Railroad Retirement Board
Benefit
Rate Increase for Railroad Unemployment and Sickness Benefits
October
2007
Railroad
Retirement Benefit Increases
Most
railroad retirement annuities, like social security benefits, are scheduled to
increase in January 2008 on the basis of the rise in the Consumer Price Index
(CPI) during the 12 months preceding October 2007.
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 2.3 percent, which is
the percentage of the CPI rise. Tier II
benefits will increase by 0.7 percent, which is 32.5 percent of the CPI rise.. The vested dual
benefit payments and supplemental annuities also paid by the Railroad
Retirement Board are not adjusted for the CPI rise.
In
January 2008, the average regular railroad retirement employee annuity will
increase $35 a month to $1,959 and the average of combined benefits for an
employee and spouse will increase $47 a month to $2,748. For those aged widow(er)s eligible for an increase, the average annuity will
increase $21 a month to $1,039. However,
widow(er)s whose annuities are being paid under the
Railroad Retirement and Survivors’ Improvement Act of 2001 will not receive
annual cost-of-living adjustments until their annuity amount is exceeded by the
amount that would have been paid under prior law, counting all interim
cost-of-living increases otherwise payable.
Almost 30 percent of the widow(er)s on the Board’s rolls are being paid under the 2001 law.
If a railroad retirement or survivor annuitant also receives a social security
or other government benefit, such as a public service pension or another
railroad retirement annuity, the increased tier I benefit is reduced by the
increased government benefit. However,
tier II cost-of-living increases are not reduced by increases in other
government benefits. If a widow(er) whose annuity is being paid under the 2001 law is also
entitled to an increased government benefit, her or his railroad retirement
survivor annuity may decrease. However,
the total amount of the combined railroad retirement widow(er)’s
annuity and other government benefits will not be less than the total payable
before the cost-of-living increase and before increased Medicare premium
deductions.
Claimants with questions about unemployment or sickness benefits should contact
the nearest RRB office. Most RRB offices
are open to the public from
Claimants can find the address and phone number of the RRB office serving their
area, and also get information about their claims and benefit payments, by
calling the toll-free RRB Help Line at 1-800-808-0772. The RRB Help Line is an automated telephone
service available 24 hours a day, 7 days a week. Field office locations can also be found by
visiting www.rrb.gov.
Public Affairs 312-751-4777
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