clause (I), (II), or (III) of the previous
clause cannot agree on the selection of
Trustees within 60 days of the date of en-
actment or 60 days from any subsequent
date that a position of the Board of Trust-
ees becomes vacant, an impartial umpire to
decide such dispute shall, on the petition of
a party to the dispute, be appointed by the
District Court of the United States for the
District of Columbia.
‘‘(B) QUALIFICATIONS.—Members of the
Board of Trustees shall be appointed only from
among persons who have experience and exper-
tise in the management of financial investments
and pension plans. No member of the Railroad
Retirement Board shall be eligible to be a mem-
ber of the Board of Trustees.
‘‘(C) TERMS.—Except as provided in this
subparagraph, each member shall be appointed
for a 3-year term. The initial members ap-
pointed under this paragraph shall be divided
into equal groups so nearly as may be, of which
one group will be appointed for a 1-year term,
one for a 2-year term, and one for a 3-year
term. The Trustee initially selected pursuant to
clause (ii)(III) shall be appointed to a 3-year
term. A vacancy in the Board of Trustees shall
not affect the powers of the Board of Trustees
and shall be filled in the same manner as the
selection of the member whose departure caused
the vacancy. Upon the expiration of a term of
a member of the Board of Trustees, that mem-
ber shall continue to serve until a successor is
appointed.
‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—
The Board of Trustees shall—
‘‘(A) retain independent advisers to assist
it in the formulation and adoption of its invest-
ment guidelines;
‘‘(B) retain independent investment man-
agers to invest the assets of the Trust in a
manner consistent with such investment guide-
lines;
‘‘(C) invest assets in the Trust, pursuant
to the policies adopted in subparagraph (A);
‘‘(D) pay administrative expenses of the
Trust from the assets in the Trust; and
‘‘(E) transfer money to the disbursing
agent or as otherwise provided in section
7(b)(4), to pay benefits payable under this Act
from the assets of the Trust.
‘‘(5) REPORTING
REQUIREMENTS
AND
FIDU-
CIARY
STANDARDS.—The following reporting re-
quirements and fiduciary standards shall apply with
respect to the Trust:
‘‘(A) DUTIES OF THE BOARD OF TRUST-
EES.—The Trust and each member of the
Board of Trustees shall discharge their duties
(including the voting of proxies) with respect to
the assets of the Trust solely in the interest of
the Railroad Retirement Board and through it,
the participants and beneficiaries of the pro-
grams funded under this Act—
‘‘(i) for the exclusive purpose of—
‘‘(I) providing benefits to partici-
pants and their beneficiaries; and
‘‘(II) defraying reasonable ex-
penses of administering the functions
of the Trust;
‘‘(ii) with the care, skill, prudence,
and diligence under the circumstances then
prevailing that a prudent person acting in
a like capacity and familiar with such mat-
ters would use in the conduct of an enter-
prise of a like character and with like
aims;
‘‘(iii) by diversifying investments so as
to minimize the risk of large losses and to
avoid disproportionate influence over a
particular industry or firm, unless under
the circumstances it is clearly prudent not
to do so; and
‘‘(iv) in accordance with Trust gov-
erning documents and instruments insofar
as such documents and instruments are
consistent with this Act.
‘‘(B) PROHIBITIONS
WITH
RESPECT
TO
MEMBERS OF THE BOARD OF TRUSTEES.—No
member of the Board of Trustees shall—
‘‘(i) deal with the assets of the Trust
in the trustee’s own interest or for the
trustee’s own account;
‘‘(ii) in an individual or in any other
capacity act in any transaction involving
the assets of the Trust on behalf of a party
(or represent a party) whose interests are
adverse to the interests of the Trust, the
Railroad Retirement Board, or the inter-
ests of participants or beneficiaries; or
‘‘(iii) receive any consideration for the
trustee’s own personal account from any
party dealing with the assets of the Trust.
‘‘(C) EXCULPATORY PROVISIONS AND IN-
SURANCE.—Any provision in an agreement or
instrument that purports to relieve a trustee
from responsibility or liability for any responsi-
bility, obligation, or duty under this Act shall
be void: Provided, however, That nothing shall
preclude—
‘‘(i) the Trust from purchasing insur-
ance for its trustees or for itself to cover
liability or losses occurring by reason of
the act or omission of a trustee, if such in-
surance permits recourse by the insurer
against the trustee in the case of a breach
of a fiduciary obligation by such trustee;
‘‘(ii) a trustee from purchasing insur-
ance to cover liability under this section
from and for his own account; or
‘‘(iii) an employer or an employee or-
ganization from purchasing insurance to
cover potential liability of one or more
trustees with respect to their fiduciary re-
sponsibilities, obligations, and duties under
this section.
