Louie J. Capovilla v. Railroad Retirement Board

Louis J. Capovilla appeals the Railroad Retirement Board’s dismissal of his application for a total and permanent disability annuity pursuant to the Railroad Retirement Act, 45 U.S.C. § 231a. We affirm the Board’s decision.

FACTS AND PROCEEDINGS

Capovilla injured his back while working for the Southern Pacific Railroad in 1984. He has not worked since that date. On August 20, 1986 he reached a settlement with the railroad.

By the terms of the settlement Capovilla agreed that he would not return to duty with the railroad, but that his actual resignation from employment would occur in July 1991. Of the $390,000 settlement, $80,000 was allocated to the period from November 1, 1984 to July 31, 1991 as compensation for “time lost.” The settlement was structured this way to allow Capovilla to qualify in the future for an annuity under section 231a(a)(l)(iv), which requires that twenty years of service be completed.

In 1985 Capovilla applied for an annuity under 45 U.S.C. § 231a(a)(l)(v), a portion of the Railroad Retirement Act of 1974, which provides annuities to “individuals whose permanent physical or mental condition is such that they are unable to engage in any regular…