In the Senate of the United States,

December 5, 2001.

Resolved, That the bill from the House of Representatives (H.R. 10) entitled ‘‘An Act to provide for pension reform, and for other purposes.’’, do pass with the following

AMENDMENTS:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Railroad Retirement and Survivors’ Improvement Act of

4 2001’’.
2

HR 10 EAS

1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—AMENDMENTS TO RAILROAD RETIREMENT ACT OF 1974

Sec. 101. Expansion of widow’s and widower’s benefits.

Sec. 102. Retirement age restoration.

Sec. 103. Vesting requirement.

Sec. 104. Repeal of railroad retirement maximum.

Sec. 105. Investment of railroad retirement assets.

Sec. 106. Elimination of supplemental annuity account.

Sec. 107. Transfer authority revisions.

Sec. 108. Annual ratio projections and certifications by the Railroad Retirement

Board.

TITLE II—AMENDMENTS TO THE INTERNAL REVENUE CODE OF

1986

Sec. 201. Amendments to the Internal Revenue Code of 1986.

Sec. 202. Exemption from tax for National Railroad Retirement Investment

Trust.

Sec. 203. Repeal of supplemental annuity tax.

Sec. 204. Employer, employee representative, and employee tier 2 tax rate adjustments.

3 TITLE I—AMENDMENTS TO RAIL4 ROAD RETIREMENT ACT OF

5 1974

6 SEC. 101. EXPANSION OF WIDOW’S AND WIDOWER’S BENE7 FITS.

8 (a) IN GENERAL.—Section 4(g) of the Railroad Retire9 ment Act of 1974 (45 U.S.C. 231c(g)) is amended by adding

10 at the end the following new subdivision:

11 ‘‘(10)(i) If for any month the unreduced annuity pro12 vided under this section for a widow or widower is less than

13 the widow’s or widower’s initial minimum amount com14 puted pursuant to paragraph (ii) of this subdivision, the

15 unreduced annuity shall be increased to that initial min-
3

HR 10 EAS

1 imum amount. For the purposes of this subdivision, the un2 reduced annuity is the annuity without regard to any de3 duction on account of work, without regard to any reduc4 tion for entitlement to an annuity under section 2(a)(1)

5 of this Act, without regard to any reduction for entitlement

6 to a benefit under title II of the Social Security Act, and

7 without regard to any reduction for entitlement to a public

8 service pension pursuant to section 202(e)(7), 202(f)(2), or

9 202(g)(4) of the Social Security Act.

10 ‘‘(ii) For the purposes of this subdivision, the widow

11 or widower’s initial minimum amount is the amount of the

12 unreduced annuity computed at the time an annuity is

13 awarded to that widow or widower, except that—

14 ‘‘(A) in subsection (g)(1)(i) ‘100 per centum’

15 shall be substituted for ‘50 per centum’; and

16 ‘‘(B) in subsection (g)(2)(ii) ‘130 per centum’

17 shall be substituted for ‘80 per centum’ both places it

18 appears.

19 ‘‘(iii) If a widow or widower who was previously enti20 tled to a widow’s or widower’s annuity under section

21 2(d)(1)(ii) of this Act becomes entitled to a widow’s or wid22 ower’s annuity under section 2(d)(1)(i) of this Act, a new

23 initial minimum amount shall be computed at the time of

24 award of the widow’s or widower’s annuity under section

25 2(d)(1)(i) of this Act.’’.
4

HR 10 EAS

1 (b) EFFECTIVE DATE.—

2 (1) IN GENERAL.—The amendment made by this

3 section shall take effect on the first day of the first

4 month that begins more than 30 days after enact5 ment, and shall apply to annuity amounts accruing

6 for months after the effective date in the case of annu7 ities awarded—

8 (A) on or after that date; and

9 (B) before that date, but only if the annuity

10 amount under section 4(g) of the Railroad Re11 tirement Act of 1974 (45 U.S.C. 231c(g)) was

12 computed under such section, as amended by the

13 Omnibus Budget Reconciliation Act of 1981

14 (Public Law 97–35; 95 Stat. 357).

15 (2) SPECIAL RULE FOR ANNUITIES AWARDED BE16 FORE THE EFFECTIVE DATE.—In applying the

17 amendment made by this section to annuities award18 ed before the effective date, the calculation of the ini19 tial minimum amount under new section 4(g)(10)(ii)

20 of the Railroad Retirement Act of 1974 (45 U.S.C.

21 231c(g)(10)(ii)), as added by subsection (a), shall be

22 made as of the date of the award of the widow’s or

23 widower’s annuity.
5

HR 10 EAS

1 SEC. 102. RETIREMENT AGE RESTORATION.

2 (a) EMPLOYEE ANNUITIES.—Section 3(a)(2) of the

3 Railroad Retirement Act of 1974 (45 U.S.C. 231b(a)(2)) is

4 amended by inserting after ‘‘(2)’’ the following new sen5 tence: ‘‘For purposes of this subsection, individuals entitled

6 to an annuity under section 2(a)(1)(ii) of this Act shall,

7 except for the purposes of recomputations in accordance

8 with section 215(f) of the Social Security Act, be deemed

9 to have attained retirement age (as defined by section 216(l)

10 of the Social Security Act).’’.

11 (b) SPOUSE AND SURVIVOR ANNUITIES.—Section

12 4(a)(2) of the Railroad Retirement Act of 1974 (45 U.S.C.

13 231c(a)(2)) is amended by striking ‘‘if an’’ and all that

14 follows through ‘‘section 2(c)(1) of this Act’’ and inserting

15 ‘‘a spouse entitled to an annuity under section

16 2(c)(1)(ii)(B) of this Act’’.

17 (c) CONFORMING REPEALS.—Sections 3(a)(3), 4(a)(3),

18 and 4(a)(4) of the Railroad Retirement Act of 1974 (45

19 U.S.C. 231b(a)(3), 231c(a)(3), and 231c(a)(4)) are re20 pealed.

21 (d) EFFECTIVE DATES.—

22 (1) GENERALLY.—Except as provided in para23 graph (2), the amendments made by this section shall

24 apply to annuities that begin to accrue on or after

25 January 1, 2002.
6

HR 10 EAS

1 (2) EXCEPTION.—The amount of the annuity

2 provided for a spouse under section 4(a) of the Rail3 road Retirement Act of 1974 (45 U.S.C. 231c(a))

4 shall be computed under section 4(a)(3) of such Act,

5 as in effect on December 31, 2001, if the annuity

6 amount provided under section 3(a) of such Act (45

7 U.S.C. 231b(a)) for the individual on whose employ8 ment record the spouse annuity is based was com9 puted under section 3(a)(3) of such Act, as in effect

10 on December 31, 2001.

