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pensation paid to an employee during each period covered by the return, and the fact that the Board's records show that no return was made of the compensation claimed to have been paid to an employee during a particular period shall be taken as conclusive that no compensatiton was paid to such employee during that period, unless the crror in the amount of compensation returned in the one case, or the failure to make return of the compensation in the other case, is called to the attention of the Board within four years after the day on which return of the compensation was required to be made.

ERRONEOUS PAYMENTS Sec. 10. (a) If the Board finds that at any time more than the correct amount of annuities or other benefits has been paid to any individual under this Act, or payment has been made to an individual not entitled thereto, recovery by adjustment in subsequent payments to which such individual, or any other individual on the basis of the same compensation, wages, or self-employment income, is entitled under this Act, or the Railroad Unemployment Insurance Act may, except as otherwise provided in this section, be made under regulations prescribed by the Board. If the individual to whom more than the correct amount has been paid dies before recovery is completed, recovery may be made by setoff or adjustments, under regulations prescribed by the Board, in subsequent payments due, under this Act, or the Railroad L'nemployment Insurance Act, to the estate of such individual or to any person on the basis of the compensation, wages, or self-employment income of such individual.

(6) Adjustments under this section may be made either by deductions from subsequent payments or, with respect to payments which are to be made during a lifetime or lifetimes, by subtracting the total amount of annuities or other benefits paid in excess of the proper amount from the actuarial value, as determined by the Board, of such payments to be made during a lifetime or lifetimes and recertifying such payments on the basis of the reduced actuarial ralue. In the latter case, recorery shall be deemed to hare been completed upon such recertification.

(c) There shall be no recorery in any case in which more than the correct amount of annuities or other benefits has been paid under this Act to an individual or payment has been made to an indiridual not entitled thereto who, in the judgment of the Board, is erithout fault when, in the judgment of the Board, recorery would be contrary to the purpose of the Acts or would be against equity or good conscience.

id) No certifying or disbursing officer shall be held liable for any amount certificat or paid hy him in good faith to any person when the recorery of such aount is waired under subsection (c) of this section or hus bien begun but cannot be completed under subsection (a) of this section.

WAITER OF AYNTITIES

Sec. 11. Any person acarded an annuity under this Act may decline to accept all or any part of suh annuity by a vrairer signed and filed with the Board. Such a rairer may be reroked in criting at 185

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any time, but no payment of the annuity waived shall be made corering the period during which such waiver was in effect. Such a uairer will hare no effect on entitlement to, or the amount of, any other annuity or benefit.

INCOMPETENCE

ed thereby, menfs to, such ind and make paye

Sec. 12. (a) Every individual receiving or claiming benefits, or to whom any right or privilege is extended, under this Act or any other Act of Congress now or hereafter administered, in whole or in part, by the Board shall be conclusively presumed to have been competent until the date on which the Board receives written notice, in a form and manner acceptable to the Board, that he is an incompetent, or a minor, for whom a guardian or other person legally tested with the care of his person or estate has been appointed: Provided howerer, That, regardless of the legal com petency or incompetency of an individual entitled to a benefit administered by the Board, the Board may, if it finds the interest of such indiridual to be served thereby, recognize actions by, and conduct transactions with, and make payments to, such individual, or recognize actions by, and conduct transactions with, and make payments to, a relative or some other person for such individual's use and benefit.

(b) Every guardian or other person legally vested with the care of the person or estate of an incompetent or minor who is receiving or claiming benefits, or to whom any right or privilege is extended, under this Act or any other Act of Congress now or hereafter administered, in whole or in part, by the Board shall have power ererywhere, in the manner and to the extent prescribed by the Board, but subject to the provisions of the preceding subsection, to take any action necessary or appropriate to perfect any right or exercise any privilege of the incompetent or minor and to conduct all transactions on his behalf under this or any other Act of Congress now or hereafter administered, in whole or in part, by the Board. Any payment made pursuant to the provisions of this section shall be a complete settlement and satisfaction of any claim, right, or interest in and to such payment.

