RRB staff may be better able to assist
you when an appointment is made. RRB offices are open to the public 9:00 AM to 3:30 PM on Monday,
Tuesday, Thursday, and Friday and 9:00 AM to 12:00 PM on Wednesday.
Always provide the following when you call, visit or write to the RRB:
•
•
•
•
•
•

Your name;
Your RRB claim number;
The railroad employee’s name, if you are not the employee;
Your daytime telephone number;
A clear explanation of what you are reporting; and
The exact month, day, and year that the event occurred or will occur.

Social Security Benefits
The Tier 1 component of your employee, spouse, or divorced spouse annuity already includes credit for the
railroad worker’s earnings covered by social security taxes. When you file for social security benefits (SS
benefits), the RRB must reduce your Tier 1 component by the amount of SS benefits you receive.
If you are awarded SS benefits, the RRB usually will pay them combined with your annuity. We will adjust
your Tier 1 and send you a letter to explain the two benefits. If SSA notifies you that they, not the RRB,
will pay your SS benefit payments, notify the nearest RRB office at once. It is your responsibility to
notify us. Do not expect the Social Security Administration to tell the RRB that you are being paid SS
benefits. Any delay could cause your annuity to be overpaid. In many cases, filing for SS benefits will
not increase your total benefit rate, because of the reduction in your Tier 1 component.
If your annuity is increased under the Special Guaranty provision (see booklet G-179, Special Guaranty in
Employee and Spouse Annuities), you must notify the RRB if any spouse, minor child, disabled child or
student child included in that computation begins to receive SS benefits, on any account number.

Non-covered Service Pensions and Public Service Pensions
The A Non-covered Service Pension can reduce your employee Tier 1 component and the Tier 1 component
of your spouse, as explained in booklet RB-1, Age and Service Employee Annuities.
A Public Service Pension can reduce your spouse Tier 1 component, as explained in booklet RB-30,
Spouse/Divorced Spouse Annuity.
If you begin to receive a Non-covered Service Pension or Public Service Pension, report it to the RRB so
we can make a timely adjustment of your annuity.
If your Tier 1 after reduction for your pension is greater than zero, also notify us when the pension rate
increases.
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Exception: You do not need to report increases in your Civil Service Retirement System (CSRS) pension.
The RRB receives your pension rates from the Office of Personnel Management after each cost-of-living
increase.

Railroad Work
You must notify the RRB immediately if you go to work in the railroad industry. Do not wait for your
employer to notify the RRB.
If you are the employee annuitant, your regular annuity, or any supplemental annuity cannot be paid for
any month in which you work for a railroad employer. This law applies no matter how old you are or how
much money you earn from that work.
If you are the spouse annuitant, your annuity is not payable for any month you work for a railroad or for
any month the employee annuitant returns to railroad work.

Non-railroad Earnings After You Attain Full Retirement Age
This section applies to annuities based on age and service and disability annuities. For months after you
have attained Full Retirement Age (FRA), your Tier 1 component is not subject to reductions because of
your non-railroad earnings.

DETERMINING YOUR FULL RETIREMENT AGE

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If you were born:

Then your FRA is:

Before 1-2-1938

65

1-2-1938 thru 1-1-1939

65 and 2 months

01-02-1939 thru 01-01-1940

65 and 4 months

01-02-1940 thru 01-01-1941

65 and 6 months

01-02-1941 thru 01-01-1942

65 and 8 months

01-02-1942 thru 01-01-1943

65 and 10 months

01-02-1943 thru 01-01-1955

66

01-02-1955 thru 01-01-1956

66 and 2 months

01-02-1956 thru 01-01-1957

66 and 4 months

01-02-1957 thru 01-01-1958

66 and 6 months

DETERMINING YOUR FULL RETIREMENT AGE
If you were born:

Then your FRA is:

01-02-1958 thru 01-01-1959

66 and 8 months

01-02-1959 thru 01-01-1960

66 and 10 months

01-02-1960 and later

67

However, Last Pre-Retirement Non-railroad Employer (LPE) work deductions can still apply as explained
on page 6.

Tier 1 Reductions for Non-railroad Earnings Before You Attain Full Retirement Age
This section only concerns the Tier 1 component, vested dual benefit (VDB), and Special Guaranty
reductions for age and service annuitants and their families. Tier 2 reductions for Last Pre-Retirement Nonrailroad Employment are explained on pages 6 & 7. The rules for disability annuitants are explained on
page 7 & 8.
Your Tier 1 components are not reduced for your non-railroad earnings if you are receiving social security
benefits.
Otherwise, your non-railroad 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.
The employee’s non-railroad earnings also can cause a reduction to the spouse Tier 1 component. The
employee’s non-railroad earnings also cause a reduction to the divorced spouse annuity within two years
of the date of the final divorce decree.

