(f) Section 5(1)(10) of such Act is amended by striking out 45 USC 2280. "44", "11", "$350", "$15.40", "$36.66", "$27.50", and "$14.66" wherever 73 Stat. 27. they appear and inserting in lieu thereof "49", "12", "$400", "$16.95", 73 Stat. 28. "$40.33", "$30.25", and "$16.13", respectively.

SEC. 4. Section 20 of the Railroad Retirement Act of 1937 is amended 45 USC 2288-1. (1) by inserting "(a)" immediately after "SEC. 20."; and (2) by add

ing at the end thereof the following new subsection:

"(b) Pensions and annuities under this Act or the Railroad Retire- Veterans. ment Act of 1935 shall not be considered as income for the purposes

of section 522 of title 38 of the United States Code."

72 Stat. 1136.

SEC. 5. All pensions under section 6 of the Railroad Retirement Annuity increase. Act of 1937, all joint and survivor annuities and survivor annuities 45 USC 2281. deriving from joint and survivor annuities under that Act awarded before the month next following the month of enactment of this Act, all widows' and widowers' insurance annuities which began to accrue before the second calendar month next following the month of such enactment, and which, in accordance with the proviso in section 5(a)

or section 5(b) of the Railroad Retirement Act of 1937, are payable 45 USC 2280. in the amount of the spouse's annuity to which the widow or widower

was entitled, and all annuities under the Railroad Retirement Act of

1935, are increased by 10 per centum.

SEC. 6. (a) The amendments made by section 1 (other than subsec- Effective dates. tion (b) thereof), by subsections (a) and (c) of section 2, and by subsection (b) of section 3 shall be effective only with respect to annuities (not including annuities to which section 5 applies) accruing.for months after the month of enactment of this Act. The amendment made by subsection (b) of section 1 and by subsection (c) of section 3 shall be effective with respect to annuities accruing during the calendar year 1959 and subsequent calendar years. The amendment made by subsection (a) of section 3 shall be effective only with respect to lumpsum payments (under section 5(f) (2) of the Railroad Retirement Act of 1937) in the case of deaths occurring after the month of enactment of this Act. The amendments made by subsection (f) of section 3 shall be effective only with respect to annuities accruing for months after the month of enactment of this Act and lump-sum payments (under section 5(f) (1) of the Railroad Retirement Act of 1937) in the case of deaths occurring after the month of enactment of this Act. Sections 4 and 5 shall be effective only with respect to pensions due in calendar months after the month next following the month of enactment of this Act and annuities accruing for months after the month of enactment of this Act.

(b) All recertifications required by reason of the amendments made by this part shall be made by the Railroad Retirement Board without application therefor.

PART II-AMENDMENTS TO THE RAILROAD RETIREMENT TAX ACT

Recertifications.

SEC. 201. (a) Section 3201 of the Railroad Retirement Tax Act is 68A Stat. 431. amended to read as follows:

"SEC. $201. RATE OF TAX.

26 USC 3201.

"In addition to other taxes, there is hereby imposed on the income Employees. of every employee a tax equal to

"(1) 634 percent of so much of the compensation paid to such employee for services rendered by him after the month in which this provision was amended in 1959, and before January 1, 1962, and

"(2) 74 percent of so much of the compensation paid to such employee for services rendered by him after December 31, 1961, as is not in excess of $400 for any calendar month: Provided, That

73 Stat. 29.

the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to the number of percentage points (including fractional points) by which the rate of the tax imposed with respect 68A Stat. 415. to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956."

26 USC 3101.

70 Stat. 845.

68A Stat. 431. 26 USC 3202.

68A Stat. 432. 26 USC 3211,

Employee representative.

26 USC 3101.

26 USC 3221.

Employers.
Excise tax.

(b) Section 3202(a) of the Railroad Retirement Tax Act is amended (1) by striking out "after December 31, 1954" wherever it appears and inserting in lieu thereof "after the month in which this provision was amended in 1959"; (2) by striking out "$350" wherever it appears and inserting in lieu thereof "$400"; (3) by striking out "after 1954" and inserting in lieu thereof "after the month in which this provision was amended in 1959”.

(c) Section 3211 of the Railroad Retirement Tax Act is amended to read as follows:

"SEC. 3211. RATE OF TAX.

"In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to

"(1) 132 percent of so much of the compensation paid to such employee representative for services rendered by him after the month in which this provision was amended in 1959, and before January 1, 1962, and

"(2) 1412 percent of so much of the compensation paid to such employee representative for services rendered by him after December 31, 1961,

ás is not in excess of $400 for any calendar month: Provided, That the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to twice the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956."

