Railroad retirees will see their monthly annuities climb in January, with the average regular employee annuity rising $106 to $3,761, according to the Railroad Retirement Board. Couples where both spouses draw benefits will average $5,407, up $149.
Not everyone gets the raise. A large share of widows and widowers on the rolls will see no cost-of-living increase at all, and some retirees will find that a Social Security raise cancels out part of the railroad one.
The January 2027 increase from the Railroad Retirement Board
Railroad retirement annuities have two main parts, and they rise by different amounts. Tier I, which works like a Social Security benefit, goes up 3.6% in January 2027, matching the rise in the consumer price index, the RRB said in its 2027 benefit increase release. Tier II, the part tied to railroad service, rises 1.2%, which equals 32.5% of the price increase.
A year earlier, in January 2026, tier I rose 2.8% and tier II rose 0.9%. The 3.6% tier I figure is the same cost-of-living increase the Social Security Administration announced on October 14 for 76 million Social Security and SSI recipients.
Two agencies, two deposits: A railroad retiree who also draws Social Security will see the January change arrive through the RRB and through the Social Security Administration, and either deposit can come in late or not at all. The first-24-hours plan for a late or missing payment in The Social Security Check Protection Kit sets out the calls and records for a Social Security payment that does not show up.
Average railroad annuities after the January change
The RRB gave these average monthly amounts for January 2027:
- Regular employee annuity: $3,761, up $106.
- Employee and spouse combined: $5,407, up $149.
- Aged widows and widowers eligible for the increase: $2,218, up $67.
For example, a retired railroad worker receiving about $3,655 a month in 2026, close to the current average, would land near $3,761 in January if the annuity follows the average change. Actual increases vary because each annuity has a different mix of tier I and tier II.
The same math applies to the other averages. For couples, the combined average moves from about $5,258 to $5,407, and for aged widows and widowers who qualify for the raise, from about $2,151 to $2,218. Those starting points are the January 2027 averages minus the stated increases, because the release does not print the 2026 averages directly.
Who gets no railroad cost-of-living increase
About 29% of the widows and widowers the RRB pays receive their benefits under the Railroad Retirement and Survivors’ Improvement Act of 2001. Those survivors get no annual cost-of-living increase until their annuity amount passes what they would have received under the earlier law, counting the increases that would have applied in the meantime, the board said.
Two other payments do not change with prices at all: vested dual benefit payments and supplemental annuities. Retirees who receive either one will see those portions stay flat in January.
How a Social Security raise offsets tier I
Some railroad retirees also receive Social Security. For anyone who receives both, the Social Security cost-of-living increase offsets the increase in the tier I portion of the railroad annuity, according to the RRB.
That is the mistake most likely to throw off a household budget in January. A retiree who adds the full 3.6% tier I raise on top of a 3.6% Social Security raise will overestimate the total, because the two increases are not stacked dollar for dollar.
When the new rate notices arrive and how to reach the RRB
The board will mail notices to every annuitant in late December 2026 showing the January 2027 rate. The RRB says the letters can also be used to confirm eligibility for income-based government programs, which makes them worth keeping with other benefit records.
Questions go to the RRB’s toll-free line at (877) 772-5772, or (312) 751-4701 for TTY users. The board lists its headquarters at the William O. Lipinski Federal Building, 844 North Rush Street, Chicago. Retirees with online access can also manage benefits through the board’s myRRB portal. Social Security recipients who sign up for digital notices by November 18 can see their own 2027 amount online up to three weeks before the mailed notice, according to the Social Security Administration.
Railroad retirees with a Social Security check too
The RRB’s late-December letter sets the new annuity, but for retirees who also draw Social Security, part of the tier I raise is offset by the Social Security increase, and the two agencies pay on their own schedules. Keeping each agency’s notice, deposit date and amount side by side is the clearest way to see whether both January payments came in as stated.
The Social Security Check Protection Kit includes the 2026 payment calendar and a first-24-hours plan for a late or missing payment, for checking each Social Security deposit against its expected date.
See the first-24-hours plan in The Social Security Check Protection Kit.
This article was created with AI assistance and reviewed for accuracy against the Railroad Retirement Board’s 2027 benefit release and Social Security Administration announcements.
Nathaniel Cross focuses on retirement planning, employer benefits, and long-term income security. His writing covers pensions, social programs, investment vehicles, and strategies designed to protect financial independence later in life. At The Daily Overview, Nathaniel provides practical insight to help readers plan with confidence and foresight.
