Public Law 86–28

Section 2(a)8 of the Railroad Retirement Act of

50 Stat. 309.

45 USC 228b.

1937 is amended to read as follows:

“3.

Individuals who will have attained the age of sixty and will

Women.

Reduced annuity.

have completed thirty years of service or, in the case of women, who will have attained the age of sixty-two and will have completed less than thirty years of service, but the annuity of such individual shall be reduced by one one-hundred-and-eightieth for each calendar month that he or she is under age sixty-five when the annuity begins to accrue.”

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Section 2(d) of such Act is amended by adding at the end

Disability annuities.

thereof the following new sentence: “If pursuant to the third sentence of this subsection 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 the first sentence of this subsection) did not exceed $1,200, 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 fifth sentence of this subsection, shall then be payable. If the total amount of such individual’s earnings during such year (exclusive of earnings for services described in the first sentence of this subsection) is in excess of $1,200, the number of months in such year with respect to which an annuity is not payable by reason of such third and fifth sentences shall not exceed, one month for each $100 of such excess, treating the last $50 or more of such excess as $100; and if the amount of the annuity has changed during such year, any payments of annuity which become payable solely by reason of the limitation contained in this sentence shall be made first with respect to the month or months for which the annuity is larger.”

Section 2(e) of such Act is amended by striking out “than an

Spouses’s annuity.

amount” and inserting in lieu thereof “than 110 per centum of an amount”.

Section 2(g) of such Act is amended by inserting after “wife under age 65” the. following: “(other than a wife who is receiving such annuity by reason of an election under subsection (h))”.

Section 2 of such Act is further amended by adding at the end thereof the following new subsection:

“(h)“(h)

A spouse who would be entitled to an annuity under subsection (e) if she or he 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 one one-hundred-and-eightieth for each calendar month that the spouse is under age 65 when the annuity begins to accrue.”

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Section 3(a) of the Railroad Retirement Act of 1937 is

Annuity computation.

45 USC 228c.

amended (1) by striking out “3.04”, “2.28”, and “1.52” and inserting in lieu thereof “3.35”, “2.51”, and “1.67”, respectively; and (2) by striking out “$200” and inserting in lieu thereof “$250”.

Section 3(c) of such Act is amended by inserting after “or in

45 USC 228c.

excess of $350 for any month after June 30, 1954,” the following: “and before the calendar month next following the month in which this Act was amended in 1959, or in excess of $400 for any month after the month in which this Act was so amended,”.

Section 3(e) of such Act is amended (1) by striking out “$4.55”, “$75.90”, and “his monthly compensation” and inserting in lieu thereof “$5.00”, “$83.50” and “110 per centum of his monthly compensation”, respectively; (2) by striking out “is less than the amount, or the additional amount” and inserting in lieu thereof “is less than 110 per centum of the amount, or 110 per centum of the additional amount”; (3) by inserting after “age sixty-five,” the following: “women entitled to spouses’ annuities pursuant to elections made under subsection (h) of section 2 to be entitled to wife’s insurance benefits determined under section 202(q) of the Social Security Act,”; and (4) by striking out

70 Stat. 809.

42 USC 402.

“such amount or such additional amount” and inserting in lieu thereof “110 per centum of such amount or 110 per centum of such additional amount”.

Section 5(f) (2) of the Railroad Retirement Act of 1937

Survivor annuities.

45 USC 228e.

is amended by striking out “and 7 per centum of his or her compensation after December 31, 1946 (exclusive in both cases of compensation in excess of $300 for any month before July 1, 1954, and in the latter case in excess of $350 for any month after June 30, 1954),” and by inserting in lieu thereof the following: “plus 7 per centum of his or her compensation paid after December 31, 1946, and before January 1, 1959, plus 7½ per centum of his or her compensation paid after December 31, 1958, and before January 1, 1962, plus 8 per centum of his or her compensation paid after December 31, 1961 (exclusive of compensation in excess of $300 for any month before July 1, 1954, and in excess of $350 for any month after June 30, 1954, and before the calendar month next following the month in which this Act was amended in 1959, and in excess of $400 for any month after the month in which this Act was so amended),”.

Section 5(h) of such Act is amended by striking out “$33”, “$176”, and “$15.40” wherever they appear and inserting in lieu thereof “$36.30”, “$193.60”, and “$16.95”, respectively.

Section 5(i)(1)(ii) of such Act is amended by striking out “or in which month he engaged on seven or more different calendar days in noncovered remunerative activity outside the United States (as defined in section 203(k) of the Social Security Act)”

42 USC 403.

and inserting in lieu thereof the following: “or, having engaged in any activity outside the United States, would be charged under such section 203(e) with any earnings derived from such activity if it had been an activity within the United States”.

Clause (A) (i) of section 5(1) (9) of such Act is amended by

72 Stat. 1781.

45 USC 228e.

striking out the word “and” appearing after “July 1, 1954,” and by inserting after “June 30, 1954,” the following: “and before the calendar month next following the month in which this Act was amended in 1959, and any excess over $400 for any calendar month after the month in which this Act was so amended,”.

