Railroad Retirement Board
Benefit
Rate Increase for Railroad Unemployment and Sickness Benefits
October
2008
Railroad
Retirement Benefit Increases
Most
railroad retirement annuities, like social security benefits, are scheduled to
increase in January 2009 on the basis of the rise in the Consumer Price Index
(CPI) during the 12 months preceding October 2008.
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 5.8 percent, which is
the percentage of the CPI rise. Tier II
benefits will increase by 1.9 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 2009, the average regular railroad retirement employee annuity will
increase $92 a month to $2,101 and the average of combined benefits for an
employee and spouse will increase $126 a month to $2,956. For those aged widow(er)s eligible for an increase,
the average annuity will increase $55 a month to $1,115. 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. About 31 percent o f 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 any increase in Medicare premium deductions.
For
most beneficiaries covered by Medicare, the standard Part B premium generally
deducted from monthly benefits will remain at the 2008 rate of $96.40 in 2009.
In
late December the Railroad Retirement Board will mail notices to all annuitants
providing a breakdown of the annuity rates payable to them in January 2009.
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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