11 SEC. 103. VESTING REQUIREMENT.

12 (a) CERTAIN ANNUITIES FOR INDIVIDUALS.—Section

13 2(a) of the Railroad Retirement Act of 1974 (45 U.S.C.

14 231a(a)) is amended—

15 (1) by inserting in subdivision (1) ‘‘(or, for pur16 poses of paragraphs (i), (iii), and (v), five years of

17 service, all of which accrues after December 31,

18 1995)’’ after ‘‘ten years of service’’; and

19 (2) by adding at the end the following new sub20 division:

21 ‘‘(4) An individual who is entitled to an annuity

22 under paragraph (v) of subdivision (1), but who does not

23 have at least ten years of service, shall, prior to the month

24 in which the individual attains age 62, be entitled only to

25 an annuity amount computed under section 3(a) of this Act
7

HR 10 EAS

1 (without regard to section 3(a)(2) of this Act) or section

2 3(f)(3) of this Act. Upon attainment of age 62, such an in3 dividual may also be entitled to an annuity amount com4 puted under section 3(b), but such annuity amount shall

5 be reduced for early retirement in the same manner as if

6 the individual were entitled to an annuity under section

7 2(a)(1)(iii).’’.

8 (b) COMPUTATION RULE FOR INDIVIDUALS’ ANNU9 ITIES.—Section 3(a) of the Railroad Retirement Act of

10 1974 (45 U.S.C. 231b(a)), as amended by section 102 of

11 this Act, is further amended by adding at the end the fol12 lowing new subdivision:

13 ‘‘(3) If an individual entitled to an annuity under sec14 tion 2(a)(1)(i) or (iii) of this Act on the basis of less than

15 ten years of service is entitled to a benefit under section

16 202(a), section 202(b), or section 202(c) of the Social Secu17 rity Act which began to accrue before the annuity under

18 section 2(a)(1)(i) or (iii) of this Act, the annuity amount

19 provided such individual under this subsection, shall be

20 computed as though the annuity under this Act began to

21 accrue on the later of (A) the date on which the benefit

22 under section 202(a), section 202(b), or section 202(c) of

23 the Social Security Act began, or (B) the date on which

24 the individual first met the conditions for entitlement to

25 an age reduced annuity under this Act other than the condi-
8

HR 10 EAS

1 tions set forth in sections 2(e)(1) and 2(e)(2) of this Act

2 and the requirement that an application be filed.’’.

3 (c) SURVIVORS’ ANNUITIES.—Section 2(d)(1) of the

4 Railroad Retirement Act of 1974 (45 U.S.C. 231a(d)(1))

5 is amended by inserting ‘‘(or five years of service, all of

6 which accrues after December 31, 1995)’’ after ‘‘ten years

7 of service’’.

8 (d) LIMITATION ON ANNUITY AMOUNTS.—Section 2 of

9 the Railroad Retirement Act of 1974 (45 U.S.C. 231a) is

10 amended by adding at the end the following new subsection:

11 ‘‘(i) An individual entitled to an annuity under this

12 section who has completed five years of service, all of which

13 accrues after 1995, but who has not completed ten years

14 of service, and the spouse, divorced spouse, and survivors

15 of such individual, shall not be entitled to an annuity

16 amount provided under section 3(a), section 4(a), or section

17 4(f) of this Act unless the individual, or the individual’s

18 spouse, divorced spouse, or survivors, would be entitled to

19 a benefit under title II of the Social Security Act on the

20 basis of the individual’s employment record under both this

21 Act and title II of the Social Security Act.’’.

22 (e) COMPUTATION RULE FOR SPOUSES’ ANNUITIES.—

23 Section 4(a) of the Railroad Retirement Act of 1974 (45

24 U.S.C. 231c(a)), as amended by section 102 of this Act, is
9

HR 10 EAS

1 further amended by adding at the end the following new

2 subdivision:

3 ‘‘(3) If a spouse entitled to an annuity under section

4 2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), or section 2(c)(2) of

5 this Act or a divorced spouse entitled to an annuity under

6 section 2(c)(4) of this Act on the basis of the employment

7 record of an employee who will have completed less than

8 10 years of service is entitled to a benefit under section

9 202(a), section 202(b), or section 202(c) of the Social Secu10 rity Act which began to accrue before the annuity under

11 section 2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), section 2(c)(2),

12 or section 2(c)(4) of this Act, the annuity amount provided

13 under this subsection shall be computed as though the annu14 ity under this Act began to accrue on the later of (A) the

15 date on which the benefit under section 202(a), section

16 202(b), or section 202(c) of the Social Security Act began

17 or (B) the first date on which the annuitant met the condi18 tions for entitlement to an age reduced annuity under this

19 Act other than the conditions set forth in sections 2(e)(1)

20 and 2(e)(2) of this Act and the requirement that an applica21 tion be filed.’’.

22 (f) APPLICATION DEEMING PROVISION.—Section 5(b)

23 of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(b))

24 is amended by striking the second sentence and inserting

25 the following new sentence: ‘‘An application filed with the
10

HR 10 EAS

1 Board for an employee annuity, spouse annuity, or di2 vorced spouse annuity on the basis of the employment

3 record of an employee who will have completed less than

4 ten years of service shall be deemed to be an application

5 for any benefit to which such applicant may be entitled

6 under this Act or section 202(a), section 202(b), or section

7 202(c) of the Social Security Act. An application filed with

8 the Board for an annuity on the basis of the employment

9 record of an employee who will have completed ten years

10 of service shall, unless the applicant specified otherwise, be

11 deemed to be an application for any benefit to which such

12 applicant may be entitled under this Act or title II of the

13 Social Security Act.’’.

14 (g) CREDITING SERVICE UNDER THE SOCIAL SECU15 RITY ACT.—Section 18(2) of the Railroad Retirement Act

16 of 1974 (45 U.S.C. 231q(2)) is amended—

17 (1) by inserting ‘‘(or less than five years of serv18 ice, all of which accrues after December 31, 1995)’’

19 after ‘‘ten years of service’’ every place it appears;

20 and

21 (2) by inserting ‘‘(or five or more years of serv22 ice, all of which accrues after December 31, 1995)’’

23 after ‘‘ten or more years of service’’.
11

HR 10 EAS

1 (h) AUTOMATIC BENEFIT ELIGIBILITY ADJUST2 MENTS.—Section 19 of the Railroad Retirement Act of 1974

3 (45 U.S.C. 231r) is amended—

4 (1) by inserting ‘‘(or five or more years of serv5 ice, all of which accrues after December 31, 1995)’’

6 after ‘‘ten years of service’’ in subsection (c); and

7 (2) by inserting ‘‘(or five or more years of serv8 ice, all of which accrues after December 31, 1995)’’

9 after ‘‘ten years of service’’ in subsection (d)(2).

