Railroad Retirement Solvency Act of 1983
PL 98-76 (H.R.1646), enacted 08/12/1983

PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 411 
Public Law 98-76 
98th Congress 
An Act 
To amend the Railroad Retirement Act of 1974 and the Railroad Retirement Tax Act 
to assure sufficient resources to pay current and future benefits under the Railroad 
Retirement Act of 1974, to make technical changes, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Railroad Retirement Solvency Act of 1983". 
TITLE I—BENEFIT ADJUSTMENTS 
Aug. 12, 1983 
[H.R. 1646] 
Railroad 
Retirement 
Solvency Act of 
1983. 
45 u s e 231t 
note. 
45 u s e 231b. 
SEC. 101. (a) Section 3(a) of the Railroad Retirement Act of 1974 is 
amended— 
(1) by amending subdivision (2) to read as follows: 
"(2) For purposes of this subsection, individuals entitled to an 
annuity under paragraph (iv) or (v) of section 2(aXl) of this Act shall 45 use 23la. 
be deemed to be entitled to a disability insurance benefit under 
section 223 of the Social Security Act."; and 
42 use 423. 
(2) by adding at the end thereof the following new subdivision: 
"(3) In lieu of an annuity amount provided under subdivision (1), 
the annuity of an individual entitled to an annuity under paragraph 
(ii) of section 2(a)(1) of this Act which begins to accrue before the 
individual attains age 62 shall be in an amount equal to— 
"(i) for each month prior to the first month throughout which 
the individual is age 62, the amount (after any reduction on 
account of age but before any deductions on account of work) of 
the old-age insurance benefit to which such individual would 
have been entitled under the Social Security Act as of the date 42 use 1305. 
on which such individual's annuity begins to accrue if such 
individual had attained age 62 on the first day of the month in 
which his or her annuity begins to accrue and if all of such 
individual's service as an employee after December 31, 1936, 
had been included in the term 'employment' as defined in that 
Act, using for purposes of this computation the number of 
benefit computation years applicable to a person born in the 
year in which such individual was born; and ". 
"(ii) for months beginning with the first month throughout 
which the individual is age 62, the amount (after any reduction 
on account of age but before any deductions on account of work) 
of the old-age insurance benefit to which such individual would 
have been entitled under the Social Security Act if all of such 
individual's service as an employee after December 31, 1936, 
had been included in the term 'employment' as defined in that 
Act.", 
(b) Section 4(a) of the Railroad Retirement Act of 1974 is 45USe23lc. 
amended— 
(1) by striking out "spouses" in subdivision (2) and inserting in 
lieu thereof "if an individual is entitled to an annuity under 
paragraph (ii) of section 2(aXl) of this Act which did not begin to 45 USC 23la. 
97 STAT. 412 
PUBLIC LAW 98-76—AUG. 12, 1983 
accrue before such individual attained age 62, the spouse of such 
individual"; and 
(2) by adding at the end thereof the following new 
subdivisions: 
"(3) In the case of an individual entitled to an annuity under 
45 use 231a. 
section 2(aXl)(ii) of this Act which began to accrue before such 
individual attained age 62, the annuity of the spouse of such individ-
ual under section 2(c) of this Act shall, in lieu of an annuity amount 
provided under subdivision (1), be in an amount equal to— 
"(i) for each month prior to the first month throughout which 
both the individual and the spouse are age 62, 50 per centum of 
that portion of the individual's annuity as is, or was prior to 
such individual's attaining age 62, computed under section 
Ante, p. 411. 
3(a)(3)(i) of this Act, reduced to the same extent such amount 
would be reduced under section 202(b)(4) of the Social Security 
42 use 402. 
Act (in the case of a wife) or under section 202(c)(2) of the Social 
Security Act (in the case of a husband) as if such amount were a 
wife's insurance benefit or a husband's insurance benefit, 
respectively, under such Act; and 
"(ii) for months beginning with the first month throughout 
which both the individual and the spouse are age 62, the 
amount (after any reduction on account of age based on the 
spouse's age at the time the amount under this paragraph first 
becomes payable but before any deductions on account of work) 
of the wife's insurance benefit or the husband's insurance bene-
fit to which such spouse would have been entitled under the 
42 use 1305. 
Social Security Act if the individual's service as an employee 
after December 31,1936, had been included in the term 'employ-
ment' as defined in that Act. 
"(4) In the case of an individual entitled to an annuity under 
45 use 231a. 
paragraph (iv) or (v) of section 2(a)(1) of this Act, the annuity of the 
spouse of such individual entitled to an annuity under section 
2(cXl)(ii)(B) of this Act shall, in lieu of an annuity amount provided 
under subdivision (1), be in an amount equal to the amount (after 
any reduction on account of age but before any deductions on 
account of work) of the wife's insurance benefit or the husband's 
insurance benefit to which such spouse would have been entitled 
under the Social Security Act if the individual's service as an 
employee after December 31, 1936, had been included in the term 
'employment' as defined in that Act. For purposes of this subdivi-
sion, spouses who have not attained age 62 shall be deemed to have 
attained age 62.". 
Effective date. 
(c) The amendments made by this section shall become effective 
"
^
^ use 231b 
Qjj July i^ 1984, and shall apply only with respect to awards in cases 
"° 
where the individual's annuity under section 2(a)(1) of the Railroad 
45 use 231a. 
Retirement Act of 1974 began to accrue on or after that date and the 
individual had not completed thirty years of service and attained 
age 60 prior to that date. In the case of an individual who has 
completed thirty years of service and has attained age 60 before 
January 1, 1986, the amount of the reduction on account of age in 
the annuity amount provided to such individual under section 3(a)(3) 
Ante, p. 411. 
of the Railroad Retirement Act of 1974 and the amount of the 
reduction on account of age in the annuity amount provided to the 
spouse of such individual under subdivision (3) of section 4(a) of the 
Supra. 
Railroad Retirement Act of 1974 shall be only one-half of the 
amount by which such annuity would be reduced on account of age 
except for the provisions of this sentence. 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 413 
SEC. 102. (a) Section 3(g) of the Railroad Retirement Act of 1974 is 45 USC 23lb. 
amended to read as follows: 
"(g)(1) Effective with the date of any increase after January 31, 
1984, in monthly insurance benefits under the Social Security Act 42 USC 1305. 
which occurs, or which would have occurred had there not been a 
general benefit increase under that Act, pursuant to the automatic 
cost-of-living provisions of section 215(i) of that Act, that portion of 42 USC 415. 
the annuity of an individual which is computed under subsection (b) 
of this section shall, if such individual's annuity under section 2(a)(1) 
of this Act began to accrue on or before the effective date of a 45 USC 23 
la. 
particular increase under this subdivision, be increased by 32.5 per 
centum of the percentage increase in the index which is used, or 
which would have been used had there not been a general benefit 
increase under the Social Security Act, in increasing benefits under 
the Social Security Act pursuant to the automatic cost-of-living 
provisions of section 215(i) of that Act. Any increase under this 
subsection shall not be deferred and shall be reflected in all pay-
ments made to annuitants after such increase under this subsection 
becomes effective. 
"(2) The first and, if necessary, the following time or times after 
January 1, 1983, that monthly insurance benefits under section 202 
of the Social Security Act are increased, that portion of the annuity 42 USC 402. 
of an individual which is computed under subsection (b) of this 
section as increased under subdivision (1) of this subsection shall, if 
such individual's annuity under section 2(a)(1) of this Act began to 
accrue in or before the year in which such first increase under the 
Social Security Act became effective, be reduced by the dollar 
amount by which that portion of the annuity provided such individ-
ual under subsection (a) of this section was increased, after any 
reduction under subsection (m) of this section, as a result of such 
increase or increases under the Social Security Act until the total 
dollar amount of such reduction or reductions equals 5 per centum 
of the annuity amount provided such individual under subsection 
(a), as reduced under subsection (m), prior to such first increase. In 
no case shall the reduction by reason of this paragraph operate to 
reduce such portion to an amount less than $10.". 
(b) Section 4(d) of the Railroad Retirement Act of 1974 is 45 USC 231c. 
amended— 
(1) by inserting "(1)" after "(d)": 
(2) by striking out "3(g)" and inserting "3(g)(1)" in lieu 
thereof; and 
(3) by adding at the end thereof the following new subdivi-
sions: 
"(2) That portion of the annuity of the spouse of an individual as is 
determined under subsection (b) of this section prior to any determi-
nation under subsection (c) of this subsection shall, if the annuity of 
such spouse is not subject to reduction under subdivision (3) of this 
subsection, be reduced by an amount equal to 50 per centum of the 
dollar amount by which the annuity of the individual was reduced 
under section 3(g)(2) of this Act. In no case shall the reduction by Supra. 
reason of this paragraph operate to reduce such portion to an 
amount less than $10. 
"(3) The first and, if necessary, the following time or times after 
January 1, 1983, that monthly insurance benefits under section 202 
of the Social Security Act are increased, that portion of the annuity 42 USC 402. 
of the spouse of an individual as is determined under subsections (b), 
(c), and (d)(1) of this section shall, if such spouse's annuity under 
97 STAT. 414 
PUBLIC LAW 98-76—AUG. 12, 1983 
45 use 231a. 
section 2(c) of this Act began to accrue in or before the year in which 
42 use 1305. 
such first increase under the Social Security Act became effective, 
be reduced by the dollar amount by which that portion of the 
annuity provided such spouse under subsection (a) of this section 
was increased, after any reduction under subsection (i) of this 
section, as a result of such increase or increases under the Social 
Security Act until the total dollar amount of such reduction or 
reductions equals 5 per centum of the annuity amount provided 
such spouse under subsection (a), as reduced under subsection (i), 
prior to such first increase. In no case shall the reduction by reason 
of this paragraph operate to reduce such portion to an amount less 
than $10.". 
45 use 231c. 
(c) Section 4(g) of the Railroad Retirement Act of 1974 is 
amended— 
(1) in subdivision (1), by inserting "and without regard to any 
Ante, p. 413. 
reduction under section 3(g)(2) of this Act" after "before any 
reduction on account of age"; 
(2) in subdivision (6), by striking out "3(g)" and inserting 
"3(g)(1)" in lieu thereof; and 
(3) by adding at the end the following new subdivisions: 
"(7) The first and, if necessary, the following time or times after 
January 1, 1983, that monthly insurance benefits under section 202 
42 use 402. 
of the Social Security Act are increased, that portion of the annuity 
of a survivor of a deceased individual as is determined under 
subdivisions (1) and (2) of this subsection, or under section 4(g) of this 
Act as in effect before amendment by section 1119(g) of Public Law 
45 use 231c. 
97-35, shall, if such survivor's annuity under section 2(d) of this Act 
began to accrue before the effective date of such first increase under 
the Social Security Act, be reduced by the dollar amount by which 
that portion of the annuity provided such survivor under subsection 
(f) of this section was increased, after any reduction under subsec-
tion (i) of this section, as a result of such increase or increases under 
the Social Security Act until the total dollar amount of such reduc-
tion or reductions equals 5 per centum of the annuity amount 
provided such survivor under subsection (f), as reduced under sub-
section (i), prior to such first increase. In no case shall the reduction 
by reason of this paragraph operate to reduce such portion to an 
amount less than $10. 
"(8) That portion of the annuity of a survivor of a deceased 
individual as is determined under subdivisions (1) and (2) of this 
subsection shall, if the annuity of such survivor is not subject to 
reduction under subdivision (7) of this subsection, be reduced by an 
amount equal to the dollar amount by which the annuity of the 
deceased individual was reduced under section 3(g)(2) of this Act or 
would have been reduced under such section 3(g)(2) if such deceased 
individual had been living at the time such survivor's annuity under 
section 2(d) of this Act began to accrue (deeming for this purpose, if 
such individual died before becoming entitled to an annuity under 
section 2(a)(1) of this Act, that such individual became entitled to an 
annuity under paragraph (i) of such section 2(a)(1) in the month in 
which such individual died). In a case where the survivor of a 
deceased individual is not entitled to a monthly insurance benefit 
under the Social Security Act, the reduction provided by the preced-
ing sentence of this subdivision shall be equal to the dollar amount 
by which the annuity of the deceased individual would have been 
reduced under section 3(g)(2) of this Act if the annuity of such 
deceased individual had not been subject to reduction under section 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 415 
3(m) of this Act. In no case shall the reduction by reason of this 45 USC 23lb. 
paragraph operate to reduce such portion to an amount less than 
$10. 