What Earnings Count for Tier 1 Reductions
Tier 1 earnings restrictions apply to gross earnings from your employment for others, plus any net earnings
from self-employment. Your net self-employment amount is the earnings amount after business expenses
that you report to the Internal Revenue Service.
Do not include as earnings, any money you received for reasons other than for work you performed. Gifts,
interest earned, inheritance, pensions, and investment income do not count as earnings for this purpose.

When to Report Earnings
You should report your earnings when you begin or end non-railroad employment and expect to earn more
than the Annual Earnings Exempt Amount to allow timely adjustment of your annuity. Also report if you
will earn substantially more or less than you earned in the previous year.
When you tell us that you have begun non-railroad employment or changed your earnings from the previous
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year, we apply temporary deductions to your annuity based on the amount you expect to earn.
Later, if your non-railroad earnings are covered by the Federal Insurance Contributions Act (FICA) or the
Self-Employment Contributions Act (SECA), the RRB will receive an annual report of those earnings from
a tape match with the Social Security Administration.
It sometimes takes longer for the RRB to receive information about non-railroad earnings that are not
covered by FICA or SECA. If you receive such earnings, you should report your final earnings for the year
by April 15, of the following year.
Refer to Form G-77a, How Work Affects Your Railroad Retirement Benefits, for the current Annual
Earnings Exempt Amounts for your age group and refer to the following chart:
HOW EARNINGS DEDUCTIONS ARE ASSESSED
Then the
If
For months:
Is deducted from:
amount of:
employees are entitled
$1.00 for every
in the full calendar
employee and spouse
based on age and are
$2.00 which they earn
year,
Tier 1, any employee
under FRA for the full
over their Annual
VDB, or all family
calendar year,
Earnings Exempt
member shares in the
Amount,
calculation of the
Special Guaranty
computation.
employees are entitled
based on age and attain
FRA during the
calendar year,

$1.00 for every
$3.00 which they earn
over their Annual
Earnings Exempt
Amount,

up to the month the
employees attain FRA,

employee and spouse
Tier 1, any employee
VDB, or all family
member shares in the
calculation of the
Special Guaranty
computation.

spouses are under FRA
for the full calendar
year,

$1.00 for every
$2.00 which spouses
earn over their Annual
Earnings Exempt
Amount,

in the full calendar
year,

their spouse Tier 1 or
their shares in the
calculation of the
Special Guaranty
increase.

spouses attain FRA
during the calendar
year,

$1.00 for every
$3.00 which spouses
earn over their Annual
Earnings Exempt
Amount,

up to the month the
spouses attain FRA,

their spouse Tier 1 or
their shares in the
calculation of the
Special Guaranty
increase.

your minor or student
children work,

$1.00 for every
$2.00 which they earn
over their Annual
Earnings Exempt
Amount,

in the full calendar
year,

their shares in the
calculation of the
Special Guaranty
increase.

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Last Pre-Retirement Non-railroad Employment
Your Last Pre-Retirement Non-railroad Employer (LPE) is defined as any non-railroad 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.
The non-railroad employer is always your LPE if you are working in non-railroad employment on your
ABD or, if you have stopped working, you still hold rights to return to service of the non-railroad employer
on your ABD.
The non-railroad employer would be presumed to be your LPE if:
•

You are the employee annuitant, and stopped working for the non-railroad employer within six
months immediately before your employee ABD, whether or not you also had been working for a
railroad employer at the same time, or,

•

You are a spouse annuitant, who may have never worked for a railroad, and stopped working for
the non-railroad employer within the six months immediately before your ABD.

When applicants were working for two or more persons, companies, or institutions within the six months
preceding their ABD, all such employers are presumed to be LPE.
When you applied for your annuity, we asked for the names of your most recent non-railroad employers,
if any. That information established your LPE for RRB records. Any work for your LPE that continues or
is resumed after your annuity beginning date must be reported to the RRB at once. Be sure to provide the
name and address of your employer and your estimated monthly earnings.
If you stop LPE, or you expect a change in your estimated monthly earnings, contact the nearest RRB office
to have your payments adjusted.

LPE Exceptions
Some types of non-railroad employment are not counted as LPE. These types of work do not affect payment
of your Tier 2 component or supplemental annuity. These exceptions are:
•
•
•
•
•
•
•

Military service
Jury duty
Mail handling by contract with the U.S. Postal Service
Volunteer work
Work for which you only receive payment of expenses
Work as member (owner) of a Limited Liability Corporation (LLC)
Self-employment

NOTE 1: If you claim an LPE exception as a member of an LLC, you must submit proof, including your
statement, the name of any license, and copies of articles of organization, the operating agreement, and
contracts with various clients.
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NOTE 2: Work as an LLC employee, hired by the members who own an LLC, is counted as LPE.
NOTE 3: If you begin self-employment that has any connection with railroad employment or LPE (such as
consultant work), report this to the nearest RRB office. We may ask you to complete Form AA-4, SelfEmployment and Substantial Service Questionnaire, which will help the RRB determine whether to
consider your work self-employment or a continuation of railroad service or LPE.

