H. R. 5483

One Hundred Ninth Congress

of the

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Tuesday, 

the third day of January, two thousand and six 

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’ 
H. R. 5483—2

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.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.