Railroad Retirement Act
PL 93-445 (H.R.15301), enacted 10/16/1974

88 STAT.] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1305 
time seeking a determination of just compensation in a court of compe-
tent jurisdiction. The Secretary shall allow for the orderly termination 
of all operations on real property acquired by the United States in 
parcels A, B, C, and D of this subsection, and for the removal of equip-
ment, facilities, and personal property therefrom: Provided^ That in 
no event shall the Secretary allow operations at the Marshall Hall 
Amusement Park to continue beyond January 1, 1980. The Secretary 
shall, on lands acquired for the purposes of this park, implement a 
development plan which will assure public access to, and public use 
and enjoyment of, such lands. To further the preservation objective of 
this Act, the Secretary of the Interior may accept donations of scenic 
easements in the land within the area designated as 'Scenic Protection 
Area' on the drawing referred to in subsection (b) of this section." 
(d) In section 4, delete "$5,657,000" and insert "$10,557,000". 
Approved October 15, 1974. 
Development 
plan. 
Appropriation. 
75 Stat. 780; 
86 Stat. 1063. 
Public Law 93-445 
AN ACT 
To amend the Railroad Retirement Act of 1937 to revise the retirement system 
for employees of employers covered thereunder, and for other purposes. 
October 16, 1974 
[H. R.15301] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Ame?'ica in Congress assembled^ 
tirement Act^f 
1937, amendment. 
TITLE I—THE RAILROAD RETIREMENT ACT OF 1974 
That the Railroad Retirement Act of 1937 is amended to read as 
"
^
^ "^"^ 228a. 
follows: 
'DEFINITIONS 
"SECTION 1. For the purposes of this Act— 
"(a) (1) The term 'employer' shall include— 
"(i) any express company, sleeping-car company, and carrier 
by railroad, subject to part I of the Interstate Commerce Act; 
"(ii) any company which is directly or indirectly owned or 
controlled by, or under common control with, one or more 
employers as defined in paragraph (i) of this subdivision, and 
which operates any equipment or facility or performs any service 
(except trucking service, casual service, and the casual operation 
of equipment or facilities) in connection with the transportation 
of passengers or property by railroad, or the receipt, delivery, 
elevation, transfer in transit, refrigeration or icing, storage, or 
handling of property transported by railroad; 
" (iii) any receiver, trustee, or other individual or body, judicial 
or otherwise, when in the possession of the property or operating 
all or any part of the business of any employer as defined in 
paragraph (i) or (ii) of this subdivision ; 
45 u s e 231. 
49 u s e 1. 
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PUBLIC LAW 93-445-OCT, 16, 1974 
[88 STAT. 
"(iv) any railroad association, traffic association, tariff bureau, 
demurrage bureau, weighing and inspection bureau, collection 
agency, and any other association, bureau, agency, or organiza-
tion which is controlled and maintained wholly or principally by 
two or more employers as defined in paragraph (i), (ii), or (iii) 
of this subdivision and which is engaged in the performance of 
services in connection with or incidental to railroad transpor-
tation; and 
"(v) any railway labor organization, national in scope, which 
has been or may be organized in accordance with the provisions 
of the Railway Labor Act, as amended, and its State and National 
legislative committees, general committees, insurance depart-
ments, and local lodges and divisions, established pursuant to the 
constitution or bylaws of such organization. 
"(2) Notwithstanding the provisions of subdivision (1) of this 
subsection, the term 'employer' shall not include— 
"(i) any company by reason of its being engaged in the 
mining of coal, the supplying of coal to an employer where 
delivery is not beyond the mine tipple, and the operation of 
equipment or facilities therefor, or in any of such activities; 
and 
"(ii) any street, interurban, or suburban electric railway, 
unless such railway is operating as a part of a general diesel-
railroad system of transportation, but shall not exclude any 
part of the general diesel-railroad system of transportation 
now or hereafter operated by any other motive power. The 
Interstate Commerce Commission is hereby authorized and 
directed upon request of the Board, or upon complaint of any 
party interested, to determine after nearing whether any line 
operated by electric power falls within the terms of this 
paragraph. 
" (b) (1) The term 'employee' means (i) any individual in the service 
of one or more employers for compensation, (ii) any individual who 
is in the employment relation to one or more employers, and (iii) an 
employee representative: Provided^ however^ That the term 'employee' 
shall include an employee of a local lodge or division defined as an 
employer in subsection (a) only if he was in the service of or in the 
employment relation to an employer as defined in paragraph (i) of 
subsection (a) (1) on or after August 29, 1935. 
"(2) The term 'employee' shall not include any individual while 
such individual is engaged in the physical operations consisting of 
the mining of coal, the preparation of coal, the handling (other than 
movement by rail with standard railroad locomotives) of coal not 
beyond the mine tipple, or the loading of coal at the tipple. 
" (c) The term 'employee representative' means any officer or official 
representative of a railway labor organization other than a labor 
organization included in the term 'employer' as defined in subsection 
(a) who before or after August 29, 1935, was in the service of an 
employer as defined in subsection (a) and who is duly authorized and 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1307 
designated to represent employees in accordance with the Railway 
Labor Act, as amended, and any individual who is regularly assigned 
to or regularly employed by such officer or official representative in 
connection with the duties of his office. 
"(d)(1) An individual is in the service of an employer whether 
his service is rendered within or without the United States if— 
"(i)(A) he is subject to the continuing authority of the 
employer to supervise and direct the manner of rendition of his 
service, or (B) he is rendering professional or technical services 
and is integrated into the staff of the employer, or (C) he is 
rendering, on the property used in the employer's operations, 
personal services the rendition of which is integrated into the 
employer's operations; and 
(ii) he renders such service for compensation, or a method of 
computing the monthly compensation for such service is pro-
vided in section 3 (j). 
"(2) Notwithstanding the provisions of subdivision (1) of this 
subsection— 
"(i) an individual shall be deemed to be in the service of an 
employer, other than a local lodge or division or a general com-
mittee of a railway-labor-organization employer, not conducting 
the principal part of its business in the United States only when he 
is rendering service to it in the United States; 
"(ii) an individual shall be deemed to be in the service of a 
local lodge or division of a railway-labor-organization employer 
not conducting the principal part of its business in the United 
States only if (A) all, or substantially all, the individuals con-
stituting the membership of such local lodge or division are 
employees of an employer conducting the principal part of its 
business in the United States; or (B) the headquarters of such 
local lodge or division is located in the United States; and 
"(iii) an individual shall be deemed to be in the service of a 
general committee of a railway-labor-organization employer not 
conducting the principal part of its business in the United States 
only if (A) he is representing a local lodge or division described 
in clause (A) or (B) of paragraph (ii); or (B) all, or substan-
tially all, the individuals represented by such general committee 
are employees of an employer conducting the principal part of its 
business in the United States: or (C) he acts in the capacity of a 
general chairman or an assistant general chairman of a general 
committee which represents individuals rendering service in the 
United States to an employer, but in such case if his office or 
headquarters is not located m the United States and the individ-
uals represented by such general committee are employees of 
an employer not conducting the principal part of its business 
in the United States, only such proportion of the remunera-
tion for such service shall be regarded as compensation as the 
proportion which the mileage in the Lf^nited States under the 
jurisdiction of such general committee bears to the total mileage 
45 use 151. 
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PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
under its jurisdiction, unless such mileage formula is inapplicable, 
in which case the Board may prescribe such other foi-mula as it 
finds to be equitable, and if the application of such mileage for-
mula, or such other formula as the Board may prescribe, would 
result in the compensation of the individual being less than 10 
per centum of his remuneration for such service no part of such 
remuneration shall be regarded as compensation. 
"'(3) Notwithstanding the provisions of subdivisions (1) and (2) 
of this subsection, an individual not a citizen or resident of the United 
States shall not be deemed to be in the service of an employer when 
rendering service outside the United States to an employer who is 
required imder the laws applicable in the place where the service is 
I'endered to employ therein, in w^hole or in part, citizens or residents 
thereof. For purposes of this subdivision, the laws applicable on 
August 29, 1935, in the place where the service is rendered shall be 
deemed to have been a})plicable there at all times prior to that date.. 
"(e) (1) An individual shall be deemed to have been in the employ-
ment relation to an employer on August 29,1935, if— 
"(i) he was on that date on leave of absence from his employ-
ment, expressly granted to him by the employer by whom he 
was employed, or by a duly authorized representative of such 
employer, and the grant of such leave of absence will have been 
established to the satisfaction of the Board before July 1947; 
" (ii) he w^as in the service of an employer after August 29,1935, 
and before January 1946 in each of six calendar months, whether 
or not consecutive; 
"(iii) before August 29, 1935, he did not retire and was not 
retired or discharged from the service of the last employer by 
whom he was employed or its corporate or operating successor, 
but (A) solely by reason of his physical or mental disability he 
ceased before August 29,1935, to be in the service of such employer 
and thereafter remained continuously disabled until he attained 
age sixty-five or until August 1945, or (B) solely for such last 
stated reason an employer by whom he was employed before 
August 29, 1935, or an employer who is its successor did not on oi-
after Augiist 29, 1935, and before August 1945 call him to return 
to service, or (C) if he was so called he was solely for such reason 
unable to render service in six calendar months as provided in 
paragraph (ii) ; or 
"(iv) he was on August 29, 1935, absent from the service of an 
employer by reason of a discharge which, within one year after 
the effective date thereof, was protested, to an appropriate labor 
representative or to the employer, as wrongful, and which was 
followed within ten years of the effective date thereof by his 
reinstatement in good faith to his former service with all his 
senority rights. 
"(2) Notwithstanding the provisions of subdivision (1) of this sub-
section, an individual shall not be deemed to have been in the employ-
ment relation to an employer on August 29, 1935, if before that date 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1309 
ho was granted a pension or gratuity on the basis of which a pension 
was awarded to him pursuant to section 6 of the Railroad Retirement 
Act of 1937, or if during the last payroll period before August 29,1935, 
45 use 228f. 
in which he rendered service to an employer he was not in the service 
of an employer, in accordance with subsection (d), with respect to any 
service in such payroll period, or if he could have been in the employ-
ment relation to an employer only by reason of his having been, 
either before or after August 29,1935, in the service of a local lodge or 
division defined as an employer in subsection (a). 
"(f)(1) The term 'years of service' shall mean the number of years 
an individual as an employee shall have rendered service to one or more 
employers for compensation or received remuneration for time lost, 
and shall be computed in accordance with the provisions of section 
3(i). Twelve calendar months, consecutive or otherwise, in each of 
which an employee has rendered such service or received such wages 
for lime lost, shall constitute a year of service. Ultimate fractions shall 
be taken at their actual value, except that if the individual will have 
had not less than one hundred twenty-six months of service, an ulti-
mate fraction of six months or more shall be taken as one year. 
" (2) Where service prior to August 29,1935, may be included in the 
computation of years of service as provided in subdivision (3) of 
section 3 (i), it may be included as to— 
"(i) service rendered to a person which was an employer on 
August 29, 1935, irrespective of whether such person was an 
employer at the time such service was rendered; 
"(ii) service rendered to any express company, sleeping-car 
company, or carrier by railroad which was a predecessor of a com-
pany which, on August 29, 1935, was an employer as defined in 
paragraph (i) of subsection (a) (1), irrespective of whether such 
predecessor was an employer at the time such service was 
rendered; and 
"(iii) service rendered to a person not an employer in the per-
formance of operations involving the use of standard railroad 
equipment if such operations were performed by an employer on 
August 29,1935. 
"(g) (1) For purposes of section 3(i) (2) of this Act, an individual 
shall be deemed to have been in 'military service' when commissioned 
or enrolled in the active service of the land or naval forces of the 
United States and until resignation or discharge therefrom; and the 
service of any individual in any reserve component of the land or naval 
forces of the United States, while serving in the land or naval forces 
of the United States for any period, even though less than thirty days, 
shall be deemed to have been active service in such force during such 
period. 
"(2) For purposes of section 3(i)(2) of this Act, a 'war service 
period' shall mean (A) any war period, or (B) with respect to any 
particular individual, any period during which such individual (i) 
having been in military service at the end of a war period, was 
required to continue in military service, or (ii) was required by call 
of the President, or by any Act of Congress or regulation, order, or 
proclamation pursuant thereto, to enter and continue in military serv-
ice, or (C) any period after September 7, 1939, with respect to which 
a state of national emergency was duly declared to exist which requires 
a strengthening of the national defense. 
" (3) For purposes of section 3 (i) (2) of this Act, a 'war period' shall 
be deemed to have begun on whichever of the following dates is the 
earliest: (A) the date on which the Congress of the United States 
declared war; or (B) the date as of which the Congress of the United 
States declared that a state of war has existed; or (C) the date on 
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PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
which war was declared by one or more foreign states against the 
United States; or (D) the date on which any part of the United States 
or any territory under its jurisdiction was invaded or attacked by any 
armed force of one or more foreign states; or (E) the date on which 
the United States engaged in armed hostilities for the pvirpose of 
preserving the Union or of maintaining in any State of the Union a 
'- 
republican form of government. 
"(4) For purposes of section 3(i) (2) of this Act, a 'war period' 
shall be deemed to have ended on the date on which hostilities ceased. 
"(h) (1) The term 'compensation' means any form of money remu-
neration paid to an individual for services rendered as an employee to 
one or more employers, or as an employee representative, including 
remuneration paid for time lost as an employee, but remuneration 
paid for time lost shall be deemed earned in the month in which such 
time is lost. A payment made by an employer to an individual through 
the employer's payroll shall be presumed, in the absence of evidence to 
the contrary, to be compensation for service rendered by such individ-
ual as an employee of the employer in the period with respect to which 
the payment is made. Compensation earned in any calendar month 
before 1947 shall be deemed paid in such month regardless of whether 
or when payment will have been in fact made, and compensation 
earned in any calendar year after 1946 but paid after the end of such 
calendar year shall be deemed to be compensation paid in the calendar 
year in which it will have been earned if it is so reported by the 
employer before February 1 of the next succeeding calendar year or 
if the employee establishes, subject to the provisions of section 9, the 
period during which such compensation will have been earned. 
"(2) An employee shall be deemed to be paid 'for time lost' the 
amount he is paid by an employer with respect to an identifiable 
period of absence from the active service of the employer, including 
absence on account of personal injury, and the amount he is paid by 
the employer for loss of earnings resulting from his displacement to a 
less remunerative position or occupation. If a payment is made by an 
employer with respect to a personal injury and includes pay for time 
lost, the total payment shall be deemed to be paid for time lost unless, 
at the time of payment, a part of such payment is specifically appor-
tioned to factors other than time lost, in which event only such part 
of the payment as is not so apportioned shall be deemed to be paid for 
time lost. 
"(3) Solely for purposes of determining amounts to be included in 
the compensation of an employee, the term 'compensation' shall also 
include cash tips received by an employee in any calendar month in 
the course of his employment by an employer unless the amount of 
such cash tips is less than $20. 
"(4) Tips included as compensation b^ reason of the provisions of 
subdivision (3) shall be deemed to be paid at the time a written state-
ment including such tips is furnished to the employer pursuant to 
26 use 6053. 
sectiou 6053(a) of the Internal Revenue Code of 1954 or, if no state-
ment including such tips is so furnished, at the time received. Tips so 
deemed to be paid in any month shall be deemed paid for services 
rendered in such month. 
"(5) In determining compensation, there shall be attributable as 
compensation paid to an employee in calendar months in which he is in 
military service creditable under section 3(i) (2), in addition to any 
other compensation paid to him with respect to such months— 
"(i) for each such calendar month prior to 1968, $160; 
"(ii) for each such calendar month after 1967 and prior to 
1975, $260; and 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1311 
"(iii) for each such calendar month after 1974, the amount 
which is creditable as such individual's 'wages' under the third 
paragraph of section 209 of the Social Security Act. 
42 use 409. 
"(6) Notwithstanding the provisions of the preceding subdivisions 
of this subsection, the term 'compensation' shall not include— 
"(i) tips, except as is provided under subdivision (3) of this 
subsection; 
"(ii) the voluntary payment by an employer, without deduc-
tion from the remuneration of the employee, of any tax now or 
hereafter imposed with respect to the compensation of such 
employee; 
"(iii) remuneration for service which is performed by a non-
resident alien individual for the period he is temporarily present 
in the United States as a nonimmigrant under subparagraph (F) 
or (J) of section 101(a) (15) of the Immigration and Nationality 
Act, as amended, and which is performed to carry out the pur- 
« use 1101. 
pose specified in subparagraph (F) or (J), as the case may be; 
"(iv) remuneration earned in the service of a local lodge or 
division of a railway-labor-organization employer with respect 
to any calendar month in which the amount of such remunera-
tion is less than $25; and 
"(v) remuneration for service as a delegate to a national 
or international convention of a 
railway-labor-organization 
employer if the individual rendering such service has not previ-
ously rendered service, other than as such a delegate, which may 
be included in his 'years of service'. 
" (i) The term 'Board' means the Railroad Retirement Board. 
"(j) The term 'company' includes corporations, associations, and 
joint-stock companies. 
"(k) The term 'employee' includes an officer of an employer. 
"(1) The term 'person' means an individual, a partnership, an asso-
ciation, a joint-stock company, a corporation, or the United States or 
any other governmental body. 
"(m) The term 'United States,' when used in a geographical sense, 
means the States and the District of Columbia. 
"(n) The term 'Social Security Act' means the Social Security Act "
^
^ use 1305. 
as amended from time to time. 
"(o) An individual shall be deemed to have 'a current connection 
with the railroad industry' at the time an annuity begins to accrue 
to him and at death if, in any thirty consecutive calendar months 
before the month in which an annuity under this Act begins to accrue 
to him, or the month in which he dies if that first occurs, he will have 
been in service as an employee in not less than twelve calendar months 
and, if such thirty calendar months do not immediately precede such 
month, he will not have been engaged in any regular employment 
other than employment for an employer or employment with the 
Department of Ti-ansportation, the Interstate Commerce Commission, 
the National Mediation Board, or the Railroad Retirement Board in 
the period before such month and after the end of such thirty months. 
For the purposes of section 2(d) only, an individual shall be deemed 
also to have a 'current connection with the railroad industry' if he 
will have completed ten years of service and (A) he would be neither 
fully nor currently insured under the Social Security Act if his 
service as an employee after December 31, 1936, were included in the 
term 'employment' as defined in that Act, or (B) he has no quarters 
of coverage under the Social Security Act. 
"(p) The term 'annuity' means a monthly sum which is payable on 
the first day of each calendar month for the accrual during the pre-
ceding calendar month. 
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PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
" (q) The terms 'quarter' and 'calendar quarter' shall mean a period 
of three calendar months ending on March 31, June 30, Septem-
ber 30, or December 31. 
"(r) For purposes of this Act, a person shall be considered to be 
42 use 1305. 
permanently insured under the Social Security Act on December 31, 
1974, if he or she would be fully insured within the meaning of sec-
42 use 414. 
tion 214(a) of that Act when he or she attains age 62 solely on the 
basis of his or her quarters of coverage under that Act acquired prioi 
to January 1,1975. 
"ANNUITY ELIGIBILITY REQUIREMENTS 
45 use 231a. 
"SEC. 2. (a) (1) The following-described individuals, if they shall 
have completed ten years of service and shall have filed application for 
annuities, shall, subject to the conditions set forth in subsections (e), 
(f), and (h), be entitled to annuities in the amounts provided under 
section 3 of this Act— 
"(i) individuals who have attained the age of sixty-five; 
"(ii) individuals who have attained the age of sixty and have 
completed thirty years of service; 
"(iii) individuals who have attained the age of sixty-two and 
have completed less than thirty years of service, but the annuity of 
such individuals shall be reduced by 1/180 for each calendar month 
that he or she is under age sixty-five when the annuity begins to 
accrue; 
"(iv) individuals who have a current connection with the rail-
road industry, whose permanent physical or mental condition is 
such as to be disabling for work in their regular occupation, and 
who (A) have completed twenty years of service or (B) have 
attained the age of sixty; and 
"(v) individuals whose permanent physical or mental condi-
tion is such that they are unable to engage in any regular employ-
ment. 
"(2) For the purposes of paragraph (iv) of subdivision (1), the 
Board, with the cooperation of employers and employees, shall secure 
the establishment of standards determining the physical and mental 
conditions which permanently disqualify employees for work in the 
several occupations in the railroad industry, and the Board, employers, 
and employees shall cooperate in the promotion of the greatest practi-
cable degree of uniformity in the standards applied by the several 
employers. An individual's condition shall be deemed to be disabling 
for work in his regular occupation if he will have been disqualified 
by his employer for service in his regular occupation in accordance 
with the applicable standards so established; if the employee will 
not have been so disqualified by his employer, the Board shall deter-
mine whether his condition is disabling for work in his regular occu-
pation in accordance with the standards generally established; and, 
if the employee's regular occupation is not one with respect to which 
standards will have been established, the standards relating to a reason-
ably comparable occupation shall be used. If there is no such compara-
ble occupation, the Board shall determine whether the employee's 
condition is disabling for work in his regular occupation by deter-
mining whether under the practices generally prevailing in industries 
in which such occupation exists such condition is a permanent disquali-
fication for work in such occupation. For purposes of this subdivision 
and paragraph (iv) of subdivision (1), an employee's 'regular occupa-
tion' shall be deemed to be the occupation in which he will have been 
engaged in more calendar months than the calendar months in which 
he will have been engaged in any other occupation during the last 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1313 
preceding five calendar years, whether or not consecutive, in each of 
, 
which years he will have earned wages or salary, except that, if an 
employee establishes that during the last fifteen consecutive calendar 
years he will have been engaged in another occupation in one-half or 
more of all the months in which he will have earned wages or salary, 
he may claim such other occupation as his regular occupation. 
"(3) Such satisfactory proof shall be made from time to time as 
prescribed by the Board, of the disability provided for in paragraph 
(iv) or (v) of subdivision (1) and of the continuance of such disability 
(according to the standards applied in the establishment of such 
disability) until the employee attains the age of sixty-five. If the 
individual fails to comply with the requirements prescribed by the 
Board as to proof of the continuance of the disability until he attains 
the age of sixty-five years, his right to an annuity by reason of such 
disability shall, except for good cause shown to the Board, cease, but 
without prejudice to his rights to any subsequent annuity to which 
he may be entitled. 
