Railroad Retirement Board
Retiree Earnings Limits to Rise -
2008
November 2007
Those railroad retirement
annuitants subject to earnings restrictions can earn more in 2008 without
having their benefits reduced, as a result of increases in earnings limits
indexed to average national wage increases.
Like social security
benefits, some railroad retirement benefit payments are subject to deductions
if an annuitant’s earnings exceed certain exempt amounts. These earnings
restrictions apply to those who have not attained full social security
retirement age. For employee and spouse annuitants, full retirement age
ranges from age 65 for those born before 1938 to age 67 for those born in 1960
or later. For survivor annuitants, full retirement age ranges from age 65
for those born before 1940 to age 67 for those born in 1962 or later.
For those under full
retirement age throughout 2008, the exempt earnings amount rises to $13,560
from $12,960 in 2007. For beneficiaries attaining full retirement age in
2008, the exempt earnings amount, for the months before the month full
retirement age is attained, rises to $36,120 in 2008 from $34,440 in 2007.
For those under full
retirement age, the earnings deduction is $1 in benefits for every $2 of
earnings over the exempt amount. For those attaining full retirement age
in 2008, the deduction is $1 for every $3 of earnings over the exempt amount in
the months before the month full retirement age is attained.
When applicable, these
earnings deductions are assessed on the tier I and vested dual benefit portions
of railroad retirement employee and spouse annuities, and the tier I, tier II,
and vested dual benefit portions of survivor benefits.
All earnings received for
services rendered, plus any net earnings from self-employment, are considered
when assessing deductions for earnings. Interest, dividends, certain
rental income, or income from stocks, bonds, or other investments are not
considered earnings for this purpose.
Retired employees and
spouses, regardless of age, who work for their last pre-retirement nonrailroad employer are also subject to an additional
earnings deduction, in their tier II and supplemental benefits, of $1 for every
$2 in earnings up to a maximum reduction of 50 percent. This earnings
restriction does not change from year to year and does not allow for an exempt
amount.
A spouse benefit is
subject to reduction not only for the spouse’s earnings, but also for the
earnings of the employee, regardless of whether the earnings are from service
for the last pre-retirement nonrailroad employer or
other post-retirement employment.
Special work restrictions
continue to be applicable to disability annuitants in 2008.
Regardless of age and/or
earnings, no railroad retirement annuity is payable for any month in which an
annuitant (retired employee, spouse or survivor) works for a railroad employer
or railroad union.
Public Affairs 312-751-4777
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