I

104TH CONGRESS

1ST SESSION H. R. 2233

To amend the Railroad Retirement Act, the Railroad Unemployment Insurance Act, and related statutes to ease administration of the railroad

retirement and railroad unemployment insurance programs, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 4, 1995

Ms. MOLINARI (by request) introduced the following bill; which was referred

to the Committee on Transportation and Infrastructure, and in addition

to the Committee on Ways and Means, for a period to be subsequently

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Railroad Retirement Act, the Railroad Unemployment Insurance Act, and related statutes to ease

administration of the railroad retirement and railroad

unemployment insurance programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Railroad Retirement and Railroad Unemployment Insur6 ance Amendments Act of 1995’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title and table of contents.

TITLE I—FINANCIAL AMENDMENTS

Sec. 101. Disclosure of information to Railroad Retirement Board.

Sec. 102. Uncashed checks.

Sec. 103. Investment of Railroad Retirement Trust Funds.

TITLE II—BENEFIT AMENDMENTS

Sec. 201. Annuities as marital property.

Sec. 202. Requirement for a social security number.

Sec. 203. Repeal of obsolete provision.

TITLE III—ADMINISTRATIVE SIMPLIFICATION AMENDMENTS

Sec. 301. Single administrative account.

Sec. 302. Continuing disability reviews.

TITLE IV—DEBT COLLECTION AMENDMENTS

Sec. 401. Debt collection.

TITLE V—PENALTY AMENDMENTS

Sec. 501. Criminal penalties.

Sec. 502. Program Fraud Civil Remedies Act finds and penalties.

3 TITLE I—FINANCIAL

4 AMENDMENTS

5 SEC. 101. DISCLOSURE OF INFORMATION TO RAILROAD RE6 TIREMENT BOARD.

7 Section 6103(l)(1)(C) of the Internal Revenue Code

8 of 1986 is amended to read as follows:

9 ‘‘(C) taxes imposed by chapters 22 and

10 23A, to the Railroad Retirement Board for pur11 poses of its administration of the Railroad Re12 tirement and Railroad Unemployment Insur13 ance Acts.’’
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1 SEC. 102. UNCASHED CHECKS.

2 (a) IN GENERAL.—Section 3334(b) of title 31 of the

3 United States Code is amended—

4 (1) in paragraph (2), by striking ‘‘The’’ and in5 serting ‘‘Except as provided in paragraph (3), the’’;

6 and

7 (2) by adding at the end the following:

8 ‘‘(3) The proceeds of checks canceled pursuant

9 to paragraph (1) which were drawn on accounts es10 tablished under the Railroad Retirement Act or the

11 Railroad Unemployment Insurance Act shall be re12 credited to the account or accounts initially charged

13 for the payment.’’

14 (b) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to checks issued before October

16 1, 1989.

17 SEC. 103. INVESTMENT OF RAILROAD RETIREMENT TRUST

18 FUNDS.

19 Section 15(e) of the Railroad Retirement Act is

20 amended—

21 (1) by striking ‘‘notes’’ in the fifth sentence and

22 inserting ‘‘obligations’’; and

23 (2) by striking ‘‘three years’’ in the fifth sen24 tence and inserting ‘‘four years’’.
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1 TITLE II—BENEFIT

2 AMENDMENTS

3 SEC. 201. ANNUITIES AS MARITAL PROPERTY.

4 (a) IN GENERAL.—Section 14(b)(2) of the Railroad

5 Retirement Act is amended to read as follows:

6 ‘‘(2) This section shall not operate to prohibit the

7 characterization or treatment of that portion of an annuity

8 under this Act which is computed under section 3(b), 3(e),

9 3(g) or 3(h) of this Act as community property for the

10 purposes of, or property subject to, distribution in accord11 ance with a court decree of divorce, annulment, or legal

12 separation or the terms of any court-approved property

13 settlement incident to any such court decree. The Board

14 shall make payments of such portions in accordance with

15 any such characterization or treatment or any such decree

16 or settlement.’’.

