A bill to amend the Railroad Retirement Act of 1974 with respect to the computation of annuity amounts in certain cases, and for other purposes.
PL 94-547 (H.R.14041), enacted 10/18/1976

PUBLIC LAW 94-547—OCT. 18, 1976 
90 STAT. 2523 
Public Law 94-547 
94th Congress 
An Act 
To amend the Railroad Retirement Act of 1974 witli respect to the computation 
of annuity amounts in certain cases, and for other purposes. 
Be it enobcted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled, That (a) section 
204(a) of Public Law 93-445 is amended— 
(1) By striking out paragraph (1) and inserting in lieu thereof the 
following: 
"(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 (A) 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 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 
or (B), if less in a case where such individual is not entitled to 
an annuity amount provided under paragraph (3) of this subsec-
tion, the amount of the annuity under section 2(a) of the Railroad 
Retirement Act of 1937 (before any reduction on account of age 
and without regard to section 2(d) of such Act) which such 
individual would have received for the month of January 1975 if 
this Act had not been enacted: Provided, however, That such 
annuity amount shall be subject to reduction in accordance with 
the provisions of section 3(m) of the Railroad Retirement Act of 
1974 in the same manner as other annuity amounts provided 
under section 3(a) of the Railroad Retirement Act of 1974;" and 
(2) By inserting "no greater than" after "paragraph shall be" in 
the proviso to paragraph (2). 
(b) Section 204 of Public Law 93-445 is further amended by adding 
at the end thereof the following new subsection: 
"(d) The annuity amount provided an individual by paragraph 
(1) of this subsection as increased from time to time shall be deemed 
to be the primary insurance amount of such individual for purposes of 
computing the annuity of the spouse of such individual under section 
4(a) of the Railroad Retirement Act of 1974.". 
(c) Section 206 of Public Law 93-445 is amended by striking out 
paragraph (1) and inserting in lieu thereof the following: 
"(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 (A) 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 or (B), if less 
in a case where such spouse is not entitled to an annuity amount 
provided by paragraph (3) of this section, the amount of the 
annuity under section 2(e) or 2(h) of the Railroad Retirement 
Act of 1937 (before any reduction on account of age and without 
regard to section 2(d) of such Act) which such spouse would 
Oct. 18, 197e> 
[H.R. 14041] 
Railroad 
Retirement Act of 
1974, 
amendment. 
Annuity amounts. 
45 u s e 231 note. 
45 u s e 231b. 
45 u s e 228c. 
45 u s e 228c. 
45 u s e 231 note. 
45 u s e 231c. 
45 u s e 231 note. 
90 STAT. 2524 
PUBLIC LAW 94-547—OCT. 18, 1976 
45 use 402. 
45 use 231c. 
Effective date. 
45 use 231 note. 
Survivor 
annuities. 
45 use 231c. 
45 use 231a. 
45 use 231d. 
45 use 231b. 
have received for the month of January 1975 if this Act had not 
been enacted: Provided^ however^ That the amount of such 
annuity shall be subject to reduction in accordance with the provi-
sions 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 pay-
able under section 202 of the Social Security Act and shall also 
be subject to reduction in accordance with the provisions of sec-
tion 4(i) of the Eailroad Ketirement Act of 1974;". 
(d) The amendments made by this section shall be effective Jan-
uary 1, 1975: Provided^ however^ That the increases in annuities effec-
tive June 1,1975, and June 1,1976, shall be in the amount which would 
have been provided if this Act had not been enacted. 
