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Railroad Retirement annuitants subject to earnings restrictions can earn more in 2023 without having their benefits reduced due to increased limits indexed to average national wage increases.

Like Social Security benefits, some Railroad Retirement benefit payments are subject to deductions if an annuitant’s earnings exceed certain exempt amounts. These earnings restrictions apply to those who have not attained full Social Security retirement age. For employee and spouse annuitants, full retirement age varies depending on an individual’s year of birth, and is age 67 for those born after 1959. For survivor annuitants, full retirement age also varies, and is age 67 for those born after 1961.

For those under full retirement age throughout 2023, the exempt earnings amount rises to $21,240 from $19,560 in 2022. For beneficiaries attaining full retirement age in 2023, the exempt earnings amount, for the months before the month full retirement age is attained, increases to $56,520 in 2023 from $51,960 in 2022.

For those under full retirement age, the earnings deduction is $1 in benefits for every $2 of earnings over the exempt amount. For those attaining full retirement age in 2023, the deduction is $1 for every $3 of earnings over the exempt amount in the months before the month full retirement age is attained.

When applicable, these earnings deductions are assessed on the Tier I portion of Railroad Retirement employee and spouse annuities, and the Tier I and Tier II portions of survivor benefits.

All earnings received for services rendered, plus any net earnings from self-employment, are considered when assessing deductions for earnings. Interest, dividends, certain rental income or income from stocks, bonds or other investments are not considered earnings for this purpose.

Retired employees and spouses, regardless of age, who work for their last pre-retirement non-railroad employer are also subject to an additional earnings deduction, in their Tier II and supplemental benefits, of $1 for every $2 in earnings up to a maximum reduction of 50%. This earnings restriction does not change from year to year and does not allow for an exempt amount.

A spouse benefit is subject to reduction not only for the spouse’s earnings, but also for the earnings of the employee, regardless of whether the earnings are from service for the last pre-retirement non-railroad employer or other post-retirement employment.

Special work restrictions continue to be applicable to disability annuitants in 2023. The monthly disability earnings limit increases to $1,150 in 2023 from $1,050 in 2022.

Regardless of age and/or earnings, no Railroad Retirement annuity is payable for any month in which an annuitant (retired employee, spouse or survivor) works for a railroad employer or railroad union.

Most Railroad Retirement annuities, like Social Security benefits, will increase in January 2023 due to a rise in the Consumer Price Index (CPI) from the third quarter of 2021 to the corresponding period of the current year.

Cost-of-living increases are calculated in both the Tier I and Tier II portion of a Railroad Retirement annuity. Tier I benefits, like Social Security benefits, will increase by 8.7%, which is the percentage of the CPI rise. This is the largest increase since 1981, when it was 11.2%.  

Tier II benefits will go up by 2.8%, which is 32.5% of the CPI increase. Vested dual benefit payments and supplemental annuities also paid by the Railroad Retirement Board (RRB) are not adjusted for the CPI change.

In January 2023, the average regular Railroad Retirement employee annuity will increase $215 a month to $3,344 and the average of combined benefits for an employee and spouse will increase $304 a month to $4,838. For those aged widow(er)s eligible for an increase, the average annuity will increase $120 a month to $1,691.

Widow(er)s whose annuities are being paid under the Railroad Retirement and Survivors’ Improvement Act of 2001 will not receive annual cost-of-living adjustments until their annuity amount is exceeded by the amount that would have been paid under prior law, counting all interim cost-of-living increases otherwise payable. Some 49% of the widow(er)s on the RRB’s rolls are being paid under the 2001 law.

If a Railroad Retirement or survivor annuitant also receives a Social Security or other government benefit, such as a public service pension, any cost-of-living increase in that benefit will offset the increased Tier I benefit. However, Tier II cost-of-living increases are not reduced by increases in other government benefits. If a widow(er) whose annuity is being paid under the 2001 law is also entitled to an increased government benefit, her or his Railroad Retirement survivor annuity may decrease.

In late December the RRB will mail notices to all annuitants providing a breakdown of the annuity rates payable to them in January 2023.

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7% in 2023, the Social Security Administration announced. On average, Social Security benefits will increase by more than $140 per month starting in January.

The 8.7% cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin Dec. 30, 2022. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” Acting Commissioner Kilolo Kijakazi said.

To view a COLA message from Acting Commissioner Kijakazi, please visit www.youtube.com/watch?v=Vgm5q4YT1AM.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find out their new benefit amount is to access their personal my Social Security account to view the COLA notice online. It’s secure, easy and people find out before the mail arrives. People can also opt to receive a text or email alert when there is a new message from Social Security — such as their COLA notice — waiting for them, rather than receiving a letter in the mail. People may create or access their my Social Security account online at www.ssa.gov/myaccount.

