Railroad Retirement Board:
Retirement, Survivor, Disability,
Unemployment, and Sickness Benefits
Updated March 8, 2023
Congressional Research Service
https://crsreports.congress.gov
RS22350

Railroad Retirement, Survivor, Disability, Unemployment, and Sickness Benefits

Summary
The Railroad Retirement Board (RRB), an independent federal agency, administers retirement,
survivor, disability, unemployment, and sickness insurance for railroad workers and their
families. During FY2021, the RRB paid $13.2 billion in retirement, disability, and survivor
benefits to approximately 519,000 beneficiaries. Of those benefit payments, 62.7% was paid to
retired workers, 5.7% to disabled workers, 14.8% to spouses, and 16.3% to survivors. In the same
fiscal year, RRB paid an additional $270.9 million in unemployment and sickness benefits to
approximately 41,000 claimants.
The Railroad Retirement Act (RRA) authorizes retirement, disability, and survivor benefits for
railroad workers and their families. RRA is financed primarily by payroll taxes, financial
interchanges from Social Security, and transfers from the National Railroad Retirement
Investment Trust (NRRIT). Railroad retirement payroll taxes have two tiers: the Tier I tax is
essentially the same as the Social Security payroll tax and the Tier II tax is set each year based on
the railroad retirement system’s asset balances, benefit payments, and administrative costs. In
FY2021, the gross RRA funding was about $13.8 billion.
Railroad retirement annuities are also divided into two tiers. Tier I annuities are designed to be
nearly equivalent to Social Security benefits and are based on both railroad retirement and Social
Security-covered employment. However, Tier I annuities are more generous than Social Security
benefits in certain situations. For example, at the age of 60, railroad workers with at least 30 years
of covered railroad work may receive unreduced retirement annuities. Tier II annuities are similar
to private pensions and based solely on covered railroad service. Tier II annuities are paid in
addition to Tier I annuities.
Railroad disability annuities may be payable to totally disabled railroad workers who are
permanently disabled from all work and occupational disabled workers who are found to be
permanently disabled from their regular railroad occupations. Eligible spouses and survivors of
railroad workers may receive a certain portion of Tier I and Tier II benefits, but divorced spouses
and surviving divorced spouses are eligible for only a certain portion of Tier I benefits.
The Railroad Unemployment Insurance Act (RUIA) authorizes unemployment and sickness
benefits for railroad workers. RUIA is financed solely by railroad employers, whose contributions
are based on the taxable earnings of their employees. Eligibility for railroad unemployment and
sickness benefits is based on recent railroad service and earnings. The maximum daily
unemployment and sickness benefit payable in the benefit year that began July 1, 2022, is $85,
and the maximum benefit for a biweekly claim is $850. Normal benefits are paid for up to 26
weeks in a benefit year. Employees with at least 10 years of covered railroad service may qualify
for extended unemployment or sickness benefits for 13 weeks after they have exhausted normal
benefits.
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Introduction
The Railroad Retirement Board (RRB),1 an independent federal agency, administers retirement,
survivor, disability, unemployment, and sickness insurance for railroad workers and their families
under the Railroad Retirement Act (RRA) and the Railroad Unemployment Insurance Act
(RUIA).2 These acts cover workers who are employed by railroads engaged in interstate
commerce and related subsidiaries, railroad associations, and railroad labor organizations.
Lifelong railroad workers receive railroad retirement benefits instead of Social Security benefits;
railroad workers with non-railroad experience receive benefits either from railroad retirement or
Social Security, depending on the length of their railroad service.
The number of railroad workers has been declining since the 1950s, although the rate of decline
has been irregular and has seen relative increases in railroad employment between 2010 and
2015. Recently, the monthly average number of employed railroad workers declined from
253,000 in April 2015, the highest level since November 1999, to 194,000 in December 2022.3
During FY2021, the RRB paid nearly $13.2 billion in retirement, disability, and survivor benefits
to approximately 519,000 beneficiaries.4 The total number of RRA beneficiaries has been
declining since FY2001, and the trend continued in FY2022.5 Approximately $270.9 million in
unemployment and sickness benefits were paid to approximately 41,000 claimants in FY2021.6
The number of unemployment and sickness beneficiaries generally stayed relatively stable over
the long run. However, the number of unemployed insurance beneficiaries usually increased
significantly during and after economic recessions.7
This report explains the programs under RRA and RUIA, including how each program is
financed, the eligibility rules, and the types of benefits available to railroad workers and family
members. It also discusses how railroad retirement relates to the Social Security system. For a
quick overview of this topic, see CRS In Focus IF10481, Railroad Retirement Board: Retirement,
Survivor, Disability, Unemployment, and Sickness Benefits.

