How are buy-out payments treated under the Railroad Retirement and Railroad Unemployment Insurance Acts?
Payments that result from abolishment of an employee’s job are creditable as compensation under the Railroad Retirement and Railroad Unemployment Insurance Acts. While the actual names of these employer payments may vary, the treatment given them by the Board will depend upon whether the employee relinquished or retained his or her job rights. If the employee relinquishes job rights to obtain the compensation, the Board considers the payment a separation allowance. While all compensation subject to tier I payroll taxes is considered in the computation of a railroad retirement annuity, no additional service months can be credited after the month in which rights are relinquished. The Board considers the buy-out payment a dismissal allowance, even though the employer might designate the payment a separation allowance, if the employee retains job rights and receives monthly payments credited to the months for which they are allocated under the dismissal allowance agreement. This is true ev
Related Questions
- Do pensions or retirement payments, other than social security benefits affect my Unemployment Insurance eligibility and benefits?
- How are buy-out payments treated under the Railroad Retirement and Railroad Unemployment Insurance Acts?
- Do pensions, retirement payments or social security benefits affect my Unemployment Insurance benefits?
