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 $730 From Any Work (After Deduction of Disability-Related Expenses)
Your annuity cannot be paid for any month you do any work and earn over $730
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 $730 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 $730 after deduction of disability related work
expenses.
End-of-the-Year Adjustment. If your annuity was adjusted because you reported
earnings of over $730 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 $9,125 after deduction
of disability-related work expenses.
- If you earned $9,125 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 $730 that you earned over $8,760.
(Fractions of $365 or more are counted as $730.)
- 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 $940 per month. 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 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. |