[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5483 Referred in Senate (RFS)]

  2d Session
                                H. R. 5483


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                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2006

                                Received

                           November 13, 2006

 Read twice and referred to the Committee on Health, Education, Labor, 
                              and Pensions

_______________________________________________________________________

                                 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' 
        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.

            Passed the House of Representatives September 27, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.