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"(f) For the purposes of this Act, the term 'spouse' shall mean the wife or husband of a retirement annuitant or pensioner who (i) was married to such annuitant or pensioner for a period of not less than three years immediately preceding the day on which the application for a spouse's annuity is filed, or is the parent of such annuitant's or pensioner's son or daughter, if, as of the day on which the application for a spouse's annuity is filed, such wife or husband and such annuitant or pensioner were members of the same household, or such wife or husband was receiving regular contributions from such annuitant or pensioner toward her or his support, or such annuitant or pensioner has been ordered by any court to contribute to the support of such wife or husband; and (ii) in the case of a husband, was receiving at least one-half of his support from his wife at the time his wife's retirement annuity or pension began.

"(g) The spouse's annuity provided in subsection (e) shall, with respect to any month, be subject to the same provisions of subsection (d) as the individual's annuity, and, in addition, the spouse's annuity shall not be payable for any month if the individual's annuity is not payable for such month (or, in the case of a pensioner, would not be payable if the pension were an annuity) by reason of the provisions of said subsection (d). Such spouse's annuity shall cease at the end of the month preceding the month in which (i) the spouse or the individual dies, (ii) the spouse and the individual are absolutely divorced, or (iii), in the case of a wife under age 65, she no longer has in her care a child who, if her husband were then to die, would be entitled to an annuity under subsection (c) of section 5 of this Act." SEC. 6. Subsection (a) of section 3 of the Railroad Retirement Act 45 U.S.C. § 228c. of 1937, as amended, is amended by changing "2.40” to “2.76”, "1.80" to "2.07", and "1.20" to "1.38".

SEC. 7. Subsection (b) of section 3 of the Railroad Retirement Act of 1937, as amended, is amended by striking out all of paragraph (4) and inserting in lieu thereof the following paragraph:

"The retirement annuity or pension of an individual, and the annuity of his spouse, if any, shall be reduced, beginning with the month in which such individual is, or on proper application would be, entitled to an old age insurance benefit under the Social Security Act, as 42 U.S.C. 1305. follows: (i) in the case of the individual's retirement annuity, by that

49 Stat. 620.

65 Stat. 684. 65 Stat. 685.

portion of such annuity which is based on his years of service and compensation before 1937, or by the amount of such old age insurance benefit, whichever is less, (ii) in the case of the individual's pension, by the amount of such old age insurance benefit, and (iii) in the case of the spouse's annuity, to one-half the individual's retirement annuity or pension as reduced pursuant to clause (i) or clause (ii) of this paragraph: Provided, however, That, in the case of any individual receiving or entitled to receive an annuity or pension on the day prior to the date of enactment of this paragraph, the reductions required by this paragraph shall not operate to reduce the sum of (A) the retirement annuity or pension of the individual, (B) the spouse's annuity, if any, and (C) the benefits under the Social Security Act which the individual and his family receive or are entitled to receive on the basis of his wages, to an amount less than such sum was before the enactment of this paragraph."

SEC. 8. Subsection (e) of section 3 of the Railroad Retirement Act 45 U.S.C. § 2280. of 1937, as amended, is amended by striking out the phrase "and not less than five years of service"; by changing the phrase "subsection 2 (a) (3)" to "section 2 (a) 3 or the last paragraph of section 3 (b)"; by changing "$3.60" to "$1.14", and "$60" to "$69"; and by changing the period at the end of the subsection to a colon and inserting after the colon the following: "Provided, however, That if for any entire

month in which an annuity accrues and is payable under this Act the annuity to which an employee is entitled under this Act (or would have been entitled except for a reduction pursuant to section 2 (a) 3 or a joint and survivor election), together with his or her spouse's annuity, if any, or the total of survivor annuities under this Act deriving from the same employee, is less than the amount, or the additional amount, which would have been payable to all persons for such month under the Social Security Act (deeming completely and partially insured indi- 49 Stat. 620. viduals to be fully and currently insured, respectively, and disregard- 42 U.S.C. § 1305. ing any possible deductions under subsections (f) and (g) (2) of section 203 thereof) if such employee's service as an employee after December 31, 1936, were included in the term 'employment' as defined in that Act and quarters of coverage were determined in accordance with section 5 (1) ̊ (4) of this Act, such annuity or annuities, shall be increased proportionately to a total of such amount or such additional amount."

