How are the railroad retirement annuity cost-of-living increases payable in January 2000 calculated?
Cost-of-living increases are calculated in both the tier I and tier II benefits included in a railroad retirement annuity. Tier I benefits, like social security benefits, will increase by 2.4 percent, which is the percentage of the CPI rise. Tier II benefits will increase by 0.8 percent, which is 32.5 percent of the CPI rise. Vested dual benefit payments and supplemental annuities also paid by the RRB are not adjusted for the CPI rise. If a railroad retirement annuitant also receives a social security benefit, the increased tier I portion is reduced by the increased social security benefit. Tier II cost-of-living increases are not reduced by social security increases. 2. How much will average railroad retirement benefits increase after the cost-of-living adjustment? In January 2000, the average regular railroad retirement employee annuity will increase $25 a month to $1,349 and the average of combined benefits for an employee and spouse will increase $35 a month to $1,955. For aged wid
