Railroad Retirement


The Railroad Retirement System is a federally managed program providing benefits to about one million retired railroad workers and surviving spouses. The system is financed through employer and employee contributions to a trust fund, and the benefits are coordinated with the Social Security system. The Railroad Retirement and Survivors’ Improvement Act of 2001 provided for the transfer of funds from railroad retirement accounts to a new National Railroad Retirement Investment Trust, whose independent board of seven trustees is empowered to invest trust assets in debt instruments (government securities and nongovernmental debt) and common stock.

Railroad Retirement: Policy

Financial health

In this policy: Federal

AARP recognizes that the financial health of the Railroad Retirement System has improved. However, its financial status needs careful monitoring so necessary adjustments can be made.