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1 sion to other persons or circumstances, shall not be affected

2 thereby.

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"SHORT TITLE

"SEC. 21. This Act may be cited as the 'Railroad Retire

5 ment Act of 1974'."

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TITLE II-TRANSITIONAL PROVISIONS

SEC. 201. The claims of individuals who, prior to the 8 effective date of title I of this Act, became eligible for 9 annuities, supplemental annuities, or death benefits under 10 section 2, 3 (j), or 5 of the Railroad Retirement Act of 1937 11 shall be adjudicated by the Board under that Act in the same 12 manner and with the same effect as if title I of this Act had 13 not been enacted: Provided, however, That no annuity, sup14 plemental annuity, or death benefit shall be awarded under 15 the Railroad Retirement Act of 1937 on the basis of an 16 application therefor filed with the Board on or after the 17 effective date of title I of this Act: Provided further, That 18 no annuity under the Railroad Retirement Act of 1935, no 19 annuity or supplemental annuity under the Railroad Retire20 ment Act of 1937, and no pension under section 6 of the 21 Railroad Retirement Act of 1937 shall be payable for any 22 month after December 31, 1974.

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SEC. 202. (a) Every individual who would have been 24 entitled to an annuity under the Railroad Retirement Act of 25 1935 for the month of January 1975, if this Act had not

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1 been enacted, shall be entitled to an annuity under paragraph 2 (i) of section 2 (a) (1) of the Railroad Retirement Act of 3 1974, beginning January 1, 1975, in an amount determined 4 under the provisions of section 3 (a) of such Act, which 5 amount shall initially be equal to the amount determined 6 under clause (i) of section 3 (a) (6) of the Railroad Retire7 ment Act of 1937 for the purpose of computing the last 8 increase in such individual's annuity under the Railroad 9 Retirement Act of 1935 pursuant to the provisions of section 10 105 of Public Law 93-69, less the amount of any monthly 11 insurance benefit to which such individual is actually entitled (before any deductions on account of work) under the Social 13 Security Act.

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(b) The amount of the annuity of an individual under 15 subsection (a) of this section shall be increased by an 16 amount, if any, equal to the amount by which (i) his annuity 17 under the Railroad Retirement Act of 1935 for the month 18 of December 1974 exceeds (ii) his annuity under subsection 19 (a) of this section for the month of January 1975.

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SEC. 203. (a) Every individual who would have been

21 entitled to a pension under section 6 of the Railroad Retire22 ment Act of 1937 for the month of January 1975, if this Act 23 had not been enacted, shall be entitled to an annuity under 24 paragraph (i) of section 2 (a) (1) of the Railroad Retire25 ment Act of 1974 in an amount determined under the provi

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1 sions of section 3 (a) of such Act, which amount shall 2 initially be equal to the amount determined under clause (i) 3 of section 3 (a) (6) of the Railroad Retirement Act of 1937 4 for the purpose of computing the last increase in such in5 dividual's pension under section 6 of the Railroad Retire6 ment Act of 1937 pursuant to the provisions of section 105 7 of Public Law 93-69, less the amount of any monthly insur8 ance benefit to which such individual is actually entitled (before any deductions on account of work) under the Social 10 Security Act.

11 (b) The amount of the annuity of an individual under 12 subsection (a) of this section shall be increased by an 13 amount, if any, equal to the amount by which (i) his pen14 sion under section 6 of the Railroad Retirement Act of 1937 15 for the month of December 1974 exceeds (ii) his annuity 16 under subsection (a) of this section for the month of 17 January 1975.

18 (c) The annuities of each individual under the preced19 ing subsections of this section shall be paid on January 1, 20 1975, and on the first day of each calendar month thereafter 21 during his life.

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SEC. 204. (a) Every individual who was entitled to an

23 annuity under section 2 (a) 1, 2 (a) 2, 2 (a) 3, 2(a) 4, or 24 2(a) 5 of the Railroad Retirement Act of 1937 for the 25 month of December 1974, or who would have been entitled

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1 in paragraph (i) of section 1 (a) (1) of this Act. These 2 actuaries, along with a third who shall be designated by the 3 Secretary of the Treasury, shall be known as the Actuarial 4 Advisory Committee with respect to the Railroad Retire5 ment Account. The actuaries so selected shall hold member6 ship in the American Academy of Actuaries and shall be 7 qualified in the evaluation of pension plans: Provided, 8 however, That these requirements shall not apply to any 9 actuary who served as a member of the Committee prior to 10 January 1, 1975. The Committee shall examine the actuarial 11 reports and estimates made by the Board and shall have 12 authority to recommend to the Board such changes in actu13 arial methods as they may deem necessary. The compen14 sation of the members of the Committee, exclusive of the 15 member designated by the Secretary, shall be fixed by the 16 Board on a per diem basis.

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"(g) The Board shall include in its annual report a 18 statement of the status and the operations of the Railroad 19 Retirement and Railroad Retirement Supplemental Accounts. 20 At intervals not longer than three years the Board shall make 21 an estimate of the liabilities created by this Act and shall

22 include such estimate in its annual report.

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"PRIVATE PENSIONS

"SEC. 16. Nothing in this Act shall be taken as restrict

25 ing or discouraging payment by employers to retired em

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1 ployees of pensions or gratuities in addition to the annuities 2 paid to such employees under this Act, nor shall this Act 3 be taken as terminating any trust heretofore created for the 4 payment of such pensions or gratuities. The annuity, except 5 a supplemental annuity under section 2 (b), of an individual shall not be reduced on account of any pension or gratuity 7 paid by an employer to such individual.

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"FREE TRANSPORTATION

"SEC. 17. It shall not be unlawful for carriers by rail

10 road subject to this Act to furnish free transportation to in11 dividuals receiving annuities under this Act in the same manner as such transportation is furnished to employees in their

13 service.

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14 "CREDITING SERVICE UNDER THE SOCIAL SECURITY ACT "SEC. 18. (1) Except as provided in subdivision (2), 16 the term 'employment' as defined in section 210 of the Social 17 Security Act shall not include service performed by an in18 dividual as an employee as defined in section 1 (b) of this 19 Act.

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"(2) For the purpose of determining (i) monthly in21 surance benefits under the Social Security Act to an em22 ployee who will have completed less than ten years of service 23 and to others deriving from him or her during his or her life 24 and (ii) monthly insurance benefits and lump-sum death 25 benefits under such Act with respect to the death of an em

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