10 (i) CONFORMING AMENDMENTS.—

11 (1) Section 6(e)(1) of the Railroad Retirement

12 Act of 1974 (45 U.S.C. 231e(1)) is amended by insert13 ing ‘‘(or five or more years of service, all of which ac14 crues after December 31, 1995)’’ after ‘‘ten years of

15 service’’.

16 (2) Section 7(b)(2)(A) of the Railroad Retire17 ment Act of 1974 (45 U.S.C. 231f(b)(2)(A)) is amend18 ed by inserting ‘‘(or five or more years of service, all

19 of which accrues after December 31, 1995)’’ after ‘‘ten

20 years of service’’.

21 (3) Section 205(i) of the Social Security Act (42

22 U.S.C. 405(i)) is amended by inserting ‘‘(or five or

23 more years of service, all of which accrues after De24 cember 31, 1995)’’ after ‘‘ten years of service’’.
12

HR 10 EAS

1 (4) Section 6(b)(2) of the Railroad Retirement

2 Act of 1974 (45 U.S.C. 231e(b)(2)) is amended by in3 serting ‘‘(or five or more years of service, all of which

4 accrues after December 31, 1995)’’ after ‘‘ten years of

5 service’’ the second place it appears.

6 (j) EFFECTIVE DATE.—The amendments made by this

7 section shall take effect on January 1, 2002.

8 SEC. 104. REPEAL OF RAILROAD RETIREMENT MAXIMUM.

9 (a) EMPLOYEE ANNUITIES.—

10 (1) IN GENERAL.—Section 3(f) of the Railroad

11 Retirement Act of 1974 (45 U.S.C. 231b(f)) is

12 amended—

13 (A) by striking subdivision (1); and

14 (B) by redesignating subdivisions (2) and

15 (3) as subdivisions (1) and (2), respectively.

16 (2) CONFORMING AMENDMENTS.—

17 (A) The first sentence of section 3(f)(1) of

18 the Railroad Retirement Act of 1974 (45 U.S.C.

19 231b(f)(1)), as redesignated by paragraph

20 (1)(B), is amended by striking ‘‘, without regard

21 to the provisions of subdivision (1) of this sub22 section,’’.

23 (B) Paragraphs (i) and (ii) of section

24 7(d)(2) of the Railroad Retirement Act of 1974

25 (45 U.S.C. 231f(d)(2)) are each amended by
13

HR 10 EAS

1 striking ‘‘section 3(f)(3)’’ and inserting ‘‘section

2 3(f)(2)’’.

3 (b) SPOUSE AND SURVIVOR ANNUITIES.—Section 4 of

4 the Railroad Retirement Act of 1974 (45 U.S.C. 231c) is

5 amended by striking subsection (c).

6 (c) EFFECTIVE DATE.—The amendments made by this

7 section shall take effect on January 1, 2002, and shall apply

8 to annuity amounts accruing for months after December

9 2001.

10 SEC. 105. INVESTMENT OF RAILROAD RETIREMENT ASSETS.

11 (a) ESTABLISHMENT OF NATIONAL RAILROAD RE12 TIREMENT INVESTMENT TRUST.—Section 15 of the Rail13 road Retirement Act of 1974 (45 U.S.C. 231n) is amended

14 by inserting after subsection (i) the following new sub15 section:

16 ‘‘(j) NATIONAL RAILROAD RETIREMENT INVESTMENT

17 TRUST.—

18 ‘‘(1) ESTABLISHMENT.—The National Railroad

19 Retirement Investment Trust (hereinafter in this sub20 section referred to as the ‘Trust’) is hereby established

21 as a trust domiciled in the District of Columbia and

22 shall, to the extent not inconsistent with this Act, be

23 subject to the laws of the District of Columbia appli24 cable to such trusts. The Trust shall manage and in-
14

HR 10 EAS

1 vest its assets in the manner set forth in this sub2 section.

3 ‘‘(2) NOT A FEDERAL AGENCY OR INSTRUMEN4 TALITY.—The Trust is not a department, agency, or

5 instrumentality of the Government of the United

6 States and shall not be subject to title 31, United

7 States Code.

8 ‘‘(3) BOARD OF TRUSTEES.—

9 ‘‘(A) GENERALLY.—

10 ‘‘(i) MEMBERSHIP.—The Trust shall

11 have a Board of Trustees, consisting of 7

12 members. Three shall represent the interests

13 of labor, 3 shall represent the interests of

14 management, and 1 shall be an independent

15 Trustee. The members of the Board of Trust16 ees shall not be considered officers or em17 ployees of the Government of the United

18 States.

19 ‘‘(ii) SELECTION.—

20 ‘‘(I) The 3 members representing

21 the interests of labor shall be selected

22 by the joint recommendation of labor

23 organizations, national in scope, orga24 nized in accordance with section 2 of

25 the Railway Labor Act, and rep-
15

HR 10 EAS

resenting at least 2 1 ⁄3 of all active em2 ployees, represented by such national

3 labor organizations, covered under this

4 Act.

5 ‘‘(II) The 3 members representing

6 the interests of management shall be se7 lected by the joint recommendation of

8 carriers as defined in section 1 of the

9 Railway Labor Act employing at least

2 10 ⁄3 of all active employees covered

11 under this Act.

12 ‘‘(III) The independent member

13 shall be selected by a majority of the

14 other 6 members of the Board of Trust15 ees.

16 A member of the Board of Trustees may be

17 removed in the same manner and by the

18 same constituency that selected that mem19 ber.

