Railroad Retirement and Survivors' Improvement Act of 2000
| Date | Chamber | What was voted on | Result | Yes–No | |
|---|---|---|---|---|---|
| Sep 7, 2000 | House · vote #459 | On Motion to Suspend the Rules and Pass, as Amended | Passed | 391–25 | See who voted → |
(Sec. 101) Increases benefits for widows and widowers by guaranteeing to them all of the tier II annuity the employee was entitled to at the time of the death.
(Sec. 102) Makes employees with 30 years of service eligible to retire at age 60 with unreduced tier I and tier II annuities. Makes spouses of such employees eligible for unreduced annuities at age 60.
(Sec. 103) Reduces the vesting requirement for tier II retirement annuities from ten years to five years of service after December 1995.
Makes employees with at least five years of such service, but less than ten years of total service, eligible for a tier I disability annuity if their combined railroad retirement and social security earnings credits would satisfy social security eligibility requirements.
Makes spouses, divorced spouses, and survivors of employees with at least five years of such service, but less than ten years of total service, eligible for a tier I annuity if they would have been entitled to a social security benefit based on combined service.
(Sec. 104) Repeals a limit on the total amount of monthly railroad retirement benefits payable to an employee and spouse at the time the employee's annuity begins.
(Sec. 105) Establishes a Railroad Retirement Trust Fund (the Fund) and a Railroad Retirement Investment Trust (RRIT) to manage and invest the assets of the Fund. Declares that RRIT is not an agency, department, or instrumentality of the U.S. Government. Requires RRIT to be administered by a Board of Trustees (the Trustees) with seven members (three representing labor, three representing employers, and one representing the general public) with experience and expertise in the management of financial investments and pension plans. Requires the Trustees to be appointed by a unanimous vote of the Railroad Retirement Board (RRB). Prohibits RRB members from being Trustees.
Applies specified reporting requirements and fiduciary standards to the RRIT. Requires the Trustees to diversify investments so as to minimize the risk of large losses. Authorizes the Trustees to invest Fund assets in non-Governmental assets.
(Sec. 106) Abolishes the Railroad Retirement Supplemental Annuity Account and provides for transfer of its funds to the Fund.
(Sec. 107) Requires the RRB, upon the establishment of the Fund, to determine the portion of the Railroad Retirement Account not needed to pay current administrative expenses and direct the Secretary of the Treasury to transfer that amount into the Fund. Requires the Fund to transfer the necessary amount of funds to pay benefits and related administrative expenses to the disbursing agent.
Transfers to the Fund Social Security Equivalent Benefit account funds not needed to pay current benefits, but requires that such funds only be used to pay benefits or to invest in U.S. Government or Government-guaranteed securities.
Transfers to the disbursing agent from the Dual Benefit Account the amount necessary to make dual benefit payments. Requires the Trustees to consult with the Secretary of the Treasury to develop an appropriate method for transferring or converting existing account obligations.
(Sec. 108) Requires the RRB to calculate the ratio of assets to benefits to determine annual tier II tax rates for employers, employee representatives, and employees. Establishes schedules for: (1) decreasing tax rates if the average account benefits ratio, based on the ratios for the ten most recent fiscal years, is above six; and (2) increasing employer and employee representatives' tax rates if the ratio is below four.
Title II: Amendments to the Internal Revenue Code of 1986 - Amends the Internal Revenue Code to exempt the Railroad Retirement Trust Fund (the Fund) from taxation.
(Sec. 203) Repeals a supplemental annuity tax that railroad employers pay to finance a benefit for long-time rail employees.
(Sec. 204) Provides for adjustments to railroad employers, employee representatives, and employee tier II tax rates. Decreases such rates in 2001 and in 2002 for employers and employee representatives. Provides in the years after 2002 for tax rate schedules, based on the ten-year average account benefit ratio, for employers, employee representatives, and employees.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 924.