Benefits of Disability
Larry Romine said," I occasionally get phone calls that result in large changes in rails lives. This is a recap of one of my benefit consults.
Arthur was having issues with PTSD while driving. He was getting very close to being fired for absenteeism. Arthur had just two questions for me.
When could he start drawing his RRB Retirement?
I asked his age and years of service. He had just turned 60 and had 22 years of service.
I told Arthur that he would have to wait until he was 62 before he could get any RRB Retirement benefits.
Arthur asked if he could just resign and get his money when he turned 62? I answered yes.
Arthur thanked me and was ready to end the conversation, his plan set. I was not ready to end the call. Yes, I am nosy and I want to know all about a member so I can point out any benefits that might be missed out on.
I asked Arthur, WHY do you want to stop working? Arthur states he has PTSD. I ask where it came from. He answered he has always had PTSD, but it really got going while he was in the military.
Next question was, Do you have a partial disability from the military? Yes, he has 60% and he is working with doctors on his issues. His disability is for hearing and for the Pac Act for the burn pits, along with PTSD.
I asked if he had ever considered going for a disability? He had not. So I explained how it works and what he could get.
Walking away and quitting the Railroad would end his insurance benefits instantly. No RRB Sickness or Unemployment. All benefits would cease.
Going out on a Medical Leave Of Absence, His Iron Road Health Insurance would continue for 30 months, the last 24 at $100 a month. Sickness benefits for 6 months and then another 9 months from the RRB. The possibility (about 95%) that he gets a disability, where he would be paid at 100% of his retirement starting in 6 months, instead of waiting until age 62 at 70%. And yes, it does take an average of 460 days from the time you apply till a rail is approved.
Arthur had brightened considerably since the start of our conversation. I tell him how to get disabled and what I can do to help him. I could hear the change in his voice. A way forward, without losing a huge amount of his retirement benefits. He was on board!!
The process is that he talks to his doctor about his issues. Tell him that he is about to lose his job because he cannot make it to work. If the doctor is on board, then call the RRB and apply for an Occupational disability. Since he has over 120 months of service (240 if he was under 60) and the backing of a medical professional, his chances of getting a disability are highly likely.
Arthur will receive a packet from the RRB to fill out. He can hire me to help him and we can get it done in about 2 hours. The only thing I charge GO-953 members for is to fill out Disability papers for a flat $200. Or Arthur can fill out the paperwork himself.
Our 15 minute discussion will add the following to Arthur's exit plan.
Insurance - 30 months of very low cost insurance saving him $25,000+. With the possibility that he may get early Medicare in 29 months, instead of at age 65.
RRB Sickness benefits at $2,000 a month for 5 months, total of $10,000.
When he gets his disability, it will pay him his full retirement with no age reduction for 18 months, or $4500 x 18 = $81,000, till age 62.
Then the difference in a full Disability /Retirement of $4500 vs an age reduced Retirement of $3000. So $1,500 for 250 months (actuarial tables state Arthur will live until 82), for $375,000.
For an additional total of about $485,000 in benefits, if Arthur leaves the UP the way I pointed out to him, rather than his plan of just walking away.
Each rail has a different situation. No two rail workers will leave the Railroad in the same way. When you start to wonder about your end game with the railroad, reach out to a professional to see what is available.
Rail benefit consultations are free to GO-953 members. Spouses are always invited to consultations. "
Fraternally,
Larry Romine
Reliable Retirement Solutions
541-910-4568
