How is the public service pension reduction applied to railroad retirement spouse or widow(er)s' annuities?

For spouses and widow(er)s subject to the public service pension reduction, the tier I reduction is, under current law, equal to 2/3 of the amount of the public pension. The amount of the public service pension is the current gross amount, before any deductions for income tax withholding, Medicare premiums, health insurance or other benefits. 3.

What is the background of the public service reduction in spouse and widow(er)s annuities and how does it affect such payments? The public service pension reduction in social security and railroad retirement spouse and widow(er)s benefits was brought about by 1977 social security legislation which also applied to the tier I benefits of railroad retirement spouses and widow(er)s. The tier I portion of a railroad retirement annuity is based on railroad retirement credits and any social security credits an employee has acquired.

It is computed under social security formulas and approximates what social security would pay if railroad work were ...

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