(d) (1) Section 3221 of the Railroad Retirement Tax Act is amended by striking out "In addition to" and all that follows down through "$350" the first time it appears, and inserting in lieu thereof the following:

"(a) In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to

(1) 84 percent of so much of the compensation paid by such employer for services rendered to him after the month in which this provision was amended in 1959, and before January 1, 1962, and

"(2) 74 percent of so much of the compensation paid by such employer for services rendered to him after December 31, 1961, as is, with respect to any employee for any calendar month, not in excess of $400".

(2) Such section 3221 is further amended (A) by striking out "after December 81, 1954" and "after 1954" wherever they appear in that section and inserting in lieu thereof "after the month in which this provision was amended in 1959”; (B) by striking out "350" wherever

73 Stat. 30.

else it appears in that section and inserting in lieu thereof "$400"; and (C) by adding at the end thereof the following new subsection "(b) The rate of tax imposed by subsection (a) shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3111 at such time exceeds the rate 26 USC 3111. provided by paragraph (2) of such section 3111 as amended by the Social Security Amendments of 1956."

70 Stat. 845.

SEC. 202. The amendments made by section 201 shall, except as Effective date. otherwise provided in such amendments, be effective as of the first day of the calendar month next following the month in which this Act was enacted, and shall apply only with respect to compensation paid after the month of such enactment, for services rendered after such month of enactment.

PART III-AMENDMENTS TO THE RAILROAD UNEMPLOYMENT

INSURANCE ACT

68 Stat. 1041. 45 USC 351.

SEC. 301. (a) Section 1(i) of the Railroad Unemployment Insur- Compensation ance Act is amended by striking out the proviso in the first sentence base. and inserting in lieu thereof ": Provided, however, That in comput- 52 Stat. 1095; ing the compensation paid to any employee, no part of any month's compensation in excess of $300 for any month before July 1, 1954, or in excess of $350 for any month after June 30, 1954, and before the calendar month next following the month in which this Act was amended in 1959, or in excess of $400 for any month after the month in which this Act was so amended, shall be recognized”.

(b) The first proviso of section 1(k) of the Railroad Unemployment Insurance Act is amended by striking out "$400" and inserting in lieu thereof "$500".

SEC. 302. (a) Section 2(a) of the Railroad Unemployment Insur- Daily benefit ance Act is amended by striking out the language between "(i)" and rates.

"(ii)" and inserting in lieu thereof the following: "for each day of 45 USC 352.
unemployment in excess of four during any registration period, and".
(b) Section 2(a) of such Act is further amended by striking out

columns I and II and inserting in lieu thereof the following:

(c) The proviso in such section 2(a) is amended by striking out "50" and "$8.50" and inserting in lieu thereof "60" and "$10.20",

respectively.

SEC. 303. (a) Section 2(c) of the Railroad Unemployment Insur- Temporary extenance Act is amended by striking out the period at the end thereof and sion of benefits. inserting in lieu of such period a colon and the following: “And pro

vided further, That, with respect to an employee who has ten or

more years of service as defined in section 1(f) of the Railroad

Retirement Act of 1937, who did not voluntarily leave work without 45 USC 228a.

45 USC 228.

Stat, 1094. 45 USC 367.

72 Stat. 171. 42 USC 1400

note.

45 USC 353.

alifying con

dition. 15 USC 354 Sundays and holidays.

73 Stat. 31.

good cause or voluntarily retire, and who had current rights to normal benefits for days of unemployment in a benefit year but has exhausted such rights, the benefit year in which such rights are exhausted shall be deemed not to be ended until the last day of the extended benefit period determined under the following schedule, and the maximum number of days of, and amount of payment for, unemployment within such benefit year for which benefits may be paid to the employee shall be enlarged to include all compensable days of unemployment within such extended benefit period:

"If the employee's 'years of

service' total

10 and less than 15

15 and over_.

The extended benefit period shall begin on the first day of unemployment following the day on which the employee exhausted his then current rights to normal benefits for days of unemployment and shall continue for successive fourteen-day periods (each of which periods shall constitute a registration period) until the number of such fourteen-day periods totals

7 (but not more than 65 days) 13

but no such extended benefit period shall extend beyond the beginning of the first registration period in a benefit year in which the employee is again qualified for benefits in accordance with section 3 of this Act on the basis of compensation earned after the first of such successive fourteen-day periods has begun. For an employee who has ten or more years of service, who did not voluntarily leave work without good cause or voluntarily retire, who has fourteen of more consecutive days of unemployment, and who is not a 'qualified employee' for the general benefit year current when such unemployment commences but is or becomes a 'qualified employee' for the next succeeding general benefit year, such succeeding benefit year shall, in his case, begin on the first day of the month in which such unemployment commences."