Clause (A) (ii) of section 5(1) (9) of such Act is amended (1) by inserting “and before 1959” after “1954” where it first appears; (2) by inserting after “$4,200” where it first appears the following: “, or for any calendar year after 1958 is less than $4,800,”; (3) by striking out “$350” and inserting in lieu thereof “$400”; and (4) by striking out “and $4,200 for years after 1954, by” and inserting in lieu thereof the following: “, $4,200 for years after 1954 and before 1959, and $4,800 for years after 1958, by”.

Section 5(1) (10) of such Act is amended by striking out

45 USC 228e.

“44” , “11”, “$350”, “$15.40”, “$36.66”, “$27.50”, and “$14.66” wherever they appear and inserting in lieu thereof “49”, “12”, “$400”, “$16.95”, “$40.33”, “$30.25”, and “$16.13”, respectively.

The amendments made by section 1 (other than subsection

Effective dates.

(b) thereof), by subsections (a) and (c) of section 2, and by subsection (b) of section 3 shall be effective only with respect to annuities (not including annuities to which section 5 applies) accruing for months after the month of enactment of this Act. The amendment made by subsection (b) of section 1 and by subsection (c) of section 3 shall be effective with respect to annuities accruing during the calendar year 1959 and subsequent calendar years. The amendment made by subsection (a) of section 3 shall be effective only with respect to lump-sum payments (under section 5(f) (2) of the Railroad Retirement Act of 1937) in the case of deaths occurring after the month of enactment of this Act. The amendments made by subsection (f) of section 3 shall be effective only with respect to annuities accruing for months after the month of enactment of this Act and lump-sum payments (under section 5(f)(1) of the Railroad Retirement Act of 1937) in the case of deaths occurring after the month of enactment of this Act. Sections 4 and 5 shall be effective only with respect to pensions due in calendar months after the month next following the month of enactment of this Act and annuities accruing for months after the month of enactment of this Act.

All recertifications required by reason of the amendments made

Recertifications.

by this part shall be made by the Railroad Retirement Board without application therefor.

Section 3201 of the Railroad Retirement Tax Act is amended to read as follows:

“SEC. 3201. RATE OF TAX.

“In addition to other taxes, there is hereby imposed on the income

Employees.

of every employee a tax equal to—

“(1)“(1)

6 ¾ percent of so much of the compensation paid to such employee for services rendered by him after the month in which this provision was amended in 1959, and before January 1, 1962, and

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“(2)“(2)

7 ¾ percent of so much of the compensation paid to such employee for services rendered by him after December 31, 1961,

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as is not in excess of $400 for any calendar month: Provided, That the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by

68A Stat. 415.

26 USC 3101.

70 Stat. 845.

68A Stat. 431.

paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956.”

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Section 3202(a) of the Railroad Retirement Tax Act is

26 USC 3202.

68A Stat. 432.

amended (1) by striking out “after December 31, 1954” wherever it appears and inserting in lieu thereof “after the month in which this provision was amended in 1959”; (2) by striking out “$350” wherever it appears and inserting in lieu thereof “$400”; (3) by striking out “after 1954” and inserting in lieu thereof “after the month in which this provision was amended in 1959”.

Section 3211 of the Railroad Retirement Tax Act is amended

26 USC 3211.

to read as follows:

“SEC. 3211. RATE OF TAX.

“In addition to other taxes, there is hereby imposed on the income

Employee representative.

of each employee representative a tax equal to—

“(1)“(1)

13 ½ percent of so much of the compensation paid to such employee representative for services rendered by him after the month in which this provision was amended in 1959, and before January 1, 1962, and

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“(2)“(2)

14 ½ percent of so much of the compensation paid to such employee representative for services rendered by him after December 31, 1961,

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as is not in excess of $400 for any calendar month: Provided, That the rate of tax imposed by this section shall be increased, with respect to compensation paid for services rendered after December 31, 1964, by a number of percentage points (including fractional points) equal at any given time to twice the number of percentage points (including fractional points) by which the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate

26 USC 3101.

provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956.”

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Section l(i) of the Railroad Unemployment Insurance

Compensation base.

52 Stat. 1095; 68 Stat. 1041.

45 USC 351.

Act is amended by striking out the proviso in the first sentence and inserting in lieu thereof “: Provided, however, That in computing the compensation paid to any employee, no part of any month’s compensation 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 the calendar month next following the month in which this Act was amended in 1959, or in excess of $400 for any month after the month in which this Act was so amended, shall be recognized”.

The first proviso of section l(k) of the Railroad Unemployment Insurance Act is amended by striking out “$400” and inserting in lieu thereof “$500”.

Section 2(a) of the Railroad Unemployment Insurance

Daily benefit rates.

45 USC 352.

Act is amended by striking out the language between “(i)” and “(ii)” and inserting in lieu thereof the following: “for each day of unemployment in excess of four during any registration period, and”.

