I started working for the railroad in 1980 - prior to that, I worked for several companies. I retired three years ago and am receiving railroad retirement benefits. Someone told me that I may also be eligible for social security in addition to railroad retirement (I remember they referred to it as double dipping years ago). I also just received a statement from Social Security telling me how much my payment would be if I decided to collect. I have worked more than 40 quarters under social security and railroad retirement. Am I eligible to "double dip"?

Hi,

The answer is, probably not. Railroad retirement benefits consist of 2 tiers. Tier 1 is roughly an equivalent of Social Security, and tier 2 is based strictly on railroad earnings. Think of tier 2 as a company pension separate from Social Security.

If you apply for Social Security (SS) benefits, your SS benefit will be calculated using just your Social Security earnings. Instead of paying you directly, Social Security will 'certify' your benefit to the Railroad Board (RRB), who then determines your combined benefit. Your SS benefit will be offset against your railroad tier 1 benefit, and unless the SS benefit is higher than the tier 1 benefit, you will end up receiving the same total amount. Furthermore, since some states tax social security benefits and not railroad retirement benefits, you may simply be trading tax exempt income for taxable income.

You may already have correspondence from the Railroad Retirement Board that shows your tier 1 benefit amount. If not, you should be able to find out the amount by calling them at 1-877- 772-5772. To find out how much your Social Security benefit would be, you can try calling 1-800-772-1213.

All of that said, if your SS benefit does happen to be higher than your tier 1 railroad benefit, you should probably wait until age 70 to apply. You can still accrue delayed retirement credits on your Social Security record from full retirement age until age 70, even if you are drawing railroad retirement. If your SS benefit at age 70 is still lower than your tier 1 railroad benefit, there is likely no point in ever applying for Social Security.

Best, Jerry