"(b) (1) An individual who— 
"(i) has attained age 60 and completed thirty years of service 
or attained age 65; 
" (ii) has completed twenty-five years of service; 
"(iii) is entitled to the payment of an annuity under sub-
section (a)(1);and 
"(iv) had a current connection with the railroad industry at 
the time such annuity began to accrue; 
shall, subject to the conditions set forth in subdivision (2) of this sub-
section and in subsections (e) and (h), be entitled to a supplemental 
annuity in the amount provided under section 3 of this Act: Provided^ 
however^ That in cases where an individual's annuity under subsec-
tion (a) (1) begins to accrue on other than the first day of the month, 
the amount of any supplemental annuity to which he is entitled for 
that month shall be reduced by one-thirtieth for each day with respect 
to which he is not entitled to an annuity under subsection (a) (1), 
"(2) No individual shall be entitled to a supplemental annuity 
provided by this subsection for any period after he renders any 
service as an employee for compensation after his supplemental an-
nuity closing date, which is the last day of the month following the 
month in which he attains age 65: Provided^ however^ That the sup-
plemental annuity closing date of an individual who attained age 65 
prior to January 1, 1975, shall be determined under section 3(j) (4) 
of the Kailroad Eetirement Act of 1937: Provided further, That for 
^^ use 228c. 
an employee whose supplemental annuity closing date occurs after he 
has completed at least 23 years of service but before he has completed 
25 years of service and before he would have been entitled (upon 
filing an application therefor) to monthly insurance benefits under 
section 202(a) of the Social Security Act if he had no service as an 
42 use 402. 
employee under this Act, such closing date shall be extended to the 
earlier of (A) the day before the first day of the first month for which 
he would (on application) be entitled to monthly insurance benefits 
under section 202(a) of the Social Security Act if he had no service 
as an employee under this Act, or (B) the last day of the first month 
for which he qualifies for a supplemental annuity under this subsection. 
"(3) The provisions of subdivision (2) shall not supersede the provi-
sions of any agreement reached through collective bargaining which 
provides for mandatory retirement at an age less than the applicable 
supplemental annuity closing date determined under such subdivision. 
" (c) (1) The spouse of an individual, if— 
"(i) such individual (A) is entitled to an annuity under sub-
section (a) (1) and (B) has attained the age of 60 and has com-
1314 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
pleted thirty years of service or has attained the age of 62, and 
"^ii) such spouse (A) has attained the age of 65, or (B) has 
attained the age of 60 and such individual has completed thirty 
years of service, or (C), in the case of a wife, has in her care 
(individually or jointly with her husband) a child who meets the 
qualifications prescribed in paragraph (iii) of subsection (d) (1) 
(without regard to the provisions of clause (B) of such 
paragraph), 
shall, subject to the conditions set forth in subsections (e), (f), and 
(h), be entitled to a spouse's annuity, if he or she has filed application 
therefor, in the amount provided under section 4 of this Act. 
"(2) A spouse who would be entitled to an annuity under subdi-
vision (1) if he or she had attained the age of 65 may elect upon or 
after attaining the age of 62 to receive such annuity, but the annuity 
in any such case shall be reduced by 1/180 for each calendar month 
that the spouse is under age 65 when the annuity begins to accrue. 
"(3) For the purposes of this Act, the term 'spouse' shall mean the 
wife or husband of an annuitant under subsection (a) (1) who (i) was 
married to such annuitant for a period of not less than one year 
immediately preceding the'day on which the application for a spouse's 
annuity is filed, or in the month prior to his or her marriage to such 
annuitant was eligible for an annuity under paragraph (i) or (iv) of 
subsection (d) (1) or, on the basis of disability, under paragraph (iii) 
thereof, or is the parent of such annuitant's son or daughter, if, as 
of the day on which the application for a spouse's annuity is filed, such 
wife or husband and such annuitant were members of the same house-
hold, or such wife or husband was receiving regular contributions 
from such annuitant toward her or his support, or such annuitant has 
been ordered by any court to contribute to the support of such wife or 
husband; and (ii) m the case of a husband, was receiving at least one-
half of his support from his wife at the time his wife's annuity under 
subsection (a) (1) began. 
"(d) (1) The following described survivors of a deceased employee 
who will have completed ten years of service and will have had a cur-
rent connection with the railroad industry at the time of his death 
shall, subject to the conditions set forth in subsections (g) and (h), 
be entitled to annuities, if they have filed application therefor, in 
the amounts provided under section 4 of this Act— 
"(i) a widow (as defined in section 216 (c) and (k) of the Social 
42 use 416. 
Security Act) or widower (as defined in section 216 (g) and 
(k) of the Social Security Act) of such a deceased employee who 
has not remarried and who (A) will have attained the age of sixty 
or (B) will have attained the age of fifty but will not have attained 
age sixty and is under a disability which began before the end of 
the period prescribed in subdivision (2), and who, in the case 
of a widower, was receiving at least one-half of his support from 
the deceased employee at the time of her death or at the time her 
annuity under subsection (a) (1) began; 
"(ii) a widow (as defined in section 216 (c) and (k) of the 
Social Security Act) of such a deceased employee who has not 
remarried and who (A) is not entitled to an annuity under para-
graph (i), and (B) at the time of filing an application for an 
annuity under this paragraph, will have in her care a child of 
such deceased employee, which child is entitled to an annuity 
under paragraph (iii) (other than an annuity payable to a child 
who has attained age 18 and is not under a disability) ; 
"(iii) a child (as defined in section 216 (e) and (k) of the 
Social Security Act) of such a deceased employee who (A) will 
be less than eighteen years of age, or (B) will be less than twenty-
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1315 
two years of age and a full-time student at an educational insti-
tution, or (C) will, without regard to his age, be under a disability 
which began before he attained age twenty-two or before the 
close of the eighty-fourth month following the month in which 
his most recent entitlement to an annuity under this paragraph 
terminated because he ceased to be under a disability, and who is 
unmarried and was dependent upon the employee at the time of 
the employee's death; and 
"(iv) a parent (as defined in section 202(h) (3) of the Social 
Security Act) of such a deceased employee who (A) will have 
^2 use 402. 
attained the age of sixty and (B) will have received at least one-
half of his or her support from such deceased employee at the 
time of the employees' death and (C) will not have remarried 
after the employee's death: Provided^ however^ That no parent 
will be entitled to an annuity under this paragraph on the basis 
of the deceased employee's compensation and years of service in 
any case where such employee died leaving a widow or widower 
or a child who is, or who might in the future become, entitled to 
an annuity under this subsection. 
"(2) The period referred to in clause (B) of subdivision (1) (i) 
is the period (i) beginning with the latest of (A) the month of the 
employee's death, (B) in the case of a widow, the last month for 
which she was entitled to an annuity under paragraph (ii) of sub-
division (1) as the widow of the deceased employee, or (C) the month 
in which the widow's or widower's previous entitlement to an annuity 
as the widow or widower of the deceased employee terminated because 
her or his disability had ceased and (ii) ending with the month before 
the month in which she or he attains age sixty, or, if earlier, with the 
close of the eighty-fourth month following the month with which 
such period began. 
"(3) For purposes of paragraph (i) or (iii) of subdivision (1), a 
widow, widow^er, or child shall be under a disability if her or his 
permanent physical or mental condition is such that she or he is unable 
to engage in any regular employment. The provisions of subsection 
(a) (3) of this section as to the proof of disability shall apply with 
regard to determinations with respect to disability under subdivision 
"(4) In determining for purposes of this subsection and subdivision 
(3) of subsection (c) whether an applicant is the wife, husband, widow, 
widower, child, or parent of a deceased employee as claimed, the rules 
set forth in section 216(h) of the Social Security Act shall be applied 
'^^ "^"^ ''^^• 
deeming, for this purpose, individuals entitled to an annuity under 
subsection (c) to be entitled to benefits under subsection (b) or (c) 
of section 202 of the Social Security Act and,individuals entitled to 
'•s use 402. 
an annuity under paragraph (i) or (ii) of subsection (d)(1) to be 
entitled to a benefit under subsection (e), (f), or (g) of section 202 
of the Social Security Act. For purposes of paragraph (iii) of sub-
division (1), a child shall be deemed to have been dependent upon 
his parent employee if the conditions set forth in section 202(d) (3), 
(4), or (9) of the Social Security Act are fulfilled. The provisions of 
paragraph (7) of section 202(d) of the Social Security Act (defining 
the terms 'full-time student' and 'educational institution') shall be 
anplied by the Board in the administration of this subsection as if 
the references therein to the Secretary were references to the Board. 
A child who attains age twenty-two at a time when he is a full-time 
student (as defined in subparagraph (A) of paragraph (7) of section 
202(d) of the Social Security Act and without the application of sub-
paragraph (B) of such paragraph) but has not (at such time) com-
pleted the requirements for, or received, a degree from a four-year 
1316 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
college or university shall be deemed (for purposes of determining 
his continuing or initial entitlement to an annuity under this subsec-
tion) not to have attained such age until the first day of the first month 
following the end of the quarter or semester in which he is enrolled 
at such time (or, if the educational institution in which he is enrolled 
is not operated on a quarter or semester system, until the first day of 
the first month following the completion of the course in which he is 
enrolled or until the first day of the third month beginning after such 
time, whichever first occurs). 
"(e) (1) No individual shall be entitled to an annuity under sub-
section (a) (1) until he shall have ceased to render compensated service 
to any person, whether or not an employer as defined in section 1(a) 
(but with the right to engage in other employment to the extent not 
prohibited by subdivision (3) or (4) of this subsection or by subsec-
^j^'Compensated 
J^JQJ^ (f))- As uscd lu this subsectiou, the term 'compensated service' 
shall not include any service as an elected public official of the United 
States, a State , or any political subdivision of a State. 
"(2) An annuity under subsection (a) (1) shall be paid only if the 
applicant shall have relinquished such rights as he may have to return 
to the service of an employer and of the person, or persons, by whom 
he was last employed: Provided^ however, That this requirement shall 
not apply to individuals mentioned in paragraphs (iv) and (v) of 
subsection (a) (1) prior to attaining age sixty-five: Provided 
further, 
That, notwithstanding the provisions of the preceding proviso and of 
clause (i) of subsection (c)(1) of this section, an annuity shall be 
paid to the spouse of an individual only if such individual shall have 
satisfied the requirements of this subdivision without regard to the 
preceding proviso: And provided further, That, notwithstanding the 
provisions of the first proviso of this subdivision and of clause (iii) 
of subsection (b) (1) of this section, a supplemental annuity shall be 
paid to an individual only if such individual shall have satisfied the 
requirements of this subdivision without regard to the first proviso 
thereof. 
"(3) No annuity under subsection (a) (1) or supplemental annuity 
under subsection (b) (1) shall be paid with respect to any month in 
which an individual in receipt of an annuity or supplemental annuity 
thereunder shall render compensated service to an employer or to the 
last person, or persons, by whom he was employed prior to the date 
on which the annuity under subsection (a) (1) began to accrue. 
Individuals receiving annuities under subsection (a) (1) shall report 
to the Board immediately all such compensated service. 
"(4) No annuity under paragraph (iv) or (v) of subsection (a) (1) 
shall be paid to an individual with respect to any month in which the 
individual is under age sixty-five and is paid more than $200 in earn-
ings from employment or self-employment of any form: 
Provided, 
however. That for purposes of this subdivision, if a payment in any one 
calendar month is for accruals in more than one calendar month, such 
payment shall be deemed to have been paid in each of the months in 
which accrued to the extent accrued in such month. Any such individ-
ual under the age of sixty-five shall report to the Board any such 
payment of earnings for such employment or self-employment before 
receipt and acceptance of an annuity for the second month following 
the month of such payment. A deduction shall be imposed, with respect 
to any such individual who fails to make such report, in the annuity or 
annuities otherwise due the individual, in an amount equal to the 
amount of the annuity for each month in which he is paid such earn-
ings in such employment or self-employment, except that the first 
deduction imposed pursuant to this sentence shall in no case exceed an 
amount equal to the amount of the annuity otherwise due for the first 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1317 
month with respect to which the deduction is imposed. If pursuant to 
the first sentence of this subdivision an annuity was not paid to an 
individual with respect to one or more months in any calendar year, 
and it is subsequently established that the total amount of such 
individual's earnings during such year as determined in accordance 
with that sentence (but exclusive of earnings for services described in 
subdivision (3)) did not exceed $2,400, the annuity with respect to 
such month or months, and any deduction imposed by reason of the 
failure to report earnings for such month or months under the third 
sentence of this subdivision, shall then be payable. If the total amount 
of such individual's earnings during such year (exclusive of earnings 
for services described in subdivision (3)) is in excess of $2,400, the 
number of months in such year with respect to which an annuity is not 
payable by reason of such first and third sentences shall not exceed 
one month for each $200 of such excess, treating the last $100 or more 
of such excess as $200; and if the amount of the annuity has changed 
during such year, any payments of annuities which become payable 
solely by reason of the limitations contained in this sentence shall be 
made first with respect to the month or months for which the annuity 
is larger. 
"(5) The annuity of a spouse under subsection (c) shall, with 
respect to any month, be subject to the same provisions of this subsec-
tion as the individual's annuity. In addition, the annuity of a spouse 
under subsection (c) shall not be payable for any month if the indi-
vidual's annuity under subsection (a)(1) is not payable for such 
month by reason of the provisions of this subsection. 
"(f)(1) That portion of the individual's annuity as is computed 
under section 3(a) of this Act on the basis of (A) his compensation 
and years of service subsequent to December 31, 1974, and (B) his 
wages and self-employment income derived from employment and 
self-employment under the Social Security Act and that portion of 
42 use 1305. 
the individual's annuity as is computed under section 3(h) of this Act 
shall be subject to deductions on account of work pursuant to the pro-
visions of section 203 of the Social Security Act in the same manner 
^2 use 403. 
as if such portion of such annuity were a monthly insurance benefit 
under that Act: Provided, hotiyever, That the provisions of this sub-
division shall be applicable to the annuity of an individual only if 
such individual would be fully insured under the Social Security Act 
on the basis of wages and self-employment income derived from 
employment and self-employment under that Act and on the basis of 
compensation derived from service as an employee after December 31, 
1974, if such service as an employee had been included in the term 
'employment' as defined in that Act. Any person in receipt of an an-
nuity subject to deduction under this subsection shall report to the 
Board the receipt of excess earnings as defined in paragraph (3) of 
section 203(f) of the Social Security Act. 
"(2) That portion of the spouse's annuity under subsection (c) 
which is derived from the portion of the individual's annuity subject 
to deductions under subdivision (1) and that portion of the spouse's 
annuity as is computed vmder section 4(e) of this Act shall be subject 
to deductions on account of work pursuant to the provisions of sec-
tion 203 of the Social Security Act in the same manner as if such 
portion of such spouse's annuity were a monthly insurance benefit 
under that Act. In addition, such portion of the spouse's annuity shall 
be subject to deductions if the individual's annuity is subject to deduc-
tions under subdivision (1) in the same manner as if such portion 
of such spouse's annuity were a monthly insurance benefit under the 
Social Security Act. 
38-194 O - 76 - 86 Pt. 1 
1318 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
" (g) (1) No annuity shall be paid to a survivor under subsection (d) 
with respect to any month in which such survivor renders service for 
compensation as an employee of an employer. Survivors receiving 
annuities under subsection (d) shall report to the Board immediately 
all such service for compensation. 
" (2) Deductions, in amounts and at sucli time or times as the Board 
shall determine, shall be made from any payments to which a sur-
vivor is entitled under subsection (d) until the total of such deductions 
equals such survivor's annuity under that subsection for any month, 
if for such month such survivor is under the age of seventy-two and 
is charged with excess earnings under section 203(f) of the Social 
42 use 403. 
Security Act or, having engaged in any activity outside the United 
States, would be charged under such section 203(f) with any excess 
earnings derived from such activity if it had been an activity within 
the United States. For purposes of this subdivision the Board shall 
have the authority to take such actions and to make such determina-
tions and such suspensions of payment of benefits in the manner and 
to the extent that the Secretary of Health, Education, and Welfare 
would be authorized to take or to make under section 203(h) (3) of 
the Social Security Act if the survivors were receiving the annuities to 
42 use 402. 
which this subdivision applies under section 202 of such Act: Provided^ 
however^ That in determining a survivor's excess earnings for a year 
for the purposes of this subdivision there shall not be included his 
income from employment or self-employment during months begin-
ning with the month with respect to which he ceases to be qualified 
for an annuity. Survivors receiving annuities under subsection (d) 
shall report to the Board the receipt of excess earnings described in 
this subdivision. 
" (h) (1) In the event military service credited under section 3(i) (2) 
of this Act is or has been used as the basis or as a partial basis for a 
pension, disability compensation, or any other gratuitous benefits pay-
able on a periodic basis under any other Act of Congress, any annuity 
of an individual under subsection (a)(1) which is based in part on 
such military service shall be reduced, with respect to a calendar month 
for all or part of which such other benefit is also payable, by (i) the 
proportion which the number of years of service by which such military 
service increases the years of service bears to the total years of 
service, or (ii) the aggregate amount of such pension or other benefit 
with respect to that month, whichever would result in the smaller 
reduction: Provided^ however^ That in no case shall the reduction 
under this subdivision operate to reduce the annuity of an individual 
under subsection (a) (1) below the amount it would have been if mili-
tary service had not been included in the individual's years of service. If 
the annuity of an individual under subsection (a)(1) is reduced for any 
month by reason of this subdivision, any annuity payable to the spouse 
of such individual for such month under subsection (c) shall be 
reduced proportionately. 
" (2) The supplemental annuity provided an individual by subsection 
(b) shall, with respect to any month, be reduced by the amount of the 
supplemental pension, attributable to the employer's contribution, 
that such individual is entitled to receive for that month under any 
other supplemental pension plan: Provided^ hoioever^ That the maxi-
mum of such reduction shall be equal to the amount of the supplemental 
annuity less any amount by which the supplemental pension is reduced 
by reason of the supplemental annuity. 
"(3) If a spouse entitled to an annuity under subsection (c) or a 
survivor entitled to an annuity under subsection (d) for any month is 
also entitled to annuity under subsection (a) (1) for such month, the 
annuity under subsection (c) or (d) shall be reduced, but not below 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1319 
zero, by an amount equal to the annuity under subsection (a)(1): Pro-
vided^ however^ That the provisions of this subdivision shall not apply 
if either the spouse or survivor or the individual upon whose earnings 
record the spouse's or survivor's annuity under subsection (c) or (d) 
is based rendered service as an employee to an employer, or as an 
employee representative, prior to January 1,1975. 
"(4) If an annuitant is entitled to more than one annuity under 
subsections (c) and (d) for a month, such annuitant shall be entitled 
to only the larger of such annuities for such month, except that, if such 
annuitant so elects, he shall instead be entitled to only the smaller of 
such annuities for such month. 
"COMPUTATION or EMPLOYEE ANNUITIES 
"SEC. 3. (a) (1) The annuity of an individual under section 2(a) (1) 
'^^ ^^^ ^aib. 
of this Act shall be in an amount equal to the amount (before any 
reduction on account of age and before any deductions on account of 
work) of the old-age insurance benefit or disability insurance benefit 
to which such individual would have been entitled under the Social 
Security Act if all of his or lier service as an employee after December 
'^'^ ^^^ ^3°^-
31, 1936, had been included in the term 'employment' as defined in 
that Act. 
"(2) For purposes of this subsection, individuals entitled to an 
annuity under paragraph (ii) of section 2(a) (1) of this xVct shall, 
except for purposes of recomputations in accordance with the provi-
sions of section 215(f) of the Social Security Act, be deemed to have 
attained age 65, and individuals entitled to an annuity under para-
graph (iv) or (v) of such section 2(a) (1) shall be deemed to be 
entitled to a disability insurance benefit under section 223 of the 
Social Security Act. 
"(b) (1) The amount of the annuity of an individual provided 
under subsection (a) of this section shall be increased by an amount 
equal to (A) the amount of the annuity to which such individual 
would have been entitled (witliout regard to the requirement that an 
individual's years of service be ten or more) under section 2(a) (1) 
of the Railroad Retirement Act of 1937 as in effect on December 31, 
"
^
^ use 228b. 
1974, on the basis of his compensation and years of service prior to 
January 1, 1975, deeming such individual (i) to be eligible for such 
an annuity and (ii) to be entitled to no other benefit under either that 
Act or the Social Security Act except a benefit under the Social 
Security Act in the amount computed in accordance with the provi-
sions of subclause (ii) of clause (C) of subsection (h)(1) or (h)(2) 
of this section, minus (B) the amount of the old-age insurance benefit 
to which such individual would have been entitled (before any deduc-
tions on account of w^ork and subject to the last sentence of this sub-
division) under the Social Security Act as in effect on December 31, 
1974, if all his service as an employee after December 31, 1936, and 
before January 1, 1975, were included in the term 'employment' as 
defined in that Act, and if such individual (i) were age 65 and other-
wise eligible for such a benefit and (ii) had no wages or self-
employment income under that Act other than wages derived from 
service as an employee after December 31, 1936, and before January 1, 
1975. For purposes of computing amounts under clause (A) of this 
subdivision, the Board shall have the authority to approximate the 
effect of the reductions prescribed by sections 3(a) (2) and 3(a) (3) 
of the Railroad Retirement Act of 1937 in cases where the individual 
45 use 228c. 
is entitled to a benefit under subsection (h)(1) or (h)(2) of this 
section. For purposes of this subdivision, 18 'benefit computation years' 
shall be used in calculating an individual's 'average monthly wage', 
42 use 415. 
42 use 423. 
1320 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
except in computing increases in amounts determined under clause 
(A) of this subdivision pursuant to section 3(a) (6) of the Eailroad 
45 use 2 28c. 
Retirement Act of 1937. 
"(2) The amount computed under subdivision (1) of this subsection 
shall be increased by 65 per centum of the percentage increase obtained 
by comparing the unadjusted Consumer Price Index for the month of 
September 1976 with the unadjusted Consumer Price Index for the 
September immediately preceding the earlier of (A) the calendar 
year in which the individual's annuity under section 2(a) (1) of this 
Act begins to accrue or (B) the calendar year 1981. 
"(c) If an individual entitled to an annuity under section 2(a) (1) 
of this Act will have rendered service as an employee to an employer, or 
as an employee representative, subsequent to December 31, 1974, the 
amount of the annuity of such individual provided under the preceding 
subsections of this section shall be increased by $1.50 for each of the 
first ten years of service that the individual has prior to January 1, 
1975, and by $1.00 for each year of service prior to January 1, 1975, 
that the individual has in excess of ten years. 
" (d) (1) The amount of the annuity of an individual provided under 
the preceding subsections of this section shall be increased according 
to the following formula: 
I = Y (.005A + 4) 
"(2) The amount computed under subdivision (1) of this subsection 
shall be increased according to the following formula: 
I = 2.6YC 
"(3) The amount computed under subdivisions (1) and (2) of this 
subsection shall be further increased according to the following 
formula: 
I=.005Y[.65BC-(B-D)] 
In no event shall this subdivision result in a decrease in the amounts 
computed under subdivisions (1) and (2). 
" (4) For purposes of the formulae set forth in this subsection: 
" 'I' represents the amount of increase in dollars; 
" 'A' represents the employee's average monthly compensation 
for service after 1974; 
" 'Y' represents the number of years of service of the employee 
after 1974; 
" ' C represents the percentage increase (converted to a decimal 
fraction) obtained by comparing the unadjusted Consumer Price 
Index for the month of September 1976 with the unadjusted Con-
sumer Price Index for the September immediately preceding the 
earlier of the calendar year in which the individual's annuity 
under section 2(a) (1) of this Act begins to accrue, or the calendar 
year 1981; 
" 'B' represents the employee's average monthly compensation 
for his years of service after 1974 (disregarding, for this purpose, 
compensation for any month after 1980 in excess of one-twelfth of 
the maximum taxable 'wages' as defined in section 3121 of the 
26 use 3121. 
