92D CONGRESS 2D SESSION

H. R. 15922

IN THE SENATE OF THE UNITED STATES

AUGUST 15, 1972

Read twice and referred to the Committee on Labor and Public Welfare

AN ACT

To amend the Railroad Retirement Act of 1937 to simplify administration of the Act.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled, SECTION 1. (a) Section 3 (e) of the Railroad Retire

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4 ment Act of 1937 is amended by striking out the word 5 "and" after clause (iv) in the second paragraph thereof 6 and inserting after the semicolon in clause (v) in such second 7 paragraph the following new clauses:

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"(vi) individuals not entitled to an annuity under section 2 or 5 of this Act shall not be included in the computation under such first proviso except a spouse who could quality for an annuity under section 2 (e) or (h)

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of this Act if the employee from whom the spouse's

annuity under this Act would derive had attained age

65, and such employee's children who meet the definition as such contained in section 216 (e) of the Social Se

curity Act; (vii) after an annuity has been certified for payment and such first proviso was inapplicable after allowing for 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 such first

proviso, or was then applicable but later became inappli

cable, any recertification in such annuity under such first proviso shall not take into account individuals not

entitled to an annuity under section 2 or 5 of this Act

except a spouse who could qualify for an annuity under section 2 (h) of this Act when she attains age 62 if the employee from whom the spouse's annuity would derive had attained age 65, and who was married to such employee at the time he applied for the employee an

nuity; (viii) in computing the amount to be paid under such first proviso, the only benefits under title II of the

Social Security Act which shall be considered shall be

those to which the individuals included in the computa

tion are entitled; (ix) the average monthly wage for

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an employee during his lifetime shall include (A) only 2 his wages and self-employment income creditable under

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the Social Security Act through the later of Decem

ber 31, 1971, or December 31 of the year preceding the year in which his annuity began to accrue, and (B)

his compensation up to the date his annuity began to accrue; and (x) in computing the average monthly

wage in clause (ix) above, section 215 (b) (2) (C) (ii) of the Social Security Act shall, solely for the purpose

of including compensation up to the date the employee's annuity began to accrue, be deemed to read as follows: 'the year succeeding the year in which he died or retired' ;"

(b) Section 3 (e) of such Act is further amended by striking out in the third paragraph thereof ", or on application, would be".

SEC. 2. Section 5 (1) (1) of such Act is amended by striking out from the first sentence thereof "and (g)" and inserting in lieu thereof "(g), and (k)”.

SEC. 3. EFFECTIVE DATES.-The provisions of clauses (vi) through (x), which are added by section 1 (a) of this 22 Act, and the provisions of section 1 (b) of this Act, shall be 23 effective as follows: clause (vi) shall be effective with respect 24 to annuities awarded after the enactment of this Act; clauses

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1 (vii) and (viii), and the provisions of section (1) (b), shall 2 be effective with respect to annuities awarded or recertified 3 after the enactment of this Act; and clauses (ix) and (x) 4 shall be effective with respect to calendar years after 1971. Passed the House of Representatives August 14, 1972.

Attest:

W. PAT JENNINGS,

82-813 O 72-2

Clerk.

The enclosed draft bills proposing amendments to the Railroad Retirement Act were prepared by the Railroad Retirement Board and were approved by representatives of railroad management (Association of American Railroads) and railroad labor (Congress of Railway Unions and Railway Labor Executives' Association).

Section 3 (e) of the Railroad Retirement Act provides (what is generally referred to as) the social security minimum guaranty. This guaranty assures that the combined amounts for which an individual, and those deriving from him, are eligible under the Railroad Retirement Act and the Social Security Act on the basis of the individual's earnings record would be no less than 110 per cent of the amount which would have been payable to that family under the Social Security Act on the basis of the individual's combined railroad and nonrailroad earnings if his railroad earnings had been covered under that Act since January 1, 1937. The implementation of this section has become more and more difficult with each amendment to the Social Security Act since 1965, and the enactment of H. R. 1 (92d Congress, 1st session, now before the Senate Committee on Finance) would add new difficulties. The Board is satisfied that without the amendments proposed in the enclosed draft bills, the administrative work in giving effect to the social security minimum provisions of Section 3 (e) of the Act would be extremely difficult.

The draft marked A would amend existing law only and its enactment would not be contingent upon the enactment of H. R. 1. The enactment of the other draft bill, however, would be contingent on the enactment of H. R. 1.