"(9) That portion of the annuity of a survivor of a deceased 
individual as is determined under section 4(g) of this Act as in effect 
before amendment by section 1119(g) of Public Law 97-35 shall, if 45 use 23ic. 
the annuity of such survivor is not subject to reduction under 
subdivision (7) of this subsection, be reduced by an amount equal to 
the dollar amount by which the annuity of the deceased individual 
was reduced under section 3(g)(2) of this Act or, if such survivor is Ante, p. 413. 
not entitled to a monthly insurance benefit under the Social Secu-
rity Act, would have been reduced under such section 3(g)(2) if the 42 use 1305. 
annuity of such deceased individual had not been subject to reduc-
tion under section 3(m) of this Act. In no case shall the reduction by 
reason of this paragraph operate to reduce such portion to an 
amount less than $10.". 
(d) The amendments made by this section shall be effective on the Effective date. 
date of the enactment of this Act. For purposes of the amendments 45 use 23 lb 
made by subsection (a) of this section, annuity portions computed 
"°*^' 
under subsections (b) and (d) of section 3 of the Railroad Retirement 
Act of 1974 as in effect before October 1, 1981, shall be treated as 45 use 23ib. 
having been computed under subsection (b) of such section as in 
SEC. 103. (a) Section 5(a) of the Railroad Retirement Act of 1974 is 45 use 23id. 
amended— 
(1) by striking out "An annuity" at the beginning and insert-
ing in lieu thereof "Subject to the limitations set forth below, an 
annuity"; 
(2) by amending paragraphs (ii) and (iii) to read as follows: 
"(ii) in the case of an applicant otherwise entitled to an 
annuity under paragraph (iv) or (v) of section 2(a)(1) or under 45 use 23la. 
section 2(d)(l)(i) on the basis of disability, not earlier than the 
later of (A) the first day of the sixth month following the onset 
date of the disability for which such annuity is awarded or (B) 
the first day of the twelfth month before the month in which 
the application therefor was filed; 
"(iii) in the case of an applicant otherwise entitled to an 
annuity under section 2(a)(1), 2(c), or 2(d) where paragraph (ii) 
does not apply, not earlier than the latest of (A) the first day of 
the sixth month before the month in which the application 
therefor was filed, (B) the first day of the month in which the 
application therefor was filed if the effect of beginning such 
annuity in an earlier month would result in a greater age 
reduction in the annuity, unless beginning the annuity in the 
earlier month would enable an annuity under section 2(c) which 
is not subject to an age reduction to be payable in such earlier 
month, (C) in the case of an applicant otherwise entitled to an 
annuity under section 2(a)(1) or 2(c), the date following the last 
day of compensated service of the applicant, or (D) in the case of 
an applicant otherwise entitled to an annuity under section 
2(a)(1) or 2(c), the first day of the first month throughout which 
the applicant meets the age requirement for the annuity ap-
plied for;" and 
(3) by adding at the end thereof the following new sentence: 
"For the purpose of determining annuity amounts provided 
under sections 3(a), 4(a), and 4(f) of this Act, the provisions with Ante, p. 411. 
respect to the beginning dates of annuities set forth in this 
97 STAT. 416 
PUBLIC LAW 98-76—AUG. 12, 1983 
42 u s e 1305. 
Effective date. 
45 u s e 231d 
note. 
45 u s e 231a. 
42 u s e 402. 
45 u s e 231d. 
Effective date. 
45 u s e 231a 
note. 
45 u s e 231a. 
45 u s e 231u. 
Five-year 
projection of 
anticipated 
revenues. 
Report 
submittal. 
subsection shall be deemed to govern the beginning dates of 
monthly benefits provided under the Social Security Act.". 
(b) The amendments made by this section shall become effective 
on the first day of the first month beginning after the date of the 
enactment of this Act, and shall apply only with respect to annuities 
awarded on the basis of applications filed on or after that day. 
SEC. 104. (a) Clause (B) of section 2(d)(l)(iii) of the Railroad Retire-
ment Act of 1974 is amended to read as follows: "(B) will be less than 
nineteen years of age and a full-time elementary or secondary school 
student, or". 
(b) Section 2(dX4) of the Railroad Retirement Act of 1974 is 
amended— 
(1) by striking out "full-time student" each place it appears 
and inserting in lieu thereof "full-time elementary or secondary 
school student"; 
(2) by striking out "educational institution" each place it 
appears and inserting in lieu thereof "elementary or secondary 
school"; 
(3) by striking out "twenty-two" in the fourth sentence and 
inserting in lieu thereof "nineteen"; and 
(4) by striking out "degree from a four-year college or univer-
sity" and inserting in lieu thereof "diploma or equivalent certif-
icate from a secondary school (as defined in section 202(d)(7)(c)(i) 
of the Social Security Act)". 
(c) Section 5(c)(7) of the Railroad Retirement Act of 1974 is 
amended— 
(1) by striking out "full-time student" and inserting in lieu 
thereof "full-time elementary or secondary school student"; and 
(2) by striking out "22" and inserting in lieu thereof "19". 
(d) The amendments made by this section shall be effective with 
respect to annuities accruing for months after the month in which 
this Act is enacted except in the case of a child who has attained the 
age of eighteen in or before the month in which this Act is enacted 
and is entitled to an annuity under section 2(d) of the Railroad 
Retirement Act of 1974 for the month in which this Act is enacted 
or, if earlier, for the month of April 1983. 
SEC. 105. Section 22 of the Railroad Retirement Act of 1974 is 
amended by striking out "(a)" and all that follows through the end 
of subsection (a) of such section and inserting in lieu thereof the 
following: "(a)(1) On or before February 1 of each year beginning in 
1984, the Railroad Retirement Board shall prepare a five-year pro-
jection of anticipated revenues to and payments from the Railroad 
Retirement Account to determine the ability of such Account to pay 
benefits in each of the next succeeding five calendar years. No later 
than April 1 of each year, the Board shall submit a written report to 
the President, the Speaker of the House, and the President of the 
Senate setting forth the results of the projection prepared pursuant 
to the preceding sentence. If the projection indicates that the funds 
in the Railroad Retirement Account will be insufficient to pay the 
full amount of the benefits under this Act which are payable from 
that Account at any time during the five-year period, the Board's 
report shall include— 
"(A) the first fiscal year during which benefits under this Act 
must be reduced, in the absence of any adjustments, because 
insufficient funds (including any general revenue borrowing 
authority under this Act) would preclude payment of full bene-
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 417 
fits (other than benfits payable from the Dual Benefits Pay-
ments Account) for every month in such fiscal year; 
"(B) the first fiscal year during which the Board would recom-
mend suspension of the authority to borrow contained in section 
10(d) of the Railroad Unemployment Insurance Act, in order to 45 USC 360. 
prevent depletion of the Railroad Retirement Account; and 
"(C) the amount, if any, of adjustments (stated in terms of 
percentage of taxable payroll), and any other changes such as 
cash flow adjustments, necessary to preserve the financial sol-
vency of the Railroad Retirement Account, if such adjustments 
were effective at the beginning of the next succeeding fiscal 
year. 
"(2) Not less than 20 nor more than 30 days after the submission Publication in 
of a written report under this subsection which indicates that, in the federal 
absence of any adjustments, the Railroad Retirement Account will ^^s^^*®'"-
contain insufficient funds to pay the full amount of the benefits 
under this Act which are payable from that Account at some time 
during the five-year period covered by the report, the Board shall 
publish such report in the Federal Register.". 
SEC. 106. (a) Section 2(a)(1) of the Railroad Retirement Act of 1974 45 USC 23ia. 
is amended— 
(1) by striking out "the age of sixty-five" from paragraph (i) 
and inserting in lieu thereof "retirement age (£is defined in 
section 216(1) of the Social Security Act)"; and 
Ante, p. 107. 
(2) by striking out "reduced by 1/180 for each calendar month 
that he or she is under age sixty-five when the annuity begins to 
accrue" from paragraph (iii) and inserting in lieu thereof 
"reduced by 1/180 for each of the first 36 months that he or she 
is under retirement age (as defined in section 216(1) of the Social 
Security Act) when the annuity begins to accrue and by 1/240 
for each additional month that he or she is under retirement 
age (as defined in section 216(1) of the Social Security Act) when 
the annuity begins to accrue". 
(b) Section 2(a)(3) of the Railroad Retirement Act of 1974 is 45USC23la. 
amended by striking out "the age of 65" and "the age of sixty-five 
years" and inserting in lieu thereof in each instance "retirement 
age (as defined in section 216(1) of the Social Security Act)". 
(c) Section 2(c)(1) of the Railroad Retirement Act of 1974 is 
amended by striking out "the age of 65" from paragraph (ii) and 
inserting in lieu thereof "retirement age (as defined in section 216(1) 
of the Social Security Act)". 
(d) Section 2(c)(2) of the Railroad Retirement Act of 1974 is 
amended— 
(1) by striking out "the age of 65" and inserting in lieu thereof 
"retirement age (as defined in section 216(1) of the Social Secu-
rity Act)"; and 
(2) by striking out "reduced by 1/144 for each calendar month 
that the spouse or divorced wife is under age 65 when the 
annuity begins to accrue" and inserting in lieu thereof "reduced 
by 1/144 for each of the first 36 months that the spouse or 
divorced wife is under retirement age (as defined in section 
216(1) of the Social Security Act) when the annuity begins to 
accrue and by 1/240 for each additional month that the spouse 
or divorced wife is under retirement age (as defined in section 
216(1) of the Social Security Act) when the annuity begins to 
accrue". 
1 1 - 1 9 4 O - 85 — 15 : QL 3 
97 STAT. 418 
PUBLIC LAW 98-76—AUG. 12, 1983 
Ante, p. 411. 
45 u s e 231d. 
45 use 231a. 
(e) Section 2(c)(4) of the Railroad Retirement Act of 1974 is 
amended by striking out "the age of 65" and inserting in lieu thereof 
Ante, p. 107. 
"retirement age (as defined in section 216(1) of the Social Security 
Act". 
(f) Section 2(e)(2) of the Railroad Retirement Act of 1974 is 
amended by striking out "age sixty-five" and inserting in lieu 
thereof "retirement age (as defined in section 216(1) of the Social 
Security Act)". 
(g) Section 2(e)(4) of the Railroad Retirement Act of 1974 is 
amended by striking out "age sixty-five" and "age of sixty-five" and 
inserting in lieu thereof in each instance "retirement age (as defined 
in section 216(1) of the Social Security Act)". 
(h) Section 4(a)(2) of the Railroad Retirement Act of 1974 (as 
amended by section 101(b) of this Act) is amended by striking out 
"age 65" and inserting in lieu thereof "retirement age (as defined in 
section 216(1) of the Social Security Act". 
(i) Section 5(b) of the Railroad Retirement Act of 1974 is amended 
by striking out "the age of 65" and "age 65" and inserting in lieu 
thereof in each instance "retirement age (as defined in section 216(1) 
of the Social Security Act)". 
(j) Section 5(c)(2) of the Railroad Retirement Act of 1974 is 
amended by striking out "age 65" and inserting in lieu thereof 
"retirement age (as defined in section 216(1) of the Social Security 
Act)". 
(k) The amendments made by this section shall be effective on the 
date of the enactment of this Act, except that such amendment shall 
not apply to annuity amounts provided under sections 3(b) and 4(b) 
of the Railroad Retirement Act of 1974 or to increases in such 
annuity amounts provided under sections 3(g) and 4(d) of such Act if 
the individual upon whose earning record such annuity amounts are 
based rendered service as an employee to an employer, or as an 
employee representative, before the date of the enactment of this 
Act. 
SEC. 107. (a) Section 3(i) of the Railroad Retirement Act of 1974 is 
amended by adding at the end thereof the following new subdivision: 
"(4) Where for any calendar year after 1984 an individual has 
performed service for compensation in less than twelve months of 
the calendar year but has received compensation in excess of an 
amount determined by multiplying the number of months in the 
year in which such individual performed service for compensation 
by an amount equal to one-twelfth of the current maximum annual 
taxable 'wages' as defined in section 3121 of the Internal Revenue 
26 use 3121. 
