[Congressional Record (Bound Edition), Volume 147 (2001), Part 11]
[House]
[Pages 15231-15243]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1845
       RAILROAD RETIREMENT AND SURVIVORS' IMPROVEMENT ACT OF 2001

  Mr. YOUNG of Alaska. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1140) to modernize the financing of the railroad 
retirement system and to provide enhanced benefits to employees and 
beneficiaries, as amended.
  The Clerk read as follows:

                               H.R. 1140

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Railroad 
     Retirement and Survivors' Improvement Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

         TITLE I--AMENDMENTS TO RAILROAD RETIREMENT ACT OF 1974

Sec. 101. Expansion of widow's and widower's benefits.
Sec. 102. Retirement age restoration.
Sec. 103. Vesting requirement.
Sec. 104. Repeal of railroad retirement maximum.
Sec. 105. Investment of railroad retirement assets.
Sec. 106. Elimination of supplemental annuity account.
Sec. 107. Transfer authority revisions.
Sec. 108. Annual ratio projections and certifications by the Railroad 
              Retirement Board.

       TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

Sec. 201. Amendments to the Internal Revenue Code of 1986.
Sec. 202. Exemption from tax for National Railroad Retirement 
              Investment Trust.
Sec. 203. Repeal of supplemental annuity tax.
Sec. 204. Employer, employee representative, and employee tier 2 tax 
              rate adjustments.

         TITLE I--AMENDMENTS TO RAILROAD RETIREMENT ACT OF 1974

     SEC. 101. EXPANSION OF WIDOW'S AND WIDOWER'S BENEFITS.

       (a) In General.--Section 4(g) of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231c(g)) is amended by adding at the 
     end the following new subdivision:
       ``(10)(i) If for any month the unreduced annuity provided 
     under this section for a widow or widower is less than the 
     widow's or widower's initial minimum amount computed pursuant 
     to paragraph (ii) of this subdivision, the unreduced annuity 
     shall be increased to that initial minimum amount. For the 
     purposes of this subdivision, the unreduced annuity is the 
     annuity without regard to any deduction on account of work, 
     without regard to any reduction for entitlement to an annuity 
     under section 2(a)(1) of this Act, without regard to any 
     reduction for entitlement to a benefit under title II of the 
     Social Security Act, and without regard to any reduction for 
     entitlement to a public service pension pursuant to section 
     202(e)(7), 202(f)(2), or 202(g)(4) of the Social Security 
     Act.
       ``(ii) For the purposes of this subdivision, the widow or 
     widower's initial minimum amount is the amount of the 
     unreduced annuity computed at the time an annuity is awarded 
     to that widow or widower, except that--
       ``(A) in subsection (g)(1)(i) `100 per centum' shall be 
     substituted for `50 per centum'; and
       ``(B) in subsection (g)(2)(ii) `130 per centum' shall be 
     substituted for `80 per centum' both places it appears.
       ``(iii) If a widow or widower who was previously entitled 
     to a widow's or widower's

[[Page 15232]]

     annuity under section 2(d)(1)(ii) of this Act becomes 
     entitled to a widow's or widower's annuity under section 
     2(d)(1)(i) of this Act, a new initial minimum amount shall be 
     computed at the time of award of the widow's or widower's 
     annuity under section 2(d)(1)(i) of this Act.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section shall 
     take effect on the first day of the first month that begins 
     more than 30 days after enactment, and shall apply to annuity 
     amounts accruing for months after the effective date in the 
     case of annuities awarded--
       (A) on or after that date; and
       (B) before that date, but only if the annuity amount under 
     section 4(g) of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231c(g)) was computed under such section, as amended 
     by the Omnibus Budget Reconciliation Act of 1981 (Public Law 
     97-35; 95 Stat. 357).
       (2) Special rule for annuities awarded before the effective 
     date.--In applying the amendment made by this section to 
     annuities awarded before the effective date, the calculation 
     of the initial minimum amount under new section 4(g)(10)(ii) 
     of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231c(g)(10)(ii)), as added by subsection (a), shall be made 
     as of the date of the award of the widow's or widower's 
     annuity.

     SEC. 102. RETIREMENT AGE RESTORATION.

       (a) Employee Annuities.--Section 3(a)(2) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231b(a)(2)) is amended by 
     inserting after ``(2)'' the following new sentence: ``For 
     purposes of this subsection, individuals entitled to an 
     annuity under section 2(a)(1)(ii) of this Act shall, except 
     for the purposes of recomputations in accordance with section 
     215(f) of the Social Security Act, be deemed to have attained 
     retirement age (as defined by section 216(l) of the Social 
     Security Act).''.
       (b) Spouse and Survivor Annuities.--Section 4(a)(2) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231c(a)(2)) is 
     amended by striking ``if an'' and all that follows through 
     ``section 2(c)(1) of this Act'' and inserting ``a spouse 
     entitled to an annuity under section 2(c)(1)(ii)(B) of this 
     Act''.
       (c) Conforming Repeals.--Sections 3(a)(3), 4(a)(3), and 
     4(a)(4) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231b(a)(3), 231c(a)(3), and 231c(a)(4)) are repealed.
       (d) Effective Dates.--
       (1) Generally.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to annuities that 
     begin to accrue on or after January 1, 2002.
       (2) Exception.--The amount of the annuity provided for a 
     spouse under section 4(a) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231c(a)) shall be computed under section 
     4(a)(3) of such Act, as in effect on December 31, 2001, if 
     the annuity amount provided under section 3(a) of such Act 
     (45 U.S.C. 231b(a)) for the individual on whose employment 
     record the spouse annuity is based was computed under section 
     3(a)(3) of such Act, as in effect on December 31, 2001.

     SEC. 103. VESTING REQUIREMENT.

       (a) Certain Annuities for Individuals.--Section 2(a) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231a(a)) is 
     amended--
       (1) by inserting in subdivision (1) ``(or, for purposes of 
     paragraphs (i), (iii), and (v), five years of service, all of 
     which accrues after December 31, 1995)'' after ``ten years of 
     service''; and
       (2) by adding at the end the following new subdivision:
       ``(4) An individual who is entitled to an annuity under 
     paragraph (v) of subdivision (1), but who does not have at 
     least ten years of service, shall, prior to the month in 
     which the individual attains age 62, be entitled only to an 
     annuity amount computed under section 3(a) of this Act 
     (without regard to section 3(a)(2) of this Act) or section 
     3(f)(3) of this Act. Upon attainment of age 62, such an 
     individual may also be entitled to an annuity amount computed 
     under section 3(b), but such annuity amount shall be reduced 
     for early retirement in the same manner as if the individual 
     were entitled to an annuity under section 2(a)(1)(iii).''.
       (b) Computation Rule for Individuals' Annuities.--Section 
     3(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231b(a)), as amended by section 102 of this Act, is further 
     amended by adding at the end the following new subdivision:
       ``(3) If an individual entitled to an annuity under section 
     2(a)(1)(i) or (iii) of this Act on the basis of less than ten 
     years of service is entitled to a benefit under section 
     202(a), section 202(b), or section 202(c) of the Social 
     Security Act which began to accrue before the annuity under 
     section 2(a)(1)(i) or (iii) of this Act, the annuity amount 
     provided such individual under this subsection, shall be 
     computed as though the annuity under this Act began to accrue 
     on the later of (A) the date on which the benefit under 
     section 202(a), section 202(b), or section 202(c) of the 
     Social Security Act began, or (B) the date on which the 
     individual first met the conditions for entitlement to an age 
     reduced annuity under this Act other than the conditions set 
     forth in sections 2(e)(1) and 2(e)(2) of this Act and the 
     requirement that an application be filed.''.
       (c) Survivors' Annuities.--Section 2(d)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231a(d)(1)) is amended by 
     inserting ``(or five years of service, all of which accrues 
     after December 31, 1995)'' after ``ten years of service''.
       (d) Limitation on Annuity Amounts.--Section 2 of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231a) is amended 
     by adding at the end the following new subsection:
       ``(i) An individual entitled to an annuity under this 
     section who has completed five years of service, all of which 
     accrues after 1995, but who has not completed ten years of 
     service, and the spouse, divorced spouse, and survivors of 
     such individual, shall not be entitled to an annuity amount 
     provided under section 3(a), section 4(a), or section 4(f) of 
     this Act unless the individual, or the individual's spouse, 
     divorced spouse, or survivors, would be entitled to a benefit 
     under title II of the Social Security Act on the basis of the 
     individual's employment record under both this Act and title 
     II of the Social Security Act.''.
       (e) Computation Rule for Spouses' Annuities.--Section 4(a) 
     of the Railroad Retirement Act of 1974 (45 U.S.C. 231c(a)), 
     as amended by section 102 of this Act, is further amended by 
     adding at the end the following new subdivision:
       ``(3) If a spouse entitled to an annuity under section 
     2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), or section 2(c)(2) of 
     this Act or a divorced spouse entitled to an annuity under 
     section 2(c)(4) of this Act on the basis of the employment 
     record of an employee who will have completed less than 10 
     years of service is entitled to a benefit under section 
     202(a), section 202(b), or section 202(c) of the Social 
     Security Act which began to accrue before the annuity under 
     section 2(c)(1)(ii)(A), section 2(c)(1)(ii)(C), section 
     2(c)(2), or section 2(c)(4) of this Act, the annuity amount 
     provided under this subsection shall be computed as though 
     the annuity under this Act began to accrue on the later of 
     (A) the date on which the benefit under section 202(a), 
     section 202(b), or section 202(c) of the Social Security Act 
     began or (B) the first date on which the annuitant met the 
     conditions for entitlement to an age reduced annuity under 
     this Act other than the conditions set forth in sections 
     2(e)(1) and 2(e)(2) of this Act and the requirement that an 
     application be filed.''.
       (f)  Application Deeming Provision.--Section 5(b) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231d(b)) is 
     amended by striking the second sentence and inserting the 
     following new sentence: ``An application filed with the Board 
     for an employee annuity, spouse annuity, or divorced spouse 
     annuity on the basis of the employment record of an employee 
     who will have completed less than ten years of service shall 
     be deemed to be an application for any benefit to which such 
     applicant may be entitled under this Act or section 202(a), 
     section 202(b), or section 202(c) of the Social Security Act. 
     An application filed with the Board for an annuity on the 
     basis of the employment record of an employee who will have 
     completed ten years of service shall, unless the applicant 
     specified otherwise, be deemed to be an application for any 
     benefit to which such applicant may be entitled under this 
     Act or title II of the Social Security Act.''.
       (g) Crediting Service Under the Social Security Act.--
     Section 18(2) of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231q(2)) is amended--
       (1) by inserting ``(or less than five years of service, all 
     of which accrues after December 31, 1995)'' after ``ten years 
     of service'' every place it appears; and
       (2) by inserting ``(or five or more years of service, all 
     of which accrues after December 31, 1995)'' after ``ten or 
     more years of service''.
       (h) Automatic Benefit Eligibility Adjustments.--Section 19 
     of the Railroad Retirement Act of 1974 (45 U.S.C. 231r) is 
     amended--
       (1) by inserting ``(or five or more years of service, all 
     of which accrues after December 31, 1995)'' after ``ten years 
     of service'' in subsection (c); and
       (2) by inserting ``(or five or more years of service, all 
     of which accrues after December 31, 1995)'' after ``ten years 
     of service'' in subsection (d)(2).
       (i) Conforming Amendments.--
       (1) Section 6(e)(1) of the Railroad Retirement Act of 1974 
     (45 U.S.C. 231e(1)) is amended by inserting ``(or five or 
     more years of service, all of which accrues after December 
     31, 1995)'' after ``ten years of service''.
       (2) Section 7(b)(2)(A) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231f(b)(2)(A)) is amended by inserting ``(or 
     five or more years of service, all of which accrues after 
     December 31, 1995)'' after ``ten years of service''.
       (3) Section 205(i) of the Social Security Act (42 U.S.C. 
     405(i)) is amended by inserting ``(or five or more years of 
     service, all of which accrues after December 31, 1995)'' 
     after ``ten years of service''.
       (4) Section 6(b)(2) of the Railroad Retirement Act of 1974 
     (45 U.S.C. 231e(b)(2)) is amended by inserting ``(or five or 
     more years of service, all of which accrues after December 
     31, 1995)'' after ``ten years of service'' the second place 
     it appears.
       (j) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2002.

