Sec. 201. Amendment to the Internal Revenue Code of 1986 This section provides that all references in Title II that are expressed in terms of an amendment to, or repeal of, a section or other provision, are to a section or other provision of the Internal Revenue Code of 1986. Sec. 202. Tax Exemption for Railroad Retirement Investment Trust Section 202 provides for tax-exemption of the Trust. Sec. 203. Repeal of Supplemental Annuity Tax The supplemental annuity is financed by an excise tax imposed on employee representatives and employers under sections 3211(b), 3221(c), and 3221(d) of the Internal Revenue Code. The amendment made by section 203 repeals this excise tax, effective for calendar years after 2001. (See also, section 106.) Sec. 204. Employer, Employee Representative, and Employee Tier 2 Tax Rate Adjustments Section 204(a) would amend section 3221(b) of the Internal Revenue Code to reduce the tier 2 tax rate on employers for calendar years 2002 and 2003 from the current rate of 16.1% to 15.6% and 14.2%, respectively. For years thereafter, the tier 2 tax rate would be determined under a new section 3241 that would be added by section 204(d) of the bill. Section 204(b) would make similar changes in the tier 2 tax rates imposed on employee representatives under section 3211 of the Internal Revenue Code. Employee representatives would pay a tier 2 tax of 14.75% in calendar year 2002 and 14.20% in calendar year 2003. As with the tier 2 tax rate for employers, the tier 2 tax rate for years after 2003 would be determined under the new section 3241. There would be no change in the tier 2 tax rate for employees in the years 2002 and 2003. However, for calendar years after 2003, the employee tier 2 tax rate would be determined under the new section 3241. Section 204(d) provides for the determination of the tier 2 tax rates applicable to employers, employee representatives, and employees for calendar years after 2003. The rates would be based on the account benefits ratio, which is defined as the fair market value of assets in the RRA and of the Trust as of the close of the fiscal year divided by the total benefits and administrative expenses paid from the RRA and the Trust during such fiscal year. For the years before 2002, the assets of the SSEB Account are also included in the calculation of the account benefits ratio. Depending on the average account benefits ratio, tier 2 tax rates for employers and employee representatives would fall within a range between 8.2% and 22.1%, while the tax rate for employees would be between 0% and 4.9%.4 The Secretary of Treasury would use the account benefits ratio to calculate the average account benefits ratio (the average of the account benefits ratios for the ten most recent fiscal years) and to determine the tier 2 tax rates in accordance with the schedule set forth in 3241(b). In order to calculate the average account benefits ratio in the first year, on or before November 1, 2003, the RRB would compute the account benefits ratios for each of the ten consecutive fiscal years, ending with the most recent fiscal year and certify each of the account benefits ratios to the Secretary. No later than December 1 of each year, the Secretary would publish a notice in the Federal Register of the rates of tax determined under section 3241 which are applicable for the following year. CONCLUSION H.R. 1140 is a landmark piece of legislation that provides benefits for all the participants in the railroad retirement system. It modernizes and strengthens the financing of the program while also providing for improved retirement benefits for railroad workers and their families. ROLLCALL VOTES Clause 3(b) of rule XIII of the House of Representatives requires each committee report to include the total number of votes cast for and against on each rollcall vote on a motion to report and on any amendment offered to the measure or matter, and the names of those members voting for and against. There were no rollcall votes on this legislation. COMMITTEE OVERSIGHT FINDINGS With respect to the requirements of clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, oversight findings and recommendations have been made by the Committee as reflected in this report. 4The Labor-Management Agreement provides that, after the enactment of this legislation, employee representatives may elect to convert any amount by which the employee rate is projected to be less than 4.9% into an expanded retirement benefit. The cost of this new benefit shall not exceed, on a 75-year percentage of payroll basis, the benefit of this projected difference. If any additional benefit is enacted, the future enabling legislation shall provide that the employee tax rate that otherwise would be effective under the statutory schedule will be increased by the cost (on a 75-year percentage of payroll basis) of such benefit, or at the employee representative's election, that the benefits will terminate if the average account benefits ratio goes below 6. Management has agreed to support future legislation providing for any such conversion consistent with this policy. Public Law 107-110 107th Congress An Act To close the achievement gap with accountability, flexibility, and choice, so that no child is left behind. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. Jan. 8, 2002 (H.R. 1] No Child Left Behind Act of 2001. This title may be cited as the "No Child Left Behind Act Education. of 2001". SEC. 2. TABLE OF CONTENTS. The table of contents for this Act is as follows: Inter governmental relations. note. TITLE X-REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER 26 USC 1397E. (t) INTERNAL REVENUE CODE OF 1986.-Section 1397E(d)(4)(B) of the Internal Revenue Code of 1986 is amended by striking "14101" and inserting "9101". HOUSE REPORTS: Nos. 107-63, Pt. 1 (Comm. on Education and the Workforce) SENATE REPORTS: No. 107-7 accompanying S. 1 (Comm. on Health, Education, CONGRESSIONAL RECORD, Vol. 147 (2001): May 17, 22, 23, considered and passed House. June 14, considered and passed Senate, amended, in lieu of S. 1. Dec. 13, House agreed to conference report. Dec. 17, 18, Senate considered and agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): Making appropriations for the Departments of Labor, Health and Human Services, Be it enacted by the Senate and House of Representatives of Jan. 10, 2002 [H.R. 3061] Departments of and Human Department of 26 USC 9812. SEC. 701. EXTENSION OF CERTAIN PROVISIONS. (a) ERISA.-Section 712(f) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended by striking "September 30, 2001" and inserting "December 31, 2002". (b) PHSA-Section 2705(f) of the Public Health Service Act (42 U.S.C. 300gg-5(f)) is amended by striking "September 30, 2001” and inserting "December 31, 2002”. (c) INTERNAL REVENUE CODE OF 1986.-Section 9812(f) of the Internal Revenue Code of 1986 is amended by striking "September 30, 2001" and inserting "December 31, 2002”. SEC. 702. CONGRESSIONAL BUDGET ACT. Notwithstanding Rule 3 of the Budget Scorekeeping Guidelines set forth in the joint explanatory statement of the committee of conference accompanying Conference Report 105-217, the provisions of this title that would have been estimated by the Office of Management and Budget as changing direct spending or receipts under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 were it included in an Act other than an appropriations Act shall be treated as direct spending or receipts legislation, as appropriate, under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, and by the Chairmen of the |