17 (b) EFFECTIVE DATE.—The amendment made by

18 this section shall apply with respect to annuity payments

19 payable for months beginning after August 12, 1983.

20 SEC. 202. REQUIREMENT FOR A SOCIAL SECURITY NUM21 BER.

22 (a) IN GENERAL.—Section 2 of the Railroad Retire23 ment Act of 1974 is amended by adding at the end the

24 following:
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1 ‘‘(i) The Board shall require, as a condition for either

2 the receipt of an annuity or to be included in the computa3 tion of an annuity under this Act, that an individual fur4 nish satisfactory proof of a social security account number

5 assigned to such individual by the Social Security Admin6 istration.’’.

7 (b) EFFECTIVE DATE.—The amendment made by

8 this section shall apply to claims for benefits not awarded

9 prior to the date of the enactment of this Act.

10 SEC. 203. REPEAL OF OBSOLETE PROVISION.

11 Section 17 of the Railroad Unemployment Insurance

12 Act (45 U.S.C. 368) providing supplemental benefits is re13 pealed.

14 TITLE III—ADMINISTRATIVE

15 SIMPLIFICATION AMENDMENTS

16 SEC. 301. SINGLE ADMINISTRATIVE ACCOUNT.

17 (a) RAILROAD RETIREMENT.—Section 15(h) of the

18 Railroad Retirement Act of 1974 is amended to read as

19 follows:

20 ‘‘(h)(1) Notwithstanding any other provision of law,

21 there are authorized to be made available for expenditure

22 out of the Railroad Retirement Account, the Railroad Re23 tirement Supplemental Account, the Social Security

24 Equivalent Benefit Account, and the railroad unemploy25 ment insurance account, such sums as the Congress may
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1 deem appropriate to pay the costs of administration of this

2 Act and the Railroad Unemployment Insurance Act.

3 ‘‘(2) If at the beginning of a fiscal year or at any

4 time during a fiscal year there is a lapse in appropriations

5 to pay the costs of administration of this Act or the Rail6 road Unemployment Insurance Act, the Board is author7 ized to make expenditures out of the above mentioned ac8 counts to pay the costs of such administration at a level

9 not exceeding the most recent current level until the ear10 lier of—

11 ‘‘(A) enactment into law of an appropriation

12 Act or Resolution providing for the payment of such

13 costs; or

14 ‘‘(B) enactment into law of an Act repealing

15 this provision.

16 ‘‘(3) During each fiscal year or after the close of such

17 fiscal year (or at both times), the Board shall analyze the

18 costs of administration of this Act and the Railroad Un19 employment Insurance Act during the appropriate part or

20 all of the fiscal year in order to determine the portion of

21 such costs which should be borne by each of the accounts

22 and shall certify to the Secretary of the Treasury the

23 amount, if any, which should be transferred among such

24 accounts in order to assure that each of the accounts bears

25 its proper share of the costs incurred during such fiscal
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1 year for administration of this Act and the Railroad Un2 employment Insurance Act. The Secretary of the Treasury

3 is authorized and directed to transfer any such amount

4 (determined under the preceding sentence) among such

5 accounts in accordance with any certification so made. De6 terminations of the Board as to whether funds made avail7 able for administration of this Act and the Railroad Un8 employment Insurance Act are properly chargeable with

9 the authorized expenses, or parts thereof, incurred in the

10 administration of this Act or the Railroad Unemployment

11 Insurance Act shall be binding and conclusive for all pur12 poses and upon all persons, including the Comptroller

13 General and any other administrative or accounting offi14 cer, employee, or agent of the United States, and shall

15 not be subject to review in any manner.’’.

16 (b) DEPOSIT OF UNEMPLOYMENT CONTRIBU17 TIONS.—Section 8(i) of the Railroad Unemployment In18 surance Act is amended to read as follows:

19 ‘‘(i) The contributions required by this Act shall be

20 collected by the Board and shall be deposited by it with

21 the Secretary of the Treasury of the United States to the

22 credit of the railroad unemployment insurance account.’’.

