An Overview of the Railroad Retirement Program

Abstract

In the 1930s, amidst concern about the ability of existing pension programs to provide former railroad workers with adequate assistance in old age, Congress established a national Railroad Retirement system. This system is primarily administered by the Railroad Retirement Board (RRB), which is an independent federal agency charged with providing benefits to eligible employees of the railroad industry and their families. Today, the Railroad Retirement program is closely tied to the far better-known Social Security program, and although the Railroad Retirement program and Social Security share a number of common elements, key differences also exist between the two in areas such as funding and benefit structure. This article describes history of the Railroad Retirement program, reviews the benefits provided by the program, and examines RRB's financial operations, using elements of the Social Security system as points of reference.

Keywords: Railroad Retirement Board, retirement income, old age, benefits