20 ‘‘(iii) DISPUTE RESOLUTION.—In the

21 event that the parties specified in subclause

22 (I), (II), or (III) of the previous clause can23 not agree on the selection of Trustees within

24 60 days of the date of enactment or 60 days

25 from any subsequent date that a position of
16

HR 10 EAS

1 the Board of Trustees becomes vacant, an

2 impartial umpire to decide such dispute

3 shall, on the petition of a party to the dis4 pute, be appointed by the District Court of

5 the United States for the District of Colum6 bia.

7 ‘‘(B) QUALIFICATIONS.—Members of the

8 Board of Trustees shall be appointed only from

9 among persons who have experience and exper10 tise in the management of financial investments

11 and pension plans. No member of the Railroad

12 Retirement Board shall be eligible to be a mem13 ber of the Board of Trustees.

14 ‘‘(C) TERMS.—Except as provided in this

15 subparagraph, each member shall be appointed

16 for a 3-year term. The initial members ap17 pointed under this paragraph shall be divided

18 into equal groups so nearly as may be, of which

19 one group will be appointed for a 1-year term,

20 one for a 2-year term, and one for a 3-year term.

21 The Trustee initially selected pursuant to clause

22 (ii)(III) shall be appointed to a 3-year term. A

23 vacancy in the Board of Trustees shall not affect

24 the powers of the Board of Trustees and shall be

25 filled in the same manner as the selection of the
17

HR 10 EAS

1 member whose departure caused the vacancy.

2 Upon the expiration of a term of a member of

3 the Board of Trustees, that member shall con4 tinue to serve until a successor is appointed.

5 ‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—

6 The Board of Trustees shall—

7 ‘‘(A) retain independent advisers to assist it

8 in the formulation and adoption of its invest9 ment guidelines;

10 ‘‘(B) retain independent investment man11 agers to invest the assets of the Trust in a man12 ner consistent with such investment guidelines;

13 ‘‘(C) invest assets in the Trust, pursuant to

14 the policies adopted in subparagraph (A);

15 ‘‘(D) pay administrative expenses of the

16 Trust from the assets in the Trust; and

17 ‘‘(E) transfer money to the disbursing agent

18 or as otherwise provided in section 7(b)(4), to

19 pay benefits payable under this Act from the as20 sets of the Trust.

21 ‘‘(5) REPORTING REQUIREMENTS AND FIDUCIARY

22 STANDARDS.—The following reporting requirements

23 and fiduciary standards shall apply with respect to

24 the Trust:
18

HR 10 EAS

1 ‘‘(A) DUTIES OF THE BOARD OF TRUST2 EES.—The Trust and each member of the Board

3 of Trustees shall discharge their duties (includ4 ing the voting of proxies) with respect to the as5 sets of the Trust solely in the interest of the Rail6 road Retirement Board and through it, the par7 ticipants and beneficiaries of the programs fund8 ed under this Act—

9 ‘‘(i) for the exclusive purpose of—

10 ‘‘(I) providing benefits to partici11 pants and their beneficiaries; and

12 ‘‘(II) defraying reasonable ex13 penses of administering the functions

14 of the Trust;

15 ‘‘(ii) with the care, skill, prudence, and

16 diligence under the circumstances then pre17 vailing that a prudent person acting in a

18 like capacity and familiar with such mat19 ters would use in the conduct of an enter20 prise of a like character and with like aims;

21 ‘‘(iii) by diversifying investments so as

22 to minimize the risk of large losses and to

23 avoid disproportionate influence over a par24 ticular industry or firm, unless under the
19

HR 10 EAS

1 circumstances it is clearly prudent not to do

2 so; and

3 ‘‘(iv) in accordance with Trust gov4 erning documents and instruments insofar

5 as such documents and instruments are con6 sistent with this Act.

7 ‘‘(B) PROHIBITIONS WITH RESPECT TO

8 MEMBERS OF THE BOARD OF TRUSTEES.—No

9 member of the Board of Trustees shall—

10 ‘‘(i) deal with the assets of the Trust in

11 the trustee’s own interest or for the trustee’s

12 own account;

13 ‘‘(ii) in an individual or in any other

14 capacity act in any transaction involving

15 the assets of the Trust on behalf of a party

16 (or represent a party) whose interests are

17 adverse to the interests of the Trust, the

18 Railroad Retirement Board, or the interests

19 of participants or beneficiaries; or

20 ‘‘(iii) receive any consideration for the

21 trustee’s own personal account from any

22 party dealing with the assets of the Trust.

23 ‘‘(C) EXCULPATORY PROVISIONS AND INSUR24 ANCE.—Any provision in an agreement or in25 strument that purports to relieve a trustee from
20

HR 10 EAS

1 responsibility or liability for any responsibility,

2 obligation, or duty under this Act shall be void:

3 Provided, however, That nothing shall

4 preclude—

5 ‘‘(i) the Trust from purchasing insur6 ance for its trustees or for itself to cover li7 ability or losses occurring by reason of the

8 act or omission of a trustee, if such insur9 ance permits recourse by the insurer against

10 the trustee in the case of a breach of a fidu11 ciary obligation by such trustee;

12 ‘‘(ii) a trustee from purchasing insur13 ance to cover liability under this section

14 from and for his own account; or

15 ‘‘(iii) an employer or an employee or16 ganization from purchasing insurance to

17 cover potential liability of one or more

18 trustees with respect to their fiduciary re19 sponsibilities, obligations, and duties under

20 this section.

21 ‘‘(D) BONDING.—Every trustee and every

22 person who handles funds or other property of

23 the Trust (hereafter in this subsection referred to

24 as ‘Trust official’) shall be bonded. Such bond

25 shall provide protection to the Trust against loss
21

HR 10 EAS

1 by reason of acts of fraud or dishonesty on the

2 part of any Trust official, directly or through the

3 connivance of others, and shall be in accordance

4 with the following:

5 ‘‘(i) The amount of such bond shall be

6 fixed at the beginning of each fiscal year of

7 the Trust by the Railroad Retirement

8 Board. Such amount shall not be less than

9 10 percent of the amount of the funds han10 dled. In no case shall such bond be less than

11 $1,000 nor more than $500,000, except that

12 the Railroad Retirement Board, after con13 sideration of the record, may prescribe an

14 amount in excess of $500,000, subject to the

15 10 per centum limitation of the preceding

16 sentence.

