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(4) Applications for accrued and unpaid annuities provided for in the preceding subdivisions of this subsection shall be filed prior to the expiration of two years after the death of the person to whom such annuities were originally due.

(5) If there is no person to whom all or any part of the payments described in subdivision (1), (2), or (3) can be made, such payment or part thereof shall escheat to the credit of the Railroad Retirement Account.

(6) For the purposes of this subsection and subsection (c) of this section, a widero or widower of an individual shall be deemed to hare been living with the individual at the time of the indiridual's death if the applicable conditions set forth in section 216(h) (2) or (3) of the Social Security Act, as in effect before 1957, are fulfilled.

(7) In determining for purposes of this subsection and subsections (c) and (d) of this section whether an applicant is the widou, widourer, child, or parent of an employee as claimed, the rules set forth in section 216(h) of the Social Security Act shall be applied. In determining for purposes of this subsection and subsections (c) and (d) of this section whether an applicant is the grandchild, brother, or sister of an employee as claimed, the Board shall apply such law as would be applied in determining the derolution of intestate personal property by the courts of the State in which such employee was domiciled at the time of his death, or if such employee was not so domiciled in any State, by the courts of the District of ('olumbia. Appli. cants icho according to such lair irould hare the same status relatire to taking personal property as a grandchild, brother, or sister shall be deemed such.

(b) (1) l'pon the death of an indiridual who irill hare completed ten years of serrice prior to January 1, 1975, and rill hare had a current connection with the railroad industry at the time of his death, 11 lump-sum payment shall be made in accordance irith the prorisions of section 5(f) (1) of the Railroad Retirement Act of 19.37 as in effect on December 31, 1974, in an amount, if any, which would hare been payable under such section 5(f) (1) on the basis of (1) the indiridual's compensation after December 31, 19.36, and prior to Janunry 1, 1975, and (B) the indiridual's orages (als defined in section 209 of the Social Security Act) prior to January 1, 197). Any lump sum payable under this subilirixion shall be in an amount computed as if the indiridual had liell on January 1, 195.

(-) ( pon the death of an indiricual irho irill not hare completed ton years of 'st price prior to January 1, 1975, but iho li) rill hare completel ton yells of sorries at the time of his death. (ii) irill hare huu am current connection with the milrood industry at the time of his slenih, med livi) rrill hory die lerina no iridoir, iridoiror, child, or parent choicoulel on proper application therefor be entitled to receire inn annuity under section () of this Act for the month in chich such sleuth ormurruil, a lump-sum tenth pryment shall be made in accordmure rrith the prorisions of section 2011) of the Social Security Art in an immountiquel to the immount orhich roulil hinne been pryable wwer such siction () if such individuals seprire (1x inn employce after December 31, 1936, vrere included in the term "mployment" as defined in that Act. If a lump sum irould he paryable to a ridoir or

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widover under this subdivision except for the fact that a survivor vill have been entitled to receive an annuity for the month in which the individual will have died, but within one year after the indiridual's death there will not have accrued to survivors of the indiridual, by reason of his death, annuities which, after all deductions pursuant to sections 2(g) and 2(h) of this Act, are equal to such lump sum, a payment equal to the amount by which such lump sum exceeds such annuities so accrued after such deductions shall then neverthele8s be made under this subdivision to the widow or widower to whom a lump sum would hare been payable under this subdivision except for the fact that a monthly benefit under section 2(d) of this Act was payable for the month in which the individual died, if such widow or acidower will not have died before receiving payment of such lump sum.

(c)(1) Whenever it shall appear, with respect to the death of an employee, that no benefits, or no further benefits (other than benefits payable to a widou, widower, or parent under either this Act or the Social Security Act upon attaining the age of eligibility therefor at a future date) will be payable under this Act or under the Social Se. curity Act, a lump sum in an amount computed under subdivision (2) of this subsection shall be paid to such person or persons as the dereased employee may have designated by a writing filed with the Board prior to his or her death, or if there be no designation, to the following person (or, if more than one, in equal shares to the persons) whose relationship to the deceased employee will have been determined by the Board and who will not have died before receiving payment of the lump sum prorided for in this subdivision

(i) the widow or widower of the deceased employee who was living with such employee at the time of such employee's death; or

(ii) if there be no such widow or widower, to any child or children of such employee; or

(üü) if there be no such widow, widower, or child, to any grandchild or grandchildren of such employee; or

(iv) if there be no such vidou, widower, child, or grandchild, to any parent or parents of such employee; or

() if there be no such widow, widower, child, grandchild, or parent, to any brother or sister of such employee; or