PENALTIES Sec. 13. (a) Any person who sholl knowingly fail or refuse to make any report or furnish any information required by the Board in the administration of this Act, including the provisions of section 7(6) (2) thereof, or who shall knowingly make or cause to be made any false or fraudulent statement or report when a statement or report is required to be made for the purpose of this Act, or who shall knowingly make or aid in making any false or fraudulent statement or claim for the purpose of causing an award or payment to be made, shall be punished by a fine of not more than $10,000 or by imprisonment not er. ceeding one year, or both.

(6) All fines and penalties imposed by a court pursuant to this Act shall be paid to the court and be remitted from time to time by order of the judge to the Treasury of the United States to be credited to the Railroad Retirement Account.

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priated to the United 1936 tablished

EXEMPTION FROM LEGAL PROCESS Sec. 14. Notwithstanding any other law of the United States, or of any State, territory, or the District of Columbia, no annuity or supplemental annuity shall be assignable or be subject to any tax or to garnishment, attachment, or other legal process under any circumstances whatsoever, nor shall the payment thereof be anticipated: Provided, however, That the provisions of this section shall not operate to exclude the amount of any supplemental annuity paid to an individual under section 2(b) of this Act from income taxable pursuant to the Federal income tax provisions of the Internal Revenue Code of 1954.

RAILROAD RETIREMENT ACCOUNT Sec. 15. (a) The Railroad Retirement Account established by section 15(a) of the Railroad Retirement Act of 1937 shall continue to be maintained in the Treasury of the United States. There is hereby authorized to be appropriated to such Account for each fiscal year, beginning with the fiscal year ending June 30, 1975, to provide for the payment of benefits to be made from such Account in accordance with the provisions of section 7(c)(1) of this Act, and to provide for expenses necessary for the Board in the administration of all provisions of thix Act, an amount equal to amounts corered into the T'reasury (minus refunds) during each fiscal year under the Railroad Retirement Tax Act, except those portions of the amounts corered into the Treasury under sections 3211(b), -3221(c), and 3221(d) of such Tax Act as are necessary to provide sufficient funds to meet the obligation to pay supplemental annuities at the level prorided under section 3(e) of this Act and, with respect to those entitled to supplemental annuities under section 205(a) of title Il of this Act, at the level provided under section 20.5(a). The Board is directed to determine what portion of the taxes collected under sections 3211(b), 3221(c), and 3221 (d) of the Railroad Retirement Tax Act is to be credited to the Railroad Retirement Account pursuant to the preceding provisions of this subsection and what portion of such taxes is to be credited to the Railroad Retirement Supplemental Account pursuant to the provisions of subsection (c) of this section. The Board shall make such a determination with respect to each calendar quarter commencing with the quarter beginning January 1, 1975, shall make each such determination not later than fifteen days before each calendar quarter, and shall, as soon as practicable after each such determination, advise the Secretary of the Treasury of the determination made. The Secretary of the Treasury shall credit the amounts covered into the Treasury under sections 3211(b), 3221 (c), and 3221(d) of the Railroad Retirement Tax Act to the Railroad Retirement Account and the Railroad Retirement Supplemental derount in such proportion as is determined by the Board pursuant to the provisions of this subsection.

(6) In addition to the amount authorized to be appropriated in subsection (a) of this section, there is hereby authorized to be appropriated to the Railroad Retirement Account for each fiscal year, beginning with the fiscal year ending June 30, 1975, such amount as the Board determines to be necessary to meet (A) the additional costs. resulting from the crediting of military service under this Act, of 187