1 The Railroad Retirement Board (RRB) consists of three members appointed by the President with the advice and
consent of the Senate to staggered five-year terms. One member is appointed on the recommendation of the railroad
industry, one on the recommendation of railroad labor, and the chair is appointed to represent the public.
2 The RRB also administers aspects of the Medicare program and has administrative responsibilities under the Social
Security Act and the Internal Revenue Code.
3 RRB, Average Railroad Employment (In Thousands) January 2021-December 2022, https://www.rrb.gov/sites/
default/files/2023-01/avgemp%20.pdf.
4 Retirement, disability, and survivor benefits include age, disability, and supplemental annuities paid to employees, as
well as annuities paid to spouses, divorced spouses, and survivors. RRB, 2022 Annual Report, pp. 1-2,
https://www.rrb.gov/sites/default/files/2022-10/2022_Annual_Report.pdf.
5 RRB, Bureau of the Actuary, Benefits and Beneficiaries, January 2001 to December 2022, Table 1.
6 In FY2021, gross unemployment and sickness benefits totaled about $295.6 million, including an additional $110.0
million in benefits authorized under coronavirus relief legislation. Net benefits to unemployment and sickness claims
totaled approximately $270.9 million after adjustment for recoveries of benefit payments, including injury settlements,
some of which were made in prior years. RRB, 2022 Annual Report, p. 2.
7 For example, the number of railroad unemployed insurance beneficiaries increased significantly during and after the
Great Recession from 2007 to 2009, as well as the COVID-19-related recession from February to April 2020. For more
information, see Figure 3 in this report. Also see National Bureau of Economic Research (NBER), US Business Cycle
Expansions and Contractions, https://www.nber.org/cycles.html; RRB, Bureau of the Actuary, Benefits and
Beneficiaries, January 2002 to December 2022, Table 2; and RRB, Selected National and Rational Data,
https://www.rrb.gov/sites/default/files/2022-12/selectdt_0.pdf.
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Railroad Retirement, Survivor, Disability, Unemployment, and Sickness Benefits

Railroad Retirement, Survivor, and
Disability Benefits
The RRA authorizes retirement, survivor, and disability benefits for railroad workers and their
families.8 In September 2022, there were a total of 486,300 RRA retirement, survivor, and
disability beneficiaries, decreasing from 672,400 in 2001. This 28% decline in the number of
beneficiaries results in part from the decline in railroad employment in the past five decades.9 The
average monthly benefit for each beneficiary was about $2,315 in September 2022, which
increased from $1,043 in January 2001, reflecting the growth in average wages and prices (see
Figure 1).
Figure 1. Number of RRA Beneficiaries and Average Monthly Benefits, 2001-2022

Source: Railroad Retirement Board, Bureau of the Actuary, Benefits and Beneficiaries, January 2001 to
September 2022, Table 1. Data on the number of beneficiaries are for December of each calendar year, except
for 2001 (data are for January) and 2022 (data are for September).
Notes: The number of beneficiaries includes those who are in current-payment status. Average monthly benefits
are estimated based upon the total amount of benefit payments divided by the number of beneficiaries in each
month. Average monthly benefits are in nominal dol ars.
Financing
The railroad retirement, disability, and survivor program is mainly financed by payroll taxes,
financial interchanges from Social Security, and transfers from the National Railroad Retirement
Investment Trust (NRRIT) (see Figure 2), which accounted for 89.1% of the $13.8 billion gross
funding of the RRA program during FY2021.10 The remaining 10.9% was financed by federal

8 45 U.S.C. §§231 et seq.
9 The railroads employed 617,000 workers in 1970, declined to 194,000 in December 2022. See https://www.rrb.gov/
sites/default/files/2023-01/avgemp%20.pdf.
10 Gross RRA funding does not include funding sources offset by reductions in NRRIT assets, salaries and expenses for
the RRB Office of the Inspector General, and reductions in contingency liability and unexpended appropriations.
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income taxes levied on railroad retirement benefits,11 interest on investment and other revenue,
and general appropriations to pay the costs of phasing out vested dual benefits.
Figure 2. Financial Sources for Railroad Retirement, Disability and Survivor
Program, FY2021
(Dollar amounts are in millions)

Source: Railroad Retirement Board, 2022 Annual Report, p. 8, https://www.rrb.gov/sites/default/files/2022-10/
2022_Annual_Report.pdf.
Notes: Gross funding was $13.8 bil ion in FY2021. Gross RRA funding does not include funding sources offset
by reductions in National Railroad Retirement Investment Trust (NRRIT) assets, salaries and expenses for the
RRB Office of the Inspector General, and reductions in contingency liability and unexpended appropriations.
Components may not add to total due to rounding.
Payroll taxes, which provided 38.2% of gross RRA funding in FY2021, are the largest funding
source for railroad retirement, survivor, and disability benefits. Railroad retirement payroll taxes
are divided into two tiers—Tier I and Tier II taxes. The Tier I tax is the same as the Social
Security payroll tax: railroad employers and employees each pay 6.2% on earnings up to
$160,200 in 2023.12 The Tier II tax is set each year based on the railroad retirement system’s asset
balances, benefit payments, and administrative costs.13 In 2023, the Tier II tax is 13.1% for