‘‘(D) BONDING.—Every trustee and every
person who handles funds or other property of
the Trust (hereafter in this subsection referred
to as ‘Trust official’) shall be bonded. Such
bond shall provide protection to the Trust
against loss by reason of acts of fraud or dis-
honesty on the part of any Trust official, di-
rectly or through the connivance of others, and
shall be in accordance with the following:
‘‘(i) The amount of such bond shall be
fixed at the beginning of each fiscal year
of the Trust by the Railroad Retirement
Board. Such amount shall not be less than
10 percent of the amount of the funds
handled. In no case shall such bond be less
than $1,000 nor more than $500,000, ex-
cept that the Railroad Retirement Board,
after consideration of the record, may pre-
scribe an amount in excess of $500,000,
subject to the 10 per centum limitation of
the preceding sentence.
‘‘(ii) It shall be unlawful for any
Trust official to receive, handle, disburse,
or otherwise exercise custody or control of
any of the funds or other property of the
Trust without being bonded as required by
this subsection and it shall be unlawful for
any Trust official, or any other person hav-
ing authority to direct the performance of
such functions, to permit such functions,
or any of them, to be performed by any
Trust official, with respect to whom the re-
quirements of this subsection have not
been met.
‘‘(iii) It shall be unlawful for any per-
son to procure any bond required by this
subsection from any surety or other com-
pany or through any agent or broker in
whose business operations such person has
any control or significant financial interest,
direct or indirect.
‘‘(E) AUDIT AND REPORT.—
‘‘(i) The Trust shall annually engage
an independent qualified public accountant
to audit the financial statements of the
Trust.
‘‘(ii) The Trust shall submit an an-
nual management report to the Congress
not later than 180 days after the end of
the Trust’s fiscal year. A management re-
port under this subsection shall include—
‘‘(I) a statement of financial po-
sition;
‘‘(II) a statement of operations;
‘‘(III) a statement of cash flows;
‘‘(IV) a statement on internal ac-
counting and administrative control
systems;
‘‘(V) the report resulting from an
audit of the financial statements of
the Trust conducted under clause (i);
and
‘‘(VI) any other comments and
information necessary to inform the
Congress about the operations and fi-
nancial condition of the Trust.
‘‘(iii) The Trust shall provide the
President, the Railroad Retirement Board,
and the Director of the Office of Manage-
ment and Budget a copy of the manage-
ment report when it is submitted to Con-
gress.
‘‘(F) ENFORCEMENT.—The Railroad Re-
tirement Board may bring a civil action—
‘‘(i) to enjoin any act or practice by
the Trust, its Board of Trustees, or its em-
ployees or agents that violates any provi-
sion of this Act; or
‘‘(ii) to obtain other appropriate relief
to redress such violations, or to enforce
any provisions of this Act.
‘‘(6) RULES AND ADMINISTRATIVE POWERS.—
The Board of Trustees shall have the authority to
make rules to govern its operations, employ profes-
sional staff, and contract with outside advisers, in-
cluding the Railroad Retirement Board, to provide
legal, accounting, investment advisory, or other serv-
ices necessary for the proper administration of this
subsection. In the case of contracts with investment
advisory services, compensation for such services
may be on a fixed contract fee basis or on such
other terms and conditions as are customary for
such services.
‘‘(7) QUORUM.—Five members of the Board of
Trustees constitute a quorum to do business. Invest-
ment guidelines must be adopted by a unanimous
vote of the entire Board of Trustees. All other deci-
sions of the Board of Trustees shall be decided by
a majority vote of the quorum present. All decisions
of the Board of Trustees shall be entered upon the
records of the Board of Trustees.
‘‘(8) FUNDING.—The expenses of the Trust and
the Board of Trustees incurred under this sub-
section shall be paid from the Trust.’’.
