Why You Don't Collect Social Security and Tier 1 Railroad Retirement at the Same Time

Railroad Retirement Mailbag: Can You Ask Social Security to Convert All Benefits Into Railroad Retirement Tier I?

Welcome back to another edition of the Highball Advisors Railroad Retirement Mailbag! Today’s question comes from James Q., who asks:

“Can a railroad retiree who is receiving both Social Security and Railroad Retirement Tier I call the Social Security Administration and request that all of his retirement benefits be paid as Railroad Retirement Tier I instead?”

This question highlights a common area of confusion, so let’s break it down clearly.

1. You can’t receive Railroad Retirement and Social Security at the same time

Railroad retirees are not allowed to collect both benefits separately. That would be considered “double dipping.” Instead, here’s what actually happens:

• Your Social Security-covered earnings are incorporated into the Tier I portion of your Railroad Retirement annuity.
• The Railroad Retirement Board (RRB) communicates directly with the Social Security Administration (SSA) to determine your Social Security earnings and calculate your Tier I benefit accordingly.

In other words, SSA already plays its role behind the scenes—you don’t receive two checks.

2. You would only contact Social Security in a specific situation

The only time a railroader would reach out to Social Security instead of relying on Tier I is if they are considering:

• Replacing their Tier I benefit with a straight Social Security benefit.

This applies mainly to railroad employees with:

• 10–20 years of railroad service, and
• exceptionally high Social Security earnings in their non-railroad years.

For a small number of retirees, the Social Security calculation might exceed their Tier I amount, making a switch worth evaluating.

3. Want deeper insight?

If you're in this group or just want to understand how Social Security interacts with Railroad Retirement, take a look at the video “Will My Social Security Benefit Result in a Railroad Retirement Overpayment?” It walks through examples and helps clarify where pitfalls can occur.

Thanks for stopping by the Mailbag! If you have questions about your own Railroad Retirement situation, feel free to send them in—I may feature them in a future post.

Until next time, stay safe, stay on track, and take care!

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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.