Code of 1954, the individual shall be deemed to have rendered 
service for compensation in that number of months in the calendar 
year, but not to exceed twelve, which is equal to the quotient of the 
amount of such individual's compensation for the calendar year 
divided by an amount equal to one-twelfth of the current maximum 
annual taxable 'wages' as defined in section 3121 of the Internal 
Revenue Code of 1954, with any remainder produced by this compu-
tation increasing the quotient by one, but an individual shall not be 
deemed under this subdivision to have rendered service for compen-
sation in any month in which such individual was neither in an 
employment relation to one or more employers nor an employee 
representative.''. 
45 use 231b. 
(b) Section 3(j) of the Railroad Retirement Act of 1974 is amended 
by inserting after the second sentence thereof the following new 
sentence: "If for any calendar year after 1984 an employee has 
Effective date. 
45 u s e 231a 
note. 
45 u s e 231b, 
231c. 
Ante, p. 413. 
45 u s e 231b. 
eompensation. 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 419 
received compensation of less than one-twelfth of the current maxi-
mum annual taxable 'wages' as defined in section 3121 of the 
Internal Revenue Code of 1954 in one or more months of the 
calendar year, the total compensation paid such employee in the 
calendar year (without regard to the limitation on the amount of 
compensation provided in the preceding sentence) shall be deemed 
to have been paid in equal proportions with respect to all months in 
the year in which the employee will have been in the service of one 
or more employers for compensation or will have performed service 
for compensation as an employee representative, but this sentence 
shall not operate to increase the employee's compensation for any 
month above an amount equal to one-twelfth of the current maxi-
mum annual taxable 'wages' as defined in section 3121 of the 
Internal Revenue Code of 1954.". 
(c) The amendments made by this section shall become effective 
on January 1,1985. 
TITLE II—REVENUE PROVISIONS 
SEC. 201. SHORT TITLE. 
This title may be cited as the 
of 1983". 
26 u s e 312L. 
Effective date. 
45 u s e 231b 
note. 
Railroad 
Retirement 
Revenue Act of 
1983. 
'Railroad Retirement Revenue Act 26 use l note. 
Subtitle A—Railroad Retirement Taxes 
PART I—INCREASE IN TIER 2 TAXES FOR 
PERIOD BEGINNING JANUARY 1, 1984, AND 
ENDING DECEMBER 31,1984 
SEC. 211. INCREASE IN TIER 2 TAXES. 
(a) EMPLOYEE TAX.—Subsection (a) of section 3201 of the Internal 
Revenue Code of 1954 (relating to tax on employees) is amended by Post, p. 420. 
striking out "2.0 percent" and inserting in lieu thereof "2.75 
percent". 
(b) EMPLOYER TAX.—Subsection (a) of section 3221 of such Code Post, p. 420. 
(relating to tax on employers) is amended by striking out "11.75 
percent" and inserting in lieu thereof "12.75 percent". 
(c) EMPLOYEE REPRESENTATIVE TAX.—Subsection (a) of section 3211 
of such Code (relating to tax on employee representatives) is Post, p. 421. 
amended by striking out "11.75 percent" and inserting in lieu 
thereof "12.75 percent". 
(d) TECHNICAL AMENDMENT.—The last sentence of section 230(c) of 
the Social Security Act is amended by striking out "11.75 percent" 42 use 430. 
and inserting in lieu thereof "12.75 percent". 
SEC. 212. EFFECTIVE DATE. 
The amendments made by this part shall apply to compensation 26 use 3201 
paid for services rendered after December 31, 1983, and before note. 
January 1,1985. 
97 STAT. 420 
PUBLIC LAW 98-76—AUG. 12, 1983 
PART II—OTHER CHANGES AFFECTING TIER 2 
TAXES 
SEC. 221. INCREASES IN TIER 2 EMPLOYEE TAX; ANNUALIZATION OF TAX 
BASE. 
26 use 3201. 
Section 3201 of the Internal Revenue Code of 1954 (relating to rate 
of tax on employees) is amended to read as follows: 
"SEC. 3201. RATE OF TAX. 
"(a) TIER 1 TAX.—In addition to other taxes, there is hereby 
imposed on the income of each employee a tax equal to the following 
percentage of the compensation received during any calendar year 
by such employee for services rendered by such employee: 
"In the case of compensation 
received during: 
The rate shall be: 
1985 
7.05 
1986 or 1987 
7.15 
1988 or 1989 
7.51 
1990 or thereafter 
7.65. 
"(b) TIER 2 TAX.—In addition to other taxes, there is hereby 
imposed on the income of each employee a tax equal to the following 
percentage of the compensation received during any calendar year 
by such employee for services rendered by such employee: 
"In the case of compensation 
received during: 
The rate shall be: 
1985 
3.50 
1986 or thereafter 
4.25. 
"(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)." 
SEC. 222. INCREASES IN TIER 2 EMPLOYER TAX; ANNUALIZATION OF TAX 
BASE. 
(a) IN GENERAL.—Subsections (a) and (b) of section 3221 of the 
26 use 3221. 
Internal Revenue Code of 1954 (relating to rate of tax on employers) 
are amended to read as follows: 
"(a) TIER 1 TAX.—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 following percentage of 
compensation paid during any calendar year by such employer for 
services rendered to such employer: 
"In the case of compensation 
paid during: 
The rate shall be: 
1985 
7.05 
1986 or 1987 
7.15 
1988 or 1989 
7.51 
1990 or thereafter 
7.65. 
"(b) TIER 2 TAX.—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 following percentage of 
compensation paid during any calendar year by such employer for 
services rendered to such employer: 
"In the case of compensation 
paid during: 
The rate shall be: 
1985 
13.75 
1986 or thereafter 
14.75". 
(b) CROSS REFERENCE.—Section 3221 of such Code is amended by 
adding at the end thereof the following new subsection: 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 421 
"(e) CROSS REFERENCE.— 
"For application of different contribution bases with respect to the 
taxes imposed by subsections (a) and (b), see section 3231(e)(2)." 
SEC. 223. INCREASES IN TIER 2 EMPLOYEE REPRESENTATIVE TAX; 
ANNUALIZATION OF TAX BASE. 
Subsection (a) of section 3211 of the Internal Revenue Code of 1954 26 use 3211. 
(relating to tax on employee representatives) is amended to read as 
follows: 
"(a) IMPOSITION OF TAXES.— 
"(1) TIER i TAX.—In addition to other taxes, there is hereby 
imposed on the income of each employee representative a tax 
equal to the following percentage of the compensation received 
during any calendar year by such employee representative for 
services rendered by such employee representative: 
"In the case of compensation 
received during: 
The rate shall be: 
1985 
14.10 
1986 
or 
1987 
14.30 
1988 
or 
1989 
15.02 
1990 
or 
thereafter 
15.30. 
"(2) TIER 2 TAX.—In addition to other taxes, there is hereby 
imposed on the income of each employee representative a tax 
equal to the following percentage of the compensation received 
during any calendar year by such employee representatives for 
services rendered by such employee representative: 
"In the case of compensation 
received during: 
The rate shall be: 
1985 
13.75 
1986 or thereafter 
14.75. 
"(3) CROSS REFERENCE.— 
"For application of different contribution bases with respect to the 
taxes imposed by paragraphs (1) and (2), see section 3231(e)(2)." 
SEC. 224. TAXATION OF RAILROAD RETIREMENT BENEFITS OTHER THAN 
TIER 1 BENEFITS. 
(a) PENSION BENEFITS (OTHER THAN TIER 1 BENEFITS) TAXED AS 
BENEFITS RECEIVED UNDER EMPLOYER PLANS.—Section 72 of the 
Internal Revenue Code of 1954 (relating to annuities; certain pro- 96 Stat. 546. 
ceeds of endowment and life insurance contracts) is amended by 26 USC 72. 
redesignating subsection (r) as subsection (s) and by inserting after 
subsection (q) the following new subsection: 
"(r) 
CERTAIN RAILROAD RETIREMENT BENEFITS TREATED AS 
RECEIVED UNDER EMPLOYER PLANS.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
law, any benefit provided under the Railroad Retirement Act of 
1974 (other than a tier 1 railroad retirement benefit) shall be 45 USC 23lt. 
treated for purposes of this title as a benefit provided under an 
employer plan which meets the requirements of section 401(a). 45 USC 352. 
(2) TIER 2 TAXES TREATED AS CONTRIBUTIONS.— 
"(A) IN GENERAL.—For purposes of paragraph (1)— 
"(i) the tier 2 portion of the tax imposed by section 
3201 (relating to tax on employees) shall be treated as Ante, p. 420. 
an employee contribution, 
"(ii) the tier 2 portion of the tax imposed by section 
3211 (relating to tax on employee representatives) shall Supra. 
be treated as an employee contribution, and 
97 STAT. 422 
PUBLIC LAW 98-76—AUG. 12, 1983 
Ante, p. 420. 
Ante, pp. 420, 
421. 
26 u s e 3101 et 
seq. 
45 u s e 231a. 
45 u s e 231b, 
231c. 
Ante, p. 80. 
26 u s e 6050G. 
45 u s e 231t. 
"(iii) the tier 2 portion of the tax imposed by section 
3221 (relating to tax on employers) shall be treated as 
an employer contribution. 
"(B) TIER 2 PORTION.—For purposes of subparagraph (A)— 
"(i) AFTER 1984.—With respect to compensation paid 
after 1984, the tier 2 portion shall be the taxes imposed 
by sections 3201(b), 3211(a)(2), and 3221(b). 
"(ii) AFTER SEPTEMBER SO, 1 9 8 1 , A N D BEFORE 1985.— 
With respect to compensation paid before 1985 for 
services rendered after September 30, 1981, the tier 2 
portion shall be— 
"(I) so much of the tax imposed by section 3201 
as is determined at the 2 percent rate, and 
"(II) so much of the taxes imposed by sections 
3211 and 3221 as is determined at the 11.75 percent 
rate. 
With respect to compensation paid for services ren-
dered after December 31, 1983, and before 1985, sub-
clause (I) shall be applied by substituting '2.75 percent' 
for '2 percent', and subclause (II) shall be applied by 
substituting '12.75 percent' for '11.75 percent'. 
"(iii) BEFORE OCTOBER i, 1981.—With respect to com-
pensation paid for services rendered during any period 
before October 1, 1981, the tier 2 portion shall be the 
excess (if any) o
f
— 
"(I) the tax imposed for such period by section 
3201, 3211, or 3221, as the case may be (other than 
any tax imposed with respect to man-hours), over 
"(II) the tax which would have been imposed by 
such section for such period had the rates of the 
comparable taxes imposed by chapter 21 for such 
period applied under such section. 
"(C) 
CONTRIBUTIONS NOT ALLOCABLE TO SUPPLEMENTAL 
ANNUITY O
R WINDFALL BENEFITS.—For purposes of para-
graph (1), no amount treated as an employee contribution 
under this paragraph shall be allocated to— 
"(i) any supplemental annuity paid under section 2(b) 
of the Railroad Retirement Act of 1974, or 
"(ii) any benefit paid under section 3(h), 4(e), or 4(h) 
of such Act. 
"(3) TIER i RAILROAD RETIREMENT BENEFIT.—For purposes of 
paragraph (1), the term 'tier 1 railroad retirement benefit' has 
the meaning given such term by section 86(d)(4)." 
(b) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart B of part III of subchapter A of 
chapter 61 of such Code (relating to information concerning 
transactions with other persons) is amended by adding at the 
end thereof the following new section: 
"SEC. 6050G. RETURNS RELATING TO CERTAIN RAILROAD RETIREMENT 
BENEFITS. 
"(a) IN GENERAL.—The Railroad Retirement Board shall make a 
return, according to the forms and regulations prescribed by the 
Secretary, setting forth— 
"(1) the aggregate amount of benefits paid under the Railroad 
Retirement Act of 1974 (other than tier 1 railroad retirement 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 423 
benefits, as defined in section 86(dX4)) to any individual during 
Ante, p. 80. 
any calendar year, 
"(2) the employee contributions (to the extent not previously 
taken into account under section 72(d)(1)) which are treated as 
26 use 72. 
having been paid for purposes of section 72(r), 
Ante, p. 421. 
