This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
11/13/2023
Most railroad retirement annuities, such as Social Security benefits, will increase in January 2024 due to a rise in the consumer price index (CPI) from third-quarter 2022 to the corresponding period of the current year, according to the U.S. Railroad Retirement Board (RRB).
Cost-of-living increases are calculated in both the Tier I and Tier II portions of a railroad retirement annuity. The Tier I portion, which includes Social Security benefits, will increase by 3.2% or the percentage of the CPI rise, RRB officials said in a press release.
The Tier II portion will go up by 1%, which is 32.5% of the CPI increase. Vested dual-benefit payments and supplemental annuities, also paid by the RRB, are not adjusted for the CPI change.
This follows an 8.7% increase in the Tier I portion and a 2.8% increase in the Tier II portion of railroad retirement annuities in January 2023.
In January 2024, the average regular railroad retirement employee annuity will increase $86 a month to $3,450 and the average of combined annuities for an employee and spouse will increase $120 a month to $4,980.
In late December the RRB will mail notices to all annuitants providing a breakdown of the annuity rates payable to them in January 2024. These letters can also be used throughout the year to confirm eligibility for various income-based government programs.