     SEC. 104. REPEAL OF RAILROAD RETIREMENT MAXIMUM.

       (a) Employee Annuities.--

[[Page 15233]]

       (1) In general.--Section 3(f) of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231b(f)) is amended--
       (A) by striking subdivision (1); and
       (B) by redesignating subdivisions (2) and (3) as 
     subdivisions (1) and (2), respectively.
       (2) Conforming amendments.--
       (A) The first sentence of section 3(f)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231b(f)(1)), as 
     redesignated by paragraph (1)(B), is amended by striking ``, 
     without regard to the provisions of subdivision (1) of this 
     subsection,''.
       (B) Paragraphs (i) and (ii) of section 7(d)(2) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231f(d)(2)) are 
     each amended by striking ``section 3(f)(3)'' and inserting 
     ``section 3(f)(2)''.
       (b) Spouse and Survivor Annuities.--Section 4 of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231c) is amended 
     by striking subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2002, and shall apply to 
     annuity amounts accruing for months after December 2001.

     SEC. 105. INVESTMENT OF RAILROAD RETIREMENT ASSETS.

       (a) Establishment of National Railroad Retirement 
     Investment Trust.--Section 15 of the Railroad Retirement Act 
     of 1974 (45 U.S.C. 231n) is amended by inserting after 
     subsection (i) the following new subsection:
       ``(j) National Railroad Retirement Investment Trust.--
       ``(1) Establishment.--The National Railroad Retirement 
     Investment Trust (hereinafter in this subsection referred to 
     as the `Trust') is hereby established as a trust domiciled in 
     the District of Columbia and shall, to the extent not 
     inconsistent with this Act, be subject to the laws of the 
     District of Columbia applicable to such trusts. The Trust 
     shall manage and invest its assets in the manner set forth in 
     this subsection.
       ``(2) Not a federal agency or instrumentality.--The Trust 
     is not a department, agency, or instrumentality of the 
     Government of the United States and shall not be subject to 
     title 31, United States Code.
       ``(3) Board of trustees.--
       ``(A) Generally.--
       ``(i) Membership.--The Trust shall have a Board of 
     Trustees, consisting of 7 members. Three shall represent the 
     interests of labor, 3 shall represent the interests of 
     management, and 1 shall be an independent Trustee. The 
     members of the Board of Trustees shall not be considered 
     officers or employees of the Government of the United States.
       ``(ii) Selection.--

       ``(I) The 3 members representing the interests of labor 
     shall be selected by the joint recommendation of labor 
     organizations, national in scope, organized in accordance 
     with section 2 of the Railway Labor Act, and representing at 
     least \2/3\ of all active employees, represented by such 
     national labor organizations, covered under this Act.
       ``(II) The 3 members representing the interests of 
     management shall be selected by the joint recommendation of 
     carriers as defined in section 1 of the Railway Labor Act 
     employing at least \2/3\ of all active employees covered 
     under this Act.
       ``(III) The independent member shall be selected by a 
     majority of the other 6 members of the Board of Trustees.

     A member of the Board of Trustees may be removed in the same 
     manner and by the same constituency that selected that 
     member.
       ``(iii) Dispute resolution.--In the event that the parties 
     specified in subclause (I), (II), or (III) of the previous 
     clause cannot agree on the selection of Trustees within 60 
     days of the date of enactment or 60 days from any subsequent 
     date that a position of the Board of Trustees becomes vacant, 
     an impartial umpire to decide such dispute shall, on the 
     petition of a party to the dispute, be appointed by the 
     District Court of the United States for the District of 
     Columbia.
       ``(B) Qualifications.--Members of the Board of Trustees 
     shall be appointed only from among persons who have 
     experience and expertise in the management of financial 
     investments and pension plans. No member of the Railroad 
     Retirement Board shall be eligible to be a member of the 
     Board of Trustees.
       ``(C) Terms.--Except as provided in this subparagraph, each 
     member shall be appointed for a 3-year term. The initial 
     members appointed under this paragraph shall be divided into 
     equal groups so nearly as may be, of which one group will be 
     appointed for a 1-year term, one for a 2-year term, and one 
     for a 3-year term. The Trustee initially selected pursuant to 
     clause (ii)(III) shall be appointed to a 3-year term. A 
     vacancy in the Board of Trustees shall not affect the powers 
     of the Board of Trustees and shall be filled in the same 
     manner as the selection of the member whose departure caused 
     the vacancy. Upon the expiration of a term of a member of the 
     Board of Trustees, that member shall continue to serve until 
     a successor is appointed.
       ``(4) Powers of the board of trustees.--The Board of 
     Trustees shall--
       ``(A) retain independent advisers to assist it in the 
     formulation and adoption of its investment guidelines;
       ``(B) retain independent investment managers to invest the 
     assets of the Trust in a manner consistent with such 
     investment guidelines;
       ``(C) invest assets in the Trust, pursuant to the policies 
     adopted in subparagraph (A);
       ``(D) pay administrative expenses of the Trust from the 
     assets in the Trust; and
       ``(E) transfer money to the disbursing agent or as 
     otherwise provided in section 7(b)(4), to pay benefits 
     payable under this Act from the assets of the Trust.
       ``(5) Reporting requirements and fiduciary standards.--The 
     following reporting requirements and fiduciary standards 
     shall apply with respect to the Trust:
       ``(A) Duties of the board of trustees.--The Trust and each 
     member of the Board of Trustees shall discharge their duties 
     (including the voting of proxies) with respect to the assets 
     of the Trust solely in the interest of the Railroad 
     Retirement Board and through it, the participants and 
     beneficiaries of the programs funded under this Act--
       ``(i) for the exclusive purpose of--

       ``(I) providing benefits to participants and their 
     beneficiaries; and
       ``(II) defraying reasonable expenses of administering the 
     functions of the Trust;

       ``(ii) with the care, skill, prudence, and diligence under 
     the circumstances then prevailing that a prudent person 
     acting in a like capacity and familiar with such matters 
     would use in the conduct of an enterprise of a like character 
     and with like aims;
       ``(iii) by diversifying investments so as to minimize the 
     risk of large losses and to avoid disproportionate influence 
     over a particular industry or firm, unless under the 
     circumstances it is clearly prudent not to do so; and
       ``(iv) in accordance with Trust governing documents and 
     instruments insofar as such documents and instruments are 
     consistent with this Act.
       ``(B) Prohibitions with respect to members of the board of 
     trustees.--No member of the Board of Trustees shall--
       ``(i) deal with the assets of the Trust in the trustee's 
     own interest or for the trustee's own account;
       ``(ii) in an individual or in any other capacity act in any 
     transaction involving the assets of the Trust on behalf of a 
     party (or represent a party) whose interests are adverse to 
     the interests of the Trust, the Railroad Retirement Board, or 
     the interests of participants or beneficiaries; or
       ``(iii) receive any consideration for the trustee's own 
     personal account from any party dealing with the assets of 
     the Trust.
       ``(C) Exculpatory provisions and insurance.--Any provision 
     in an agreement or instrument that purports to relieve a 
     trustee from responsibility or liability for any 
     responsibility, obligation, or duty under this Act shall be 
     void: Provided, however, That nothing shall preclude--
       ``(i) the Trust from purchasing insurance for its trustees 
     or for itself to cover liability or losses occurring by 
     reason of the act or omission of a trustee, if such insurance 
     permits recourse by the insurer against the trustee in the 
     case of a breach of a fiduciary obligation by such trustee;
       ``(ii) a trustee from purchasing insurance to cover 
     liability under this section from and for his own account; or
       ``(iii) an employer or an employee organization from 
     purchasing insurance to cover potential liability of one or 
     more trustees with respect to their fiduciary 
     responsibilities, obligations, and duties under this section.
       ``(D) Bonding.--Every trustee and every person who handles 
     funds or other property of the Trust (hereafter in this 
     subsection referred to as `Trust official') shall be bonded. 
     Such bond shall provide protection to the Trust against loss 
     by reason of acts of fraud or dishonesty on the part of any 
     Trust official, directly or through the connivance of others, 
     and shall be in accordance with the following:
       ``(i) The amount of such bond shall be fixed at the 
     beginning of each fiscal year of the Trust by the Railroad 
     Retirement Board. Such amount shall not be less than 10 
     percent of the amount of the funds handled. In no case shall 
     such bond be less than $1,000 nor more than $500,000, except 
     that the Railroad Retirement Board, after consideration of 
     the record, may prescribe an amount in excess of $500,000, 
     subject to the 10 per centum limitation of the preceding 
     sentence.
       ``(ii) It shall be unlawful for any Trust official to 
     receive, handle, disburse, or otherwise exercise custody or 
     control of any of the funds or other property of the Trust 
     without being bonded as required by this subsection and it 
     shall be unlawful for any Trust official, or any other person 
     having authority to direct the performance of such functions, 
     to permit such functions, or any of them, to be performed by 
     any Trust official, with respect to whom the requirements of 
     this subsection have not been met.
       ``(iii) It shall be unlawful for any person to procure any 
     bond required by this subsection from any surety or other 
     company or through any agent or broker in whose business 
     operations such person has any control or significant 
     financial interest, direct or indirect.
       ``(E) Audit and report.--
       ``(i) The Trust shall annually engage an independent 
     qualified public accountant to audit the financial statements 
     of the Trust.

[[Page 15234]]

       ``(ii) The Trust shall submit an annual management report 
     to the Congress not later than 180 days after the end of the 
     Trust's fiscal year. A management report under this 
     subsection shall include--

       ``(I) a statement of financial position;
       ``(II) a statement of operations;
       ``(III) a statement of cash flows;
       ``(IV) a statement on internal accounting and 
     administrative control systems;
       ``(V) the report resulting from an audit of the financial 
     statements of the Trust conducted under clause (i); and
       ``(VI) any other comments and information necessary to 
     inform the Congress about the operations and financial 
     condition of the Trust.

