Full question: I’m the spouse of a railroad retiree and I’m currently receiving both tier I and tier II benefits based on my husband’s retirement income. I’m now at the age where I can apply to receive Social Security, and I’m strongly considering applying to receive as the benefit would be approximately $500 more per month than the railroad’s tier I amount that I’m currently receiving. What kind of penalties, if any, would be applied if I opt for the social security benefit over the railroad’s tier I benefit? I know that should my husband pass before me, I’m entitled to his full railroad retirement benefit, but if I choose to receive the social security benefit now, should he pass, I’m assuming in that case that I would need to discontinue receiving social security and go back to receiving tier I and tier II of his retirement. Would I be penalized in any way for switching back to railroad retirement in order to receive my husband’s full benefit after having received social security? Thank you for your response.

Hi there,

You face no penalties for opting for the Social Security benefit, which is $500 higher than your current Tier I spouse annuity. However, your Tier I annuity will be reduced to $0 due to the offset, while your Tier II annuity continues unaffected. When you apply for the Social Security benefit, notify the RRB to avoid overpayments, which could require repayment with interest or penalties.

If your husband passes, you can apply for a Railroad Retirement widow’s annuity, which includes a Tier I portion (offset by your Social Security benefit) and a Tier II portion based on his railroad service. There are no penalties for transitioning to the widow’s annuity, and the Tier I offset is a standard adjustment, not a penalty.

For personalized support, you can work with an RSSA here.

All the best,
Martha

Schedule Appointment
Back to All