99

(b) An employee who has less than ten years of service as defined in section 1(f) of the Railroad Retirement Act of 1937, and who has after June 30, 1957, and before April 1, 1959, exhausted (within the meaning prescribed by the Railroad Retirement Board by regulation) his rights to unemployment benefits, shell be paid unemployment benefits for days of unemployment, not exceeding sixty-five, which occur in registration periods beginning on or after June 19, 1958, and before July 1, 1959, and which would not be days with respect to which he would be held entitled otherwise to receive unemployment benefits under the Railroad Unemployment Insurance Act, except that an employee who has filed, and established, a first claim for benefits under the Temporary Unemployment Compensation Act of 1958 may not thereafter establish a claim under this subsection, and an employee who has registered for, and established a claim for benefits under this subsection may not thereafter establish a claim under the Temporary Unemployment Compensation Act of 1958. Except to the extent inconsistent with this subsection, the provisions of the Railroad Unemployment Insurance Act shall be applicable in the administration of this subsection.

(c) The Secretary of Labor, upon request, shall furnish the Board information deemed necessary by the Board for the administration of the provisions of subsection (b) hereof, and the Board, upon request, shall furnish the Secretary of Labor information deemed necessary by the Secretary for the administration of the Temporary Unemployment Compensation Act of 1958.

SEC. 304. Section 3 of the Railroad Unemployment Insurance Act is amended by striking out "$400" and inserting in lieu thereof "$500". SEC. 805. Section 4(a-2) of the Railroad Unemployment Insurance Act is amended by striking out subdivision (iv), and by striking out

73 Stat. 32.

the semicolon at the end of subdivision (iii) and inserting in lieu

thereof a period.

66
9

SEC. 306. Section 8(a) of the Railroad Unemployment Insurance Employer's contriAct is amended (1) by inserting after "June 30, 1954" where it first butions. appears the following: and before the calendar month next follow- 45 USC 358. ing the month in which this Act was amended in 1959, and is not in excess of $400 for any calendar month paid by him to any employee for services rendered to him after the month in which this Act was so amended"; (2) by inserting after "June 30, 1954" where it appears for the second time the following: ", and before the calendar month next following the month in which this Act was amended in 1959, and to not more than $400 for any month after the month in which this Act was so amended"; (3) by inserting after "June 30, 1954" were it appears for the third time the following: ", and before the calendar month next following the month in which this Act was amended in 1959, or less than $400 if such month is after the month in which this Act was so amended"; (4) by striking out "December 31, 1947" in paragraph 2 and inserting in lieu thereof "the month in which this Act was amended in 1959"; and (5) by striking out the table (except the column headings) in such paragraph 2 and inserting in lieu thereof the following:

tributions.

SEC. 307. Section 8(b) of the Railroad Unemployment Insurance Employee repreAct is amended (1) by striking out "3 per centum" and inserting in sentatives' conlieu thereof "3% per centum"; and (2) by inserting before the period at the end of the first sentence the following: ", and before the calendar month next following the month in which this Act was amended in 1959, and as is not in excess of $400 paid to him for services rendered as an employee representative in any calendar month after the month in which this Act was so amended".

SEC. 308. (a) Subsection (d) of section 10 of the Railroad Unemployment Insurance Act be amended to read as follows:

45 USC 360.

"(d) Whenever the Board finds at any time that the balance in Transfer of the railroad unemployment insurance account will be insufficient to funds. pay the benefits and refunds which it estimates are due, or will become due, under this Act, it shall request the Secretary of the Treasury to transfer from the Railroad Retirement Account to the credit of the railroad unemployment insurance account such moneys as the Board estimates would be necessary for the payment of such benefits and refunds, and the Secretary shall make such transfer. Whenever the Board finds that the balance in the railroad unemployment insurance account, without regard to the amounts transferred pursuant to the next preceding sentence, is sufficient to pay such benefits and refunds, it shall request the Secretary of the Treasury to retransfer from the railroad unemployment insurance account to the credit of the Railroad Retirement Account such moneys as in its judgment are not needed for the payment of such benefits and refunds, plus interest at the rate of 3 per centum per annum, and the Secretary shall make such retransfer. In determining the balance in the railroad unemployment insurance account as of September 30 of any year pursuant to section 8(a) of this Act, any moneys transferred from the Railroad Retirement Account to the credit of the railroad unemployment insurance account which have not been retransferred as of such date from the latter account to the credit of the former, plus the interest accrued thereon to that date, shall be disregarded."