11 Regular railroad retirement annuities consisting of Tier I, Tier II, and vested dual benefit components have been
subject to U.S. federal income tax since 1984. Supplemental annuities have been subject to federal income tax since
1966. The portion of the Tier I component of railroad retirement annuity that is equivalent to Social Security benefits is
treated the same as a Social Security benefit for federal income tax purpose. The non-Social Security equivalent benefit
of the Tier I benefit, Tier II benefits, vested dual benefits, and supplemental annuity payments are treated like
contributory pensions for federal income tax purposes. Only the amount of the contributory pension that exceeds the
amount of contributions made by the wage earner is taxable. Railroad retirement annuities are not taxable by states in
accordance with Section 14 of the Railroad Retirement Act (45 U.S.C. §231m). For more information, see “Tax
Withholding and Railroad Retirement Payments,” https://www.rrb.gov/Benefits/IncomeTax/TXB-25.
12 P.L. 111-312.
13 Under the Railroad Retirement and Survivors’ Improvement Act of 2001 (P.L. 107-90), Tier II taxes on both
employers and employees are automatically adjusted according to the average account benefits ratio. The average
account benefits ratio (ABR) is the average of the 10 most recent annual ABRs. The ABR is the ratio of the combined
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employers and 4.9% for employees on earnings up to $118,800. Tier II taxes are used to finance
Tier II benefits, the portion of Tier I benefits in excess of Social Security retirement benefits (such
as unreduced early retirement benefits for railroad employees with at least 30 years of railroad
service), and supplemental annuities.14
Tier I payroll taxes are deposited in the Social Security Equivalent Benefit Account (SSEBA),
which pays the Social Security level of benefits and administrative expenses allocable to those
benefits. The SSEBA also receives or pays the financial interchange transfers between the
railroad retirement and Social Security systems. The financial interchange with Social Security
provided 30.3% of gross RRA funding in FY2021. The purpose of the financial interchange is to
place the Social Security trust funds in the same position they would have been in, if railroad
employment had been covered under Social Security since that program’s inception.15
Tier II tax revenues that are not needed to pay current benefits or associated administrative costs
are held in the National Railroad Retirement Investment Trust (NRRIT), which is invested in both
government securities and private equities.16 NRRIT transfers provide another revenue source for
railroad benefits, and they were 20.6% of gross RRA funding in FY2021. Prior to the Railroad
Retirement and Survivors’ Improvement Act of 2001 (P.L. 107-90), surplus railroad retirement
assets could only be invested in U.S. government securities—just as the Social Security trust
funds must be invested in securities issued or guaranteed by the U.S. government. The 2001 act
established the NRRIT to manage and invest the assets in the Railroad Retirement Account in the
same way that the assets of private-sector and most state and local government pension plans are
invested. The remainder of the railroad retirement system’s assets, such as assets in SSEBA,
continues to be invested solely in U.S. government-issued or -granted securities.
The combined fair market value of Tier II taxes and NRRIT assets is designed to maintain four to
six years’ worth of RRB benefits and administrative expenses. To maintain this balance, the
Railroad Retirement Tier II tax rates automatically adjust as needed. This tax adjustment does not
require congressional action, according to Section 204 of the 2001 act.
Eligibility and Types of Benefits
To be insured for railroad benefits, a worker must generally have at least 10 years of covered
railroad work or five years performed after 1995 and “insured status” under Social Security rules
(generally 40 earnings credits)17 based on combined railroad retirement and Social Security-

fair market value of Railroad Retirement Account (Tier II tax revenues) and NRRIT assets as of the close of the fiscal
year to the total RRB benefits and administrative expenses paid from the Railroad Retirement Account and the NRRIT
in that fiscal year. A higher average ABR will result in a lower Tier II tax rate and consequently lower future tax
income, whereas a lower average ABR will result in higher Tier II tax rates and income. For more information, see
CRS Report RS22782, Railroad Retirement Board: Trust Fund Investment Practices.
14 For information about supplemental annuities, see “Other Retired Worker Benefits: Supplemental Annuities and
Vested Dual Benefits.”
15 The railroad retirement system and the Social Security system have been coordinated financially since 1951 (P.L. 82-
234). The financial interchange involves computing the amount of Social Security taxes that would have been collected
on railroad employment, and computing the amount of additional benefits that Social Security would have paid to
railroad retirement beneficiaries during the same fiscal year. When benefit reimbursements exceed payroll taxes, the
difference, with an allowance for interest and administrative expenses, is transferred from the Social Security trust
funds to the Social Security Equivalent Benefits Account. If taxes exceed benefit reimbursements (this has not
happened since 1951), a transfer would be made in favor of the Social Security trust funds.
16 For additional information on the NRRIT, see CRS Report RS22782, Railroad Retirement Board: Trust Fund
Investment Practices.
17 A worker may earn up to four earnings credits per calendar year. In 2023, a worker earns one credit for each $1,640
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covered earnings. An insured railroad worker’s family may be entitled to receive railroad
retirement benefits. If a worker does not qualify for railroad retirement benefits, his or her
railroad work counts toward Social Security benefits. Of the total $13.2 billion benefit payments
during FY2021, 62.7% (or $8.3 billion) were paid in retirement annuities to retired workers, 5.7%
(or $0.8 billion) in disability annuities, 14.8% (or $1.9 billion) in spouse annuities, and 16.3% (or
$2.1 billion) in survivor annuities.18
Tier I Retirement Annuities
Tier I annuities are designed to be nearly equivalent to Social Security Old Age, Survivors, and
Disability Insurance benefits. Tier I annuities are calculated using the Social Security benefit
formula and are based on both railroad retirement and Social Security-covered employment.19
However, Tier I annuities are more generous than Social Security benefits in certain situations.
For example, at the age of 60, railroad workers with at least 30 years of covered railroad work
may receive unreduced retirement annuities.20 At the full retirement age (FRA), which is
gradually increasing from 65 to 67 for Social Security and railroad retirement beneficiaries,
insured workers with fewer than 30 years of service may receive full retirement annuities.21
Alternatively, workers with fewer than 30 years of service may, starting at the age of 62, receive
annuities that have been reduced actuarially for the additional years the worker is expected to
spend in retirement. Tier I benefit reductions for early retirement are similar to those in the Social
Security system. As the FRA rises, so will the reduction for early retirement.22 If a railroad
employee delays retirement past FRA, Tier I annuities are increased by a certain percentage for
each month up until the age of 70, which is identical to the benefit increase provided by Delayed
Retirement Credits under the Social Security system.23
In general, Social Security benefits are subtracted from Tier I annuities, because work covered by
Social Security is counted toward Tier I annuities. Beneficiaries insured by both systems receive a
single check from the RRB. Railroad retirement annuities may also be reduced for certain
pensions earned through federal, state, and local government work that is not covered by Social
Security.24 For early retirees who continue to work for a non-railroad employer while receiving
the retirement benefit during the year prior to FRA, Tier I benefits are reduced by $1 for every $2
earned above an exempt amount ($21,240 in 2023).25 After Tier I benefits are first paid, they

