Railroaders' Nostalgia > RR retirement

I've reached a milestone. 60 years old and still working on the RR. Unfortunately not eligible for retirement since I'm missing the other component 30 years of service.

I've thinking about retiring early and living off my investments until I'm able to retire on reaching 62.

My major worry is RR retirement will increase the minimum retirement age to 65 in the not to distant future.

Do any of you remember back in 1980 when RR retirement was raised to 62 if there was a grandfather clause for those
over 60?

With baby boomers retiring and railroad employment getting smaller l'm worried that retirement age might even reach 67.


Thanks.

highgreen Wrote:
-------------------------------------------------------
> I've reached a milestone. 60 years old and still
> working on the RR. Unfortunately not eligible
> for retirement since I'm missing the other
> component 30 years of service.
>
> I've thinking about retiring early and living off
> my investments until I'm able to retire on
> reaching 62.
>
> My major worry is RR retirement will increase the
> minimum retirement age to 65 in the not to distant
> future.
>
> Do any of you remember back in 1980 when RR
> retirement was raised to 62 if there was a
> grandfather clause for those
> over 60?
>
> With baby boomers retiring and railroad employment
> getting smaller l'm worried that retirement age
> might even reach 67.
>
>
> Thanks.

I don't remember anything about when they changed RR to 62 in 1980 as I only had 2 years under my belt at that time and retirement was a long way off. I do recall thinking that I'd have 40 years in when I reached 62. Thank goodness they lowered the age to 60. I just retired the first of this month with 39 years in. I don't think I could have gone another 6 months until I'm 62 with the current management environment on the UP. Seems to me they are head hunting for the most senior employees with excessive testing and arbitrarily pulling older employees out of service on totally inane health issues.

With the current political agendas, I would seriously think about retiring the minute you have your 30 years in before they raise the age minimum or even roll RR into SSA. Just remember, if you retire early and want to collect RR, you'll take a big hit financially. Just my 2 cents worth.-BMT

highgreen Wrote:
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> Do any of you remember back in 1980 when RR
> retirement was raised to 62 if there was a
> grandfather clause for those
> over 60?

I certainly do remember when the retirement age was raised in 1982-83. It was raised in response to the large number of railroaders who were unemployed and drawing unemployment benefits (including me) due to the massive economic recession occurring at the time. I don't remember any grandfather clause, but there was probably time for a "race for the door".

While the retirement age was lowered to 60 again in 2001 (vesting in 5 years instead of 10) the current vice president voted against lowering it. So, you are certainly correct to worry about that age being raised again...the "potential" is there. The most imminent threat is the proposal by the current administration to eliminate long distance Amtrak routes. 9% of working US railroaders work for Amtrak. What would happen to Railroad Retirement if those folks started drawing out instead of paying in?

Reduction in crew sizes or positions by a Presidential Emergency Board settlement of the current national railroad contract is also a threat. What would happen to Railroad Retirement if large numbers of folks who currently pay in start drawing out?

Automated train operation is also looming as a threat in the future as well. Railroad Retirement is separate from Social Security and the last actuary report said it was solvent thru 2038. But plenty of dark clouds loom on the horizon.

It's your life...if you don't have anything else to do besides work for the railroad, no point in retiring. But most of us have lots of things that we would like to do that having a full time job interferes with. Why keep working for a few extra bucks and miss out on those things, maybe forever?

I'm planning on retiring next year...when I reach age 60. BSB



Edited 2 time(s). Last edit at 06/15/17 17:04 by BigSkyBlue.

How many years did you pay into Railroad Retirement ? It used to be 10 years of service and you were vested but that has been lowered to 5 years.

When I took mine, they rolled all the money I had paid into SSA, not many, into my RRT. Then a year later, they rolled all the SSA my wife had made and rolled it into RRT. So now I get a check and she gets a check (Direct Deposit).

Check and see how many years you have vested.



Nudge

I would go and personally talk to someone at RRB, tell them what you want to do, and see for sure that you would be considered for full retirement account leaving the rr industry for a couple of years and then apply for RRT. I was told a rr'er had to be compensated pay right up to when a person leaves the industry otherwise it is considered a break in railroad service, but I would talk to someone in person and get the facts from the board, not scuttlebutt from others. I got my 480 month when I turned 60 and left. Good luck, KCRW287

I wouldn't worry about the early retirement age being increased. Tier 1 more or less mirrors Social Security. You will take the same early retirement reduction at age 62 on RRT as you would SS. They won't increase early retirement age on RRT without a commensurate increase on SS early retirement. Not gonna happen unless all economic black swan hell breaks loose.

