2011 Customer Service Pamphlet (Form IB-3) - rrb-2025

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The tier I portion of a railroad retirement annuity is calculated in generally the same way as a social security benefit. 90 percent of the first $885 of average indexed monthly earnings, plus. 32 percent of the amount of these earnings over $885 up to $5,336, plus. 15 percent of these earnings in excess of $5,336.
Railroad retirement benefits are based on months of service and earnings credits. Earnings are creditable up to certain annual maximums on the amount of compensation subject to railroad retirement taxes. An AGE AND SERVICE ANNUITY can be paid to: ∎ Employees with 30 or more years of creditable service.
The RRB was created in the 1930s by legislation establishing a retirement benefit program for the nations railroad workers. The railroad industry had pioneered private industrial pension plans, with the first industrial pension plan in North America established by a railroad in 1874.
The Railroad Retirement Board (RRB) works with Social Security to provide retirement and disability benefits for qualified railroad workers and their qualified survivors. If youre already receiving railroad benefits or Social Security, youll be automatically enrolled in Medicare.
A typical multiplier is 2%. So, if you work 30 years, and your final average salary is $75,000, then your pension would be 30 x 2% x $75,000 = $45,000 a year. That $45,000 becomes your guaranteed lifetime income.

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In January 2025, the average regular railroad retirement employee annuity will increase $69 a month to $3,538 and the average of combined annuities for an employee and spouse will increase $97 a month to $5,100. For those aged widow(er)s eligible for an increase, the average annuity will increase $42 a month to $1,966.
If you are looking for information in your own claim file, or are researching someone whose file may have been recently active (claims filed, payments made, etc), you should begin by contacting the Railroad Retirement Board ( or (877) 772-5772).

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