Individuals who receive railroad retirement annuities may receive a periodic cost of living adjustment to the benefit. A New York railroad retirement claims attorney can explain to you that in January 2014, the railroad retirement annuities were increased by an amount that was tied to the change in the Consumer Price Index, or CPI.
Tier I and Tier II Cost of Living Increase
Both the Tier I and Tier II benefits received a cost of living increase in January 2014. The Tier I benefits received a 1.5 percent increase, representing the percentage of the CPI rise. Tier II benefits received a 0.5 percent increase, representing 32.5 percent of the CPI rise.
A New York railroad retirement claims lawyer can tell you that on average, the regular retired employee will see an increase of $29 per month on their benefits check to $2,459 in total. A married couple would see a $41 a month increase and receive a $3,540 increase. Eligible widowers would also see an increase of $17 a month to $1,279.
Interplay Between Railroad Retirement Benefits and Social Security Benefits Explained by a New York Railroad Retirement Claims Lawyer
Individuals who qualify for both railroad retirement benefits and Social Security or other government benefit may not receive the full amount of the cost of living adjustment. Instead, any increase to a Tier I benefit may be offset by an increase to the other government retirement benefit.
However, Tier II benefits are unique as these increases would not be decreased even if someone qualifies for another government benefit qualifying for a cost of living increase. So, you could benefit with cost of living adjustments to both benefits.
Contact a New York Railroad Retirement Claims Attorney
If you have any questions about the amount of railroad retirement benefits that you can collect, you will want to contact an experienced attorney. The calculations for railroad retirement benefits and cost of living adjustments can be very complicated. Talk to an attorney at Hermann Law Group, PLLC by calling 1-877-773-3030 and learn how we can help you.