How are dual benefits paid to persons entitled to both railroad retirement and social security benefits?
Since 1975, if a railroad retirement annuitant is also awarded a social security benefit, the Social Security Administration determines the amount due, but a combined monthly dual benefit payments should, in most cases, be issued by the Railroad Retirement Board after part or all of the railroad retirement annuity has been reduced for the social security benefit. Why is a railroad retirement annuity reduced when a social security benefit is also payable? The tier I portion of a railroad retirement annuity is based on both railroad retirement and nonrailroad social security credits acquired by an employee and reflects what social security would pay if railroad work were covered by social security. Tier I benefits are, therefore, reduced by the amount of any actual social security benefit paid on the basis of nonrailroad employment, in order to prevent a duplication of benefits based on the same earnings. The tier I dual benefit reduction also applies to the annuity of an employee qualif
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