A question for My father about a railroad pension or annuity

[FANOFJESUS]

I need your help on this matter it is very important to the family. My father worked for the railroad for 24 years and then was placed on disability for due to heart problems and diabetes in 1974. He received a small disability check since 1974 at age 47. He was a member of the union. Should he have received a pension or annuity for his 24 years of service after he reached the age of 62?

 

[ziggy29]

Interesting. I'm certainly no expert, but usually the way disability benefits often work is that if someone has enough creditable service for an old-age pension, they'd get disability until their full retirement age (perhaps 62 or 65 in his case), and then the disability would stop and the regular pension benefits would kick in (and regular Social Security).

I don't know if railroad disability is different, and if the disability benefit is for life and in lieu of a regular pension, but that would be unusual.

Have you looked here for more details?

RB-1D, Employee Disability Benefits, About Your Disability Annuity

You may want to check with the union and/or with an attorney who is knowledgeable about railroad disability law. I am most definitely NOT a lawyer.

 

[kaneohe]

or maybe call one of the referenced phone numbers here
Contact Us
and hope the wait is not as bad as for SS.

 

[FANOFJESUS]

My father was told by the railroad that he could not draw the pension if he was on disability. I am with you Ziggy something about that does not seem right because he put 24 years in working to get the pension at 30 years and now is told he will not get a penny because he is on disability. I will make some calls, maybe they don't tell folks that in order to save money. Ziggy what you said makes alot of sense.

 

[ziggy29]

My father was told by the railroad that he could not draw the pension if he was on disability. I am with you Ziggy something about that does not seem right because he put 24 years in working to get the pension at 30 years and now is told he will not get a penny because he is on disability. I will make some calls, maybe they don't tell folks that in order to save money. Ziggy what you said makes alot of sense.

They could be right, but asking the railroad is like asking the fox about the henhouse. I'd check with the union's legal team and/or an attorney well-versed in that area of law.

 

[FANOFJESUS]

Will do, thanks again Ziggy.

 

[FANOFJESUS]

Well I found out the answer. When you are put on disability you collect your pension. He had 24 years of service so he collected about 80% of his pension in 1974 dollars. The reason the pension seemed small was because it was based on 1974 dollars. He had cost of living raises but there has been great inflation since 1974. It would be like your were on SS for 24 years, you would lose alot of your buying power.

 

[ziggy29]

Well I found out the answer. When you are put on disability you collect your pension. He had 24 years of service so he collected about 80% of his pension in 1974 dollars. The reason the pension seemed small was because it was based on 1974 dollars. He had cost of living raises but there has been great inflation since 1974. It would be like your were on SS for 24 years, you would lose alot of your buying power.

Ah -- so it wasn't a separate disability payout, it WAS the pension itself that you can collect early in case of disability. That's good information and it may well turn out to be very helpful to others here in the future.

 

[FANOFJESUS]

One more question should my father have gotten Social Security? He only received his pension. He only worked for the railroad. He worked for them 24 years.

 

[ziggy29]

One more question should my father have gotten Social Security? He only received his pension.

Did he pay Social Security taxes while he was working?

 

[FANOFJESUS]

I do not believe so the railroad has thier own system like SS. I do not think you can get both but wanted to ask others just to make sure.

 

[FinanceDude]

I do not believe so the railroad has thier own system like SS. I do not think you can get both but wanted to ask others just to make sure.

True, RR workers are under a special plan........