How Much of My Railroad Retirement is my Ex-Spouse Entitled to?
Tier 1 Tier 2 Video Spouse Annuity Financial PlanningWelcome everyone to another edition of the Highball Advisors Railroad Retirement Mailbag. My name is John McNamara of Highball Advisors, and today's question comes from BG. He says, "I retired after 30 years as a railroad conductor. I worked for Amtrak for eight years and finished up on Metro North as a conductor. I'm divorced as of August 2012 after being married for 18 years. From my understanding, is my ex-wife entitled to a monthly Railroad Retirement Board check? If it doesn't come out of my pocket, how much does she get?"
First of all, congratulations on your 30 years of service, and I'm sorry to hear about the divorce. Here's how it works:
- Since you were married for at least 10 years, your ex-wife is eligible for a divorced spousal annuity.
- This annuity does not reduce your benefits; she will receive an amount equal to half of your Tier One benefit.
- This amount is not deducted from what you receive; it is based on the calculation of the annuity rate.
- The Tier Two portion is considered a divisible asset and should have been addressed in your divorce decree.
For more details, check out my video on divorce and railroad retirement, which covers these issues in depth.
I hope you found this video helpful. Feel free to send in your questions, and I'll make a video to answer them. Until next time, stay safe, stay on track, and take care. So long, everybody. Bye!
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