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 Railroad Retirement Investment Trust.
Sec. 203. Repeal of supplemental annuity tax.
Sec. 204. Employer, employee representative, and employee tier 2 tax rate adjust-
ments.
TITLE I—AMENDMENTS TO RAIL-
ROAD RETIREMENT ACT OF
1974
SEC. 101. EXPANSION OF WIDOW’S AND WIDOWER’S BENE-
FITS.
(a) IN GENERAL.—Section 4(g) of the Railroad Retire-
ment Act of 1974 is amended by adding at the end the fol-
lowing new subdivision:
‘‘(10)(i) If for any month the unreduced annuity pro-
vided under this section for a widow or widower is less than
the widow’s or widower’s initial minimum amount com-
puted pursuant to paragraph (ii) of this subdivision, the
unreduced annuity shall be increased to that initial min-
imum amount. For the purposes of this subdivision, the un-
reduced annuity is the annuity without regard to any de-
duction on account of work, without regard to any reduc-
tion for entitlement to an annuity under section 2(a)(1)
of this Act, without regard to any reduction for entitlement
to a benefit under title II of the Social Security Act, and
without regard to any reduction for entitlement to a public
service pension pursuant to sections 202(e)(7), 202(f)(2), or
section 202(g)(4) of the Social Security Act.
‘‘(ii) For the purposes of this subdivision, the widow
or widower’s initial minimum amount is the amount of the
unreduced annuity computed at the time an annuity is
awarded to that widow or widower, except that—
‘‘(A) in subsection (g)(1)(i) ‘100 per centum’
shall be substituted for ‘50 per centum’; and
‘‘(B) in subsection (g)(2)(ii) ‘130 per centum’
shall be substituted for ‘80 per centum’ both places it
appears.
‘‘(iii) If a widow or widower who was previously enti-
tled to a widow’s or widower’s annuity under section
2(d)(1)(ii) of this Act becomes entitled to a widow’s or wid-
ow’s annuity under section 2(d)(1)(i) of this Act, a new
initial minimum amount shall be computed at the time of
award of the widow’s or widower’s annuity under section
2(d)(1)(i) of this Act.’’.
(b) EFFECTIVE DATE.—
(1) GENERALLY.—The amendment made by this
section shall take effect January 1, 2001 and shall
apply to annuity amounts accruing for months after
December 2000 in the case of annuities awarded on
or after that date and in the case of annuities award-
ed before that date if the annuity amount under sec-
tion 4(g) of the Railroad Retirement Act was com-
puted under section 4(g), as amended by Public Law
97–35.
(2) SPECIAL RULE FOR ANNUITIES AWARDED BE-
FORE JANUARY 1, 2001.—In applying the amendments
made by this section to annuities awarded before Jan-
uary 1, 2001, the calculation of the initial minimum
amount under new section 4(g)(10)(ii) of the Act shall
be made as of the date of award of the widow’s or
widower’s annuity.
SEC. 102. RETIREMENT AGE RESTORATION.
(a) EMPLOYEE ANNUITIES.—Section 3(a)(2) of the
Railroad Retirement Act of 1974 is amended by inserting
after ‘‘(2)’’ the following: ‘‘For purposes of this subsection,
individuals entitled to an annuity under section 2(a)(1)(ii)
of this Act shall, except for the purposes of recomputations
in accordance with section 215(f) of the Social Security Act,
be deemed to have attained retirement age (as defined by
section 216(l) of the Social Security Act).’’.
(b) SPOUSE
AND
SURVIVOR
ANNUITIES.—Section
4(a)(2) of the Railroad Retirement Act of 1974 is amended
by striking ‘‘if an’’ and all that follows through ‘‘section
2(c)(1) of this Act’’ and inserting ‘‘a spouse entitled to an
annuity under section 2(c)(1)(ii)(B) of this Act’’.
(c) CONFORMING REPEALS.—Sections 3(a)(3), 4(a)(3),
and 4(a)(4) of the Railroad Retirement Act are repealed.
(d) EFFECTIVE DATES.—
(1) GENERALLY.—Except as provided in para-
graph (2), the amendments made by this section shall
apply to annuities that begin to accrue on or after
January 1, 2001.
