88th Congress, H. R. 8100 An Act 77 STAT. 219. To amend the Railroad Retirement Act of 1937, the Railroad Retirement Tax Be it enacted by the Senate and House of Representatives of the TITLE I-AMENDMENTS TO THE RAILROAD RETIRE- SECTION 1. Section 3(a) of the Railroad Retirement Act of 1937 50 Stat. 310; is amended by striking out "$250" and inserting in lieu thereof 73 Stat. 26. "$300". SEC. 2. Section 3(c) of the Railroad Retirement Act of 1937 is amended by inserting before", shall be recognized" in the second sentence the following: "and before the calendar month next following the month in which this Act was amended in 1963, or in excess of $150 for any month after the month in which this Act was so amended". 45 USC 2280. SEC. 3. Section 4(k) of the Railroad Retirement Act of 1937 is 56 Stat. 205; amended by striking out "by the individual who rendered such mili- 60 Stat. 729. tary service", and by striking out "six months" and inserting in lieu 45 USC 228c-1. thereof "twelve months". SEC. 4. Section 4(n) of the Railroad Retirement Act of 1937 is 70 Stat. 877. amended (1) by inserting after "January 1, 1937," in the first and sixth sentences the following: "and after June 30, 1963,”; (2) by striking out "after December 1956" in the first sentence and inserting in lieu thereof "after December 31, 1956, and before July 1, 1963,"; (3) by striking out the second, third, and fourth sentences and inserting in lieu thereof the following: "The additional cost of crediting military service rendered prior to January 1, 1937, and after June 30, 1963, shall be determined as follows: (i) determine the difference between the actuarial value of the benefit payable under this Act based in part on military service and the actuarial value of the benefit which would be payable to the same individual without regard to military service; (ii) with respect to military service rendered after June 30, 1963, adjust such difference by applying thereto the ratio of the total net level cost of all benefits under this Act to the portion thereof remaining after the exclusion of administrative expenses and interest charges on the unfunded accrued liability after taking into account the effects of section 5(k) (2); and (iii) subtract the actuarial value of such benefit 70 Stat. 836. based on the individual's military service as is includible in 45 USC 228e. determinations made pursuant to section 5(k) (2). In calculating these actuarial values, the Board shall use such mortality tables and actuarial factors as it finds appropriate; the ratio referred to in clause (ii) of the preceding sentence shall be determined from time to time by the Board on the basis of actuarial estimates made in accordance with section 15; and all actuarial values shall 50 Stat. 316; be calculated as of the date on which the benefit based on military Post, p. 220. service begins to accrue and shall not thereafter be subject to 45 USC 2280. change. All actuarial calculations in this subsection shall take into account interest at the rate used in the actuarial estimates referred to in the preceding sentence."; 77 STAT. 220. 70 Stat. 836. 45 USC 288e. 70 Stat. 875. 42 USC 417. 42 USC 401425. 62 Stat. 577; 72 Stat. 1780. 45 USC 288e. 60 Stat. 734; 72 Stat. 1781. 50 Stat. 316. 45 USC 2280. (4) by striking out all of the seventh sentence after "thereon" and inserting in lieu thereof a period; (5) by striking out the eighth sentence and inserting in lieu thereof the following: "In determining pursuant to section 5(k) (2) for any fiscal year the total amount to be credited from the Railroad Retirement Account to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, credit shall be given such Account for the amount of the taxes described in clause (3) (B) of the first sentence of this subsection and the amount of such taxes with respect to military service after June 30, 1963."; and (6) by adding at the end of the subsection the following new sentences: "The amount authorized to be appropriated to the Railroad Retirement Account pursuant to clause (2) of the first sentence of this subsection shall be reduced by the amounts credited to such Account pursuant to section 5(k) (2) for military service rendered before January 1, 1957, and the amounts so credited shall be considered as additional costs within the meaning of section 217(g) of the Social Security Act. In any determination made pursuant to section 5(k) (2), no further charges shall be made against the Trust Funds established by title II of the Social Security Act for military service rendered before January 1, 1957, and with respect to which appropriations authorized by clause (2) of the first sentence of