(b) CONFORMING
AND TECHNICAL AMENDMENTS
GOVERNING INVESTMENTS.—Section 15(e) of the Rail-
road Retirement Act of 1974 (45 U.S.C. 231n(e)) is
amended—
(1) in the first sentence, by striking ‘‘, the Dual
Benefits Payments Account’’ and all that follows
through ‘‘may be made only’’ in the second sentence
and inserting ‘‘and the Dual Benefits Payments Ac-
count as are not transferred to the National Rail-
road Retirement Investment Trust as the Board
may determine’’;
(2) by striking ‘‘the Second Liberty Bond Act,
as amended’’ and inserting ‘‘chapter 31 of title 31’’;
and
(3) by striking ‘‘the foregoing requirements’’
and inserting ‘‘the requirements of this subsection’’.
(c) MEANS OF FINANCING.—For all purposes of the
Congressional Budget Act of 1974, the Balanced Budget
and Emergency Deficit Control Act of 1985, and chapter
11 of title 31, United States Code, and notwithstanding
section 20 of the Office of Management and Budget Cir-
cular No. A-11, the purchase or sale of non-Federal assets
(other than gains or losses from such transactions) by the
National Railroad Retirement Investment Trust shall be
treated as a means of financing.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the month
that begins more than 30 days after enactment.
SEC. 106. ELIMINATION OF SUPPLEMENTAL ANNUITY AC-
COUNT.
(a) SOURCE OF PAYMENTS.—Section 7(c)(1) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231f(c)(1))
is amended by striking ‘‘payments of supplemental annu-
ities under section 2(b) of this Act shall be made from
the Railroad Retirement Supplemental Account, and’’.
(b) ELIMINATION OF ACCOUNT.—Section 15(c) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n(c))
is repealed.
(c) AMENDMENT TO RAILROAD RETIREMENT AC-
COUNT.—Section 15(a) of the Railroad Retirement Act of
1974 (45 U.S.C. 231n(a)) is amended by striking ‘‘, ex-
cept those portions of the amounts covered into the Treas-
‘‘(l) NATIONAL RAILROAD RETIREMENT INVEST-
MENT TRUST.—The National Railroad Retirement Invest-
ment Trust shall from time to time transfer to the dis-
bursing agent described in section 7(b)(4) or as otherwise
directed by the Railroad Retirement Board pursuant to
section 7(b)(4), such amounts as may be necessary to pay
benefits under this Act (other than benefits paid from the
Social Security Equivalent Benefit Account or the Dual
Benefit Payments Account).’’.
(c) SOCIAL SECURITY EQUIVALENT BENEFIT AC-
COUNT.—
(1) TRANSFERS TO TRUST.—Section 15A(d)(2)
of the Railroad Retirement Act of 1974 (45 U.S.C.
231n–1(d)(2)) is amended to read as follows:
‘‘(2) Upon establishment of the National Railroad
Retirement Investment Trust and from time to time there-
after, the Board shall direct the Secretary of the Treasury
to transfer, in such manner as will maximize the invest-
ment returns to the Railroad Retirement system, the bal-
ance of the Social Security Equivalent Benefit Account
not needed to pay current benefits and administrative ex-
penses required to be paid from that Account to the Na-
tional Railroad Retirement Investment Trust, and the
Secretary shall make that transfer. Any balance trans-
ferred under this paragraph shall be used by the National
Railroad Retirement Investment Trust only to pay bene-
fits under this Act or to purchase obligations of the United
States that are backed by the full faith and credit of the
United States pursuant to chapter 31 of title 31, United
States Code. The proceeds of sales of, and the interest
income from, such obligations shall be used by the Trust
only to pay benefits under this Act.’’.
(2) TRANSFERS TO DISBURSING AGENT.—Sec-
tion 15A(c)(1) of the Railroad Retirement Act of
1974 (45 U.S.C. 231n–1(c)(1)) is amended by add-
ing at the end the following new sentence: ‘‘The Sec-
retary shall from time to time transfer to the dis-
bursing agent under section 7(b)(4) amounts nec-
essary to pay those benefits.’’.
(3) 
CONFORMING
AMENDMENT.—Section
15A(d)(1) of the Railroad Retirement Act of 1974
(45 U.S.C. 231n–1(d)(1)) is amended by striking
the second and third sentences.