of covered earnings, up to a maximum of four credits for covered earnings of $6,560 or more. Earnings credits are also
called quarters of coverage. This amount increases each year to account for wage growth. For additional information,
see CRS Report R46658, Social Security: Benefit Calculation.
18 Less than 1% of the total railroad retirement, disability, and survivor benefits were paid for supplemental annuities
and lump-sum death benefits. See RRB, 2022 Annual Report, p. 15.
19 For additional information on the Social Security benefit formula, see CRS Report R46658, Social Security: Benefit
Calculation.
20 Early retirement reductions are applied in the Tier I annuity of 30-year employees who first became eligible for the
annuity on July 1, 1984, or later and retired at the age of 60 or 61 before 2002.
21 Full retirement age (FRA) is rising from 65 for those born before 1938 to 67 for those born after 1959. For additional
information on the FRA, see CRS Report R44670, The Social Security Retirement Age.
22 The reduction at the age of 62, Social Security’s earliest eligibility age, is rising from 20% to 30% as the FRA rises
from age 65 to age 67.
23 For additional information on the Social Security benefit formula, see CRS Report R43542, How Social Security
Benefits Are Computed: In Brief.
24 For additional information, see CRS In Focus IF10203, Social Security: The Windfall Elimination Provision (WEP)
and the Government Pension Offset (GPO).
25 If the employee or spouse has a Tier I reduction for Social Security benefits, the Tier I annuity is not reduced for
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increase annually with a cost-of-living adjustment (COLA) in the same manner as Social Security
benefits.26
Retirement annuities are not payable to workers who continue to work in a covered railroad job or
who return to railroad work after retirement.
Tier II Retirement Annuities
Tier II retirement annuities are paid in addition to Tier I annuities and any private pension and
retirement saving plans offered by railroad employers. They are similar to private pensions and
based solely on covered railroad service. Tier II annuities for current retirees are equal to seven-
tenths of 1% of the employee’s average monthly earnings in the 60 months of highest earnings,
times the total number of years of railroad service.27 Tier II annuities are increased annually by
32.5% of the Social Security COLA.
Tier II annuities are not (in contrast to Tier I annuities) reduced if a worker receives Social
Security benefits or a government pension that was not covered by Social Security. For railroad
retirees and spouses who work for their last pre-retirement non-railroad employer while receiving
retirement benefits,28 Tier II annuities are reduced by $1 for every $2 earned, capped at 50% of
the Tier II annuity. There is no cap to the earnings-related reduction in railroad Tier I or Social
Security benefits. In addition, the earnings-related reduction applies to all Tier II beneficiaries
regardless of age, whereas for railroad Tier I and Social Security benefits, the earnings-related
reduction applies only until the beneficiary reaches FRA.
Other Retired Worker Benefits: Supplemental Annuities and
Vested Dual Benefits
Tier II payroll taxes also finance a supplemental annuity program. Supplemental annuities are
payable to employees first hired before October 1981, aged 60 with at least 30 years of covered
railroad service or aged 65 and older with at least 25 years of covered railroad service, and a
current connection with the railroad industry.29
In addition, general revenues finance a vested dual benefit for those who were insured for both
railroad retirement and Social Security in 1974 when the two-tier railroad retirement benefit
structure was established.30 Neither supplemental annuities nor vested dual benefits are adjusted

