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80 STAT. 1078

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

TITLE III_AMENDMENTS TO THE RAILROAD

RETIREMENT TAX ACT

CHANGES IN TAX RATES

79 Stat. 861. 26 USC 3201.

26 USC 3211.

79 Stat. 862. 26 USC 3221.

Sec. 301. (a) Section 3201 of the Internal Revenue Code of 1954 (relating to rate of tax on employees under the Railroad Retirement Tax Act) is amended by striking out “634 percent" from subdivision “(3)” and inserting in lieu thereof “7 percent"; by striking out “ percent” from subdivision “(4)” and inserting in lieu thereof (774 percent"; and by striking out 6714 percent" from subdivision “(5) and inserting in lieu thereof “71/2 percent".

(b) Section 3211 of such Code (relating to rate of tax on employee representatives under the Railroad Retirement Tax Act) is amended by striking out “131/2 percent” from subdivision “(3)” and inserting in lieu thereof “14 percent"; by striking out “14 percent" from subdivision “(4)” and inserting in lieu thereof “1412 percent”; and by striking out "1442 percent" from subdivision “(5)" and inserting in lieu thereof “15 percent”.

(c) Section 3221 (a) of such Code (relating to rate of tax on employers under the Railroad Retirement Tax Act) is amended by striking out "634 percent" from subdivision “(3)” and inserting in lieu thereof "7 percent"; by striking out “7 percent" from subdivision “(4)” and inserting in lieu thereof "724 percent"; and by striking out “714 percent" from subdivision “(5)” and inserting in lieu thereof "712 percent”.

SUPPLEMENTAL TAXES (d) Section 3211 of such Code is further amended by inserting “(a)' after “Sec. 3211” and by adding at the end thereof the following new subsection:

*(b) In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to 2 cents for each man-hour for which compensation is paid to him for services rendered as an employee representative."

(e) Section 3221 of such Code is further amended by adding at the end thereof the following new subsection:

"(c) 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 2 cents for each man-hour, for which compensation is paid. With respect to daily, weekly, or monthly rates of compensation such tax shall apply to the number of hours comprehended in the rate together with the number of overtime hours for which compensation in addition to the daily, weekly, or monthly rate is paid. With respect to compensation paid

on a mileage or piecework basis such tax shall apply to the number of hours constituting the hourly equivalent of the compensation paid.

“Each employer of employees whose supplemental annuities are reduced pursuant to section 3 (j) (2) of the Railroad Retirement Act of 1937 shall be allowed as a credit against the tax imposed by this subsection an amount equivalent in each month to the aggregate amount of reductions in supplemental annuities accruing in such month to employees of such employer. If the credit so allowed to such an employer for any month exceeds the tax liability of such employer accru

Ante, p. 1073.

BO STAT. 1079

ing under this subsection in such month, the excess may be carried forward for credit against such taxes accruing in subsequent months but the total credit allowed by this paragraph to an employer shall not exceed the total of the taxes on such employer imposed by this subsection. At the end of each calendar quarter the Railroad Retirement Board shall certify to the Secretary of the Treasury with respect to each such employer the amount of credit accruing to such employer under this paragraph during such quarter and shall notify such employer as to the amount so certified.”

(f) The amendments made by subsections (d) and (e) of this section shall be effective with respect to man-hours, for sixty months beginning with the first month following enactment of this Act, for which compensation is paid.

Approved October 30, 1966.

Erfective date.

LEGISLATIVE HISTORY :

HOUSE REPORT No. 2169 (Comm. on Interstate & Foreign Commerce).
SENATE REPORT No. 1718 (Comm. on Labor & Public Welfare).
CON RESSIONAL RECORD, Vol. 112 (1966):

Oct. 3: Considered and passed House.
Oct. 14: Considered and passed Senate.

36-627 0.79 - 13

8 9th Congress, H. R. 14355
October 30, 1966

An Act

To amend the Railroad Retiremert Act of 1937, the Railroad Unemployment

Insurance Act, and the Railroad Retirement Tax Act to make certain technical changes, to provide for survivor benefits to children ages eighteen to twenty-one, inclusive, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Railroad Re

tirement Act of TITLE I-AMENDMENTS TO THE RAILROAD

1937, Railroad

Unemployment RETIREMENT ACT OF 1937

Insurance Act,

and Railroad Sec. 101. (a) Section 1(e) of the Railroad Retirement Act of 1937

Retirement Tax is amended by striking out“, Alaska, Hawaii,”.

