I
104TH CONGRESS
1ST SESSION
H. R. 2233
To amend the Railroad Retirement Act, the Railroad Unemployment Insur-
ance 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 provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Railroad Retirement Act, the Railroad Unem-
ployment Insurance Act, and related statutes to ease
administration of the railroad retirement and railroad
unemployment insurance programs, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Railroad Retirement and Railroad Unemployment Insur-
ance Amendments Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
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.
TITLE I—FINANCIAL
AMENDMENTS
SEC. 101. DISCLOSURE OF INFORMATION TO RAILROAD RE-
TIREMENT BOARD.
Section 6103(l)(1)(C) of the Internal Revenue Code
of 1986 is amended to read as follows:
‘‘(C) taxes imposed by chapters 22 and
23A, to the Railroad Retirement Board for pur-
poses of its administration of the Railroad Re-
tirement and Railroad Unemployment Insur-
ance Acts.’’
SEC. 102. UNCASHED CHECKS.
(a) IN GENERAL.—Section 3334(b) of title 31 of the
United States Code is amended—
(1) in paragraph (2), by striking ‘‘The’’ and in-
serting ‘‘Except as provided in paragraph (3), the’’;
and
(2) by adding at the end the following:
‘‘(3) The proceeds of checks canceled pursuant
to paragraph (1) which were drawn on accounts es-
tablished under the Railroad Retirement Act or the
Railroad Unemployment Insurance Act shall be re-
credited to the account or accounts initially charged
for the payment.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to checks issued before October
1, 1989.
SEC. 103. INVESTMENT OF RAILROAD RETIREMENT TRUST
FUNDS.
Section 15(e) of the Railroad Retirement Act is
amended—
(1) by striking ‘‘notes’’ in the fifth sentence and
inserting ‘‘obligations’’; and
(2) by striking ‘‘three years’’ in the fifth sen-
tence and inserting ‘‘four years’’.
TITLE II—BENEFIT
AMENDMENTS
SEC. 201. ANNUITIES AS MARITAL PROPERTY.
(a) IN GENERAL.—Section 14(b)(2) of the Railroad
Retirement Act is amended to read as follows:
‘‘(2) This section shall not operate to prohibit the
characterization or treatment of that portion of an annuity
under this Act which is computed under section 3(b), 3(e),
3(g) or 3(h) of this Act as community property for the
purposes of, or property subject to, distribution in accord-
ance with a court decree of divorce, annulment, or legal
separation or the terms of any court-approved property
settlement incident to any such court decree. The Board
shall make payments of such portions in accordance with
any such characterization or treatment or any such decree
or settlement.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to annuity payments
payable for months beginning after August 12, 1983.
SEC. 202. REQUIREMENT FOR A SOCIAL SECURITY NUM-
BER.
(a) IN GENERAL.—Section 2 of the Railroad Retire-
ment Act of 1974 is amended by adding at the end the
following:
‘‘(i) The Board shall require, as a condition for either
the receipt of an annuity or to be included in the computa-
tion of an annuity under this Act, that an individual fur-
nish satisfactory proof of a social security account number
assigned to such individual by the Social Security Admin-
istration.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to claims for benefits not awarded
prior to the date of the enactment of this Act.
SEC. 203. REPEAL OF OBSOLETE PROVISION.
Section 17 of the Railroad Unemployment Insurance
Act (45 U.S.C. 368) providing supplemental benefits is re-
pealed.
TITLE III—ADMINISTRATIVE
SIMPLIFICATION AMENDMENTS
SEC. 301. SINGLE ADMINISTRATIVE ACCOUNT.
(a) RAILROAD RETIREMENT.—Section 15(h) of the
Railroad Retirement Act of 1974 is amended to read as
follows:
‘‘(h)(1) Notwithstanding any other provision of law,
there are authorized to be made available for expenditure
out of the Railroad Retirement Account, the Railroad Re-
tirement Supplemental Account, the Social Security
Equivalent Benefit Account, and the railroad unemploy-
ment insurance account, such sums as the Congress may
deem appropriate to pay the costs of administration of this
Act and the Railroad Unemployment Insurance Act.
