The
Railroad
Retirement Act provides disability annuities for railroaders who
become totally or occupationally disabled.
Medicare coverage before age 65 is also available for totally
disabled employees and those suffering from chronic kidney disease.
The following questions and answers describe these disability benefits,
their requirements, and how to apply for them.
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1. How do railroad retirement
provisions for total disability and occupational disability differ? |
A total disability annuity
is based on permanent disability for all employment and is
payable at any age to employees with at least 10 years of railroad
service, and under certain conditions to employees with five years of
service after 1995.
An occupational disability annuity is based on disability for the
employee’s regular railroad occupation and is payable at age 60 if
the employee has 10 years of service, or at any age if the employee has
at least 20 years of service. A “current connection with the railroad
industry” is also required for an occupational disability annuity. The
current connection requirement is normally met if the employee worked
for a railroad in at least 12 of the last 30 consecutive months
immediately preceding the annuity beginning date. |
2. Under what conditions can
disabled employees with five years of service be eligible for railroad
retirement disability annuities? |
Since passage of the
Railroad Retirement and Survivors’
Improvement Act of 2001, employees with five years of service
after 1995 may qualify for an annuity based on total and permanent,
but not occupational, disability if they have a disability insured
status under social security law. A disability insured status is
established when an employee has social security or railroad retirement
earnings credits in 20 calendar quarters in a period of 40 consecutive
quarters ending in or after the quarter in which the disability began.
Unlike the two-tier annuities payable to a 10-year employee, disability
annuities payable to five-year employees are initially limited to a tier
I social security equivalent benefit; a tier II benefit is not payable
in these cases until the employee attains age 62. And, the employee’s
tier II benefit will be reduced for early retirement in the same manner
as the tier II benefit of an employee who retired on the basis of age
rather than disability at age 62 with less than 30 years of service.
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3. How do the standards for total
disability and occupational disability differ? |
An employee is considered
to be totally disabled if medical evidence shows a permanent physical
and/or mental impairment preventing the performance of any regular and
gainful work. A condition is considered to be permanent if it has lasted
or may be expected to last for at least 12 months or result in death.
An employee is considered to be occupationally disabled if a physical
and/or mental impairment prevents the employee from performing the
duties of his or her regular railroad occupation, even though the
employee may be able to perform other kinds of work. An employee’s
regular occupation is generally that particular work he or she has
performed for hire in more calendar months than any other work during
the last five years; or that work which was performed for hire in at
least one-half of all the months in which the employee worked for hire
during the last 15 years. |
4. How does the amount of a
railroad retirement disability annuity compare to a social security
disability benefit? |
Disabled railroad workers retiring
directly from the railroad industry at the end of fiscal year 2001 were
awarded about $2,105 a month on the average, while awards for disabled
workers under social security averaged about $845. |
5. When is early Medicare coverage
available for the disabled? |
Medicare coverage before age 65
may begin after a totally disabled employee has been entitled to a
disability annuity for at least 24 months. The fact that an employee is
initially awarded an occupational disability annuity does not preclude
early Medicare coverage, if the employee’s physical and/or mental
condition is such that he or she is totally and permanently disabled.
Medicare coverage on the basis of kidney disease requiring dialysis or a
kidney transplant is available not only to employee annuitants, but also
to employees who have not retired but meet certain minimum service
requirements, as well as spouses and dependent children. For those
suffering from chronic kidney disease, coverage may begin with the third
month after dialysis treatment begins, or earlier under certain
conditions. |
6. Do the railroad retirement
disability annuity requirements include a waiting period similar to that
required for social security disability benefits? |
Yes. A five-month waiting period
beginning with the month after the month of the disability’s onset is
required before railroad retirement disability annuity payments can
begin. However, an applicant need not wait until this five-month period
is over to file for benefits.
Disabled employees should not, however, file for benefits while they are
still receiving compensation from their railroad employer. Compensation
includes payment for actual work performed, vacation pay, pay for time
lost, some wage continuation payments, or any other employer
compensation precluding the payment of railroad retirement benefits.
Employees receiving sickness benefits from the Board, however, need not
wait until these benefits are exhausted before filing for a disability
annuity. The Board adjusts payments for any benefit duplications at the
time a disability annuity is awarded. |
7. What documentation is required
when filing for a railroad retirement disability annuity? |
Employees filing for disability
annuities are required to submit medical evidence supporting their
claim. Applicants should be prepared to furnish dates of
hospitalization, names and dosages of medication, names of doctors, etc.