Annuity Deductions for LPE
Earnings reductions for LPE occur at any age, even after attaining Full Retirement Age. There is no Annual
Earnings Exempt Amount for LPE. Even work for minimum pay may be LPE.
Any LPE earnings received by an employee annuitant for service in or after the month the annuity begins,
will reduce the amount of the employee’s Tier 2 component, the employee’s supplemental annuity, if any,
and the spouse’s Tier 2 component. The LPE work deduction is $1.00 for every $2.00 earned, but not more
than 50% of the Tier 2 components and supplemental annuity.
Any LPE earnings received by a spouse annuitant for service in or after the month a spouse annuity begins,
will reduce the amount of the spouse’s Tier 2 component (up to 50%).
A prompt report will allow for a timely adjustment to avoid overpayment of your annuity.

Pension from a Railroad Employer
The supplemental annuity is reduced by the amount of a pension from a railroad employer that is based on
the employer’s contributions. Notify the RRB promptly if you begin receiving a railroad pension or receive
a lump-sum distribution from a railroad pension. Not doing so will cause your supplemental annuity to be
overpaid.

Total and Permanent Disability after Retirement
Contact the RRB if you are receiving an age and service annuity or occupational disability annuity and you
become totally disabled before you reach Full Retirement Age. You may be eligible for early Medicare
coverage and other benefits if you meet requirements for total and permanent disability.

Disability and Medical Recovery
You must report ANY new employment. It is important that your report includes:
•
•
•
•
•

The kind of work you are doing;
How much you expect t earn each month;
The period of time you expect to be working;
How many hours you expect to work; and,
The amount of any disability-related work expenses.

Work and earnings will be evaluated to see if you are able to perform regular work. ANY work after your
annuity begins, regardless of your amount of earnings, may raise questions about medical recovery.
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If you return to work, or your doctor tells you that you are able to work, notify your local RRB office. We
will ask for more information about your condition and possibly request new medical examinations. Failure
to promptly contact the RRB about changes in your disability status could result in large annuity
overpayments with penalties.

Disability Work Deductions
If you are less than Full Retirement Age and you receive a disability-based annuity, the Annual Earnings
Exempt Amount does not apply to your disability Tier 1 component.
Your disability annuity cannot be paid for any month you work and have earnings over the disability
earnings limit (refer to Form AB-31, How Work Affects Your Disability). “Earnings” are defined on page
4 of this booklet. Certain disability-related work expenses are subtracted from your earnings, such as the
costs of special transportation, medicine used to control the impairment that caused the disability, attendant
care, medical devices, and prosthetic devices.
When you tell us that you will have earnings over the disability earnings limit, we apply temporary
deductions to your annuity for the calendar year based on the amount you expect to earn. We will send you
a form after the end of that year to report your actual monthly and total earnings for that year.
•

If your total earnings are less than the disability earnings maximum for that calendar year, any
monthly benefits that we withheld will be paid to you.

•

If your total earnings are greater than the disability earnings maximum during that year, you will
not be entitled to an annuity for some months in that year. How long your annuity is not payable
depends on how much you earn, but the number of months withheld will not exceed the actual
number of months that you worked in that year.

Worker’s Compensation or Other Disability-Based Public Benefits
Your disability annuity Tier 1 component is subject to a reduction if you also receive worker’s compensation
or another public, disability-based, benefit before you reach Full Retirement Age. This reduction
requirement may apply even if you received a lump-sum payment or an amount divided and paid in several
payments. If you receive a public disability or worker’s compensation award, or if the amount you receive
changes, notify the RRB as soon as possible. Delay may cause a large overpayment of your annuity.

Marital Status Change
If your marriage ends by divorce or annulment, notify the RRB to have your records updated (including
any name change) and to assure that any spouse annuity is adjusted or terminated timely. Also report if a
child, included in the Special Guaranty computation, marries.
If a stepchild is included in your Special Guaranty computation, and your marriage to the child’s natural
parent ends by divorce or annulment, notify the RRB. We are required to exclude the stepchild from the
Special Guaranty computation.
If you are receiving a divorced spouse annuity, your entitlement ends the month that you remarry.
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Qualifying Child Status Changes
If your spouse annuity is based on a child in your care, your benefit eligibility ends if certain events occur
before you qualify for an annuity based on your age. If the child attains age 18 or is no longer disabled, or
if the child enters military service, marries, dies, or leaves your care before age 18, your payments must
stop.
Your spouse annuity termination is automatically processed when RRB records show the child is age 18,
but you must report events that could end your spouse annuity eligibility earlier. You must also notify your
local RRB office if you receive an annuity payment after your entitlement ends