‘‘(2) If at the beginning of a fiscal year or at any
time during a fiscal year there is a lapse in appropriations
to pay the costs of administration of this Act or the Rail-
road Unemployment Insurance Act, the Board is author-
ized to make expenditures out of the above mentioned ac-
counts to pay the costs of such administration at a level
not exceeding the most recent current level until the ear-
lier of—
‘‘(A) enactment into law of an appropriation
Act or Resolution providing for the payment of such
costs; or
‘‘(B) enactment into law of an Act repealing
this provision.
‘‘(3) During each fiscal year or after the close of such
fiscal year (or at both times), the Board shall analyze the
costs of administration of this Act and the Railroad Un-
employment Insurance Act during the appropriate part or
all of the fiscal year in order to determine the portion of
such costs which should be borne by each of the accounts
and shall certify to the Secretary of the Treasury the
amount, if any, which should be transferred among such
accounts in order to assure that each of the accounts bears
its proper share of the costs incurred during such fiscal
year for administration of this Act and the Railroad Un-
employment Insurance Act. The Secretary of the Treasury
is authorized and directed to transfer any such amount
(determined under the preceding sentence) among such
accounts in accordance with any certification so made. De-
terminations of the Board as to whether funds made avail-
able for administration of this Act and the Railroad Un-
employment Insurance Act are properly chargeable with
the authorized expenses, or parts thereof, incurred in the
administration of this Act or the Railroad Unemployment
Insurance Act shall be binding and conclusive for all pur-
poses and upon all persons, including the Comptroller
General and any other administrative or accounting offi-
cer, employee, or agent of the United States, and shall
not be subject to review in any manner.’’.
(b) 
DEPOSIT
OF
UNEMPLOYMENT
CONTRIBU-
TIONS.—Section 8(i) of the Railroad Unemployment In-
surance Act is amended to read as follows:
‘‘(i) The contributions required by this Act shall be
collected by the Board and shall be deposited by it with
the Secretary of the Treasury of the United States to the
credit of the railroad unemployment insurance account.’’.
(c) UNEMPLOYMENT ACCOUNT.—Section 10(a) of
the Railroad Unemployment Insurance Act is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by striking ‘‘(i) such part of all contribu-
tions collected pursuant to section 8 of this Act as
is in excess of 0.65 per centum of the total com-
pensation on which such contributions are based,’’
and inserting ‘‘(i) all contributions collected pursu-
ant to section 8 of this Act’’; and
(3) by adding at the end the following:
‘‘(2) Notwithstanding any other provision of law,
there are authorized to be made available for expenditure
out of the railroad unemployment insurance account, the
Railroad Retirement Account, the Railroad Retirement
Supplemental Account, and the Social Security Equivalent
Benefit Account, such sums as the Congress may deem
appropriate to pay the costs of administration of this Act
and the Railroad Retirement Act. If at the beginning of
a fiscal year or at any time during a fiscal year there is
a lapse in appropriations to pay the costs of administra-
tion of this Act or the Railroad Retirement Act, the Board
is authorized to make expenditures out of the above men-
tioned accounts to pay the costs of such administration
at a level not exceeding the most recent current level until
the earlier of (A) enactment into law of an appropriation
Act or Resolution providing for the payment of such costs
or (B) enactment into law of an Act repealing this provi-
sion. During each fiscal year or after the close of such
fiscal year (or at both times), the Board shall analyze the
costs of administration of this Act and the Railroad Re-
tirement Act during the appropriate part or all of the fis-
cal year in order to determine the portion of such costs
which should be borne by each of the accounts and shall
certify to the Secretary of the Treasury the amount, if
any, which should be transferred among such accounts in
order to assure that each of the accounts bears its proper
share of the costs incurred during such fiscal year for ad-
ministration of this Act and the Railroad Retirement Act.
