Railroad Retirement.

 

Railroad Teammates and their employers participate in the Railroad Retirement system and, by law, pay Railroad Retirement taxes instead of Social Security (FICA) taxes.Brightline currently participates in the Railroad Retirement system.

 

The Railroad Retirement tax structure consists of two components:
Tier I: Teammates and employers each contribute at a rate of 6.2% which is equivalent to Social Security taxes under FICA.
Tier II: Teammates contribute 4.9%, while employers contribute 13.10%.
As a result, Brightline contributes an additional 13.10% toward Railroad Retirement benefits beyond what would typically be paid under the Social Security system.

Teammates who become vested in Railroad Retirement, generally through five years of creditable railroad service after 1995 or 10 years of railroad service at any time, will be eligible to receive an annuity administered by the Railroad Retirement Board (RRB) upon retirement.

For Teammates who leave railroad employment before meeting vesting requirements, their Tier I railroad service credits are transferred to the Social Security Administration and treated as Social Security-covered credits. Any future retirement benefits would then be calculated by the Social Security Administration using both railroad and Social Security earnings history, as applicable.