23 (c) UNEMPLOYMENT ACCOUNT.—Section 10(a) of

24 the Railroad Unemployment Insurance Act is amended—

25 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
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1 (2) by striking ‘‘(i) such part of all contribu2 tions collected pursuant to section 8 of this Act as

3 is in excess of 0.65 per centum of the total com4 pensation on which such contributions are based,’’

5 and inserting ‘‘(i) all contributions collected pursu6 ant to section 8 of this Act’’; and

7 (3) by adding at the end the following:

8 ‘‘(2) Notwithstanding any other provision of law,

9 there are authorized to be made available for expenditure

10 out of the railroad unemployment insurance account, the

11 Railroad Retirement Account, the Railroad Retirement

12 Supplemental Account, and the Social Security Equivalent

13 Benefit Account, such sums as the Congress may deem

14 appropriate to pay the costs of administration of this Act

15 and the Railroad Retirement Act. If at the beginning of

16 a fiscal year or at any time during a fiscal year there is

17 a lapse in appropriations to pay the costs of administra18 tion of this Act or the Railroad Retirement Act, the Board

19 is authorized to make expenditures out of the above men20 tioned accounts to pay the costs of such administration

21 at a level not exceeding the most recent current level until

22 the earlier of (A) enactment into law of an appropriation

23 Act or Resolution providing for the payment of such costs

24 or (B) enactment into law of an Act repealing this provi25 sion. During each fiscal year or after the close of such
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1 fiscal year (or at both times), the Board shall analyze the

2 costs of administration of this Act and the Railroad Re3 tirement Act during the appropriate part or all of the fis4 cal year in order to determine the portion of such costs

5 which should be borne by each of the accounts and shall

6 certify to the Secretary of the Treasury the amount, if

7 any, which should be transferred among such accounts in

8 order to assure that each of the accounts bears its proper

9 share of the costs incurred during such fiscal year for ad10 ministration of this Act and the Railroad Retirement Act.

11 The Secretary of the Treasury is authorized and directed

12 to transfer any such amount (determined under the pre13 ceding sentence) among such accounts in accordance with

14 any certification so made. Determinations of the Board,

15 as to whether funds made available for administration of

16 this Act and the Railroad Retirement Act of 1974 are

17 properly chargeable with the authorized expenses, or parts

18 thereof, incurred in the administration of this Act or the

19 Railroad Retirement Act of 1974, shall be binding and

20 conclusive for all purposes and upon all persons, including

21 the Comptroller General and any other administrative or

22 accounting officer, employee, or agent of the United

23 States, and shall not be subject to review in any manner.’’.

24 (d) REPEAL OF DEFINITION.—Section 1(q) of the

25 Railroad Unemployment Insurance Act is repealed.
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1 (e) REPEAL OF ADMINISTRATION FUND.—Section 11

2 of the Railroad Unemployment Insurance Act is repealed.

3 (f) CONFORMING AMENDMENTS.—

4 (1) Section 8(a)(1)(C)(v) of the Railroad Un5 employment Insurance Act is amended to read as

6 follows:

7 ‘‘(v) STEP 5.—Add 0.65 to the per8 centage rate arrived at under clause (iv),

9 representing the portion of the employer’s

10 contribution which is to be deposited to the

11 credit of the account for administrative

12 purposes.’’.

13 (2) Section 8(a)(8)(B) of the Railroad Unem14 ployment Insurance Act is amended to read as

15 follows:

16 ‘‘(B) STEP 2.—Subtract an amount equal

17 to 0.65 per centum of the contribution rate

18 which was deposited to the credit of the account

19 for administrative purposes.’’.