"(3) the name and address of such individual, and 
"(4) such other information as the Secretary may require. 
"(b) STATEMENTS TO BE FURNISHED TO INDIVIDUALS WITH RESPECT 
T
O WHOM INFORMATION IS FURNISHED.—The Railroad Retirement 
Board shall furnish to each individual whose name is set forth in the 
return under subsection (a) a written statement showing— 
"(1) the aggregate amount of payments to such individual, 
and of employee contributions with respect thereto, as shown on 
such return, and 
"(2) such other information as the Secretary may require. 
The written statement required under the preceding sentence shall 
be furnished to the individual on or before January 31 of the year 
following the calendar year for which the return under subsection 
(a) was made." 
(2) CLERICAL AMENDMENT.—The table of sections for such 
subpart B is amended by adding at the end thereof the following 
new item: 
"Sec. 6050G. Returns relating to certain railroad retirement benefits." 
(c) SECTION 72(r) REVENUE INCREASE TRANSFERRED TO CERTAIN Ante, p. 421. 
RAILROAD ACCOUNTS.— 
(1) IN GENERAL.— 
(A) TRANSFERS TO RAILROAD RETIREMENT ACCOUNT.—There 45 use 23in 
are hereby appropriated to the Railroad Retirement ^°^-
Account amounts equivalent to the aggregate increase in 
tax liabilities under chapter 1 of the Internal Revenue Code 
of 1954 which is attributable to the application of section 
26 use i et seq. 
72(r) of the Internal Revenue Code of 1954 (as added by this 
Act) with respect to benefits received before October 1, 
1988. The aggregate amount appropriated under the preced-
ing sentence to the extent attributable to benefits other 
than windfall benefits shall not exceed $877,000,000. 
(B) REVENUE INCREASES ATTRIBUTABLE TO WINDFALL BENE-
FITS RECEIVED AFTER SEPTEMBER 30, 1988, TRANSFERRED T
O 
D
U
A
L BENEFITS PAYMENTS ACCOUNT.—There are hereby ap-
propriated to the Dual Benefits Payments Account amounts 
equivalent to the aggregate increase in tax liabilities under 
chapter 1 of such Code which is attributable to the applica-
tion of section 72(r) of such Code (as added by this Act) with 
respect to windfall benefits received after September 30, 
1988. 
(C) WINDFALL BENEFITS DEFINED.—For purposes of this 
paragraph, the term "windfall benefits" means any benefit 
paid under section 3(h), 4(e), or 4(h) of the Railroad Retire-
ment Act of 1974. 
45 use 231b. 
(2) TRANSFERS.—The amounts appropriated by paragraph (1) ^^^'^• 
shall be transferred from time to time (but not less frequently 
than quarterly) from the general fund of the Treasury on the 
basis of estimates made by the Secretary of the Treasury of the 
amounts referred to in paragraph (1). Any such quarterly pay-
ment shall be made on the first day of such quarter and shall 
take into account benefits estimated to be received during such 
97 STAT. 424 
PUBLIC LAW 98-76—AUG. 12, 1983 
quarter. Proper adjustments shall be made in the amounts 
subsequently transferred to the extent prior estimates were in 
excess of or less than the amounts required to be transferred. 
(3) REVENUE INCREASES FROM TAX ON SUPPLEMENTAL ANNU-
ITIES NOT INCLUDED.—Paragraph (1) shall not apply to tax liabil-
ities attributable to supplemental annuities paid under section 
45 use 231a. 
2(b) of the Railroad Retirement Act of 1974. 
(d) OVERALL MINIMUM BENEFIT TREATED AS TIER 1 BENEFIT.— 
Ante, p. 80. 
Paragraph (4) of section 86(d) of such Code (defining tier 1 railroad 
retirement benefit) is amended by inserting "3(f)(3)," after "3(a),". 
SEC. 225. TECHNICAL AMENDMENTS. 
(a) AMENDMENTS RELATING TO APPLICATION OF CONTRIBUTION BASE 
ON AN A N N U A L BASIS.— 
(1) Paragraph (2) of section 3231(e) of the Internal Revenue 
26 use 3231. 
Code of 1954 (defining compensation) is amended to read as 
follows: 
"(2) APPLICATION OF CONTRIBUTION BASES.— 
"(A) COMPENSATION IN EXCESS OF APPLICABLE BASE EX-
CLUDED.— 
"(i) IN GENERAL.—The term 'compensation' does not 
include that part of remuneration paid during any 
calendar year to an individual by an employer after 
remuneration equal to the applicable base has been 
paid during such calendar year to such individual by 
such employer for services rendered as an employee to 
such employer. 
"(ii) REMUNERATION NOT TREATED AS COMPENSATION 
EXCLUDED.—There shall not be taken into account 
under clause (i) remuneration which (without regard to 
clause (i)) is not treated as compensation under this 
subsection. 
"(B) APPLICABLE BASE.— 
"(i) TIER l TAXES.—Except as provided in clause (ii), 
the term 'applicable base' means for any calendar year 
the contribution and benefit base determined under 
42 use 430. 
section 230 of the Social Security Act for such calendar 
year. 
"(ii) TIER 2 TAXES, ETC.—For purposes o
f
— 
"(I) the taxes imposed by sections 3201(b), 
Ante, pp. 420, 
3211(a)(2), and 3221(b), and 
'^^^- 
"(ID computing average monthly compensation 
under section 3(j) of the Railroad Retirement Act of 
45 use 231b. 
1974 (except with respect to annuity amounts de-
termined under subsection (a) or (f)(3) of section 3 
of such Act), 
clause (2) of the first sentence, and the second sentence, 
42 use 430. 
of subsection (c) of section 230 of the Social Security Act 
shall be disregarded. 
"(C) SUCCESSOR EMPLOYERS.—For purposes of this para-
26 use 3121. 
graph, the second sentence of section 3121(a)(1) (relating to 
successor employers) shall apply, except that— 
"(i) the term 'services' shall be substituted for 'em-
ployment' each place it appears, 
"(ii) the term 'compensation' shall be substituted for 
'remuneration (other than remuneration referred to in 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 425 
the succeeding paragraphs of this subsection)' each 
place it appears, and 
"(iii) the terms 'employer', 'services', and 'compensa-
tion' shall have the meanings given such terms by this 
section." 
(2) Subsection (a) of section 3202 of such Code is amended by 
26 use 3202. 
striking out the second sentence. 
(3) Paragraph (1) of section 3231(e) of such Code is amended by 
26 USC 3231. 
striking out the fourth and fifth sentences. 
(4) The last sentence of section 230(c) of the Social Security 
Act is hereby repealed. 
42 USC 430. 
(b) CONCURRENT EMPLOYMENT BY 2 OR MORE EMPLOYERS.—Section 
3231 of such Code is amended by adding at the end thereof the 
26 USC 3231. 
following new subsection: 
"(i) CONCURRENT EMPLOYMENT BY 2 OR MORE EMPLOYERS.—For 
purposes of this chapter, if 2 or more related corporations which are 
employers concurrently employ the same individual and compensate 
such individual through a common paymaster which is 1 of such 
corporations, each such corporation shall be considered to have paid 
as remuneration to such individual only the amounts actually dis-
bursed by it to such individual and shall not be considered to have 
paid as remuneration to such individual amounts actually disbursed 
to such individual by another of such corporations." 
(c) OTHER TECHNICAL AMENDMENTS.— 
(1) The following provisions of the Internal Revenue Code of 
1954 are each amended by striking out "tax imposed by section 
26 USC l et seq. 
3201" and inserting in lieu thereof "taxes imposed by section 
3201": 
(A) Section 3202(a), 
Supra. 
(B) Paragraphs (2) and (4) of section 3202(c), and 
(C) Paragraph (3) of section 3231(e). 
26 USC 3231. 
(2) Subsection (a) of section 3202 of such Code is amended by Supra. 
striking out "the amount of the tax" in the first sentence and 
inserting in lieu thereof "the amount of the taxes", and by 
striking out "such tax" in the last sentence and inserting in lieu 
thereof "such taxes". 
(3) Paragraph (2) of section 3202(c) of such Code is amended by 
26 USC 3202. 
striking out "the tax under paragraph (1)" and inserting in lieu 
thereof "the taxes under paragraph (1)". 
(4) Paragraph (4) of section 3202(c) of such Code is amended by 
striking out "such tax" and inserting in lieu thereof "such 
taxes". 
(5) Paragraphs (2) and (4) of section 3202(c) of such Code are 
each amended by striking out "exceeds" and inserting in lieu 
thereof "exceed". 
(6) Paragraph (3) of section 3231(e) of such Code is amended by 
26 USC 3231. 
striking out "such tax" and inserting in lieu thereof "such 
taxes". 
(7) Subparagraph (A) of section 3231(e)(4) of such Code is 
amended by striking out "3201(b) and 3221(b) (and so much of 
section 3211(a) as relates to the rates of the taxes imposed by 
sections 3101 and 3111)" and inserting in lieu thereof "3201(a), 
3211(a)(1), and 3221(a)". 
(8) Subsection (h) of section 3231 of such Code is amended— 
(A) by striking out "tax imposed under section 3201" and 
inserting in lieu thereof "taxes imposed by section 3201", 
and 
97 STAT. 426 
PUBLIC LAW 98-76—AUG. 12, 1983 
(B) by striking out all that follows "received" and insert-
ing in lieu thereof a period. 
SEC. 226. DEPOSITARY SCHEDULES. 
26 use 6302 
Effective on and after January 1, 1984, the times for making 
"°^ 
payments prescribed under section 6302 of the Internal Revenue 
26 use 6302. 
Code of 1954 with respect to the taxes imposed by chapter 22 of such 
26 use 3201 et 
Code shall be the same as the times prescribed under such section 
*^^- 
which apply to the taxes imposed by chapters 21 and 24 of such 
26 use 3101 et 
Code. 
seg., 3401 et seq. 
SEC. 227. EFFECTIVE DATES. 
26 use 3201 
(a) SECTIONS 221, 222, 223, AND 225.—The amendments made by 
"°^- 
sections 221, 222, 223, and 225 shall apply to remuneration paid 
after December 31,1984. 
26 u s e 72 note. 
(b) SECTION 224.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by section 224 shall apply to benefits re-
ceived after December 31, 1983, in taxable years ending after 
such date. 
(2) TREATMENT OF CERTAIN LUMP-SUM PAYMENTS RECEIVED 
AFTER D
E
C
E
M
B
E
R 31, 1983.—The amendments made by section 
224 shall not apply to any portion of a lump-sum payment 
received after December 31, 1983, if the generally applicable 
payment date for such portion was before January 1, 1984. 
(3) No FRESH START.—For purposes of determining whether 
any benefit received after December 31, 1983, is includible in 
gross income by reason of section 72(r) of the Internal Revenue 
Ante, p. 421. 
Code of 1954, as added by this Act, the amendments made by 
section 224 be treated as having been in effect during all periods 
before 1984. 
26 use 6302 
(c) SECTION 226.—Section 226 shall take effect on January 1, 1984. 
note. 
Subtitle B—Railroad Unemployment Insurance 
Provisions 
PART I—RAILROAD UNEMPLOYMENT 
REPAYMENT TAX 
SEC. 231. IMPOSITION OF TAX ON RAIL WAGES TO REPAY LOANS TO 
RAILROAD UNEMPLOYMENT INSURANCE SYSTEM. 
(a) GENERAL RULE.—Subtitle C of the Internal Revenue Code of 
1954 (relating to employment taxes) is amended by inserting after 
chapter 23 the following new chapter: 
"CHAPTER 23A—RAILROAD UNEMPLOYMENT REPAYMENT 
TAX 
"Sec. 3321. Imposition of tax. 
"Sec. 3322. Taxable period. 
"Sec. 3323. Other definitions. 
26 u s e 3321. 
"SEC. 3321. IMPOSITION OF TAX. 
"(a) GENERAL RULE,—There is hereby imposed on every rail em-
ployer for each taxable period an excise tax, with respect to having 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 427 
individuals in his employ, equal to the applicable percentage of the 
total rail wages paid by him during the taxable period. 
"(b) TAX ON EMPLOYEE REPRESENTATIVES.— 
"(1) IN GENERAL.—There is hereby imposed on the income of 
each employee representative a tax equal to the applicable 
percentage of the rail wages paid to him during the taxable 
period. 
