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[House Report 109-669]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-669

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              RAILROAD RETIREMENT DISABILITY EARNINGS ACT

                                _______
                                

 September 19, 2006.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 5483]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5483) 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, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                       Purpose of the Legislation

    The bill amends the Railroad Retirement Act to increase the 
allowable outside earnings limit for persons receiving railroad 
retirement disability benefits from the present $400 per month 
to $700 per month, with future indexing for inflation.

                Background and Need for the Legislation

    H.R. 5483 was introduced by Mr. Young, Mr. Oberstar, Mr. 
LaTourette, and Ms. Brown on May 25, 2006. The principal 
rationale for the legislation was the fact that the existing 
outside earnings limit for railroad workers drawing railroad 
retirement disability benefits has not been increased in over a 
decade.

                       Summary of the Legislation

    The legislation amends Section 2(c)(4) of the Railroad 
Retirement Act of 1974 to increase the current fixed limit on 
outside earnings that railroad retirement disability 
beneficiaries may receive without reduction of disability 
benefits from the current $400 per month to $700 per month, 
with future indexing (based on the national wage index) to 
allow for inflation. The new earnings limit would take effect 
on January 1, 2007.

            Legislative History and Committee Consideration

    No hearings were held by the Committee on H.R. 5483. On 
July 19, 2006, the Committee met in open session and ordered 
H.R. 5483 favorably reported by voice vote.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each rollcall vote on a motion to 
report, and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. There 
were no rollcall votes regarding H.R. 5483.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the House of Representatives, the Committee's oversight 
findings and recommendations are reflected in this report.

                          Cost of Legislation

    Clause 3(d)(2) of rule XIII of the House of Representatives 
does not apply where a cost estimate and comparison prepared by 
the Director of the Congressional Budget Office under section 
401 of the Congressional Budget Act of 1974 has been timely 
submitted prior to the filing of the report and is included in 
the report. Such an estimate is included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the House of Representatives, and section 308(a) 
of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the House of Representatives, the performance 
goals and objectives of this legislation provide for minor 
increases in direct spending benefit payments (less than 
$500,000 annually) and no increased operating costs for the 
Railroad Retirement Board and the Railroad Retirement 
Investment Trust.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the House of Representatives and section 402 of 
the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for H.R. 5483 from the 
Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 15, 2006.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5483, the Railroad 
Retirement Disability Earnings Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Craig Meklir.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5483--Railroad Retirement Disability Earnings Act

    H.R. 5483 would amend the Railroad Retirement Act to 
increase--to $700 a month--the amount a disabled beneficiary 
can earn while still remaining eligible for a disability 
annuity. Under current law, disabled annuitants may earn up to 
$400 per month. CBO estimates that enacting H.R. 5483 would 
increase direct spending for railroad retirement benefits by 
less than $500,000 per year over the 2007-2016 period.
    Based on data provided by the Railroad Retirement Board, 
CBO estimates that few current or prospective beneficiaries 
would be affected by the change. Current recipients only 
infrequently have benefits withheld due to excess earnings. 
About 100 applicants annually are denied benefits because of 
excess earnings, and many of those workers have earnings that 
would exceed the new limit.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Craig Meklir. 
This estimate was approved by Robert A. Sunshine, Assistant 
Director for Budget Analysis Division.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the House of 
Representatives, committee reports on a bill or joint 
resolution of a public character must include a statement 
citing the specific powers granted to the Congress in the 
Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1994 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local or 
tribal law. The Committee states that H.R. 5483 does not 
preempt any state, local or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms or conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

            SECTION 2 OF THE RAILROAD RETIREMENT ACT OF 1974

  Sec. 2. (a) * * *

           *       *       *       *       *       *       *

  (e)(1) * * *

           *       *       *       *       *       *       *

  (4) No annuity under paragraph (iv) or (v) of subsection 
(a)(1) shall be paid to an individual with respect to any month 
in which the individual is under retirement age (as defined in 
section 216(l) of the Social Security Act) and is paid more 
than [$400 in earnings] the monthly allowable earnings as 
defined in the section (after deduction of disability related 
work expenses from employment or self-employment of any form: 
Provided, however, That for purposes of this subdivision, if a 
payment in any one calendar month is for accruals in more than 
one calendar month, such payment shall be deemed to have been 
paid in each of the months in which accrued to the extent 
accrued in such month. Any such individual under the retirement 
age (as defined in section 216(l) of the Social Security Act) 
shall report to the Board any such payment of earnings for such 
employment or self-employment before receipt and acceptance of 
an annuity for the second month following the month of such 
payment. A deduction shall be imposed, with respect to any such 
individual who fails to make such report, in the annuity or 
annuities otherwise due the individual, in an amount equal to 
the amount of the annuity for each month in which he is paid 
such earnings in such employment or self-employment, except 
that the first deduction imposed pursuant to the sentence shall 
in no case exceed an amount equal to the amount of the annuity 
otherwise due for the first month with respect to which the 
deduction is imposed. If pursuant to the first sentence of this 
subdivision an annuity was not paid to an individual with 
respect to one or more months in any calendar year, and it is 
subsequently established that the total amount of such 
individual's earnings during such year as determined in 
accordance with that sentence (but exclusive of earnings for 
services described in subdivision (3)) did not exceed [$4,800] 
the amount of earnings computed by totaling the monthly 
allowable earnings as determined under this section for each 
month in the year (after deduction of disability related work 
expenses), the annuity with respect to such month or months, 
and any deduction imposed by reason of the failure to report 
earnings for such month or months under the third sentence of 
this subdivision, shall then be payable. [If the total amount 
of such individual's earnings during such year (exclusive of 
earnings for services described in subdivision (3)) is in 
excess of $4,800 (after deduction of disability related work 
expenses), the number of months in such year with respect to 
which an annuity is not payable by reason of such first and 
third sentences shall not exceed one month for each $400 of 
such excess, treating the last $200 or more of such excess as 
$400; and if the amount of the annuity has changed during such 
year, any payments of annuities which become payable solely by 
reason of the limitations contained in this sentence shall be 
made first with respect to the month or months for which the 
annuity is larger.] 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'' 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.

           *       *       *       *       *       *       *

                                  
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