Section 2(a) of such Act is further amended by striking out columns I and II and inserting in lieu thereof the following:

“Column I		Column II
Total Compensation		Daily Benefit Rate
$500 to $699.99		$4.50
700 to 999.99		5. 00
1,000 to 1,299.99		5. 50
1.300 to 1,599.99		6. 00
1,600 to 1,899.99		6. 50
1,900 to 2,199.99		7. 00
2,200 to 2,499.99		7. 50
2,500 to 2,799.99		8. 00
2.800 to 3,099.99		8. 50
3,100 to 3,499.99		9. 00
3,500 to 3,999.99		9. 50
4,000 and over		10. 20”.

The proviso in such section 2(a) is amended by striking out “50” and “$8.50” and inserting in lieu thereof “60” and “$10.20”, respectively.

Section 2(c) of the Railroad Unemployment Insurance

Temporary extension of benefits.

Act is amended by striking out the period at the end thereof and inserting in lieu of such period a colon and the following: “And provided further, That, with respect to an employee who has ten or more years of service as defined in section 1 (f) of the Railroad

45 USC 228a.

Retirement Act of 1937, who did not voluntarily leave work without good cause or voluntarily retire, and who had current rights to normal benefits for days of unemployment in a benefit year but has exhausted such rights, the benefit year in which such rights are exhausted shall be deemed not to be ended until the last day of the extended benefit period determined under the following schedule, and the maximum number of days of, and amount of payment for, unemployment within such benefit year for which benefits may be paid to the employee shall be enlarged to include all compensable days of unemployment within such extended benefit period:

“If the employee’s years of service’ total—	The extended benefit period shall begin on the first day of unemployment following the day on which the employee exhausted his then current rights to normal benefits for days of unemployment and shall continue for successive fourteen-day periods (each of which periods shall constitute a registration period) until the number of such fourteen-day periods totals—
10 and less than 15	7 (but not more than 65 days)
15 and over	13

but no such extended benefit period shall extend beyond the beginning of the first registration period in a benefit year in which the employee is again qualified for benefits in accordance with section 3 of this Act on the basis of compensation earned after the first of such successive fourteen-day periods has begun. For an employee who has ten or more years of service, who did not voluntarily leave work without good cause or voluntarily retire, who has fourteen or more consecutive days of unemployment, and who is not a ‘qualified employee’ for the general benefit year current when such unemployment commences but is or becomes a ‘qualified employee’ for the next succeeding general benefit year, such succeeding benefit year shall, in his case, begin on the first day of the month in which such unemployment commences.”

An employee who has less than ten years of service as defined

45 USC 228a.

in section 1(f) of the Railroad Retirement Act of 1937, and who has after June 30, 1957, and before April 1, 1959, exhausted (within the meaning prescribed by the Railroad Retirement Board by regulation) his rights to unemployment benefits, shall be paid unemployment benefits for days of unemployment, not exceeding sixty-five, which occur in registration periods beginning on or after June 19, 1958, and before July 1, 1959, and which would not be days with respect to which he would be held entitled otherwise to receive unemployment benefits under the Railroad Unemployment Insurance Act, except that an

52 Stat. 1094.

45 USC 367.

employee who has filed, and established, a first claim for benefits under the Temporary Unemployment Compensation Act of 1958 may not

72 Stat. 171.

42 USC 1400 note.

thereafter establish a claim under this subsection, and an employee who has registered for, and established a claim for benefits under this subsection may not thereafter establish a claim under the Temporary Unemployment Compensation Act of 1958. Except to the extent inconsistent with this subsection, the provisions of the Railroad Unemployment Insurance Act shall be applicable in the administration of this subsection.

The Secretary of Labor, upon request, shall furnish the Board information deemed necessary by the Board for the administration of the provisions of subsection (b) hereof, and the Board, upon request, shall furnish the Secretary of Labor information deemed necessary by the Secretary for the administration of the Temporary Unemployment Compensation Act of 1958.

Subsection (d) of section 10 of the Railroad Unemployment

45 USC 360.

Transfer of funds.

Insurance Act be amended to read as follows:

“(d)“(d)

Whenever the Board finds at any time that the balance in the railroad unemployment insurance account will be insufficient to pay the benefits and refunds which it estimates are due, or will become due, under this Act, it shall request the Secretary of the Treasury to transfer from the Railroad Retirement Account to the credit of the railroad unemployment insurance account such moneys as the Board estimates would be necessary for the payment of such benefits and refunds, and the Secretary shall make such transfer. Whenever the Board finds that the balance in the railroad unemployment insurance account, without regard to the amounts transferred pursuant to the next preceding sentence, is sufficient to pay such benefits and refunds, it shall request the Secretary of the Treasury to retransfer from the railroad unemployment insurance account to the credit of the Railroad Retirement Account such moneys as in its judgment are not needed for the payment of such benefits and refunds, plus interest at the rate of 3 per centum per annum, and the Secretary shall make such retransfer. In determining the balance in the railroad unemployment insurance account as of September 30 of any year pursuant to section 8(a) of this Act, any moneys transferred from the Railroad Retirement Account to the credit of the railroad unemployment insurance account which have not been retransferred as of such date from the latter account to the credit of the former, plus the interest accrued thereon to that date, shall be disregarded.”

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The amendment made by this section shall take effect on the

Effective dates.

date of enactment of this Act.