The Secretary of the Treasury is authorized and directed
to transfer any such amount (determined under the pre-
ceding sentence) among such accounts in accordance with
any certification so made. Determinations of the Board,
as to whether funds made available for administration of
this Act and the Railroad Retirement Act of 1974 are
properly chargeable with the authorized expenses, or parts
thereof, incurred in the administration of this Act or the
Railroad Retirement Act of 1974, shall be binding and
conclusive for all purposes and upon all persons, including
the Comptroller General and any other administrative or
accounting officer, employee, or agent of the United
States, and shall not be subject to review in any manner.’’.
(d) REPEAL OF DEFINITION.—Section 1(q) of the
Railroad Unemployment Insurance Act is repealed.
(e) REPEAL OF ADMINISTRATION FUND.—Section 11
of the Railroad Unemployment Insurance Act is repealed.
(f) CONFORMING AMENDMENTS.—
(1) Section 8(a)(1)(C)(v) of the Railroad Un-
employment Insurance Act is amended to read as
follows:
‘‘(v) STEP 5.—Add 0.65 to the per-
centage rate arrived at under clause (iv),
representing the portion of the employer’s
contribution which is to be deposited to the
credit of the account for administrative
purposes.’’.
(2) Section 8(a)(8)(B) of the Railroad Unem-
ployment Insurance Act is amended to read as
follows:
‘‘(B) STEP 2.—Subtract an amount equal
to 0.65 per centum of the contribution rate
which was deposited to the credit of the account
for administrative purposes.’’.
(3) Section 8(a)(10) of the Railroad Unemploy-
ment Insurance Act is amended—
(A) in subparagraph (C), by inserting ‘‘(i)’’
before ‘‘not chargeable’’ and by striking ‘‘to the
fund under section 11’’ and inserting ‘‘(ii) not
chargeable as an expense of administration,
other than expenditures from the Limitation on
Review or the Special Management Improve-
ment Fund’’;
(B) so that subparagraph (E) reads as fol-
lows:
‘‘(E) STEP 5.—Subtract an amount equal
to the amount by which that portion of the ac-
count attributable to the 0.65 per centum con-
tribution rate for administrative expenses as of
the end of the prior fiscal year exceeded
$6,000,000.’’;
(C) in subparagraph (F) by adding at the
end ‘‘, except that portion of employer contribu-
tions attributable to the 0.65 per centum con-
tribution for administrative expenses’’.
(4) Section 8(a)(12)(A) of the Railroad Unem-
ployment Insurance Act is amended by striking the
second sentence and inserting: ‘‘In determining such
balance as of June 30 of any year, that portion of
the balance, up to $6,000,000, as is attributable to
the 0.65 per centum contribution for administrative
expenses shall be disregarded if greater than zero.’’.
(5) Section 8(a)(14)(A) of the Railroad Unem-
ployment Insurance Act is amended by striking the
second sentence and inserting: ‘‘In determining such
balance as of June 30 of any year, that portion of
the balance, up to $6,000,000, as is attributable to
the 0.65 per centum contribution for administrative
expenses shall be disregarded if greater than zero.’’.
(6) Section 8(e) of the Railroad Unemployment
Insurance Act is amended by striking ‘‘fund’’ and
inserting ‘‘account and shall be treated in the same
manner as if the payment were a payment of con-
tributions for administrative expenses’’.
(7) Section 10(b) of the Railroad Unemploy-
ment Insurance Act is amended by inserting ‘‘ad-
ministrative costs,’’ after ‘‘the’’ and before ‘‘bene-
fits’’ in the first sentence.
(8) Section 10(d) of the Railroad Unemploy-
ment Insurance Act is amended by inserting ‘‘ad-
ministrative costs,’’ before ‘‘benefits’’ each place it
appears.