20 (3) Section 8(a)(10) of the Railroad Unemploy21 ment Insurance Act is amended—

22 (A) in subparagraph (C), by inserting ‘‘(i)’’

23 before ‘‘not chargeable’’ and by striking ‘‘to the

24 fund under section 11’’ and inserting ‘‘(ii) not

25 chargeable as an expense of administration,
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1 other than expenditures from the Limitation on

2 Review or the Special Management Improve3 ment Fund’’;

4 (B) so that subparagraph (E) reads as fol5 lows:

6 ‘‘(E) STEP 5.—Subtract an amount equal

7 to the amount by which that portion of the ac8 count attributable to the 0.65 per centum con9 tribution rate for administrative expenses as of

10 the end of the prior fiscal year exceeded

11 $6,000,000.’’;

12 (C) in subparagraph (F) by adding at the

13 end ‘‘, except that portion of employer contribu14 tions attributable to the 0.65 per centum con15 tribution for administrative expenses’’.

16 (4) Section 8(a)(12)(A) of the Railroad Unem17 ployment Insurance Act is amended by striking the

18 second sentence and inserting: ‘‘In determining such

19 balance as of June 30 of any year, that portion of

20 the balance, up to $6,000,000, as is attributable to

21 the 0.65 per centum contribution for administrative

22 expenses shall be disregarded if greater than zero.’’.

23 (5) Section 8(a)(14)(A) of the Railroad Unem24 ployment Insurance Act is amended by striking the

25 second sentence and inserting: ‘‘In determining such
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1 balance as of June 30 of any year, that portion of

2 the balance, up to $6,000,000, as is attributable to

3 the 0.65 per centum contribution for administrative

4 expenses shall be disregarded if greater than zero.’’.

5 (6) Section 8(e) of the Railroad Unemployment

6 Insurance Act is amended by striking ‘‘fund’’ and

7 inserting ‘‘account and shall be treated in the same

8 manner as if the payment were a payment of con9 tributions for administrative expenses’’.

10 (7) Section 10(b) of the Railroad Unemploy11 ment Insurance Act is amended by inserting ‘‘ad12 ministrative costs,’’ after ‘‘the’’ and before ‘‘bene13 fits’’ in the first sentence.

14 (8) Section 10(d) of the Railroad Unemploy15 ment Insurance Act is amended by inserting ‘‘ad16 ministrative costs,’’ before ‘‘benefits’’ each place it

17 appears.

18 (9) Section 10(e) of the Railroad Unemploy19 ment Insurance Act is amended by striking ‘‘or the

20 railroad unemployment insurance administration

21 fund’’.

22 (10) Section 10(f) of the Railroad Unemploy23 ment Insurance Act is amended by inserting ‘‘and’’

24 before ‘‘the railroad unemployment insurance ac-
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1 count’’ and by striking ‘‘and the railroad unemploy2 ment insurance administration fund,’’.

3 (11) Section 10(g) of the Railroad Unemploy4 ment Insurance Act is amended by striking ‘‘, and

5 out of the railroad unemployment insurance admin6 istration fund for the payment of’’ and inserting

7 ‘‘and’’ and by striking ‘‘or such fund, as the case

8 may be,’’.

9 (12) Section 12(d) of the Railroad Unemploy10 ment Insurance Act is amended by striking ‘‘admin11 istration fund established pursuant to section 11(a)

12 of this Act’’ and inserting ‘‘account established pur13 suant to section 10 of this Act’’.

14 (13) Section 12(e) of the Railroad Unemploy15 ment Insurance Act is amended by striking ‘‘fund’’

16 in the last sentence and inserting ‘‘account’’.

17 (g) EFFECTIVE DATES.—

18 (1) Except as provided in paragraphs (2) and

19 (3), the amendments made by this section shall take

20 effect October 1, 1995.

21 (2) The amendments made by subsections (a)

22 and (c)(3) shall be effective with respect to fiscal

23 years beginning with fiscal year 1996.