SEC. 9. Section 3 of the Railroad Retirement Act of 1937, as 45 U.S.C. § 2280. amended, is amended by striking out subsection (h) thereof.

SEC. 10. Subsection (i) of section 3 of the Railroad Retirement Act of 1937, as amended, is amended by redesignating it as subsection (h). SEC. 11. Subsection (a) of section 5 of the Railroad Retirement

Act of 1937, as amended, is amended by inserting "and Widower's" 45 U.S.C. § 228e. after "Widow's"; by inserting "or widower" after "widow"; by inserting "or his" after "her", by inserting "or he" after "she"; by striking out the phrase "three-fourths of"; and by changing the period at the end thereof to a colon, and by inserting after the colon the following: "Provided, however, That if in the month preceding the employee's death the spouse of such employee was entitled to a spouse's annuity under subsection (e) of section 2 in an amount greater than the widow's or widower's insurance annuity, the widow's or widower's insurance annuity shall be increased to such greater amount."

SEC. 12. Subsection (b) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by striking out the phrase "threefourths of"; and by changing the period at the end thereof to a colon and inserting after the colon the following: "Provided, however, That if in the month preceding the employee's death the spouse of such employee was entitled to a spouse's annuity under subsection (e) of section 2 in an amount greater than the widow's current insurance annuity, the widow's current insurance annuity shall be increased to such greater amount."

SEC. 13. Subsection (c) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by substituting for the phrase "one-half" the phrase "two-thirds".

66

65 Stat. 685.

SEC. 14. Subsection (d) of section 5 of the Railroad Retirement 65 Stat. 686. Act of 1937, as amended, is amended by inserting, no widower," after "widow"; and by substituting for the phrase "one-half" the phrase "two-thirds".

SEC. 15. Subsection (e) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by substituting for the phrase "one-half" the phrase "two-thirds".

SEC. 16. Subsection (f) (1) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by inserting "widower," after the phrase "widow," where this phrase first appears in the first sentence, and after the phrase "widow," wherever this phrase appears in the fourth sentence; and by substituting in the first sentence for the word "eight" the word "ten".

SEC. 17. Subsection (f) (2) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by inserting ", widower," after the word "widow" wherever this word appears; by inserting "or her"

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after the words "his" and "him" wherever these words appear; by inserting immediately before", or to others" in the first sentence the following: ", and to others deriving from him or her, during his or her life,"; by changing the period at the end of said subsection to a comma and by inserting after the comma the following: "except that the deductions of the benefits which, pursuant to subsection (k) (1) of this section, are paid under section 202 of the Social Security Act, during the life of the employee to him or to her and to others deriving 42 U.S.C. § 402. from him or her, shall be limited to such portions of such benefits as are payable solely by reason of the inclusion of service as an employee in 'employment' pursuant to said subsection (k) (1)."

49 Stat. 623; 64 Stat. 482.

45 U.S.C.

$228e.

SEC. 18. Subsection (g) (2) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended to read as follows:

"(2) If an individual is entitled to more than one annuity for a month under this section, such individual shall be entitled only to that one of such annuities for a month which is equal to or exceeds any other such annuity. If an individual is entitled to an annuity for a month under this section and is entitled, or would be so entitled on proper application therefor, for such month to an insurance benefit under section 202 of the Social Security Act, the annuity of such individual for such month under this section shall be only in the 42 U.S.C. § 402. amount by which it exceeds such insurance benefit. If an individual is entitled to an annuity for a month under this section and also to a retirement annuity, the annuity of such individual for a month under this section shall be only in the amount by which it exceeds such retirement annuity.

