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1 the two preceding paragraphs" and inserting in lieu thereof 2 "the last paragraph plus the three preceding paragraphs”.

3 (d) Section 5 of the Railroad Retirement Act of 1937 4 is amended by inserting at the end thereof the following new subsection:

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"(q) A survivor's annuity computed under the preced7 ing provisions of this section shall be increased in an amount 8 determined by the method of computing increases set forth 9 in subsection (a) (6) of section 3: Provided, however, That 10 in computing such an amount for an individual entitled to an annuity under subsection 5 (a) (2), the 90.75 per 12 centum figure appearing in the third paragraph of section 13 3 (e) of this Act shall be deemed to be 82.5 per centum." SEC. 105. If title II of the Social Security Act is 15 amended to provide an increase in benefits payable there16 under at any time during the period July 1, 1973, through 17 December 31, 1974; the pension of each individual under 18 section 6 of the Railroad Retirement Act of 1937 and the 19 annuity of each individual under the Railroad Retirement 20 Act of 1935 shall be increased in an amount determined by 21 the method of computing increases set forth in subsection (a) 22 of section 104 of this Act, deeming for this purpose the aver23 age monthly earnings (in the case of a pension) or the aver24 age monthly compensation (in the case of an annuity under 25 the Railroad Retirement Act of 1935) which would be used

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to compute the basic amount if the individual were to die to

2 be the average monthly wage.

3 SEC. 106. All recertifications required by reason of the

4 amendments made by sections 104 and 105 of this Act 5 shall be made by the Railroad Retirement Board without 6 application therefor.

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SEC. 107. (a) For the purpose of preparing and sub8 mitting the report provided for in subsection (c), it shall 9 be the duty and responsibility of representatives of employees 10 and retirees to designate (within the thirty-day period com11 mencing on the date of enactment of this Act) and notify 12 the Congress of the identity (by name and position) of the 13 labor members, and of representatives of carriers to desig14 nate (within such thirty-day period) and notify the Con15 gress of the identity (by name and position) of the manage16 ment members, who shall compose the group authorized 17 to prepare, in their behalf, the report provided for in sub18 section (c).

19 (b) The group so authorized to prepare the report pro20 vided for in subsection (c) shall

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(1) hold such meetings (which shall not be less often than once each month) as may be necessary to assure that such report will be submitted within the time

24 provided, and contain the material prescribed under,

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67 co

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subsection (c), and keep formal minutes of each meeting held by such group; and

(2) submit to the Congress, on September 1, 1973, November 1, 1973, and January 1, 1974, interim re

ports as to the progress being made toward completion of the report provided for in subsection (c); except that no such interim report shall be submitted after the submission of the report provided for in subsection (c).

9 (c) (1) Not later than March 1, 1974, representatives 10 of employees and retirees and representatives of carriers,

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acting through the group designated by them pursuant to 12 subsection (a), shall submit to the Congress a report con13 taining their joint recommendations for restructuring the 14 railroad retirement system in a manner which will assure the long-term actuarial soundness of such system, which 16 recommendations shall take into account the specific rec17 ommendations of the Commission on Railroad Retirement. (2) The joint recommendations contained in such re19 port shall be specific and shall be presented in the form of

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a draft of a bill suitable for introduction in the Congress. (3) There shall be included in the report a copy of 22 the minutes of each meeting held by the group designated

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23 pursuant to subsection (a).

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SEC. 108. (a) The amendments made by section 101

25 of this Act shall become effective on July 1, 1974: Provided,

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1 however, That those amendments shall not apply to indi2 viduals whose annuities began to accrue prior to that date. 3 The amendments made by such section 101 shall cease to 4 apply as of the close of December 31, 1974.

5 (b) The amendments made by section 102 of this Act 6 shall become effective on October 1, 1973, and shall apply 7 only with respect to compensation paid for services rendered

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on or after that date: Provided, however, That such amend9 ments shall not be applicable to any dock company or 10 common carrier railroad with respect to those of its em11 ployees covered as of October 1, 1973, by a private supple12 mental pension plan established through collective bargain13 ing, where a moratorium in an agreement made on or before 14 March 8, 1973, is applicable to changes in rates of pay 15 contained in the current collective-bargaining agreement cov16 ering such employees, until the earlier of (1) the date as of 17 which such moratorium expires, or (2) the date as of which 18 such dock company or common carrier railroad agrees 19 through collective bargaining to make the provisions of 20 such amendments applicable.

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(c) The amendments made by sections 103, 104, 105, 22 106, and 107 of this Act shall be effective on the enactment 23 date of this Act: Provided, however, That any increases in 24 annuities or pensions resulting from the provisions of sections 25 104 and 105 of this Act shall be effective on the same date

96-447 0-73

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or dates as the benefit increases under title II of the Social

2 Security Act which gave rise to such annuity or pension

3 increases are effective.

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PART B-PERMANENT PROVISIONS

5 SEC. 120. (a) Effective January 1, 1975, section 108 6(a) of this Act is amended by striking out the second sen7 tence thereof.

8 (b) Effective January 1, 1975, section 6 of Public Law 9 91-377 (as amended) is hereby repealed.

10 (c) Effective January 1, 1975, section 8 (b) of Public 11 Law 92-46 (as amended) is hereby repealed.

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(d) Effective January 1, 1975, section 5 (b) of Public

13 Law 92-460 (as amended) is hereby repealed.

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SEC. 121. (a) Section 3201 of the Internal Revenue 15 Code of 1954 (relating to the rate of tax on employees under 16 the Railroad Retirement Tax Act), as amended by section 17 102 (a) of this Act, is further amended to read as follows: "In addition to other taxes, there is hereby imposed on 19 the income of every employee a tax equal to 3.75 per20 cent plus the sum of the rates of tax imposed with respect 21 to wages by sections 3101 (a) and 3101 (b) of the Internal 22 Revenue Code of 1954 of so much of the compensation paid to such employee for services rendered by him after Decem24 ber 31, 1974, as is not in excess of an amount equal to one25 twelfth of the current maximum annual taxable 'wages' as

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