(d) DUAL BENEFITS PAYMENTS ACCOUNT.—Section
15(d)(1) of the Railroad Retirement Act of 1974 (45
U.S.C. 231n(d)(1)) is amended by adding at the end the
following new sentence: ‘‘The Secretary of the Treasury
shall from time to time transfer from the Dual Benefits
Payments Account to the disbursing agent under section
7(b)(4) amounts necessary to pay benefits payable from
that Account.’’.
(e) CERTIFICATION
BY
THE
BOARD
AND
PAY-
MENT.—Paragraph (4) of section 7(b) of the Railroad Re-
tirement Act of 1974 (45 U.S.C. 231f(b)(4)) is amended
to read as follows:
‘‘(4)(A) The Railroad Retirement Board, after con-
sultation with the Board of Trustees of the National Rail-
road Retirement Investment Trust and the Secretary of
the Treasury, shall enter into an arrangement with a non-
governmental financial institution to serve as disbursing
agent for benefits payable under this Act who shall dis-
burse consolidated benefits under this Act to each recipi-
ent. Pending the taking effect of that arrangement, bene-
fits shall be paid as under the law in effect prior to the
enactment of the Railroad Retirement and Survivors’ Im-
provement Act of 2001.
‘‘(B) The Board shall from time to time certify—
‘‘(i) to the Secretary of the Treasury the
amounts required to be transferred from the Social
Security Equivalent Benefit Account and the Dual
Benefits Payments Account to the disbursing agent
to make payments of benefits and the Secretary of
the Treasury shall transfer those amounts;
‘‘(ii) to the Board of Trustees of the National
Railroad Retirement Investment Trust the amounts
required to be transferred from the National Rail-
road Retirement Investment Trust to the disbursing
agent to make payments of benefits and the Board
of Trustees shall transfer those amounts; and
‘‘(iii) to the disbursing agent the name and ad-
dress of each individual entitled to receive a pay-
ment, the amount of such payment, and the time at
which the payment should be made.’’.
(f) BENEFIT PAYMENTS.—Section 7(c)(1) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231f(c)(1))
is amended—
(1) by striking ‘‘from the Railroad Retirement
Account’’ and inserting ‘‘by the disbursing agent
under subsection (b)(4) from money transferred to it
from the National Railroad Retirement Investment
Trust or the Social Security Equivalent Benefit Ac-
count, as the case may be’’; and
(2) by inserting ‘‘by the disbursing agent under
subsection (b)(4) from money transferred to it’’
after ‘‘Public Law 93–445 shall be made’’.
(g) TRANSITIONAL RULE
FOR EXISTING OBLIGA-
TION.—In making transfers under sections 15(k) and
15A(d)(2) of the Railroad Retirement Act of 1974, as
amended by subsections (a) and (c), respectively, the Rail-
road Retirement Board shall consult with the Secretary
of the Treasury to design an appropriate method to trans-
fer obligations held as of the date of enactment of this
Act or to convert such obligations to cash at the discretion
of the Railroad Retirement Board prior to transfer. The
National Railroad Retirement Investment Trust may hold
to maturity any obligations so received or may redeem
them prior to maturity, as the Trust deems appropriate.
SEC. 108. ANNUAL RATIO PROJECTIONS AND CERTIFI-
CATIONS BY THE RAILROAD RETIREMENT
BOARD.
(a) PROJECTIONS.—Section 22(a)(1) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231u(a)(1)) is
amended—
(1) by inserting after the first sentence the fol-
lowing new sentence: ‘‘On or before May 1 of each
year beginning in 2003, the Railroad Retirement
Board shall compute its projection of the account
benefits ratio and the average account benefits ratio
(as defined by section 3241(c) of the Internal Rev-
enue Code of 1986) for each of the next succeeding
five fiscal years.’’; and
(2) by striking ‘‘the projection prepared pursu-
ant to the preceding sentence’’ and inserting ‘‘the
projections prepared pursuant to the preceding two
sentences’’.
(b) CERTIFICATIONS.—The Railroad Retirement Act
of 1974 (45 U.S.C. 231 et seq.) is amended by adding
at the end the following new section:
‘‘COMPUTATION AND CERTIFICATION OF ACCOUNT
BENEFIT RATIOS
‘‘SEC. 23. (a) INITIAL COMPUTATION AND CERTIFI-
CATION.—On or before November 1, 2003, the Railroad
Retirement Board shall—
‘‘(1) compute the account benefits ratios for
each of the most recent 10 preceding fiscal years,
and
‘‘(2) certify the account benefits ratios for each
such fiscal year to the Secretary of the Treasury.