Information about Medicare changes for 2023 is available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new higher 2023 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.

The Social Security Act provides for how the COLA is calculated. To read more, please visit www.ssa.gov/cola.

Follow this link to view a fact sheet on the 2023 changes.

The Centers for Medicare & Medicaid Services (CMS) has released the Part B premium and deductible costs for 2023. Railroad Medicare processes claims for Part B services.

This year saw a modest decrease in both costs. The 2023 annual Part B deductible decreased from $233 to $226, a $7.00 difference. The 2023 standard Part B premium amount also decreased from $170.10 in 2022 to $164.90 in 2023, which is a difference of $5.20. Per CMS, most people pay $164.90, although those with higher or lower incomes have monthly adjusted amounts.

The following table shows the monthly premium payments based on your 2021 income:

If you filed an INDIVIDUAL Tax Return with income in 2021 of If you filed a JOINT Tax Return with income in 2021 ofIf you are married but filed a separate tax return with income in 2021 ofPart B premium you will pay each month in 2023
$97,000 or less$194,000 or less$97,000 or less$164.90
Above $97,000 up to $123,000Above $194,000 up to $246,000Not applicable$230.80
Above $123,000 up to $153,000Above $246,000 up to $306,000Not applicable$329.70
Above $153,000 up to $183,000Above $306,000 up to $366,000Not applicable$428.60
Above $183,000 and less than $500,000Above $366,000 and less than $750,000Above $97,000 and less than $403,000$527.50
$500,000 or above$750,000 or above$403,000 or above$560.50

If you have questions about your Part B Premium, you can call the Railroad Retirement Board toll free at 877-772-5772, or for the hearing impaired (TTY) call 312-751-4701. General information can also be found at the RRB’s website at www.RRB.gov.

If you have questions about your Railroad Medicare coverage, you can call Palmetto GBA’s Beneficiary Contact Center at 800-833-4455, or for the hearing impaired, call TTY/TDD at 877-566-3572. Customer Service Representatives are available Monday through Friday, from 8:30 a.m. until 7 p.m. ET.

You are encouraged sign up for Palmetto’s free internet portal, MyRRMed. MyRRMed provides you with access to your claims information, along with historical Medicare Summary Notices, and a listing of individuals you have authorized to have access to your protected health information (PHI). You can also submit requests to add or change your authorized representatives through the portal. To access MyRRMed, please visit www.PalmettoGBA.com/MyRRMed.

Palmetto GBA is the Railroad Specialty Medicare Administrative Contractor (RRB SMAC) and processes Part B claims for Railroad Retirement beneficiaries nationwide. Palmetto GBA is contracted by the independent federal agency Railroad Retirement Board.

SMART-TD Brothers and Sisters,

Due to an immense amount of misinformation, I would like to provide answers to some of the questions and concerns that I have been receiving over the past few weeks, as well as provide an update on where we are in the process regarding the tentative agreement (TA).

The question and answer (Q&A) period for the general chairpersons is still underway as per our constitution. The deadline for submissions is October 7th. Once the questions have been submitted, they will be checked for duplication and wording, which is estimated to take three to four days. A final single document will then be submitted to the National Carriers Conference Committee (NCCC), with whom we will meet to reach an agreement on the final answers. A meeting will promptly follow so our target date for the ballots to be sent to you, the members, can be achieved. The final Q&A will be part of the tentative agreement and will be included in its entirety for members to review before voting.  

Several topics have also arisen that we would like to respond to regarding the upcoming vote every member will hopefully be casting regarding the tentative agreement:

  • Ballot and voting information for SMART-TD has not been put out. Per the SMART-TD Constitution, Article 21(B), Section 91, ballots and instructions cannot be sent out in any capacity until the Q&A stage of the agreement process has been met. Anyone claiming or posting on social media that they have received a ballot and instructions should be taken with caution as nothing has been authorized by my office. I will never submit material to the membership instructing them to vote YES or NO.
  • Contrary to certain groups and social media rumors, the SMART-TD Constitution does not allow for a non-vote to be counted as a YES vote. This protection means that EVERY vote is important. Every member of the union needs to make sure their vote is submitted, regardless of voting yes or no. The SMART Constitution clearly states: “A majority of the members voting of each of the crafts to be covered or affected by the terms of the proposed agreement shall be required to ratify the offer of settlement.” Voting is your most sacred and powerful right as a union member. Please encourage your fellow brothers and sisters to take part in the upcoming vote.
  • A recent accusation is circulating that if the majority of the membership votes not to ratify the tentative agreement, SMART-TD will override the NO vote and force the tentative agreement on the membership. This is materially FALSE. Your International leadership does NOT have the ability under the SMART Constitution to overturn a vote. In the event that the majority votes no, we would go back to the table until a resolution is either forced on us by Congress or a resolution that the SMART-TD membership would ratify is presented.