Internal Revenue Code of 1954 for the calendar year 1980) ; 
" 'D' represents the employee's average monthly compensation 
for his years of service after 1974 (disregarding, for this purpose, 
compensation for any month after 1976 in excess of one-twelfth of 
the maximum taxable 'wages' as defined in section 3121 of the 
Internal Revenue Code for the calendar year 1976). 
"(e) The supplemental annuity of an individual under section 2(b) 
of this Act shall be $23 plus an additional amount of $4 for each year 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1321 
of service that the individual lias in excess of 25 years, but in no case 
shall the supplemental annuity exceed $43. 
"(f) (1) If the total amount of an individuaPs annuity and supple-
mental annuity computed under the preceding subsections of this sec-
tion would, before any reductions on account of age, before any 
reduction due to such individual's entitlement to a monthly insurance 
benefit under the Social Security Act, and disregarding any increases 
42 use 1305. 
in such total amount which become effective after the date on which 
such begins to accrue, exceed an amount equal to the sum of individ-
ual's annuity under section 2(a) (1) of this Act (A) 100 per centum 
of his 'final average monthly compensation' up to an amount equal to 
50 per centum of one-twelfth of the maximum annual taxable 'wages' 
(as defined in section 3121 of the Internal Revenue Code of 1954) 
26 use 3121. 
for the calendar year in which such individual's annuity under sec-
tion 2(a) (1) of this Act begins to accrue, plus (B) 80 per centum of 
so much of his 'final average monthly compensation' as exceeds 50 per 
centum of one-twelfth of the maximum annual taxable 'wages' (as 
defined in section 3121 of the Internal Revenue Code of 1954) for the 
calendar year in which such individual's annuity under section 2(a) 
(1) of this Act begins to accrue, the supplemental annuity of such 
individual first, and then, if necessary, the annuity amount of such 
individual as computed under subsections (b), (c), and (d) of this 
section, shall be reduced until such total amount of such individual's 
annuity and supplemental annuity equals such sum or until such sup-
plemental annuity and such annuity amount computed under subsec-
tions (b), (c), and (d) of this section are reduced to zero, whichever 
occurs first: Provided.^ however^ That the provisions of this subdivision 
shall not operate to reduce the total amount of an individual's annuity 
and supplemental annuity computed under the preceding subsections 
of this section below $1,200. For purposes of this subdivision, tlie 'final 
average monthly compensation' of an individual shall be determined 
by dividing the total compensation received by such individual in the 
two calendar years, consecutive or otherwise, in which he was credited 
with the highest total compensation during the ten-year period end-
ing with December 31 of the year in which such individual's annuity 
under section 2(a) (1) of this Act begins to accrue by 24. For pur-
poses of this subdivision, the term 'compensation' shall include 'com-
pensation' as defined in section 1(h) of this Act, 'wages' as defined 
in section 209 of the Social Security Act, 'self-employment income' as 
42 use 409. 
defined in section 211 (b) of the Social Security Act, and wages deemed 
42 use 411. 
to have been paid under section 217 or 229 of the Social Security Act ^42 use 417, 
on account of military service: Provided^ however^ That in no case 
shall the compensation with respect to any calendar month exceed 
the limitation on the compensation for such month prescribed in sub-
section (j) of this section. Wages and self-employment income included 
as compensation for purposes of this subdivision shall, in the absence 
of evidence to the contrary, be presumed to have been paid in equal 
proportions with respect to all months in the calendar quarter in 
which credited, in the case of wages, or in equal proportions with 
respect to all months in the calendar year in which credited, in the case 
of self-employment income. 
"(2) If, in the case of an individual whose annuity under section 
2(a)(1) of this Act began to accrue prior to January 1, 1983, the 
annuity (before any reduction due to such individual's entitlement to 
a monthly insurance benefit under the Social Security Act and dis-
regarding any amount provided by subsection (h) of this section) 
plus the supplemental annuity to which such individual is entitled 
for any month under this Act, together with the annuity, if any, of 
the spouse of such individual (before any reduction &ue to such 
4 2 9 . 
1322 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
spouse's entitlement to a wife's or husband's insurance benefit under 
42 use 1305. 
i]^Q Social Security Act and disregarding any amount provided by 
section 4(e) of this Act), before any reductions under the provisions 
of section 2(f) of this Act, is less than the total amount which would 
have been payable to such individual and his spouse for such month, 
on the basis of the individual's compensation and years of service, 
45 use 228a. 
yudcr the provisions of the Railroad Retirement Act of 1937 as in 
effect on December 31, 1974, disregarding, for purposes of the com-
putations under such Raih'oad Retirement Act of 1937, compensation 
for any month after December 31, 1974, in excess of one-twelfth of 
the maximum annual taxable 'wages' (as defined in section 3121 of the 
26 use 3121. 
Internal Revenue Code of 1954) for the calendar year 1974, the 
annuity of such individual and the annuity of such spouse, if any, 
shall be increased, without regard to the provisions of subdivision (1) 
of this subsection, proportionately so as to equal such total amount. 
For the purpose of computing amounts under this subdivision, the 
Board shall have the authority to approximate the effect of the 
reductions prescribed by sections 3(a)(2) and 3 (a) (3) of the Railroad 
45 use 228c. 
Retirement Act of 1937. For purposes of computing amounts payable 
under the Railroad Retirement Act of 1937, any increases in the 
amounts determined under the first proviso of section 3(e) of such 
Act which would have become effective after December 31, 1974, 
shall be disregarded. 
"(3) If for any month in which an annuity accrues and is payable 
under this Act the annuity to which an individual is entitled under this 
Act (or would have been entitled except for a reduction pursuant to a 
joint and survivor election), together with the annuity, if any, of the 
spouse of such individual, is less than the total amount, or the addi-
tional amount, which would have been payable to all persons for such 
month under the Social Security Act if such individual's service as an 
employee after December 31, 1936, were included in the term 'employ-
ment' as defined in that Act, such annuity or annuities shall be 
increased proportionately to such total amount, or such additional 
amount: Provided, however, That if an annuity accrues to an individ-
ual or a spouse for a part of a month, the amount payable for such part 
of a month under this subdivision shall be one-thirtieth of the amount 
payable under this subdivision for an entire month, multiplied by the 
number of days in such part of a month. For purposes of this subdivi-
sion, (i) persons not entitled to an annuity under section 2 of this Act 
shall not be included in the computation under this subdivision except a 
spouse who could qualify for an annuity under section 2(c) of this Act 
if the individual from whom the spouse's annuity under this Act would 
derive had attained age 60 or 62, as the case may be, and such individ-
ual's children who meet the definition as such contained in section 216 
42 use 416. 
^g^ Qf ^^Q Social Security Act; (ii) after an annuity has been certified 
for payment and this subdivision was inapplicable after allowing for 
42 use 423. 
any waiting period under section 223 (c) (2) of the Social Security Act, 
and after having considered the inclusion of all persons who were then 
eligible for inclusion in the computation under this subdivision, or 
was then applicable but later became inapplicable, any recertification 
in such annuity under this subdivision shall not take into account per-
sons not entitled to an annuity under section 2 of this Act except a 
SDOuse who could qualify for an annuity under section 2(c) of this Act 
when she attains age 60 or 62, as the case may be, if the individual from 
whom the spouse's annuity would derive had attained age 60 or 62, as 
the case may be, and who was married to such individual at the time he 
applied for his annuity; and (iii) in computing the amount to be paid 
under this subdivision the only benefits under title II of the Social 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1323 
Security Act which shall be considered shall be those to which the 
''^ use 401,, 
persons included in the comj)utation are entitled. 
"(g) Those portions of the annuity of an individual as are computed 
under subsections (b) and (d) of this section shall, if such individual's 
annuity under section 2(a)(1) of this Act began to accrue on or before 
the date on which the applicable increase under this subsection becomes 
effective, be increased by 32.5 per centum of the percentage increase, 
if any (rounded to the nearest one-tenth of 1 percent), obtained by 
comparing (A) the unadjusted Consumer Price Index for the calendar 
quarter ending March 31, 1977, with such index for the calendar quar-
ter ending March 31, 1976, (B) the unadjusted Consumer Price Index 
for the calendar quarter ending March 31, 1978, with the higher of 
(i) such index for the calendar quarter ending March 31, 1977, or 
(ii) such index for the calendar quarter ending March 31, 1976, (C) 
the unadjusted Consumer Price Index for the calendar quarter ending 
March 31, 1979, with the highest of (i) such index for the calendar 
quarter• ending March 31, 1978, (ii) such index for the calendar 
quarter ending March 31, 1977, or (iii) such index for the calendar 
quarter ending March 31, 1976, and (D) the unadjusted Consumer 
Price Index for the calendar quarter ending March 31, 1980, with 
the highest of (i) such index for the calendar quarter ending March 31, 
1979, (ii) such index for the calendar quarter ending March 31, 1978, 
(iii) such index for the calendar quarter ending March 31, 1977, or 
(iv) such index for the calendar quarter ending March 31, 1976. The 
unadjusted Consumer Price Index for any calendar quarter shall be 
the arithmetical mean of such index for the three months in such 
quarter. The increases provided under clauses (A), (B), (C), and 
(D) of this subsection shall be effective on June 1, 1977, June 1, 1978, 
June 1,1979, and June 1,1980, respectively. 
"(h) (1) The amount of the annuity provided under subsections (a) 
through (d) of this section of an individual who (A) will have (i) 
rendered service as an employee to an employer, or as an employee 
representative, during the calendar year 1974, or (ii) had a current 
connection with the railroad industry on December 31, 1974, or at the 
time his annuity under section 2(a) (1) of this Act began to accrue, 
or (iii) completed twenty-five years of service prior to January 1, 
1975, and (B) will have (i) completed ten years of service prior to 
January 1, 1975, and (ii) been permanently insured under the Social 
Security Act on December 31, 1974, shall be increased by an amount 
'^'^ ^sc 1305. 
equal to the amount by which (C) the sum of (i) the primary insur-
ance amount to which such individual would have been entitled, upon 
the attainment of age 65 (or, if later, for January 1975), under the 
provisions of the Social Security Act as in effect on December 31,1974, 
if his service as an employee after December 31, 1936, and prior to 
January 1, 1975, were included in the term 'employment' as defined in 
that Act and if he had no wages or self-employment income under that 
Act other than wages derived from such service as an employee, and 
(ii) the primary insurance amount to which such individual would 
have been entitled, upon the attainment of age 65 (or, if later, for 
January 1975), under the provisions of the Social Security Act as in 
effect on December 31,1974, on the basis of his wages and self-employ-
ment income derived from employment and self-employment under 
that Act prior to January 1, 1975, exceeds (D) the primary insurance 
amount to which such individual would have been entitled, upon the 
attainment of age 65 (or, if later, for January 1975), under the pro-
visions of the Social Security Act as in effect on December 31,1974, on 
the basis of his wages and self-employment income derived from 
employment and self-employment under that Act prior to January 1, 
1975, and on the basis of compensation derived from service as an 
1324 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
employee after December 31,1936, and prior to January 1,1975, if such 
service as an employee had been included in the term 'employment' 
as defined in that Act. 
"(2) The amount of the annuity provided under subsections (a) 
through (d) of this section to an individual who (A) will not have 
met the conditions set forth in subclause (i), (ii), or (iii) of clause 
(A) of subdivision (1) of this subsection, but (B) will have (i) com-
pleted ten years of service prior to January 1, 1975, and (ii) been 
4
2 use 1305. 
permanently insured under the Social Security Act as of December 31 
of the calendar year prior to 1975 in which he last rendered service 
as an employee to an employer, or as an employee representative, shall 
be increased by an amount equal to the amount by which (C) the sum 
of (i) the primary insurance amount to which such individual would 
have been entitled, upon the attainment of age 65 (or, if later, for 
January 1975), under the provisions of the Social Security Act as in 
effect on December 31, 1974, if his service as an employee after Decem-
ber 31, 1936, and prior to January 1, 1975, were included in the term 
'employment' as defined in that Act and if he had no wages or self-
employment income under that Act other than wages derived from 
such service as an employee, and (ii) the primary insurance amount 
to which such individual would have been entitled, upon the attain-
ment of age 65 (or, if later, for January 1975), under the provisions of 
the Social Security Act as in effect on December 31, 1974, on the basis 
of his wages and self-employment income derived from employment 
and self-employment under that Act as of December 31 of the calendar 
year prior to 1975 in which he last performed service as an employee 
under this Act, exceeds (D) the primary insurance amount to which 
such individual would have been entitled, upon the attainment of age 
65 (or, if later, for January 1975), under the provisions of the Social 
Security Act as in effect on December 31, 1974, on the basis of his 
wages and self-employment income derived from employment and 
self-employment under that Act as of December 31 of the calendar 
year prior to 1975 in which he last performed service as an employee 
under this Act and on the basis of compensation derived from service 
as an employee after December 31,1936, and prior to January 1,1975, if 
such service as an employee had been included in the term 'employ-
ment' as defined in that Act. 
"(3) The amount of the annuity provided under subsections (a) 
through (d) of this section of an individual who (A) will have (i) 
rendered service as an employee to an employer, or as an employee 
representative, during the calendar year 1974, or (ii) had a current 
connection with the railroad industry on December 31, 1974, or at the 
time his annuity under section 2(a) (1) of this Act began to accrue, or 
(iii) completed twenty-five years of service prior to January 1, 1975, 
and (B) will have completed ten years of service prior to January 1, 
1975, and is the wife, husband, widow, or widower of a person who will 
have been permanently insured under the Social Security Act on 
December 31,1974, shall be increased by an amount equal to the smaller 
of (C) the wife's, husband's, widow's, or widower's insurance benefit 
to which such individual would have been entitled, upon attaining age 
65 (or, if later, for January 1975), under the provisions of the Social 
Security Act as in effect on December 31, 1974, on the basis of such 
person's wages and self-employment income derived from employment 
and self-employment under that Act prior to January 1, 1975, or 
(D) the primary insurance amount to which such individual would 
have been entitled upon attaining age 65 (or, if later, for January 
1975), under the provisions of the Social Security Act as in effect on 
December 31, 1974, on the basis of such individual's wages and self-
employment income derived from employment and self-employment 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1325 
under that Act prior to January 1,1975, and on the basis of compensa-
tion derived from service as an employee after December 31,1936, and 
prior to January 1, 1975, if such service as an employee had been 
included in the term 'employment' as defined in that Act. 
"(4) The amount of the annuity provided under subsections (a) 
through (d) of this section of an mdividual who (A) will not have 
met the conditions set forth in subclause (i), (ii), or (iii) of clause 
(A) of subdivision (3) of this subsection, but (B) will have com-
pleted ten years of service prior to January 1, 1975, and is the wnfe, 
husband, widow, or widower of a person w^ho will have been perma-
nently insured under the Social Security Act as of December 31 of the 
"
^
^ "^^ ^^°5-
calendar year prior to 1975 in which such individual last rendered serv-
ice as an employee to an employer, or as an employee representative, 
shall be increased by an amount equal to the smaller of (C) the wife's, 
husband's, widow's, or widower's insurance benefit to which such indi-
vidual would have been entitled, upon attaining age 65 (or, if later, for 
January 1975), under the provisions of the Social Security Act as in 
effect on December 31, 1974, on the basis of such person's wages and 
self-employment income derived from employment and self-employ-
ment under that Act as of December 31 of the calendar year prior to 
1975 in which such individual last performed service as an employee 
under this Act or (D) the primary insurance amount to which such 
individual would have been entitled upon attaining age 65 (or, if later, 
for January 1975), under the provisions of the Social Security Act as 
in effect on December 31, 1974, on the basis of such individual's wages 
and self-employment income derived from employment and self-
employment under that Act as of December 31 of the calendar year 
prior to 1975 in w^hich such individual last performed service as an 
employee under this Act and on the basis of compensation derived 
from service as an employee after December 31, 1936, and prior to 
January 1, 1975, if such service as an employee had been included in 
the term 'employment' as defined in that Act. 
"(5) The amount computed under subdivision (1), (2), (3), or (4) 
of this subsection shall be increased by the same percentage, or per-
centages, as benefits under the Social Security Act are increased, or 
would have been increased had there been no general benefit increases 
under the Social Security Act, pursuant to the automatic cost-of-living 
provisions of section 215 (i) of that Act, during the period from Janu-
ary 1,1975, to the date on which the individual's annuity under section 
2(a)(1) of this Act began to accrue. 
"(i) (1) The 'years of service' of an individual shall include all his 
service subsequent to December 31, 1936. 
"(2) The 'years of service' of an individual shall also include his 
voluntary or involuntary military sei'vice, Avithin or without the 
United States, during any war service period: Provided^ however^ 
That such military service shall be included only if, prior to the 
beginning of his military sei'vice and in the same calendar year in 
which such military service began, or in the next preceding calendar 
year, the individual rendered service for compensation to an employer 
or to a person service to which is otherwise creditable under this Act, 
or lost time as an employee for which he received remuneration, or 
was serving as an employee I'epresentative: Provided further^ That 
such military service shall be included only subject to and in accordance 
with the provisions of subdivisions (1) and (3) of this subsection in 
the same manner as though military service were service rendered 
as an employee: And provided further^ That such military service 
rendered after December 1956 shall not be included with respect to any 
month if (A) any benefits are payable for that month under the Social 
Security Act on the basis of such individual's wages and self-employ-
42 use 415. 
Years of serv-
1326 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
ment income, (B) such military service was included in the computa-
tion of such benefits, and (C) the inclusion of such military service in 
the computation of such benefits resulted (for that month) in benefits 
not otherwise payable or in an increase in the benefits otherwise pay-
able : And provided further, That an individual who entered military 
service prior to a war service period shall not be regarded as having 
been in military service in a war service period with respect to any 
part of the period for which he entered such military service. 
"(3) The 'years of service' of an individual who was an employee 
on August 29, 1935, shall, if the total number of his 'years of service' 
as determined under subdivisions (1) and (2) is less than thirty, 
also include his service prior to January 1,1937, but not so as to make 
his total years of service exceed thirty: Provided, hoioever, That with 
respect to any such individual who rendered service to any employer 
subsequent to December 31, 1936, and who on August 29, 1935, was 
not an employee of an employer conducting the principal part of its 
business in the United States, no 'greater proportion of his service 
rendered prior to January 1, 1937, shall be included in his 'years of 
service' than the proportion which his total compensation (with-
out regard to any limitation on the amount of compensation other-
wise provided in this Act) for service subsequent to December 31, 
1936, rendered anywhere to an employer conducting the principal part 
of its business in the United States or rendered in the United States 
to any other employer bears to his total compensation (without regard 
to any limitation on the amount of compensation otherwise provided 
in this Act) for service rendered anywhere to an employer subsequent 
to December 31, 1936. Where the 'years of service' include only part 
of the service prior to January 1,1937, the part included shall be taken 
in reverse order beginning wdth the last calendar month of such service. 
^^ThK^^^^nm^^., 
"(j) The 'average monthly compensation' shall be the average com-
" ""'""""" pensation paid to an employee with respect to calendar months 
included in his 'years of service', except (1) that with respect to service 
prior to January 1, 1937, the monthly compensation shall be the aver-
age compensation paid to an employee with respect to calendar months 
included in his years of service in the years 1924-1931, and (2) the 
amount of compensation paid or attributable as paid to him with 
respect to each month of service before September 1941 as a station 
employee whose duties consisted of or included the carrying of pas-
sengers' hand baggage and otherwise assisting passengers at passenger 
stations and whose remuneration for service to the employer was, in 
whole or in substantial part, in the forms of tips, shall be the 
monthly average of the compensation paid to him as a station employee 
in his months of service in the period September 1940 through August 
1941: Provided, 
however, That where service in the period 1924 
through 1931 in the one case, or in the period September 1940 through 
August 1941 in the other case, is, in the judgment of the Board, insuffi-
cient to constitute a fair and equitable basis for determing the amount 
of compensation paid or attributable as paid to him in each month of 
service before 1937, or September 1941, respectively, the Board shall 
determine the amount of such compensation for each such month in 
such manner as in its judgment shall be fair and equitable. In com-
puting the monthly compensation, no part of any month's compensa-
tion in excess of $300 for any month before July 1, 1954, or in excess 
of $350 for any month after June 30,1954, and before June 1,1959, or 
in excess of $400 for any month after May 31,1959, and before Novem-
ber 1, 1963, or in excess of $450 for any month after October 31, 1963, 
and before October 1, 1965, or in excess of (i) $450, or (ii) an amount 
equal to one-twelfth of the current maximum annual taxable 'wages' as 
monthly compen 
sation 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1327 
defined in section 3121 of the Internal Revenue Code of 1954, whichever 
^^ ^^^ ^^2^-
is greater, for any month after September 30,1965, shall be recognized. 
If the employee earned compensation in service after June 30,1937, and 
after the last day of the calendar year in which he attained age sixty-
five, such compensation and service shall be disregarded in computing 
the average monthly compensation if the result of taking such compen-
sation into account in such computation would be to diminish his 
annuity. If the 'average monthly compensation' computed under this 
subsection is not a multiple of $1, it shall be rounded to the next lower 
multiple of $1. Where an employee claims credit for months of service 
rendered within two years prior to his retirement from the service of an 
employer, with respect to which the employer's return pursuant to sec-
tion 9 of this Act has not been entered on the records of the Board 
^°^^- P- ^343. 
before the employee's annuity could otherwise be certified for payment, 
the Board may, in its discretion (subject to subsequent adjustment at 
the request of the employee) include such months in the computation of 
the annuity without further verification and may consider the com-
pensation for such months to be the average of the compensation for 
months in the last period for which the employer has filed a return of 
the compensation of such employee and such return has been entered 
on the records of the Board. 
"(k) The annuity of an individual who shall have been an employee 
representative shall be determined in the same manner and with the 
same effect as if the employee organization by which he shall have been 
employed were an employer. 
"(1) In cases where an annuity awarded under paragraph (iii) of 
section 2(a) (1) or under section 2(c)(2) of this Act is increased either 
by a change in the law or by a recomputation, the reduction for the 
increase in the annuity shall be determined separately and the period 
with respect to which the reduction applies shall be determined as if 
such increase were a separate annuity payable for and after the first 
month for which such increase is effective. 
"(m) The annuity of any individual under subsection (a) of this 
section for any month shall be reduced, but not below zero, by the 
amount of any monthly benefit payable to that individual for that 
month under title II of the Social Security Act. 
42 use 401. 
"COMPUTATION OF SPOUSE AND SURVIVOR ANNUITIES 
"SEC. 4. (a) (1) The annuity of a spouse of an individual under sec- 
^s use 231c. 
tion 2(c) of this Act shall be in an amount equal to the amount (before 
any reduction on account of age and 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 such individual's service as an employee after Decem- 
42 use 1305. 
ber 31, 1936, had been included in the term 'employment' as defined in 
that Act. 