       ``(iii) The Trust shall provide the President, the Railroad 
     Retirement Board, and the Director of the Office of 
     Management and Budget a copy of the management report when it 
     is submitted to Congress.
       ``(F) Enforcement.--The Railroad Retirement Board may bring 
     a civil action--
       ``(i) to enjoin any act or practice by the Trust, its Board 
     of Trustees, or its employees or agents that violates any 
     provision of this Act; or
       ``(ii) to obtain other appropriate relief to redress such 
     violations, or to enforce any provisions of this Act.
       ``(6) Rules and administrative powers.--The Board of 
     Trustees shall have the authority to make rules to govern its 
     operations, employ professional staff, and contract with 
     outside advisers, including the Railroad Retirement Board, to 
     provide legal, accounting, investment advisory, or other 
     services necessary for the proper administration of this 
     subsection. In the case of contracts with investment advisory 
     services, compensation for such services may be on a fixed 
     contract fee basis or on such other terms and conditions as 
     are customary for such services.
       ``(7) Quorum.--Five members of the Board of Trustees 
     constitute a quorum to do business. Investment guidelines 
     must be adopted by a unanimous vote of the entire Board of 
     Trustees. All other decisions of the Board of Trustees shall 
     be decided by a majority vote of the quorum present. All 
     decisions of the Board of Trustees shall be entered upon the 
     records of the Board of Trustees.
       ``(8) Funding.--The expenses of the Trust and the Board of 
     Trustees incurred under this subsection shall be paid from 
     the Trust.''.
       (b) Conforming and Technical Amendments Governing 
     Investments.--Section 15(e) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231n(e)) is amended--
       (1) in the first sentence, by striking ``, the Dual 
     Benefits Payments Account'' and all that follows through 
     ``may be made only'' in the second sentence and inserting 
     ``and the Dual Benefits Payments Account as are not 
     transferred to the National Railroad Retirement Investment 
     Trust as the Board may determine'';
       (2) by striking ``the Second Liberty Bond Act, as amended'' 
     and inserting ``chapter 31 of title 31''; and
       (3) by striking ``the foregoing requirements'' and 
     inserting ``the requirements of this subsection''.
       Amend section 105 by adding at the end the following new 
     subsection:
       (c) Means of Financing.--For all purposes of the 
     Congressional Budget Act of 1974, the Balanced Budget and 
     Emergency Deficit Control Act of 1985, and chapter 11 of 
     title 31, United States Code, and notwithstanding section 20 
     of the Office of Management and Budget Circular No. A-11, the 
     purchase or sale of non-Federal assets (other than gains or 
     losses from such transactions) by the National Railroad 
     Retirement Investment Trust shall be treated as a means of 
     financing.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the month that begins 
     more than 30 days after enactment.

     SEC. 106. ELIMINATION OF SUPPLEMENTAL ANNUITY ACCOUNT.

       (a) Source of Payments.--Section 7(c)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231f(c)(1)) is amended by 
     striking ``payments of supplemental annuities under section 
     2(b) of this Act shall be made from the Railroad Retirement 
     Supplemental Account, and''.
       (b) Elimination of Account.--Section 15(c) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(c)) is repealed.
       (c) Amendment to Railroad Retirement Account.--Section 
     15(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231n(a)) is amended by striking ``, except those portions of 
     the amounts covered into the Treasury under sections 
     3211(b),'' and all that follows through the end of the 
     subsection and inserting a period.
       (d) Transfer.--
       (1) Determination.--As soon as possible after December 31, 
     2001, the Railroad Retirement Board shall--
       (A) determine the amount of funds in the Railroad 
     Retirement Supplemental Account under section 15(c) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n(c)) as of the 
     date of such determination; and
       (B) direct the Secretary of the Treasury to transfer such 
     funds to the National Railroad Retirement Investment Trust 
     under section 15(j) of such Act (as added by section 105).
       (2) Transfer by the secretary of the treasury.--The 
     Secretary of the Treasury shall make the transfer described 
     in paragraph (1).
       (e) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsections (a), (b), and (c) shall take effect 
     January 1, 2002.
       (2) Account in existence until transfer made.--The Railroad 
     Retirement Supplemental Account under section 15(c) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n(c)) shall 
     continue to exist until the date that the Secretary of the 
     Treasury makes the transfer described in subsection (d)(2).

     SEC. 107. TRANSFER AUTHORITY REVISIONS.

       (a) Railroad Retirement Account.--Section 15 of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n) is amended 
     by adding after subsection (j) the following new subsection:
       ``(k) Transfers to the Trust.--The Board shall, upon 
     establishment of the National Railroad Retirement Investment 
     Trust and from time to time thereafter, direct the Secretary 
     of the Treasury to transfer, in such manner as will maximize 
     the investment returns to the Railroad Retirement system, 
     that portion of the Railroad Retirement Account that is not 
     needed to pay current administrative expenses of the Board to 
     the National Railroad Retirement Investment Trust. The 
     Secretary shall make that transfer.''.
       (b) Transfers From the National Railroad Retirement 
     Investment Trust.--Section 15 of the Railroad Retirement Act 
     of 1974 (45 U.S.C. 231n), as amended by subsection (a), is 
     further amended by adding after subsection (k) the following 
     new subsection:
       ``(l) National Railroad Retirement Investment Trust.--The 
     National Railroad Retirement Investment Trust shall from time 
     to time transfer to the disbursing agent described in section 
     7(b)(4) or as otherwise directed by the Railroad Retirement 
     Board pursuant to section 7(b)(4), such amounts as may be 
     necessary to pay benefits under this Act (other than benefits 
     paid from the Social Security Equivalent Benefit Account or 
     the Dual Benefit Payments Account).''.
       (c) Social Security Equivalent Benefit Account.--
       (1) Transfers to trust.--Section 15A(d)(2) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n-1(d)(2)) is amended to 
     read as follows:
       ``(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, and the Secretary shall make that transfer. 
     Any balance transferred under this paragraph shall be used by 
     the National Railroad Retirement Investment Trust only to pay 
     benefits under this Act or to purchase obligations of the 
     United States that are backed by the full faith and credit of 
     the United States pursuant to chapter 31 of title 31, United 
     States Code. The proceeds of sales of, and the interest 
     income from, such obligations shall be used by the Trust only 
     to pay benefits under this Act.''.
       (2) Transfers to disbursing agent.--Section 15A(c)(1) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(c)(1)) 
     is amended by adding at the end the following new sentence: 
     ``The Secretary shall from time to time transfer to the 
     disbursing agent under section 7(b)(4) amounts necessary to 
     pay those benefits.''.
       (3) Conforming amendment.--Section 15A(d)(1) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(d)(1)) is 
     amended by striking the second and third sentences.
       (d) Dual Benefits Payments Account.--Section 15(d)(1) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n(d)(1)) is 
     amended by adding at the end the following new sentence: 
     ``The Secretary of the Treasury shall from time to time 
     transfer from the Dual Benefits Payments Account to the 
     disbursing agent under section 7(b)(4) amounts necessary to 
     pay benefits payable from that Account.''.
       (e) Certification by the Board and Payment.--Paragraph (4) 
     of section 7(b) of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231f(b)(4)) is amended to read as follows:
       ``(4)(A) The Railroad Retirement Board, after consultation 
     with the Board of Trustees of the National Railroad 
     Retirement Investment Trust and the Secretary of the 
     Treasury, shall enter into an arrangement with a 
     nongovernmental financial institution to serve as disbursing 
     agent for benefits payable under this Act who shall disburse 
     consolidated benefits under this Act to each recipient. 
     Pending the taking effect of that arrangement, benefits shall 
     be paid as under the law in effect prior to the enactment of 
     the Railroad Retirement and Survivors' Improvement Act of 
     2001.
       ``(B) The Board shall from time to time certify--
       ``(i) to the Secretary of the Treasury the amounts required 
     to be transferred from the Social Security Equivalent Benefit 
     Account

[[Page 15235]]

     and the Dual Benefits Payments Account to the disbursing 
     agent to make payments of benefits and the Secretary of the 
     Treasury shall transfer those amounts;
       ``(ii) to the Board of Trustees of the National Railroad 
     Retirement Investment Trust the amounts required to be 
     transferred from the National Railroad Retirement Investment 
     Trust to the disbursing agent to make payments of benefits 
     and the Board of Trustees shall transfer those amounts; and
       ``(iii) to the disbursing agent the name and address of 
     each individual entitled to receive a payment, the amount of 
     such payment, and the time at which the payment should be 
     made.''.
       (f) Benefit Payments.--Section 7(c)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231f(c)(1)) is amended--
       (1) by striking ``from the Railroad Retirement Account'' 
     and inserting ``by the disbursing agent under subsection 
     (b)(4) from money transferred to it from the National 
     Railroad Retirement Investment Trust or the Social Security 
     Equivalent Benefit Account, as the case may be''; and
       (2) by inserting ``by the disbursing agent under subsection 
     (b)(4) from money transferred to it'' after ``Public Law 93-
     445 shall be made''.
       (g) Transitional Rule for Existing Obligation.--In making 
     transfers under sections 15(k) and 15A(d)(2) of the Railroad 
     Retirement Act of 1974, as amended by subsections (a) and 
     (c), respectively, the Railroad Retirement Board shall 
     consult with the Secretary of the Treasury to design an 
     appropriate method to transfer obligations held as of the 
     date of enactment of this Act or to convert such obligations 
     to cash at the discretion of the Railroad Retirement Board 
     prior to transfer. The National Railroad Retirement 
     Investment Trust may hold to maturity any obligations so 
     received or may redeem them prior to maturity, as the Trust 
     deems appropriate.

     SEC. 108. ANNUAL RATIO PROJECTIONS AND CERTIFICATIONS BY THE 
                   RAILROAD RETIREMENT BOARD.

       (a) Projections.--Section 22(a)(1) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231u(a)(1)) is amended--
       (1) by inserting after the first sentence the following new 
     sentence: ``On or before May 1 of each year beginning in 
     2003, the Railroad Retirement Board shall compute its 
     projection of the account benefits ratio and the average 
     account benefits ratio (as defined by section 3241(c) of the 
     Internal Revenue Code of 1986) for each of the next 
     succeeding five fiscal years.''; and
       (2) by striking ``the projection prepared pursuant to the 
     preceding sentence'' and inserting ``the projections prepared 
     pursuant to the preceding two sentences''.
       (b) Certifications.--The Railroad Retirement Act of 1974 
     (45 U.S.C. 231 et seq.) is amended by adding at the end the 
     following new section:


       ``computation and certification of account benefit ratios

       ``Sec. 23. (a) Initial Computation and Certification.--On 
     or before November 1, 2003, the Railroad Retirement Board 
     shall--
       ``(1) compute the account benefits ratios for each of the 
     most recent 10 preceding fiscal years, and
       ``(2) certify the account benefits ratios for each such 
     fiscal year to the Secretary of the Treasury.
       ``(b) Computations and Certifications After 2003.--On or 
     before November 1 of each year after 2003, the Railroad 
     Retirement Board shall--
       ``(1) compute the account benefits ratio for the fiscal 
     year ending in such year, and
       ``(2) certify the account benefits ratio for such fiscal 
     year to the Secretary of the Treasury.
       ``(c) Definition.--As used in this section, the term 
     `account benefits ratio' has the meaning given that term in 
     section 3241(c) of the Internal Revenue Code of 1986.''.

       TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

     SEC. 201. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

       Except as otherwise provided, whenever in this title an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.

     SEC. 202. EXEMPTION FROM TAX FOR NATIONAL RAILROAD RETIREMENT 
                   INVESTMENT TRUST.

       Subsection (c) of section 501 is amended by adding at the 
     end the following new paragraph:
       ``(28) The National Railroad Retirement Investment Trust 
     established under section 15(j) of the Railroad Retirement 
     Act of 1974.''.

     SEC. 203. REPEAL OF SUPPLEMENTAL ANNUITY TAX.

       (a) Repeal of Tax on Employee Representatives.--Section 
     3211 is amended by striking subsection (b).
       (b) Repeal of Tax on Employers.--Section 3221 is amended by 
     striking subsections (c) and (d) and by redesignating 
     subsection (e) as subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2001.

     SEC. 204. EMPLOYER, EMPLOYEE REPRESENTATIVE, AND EMPLOYEE 
                   TIER 2 TAX RATE ADJUSTMENTS.

       (a) Rate of Tax on Employers.--Subsection (b) of section 
     3221 is amended to read as follows:
       ``(b) Tier 2 Tax.--
       ``(1) In general.--In addition to other taxes, there is 
     hereby imposed on every employer an excise tax, with respect 
     to having individuals in his employ, equal to the applicable 
     percentage of the compensation paid during any calendar year 
     by such employer for services rendered to such employer.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means--
       ``(A) 15.6 percent in the case of compensation paid during 
     2002,
       ``(B) 14.2 percent in the case of compensation paid during 
     2003, and
       ``(C) in the case of compensation paid during any calendar 
     year after 2003, the percentage determined under section 3241 
     for such calendar year.''.
       (b) Rate of Tax on Employee Representatives.--Section 3211, 
     as amended by section 203, is amended by striking subsection 
     (a) and inserting the following new subsections:
       ``(a) Tier 1 Tax.--In addition to other taxes, there is 
     hereby imposed on the income of each employee representative 
     a tax equal to the applicable percentage of the compensation 
     received during any calendar year by such employee 
     representative for services rendered by such employee 
     representative. For purposes of the preceding sentence, the 
     term `applicable percentage' means the percentage equal to 
     the sum of the rates of tax in effect under subsections (a) 
     and (b) of section 3101 and subsections (a) and (b) of 
     section 3111 for the calendar year.
       ``(b) Tier 2 Tax.--
       ``(1) In general.--In addition to other taxes, there is 
     hereby imposed on the income of each employee representative 
     a tax equal to the applicable percentage of the compensation 
     received during any calendar year by such employee 
     representatives for services rendered by such employee 
     representative.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means--
       ``(A) 14.75 percent in the case of compensation received 
     during 2002,
       ``(B) 14.20 percent in the case of compensation received 
     during 2003, and
       ``(C) in the case of compensation received during any 
     calendar year after 2003, the percentage determined under 
     section 3241 for such calendar year.
       ``(c) Cross Reference.--

  ``For application of different contribution bases with respect to the 
taxes imposed by subsections (a) and (b), see section 3231(e)(2).''.
       (c) Rate of Tax on Employees.--Subsection (b) of section 
     3201 is amended to read as follows:
       ``(b) Tier 2 Tax.--
       ``(1) In general.--In addition to other taxes, there is 
     hereby imposed on the income of each employee a tax equal to 
     the applicable percentage of the compensation received during 
     any calendar year by such employee for services rendered by 
     such employee.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means--
       ``(A) 4.90 percent in the case of compensation received 
     during 2002 or 2003, and
       ``(B) in the case of compensation received during any 
     calendar year after 2003, the percentage determined under 
     section 3241 for such calendar year.''.
       (d) Determination of Rate.--Chapter 22 is amended by adding 
     at the end the following new subchapter:

             ``Subchapter E--Tier 2 Tax Rate Determination

``Sec. 3241. Determination of tier 2 tax rate based on average account 
              benefits ratio.

     ``SEC. 3241. DETERMINATION OF TIER 2 TAX RATE BASED ON 
                   AVERAGE ACCOUNT BENEFITS RATIO.

       ``(a) In General.--For purposes of sections 3201(b), 
     3211(b), and 3221(b), the applicable percentage for any 
     calendar year is the percentage determined in accordance with 
     the table in subsection (b).
       ``(b) Tax Rate Schedule.--


[[Page 15236]]



------------------------------------------------------------------------
 ``Average account benefits ratio       Applicable
-----------------------------------   percentage for       Applicable
                                     sections 3211(b)    percentage for
    At least        But less than      and 3221(b)      section 3201(b)
------------------------------------------------------------------------
                            2.5                22.1                4.9
          2.5               3.0                18.1                4.9
          3.0               3.5                15.1                4.9
          3.5               4.0                14.1                4.9
          4.0               6.1                13.1                4.9
          6.1               6.5                12.6                4.4
          6.5               7.0                12.1                3.9
          7.0               7.5                11.6                3.4
          7.5               8.0                11.1                2.9
          8.0               8.5                10.1                1.9
          8.5               9.0                 9.1                0.9
          9.0                                   8.2                  0
------------------------------------------------------------------------

       ``(c) Definitions Related to Determination of Rates of 
     Tax.--
       ``(1) Average account benefits ratio.--For purposes of this 
     section, the term `average account benefits ratio' means, 
     with respect to any calendar year, the average determined by 
     the Secretary of the account benefits ratios for the 10 most 
     recent fiscal years ending before such calendar year. If the 
     amount determined under the preceding sentence is not a 
     multiple of 0.1, such amount shall be increased to the next 
     highest multiple of 0.1.
       ``(2) Account benefits ratio.--For purposes of this 
     section, the term `account benefits ratio' means, with 
     respect to any fiscal year, the amount determined by the 
     Railroad Retirement Board by dividing the fair market value 
     of the assets in the Railroad Retirement Account and of the 
     National Railroad Retirement Investment Trust (and for years 
     before 2002, the Social Security Equivalent Benefits Account) 
     as of the close of such fiscal year by the total benefits and 
     administrative expenses paid from the Railroad Retirement 
     Account and the National Railroad Retirement Investment Trust 
     during such fiscal year.
       ``(d) Notice.--No later than December 1 of each calendar 
     year, the Secretary shall publish a notice in the Federal 
     Register of the rates of tax determined under this section 
     which are applicable for the following calendar year.''.
       (e) Conforming Amendments.--
       (1) Section 24(d)(3)(A)(iii) is amended by striking 
     ``section 3211(a)(1)'' and inserting ``section 3211(a)''.
       (2) Section 72(r)(2)(B)(i) is amended by striking 
     ``3211(a)(2)'' and inserting ``3211(b)''.
       (3) Paragraphs (2)(A)(iii)(II) and (4)(A) of section 
     3231(e) are amended by striking ``3211(a)(1)'' and inserting 
     ``3211(a)''.
       (4) Section 3231(e)(2)(B)(ii)(I) is amended by striking 
     ``3211(a)(2)'' and inserting ``3211(b)''.
       (5) The table of subchapters for chapter 22 is amended by 
     adding at the end the following new item:

``Subchapter E. Tier 2 tax rate determination.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after December 31, 
     2001.

  The SPEAKER pro tempore (Mr. Sununu). Pursuant to the rule, the 
gentleman from Alaska (Mr. Young) and the gentleman from Minnesota (Mr. 
Oberstar) each will control 20 minutes.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, does the gentleman from 
Minnesota oppose the bill?
  Mr. OBERSTAR. No, I do not.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I am opposed and I would claim 
the time in opposition.
  The SPEAKER pro tempore. The gentleman from Alaska (Mr. Young) and 
the gentleman from Texas (Mr. Sam Johnson) each will control 20 
minutes.
  The Chair recognizes the gentleman from Alaska (Mr. Young).
  Mr. YOUNG of Alaska. Mr. Speaker, I ask unanimous consent to yield 10 
minutes to the gentleman from Minnesota (Mr. Oberstar) for purposes of 
control.
  The SPEAKER pro tempore. Without objection, the gentleman from 
Minnesota will control 10 minutes of the time.
  There was no objection.
  The SPEAKER pro tempore. The gentleman from Alaska is recognized for 
10 minutes.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield myself such time as I may 
consume.
  I strongly support H.R. 1140, the Railroad Retirement and Survivors' 
Improvement Act of 2001. Thanks to the heroic efforts of the Speaker of 
the House, the Honorable Dennis Hastert, we have been able to reach an 
agreement on this historic legislation.
  H.R. 1140 is virtually identical to the railroad retirement bill that 
passed the House last year, 391 to 25, but was not taken up by the 
other body. This Congress made several technical changes, such as 
inserting updated effective dates. We have also included language 
drafted by the House Committee on the Budget that clarifies the 
authors' intent that transferring funds to the new investment trust 
does not result in outlays.
  To address concerns raised about protecting the investment of tier 2 
pension assets from possible influence by the Federal Government, we 
have also included labor and management selection process for the board 
of trustees who will manage those assets.
  By moving a portion of the Railroad Retirement Trust Fund out of 
mandatory investment in Treasury bonds and giving it more investment 
flexibility, this landmark bill will provide enhanced benefits to 
railroad retirees, as well as reduced taxes on railroad employers.
  A 2 percent increase in the rate of return, which is quite 
conservative based on historical trends, will provide the needed boost 
to allow for these benefit increases and payroll tax cuts.
  H.R. 1140 includes safety provisions that automatically adjust 
payroll tax rates upward if historically predicted increases in 
retirement fund returns do not materialize. The burden of higher taxes 
will fall entirely on railroad employers, not the employees.
  I would like to commend the subcommittee chairman, the gentleman from 
New York (Mr. Quinn), for prompting the negotiations between labor and 
management that produced this legislation.
  The bipartisan comprehensive reform package we have before us today 
reduces the financial burden on employers as well as the employees, 
while providing an overall increase in benefits, a targeted increase 
for widows and widowers of railroad retirees, and a reduced tier 2 
retirement age.
  Let me briefly mention an unfounded concern that has been voiced 
about this bill. Many people have been told this bill involves a $15 
billion first-year hit on the U.S. Treasury. Thanks to the hard work of 
the Speaker of the House, the OMB and the House leadership have agreed 
on legislative language that avoids this fictional outlay. This 
language reflects the fact that taking the $15 billion tier 2 pension 
fund out of the current approach of investing only in Treasury bonds, 
and allowing professional, diversified management of the investment, is 
not spending.

