Someone told me that even if you never go back to the railroad you continue to pay into rr retirement and won’t pay into social security even if you don’t work for railroad ever again. This is just if your vested is this true? I want to stop at the office next time I’m free and this is what someone told me that one of the rrrb people told him
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our socalled government only wants to steal your money under the guise of social security and if you were to put that money in conservative investment instead you could easily retire early with 7 figures
It's lose not loose!
I was furloughed and sat down with the RRB. I encourage everyone who is concerned about being furloughed or questioning their future in general on the railroad to sit with the RRB. They will pull up your profile and show you the amount you will be paid in retirement even if you never worked another day on the railroad. Given you probably don’t have 30 years, once you leave the railroad you will start paying into SSI again and your retirement age will be governed by SSI guidelines which is your date of birth. At best you would be eligible for early retirement at age of 62 and take a 30% hit. Now, the money that you begin paying again into SSI will not increase your retirement figure and will be absorbed by the RRB once you retire. Unless you don’t have many years in and your SSI is more than what you would get from RRB. The biggest drawback is survivorship benefits. If you retire from a job paying into SSI, not railroad, once you die your connection with the railroad is broken and your benefits will not go to your wife. She will continue to get only her half or SSI, whichever is greater in lieu of getting your whole.
Once you're vested, you will not loose your tier 2. But if you leave or get laid off and are not called back, your next non railroad employer will only collect social security from your pay, they will not collect tier 2, which is your railroad pension.
You won’t pay into railroad retirement anymore after you quit though so any time and money payed outside of the railroad won’t add up to extra benefit amounts if your railroad retirement is higher when you retire.
You will get whichever is higher once your vested. So if your railroad retirement would be higher than social security you would be paid railroad retirement or vice versa. This came straight from the railroad retirement board 2 months ago.
That’s what I thought it seemed to good to be true