Conviction for a Criminal Offense
A prison sentence or confinement due to a conviction for a criminal offense changes the income tax liability
for annuity payments and the reports required by the RRB to the IRS.
If you or your spouse are confined due to a conviction for a criminal offense, report this to the RRB. The
RRB will then determine if any payment changes are required. Also report if you receive a spouse annuity
based on a child in your care or the Special Guaranty computation includes a child and that child is confined
due to a conviction for a criminal offense.
Places of confinement include prisons, jails, hospitals, schools, halfway houses, and other facilities in which
a person is under the control and jurisdiction of a penal system. The period of confinement ends when the
prisoner is paroled or released because the sentence has ended, been suspended, or overturned.

Spouse or Employee Death
Promptly notify the RRB when an employee or spouse dies, to avoid possible overpayment. An annuity is
not payable for the month in which an employee or spouse dies. It is against the law to cash an annuity
check issued to a person who has died. If a payment by check is received after that person’s date of death,
it must be returned to the RRB or to the Treasury Department address shown on the envelope.
It is also against the law to use direct deposit funds received by a financial institution for a person who has
died. If a direct deposit annuity payment is received after that person’s date of death, the financial
institution is required to return it to the Treasury Department at once.
When an employee dies, survivor benefits may be payable.

Change of Address
Even though your payments may be sent by direct deposit, notify both the RRB and the financial institution
that receives your payment as soon as possible, if your home address changes.
We need your home address to mail important information about RRB benefit increases, earnings
allowances, Medicare, and your income tax statements. If you do not report your change of address, the
RRB is not responsible for information you do not receive.

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To report an address change, write the RRB and provide the following information:
•
•
•
•
•
•

Your railroad retirement claim number;
Your name;
Your new address;
Your old address;
The date you will start receiving mail at the new address; and,
If your spouse also receives an annuity from the RRB, a statement that your change of address
applies to both you and your spouse or applies to you alone.

Direct Deposit
An address change report does not change your direct deposit information. If you are changing bank
accounts, or wish your payments to go to a different financial institution, you must tell the RRB your new
account number and the new bank’s routing number. (The routing number appears at the bottom of your
new checks or the bank will give it to you.)
Do not close your old account until you receive the first RRB payment in your new account.

Reminder
A prompt report of any of the events described in this booklet will allow the RRB to provide you with
accurate and timely benefits and service. For your convenience, most of this reporting may be handled
completely by telephone without a trip to an RRB office. If additional action is required on your part, contact
the nearest office of the RRB.
Use the following chart to keep a record of the events that you report to the RRB; the method used to report
the event (i.e., telephone, mail); and the date that you reported the event. When writing to the RRB, we
recommend that you keep a copy of your report.

Event

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Method Used to Report

Date Reported

Nondiscrimination on the Basis of Disability
Under Section 504 of the Rehabilitation Act of 1973 and Railroad Retirement Board (RRB)
regulations, no qualified person may be discriminated against on the basis of disability. RRB
programs and activities must be accessible to all qualified applicants and beneficiaries,
including those with impaired vision or hearing. Disabled persons needing assistance (including
auxiliary aids or program information in accessible formats) should contact the nearest RRB
office. Complaints of alleged discrimination by the RRB on the basis of disability must be
filed within 90 days in writing with the Director of Administration, Railroad Retirement
Board, 844 North Rush Street, Chicago, Illinois, 60611-1275. Questions about individual
rights under this regulation may be directed to the RRB’s Director of Equal Opportunity at the
same address.

Fraud, Waste, and Abuse Hotline
The RRB’s Office of Inspector General established its Hotline as a public service. The Hotline
provides individuals with a means to report or discuss any suspected misconduct relating to the
RRB, its programs or employees.
If you believe a doctor, hospital, or other health care provider is billing Medicare for services not
provided or for unnecessary medical procedures or supplies; someone is illegally receiving RRB
benefits; or you wish to report or discuss any other suspected misconduct relating to the RRB, its
programs or employees, please contact the Office of Inspector General at:
Toll-Free Hotline: 1-800-772-4258
U.S. Mail: RRB-OIG Hotline Officer
844 North Rush Street
Chicago, Illinois 60611-1275
Fax: (312) 751-4342
Email: hotline@oig.rrb.gov
Please review the RRB’s email notice and Internet privacy policy at www.rrb.gov before submitting
information online.
Note: Please do not contact the Office of Inspector General’s Hotline with questions regarding
benefit eligibility requirements, delayed payments or similar problems. These types of matters
should be directed to an RRB office.

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