17 ‘‘(ii) It shall be unlawful for any Trust

18 official to receive, handle, disburse, or other19 wise exercise custody or control of any of

20 the funds or other property of the Trust

21 without being bonded as required by this

22 subsection and it shall be unlawful for any

23 Trust official, or any other person having

24 authority to direct the performance of such

25 functions, to permit such functions, or any
22

HR 10 EAS

1 of them, to be performed by any Trust offi2 cial, with respect to whom the requirements

3 of this subsection have not been met.

4 ‘‘(iii) It shall be unlawful for any per5 son to procure any bond required by this

6 subsection from any surety or other com7 pany or through any agent or broker in

8 whose business operations such person has

9 any control or significant financial interest,

10 direct or indirect.

11 ‘‘(E) AUDIT AND REPORT.—

12 ‘‘(i) The Trust shall annually engage

13 an independent qualified public accountant

14 to audit the financial statements of the

15 Trust.

16 ‘‘(ii) The Trust shall submit an annual

17 management report to the Congress not

18 later than 180 days after the end of the

19 Trust’s fiscal year. A management report

20 under this subsection shall include—

21 ‘‘(I) a statement of financial posi22 tion;

23 ‘‘(II) a statement of operations;

24 ‘‘(III) a statement of cash flows;
23

HR 10 EAS

1 ‘‘(IV) a statement on internal ac2 counting and administrative control

3 systems;

4 ‘‘(V) the report resulting from an

5 audit of the financial statements of the

6 Trust conducted under clause (i); and

7 ‘‘(VI) any other comments and in8 formation necessary to inform the Con9 gress about the operations and finan10 cial condition of the Trust.

11 ‘‘(iii) The Trust shall provide the

12 President, the Railroad Retirement Board,

13 and the Director of the Office of Manage14 ment and Budget a copy of the management

15 report when it is submitted to Congress.

16 ‘‘(F) ENFORCEMENT.—The Railroad Retire17 ment Board may bring a civil action—

18 ‘‘(i) to enjoin any act or practice by

19 the Trust, its Board of Trustees, or its em20 ployees or agents that violates any provi21 sion of this Act; or

22 ‘‘(ii) to obtain other appropriate relief

23 to redress such violations, or to enforce any

24 provisions of this Act.
24

HR 10 EAS

1 ‘‘(6) RULES AND ADMINISTRATIVE POWERS.—

2 The Board of Trustees shall have the authority to

3 make rules to govern its operations, employ profes4 sional staff, and contract with outside advisers, in5 cluding the Railroad Retirement Board, to provide

6 legal, accounting, investment advisory, or other serv7 ices necessary for the proper administration of this

8 subsection. In the case of contracts with investment

9 advisory services, compensation for such services may

10 be on a fixed contract fee basis or on such other terms

11 and conditions as are customary for such services.

12 ‘‘(7) QUORUM.—Five members of the Board of

13 Trustees constitute a quorum to do business. Invest14 ment guidelines must be adopted by a unanimous vote

15 of the entire Board of Trustees. All other decisions of

16 the Board of Trustees shall be decided by a majority

17 vote of the quorum present. All decisions of the Board

18 of Trustees shall be entered upon the records of the

19 Board of Trustees.

20 ‘‘(8) FUNDING.—The expenses of the Trust and

21 the Board of Trustees incurred under this subsection

22 shall be paid from the Trust.’’.

23 (b) CONFORMING AND TECHNICAL AMENDMENTS GOV24 ERNING INVESTMENTS.—Section 15(e) of the Railroad Re25 tirement Act of 1974 (45 U.S.C. 231n(e)) is amended—
25

HR 10 EAS

1 (1) in the first sentence, by striking ‘‘, the Dual

2 Benefits Payments Account’’ and all that follows

3 through ‘‘may be made only’’ in the second sentence

4 and inserting ‘‘and the Dual Benefits Payments Ac5 count as are not transferred to the National Railroad

6 Retirement Investment Trust as the Board may deter7 mine’’;

8 (2) by striking ‘‘the Second Liberty Bond Act, as

9 amended’’ and inserting ‘‘chapter 31 of title 31’’; and

10 (3) by striking ‘‘the foregoing requirements’’ and

11 inserting ‘‘the requirements of this subsection’’.

12 (c) MEANS OF FINANCING.—For all purposes of the

13 Congressional Budget Act of 1974, the Balanced Budget and

14 Emergency Deficit Control Act of 1985, and chapter 11 of

15 title 31, United States Code, and notwithstanding section

16 20 of the Office of Management and Budget Circular No.

17 A-11, the purchase or sale of non-Federal assets (other than

18 gains or losses from such transactions) by the National

19 Railroad Retirement Investment Trust shall be treated as

20 a means of financing.

21 (d) EFFECTIVE DATE.—The amendments made by this

22 section shall take effect on the first day of the month that

23 begins more than 30 days after enactment.
26

HR 10 EAS

1 SEC. 106. ELIMINATION OF SUPPLEMENTAL ANNUITY AC2 COUNT.

3 (a) SOURCE OF PAYMENTS.—Section 7(c)(1) of the

4 Railroad Retirement Act of 1974 (45 U.S.C. 231f(c)(1)) is

5 amended by striking ‘‘payments of supplemental annuities

6 under section 2(b) of this Act shall be made from the Rail7 road Retirement Supplemental Account, and’’.

8 (b) ELIMINATION OF ACCOUNT.—Section 15(c) of the

9 Railroad Retirement Act of 1974 (45 U.S.C. 231n(c)) is re10 pealed.

11 (c) AMENDMENT TO RAILROAD RETIREMENT AC12 COUNT.—Section 15(a) of the Railroad Retirement Act of

13 1974 (45 U.S.C. 231n(a)) is amended by striking ‘‘, except

14 those portions of the amounts covered into the Treasury

15 under sections 3211(b),’’ and all that follows through the

16 end of the subsection and inserting a period.

17 (d) TRANSFER.—

18 (1) DETERMINATION.—As soon as possible after

19 December 31, 2001, the Railroad Retirement Board

20 shall—

21 (A) determine the amount of funds in the

22 Railroad Retirement Supplemental Account

23 under section 15(c) of the Railroad Retirement

24 Act of 1974 (45 U.S.C. 231n(c)) as of the date

25 of such determination; and
27

HR 10 EAS

1 (B) direct the Secretary of the Treasury to

2 transfer such funds to the National Railroad Re3 tirement Investment Trust under section 15(j) of

4 such Act (as added by section 105).