excess earnings. During the calendar year that a retiree will reach the FRA, the formula for calculating the early
retirement reduction changes: benefits are reduced $1 for every $3 earned above an exempt amount ($56,520 in 2023)
until the beneficiary reaches FRA. Earnings while a Tier I annuitant may be used to recompute a beneficiary’s annuity,
which may result in the beneficiary receiving a higher annuity after FRA due to these earnings. For additional
information on the increase in Social Security benefits at FRA to account for benefits lost due to earnings, see CRS
Report R41242, Social Security Retirement Earnings Test: How Earnings Affect Benefits.
26 For additional information on the Social Security COLA, see CRS Report 94-803, Social Security: Cost-of-Living
Adjustments.
27 The formula for the gross Tier II amount is 0.007 × (total earnings in the 60 months of highest earnings ÷ 60) ×
Years of service. If the highest earnings in the 60 months are greater than the Tier II taxable maximum base, then the
formula use the Tier II taxable maximum base instead.
28 Work that begins on the same day as the annuity beginning date is not last pre-retirement non-railroad employment.
29 Workers have a current connection with the railroad industry if they worked in a covered railroad job for at least 12
months of the 30 months before death or receipt of a railroad annuity. The current connection is not broken during
employment at certain U.S. government agencies or in other special circumstances.
30 The payment of vested dual benefits depends on the time and amount of such appropriations. If the appropriation in a
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for changes in the cost of living during retirement. Supplemental annuities are subject to the same
earnings reductions as Tier II benefits; vested dual benefits are subject to the same earnings
reductions as Tier I benefits.
Disability Annuities
Railroad workers may be eligible for disability annuities if they become disabled regardless of
whether the disability is caused by railroad work. The RRB determines whether a worker is
disabled based on the medical evidence provided during the application process. Railroad
workers found to be totally and permanently disabled from all work may be eligible for Tier I
benefits at any age if the worker has at least 10 years of railroad service.31 Totally disabled
workers may also receive Tier II benefits at the age of 62 if they have 10 or more years of service.
Occupational disability annuities are also payable to workers found to be permanently disabled
from their regular railroad occupations, if the worker is at least 60 years old with 10 years of
service (or any age with 20 years of service), and with a current connection to the railroad
industry. A five-month waiting period after the onset of disability is required before any disability
annuity can be payable.
Disability annuities are not payable if a worker is currently employed in a covered railroad job.
Disability benefits are suspended if a beneficiary earns more than a certain amount after
deducting certain disability-related work expenses.32 The Tier I portion of disability benefits may
be reduced for the receipt of workers compensation or government disability benefits.
Spouse Annuities
In any month that a worker collects a railroad retirement or disability annuity, his or her spouse
may also be eligible for a spousal annuity equal to or greater than the benefit he or she would
have received if the worker’s railroad work had been covered by Social Security. A spouse is
eligible for a spousal annuity when he or she reaches the same minimum age required for the
worker (i.e., either at the age of 60 or 62, depending on years of the worker’s service). At any age,
a spouse may be eligible for a spousal annuity if he or she cares for the worker’s unmarried child
under the age of 18 (or a child of any age that was disabled before the age of 22). An individual
must have been married to the railroad worker for at least one year before he or she applies for
the spousal annuities, with certain exceptions. A qualifying spouse receives 50% of the worker’s
Tier I benefit before any reductions (or, if higher, a Social Security benefit based on his or her
own earnings). Spouses may also receive 45% of the worker’s Tier II benefit before any
reductions.
Divorced spouses of retired or disabled railroad workers may also be eligible for spousal
annuities. A divorced spouse may receive 50% of the worker’s Tier I benefit before reductions,
but no Tier II benefits. To qualify, the former spouse must have been married to the worker for at

fiscal year is for less than the estimated total vested dual benefit payments, individual payments will be reduced.
31 Employees with five years to nine years of covered railroad service, if at least five years were performed after 1995,
may qualify for Tier I benefits before retirement age only if they also meet certain Social Security earnings
requirements. For information on Social Security disability insurance, see CRS In Focus IF10506, Social Security
Disability Insurance (SSDI).
32 The earnings threshold is $1,150 per month (or $14,375 per year) in 2023 and is indexed to average national wage
growth. Disability work restrictions cease when a disabled employee attains FRA, when disability annuities convert to
retirement annuities. This transition is effective on earlier than FRA if the annuitant had 30 years of railroad service.
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least 10 years and must not currently be married (remarriages if any must have terminated); both
the worker and former spouse must be at least 62 years old.33
For spouses, as for railroad workers, Social Security benefits are subtracted from Tier I annuities.
The Tier I portion of a spouse annuity may also be reduced for receipt of any pension from
government employment not covered by Social Security based on the spouse’s own earnings.34
Spouses are subject to reductions based on the primary worker’s earnings as well as on their own
earnings. For example, for early retirement, spouses are subject to different benefit reductions
from workers.35 Finally, spouse annuities are reduced by the amount of any railroad benefits
earned based on their own work.
Survivor Annuities
After the worker’s death, surviving spouses, former spouses, children, and other dependents may
be eligible to receive survivor annuities, which are paid in addition to any private life insurance
offered by railroad employers. To be insured for survivor annuities, the worker must have had a
current connection with the railroad industry at the time of death. Railroad survivor annuities are
generally higher than comparable Social Security benefits because railroad workers’ families may
be entitled to Tier II annuities as well as Tier I annuities (as noted above, Tier I annuities are
equivalent to Social Security benefits). In cases where no monthly survivor annuities are paid, a
lump-sum payment may be made to certain survivors.36
The widows and widowers of railroad workers may be eligible to receive survivor annuities. At
FRA, a surviving spouse may be eligible for 100% of the worker’s Tier I annuity (or his or her
own Social Security or railroad retirement Tier I benefit, if higher). The widow(er) may also
receive up to 100% of the worker’s Tier II annuity. As early as the age of 60 (or age 50, if
disabled), widows and widowers may receive reduced survivor annuities.37 A qualifying
widow(er) must have been married to the deceased railroad worker for at least nine months, with
certain exceptions.38 At any age, a widow(er) caring for a deceased worker’s child under the age
of 18 may receive a survivor annuity equal to 75% of the worker’s Tier I annuity, as well as up to