this subsection shall have been credited to the Railroad Retirement Account, but the additional benefit payments incurred by such Trust Funds by reason of such military service shall be taken into account in making any such determination." SEC. 5. Section 5(f) (2) of the Railroad Retirement Act of 1937 is amended by inserting after "so amended" (in the first parenthetical phrase after clause (vi)) the following: "and before the calendar month next following the month in which this Act was amended in 1963, and in excess of $450 for any month after the month in which this Act was so amended". SEC. 6. (a) Section 5(1)(9) of the Railroad Retirement Act of 1937 is amended (1) by striking out "and" where it appears the third time; (2) by inserting after "so amended" the following: "and before the calendar month next following the month in which this Act was amended in 1963 and any excess over $150 for any calendar month after the month in which this Act was so amended"; and (3) by striking out "$400" where it appears the second time and inserting in lieu thereof "$450". (b) Section 5(1) (10) of such Act is amended by striking out "$400” and inserting in lieu thereof $450". SEC. 7. (a) Section 15 of the Railroad Retirement Act of 1937 is amended by striking out the third sentence of subsection (a); and by striking out subsection (b) and inserting in lieu thereof the following: "(b) At the request and direction of the Board, it shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the Account as, in the judgment of the Board, is not immediately required for the payment of annuities, pensions, and death benefits. Such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at the issue price; or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may 77 STAT. 221. be issued under the Second Liberty Bond Act, as amended, are hereby 40 Stat. 288. extended to authorize the issuance at par of special obligations exclu- 31 USC 774(2). sively to the Account. Such obligations issued for purchase by the Account shall have maturities fixed with due regard for the needs of the Account, and shall bear interest at a rate equal to the average market yield, computed as of the end of the calendar month next preceding the date of such issue, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt that are not due or callable until after the expiration of three years from the end of such calendar month, except that where such rate is not a multiple of one-eighth of 1 per centum, the rate of interest on such obligations shall be the multiple of one-eighth of 1 per centum nearest such rate: Provided, That the rate of interest on such obligations shall in no case be less than 3 per centum per annum. The Secretary of the Treasury may purchase other interest-bearing obligations of the United States, or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price only if he determines that such purchases are in the public interest, provided that the investment yield of such obligations shall not be less than the interest rate determined in accordance with the preceding sentence. If it is in the interest of the Account so to do, the Secretary of the Treasury may sell and dispose of obligations in the Account and he may sell obligations acquired by the Account (other than special obligations issued exclusively to the Account) at the market price. Special obligations issued exclusively to the Account shall, at the request of the Board, be redeemed at par plus accrued interest. All amounts credited to the Account shall be available for all purposes of the Account." (b) The Secretary of the Treasury is authorized to retire the special obligations held by the Account on the date of enactment of this Act and to issue in lieu thereof special obligations with an interest rate determined as provided for in section 15(b) of the Railroad Retirement Act of 1937 as amended by this Act. Supra. SEC. 8. The provisions of sections 1, 2, 5, and 6 of this Act shall be Effective effective with respect to annuities accruing and deaths occurring after dates. the month in which this Act is enacted. The provisions of section 3 shall be effective with respect to annuities awarded on or after the date of enactment of this Act. The provisions of section 7(a) shall be effective on the date of the enactment of this Act. TITLE II-AMENDMENTS TO THE RAILROAD RETIRE- SEC. 201. Sections 3201 and 3211 of the Railroad Retirement Tax Act are each amended by inserting before the colon the following: 73 Stat. 28,29. "before the calendar month next following the month in which this 26 USC 3201, provision was amended in 1963, or $450 for any calendar month after 3211. the month in which this provision was so amended". SEC. 202. Sections 3202 and 3221(a) of the Railroad Retirement Tax Act are each amended by inserting after "$400" wherever it 68A Stat. 431, appears the following: "for any calendar month before the calendar 433; 73 Stat. 29. month next following the month in which this provision was amended 26 USC 3202, in 1963, or $450 for any calendar month after the month in which this provision was so amended". 