[[Page 15237]]

  Mr. Speaker, the wisdom and widespread support of this bill is 
demonstrated by the fact that it has 371 sponsors. And for those who 
say the bill raids the Treasury, let me advise them that 30 of the 42 
members of the Committee on the Budget are sponsors of the bill. 
Furthermore, even the CBO admits that the scoring of this bill is ill-
suited to the type of reinvestment this bill would allow.
  Mr. Speaker, this bill represents several years' effort and difficult 
negotiations between railroad labor and railroad management. I commend 
my colleagues on the railroading industry for their diligence and 
cooperation.
  I am also very pleased that the bipartisan leadership of this 
committee worked cooperatively to move this legislation again in the 
107th Congress. Working on a bipartisan basis in this committee has 
allowed us to enact significant legislation on behalf of our 
constituents. H.R. 1140 will set yet another example of this proud 
record.
  I thank my colleague and ranking Democrat on the committee, the 
gentleman from Minnesota (Mr. Oberstar), and the subcommittee ranking 
member, the gentleman from Tennessee (Mr. Clement) for their 
cooperation and support.
  I urge swift passage of H.R. 1140.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, in deference to my colleagues 
both on that side and this side, I appreciate their position on this, 
but I rise in strong opposition to the Railroad Retirement and 
Survivors' Improvement Act.
  This bill really is a fake, a fraud and a phony. It breaks every 
promise we have made to the American people and treats every other 
senior citizen as a second-class citizen.
  This legislation gives preferential treatment to a select few, 
900,000 railroad people. It raids the Social Security-Medicare Trust 
Funds. It is absurd that the Federal Government allows one group of 
people to retire at age 60 while others will have to wait until they 
turn 65 or in the future, age 67, and this bill does just that.
  Under this fatally flawed legislation, railroad retirees will be able 
to retire at age 60 and receive Social Security equivalent retirement 
benefits. Every other American has to wait until at least age 65 to get 
full Social Security, and 67 for those that are following us.
  For the same group of railroaders, we have decided to break open the 
Social Security and Medicare lockbox to give railroaders their new 
benefits. Nobody can say with a straight face that this measure will 
not raid the Social Security and Medicare Trust Funds.
  A provision added to the bill today would direct the OMB to pretend 
that the bill does not cost anything. In reality, it costs $15 billion 
in the first year and an additional $7 billion over the next 10 years, 
and the Committee on Transportation and Infrastructure's own analysis 
cites that.
  Worse, the program is already receiving subsidies from the Social 
Security Trust Fund. Since 1958, the Railroad Trust Fund has needed 
money. The subsidy has been nearly $84 billion, and last year alone, 
the railroad retirement bilked $3.5 from the Social Security Trust 
Fund. In fact, the Social Security Administration spends more money on 
the railroad retirement system than it spends on all Social Security 
administrative costs, not to mention this bill sets a terrible 
precedent for the future of Social Security. Instead of private 
accounts, it puts the government in charge.
  The bill, as written, sets up a government-run investment board that 
makes decisions about where the money is invested. These are not 
private accounts, nor is there a private board making these decisions. 
The board is controlled by six railroad insiders, with only one 
representative looking out for the American taxpayer.
  In short, this bill allows the government to use tax dollars to play 
in the market. This is wrong. The Federal Government ought not be 
involved in the stock market.
  Railroad retirement benefits are substantially higher than Social 
Security benefits. For instance, on average, it gives career railroad 
retirement retirees more than double the amount of money per month than 
all other seniors collecting Social Security.
  It is wrong for the American taxpayer and the Social Security Trust 
Fund to subsidize these higher benefits. It is not fair to treat one 
group of retirees better than anyone else. To add insult to injury, 
this bill allows felons sitting in jail to receive railroad benefits. 
Why should they? Felons were eliminated from the Social Security 
program in welfare reform several years ago. What is next, telling all 
of the people with the letter ``J'' in their last name they can retire 
at 63.5?
  Lastly, the measure also violates three of President Bush's five 
sacred Social Security reform proposals. One, the bill demands using 
Social Security funds to subsidize other benefits. Two, the Federal 
Government, disguised as the investment trust, would invest in the 
private sector. Three, the bill would prohibit personal retirement 
accounts for railroad employees or retirees.
  Every one of the 407 Members of Congress who voted for the Medicare-
Social Security lockbox ought to vote against this bill because this 
bill will raid Social Security and Medicare. Just last week the Office 
of Management and Budget and the Congressional Budget Office both 
scored this bill at a cost of $15 billion in its first year; but all of 
a sudden today it now costs the taxpayer nothing.
  How can that be? How can we cash in $15 billion of U.S. Treasury 
bonds, and say that it does not have an effect on the Medicare and 
Social Security surplus. I just do not understand. Are we cooking the 
books?
  Call your Senator if you are listening, (202) 225-3121, to stop this 
fraud in America.
  Mr. Speaker, I urge my colleagues to vote against raiding the Social 
Security-Medicare Trust Funds, and to vote against this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. OBERSTAR. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, notwithstanding the relatively hostile remarks and 
misguided comments of our very otherwise thoughtful colleague from 
Texas, I today brought with me my 83-year-old railroad watch, 15 size 
Illinois, in memory of the railroad workers who have waited nearly that 
long for justice in their retirement program.
  This legislation will bring truly significant benefits to the more 
than one-quarter million men and women who work on America's railroads, 
and to the 700,000 retirees and survivors of retired railroad workers.
  The bill allows for a significant reduction in payroll taxes paid by 
the U.S. railroads. This is one of those special occasions in the 
legislative arena when all parties benefit. In this case, railroads, 
railroad labor, retired railroad workers, and their survivors. All of 
them come out ahead.
  This legislation, as our chairman so well expressed, is the result of 
an historic agreement reached by railroad management and labor over 
more than 2 years of intense, difficult negotiations. The benefit 
improvements, as well as tax cuts, are made possible by changing 
current law that limits the investment of Railroad Retirement Trust 
Fund assets to government securities.
  The proposed changes governing the Railroad Retirement Trust Fund 
will not affect the solvency of the railroad retirement system. The 
tier 1 program which provides Social Security benefits, will continue 
to be invested only in government securities. Only tier 2 funds, the 
original railroad retirement program, will be eligible for investment 
in assets other than government securities.
  The projected increases in Trust Fund income from these changes are 
based on fairly conservative forecasts of the rates of returns that 
could be earned by a diversified portfolio. That would be about 2 
percentage points above the return on government securities.
  But more importantly, if the investments fail to perform as well as 
expected, worker's pensions are protected because the legislation 
requires, as agreed to in the negotiations between

[[Page 15238]]

management and labor, requires the railroads to absorb any future tax 
increases that might be necessary to keep the system solvent. 
Ultimately, the Federal Government continues to be responsible for the 
security of the railroad retirement system.
  This is the first really significant benefit in 25 years, although as 
I said, it seems more like 83. Those benefits are: The age at which 
employees can retire with full benefits is reduced from 62 to 60 with 
30 years of service; the number of years required for vesting is 
reduced from 10 to 5 years; the benefits of widows and widowers are 
expanded; and the limits on tier 2 annuities are repealed.
  The bill calls for automatic future improvements if the retirement 
plan becomes overfunded. It reduces the payroll taxes paid by 
railroads. That means that for tier 2 benefits, the railroad's taxes 
decline from 16.1 percent to 13.1 percent.
  By the third year after passage of this bill, after enactment of this 
legislation, the railroads stand to gain nearly $400 million annually 
from lower payroll taxes, and that will allow them to invest that money 
into needed rail and track and rolling stock improvements, and it 
allows them also to improve the wages and working conditions of 
railroad workers.
  Mr. Speaker, we passed this bill last year, with former Chairman 
Shuster and me working together on a bipartisan basis, and I want to 
reflect again on the splendid working relationship we have had with the 
gentleman from Alaska (Mr. Young) on bringing this legislation through 
to this point.
  We passed this bill last year 391 to 25. We ought to do the same this 
year.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1900

  Mr. YOUNG of Alaska. Mr. Speaker, I yield 3 minutes to the gentleman 
from New York (Mr. Quinn), chairman of the Subcommittee on Railroads.
  Mr. QUINN. Mr. Speaker, I appreciate the gentleman from Alaska 
yielding time. I also want to begin by thanking the gentleman from 
Alaska (Mr. Young); the gentleman from Minnesota (Mr. Oberstar); and 
the gentleman from Tennessee (Mr. Clement), my partner on the 
Subcommittee on Railroads, for the work that has been done, 2 long 
years now. I also want to thank the gentleman from Texas (Mr. Sam 
Johnson) for his observations.
  We bring this bill forward, this afternoon, Mr. Speaker, in a real 
spirit of bipartisanship. A couple of our speakers have already 
mentioned that this is 2 years in the works. We have back and forth 
talked about the interests, particularly since the new administration 
has come into town, about not confusing this issue with Social 
Security. My esteemed colleague, the gentleman from Texas, suggests 
that we pick out the letter J in somebody's last name for Social 
Security. I would like to suggest that we use the letter J in 
somebody's first name, in my father's name who was a railroad worker 
for 35 years and in my grandfather's name when he came from Ireland and 
began to work on the railroad when he first came to America.
  I do not have a personal ax to grind in this discussion this 
afternoon, Mr. Speaker; but I can tell the gentleman from Texas, I can 
tell anybody else who wants to listen, that I know a little bit about 
railroaders and their families. We have not tried to structure this 
bill this afternoon to give anybody an unfair advantage. We have not 
structured it to give anybody an opportunity to take advantage of the 
Social Security fund. We are not talking, Mr. Speaker, about tier 1. We 
are talking only about tier 2 money. This is the workers' own money. 
This is their money.
  We have described it to our friends as we have talked on the 
subcommittee and we have had 380 to 400 cosponsors almost. It is like 
this commonsense approach, that if you have money in the bank and you 
decided to take it from the bank and put it in a mutual fund, you would 
not be spending that money on a car, you would not be depositing the 
money at the front doorstep of the bank, and you would not be raiding 
anybody else's money, such as the Social Security system.
  What we have tried to do in this bipartisan effort these last 2 years 
is to strike a balance. We would like to say that we can get rail labor 
and rail management together with retired workers on the railroads and 
their widows and widowers to say that we will let you do what you think 
is best with that portion of the money that does not affect Social 
Security. The provision reflects a commonsense approach that trading in 
a bank account for a retirement savings account is not the same as 
taking that money in the bank account and spending it on a car. It is 
just not the same.
  I want to thank the Members that have worked with us these past 2 
years, particularly in the last 3 or 4 months, and most particularly 
the last 24 hours, to get us through a discussion with the 
administration, with those people who disagree with some of the things 
that we have talked about, but disagree respectfully.
  Finally, I would like to thank the gentleman from Minnesota (Mr. 
Oberstar) and the gentleman from Tennessee (Mr. Clement) both for their 
efforts these long 2 years, particularly the last 4 or 5 months.
  I urge my colleagues to vote ``yes'' when they have an opportunity 
this afternoon.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume.
  I appreciate the comments the gentleman made, his father and previous 
people in his family. I love the railroaders. They are good guys. We 
ought to take care of them, but I do not think they ought to get extra 
dollars. The railroad trust fund gets roughly a $300 million subsidy 
from general revenues when income taxes on tier 2 private pension 
equivalent, which the gentleman is talking about, are returned to the 
trust fund rather than general revenue. No other Americans have the 
taxes on their pensions returned to their pension funds.
  The railroad retirement needed a $3.5 billion subsidy in 2000 from 
Social Security to stay afloat. I just find it hard to believe that you 
can say that you are looking out for them, and I hope you will, but to 
drop the age limit down to 60 when Social Security is up to 65 to 67, 
going to 67, it is hard to rationalize that.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Michigan (Mr. Smith).
  Mr. SMITH of Michigan. Mr. Speaker, there are a couple of concerns 
that I have about this legislation:
  One, it does mean absolutely that we are going to raid the Social 
Security and Medicare Trust Fund lockbox next year. So that is a real 
concern. Regardless of the kind of scoring, it is going to take the $15 
billion coming from someplace. And so that is real money and that comes 
out of the surplus because it is dollars that are going to be given to 
this fund.
  My second concern is that eventually, sometime, someplace, somewhere 
down the road we take the American taxpayer off the hook and say, Look, 
you're not going to be responsible for this private pension plan 
anymore.
  It dates back to 1934 when we started Social Security. At that time 
railroaders were put under the Social Security Act. Railroaders had 
already started a pretty good pension forum, and so they came to 
Congress with significant political influence, as they have today. They 
came to Congress and said, Look, we want you to allow us to have the 
equivalent of a Social Security deduction on our payroll, but we want 
to go into our own private account. So by 1937, the Congress changed 
the law and allowed them to have this sort of quasi-governmental 
retirement system.
  The other problem that I think is significant, by not taking the 
American taxpayer off the hook to bail out this system again, we are 
looking at a situation that by 2028, the revenues coming into the trust 
fund are going to be way below what is needed to meet the requirements 
of benefits. The simple bottom line fact is this bill increases 
benefits, it increases benefits to widowers, and says that you only 
have to be 60 years old now to receive full benefits if you put the 
required number of years in service.

