How are railroad retirement spouse annuities computed?
Regular railroad retirement annuities are computed under a two-tier formula. The spouse annuity formula is based on certain percentages of the employee’s tier I and tier II amounts. The tier I portion of an employee’s annuity is based on both railroad retirement credits and any nonrailroad social security credits that the employee also earned. Computed using social security benefit formulas, an employee’s tier I benefit approximates the social security benefit that would be payable if all the employee’s work were performed under the Social Security Act. The tier II portion of the employee’s annuity is based on railroad retirement credits only, and may be compared to the retirement benefits paid over and above social security benefits to workers in other industries. The first tier of a spouse annuity is generally 50 percent of the railroad employee’s tier I amount. The second tier amount is 45 percent of the employee’s tier II amount. 2. How does a railroad retirement spouse annuity com