5 (2) TRANSFER BY THE SECRETARY OF THE

6 TREASURY.—The Secretary of the Treasury shall

7 make the transfer described in paragraph (1).

8 (e) EFFECTIVE DATE.—

9 (1) IN GENERAL.—Subject to paragraph (2), the

10 amendments made by subsections (a), (b), and (c)

11 shall take effect January 1, 2002.

12 (2) ACCOUNT IN EXISTENCE UNTIL TRANSFER

13 MADE.—The Railroad Retirement Supplemental Ac14 count under section 15(c) of the Railroad Retirement

15 Act of 1974 (45 U.S.C. 231n(c)) shall continue to

16 exist until the date that the Secretary of the Treasury

17 makes the transfer described in subsection (d)(2).

18 SEC. 107. TRANSFER AUTHORITY REVISIONS.

19 (a) RAILROAD RETIREMENT ACCOUNT.—Section 15 of

20 the Railroad Retirement Act of 1974 (45 U.S.C. 231n) is

21 amended by adding after subsection (j) the following new

22 subsection:

23 ‘‘(k) TRANSFERS TO THE TRUST.—The Board shall,

24 upon establishment of the National Railroad Retirement In25 vestment Trust and from time to time thereafter, direct the
28

HR 10 EAS

1 Secretary of the Treasury to transfer, in such manner as

2 will maximize the investment returns to the Railroad Re3 tirement system, that portion of the Railroad Retirement

4 Account that is not needed to pay current administrative

5 expenses of the Board to the National Railroad Retirement

6 Investment Trust. The Secretary shall make that transfer.’’.

7 (b) TRANSFERS FROM THE NATIONAL RAILROAD RE8 TIREMENT INVESTMENT TRUST.—Section 15 of the Rail9 road Retirement Act of 1974 (45 U.S.C. 231n), as amended

10 by subsection (a), is further amended by adding after sub11 section (k) the following new subsection:

12 ‘‘(l) NATIONAL RAILROAD RETIREMENT INVESTMENT

13 TRUST.—The National Railroad Retirement Investment

14 Trust shall from time to time transfer to the disbursing

15 agent described in section 7(b)(4) or as otherwise directed

16 by the Railroad Retirement Board pursuant to section

17 7(b)(4), such amounts as may be necessary to pay benefits

18 under this Act (other than benefits paid from the Social

19 Security Equivalent Benefit Account or the Dual Benefit

20 Payments Account).’’.

21 (c) SOCIAL SECURITY EQUIVALENT BENEFIT AC22 COUNT.—

23 (1) TRANSFERS TO TRUST.—Section 15A(d)(2) of

24 the Railroad Retirement Act of 1974 (45 U.S.C.

25 231n–1(d)(2)) is amended to read as follows:
29

HR 10 EAS

1 ‘‘(2) Upon establishment of the National Railroad Re2 tirement Investment Trust and from time to time thereafter,

3 the Board shall direct the Secretary of the Treasury to

4 transfer, in such manner as will maximize the investment

5 returns to the Railroad Retirement system, the balance of

6 the Social Security Equivalent Benefit Account not needed

7 to pay current benefits and administrative expenses re8 quired to be paid from that Account to the National Rail9 road Retirement Investment Trust, and the Secretary shall

10 make that transfer. Any balance transferred under this

11 paragraph shall be used by the National Railroad Retire12 ment Investment Trust only to pay benefits under this Act

13 or to purchase obligations of the United States that are

14 backed by the full faith and credit of the United States pur15 suant to chapter 31 of title 31, United States Code. The

16 proceeds of sales of, and the interest income from, such obli17 gations shall be used by the Trust only to pay benefits under

18 this Act.’’.

19 (2) TRANSFERS TO DISBURSING AGENT.—Section

20 15A(c)(1) of the Railroad Retirement Act of 1974 (45

21 U.S.C. 231n–1(c)(1)) is amended by adding at the

22 end the following new sentence: ‘‘The Secretary shall

23 from time to time transfer to the disbursing agent

24 under section 7(b)(4) amounts necessary to pay those

25 benefits.’’.
30

HR 10 EAS

1 (3) CONFORMING AMENDMENT.—Section

2 15A(d)(1) of the Railroad Retirement Act of 1974 (45

3 U.S.C. 231n–1(d)(1)) is amended by striking the sec4 ond and third sentences.

5 (d) DUAL BENEFITS PAYMENTS ACCOUNT.—Section

6 15(d)(1) of the Railroad Retirement Act of 1974 (45 U.S.C.

7 231n(d)(1)) is amended by adding at the end the following

8 new sentence: ‘‘The Secretary of the Treasury shall from

9 time to time transfer from the Dual Benefits Payments Ac10 count to the disbursing agent under section 7(b)(4) amounts

11 necessary to pay benefits payable from that Account.’’.

12 (e) CERTIFICATION BY THE BOARD AND PAYMENT.—

13 Paragraph (4) of section 7(b) of the Railroad Retirement

14 Act of 1974 (45 U.S.C. 231f(b)(4)) is amended to read as

15 follows:

16 ‘‘(4)(A) The Railroad Retirement Board, after con17 sultation with the Board of Trustees of the National Rail18 road Retirement Investment Trust and the Secretary of the

19 Treasury, shall enter into an arrangement with a non20 governmental financial institution to serve as disbursing

21 agent for benefits payable under this Act who shall disburse

22 consolidated benefits under this Act to each recipient. Pend23 ing the taking effect of that arrangement, benefits shall be

24 paid as under the law in effect prior to the enactment of
31

HR 10 EAS

1 the Railroad Retirement and Survivors’ Improvement Act

2 of 2001.

3 ‘‘(B) The Board shall from time to time certify—

4 ‘‘(i) to the Secretary of the Treasury the amounts

5 required to be transferred from the Social Security

6 Equivalent Benefit Account and the Dual Benefits

7 Payments Account to the disbursing agent to make

8 payments of benefits and the Secretary of the Treas9 ury shall transfer those amounts;

10 ‘‘(ii) to the Board of Trustees of the National

11 Railroad Retirement Investment Trust the amounts

12 required to be transferred from the National Railroad

13 Retirement Investment Trust to the disbursing agent

14 to make payments of benefits and the Board of Trust15 ees shall transfer those amounts; and

16 ‘‘(iii) to the disbursing agent the name and ad17 dress of each individual entitled to receive a payment,

18 the amount of such payment, and the time at which

19 the payment should be made.’’.