Act, amendment. (b) · The third sentence of section 1(h)(1) of such Act is amended 50 stat. 308. by striking out “subsections (a), (c), and (d) of section 2 and sub- 45 USC 228. section (a) of section 5” and inserting in lieu thereof “sections 2 and 5”; and by striking out “(1)” and “(2)” and inserting in lieu thereof "(i)” and “(ii)", respectively.

(c) Section 1(q) of such Act is amended by striking out “in 1965” 79 Stat. 400. and inserting in lieu thereof “from time to time”.

Sec. 102. (a) Section 2(a) of the Railroad Retirement Act of 1937 60 Stat. 728. is amended by striking out from the third sentence of the last para- 45 USC 228b; graph thereof the phrase “the month” and inserting in lieu thereof the 80 Stat. 1079 following:"the second month following the month".

80 STAT. 1080. (b) Section 2(e) of such Act is amended

65 Stat. 683; (1) by striking out from clause (ii) "who, if her husband were

69 Stat. 715. then to die, would be entitled to a child's annuity under subsection (c) of section 5” and inserting in lieu thereof “who meets the qualifications prescribed in section 5(1) (1), (without regard to the provisions of clause (ii) (B) thereof)"; and

Post, p. 1083, (2) by striking out the words “from time to time" immediately before the colon preceding the first proviso. (c) Section 2(g) of such Act is amended by striking out “who, if her husband were then to die, would be entitled to an annuity under subsection (c) of section 5" and inserting in lieu thereof “who meets the qualifications prescribed in section 5(1) (1) (without regard to the provisions of clause (ii) (B) thereof)”.

(d) Section 2 of such Act is further amended by adding at the end thereof the following new subsection:

“(j) In cases where an annuity awarded under subsection (a) (3) or (h) of this section is increased either by a recomputation 75 Stat. 585; or a change in the law, the reduction for the increase in the 73 Stat. 26. annuity shall be determined separately and the period with respect to which the reduction applies shall be determined as if such increase were a separate annuity payable for and after the

first month for which such increase is effective." Sec. 103. (a) Section 3(b)(1) of the Railroad Retirement Act of 1937 is amended by striking out the phrase "after January 1, 1937" wherever it appears in said section and inserting in lieu thereof “subsequent to December 31, 1936”.

(b) Section 3(c) of such Act is amended by inserting after the last sentence thereof the following new sentence: “Where an employee claims credit for months of service rendered within two years prior to his retirement from the service of an employer, with respect to which the employer's return pursuant to section 8 of this Act has 45 USC 228h. not been entered on the records of the Board before the employee's annuity could otherwise be certified for payment, the Board may, in its discretion (subject to subsequent adjustment at the request of the

45 USC 2280.

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employee) include such months in the computation of the annuity without further verification and may consider the compensation for such months to be the average of the compensation for months in the last period for which the employer has filed a return of the compensation of such employee and such return has been entered on the records of the Board."

(c) (1) Section 3(e) of such Act is amended by striking out from the first proviso in the first paragraph the following: “is less than 110 per centum of the amount, or 110 per centum of the additional amount”, and inserting in lieu thereof the following: “is less than the total amount, or the additional amount, plus 10 per centum of the total amount”; by inserting the word "and" before “women entitled to spouses' annuities”; by striking out from such proviso “and individnals entitled to insurance annuities under subsection (c) of section 5 on the basis of disability to be less than eighteen years of age"; and by striking out the last comma from such proviso and all that follows in such proviso and inserting in lieu thereof the following: "shall be increased proportionately to such total amount, or such additional amount, plus 10 per centum of such total amount."

(2) The said section 3(e) is further amended by striking out entire"; and by inserting before the period at the end of the first paragraph“: Provided further, That if an annuity accrues to an individual for a part of a month, the amount payable for such part of a inonth under the preceding proviso shall be one-thirtieth of the amount payable under the proviso for an entire month, multiplied by the numher of days in such part of a month”.

(d) Paragraph (5) of section 3(f) of such Act is amended by inserting after the phrase "the Social Security Act” the following:“, as in effect before 1957,".

