What if the buy-out agreement allows the employee to retain job rights and receive monthly payments until retirement age?
The RRB considers the buy-out to be a dismissal allowance. When a monthly dismissal allowance is paid the employee retains job rights, at least until the end of the period covered by the dismissal allowance. If the period covered by the dismissal allowance continues up to the beginning date of the railroad retirement annuity, railroad service months would be credited to those months. These railroad service months would provide at least 12 railroad service months in the 30 months immediately before the annuity beginning date and maintain a regular current connection. They will also increase the number of railroad service months used in the calculation of the railroad retirement annuity. 7. Could the exception provision apply in cases where an employee has 25 years of railroad retirement coverage and a company reorganization results in the employees job being placed under social security coverage? The exception provision has been considered applicable by the RRB in cases where a 25-year
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