SEC. 2. (a) Section 4(g) of the Railroad Eetirement Act of 1974 is 
amended— 
(1) By striking out "subsections (a) and (b) of this section" each 
time it appears therein and inserting in lieu thereof "subsections (a), 
(b), and (e) (3) of this section"; and 
(2) By inserting immediately after '"''Provided^ however^'' the fol-
lowing: "That if a widow or widower of a deceased employee is 
entitled to an annuity under section 2(a) (1) of this Act and if either 
such widow or widower or such deceased employee will have com-
pleted ten years of service prior to January 1,1975, the amount of the 
annuity of such widow or widower under the preceding provisions of 
this subsection shall be increased by an amount equal to the amount, 
if any, by which (A) the widow's or widower's insurance annuity to 
which such widow or widower would have been entitled, upon attain-
ing age 65, under section 5(a) of the Eailroad Eetirement Act of 1937 
as in effect on December 31, 1974 (without regard to the proviso of 
that section or the first proviso of section 3(e) of that Act), on the 
basis of the deceased employee's renmneration and service prior to 
January 1, 1975, increased by the same percentage, or percentages, as 
widow's and widower's insurance benefits under section 202 of the 
Social Security Act are increased during the period from January 1, 
1975, to the later of the date on which such widow's or widower's 
annuity under section 2(a) (1) of this Act began to accrue or the date 
on which such widow's or widower's annuity under section 2(d) (1) 
of this Act began to accrue, exceeds (B) the total of the annuity 
amounts to which such widow or widower was entitled (after any 
reductions pursuant to subsection (i) (2) of this section but before 
any deductions on account of work) under the preceding provisions of 
this subsection and subsection (f) of this section as of the later of the 
date on which such widow's or widower's annuity under section 
2(a) (1) of this Act began to accrue or the date on which such widow's 
or widower's annuity under section 2(d)(1) of this Act began to 
accrue: Provided furt'her,''\ 
(b) Section 4 of such Act is further amended by striking out sub-
section (h) and all that appears therein and inserting in lieu thereof 
the following: 
"(h) 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 of Decem-
ber 31, 1974, shall be increased by an amount equal to the amount, if 
any, by which (A) the widow's or widower's insurance annuity to 
PUBLIC LAW 94-547—OCT. 18, 1976 
90 STAT. 2525 
which such widow or widower would have been entitled, upon attain-
ing age 65, under section 5(a) of the Railroad lietirement Act of 1937 
as in effect on December 31, 1974 (without regard to the 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, increased by the same percentage, or percentages, as 
widow's and widower's insurance benefits under section 202 of the 
Social Security Act are increased during the period from January 1, 
1975, to the later of the date on which such widow's or widower's 
annuity under section 2(d) (1) of this Act began to accrue or the date 
beginning the first month for which such widow or widower is entitled 
to an old age insurance benefit or disability insurance benefit under the 
Social Security Act, exceeds (B) the total of the annuity amounts to 
which such widow or widower was entitled (after any reductions pur-
suant to section 202(k) or 202(q) of the Social Security Act but 
before any deductions on account of work) under subsections (f) and 
(g) of this section as to the later of the date on which such widow's or 
widower's annuity under section 2(d) (1) of this Act began to accrue 
or the date beginning the first month for which such widow or wid-
ower is entitled to an old-age insurance benefit or disability insurance 
benefit under the Social Security Act: Provided^ however, That, if a 
widow or widower was entitled (or would have been entitled except 
for the provisions of section 2(e) or 2(f) of this Act) to an annuity 
amount under subdivision (1) or (2) of subsection (e) of this section 
in the month preceding the employee's death, the amount of the annu-
ity 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 pursuant to section 202(k) or 202(q) of the 
Social Security Act but before any deductions on account of work) 
under subsections (f) and (g) of this section and the preceding provi-
sions of this subsection as of the date such widow's or widower's annu-
ity under section 2(d) (1) of this Act began to accrue to equal (B) the 
total of the annuity amounts to which such widow or widower was 
entitled (or would have been entitled except for the provisions of sec-
tion 2(e) or 2(f) of this Act) as a spouse under subsections (a), (b), 
and (e) of this section (after any reductions on account of age) in the 
month preceding the employee's death.". 
(c) The amendments made by this section shall be effective with 
respect to annuities accruing for months after the month in which 
this Act is enacted: Provided, 
however. That the amendments made 
by subsection (b) of this section shall not operate to decrease any 
annuity amounts awarded under section 4(h) of the Railroad Retire-
ment Act of 1974 prior to the date on which these amendments become 
effective. 
SEC. 3. (a) Section 15(c) of the Railroad Retirement Act of 1974 
is amended by adding at the end thereof the following new sentences: 
"Whenever the, Board finds at any time that the balance in the Railroad 
Retirement Supplemental Account will be insufficient to pay the 
supplemental annuities which it estimates are due, or will become due. 
under section 2(b) of this Act, it shall request the Secretary of the 
Treasury to transfer from the Railroad Retirement Account to the 
credit of the Railroad Retirement Supplemental Account such moneys 
as the Board estimates would be necessary for the payment of such 
supplemental annuities, and the Secretary shall make such transfer. 
Whenever the Board finds that the balance in the Railroad Retirement 
42 use 402. 
45 use 231a. 
42 use 1305. 
Effective date. 
45 use 231c 
note. 
45 use 231c. 
45 use 231n. 
Transfer of 
moneys. 