(9) Section 10(e) of the Railroad Unemploy-
ment Insurance Act is amended by striking ‘‘or the
railroad unemployment insurance administration
fund’’.
(10) Section 10(f) of the Railroad Unemploy-
ment Insurance Act is amended by inserting ‘‘and’’
before ‘‘the railroad unemployment insurance ac-
count’’ and by striking ‘‘and the railroad unemploy-
ment insurance administration fund,’’.
(11) Section 10(g) of the Railroad Unemploy-
ment Insurance Act is amended by striking ‘‘, and
out of the railroad unemployment insurance admin-
istration fund for the payment of’’ and inserting
‘‘and’’ and by striking ‘‘or such fund, as the case
may be,’’.
(12) Section 12(d) of the Railroad Unemploy-
ment Insurance Act is amended by striking ‘‘admin-
istration fund established pursuant to section 11(a)
of this Act’’ and inserting ‘‘account established pur-
suant to section 10 of this Act’’.
(13) Section 12(e) of the Railroad Unemploy-
ment Insurance Act is amended by striking ‘‘fund’’
in the last sentence and inserting ‘‘account’’.
(g) EFFECTIVE DATES.—
(1) Except as provided in paragraphs (2) and
(3), the amendments made by this section shall take
effect October 1, 1995.
(2) The amendments made by subsections (a)
and (c)(3) shall be effective with respect to fiscal
years beginning with fiscal year 1996.
(3) The amendments made by subsections (d)
and (e) shall take effect October 1, 1995, except
The Continuing Disability Review Account shall consist of
such amounts as may be transferred to it under this sub-
section. The balance in the Continuing Disability Review
Account shall be available without further appropriation
action for expenditures certified under paragraph (3).
‘‘(2)(A) Not later than September 1 of each calendar
year, the Board shall—
‘‘(i) estimate the present value of savings to the
Railroad Retirement Account and the Social Secu-
rity Equivalent Benefit Account which will accrue
for all years as a result of the cessation of annuity
payments during the fiscal year ending on Septem-
ber 30 of the prior calendar year based on continu-
ing disability reviews carried out pursuant to section
2(a)(3) during or prior to such fiscal year,
‘‘(ii) determine the portion of such estimate at-
tributable to each of the accounts described in clause
(i),
‘‘(iii) certify the amount of such estimate and
such portion to the Secretary of the Treasury, and
‘‘(iv) direct that an amount equal to the
amount determined by the Board under paragraph
(3) of this subsection, but not more than the savings
estimated under paragraph (2), be transferred to the
Continuing Disability Review Account from the ac-
counts described in clause (i) in such proportion as
the savings from each account bears to the total sav-
ings from both accounts.
‘‘(B) Upon receipt of the certification and direction
by the Secretary of the Treasury under subparagraph (A),
the Secretary shall transfer to the Continuing Disability
Review Account the amount so determined.
‘‘(3)(A) Not later than September 15 of each cal-
endar year, the Board shall—
‘‘(i) project the accrual balance of the Continu-
ing Disability Review Account as of the close of
business on September 30 of the calendar year;
‘‘(ii) estimate the total amount of expenditures
which will be necessary to carry out continuing dis-
ability reviews (earnings reviews and medical im-
provement reviews) under section 2(a)(3) of this Act
during the fiscal year beginning October 1;
‘‘(iii) subtract the amount projected under
clause (i) from the amount estimated under clause
(ii) so as to determine the amount of additional
funds, if any, needed to pay the costs of continuing
disability reviews for the fiscal year beginning Octo-
ber 1; and
‘‘(iv) certify the amount, if any, determined
under clause (iii) to the Secretary of the Treasury.
‘‘(B) The expenditures referred to in subparagraph
(A)(ii) shall include the cost of staffing, training, purchase
of medical and other evidence, and processing related con-
tinuing disability reviews and any appeals arising from
those reviews.