I would ask that you consider the source of information that is projecting this reckless and materially false information. Social media posts, news and blog articles from other sources and discussions around the yards are contributing to a large amount of misinformation being spread. These sources do not have the “inside information” as they claim. The information posted on the SMART union website and its official social media pages is THE source for completely accurate content regarding the Tentative Agreement.

If you have any questions, please don’t hesitate to contact my office.

Fraternally,

Jeremy R. Ferguson

President, Transportation Division

William “Bill” Laver

SMART Local 556 (Tacoma, Wash.) recognized a moment of silence for their fallen brother this week.

BNSF Brakeman William “Bill” Laver, 51, of Grapeview, Wash., had his life of dedicated service cut short Friday, Sept. 16 by an alleged drunken driver while he was on his way to work.

Laver had answered his call to work and was riding his motorcycle to the yard when police said a driver going the wrong way on Route 16 struck him head on Sept. 16. The driver then allegedly fled the scene of the accident and has since been arrested by police. He is now facing charges of fleeing the scene and driving while under the influence in relation to the accident.

Brother Laver hired on with BNSF in 2011 and prior to that served our country honorably, retiring with 20 years of service in the United States Navy. At the time of his retirement, he was a Senior Chief.

Bill Price, local chairperson of Local 556, said, “I worked with Bill many times, and he was a great guy. He’s going to be missed by all of us.”

Price said Laver left behind his wife, six children, and two grandchildren along with both his mother and father.

There will be a celebration of life Sunday, October 2 at 1 p.m. at the Shelton Civic Center, 525 W. Cota St., Shelton, WA 98584. This opportunity to pay respects to the Laver family is open to the public.

Follow this link to donate to Brother Laver’s GoFundMe page.

SMART-TD extends our deepest condolences to the Laver family, Local 556 and to all who knew Brother Laver.

Local 1846 in West Colton, Calif., tragically lost a brother on Sept. 8, and a fundraiser has been established to help his family in this inexplicably difficult time. 

Zachery Lara

Conductor Zachery “Zach” Lara, 25, and his engineer Steven Brown were in helper service assisting a train up a grade. When they made a reverse move into Bertram siding to put their engine away, the crew had a head-on collision with cars that were in the siding. 

This heartbreaking accident has taken a friend and co-worker away from many of us, but the loss is being especially felt by his father Jeff Lara (Local 1422, Los Angeles), and his brother, Kevin Lara (Local 1813, West Colton, Calif.), who, like Zach, work for Union Pacific Railroad. 

The Lara family has given much to the railroad, and now it is our turn to give back. Please consider donating in honor of Zach and read the tribute to him written by brother Kevin Lara.

SMART-TD extends our deepest condolences to the Lara family, the Brown family, local 1846 and to all who knew both men.

Follow the link to view Brother Lara’s official obituary and to leave condolences for the family.

Follow this link to donate to Brother Lara’s GoFundMe page.

Members in Local 1263 (Valdosta, Ga.) are in mourning after their Local Chairperson Richard G. Keen Jr., 36, was killed in a car accident caused by a drunk driver Saturday, Sept. 10 while on his way home from work as an engineer at Norfolk Southern.

A member of SMART-TD since 2007, Keen became active in his union when he was elected local chairperson in 2015, a position he still held. He also served his local as local alt. legislative rep. (2016 – present), S&T (2018 – 2020) and as alternate delegate for the 2019 convention.

“Richard was a valued member of our union and a strong leader,” wrote Georgia State Legislative Director Matt Campbell. “He believed in doing what was right and holding the railroad accountable for their actions. But more than all that, Richard was a good man, he was funny, and he was a loyal friend. I am so thankful that I knew this man. He will be so missed by all of us.”

GCA-898 General Chairperson Tom Gholson wrote in an email: “As many of you may not have known him, I can assure each of you that didn’t, when you met him you would like him and find something in common. While he was local chairman of Local 1263 he helped rebuild many of the past relationships that were tarnished by old union politics. He placed the membership foremost in priority and was selfless with his work as secretary and treasurer and local chairman. While his body will no longer be with us, the memories we shared together will live on in the meetings to come.”