33 A divorced spouse can receive a (spouse’s) annuity even if the employee has not retired, provided they have been
divorced for a period of not less than two years, the employee and former spouse are at least age 62, and the employee
is fully insured under the Social Security Act using combined railroad and Social Security earnings. A spouse is
eligible for an annuity at any age if caring for the employee’s unmarried child, who is under age 18 or disabled at any
age if the child became disabled before age 22. However, a divorced spouse is not eligible for an annuity on such basis
unless the employee is deceased.
34 For spouses subject to the public pension reduction, the Tier I benefit is reduced by two-thirds of the amount of the
public pension. For more information, see CRS Report RL32453, Social Security: The Government Pension Offset
(GPO).
35 For spouses, the reduction at the age of 62 is gradually rising from 25% to 35% as the FRA increases from age 65 to
67, whereas for workers, the reduction is rising from 20% to 30%.
36 A lump-sum death payment is made in cases in which the worker had at least 10 years of railroad service or, if less
than 10 years, had at least five years of service after 1995 and a current connection to the railroad industry and there is
no person eligible for monthly survivors benefits either because there are no eligible survivors or the widow(er) has not
reached the minimum age for benefits. The lump-sum death payment is limited to $255 if the employee did not have
120 months of service in the railroad industry before 1975.
37 For widow(er)s, the reduction at the age of 60 (Social Security’s earliest eligibility age for widowed spouses) is
rising from 17.10% to 20.36% as the FRA increases from 65 to 67. For a disabled widow(er), the maximum reduction
is 28.5%, even if the annuity begins at age 50.
38 Exceptions are provided in some cases such as accidental death or death in the line of duty.
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100% of the worker’s Tier II annuity. Widow(er)s who are the natural or adoptive parent of the
deceased worker’s child do not have to meet the length of marriage requirement.
Survivor annuities may also be payable to a surviving divorced spouse or remarried widow(er).
To qualify for benefits, a surviving divorced spouse has to be married to the employee for at least
10 years and is unmarried or remarried after age 60 (age 50 for disabled surviving divorced
spouse).39 A surviving divorced spouse who is unmarried can qualify for benefits at any age if
caring for the employee’s child who is under age 16 or disabled.40 Benefits are limited to the
amounts Social Security would pay (Tier I only) and therefore are less than the amount of the
survivor annuity otherwise payable.
Railroad workers’ children may also receive survivor annuities. To qualify, a child must be
unmarried and under the age of 18 (or 19 if still in high school). Disabled adult children may
qualify if their disability began before the age of 22. Eligible children receive 75% of the
worker’s Tier I annuity and 15% of the worker’s Tier II annuity.41 In addition, if a worker’s parent
was dependent on the worker for at least half of the parent’s support, he or she may receive
82.5% of the worker’s Tier I annuity and 35% of the worker’s Tier II annuity after reaching age
60.
Survivor annuities are not payable to a current railroad employee, and survivor annuities are
reduced by any railroad retirement benefit the survivor has earned through his or her own railroad
work. Survivors receive the same reductions as retired workers for Social Security benefit receipt;
they also have reductions from government pension receipts that are not covered by Social
Security.42 A family maximum applies to survivor benefits, usually applicable when three or more
survivors receive benefits on a worker’s record (not counting divorced spouses).43
Below, Table 1 provides data on railroad retirement, survivor, and disability annuities as of
September 2022.
Table 1. Railroad Retirement, Survivor, and Disability Annuities, September 2022
Percentage of Total
Average Monthly
Type of Annuity
Number of Benefits
Benefits
Benefit ($)
Age-Based
179,295
30.3%
3,211.32
Disability -Under Ful Retirement
Age (FRA)
17,110
2.9%
3,094.49
Disability -At or Above FRA
47,765
8.1%
2,831.53

39 For a surviving divorced spouse or remarried widow(er), the maximum age reduction is 28.5%, which is the same as
the maximum reduction for a disabled remarried widow(er) or disabled surviving divorced spouse even if the annuity
begins at age 50.
40 The 10-year marriage requirement does not apply to surviving divorced spouse with the employee’s child in care.
41 Social Security provides children’s benefits when a railroad worker is totally disabled, retired, or deceased. The
Railroad Retirement Act only provides children’s benefits if the employee is deceased. However, under a special
minimum guaranty provision, railroad families will not receive less in monthly benefits than they would have if
railroad earnings were covered by Social Security. Therefore, if a retired railroad worker has children who would
otherwise be eligible for a benefit under Social Security, the worker’s retirement annuity would be increased to reflect
what Social Security would pay for the family.
42 For survivors subject to the public pension reduction, the Tier I benefit is reduced by two-thirds of the amount of the
public pension. For more information, see CRS Report RL32453, Social Security: The Government Pension Offset
(GPO).
43 Social Security Administration, “Formula for Family Maximum Benefit,” see https://www.ssa.gov/OACT/COLA/
familymax.html.
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Percentage of Total
Average Monthly
Type of Annuity
Number of Benefits
Benefits
Benefit ($)
Supplemental
105,171
17.8%
41.49
Spouse
136,641
23.1%
1,174.55
Divorced Spouse
4,925
0.8%
764.59
Aged Widow(er)
75,064
12.7%
1,986.91
Disabled Widow(er)
2,892
0.5%
1,532.22
Widowed Mother and Father
587
0.1%
2,128.94
Remarried Widow(er)
2,303
0.4%
1,313.56
Divorced Widow(er)
9,749
1.6%
1,337.38
Children
7,306
1.2%
1,330.57
Partition Paymentsb
2,646
0.4%
335.54
Total Benefitsa
591,454c
100.00%
1,883.64d
Source: Railroad Retirement Board, Bureau of the Actuary, Quarterly Benefit Statistics, July-September 2022,
Table 1.
Notes: Components may not add to total due to rounding.
a. Total number of benefits paid includes multiple benefits paid to individual beneficiaries. Benefits were paid
to 477,271 unique beneficiaries.
b. The court-ordered partitioned portion of the Tier II, vested dual and supplemental benefit payments can be
made to spouses and divorced spouses when the railroad worker is deceased or not otherwise entitled to
an annuity.
c. The total number of benefits does not include the number of dependent parents’ annuities, which was 10 in
current payment status.
d. Estimated based on total number and amount of benefits.
Railroad Unemployment and Sickness Benefits
Railroad workers may qualify for daily unemployment and sickness benefits under the Railroad
Unemployment Insurance Act (RUIA).44 These monetary benefits are paid in addition to any paid
leave or private insurance an employee may have. For sickness benefits, a worker must be unable
to work because of illness or injury. Sickness benefits are distinct from disability benefits because
they are intended to cover a finite, temporary period of time. Workers may not earn any money
while receiving unemployment or sickness benefits.
Figure 3 displays the monthly number of beneficiaries with unemployment and sickness benefits
from January 2002 to September 2022, respectively. Although the number of sickness
beneficiaries stayed relatively stable over time, the number of unemployment insurance
beneficiaries increased significantly during and after the Great Recession from 2007 to 2009, as
well as the COVID-19-related recession from February to April 2020.45 During the Great
Recession, the ratio of railroad unemployment beneficiaries to total railroad workers peaked in
June 2009 at 6.1%. In the COVID-19 pandemic, the ratio of railroad unemployment beneficiaries
to total railroad workers increased from 2.7% in February 2020 to 8.3% in June 2020 and then
decreased to less than 1% in September 2022.