(ri) if there be no such widorr, vidouer, child, granchild, par

ent, brother, or sister, to the estate of such employee : Prorided, howerer, That if the employee is survived by a widowe. rridower, or parent who may upon attaining the age of eligibility be entitled to benefits under this Act or under the Social Security Act. such lump sum shall not be paid unless such widow, widower, or parent makes and files with the Board an irrerocable election, in such form as the Board may prescribe, to hare such lump sum be paid in lieu of all benefits to inhich such vidou, widower, or parent might otherwise become entitled under this Act on the basis of the deceased employee's compensation and years of service or under the Social Security Act on the basis of the deceased employee's uages from (A) employment irith an employer as defined in section 1(a) of this Act or (B) service as an employee representative us defined in section 1(c) of this Act. dny election made and filed by a widow, widower, or parent pursuant to this subdirision shall be legally effective according to itx termx,

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(2) The lump sum provided under subdivision (1) of this subsection shall be in an amount equal to (A) the sum of 4 per centum of the deceased employee's compensation paid after December 31, 1936, and prior to January 1, 1947, plus 7 per centum of such employee's compensation paid after December 31, 1946, and before January 1, 1959, plus 71.2 per centum of such employees' compensation paid after December 31, 1958, and before January 1, 1962, plus 8 per centum of such employee's compensation paid after December 31, 1961, and before January 1, 1966, plus an amount equal to the total of all employee tares payable by such employee after December 31, 1965, and before January 1, 1975, under the provisions of section 3201 of the Railroad Retirement Tax Act (excluding, for this purpose, the amount of the employee tax attributable to that portion of the tax rate derived from section 3101 (6) of the Internal Rerenue Code of 1954), plus one-half of 1 per centum of the compensation on which such taxes were payable, deeming the compensation attributable to creditable military service after June 30, 1963, and before January 1, 1975, to be tarable compensation, and one-half of the taxes payable by an employee representatire under section 3211 of the Railroad Retirement Tax Act to he employee tares under section 3201 of such Act, minus (B) the sum of all benefits paid to such employee, and to others deriring from such employee, during his or her life, or to others by reason of his or her death, under this Act, the Railroad Retirement Act of 1937, or the Social Security Act (excluding, for this purpose, payments to proriders of serrices under section (d) of this Act or sertion 21 of the Railroad Retirement Act of 19.37, my amounts by rhich that portion of the annuities provided the employee under section 3(a) of this Act or his spouse under section f(a) of this Act rere increased by reason of the employee's wages and self-employment income derired from employment and self-employment under the Social Security Act, that portion of the muities prorided the employee under section 3 (h) of this Act or his spouse under sertion hle) of this Act, and so much of the benefits paid to the employer and to others deriring from him or her under the Sorial Security fet during his or her lifetime as irould hare bron payable under that Act if such employee had not rendered serrice as an employee as defined in sertion 11 b) of this Act). In computing compensation for purposes of this subdirixion there shall be irrluded rompensation in ercise of 8.300 for any month before July 1. 1954; compensation in erros* of $.3.50 for any month after June 30, 1954. and before June 1. 1959: compensation in ercess of $400 for any month after Jay-31, 1959, and before lorember 1, 1963, compensation in e rrexs of $4.70 for my mouth after October 31, 1963, and before October 1, 195; in compensation in crcres of (i) $450 or (ii) an amount equal to one-turelfth of the current marimum annual taxable

irger" 18 defined in section 3121 of the Internal Rerenue Code of 1954, ichichever is greater, for any month after September 30, 1965.

(d)(1) Every indiridual irhoirill hurre completed ten years of serrice at the time of his retirement or death, but does not meet the qualifi. cations for im annuity amount determined under the prorisions of sertion 3th) (1) of 3(h) (2) of this Art, shall, at the time his annuity under xertion 2(a)(1) begins to dermue, be entitled to a lump sum in the amount provided under subdirixion (2) of this subsection. If an individual othertoise eligible for a lump sum under this section dies

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before he becomes entitled to an annuity under section 2(a)(1) of this .1ct, or before he receives payment of such lump sum, such lump sum shall be payable to the person, if any, who is determined by the Board to be such indiridual's widow or widower and who will not hare died before receiving payment of such lump sum. If there be no such widow or iridouer, such lump sum shall be payable to the children, grandchildren, parents, brothers and sisters, or the estate of the deceased individual in the same manner as if such lump sum were a lump sum payable under subsection (c)(1) of this section.

