‘‘(i) to the Secretary of the Treasury the
amounts required to be transferred from the Social
Security Equivalent Benefit Account and the the
Dual Benefits Payments Account to the disbursing
agent to make payments of benefits and the Sec-
retary of the Treasury shall transfer those amounts;
‘‘(ii) to the Board of Trustees of the Railroad
Retirement Investment Trust the amounts required
to be transferred from the Railroad Retirement In-
vestment Trust to the disbursing agent to make pay-
ments 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 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 Railroad Retirement Trust Fund or the So-
cial Security Equivalent Benefit Account, 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 subsections (a) and (c),
the Board shall consult with the Secretary of the Treasury
to design an appropriate method to transfer obligations
held as of the date of the enactment or to convert such
obligations to cash prior to transfer. The Railroad Retire-
ment Trust may hold to maturity any obligations so re-
ceived 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 is amended—
(1) by adding the following sentence after the
first sentence: ‘‘On or before May 1 of each year be-
ginning in 2002, the Railroad Retirement Board
shall compute its projection of the account benefits
ratio and the average account benefits ratio (as de-
fined by section 3241(c) of the Internal Revenue
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 is amended by adding at the end the following:
‘‘COMPUTATION AND CERTIFICATION OF ACCOUNT
BENEFIT RATIOS
‘‘SEC. 23. (a) On or before November 1, 2002, 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.
‘‘(b) On or before November 1 of each year after
2002, 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.
‘‘(c) DEFINITION.—As used in this section, the term
‘account benefit 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 RAILROAD RETIRE-
MENT INVESTMENT TRUST.
Subsection (c) of section 501 is amended by adding
at the end the following new paragraph:
‘‘(28) The Railroad Retirement Investment
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).
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to calendar years beginning after
December 31, 2000.
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 2001,
‘‘(B) 14.2 percent in the case of compensa-
tion paid during 2002, and
‘‘(C) in the case of compensation paid dur-
ing any calendar year after 2002, the percent-
age determined under section 3241 for such cal-
endar year.’’.