[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4965 Reported in Senate (RS)]
<DOC>
Calendar No. 540
119th CONGRESS
2d Session
S. 4965
To amend the Railroad Retirement Act of 1974 to establish a Railroad
Retirement Board Administrative Account, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2026
Mr. Cassidy (for himself, Mr. Sanders, Mr. Banks, and Mr. Kaine)
introduced the following bill; which was read twice and referred to the
Committee on Health, Education, Labor, and Pensions
August 4, 2026
Reported by Mr. Cassidy, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To amend the Railroad Retirement Act of 1974 to establish a Railroad
Retirement Board Administrative Account, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Railroad Retirement Board
Stability Act of 2026''.</DELETED>
<DELETED>SEC. 2. RAILROAD RETIREMENT BOARD ADMINISTRATIVE
ACCOUNT.</DELETED>
<DELETED> (a) In General.--Section 15(h) of the Railroad Retirement
Act of 1974 (45 U.S.C. 231n(h)) is amended to read as
follows:</DELETED>
<DELETED> ``(h) Railroad Retirement Board Administrative Account.--
</DELETED>
<DELETED> ``(1) In general.--There is created within the
Treasury an account known as the Railroad Retirement Board
Administrative Account (in this subsection, referred to as the
`Account'). All amounts within the Account are permanently and
continuously available to the Board for purposes of
administering this Act and the Railroad Unemployment Insurance
Act (45 U.S.C. 351 et seq.).</DELETED>
<DELETED> ``(2) Transfers and limitations.--</DELETED>
<DELETED> ``(A) Transfer authority.--Subject to
subparagraph (B), the Board may transfer from the
Railroad Retirement Account, the Social Security
Equivalent Benefits Account, and the Railroad
Unemployment Insurance Administration Fund amounts the
Board determines to be necessary for the purposes
described in paragraph (1).</DELETED>
<DELETED> ``(B) Limitations on amounts.--</DELETED>
<DELETED> ``(i) Fiscal years 2027 through
2031.--For fiscal years 2027 through 2031, the
Board shall not transfer funds in a fiscal year
to the Account in an amount that is greater
than--</DELETED>
<DELETED> ``(I) the lesser of--
</DELETED>
<DELETED> ``(aa) 1.25
percent of the total benefits
paid under this Act and the
Railroad Unemployment Insurance
Act (45 U.S.C. 351 et seq.)
during the preceding fiscal
year; or</DELETED>
<DELETED> ``(bb) 0.75
percent of the total amounts in
the National Railroad
Retirement Investment Trust as
of the close of the preceding
fiscal year; minus</DELETED>
<DELETED> ``(II) the unobligated
amounts in the Account as of the close
of the previous fiscal year.</DELETED>
<DELETED> ``(ii) Fiscal year 2032 and
subsequent fiscal years.--For fiscal year 2032
and subsequent fiscal years, the Board shall
not transfer funds in a fiscal year to the
Account in an amount that is greater than--
</DELETED>
<DELETED> ``(I) the lesser of--
</DELETED>
<DELETED> ``(aa) 1.15
percent of the total benefits
paid under this Act and the
Railroad Unemployment Insurance
Act (45 U.S.C. 351 et seq.)
during the preceding fiscal
year; or</DELETED>
<DELETED> ``(bb) 0.75
percent of the total amounts in
the National Railroad
Retirement Investment Trust as
of the close of the preceding
fiscal year; minus</DELETED>
<DELETED> ``(II) the unobligated
amounts in the Account as of the close
of the previous fiscal year.</DELETED>
<DELETED> ``(C) Purpose limitations.--Amounts
transferred to the Account from--</DELETED>
<DELETED> ``(i) the Social Security
Equivalent Benefits Account may only be used to
provide for the administrative expenses of the
Board allocable to social security equivalent
benefits under section 15A(c)(1); and</DELETED>
<DELETED> ``(ii) the Railroad Unemployment
Insurance Administration Fund--</DELETED>
<DELETED> ``(I) may only be used for
the administrative expenses of the
Board allocable for administering the
Railroad Unemployment Insurance Act (45
U.S.C. 351 et seq.); and</DELETED>
<DELETED> ``(II) shall be subject to
the same restrictions described in
section 11(c) of such Act (45 U.S.C.