49 Stat. 623; 64 Stat. 482.

49 Stat. 620.
42 U.S.C.
$1305.

65 Stat. 686. 65 Stat. 687.

"(3) In the case of any individual receiving or entitled to receive an annuity under this section on the day prior to the date of enactment of the provisions of this paragraph, the application of paragraph (2) of this subsection to such individual shall not operate to reduce the sum of (A) the annuity under this section of such individual, (B) the retirement annuity, if any, of such individual, and (C) the benefits under the Social Security Act which such individual receives or is entitled to receive, to an amount less than such sum was before the enactment of the provisions of this paragraph."

SEC. 19. Subsection (h) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended to read as follows:

"(h) Maximum and Minimum Annuity Totals.-Whenever according to the provisions of this section as to annuities, payable for a month with respect to the death of an employee, the total of annuities is more than $30 and exceeds either (a) $160, or (b) an amount equal to two and two-thirds times such employee's basic amount, whichever of such amounts is the lesser, such total of annuities shall, prior to any deductions under subsection (i), be reduced to such lesser amount or to $30, whichever is greater. Whenever such total of annuities is less than $14, such total shall, prior to any deductions under subsection (i), be increased to $14."

SEC. 20. Subdivision (ii) of paragraph (1) of subsection (i) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by substituting "$50" for "$25".

SEC. 21. Subsection (j) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by striking out all of the third sentence thereof after the phrase "the month in which" (including the proviso), and substituting the following: "eligibility therefor was otherwise acquired, but not earlier than the first day of the sixth month before the month in which the application was filed."

SEC. 22. (a) Paragraph (1) of subsection (k) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by inserting "(i)" after the word "determining" and by inserting in said para

graph after the word "Act" where it first appears the following: "to an employee who will have completed less than ten years of service and to others deriving from him or her during his or her life and with respect to his or her death, and lump-sum death payments with respect to the death of such employee, and (ii) insurance benefits with respect to the death of an employee who will have completed ten years of service"; by striking in said paragraph after "1947," the following: "to a widow, parent, or surviving child,"; by inserting before the word "occurring" the phrase "of such an employee"; by inserting after the phrase "such date" the following: ", and for the purposes of section 203 of that Act"; by substituting in said paragraph "210 (a) (10)" for "209 (b) (9)"; and by inserting at the end of such paragraph (1) the following sentence: "In the application of the Social Security Act pursuant to this paragraph to service as an employee, all service as defined in section 1 (c) of this Act shall be deemed to have been performed within the United States."

(b) Subsection (k) (2) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by substituting the following:

"(2) (A) The Board and the Federal Security Administrator shall determine, no later than January 1, 1954, the amount which would place the Federal Old-Age and Survivors Insurance Trust Fund (hereafter termed "Trust Fund') in the same position in which it would have been at the close of the fiscal year ending June 30, 1952, if service as an employee after December 31, 1936, had been included in the term 'employment' as defined in the Social Security Act and in the Federal Insurance Contributions Act.

"(B) On January 1, 1954, for the fiscal year ending June 30, 1953, and at the close of each fiscal year beginning with the fiscal year ending June 30, 1954, the Board and the Federal Security Administrator shall determine, and the Board shall certify to the Secretary of the Treasury for transfer from the Railroad Retirement Account (hereafter termed 'Retirement Account') to the Trust Fund, interest for such fiscal year at the rate specified in subparagraph (D) on the amount determined under subparagraph (A) less the sum of all offsets made under subparagraph (C).