(e) Section 3(g) of such Act is amended by adding at the end thereof the following: "In cases where an individual entitled to an annuity under this Act disappears, no annuity shall accrue to him or to his spouse as such with respect to any month until and unless such individual is shown, by evidence satisfactory to the Board, to have continued in life throughout such month. Where an annuity would accrue for months under section 2(a) for such individual, and under section 2(e) for such individual's spouse, had he been shown to be alive during such months, he shall be deemed, for the purposes of benefits under section 5, to have died in the month in which he disappeared and to have been completely insured : Provided, however, That if he is later determined to have been alive during any of such months, recovery of any benefits paid on the basis of his compensation under section 5 for the months in which he was not known to be alive, minus the total of the amounts that would have been paid as a spouse's annuity during such months (treating the application for a widow's annuity as an application for a spouse's annuity), shall be made in accordance with the provisions of section 9." (f) Section 3(i) of such Act is amended to read as follows:

"(i) If the amount of any annuity computed under this section (other than the proviso of subsection (e)), under section 2 (other than a spouse's annuity payable in the maximum amount), and under section 5, does not, after any adjustment, end in a digit denoting 5 cents, it shall be raised so that it will end in such a digit. If the amount of any annuity under this Act (other than an annuity ending in a digit denoting 5 cents pursuant to the next preceding sentence) is not, after any adjustment, a multiple of

$0.10, it shall be raised to the next higher piultiple of $0.10.Sec. 104. Section 4 of the Railroad Retirement Act of 1937 is amended by redesignating subsections "(i)”, “(j)”, “(k)", and "(1)”

45 USC 228b.

45 USC 228e; Post, p. 1082.

54 Stat. 1100.
45 USC 2281.
72 Stat. 1779.

54 Stat. 1014; 60 Stat. 729. 45 USC 228c-1.

80 STAT. 1082

60 Stat. 729.

as “(h)", " (1),”. “().”, and “(k)”, respectively; by redesignating subsections (n (0)”, “ (p)", (9)”, and “(r)" as " (1)”, “(m)", "(n)”, “(0)”, and “ (p)", respectively; by striking out the phrase "subsection (k)” in subsection “(k)” as redesignated, and inserting in lieu thereof "subsection (j)”; and by striking out "(p) (1)” in subsection "(1)” as redesignated and inserting in lieu thereof“ (n) (1)”.

Sec. 105. (a) The first sentence of section 5(b) of the Railroad Retirement Act of 1937 is amended by striking out “employee entitled to receive an annuity under subsection (c)* and inserting in lieu 45 USC 228e. thereof "employee, which child (without regard to the provisions of subsection (1) (1) (ii) (B)) is entitled to receive an annuity under sub- Post, p. 1084. section (c),”:

(b)(1) The second sentence of such section 5(b) is amended by striking out “no child of the deceased employee is entitled” and inserting in lieu toreof “no child of the deceased employee (without regard to the provisions of subsection (1) (1) (ii) (B)) is entitled”.

(2) The proviso in said section 5(b) and the proviso in section 5(a) are each amended by striking out the words “subsection (e) of”. 65 Stat. 685.

(c) Section 5(f)(1) of such Act is amended (1) by striking out the 72 Stat. 1779. second sentence thereof and inserting in lieu thereof the following: “If there be no such widow or widower, such lump sum shall be paid

“(i) if all or part of the burial expenses of such insured individual which are incurred by or through a funeral home or funeral homes remain unpaid, to such funeral home or funeral homes to the extent of such unpaid expenses, but only if (A) any person who assumed the responsibility for the payment of all or any part of such burial expenses files an application, prior to the expiration of two years after the date of death of such insured individual, requesting that such payment be made to such funeral home or funeral homes, or (B) at least ninety days have elapsed after the date of death of such insured individual and prior to the expiration of such ninety days no person has assumed responsibility for the payment of any of such burial expenses;

“(ii) if all of the burial expenses of such insured individual which were incurred by or through a funeral home or funeral homes have been paid (including payments made under clause (i)), to any person or persons, equitably entitled thereto, to the extent and in the proportions that he or they shall have paid such burial expenses; or

“(iii) if any part of the amount payable under this subsection remains after payments have been made pursuant to clauses (i) and (ii), to any person or persons, equitably entitled thereto, to the extent and in the proportions that he or they shall have paid other expenses in connection with the burial of such insured individual, in the following order of priority: (A) expenses of opening and closing the grave of such insured individual, (B) expenses of providing the burial plot of such insured individual, and (C) any remaining expenses in connection with the burial of such

insured individual.", and (2) by striking out from the third sentence thereof all after the phrase "this paragraph” where it appears the second time in such sentence and inserting in lieu thereof the following: “to the widow or widower to whom a lump sum would have been payable under this paragraph except for the fact that a monthly benefit under this section was payable for the month in which the employee died and who will not have died before receiving payment of such lump sum.

(d) (1) Section 5(f) (2) of such Act is amended by inserting after 62 Stat. 577; "1961" the following: ", and before January 1, 1966, plus an amount equal to the total of all employee taxes payable by him or her after

73 Stat. 27.

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