Policy and Systems

When Your Period of Disability Could End

A period of disability ends with the earliest of:

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Part III - When Work and Earnings Indicate Recovery From Disability

How Work and Earnings Can Affect Employees Initially Awarded Disability Annuities

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When Your Period of Disability Can Begin

The period of disability begins on the first day both the earnings and disability requirements are met. A period of disability cannot be awarded if all or part of the waiting period falls in or after the month "full retirement age" is attained.

The beginning date of a period of disability does not determine when basic railroad retirement disability annuity payments may begin. It does however, determine when and if any increased payments may begin, and it also may affect the beginning date of early Medicare coverage.

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Chapter 11 - Trial Work Period

If you work after your disability benefits begin, you may be entitled to a trial work period (TWP). This is a period of time where you may test without penalty your ability to work and still be considered disabled. A TWP may last 9 months (not necessarily consecutive) in a 60-month period. After the TWP is complete, the RRB will decide whether you are still disabled. Some limitations apply to the TWP. Due to the complexity of determining whether you qualify for the TWP, you should contact an RRB representative before returning to work.

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Chapter 10 - Substantial Gainful Activity

Substantial gainful activity (SGA) is work which results in earnings over a certain monthly threshold. 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 a total and permanent disability, or if you have a period of disability (also called a disability freeze) or early Medicare, you may be subject to a finding of SGA as the result of a continuing disability review (CDR) determination.

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Chapter 9 - Self-Employment

Self-employment is work performed in a person's own business, trade or profession, rather than for an employer. Earnings limitations apply to self-employment and, like any employment, may indicate recovery from disability.

When you claim self-employment, whether it is a partnership, sole proprietorship, Limited Liability Company, Limited Liability Partnership or other type of business entity, the RRB will determine whether the self- employment impacts your disability benefits.

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Chapter 8 - Owning, Selling, Transferring a Business

Contact the RRB if you owned, sold, or turned over a business entity or transferred a corporate officer role to another individual, friend, spouse, or other family member. A business entity includes a family business, sole proprietorship, partnership, Limited Liability Companies, Limited Liability Partnerships, C-Corporation, or S-Corporation. The RRB may request pertinent tax returns including, but not limited to:

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Chapter 7 - Activities That May Be Considered Work

An activity may be considered work by the RRB, regardless of whether or not you receive compensation. Compensation includes salary, fees, commissions, gratuities, dividends, royalties, residuals, or any other sort of wages in kind. Compensation may also include a value in lieu of salary or wages, such as in the form of a commodity, service, or privilege.

An activity may be considered work regardless of whether or not a profit (gross or net) is achieved. Work may include activity:

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Chapter 6 - What is Work for Earnings?

"Work for earnings" is any activity that a disability annuitant performs for money or other form of benefit or compensation. It does not matter what the activity is called or who legally owns the business. It does not matter how the benefit or compensation is received or who benefits from it. The following are examples of work that may impact entitlement to a disability annuity.

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Chapter 5 - How Work Can Affect Your Disability Annuity

Work can affect your disability annuity by impacting your annuity payment and/or continuance of your disability. Work and earnings can affect the payment of your annuity and must be reported promptly to the RRB in order to avoid potential overpayments and penalties. Work activity can also demonstrate a recovery from your disability, resulting in the termination of your disability annuity. (refer to description of medical recovery.)

The following describes the effect of work on your benefit payments.

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