In his spare time, Keen loved spending time with his children, fishing and working on cars. He loved to help people and could always make them laugh.

Keen is survived by his wife, Mechelle Keen; children Kaleb, Emerson and Harper Keen; father Richard Keen Sr.; mother Bernice Moore; sisters Heather Campbell and Brooke Rowan; Brothers Amy Brad Rowan and Josh Rowan; grandmother Gail Reed; and his in-laws. He also leaves behind his best friends and mentors Patrick Folsom (1st GCA vice chairperson for NS GO 898), Richard Parry and James Warren. He was predeceased by his paternal grandparents Carolyn Cowart and George Keen; and his maternal grandfather Robert Reed.

A visitation will be held Thursday, September 15 from 12 – 2 p.m. at the Warren Funeral Services of Quitman Chapel, 100 S. Second St., Quitman, GA 31643. A funeral service will immediately follow at 2 p.m., followed by interment at Riverview Memorial Gardens Cemetery, Valdosta, Ga.

A GoFundMe has been established by Patrick Folsom to support the family. Folsom is also accepting checks or money orders and will deliver them to Keen’s wife. Please mail checks to Patrick Folsom, 3330 Empress Road, Quitman, GA 31643.

Follow this link to leave condolences for the family or to read the official obituary.

Follow this link to make an online donation.

SMART-TD offers our heartfelt condolences to Keen’s family, friends, Local 1263 and all who knew him.

The governor of Kansas Laura Kelly (D) recently demonstrated her support for SMART-TD members and their safety by submitting comments to the Federal Railroad Administration (FRA) in support of a national two-person crew regulation.

Pictured in the governor’s office in April, left to right: Senator Carolyn McGinn (R); Mike Scheerer, LR Local 94; Troy Fansher, Local 1503; Governor Laura Kelly (seated); Nick Davis, Local 527; Ty Dragoo, SLD Kansas; Chad Henton, ASLD Kansas; Kyle Brooks, Local 1503.

“I am pleased to announce that Governor Kelly has joined our fight at the federal level,” Kansas State Legislative Director Ty Dragoo said. “We asked her to support our efforts with the proposed rulemaking by issuing comments from the state of Kansas, and she has shown once again that she is with rail labor.”

“As Governor of the state of Kansas, I directed my Department of Transportation to submit a proposed regulation requiring railroads that operate in the state to maintain a two-person crew in the controlling cab of the lead locomotive unit of each train. I believed that this was a needed step to preserve safe operation of the rail industry in Kansas. Having one person responsible for an 18,000+ ton train hauling hazardous materials jeopardizes the safety of our crews and the public at large,” Governor Kelly wrote in her comments.

Not only did Gov. Kelly write in support of two-person crews, she also cited instances of when two-person crews were necessary to protect her state during derailments and pointed out that as two persons currently operate trains on nearly all railroads in the state, no additional costs would be incurred by the regulation.

Follow this link to read Gov. Kelly’s full comments.

If you have not yet submitted your comments in support of a two-person crew regulation to the FRA, follow this link to do so now.

Follow this link to read the proposed rule.

The following is a joint statement from SMART TD President Jeremy Ferguson and BLET President Dennis Pierce:

CLEVELAND, Ohio, August 27, 2022 — On Monday, August 22, the SMART TD and BLET, along with the other remaining United Rail Unions, met with the Rail Carriers via Zoom to determine if PEB 250’s recommendations could serve as a basis for a tentative agreement. In-person meetings were then held on Thursday and Friday in Chicago, Illinois. Unfortunately, the meetings did not result in any tentative agreement language that operating crafts would accept, or that could be presented to our members for ratification.

Although no tentative agreement was reached this week, SMART TD and BLET remain committed to negotiating over issues that are most important to our members, including wages, quality of life, and attendance as well as voluntary time off issues. In addition to those issues, we are seeking clarification on certain aspects of PEB 250’s recommendations concerning health and welfare.

We will continue to keep our members updated as the cooling-off period countdown clock to 12:01 a.m. (eastern time) on September 16th approaches. Our goal is and always has been to reach a voluntary agreement that is worthy of our membership’s consideration. As we approach the final stages of the steps of the Railway Labor Act, we appreciate our members’ continued support. We have made it abundantly clear to the Carriers that we are prepared and willing to exercise every legal option available to us, to achieve the compensation and working conditions that we and our families rightfully expect and deserve.