361(c)).</DELETED>
<DELETED> ``(3) Technology fund.--</DELETED>
<DELETED> ``(A) In general.--Within the Account,
there is created a Railroad Retirement Technology Fund
(in this subsection, referred to as the `Fund'). In
addition to amounts otherwise available, the Board
shall use amounts in the Fund to complete its
modernization of legacy benefit processing
systems.</DELETED>
<DELETED> ``(B) Transfers.--Of the amounts
transferred to the Account under paragraph (2)(A), the
Board shall transfer not less than the following
amounts to the Fund:</DELETED>
<DELETED> ``(i) For fiscal year 2027,
$10,000,000.</DELETED>
<DELETED> ``(ii) For each of fiscal years
2028 through 2031, $20,000,000.</DELETED>
<DELETED> ``(C) Availability.--Amounts transferred
under this paragraph shall remain available to the
Board to complete its modernization of legacy benefit
processing systems through fiscal year 2032. On the
last day of fiscal year 2032, the Board shall transfer
any unobligated amounts remaining in the Fund to the
Account.</DELETED>
<DELETED> ``(4) Additional amounts.--In addition to amounts
transferred under paragraph (2)(A) or amounts otherwise
available, there is authorized to be appropriated to the
Account from the Railroad Retirement Account, the Social
Security Equivalent Benefits Account, and the Railroad
Unemployment Insurance Administration Fund--</DELETED>
<DELETED> ``(A) for fiscal year 2027 and subsequent
fiscal years, for any additional administrative
expenses of the Board with respect to unforeseen needs
relating to processing claims for benefits, such sums
as are necessary; and</DELETED>
<DELETED> ``(B) for fiscal year 2033 and subsequent
fiscal years, for modernization of the Board's legacy
benefit processing systems, such sums as are
necessary.''.</DELETED>
<DELETED> (b) Conforming Amendments.--</DELETED>
<DELETED> (1) Railroad retirement act.--The Railroad
Retirement Act of 1974 (45 U.S.C. 231 et seq.) is amended--
</DELETED>
<DELETED> (A) in section 15(a), by inserting ``to
transfer to the Railroad Retirement Board
Administrative Account established under subsection
(h)'' before ``to provide for expenses''; and</DELETED>
<DELETED> (B) in section 15A(c), by striking ``to
provide'' and inserting ``to transfer to the Railroad
Retirement Board Administrative Account established
under section 15(h)''.</DELETED>
<DELETED> (2) Railroad unemployment insurance act.--Section
11(c) of the Railroad Unemployment Insurance Act (45 U.S.C.
361(c)) is amended--</DELETED>
<DELETED> (A) by striking ``Notwithstanding'' and
inserting ``Subject to section 15(h) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231(h)) and
notwithstanding''; and</DELETED>
<DELETED> (B) by inserting ``for transferring to the
Railroad Retirement Board Administrative Account
established under section 15(h) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231(h))'' before
``for any expenses necessary''.</DELETED>
<DELETED> (c) Savings Clause.--Nothing in this section shall be
construed as changing any requirement in law for the Railroad
Retirement Board to submit any annual budget estimate, request, or
other budget information to Congress, the President, the Office of
Management and Budget, or any other Federal agency.</DELETED>
<DELETED>SEC. 3. GAO REPORTS ON INFORMATION TECHNOLOGY MODERNIZATION
EFFORTS.</DELETED>
<DELETED> (a) Initial Report.--</DELETED>
<DELETED> (1) In general.--Not later 10 months after the
date of enactment of this Act, the Comptroller General of the
United States (in this section, referred to as the
``Comptroller General'') shall submit to the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report with recommendations for legislation
and administrative action on ways to modernize the legacy
benefit processing systems used by the Railroad Retirement
Board (in this section, referred to as the
``Board'').</DELETED>
<DELETED> (2) Content of the report.--In completing the
report described in paragraph (1), the Comptroller General
shall--</DELETED>
<DELETED> (A) consider--</DELETED>
<DELETED> (i) experience and lessons learned
from other Federal agencies' modernization of
their information technology systems, focusing
on such agencies that have upgraded information
technology systems that use the Common
Business-Oriented Language (commonly referred
to as ``COBOL'') programming language;
and</DELETED>
<DELETED> (ii) best practices that the
Comptroller General identifies for Federal
agency information technology modernization
efforts; and</DELETED>
<DELETED> (B) identify resources, technical
assistance, and other forms of support available from
other Federal agencies for the Board to carry out the
modernization of the Board's legacy benefit processing
systems.</DELETED>
<DELETED> (b) Stakeholders To Consult.--In carrying out subsection
(a), the Comptroller General shall consult the following
stakeholders:</DELETED>
<DELETED> (1) Each of the 3 members of the Board.</DELETED>
<DELETED> (2) The Chief Information Officer of the
Board.</DELETED>
<DELETED> (3) Representatives of each of the Class I
railroads, as defined in section 20102 of title 49, United
States Code.</DELETED>
<DELETED> (4) Representatives of not less than 2 Class II or
Class III railroads, as defined in such section.</DELETED>
<DELETED> (5) Representatives of each rail union that
represents rail workers who are eligible for benefits under the
Railroad Retirement Act and Railroad Unemployment Insurance
Act.</DELETED>
<DELETED> (6) Retirees and other beneficiaries that
currently receive benefits from the Board.</DELETED>
<DELETED> (c) Follow-Up Report.--Not later than 6 months after the
end of fiscal year 2031, the Comptroller General shall submit a follow-
up report to the report described in subsection (a), which shall
include information regarding--</DELETED>
<DELETED> (1) to what extent the Board followed the
recommendations and best practices of the report described in
subsection (a);</DELETED>
<DELETED> (2) how effectively the Board complied with its
own internal project plans and milestones for completing the
modernization of its legacy benefit processing
systems;</DELETED>
<DELETED> (3) areas, if any, where the Board failed to
modernize its legacy benefit processing systems; and</DELETED>
<DELETED> (4) the estimated remaining cost for completing
the modernization of the Board's legacy benefit processing
systems, if any.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Railroad Retirement Board Stability
Act''.