"(2) DETERMINATION OF WAGES.—The rail wages of an em-
ployee representative for purposes of paragraph (1) shall be 
determined in the same manner and with the same effect as if 
the employee organization by which such employee representa-
tive is employed were a rail employer. 
"(c) RATE OF TAX.—For purposes of this section— 
"(1) 
FOR TAXABLE PERIOD JULY i THROUGH DECEMBER 3I, 
1986.—The applicable percentage for the taxable period begin-
ning on July 1,1986, and ending on December 31,1986, shall be 
2 percent. 
"(2) SUBSEQUENT TAXABLE PERIODS.—The applicable percent-
age for any taxable period beginning after 1986 shall be the sum 
of— 
"(A) 2 percent, plus 
"(B) 0.3 percent for each preceding taxable period. 
In no event shall the applicable percentage exceed 5 percent. 
"SEC. 3322. TAXABLE PERIOD. 
26 USC 3322. 
"(a) GENERAL RULE.—For purposes of this chapter, except as 
provided in subsection (b), the term 'taxable period' means— 
"(1) the period beginning on July 1, 1986, and ending on 
December 31,1986, 
"(2) each calendar year after 1986 and before 1990, and 
"(3) the period beginning on January 1, 1990, and ending on 
September 30,1990. 
"(b) EARLIER TERMINATION IF LOANS TO RAIL UNEMPLOYMENT 
FUND REPAID.—The tax imposed by this chapter shall not apply to 
any rail wages paid on or ^ter the first January 1 after 1986 as of 
which there is— 
"(1) no balance of transfers to the railroad unemployment 
insurance account under section 10(d) of the Railroad Unem-
ployment Insurance Act, and 
45 use 360. 
"(2) no unpaid interest on such transfers. 
"SEC. 3323. OTHER DEFINITIONS. 
26 USC 3323. 
"(a) RAIL EMPLOYER.—For purposes of this chapter, the term 'rail 
employer' means any person who is an employer as defined in 
section 1 of the Railroad Unemployment Insurance Act. 
45 use 351. 
"(b) RAIL WAGES.— 
"(1) IN GENERAL.—For purposes of this chapter, the term 'rail 
wages' means wages as defined in section 3306(b) with the 26 use 3306. 
modifications specified in paragraph (2). 
"(2) MODIFICATIONS.-In applying subsection (b) of section 
3306 for purposes of paragraph (1)— 
"(A) ONLY RAILROAD EMPLOYMENT TAKEN INTO ACCOUNT.— 
Such subsection (b) shall be applied— 
"(i) by substituting 'rail employment' for 'employ-
ment' each place it appears, and 
"(ii) by substituting 'rail employer' for 'employer' 
each place it appears. 
97 STAT. 428 
PUBLIC LAW 98-76—AUG. 12, 1983 
"(B) WAGE BASE FOR FIRST TAXABLE PERIOD.—In the case of 
the taxable period beginning on July 1, 1986, and ending on 
December 31, 1986, such subsection (b) shall be applied by 
substituting '$3,500' for '$7,000' each place it appears in 
paragraph (1) thereof. 
"(C) WAGE BASE FOR LAST TAXABLE PERIOD.—In the case of 
the taxable period beginning on January 1, 1990, and 
ending on September 30, 1990, such subsection (b) shall be 
applied by substituting '$5,250' for '$7,000' each place it 
appears in paragraph (1) thereof. 
"(c) RAIL EMPLOYMENT.—For purposes of this chapter, the term 
'rail employment' means services performed by an individual as a 
rail employee or employee representative. 
"(d) RAIL EMPLOYEE AND EMPLOYEE REPRESENTATIVE.—For pur-
poses of this chapter— 
"(1) RAIL EMPLOYEE.—The term 'rail employee' means any 
person who is an employee as defined in section 1 of the 
45 use 351. 
Railroad Unemployment Insurance Act. 
"(2) EMPLOYEE REPRESENTATIVE.—The term 'employee repre-
sentative' has the meaning given such term by section 1 of the 
Railroad Unemployment Insurance Act. 
"(e) CONCURRENT EMPLOYMENT BY 2 OR MORE RAIL EMPLOYERS.— 
For purposes of this chapter, if 2 or more related corporations which 
are rail employers concurrently employ the same individual and 
compensate such individual through a common paymeister which is 
1 of such corporations, each such corporation shall be considered to 
have paid as remuneration to such individual only the amounts 
actually disbursed by it to such individual and shall not be consid-
ered to have paid as remuneration to such individual amounts 
actually 
disbursed to such 
individual by another of such 
corporations. 
"(f) CERTAIN RULES MADE APPLICABLE.—For purposes of this chap-
26 use 3307, 
ter, rules similar to the rules of sections 3307 and 3308 shall apply." 
^^^^- 
(b) QUARTERLY PAYMENT OF TAX.— 
26 use 6157. 
(1) IN GENERAL.—Section 6157 of such Code (relating to pay-
ment of Federal unemployment tax on quarterly or other time 
period basis) is amended by adding at the end thereof the 
following new subsection: 
"(d) QUARTERLY PAYMENT OF RAILROAD UNEMPLOYMENT REPAY-
MENT TAX.— 
"(1) IN GENERAL.—Every rail employer shall compute the tax 
Ante, p. 426. 
imposed by section 3321 for each calendar quarter in any tax-
able period in the manner provided in paragraph (2). The tax so 
computed shall, except as otherwise provided in paragraph (3), 
be paid in such manner and at such time as may be provided in 
regulations prescribed by the Secretary. 
"(2) COMPUTATION OF TAX.—The tax for any calendar quarter 
shall be computed by multiplying the aggregate amount of rail 
wages paid in such calendar quarter by the applicable percent-
age determined under section 3321(c). 
"(3) EXCEPTIONS.—No payment shall be required under this 
subsection— 
"(A) for the last calendar quarter in any taxable period, 
and 
"(B) for any calendar quarter if the tax under section 
3321 for such quarter, plus any unpaid amounts for prior 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 429 
calendar quarters in the taxable period, does not exceed 
$100. 
"(4) DEFINITIONS.—For purposes of this subsection, the terms 
'taxable period', 'rail employer', and 'rail wages' have the same 
respective meanings as when used in chapter 23A." 
Ante, p. 426. 
(2) TECHNICAL AMENDMENTS.— 
(A) Paragraph (2) of section 6201(b) of such Code (relating 26 USC 6201. 
to amount not to be assessed) is amended by striking out 
"Federal unemployment tax" and inserting in lieu thereof 
"Federal unemployment tax or tax imposed by section 
3321". 
Ante, p. 426. 
(B) Section 6317 of such Code (relating to payments of 26 USC 6317. 
Federal 
unemployment tax for calendar quarter) is 
amended— 
(i) by striking out "Federal unemployment tax" and 
inserting in lieu thereof "Federal unemployment tax or 
tax imposed by section 3321", and 
(ii) by striking out "chapter 23" and inserting in lieu 
thereof "chapter 23 and 23A, as the case may be,". 
(C) Subsection (e) of section 6513 of such Code (relating to 26 use 6513. 
payments of Federal unemployment tax) is amended by 
adding at the end thereof the following new sentence: 
"Notwithstanding subsection (a), for purposes of section 
6511, any payment of tax imposed by chapter 23A which, 26 USC 6511; 
pursuant to section 6157, is made for a calendar quarter ""'^' P '*^^-
within a taxable period shall, if made before the last day ^^ ^^^ ^^^'^ 
prescribed for filing the return for the taxable period (deter-
mined without regard to any extension of time for filing), be 
considered made on such last day." 
(D) Subsection (i) of section 6601 of such Code is amended 26 USC 6601. 
by striking out "3301" and inserting in lieu thereof "3301 or 
3321". 
(c) CLERICAL AMENDMENT.—The table of chapters for subtitle C of 
such Code is amended by inserting after the item relating to chapter 
23 the following new item: 
"CHAPTER 23A. Railroad Unemployment Repayment Tax." 
(d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 3321 
apply to remuneration paid after June 30,1986. 
^°^-
SEC. 232. TAX USED TO REPAY LOANS MADE TO RAILROAD UNEMPLOY- 45 USC 231n 
MENT INSURANCE ACCOUNT. 
note. 
(a) TRANSFER TO RAILROAD RETIREMENT ACCOUNT.— 
(1) IN GENERAL.—The Secretary of the Treasury shall transfer 
from the general fund of the Treasury to the Railroad Retire-
ment Account an amount equal to the additional railroad unem-
ployment taxes received in the Treasury. 
(2) TAXES CREDITED AGAINST LOANS TO RAILROAD UNEMPLOY-
MENT INSURANCE ACCOUNT.—Any amount transferred under 
paragraph (1) shall be credited against, and operate to reduce, 
the outstanding balance of railroad unemployment loans. 
(b) TRANSFERS MADE MONTHLY.—Transfers under subsection (a) 
shall be made at least monthly on the basis of estimates made by the 
Secretary of the Treasury of the amount of the additional railroad 
unemployment taxes received in the Treasury. Proper adjustments 
shall be made in the amount subsequently transferred to the extent 
97 STAT. 430 
PUBLIC LAW 98-76—AUG. 12, 1983 
prior estimates were in excess of or were less than the amounts 
required to be transferred. 
(c) TRANSFERS TO RAILROAD UNEMPLOYMENT FUND AFTER LOANS 
REPAID.—If— 
(1) the amount which (but for this subsection) would be trans-
ferred to the Railroad Retirement Account under subsection (a), 
exceeds— 
(2) the outstanding balance of railroad unemployment loans 
(as of the time of such transfer), 
such transfer (to the extent it exceeds such outstanding balance) 
shall be made to the Railroad Unemployment Account. 
(d) DEFINITIONS.—For purposes of this section— 
(1) ADDITIONAL RAILROAD UNEMPLOYMENT TAXES.—The term 
"additional railroad unemployment taxes" means the taxes 
Ante, p. 426. 
imposed by chapter 23A of the Internal Revenue Code of 1954. 
(2) RAILROAD UNEMPLOYMENT ACCOUNT.—The term "Railroad 
Unemployment Account" means the railroad unemployment 
insurance account in the unemployment trust fund established 
42 use 1104. 
pursuant to section 904 of the Social Security Act. 
(3) RAILROAD UNEMPLOYMENT LOANS.—The term "railroad 
unemployment loans" means transfers under section 10(d) of 
45 use 360. 
the Railroad Unemployment Insurance Act from the Railroad 
Retirement Account to the Railroad Unemployment Account. 
The outstanding balance of such loans shall include any interest 
required to be paid under such section 10(d). 
PART II—TAXATION OF SICK PAY PAID UNDER 
RAILROAD UNEMPLOYMENT INSURANCE ACT 
SEC. 241. TAXATION OF SICK PAY PAID UNDER RAILROAD UNEMPLOY-
MENT INSURANCE ACT. 
(a) GENERAL RULE.—Section 105 of the Internal Revenue Code of 
26 use 105. 
1954 (relating to amounts received under accident and health plans) 
is amended by adding at the end thereof the following new subsec-
tion: 
"(i) SICK PAY UNDER RAILROAD UNEMPLOYMENT INSURANCE ACT.— 
Notwithstanding any other provision of law, gross income includes 
benefits paid under section 2(a) of the Railroad Unemployment 
45 use 352. 
Insurance Act for days of sickness; except to the extent such sick-
ness (as determined in accordance with standards prescribed by the 
Railroad Retirement Board) is the result of on-the-job injury." 
26 use 105 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to amounts received after December 31, 1983, in taxable 
years ending after such date. 
TITLE III—BORROWING AUTHORITY ADJUSTMENTS 
45 use 23lf. 