[[Page 15239]]

  So we increase the benefits, where in Social Security instead of 60 
years old, you have got to go till 67 years old eventually down the 
road. That is the bill that we passed. So we are reducing the revenues 
contributed by railroad management, and we are increasing the benefits 
to retirees; and we are taking $15 billion out of our surplus money. 
That means we have got to go into the lockbox, and we are simply never 
taking the American taxpayer off the hook.
  So when these taxes are required to go up to 40 and 50 percent in the 
year 2028, what do you think is going to happen in terms of the 
railroaders coming back to Congress to say, Look, having that kind of a 
payroll tax is impossible?
  I would like to ask somebody sometime, why do we not consider taking 
the American taxpayer off the hook? Let me just give Members the 
statistics on what the gentleman from Texas was saying in terms of the 
Federal contribution. The railroad retirement system has spent more 
than it has collected in payroll taxes every year since 1957, an 
average of $4 billion a year they spend in benefits more than they take 
in in their payroll contribution towards that benefit plan. The 
cumulative shortfall now exceeds $90 billion. But because of taxpayer 
subsidies for this railroad fund, we end up with an accounting that in 
the trust fund is $20 billion, $15 billion of which we are going to 
take and say it is going to help solve the problems of the railroad 
retirement system.
  Everybody wants fairness for every pension plan. The question is, how 
often, how much should the American taxpayer be asked to fund this 
system? And so with interest it is the equivalent of $90 billion now 
and the $15 billion is going out of the lockbox of Social Security and 
Medicare.
  I think the challenge for us is certainly to assist the railroad 
retirees but not in the way that it is going to jeopardize the benefits 
of future Social Security recipients.
  Mr. OBERSTAR. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman 
from Tennessee (Mr. Clement), the ranking member of the Subcommittee on 
Railroads.
  Mr. CLEMENT. Mr. Speaker, I thank the gentleman from Minnesota for 
yielding me this time. I always refer to the gentleman from Minnesota 
(Mr. Oberstar), our leader on the Democratic side on the Committee on 
Transportation and Infrastructure, as our walking encyclopedia and 
historian, because I do not think there is anyone who knows more about 
the facts and the information than he does when it comes to some of 
these tough, controversial decisions.
  I want to also say to the gentleman from Alaska (Mr. Young), the 
gentleman is our new chairman of the Committee on Transportation and 
Infrastructure and is doing an outstanding job. He had many others 
prior to him. He has gotten off to a very, very good start, not only 
representing the great State of Alaska but our entire country. And to 
the gentleman from New York (Mr. Quinn), who is the chairman of the 
Subcommittee on Railroads, and I am the ranking Democrat, we are 
working together as partners. That is somewhat unusual in the U.S. 
House of Representatives for a Democrat and Republican to work so 
closely together for the common good of the people of this country. We 
have worked together and the Subcommittee on Railroads has been very 
active. This is a prime example of something that we worked on very 
hard, and we made up our mind very early that other Congresses had 
tried but not been able to move this legislation, and we want to move 
it.
  We know that a quarter of a million men and women work on America's 
railroads that will be affected by this legislation. There are 700,000 
retirees and survivors of retired railroad workers that will be 
affected by this legislation. H.R. 1140, the Railroad Retirement 
Improvement Act of 2001, what we are talking about tonight, is 
important legislation. I am pleased to be one of the original 
cosponsors. We have almost every Member of Congress that has signed on 
as a cosponsor.
  Every week in my office, railroad workers and retirees call me about 
the status of this bill. In my district, the Fifth District of 
Tennessee, there are 364 active railroad workers. My district includes 
1,226 beneficiaries of the railroad retirement system. This number 
includes retired employees, their spouses and survivors.
  This legislation is important. Let us pass it now and send it to the 
U.S. Senate where hopefully they will take action.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Connecticut (Mr. Shays).
  Mr. SHAYS. Mr. Speaker, I thank the gentleman for yielding time. I 
thank him for his courage and service to our country, and frankly his 
courage tonight. This is not a pleasant thing that the gentleman is 
having to do. He is having to basically oppose his friends. He is 
having to ask for time in opposition. He is doing it because I believe 
when he got elected to Congress, he wanted us to be honest with each 
other. I believe when he got elected to Congress, he wanted us to tell 
the truth.
  The truth is quite simple. Rail management and unions came to an 
agreement. It is a wonderful agreement. It is also bipartisan, 
Republicans and Democrats. It is a great plan: increase the benefits, 
reduce contributions to the fund, and have the taxpayers pay for it. 
What a system. Why would management oppose that?

                              {time}  1915

  The taxpayers pay. Why would the beneficiaries oppose? They will get 
increased benefits, and they will contribute less. It is a wonderful 
plan, so why are we not all for it? There are over 300 for it, and why 
would they not be for it? They are going to have everybody call them 
up, all their railroad workers, and we all have them, and they are 
saying increase my benefits, take care of my needs.
  So that is logical. Let us take care of their needs. It is just 
dishonest. It is blatantly dishonest. It is asking the taxpayers to pay 
for something that is, in fact, a private benefit.
  We are going to reduce the contributions to the fund, we are going to 
increase the benefits from the fund, and we are going to ask the 
taxpayers to pay for it, and we all should just fall in line, fall in 
step. There is a problem with that. The problem is, we have a 
responsibility to run the government. We have a moral obligation to run 
this government.
  We reduced taxes in this government. I did. I was happy to reduce 
taxes, because it seemed very clear to me why we should do it: if we 
leave the money on the table, it is going to be spent, and this is one 
of the great examples.
  We beat our chests and say how we are protecting the Social Security 
trust fund, but we are not, because right now we are going to raid it. 
And we say we are going to increase the age of retirement for 
beneficiaries from 65 to 67, but we are allowing railroad workers to 
retire at age 60 using Social Security trust fund money.
  Give me a break. I do not get it. I do not understand why we do it.
  I just thank the gentleman from Texas (Mr. Sam Johnson) for 
exhibiting the same kind of courage he exhibited when he was in 
Vietnam, to say this is wrong, we have got to stop it, and we should 
not do it. He was a hero for me for many years. I read his book, and I 
am just proud to be fighting the same cause.
  Mr. OBERSTAR. Mr. Speaker, I am pleased to yield 2 minutes to the 
distinguished gentleman from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy in 
sharing a few of these scarce moments with me.
  I join, first of all, in expressing my appreciation to the leadership 
of our committee that has focused on the health and future of America's 
railroads. The gentleman from Alaska (Chairman Young), the gentleman 
from Minnesota (Mr. Oberstar), the gentleman from Tennessee (Mr. 
Clement), the gentleman from New York (Mr. Quinn), I think are doing an 
outstanding job; and I am looking forward to working in the future with 
them.

[[Page 15240]]