89-194 O—78—pt. 2 
67 
90 STAT. 2526 
^ 
PUBLIC LAW 94-547—OCT. 18, 1976 
Supplemental Account, without regard to the amounts transferred 
pursuant to the next preceding sentence, is sufficient to pay such sup-
plemental annuities, it shall request the Secretary of the Treasury to 
retransfer from the Railroad Retirement Supplemental Account to 
the credit of the Railroad Retirement Account such moneys as in its 
judgment are not needed for the payment of such supplemental 
annuities, plus interest at an annual rate equal to the average rate of 
interest borne by all special obligations held by the Railroad Retire-
ment Account on the last day of the preceding fiscal year, rounded to 
the nearest multiple of one-eighth of 1 per centum, and the Secretary 
shall make such retransfer.". 
Effective date. 
(b) The amendment made by this section shall be effective on the 
45 use 23 In 
enactment date of this Act. 
2?Tisr 2^1 
^^^' *• ^^) Section 1(h) (6) of the Railroad Retirement Act of 1974 
45 utsL 261. 
jg amended by striking out the word "and" after paragraph (iv), by 
changing the period at the end of paragraph (v) to a semicolon, and 
by adding the following new paragraphs after paragraph (v) : 
"(vi) the amount of any payment (including any amount paid 
by an employer for insurance or annuities, or into a fund, to pro-
vide for any such payment) made to, or on behalf of, an employee 
or any of his dependents under a plan or system established by 
an employer which makes provision for his employees generally 
(or for his employees generally and their dependents) or for a 
class or classes of his employees (or for a class or classes of his 
employees and their dependents), on account of sickness or acci-
dent disability or medical or hospitalization expenses in connec-
tion with sickness or accident disability; and 
"(vii) an amount paid specifically—either as an advance, as 
reimbursement or allowance—for traveling or other bona fide 
and necessary expenses incurred or reasonably expected to be 
incurred in the business of the employer provided any such 
^ 
payment is identified by the employer either by a separate pay-
ment or by specifically indicating the separate amounts where 
both wages and expense reimbursement or allowance are combined 
in a single payment.". 
26 use 3231. 
(b) Section 3231(e) of the Internal Revenue Code of 1954 is 
amended by striking out the second sentence and inserting in lieu 
thereof the following: "Such term does not include (i) the amount of 
any payment (including any amount paid by an employer for insur-
ance or annuities, or into a fund, to provide for any such payment) 
made to, or on behalf of, an employee or any of his dependents under 
a plan or system established by an employer which makes provision 
for his employees generally (or for his employees generally and their 
dependents) or for a class or classes of his employees (or for a class 
or classes of his ernployees and their dependents), on account of sick-
ness or accident disability or medical or hospitalization expenses in 
connection with sickness or accident disability, (ii) tips (except as is 
provided under paragraph (3)), (iii) the voluntary payment by an 
employer, without deduction from the remuneration of the employee^ 
of the tax imposed on such employee by section 3201, or (iv) an 
amount paid specifically—either as an advance, as reimbursement or 
allowance—for traveling or other bona fide and necessary expenses 
incurred or reasonably expected to be incurred in the business of the 
employer provided any such payment is identified by the employer 
either by a separate payment or by specifically indicating the separate 
amounts where both wages and expense reimbursement or allowance 
are combined in a single payment.". 
PUBLIC LAW 94-547—OCT. 18, 1976 
90 STAT. 2527 
(c) (1) The amendments made by subsection (a) of this section shall 
be effective January 1,1975. 
(2) The amendments made by subsection (b) of this section shall 
apply with respect to taxable years ending after December 31, 1953: 
Provided^ however^ That any taxes paid under the Railroad Retire-
ment Tax Act prior to the date on which this Act is enacted shall not 
be affected or adjusted by reason of the amendments made by such sub-
section (b) except to the extent that the applicable period of limita-
tion for the assessment of tax and the filing of a claim for credit or 
refund has not expired prior to the date on which this Act is enacted. 
If the applicable period of limitation for the filing of a claim for 
credit or refund would expire within the six-month period following 
the date on which this Act is enacted, the applicable period for the 
filing of such a claim for credit or refund shall be extended to include 
such six-month period. 
Approved October 18, 1976. 
Effective dates. 
45 u s e 231 note. 
26 u s e 3231 
note. 
Extension. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-1465, Pt. 1 (eomm. on Interstate and Foreign eommerce). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Sept. 20, considered and passed House. 
Oct. 1, considered and passed Senate.