SEC 301. (a) Section 7(c) of the Railroad Retirement Act of 1974 is 
amended by adding at the end thereof the following new subdivision: 
"(4) After the end of each month beginning with the month of 
October 1983, the Board shall determine the net amount, if any, 
which if added to or subtracted from the Federal Old-Age and 
Survivors Insurance Trust Fund, the Federal Disability Insurance 
Trust Fund, and the Federal Hospital Insurance Trust Fund would, 
with respect to such month, place those Trust Funds, taken as a 
whole, in the same position in which they would have been if (A) 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 431 
service as an employee after December 31, 1936, had been included 
in the term 'employment' as defined in the Social Security Act and 42 USC 1305. 
in the Federal Insurance Contributions Act, and (B) this Act had not 26 use 3126. 
been enacted. If for any month the net amount so determined would Transfer of 
be subtracted from those Trust Funds, the Board shall, within ten funds, 
days after the end of such month, report such amount to the 
Secretary of the Treasury for transfer from the general fund to the 
Railroad Retirement Account. Any amount so reported shall further 
include interest (at an annual rate equal to the rate of interest 
borne by a special obligation issued to the Railroad Retirement 
Account in the month in which the transfer is made to the Account) 
payable from the close of the month for which the transfer is made 
until the date of transfer. The Secretary of the Treasury is author-
ized and directed to transfer to the Railroad Retirement Account 
from the general fund such amounts as, from time to time, may be 
determined by the Board pursuant to the provisions of this subdivi-
sion and reported by the Board for transfer. For such purpose the 
Secretary of the Treasury is authorized to use as a public debt 
transaction the proceeds of the sale of any securities issued after the 
date of the enactment of this Act under section 3102 of title 31 of the 
United States Code, and the purpose for which securities may be 96 Stat. 938. 
issued under section 3102 of title 31 of the United States Code are 
extended to include such purpose. Each such transfer shall be made 
by the Secretary of the Treasury within five days after a report of 
the amount to be transferred is received. Not later than December 
31 following the close of each fiscal year beginning with the fiscal 
year ending September 30, 1984, the Board shall certify to the 
Secretary of the Treasury the total of all amounts transferred 
pursuant to the provisions of this subdivision for months in such 
fiscal year. Within ten days after a transfer, or transfers, pursuant 
to subdivision (2) for a particular fiscal year, the Board shall request 
the Secretary of the Treasury to retransfer from the Railroad 
Retirement Account to the general fund an amount equal to (A) the 
total of all amounts, exclusive of interest, transferred to such 
Account pursuant to the provisions of this subdivision for months in 
such fiscal year, plus (B) interest (at the rate determined in subdivi-
sion (3) for such fiscal year) payable with respect to each amount 
transferred for a month during such fiscal year from the close of the 
month for which the transfer of the amount was made until the date 
of retransfer of such amount. The Secretary of the Treasury is 
authorized and directed to retransfer from the Railroad Retirement 
Account to the general fund such amounts as, from time to time, 
may be determined by the Board pursuant to the provisions of the 
preceding sentence of this subdivision and reported by the Board for 
retransfer.". 
(b) Subsection (b) of section 15 of the Railroad Retirement Act of 
1974 is amended to read as follows: 
45 USC 23ln. 
"(b) In addition to the amount appropriated in subsection (a) of 
this section, there is hereby authorized to be appropriated to the 
Railroad Retirement Account for each fiscal year, beginning with 
the fiscal year ending June 30, 1975, such amount £is the Board 
determines to be necessary to meet (A) the additional costs, result-
ing from the crediting of military service under this Act, of benefits 
payable under section 2 of this Act, but only to the extent that such 45 USC 23la. 
Account is not reimbursed for such costs under section 7(c)(2), (B) the 45 USC 23lf. 
additional administrative expenses resulting from the crediting of 
military service under this Act, and (C) any loss in interest to such 
97 STAT. 432 
PUBLIC LAW 98-76—AUG. 12, 1983 
45 u s e 231c. 
Transfer of 
funds. 
45 u s e 231f. 
42 u s e 401. 
45 u s e 231c. 
Effective dates. 
45 u s e 231f 
note. 
45 u s e 231n 
note. 
Ante, p. 431. 
45 u s e 360. 
Account resulting from the pa3mient of additional benefits based on 
military service credited under this Act: Provided, however. That, in 
determining the amount to be appropriated to the Railroad Retire-
ment Account for any fiscal year pursuant to the provisions of this 
subsection, there shall not be considered any costs resulting from 
the crediting of military service under this Act for which appropri-
ations to such Account have already been made pursuant to section 
4(1) of the Railroad Retirement Act of 1937. Any determination as to 
loss in interest to the Railroad Retirement Account pursuant to 
clause (C) of the first sentence of this subsection shall take into 
account interest from the date each annuity based, in part, on 
military service began to accrue or was increased to the date or 
dates on which the amount appropriated is credited to the Account. 
The cost resulting from the paynient of additional benefits under 
this Act based on military service determined pursuant to the 
preceding provisions of this subsection shall be adjusted by applying 
thereto the ratio of the total net level cost of all benefits under this 
Act to the portion of such net level cost remaining after the exclu-
sion of administrative expenses and interest charges on the un-
funded accrued liability as determined under the last completed 
actuarial valuation pursuant to the provisions of subsection (g) of 
this section. At the close of the fiscal year ending June 30,1975, and 
each fiscal year thereafter, the Board shall, as promptly as practic-
able, determine the amount to be appropriated to the Account pursu-
ant to the provisions of this subsection, and shall certify such 
amount to the Secretary of the Treasury for transfer from the 
general fund in the Treasury to the Railroad Retirement Account. 
When authorized by an appropriation Act, the Secretary of the 
Treasury shall transfer to the Railroad Retirement Account from 
the general fund in the Treasury such amounts as, from time to 
time, may be determined by the Board pursuant to the provisions of 
this subsection and certified by the Board for transfer to such 
Account. In any determination made pursuant to section 7(c)(2) of 
this Act, no further charges shall be made against the Trust Funds 
established by title II of the Social Security Act for military service 
rendered before January 1, 1957, and with respect to which appro-
priations authorized by clause (2) of the first sentence of section 4(1) 
of the Railroad Retirement Act of 1937 shall have been credited to 
the Railroad Retirement Account, but the additional benefit pay-
ments incurred by such Trust Funds by reason of such military 
service shall be taken in account in making any such determina-
tion.". 
(c)(1) The amendment made by subsection (a) of this section shall 
be effective on October 1,1983. 
(2) The amendments made by subsection (b) of this section shall be 
effective on the date immediately following the day in June 1984 
when the total amount of money outstanding to the Railroad Retire-
ment Account under section 15(b)(2) of the Railroad Retirement Act 
of 1974 is retransferred to the general fund under that section. 
SEC. 302. Subsection (d) of section 10 of the Railroad Unemploy-
ment Insurance Act is amended by adding at the end thereof the 
following new sentence: "No transfer shall be made under this 
subsection from the Railroad Retirement Account after September 
30,1985, and no such transfer shall be made on or before September 
30, 1985, for purposes of paying benefits and refunds due after such 
date.". 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 433 
45 u s e 231b, 
231c. 
45 u s e 231 note. 
45 u s e 231f. 
Loans. 
TITLE IV—OTHER BENEFIT-RELATED AMENDMENTS 
SEC. 401. (a) Section 15(d) of the Railroad Retirement Act of 1974 is 45 use 23ln 
amended— 
(1) by inserting "(1)" after "(d)"; 
(2) by striking out "one-twelfth of the amount which the 
Board has determined will be the amount of the appropriation 
to be made to the Dual Benefits Payments Account under the 
applicable public law making such appropriation for such fiscal 
year, and the Secretary of the Treasury shall make such trans-
fer." from the third sentence and inserting in lieu thereof the 
following: "the amount that the Board estimates will be neces-
sary to pay on the first day of the next succeeding month the 
annuity amounts under sections 8(h), 4(e), and 4(h) of this Act 
and under sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of 
Public Law 93-445, taking into account any reduction in such 
annuity amounts as determined under section 7(c)(1) of this Act, 
and the Secretary of the Treasury shall make such transfer, but 
at no time shall the total amount of money outstanding to the 
Dual Benefits Payments Account from the Railroad Retirement 
Account exceed the amount necessary to pay the annuity 
amounts under sections 3(h), 4(e), and 4(h) of this Act and 
sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93-
445 for one month."; 
(3) in the fourth sentence, by inserting "or during" after 
"prior to"; and 
(4) by adding at the end the following new subdivisions: 
"(2) The Secretary of the Treasury— 
"(i) shall transfer from the general fund as a loan to the 
Board on January 1, 1984, one-third of the special amount 
described in subdivision (3) of this subsection; 
"(ii) shall transfer from the general fund as a loan to the 
Board on January 1, 1985, one-third of the special amount 
described in subdivision (3) of this subsection, plus an amount 
equal to the interest that one-third would have earned had it 
been in the Railroad Retirement Account since January 1,1984; 
and 
"(iii) shall transfer from the general fund as a loan to the 
Board on January 1, 1986, the final one-third of the special 
amount described in subdivision (3) of this subsection, plus an 
amount equal to the interest that one-third would have earned 
had it been in the Railroad Retirement Account since Janu-
ary 1, 1984. 
"(3) The special amount referred to in subdivision (2) of this 
subsection is the amount which, as of January 1, 1984, would place 
the Railroad Retirement Account in the same position it would have 
been on that date if no annuity amounts had been paid during the 
period beginning January 1, 1975 and ending September 30, 1981, 
under sections 3(h), 4(e), and 4(h) of this Act and under sections 
204(aX3), 204(a)(4), 206(3), and 207(3) of Public Law 93-445, and no 
sums had been appropriated as authorized in section 15(d) of this 
Act. 
"(4) For the purposes of subdivision (2) of this subsection, the 
Secretary of the Treasury is authorized to use as a public debt 
transaction the proceeds of the sale of any securities issued after the 
date of the enactment of the Railroad Retirement Solvency Act of 
1983 under section 3102 of title 31 of the United States Code and the Ante, p. 411. 
96 Stat. 938. 
97 STAT. 434 
PUBLIC LAW 98-76—AUG. 12, 1983 
Effective date. 
45 u s e 231n 
note. 
45 u s e 231. 
45 u s e 351. 
45 u s e 231 note. 
45 u s e 231. 
45 u s e 797. 
45 u s e 797a. 
45 u s e 351. 
45 u s e 797. 
45 u s e 797a. 
Effective date. 
45 u s e 231 note. 
45 u s e 231b. 
purposes for which securities may be so issued are extended to 
include such purposes. 
"(5) The amounts transferred to the Board as loans under subdivi-
sion (2) of this subsection shall be deposited in the Railroad Retire-
ment Account. 
"(6) The amounts transferred as loans under subdivision (2) of this 
subsection shall be repaid to the general fund to the extent sums are 
appropriated for that purpose, and there are hereby authorized to be 
appropriated, in addition to any other sums authorized to be appro-
priated for the purposes of this Act and from any sums in the 
Treasury not otherwise appropriated, such sums as may be neces-
sary to make such repayments.". 
(b) The amendments made by this section shall be effective upon 
enactment. 
SEC. 402. (a) Section 1(h)(6) of the Railroad Retirement Act of 1974 
is amended— 
(1) by striking out paragraph (ii); and 
(2) by redesignating paragraphs (iii), (iv), (v), (vi), and (vii) 
thereof as (ii), (iii), (iv), (v), and (vi), respectively. 
(b) Section l(j) of the Railroad Unemployment Insurance Act is 
amended by striking out "(i)" and all that follows through "(ii)". 
(c) The amendments made by this section shall apply to compensa-
tion paid for services rendered after June 30,1983. 
SEC. 403. (a) Section 1(h) of the Railroad Retirement Act of 1974 is 
amended by adding at the end thereof the following new subdivision: 
"(7) The term 'compensation' includes any separation allowance 
or subsistence allowance paid under any benefit schedule provided 
under section 701 of title VII of the Regional Rail Reorganization 
Act of 1973 and any termination allowance paid under section 702 of 
that Act, but does not include any other benefits payable under that 
title. The total amount of any subsistence allowance paid under a 
benefit schedule provided pursuant to section 701 of the Regional 
Rail Reorganization Act of 1973 shall be considered as having been 
earned in the month in which the employee first timely filed a claim 
for such an allowance.". 
