Railroad Retirement Benefits Explained by a New Jersey Railroad Retirement Claims Lawyer
The Railroad Retirement System is a federal retirement program for railroad workers. The Railroad Retirement System is tied to the Social Security System; however, a New Jersey railroad retirement claims lawyer can tell you that the railroad system is very different and provides unique benefits.
Tier I Retirement Benefits
The Railroad Retirement System provides retirement, disability, spousal and survivor benefits. There are two general types of railroad benefits: the tier I and tier II railroad retirement benefits.
Tier I benefits are perhaps most similar to Social Security benefits. The types of benefits and the way the benefits are calculated are close to Social Security. In fact, a New Jersey railroad retirement claims lawyer can explain to you that if you are eligible for Social Security benefits, your railroad retirement benefits may be cut.
Generally, the amount of benefits you can collect under tier I is determined by a formula that looks at your highest 35 years of indexed earnings. Typically, a retiree must have worked for at least ten years in a covered service to be eligible, and benefits are generally payable at age 62.
Some key differences between railroad retirement benefits and Social Security benefits is that an individual with at least 30 years of railway service can retire as early as age 60 and receive full benefits without having to take an age-based reduction. This is not available under the Social Security system.
Tier II Retirement Benefits
Tier II Railroad Retirement benefits are an additional benefit provided to railroad workers with a longer period of service. The tier II benefit is similar to a private defined benefit pension plan and is a coveted benefit for many retirees. This is also the benefit that most separates railroad retirees from retirees eligible for Social Security. You will want to talk to a New Jersey railroad retirement claims attorney if you are unsure of your eligibility for this benefit or the amount of benefit you can receive.
Contact a New Jersey Railroad Retirement Claims Attorney
If you have any questions about your ability to collect railroad retirement benefits or the amount you can collect, you will want to talk to an experienced New Jersey Railroad Retirement Claims Lawyer. Talk to an attorney at Hermann Law Group, PLLC by calling 1-877-773-3030.