45 U.S.C. § 231n–1 — Social Security Equivalent Benefit Account

submitted 91 years ago by Pub. L. 98-76 to r/title-45-RAILROADS · 882 words · no verdicts yet

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This section creates the Social Security Equivalent Benefit Account inside the U.S. Treasury. Congress funds it each year with specific railroad payroll taxes and related amounts, and the Railroad Retirement Board may use it only to pay social security equivalent benefits and their administrative costs. The Treasury Secretary moves money between this account, the Railroad Retirement Account, and the National Railroad Retirement Investment Trust as needed.

(a) Establishment. This section creates an account inside the U.S. Treasury called the Social Security Equivalent Benefit Account. (b) Transfers, etc. Each fiscal year starting October 1, 1984, Congress appropriates money into the Account equal to two things added together. (A) The railroad payroll taxes collected that year under three named sections of the Railroad Retirement Tax Act, minus refunds. (B) The amount that would otherwise have gone to the Railroad Retirement Account under a 1983 Social Security law, to the extent that amount is tied to taxing social security equivalent benefits. Whatever normally goes to the Railroad Retirement Account is reduced to account for this. Starting October 1, 1984, any money that would have gone to the Railroad Retirement Account under section 231f(c)(2) or (4) goes to this Account instead, and those old transfers to the Railroad Retirement Account stop. Where the appropriation authorized under section 231n(b) covers the cost of social security equivalent benefits, any reference to the Railroad Retirement Account is treated as a reference to this Account instead, starting the same date. Money appropriated or transferred here follows the same timing and method it would have followed going to the Railroad Retirement Account. (c) Availability and transfer of funds. Except where this section says otherwise, money in the Account can be used only to pay social security equivalent benefits and the Board's administrative costs for those benefits. The Treasury Secretary must transfer money from the Account to the disbursing agent under section 231f(b)(4) as needed to pay those benefits. Starting October 1, 1984, any transfer that would have come from the Railroad Retirement Account under section 231f(c)(2) or (4) comes from this Account instead. (d) Transfers to the Account and to the National Railroad Retirement Investment Trust. If the Board finds the Account will not have enough money to pay the benefits due in some month, it asks the Treasury Secretary to transfer money from the Railroad Retirement Account to cover the shortfall, and the Secretary must do so. Once the National Railroad Retirement Investment Trust is set up, the Board can direct the Treasury Secretary — in whatever way will earn the most investment return for the railroad retirement system — to move any Account balance not needed for current benefits and administrative costs to the Trust or to the Railroad Retirement Account. Money moved this way can be used only to pay benefits under this subchapter, or to buy U.S. government securities backed by the full faith and credit of the United States. Any proceeds or interest from those securities can likewise be used only to pay benefits or buy more such securities. (e) Applicability of section 231n. The rules in subsections (e), (f), and (g) of section 231n also apply to this Account. (f) References to the Railroad Retirement Account; "social security equivalent benefits" defined. When paying social security equivalent benefits, any reference elsewhere in this subchapter to the Railroad Retirement Account is treated as a reference to this Account instead. "Social security equivalent benefits" means benefits under this subchapter that are the kind counted in figuring the transfers made under section 231f(c)(2).

the actual law source: uscode.house.gov ↗public domain

(a) Establishment

There is hereby created an account in the Treasury of the United States to be known as the “Social Security Equivalent Benefit Account”.

(b) Transfers, etc., to Social Security Equivalent Benefit Account

(1)

There is hereby appropriated to the Social Security Equivalent Benefit Account for each fiscal year, beginning with the fiscal year beginning October 1, 1984, an amount equal to the sum of the following amounts:

(A)

Amounts covered into the Treasury (minus refunds) during such fiscal year under sections 3201(a), 3211(a)(1), and 3221(a) of the Railroad Retirement Tax Act [26 U.S.C. 3201(a), 3211(a)(1), 3221(a)].

(B)

The amount which (but for this section) would have been transferred to the Railroad Retirement Account under section 121(e) of the Social Security Amendments of 1983 to the extent that the amount which would have been so transferred is attributable to taxation of social security equivalent benefits.

Amounts appropriated to the Railroad Retirement Account shall be appropriately reduced to take into account the amounts appropriated under this paragraph to the Social Security Equivalent Benefit Account.

