2017 RRB "Love Letter"

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2017 RRB "Love Letter"

Postby Gilbert B Norman » Thu Dec 29, 2016 2:33 pm

Hear ye, hear ye, all Railroad Retirement annuitants.

Tier I will go up .03% (that's three tenths of one percent); Tier II by .01%.

But guess what; Medicare Part B is also going up - .03% to a max of $134/mo.

Some who just retired and to whom Tier II represents a greater portion of their monthly annuity than those who did so a while back could be looking at a monthly decrease.

Happy New Year from your friendly Railroad Retirement Board. :( :(
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Re: 2017 RRB "Love Letter"

Postby COEN77 » Sat Dec 31, 2016 10:24 am

LOL! After my Medicare Part B increased and the .03% increase to Tier I & .01% increase to Tier II made my tax rate increase I ended up with $2.16. I hope I don't spend it all in one place. Let's not forget the past few years without any increase.
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Re: 2017 RRB "Love Letter"

Postby truck6018 » Mon Jan 02, 2017 12:49 pm

For those of us working our Tiers went up for 2017.

Although the tax rates are the same, Tier I maximum earnings subject to tax increased from $118,500 to $127,200 (out of pocket $7,347 to $7,886). Tier II maximum from $88,200 to $94,500 (out of pocket $4,322 to $4,630).
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Re: 2017 RRB "Love Letter"

Postby Gilbert B Norman » Mon Jan 02, 2017 4:14 pm

I wonder when someone on The Board might start asking why Tier II, which is supposedly tied to gains within the private sector's equity markets, go up only .01% when the S&P during 2016 was up 9.50%.

Just think; what if the Tier II "ostensible Trust Fund" was slapped into anybody's S&P 500 Index Fund (mine is with State Street's "Spider" SPY)?
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Re: 2017 RRB "Love Letter"

Postby COEN77 » Tue Jan 03, 2017 10:29 am

Gilbert B Norman wrote:I wonder when someone on The Board might start asking why Tier II, which is supposedly tied to gains within the private sector's equity markets, go up only .01% when the S&P during 2016 was up 9.50%.

Just think; what if the Tier II "ostensible Trust Fund" was slapped into anybody's S&P 500 Index Fund (mine is with State Street's "Spider" SPY)?

That is a good question. Seeing only the Tier I which is our equivalent to Social Security is subject to the same increase even that got a .03%. The Tier II is our pension. If it's tied to the private sector equity market it definitely was up way more than .01%. I didn't get any notification of any increase from RRB till the last week of 2016. The Tier II should be at least based on an average for the year. 2016 started out slow then it was mediocre then ended up big, rounding it out it's more than .01%. RRB survived the mass downsizing of the '50s thru the '90s and it's still solvent. It's not based on the so-called Baby Boomer crisis that Congress cries about with Social Security & Medicare. Railroads still hire a new generation to replace the older one.
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