  One of the important parts of their job is to modernize this pension 
program. It is not Social Security. If they were part of Social 
Security and had been for years, this would be a much different 
situation. This is independently funded. These people are paying now 
36.3 percent of total payroll into this. It is a significant tax on 
industry and these individuals.
  The proposal that has been worked out retains the individual 
contribution, and it is still is going to be 33 percent total 
investment. They are not pulling rabbits out of the hat. They are 
modernizing the system with a tier 2 benefits like you would any other 
modern pension program and diversifying the investment, moving beyond 
low-yield bonds.
  I think we are going to be able to hit the target and exceed the 
target. This is certainly more conservative than the assumptions that 
some people have used to justify voting for the Bush tax program, but 
that is a different issue.
  We have, I do think, an obligation to be honest; and I think we are 
doing a good job in terms of putting forward alternative sources of 
revenue, modernizing the rate of return, allowing industry to reinvest 
in badly needed infrastructure, being fair to almost 1 million 
participants, and bring this pension plan into the modern era.
  But, please, do not confuse this with Social Security. It took us up 
until a few minutes ago, and I do not know what the chair and ranking 
member did to convince OMB to understand that this is a separate 
program. They have done it. I am glad you could do it with OMB. I hope 
you will be as successful with some of the other programs.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield 1 minute to the gentleman 
from Nebraska (Mr. Terry).
  Mr. TERRY. Mr. Speaker, I thank the gentleman for yielding to speak 
on this important act for the 7500 retirees in my district.
  I rise in support of this act. Why? Because these reforms in this act 
allow the railroad workers to move to a pension system that, frankly, 
mirrors most in the industrial world, manufacturing, teachers, firemen. 
These reforms allow railroad workers to have some level of control over 
their money and their pensions, being able to direct them into safe 
investments and earn a greater return so they can pay them back with 
better benefits.
  Yes, government will continue to hold the majority of these dollars 
in the tier 1, the archaic system, but at least we inch forward to a 
modern system. These reforms allow for greater benefits for widows, who 
now receive 50 percent of their deceased spouse's benefit. I have heard 
from many widows in my district who have a great deal of difficulty 
making ends meet. This act will allow these widows a little bit more 
money and a lot of peace of mind.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I would like to point out that there are not a lot of 
other industries that have a retirement program such as this. The steel 
industry does not, and teachers and other people do not either. They 
pay into their own programs, but not into Social Security, for the most 
part. Social Security does not finance them.
  Let me make a point here that Social Security, according to the 
reform proposal that was handed out that goes with this bill and that 
has been occurring for a long time, tier 1 tax revenues are benefited 
by the Social Security benefit account. The Social Security benefit 
account also makes periodic transfers to tier 2, which is supported 
also by Social Security. So to say Social Security is not involved is a 
misnomer.
  The fact of the matter is, the gentleman from Connecticut (Mr. Shays) 
pointed out earlier that I have a military background, and I have to 
tell you, I am scared to death that we are neglecting our military. If 
we pass this thing, which is a $15 billion hit almost immediately, 
there is not going to be any money left for our military to survive. To 
me, that is what the Congress ought to be talking about, is protecting 
our Nation.
  I would like to add at this point that the Citizens for Sound Economy 
are urging a ``no'' vote on this bill, and they say, ``Perhaps the most 
troubling part of the bill is it pretends to pay for itself. The 
railroad retirement trust fund currently holds $15.3 billion in 
government bonds. H.R. 1140,'' that is the bill number, ``would cash 
them in and set up a new railroad retirement investment trust to invest 
the money in the stock market.''
  They are going to score this as a key vote. I thought Members should 
know that.
  Mr. Speaker, I yield 1 minute to the gentleman from Michigan (Mr. 
Smith).
  Mr. SMITH of Michigan. Mr. Speaker, they are having a real problem 
with railroad retirement, but almost every corporation and company that 
is in the United States, as people live longer, as our medical 
technology allows them to live longer, we end up having problems, 
whether it is Social Security or other pension plans. To say that the 
Federal Government should bail out this private pension plan I think is 
probably an unfair imposition on the rest of our taxpayers and on the 
Social Security system.
  Now, Social Security right now has three workers, we are down to 
three workers, for every one retiree. Thirty years ago we had 30 
workers financing every one retiree. Today there are three workers 
financing Social Security. Guess what it is in the railroad system? 
There is one worker trying to fund three railroad retirees, one worker 
in railroad trying to fund three retirees.
  Mr. Speaker, that is a huge burden, but, still, they have to run 
their own pension system. They cannot keep coming back to government. 
Again, $4 billion every year that they pay out in benefits more than 
they withhold in their taxes.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield 2 minutes to the 
gentleman from New York (Mr. Gilman).
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, I rise in strong support of H.R. 1140, the Railroad 
Retirement Survivors Improvement Act of 2001. I commend the gentleman 
from Alaska (Mr. Young) for proposing this important measure.
  This bill will bring much needed improvements to the 65-year-old 
railroad retirement program on which our Nation's retired railroad 
employees and families rely. The modernization of this program includes 
steps toward the increased privatization of the program's tier 2 
pension plan, which will be achieved through the establishment of a 
nonprofit Railroad Retirement Investment Trust which will oversee and 
invest the assets of the program's trust fund. The trust will be 
managed by a panel of trustees, who have been chosen by rail management 
and rail labor and that will give greater control of the program to the 
men and women who benefit from it.
  H.R. 1140 also contains a provision which will permit retired 
railroad employees to work in non-rail jobs with no penalties to their 
benefits. In addition, the bill also allows widows and widowers of 
retired rail workers to collect the full amount of their deceased 
spouses' pension.
  It is clear that this Roosevelt-era program is due for an appropriate 
restructuring that will reflect the current needs of our Nation's rail 
workers and their families. Accordingly, I urge my colleagues to fully 
support H.R. 1140.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield 1 minute to my good friend 
and new colleague, the gentleman from Pennsylvania (Mr. Shuster).
  Mr. SHUSTER. Mr. Speaker, I rise in strong support of H.R. 1140, the 
Railroad Retirement and Survivors Improvement Act. This landmark 
legislation will reform an antiquated retirement system, improve 
benefits for railroad retirees, increase benefits for approximately 
50,000 railroad retiree widows, and reduce taxes on railroad employees.
  Opponents of H.R. 1140 say the bill will have a first year cost of 
$15 billion and will reduce funds available for other important 
programs. The truth

[[Page 15241]]

is, truth in budgeting, and this bill should never have been scored the 
way it was. We restore truth in budgeting through this bill.
  H.R. 1140 has the support of both labor and industry management and 
deserves the overwhelming support of this House.
  This legislation is good for railroad families, it is good for 
America, and I urge the strong support for this legislation.
  Mr. OBERSTAR. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I listened with great interest to the gentleman from 
Connecticut who said, ``I don't get it.'' Well, the reason he does not 
get it is that he does not understand it.
  The fact is that only tier 2 benefits are affected by this 
legislation. You cannot get early retirement under Social Security as a 
railroad worker. You have got to wait until your time under the Social 
Security law. You get your retirement early under the tier 2 benefits 
for railroad workers under that ancient law that predates Social 
Security. We are just trying to update it.
  This is not a raid on the taxpayers, for heavens sakes. We are 
reducing the tax that the railroad companies pay into this system and 
the workers pay into their tier 2 benefits.
  So, we are trying to make it a little bit better. But it is not a 
raid on Social Security. They waited their time to get those benefits.
  Just read the law. When all else fails and you do not understand it, 
read the bill. And the bill is very clear, we are only dealing with 
railroad workers' benefits.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield 1 minute to the gentlewoman 
from West Virginia (Mrs. Capito), a member of the committee.
  Mrs. CAPITO. Mr. Speaker, I thank the gentleman from Alaska (Chairman 
Young) and the ranking member, the gentleman from Minnesota (Mr. 
Oberstar).
  Mr. Speaker, I rise quickly to express my support for the passage of 
H.R. 1140, the Railroad Retirement Survivors Improvement Act. As the 
title suggests, this bill aims to provide equitable and fitting 
compensation for those who have served and those who are currently 
serving the railroad industry.
  The move to modernize the railroad retirement trust fund is 
revolutionary, yet vital. With this bill, the railroad retirement trust 
fund will receive increased revenues for its beneficiaries through 
investment in a diversified portfolio.
  In my home State of West Virginia, almost 12,000 railroad employees, 
retirees, spouses, and widows have benefitted from this plan. In my 
district alone, 3,000 railroad beneficiaries would benefit from this. 
Many of these people have called my office over the past few months 
asking me to support this bipartisan effort. Widows of former rail 
workers have told me stories about the minimum benefits they receive, 
where they can barely pay their bills. Such stories should encourage us 
to act and act quickly.
  Over the past century, the hard work, long hours, and true dedication 
of many men and women have built an effective network of rail tracks 
around this country.
  Mr. Speaker, I urge this body to pass this legislation.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I would like to read from a letter from the U.S. 
Railroad Retirement Board, from a person who is a labor member there.

                              {time}  1930

  They ask, how do the average monthly railroad retirement and Social 
Security benefits paid to retired employees and their spouses compare?
  The average age annuity being paid by the Railroad Retirement Board 
at the end of 2000 to career railroad employees was $1,760 a month, and 
for all employees, the average was $1,300. The average age retirement 
benefit being paid by Social Security was about $800 a month, and 
spouse benefits averaged about $530.
  So the Railroad Retirement Act does not need fixing, it needs support 
monetarily, and guess where they are going to get it? They are going to 
get it from the Social Security Trust Fund.
  Mr. Speaker, I would like to just reiterate that the President's 
proposals under this bill are violated. The bill demands using Social 
Security funds to subsidize other benefits. The Federal Government, 
disguised as the investment trust, would invest in the private sector, 
and also the bill would prohibit personal retirement accounts for 
railroad employees. Every one of us should vote against this bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield myself such time as I may 
consume.
  I want to compliment everybody who has spoken tonight. I would just 
suggest again that this is tier 2; it is their money, they want to 
reinvest it. Yes, it is in government bonds, but it came from the 
workers. I thought this body was trying to set up a system where we did 
not take money from the workers to spend on other things. This is our 
retirement system. This is the railroad retirement system. It only 
affects tier 2.
  For those people who are not on the floor tonight, I urge people 
watching the show to vote for this legislation. Keep in mind, this had 
371 cosponsors. I expect 380 votes on this. It is the right thing to do 
for our railroads and our railroad workers.
  Mr. WELLER. Mr. Speaker, I rise in strong support of H.R. 1140, The 
Railroad Retirement and Survivors' Improvement Act of 2001.
  The Railroad Retirement and Survivors' Improvement Act of 2001 is 
historic legislation that will improve the lives of railroad workers 
and their spouses. I am proud to be a cosponsor with 367 of my 
colleagues of this important bill. H.R. 1140 guarantees a better 
standard of retirement for the nearly 3,500 retirees in the 11th 
Congressional District of Illinois which I represent and for all future 
retirees and their families.
  Under H.R. 1140, the quality of life for widows and widowers is 
significantly improved. Under current law, spouses are limited to one-
half of the deceased employee's Tier 2 benefits. However, under this 
legislation, the bill increases Tier 2 benefits for widows and widowers 
to 100 percent of the deceased employee's benefits on the date of 
death. Thus, widowers and widows will continue to receive the same 
benefits as their spouse received prior to death. Widows should not 
have to face a loss of income in addition to the death of a spouse. 
This bill ensures that is no longer a reality--widows will receive full 
benefits under this legislation.
  Additionally, H.R. 1140 reduces the years of covered service to be 
vested in the railroad retirement system from the present 10 years to 5 
years. Ten years is too long to wait to be vested in the railroad 
retirement system, and this legislation corrects this problem. Further, 
the retirement age is reduced from 62 to 60. By reducing this age, 
workers are given the opportunity to retire earlier without a 
corresponding loss of benefits.
  H.R. 1140 also fixes the cap on the ``maximum benefit.'' Present law 
limits the total amount of monthly railroad retirement benefits payable 
to an employee and an employee's spouse at the time the employee's 
annuity payout begins. The Railroad Retirement and Survivors' 
Improvement Act of 2000 removes this cap so that there is not a maximum 
benefit limit.
  Further, the legislation ensures the solvency of the Railroad 
Retirement Investment Trust. Through private investing, the trust fund 
will grow faster while decreasing taxes assessed on railroads. Seven 
private individuals will oversee the Railroad Retirement Investment 
Trust, thus ensuring any possible implication of a government role in 
investing is eliminated. Labor and rail management will each select 
three trustees to reflect their interests, and these six trustees will 
select the seventh trustee. Approximately one-quarter of all employees 
in the rail industry work for commuter and passenger rail, a growing 
industry. It is my sincere hope that the Trust include a representative 
from all three categories of rail service: commuter, passenger and 
freight from among those appointees designated for rail management.
  Mr. Speaker, this is good, important legislation that will help 
670,000 retirees and dependents and 245,000 active rail employees. I 
ask for all my colleagues to cast their vote in favor of H.R. 1140.
  Mr. RAHALL. Mr. Speaker, in the Third District of West Virginia, we 
have 8,300 citizens who will benefit from the Railroad Retirement and 
Survivors' Improvement Act of 2001. This