Applicants may also be asked to take special medical examinations given
by a doctor named by the Board. If a disability applicant is receiving
workers’ compensation or public disability benefits, notice of such
payments must be submitted.
Sources of medical evidence for railroad retirement disability purposes
include the applicant’s railroad employer, personal physician and
hospital, the Social Security Administration or the agency paying
workers’ compensation or public disability benefits. This evidence
generally should not be more than 12 months old. In addition, proof of
age and proof of any military service credit claimed and a description
of past work activity will also be required. |
8. What is the best way to apply
for a railroad retirement disability annuity or early Medicare coverage? |
Applications for railroad retirement
disability annuities are generally filed at one of the Board’s field
offices, or at one of the office’s Customer Outreach Program (CORP)
service locations, or by telephone and mail. However, applications by
rail employees for early Medicare coverage on the basis of kidney
disease have to be filed with an office of the Social Security
Administration, rather than the Railroad Retirement Board.
To expedite filing for a railroad retirement disability annuity,
disabled employees or a family member should call or write the nearest
Railroad Retirement Board field office to schedule an appointment. For
the appointment, claimants should bring in any medical evidence in their
possession and any medical records they can secure from their treating
physicians. Employees who are unable to personally visit a Board office
or meet a Board representative at a CORP service location may request
special assistance, such as having a Board representative come to a
hospital or the employee’s home. Board personnel assist disabled
employees with their applications and advise them on how to obtain any
additional medical evidence required or any other necessary documents or
records. |
9. Can an individual continue to
receive an employee disability annuity even if he or she does some work
after it begins? |
Any work or earnings by a disabled
annuitant may be considered an indication of an individual’s recovery
from disability, regardless of the amount. Therefore, any employment
must be reported promptly to avoid potential overpayments.
Special earnings rules apply to disability annuitants and they are more
stringent than those that apply to annuitants who have retired on the
basis of age and service. Disability annuities are not payable for any
month in which the annuitant earns more than $400 in any employment or
self-employment, exclusive of work-related expenses. Withheld payments
will be restored if earnings for the year are less than $5,000 after
deduction of disability-related work expenses. Otherwise, the annuity is
subject to a deduction of one month’s benefit for each multiple of $400
earned over $4,800 (the last $200 or more of earnings over $4,800 counts
as $400). Failure to report such earnings could involve a penalty charge
equal to no less than one month’s annuity, in addition to any
overpayment assessed.
These disability work restrictions cease upon a disabled employee
annuitant’s attainment of full retirement age (age 65 for those born
before 1938 to age 67 for those born in 1960 or later), when the
annuitant becomes subject to the work and earnings restrictions
applicable to employee annuities based on age and service. This
transition is effective no earlier than full retirement age, even if the
annuitant had 30 years of service. |
10. Does employment with a rail
labor organization affect eligibility for a disability annuity? |
Payment of an employee’s disability
annuity cannot begin earlier than the day after the employee stops
working in compensated service for any railroad employer, including
labor organizations. Such work includes service for more than $24.99
in a calendar month to a local lodge or division of a railway labor
organization. Also, work by a local lodge or division secretary
collecting insurance premiums, regardless of the amount of salary,
is railroad work which must be stopped. In fact, an employee cannot file
an application for a disability annuity until he or she is no longer on
the payroll of a railroad or railroad union. |
11. Must an employee relinquish
employment rights in order to receive a disability annuity? |
A disabled employee may continue to
hold employment rights until full retirement age. However, in order for
the supplemental annuity to be paid or for an eligible spouse to receive
benefits, a disability annuitant under full retirement age must
relinquish his or her rights. |
12. How can individuals find out
more information about disability annuities? |
Employees should contact the nearest
field office of the Board for information
or refer to the Board’s Web site at
www.rrb.gov.
Persons can find the address and phone number of the Board office
serving their area by calling the automated toll-free
RRB Help Line at 1-800-808-0772, or
from the Board’s Web site. Most Board offices are open to the public
from 9:00 a.m. to 3:30 p.m., Monday through Friday, except on Federal
holidays.
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