44 45 U.S.C. §§351-369.
45 NBER, US Business Cycle Expansions and Contractions.
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Figure 3. Number of RUIA Beneficiaries, January 2002- September 2022

Source: Railroad Retirement Board, Bureau of the Actuary, Benefits and Beneficiaries, January 2002 to
September 2022, Table 2, https://www.rrb.gov/FinancialReporting/FinancialActuarialStatistical/MonthlyQuarterly/
HistoricalData; National Bureau of Economic Research, US Business Cycle Expansions and Contractions,
https://www.nber.org/cycles.html.
Financing
Railroad unemployment and sickness benefits are financed solely by railroad employers’ payroll
taxes, based on the taxable earnings of their employees. Employers’ tax rates depend on the past
rates of unemployment and employees’ sickness claims. For calendar year 2023, the employer tax
rate ranges from 2.15% to 12.00% on the first $1,895 of each employee’s monthly earnings.
The payroll tax proceeds not needed immediately for unemployment and sickness insurance
benefits or operating expenses are deposited in the Railroad Unemployment Insurance Account
maintained by the Treasury. This account, together with similar unemployment insurance
accounts for each state, forms a Federal Unemployment Trust Fund whose deposits are invested
in U.S. government securities, and the Railroad Unemployment Insurance Account receives
interest based on these deposits. During FY2021, payroll tax contributions from railroad
employers totaled $112.1 million.46
The RUIA provides for an employer surcharge if the Railroad Unemployment Insurance Account
falls below an indexed threshold amount.47 The surcharge is added to the employer’s tax rate.
However, the total tax rate plus the surcharge cannot exceed the maximum rate of 12.0%, unless
the surcharge is 3.5%, in which case the maximum tax rate is increased to 12.5%. The accrual
balance of the RUIA was $112.7 million on June 30, 2022. This was below the indexed threshold
of $137.9 million, triggering a 1.5% surcharge in 2023.48

46 In FY2019, financing for the Unemployment and Sickness Insurance Program also included an interest income of
$0.1 million.
47 45 U.S.C. §358(a)(14).
48 RRB, “Surcharge in RUIA Tax Rate for 2023,” December 2022, https://www.rrb.gov/sites/default/files/2022-12/
rrxr.pdf.
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Eligibility and Benefits
Eligibility for railroad unemployment and sickness benefits is based on recent railroad service
and earnings. The annual benefit year begins on July 1. Eligibility is based on work in the prior
year, or the base year. To qualify in the benefit year beginning July 1, 2022, railroad workers must
have base year earnings of $4,275 in calendar year 2021, and their total earnings in the claim
period must not exceed the monthly compensation base of $1,710.49 New railroad workers must
also have at least five months of covered railroad work in the base year. To receive
unemployment benefits, a worker must be ready, willing, and able to work.
The maximum daily unemployment and sickness benefit payable in the benefit year that began
July 1, 2022, is $85, and the maximum benefit for a biweekly claim is $850. Generally, the
benefit amount is subject to sequestration pursuant to the Budget Control Act of 2011 (P.L. 112-
25, as amended). For example, the maximum daily benefit of $80 was reduced by 5.9% to $75.28,
and the maximum biweekly benefit was reduced by 5.9% to $752.80 from July 1 to September
30, 2020 (see Table 2).50 The rate for mandatory sequester is 5.7% for FY2023.51 However, the
Continued Assistance to Rail Workers Act of 2020 (CARWA; enacted under P.L. 116-260 on
December 27, 2020) granted temporary relief from sequestration beginning January 3, 2021,
through 30 days after termination of the presidential declaration of a national emergency
concerning COVID-19.52 Therefore, the maximum daily RUIA benefit would be $85 in the
current benefit year (through June 30, 2023) if the presidential declaration continues to be in
effect through at least May 30, 2023.53
Railroad workers receive these benefits only to the extent that they are higher than other benefits
they receive under the RRA, the Social Security Act, or certain other public programs, including
workers compensation.