‘‘(b) COMPUTATIONS AND CERTIFICATIONS AFTER
2003.—On or before November 1 of each year after 2003,
the Railroad Retirement Board shall—
‘‘(1) compute the account benefits ratio for the
fiscal year ending in such year, and
‘‘(2) certify the account benefits ratio for such
fiscal year to the Secretary of the Treasury.
‘‘(c) DEFINITION.—As used in this section, the term
‘account benefits ratio’ has the meaning given that term
in section 3241(c) of the Internal Revenue Code of
1986.’’.
TITLE II—AMENDMENTS TO THE
INTERNAL 
REVENUE 
CODE
OF 1986
SEC. 201. AMENDMENTS TO THE INTERNAL REVENUE CODE
OF 1986.
Except as otherwise provided, whenever in this title
an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section
or other provision of the Internal Revenue Code of 1986.
SEC. 202. EXEMPTION FROM TAX FOR NATIONAL RAILROAD
RETIREMENT INVESTMENT TRUST.
Subsection (c) of section 501 is amended by adding
at the end the following new paragraph:
‘‘(28) The National Railroad Retirement Invest-
ment Trust established under section 15(j) of the
Railroad Retirement Act of 1974.’’.
SEC. 203. REPEAL OF SUPPLEMENTAL ANNUITY TAX.
(a) REPEAL OF TAX ON EMPLOYEE REPRESENTA-
TIVES.—Section 3211 is amended by striking subsection
(b).
(b) REPEAL OF TAX ON EMPLOYERS.—Section 3221
is amended by striking subsections (c) and (d) and by re-
designating subsection (e) as subsection (c).
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to calendar years beginning after
December 31, 2001.
SEC. 204. EMPLOYER, EMPLOYEE REPRESENTATIVE, AND
EMPLOYEE TIER 2 TAX RATE ADJUSTMENTS.
(a) RATE OF TAX ON EMPLOYERS.—Subsection (b)
of section 3221 is amended to read as follows:
‘‘(b) TIER 2 TAX.—
‘‘(1) IN GENERAL.—In addition to other taxes,
there is hereby imposed on every employer an excise
tax, with respect to having individuals in his employ,
equal to the applicable percentage of the compensa-
tion paid during any calendar year by such employer
for services rendered to such employer.
‘‘(2) APPLICABLE PERCENTAGE.—For purposes
of paragraph (1), the term ‘applicable percentage’
means—
‘‘(A) 15.6 percent in the case of compensa-
tion paid during 2002,
‘‘(B) 14.2 percent in the case of compensa-
tion paid during 2003, and
‘‘(C) in the case of compensation paid dur-
ing any calendar year after 2003, the percent-
age determined under section 3241 for such cal-
endar year.’’.
(b) RATE
OF TAX
ON EMPLOYEE REPRESENTA-
TIVES.—Section 3211, as amended by section 203, is
amended by striking subsection (a) and inserting the fol-
lowing new subsections:
‘‘(a) TIER 1 TAX.—In addition to other taxes, there
is hereby imposed on the income of each employee rep-
resentative a tax equal to the applicable percentage of the
compensation received during any calendar year by such
employee representative for services rendered by such em-
ployee representative. For purposes of the preceding sen-
tence, the term ‘applicable percentage’ means the percent-
age equal to the sum of the rates of tax in effect under
subsections (a) and (b) of section 3101 and subsections
(a) and (b) of section 3111 for the calendar year.
‘‘(b) TIER 2 TAX.—
‘‘(1) IN GENERAL.—In addition to other taxes,
there is hereby imposed on the income of each em-
ployee representative a tax equal to the applicable
percentage of the compensation received during any
calendar year by such employee representatives for
services rendered by such employee representative.
‘‘(2) APPLICABLE PERCENTAGE.—For purposes
of paragraph (1), the term ‘applicable percentage’
means—
‘‘(A) 14.75 percent in the case of com-
pensation received during 2002,
‘‘(B) 14.20 percent in the case of com-
pensation received during 2003, and
‘‘(C) in the case of compensation received
during any calendar year after 2003, the per-
centage determined under section 3241 for such
calendar year.
