Railroad Retirement reminders for 2003

2003 Tier I Earnings Base and Tax Rate

$87,000 - Annual Maximum

6.20% - Employee and Employer Tax Rate

$5,394.00 - Maximum Employee and

Employer Tax

 

2003 Tier II Earnings Base and Tax Rates

$64,500 - Annual Maximum

4.90% - Employee Tax Rate

$3,160.50 - Maximum Employee Tax

14.20% - Employer Tax Rate

$9,159.00 - Maximum Employer Tax

 

2003 Medicare Hospital Insurance

Earnings Base and Tax Rate

Annual Maximum - No Limit

1.45% - Employee and Employer Tax Rate

 

Total Tier I, Tier II, & Medicare Hospital Insurance Maximum Tax

Based on Earnings of $87,000

Employees - $ 9,816.00

Employers - $15,814.50

(Additional Taxes are 1.45% of Earnings in Excess of $87,000)

 

Amount Needed for Quarter of Social Security Coverage

$890.00 in 2003 (Up to 4)

 

2003 Employer RUIA Tax Rate

3.15% - 12% on First $1120 Per Month

 

Employee RUIA 2002 Qualifying Earnings

$2,750.00 - For Benefit Year 2003

(Beginning July 1, 2003)

 

RUIA Daily Benefit Rate

$55 - For Benefit Year 2003

(Beginning July 1, 2003)

 

Work Deduction Exempt Amounts

Full retirement age (FRA) (for months prior to FRA in the calendar year):

· Annual - $30,720

· Monthly - $2,560

($1 Deduction for Each $3 of Excess Earnings)

 

Work Deduction Exempt Amounts

Under FRA:

· Annual - $11,520

· Monthly - $960

($1 Deduction for Each $2 of Excess Earnings)

 

Basic Medicare Premium

$58.70

 

Cost-Of-Living Increase, December 2002

Tier 1 - 1.4%

Tier 2 - 0.5%

 

© 2003 Brotherhood of Locomotive Engineers