(2)

On and after October 1, 1984, any amount which (but for this section) would have been transferred to the Railroad Retirement Account pursuant to paragraph (2) or (4) of section 231f(c) of this title shall be transferred to the Social Security Equivalent Benefit Account. On and after October 1, 1984, no transfer shall be made to the Railroad Retirement Account pursuant to paragraph (2) or (4) of section 231f(c) of this title.

(3)

To the extent that the authorization for appropriation contained in section 231n(b) of this title is attributable to the cost of social security equivalent benefits, on and after October 1, 1984, any reference in such section to the Railroad Retirement Account shall be treated as a reference to the Social Security Equivalent Benefit Account.

(4)

Amounts appropriated or transferred to the Social Security Equivalent Benefit Account under this section shall be credited or transferred to such Account at the same time and in the same manner as such amounts would have been credited or transferred to the Railroad Retirement Account but for this section.

(1)

Except as otherwise provided in this section, amounts in the Social Security Equivalent Benefit Account shall be available only for purposes of paying social security equivalent benefits under this subchapter and to provide for the administrative expenses of the Board allocable to social security equivalent benefits. The Secretary shall from time to time transfer to the disbursing agent under section 231f(b)(4) of this title amounts necessary to pay those benefits.

(2)

On and after October 1, 1984, any transfer which (but for this paragraph) would be required to be made from the Railroad Retirement Account under paragraph (2) or (4) of section 231f(c) of this title shall be made from the Social Security Equivalent Benefit Account.

(d) Transfers to Social Security Equivalent Benefit Account and National Railroad Retirement Investment Trust

(1)

Whenever the Board finds that the balance in the Social Security Equivalent Benefit Account will be insufficient to pay social security equivalent benefits which it estimates are due in any month, it shall request the Secretary of the Treasury to transfer from the Railroad Retirement Account to the credit of the Social Security Equivalent Benefit Account such moneys as the Board estimates will be necessary for the payment of such benefits, and the Secretary shall make such transfer.

(2)

Upon establishment of the National Railroad Retirement Investment Trust and from time to time thereafter, the Board shall direct the Secretary of the Treasury to transfer, in such manner as will maximize the investment returns to the Railroad Retirement system, the balance of the Social Security Equivalent Benefit Account not needed to pay current benefits and administrative expenses required to be paid from that Account to the National Railroad Retirement Investment Trust or the Railroad Retirement Account, and the Secretary shall make that transfer. Any balance transferred under this paragraph shall be used by the National Railroad Retirement Investment Trust or the Railroad Retirement Board only to pay benefits under this subchapter or to purchase obligations of the United States (either directly or through a commingled account consisting only of such obligations) that are backed by the full faith and credit of the United States pursuant to chapter 31 of title 31. The proceeds of sales of, and the interest income from, such obligations shall be used by the Trust only to pay benefits under this subchapter or to purchase such additional obligations.

(e) Applicability of section 231n

The provisions of subsections (e), (f), and (g) of section 231n of this title are hereby made applicable to the Social Security Equivalent Benefit Account.

(f) References to Railroad Retirement Account deemed references to Social Security Equivalent Benefit Account; “social security equivalent benefits” defined

(1)

For purposes of making payments of social security equivalent benefits, references in the 1 subchapter to the Railroad Retirement Account shall be treated as references to the Social Security Equivalent Benefit Account.

(2)

For purposes of this section, the term “social security equivalent benefits” means benefits payable under this subchapter which are of a kind taken into account in determining the amount of transfers made under section 231f(c)(2) of this title.

Source credit: (Aug. 29, 1935, ch. 812, § 15A, as added Pub. L. 98–76, title V, § 501(a), Aug. 12, 1983, 97 Stat. 438; amended Pub. L. 107–90, title I, § 107(c), Dec. 21, 2001, 115 Stat. 888; Pub. L. 108–203, title IV, § 426(e), Mar. 2, 2004, 118 Stat. 538.)

history & why it existsrecord from the source credit

1935Enacted · Pub. L. 98-76 · 97 Stat. 438
2001Amended · Pub. L. 107-90 · 115 Stat. 888
2004Amended · Pub. L. 108-203 · 118 Stat. 538

A history note hasn’t been published yet. The record shows enactment by Pub. L. 98-76 on 1935-08-29.

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