After tier I amounts are first paid, they increase annually with a cost-of-living adjustment (COLA) in the same manner as Social Security benefits. Railroad Retirement and Survivors' Improvement Act of 2001

The Railroad Retirement and Survivors' Improvement Act of 2001 ( P.L. The 2001 law increased initial annuities for the widow(er)s of qualifying railroad employees. The 2001 law added a supplemental guaranty amount , initially set at 50% of the employee's tier II amount, to the amounts provided under prior law. Since the COLA increase and the guaranty reduction are equal, the total amount of a widow(er)'s monthly annuity will not change for several years. Higher Widow and Widower Annuities After the 2001 Law

All widow(er)s who are eligible to receive the initial minimum amount provided by the 2001 law receive annuities that are greater than or equal to the annuities they would have received under prior law. For example, in 2012, her annuity would be $1,323 under both current law and prior law.
The Railroad Retirement and Survivors' Improvement Act of 2001 (P.L. 107-90) increased monthly annuities for many Railroad Retirement Board (RRB) widow and widower beneficiaries. The legislation added a guaranty amount—a temporary supplemental payment—to the initial annuities, making them greater than previously. However, the legislation also provided that the monthly annuities would not increase with annual cost-of-living adjustments (COLAs) while guaranty amounts are paid, in effect keeping them constant for several years.
The rules for widow(er) annuities are a source of confusion among RRB beneficiaries. Many believe they are worse off after the 2001 law. However, all widow(er)s who are eligible to receive the initial minimum amount provided by the 2001 law receive an annuity that is greater than or equal to the annuity they would have received under the prior law. This report explains the provisions of the 2001 law that affect widow(er) annuities and provides an illustration of the annuities under both prior law and current law. The report will not be updated.