26 U.S.C. § 3241 — Determination of tier 2 tax rate based on average account benefits ratio

(a) In general. For sections 3201(b), 3211(b), and 3221(b), the applicable percentage for a calendar year is the percentage in subsection (b)’s table. (b) Tax-rate schedule. The average account benefits ratio determines the rates. If the ratio is at least 2.5 but less than 3.0, the rates are 22.1% for sections 3211(b) and 3221(b), and 4.9% for section 3201(b). For ratios at least 3.0 but less than 3.5, the rates are 18.1% and 4.9%. For 3.5 to under 4.0, they are 15.1% and 4.9%; 4.0 to under 6.1, 14.1% and 4.9%; 6.1 to under 6.5, 13.1% and 4.9%; 6.5 to under 7.0, 12.6% and 4.4%; 7.0 to under 7.5, 12.1% and 3.9%; 7.5 to under 8.0, 11.6% and 3.4%; 8.0 to under 8.5, 11.1% and 2.9%; 8.5 to under 9.0, 10.1% and 1.9%; and 9.0 or more, 9.1% and 0.9%. If the ratio is under 2.5, the table gives 8.2% and 0%; the supplied text does not state an upper bound for that row. (c) Definitions. (1) “Average account benefits ratio” means, for a calendar year, the Secretary’s average of the account benefits ratios for the 10 most recent fiscal years ending before that calendar year. If the result is not a multiple of 0.1, it is increased to the next higher multiple of 0.1. (2) “Account benefits ratio” means, for a fiscal year, the Railroad Retirement Board’s result from dividing the fair-market value at the fiscal year’s end of assets in the Railroad Retirement Account and National Railroad Retirement Investment Trust—and, for years before 2002, the Social Security Equivalent Benefits Account—by the total benefits and administrative expenses paid from the Railroad Retirement Account and Trust during that year. (d) Notice. By December 1 each year, the Secretary must publish in the Federal Register the tax rates determined under this section for the following calendar year.