‘‘(C) To the extent of available funds in the Continu-
ing Disability Review Account, and prior to any action
thereon by the General Accounting Office, the Secretary
of the Treasury shall, upon the commencement of each
fiscal year, make available to the Board from the Continu-
ing Disability Review Account an amount equal to the
total of estimated expenditures for such fiscal year as de-
scribed in subparagraph (A).
‘‘(D) The Board shall use funds made available pur-
suant to this subsection for the purpose of carrying out
continuing disability reviews under section 2(a)(3). Noth-
ing contained in this subsection shall prohibit the Board
from using funds otherwise made available for administra-
tive expenses to conduct continuing disability reviews.’’.
TITLE IV—DEBT COLLECTION
AMENDMENTS
SEC. 401. DEBT COLLECTION.
(a) FROM OTHER PAYMENTS.—The last sentence of
section 10(a) of the Railroad Retirement Act of 1974, as
amended, is amended to read as follows: ‘‘Notwithstanding
section 207 of the Social Security Act, the Board shall
also have the authority to recover the amount of any over-
payment or erroneous payment of benefits made to an in-
dividual under this Act, the Railroad Unemployment In-
surance Act, or pursuant to section 7(b)(2) of this Act,
from any payment to such individual, or to any other per-
son on the basis of the same wages and self-employment
income, under section 7(b)(2) of this Act.’’.
(b) ADMINISTRATIVE OFFSET.—Section 10 of the
Railroad Retirement Act of 1974 is amended by adding
at the end thereof a new subsection (e) to read as follows:
‘‘(e) In addition to the authority otherwise granted
by this section to recover erroneous payments and over-
payments of benefits under this Act, the Board shall have
the authority to recover such erroneous payments and
overpayments by means of administrative offset pursuant
to section 3716 of title 31, United States Code.’’.
(c) RAILROAD UNEMPLOYMENT.—Section 2(d) of the
Railroad Unemployment Insurance Act is amended—
(1) by inserting after ‘‘entitled under this Act’’
and before ‘‘or any other Act’’ in the first sentence
thereof the following: ‘‘, or in subsequent payments
made to the individual, or any person on the basis
of the same compensation, wages, or self-employ-
ment income, under the Railroad Retirement Act
(including payments under section 7(b)(2) thereof,
notwithstanding section 207 of the Social Security
Act).’’; and
(2) by adding at the end thereof the following:
‘‘In addition to the authority otherwise granted by this
subsection to recover erroneous payments and overpay-
ments of benefits under this Act, the Board shall have the
authority to recover such erroneous payments and over-
payments by means of administrative offset pursuant to
section 3716 of title 31, United States Code.’’.
TITLE V—PENALTY
AMENDMENTS
SEC. 501. CRIMINAL PENALTIES.
(a) RAILROAD RETIREMENT.—Section 13(a) of the
Railroad Retirement Act of 1974 is amended by striking
‘‘one year’’ and inserting ‘‘five years’’.
(b) RAILROAD UNEMPLOYMENT.—Section 9(a) of the
Railroad Unemployment Insurance Act is amended by
striking ‘‘one year’’ and inserting ‘‘five years’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to acts or omissions
after the date of enactment of this Act.
SEC. 502. PROGRAM FRAUD CIVIL REMEDIES ACT FINDS
AND PENALTIES.
Section 3806(g)(2) of title 31, United States Code,
is amended by adding at the end the following:
‘‘(F) Any amount of a penalty or assess-
ment imposed by the Railroad Retirement
Board under this chapter with respect to a
claim or statement made in connection with
benefits under the Railroad Retirement Act
shall be deposited in the Railroad Retirement
Account.
‘‘(G) Any amount of a penalty or assess-
ment imposed by the Railroad Retirement
Board under this chapter with respect to a
claim or statement made in connection with
benefits under the Railroad Unemployment In-
surance Act shall be deposited in the Railroad
Unemployment Insurance Account.’’.
Æ
HR 2233 IH——2