PUBLIC LAW 109–478—JAN. 12, 2007 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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. 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 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’

45 USC 231a.

45 USC 231t

note.

Railroad

Retirement

Disability

Earnings Act.

Jan. 12, 2007

[H.R. 5483]

120 STAT. 3574 PUBLIC LAW 109–478—JAN. 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.

Æ

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.