benefits payable under section 2 of this Act, but only to the extent that such Account is not reimbursed for such costs under section 7(c)(2), (B) the additional administrative er penses resulting from the crediting of military service under this Act, and (C) any lo88 in interest to such Account resulting from the payment of additional benefits based on military service credited under this Act: Provided, however, That, in determining the amount to be appropriated to the Railroad Retirement Account for any fiscal year pursuant to the prorisions of this subsection, there shall not be considered any costs resulting from the crediting of military service under this Act for which appropriations to such Account have already been made pursuant to section 4(1) of the Railroad Retirement Act of 19.37. Any determination as to loss in interest to the Railroad Retirement Account pursuant to clause (C) of the first sentence of this subsection shall take into account interest from the date each annuity based, in part, on military serrice began to accrue or was increased to the date or dates on which the amount appropriated is credited to the Account. The cost resulting from the payment of additional benefits under this Act based on military service determined pursuant to the preceding provisions of this subsection shall be adjusted by applying thereto the ratio of the total net lerel cost of all benefits under this Act to the portion of such net lerel cost remaining after the exclusion of administrative erpenses and interest charges on the unfunded accrued liability as determined under the last completed actuarial valuation pursuant to the prorisions of subsection (f) of this section. At the close of the fiscal year ending June 30, 1975, and each fiscal year thereafter, the Board shall, as promptly as practicable, determine the amount to be appropriated to the Account pursuant to the provisions of this subsection, and shall certify such amount to the Secretary of the Treasury for transfer from the general fund in the Treasury to the Railroad Retirement Account. When authorized by an appropriation Act, the Secretary of the Treasury shall transfer to the Railroad Retirement Account from the general fund in the Treasury such amounts ax, from time to time, may be determined by the Board pursuant to the provisions of this subsection and certified by the Board for transfer to such Account. In any determination made pursuant to section 7(c)(2) of this Act, 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 section 4(1) of the Railroad Retirement Act of 19.37 shall have been credited to the Railroad Retirement Account, but the additional benefit payments incurred by kuch Trust Funds by reason of such military service shall be taken in account in making any such determination.

(c) The Railroad Retirement Supplemental Account established by section 15(b) of the Railroad Retirement Act of 1937 shall continue to be maintained in the Treasury of the United States. There is hereby authorized to be appropriated to such account for each fiscal year, beginning with the fiscal year ending June 30, 1975, to provide for the payment of supplemental annuities under section 2(6) of this Act, and to provide for the expenses necessary for the Board in the administration of the payment of such supplemental annuities, an

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amount equal to such portions of the amounts covered into the Treasury (minus refunds) during each fiscal year under sections 3211(b), 3221 (c), and 3221(d) of the Railroad Retirement Tax Act as are not appropriated to the Railroad Retirement Account pursuant to the provisions of subsection (a) of this section.

(d) There is hereby authorized to be appropriated to the Railroad Retirement Account for each fiscal year, beginning with the fiscal year ending June 30, 1976, such sums as the Board determines to be necessary on a level basis to pay before the end of fiscal year 2000 the total of (A) the amounts of the annuities paid and to be paid after 1974 pursuant to the provisions of sections 3(h), 4(e), and 4 (h) of this Act and pursuant to the provisions of sections 204(a) (3), 204 (a) (4), 206 (3), and 207(3), of title II of this Act, plus (B) any loss in interest to such Account resulting from the payment of such amounts reduced by (C) such amount as the Board determines, on an estimated basis, is equal to the excess of (i) the interest which such account orill actually earn in the fiscal years 1976 through 2000 orer (ii) the interest which such account would have earned in such fiscal years if the prorisions of subsction (e) of this section irere identical to the provisions of sec. tion 15(c) of the Railroad Retirement Act of 1937. The Board shall. at the time of each actuarial valuation made prior to the fiscal year 2000 pursuant to the provisions of subsection (g) of this section.

(e) At the request and ilirection of the Board, it shall be the duty of the Secretary of the Treasury (hereinafter referred to as the “See retary") to invest such portion of the amounts credited to the Railroad Retirement Account and the Railroad Retirement Supplemental Arcount as, in the judgment of the Board, is not immediately required for the payment of annuities, supplemental annuities, 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 (A) on original issue at the issue price; or (B) by purchase of outstanding obligations at the market price. The purposes for which obligations of the I'nited States may be issued under the Second Liberty Bond Act, as amended, are hereby ertended to author. ize the issuance at par of special obligations exclusirely to the accounts. Such obligations issued for purchase by the accounts shall hare maturities fired with due regard for the needs of the accounts, and shall bear interest at a rate equal to the arerage market yield, computed as of the end of the calendar month next preceding the date of such issue, borne by all marketable interest-bearing notes of the United States then forming a part of the public debt that are not due or callable until after the erpiration of three years from the end of such calendar month, ercept that rhere such rate is not a multiple of one-eighth of 1 percentum, 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. At the request of the Board the Secretary shall purchase other interest-bearing obligations of the lnited States, or obligations guaranteed as to both principal and interest by the Tinited States, or other obligations which are lauful inrestments for trust funds of the lnited States, on original issue or at the market price : Provided, That the interest yield of such obligations shall be not less than the interest rate determined in accordance irith the pre

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