49 RRB, “Railroad Unemployment and Sickness Benefits,” https://www.rrb.gov/sites/default/files/2022-06/
2022%20UB-9%20%28web%29.pdf. To qualify in the benefit year beginning July 1, 2023, railroad workers must have
base year earnings of $4,387.50 in calendar year 2022, counting no more than $1,755 per month.
50 Railroad unemployment benefits are paid biweekly for up to 10 days of unemployment. Certain railroad sickness
benefits are also subject to regular Tier I railroad retirement taxes, resulting in a further reduction of 7.65% (Social
Security and Medicare payroll taxes). Applying the 5.7% reduction to these sickness benefits will result in a maximum
two-week total of $714.11. The rate of reduction due to sequestration is set annually and may continue past September
30, 2021.
51 The sequestration rate in FY2023 will apply in each fiscal year through FY2031 unless otherwise specified by
Congress. See OMB Report to the Congress on the BBEDCA 251A Sequestration for FY2023, March 28, 2022,
https://www.whitehouse.gov/wp-content/uploads/2022/03/BBEDCA_251A_Sequestration_Report_FY2023.pdf.
52 RRB, Program Letter 2021-02, January 4, 2021, https://www.rrb.gov/sites/default/files/2021-01/
Program%20Letter%2021-02%20CARWA.pdf.
53 On January 30, 2023, President Joe Biden announced his Administration’s plans for a “wind-down” period. U.S.
Department of Health and Human Services is planning for the COVID-19 Public Health Emergency declaration to
expire on May 11, 2023, and the President anticipates terminating the COVID-19 National Emergencies Act
declaration on May 11, 2023. (For more information, see CRS Insight IN12088, Effects of Terminating the Coronavirus
Disease 2019 (COVID-19) PHE and NEA Declarations.) Therefore, it is anticipated that the maximum daily
unemployment and sickness benefit will be subject to sequestration starting on June 10, 2023.
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Table 2. Unemployment and Sickness Benefits and Sequestration
Benefit
Maximum Daily
Maximum
Maximum Daily
Reduction Rate
Benefits Payable
Biweekly Benefits
Benefit Before
Due to
After
Payable After
Time
Sequestrationa
Sequestrationb
Sequestration
Sequestration
Jul 1, 2020-Sep 30,
$80
5.9%
$75.28
$752.80
2020
Oct 1, 2020-Jan 2,
$80
5.7%
$75.44
$754.40
2021
Jan 3, 2021-Jun 30,
$80
0%c
$80.00
$800.00
2021
Jul 1, 2021-Jun 30,
$82
0%
$82.00
$820.00
2022
Jul 1, 2022-Jun 30,
$85
0%d
$85.00
$850.00
2023
Source: Railroad Retirement Board (RRB), Railroad Unemployment and Sickness Benefits, 2022,
https://www.rrb.gov/sites/default/files/2022-06/2022%20UB-9%20%28web%29.pdf.
Notes: The annual benefit year for the RUIA program begins July 1. The annual sequestration begins October 1
(the starting date for each fiscal year).
a. The maximum daily RUIA benefit generally increases every benefit year starting July 1.
b. The change in the mandatory sequester is effective at the beginning of each fiscal year.
c. The Continued Assistance to Rail Workers Act of 2020 (enacted under P.L. 116-260 ) granted temporary
relief from sequestration beginning January 3, 2021, through 30 days after termination of the presidential
declaration of a national emergency concerning COVID-19.
d. Starting July 1, 2022, the maximum daily unemployment and sickness benefit payable in the benefit year
increased to $85. If the national emergency concerning COVID-19 ends on May 11, 2023, the regular
mandatory sequester wil start to apply 30 days after the termination (i.e., June 10, 2023).
Unemployment and sickness beneficiaries may receive normal benefits for up to 26 weeks in a
benefit year or until the benefits they receive equal their creditable earnings in the base year if
sooner. There is a one-week waiting period for unemployment and sickness benefits.54 Employees
with at least 10 years of covered railroad service may qualify for extended unemployment or
sickness benefits for 13 weeks after they have exhausted normal benefits.
Table 3 displays the number and average weekly amount of RUIA benefits paid in September
2022.
Table 3. Railroad Unemployment and Sickness Benefits, September 2022
Number of
Number of
Type of Benefits
Beneficiaries for
Beneficiaries for
Average Weekly
Normal Benefits
Extended Benefits
Benefit
Unemployment
925
45
$416.50
Sickness
4,186
264
$417.80
Source: Railroad Retirement Board, Bureau of the Actuary, Quarterly Benefit Statistics, July-September 2022,
Table 3, https://www.rrb.gov/sites/default/files/2023-01/stat_qbs0922.pdf.

54 There is a two-week waiting period for unemployment benefits if a worker participates in a legal strike.
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Workers who apply for unemployment benefits are automatically enrolled in a free job placement
service operated by railroad employers and the RRB.55
Author Information

Zhe Li

Analyst in Social Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

55 For more information, see RRB, “Free Placement Service,” https://www.rrb.gov/Free_Placement_Service.
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