"(2) For purposes of this subsection, spouses entitled to an annuity 
under clause (B) of paragraph (ii) of section 2(c)(1) of this Act 
shall be deemed to have attained age 65. 
"(b) The amount of the annuity of a spouse of an individual 
provided under subsection (a) of this section shall be increased 
by an amount equal to 50 per centum of that portion of the indi-
vidual's annuity as is computed under subsections (b), (c), and (d) 
of section 3 of this Act: Provided, 
however, That if the spouse is 
entitled to an annuity amount provided by subsection (e)(1) or (e) 
(2) of this section, the amount of such spouse's annuity provided by 
the preceding provisions of this subsection shall be reduced by the 
amount by which the amount computed in accordance with the 
notes, 401 note. 
45 use 
45 use 
42 use 
note. 
Ante, 
p. 
228b. 
228c. 
401 
1312 
1328 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
provisions of clause (C) of subsection (e)(1) or (e)(2) of this 
section was increased by the Social Security Amendments of 1965, 
42^usc 302^^ 
1967, and 1969, disregarding (A) the amount of any such increase 
resulting from the Social Security Amendments of 1967 equal to, 
or less than, the excess of $5 over 5.8 per centum of the lesser of (i) 
the amount computed under clause (C) of subsection (e)(1) or 
(e) (2) of this section before any increases derived from legislation 
enacted after the Social Security Amendments of 1967 or (ii) the 
amount of the spouse's annuity to which such spouse would have been 
entitled under section 2(e) of the Railroad Retirement Act of 1937, 
without regard to section 3(a) (2) of that Act or to increases derived 
from legislation enacted after 1968 and before any reduction on 
account of age, on the basis of the individual's compensation and years 
of service prior to January 1, 1975, and (B) the amount of any such 
increase resulting from the Social Security Amendments of 1969 equal 
to, or less than, $5: Provided further^ That if the spouse is entitled 
to an annuity under section 2(a) (1) of this Act, the amount of the 
annuity of such spouse under this subsection shall, subject to the third 
proviso of this subsection, be increased by an amount equal to the 
amount by which the amount of the annuity of such spouse provided 
under subsection (a) of this section was reduced by reason of the 
provisions of subsection (i) (2) of this section: And provided 
fur-
ther^ That if the total of (A) the amount of the spouse's annuity 
provided under subsection (a) of this section (before any reduction 
due to such spouse's entitlement to a wife's or husband's insurance 
42 use 1305. 
benefit under the Social Security Act), or, in the case of a spouse 
entitled to an annuity under section 2(a) (1) of this Act or to an old-
age insurance benefit or a disability insurance benefit under section 
4
^
2 use 401, 
202 or 223 of the Social Security Act, the amount to which such spouse 
would be entitled under subsection (a) if she or he were not entitled 
to an annuity under section 2(a) (1) of this Act or to an old-age insur-
ance benefit or a disability insurance benefit under section 202 or 223 
of the Social Security Act, plus (B) the amount of her or his annuity 
under this subsection would, with respect to any month, before any 
reductions on account of age, exceed 110 per centum of an amount 
equal to the maximum amount which could be paid to anyone, with 
respect to such month, as a wife's insurance benefit under section 
202(b) of the Social Security Act, the amount of the annuity of such 
spouse under this subsection shall be reduced until the total of such 
annuity amounts equals 110 per centum of such amount. The Board 
shall have the authority to approximate the amount of any reduction 
prescribed by the first proviso of this subsection. 
"(c) If (A) the total amount of the annuity of a spouse of an 
individual as computed under the preceding subsections of this section 
as of the date on which the annuity of such individual under section 
2(a) (1) of this Act began to accrue (before any reduction due to such 
spouse's entitlement to a wife's or husband's insurance benefit under 
the Social Security Act) plus (B) the total amount of the annuity and 
supplemental annuity of the individual (before any reduction due 
to such individual's entitlement to a monthly insurance benefit under 
the Social Security Act) subject to the provisions of section 3(f) (1) 
of this Act would, before any reductions in the amounts specified in 
clauses (A) and (B) on account of age and disregarding any increases 
in such amounts which become effective after the date on which the 
individual's annuity under section 2(a)(1) of this Act began to 
accrue, exceed the amount determined under clauses (A) and (B) of 
section 3(f) (1) of this Act, the portion of the annuity of such spouse 
determined under subsection (b) of this section as of the date on 
which the individual's annuity under section 2(a) (1) began to accrue 
423 
Ante, 
p. 1319. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1329 
shall be reduced until the sum of the amounts specified in clauses (A) 
and (B) of this subsection equals the amount determined under clauses 
(A) and (B) of section 3(f) (1) or until such amount under subsection 
(b) is reduced to zero, whichever occurs first. If, after such amount 
under subsection (b) is reduced to zero, the sum of the remaining 
amounts specified in clauses (A) and (B) of this subsection still 
exceeds the amount determined under clauses (A) and (B) of section 
3(f) (1), the supplemental annuity of the individual first, and then, 
if necessary, the annuity amount of the individual computed under 
subsections (b), (c), and (d) of section 3 as of the date on which 
the individual's annuity under section 2(a) (1) began to accrue, shall 
be reduced until the amounts specified in clauses (A) and (B) of this 
subsection equals the amount determined under clauses (A) and (B) 
of section 3(f)(1) or until such supplemental annuity and such 
annuity amount are reduced to zero, whichever occurs firet. Notwith-
standing the preceding provisions of this subsection, the provisions 
of this subsection shall not operate to reduce the total of the amounts 
specified in clauses (A) and (B) of this subsection below $1,200. 
"(d) That portion of the annuity of the spouse of an individual 
as is determined under subsections (b) and (c) of this section shall 
be increased by the same percentage, or percentages, as the individual's 
annuity is, or has been, increased pursuant to the provisions of section 
3(g) of this Act. 
"(e) (1) The amount of the annuity of the spouse of an individual 
determined under subsections (a) and (b) of this section, if (A) such 
individual will have (i) rendered service as an employee to an employ-
er, or as an employee representative, during the calendar 
year 
1974, or (ii) had a current connection with the railroad industry on 
December 31, 1974, or at the time his annuity under section 2(a) (1) 
of this Act began to accrue, or (iii) completed twenty-five years of 
service prior to January 1, 1975, and (B) such individual will have 
completed ten years of service prior to January 1,1975, and such spouse 
will have been permanently insured under the Social Security Act on 
^2 use isos. 
December 31,1974, shall be increased by an amount equal to the smaller 
of (C) the primary insurance amount to which such spouse would 
have been entitled, upon attaining age 65, under the provisions of the 
Social Security Act as in effect on December 31, 1974, on the basis of 
her or his wages and self-employment income derived from employ-
ment and self-employment under that Act prior to January 1, 1975, 
or (D) the wife's or husband's insurance benefit to which such spouse 
would have been entitled, upon attaining age 65, under the provisions 
of the Social Security Act as in effect on December 31, 1974, if such 
individual's service as an employee after December 31, 1936, and prior 
to January 1, 1975, were included in the term 'employment' as defined 
in that Act, if such individual had no wages or self-employment income 
under the Act other than wages derived from such service as an 
employee, and if such spouse were entitled to no other benefit under 
that Act: Provided^ however^ That the increase under the provisions 
of this subdivision shall not be less than 50 per centum of the portion 
of the annuity, if any, of such individual determined under the provi-
sions of section 3(h) (1) of this Act prior to any increases under the 
provisions of section 3(h) (5) of this Act. 
"(2) The amount of the annuity of the spouse of an individual 
determined under subsections (a) and (b) of this section, if (A) 
such individual will not have met the conditions set forth in subclause 
(i), (ii), or (iii) of clause (A) of subdivision (1) of this subsection, 
but (B) such individual will have completed ten years of service prior 
to January 1,1975, and such spouse will have been permanently insured 
under the Social Security Act as of December 31 of the calendar 
1330 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
year prior to 1975 in which such individual last rendered service as an 
employee, shall be increased by an amount equal to the smaller of 
(C) the primary insurance amount to which such spouse would have 
been entitled, upon attaining age 65, under the provisions of the Social 
42 use 1305. 
Security Act as in effect on December 31, 1974, on the basis of his 
or her wages and self-employment income derived from employment 
and self-employment under that Act as of December 31 of the calen-
dar year prior to 1975 in which such individual last rendered service 
as an employee or (D) the wife's or husband's insurance benefit to 
which such spouse would have been entitled, upon attaining age 65, 
under the provisions of the Social Security Act as in effect on Decem-
ber 31, 1974, if such individual's service as an employee after Decem-
ber 31, 1936, and prior to January 1, 1975, were included in the term 
'employment' as defined in that Act, if such individual had no wages 
or self-employment income under that Act other than wages derived 
from such service as an employee, and if such spouse were entitled to 
no other benefit under that Act: Provided^ however^ That the increase 
under the provisions of this subdivision shall not be less than 50 per 
centum of the portion of the annuity, if any, of such individual deter-
mined under the provisions of section 3 (h) (2) of this Act prior to any 
increases under the provisions of section 3(h) (5) of this Act. 
"(3) The amount of the annuity of the spouse of an individual 
determined under subsections (a) and (b) of this section, if (A) such 
individual is entitled to an amount determined under the provisions of 
section 3(h) (1) or 3(h) (2) of this Act and (B) such spouse is not 
entitled to an amount determined under the provisions of subdivision 
(1) or (2) of this subsection, shall be increased by an amount equal 
to 50 per centum of the portion of the annuity of such individual deter-
mined under the provisions of section 3(h)(1) or 3(h)(2) of this 
Act prior to any increases under the provisions of section 3(h) (5) of 
this Act. 
"(4) The amount detei-mined under the provisions of subdivision 
(1), (2), or (3) of this subsection shall be increased by the same per-
centage or percentages, as wife's and husband's insurance benefits 
42 use 402. 
under section 202 of the Social Security Act are increased, or would 
have been increased had there been no general benefit increases under 
the Social Security Act, pursuant to the automatic cost-of-living pro-
42 use 415. 
visions of section 215(i) of that Act, during the period from January 
1, 1975, to the date on which the individual's annuity under section 
2 (a) (1) of this Act began to accrue. 
"(f) (1) The annuity of a survivor of a deceased employee under 
section 2(d) of this Act shall be in an amount equal to the amount 
(before any deductions on account of work) of the widow's insurance 
benefit, widower's insurance benefit, mother's insurance benefit, par-
ent's insurance benefit, or child's insurance benefit, whichever is appli-
cable, to which he or she would have been entitled under the Social 
Security Act if such deceased employee's service as an employee 
after December 31, 1936, had been included in the term 'employment' 
as defined in that Act, 
Survivor bene- 
«(g) For purposcs of thls subsectlou— 
"(i) a widow or widower or a parent who is entitled to an 
annuity based on age under section 2(d)(1) of this Act and who 
has not attained age 62 shall be deemed to be age 62: Provided^ 
however, That the provisions of this paragraph shall not apply 
in the case of a widow or widower who was entitled to an annuity 
under section 2(d) (1) on the basis of disability for the month 
before the month in which he or she attained age 60, and 
"(ii) a widow or widower or a child who is entitled to an 
annuity imder section 2(d)(1) of this Act on the basis of dis-
ability shall be deemed to be entitled to a widow's insurance 
fits 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1331 
42 u s e 1305. 
Ante, p. 1312. 
benefit, a widower's insurance benefit, or a child's insurance benefit 
under the Social Security Act on the basis of disability. 
"(g) The annuity of a survivor of a deceased employee determined 
under subsection (f) of this section shall, with respect to any month, 
be increased by an amount equal to 30 per centum of the amount of the 
annuity (before any deductions on account of work) to which such 
survivor is entitled for such month under the provisions of subsection 
^f) of this section, or to which such survivor would have been entitled 
lor such month under such subsection if such survivor were entitled to 
no other monthly benefit under section 2 of this Act or under the Social 
Security Act: Provided, hoioever, That, if a widow or widower of a 
deceased employee is not entitled to an annuity under section 2(a) (1) 
of this Act or to an old-age insurance benefit or a disability insurance 
benefit under the Social Security Act, the amount of the annuity to 
which such widow or widower is entitled under this subsection shall 
not be less than an amount which would cause the total of the annuity 
amounts to which such widow or widower is entitled (before any 
deductions on account of work) under this subsection and subsection 
(f) of this section to equal the total of the annuity amounts to which 
such widow or widower was entitled (or would have been entitled 
except for the provisions of sections 2(e) and 2(f) of this Act) as a 
spouse under subsections (a) and (b) of this section (after any reduc-
tion on account of age) in the month preceding the employee's death: 
Provided further, That, if a widow or widower of a deceased employee 
is entitled to an annuity under section 2(a)(1) of this Act or to an old-
age insurance benefit or a disability insurance benefit under the Social 
Security Act, the amount of the annuity to which such widow or 
widower is entitled under this subsection shall not be less than an 
amount which would cause (A) the total of the annuity amounts to 
which such widow or widower is entitled (after any reductions pur-
suant to section 202(k) or 202(q) of the Social Security Act or subsec- 
^2 use 402. 
tion (i) (2) of this section but before any deductions on account of 
work) under this subsection and subsection (f) of this section to equal 
(B) (i) the total of the annuity amounts, if any, to which such widow 
or widower was entitled (or would have been entitled except for the 
provisions of sections 2(e) and 2(f) of this Act) as a spouse under 
subsections (a) and (b) of this section (after any reduction on account 
of age) in the month preceding the employee's death less (ii), if such 
widow or widower is entitled to an old-age insurance benefit or a dis-
ability insurance benefit under the Social Security Act but was not 
entitled to such a benefit in the month preceding the employee's death, 
the amount by which the annuity amount payable under subsection (a) 
of this section to such widow or widower as a spouse in the month 
preceding the employee's death would have been reduced by reason of 
section 202(k) or 202 (q) of the Social Security Act if such widow or 
widower had been entitled to an old-age insurance benefit or a dis-
ability insurance benefit under the Social Security Act in the month 
preceding the employee's death in an amount equal to the amount of 
such benefit at the time such benefit first began to accrue to such widow 
or widower. 
"(h) (1) The amount of the annuity of the widow or widower of a 
deceased employee determined under subsections (f) and (g) of this 
section, if such deceased employee will have completed ten years of 
service prior to January 1,1975, and such widow or widower will have 
been permanently insured under the Social Security Act on December 
31, 1974, shall be increased by an amount equal to the amount, if any, 
by which (A) the sum of (i) the widow's or widower's insurance 
annuity to which such widow or widower would have been entitled, 
upon attaining age 65, under section 5(a) of the Railroad Retirement 
42 use 1305. 
1332 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
45 use 228e. 
^^^ ^^ -^^^^ ^^ ^^ ^^^^^ ^^ December 31, 1974 (without regard to the 
45 use 228c, 
proviso of that section or the first proviso of section 3 (e) of that Act), 
on the basis of the deceased employee's remuneration and service prior 
to January 1, 1975, and (ii) the primary insurance amount to which 
such widow or widower would have been entitled, upon attaining age 
65, under the provisions of the Social Security Act as in effect on 
December 31, 1974, on the basis of her or his wages and self-employ-
ment income derived from employment and self-employment under 
that Act prior to January 1,1975, exceeds (B) 130 per centum of the 
amount of the widow's or widower's insurance benefit to which such 
widow or widower would have been entitled, upon attaining age 65, 
under the provisions of the Social Security Act as in effect on Decem-
ber 31, 1974, on the basis of the deceased employee's wages and self-
employment income derived from employment and self-employment 
under that Act prior to January 1,1975, and on the basis of compensa-
tion derived from service as an employee after December 31,1936, and 
before January 1, 1975, if the deceased employees' service as an 
employee after December 31, 1936, and before January 1, 1975, had 
been included in such employment and if such widow or widower were 
entitled to no other monthly benefit under section 2 of this Act or under 
the Social Security Act. 
" (2) The amount determined under the provisions of subdivision (1) 
of this subsection shall be increased by tne same percentage, or per-
centages, as widow's and widower's insurance benefits under section 
202 of the Social Security Act are increased, or would have been 
increased had there been no general benefit increase under the Social 
Security Act, pursuant to the automatic cost-of-living provisions of 
42 use 415. 
section 215 (i) of that Act, during the period from January 1,1975, to 
the earlier of the date of the deceased employee's death or the date on 
which the deceased employee's annuity under section 2(a)(1) of this 
Act began to accrue. 
"(i)(l) The annuity of any spouse under subsection (a) of this 
section for any month shall be reduced, but not below zero, by the 
amount of any wife's or husband's insurance benefit payable to such 
spouse for that month under title II of the Social Security Act. 
"(2) If a spouse entitled to an annuity under section 2(c) of this 
Act or a survivor entitled to an annuity under section 2(d) of this Act 
for any month is also entitled to an annuity under section 2(a) (1) of 
this Act for such month, the annuity amount of such spouse deter-
mined under subsection (a) of this section or of such survivor under 
subsection (f) of this section shall, after any reduction pursuant to 
subdivision (1) of this subsection, be reduced by the amount of the 
annuity of such spouse or such survivor determined under section 3(a) 
of this Act, 
"ANNUITY BEGINNING AND ENDING DATES 
Ante, p. 1312. 
42 use 402. 
42 use 401. 
45 use 231d. 
"SEC. 5. (a) An annuity under section 2 of this Act shall begin with 
the month in which eligibility therefor was otherwise acquired, but— 
"(i) not earlier than the date specified in the application there-
for; 
"(ii) not earlier than the first day of the twelfth month before 
the month in which the application therefor was filed; and 
"(iii) in the case of an applicant otherwise eligible for an 
annuity under section 2(a)(1) or 2(c) not earlier than the date 
following the last day of compensated service of the applicant. 
"(b) An application for any payment under this Act shall be made 
and filed in such manner and form as the Board may prescribe. An 
application filed with the Board for an annuity under this Act shall, 
unless the applicant specifies otherwise, be deemed to be an application 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1333 
for any benefit to which such applicant may be entitled under this Act 
or the Social Security Act. An individual who was entitled to an 
'*2 use isos. 
annuity under paragraph (iv) or (v) of section2(a) (1) of this Act for 
^"'^' P- ^^U. 
the month preceding the month in which he attained the age of 65, 
shall be deemed to have filed an application for an annuity under para-
graph (i) of section 2(a) (1) on the date on which he attained age 65, 
and a widow or widower who was entitled to an annuity under section 
2(d) (1) of this Act on the basis of disability for the month preceding 
the month in which she or he attained age 60, shall be deemed to have 
filed an application for an annuity under such section 2(d) (1) on the 
basis of age on the date on which she or he attained age 60. 
" (c) (1) An individual's entitlement to an annuity under paragraph 
(i), (ii),or (iii) of section 2(a) (1) or to a supplemental annuity under 
section 2(b) shall end with the month preceding the month in which 
he dies. 
"(2) An individual's entitlement to an annuity under paragraph 
(iv) or (v) of section 2(a) (1) shall end on (A) the last day of the 
second month following the month in which he ceases to be disabled 
as provided for purposes of such paragraphs, (B) the last day of the 
month preceding the month in which he attains age 65 or (C) the last 
day of the month preceding the month in which he dies, whichever 
first occurs. 
"(3) The entitlement of a spouse of an individual to an annuity 
under section 2(c) shall end on the last day of the month preceding 
the month in which (A) the spouse or the individual dies, (B) the 
spouse and the individual are absolutely divorced, or (C) in the case 
of a wife who does not satisfy the requirements of clause (ii) (A) or 
(ii) (B) of section 2(c) (1) (other than a wife who is receiving such 
annuity by reason of an election under section 2(c)(2)), such wife 
no longer has in her care a child described in clause (ii) (C) of section 
2(c) (1), whichever first occurs. 
"(4) The entitlement of a widow or wndower of a deceased employee 
to an annuity under paragraph (i) of section 2(d)(1) on the basis 
of age shall end on (A) the last day of the month preceding the month 
in which she or he dies or (B) the last day of the month preceding the 
month in which she or he remarries after the employee's death, which-
ever first occurs. 
" (5) The entitlement of a widow or widower of a deceased employee 
to an annuity under paragraph (i) of section 2(d)(1) on the basis 
of disability shall end on (A) the last day of the month preceding the 
month in which she or he dies, (B) the last day of the month preceding 
the month in which she or he remarries after the employee's death, (C) 
the last day of the second month following the month in which she or 
he ceases to be disabled as provided for purposes of such paragraph, 
or (D) the last day of the month preceding the month in which she 
or he attains age 60, whichever first occurs. 
" (6) The entitlement of a widow of a deceased employee to an annu-
ity under paragraph (ii) of section 2(d) (1) shall end on (A) the last 
day of the month preceding the month in which she dies, (B) the last 
day of the month preceding the month in which she remarries after 
the employee's death, or (C) the last day of the month preceding the 
month in which she no longer has in her care a child described in 
clause (B) of such paragraph (ii), whichever first occurs. 
"(7) The entitlement of a child of a deceased employee to an annu-
ity imder paragraph (iii) of section 2(d) (1) shall end on (A) the last 
day of the month preceding the month in which he or she dies, (B) 
the last day of the month preceding the month in which he or she 
marries, (C) the last day of the month preceding the month in which 
he or she attains age 18 and does not meet the qualifications set forth 
^R-1Qd n - 7R . H7
1334 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
in clause (B) or (C) of such paragraph (iii), (D) the last day of 
the month preceding (i) the month during no part of which he or 
she is a full-time student or (ii) the month in which he or she attains 
age 22, and does not meet the qualifications set forth in clause (A) 
or (C) of such paragraph (iii), or (E) the last day of the second 
month following the month in which he or she ceases to be disabled 
for purposes of such paragraph (iii) and does not meet the qualifica-
tions set forth in clause (A) or (B) of such paragraph (iii), which-
ever first occurs. A child whose entitlement to an annuity under 
paragraph (iii) of section 2(d) (1) terminated by reason of clause (E) 
of this subdivision because he or she ceased to be disabled and who 
again becomes disabled as provided in clause (C) of such paragraph 
(iii), may become reentitled to an annuity on the basis of such dis-
ability upon his or her application for such reentitlement. A child 
whose entitlement to an annuity under paragraph (iii) of section 
2(d) (1) terminated with the month preceding the month in which he 
or she attained age 18, or with a subsequent month, may again become 
entitled to such an annuity (providing no event to disqualify the child 
has occurred) beginning with the first month thereafter in which 
he or she meets the qualifications set forth in clause (B) or (C) of 
such paragraph (iii), if he or she has filed an application for such 
I'eentitlement. 
"(8) The entitlement of a parent of a deceased employee to an 
annuity under paragraph (iv) of section 2(d)(1) shall end on the 
last day of the month preceding the month in which (A) such parent 
dies or (B) such parent remarries after the employee's death, which-
ever first occurs. 
"LUMP-SUM PAYMENTS 
45 use 23ie. 