20 (f) BENEFIT PAYMENTS.—Section 7(c)(1) of the Rail21 road Retirement Act of 1974 (45 U.S.C. 231f(c)(1)) is

22 amended—

23 (1) by striking ‘‘from the Railroad Retirement

24 Account’’ and inserting ‘‘by the disbursing agent

25 under subsection (b)(4) from money transferred to it
32

HR 10 EAS

1 from the National Railroad Retirement Investment

2 Trust or the Social Security Equivalent Benefit Ac3 count, as the case may be’’; and

4 (2) by inserting ‘‘by the disbursing agent under

5 subsection (b)(4) from money transferred to it’’ after

6 ‘‘Public Law 93–445 shall be made’’.

7 (g) TRANSITIONAL RULE FOR EXISTING OBLIGA8 TION.—In making transfers under sections 15(k) and

9 15A(d)(2) of the Railroad Retirement Act of 1974, as

10 amended by subsections (a) and (c), respectively, the Rail11 road Retirement Board shall consult with the Secretary of

12 the Treasury to design an appropriate method to transfer

13 obligations held as of the date of enactment of this Act or

14 to convert such obligations to cash at the discretion of the

15 Railroad Retirement Board prior to transfer. The National

16 Railroad Retirement Investment Trust may hold to matu17 rity any obligations so received or may redeem them prior

18 to maturity, as the Trust deems appropriate.

19 SEC. 108. ANNUAL RATIO PROJECTIONS AND CERTIFI20 CATIONS BY THE RAILROAD RETIREMENT

21 BOARD.

22 (a) PROJECTIONS.—Section 22(a)(1) of the Railroad

23 Retirement Act of 1974 (45 U.S.C. 231u(a)(1)) is

24 amended—
33

HR 10 EAS

1 (1) by inserting after the first sentence the fol2 lowing new sentence: ‘‘On or before May 1 of each

3 year beginning in 2003, the Railroad Retirement

4 Board shall compute its projection of the account ben5 efits ratio and the average account benefits ratio (as

6 defined by section 3241(c) of the Internal Revenue

7 Code of 1986) for each of the next succeeding five fis8 cal years.’’; and

9 (2) by striking ‘‘the projection prepared pursu10 ant to the preceding sentence’’ and inserting ‘‘the pro11 jections prepared pursuant to the preceding two sen12 tences’’.

13 (b) CERTIFICATIONS.—The Railroad Retirement Act of

14 1974 (45 U.S.C. 231 et seq.) is amended by adding at the

15 end the following new section:

16 ‘‘COMPUTATION AND CERTIFICATION OF ACCOUNT BENEFIT

17 RATIOS

18 ‘‘SEC. 23. (a) INITIAL COMPUTATION AND CERTIFI19 CATION.—On or before November 1, 2003, the Railroad Re20 tirement Board shall—

21 ‘‘(1) compute the account benefits ratios for each

22 of the most recent 10 preceding fiscal years, and

23 ‘‘(2) certify the account benefits ratios for each

24 such fiscal year to the Secretary of the Treasury.
34

HR 10 EAS

1 ‘‘(b) COMPUTATIONS AND CERTIFICATIONS AFTER

2 2003.—On or before November 1 of each year after 2003,

3 the Railroad Retirement Board shall—

4 ‘‘(1) compute the account benefits ratio for the

5 fiscal year ending in such year, and

6 ‘‘(2) certify the account benefits ratio for such

7 fiscal year to the Secretary of the Treasury.

8 ‘‘(c) DEFINITION.—As used in this section, the term

9 ‘account benefits ratio’ has the meaning given that term in

10 section 3241(c) of the Internal Revenue Code of 1986.’’.

11 TITLE II—AMENDMENTS TO THE

12 INTERNAL REVENUE CODE OF

13 1986

14 SEC. 201. AMENDMENTS TO THE INTERNAL REVENUE CODE

15 OF 1986.

16 Except as otherwise provided, whenever in this title

17 an amendment or repeal is expressed in terms of an amend18 ment to, or repeal of, a section or other provision, the ref19 erence shall be considered to be made to a section or other

20 provision of the Internal Revenue Code of 1986.

21 SEC. 202. EXEMPTION FROM TAX FOR NATIONAL RAILROAD

22 RETIREMENT INVESTMENT TRUST.

23 Subsection (c) of section 501 is amended by adding

24 at the end the following new paragraph:
35

HR 10 EAS

1 ‘‘(28) The National Railroad Retirement Invest2 ment Trust established under section 15(j) of the Rail3 road Retirement Act of 1974.’’.

4 SEC. 203. REPEAL OF SUPPLEMENTAL ANNUITY TAX.

5 (a) REPEAL OF TAX ON EMPLOYEE REPRESENTA6 TIVES.—Section 3211 is amended by striking subsection (b).

7 (b) REPEAL OF TAX ON EMPLOYERS.—Section 3221

8 is amended by striking subsections (c) and (d) and by redes9 ignating subsection (e) as subsection (c).

10 (c) EFFECTIVE DATE.—The amendments made by this

11 section shall apply to calendar years beginning after De12 cember 31, 2001.

13 SEC. 204. EMPLOYER, EMPLOYEE REPRESENTATIVE, AND

14 EMPLOYEE TIER 2 TAX RATE ADJUSTMENTS.

15 (a) RATE OF TAX ON EMPLOYERS.—Subsection (b) of

16 section 3221 is amended to read as follows:

17 ‘‘(b) TIER 2 TAX.—

18 ‘‘(1) IN GENERAL.—In addition to other taxes,

19 there is hereby imposed on every employer an excise

20 tax, with respect to having individuals in his employ,

21 equal to the applicable percentage of the compensation

22 paid during any calendar year by such employer for

23 services rendered to such employer.
36

HR 10 EAS

1 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

2 of paragraph (1), the term ‘applicable percentage’

3 means—

4 ‘‘(A) 15.6 percent in the case of compensa5 tion paid during 2002,

6 ‘‘(B) 14.2 percent in the case of compensa7 tion paid during 2003, and

8 ‘‘(C) in the case of compensation paid dur9 ing any calendar year after 2003, the percentage

10 determined under section 3241 for such calendar

11 year.’’.

