Chapter 3 - What Happens to My Disability Annuity When I Meet the Requirements for an Age and Service Annuity?
An individual's attainment of age 60 with 30 years of service does not have any impact on the disability annuity to which the individual is entitled; nor does it impact the disability earnings restrictions. This is true even though the individual would have otherwise qualified for a full age annuity under the Railroad Retirement Act (RRA) based on being at least age 60 with 30 years of service.
Similarly, an individual's attainment of age 62 does not have any impact on the disability annuity to which the individual is entitled; nor does it impact the disability earnings restrictions. This is true even though the individual would have otherwise qualified for an age-reduced annuity under the RRA.
For example:
- Mr. Smith, a railroad worker, was born in July 1960 and has 30 years of service. He was awarded a disability annuity by the RRB at age 47 in January 2008. He will reach his full retirement age of 67 in July 2027.
Mr. Smith will reach age 60 in the year 2020, the earliest age a non-disabled person may retire under the RRA with 30 years of railroad service. Because he has already retired by reason of disability, he will not be eligible to receive a regular retirement annuity based on 30 years of service unless he is no longer disabled.
- Mrs. Jones, a railroad worker, was born in September 1958 and has 20 years of service. She was awarded a disability annuity by the RRB at age 52 in October 2010. She will reach her full retirement age of 66 and 8 months in May 2025.
Mrs. Jones will reach age 62 in the year 2020, the earliest age a non-disabled person may retire under the RRA with 20 years of railroad service. Because she has already retired by reason of disability, she will not be eligible to receive a regular retirement annuity based on 20 years of service unless she is no longer disabled.
The RRB confirms recovery from disability by conducting a formal continuing disability review (refer to Continuing Disability Review). In the examples above, when Mr. Smith and Mrs. Jones reach their full retirement age, the disability earnings restrictions will be removed and they will both be treated as though they had retired under the age and service provisions of the RRA.