24 (3) The amendments made by subsections (d)

25 and (e) shall take effect October 1, 1995, except
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1 that the railroad unemployment insurance adminis2 tration fund shall be maintained by the Secretary of

3 the Treasury in the unemployment trust fund until

4 all outstanding obligations of the railroad unemploy5 ment insurance administration fund incurred prior

6 to October 1, 1995, have been settled. As soon as

7 possible after September 30, 1995, the Board shall

8 determine the amount of the unobligated balance in

9 the railroad unemployment insurance administration

10 fund and shall direct the Secretary of the Treasury

11 to transfer such amount to the railroad unemploy12 ment insurance account and the Secretary shall im13 mediately make such transfer. The amount so trans14 ferred shall be considered as an interfund transfer

15 and shall not be considered as income to the railroad

16 unemployment insurance account for purposes of de17 termining the system unallocated charge balance

18 under section 8(a)(10) of the Railroad Unemploy19 ment Insurance Act.

20 SEC. 302. CONTINUING DISABILITY REVIEWS.

21 (a) IN GENERAL.—Section 15 of the Railroad Retire22 ment Act is amended by adding at the end the following

23 new subsection:

24 ‘‘(j)(1) There is hereby created in the Railroad Re25 tirement Account a Continuing Disability Review Account.
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1 The Continuing Disability Review Account shall consist of

2 such amounts as may be transferred to it under this sub3 section. The balance in the Continuing Disability Review

4 Account shall be available without further appropriation

5 action for expenditures certified under paragraph (3).

6 ‘‘(2)(A) Not later than September 1 of each calendar

7 year, the Board shall—

8 ‘‘(i) estimate the present value of savings to the

9 Railroad Retirement Account and the Social Secu10 rity Equivalent Benefit Account which will accrue

11 for all years as a result of the cessation of annuity

12 payments during the fiscal year ending on Septem13 ber 30 of the prior calendar year based on continu14 ing disability reviews carried out pursuant to section

15 2(a)(3) during or prior to such fiscal year,

16 ‘‘(ii) determine the portion of such estimate at17 tributable to each of the accounts described in clause

18 (i),

19 ‘‘(iii) certify the amount of such estimate and

20 such portion to the Secretary of the Treasury, and

21 ‘‘(iv) direct that an amount equal to the

22 amount determined by the Board under paragraph

23 (3) of this subsection, but not more than the savings

24 estimated under paragraph (2), be transferred to the

25 Continuing Disability Review Account from the ac-
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1 counts described in clause (i) in such proportion as

2 the savings from each account bears to the total sav3 ings from both accounts.

4 ‘‘(B) Upon receipt of the certification and direction

5 by the Secretary of the Treasury under subparagraph (A),

6 the Secretary shall transfer to the Continuing Disability

7 Review Account the amount so determined.

8 ‘‘(3)(A) Not later than September 15 of each cal9 endar year, the Board shall—

10 ‘‘(i) project the accrual balance of the Continu11 ing Disability Review Account as of the close of

12 business on September 30 of the calendar year;

13 ‘‘(ii) estimate the total amount of expenditures

14 which will be necessary to carry out continuing dis15 ability reviews (earnings reviews and medical im16 provement reviews) under section 2(a)(3) of this Act

17 during the fiscal year beginning October 1;

18 ‘‘(iii) subtract the amount projected under

19 clause (i) from the amount estimated under clause

20 (ii) so as to determine the amount of additional

21 funds, if any, needed to pay the costs of continuing

22 disability reviews for the fiscal year beginning Octo23 ber 1; and

24 ‘‘(iv) certify the amount, if any, determined

25 under clause (iii) to the Secretary of the Treasury.
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1 ‘‘(B) The expenditures referred to in subparagraph

2 (A)(ii) shall include the cost of staffing, training, purchase

3 of medical and other evidence, and processing related con4 tinuing disability reviews and any appeals arising from

5 those reviews.

6 ‘‘(C) To the extent of available funds in the Continu7 ing Disability Review Account, and prior to any action

8 thereon by the General Accounting Office, the Secretary

9 of the Treasury shall, upon the commencement of each

10 fiscal year, make available to the Board from the Continu11 ing Disability Review Account an amount equal to the

12 total of estimated expenditures for such fiscal year as de13 scribed in subparagraph (A).

