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(a) by striking out "Railroad Retirement Act of

1937 and the Railroad Retirement Act of 1935" and

inserting in lieu thereof "Railroad Retirement Act of 1974"; and

(b) by striking out "such Acts" and inserting in

lieu thereof "such Act".

SEC. 405. Section 12 (1) of the Railroad Unemployment

8 Insurance Act is amended by striking out "section 10 (b) (4) 9 of the Railroad Retirement Act of 1937" and inserting in lieu 10 thereof "subdivisions (5), (6), and (9) of section 7 (b) of 11 the Railroad Retirement Act of 1974".

12 TITLE V-AMENDMENTS TO THE INTERNAL

REVENUE CODE OF 1954

SEC. 501. (a) Section 3221 (c) of the Internal Revenue Code of 1954 is amended

(1) by striking out "for appropriation to the Railroad Retirement Supplemental Account provided for in section 15 (b) of the Railroad Retirement Act of 1937":

(2) by striking out "under section 3 (j) of such Act" and inserting in lieu thereof "at the level provided under section 3 (j) of the Railroad Retirement Act of 1937 as in effect on December 31, 1974"; and

(3) by inserting after "section 3 (j) (2) of the

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Railroad Retirement Act of 1937" "or section 2 (h)

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(2) of the Railroad Retirement Act of 1974".

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(b) Section 3221 (d) of such Code is amended

(1) by striking out "section 3 (j) of the Railroad Retirement Act of 1937" and inserting in lieu thereof "section 2 (b) of the Railroad Retirement Act of 1974"; and

(2) by striking out "section 3 (j) of such Act" and inserting in lieu thereof "section 2 (b) of such Act". SEC. 502. Section 6413 (c) of the Internal Revenue 11 Code of 1954 is amended

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(a) by inserting "or section 3201, or by both such sections," after "section 3101" in paragraph (1) thereof; and

(b) by adding at the end of paragraph (1) the following new sentence: "The term 'wages' as used in this paragraph shall, for purposes of this paragraph, include 'compensation' as defined in section 3231 (e)."

TITLE VI-MISCELLANEOUS PROVISIONS AND

EFFECTIVE DATES

SEC. 601. Section 3 (a) (6) of the Railroad Retirement

22 Act of 1937 is amended by adding at the end thereof the

23 following new sentences: "If the individual entitled to an in

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crease determined under the preceding provisions of this 25 paragraph is also entitled to a benefit for the same month

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1 under title II of the Social Security Act, there shall, any pro2 visions to the contrary notwithstanding, be offset against the 3 total of the increase, or increases, of such individual deter4 mined under the preceding provisions of this paragraph, any 5 amount by which such individual's social security benefit 6 was increased during the period July 1, 1974, through De7 cember 31, 1974. For purposes of approximating any such 8 offsets, the Railroad Retirement Board is authorized to de9 termine the percentage figure which, when applied against 10 current social security benefits, will produce approximately 11 the amount of the increase, or increases, in social security 12 benefits during the period July 1, 1974, through Decem13 ber 31, 1974. The amount produced by applying such per14 centage figure to the current social security benefit of an 15 individual shall be the amount utilized in making the offset 16 prescribed by the provisions of this paragraph."

17 SEC. 602. (a) The provisions of title I of this Act shall 18 become effective on January 1, 1975, except as otherwise 19 provided herein: Provided, however, That annuities awarded 20 under section 2 of the Railroad Retirement Act of 1974 on 21 the basis of an application therefor filed with the Board on or 22 after such date may, subject to the limitations prescribed in 23 section 5(a) of such Act, begin prior to such date, except 24 that no annuity under paragraph (ii) of section 2 (a) (1)

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1 of such Act shall begin to accrue to a man prior to July 1,

2 1974.

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(b) The provision of section 1 (0) of the Railroad Re4 tirement Act of 1974 which provides that a "current con5 nection with the railroad industry" will not be broken by 6 "employment with the Department of Transportation, the 7 Interstate Commerce Commission, the National Mediation 8 Board, or the Railroad Retirement Board" shall not be ap9 plicable (A) for purposes of paragraph (iv) of section 10 2 (a) (1) of such Act, to an individual who became disabled, as provided for purposes of such paragraph, prior to Jan12 uary 1, 1975, (B) for purposes of section 2 (b) (1) of such 13 Act, to an individual whose annuity under section 2 (a) of 14 the Railroad Retirement Act of 1937 or section 2 (a) (1) 15 of the Railroad Retirement Act of 1974 first began to ac16

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crue prior to January 1, 1975, and (C) for purposes of 17 section 2 (d) (1) of such Act, to a survivor of a deceased 18 employee if such employee died prior to January 1, 1975. 19 (c) The provisions of clause (i) (B) and clause (ii) 20 (B) of section 2 (c) (1) of the Railroad Retirement Act of 21 1974 shall not be applicable to the spouse of an individual if 22 (A) such individual will have completed thirty years of serv23 ice and will have been awarded an annuity under section 2 (a) of the Railroad Retirement Act of 1937 or section 2 (a)

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1 (1) of the Railroad Retirement Act of 1974 which first 2 began to accrue prior to July 1, 1974, or (B) such individual 3 will have completed less than thirty years of service and will 4 have been awarded an annuity under section 2 (a) of the 5 Railroad Retirement Act of 1937 of section 2 (a) (1) of the 6 Railroad Retirement Act of 1974 which first began to accrue 7 prior to January 1, 1975. For purposes of the entitlement of 8 the spouse of an individual described in clause (A) or (B) 9 of the preceding sentence to an annuity under such section 2 10 (c) (1), the provisions of clause (i) (B) of such section 2 (c) (1) shall be deemed to read: "(B) has attained the age 12 of 65".

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(d) The provisions of section 2 (b) (1) of the Railroad 14 Retirement Act of 1974 which permit an individual to become entitled to a supplemental annuity thereunder if he "has 16 attained age 60 and completed thirty years of service" shall 17 not be applicable to an individual who was awarded an an18 nuity under section 2 (a) of the Railroad Retirement Act of 19 1937 or section 2 (a) (1) of the Railroad Retirement Act 20 of 1974 which first began to accrue prior to July 1, 1974. (e) The provisions of section 7 (e) of the Railroad 22 Retirement Act of 1974 shall be effective on the enactment 23 date of this Act and shall apply with respect to all gifts 24 and bequests covered thereunder, regardless of the date on 25 which such gifts or bequests were made.

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