Sphogger

Agree. The rrrb is always very helpful.

KCRW287 Wrote:
-------------------------------------------------------
> I would go and personally talk to someone at RRB,
> tell them what you want to do, and see for sure
> that you would be considered for full retirement
> account leaving the rr industry for a couple of
> years and then apply for RRT. I was told a rr'er
> had to be compensated pay right up to when a
> person leaves the industry otherwise it is
> considered a break in railroad service, but I
> would talk to someone in person and get the facts
> from the board, not scuttlebutt from others. I got
> my 480 month when I turned 60 and left. Good luck,
> KCRW287


True you have to be in good standing with the RR.. Call the toll free USRRB phone line or you can set up an account on line on their website. You will need your birth certificate, any divorce papers. If you logon or speak to a representative they will tell you what is required. I understand that the best way to retire is start 90 days prior to your leaving date. Be sure not to work one day into the next month because you will not be compensated for that month. Example retire on or near the last day of the month, i.e. August 30th.. Therefore you will receive your first pension check starting in September.



Edited 1 time(s). Last edit at 06/20/17 13:13 by SanJoaquinEngr.

highgreen Wrote:
-------------------------------------------------------
> I've reached a milestone. 60 years old and still
> working on the RR. Unfortunately not eligible
> for retirement since I'm missing the other
> component 30 years of service.

How many years do you have?

>
> I've thinking about retiring early and living off
> my investments until I'm able to retire on
> reaching 62.

If you don't like your job and can do what you say
go for it!

>
> My major worry is RR retirement will increase the
> minimum retirement age to 65 in the not to distant
> future.

As stated in the above paragraph,you do not seem
to worry about anything.
>

> Do any of you remember back in 1980 when RR
> retirement was raised to 62 if there was a
> grandfather clause for those
> over 60?
>

No,I don't remember.Mainly because I have been retired
nearly THIRTY YEARS.Enough for another person to retire
with.I was caught between that and the thirty years.I
had 32,but no where 60,or 62 of age.


Uncle Joe
Seffner,Fl.
retired CSX car foreman

> True you have to be in good standing with the RR..

You have to have a connection to an "RRB railroad" (one which pays into the RRB -- there are some, like ACE, which don't). Being laid off and unable to work doesn't necessarily break the connection. If you're working outside the RR industry, and there are extenuating circumstances, the connection can be "deemed". It gets complex.

>Call the toll free USRRB phone line or you can set up an account on line on their website.

Call the RRB for an appointment because you can get verbal explanations for the incomprehensible prose in the RRB's brochures and hand-outs, but be advised there are good reps who will fill you in and bad ones who will shine you on.

> I understand that the best way to retire is start 90 days prior to your leaving date. Be sure not to work one day into the net month because you will not be compensated for that month.

The best way to retire is to do so, only first be sure you've met all the requisites.

>Example retire on or near the last day of the month, i.e. August 30th.. Therefore you will receive your first pension check starting in September.

If you're this tied to cashflow, then retiring might not be a good idea (or build up a nest egg of sorts to tie you over).

Don't retire on the very first day of a month or the very end of a month. Work enough days into the month when you plane to retire to qualify for your employment-based medical coverage through the end of the following month. This is important because if you retire before being medicare-eligible, a medical plan becomes problematic. Check your employment-based employment plan as specified under your union agreement for early retirement benefits.

When you retire, any SSI contributions you made in non-rr employment are sent to the RRB, where they affect your monthly pension (in a positive manner).

The RRB will put you on medicare automatically on the first of the month of your 65th b-day, and you will have a short window of opportunity for signing up for Part B without incurring a penalty (a monthly price hike which is permanent). In addition, you will have to keep a diligent eye on your medical providers to insure they send their claims to "railroad medicare", because regular (SSI) medicare, having no record of you, will reject them. There is no dental nor vision coverage under medicare.

Edited to add:

If you have a personal business, convert it to an LLC before retiring. Owning things like S-coprs can cause permanent loss of your RRB pension.



Edited 1 time(s). Last edit at 06/16/17 12:19 by EtoinShrdlu.

You can also look through hundreds of Q&A's at Robert Kaufman's Benefits Link column:

https://benefitslink.com/cgi-bin/qa.cgi?n=1&db=qa_railroad_retirement

SanJoaquinEngr Wrote:
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Example retire on or
> near the last day of the month, i.e. August 30th..
> Therefore you will receive your first pension
> check starting in September.