(b) Section l(i) of the Railroad Unemployment Insurance Act is 
amended by inserting after the first sentence thereof the following 
new sentence: "Solely for the purpose of determining the compen-
sation received by an employee in a base year, the term 'com-
pensation' shall include any separation allowance or subsistence 
allowance paid under any benefit schedule provided under section 
701 of title VII of the Regional Rail Reorganization Act of 1973 and 
any termination allowance paid under section 702 of that Act, but 
does not include any other benefits payable under that title. The 
total amount of any subsistence allowance payable under a benefit 
schedule provided pursuant to section 701 of the Regional Rail 
Reorganization Act of 1973 shall be considered as being compensa-
tion in the month in which the employee first timely filed a claim 
for such an allowance.". 
(c) The amendments made by this section shall be effective August 
13 1981 
SEC. 404. Section 3(fKl) of the Railroad Retirement Act of 1974 is 
amended— 
(1) by inserting after "of an individual shall" in the second 
sentence the following "except as provided in the following 
sentence"; and 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 435 
(2) by inserting after the second sentence the following: "If 
the individual's 'average monthly compensation' is determined 
under subdivision (2) of subsection (b) of this section, the 'final 
average monthly compensation' for such individual shall be the 
average of the compensation for the 24 months in which the 
compensation determined for the purpose of subdivision (2) of 
subsection (b) of this section is the highest.". 
(c) The amendments made by this section shall be effective Octo-
ber 1, 1983, and shall apply with respect to annuities awarded on or 
flitPT* th3.t dd.i^6 
SEC. 405. (a) Section 3(f)(3) of the Railroad Retirement Act of 1974 
is amended— 
(1) by inserting "and divorced wife" after "spouse" the first 
place it appears in the first sentence thereof; and 
(2) by striking out "such annuity or annuities" in the first 
sentence and inserting in lieu thereof "the annuities of the 
individual and spouse". 
(b) The amendments made by this section shall be effective 
October 1,1981. 
SEC. 406. (a) Section 4(g)(4) of the Railroad Retirement Act of 1974 
is amended by striking out "(e)(3)" in the second sentence and 
inserting in lieu thereof "(e)". 
(b) The amendments made by this section shall be effective Octo-
ber 1,1981. 
SEC. 407. (a) Section 4(i) of the Railroad Retirement Act of 1974 is 
amended by adding at the end thereof the following new subdivision: 
"(3) The annuity of any survivor under subsection (f) of this 
section shall be reduced, but not below zero, by the amount of any 
insurance benefit (before any deduction on account of work) payable 
to such survivor under title II of the Social Security Act, unless in 
computing the amount under subsection (f) a reduction was made for 
such insurance benefit pursuant to section 202(k) of the Social 
Security Act.". 
(b) The amendment made by this section shall be effective with 
respect to annuities awarded on and after the date of enactment. 
SEC. 408. Section 6(b)(1) of the Railroad Retirement Act of 1974 is 
amended by adding at the end thereof the following new sentence: 
"No lump sum shall be payable under this subdivision if the 
employee died leaving a surviving divorced wife who would on 
proper application therefore be entitled to receive an annuitv under 
section 2(d) of this Act for the month in which the employee s death 
occurred.". 
SEC. 409. (a) Section 2(c)(2) of the Railroad Retirement Act of 1974 
is amended by striking the period and inserting in lieu thereof the 
following: ", except that the annuity of a divorced wife who was 
previously entitled to a spouse annuity which was reduced under 
this subdivision shall be reduced by the same percentage as was 
applicable to the spouse annuity.". 
(b) The amendment made by this section shall be effective with 
respect to divorced wife annuities awarded on and after the date of 
enactment. 
SEC. 410. (a) Section 1(h) (as amended by section 403 of this Act) of 
the Railroad Retirement Act of 1974 is amended by adding at the 
end the following: 
"(8) Notwithstanding any other provision of this Act, for the 
purposes of sections 3(a)(1), 4(a)(1), and 4(f)(1), the term 'compensa-
tion' includes any payment from any source to an employee or 
Effective date. 
45 u s e 231b 
note. 
45 u s e 231b. 
Effective date. 
45 u s e 231b 
note. 
45 u s e 231c. 
Effective date. 
45 u s e 231c 
note. 
45 u s e 231c. 
42 u s e 401. 
42 u s e 402. 
Effective date. 
45 u s e 231c 
note. 
45 u s e 231 e. 
Lump sum 
restriction. 
45 u s e 231a. 
45 u s e 231a. 
Effective date. 
45 u s e 231a 
note. 
45 u s e 231b, 
231c. 
97 STAT. 436 
PUBLIC LAW 98-76—AUG. 12, 1983 
employee representative if such payment is subject to tax under 
Ante, pp. 420, 
section 3201 or 3211 of the Internal Revenue Code of 1954.". 
^^Vrcn O
Q
1 * 
O
b
) The amendment made by this section shall apply with respect 
45 ubc zsi note. ^^ payments made on or after January 1,1982. 
SEC. 411. (a)(1) The first proviso of subsection (k) of section 1 of the 
45 use 351. 
Railroad Unemployment Insurance Act is amended by striking out 
"$1,000" and inserting in lieu thereof "$1,500". 
45 use 353. 
(2) Section 3 of such Act is amended by striking out "$1,000" and 
inserting in lieu thereof "$1,500". 
45 use 354. 
(3) Section 4(a-2)(i)(A) of such Act is amended by striking out 
"$1,000" and inserting in lieu thereof "$1,500". 
45 use 351 note. 
(b) The amendments made by this section shall apply to compensa-
tion paid for services rendered after December 31,1983. 
45 use 352. 
SEC. 412. (a) Subsection (a) of section 2 of the Railroad Unemploy-
ment Insurance Act is amended by striking out "Provided, however" 
and all that follows down through the end of the first sentence and 
inserting in lieu thereof: "Provided, however. That in any case in 
which the Board finds that his unemployment was due to a stoppage 
of work because of a strike in the establishment, premises, or 
enterprise at which he was last employed, no benefits shall be 
payable for the first fourteen days of unemployment due to such 
stoppage of work.". 
45 use 352 note. 
(b) The amendment made by this section shall apply with respect 
to days of unemployment in registration periods beginning after 
December 31,1983. 
SEC. 413. (a) Section 2(d)(l)(iv) of the Railroad Retirement Act of 
45 use 231a. 
1974 is amended by inserting before the semicolon the following: ", 
but neither this proviso nor clause (B) or (C) of this paragraph shall 
operate to deny any parent an annuity to the extent and in the 
amount of the benefit that such parent would have received under 
42 use 1305. 
the Social Security Act if the service as an employee of the 
individual, with respect to which such parent would be eligible to 
receive an annuity under this Act except for this proviso and those 
clauses, were included in 'employment' as defined in the Social 
Security Act". 
45 use 231a 
(b) The amendment made by this section shall apply with respect 
^°^- 
to annuities that first begin to accrue with respect to any month 
beginning after the date of the enactment of this Act. 
45 use 231a. 
SEC. 414. (a) Section 2(h) of the Railroad Retirement Act of 1974 is 
amended— 
(1) by striking out "(h)(1) In" and all that follows through the 
end of paragraph (1); and 
(2) by inserting "(h)" immediately before "(2)". 
45 use 231a 
(b) The amendments made by this section shall apply with respect 
"°*®- 
to months beginning after the date of the enactment of this Act. 
SEC. 415. Section 2(c)(3) of the Railroad Retirement Act of 1974 is 
amended by striking out ", if, as of the day on which the applica-
tion" and all that follows through "support of such wife or 
husband". 
45 use 23if. 
SEC. 416. Section 7 of the Railroad Retirement Act of 1974 is 
amended by adding at the end the following: 
Budget 
"(f) Whenever the Board submits or transmits any budget esti-
submittal to 
mate, budget request, supplemental budget estimate, or other 
ongress. 
budget 
information, 
legislative 
recommendation, 
prepared 
testimony for congressional hearings, or comment on legislation to 
the President or to the Office of Management and Budget, it shall 
concurrently transmit a copy thereof to the Congress. No officer or 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 437 
agency of the United States shall have any authority to require the 
Board to submit its budget requests or estimates, legislative recom-
mendations, prepared testimony for congressional hearings, or com-
ments on legislation to any officer or agency of the United States for 
approval, comments, or review, prior to the submission of such 
recommendations, testimony, or comments to the Congress.". 
SEC. 417. (a) Section 15 of the Railroad Retirement Act of 1974 is 
amended by adding at the end thereof the following new subsection: 
"(iXD The Secretary of the Treasury shall implement procedures 
to permit the identification of each check issued for benefits under 
this Act that has not been presented for payment by the close of the 
sixth month following the month of its issuance. 
"(2) The Secretary of the Treasury shall, on a monthly basis, 
credit each account established in the Treasury for the payment of 
benefits under this Act for the proportionate amount of benefit 
checks (including interest thereon) drawn on each such Account 
more than six months previously but not presented for payment and 
not previously credited to such Account, to the extent provided in 
advance in appropriation Acts. 
"(3) If a benefit check is presented for payment to the Treasury 
and the amount of the appropriate portion thereof has been previ-
ously credited pursuant to paragraph (2) to an Account or Accounts, 
the Secretary of the Treasury shall nevertheless pay such check, if 
otherwise proper, recharge such Account or Accounts for the 
amount of such check attributable to such Account or Accounts and 
notify the Board. 
"(4) A benefit check bearing a current date may be issued to an 
individual who did not negotiate the original benefit check and who 
surrenders such check for cancellation if the Secretary of the Treas-
ury determines it is necessary to effect proper payment of benefits." 
(b) The amendment made by subsection (a) shall apply with 
respect to all checks for benefits under this Act which are issued on 
or after May 1,1985. 
(c)(1) The Secretary of the Treasury shall transfer from the gen-
eral fund of the Treasury to each Account established in the Treasury 
for the payment of benefits under the Railroad Retirement Act of 
1974 in the month following the month in which this section is 
enacted and in each of the next succeeding months until May, 1985, 
such sums as may be necessary to reimburse such Accounts in the 
proportionate amount of all checks (including interest thereon) 
attributable to such Accounts which the Secretary and the Board 
jointly determine to be unnegotiated benefit checks, to the extent 
provided in advance in appropriation Acts. After any amounts 
authorized by this subsection have been transferred to an Account 
or Accounts with respect to any benefit check, the provisions of 
paragraphs (3) and (4) of section 15(i) of the Railroad Retirement Act 
of 1974 (as added by subsection (a) of this section) shall be applicable 
to such check. 
(2) As used in paragraph (1) of this subsection, the term 'unnego-
tiated benefit checks' means checks for benefits under the Railroad 
Retirement Act of 1974 or under the Railroad Retirement Act of 
1937 which are issued prior to May 1, 1985, which remain unnego-
tiated after the sixth month following the date on which they were 
issued, and with respect to which no transfers have previously been 
made in accordance with the first sentence of such paragraph. 
SEC. 418. The Railroad Retirement Act of 1974 is amended by 
adding at the end the following new section: 
45 u s e 231n. 
Check 
identification. 
45 u s e 231n 
note. 
Transfer of 
funds. 
45 u s e 231n 
note. 
45 u s e 231t. 
"Unnegotiated 
benefit checks.' 
45 u s e 231t. 
97 STAT. 438 
PUBLIC LAW 98-76—AUG. 12, 1983 
"INSPECTOR GENERAL 
45 use 23iv. 
"SEC. 23. For the purposes of the Inspector General Act of 1978 (5 
U.S.C. App.) the Railroad Retirement Board is an 'establishment' 
and the Chairman of the Railroad Retirement Board is the 'head of 
the establishment' with respect to such Board. For the purpose of 
45 use 231a. 
section 2 of such Act, the Railroad Retirement Board is one of 'such 
GstfiblislimGrits 
45 use 231m. 
SEC. 419. (a) Section 14 of the Railroad Retirement Act of 1974 is 
amended— 
(1) by striking out "Notwithstanding" and inserting in lieu 
thereof "(a) Except as provided in subsection (b) of this section 
26 use 1 et seq. 
and the Internal Revenue Code of 1954, notwithstanding"; 
(2) by striking out ": Provided, however. That the provisions of 
this" and inserting in lieu thereof the following: 
"(b)(1) This"; and 
(3) by adding at the end the following: 
"(2) This section shall not operate to prohibit the characterization 
or treatment of that portion of an annuity under this Act which is 
Ante, p. 411. 
not computed under section 3(a), 4(a), or 4(f) of this Act, or any 
portion of a supplemental annuity under this Act, as community 
property for the purposes of, or property subject to, distribution in 
accordance 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.". 
