Whether the question is about the railroad department or any other employment sector, retirement income plans like Social Security Benefits and Railroad Retirement have always been a crucial part of it. But sometimes the spouses of employees wonder, can a spouse draw railroad retirement and social security? And this concern seems completely valid because instead of contributing to the household, they need to think about any unexpected situation as well.
While working in the household, it is very important to ensure financial stability, not just in daily life but also at the time when the earning member of the family passes away. In this article, we will understand this concern deeply.
Spousal Benefits in Railroad Retirement and Social Security
The retirement benefits plans are designed to help individuals and their families maintain financial well-being after they retire. In this context, the spousal benefits are offered to individuals who are married to retired workers. This will be particularly very helpful to those with low income or no lifetime earnings. And both the retirement income plan, social security, and railroad retirement provide similar benefits and with similar intent.
Tiers of railroad retirement benefits:
- Tier I: This benefit type is identical to the Social Security benefits in almost every aspect. For the calculation of benefits, both railroad and non-railroad income are taken as an instance. Also, the spouse can receive up to 50% of the employee’s Tier I benefits, which is similar to the Social Security benefits. However, if the spouse already receives social security benefits, then the entitlement of the employee’s benefits plan can be reduced.
- Tier II: This works as a private plan and depends on the career, including years of service and earnings in the railroad industry. The related spouse can receive 45% of the employee’s retirement benefits, and Tier II benefits are not reduced by Social Security benefits.
On the other hand, the social security benefits are provided as a retirement income to the employees. The eligible spouse will get up to 50% of the benefit amount the worker receives as a retirement income. If the spouse has their social security benefits, then the benefit that is higher will be given to the spouse; both cannot be entitled to the benefits.
Can You Receive Both Social Security and Railroad Retirement?
There is a term called ‘Dual Entitlement’. This means that someone qualifies for both Social Security and railroad benefits. But there is a catch. No one can receive both retirement benefits simultaneously. To maintain equality among all the benefit holders, this rule has come into play. However, here people think, then what happens in this case?
The answer is that the higher benefit amount will be provided to the person. This prevents duplication, which empowers the pension workflow. With this, the higher benefits amount will be provided to the person instead of paying the sum of both. And this goes the same with the spouse also, if they are eligible for their family member’s benefit plans. But these rules are only valid for Tier I and social security benefits, not the Tier I railroad benefits.
For example, if a spouse is eligible for $1500 of social security benefits and $2000 of railroad retirement benefits Tier I, then the spouse will get $2000, not $3500.
Can a spouse draw railroad retirement and social security? The Tier railroad retirement benefits are not subject to being affected by this dual entitlement restriction. This is because the Tier II benefits act like a private pension. It is possible to receive both Tier II railroad retirement benefits and social security benefits at the same time.
How Does Railroad Retirement Work for a Spouse?
The spousal benefits available in the railroad retirement are much like those of Social Security, but come with an optional advantage of Tier II elements. However, there are some eligibility criteria that a married spouse needs to fulfil to get the railroad spousal benefits.
Eligibility Requirements for Spouse:
- The person you are married to has at least 10 years of railroad service or 5 years after 1995.
- The spouse can only claim benefits after the age of 62 years.
- If the spouse has a child with the railroad employee under the age of 18 or disabled, then they may qualify at any age.
- The couple must have been married for at least 1 year before applying for benefits.
- For a divorced spouse, it is required that the couple has been married for at least 10 years and is not currently married.
After qualifying for these criteria, the spouse can collect Tier I and Tier II benefits. The amount will depend on the worker’s service history, earning potential, and other factors. So, the question, can a spouse draw railroad retirement and social security, is partially solved. Know how much is railroad retirement after 30 years?
How Railroad Spousal Benefits Are Calculated?
Like the railroad employee, who has two types of retirement benefits, the spousal benefits are also divided into two tiers, Tier I and Tier II.
Tier I spousal benefits: The spouse can get up to 50% of the employee’s Tier I retirement benefits. However, these benefits will be reduced if the spouse also receives social security benefits. The spouse can fully receive the benefits after the age of 62 years, so in the case of early retirement, the benefits will be reduced.
Tier II spousal benefits: The spouse will be entitled to the employee’s 45% of Tier II railroad annuity amount. Also, the Tier II benefits are like a private pension, which are not affected if the spouse is receiving social security benefits. These benefits are continuing for life and can only be stopped if the spouse remarries after the employee’s death.
Can a Widow Draw Railroad Retirement and Social Security?
The rules for the spousal retirement benefit are the same for the widows. The widow can get the spouse’s retirement benefits, like railroad retirement benefits. But the spouse cannot get both the railroad retirement Tier I benefits and the Social Security benefits. The benefit of the higher value will be entitled to the surviving spouse. Generally, the railroad retirement benefits are higher.
A common concern arises in such a situation: at what age can a spouse collect railroad retirement? The spouse can get the benefits after the age of 60 years, claiming before this age will reduce the benefit amount. The deceased spouse needs to have a service period of at least 10 years and 5 years after 1995. After the age of 60 years, the surviving can start claiming the employee’s benefits.
The deceased spouse’s retirement benefits can help the surviving member counter the financial instabilities. If the spouse is disabled or caring for a child under the age of 18, then they can claim the retirement income at any time or 50. However, the Tier II benefits amount can be claimed in parallel with the social security benefits, which empowers the overall retirement income. So, the question, Can a spouse draw railroad retirement and social security, is answered here.
Maximizing Spousal Retirement Benefits
There are some useful ways using which the spouse can maximize their spousal retirement benefits. With this, the spouse can get the highest potential of their family member’s retirement benefits.
- If the claim is delayed till the full retirement age (FRA), it prevents the reduction of retirement benefits.
- Manage multiple benefits, RRB and SSA, to ensure optimal payments.
- Review personal work history sometime before retirement to take some steps to increase the benefits.
- Avoid remarriage before the age of 60 years or before starting to claim the benefits.
- Optimize various income sources to avoid a reduction of retirement benefits.
Conclusion
Indeed, a spouse cannot collect both the railroad retirement Tier I benefits and social security benefits at the same time. But they can get a higher number of benefits from both. People ask, Can a spouse draw railroad retirement and social security? The answer is yes, but it varies. However, the Tier II benefits are not affected by this dual entitlement. The Spouse can receive both railroad Tier II benefits and Tier I or social security benefits simultaneously. With proper planning and knowledge, spouses can easily claim the retirement benefits of their family member if eligible.
Frequently Asked Questions
When your spouse dies, do you get their Social Security?
Generally, when a spouse dies, the other surviving spouse will be entitled to the social security benefits. Also, in the case of railroad retirement, the surviving spouse will get up to 50% of the employee’s benefit amount.
Can I claim my own Social Security and then switch to spousal benefit?
It is not possible to get two Social Security benefits for you and your spouse. However, if your social security benefit amount is less than that of your spouse, then you will get the higher amount when the spouse dies.
What happens to my husband’s railroad retirement when he dies?
When a husband dies and he is a railroad worker, then the retirement benefits are provided to the eligible spouse for their lifetime. The amount that will be entitled is half the worker’s actual benefit amount.