Not exactly. If you retire on August 30, you won't get your first Railroad Retirement check until October 1st. I just retired June 1st and won't get my first check until July 1st, they run a month behind.
As I was in management at UP for 6 years, I have a pension from them. It actually paid on June first, my first day of retirement. What was funny was as I received my first from UP on June first, CMS (Crew Management System) didn't put me in retirement status until June 6th.-BMT

As a next step in your deliberations, you absolutely should talk with your nearest RRB office and have them explain what you are potentially losing by retiring early. They can give you a very close estimation of your monthly annuity. I found the folks at the Oakland to be extremely helpful when I was forced to apply for a medical retirement before age 60. They led me by the nose through every step. Be aware that going this route is a two step process, involving both RRB and Social Security, that is laden with land mines. Should you be considering applying for a medical disability, please PM me.

Hopefully you fully understand exactly what constitutes "breaking the chain" of railroad employment. As anxious to be helpful as RRB folks were to help me with my retirement, they will be relentless in their attempts to take away your retirement if they suspect you have taken another job or have engaged in self-employment before age 62.

You need to do is take another long, cold look at your finances, no matter how thorough you think that you have been. It is a likelihood that you will dig into investments simply because it is hard to budget for unexpected contingencies. You might consider seeking professional advice. Even if you can cover your expenses in the near term, that leaves less money for the long term.

In this regard, the potential future cost of medical insurance may be your chief worry; may possibly a deal breaker. Nobody knows what is going to happen there. Regardless of how healthy you are now, you absolutely need DECENT insurance due to your age. Can you afford it, particularly if the premiums rise dramatically? It's a long way to 65 and Medicare. The question I can't answer is if people retiring before 62 with less than thirty years of service qualify for bridge insurance once they reach age 62. You certainly need to get that straight.

Finally, are you married? That opens up a whole series of further deliberations.

Ultimately, you have a lot to consider here even without trying to figure out the absolutely unknowable - how Congress is going to treat RR retirees in the near future. Our political climate is so unstable right now, there simply is no predicting.

Good luck!

EO

>I found the folks at the Oakland to be extremely helpful when I was forced to apply for a medical retirement before age 60.

I can think of one particular person who is outstanding in respect at this office.

>They led me by the nose through every step. Be aware that going this route is a two step process, involving both RRB and Social Security, that is laden with land mines. Should you be considering applying for a medical disability, please PM me.

Was the process two steps because of the medical issue? When I retired, I had absolutely no communications with SSI whatsoever.

I am pulling the pin on August 5th. RRB says after all the processing is done I will receive my first payment between Sept. 15 to 18th pro rated for August. Then about the first of the month there after. 42 years 5 months.

Posted from iPhone

When I retired it was on the 12th of June, 2015. Got my June retirement check, prorated for June, on July 1st and regular as clockwork they come on the 1st every month. The RRRB is pretty good about getting things in motion provided you've set everything up ahead of time.



Edited 1 time(s). Last edit at 06/17/17 22:16 by Railbaron.

Even better! But as previous posters said contact the RRB and get the facts. Can't tell you how many misleading facts I have received from other rails.

One thing for any "rail" is that regardless of when you plan to retire contact the Railroad Retirement Board well ahead of time - you do NOT need to have a retirement date in mind. Before retiring you have to provide a birth certificate to prove your age, your wife's birth certificate to prove her age, and your marriage license and divorce decree (if divorced) to prove marital status. Your local RRRB office can fill you in on any other needs. In any case it will dramatically speed things up if you have all this in their files BEFORE you retire. In my case I did it before I turned 60 even though my "plan" was to work until I was a little past 62 so my wife would be 60 when I retired. As I told the RRRB agent I would be on the "month to month" plan once I turned 60 - anything that pissed me off and I'd retire on the spot, which is kind of what I did.

The best part is that once you decide to actually retire all you need to do is call them, no need to go in (at least in the Portland office), and simply advise them of your last day of work. They will do everything over the phone although they will mail you a form to be filled out and mailed back - all very simple.

BTW, if you are married and your wife turns 60 let the RRRB know that also. Even if she is still working she may qualify for a portion of her Railroad Retirement. In my case my wife is still working for insurance but even with that she still gets over $500 a month Railroad Retirement (reduced from her full amount based on her earnings).