How Work Affects Your Disability Annuity 

WORK IN THE RAILROAD INDUSTRY—Your annuity cannot be paid when you work for a railroad or other employer 

in the railroad industry. 

EARNINGS OF MORE THAN $1,210 (AFTER DEDUCTION OF DISABILITY-RELATED EXPENSES) FROM ANY 

WORK—Your annuity cannot be paid for any month you do any work and earn over $1,210 after deduction of 

disability-related work expenses. This earnings restriction applies until the month you reach full retirement age. 

Earnings. This includes wages before payroll deductions, commissions, and other payments for work (such as 

room and board) and earnings from self-employment. 

Disability-Related Work Expenses. These are special expenses that you pay which are necessary in order for you 

to work (for example, prescription medications, medical services, attendant care, medical devices, equipment, 

prosthesis, or similar items or services). These expenses may be deductible from your monthly earnings. If you 

wish to deduct such expenses from your earnings, please contact the nearest office of the Railroad Retirement 

Board. 

Penalties for Late Reports. If you earn over $1,210 after deduction of disability-related work expenses a month and 

do not report it to us within two months, you will be penalized. In addition to withholding your monthly annuity, 

these penalties will apply: 

● The first time that you report late, the penalty is one month’s annuity. 

● The second time that you report late, the penalty is one month’s annuity for each month you earned over 

$1,210 after deduction of disability-related work expenses. 

End-of-the-Year Adjustment. If your annuity was adjusted because you reported earnings of over $1,210 after 

deduction of disability-related work expenses, we will send you a form on which to report your earnings. Annuity 

payments that have been withheld will be paid if you earned less than $15,125 after deduction of disability-related 

work expenses. ($15,125 is $1,210 x 12 months + 50% of $1,210) 

● If you earned $15,125 or more after deduction of disability-related work expenses, you will not be entitled 

to an annuity for some months; the number depends on how much you earned. 

● You will lose one month’s annuity for each $1,210 that you earned over $14,520 ($1,210 x 12 months). 

(Fractions of $605 or more are counted as $1,210.) 

● Penalties for late reports apply to end-of-year adjustments. 

WORK FOR YOUR LAST NONRAILROAD EMPLOYER—Your Tier II and supplemental annuity, if any, are subject to 

deductions for earnings from your last nonrailroad employer. The deduction is $1 for each $2 in earnings not to 

exceed 50% of these components. 

SUBSTANTIAL GAINFUL ACTIVITY—Substantial gainful activity is (in general) work which results in earnings of over 

$1,550 per month if not blind ($2,590 if blind). It also refers to work activity involving the performance of significant 

physical or mental duties, or a combination of both, which are productive in nature. If you work and are receiving an 

annuity based on total and permanent disability, or if you have a disability freeze or early Medicare, you may be 

subject to a finding of substantial gainful activity. 

RECOVERY FROM DISABILITY—Your annuity payments and your period of disability (disability freeze) may be 

terminated if, before you reach full retirement age, you recover from the disability on which your annuity was based or, 

you engage in substantial gainful activity. When a disability freeze is terminated, your Medicare coverage, if before full 

retirement age, will terminate. In addition, the amount of any increase in your annuity because of the disability freeze 

will no longer be payable. 

U.S. Railroad Retirement Board Form AB-31 (12-23) 

844 North Rush Street 

Chicago IL 60611-1275 

Toll-Free Number: 1-877-772-5772 

TTY: 1-312-751-4701 

www.rrb.gov