Railroad Retirement Disability Earnings Act

(This measure has not been amended since it was introduced. The expanded summary of the House reported version is repeated here.)

Railroad Retirement Disability Earnings Act - Amends the Railroad Retirement Act of 1974 to replace the $400 in earnings limit that an individual under retirement age can earn while continuing to receive an annuity due to a disabling permanent physical or mental condition with a monthly allowable earning. Replaces the $4,800 in earnings limit that such an individual can earn while continuing to receive such an annuity with an annual earning limitation computed by totaling the monthly allowable earning for each month of the year. Sets forth a calculation for determining payment of the annuity if the annual earning exceeds the annual allowable earning. Sets the monthly allowable earning at $700 and for years after 2007 as the larger of the amount for the previous year or the amount calculated using a formula based on the national average wage index.

[109th Congress Public Law 478]
[From the U.S. Government Publishing Office]


[DOCID: f:publ478.109]

[[Page 120 STAT. 3573]]

Public Law 109-478
109th Congress

                                 An Act


 
    To increase the disability earning limitation under the Railroad 
Retirement Act and to index the amount of allowable earnings consistent 
 with increases in the substantial gainful activity dollar amount under 
    the Social Security Act. <<NOTE: Jan. 12, 2007 -  [H.R. 5483]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Railroad 
Retirement Disability Earnings Act.>> 
SECTION 1. <<NOTE: 45 USC 231t note.>> SHORT TITLE.

    This Act may be cited as the ``Railroad Retirement Disability 
Earnings Act''.
SEC. 2. REFORM OF DISABILITY EARNINGS LIMITATION PROVISIONS.

    (a) In General.--Section 2(e)(4) of the Railroad Retirement Act of 
1974 <<NOTE: 45 USC 231a.>> is amended--
            (1) by striking ``$400 in earnings'' in the first sentence 
        and inserting ``the monthly allowable earnings as defined in the 
        section'';
            (2) by striking ``$4,800'' in the fourth sentence and 
        inserting ``the amount of earnings computed by totaling the 
        monthly allowable earnings as determined under this section for 
        each month in the year''; and
            (3) by striking the fifth sentence and inserting ``If the 
        total amount of such individual's earnings during such year 
        (exclusive of earnings for services as described in subdivision 
        (3) and after deduction of disability related work expenses) is 
        in excess of the annual allowable earnings amount, the number of 
        months in such year with respect to which an annuity is not 
        payable by reason of the first and third sentences shall not 
        exceed the number of months derived by dividing the amount by 
        which such annual earnings exceed the annual allowable earnings 
        amount by the monthly allowable earning amount determined under 
        this section. If the computation under the preceding sentence 
        results in a remainder greater than or equal to one-half, the 
        number of months for which an annuity is not payable as 
        determined under the preceding sentence shall be increased by 
        one. The annual allowable earnings amount shall be computed by 
        totaling the amount of monthly allowable earnings as determined 
        under the first sentence of this subdivision for each month in 
        the calender year. If the amount of the individual's annuity has 
        changed during the calendar year, any payment of annuities which 
        become payable solely by reason of the limitations in the 
        preceding three sentences shall be made first with respect to 
        the month or months for which the annuity is larger. For 
        purposes of this subdivision, `the monthly allowable earnings'

[[Page 120 STAT. 3574]]

        shall be $700, except that for each year after 2007, `the 
        monthly allowable earnings' amount shall be the larger of the 
        amount for the previous year or the amount calculated by 
        multiplying $700 by the ratio of the national average wage index 
        for the year 2 calender years before the year for which the 
        amount is being calculated to the national average wage index 
        for the year 2005. The amount so computed will be rounded to the 
        next higher multiple of $10 where such amount is a multiple of 
        $5 but not of $10 and to the nearest multiple of $10 in any 
        other case.''.

    (b) Effective Date.--The amendments made by this section take effect 
January 1, 2007.

    Approved January 12, 2007.

LEGISLATIVE HISTORY--H.R. 5483:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-669 (Comm. on Transportation and Infrastructure).
CONGRESSIONAL RECORD, Vol. 152 (2006):
            Sept. 27, considered and passed House.
            Dec. 8, considered and passed Senate.

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