Why Would Someone Pass Such Legislation?

Nov 5 2018 - 7:32am

Hi, I am a retired Railroader with over 32 years of service, during my tenure there was times of furloughs and I would find work to bridge the gab, I have always held a part time job at the time of my retirement I kept on working and was asked to go full time which I did, now I find out that there is a clause called pre retirement non railroad employment and that deductions are taken regardless of age in other words as long as I stay where I'm at these deductions are for life. Who and why would someone pass such legislation? what difference does it matter where I'm employed? I'm paying taxes on all levels and to a SSI system which I'll never see, please advise, Mike

Hi Mike,

I'm sorry, but my expertise is limited to Social Security benefits and not Railroad Retirement benefits. I'm never heard of the clause that you're referring to, and I have no idea what it states.

What I can tell you is that if you work for an employer where your earnings are subject to Social Security taxes, you have to pay those taxes regardless of whether or not they will ever translate into additional benefits. And, if you end up with at least 40 quarters of Social Security coverage, you could qualify for Social Security retirement benefits as early as age 62. But, if you end up filing for both Social Security benefits and Railroad Retirement benefits the Railroad Retirement Board will offset your Tier 1 Railroad benefits dollar for dollar by the amount of your Social Security benefit. Sorry I that can't be more helpful.

Best, Jerry