"SEC. 6. (a) (1) Annuities under section 2(a) (1) and supplemental 
annuities under section 2(b) which will have become due an individ-
ual but will not have been paid at the time of such individual's death 
shall be payable to the person, if any, who is determined by the Board 
to be such individual's widow or widower and to have been living with 
such individual at the time of such individual's death and who will not 
have died before receiving payment of such annuities. If there be no 
such widow or widower, such annuities shall be payable to any person 
or persons, equitably entitled thereto, to the extent and in the propor-
tions that he or they shall have paid the expenses of burial of such indi-
vidual, and to the extent that he or they will not have been reimbursed 
under subsection (b) of this section for having paid such expenses. If 
there be no person or persons so entitled, or if the total of such annui-
ties exceeds the amount payable under this subdivision to such person 
or persons, such total, or the remainder thereof, as the case may be, 
shall be paid to the children, grandchildren, parents, or brothers and 
sisters of the deceased individual in the same manner as if such annui-
ties were a lump sum payable under subsection (c) (1) of this section. 
"(2) Annuities under section 2(d) which will have become due a 
survivor of an employee but will not have been paid at the time of such 
survivor's death shall be payable to the person, if any, who is deter-
mined by the Board to be such employee's widow or widower and to 
have been living with such employee at the time of the employee's death 
and who will not have died before receiving payment of such annuities. 
If there be no such widow or widower, such annuities shall be payable 
to the children, grandchildren, parents, or brothers and sisters of the 
deceased employee in the same manner as if such unpaid annuities 
were a lump sum payable under subsection (c) (1) of this section. 
"(3) Annuities under section 2(c) which will have become due a 
spouse of an individiial but which will not have been paid at the time 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1335 
of such spouse's death shall be payable to the individual from whose 
employment such annuities derived and who will not have died before 
receiving payment of such annuities. If there be no such individual, 
such annuities shall be paid as provided in the last two sentences of sub-
division (1) of this subsection as if such annuities were annuities due 
to an individual but unpaid at the time of such individual's death. 
" (4) Applications for accrued and unpaid annuities provided for in 
the preceding subdivisions of this subsection shall be filed prior to the 
expiration of two years after the death of the person to whom such 
annuities were originally due. 
"(5) If there is no person to whom all or any part of the payments 
described in subdivision (1), (2), or (3) can be made, such payment 
or part thereof shall escheat to the credit of the Railroad Retirement 
Account. 
"(6) For the purposes of this subsection and subsection (c) of this 
section, a widow or widower of an individual shall be deemed to have 
been living with the individual at the time of the individual's death if 
the applicable conditions set forth in section 216(h) (2) or (3) of the 
Social Security Act, as in effect before 1957, are fulfilled. 
42 use 416. 
"(7) In determining for purposes of this subsection and subsec-
tions (c) and (d) of this section whether an applicant is the widow, 
widower, child, or parent of an employee as claimed, the rules set 
forth in section 216(h) of the Social Security Act shall be applied. In 
determining for purposes of this subsection and subsections (c) and 
(d) of this section whether an applicant is the grandchild, brother, or 
sister of an employee as claimed, the Board shall apply such law as 
would be applied in determining the devolution of intestate personal 
property by the courts of the State in which such employee was domi-
ciled at the time of his death, or if such employee was not so domi-
ciled in any State, by the courts of the District of Columbia. Applicants 
who according to such law would have the same status relative to 
taking personal property as a grandchild, brother, or sister shall be 
deemed such. 
"(b) (1) Upon the death of an individual who will have completed 
ten years of service prior to January 1, 1975, and will have had a cur-
rent connection with the railroad industry at the time of his death, a 
lump-sum payment shall be made in accordance with the provisions of 
section 5(f)(1) of the Railroad Retirement Act of 1937 as in effect on 
^s use 228e. 
December 31, 1974, in an amount, if any, which would have been pay-
able under such section 5(f) (1) on the basis of (A) the individual's 
compensation after December 31, 1936, and prior to January 1, 1975, 
and (B) the individual's wages (as defined in section 209 of the Social 
Security Act) prior to January 1,1975. Any lump sum payable under 
42 use 409. 
this subdivision shall be in an amount computed as if the individual 
had died on January 1,1975. 
"(2) Upon the death of an individual who will not have completed 
ten years of service prior to January 1, 1975, but who (i) will have 
completed ten years of service at the time of his death, (ii) will have 
had a current connection with the railroad industry at the time of 
his death, and (iii) will have died leaving no widow, widower, child, 
or parent who would on proper application therefor be entitled to 
receive an annuity under section 2(d) of this Act for the month in 
^"'^' P- I312. 
which such death occurred, a lump-sum death payment shall be made 
in accordance with the provisions of section 202 (i) of the Social 
Security Act in an amount equal to the amount which would have 
"
^
^ "^^ '*°2. 
been payable under such section 202(i) if such individual's service 
as an employee after December 31, 1936, were included in the term 
'employment' as defined in that Act. If a lump sum would be payable 
to a widow or widower under this subdivision except for the fact that 
a survivor will have been entitled to receive an annuity for the month 
42 u s e 1305. 
1336 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
in which the individual will have died, but within one year after the 
individual's death there will not have accrued to survivors of the 
individual, by reason of his death, annuities which, after all deduc-
Ante, p. 1312. 
tlous pursuant to sections 2(g) and 2(h) of this Act, are equal to 
such lump sum, a payment equal to the amount by which such lump 
sum exceeds such annuities so accrued after such deductions shall 
then nevertheless be made under this subdivision to the widow or 
widower to whom a lump sum would have been payable under this 
subdivision except for the fact that a monthly benefit under section 
2(d) of this Act was payable for the month in which the individual 
died, if such widow or widower will not have died before receiving 
payment of such lump sum. 
"(c) (1) Whenever it shall appear, with respect to the death of an 
employee, that no benefits, or no further benefits (other than benefits 
payable to a widow, widower, or parent under either this Act or 
the Social Security Act upon attaining the age of eligibility therefor 
at a future date) will be payable under this Act or under the Social 
Security Act, a lump sum in an amount computed under subdivision 
(2) of this subsection shall be paid to such person or persons as the 
deceased employee may have designated by a writing filed with the 
Board prior to his or her death, or if there be no designation, to the 
following person (or, if more than one, in equal shares to the persons) 
whose relationship to the deceased employee will have been determined 
by the Board and who will not have died before receiving payment 
of the lump sum provided for in this subdivision— 
"(i) the widow or widower of the deceased employee who was 
living with such employee at the time of such employee's death; or 
"(ii) if there be no such widow or widower, to any child or 
children of such employee; or 
"(iii) if there be no such widow, widower, or child, to any 
grandchild or grandchildren of such employee; or 
"(iv) if there be no such widow, widower, child, or grandchild, 
to any parent or parents of such employee; or 
"(v) if there be no such widow, widower, child, grandchild, 
or parent, to any brother or sister of such employee; or 
"(vi) if there be no such widow, widower, child, grandchild, 
parent, brother, or sister, to the estate of such employee: 
Provided, 
however, That if the employee is survived by a widow, 
widower, or parent who may upon attaining the age of eligibility be 
entitled to benefits under this Act or under the Social Security Act, 
such lump sum shall not be paid unless such widow, widower, or parent 
makes and files with the Board an irrevocable election, in such form 
as the Board may prescribe, to have such lump sum be paid in lieu 
of all benefits to which such widow, widower, or parent might other-
wise become entitled under this Act on the basis of the deceased 
employee's compensation and years of service or under the Social Secu-
rity Act on the basis of the deceased employee's wages from (A) 
employment with an employer as defined in section 1(a) of this Act or 
(B) service as an employee representative as defined in section 1(c) 
of this Act. Any election made and filed by a widow, widower, or 
parent pursuant to this subdivision shall be legally effective according 
to its terms. 
"(2) The lump sum provided under subdivision (1) of this sub-
section shall be in an amount equal to (A) the sum of 4 per centum 
of the deceased employee's compensation paid after December 31,1936, 
and prior to January 1, 1947, plus 7 per centum of such employee's 
compensation paid after December 31, 1946, and before January 1, 
1959, plus 714 per centum of such employee's compensation paid after 
December 31, 1958, and before January 1, 1962, plus 8 per centum of 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1337 
such employee's compensation paid after December 31, 1961, and 
before January 1, 1966, plus an amount equal to the total of all 
employee taxes payable by such employee after December 31, 1965, 
and before January 1, 1975, under the provisions of section 3201 of 
the Railroad Retirement Tax Act (excluding, for this purpose, the 
^6 use 3201. 
amount of the employee tax attributable to that portion of the tax rate 
derived from section 3101(b) of the Internal Revenue Code of 1954), 
26 use 3101. 
plus one-half of 1 per centum of the compensation on which such taxes 
were payable, deeming the compensation attributable to creditable 
military service after June 30, 1963, and before January 1, 1975, to 
be taxable compensation, and one-half of the taxes payable by an 
employee representative under section 3211 of the Railroad Retirement 
Tax Act to be employee taxes under section 3201 of such Act, minus 
26 use 3211. 
(B) the sum of all benefits paid to such employee, and to others deriv-
ing from such employee, during his or her life, or to others by rea-
son of his or her death, under this Act, the Railroad Retirement Act 
of 1937, or the Social Security Act (excluding, for this purpose, pay- 
^^ use 228a. 
ments to providers of services under section 7(d) of this Act or section 
Post, p. 1338. 
21 of the Railroad Retirement Act of 1937, any amounts by which 
^^ use 228S-2. 
that portion of the annuities provided the employee under section 3 (a) 132". 
of this Act or his spouse under section 4(a) of this Act were increased 
by reason of the employee's wages and self-employment income 
derived from employment and self-employment under the Social Secu-
rity Act, that portion of the annuities provided the employee under 
section 3(h) of this Act or his spouse under section 4(e) of this Act, 
and so much of the benefits paid to the employee and to others deriv-
ing from him or her under the Social Security Act during his or her 
lifetime as would have been payable under that Act if such employee 
had not rendered service as an employee as defined in section 1(b) of 
this Act). In computing compensation for purposes of this subdivision 
there shall be excluded compensation in excess of $300 for any month 
before July 1, 1954; compensation in excess of $350 for any month 
after June 30, 1954, and before June 1, 1959; compensation in excess 
of $400 for any month after May 31, 1959, and before November 1, 
1963; compensation in excess of $450 for any month after October 31, 
1963, and before October 1, 1965; and compensation in excess of (i) 
$450 or (ii) an amount equal to one-twelfth of the current maximum 
annual taxable 'wages' as defined in section 3121 of the Internal Reve-
nue Code of 1954, whichever is greater, for any month after Septem- 
26 use 3121. 
ber 30,1965. 
"(d)(1) Every individual Avho will have completed ten years of 
service at the time of his retirement or death, but does not meet the 
qualifications for an annuity amount determined under the provisions 
of section 3(h)(1) or 3(h)(2) of this Act, shall, at the time his 
annuity under section 2(a) (1) begins to accrue, be entitled to a lump 
sum in the amount provided under subdivision (2) of this subsection. 
If an individual otherw^ise eligible for a lump sum under this section 
dies before he becomes entitled to an annuity under section 2(a) (1) of 
this Act, or before he receives payment of such lump sum, such lump 
^"'e, p. 1312. 
sum shall be payable to the person, if any, who is determined by the 
Board to be such individual's widow or widower and who will not 
have died before receiving payment of such lump sum. If there be no 
such widow or widower, such lump sum shall be payable to the 
children, grandchildren, parents, brothers and sisters, or the estate of 
the deceased individual in the same manner as if such lump sum were 
a lump sum payable under subsection (c)(1) of this section. 
"(2) The lump sum provided under subdivision (1) of this sub-
section shall be in an amount equal to the sum of (A) 1.5 per centum 
of so much of such individual's combined earnings for any calendar 
1338 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
year after 1950 and before 1954 as is in excess of $3,600, plus (B) 2 per 
centum of so much of such individual's combined earnings for any 
calendar year after 1953 and before 1957 as is in excess of $4,200, plus 
(C) 2.25 per centum of so much of such individual's combined earn-
ings for any calendar year after 1956 and before 1959 as is in excess 
of $4,200, plus (D) 2.5 per centum of so much of such individual's 
combined earnings for the calendar year 1959 as is in excess of $4,800, 
plus (E) 3 per centum of so much of such individual's combined 
earnings for each of the calendar years 1960 and 1961 as is in excess 
of $4,800, plus (F) 3.125 per centum of so much of such individual's 
combined earnings for the calendar year 1962 as is in excess of $4,800, 
plus (G) 3.625 per centum of so much of such individual's combined 
earnings for any calendar year after 1962 and before 1966 as is in 
excess of $5,400, plus (H) 4.2 per centum of so much of such indi-
vidual's combined earnings for the calendar year 1966 as is in excess 
of $6,600, plus (I) 4.4 per centum of so much of such individual's 
combined earnings for the calendar year 1967 as is in excess of $6,600, 
plus (J) 3.8 per centum of so much of such individual's combined 
earnings for the calendar year 1968 as is in excess of $7,800, plus (K) 
4.2 per centum of so much of such individual's combined earnings for 
each of the calendar years 1969 and 1970 as is in excess of $7,800, plus 
(L) 4.6 per centum of so much of such individual's combined earnmgs 
for the calendar year 1971 as is in excess of $7,800, plus (M) 4.6 per 
centum of so much of such individual's combined earnings for the 
calendar year 1972 as is in excess of $9,000, plus (N) 4.85 per centum 
of so much of such individual's combined earnings for the calendar 
year 1973 as is in excess of $10,800, plus (O) 4.95 per centum of so 
much of such individual's combined earnings for the calendar year 
"Combined 
^9^4 as Is lu excess of $13,200. For purposes of this subsection, the 
earnings. 
term 'comblued earnings' shall include 'compensation' as defined in 
45 use 228a. 
sectiou 1 (h) of the Railroad Retirement Act of 1937, 'wages' as defined 
42 use 409. 
[YI scctiou 209 of the Social Security Act, and 'self-employment' 
42 use 411. 
income as defined in section 211 (b) of the Social Security Act, 
"POWERS AND DUTIES or THE BOARD 
45 use 23If. 
"SEC. 7. (a) This Act shall be administered by the Railroad Retire-
ment Board established by the Railroad Retirement Act of 1937 as an 
independent agency in the executive branch of the Government and 
composed of three members appointed by the President, by and with 
Term of office. 
^-]^g advice aud consent of the Senate. Each member shall hold office 
for a term of five years, except that any member appointed to fill a 
vacancy occurring prior to the expiration of the term for which his 
predecessor was appointed shall be appointed for the remainder of 
the term and any member holding office pursuant to appointment 
under the Railroad Retirement Act of 1937 when this Act becomes 
effective shall hold office until the term for which he was appointed 
under such Railroad Retirement Act of 1937 expires. One member 
shall be appointed from recommendations made by representatives 
of the employees and one member shall be appointed from recom-
mendations made by representatives of employers as defined in para-
Ante, p. 1305. 
graph (i) of section 1 (a) (1) of this Act, in both cases as the President 
shall direct, so as to provide representation on the Board satisfactory 
to the largest number, respectively, of employees and employers con-
cerned. One member, who shall be the chairman of the Board, shall be 
appointed without recommendation by either employers or employees 
and shall not be in the employment of or be pecuniarily or otherwise 
Vacancies. 
interested in any employer or organization of employees. Vacancies 
in the Board shall not impair the powers or affect the duties of the 
Membership. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1339 
Board or of the remaining members of the Board, of whom a majority 
of those in office shall constitute a quorum for the transaction of busi-
ness. Upon the expiration of his term of office a member shall continue 
to serve until his successor is appointed and shall have qualified. 
" (b) (1) The Board shall have and exercise all the duties and powers 
necessary to administer this Act. The Board shall take such steps as 
may be necessary to enforce such Act and make awards and certify 
payments. Decisions by the Board upon issues of law and fact relating 
to annuities or death benefits shall not be subject to review by any 
other administrative or accounting officer, agent, or employee of the 
United States. 
"(2) In the case of— 
"(A) an individual who will have completed ten years of serv-
ice creditable under this Act, 
"(B) the wife or husband of such an individual, 
"(C) any survivor of such an individual if such survivor is 
entitled, or could upon application become entitled, to an annuity 
under section 2 of this Act, and 
Ante, p. 1312. 
"(D) any other person entitled to benefits under title I I of the 
Social Security Act on the basis of the wages and self-employ- 
42 use 401. 
ment income of such an individual (except a survivor of such an 
individual where such individual did not have a current connec-
tion with the railroad industry at the time of his death), 
the Board shall provide for the payment on behalf of the Managing 
Trustee of the Federal Old-Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust Fund of monthly benefits 
payable under title II of the Social Security Act which are certified 
by the Secretary to it for payment under the provisions of title II of 
the Social Security Act. 
"(3) If the Board finds that an applicant is entitled to an annuity 
or death benefit under the provisions of this Act then the Board shall 
make an award fixing the amount of the annuity or benefit, as the case 
may be, and shall certify the payment thereof as hereinafter pro-
vided ; otherwise the application shall be denied. For purposes of this 
section, the Board shall have and exercise such of the powers, duties 
and remedies provided in subsections (a), (b), (d),and (n) of section 
12 of the Kailroad Unemployment Insurance Act as are not incon- 
'*5 use 362. 
sistent with the express provisions of this Act. The Board is author-
ized to delegate to any member, officer, or employee of the Board any 
of the powers conferred upon the Board by the Act, excluding only 
the power to prescribe rules and regulations, including the power to 
make decisions on applications for annuities or other benefits: Pro-
vided, however, That any person aggrieved by a decision on his appli-
cation for an annuity or other benefit shall have the right to appeal 
to the Board. Notice of a decision of the Board, or of an employee 
thereof, shall be communicated to the applicant in writing within 
thirty days after such decision shall have been made. 
"(4) The Board shall from time to time certify to the Secretary of 
the Treasury the name and address of each individual entitled to 
receive a payment, the amount of such payment, and the time at which 
it should be made, and the Secretary of the Treasury through the 
Division of Disbursements of the Treasury Department, and prior to 
audit by the General Accounting Office, shall make payment in accord-
ance with the certification by the Board. 
"(5) The Board shall establish and promulgate rules and regula- ,^^^^^ and regu-
tions to provide for the adjustment of all controversial matters arising 
in the administration of this Act. All rules, regulations, or decisions 
of the Board shall require the approval of at least two members, and 
they shall be entered upon the records of the Board, which shall be a 
public record. 
1340 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
Recordkeeping. 
"(6)The Boai'd shall gather, keep, compile, and publish in conven-
ient form such records and data as may be necessary to assure proper 
administration of this Act, including subdivision (2) of this subsec-
tion. The Board shall have power to require all employers and 
employees and any officer, board, commission, or other agency of the 
United States to furnish such information and records as shall be 
necessary for the administration of this Act, including subdivision (2) 
Jurisdiction. 
gf ^}^jg subscctiou. The several district courts of the United States and 
the District Court of the United States for the District of Columbia 
shall have jurisdiction upon suit by the Board to compel obedience 
to any order of the Board issued pursuant to this section. The orders, 
writs, and processes of the District Court of the United States for the 
District of Columbia in such suits may run and be served anyw^here in 
Witness fees. 
^j^g XJuitcd Statcs. Witucsscs sumuioucd before the Board shall be paid 
the same fees and mileage that are paid witnesses in the district courts 
idenTanVco^-''^" of the Uuitcd Statcs. The Board shall make an annual report to the 
gress. 
President of the L'nited States to be submitted to Congress. 
Reports. 
u (^^ ry.^^^ Secretary of Health, Education, and Welfare shall furnish 
the Board certified reports of wages, self-employment income, and 
periods of service and of other records in his possession, or which he 
may secure, pertinent to the administration of this Act. The Board shall 
furnish the Secretary of Health, Education, and Welfare certified 
reports of records of compensation and periods of service reported to 
it pursuant to section 9 of this Act, of determinations under section 2 
of this Act, and of other records in its possession, or which it may 
secure, pertinent to subsection (c) of this section or to the administra-
pi^t^'^ \
^
3
°
^
5
g 
tion of the Social Security Act as affected by section 18 of this Act. 
Such certified reports shall be conclusive in adjudication as to the mat-
ters covered therein: Provided^ however^ That if the Board or the 
Secretary of Health, Education, and Welfare receives evidence incon-
sistent with a certified report and the application involved is still in 
course of adjudication or otherwise open for such evidence such recerti-
fication of such report shall be made as, in the judgment of the Board 
or the Secretary of Health, Education, and Welfare, whichever made 
the original certification, the evidence warrants. Such recertification 
and any subsequent recertification shall be treated in the same manner 
and be subject to the same conditions as an original certification. 
^e^(!ids^'^l•e^^if^.''^ 
"(8) ^^^y department or agency of the United States maintaining 
cation.' 
records of military service, at the request of the Board, shall certify 
to the Board, with respect to any individual, the number of months 
of military service which such department or agency finds the indi-
vidual to have had during any period or periods with respect to 
which the Board's request is made, the date and manner of entry into 
such militar}' service, and the conditions under which such service 
was continued. Any department or agency of the United States which 
is authorized to make awai'ds of pensions, disability compensation, or 
any other gratuitous benefits or allowances payable, on a periodic 
basis or other-wise, under any other Act of Congress on the basis of 
military service, at the request of the Board, shall certify to the Board, 
with respect to any individual, the calendar- months for all or- part of 
which any such pension, compensation, benefit, or allowance is pay-
able to, or with respect to, the individual, the amounts of any such 
pension, compensation, benefit, or allowance, and the military service 
on which such pension, compensation, benefit, or allowance is based. 
Any certification made pursuant to the provisions of this subdivision 
shall be conclusive on the Boar-d: Provided, however. That if evidence 
inconsistent with any such certification is submitted, and the claim 
is in the course of adjudication or- is other-wise open for such evidence, 
the Board shall refer such evidence to the department or agency which 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1341 
made the original certification and such department or agency shall 
make such recertification as in its judgment the evidence warrants. 
Such recertification, and any subsequent recertification, shall be con-
clusive, made in the same manner, and subject to the same conditions 
as an original certification. 
"(9) The Board shall maintain such offices, provide such equipment, 
Duties. 
furnishings, supplies, services, and facilities, and employ such individ-
uals and provide for their compensation and expenses as may be 
necessary for the proper discharge of its functions. All positions to 
which such individuals are appointed, except one administrative assist-
ant to each member of the Board, shall be in and under the competi-
tive civil service and shall not be removed or excepted therefrom. 
In the employment of such individuals under the civil service laws and 
rules the Board shall give preference over all others to individuals who 
have had experience in railroad service, if, in the judgment of the 
Board, they possess the qualifications necessary for the proper dis-
charge of the duties of the positions to which they are to be appointed. 
For purposes of its administration of this Act or the Railroad Unem-
ployment Insurance Act, or both, the Board may place, without regard 
'^^ use 367. 
to the numerical limitations contained in section 505 of the Classifica-
tion Act of 1949, as amended, four positions in grade GS-16 of the 
^ "^^ ^^°^-
General Schedule established by that Act, four positions in grade ^^^^^^ ^^^^ 
GS-17 of such schedule, and one position in grade GS-18 of such 
schedule. 
