TN 8 (02-17)

GN 05002.100 Railroad Certification Cases

A. Background on Railroad Retirement certification cases

The Internal Revenue Code also provides for taxation of Tier 1 Railroad Retirement Benefits under the same rules that apply to SSA benefits.

The Railroad Retirement Board (RRB) issues a Form RRB-1099 as a benefit statement. Tier 2 Railroad Benefits are also subject to tax as pensions and are reported on Form 1099R. When both benefits are payable, the forms are issued together.

SSA issues SSA-1099s for -title II cases where the RRB certifies payment. This information is found under code “LAF-E” on the PHUS.

B. Process for handling railroad retirement certification cases

The process for handling inquiries from beneficiaries whose payments were certified by the RRB is explained in this section.

1. FO handling

When the beneficiary alleges the benefit statement is incorrect, FO staff or an 800 Number Agent refers the case to the appropriate PSC (see GN 05002.046 for how to refer).

2. PSC handling

The PSC processes RRB certified payment cases through the normal PSC process. The PSC technician gives these cases the highest priority because the tax computation information is needed timely.

  1. Try to answer the inquiry without the folder, whenever possible.

  2. If you cannot answer the inquiry without the folder, associate the inquiry with the folder.

  3. If you need additional information from RRB, complete a Dual SSA/RRB SSA-1099 and 1042S Worksheet at GN 05002.310.

    Complete Parts I and III in all cases. Annotate items that do not apply with “N/A”.

    SM 00630.040E Process - Building the SSA-1099/1042S Remarks - explains how the PHUS event codes determine the amounts shown on the benefit statement. This procedure provides the guidelines for technicians in calculating the amounts shown on the benefit statement. The Dual SSA/RRB SSA-1099 and 1042S Worksheet has been formatted the same way. To build the benefit statement, both the MBR and PHUS records are used. PSC technicians use the following POMS references to determine the amount for each item in Part III:

    • Part III.A (Amount Withheld for Attorney Fees) - SM 00630.249 EVENT 049 LEGAL DED. Also, see SM 00630.040E.6.

    • Part III.B (Lump Sum Death Payment) - SM 00630.241 EVENT 041 LUMP SUM.

    • Part III.C (Voluntary Federal Income Tax Withheld) - SM 00630.350 through SM 00630.356.

    • Part III.D (Remittances Received - Cash, Money Order, or Personal Check) - SM 00630.219 EVENT 019 DIR REMT. Also, see SM 00630.040E.18.

    • Part III.E (Benefit Payment Offset – Treasury) - SM 00630.344 Event 144 RECUR T-BPO. Also, see SM 00630.343.

    • Part III.F (Total Amount Withheld Due to WC Offset) - SM 00630.221 EVENT 021 WORK COMP; SM 0630.227 EVENT 027 DELETE PWC; SM 00630.259 EVENT 059 PY1 WC; SM 00630.307 EVENT 107 PY2 WC; SM 00630.309 EVENT 109 PY3 WC; SM 00630.316 EVENT 116 WC FCPMT; SM 00630.317 EVENT 117 WC NWFCPMT; SM 00630.319 EVENT 119 PY4 WC; AND SM 00630.325 EVENT 125 OTY WC.

  4. The beneficiary is notified:

    • of SSA's need to contact RRB for additional information;

    • that a reply by telephone or mail will be forthcoming when a response from RRB is received; and

    • of the need to request an extension for filing his or her tax returns.

  5. Each PSC designates one individual as the RRB coordinator.

  6. Module personnel forward all completed Dual SSA/RRB SSA-1099 and 1042S Worksheets to the designated PSC RRB coordinator.

  7. After ensuring they have completed Parts I and III of the form, the PSC RRB coordinator can forward the worksheet to RRB via e-mail to request completion. In the body of the e-mail to RRB, technicians should provide the RRB claim number and the SSN/BIC to identify who the request is for. RRB staff will complete the worksheet and return it to SSA via email, using the RR-4 cover sheet. For retirement cases, e-mail the worksheet to: RBD-RetirementBenefitsDivision@rrb.gov. For survivor cases, email the worksheet to: SBD-SurvivorBenefitsDivisionGroupMailbox@rrb.gov.

  8. The RRB responds directly to the PSC RRB coordinator who makes the referral.

  9. The PSC will respond to the beneficiary's inquiry and, if necessary, correct the PHUS and issue a corrected benefit statement. NOTE: Because there may be a lag between when RRB pays and what the PHUS record shows, ensure that if any benefits were payable i