The Shrinking RRB Budget Effect on your Railroad Retirement

The Railroad Retirement Board (RRB) is facing budget cuts. How will this impact you? Welcome to another edition of the Highball Advisors Railroad Retirement Whiteboard. I'm John McNamara of Highball Advisors, and today I want to discuss the upcoming budget reductions at the RRB and how they will affect railroad retirees, disability applicants, and survivors.

In 2025, the RRB's budget is set to decrease by 21% compared to 2024. Originally requesting $172 million, the president proposed $134 million, and the House allocated $100 million. This reduction means fewer resources available than requested, leading to significant operational changes.

Here are some anticipated service cuts:

•    Longer wait times, potentially up to two to two and a half hours on hold when contacting them.

•    A reduced call answer rate of 30 to 35%, impacting responsiveness.

•    Possible closure of some RRB offices, affecting accessibility.

•    Extended processing times for applications, with disability claims reaching up to 18 months.

•    Delays in correcting application errors due to reduced staffing and resources.

•    Increased concerns about cybersecurity as budget constraints may limit investments in this area.

•    Suspension of RRB officials' travel, affecting seminars and outreach events.

These changes will require adjusting expectations and planning accordingly when interacting with the RRB. It's crucial to ensure applications are meticulously completed to minimize delays. Stay informed and prepared for these adjustments, as they are likely to persist until further changes occur.

If you found this information helpful, please subscribe to our channel and click the notification bell for updates. Until next time, stay informed, stay vigilant, and take care. Goodbye for now!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.