3221. 77 STAT. 222. 54 Stat. 1097. 45 USC 353. 53 Stat. 8463 60 Stat. 737. 45 USC 354. TITLE III-AMENDMENTS TO THE RAILROAD UNEM- SEC. 301. (a) Section 3 of the Railroad Unemployment Insurance "Qualifying Condition "SEC. 3. An employee shall be a 'qualified employee' if the Board finds that his compensation will have been not less than $750 with respect to the base year, and, if such employee has had no compensation prior to such year, that he will have had compensation with respect to each of not less than seven months in such year." (b) The amendment made by subsection (a) shall be fully effective with respect to base years after 1963. With respect to the base year 1963, they shall be applicable only to an employee concerning whom the Railroad Retirement Board finds that his compensation in that portion of the calendar year 1963 preceding the first day of the calendar month next following the month of enactment of this Act will have been less than $500. SEC. 302. (a) Section 4 (a-2) (i) of the Railroad Unemployment Insurance Act is amended to read as follows: "(i)(A) subject to the provisions of subdivision (B) hereof, any of the days in the period beginning with the day with respect to which the Board finds that he left work voluntarily, and continuing until he has been paid compensation of not less than $750 with respect to time after the beginning of such period; "(B) if the Board finds that he left work voluntarily with good cause, the provisions of subdivision (A) shall not apply, with respect to him, to any day in a registration period if such period does not include any day which is in a period for which he could receive benefits under an unemployment compensation law other than this Act, and he so certifies. Such certification shall, in the absence of evidence to the contrary, be accepted subject to the penalty provisions of section 9(a) of this Act;". (b) The amendment made by subsection (a) shall be effective only with respect to an employee who leaves work voluntarily after the Effective date. date of enactment of this Act. 52 Stat. 1103, 45 USC 359. 52 Stat. 1102. 45 USC 358. 52 Stat. 1104. 45 USC 360. 75 Stat. 17. 45 USC 403. SEC. 303. (a) Effective with respect to compensation paid after December 31, 1963, section 8(a) of the Railroad Unemployment Insurance Act is amended by striking out "334" in the table and inserting in lieu thereof “4”. (b) Effective with respect to contributions collected by the Railroad Retirement Board pursuant to section 8(f) of the Railroad Unemployment Insurance Act on compensation paid after December 31, 1963, that part of such contributions equal to one-fourth of 1 per centum of the compensation on which such contributions are based shall, notwithstanding the provisions of section 10(b) of such Act, be applied by the Board exclusively for transfers from the railroad unemployment insurance account to the general fund of the Treasury until the full amount advanced from the general fund of the Treasury to the railroad unemployment insurance account pursuant to section 4 of the Temporary Extended Railroad Unemployment Insurance Benefits Act of 1961 has been repaid. (c) The last sentence of section 4 of the Temporary Extended Railroad Unemployment Insurance Benefits Act of 1961 is hereby 77 STAT. 223. repealed, effective with respect to contributions collected on compensation paid after December 31, 1963. SEC. 304. Effective with respect to contributions collected by the Railroad Retirement Board after December 31, 1961, section 8(f) of 62 Stat. 578. the Railroad Unemployment Insurance Act is amended by striking 45 USC 358. out "0.2 per centum and inserting in lieu thereof "0.25 per centum" SEC. 305. Effective after June 30, 1964, section 10(d) of the Railroad Unemployment Insurance Act is amended by striking out "the 73 Stat. 32. rate of 3 per centum per annum" and inserting in lieu thereof "a 45 USC 360. rate for each fiscal year equal to the average rate of interest borne by all special obligations held by the Railroad Retirement Account on the last day of the preceding fiscal year, rounded to the nearest LEGISLATIVE HISTORY: HOUSE REPORT No. 748 (Comm. on Interstate & Foreign Commerce). Sept. 17: Considered and passed House. |