SEC. 2. RAILROAD RETIREMENT BOARD ADMINISTRATIVE ACCOUNT.
(a) In General.--Section 15(h) of the Railroad Retirement Act of
1974 (45 U.S.C. 231n(h)) is amended to read as follows:
``(h) Railroad Retirement Board Administrative Account.--
``(1) In general.--There is created within the Treasury an
account known as the Railroad Retirement Board Administrative
Account (in this subsection, referred to as the `Account'). All
amounts within the Account are permanently and continuously
available to the Board for purposes of administering this Act
and the Railroad Unemployment Insurance Act (45 U.S.C. 351 et
seq.).
``(2) Transfers and limitations.--
``(A) Transfer authority.--Subject to subparagraph
(B), the Board may transfer from the Railroad
Retirement Account, the Social Security Equivalent
Benefits Account, and the Railroad Unemployment
Insurance Administration Fund amounts the Board
determines to be necessary for the purposes described
in paragraph (1).
``(B) Limitations on amounts.--
``(i) Fiscal years 2027 through 2031.--For
fiscal years 2027 through 2031, the Board shall
not transfer funds in a fiscal year to the
Account in an amount that is greater than--
``(I) the lesser of--
``(aa) 1.25 percent of the
total benefits paid under this
Act and the Railroad
Unemployment Insurance Act (45
U.S.C. 351 et seq.) during the
preceding fiscal year; or
``(bb) 0.75 percent of the
total amounts in the National
Railroad Retirement Investment
Trust as of the close of the
preceding fiscal year; minus
``(II) the unobligated amounts in
the Account as of the close of the
previous fiscal year.
``(ii) Fiscal year 2032 and subsequent
fiscal years.--For fiscal year 2032 and
subsequent fiscal years, the Board shall not
transfer funds in a fiscal year to the Account
in an amount that is greater than--
``(I) the lesser of--
``(aa) 1.15 percent of the
total benefits paid under this
Act and the Railroad
Unemployment Insurance Act (45
U.S.C. 351 et seq.) during the
preceding fiscal year; or
``(bb) 0.75 percent of the
total amounts in the National
Railroad Retirement Investment
Trust as of the close of the
preceding fiscal year; minus
``(II) the unobligated amounts in
the Account as of the close of the
previous fiscal year.
``(C) Purpose limitations.--Amounts transferred to
the Account from--
``(i) the Social Security Equivalent
Benefits Account may only be used to provide
for the administrative expenses of the Board
allocable to social security equivalent
benefits under section 15A(c)(1); and
``(ii) the Railroad Unemployment Insurance
Administration Fund--
``(I) may only be used for the
administrative expenses of the Board
allocable for administering the
Railroad Unemployment Insurance Act (45
U.S.C. 351 et seq.); and
``(II) shall be subject to the same
restrictions described in section 11(c)
of such Act (45 U.S.C. 361(c)).
``(3) Technology fund.--
``(A) In general.--Within the Account, there is
created a Railroad Retirement Technology Fund (in this
subsection, referred to as the `Fund'). In addition to
amounts otherwise available, the Board shall use
amounts in the Fund to complete its modernization of
legacy benefit processing systems.
``(B) Transfers.--Of the amounts transferred to the
Account under paragraph (2)(A), the Board shall
transfer not less than the following amounts to the
Fund:
``(i) For fiscal year 2027, $10,000,000.
``(ii) For each of fiscal years 2028
through 2031, $20,000,000.
``(C) Availability.--Amounts transferred under this
paragraph shall remain available to the Board to
complete its modernization of legacy benefit processing
systems through fiscal year 2032. On the last day of
fiscal year 2032, the Board shall transfer any
unobligated amounts remaining in the Fund to the
Account.