45 use 231m 
(b) The amendments made by this section shall apply with respect 
"°*® 
to annuity amounts payable for months beginning after the date of 
the enactment of this Act. 
TITLE V—OTHER AMENDMENTS 
ESTABUSHMENT OF SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 
SEC. 501. (a) The Railroad Retirement Act of 1974 is amended by 
inserting after section 15 the following new section: 
"SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 
45 use 23in-i. 
"SEC. 15A. (a) There is hereby created an account in the Treasury 
of the United States to be known as the 'Social Security Equivalent 
Benefit Account'. 
"(b) TRANSFERS, ETC., TO SOCIAL SECURITY EQUIVALENT BENEFIT 
ACCOUNT.— 
"(1) NET TIER i TAXES, ETC.—There is hereby appropriated to 
' 
the Social Security Equivalent Benefit Account for each fiscal 
year, beginning with the fiscal year beginning October 1, 1984, 
an amount equal to the sum of the following amounts: 
"(A) NET TIER i TAXES.—Amounts covered into the Treas-
ury (minus refunds) during such fiscal year under sections 
3201(a), 3211(a)(1), and 3221(a) of the Railroad Retirement 
Ante, pp. 420, 
Tax Act. 
^^^ 
"(B) INCOME TAX LIABILITIES ATTRIBUTABLE TO TAXATION OF 
SOCIAL SECURITY EQUIVALENT BENEFITS.—The amount which 
(but for this section) would have been transferred to the 
Railroad Retirement Account under section 121(e) of the 
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 439 
Social Security Amendments of 1983 to the extent that the Ante, p. 80. 
amount which would have been so transferred is attribut-
able to taxation of social security equivalent benefits. 
Amounts appropriated to the Railroad Retirement Account 
shall be appropriately reduced to take into account the amounts 
appropriated under this paragraph to the Social Security Equiv-
alent Benefit Account. 
"(2) FINANCIAL INTERCHANGE AMOUNTS.—On and after Octo-
ber 1, 1984, any amount which (but for this section) would have 
been transferred to the Railroad Retirement Account pursuant 
to paragraph (2) or (4) of section 7(c) of this Act shall be Ante, p. 430. 
transferred to the Social Security Equivalent Benefit Account. 
On and after October 1, 1984, no transfer shall be made to the 
Railroad Retirement Account pursuant to paragraph (2) or (4) of 
section 7(c) of this Act. 
"(3) CERTAIN CREDITED MILITARY SERVICE AMOUNTS.—TO the 
extent that the authorization for appropriation contained in 
section 15(b) is attributable to the cost of social security equiva- Ante, p. 431. 
lent benefits, on and after October 1,1984, any reference in such 
section to the Railroad Retirement Account shall be treated as a 
reference to the Social Security Equivalent Benefit Account. 
"(4) TIME AND MANNER OF CREDITS AND TRANSFERS.—Amounts 
appropriated or transferred to the Social Security Equivalent 
Benefit Account under this section shall be credited or trans-
ferred to such Account at the same time and in the same 
manner as such amounts would have been credited or trans-
ferred to the Railroad Retirement Account but for this section. 
"(c)(1) Except as otherwise provided in this section, amounts in the 
Social Security Equivalent Benefit Account shall be available only 
for purposes of paying social security equivalent benefits under this 
Act and to provide for the administrative expenses of the Board 
allocable to social security equivalent benefits. 
"(2) On and after October 1, 1984, any transfer which (but for this 
paragraph) would be required to be made from the Railroad Retire-
ment Account under paragraph (2) or (4) of section 7(c) shall be made 
from the Social Security Equivalent Benefit Account. 
"(d)(1) Whenever the Board finds that the balance in the Social 
Security Equivalent Benefit Account will be insufficient to pay 
social security equivalent benefits which it estimates are due in any 
month, it shall request the Secretary of the Treeisury to transfer 
from the Railroad Retirement Account to the credit of the Social 
Security Equivalent Benefit Account such moneys as the Board 
estimates will be necessary for the payment of such benefits, and the 
Secretary shall make such transfer. Whenever later in such month 
there is a transfer to the Social Security Equivalent Benefit Account 
under paragraph (2) or (4) of section 7(c) of this Act, the amount so 
transferred shall be immediately retransferred to the Railroad Re-
tirement Account. The amount retransferred under the preceding 
sentence shall not exceed the amount of any outstanding transfers 
under this paragraph from the Railroad Retirement Account plus 
such additional amounts determined by the Board to be equal to the 
loss of interest to the Railroad Retirement Account resulting from 
such outstanding transfers. 
"(2) Whenever the Board determines that— 
"(A) amounts in the Railroad Retirement Account will not be 
sufficient to pay the annuities which it estimates are due, or 
will become due, from such Account, and 
97 STAT. 440 
PUBLIC LAW 98-76—AUG. 12, 1983 
45 u s e 231n. 
"Social security 
equivalent 
benefits." 
45 u s e 231f. 
Effective date. 
45 u s e 231n-l 
note. 
45 u s e 231n-l 
note. 
Ante, pp. 420, 
421. 
Ante, p. 438. 
26 u s e 3101 et 
seq. 
Report to 
eongress. 
45 u s e 231f-l. 
Ante, pp. 420, 
421. 
"(B) the transfer under this paragraph will not jeopardize the 
present or future payment of social security equivalent benefits, 
the Board shall request the Secretary of the Treasury to transfer 
from the Social Security Equivalent Benefit Account to the Railroad 
Retirement Account such moneys as the Board estimates will be 
necessary for the payment of such annuities, and the Secretary shall 
make such transfer. No transfer under this paragraph shall be 
required to be repaid. 
"(e) The provisions of subsections (e), (f), and (g) of section 15 are 
hereby made applicable to the Social Security Equivalent Benefit 
Account. 
"(f)(1) For purposes of making payments of social security equiva-
lent benefits, references in the Act to the Railroad Retirement 
Account shall be treated as references to the Social Security Equiva-
lent Benefit Account. 
"(2) For purposes of this section, the term 'social security equiva-
lent benefits' means benefits payable under this Act which are of a 
kind taken into account in determining the amount of transfers 
made under section 7(c)(2) of this Act.". 
(b)(1) The amendment made by this section shall take effect on 
October 1,1984. 
(2)(A) The tier 1 portion of the tax imposed by section 3201, 3211, 
or 3221 of the Internal Revenue Code of 1954, as the case may be, 
with respect to compensation paid before 1985 shall be treated as 
described in subparagraph (A) of section 15A(bXl) of the Railroad 
Retirement Act of 1974. 
(B) For purposes of subparagraph (A), the tier 1 portion of any tax 
is so much of such tax as is determined by reference to the rates of 
taxes imposed by chapter 21 of the Internal Revenue Code of 1954. 
STUDY 
SEC. 502. On or before July 1 of 1985, and of each calendar year 
thereafter, the Railroad Retirement Board shall submit to the Con-
gress a report on the actuarial status of the railroad retirement 
system under various economic and employment assumptions. Such 
report shall include any recommendation for financing changes 
which might be advisable, including— 
(1) any adjustment the Railroad Retirement Board recom-
mends regarding the rates of taxes imposed by sections 3201(b), 
3211(a)(2), and 3221(b) of the Internal Revenue Code of 1954, and 
(2) if there are sufficient reserves in the Railroad Retirement 
Account, whether— 
(A) the rates of such taxes should be reduced, or 
(B) any part of the tax imposed by section 3221(b) of such 
Code should be diverted to the Railroad Unemployment 
Insurance Account to aid in the repayment of its debt to the 
Railroad Retirement Account. 
INCREASE IN MONTHLY WAGE BASE 
SEC. 503. (a)(1) Subsection (a) of section 8 of the Railroad Unem-
45 use 358. 
ployment Insurance Act is amended by striking out so much of such 
subsection as precedes the table contained therein and inserting in 
lieu thereof the following: 
"SEC. 8. (a) Every employer shall pay a contribution, with respect 
to having employees in his service, equal to the percentage deter-
PUBLIC LAW 98-76—AUG. 12, 1983 
97 STAT. 441 
mined as set forth below of so much of the compensation as is not in 
excess of $600 for any calendar month paid by him to any employee 
for any services rendered to him. If compensation is paid to an 
employee by more than one employer with respect to any such 
calendar month, the contributions required by this subsection shall 
not apply to more than $600 of the aggregate compensation paid to 
such employee by all such employers with respect to such calendar 
month, and each employer (other than a subordinate unit of a 
national railway-labor-organization employer) shall be liable for 
that portion of the contribution with respect to such compensation 
paid by all such employers which the compensation paid by him to 
such employee for services rendered during such month bears to the 
total compensation paid by all such employers to such employee for 
services rendered during such month. In the event that the compen-
sation so paid by such employers to the employee for services 
rendered during such month is less than $600, each subordinate unit 
of a national railway-labor-organization employer shall be liable for 
such portion of any additional contribution as the compensation 
paid by such employer to such employee for services rendered 
during such month bears to the total compensation paid by all such 
employers to such employee for services rendered during such 
month:". 
(2) Subsection (b) of section 8 of such Act is amended— 
(A) by striking out "after December 1975", and 
(B) by striking out "$400," and inserting in lieu thereof 
"$600,". 
(b) The first sentence of subsection (i) of section 1 of such Act is 45 use 351. 
amended by striking out "or in excess of $400 for any month after 
the month in which this Act was so amended" and inserting in lieu 
thereof "or in excess of $400 for any month after the month in which 
this Act was so amended and before January 1984, or in excess of 
$600 for any month after 1983". 
(c) The amendments made by this section shall apply to compensa-
tion paid for services rendered after December 31,1983. 
45 u s e 358. 
45 u s e 351 note. 
RAILROAD UNEMPLOYMENT COMPENSATION COMMITTEE 
SEC. 504. (a) Representatives of railroad labor and railroad man- 45 use 362 note. 
agement shall jointly establish (and jointly appoint the members of) 
a committee to be known as the "Railroad Unemployment Compen-
sation Committee" (hereinafter in this section referred to as the 
"Committee"). 
(b) The Committee shall consist of five members— 
Membership. 
(1) two of whom shall be representatives of railroad labor, 
(2) two of whom shall be representatives of railroad manage-
ment, and 
(3) one of whom shall be an individual who shall not be in the 
employment of or pecuniarily or otherwise interested in any 
employer (as defined in section 1 of the Railroad Retirement Act 
of 1974) or any organization of employees (as defined in section 1 45 use 231. 
of such Act). 
(c) The Committee shall review all aspects of the unemployment Review. 
and sickness insurance systems provided by the Railroad Unemploy-
ment Insurance Act including (but not limited to) a review o
f
— 
(1) benefit levels, 
(2) experience rating. 
(3) debt repayment and interest on debt, 
97 STAT. 442 
PUBLIC LAW 98-76—AUG. 12, 1983 
(4) waiting period for unemployment benefits and qualifying 
requirements, and 
(5) alternatives to the railroad unemployment insurance 
system such as covering railroad employees under the Federal-
State unemployment compensation system. 
Report to 
(d) Not later than April 1, 1984, the Committee shall submit a 
Congress. 
report to the Congress containing recommendations— 
(1) with respect to the review conducted under subsection (c), 
and 
(2) with respect to the repayment of funds which the railroad 
unemployment insurance system has borrowed from the Rail-
road Retirement Account. 
Any recommendation submitted under paragraph (2) shall contain 
adjustments in contributions and benefits which will enable the 
railroad unemployment compensation system to repay all loans 
from the Railroad Retirement Account before December 31, 2000. 
(e) The Railroad Retirement Board (and any other department, 
agency, or instrumentality of the Federal Government) is authorized 
to cooperate with, and assist, the Committee (at its request) in 
carrying out its duties by furnishing services, information, data, or 
other material which the Committee determines will be helpful in 
carrying out its duties. 
Approved August 12, 1983. 
LEGISLATIVE HISTORY—H.R. 1646: 
HOUSE REPORT No. 98-30, Pt. 1 (Comm. on Energy and Commerce) and Pt. 2 
(Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 129 (1983): 
Aug. 1, considered and passed House. 
Aug. 2, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 19, No. 32 (1983): 
Aug. 12, Presidential statement.