49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–669 

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 


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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. 


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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). 


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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 ø$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 otherVerDate Aug 31 2005 22:27 Sep 20, 2006 Jkt 049006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR669.XXX HR669

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wise 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 

ø$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. øIf 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 


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is a multiple of $5 but not of $10 and to the nearest multiple of $10 

in any other case. 

* * * * * * * 

Æ 


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