45 U.S.C. 228e.

49 Stat. 620.
42 U.S.C. § 1305.
53 Stat. 175.
26 U.S.C. § 1432.

"(C) At the close of the fiscal year ending June 30, 1953, and each fiscal year thereafter, the Board and the Federal Security Administrator shall determine the amount, if any, which if added to or subtracted from the Trust Fund would place such Trust Fund in the same position in which it would have been if service as an employee after December 31, 1936, had been included in the term 'employment' as defined in the Social Security Act and in the Federal Insurance Contributions Act. For the purposes of this subparagraph, the 65 Stat. 687. amount determined under subparagraph (A), less such offsets as have 65 Stat. 688. theretofore been made under this subparagraph, and the amount determined under subparagraph (B) for the fiscal year under consideration shall be deemed to be part of the Trust Fund. Such determination shall be made no later than June 15, following the close of the fiscal year. If such amount is to be added to the Trust Fund, the Board shall, within ten days after the determination, certify such amount to the Secretary of the Treasury for transfer from the Retirement Account to the Trust Fund; if such amount is to be subtracted from the Trust Fund, the Administrator shall, within ten days after the determination, certify such amount to the Secretary of the Treasury for transfer from the Trust Fund to the Retirement Account. The amount so certified shall further include interest (at the rate determined in subparagraph (D) for the fiscal year under consideration) payable from the close of such fiscal year until the date of certification. In the event the Administrator is required under the provisions of this

subparagraph to certify to the Secretary of the Treasury an amount to be transferred to the Retirement Account from the Trust Fund, the Administrator, in lieu of such certification, may offset the amount determined under the first sentence of this subparagraph against the amount determined in subparagraph (A) as diminished by any prior offsets and the offset shall be made to be effective as of the first day of the fiscal year following the fiscal year under consideration.

"(D) For the purposes of subparagraphs (B) and (C), for any fiscal year, the rate of interest to be used shall be equal to the average rate of interest, computed as of May 31 preceding the close of such fiscal year, borne by all interest-bearing obligations of the United States then forming a part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest shall be the multiple of one-eighth of 1 per centum next lower than such average rate.

"(E) The Secretary of the Treasury is authorized and directed to transfer to the Trust Fund from the Retirement Account or to the Retirement Account from the Trust Fund, as the case may be, such amounts as, from time to time, may be determined by the Board and the Federal Security Administrator pursuant to the provisions of subparagraphs (B) and (C) of this subsection, and certified by the Board or the Administrator for transfer from the Retirement Account or from the Trust Fund."

SEC. 23. (a) (1) Paragraph (1) of subsection (1) of section 5 of 45 U.S.C. 2280. the Railroad Retirement Act of 1937, as amended, is amended by inserting ""widower'," after" "widow'," where this word first appears; by substituting "216 (c), (e), and (g)" for "209 (j) and (k)”, and by substituting "202 (h)" for "202 (f)

65 Stat. 688. 65 Stat. 689.

(2) The said paragraph (1) is further amended by striking out subdivision (i) thereof and inserting in lieu of such subdivision the following:

"(i) a 'widow' or 'widower' shall have been living with the employee at the time of the employee's death; a widower shall have received at least one-half of his support from his wife employee at the time of her death or he shall have received at least one-half of his support from his wife employee at the time her retirement annuity or pension began.'

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(3) The said paragraph (1) is further amended by inserting in subdivision (ii) after the phrase "such death" the following: "by other than a step parent, grand parent, aunt, or uncle"; and by amending subdivision (iii) to read as follows: "(iii) a 'parent' shall have received, at the time of the death of the employee to whom the relationship of parent is claimed, at least one-half of his support from such employee.".

(4) Paragraph (1) of the said subsection (1) is further amended by substituting for all the matter which follows subdivision (iii) the following: "A widow' or 'widower' shall be deemed to have been living with the employee if the conditions set forth in section 216 (h) (2) or (3), whichever is applicable, of the Social Security Act are fulfilled. A 'child' shall be deemed to have been dependent upon a parent if the conditions set forth in section 202 (d) (3), (4), or (5) of the Social Security Act are fulfilled (a partially insured 42 U.S.C. § 402. mother being deemed currently insured). In determining for pur

64 Stat. 511, 512.

42 U.S.C. & 416. 64 Stat. 484.

64 Stat. 511.

42 U.S.C. 416.

poses of this section and subsection (f) of section 2 whether an applicant is the wife, husband, widow, widower, child, or parent of an employee as claimed, the rules set forth in section 216 (ĥ) (1) of the Social Security Act shall be applied;".

(b) Paragraph (4) of subsection (1) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by inserting after the

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