Will My Railroad Retirement be Affected by Working for the FAA?

Will Taking a Job with the FAA Affect Your Railroad Retirement?

A common question among railroad employees is what happens to their Railroad Retirement benefits if they leave the railroad industry for another career.

One viewer recently asked:

"I have 22 years with the railroad and I'm looking to get a job with the FAA. How will that affect my Railroad Retirement?"

The good news is that, in this situation, your Railroad Retirement benefits are generally well protected.

You're Already Vested in Railroad Retirement

Because you have 22 years of railroad service, you've already exceeded the minimum five years of service required to become vested in the Railroad Retirement system. That means you've earned eligibility for a Railroad Retirement annuity based on your years of covered railroad employment.

Leaving the railroad for another job does not erase the service credit you've already earned.

What About Your Current Connection?

Many railroad employees are more concerned about maintaining their current connection to the railroad.

A current connection is an important requirement for certain Railroad Retirement benefits, particularly survivor benefits. In many cases, taking employment outside the railroad industry can break your current connection, which may affect survivor annuity eligibility.

Why an FAA Job Is Different

If your new job is with the Federal Aviation Administration (FAA), you're in a unique situation.

The FAA is part of the U.S. Department of Transportation, and employment with the Department of Transportation falls under an exception that allows you to maintain your current connection for Railroad Retirement purposes.

In other words, even though you're no longer working for a railroad, your employment with the Department of Transportation generally does not jeopardize your current connection.

The Bottom Line

If you have 22 years of railroad service and accept a position with the FAA:

• Your Railroad Retirement benefits remain vested.
• Your years of railroad service stay on your record.
• Your employment with the U.S. Department of Transportation generally allows you to maintain your current connection, helping preserve eligibility for survivor benefits.

Because Railroad Retirement rules can be complex and individual circumstances vary, it's always a good idea to review your specific situation before making a career change.

If you have a question about Railroad Retirement, retirement planning, or how a career move may affect your benefits, consider consulting a qualified Railroad Retirement professional before making your decision.

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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.