"(c) (1) Benefit payments determined by the Board to be payable 
under this Act shall be made from the Railroad Retirement Account, 
except that payments of supplemental annuities under section 2(b) 
of this Act shall be made from the Railroad Retirement Supplemental 
Account. 
"(2) At the close of the fiscal year ending June 30, 1975, and each 
fiscal year thereafter, the Board and the Secretary of Health, Educa-
tion, and Welfare shall determine the amounts, 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 place each such Trust 
Fund in the same position in which it would have been if (A) service 
as an employee after December 31, 1936, had been included in the term 
'employment' as defined in the Social Security Act and in the Federal 
"^^ use uos. 
Insurance Contributions Act and (B) this Act had not been enacted. 
26 use aioi. 
Such determination with respect to each such Trust Fund shall be 
made no later than June 15 following the close of the fiscal year. If, 
pursuant to any such determination, any amount is to be added to 
any such Trust Fund, the Board shall, within ten days after the 
determination, certify such amount to the Secretary of the Treasury 
for transfer from the Railroad Retirement Account to such Trust 
Fund. If, pursuant to any such determination, any amount is to be 
subtracted from any such Trust Fund, the Secretary of Health, Edu-
cation, and Welfare shall, within ten days after the determination, 
certify such amount to the Secretary of the Treasury for transfer from 
such Trust Fund to the Railroad Retirement Account. Any amount so 
certified shall further include interest (at the rate determined in sub-
division (3) for the fiscal year under consideration) payable from the 
close of such fiscal year until the date of certification. The Secretary 
of the Treasury is authorized and directed to transfer to the Railroad 
Retirement Account from the Federal Old-Age and Survivors Insur-
ance Trust Fund, the Federal Disability Insurance Trust Fund, or 
the Federal Hospital Insurance Trust Fund or to any such Trust Fund 
from the Railroad Retirement Account, as the case may be, such 
amounts as, from time to time, may be determined by the Board and 
1342 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
the Secretary of Health, Education, and Welfare pursuant to the 
provisions of this subdivision and certified by the Board or the Secre-
tary of Health, Education, and Welfare for transfer from any such 
Trust Fund or from the Railroad Retirement Account. 
"(3) For purposes of subdivision (2), for any fiscal year, the rate 
of interest to be used shall be equal to the average rate of interest, com-
puted as of May 31 preceding the close of such fiscal year, borne by all 
interest-bearing obligations of the United States then forming a part 
of the public debt; except that where such average rate is not a multiple 
of one-eighth of 1 per centum, the rate of interest shall be the multiple 
of one-eighth of 1 per centum next lower than such average rate. 
"(d) (1) The Board shall, for purposes of this subsection, have the 
same authority to determine the rights of individuals described in sub-
division (2) to have payments made on their behalf for hospital insur-
ance benefits consisting of inpatient hospital services, posthospital 
extended care services, posthospital home health services, and out-
patient hospital diagnostic services (all hereinafter referred to as 
'services') under section 226, and parts A and C of title XVIII, of the 
4
2 use 426, 
Social Security Act as the Secretary of Health, Education, and Wel-
fare has under such section and such parts with respect to individuals 
to whom such sections and such parts apply. For purposes of section 8, 
a determination wuth respect to the rights of an individual under this 
subsection shall, except in the case of a provider of services, be con-
sidered to be a decision with respect to an annuity. 
"(2) Except as otherwise provided in this subsection, every person 
who— 
" (i) has attained age 65 and (A) is entitled to an annuity under 
this Act or (B) would be entitled to such an annuity had he ceased 
compensated service and, in the case of a spouse, had such spouse's 
husband or wife ceased compensated service; or 
"(ii) has not attained age 65 and (A) has been entitled to an 
Ante, p. 1312. 
annuity under section 2 of this Act, or under the Railroad Retire-
45 use 228a. 
mcut Act of 1937 and section 2 of this Act, or could have been 
includible in the computation of an annuity under section 3(f) (3) 
Ante. p. 1319. 
^^ ^^lis Act, for uot less than 24 consecutive months and (B) could 
have been entitled for 24 consecutive calendar months, and could 
currently be entitled, to monthly insurance benefits under section 
^
^
4
2 use 423, 
223 of the Social Security Act or under section 202 of that Act on 
the basis of disability if service as an employee after December 31, 
1936, had been included in the term 'employment' as defined in that 
Act and if an application for disability benefits had been filed, 
shall be certified to the Secretary of Health, Education, and Welfare 
42 use 426. 
as a qualified railroad retirement beneficiary under section 226 of the 
Social Security Act. 
" (3) If an individual entitled to an annuity under paragraph (iv) or 
(v) of section 2(a) (1) of this Act would have been insured for dis-
ability insurance benefits as determined under section 223(c)(1) of 
the Social Security Act at the time such annuity began, he shall be 
deemed, solely for purposes of paragraph (ii) of subdivision (2), to 
be entitled to a disability insurance benefit under section 223 of the 
Social Security Act for each month, and beginning with the first 
month, in which he would meet the requirements for entitlement to 
such a benefit, other than the requirement of being insured for dis-
ability insurance benefits, if service as an employee after December 31, 
1936, had been included in the term 'employment' as defined in the 
Social Security Act and if an application for disability benefits had 
been filed. 
"(4) The rights of individuals described in subdivision (2) of this 
subsection to have payment made on their behalf for the services 
42 u s e 1305. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1343 
referred to in subdivision (1) but provided in Canada shall be the 
same as those of individuals to whom section 226 and part A of title 
X V I I I of the Social Security Act apply, and this subdivision shall be ^
^
4
2
^ use 42 6, 
administered by the Board as if the provisions of section 226 and part 
A of title X V I I I of the Social Security Act were applicable, as if refer-
ences to the Secretary of Health, Education, and Welfare were to the 
Board, as if references to the Federal Hospital Insurance Trust Fund 
were to the Railroad Retirement Account, as if references to the United 
States or a State included Canada or a subdivision thereof, and as if 
the provisions of sections 1862(a)(4), 1863, 1864, 1867, 1868, 1869, 
1874(b), and 1875 were not included in such title. The payments for 
services herein provided for in Canada shall be made from the Rail-
road Retirement Account (in accordance with, and subject to, the 
conditions applicable under section 7(b), in making payment of 
other benefits) to the hospital, extended care facility, or home health 
agency providing such services in Canada to individuals to whom sub-
division (2) of this subsection applies, but only to the extent that the 
amount of payments for services otherwise hereunder provided for an 
individual exceeds the amount payable for like services provided pur-
suant to the law in effect in the place in Canada where such services 
are furnished. For the purposes of section 10 of this Act, any over-
payment under this subdivision shall be treated as if it were an over-
payment of an annuity. 
"(5) The Board and the Secretary of Health, Education, and Wel-
fare shall furnish each other with such information, records, and docu-
ments as may be considered necessary to the administration of this 
subsection or section 226, and part A of title XVIII, of the Social 
Security Act. 
"(e) The Board is authorized to accept on behalf of the United 
States money gifts and bequests made unconditionally to the Rail-
road Retirement Account, to the Railroad Retirement Supplemental 
Account, or to the Railroad Unemployment Insurance Account, or to 
the Board, or any member, officer, or employee thereof, for the benefit 
of such accounts or any activity financed through such accounts. Any 
such gift accepted pursuant to the authority granted in this subsection 
shall be deposited in the specific account designated by the donor or, 
if the donor has made no such specific designation, in the Railroad 
Retirement Account. 
"COURT JURISDICTION 
"SEC. 8. Decisions of the Board determining the rights or liabilities 
ts use 23 ig. 
of any person under this Act shall be subject to judicial review in the 
same manner, subject to the same limitations, and all provisions of law-
shall apply in the same manner as though the decision were a deter-
mination of corresponding rights or liabilities under the Railroad 
Unemployment Insurance Act except that the time within which pro- 
4
S use 367. 
ceedings for the review of a decision with respect to an annuity, 
supplemental annuity, or lump-sum benefit may be commenced shall 
be one year after the decision will have been entered upon the records of 
the Board and communicated to the claimant. 
"RETURNS OF COMPENSATION 
"SEC. 9. Employers shall file with the Board, in such manner and 
'^^ "^'^ ^^^^' 
form and at such times as the Board by rules and regulations may pre-
scribe, returns of compensation of employees, and, if the Board shall 
so require, shall furnish employees with statements of their compen-
sation as reported to the Board. The Board's record of the compensa-
1344 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
tion so returned shall be conclusive as to the amount of compensation 
paid to an employee during each period covered by the return, and the 
fact that the Board's records show that no return was made of the 
compensation claimed to have been paid to an employee during a par-
ticular period shall be taken as conclusive that no compensation was 
paid to such employee during that period, unless the error in the 
amount of compensation returned in the one case, or the failure to 
make return of the compensation in the other case, is called to the 
attention of the Board within four years after the day on which return 
of the compensation was required to be made. 
45 use 231i. 
45 use 367. 
ERRONEOUS PAYMENTS 
"SEC. 10. (a) If the Board finds that at any time more than the 
correct amount of annuities or other benefits has been paid to any 
individual under this Act, or payment has been made to an individual 
not entitled thereto, recovery by adjustment in subsequent payments 
to which such individual, or any other individual on the basis of the 
same compensation, wages, or self-employment income, is entitled 
under this Act, or the Railroad Unemployment Insurance Act may, 
except as otherwise provided in this section, be made under regula-
tions prescribed by the Board. If the individual to whom more than 
the correct amount has been paid dies before recovery is completed, 
recovery may be made by setoff or adjustments, under regulations 
prescribed by the Board, in subsequent payments due, under this 
Act, or the Railroad Unemployment Insurance Act, to the estate of 
such individual or to any person on the basis of the compensation, 
wages, or self-employment income of such individual. 
"(b) Adjustments under this section may be made either by deduc-
tions from subsequent payments or, with respect to payments which 
are to be made during a lifetime or lifetimes, by subtracting the total 
amount of annuities or other benefits paid in excess of the proper 
amount from the actuarial value, as determined by the Board, of such 
payments to be made during a lifetime or lifetimes and recertify-
ing such payments on the basis of the reduced actuarial value. In 
the latter case, recovery shall be deemed to have been completed upon 
such recertification. 
"(c) There shall be no recovery in any case in which more than 
the correct amount of annuities or other benefits has been paid under 
this Act to an individual or payment has been made to an individual 
not entitled thereto who, in the judgment of the Board, is without 
fault when, in the judgment of the Board, recovery would be con-
trary to the purpose of the Acts or would be against equity or good 
conscience. 
"(d) No certifying or disbursing officer shall be held liable for 
any amount certified or paid by him in good faith to any person 
where the recovery of such amount is waived under subsection (c) 
of this section or has been begun but cannot be completed under sub-
section (a) of this section. 
" W A I V E R o r ANNUITIES 
45 use 23ij. 
"SEC. 11. Any person awarded an annuity under this Act may 
decline to accept all or any part of such annuity by a waiver signed 
and filed with the Board. Such a waiver may be revoked in writing at 
any time, but no payment of the annuity waived shall be made cover-
ing the period during which such waiver was in effect. Such a waiver 
will have no effect on entitlement to, or the amount of, any other 
annuity or benefit. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1345 
"INCOMPETENCE 
"SEC. 12. (a) Every individual receiving or claiming benefits, or to 
'*5 use 231k. 
whom any right or privilege is extended, under this Act or any other 
Act of Congress now or hereafter administered, in whole or in part, 
by the Board shall be conclusively presumed to have been competent 
until the date on which the Board receives written notice, in a form 
and manner acceptable to the Board, that he is an incompetent, or 
a minor, for whom a guardian or other person legally vested with the 
care of his person or estate has been appointed: Provided^ however^ 
That, regardless of the legal competency or incompetency of an indi-
vidual entitled to a benefit administered by the Board, the Board may, 
if it finds the interest of such individual to be served thereby, recog-
nize actions by, and conduct transactions with, and make payments to, 
such individual, or recognize actions by, and conduct transactions 
with, and make payments to, a relative or some other person for such 
individual's use and benefit. 
"(b) Every guardian or other person legally vested with the care 
of the person or estate of an incompetent or minor who is receiving 
or claiming benefits, or to whom any right or privilege is extended, 
under this Act or any other Act of Congress now or hereafter admin-
istered, in whole or in part, by the Board shall have power every-
where, in the manner and to the extent prescribed by the Board, but 
subject to the provisions of the preceding subsection, to take any 
action necessary or appropriate to perfect any right or exercise any 
privilege of the incompetent or minor and to conduct all transactions 
on his behalf under this or any other Act of Congress now or hereafter 
administered, in whole or in part, by the Board. Any payment made 
pursuant to the provisions of this section shall be a complete settle-
ment and satisfaction of any claim, right, or interest in and to such 
payment. 
"PENALTIES 
"SEC. 13. (a) Any person who shall knowingly fail or refuse to 
^^ "^^ ^ai/. 
make any report or furnish any information required by the Board 
in the administration of this Act, including the provisions of section 
7(b) (2) thereof, or who shall knowingly make or cause to be made 
any false or fraudulent statement or report when a statement or report 
is I'equired to be made for the purpose of this Act, or who shall 
knowingly make or aid in making any false or fraudulent statement 
or claim for the purpose of causing an award or payment to be made, 
shall be punished by a fine of not more than $10,000 or by imprisonment 
not exceeding one year, or both. 
"(b) All fines and penalties imposed by a court pursuant to this 
Act shall be paid to the court and be remitted from time to time 
by order of the judge to the Treasury of the United States to be 
credited to the Railroad Retirement Account. 
u 
EXEMPTION FROM LEGAL PROCESS 
"SEC. 14. Notwithstanding any other law of the United States, or 
'•s use 231m. 
of any State, territory, or the District of Columbia, no annuity or 
supplemental annuity shall be assignable or be subject to any tax or 
to garnishment, attachment, or other legal process under any circum-
stances M^hatsoever, nor shall the payment thereof be anticipated: 
Provided^ however^ That the provisions of this section shall not oper-
ate to exclude the amount of any supplemental annuity paid to an 
individual under section 2(b) of this Act from income taxable pur-
suant to the Federal income tax provisions of the Internal Revenue 
Code of 1954. 
26 u s e 1 et 
seq. 
1346 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
45 u s e 231n 
45 u s e 228o 
26 u s e 3233. 
3221 
ii RAILROAD RETIREMENT 
ACCOUNT 
"SEC. 15. (a) The Railroad Retirement Account established by sec-
tion 15(a) of the Railroad Retirement Act of 1937 shall continue to 
be maintained in the Treasury of the United States. There is hereby 
authorized to be appropriated to such Account for each fiscal year, 
beginning with the fiscal year ending June 30,1975, to provide for the 
payment of benefits to be made from such Account in accordance with 
the provisions of section 7(c)(1) of this Act, and to provide for 
expenses necessary for the Board in the administration of all pro-
visions of this Act, an amount equal to amounts covered into the 
Treasury (minus refunds) during each fiscal year under the Rail-
road Retirement Tax Act, except those portions of the amounts cov-
ered into the Treasury under sections 3211(b), 3221(c), and 3221(d) 
2
^
6
^ use 3211, 
Q
-
f gyp]^ fpg^^ ji^Q^ g
^
g j^j.g necessary to provide sufficient funds to meet 
the obligation to pay supplemental annuities at the level provided 
under section 3(e) of this Act and, with respect to those entitled to 
supplemental annuities under section 205(a) of title I I of this Act, 
at the level provided under section 205(a). The Board is directed to 
determine what portion of the taxes collected under sections 3211(b), 
3221(c), and 3221(d) of the Railroad Retirement Tax Act is to be 
credited to the Railroad Retirement Account pursuant to the pre-
ceding provisions of this subsection and what portion of such taxes 
is to be credited to the Railroad Retirement Supplemental Account 
pursuant to the provisions of subsection (c) of this section. The Board 
shall make such a determination with respect to each calendar quarter 
commencing with the quarter beginning January 1, 1975, shall make 
each such determination not later than fifteen days before each cal-
endar quarter, and shall, as soon as practicable after each such deter-
mination, advise the Secretary of the Treasury of the determination 
made. The Secretary of the Treasury shall credit the amounts covered 
into the Treasury under sections 3211(b), 3221(c), and 3221(d) of 
the Railroad Retirement Tax Act to the Railroad Retirement Account 
and the Railroad Retirement Supplemental Account in such propor-
tions as is determined by the Board pursuant to the provisions of this 
subsection. 
"(b) In addition to the amount authorized to be appropriated in 
subsection (a) of this section, there is hereby authorized to be appro-
priated to the Railroad Retirement Account for each fiscal year, begin-
ning with the fiscal year ending June 30, 1975, such amount as the 
Board determines to be necessary to meet (A) the additional costs, 
resulting 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 Account is not reimbursed for such costs under section 7(c) 
(2), (B) the additional administrative expenses resulting from the 
crediting of military service under this Act, and (C) any loss in 
interest to such Account resulting from the payment of additional 
benefits based on military service credited under this Act: 
Provided, 
however, That, in determining the amount to be appropriated to the 
Railroad Retirement 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 appropriations to such Account have already been made pursu-
ant 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. 
45 u s e 228C-1. 
88 STAT.] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1347 
The cost resulting from the payment 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 exclusion of adminis-
trative expenses and interest charges on the unfunded 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 practicable, determine the amount to be 
appropriated to the Account pursuant to the provisions of this subsec-
tion, and shall certify such amount to the Secretary of the Treasury 
for transfer from the general fund in the Treasury to the Railroad 
Eetirement 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 provi-
sions 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 appropria-
tions 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 payments 
incurred by such Trust Funds by reason of such military service shall 
be taken in account in making any such determination. 
"(c) The Railroad Retirement Supplemental Account established 
by section 15(b) of the Railroad Retirement Act of 1937 shall con-
tinue to be maintained in the Treasury of the United States. There 
is hereby authorized to be appropriated to such account for each fiscal 
year, beginning with the fiscal year ending June 30, 1975, to provide 
for the payment of supplemental annuities under section 2(b) of 
this Act, and to provide for the expenses necessary for the Board in 
the administration of the payment of such supplemental annuities, an 
amount equal to such portions of the amounts covered into the Treas-
ury (minus refunds) during each fiscal year under sections 3211(b), 
3221(c), and 3221(d) of the Railroad Retirement Tax Act as are not 
appropriated to the Railroad Retirement Account pursuant to the 
provisions of subsection (a) of this section. 
"(d) There is hereby authorized to be appropriated to the Railroad 
Retirement Account for each fiscal year, beginning with the fiscal year 
ending June 30, 1976, such sums as the Board determines to be neces-
sary on a level basis to pay before the end of fiscal year 2000 the total 
of (A) the amounts of the annuities paid and to be paid after 1974 
pursuant to the provisions of sections 3(h), 4(e), and 4(h) of this 
Act and pursuant to the provisions of sections 204(a) (3), 204(a) (4), 
206(3), and 207(3) of title I I of this Act, plus (B) any loss in inter-
est to such Account resulting from the payment of such amounts 
reduced by (C) such amount as the Board determines, on an estimated 
basis, is equal to the excess of (i) the interest which such account will 
actually earn in the fiscal years 1976 through 2000 over (ii) the inter-
est which such account would have earned in such fiscal years if the 
provisions of subsection (e) of this section were identical to the pro-
visions of section 15(c) of the Railroad Retirement Act of 1937. The 
Board shall, at the time of each actuarial valuation made prior to the 
fiscal year 2000 pursuant to the provisions of subsection (g) of this 
section re-evaluate the amount determined under the preceding sen-
Transfer of 
funds. 
42 u s e 401. 
45 u s e 228C-1. 
Supplemental 
annuities. 
45 u s e 228o. 
26 u s e 3211. 
3221. 
est. 
1348 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
tence for the purpose of determining the amounts to be appropriated 
thereunder. 
Investments. 
"(e) At the requcst and direction of the Board, it shall be the duty 
of the Secretary of the Treasury (hereinafter referred to as the 'Sec-
retary') to invest such portion of the amounts credited to the Rail-
road Retirement Account and the Railroad Retirement Supplemental 
Account as, in the judgment of the Board, is not immediately required 
for the payment of annuities, supplemental annuities, and death bene-
fits. Such investments may be made only in interest-bearing obliga-
tions of the United States or in obligations guaranteed as to both 
principal and interest by the United States. For such purpose such 
obligations may be acquired (A) on original issue at the issue price; 
or (B) by purchase of outstanding obligations at the market price. 
The purposes for which obligations of the United States may be 
31 use 774. 
issued under the Second Liberty Bond Act, as amended, are hereby 
extended to authorize the issuance at par of special obligations exclu-
sively to the accounts. Such obligations issued for purchase by the 
accounts shall have maturities fixed with due regard for the needs 
of the accounts, and shall bear interest at a rate equal to the average 
market yield, computed as of the end of the calendar month next 
preceding the date of such issue, borne by all marketable interest-
bearing notes of the United States then foraiing a part of the public 
debt that are not due or callable until after the expiration of three 
years from the end of such calendar month, except that where such 
rate is not a multiple of one-eighth of 1 per centum, the rate of 
interest on such obligations shall be the multiple of one-eighth of 1 
Rate o
f inter- 
per ceutum ucarest such rate: Provided., That the rate of interest on 
such obligations shall in no case be less than 3 per centum per annum. 
At the request of the Board the Secretary shall purchase other interest-
bearing obligations of the United States, or obligations guaranteed 
as to both principal and interest by the United States, or other obliga-
tions which are lawful investments for trust funds of the United 
States, on original issue or at the market price: Provided, That the 
interest yield of such obligations shall not be less than the interest 
rate determined in accordance with the preceding sentence. At the 
request of the Board, the Secretary shall sell at the market price such 
obligations in the accounts (other than special obligations issued 
exclusively to the accounts) as the Board designates. The Board shall 
from time to time request the Secretary to redeem such special obliga-
tions issued exclusively to the accounts as the Board designates and 
upon such request the Secretary shall redeem such obligations at par 
plus accrued interest. All requests of the Board to the Secretary, pro-
vided for in this subsection, shall be mandatory upon the Secretary. 
It shall be the duty of the Board to determine at all times what 
proportion of the accounts shall be invested in other than special 
obligations issued to the accounts and further to determine which of 
such obligations available to the accounts consistent with the foregoing 
requirements will provide the greatest rate of return on the funds 
invested. 
vitorrcommutee. 
"(f) The Board is hereby authorized and directed to select two 
actuaries, one from recommendations made by representatives of 
employees and the other from recommendations made by representa-
tives of employers as defined in paragraph (i) of section 1(a)(1) of 
this Act. These actuaries, along with a third who shall be designated 
by the Secretary of the Treasury, shall be known as the Actuarial 
Advisory Committee with respect to the Railroad Retirement Account. 
The actuaries so selected shall hold membership in the American 
Academy of Actuaries and shall be qualified in the evaluation of pen-
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1349 
sion plans: Provided, 
however, That these requirements shall not 
apply to any actuary who served as a member of the Committee prior 
to January 1,1975. The Committee shall examine the actuarial reports 
and estimates made by the Board and shall have authority to recom-
mend to the Board such changes in actuarial methods as they may 
deem necessary. The compensation of the members of the Committee, 
exclusive of the member designated by the Secretary, shall be fixed 
by the Board on a per diem basis. 