14 ‘‘(D) The Board shall use funds made available pur15 suant to this subsection for the purpose of carrying out

16 continuing disability reviews under section 2(a)(3). Noth17 ing contained in this subsection shall prohibit the Board

18 from using funds otherwise made available for administra19 tive expenses to conduct continuing disability reviews.’’.

20 TITLE IV—DEBT COLLECTION

21 AMENDMENTS

22 SEC. 401. DEBT COLLECTION.

23 (a) FROM OTHER PAYMENTS.—The last sentence of

24 section 10(a) of the Railroad Retirement Act of 1974, as

25 amended, is amended to read as follows: ‘‘Notwithstanding
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1 section 207 of the Social Security Act, the Board shall

2 also have the authority to recover the amount of any over3 payment or erroneous payment of benefits made to an in4 dividual under this Act, the Railroad Unemployment In5 surance Act, or pursuant to section 7(b)(2) of this Act,

6 from any payment to such individual, or to any other per7 son on the basis of the same wages and self-employment

8 income, under section 7(b)(2) of this Act.’’.

9 (b) ADMINISTRATIVE OFFSET.—Section 10 of the

10 Railroad Retirement Act of 1974 is amended by adding

11 at the end thereof a new subsection (e) to read as follows:

12 ‘‘(e) In addition to the authority otherwise granted

13 by this section to recover erroneous payments and over14 payments of benefits under this Act, the Board shall have

15 the authority to recover such erroneous payments and

16 overpayments by means of administrative offset pursuant

17 to section 3716 of title 31, United States Code.’’.

18 (c) RAILROAD UNEMPLOYMENT.—Section 2(d) of the

19 Railroad Unemployment Insurance Act is amended—

20 (1) by inserting after ‘‘entitled under this Act’’

21 and before ‘‘or any other Act’’ in the first sentence

22 thereof the following: ‘‘, or in subsequent payments

23 made to the individual, or any person on the basis

24 of the same compensation, wages, or self-employ25 ment income, under the Railroad Retirement Act
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1 (including payments under section 7(b)(2) thereof,

2 notwithstanding section 207 of the Social Security

3 Act).’’; and

4 (2) by adding at the end thereof the following:

5 ‘‘In addition to the authority otherwise granted by this

6 subsection to recover erroneous payments and overpay7 ments of benefits under this Act, the Board shall have the

8 authority to recover such erroneous payments and over9 payments by means of administrative offset pursuant to

10 section 3716 of title 31, United States Code.’’.

11 TITLE V—PENALTY

12 AMENDMENTS

13 SEC. 501. CRIMINAL PENALTIES.

14 (a) RAILROAD RETIREMENT.—Section 13(a) of the

15 Railroad Retirement Act of 1974 is amended by striking

16 ‘‘one year’’ and inserting ‘‘five years’’.

17 (b) RAILROAD UNEMPLOYMENT.—Section 9(a) of the

18 Railroad Unemployment Insurance Act is amended by

19 striking ‘‘one year’’ and inserting ‘‘five years’’.

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall apply with respect to acts or omissions

22 after the date of enactment of this Act.
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1 SEC. 502. PROGRAM FRAUD CIVIL REMEDIES ACT FINDS

2 AND PENALTIES.

3 Section 3806(g)(2) of title 31, United States Code,

4 is amended by adding at the end the following:

5 ‘‘(F) Any amount of a penalty or assess6 ment imposed by the Railroad Retirement

7 Board under this chapter with respect to a

8 claim or statement made in connection with

9 benefits under the Railroad Retirement Act

10 shall be deposited in the Railroad Retirement

11 Account.

12 ‘‘(G) Any amount of a penalty or assess13 ment imposed by the Railroad Retirement

14 Board under this chapter with respect to a

15 claim or statement made in connection with

16 benefits under the Railroad Unemployment In17 surance Act shall be deposited in the Railroad

18 Unemployment Insurance Account.’’.

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