(2) EXCEPTION.—The amount of the annuity
provided for a spouse under section 4(a) shall be com-
puted under section 4(a)(3), as in effect before the
date of the enactment of this section, if the annuity
amount provided under section 3(a) for the indi-
vidual on whose employment record the spouse annu-
ity is based was computed under section 3(a)(3), as
in effect before the date of the enactment of this sec-
tion.
SEC. 103. VESTING REQUIREMENT.
(a) CERTAIN ANNUITIES FOR INDIVIDUALS.—Section
2(a) of the Railroad Retirement Act of 1974 is amended—
(1) by inserting in subdivision (1) ‘‘or, for pur-
poses of paragraphs (i), (iii), and (v), five years of
service, all of which accrues after December 31, 1995,’’
after ‘‘ten years of service’’, and
(2) by adding at the end the following:
‘‘(4) An individual who is entitled to an annuity
under paragraph (v) of subdivision (1), but who does not
have at least ten years of service, shall, prior to the month
in which the individual attains age 62, be entitled only to
an annuity amount computed under section 3(a) of this Act
(without regard to section 3(a)(2) of this Act) or section
3(f)(3) of this Act. Upon attainment of age 62, such an in-
dividual may also be entitled to an annuity amount com-
puted under section 3(b), but such annuity amount shall
be reduced for early retirement in the same manner as if
the individual were entitled to an annuity under section
2(a)(1)(iii).’’.
(b) COMPUTATION RULE
FOR INDIVIDUALS’ ANNU-
ITIES.—Section 3(a) of the Railroad Retirement Act of
1974, as amended by section 102 of this Act, is further
amended by adding at the end the following new subdivi-
sion:
‘‘(3) If an individual entitled to an annuity under sec-
tion 2(a)(1)(i) or (iii) of this Act on the basis of less than
ten years of service is entitled to a benefit under section
202(a), section 202(b), or section 202(c) of the Social Secu-
rity Act which began to accrue before the annuity under
section 2(a)(1)(i) or (iii) of this Act, the annuity amount
provided such individual under this subsection, shall be
computed as though the annuity under this Act began to
accrue on the later of (A) the date on which the benefit
under section 202(a), section 202(b), or section 202(c) of
the Social Security Act began or (B) the date on which the
individual first met the conditions for entitlement to an age
reduced annuity under this Act other than the conditions
set forth in sections 2(e)(1) and 2(e)(2) of this Act and the
requirement that an application be filed.’’.
(c) SURVIVORS’ ANNUITIES.—Section 2(d)(1) of the
Railroad Retirement Act of 1974 is amended by inserting
‘‘or five years of service, all of which accrues after December
31, 1995,’’ after ‘‘ten years of service’’.
(d) LIMITATION ON ANNUITY AMOUNTS.—Section 2 of
the Railroad Retirement Act of 1974 is amended by adding
at the end the following:
‘‘(i) An individual entitled to an annuity under this
section who has completed five years of service, all of which
accrues after 1995, but who has not completed ten years
of service, and the spouse, divorced spouse, and survivors
of such individual, shall not be entitled to an annuity
amount provided under section 3(a), section 4(a), or section
4(f) of this Act unless the individual, or the individual’s
spouse, divorced spouse, or survivors, would be entitled to
a benefit under the Social Security Act on the basis of the
individual’s employment record under both the Railroad
Retirement Act and the Social Security Act.’’.
(e) COMPUTATION RULE FOR SPOUSES’ ANNUITIES.—
Section 4(a) of the Railroad Retirement Act of 1974, as
amended by section 102 of this Act, is further amended by
adding at the end the following new subdivision:
‘‘(3) If a spouse entitled to an annuity under section
2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), or section 2(c)(2) of
this Act or a divorced spouse entitled to an annuity under
section 2(c)(4) of this Act on the basis of the employment
record of an employee who will have completed less than
10 years of service is entitled to a benefit under section
202(a), section 202(b), or section 202(c) of the Social Secu-
rity Act which began to accrue before the annuity under
section 2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), section 2(c)(2),
or section 2(c)(4) of this Act, the annuity amount provided
under this subsection shall be computed as though the annu-
ity under this Act began to accrue on the later of (A) the
date on which the benefit under section 202(a), section
202(b), or section 202(c) of the Social Security Act began
or (B) the first date on which the annuitant met the condi-
tions for entitlement to an age reduced annuity under this
Act other than the conditions set forth in sections 2(e)(1)
and 2(e)(2) of this Act and the requirement that an applica-
tion be filed.’’.