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