113 1 Account in such proportions as is determined by the Board 2 pursuant to the provisions of this subsection. 3 "(b) In addition to the amount authorized to be appro4 priated in subsection (a) of this section, there is hereby au5 thorized to be appropriated to the Railroad Retirement Ac6 count for each fiscal year, beginning with the fiscal year 7 ending June 30, 1975, such amount as the Board determines to be necessary to meet (A) the additional costs, resulting 9 from the crediting of military service under this Act, of 10 benefits payable under section 2 of this Act, but only to 11 the extent that such Account is not reimbursed for such costs 12 under section 7 (c) (2), (B) the additional administrative 13 expenses resulting from the crediting of military service 14 under this Act, and (C) any loss in interest to such Account 15 resulting from the payment of additional benefits based on 16 military service credited under this Act: Provided, however, 17 That, in determining the amount to be appropriated to the 18 Railroad Retirement Account for any fiscal year pursuant to 19 the provisions of this subsection, there shall not be consid20 ered any costs resulting from the crediting of military serv21 ice under this Act for which appropriations to such Account 22 have already been made pursuant to section 4 444✈ (1) of the 23 Railroad Retirement Act of 1937. Any determination as to 24 loss in interest to the Railroad Retirement Account pursuant 114 1 to clause (C) of the first sentence of this subsection shall 2 take into account interest from the date each annuity based, 3 in part, on military service began to accrue or was increased 4 to the date or dates on which the amount appropriated is 5 credited to the Account. The cost resulting from the payment 6 of additional benefits under this Act based on military serv7 ice determined pursuant to the preceding provisions of this 8 subsection shall be adjusted by applying thereto the ratio 9 of the total net level cost of all benefits under this Act to the 10 portion of such net level cost remaining after the exclusion 11 of administrative expenses and interest charges on the un12 funded accrued liability as determined under the last com13 pleted actuarial valuation pursuant to the provisions of sub14 section (g) of this section. At the close of the fiscal year 15 ending June 30, 1975, and each fiscal year thereafter, the 16 Board shall, as promptly as practicable, determine the 17 amount to be appropriated to the Account pursuant to the 18 provisions of this subsection, and shall certify such amount 19 to the Secretary of the Treasury for transfer from the general 20 fund in the Treasury to the Railroad Retirement Account. 21 When authorized by an appropriation Act, the Secretary of the Treasury shall transfer to the Railroad Retirement Ac23 count from the general fund in the Treasury such amounts 24 as, from time to time, may be determined by the Board pur25 suant to the provisions of this subsection and certified by the 26 Board for transfer to such Account. In any determination 115 made pursuant to section 7 (c) (2) of this Act, no further 2 charges shall be made against the Trust Funds established by 3 title II of the Social Security Act for military service ren 4 dered before January 1, 1957, and with respect to which 5 appropriations authorized by clause (2) of the first sen 6 tence of section 44 (1) of the Railroad Retirement Act of 7 9 1937 shall have been credited to the Railroad Retirement 8 Account, but the additional benefit payments incurred by such Trust Funds by reason of such military service shall be 10 taken in account in making any such determination. 11 "(c) The Railroad Retirement Supplemental Account 12 established by section 15 (b) of the Railroad Retirement Act 13 of 1937 shall continue to be maintained in the Treasury of 14 the United States. There is hereby authorized to be ap15 propriated to such account for each fiscal year, beginning 16 with the fiscal year ending June 30, 1975, to provide for 17 the payment of supplemental annuities under section 2 (b) 18 of this Act, and to provide for the expenses necessary for the Board in the administration of the payment of such supple20 mental annuities, an amount equal to such portions of the 21 amounts covered into the Treasury (minus refunds) during 22 each fiscal year under sections 3211 (b), 3221 (c), and 23 3221 (d) of the Railroad Retirement Tax Act as are not 24 appropriated to the Railroad Retirement Account pursuant to the provisions of subsection (a) of this section. 19 25 40-239 (Pt. 2) O 74 - 45 1 116 "(d) There is hereby authorized to be appropriated to 2 the Railroad Retirement Account for each fiscal year, begin 3 ning with the fiscal year ending June 30, 1976, such sums 5 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 6 amounts of the annuities paid and to be paid after 1974 7 pursuant to the provisions of sections 3 (h), 4 (e), and 4 (h) 8 of this Act and pursuant to the provisions of sections 204 (a) (3), 204 (a) (4), 206(a)(3), and 207 (3) of title II of 10 this Act, plus (B) any loss in interest to such Account 11 resulting from the payment of such amounts reduced by (C) 12 such amount as the Board determines, on an estimated basis, 13 is equal to the excess of (i) the interest which such account 14 will actually earn in the fiscal years 1976 through 2000 over 15 (ii) the interest which such account would have earned in 16 such fiscal years if the provisions of subsection (e) of this 17 section were identical to the provisions of section 15 (c) of the 18 Railroad Retirement Act of 1937. One half of 4 percent of 19 taxable payroll for each such fiscal year. The Board shall, at the time of each actuarial valuation made prior to the fiscal 220 21 year 2000 pursuant to the provisions of subsection (g) of this 22 section 1994, and 1999 re-evaluate the amount determined 23 under the preceding sentence for the purpose of determining 24 the amounts to be appropriated thereunder. 25 225 "(e) At the request and direction of the Board, it 26 shall be the duty of the Secretary of the Treasury (herein 117 1 after referred to as the 'Secretary') to invest such portion 2 of the amounts credited to the Railroad Retirement Ac3 count and the Railroad Retirement Supplemental Account 4 as, in the judgment of the Board, is not immediately re5 quired for the payment of annuities, supplemental annuities, 6 and death benefits. Such investments may be made only 7 in interest-bearing obligations of the United States or in ob8 ligations guaranteed as to both principal and interest by the 9 United States. For such purpose such obligations may be 10 acquired (A) on original issue at the issue price; or (B) 11 by purchase of outstanding obligations at the market price: 12 The purposes for which obligations of the United States may 13 be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of 15 special obligations exclusively to the accounts. Such obliga16 tions issued for purchase by the accounts shall have ma17 turities fixed with due regard for the needs of the accounts, 18 and shall bear interest at a rate equal to the average market 19 yield, computed as of the end of the calendar month next 20 preceding the date of such issue, borne by all marketable 21 interest-bearing notes of the United States then forming a 22 part of the public debt that are not due or callable until 23 after the expiration of three years from the end of such 24 calendar month, except that where such rate is not a multiple 25 of one-eighth of 1 per centum, the rate of interest on such 26 obligations shall be the multiple of one-eighth of 1 per centum 14 |