[[Page 15242]]

ranks southern West Virginia seventh in the nation.
  My constituents have been calling and writing to me on an ongoing 
basis, asking me when this bill will come to the House floor for a 
vote. Today I hope to be able to tell them it will pass in the House 
and we can send it on to the other body, where we hope it will get 
speedy consideration.
  I want to thank the Chairman and Ranking Member of the Transportation 
Committee, Mr. Young and Mr. Oberstar, for working to bring this bill 
to the floor with overwhelming bi-partisan support.
  I also want to thank the Chairman and Ranking Member of the Railroad 
Subcommittee, Mr. Quinn and Mr. Clement, for bringing this bill through 
the Subcommittee process quickly. And I want to thank the Ways and 
Means Committee for their cooperation.
  My constituents have been anxious to see this bill get enacted into 
law because it will double benefits for widows of railroad retirees, 
reduce the retirement age from 62 to 60 years of age with 30 years of 
service, and allow a person to be vested in the system after five years 
of service, rather than 10 years, as currently required.
  This bill includes the exact provisions of H.R. 4844, which I helped 
to write last year, and which passed the House by an overwhelming vote.
  My constituents were disappointed and frustrated last year when the 
bill was not enacted into law, especially since it is a product of two 
years of negotiation between railroad workers and management of the 
railroad industry. With 368 co-sponsors in the House, this bill has 
overwhelming bi-partisan support, once again.
  With 71 bi-partisan cosposnors in the Senate, I look forward to its 
passage on the Senate floor, and I ask President Bush to sign the bill 
into law expeditiously.
  Once this bill becomes law, it will enable railroad retirees and 
widows to enjoy a better quality of life, by receiving the increased 
benefits they worked for and deserve. They spent their working lives 
paying into their retirement and they deserve to reap good benefits.
  Mr. CRANE. Mr. Speaker, I rise, today, to discuss a specific issue 
regarding H.R. 1140, the Railroad Retirement and Survivors' Improvement 
Act of 2001, specifically, the representation of commuter rail on the 
Board of Trustees for the Railroad Retirement Investment Trust that is 
created by the bill. My district is served by Metra, the nation's 
second largest commuter rail system in the country. Last year, Metra 
provided nearly 82 million passenger trips--setting a 32-year ridership 
record. Over the years, Metra has received numerous awards and 
accolades for its outstanding service, and none of those would have 
been possible were it not for the hard work and dedication of its more 
than 2,500 employees.
  These 2,500 employees of Metra join their counterparts in other 
commuter and passenger rail systems around the country, and together 
they account for approximately one-quarter of all employees in the rail 
industry. This percentage of commuter and passenger rail employees is 
only expected to increase in the near future as customer demand for 
more commuter rail service grows. I have long-supported Metra and 
commuter rail, and I believe their unique interests deserve a voice on 
the Board of Trustees created in this legislation. Consequently, it is 
my hope that the Board of Trustees will include a representative from 
the ranks of commuter rail along with representatives from the other 
categories of rail service--passenger and freight. Such representation 
would ensure that commuter rail's interests are heard along with the 
interests of the other rail industry categories. This representation 
would be a substantial acknowledgement of the growing importance of 
commuter rail.
  Mr. ENGLISH. Mr. Speaker, this legislation represents the culmination 
of years of discussions between rail management and a sizable majority 
of rail labor.
  I am pleased to support the Railroad Retirement and Survivors' 
Improvement Act of 2001. This legislation is designed to improve 
significantly the financing and benefits of railroad retirement 
benefits.
  H.R. 1140 improves the performance of the Railroad Retirement Account 
(RRA) by enhancing employees benefits, reducing employer and employee 
tax rates, and promoting financial growth of the railroad retirement 
trust fund. More than 3,400 of my constituents in northwestern 
Pennsylvania will benefit from reforming the current railroad 
retirement system. In fact, many of those people have called my offices 
urging Congress to pass this legislation that represents benefit 
improvements for them and their families including:
  an expansion of widow(er)s' benefit by guaranteeing no less than the 
amount of the annuity that the retiree received;
  liberalized early retirement which allows retirement at age 60 with 
30 years of service without a benefit reduction; and
  expanded vesting which means bringing this requirement consistent 
with private industry practices. This entails the reductions of the 
ten-year requirement to vest for Tier I and Tier II annuities to five 
years.
  This is a strong proposal and I urge my colleagues to support it.
  Thank you Mr. Speaker. I yield back the balance of my time.
  Mr. CUMMINGS. Mr. Speaker, I urge my colleagues to vote in support of 
H.R. 1140, the Railroad Retirement and Survivors Improvement Act of 
2001.
  This legislation serves to modernize the current railroad retirement 
system and will benefit hundreds of thousands of retirees, and 
surviving widows and dependents. I believe that passage of this bill 
would bring us significantly closer to achieving retirement security 
for rail workers and retirees. Surviving spouses and dependents suffer 
substantial reductions in benefits upon the death of a railroad worker 
or retiree. This bill will provide a guaranteed minimum benefit for 
survivors. While benefiting survivors, H.R. 1140 will also benefit 
railroads by reducing payroll taxes.
  This is a good piece of legislation--it's good for workers, it's good 
for survivors, and it's good for the railroads. Following two years of 
negotiations between railroad management and rail labor we have a bill 
whose time has come.
  H.R. 1140 is essentially the same legislation that we overwhelmingly 
passed last year by a vote of 391 to 25. Let us be just as supportive 
this time around.
  I strongly urge my colleagues pass H.R. 1140.
  Mr. UDALL of New Mexico. Mr. Speaker, I strongly support H.R. 1140, 
the Railroad Retirement and Survivors' Improvements Act of 2001. This 
critical legislation makes important improvements in the benefit 
structure for retired railroad workers, especially for widows and 
widowers.
  After many railroad bankruptcies during the Depression, the 
government assumed responsibility for workers' pensions, financed with 
a special payroll tax paid by both rail concerns and their employees. 
The system is now $40 billion short of what would be required to pay 
benefits to all the workers who have yet to retire and their survivors.
  Congress has a responsibility to provide railroad retirees and their 
survivors with increased benefits, as well as making necessary changes 
to update and modernize the railroad employee benefit system.
  To that end, I urge my colleagues to join me in support of H.R. 1140. 
More than 670,000 retirees and dependents and 245,000 active rail 
employees will benefit from the improvements made by the Railroad 
Retirement and Survivors' Improvement Act of 2001. Please support our 
nation's railroad workers, rail retirees and spouses by supporting this 
critical reform package. Vote yes on H.R. 1140.
  Mr. REYES. Mr. Speaker, I rise today in strong support of the 
Railroad Retirement and Survivors' Improvement Act of 2001. This bill 
has almost 370 cosponsors and I urge my colleagues to vote in favor of 
this bill. This bill amends the Railroad Retirement Act of 1974 and 
increases benefits to railroad employees and their beneficiaries. In 
addition, this important legislation provides for full annuities to 
employees and their spouses at age 60 with 30 years of service. This 
bill also reduces the vesting requirement for railroad retirement 
benefits for employees and survivors from ten to five years of service. 
This legislation is fair and must be enacted into law.
  El Paso, Texas has a long history and association with the railroad. 
In fact, the original Arizona & Southwestern Railroad, built in 1888-
1889 by the Copper Queen Consolidated Mining Co., a subsidiary of 
Phelps Dodge Corporation, was built to transport copper from a smelter 
in Bisbee, Arizona to a refinery in El Paso, Texas. The railroad and 
its workers have always played an integral role in the fabric of our 
city.
  The Railroad Retirement and Survivors' Improvement Act of 2001 
recognizes the work that our rail workers perform in service of this 
country and takes into account their extremely physical work. Again, 
Mr. Speaker, there are almost 370 cosponsors of this legislation 
representing literally millions of people across the country. I urge my 
colleagues to vote in favor of this extremely important piece of 
legislation.
  Mr. PETRI. Mr. Speaker, with many railroad retirees amongst my 
constituents, I am pleased to rise in strong support of this 
legislation.
  Several years ago, as Chairman of the Surface Transportation 
Subcommittee, I became aware of the need to increase the retirement 
security of our nation's railroad workers. The members of the 
Transportation committee

[[Page 15243]]

worked hard to bring all the stakeholders together to work out a 
comprehensive plan to reform the railroad retirement system.
  I am quite pleased that this legislation represents the product of 
that work. By diversifying the investment vehicles for retirement 
accounts, this legislation improves retirement benefits and reduces 
taxes on railroad employers. This sensible legislation is supported by 
both railroad management and most labor unions.
  Last year, this House overwhelmingly passed similar legislation, but 
he Senate failed to act on it. Let's not make our railroad retirees and 
their families wait any longer for this needed reform. I urge my 
colleagues in both chambers to support quick passage and enactment of 
this legislation.
  Mr. YOUNG of Alaska. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore (Mr. Sununu). The question is on the motion 
offered by the gentleman from Alaska (Mr. Young) that the House suspend 
the rules and pass the bill, H.R. 1140, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. YOUNG of Alaska. Mr. Speaker, on that, I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 384, 
nays 33, not voting 16, as follows:

                             [Roll No. 305]

                               YEAS--384

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Allen
     Andrews
     Armey
     Baca
     Bachus
     Baird
     Baker
     Baldacci
     Baldwin
     Barcia
     Barr
     Barrett
     Bartlett
     Barton
     Bass
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop
     Blagojevich
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Brown (SC)
     Bryant
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Carson (IN)
     Carson (OK)
     Castle
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Conyers
     Cooksey
     Costello
     Coyne
     Crane
     Crenshaw
     Crowley
     Cubin
     Culberson
     Cummings
     Cunningham
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis, Jo Ann
     Davis, Tom
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Ferguson
     Filner
     Fletcher
     Foley
     Forbes
     Ford
     Fossella
     Frank
     Frost
     Gallegly
     Ganske
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Graham
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grucci
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hansen
     Harman
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hill
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Holden
     Holt
     Honda
     Hooley
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kerns
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Knollenberg
     Kucinich
     LaFalce
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Manzullo
     Mascara
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller, George
     Mink
     Mollohan
     Moore
     Moran (KS)
     Morella
     Murtha
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Platts
     Pombo
     Pomeroy
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers (KY)
     Rogers (MI)
     Ros-Lehtinen
     Ross
     Rothman
     Roukema
     Roybal-Allard
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Scarborough
     Schakowsky
     Schiff
     Schrock
     Scott
     Serrano
     Sessions
     Shaw
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simmons
     Simpson
     Skeen
     Skelton
     Slaughter
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spratt
     Stearns
     Strickland
     Stump
     Stupak
     Sweeney
     Tanner
     Tauscher
     Tauzin
     Taylor (NC)
     Terry
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tiberi
     Tierney
     Towns
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins (OK)
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NAYS--33

     Ballenger
     Chabot
     Cox
     DeLay
     DeMint
     Flake
     Frelinghuysen
     Hefley
     Herger
     Hoekstra
     Johnson, Sam
     Jones (NC)
     Kolbe
     Largent
     Miller (FL)
     Miller, Gary
     Myrick
     Paul
     Pence
     Pitts
     Rohrabacher
     Royce
     Schaffer
     Sensenbrenner
     Shadegg
     Shays
     Smith (MI)
     Stenholm
     Sununu
     Tancredo
     Taylor (MS)
     Thomas
     Weldon (FL)

                             NOT VOTING--16

     Cramer
     Hastings (FL)
     Hutchinson
     Hyde
     Jones (OH)
     Leach
     Lipinski
     Markey
     Moran (VA)
     Nadler
     Oxley
     Peterson (MN)
     Spence
     Stark
     Toomey
     Watson (CA)

                              {time}  1956

  Mr. THOMAS and Mr. TAYLOR of Mississippi changed their vote from 
``yea'' to ``nay.''
  Mr. BLUNT changed his vote from ``nay'' to ``yea.''
  So (two-thirds having voted in favor thereof) the rules were 
suspended and the bill, as amended, was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Ms. WATSON of California. Mr. Speaker, on rollcall No. 305, had I not 
been detained at a speaking event, I would have voted ``aye'' on 
rollcall No. 305.

                          ____________________