‘‘(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).’’.
(c) RATE OF TAX ON EMPLOYEES.—Subsection (b)
of section 3201 is amended to read as follows:
‘‘(b) TIER 2 TAX.—
‘‘(1) IN GENERAL.—In addition to other taxes,
there is hereby imposed on the income of each em-
ployee a tax equal to the applicable percentage of
the compensation received during any calendar year
by such employee for services rendered by such em-
ployee.
‘‘(2) APPLICABLE PERCENTAGE.—For purposes
of paragraph (1), the term ‘applicable percentage’
means—
‘‘(A) 4.90 percent in the case of compensa-
tion received during 2002 or 2003, and
‘‘(B) in the case of compensation received
during any calendar year after 2003, the per-
centage determined under section 3241 for such
calendar year.’’.
(d) DETERMINATION
OF
RATE.—Chapter 22 is
amended by adding at the end the following new sub-
chapter:
‘‘Subchapter E—Tier 2 Tax Rate
Determination
‘‘Sec. 3241. Determination of tier 2 tax rate based on average ac-
count benefits ratio.
‘‘SEC. 3241. DETERMINATION OF TIER 2 TAX RATE BASED
ON AVERAGE ACCOUNT BENEFITS RATIO.
‘‘(a) IN
GENERAL.—For purposes of sections
3201(b), 3211(b), and 3221(b), the applicable percentage
for any calendar year is the percentage determined in ac-
cordance with the table in subsection (b).
‘‘(b) TAX RATE SCHEDULE.—
‘‘Average account benefits ratio
Applicable per-
centage for sec-
tions 3211(b) and
3221(b)
Applicable per-
centage for section
3201(b)
At least
But less than
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
‘‘(c) DEFINITIONS RELATED TO DETERMINATION OF
RATES OF TAX.—
‘‘(1) AVERAGE
ACCOUNT
BENEFITS
RATIO.—
For purposes of this section, the term ‘average ac-
count benefits ratio’ means, with respect to any cal-
endar year, the average determined by the Secretary
of the account benefits ratios for the 10 most recent
fiscal years ending before such calendar year. If the
amount determined under the preceding sentence is
not a multiple of 0.1, such amount shall be in-
creased to the next highest multiple of 0.1.
‘‘(2) ACCOUNT
BENEFITS
RATIO.—For pur-
poses of this section, the term ‘account benefits
ratio’ means, with respect to any fiscal year, the
amount determined by the Railroad Retirement
Board by dividing the fair market value of the assets
in the Railroad Retirement Account and of the Na-
tional Railroad Retirement Investment Trust (and
for years before 2002, the Social Security Equiva-
lent Benefits Account) as of the close of such fiscal
year by the total benefits and administrative ex-
penses paid from the Railroad Retirement Account
and the National Railroad Retirement Investment
Trust during such fiscal year.
‘‘(d) NOTICE.—No later than December 1 of each
calendar year, the Secretary shall publish a notice in the
Federal Register of the rates of tax determined under this
section which are applicable for the following calendar
year.’’.
(e) CONFORMING AMENDMENTS.—
(1) Section 24(d)(3)(A)(iii) is amended by
striking ‘‘section 3211(a)(1)’’ and inserting ‘‘section
3211(a)’’.
(2) Section 72(r)(2)(B)(i) is amended by strik-
ing ‘‘3211(a)(2)’’ and inserting ‘‘3211(b)’’.
(3) Paragraphs (2)(A)(iii)(II) and (4)(A) of
section 
3231(e) 
are 
amended 
by 
striking
‘‘3211(a)(1)’’ and inserting ‘‘3211(a)’’.
(4) Section 3231(e)(2)(B)(ii)(I) is amended by
striking ‘‘3211(a)(2)’’ and inserting ‘‘3211(b)’’.
(5) The table of subchapters for chapter 22 is
amended by adding at the end the following new
item:
‘‘Subchapter E. Tier 2 tax rate determination.’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to calendar years beginning after
December 31, 2001.
Passed the House of Representatives July 31, 2001.
Attest:
Clerk.
107TH CONGRESS
1ST SESSION
H. R. 1140
AN ACT
To modernize the financing of the railroad retire-
ment system and to provide enhanced benefits to
employees and beneficiaries.