``(4) Additional amounts.--In addition to amounts
transferred under paragraph (2)(A) or amounts otherwise
available, there is authorized to be appropriated to the
Account from the Railroad Retirement Account, the Social
Security Equivalent Benefits Account, and the Railroad
Unemployment Insurance Administration Fund--
``(A) for fiscal year 2027 and subsequent fiscal
years, for any additional administrative expenses of
the Board with respect to unforeseen needs relating to
processing claims for benefits, such sums as are
necessary; and
``(B) for fiscal year 2033 and subsequent fiscal
years, for modernization of the Board's legacy benefit
processing systems, such sums as are necessary.''.
(b) Conforming Amendments.--
(1) Railroad retirement act.--The Railroad Retirement Act
of 1974 (45 U.S.C. 231 et seq.) is amended--
(A) in section 15(a), by inserting ``to transfer to
the Railroad Retirement Board Administrative Account
established under subsection (h)'' before ``to provide
for expenses''; and
(B) in section 15A(c), by striking ``to provide''
and inserting ``to transfer to the Railroad Retirement
Board Administrative Account established under section
15(h)''.
(2) Railroad unemployment insurance act.--Section 11(c) of
the Railroad Unemployment Insurance Act (45 U.S.C. 361(c)) is
amended--
(A) by striking ``Notwithstanding'' and inserting
``Subject to section 15(h) of the Railroad Retirement
Act of 1974 (45 U.S.C. 231(h)) and notwithstanding'';
and
(B) by inserting ``for transferring to the Railroad
Retirement Board Administrative Account established
under section 15(h) of the Railroad Retirement Act of
1974 (45 U.S.C. 231(h))'' before ``for any expenses
necessary''.
(c) Savings Clause.--Nothing in this section shall be construed as
changing any requirement in law for the Railroad Retirement Board to
submit any annual budget estimate, request, or other budget information
to Congress, the President, the Office of Management and Budget, or any
other Federal agency.
SEC. 3. GAO REPORTS ON INFORMATION TECHNOLOGY MODERNIZATION EFFORTS.
(a) Initial Report.--
(1) In general.--Not later 10 months after the date of
enactment of this Act, the Comptroller General of the United
States (in this section, referred to as the ``Comptroller
General'') shall submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report with recommendations for legislation
and administrative action on ways to modernize the legacy
benefit processing systems used by the Railroad Retirement
Board (in this section, referred to as the ``Board'').
(2) Content of the report.--In completing the report
described in paragraph (1), the Comptroller General shall--
(A) consider--
(i) experience and lessons learned from
other Federal agencies' modernization of their
information technology systems, focusing on
such agencies that have upgraded information
technology systems that use the Common
Business-Oriented Language (commonly referred
to as ``COBOL'') programming language; and
(ii) best practices that the Comptroller
General identifies for Federal agency
information technology modernization efforts;
and
(B) identify resources, technical assistance, and
other forms of support available from other Federal
agencies for the Board to carry out the modernization
of the Board's legacy benefit processing systems.
(b) Stakeholders To Consult.--In carrying out subsection (a), the
Comptroller General shall consult the following stakeholders:
(1) Each of the 3 members of the Board.
(2) The Chief Information Officer of the Board.
(3) Representatives of each of the Class I railroads, as
defined in section 20102 of title 49, United States Code.
(4) Representatives of not less than 2 Class II or Class
III railroads, as defined in such section.
(5) Representatives of each rail union that represents rail
workers who are eligible for benefits under the Railroad
Retirement Act and Railroad Unemployment Insurance Act.
(6) Retirees and other beneficiaries that currently receive
benefits from the Board.
(c) Follow-up Report.--Not later than 6 months after the end of
fiscal year 2031, the Comptroller General shall submit a follow-up
report to the report described in subsection (a), which shall include
information regarding--
(1) to what extent the Board followed the recommendations
and best practices of the report described in subsection (a);
(2) how effectively the Board complied with its own
internal project plans and milestones for completing the
modernization of its legacy benefit processing systems;
(3) areas, if any, where the Board failed to modernize its
legacy benefit processing systems; and
(4) the estimated remaining cost for completing the
modernization of the Board's legacy benefit processing systems,
if any.
SEC. 4. PENSION PAYMENT ACCELERATION.
Notwithstanding section 4007(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 of title
29, Code of Federal Regulations, for plan years commencing after
December 31, 2035, and before January 1, 2037, the premium due date
applicable to single employer plans for such plan years shall be the
fifteenth day of the ninth calendar month that begins on or after the
first day of the premium payment year.
Calendar No. 540
119th CONGRESS
2d Session
S. 4965
_______________________________________________________________________
A BILL
To amend the Railroad Retirement Act of 1974 to establish a Railroad
Retirement Board Administrative Account, and for other purposes.
_______________________________________________________________________
August 4, 2026
Reported with an amendment