(2) T'he lump sum provided under subdirision (1) of this subsection shall be in an amount equal to the sum of (A) 1.5 per centum of so much of such individual's combined earnings for any calendar year after 1950 and before 1954 as is in excess of $3,600, plus (B) 2 per centum of so much of such individual's combined earnings for any calendar year after 195.3 and before 1957 as is in excess of $4.200, plus ((') 2.25 per centum of so much of such individual's combined earnings for any calendar year after 1956 and before 1959 as is in excess of $4200, plus (D) 2.5 per centum of so much of such indiridual's combined earnings for the calendar year 1959 as is in excess of $4,800, plus (E) 3 per centum of so much of such individual's comoinea earnings for each of the calendar years 1960 and 1961 as is in excess of $4.800 plus (F) 3.125 per centum of so much of such individual's combined earnings for the calendar year 1962 as is in ercess of $4,800, plus (G) 3.625 per centum of so much of such individual's combined earnings for any calendar year after 1962 and before 1966 as is in excess of $5. ), plus (II) 4.2 per centum of so much of such individual's combined earnings for the calendar year 1966 as is in excess of $6,600. plux (1) 4.4 per centum of 80 much of such individual's combined earn. ings for the calendar year 1967 as is in excess of $6.600, plus (1) 3.8 per centum of so much of such individual's combined earnings for the calendar year 1968 as is in excess of $7,800, plus (K) 4.2 per centum of so much of such individual's combined earnings for each of the calendar years 1969 and 1970 as is in ercess of $7,800, plus (L) 1.6 per centum of so much of such individual's combined earnings for the calendar year 1971 as is in excess of $7,800, plus (M) 4.6 per centum of so much of such individual's combined earnings for the calendar year 1972 as is in excess of $9,000, plus (N) 4.85 per centum of so much of such individual's combined earnings for the calendar year 1973 as is in excess of $10,800, plus (0) 4.95 per centum of so much of such indiridual's combined earnings for the calendar year 1974 as is in ercess of $13,200. For purposes of this subsection, the term "combined earning8" shall include "compensation" as defined in section 1(h) of the Railroad Retirement Act of 19.37, "wages" as defined in section 209 of the Social Security Act, and self-employment" income (18 defined in section 211 (6) of the Social Security Act.

POWERS AND DUTIES OF THE BOARD SEC. 7. (a) This Act shall be administered by the Railroad Retirement Board established by the Railroad Retirement Act of 1937 as an independent agency in the executive branch of the Government and composed of three members appointed by the President, by and urith the advice and consent of the Senate. Each member shall hold office 178

for a term of five years, except that any member appointed to fill a racancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of the term and any member holding office pursuant to appointment under the Railroad Retirement Act of 1937 when this Act becomes effertire shall hold office until the term for which he was appointed under such Railroad Retirement Act of 1937 expires. One member shall be appointed from recommendations made by representatirex of the employees and one member shall be appointed from recommendations made by representatives of employers as defined in paragraph (i) of section 1(a)(1) of this Act, in both cases as the President shall direct 80 as to provide representation on the Board satisfactory to the largest number, respectively, of employees and employers concerned. One member, who shall be the chairman of the Board, shall be appointed uithout recommendation by either employers or employees and shall not be in the employment of or be pecuniarily or otherrise interested in any employer or organization of employees. Vacancies in the Board shall not impair the powers or affect the duties of the Board or of the remaining members of the Board, of whom a majority of those in offire shall constitute a quorum for the transaction of business. I'pon the erpiration of his term of office a member shall continue to serre until his successor is appointed and shall hare qualified.

(6) (1) T'he Board shall hare and erercise all the duties and porrerx necessary to administer this Act. The Board shall take such steps as may be necessary to enforce such Act and make awards and certify payments. Decisions by the Board upon issues of law and fact relating to annuities or death benefits shall not be subject to rerieur by any other administratire or accounting officer, agent, or employee of the l'nited States. (2) In the case of

(A) an indiridual who will hare completed ten years of semiice creditable under this Act,

(B) the wife or husband of such an indiridual,

(C) any surriror of such an indiridual if such surriror is entitled, or could upon application become entitled, to an annuity under section 2 of this Act, and

(D) any other person entitled to bene fits under title II of the Social Security Act on the basis of the wages and self-employment income of such an indiridual (except a surriror of such an indiridual where such indiridual did not hare a current conner.

tion with the railroad industry at the time of his death), the Board shall provide for the payment on behalf of the Janaging Trustee of the Federal Old-Age and Surrirors Insurance Trust Fund and the Federal Disability Trust Fund of monthly benefits payable under title II of the Social Security Act which are certified by the Secretary to it for payment under the prorisions of title II, of the Sorial Security Act.

(-3) If the Board finds that an applicant is entitled to an annuity or death benefit under the prorixions of this Art then the Board shall makt an anrurd firing the amount of the annuity or benefit, as the case may be, and shall certify the pryment then of as hereinafter prorided; otherwise the appliuution shall be denied. For purposes of

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