"(g) The Board shall include in its annual report a statement of 
the status and the operations of the Eailroad Retirement and Railroad 
Retirement Supplemental Accounts. At intervals not longer than three 
years the Board shall make an estimate of the liabilities created by 
this Act and shall include such estimate in its annual report. 
li. PRIVATE PENSIONS 
"SEC. 16. Nothing in this Act shall be taken as restricting or dis-
couraging payment by employers to retired employees of pensions 
or gratuities in addition to the annuities paid to such employees under 
this Act, nor shall this Act be taken as terminating any trust hereto-
fore created for the payment of such pensions or gratuities. The 
annuity, except a supplemental annuity under section 2(b), of an 
individual shall not be reduced on account of any pension or gratuity 
paid by an employer to such individual. 
Annual report. 
45 use 231c). 
FREE TRANSPORTATION 
"SEC. 17. It shall not be unlawful for carriers by railroad subject 
to this Act to furnish free transportation to individuals receiving 
annuities under this Act in the same manner as such transportation 
is furnished to employees in their service. 
u 
CREDITING SERVICE UNDER THE SOCIAL SECURITY ACT 
"SEC. 18. (1) Except as provided in subdivision (2), the term 
'employment' as defined in section 210 of the Social Security Act 
shall not include service performed by an individual as an employee 
as defined in section 1 (b) of this Act. 
"(2) For the purpose of determining (i) monthly insurance benefits 
under the Social Security Act to an employee who will have completed 
less than ten years of service and to others deriving from him or her 
during his or her life and (ii) monthly insurance benefits and lump-
sum death benefits under such Act with respect to the death of an 
employee who (A) w^ill have completed less than ten yeai-s of service 
or (B) w^ill have completed ten or more years of service but will not 
have had a current connection with the railroad industry at the time 
of his death, and for the purposes of section 203 of that Act, section 
210(a) (9) of the Social Security Act and subdivision (1) of this sec-
tion shall not operate to exclude from 'employment' under the Social 
Security Act service which would otherwise be included in such 
'employment' but for such sections. For such purpose, compensation 
paid in a calendar year shall, in the absence of evidence to the contrary, 
be presumed to have been paid in equal proportions with respect to all 
months in the year in which the employee will have been in sei-vice 
as an employee. In the application of tlie Social Secui-ity Act pursuant 
to this subdivision to service as an emplovee, all service as defined in 
section 1(d) of this Act shall be deemed to have been performed within 
the United States. 
45 use 23ip. 
45 use 231q. 
42 use 410. 
42 use 403. 
42 use 1305. 
38-1 fl4 n - 76 - 88 Pt. 1 
1350 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
"AUTOMATIC BENEFIT ELIGIBILITY REQUIREMENT 
ADJUSTMENTS 
42 Ssc IIY' 
"^^^' ^^- ^^^ ^^ ^^^^^ ^^ ®* ^^^ Social Security Act is amended at any 
time after December 31, 1974, to reduce the eligibility requirements 
for old-age insurance benefits, disability insurance benefits, wife's 
insurance benefits payable to a wife, husband's insurance benefits, 
child's insurance benefits payable to a child of a deceased individual, 
widow's insurance benefits payable to a widow, widower's insurance 
benefits, mother's insurance benefits payable to a widow, or parent's 
insurance benefits, such reduced eligibility requirements shall be appli-
cable, in accordance with regulations prescribed by the Board, to indi-
viduals, spouses, or survivors, as the case may be, under section 2 of this 
Act to the extent that such reduced eligibility requirements would 
provide such individuals, spouses, or survivors with entitlement to 
annuities under such section 2 to which they would not be entitled 
except for such reduced eligibility requirements: Provided, 
however, 
That no annuity shall be paid to any person pursuant to the provisions 
of this subsection if that person does not satisfy an eligibility 
requirement imposed by section 2 of this Act of a kind not imposed by 
42 use 1305. 
fi^Q Social Security Act on December 31,1974, or an eligibility require-
ment imposed by section 2 of this Act of a kind which was imposed 
by the Social Security Act on December 31, 1974, but which was not 
reduced by the amendment to that Act: Provided further, That the 
annuity amounts to which such individuals, spouses, or survivors 
will be entitled under this Act by reason of the provisions of this sub-
section shall be only such amounts as are determined under the pro-
visions of section 3(a), 4(a), or 4(f), respectively, of this Act. 
"(b) If title II of the Social Security Act is amended at any time 
after December 31, 1974, to provide monthly insurance benefits under 
that Act to a class of beneficiaries not entitled to such benefits there-
under prior to January 1, 1975, every person who is a member of such 
class of beneficiaries shall be entitled to annuities under section 2 of, 
this Act, in accordance with regulations prescribed by the Board, in 
an amount equal to the amount of the monthly insurance benefit to 
which such person would have been entitled under the Social Security 
Act if service as an employee after December 31, 1936, had been 
included in the term 'employment' as defined in that Act. 
"(c) If section 226 or title X V I I I of the Social Security Act is 
amended at any time after December 31,1974, to reduce the conditions 
of entitlement to, or to expand the nature of, the benefits payable 
thereunder, or if health care benefits in addition to, or in lieu of, the 
benefits payable under such section 226 or such title X V I I I are pro-
vided by any provision of law which becomes effective at any time 
after December 31, 1974, such reductions in the conditions of entitle-
ment to benefits, such expanded benefits, or such additional, or sub-
stituted, health care benefits shall be available to every employee (as 
defined in this Act), and those deriving from him, in the same manner, 
and to the same extent, as if his service as an employee after Decem-
ber 31, 1936, had been included in the term 'employment' as defined in 
the Social Security Act. The Board shall have the same authority, in 
accordance with regulations prescribed by it, to determine the rights 
of employees who will have completed ten years of service, and of 
those deriving from such employees, to benefits provided by reason 
of the provisions of this subsection as the Secretary of Health, Educa-
tion, and Welfare has with respect to individuals insured under the 
Social Security Act. 
"(d) Notwithstanding the provisions of subsections (a), (b), and 
(c) of this section— 
42 u s e 426, 
1395. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1351 
"(1) No annuity or other benefit shall be payable to any person 
on the basis of the compensation and years of service of an indi-
vidual by reason of the provisions of subsection (a), (b), or (c) 
of this section if, and to the extent that, such annuity or other 
benefit would duplicate a benefit payable to such person on the 
basis of such compensation and years of service under a provision 
of the Social Security Act, or any other Act of Congress, which 
^2 use 1305. 
becomes effective after December 31, 1974. 
"(2) No annuity shall be payable to a person by reason of sub-
section (a) or (b) of this section unless the individual upon whose 
compensation and years of service such annuity would be based 
will have (A) completed ten years of service, and (B) in the case 
of a survivor, had a current connection with the railroad industry 
at the time of his death. 
"(3) If the Social Security Act is amended after December 31, 
1974, to remove any, or all, restriction on the receipt of more than 
one monthly insurance benefit thereunder, annuity amounts pro-
vided a person under section 3(h), 4(e), or 4(h) of this Act, or 
under section 204(a)(3), 204(a)(4), 206(3), or 207(3) of title 
II of this Act, shall be reduced (but not below zero) by the amount 
of any annuity provided such person under this Act by reason 
of such amendment. 
"(4) If and to the extent that an annuity or other benefit pay-
able to a person by reason of the provisions of subsection (a), (b), 
or (c) of this section duplicates an annuity or other benefit then 
payable to such person under other provisions of this Act, such 
annuity or other benefit then payable under other provisions of 
this Act shall be reduced (but not below zero) by the amount of 
the annuity or other benefit payable by reason of subsection (a), 
(b),or(c). 
"SEPARABILITY 
"SEC. 20. If any provision of this Act, or the application thereof to 
"^^ "^^ ^sis. 
any person or circumstance, should be held invalid, the remainder of 
such Act, or the application of such provision to other persons or 
circumstances, shall not be affected thereby. 
"SHORT TITLE 
"SEC. 21. This Act may be cited as the 'Kailroad Ketirement Act 
Railroad Re-
of 1974'." 
tirement Act of 
TITLE II—TRANSITIONAL PEOVISIONS 
SEC. 201. The claims of individuals who, prior to the effective date 
of title I of this Act, became eligible for annuities, supplemental an-
nuities, or death benefits under section 2, 3(j), or 5 of the Railroad 
Retirement Act of 1937 shall be adjudicated by the Board under that 
Act in the same manner and with the same effect as if title I of this 
Act had not been enacted: Provided, however, That no annuity, sup-
plemental annuity, or death benefit shall be awarded under the Rail-
road Retirement Act of 1937 on the basis of an application therefor 
filed with the Board on or after the effective date of title I of this 
Act: Provided further, That no annuity under the Railroad Retire-
ment Act of 1935, no annuity or supplemental annuity under the Rail-
road Retirement Act of 1937, and no pension under section 6 of the 
Railroad Retirement Act of 1937 shall be payable for any month after 
December 31,1974. 
45 
45 
note 
45 
228c 
45 
45 
use 
use 
use 
, 228 
use 
use 
notes. 
45 use 
231t„ 
231 
228b,, 
e. 
228a. 
215-22. 
228f., 
1352 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
note. 
45 use 228f 
note. 
45 use 231 
gjjc^ 202. (a) Every individual who would have been entitled to 
45 use 215-22 8 ^^ annuity under the Railroad Retirement Act of 1935 for the month 
"°t^^- 
i of January 1975, if this Act had not been enacted, shall be entitled to 
an annuity under paragraph (i) of section 2(a)(1) of the Railroad 
Ante, p. 1312. 
Retirement Act of 1974, beginning January 1, 1975, in an amount 
Ante, p. 1319. 
determined under the provisions of section 3(a) of such Act, which 
amount shall initially be equal to the amount determined under clause 
45 use 228c. 
(i) of section 3(a) (6) of the Railroad Retirement Act of 1937 for 
the purpose of computing the last increase in such individual's 
annuity under the Railroad Retirement Act of 1935 pursuant to the 
provisions of section 105 of Public Law 93-69, less the amount of any 
monthly insurance benefit to which such individual is actually entitled 
(before any deductions on account of work) under the Social Security 
42 use 1305. 
J^QI 
(b) The amount of the annuity of an individual under subsection 
(a) of this section shall be increased by an amount, if any, equal to 
the amount by which (i) his annuity under the Railroad Retirement 
Act of 1935 for the month of December 1974 exceeds (ii) his annuity 
under subsection (a) of this section for the month of January 1975. 
r5^'usc"23i 
^E<^- ^^'^- (^) Every individual who would have been entitled to 
note. 
a pension under section 6 of the Railroad Retirement Act of 1937 for 
45 use 228f. 
^]^g month of January 1975, if this Act had not been enacted, shall 
be entitled to an annuity under paragraph (i) of section 2(a)(1) of 
the Railroad Retirement Act of 1974 in an amount determined under 
the provisions of section 3(a) of such Act, which amount shall initially 
be equal to the amount determined under clause (i) of section 3(a) (6) 
of the Railroad Retirement Act of 1937 for the purpose of computing 
the last increase in such individual's pension under section 6 of the 
Railroad Retirement Act of 1937 pursuant to the provisions of section 
105 of Public Law 93-69, less the amount of any monthly insurance 
benefit to which such individual is actually entitled (before any deduc-
tions on account of work) under the Social Security Act. 
(b) The amount of the annuity of an individual under subsection 
(a) of this section shall be increased by an amount, if any, equal 
to the amount by which (i) his pension under section 6 of the Railroad 
Retirement iVct of 1937 for the month of December 1974 exceeds (ii) 
his annuity under subsection (a) of this section for the month of 
January 1975. 
(c) The annuities of each individual under the preceding subsections 
of this section shall be paid on January 1, 1975, and on the first day 
of each calendar month thereafter during his life. 
note ^^^ ^^^ 
^'^^- ^^^' (^) Every individual who was entitled to an annuity 
under section 2(a) 1, 2(a)2, 2(a)3, 2(a)4, or 2(a)5 of the Railroad 
Retirement Act of 1937 for the month of December 1974, or who 
would have been entitled to such an annuity for such month except 
for the provisions of section 2(d) of such Act, and who would have 
been entitled to such an annuity for the month of January 1975, if 
this Act had not been enacted, shall be entitled to an annuity under 
paragraph (i), (ii), (iii), (iv),or (v), respectively, of section 2(a) (1) 
of the Railroad Retirement Act of 1974, beginning January 1, 1975: 
Provided, 
however, That if an individual who was entitled to an 
annuity under section 2(a)4 or 2(a)5 of the Railroad Retirement Act 
of 1974 is age 65 or older, on January 1, 1975, such individual shall 
be entitled to an annuity under paragraph (i) of section 2(a) (1) of 
the Railroad Retirement Act of 1974. For purposes of this subsection— 
(1) that portion of the individual's annuity as is provided 
under section 3(a) of the Railroad Retirement Act of 1974 shall 
initially be in an amount equal to the amount determined under 
clause (i) of section 3(a) (6) of the Railroad Retirement Act of 
45 use 228b. 
45 use 228b. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1353 
1937 for the purpose of computing the last increase in the amount 
^s use 228c. 
of such individual's annuity as computed under the provisions of 
section 3(a), and that part of section 3(e) which preceded the 
first proviso, of the Railroad Retirement Act of 1937, less the 
amount of any monthly insurance benefit to which such individual 
is actually entitled (before any deductions on account of work) 
under the Social Security Act; 
42 use 1305. 
(2) that portion of the individual's annuity as is provided 
under section 3(b) (1) of the Railroad Retirement Act of 1974 
^"'«' P- 1319. 
shall be in an amount, if any, equal to the amount by which (A) 
his annuity under section 2(a) of the Railroad Retirement Act of 
1937 for the month of December 1974 (before any reduction on 
account of age and without regard to section 2(d) of such Act) 
exceeds (B) (i), if such individual is entitled to an annuity amount 
provided under paragraph (3) of this subsection, the amount of 
the annuity which would have been provided such individual 
under paragraph (1) of this subsection (before any reduction 
due to such individual's entitlement to a monthly insurance benefit 
under the Social Security Act) for the month of January 1975 if 
he had no wages or self-employment income under the Social Se-
curity Act other than wages derived from service as an employee 
under the Railroad Retirement Act of 1974 after December 31, 
^"'«' P- isos. 
1936, and before January 1, 1975, or (ii), if such individual is not 
entitled to an annuity amount provided under paragraph (3) of 
this subsection, the amount of his annuity provided under para-
graph (1) of this subsection (before any reduction due to such 
individual's entitlement to a monthly insurance benefit under the 
Social Security Act) for the month of January 1975: Provided^ 
however^ That if the annuity of any individual under the Railroad 
Retirement Act of 1937 for the month of December 1974 was 
45 use 228a, 
computed under the first proviso of section 3(e) of such Act, the 
annuity of such individual for purposes of clause (A) of this para-
graph shall be the annuity which such individual would have 
received under such Act for the month of December 1974, if no 
other person had been included in the computation of the annuity 
of such individual; and 
(3) if the individual was entitled to an old-age insurance 
oid-ap or dis-
benefit or a disability insurance benefit under the Social Security benefus?^"'^^""^ 
Act on December 31, 1974, or was fully insured under that Act 
on that date, the annuity amounts provided under paragraphs (1) 
and (2) of this subsection shall be increased by an amount deter-
mined under the provisions of section 3(h)(1) of the Railroad 
Retirement Act of 1974: Provided^ however^ That, if the individual 
was entitled to an old-age insurance benefit or a disability insur-
ance benefit under the Social Security Act on December 31, 1974, 
such amount shall not be less nor more than an amount which 
would cause the total of the annuity amounts provided the 
individual by the provisions of this subsection for the month of 
January 1975 to equal the total of the annuity under the Railroad 
Retirement Act of 1937 (prior to any reduction on account of age 
and without regard to section 2(d) of that Act) plus the old-age 
or disability insurance benefit under the Social Security Act 
(before any reduction on account of age and deductions on accx)unt 
of work) which such individual would have received for such 
month if this Act had not been enacted. 
(4) if the individual was entitled to a wife's, husband's, 
widow's, or widower's insurance benefit under the Social Security 
Act on December 31, 1974, or is the wife, husband, widow, or 
widower of a person who was fully insured under that Act on 
1354 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
Ante, 
p. 1319. 
45 u s e 228b. 
Ante, 
p. 1312. 
Supplemental 
annuity, eligi-
bility. 
45 u s e 231 
note. 
45 u s e 228c. 
Spouse's an-
nuity. 
45 u s e 231 
note. 
Ante, 
p. 1327. 
42 u s e 1305. 
42 u s e 402. 
that date, the annuity amounts provided under paragraphs (1) 
and (2) of this subsection shall be increased by an amount deter-
mined under the provisions of section 3(h) (3) of the Railroad 
Retirement Act of 1974. 
(b) An individual who was awarded an annuity under section 2(a) 
of the Railroad Retirement Act of 1937, but who could not have become 
eligible for an annuity under paragraph 2 of such section, shall not be 
eligible for an annuity under paragraph (ii) of section 2(a)(1) of 
the Railroad Retirement Act of 1974. 
SEC. 205. (a) Every individual who was entitled to a supplemental 
annuity under section 3(j) of the Railroad Retirement Act of 1937 for 
the month of December 1974, or who would have been entitled to such 
a supplemental annuity for such month except for the provisions of 
section 2(d) of such Act, and who would have been entitled to such 
a supplemental annuity for the month of January 1975, if this Act had 
not been enacted, shall be entitled to a supplemental annuity under 
section 2(b) (1) of the Railroad Retirement Act of 1974, beginning 
January 1, 1975, in an amount, the provisions of section 3(e) of such 
Act notwithstanding, equal to the amount of the supplemental annuity 
to which such individual was entitled under section 3(j) of the Rail-
road Retirement Act of 1937 for the month of December 1974, or to 
which such individual would have been entitled for such month imder 
such section 3 (j) except for the provisions of section 2(d) of such Act. 
(b) An individual who was awarded an annuity under section 2(a) 
of the Railroad Retirement Act of 1937, but who could not have become 
eligible for a supplemental annuity under section 3(j) of such Act if 
this Act had not been enacted, shall not be eligible for a supplemental 
annuity under section 2(b) of the Railroad Retirement Act of 1974. 
SEC. 206. Every spouse who was entitled to an annuity under section 
2(e) or 2(h) of the Railroad Retirement Act of 1937 for the month 
of December 1974, or who would have been entitled to such an annuity 
for such month except for the provisions of section 2(d) of such Act, 
and who would have been entitled to such an annuity for the month 
of January 1975, if this Act had not been enacted, shall be entitled to 
an annuity under section 2(c) of the Railroad Retirement Act of 1974, 
beginning January 1, 1975. For purposes of this section— 
(1) that portion of the spouse's annuity as is provided under 
section 4(a) of the Railroad Retirement Act of 1974 shall initially 
be in an amount equal to the amount determined under clause (i) 
of section 3(a) (6) of the Railroad Retirement Act of 1937 for 
the purpose of computing the last increase in the amount of such 
spouse's annuity as computed under the provisions of section 2 
of the Railroad Retirement Act of 1937, less the amount of any 
wife's insurance benefit or husband's insurance benefit to which 
such spouse is actually entitled (before any deductions on account 
of work) under the Social Security Act on the basis of such 
individual's wages and self-employment income: Provided, 
how-
ever, That the amount of such annuity shall be subject to 
reduction in accordance with the provisions of section 202(k) or 
202 (q) of the Social Security Act, other than a reduction on 
account of age, in the same manner as any wife's insurance benefit 
or husband's insurance benefit payable under section 202 of the 
Social Security Act and shall also be subject to reduction in 
accordance with the provisions of section 4(i) (2) of the Railroad 
Retirement Act of 1974; 
(2) that portion of the spouse's annuity as is provided under 
section 4(b) of the Railroad Retirement Act of 1974 shall be in 
an amount, if any, equal to 50 per centum of the individual's 
annuity as computed in accordance with the provisions of para-
42 use 1305. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1355 
graph (2) of section 204(a) of this title: Provided^^ however^ That, 
in case of a spouse who is not entitled to an annuity amount pro-
vided under paragraph (3) of this section, if (A) the amounts of 
the annuity provided a spouse for the month of January 1975 by 
the provisions of paragraph (1) (before any reduction due to such 
spouse's entitlement to a wife's or husband's insurance benefit 
under the Social Security Act) and the preceding j)rovisions of 
this paragraph exceed (B) the amount of the annuity to which 
such spouse was entitled (before any reduction on account of age) 
for the month of December 1974 under section 2(e) or 2(h) of the 
Railroad Retirement Act of 1937 (deeming, for this purpose, any 
'•^ use 228b. 
increase in the amount of such annuity which, had this Act not 
been enacted, would have become effective January 1, 1975, by 
reason of an increase in the maximum amount payable as a wife's 
insurance benefit under the Social Security Act to have been 
effective for the month of December 1974), or to which such spouse 
would have been entitled for such month under such section 2(e) 
or 2(h) except for the provisions of section 2(d) of such Act, the 
amount of the annuity provided such spouse for the month of 
January 1975 by the preceding provisions of this paragraph shall 
be reduced until the total of the amounts described in clause (A) 
of this proviso equals the amount described in clause (B) : Pro-
vided further^ That, if the amount of the annuity of the spouse 
provided by paragraph (1) of this section is reduced by reason 
of the provisions of section 4(i) (2) of the Railroad Retirement 
Act of 1974, the amount of the annuity provided such spouse by 
^"*^' P- ^^^' 
the preceding provisions of this paragraph shall not be less than 
an amount which would cause the total of the annuity amounts 
provided such spouse under paragraph (1) (before any reduction 
pursuant to the provisions of section 202 (k) or 202 (q) of the 
Social Security Act and before any reduction due to such spouse's 
^
^
2 use 402. 
entitlement to a wife's or husband's insurance benefit under the 
Social Security Act) and paragraph (2) of this section for the 
month of January 1975 to equal the amount of the annuity (before 
any reduction on account of age) which such spouse would have 
received for such month under section 2(e) or 2(h) of the Rail-
road Retirement Act of 1937 (without regard to the provisions 
of section 2(d) of that Act) if this Act had not been enacted; and 
(3) if the spouse was entitled to an old-age insurance benefit 
or a disability insurance benefit under the Social Security Act of 
December 31, 1974, or was fully insured under that Act on that 
date, or was entitled to a wife's or a husband's insurance benefit 
under that Act on that date, the annuity amounts provided under 
paragraphs (1) and (2) of this section shall be increased by an 
amount determined under the provisions of section 4(e) (1), or, 
if the spouse was entitled only to a wife's or husband's insurance 
benefit, 4(e) (3) of the Railroad Retirement Act of 1974: Pro-
vided^ however^ That, if the spouse was entitled to a monthly 
insurance benefit under the Social Security Act of December 31, 
1974, such amount shall not be less nor more than an amount 
which would cause (A) the total of (i) the annuity amounts 
provided the spouse by the provisions of this section for the 
month of January 1975 plus (ii) the monthly insurance benefit 
to which such spouse is entitled for that month under the Social 
Security Act (before any reductions on account of age and deduc-
tions on account of work) to equal (B) the total of (i) the 
spouse's annuity under the Railroad Retirement Act of 1937 
'^^ ^
^
<
= '^'^^'^• 
(prior to any reduction on account of age and without regard to 
1356 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
45 use 228b. 
section 2(d) of that Act) plus (ii) the monthly insurance benefit 
under the Social Secuiity Act (before any reduction on account 
of age and deductions on account of work) which such spouse 
would have received for such month if this Act had not been 
enacted. 