12 (b) RATE OF TAX ON EMPLOYEE REPRESENTA13 TIVES.—Section 3211, as amended by section 203, is

14 amended by striking subsection (a) and inserting the fol15 lowing new subsections:

16 ‘‘(a) TIER 1 TAX.—In addition to other taxes, there

17 is hereby imposed on the income of each employee represent18 ative a tax equal to the applicable percentage of the com19 pensation received during any calendar year by such em20 ployee representative for services rendered by such employee

21 representative. For purposes of the preceding sentence, the

22 term ‘applicable percentage’ means the percentage equal to

23 the sum of the rates of tax in effect under subsections (a)

24 and (b) of section 3101 and subsections (a) and (b) of sec25 tion 3111 for the calendar year.
37

HR 10 EAS

1 ‘‘(b) TIER 2 TAX.—

2 ‘‘(1) IN GENERAL.—In addition to other taxes,

3 there is hereby imposed on the income of each em4 ployee representative a tax equal to the applicable

5 percentage of the compensation received during any

6 calendar year by such employee representatives for

7 services rendered by such employee representative.

8 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

9 of paragraph (1), the term ‘applicable percentage’

10 means—

11 ‘‘(A) 14.75 percent in the case of compensa12 tion received during 2002,

13 ‘‘(B) 14.20 percent in the case of compensa14 tion received during 2003, and

15 ‘‘(C) in the case of compensation received

16 during any calendar year after 2003, the per17 centage determined under section 3241 for such

18 calendar year.

19 ‘‘(c) CROSS REFERENCE.—

‘‘For application of different contribution bases

with respect to the taxes imposed by subsections (a)

and (b), see section 3231(e)(2).’’.

20 (c) RATE OF TAX ON EMPLOYEES.—Subsection (b) of

21 section 3201 is amended to read as follows:

22 ‘‘(b) TIER 2 TAX.—

23 ‘‘(1) IN GENERAL.—In addition to other taxes,

24 there is hereby imposed on the income of each em-
38

HR 10 EAS

1 ployee a tax equal to the applicable percentage of the

2 compensation received during any calendar year by

3 such employee for services rendered by such employee.

4 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

5 of paragraph (1), the term ‘applicable percentage’

6 means—

7 ‘‘(A) 4.90 percent in the case of compensa8 tion received during 2002 or 2003, and

9 ‘‘(B) in the case of compensation received

10 during any calendar year after 2003, the per11 centage determined under section 3241 for such

12 calendar year.’’.

13 (d) DETERMINATION OF RATE.—Chapter 22 is amend14 ed by adding at the end the following new subchapter:

15 ‘‘Subchapter E—Tier 2 Tax Rate

16 Determination

‘‘Sec. 3241. Determination of tier 2 tax rate based on average account benefits ratio.

17 ‘‘SEC. 3241. DETERMINATION OF TIER 2 TAX RATE BASED

18 ON AVERAGE ACCOUNT BENEFITS RATIO.

19 ‘‘(a) IN GENERAL.—For purposes of sections 3201(b),

20 3211(b), and 3221(b), the applicable percentage for any cal21 endar year is the percentage determined in accordance with

22 the table in subsection (b).

23 ‘‘(b) TAX RATE SCHEDULE.—
39

HR 10 EAS

‘‘Average account benefits ratio Applicable percentage for sections 3211(b) and

3221(b)

Applicable percentage for section

At least But less than 3201(b)

2.5 22.1 4.9

2.5 3.0 18.1 4.9

3.0 3.5 15.1 4.9

3.5 4.0 14.1 4.9

4.0 6.1 13.1 4.9

6.1 6.5 12.6 4.4

6.5 7.0 12.1 3.9

7.0 7.5 11.6 3.4

7.5 8.0 11.1 2.9

8.0 8.5 10.1 1.9

8.5 9.0 9.1 0.9

9.0 8.2 0

1 ‘‘(c) DEFINITIONS RELATED TO DETERMINATION OF

2 RATES OF TAX.—

3 ‘‘(1) AVERAGE ACCOUNT BENEFITS RATIO.—For

4 purposes of this section, the term ‘average account

5 benefits ratio’ means, with respect to any calendar

6 year, the average determined by the Secretary of the

7 account benefits ratios for the 10 most recent fiscal

8 years ending before such calendar year. If the amount

9 determined under the preceding sentence is not a mul10 tiple of 0.1, such amount shall be increased to the

11 next highest multiple of 0.1.

12 ‘‘(2) ACCOUNT BENEFITS RATIO.—For purposes

13 of this section, the term ‘account benefits ratio’

14 means, with respect to any fiscal year, the amount

15 determined by the Railroad Retirement Board by di16 viding the fair market value of the assets in the Rail17 road Retirement Account and of the National Rail-
40

HR 10 EAS

1 road Retirement Investment Trust (and for years be2 fore 2002, the Social Security Equivalent Benefits Ac3 count) as of the close of such fiscal year by the total

4 benefits and administrative expenses paid from the

5 Railroad Retirement Account and the National Rail6 road Retirement Investment Trust during such fiscal

7 year.

8 ‘‘(d) NOTICE.—No later than December 1 of each cal9 endar year, the Secretary shall publish a notice in the Fed10 eral Register of the rates of tax determined under this sec11 tion which are applicable for the following calendar year.’’.

12 (e) CONFORMING AMENDMENTS.—

13 (1) Section 24(d)(3)(A)(iii) is amended by strik14 ing ‘‘section 3211(a)(1)’’ and inserting ‘‘section

15 3211(a)’’.

16 (2) Section 72(r)(2)(B)(i) is amended by striking

17 ‘‘3211(a)(2)’’ and inserting ‘‘3211(b)’’.

18 (3) Paragraphs (2)(A)(iii)(II) and (4)(A) of sec19 tion 3231(e) are amended by striking ‘‘3211(a)(1)’’

20 and inserting ‘‘3211(a)’’.

21 (4) Section 3231(e)(2)(B)(ii)(I) is amended by

22 striking ‘‘3211(a)(2)’’ and inserting ‘‘3211(b)’’.

23 (5) The table of subchapters for chapter 22 is

24 amended by adding at the end the following new item:

‘‘Subchapter E. Tier 2 tax rate determination.’’.
41

HR 10 EAS

1 (f) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to calendar years beginning after De3 cember 31, 2001.

Amend the title so as to read: ‘‘An Act to modernize

the financing of the railroad retirement system and to

provide enhanced benefits to employees and beneficiaries.’’.

Attest:

Secretary.

107TH CONGRESS

1ST SESSION H. R. 10

AMENDMENTS