Survivor's an- 
§^0. 207. Evcry survivor who was entitled to an annuity under 
""is'iTsc 231 
section 5 of the Railroad Retirement Act of 1937 for the month of 
note. 
December 1974, or who would have been entitled to such an annuity 
45 use 228e. 
^^^ such mouth except for the provisions of section 5(i) of such Act, 
and who would have been entitled to such an annuity for the month 
of January 1975, if this Act had not been enacted, shall be entitled to 
Ante, p. 1312. 
an annuity under section 2(d) of the Railroad Retirement Act of 1974 
beginning January 1, 1975. For purposes of this section— 
(1) that portion of the survivor's annuity as is provided under 
Ante. p. 1327. 
sectlou 4(f) of the Railroad Retirement Act of 1974 shall ini-
tially be in an amount equal to the amount determined under 
clause (i) of section 3(a) (6) of the Railroad Retirement Act of 
45 use 228c. 
1937 for the purpose of computing the last increase in the amount 
of such survivor's annuity as computed under the provisions of 
section 5(q) of the Railroad Retirement Act of 1937: Provided, 
however, That the amount of such annuity shall be subject to 
reduction in accordance with the provisions of section 202(k) or 
42 use 402, 
202(q) of the Social Security Act in the same manner as any 
widow's insurance benefit, mother's insurance bene^t. widower's 
insurance benefit, parent's insurance benefit, or child's insurance 
benefit payable under section 202 of the Social Security Act and 
shall also be subject to reduction in acco'^dance with the provisions 
of section 4(i) (2) of the Railroad Retirement Act of 1974; 
(2) that portion of the survivor's annuity as is provided under 
section 4(g) of the Railroad Retirement Act of 1974 shall ini-
tially be in an amount equal to 30 per centum of the amount com-
puted in accordance with the provisions of paragraph (1) of this 
section prior to any reductions, other than reductions on account 
of age, in accordance with the provisions of section 202(k) or 
202(q) of the Social Security Act and prior to any reductions in 
accordance with the provisions of section 4(i) (2) of the Rail-
road Retirement Act of 1974: Provided, hoioever. That, if such 
survivor is not entitled to an annuity amount provided under 
paragraph (3) of this section, such amount shall not be less than 
an amount which would cause (A) the total of the annuity 
amounts provided the survivor by the provisions of this section 
for the month of January 1975 to equal (B) the amount of the 
annuity which the survivor would have received for such month 
under section 5 of the Railroad Retirement Act of 1937 (without 
regard to section 5(i) of that Act) if this Act had not been 
enacted; and 
(3) if the survivor is a widow or widower who was entitled to 
an old-age insurance benefit or a disability insurance benefit under 
the Social Security Act on December 31,1974, or was fully insured 
under that Act on that date, the annuity amounts provided under 
paragraphs (1) and (2) of this section shall be increased by an 
amount determined under the Drovisions of 4(h)(1) of the 
Railroad Retirement Act of 1974: Provided, 
however. That, if 
the widow or widower was entitled to a monthly insurance benefit 
42 use 1305. 
under the Social Security Act on December 31,1974, such amount 
shall not be less nor more than an amount which would cause (A) 
the total of (i) the annuity amounts provided the widow or 
widower by the provisions of this section for the month of 
42 
45 
45 
45 
note. 
use 
use 
use 
use 
1305. 
228a. 
228e!. 
231 
45 use 228e. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1357 
January 1975 plus (ii) the monthly insurance benefit to which 
such widow or widower is entitled for that month under the Social 
Security Act (before any deductions on account of work) to 
equal (B) the total of (i) the widow's or widower's annuity under 
the Eailroad Retirement Act of 1937 (without regard to section 
6(i) of that Act) plus (ii) the monthly insurance benefit under 
the Social Security Act (before any deductions on account of 
work) which such widow or widower would have received for 
such month if this Act had not been enacted. 
SEC. 208. For purposes of paragraph (1) of section 204(a), para-
graph (1) of section 206, and paragraph (1) of section 207, the fact that 
the amount of the annuity payable to an individual, spouse, or survivor 
under the Railroad Retirement Act of 1937 for the month of Decem-
ber 1974 may not (i) in the case of an individual have been computed 
under the provisions of section 3(a) of such Act or that part of 
45 use 228c. 
section 3(e) of such Act which precedes the first proviso; (ii) in the 
case of a spouse, have been computed under the provisions of section 2 
of such Act; or (iii) in the case of a survivor, have been computed 
'•^ use 228b. 
under the provisions of section 5 of such Act, shall be disregarded, and 
the amount determined under clause (i) of section 3(a) (6) of such 
Act with respect to such individual, spouse, or survivor shall, for 
purposes of such paragraphs, be the amount which would have 
been determined under such clause (i) if the annuity of such individual 
had been computed under the provisions of section 3(a), and that 
part of section 3(e) which preceded the first proviso, of such Act; 
the annuity of such spouse had been computed under the provisions of 
section 2 of such Act; or the annuity of such survivor had been 
computed under the provisions of section 5 of such Act. 
SEC. 209, (a) Whenever monthly insurance benefits under section 
202 of the Social Security Act are increased, the amount of each 
annuity provided by section 202(a), section 203(a), paragraph (1) of 
section 204(a), paragraph (1) of section 206, and paragraphs (1) and 
(2) of section 207 shall be increased in the same manner, and effective 
the same date as other annuities of the same type payable under sec-
tion 2 of the Railroad Retirement Act of 1974 are increased. 
(b) The annuity amounts provided by section 202(b), section 203 
(b), paragraph (2) of section 204(a), and paragraph (2) of section 
206 shall be increased by the same percentage, or percentages, and 
effective the same date, or dates, as other annuity amounts of the same 
type are increased pursuant to the provisions of section 3(g) of the 
Railroad Retirement Act of 1974. 
^"'e, p. 1319. 
SEC. 210. The election of a joint and survivor annuity made before 
-
^
s use 231 
July 31,1946, by an individual to whom an annuity accrues under the 
Railroad Retirement Act of 1937 before January 1, 1975, shall be 
given effect as though the provisions of law under which the election 
was made had continued to be operative unless such election had been 
revoked prior to the time the annuity of such individual began to 
accrue. 
TITLE III—AMENDMENTS TO T H E SOCIAL SECURITY 
ACT 
SEC. 301. Section 202(1) of the Social Security Act is amended— 
^2 use 402. 
(1) by striking out "section 5 of the Railroad Retirement Act 
of 1937" and inserting in lieu thereof "section 2 of the Railroad 
Retirement Act of 1974"; and 
Ante, p. 1312. 
(2) by striking out "subsection (f)(1) of such section" and 
inserting in lieu thereof "section 6(b) of such Act". 
^"'^' P- 1334. 
Monthly 
ance bene 
creases. 
45 use 
note. 
42 use 
Annuity 
creases. 
insur-
fits. 
231 
402. 
in-
in-
Ante, 
p. 1312. 
note. 
1358 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 STAT. 
42 use 405. 
SEC, 302. (a) Section 205 (i) of the Social Security Act is amended 
by inserting immediately before the colon preceding the proviso there-
in the following: "(except that in the case of (A) an individual who 
will have completed ten years of service creditable under the Railroad 
45 use 228a^ 
Retirement Act of 1937 or the Railroad Retirement Act of 1974, (B) 
the wife or husband of such an individual, (C) any survivor of such 
an individual if such survivor is entitled, or could upon application 
become entitled, to an annuity under section 2 of the Railroad Retire-
ment Act of 1974, and (D) any other person entitled to benefits under 
section 202 of this Act on the basis of the wages and self-employment 
income of such an individual (except a survivor of such an individual 
where such individual did not have a current connection with the rail-
road industry, as defined in the Railroad Retirement Act of 1974, at 
the time of his death), such certification shall be made to the Railroad 
Retirement Board which shall provide for such payment or payments 
to such person on behalf of the Managing Trustee in accordance with 
the provisions of the Railroad Retirement Act of 1974)". 
4
2
^ use 405 
(b) Xhe amendment made by this section shall apply only with 
respect to benefits payable to individuals who first become entitled 
42 use 401. 
i
-
Q benefits under title I I of the Social Security Act after 1974. 
42 use 405. 
gEc. 303. Section 205(o) of the Social Security Act is amended— 
(1) by striking out "section 5 of the Railroad Retirement Act 
of 1937" and inserting in lieu thereof "section 2 of the Railroad 
Ante, p. 1312. 
Retirement Act of 1974"; 
(2) by striking out "subsection (f)(1) of such section" and 
Ante, p. 1334. 
inserting in lieu thereof "section 6(b) of such Act"; and 
(3) by striking out "section 4 of such Act" and inserting in lieu 
Ante, p. 1319. 
thercof "scctiou 3 (1) of such Act". 
SEC. 304. Sections 216(b), 216(c), 216(f), and 216(g) of the Social 
42 use 416. 
Security Act are each amended by striking out "section 5 of the Rail-
road Retirement Act of 1937" and inserting in lieu thereof "section 2 
of the Railroad Retirement Act of 1974". 
42 use 426. 
gj,(._ 3Q5_ (a) Section 226(b) of the Social Security Act is amended 
by striking out "section 22 of the Railroad Retirement Act of 1937" 
from paragraph (2) and inserting in lieu thereof "section 7(d) of the 
Ante, p. 1338. 
Railroad Retirement Act of 1974". 
(b) Section 226(d) of such Act is amended by striking out "section 
21 or section 22 of the Railroad Retirement Act of 1937" each time it 
appears therein and inserting in lieu thereof "section 7(d) of the Rail-
road Retirement Act of 1974". 
(c) Section 226(e) of such Act is amended by striking out "Railroad 
Retirement Act of 1937" each time it appears therein and inserting in 
lieu thereof "Railroad Retirement Act of 1974". 
42 use 1395S. 
gj,^_ 3oe. Section 1840(b) of the Social Security Act is amended by 
striking out "or pension under the Railroad Retirement Act of 1937" 
from paragraph (1) and inserting in lieu thereof "under the Railroad 
Retirement Act of 1974". 
SEC. 307. Section 1842(g) of the Social Security Act is amended by 
striking out "section 21(b) of the Railroad Retirement Act of 1937" 
and inserting in lieu thereof "section 7(d) of the Railroad Retirement 
Act of 1974". 
SEC. 308. Section 1843(b) of the Social Security Act is amended by 
striking out "or pension under the Railroad Retirement Act of 1937" 
and inserting in lieu thereof "under the Railroad Retirement Act of 
1974". 
42 use i395gg. 
SEC. 309. Section 1870(b) of the Social Security Act is amended by 
striking out "Railroad Retirement Act of 1937" each time it appears 
therein and inserting in lieu thereof "Railroad Retirement Act of 
1974". 
42 
use 1395U. 
42 
use 1395V. 
42 use 410. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1359 
SEC. 310. Section 1874(a) of the Social Security Act is amended by 
^^ use i395kk. 
striking out "Eailroad Ketirement Act of 1937" and inserting in lieu 
thereof "Railroad Retirement Act of 1974". 
SEC. 311. Section 210(1) of the Social Security Act is amended— 
(1) by striking out "section 4 of the Railroad Retirement Act 
of 1937" from paragraph 4(A) and inserting in lieu thereof 
"section 3(i) of the Railroad Retirement Act of 1974"; and 
Ante, p. 1319. 
(2) by striking out ", as provided in section 4(p) (2) of that 
Act", from paragraph (4) (A) thereof. 
TITLE IV—AMENDMENTS TO T H E RAILROAD 
UNEMPLOYMENT INSURANCE ACT 
SEC. 401. (a) Section 2(c) of the Railroad Unemployment Insurance 
Act is amended by striking out "Railroad Retirement Act of 1937" 
4
S use 352. 
and inserting in lieu thereof "Railroad Retirement Act of 1974" and by 
Ante, p. 1305. 
striking out "and section 10 (h')". 
(b) Section 2(g) of such Act is amended by striking out "section 
3(f) (1) of the Railroad Retirement Act of 1937" each time it appears 
therein and inserting in lieu thereof "section 6(a) (1) of the Railroad 
Retirement Act of 1974". 
Ante, P. 1334. 
SEC. 402. Section 4(a-l) of the Railroad Unemployment Insurance 
Act is amended by striking out "or pensions under the Railroad Retire- 
^s use 354. 
ment Act of 1935 or the Railroad Retirement Act of 1937" from para-
graph 
(ii) and inserting in lieu thereof "under the Railroad 
Retirement Act of 1974". 
SEC. 403. Section 10 of the Railroad Unemployment Insurance Act 
^s use 36o. 
is amended by striking out subsection (h) and all that appears therein. 
SEC. 404. Section 11(c) of the Railroad Unemployment Insurance 
Act is amended— 
^s use 361. 
(a) by striking out "Railroad Retirement Act of 1937 and the 
Railroad Retirement Act of 1935" and inserting in lieu thereof 
"Railroad Retirement Act of 1974"; and 
(b) by striking out "such Acts" and inserting in lieu thereof 
"such Act". 
SEC. 405. Section 12(1) of the Railroad Unemployment Insurance 
Act is amended by striking out "section 10(b) (4) of the Railroad 
Retirement Act of 1937" and inserting in lieu thereof "subdivisions 
(5), (6), and (9) of section 7(b) of the Railroad Retirement Act of 
1974". 
Ante, p. 1338.. 
TITLE V—AMENDMENTS TO T H E INTERNAL REVENUE 
CODE OF 1954 
SEC. 501. (a) Section 3221 (c) of the Internal Revenue Code of 1954 
26 use 3221. 
is amended— 
(1) by striking out "for appropriation to the Railroad Retire-
ment Supplemental Account provided for in section 15(b) of the 
Railroad Retirement Act of 1937"; 
(2) by striking out "under section 3(j) of such Act" and 
inserting in lieu thereof "at the level provided under section 3(j) 
of the Railroad Retirement Act of 1937 as in eifect on December 31, 
45 use 228c. 
1974"; and 
(3) by inserting after "section 3(j) (2) of the Railroad Retire-
ment Act of 1937" "or section 2(h) (2) of the Railroad Retirement 
Act of 1974". 
Ante. p. 
1312. 
(b) Section 3221 (d) of such Code is amended— 
45 use 362. 
1360 
PUBLIC LAW 93-445-OCT. 16, 1974 
[88 
STAT. 
Ante, p. 1312. 
26 use 6413. 
26 use 3231. 
(1) by striking out "section 3(j) of the Railroad Retirement 
Act of 1937" and inserting in lieu thereof "section 2(b) of the 
Railroad Retirement Act of 1974"; and 
(2) by striking out "section 3(j) of such Act" and inserting in 
lieu thereof "section 2(b) of such Act". 
SEC. 502. Section 6413(c) of the Internal Revenue Code of 1954 is 
amended— 
(a) by inserting "or section 3201, or by both such sections," 
after "section 3101" in paragraph (1) thereof; and 
(b) by adding at the end of paragraph (1) the following new 
sentence: "The term 'wages' as used in this paragraph shall, for 
purposes of this paragraph, include 'compensation' as defined in 
section 3231(e)." 
45 
use 228c. 
42 
use 
401. 
45 
use 231a 
note. 
Ante, p. 1305. 
45 
use 228b. 
TITLE VI—MISCELLANEOUS PROVISIONS AND 
E F F E C T I V E 
DATES 
SEC. 601. Section 3(a) (6) of the Railroad Retirement Act of 1937 
is amended by adding at the end thereof the following new sentences: 
"If the individual entitled to an increase detei-mined under the pre-
ceding provisions of this paragraph is also entitled to a benefit for the 
same month under title II of the Social Security Act, there shall, any 
provisions to the contrary notwithstanding, be offset against the total 
of the increase, or increases, of such individual determined under the 
preceding provisions of this paragraph, any amount by which such 
individual's social security benefit was increased during the period 
July 1, 1974, through December 31, 1974. For purposes of approxi-
mating any such offsets, the Railroad Retirement Board is authorized 
to determine the percentage figure which, when applied against cur-
rent social security benefits, will produce approximately the amount 
of the increase, or increases, in social security benefits during the 
period July 1,1974, through December 31,1974. The amount produced 
by applying such percentage figure to the current social security 
benefit of an individual shall be the amount utilized in making the 
offset prescribed by the provisions of this paragraph." 
SEC. 602. (a) The provisions of title I of this Act shall become 
effective on January 1, 1975, except as otherwise provided herein: 
Provided^ however, That annuities awarded under section 2 of the 
Railroad Retirement Act of 1974 on the basis of an application there-
for filed with the Board on or after such date may, subject to the 
limitations prescribed in section 5(a) of such Act, begin prior to 
such date, except that no annuity under paragraph (ii) of section 
2(a) (1) of such Act shall begin to accrue to a man prior to July 1, 
1974. 
(b) The provision of section l(o) of the Railroad Retirement Act 
of 1974 which provides that a "current connection with the railroad 
industry" will not be broken by "employment with the Department 
of Transportation, the Interstate Commerce Commission, the National 
Mediation Board, or the Railroad Retirement Board" shall not be 
applicable (A) for purposes of paragraph (iv) of section 2(a) (1) of 
such Act, to an individual wlio became disabled, as provided for pur-
poses of such paragraph, prior to January 1, 1975, (B) for purposes 
of section 2(b)(1) of such Act, to an individual whose annuity under 
section 2(a) of the Railroad Retirement Act of 1937 or section 2(a) (1) 
of the Railroad Retirement Act of 1974 first began to accrue prior 
to January 1, 1975, and (C) for purposes of section 2(d) (1) of such 
Act, to a survivor of a deceased employee if such employee died prior 
to January 1,1975. 
88 STAT. ] 
PUBLIC LAW 93-445-OCT. 16, 1974 
1361 
45 u s e 23la 
note. 
note. 
(c) The provisions of clause (i) (B) and clause (ii) (B) of section 
2(c) (1) of the Railroad Retirement Act of 1974 shall not be applicable "Xie, p. u u 
to the spouse of an individual if (A) such individual will have com-
pleted thirty years of service and will have been awarded an annuity 
under section 2(a) of the Railroad Retirement Act of 1937 or section 
45 use 228b, 
2(a)(1) of the Railroad Retirement Act of 1974 which first began 
to accrue prior to July 1, 1974, or (B) such individual will have com-
pleted less than thirty years of service and will have been awarded an 
annuity under section 2(a) of the Railroad Retirement Act of 1937 of 
section 2(a) (1) of the Railroad Retirement Act of 1974 which first 
began to accrue prior to January 1, 1975. For purposes of the entitle-
ment of the spouse of an individual described in clause (A) or (B) of 
the preceding sentence to an annuity under such section 2(c) (1), the 
provisions of clause (i) (B) of such section 2(c) (1) shall be deemed to 
read:" (B) has attained the age of 65". 
(d) The provisions of section 2(b) (1) of the Railroad Retirement 
Act of 1974 which permit an individual to become entitled to a supple-
mental annuity thereunder if he "has attained age 60 and completed 
thirty years of service" shall not be applicable to an individual who 
was awarded an annuity under section 2(a) of the Railroad Retirement 
Act of 1937 or section 2(a) (1) of the Railroad Retirement Act of 1974 
which first began to accrue prior to July 1,1974. 
(e) The provisions of section 7(e) of the Railroad Retirement Act 
"^"'n's^ 2
M
f
^ 
of 1974 shall be effective on the enactment date of this Act and shall note. 
apply with respect to all gifts and bequests covered thereunder, regard-
less of the date on which such gifts or bequests were made. 
SEC. 603. The provisions of title I I of this Act and the amendments ^^^^ use 402 
made by title I I I and title IV of this Act shall become effective on 
January 1,1975. 
SEC. 604. The amendments made by the provisions of title V of this 
Act shall become efective on January 1, 1975, and shall apply only 
with respect to compensation paid for services rendered on or after 
that date. 
SEC. 605. The amendment made by section 601 of this Act shall be Jf^"^"^ ^^^^ 
effective on the enactment date of this Act and shall apply with respect 
to any increase in annuities under the Railroad Retirement Act of 1937 ^s use 228a 
which becomes effective after June 30,1974. 
C A R L A L B E R T 
Speaker of the House of 
Representatives. 
JAMES 0. EASTLAND 
President 
of the Senate pro Tempore. 
IN THE HOUSE OF REPRESENTATIVES, U.S., 
October 15, 1974. 
The House of Representatives having proceeded to reconsider the bill (H.R. 
15301) entitled "An Act to amend the Railroad Retirement Act of 1937 to 
revise the retirement system for employees of employers covered thereunder, 
and for other purposes", returned by the President of the United States with 
his objections, to the House of Representatives, in which it originated, it was 
26 u s e 3221 
note. 
1362 
PUBLIC LAW 93-446-OCT. 17, 1974 
[88 STAT. 
Resolved, That the said bill pass, two-thirds of the House of Representatives 
agreeing to pass the same. 
Attest: 
W. P A T 
J E N N I N G S 
Clerk. 
I certify that this Act originated in the House of Representatives. 
W. P A T 
J E N N I N G S 
Clerk. 
IN THE SENATE OF THE UNITED STATES, 
October 16,1974. 
The Senate having proceeded to reconsider the bill (H.R. 15301) entitled 
"An Act to amend the Railroad Retirement Act of 1937 to revise the 
retirement system for employees of employers covered thereunder, and for 
other purposes", returned by the President of the United States with his 
objections to the House of Representatives, in which it originated, it was 
Resolved, That the said bill pass, two-thirds of the Senators present having 
voted in the affirmative. 
Attest: 
F R A N C I S R . V A L E O 
Secretary. 
October 17, 1974 
[S. J. Res. 123] 
Public Law 93-446 
JOINT RESOLUTION 
Authorizing the procurement of an oil portrait and marble bust of former Chief 
Justice Earl Warren. 
Former Chief 
Justice Earl 
Warren. 
Oil portrait 
and marble bust, 
procurement. 
Appropriation. 
Resolved by the Senate and House of Representatives 
of the United 
States of America in Congress assembled, That (a) the Marshal of the 
Supreme Court of the United States, subject to the direction and 
approval of Chief Justice of the United States, is authorized and 
directed to procure an oil portrait and a marble bust, including 
pedestal, of the former Chief Justice Earl Warren and to cause them 
to be placed in the United States Supreme Court Building. 
(b) There is authorized to be appropriated $25,000 to carry out the 
purposes of this joint resolution. 
Approved October 17, 1974.