
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC358]

 
                           TITLE 45--RAILROADS
 
               CHAPTER 11--RAILROAD UNEMPLOYMENT INSURANCE
 
Sec. 358. Contributions


(a) Employer contribution

                           (1) In general

        (A) General rule

            (i) Contribution rate generally

                Every employer shall pay a contribution, with respect to 
            having employees in his service, equal to the percentage 
            determined under subparagraph (B), (C), or (D), whichever is 
            applicable, of so much of the compensation paid in any 
            calendar month by such employer to any employee as is not in 
            excess of the monthly compensation base for that month as 
            computed under section 351(i) of this title.
            (ii) Multiple employer limitation

                If compensation is paid to an employee by more than one 
            employer in any calendar month--
                    (I) the contributions required by this subsection 
                shall not apply to any amount of the aggregate 
                compensation paid to such employee by all such employers 
                in such calendar month which is in excess of such 
                monthly compensation base; and
                    (II) each employer (other than a subordinate unit of 
                a national-railway-labor-organization employer) shall be 
                liable for that portion of the contribution with respect 
                to such compensation paid by all such employers which 
                the compensation paid by him to such employee bears to 
                the total compensation paid in such month by all such 
                employers to such employee.

          In the event that the compensation paid by such employers to 
            the employee in such month is less than such monthly 
            compensation base, each subordinate unit of a national-
            railway-labor-organization employer shall be liable for such 
            portion of any additional contribution as the compensation 
            paid by such employer to such employee in such month bears 
            to the total compensation paid by all such employers to such 
            employee in such month.

        (B) Transitional rule

            (i) 1st, 2d, and 3d calendar years

                Except as provided in clause (vi), with respect to 
            compensation paid in calendar years 1988, 1989, and 1990, 
            the contribution rate shall be 8 percent.
            (ii) 4th calendar year

                With respect to compensation paid in calendar year 1991, 
            the contribution rate shall be the smaller of--
                    (I) the maximum contribution limit computed under 
                paragraph (20); or
                    (II) the percentage computed pursuant to the 
                following formula:




                                             2A+B
                                R=     <hbond><hbond><
                                           h<hbond>
                                              3


            (iii) 5th calendar year

                With respect to compensation paid in calendar year 1992, 
            the contribution rate shall be the smaller of--
                    (I) the maximum contribution limit computed under 
                paragraph (20); or
                    (II) the percentage computed pursuant to the 
                following formula:




                                             A+2C
                                R=     <hbond><hbond><
                                           h<hbond>
                                              3


            (iv) Meaning of symbols

                For purposes of the formulas in clauses (ii) and (iii)--
                    (I) ``R'' is the applicable contribution rate 
                expressed as a percentage for months in the calendar 
                year;
                    (II) ``A'' is the contribution rate determined under 
                clause (i);
                    (III) ``B'' is the percentage rate for the employer, 
                as determined under subparagraph (C), for calendar year 
                1991; and
                    (IV) ``C'' is the percentage rate for the employer, 
                as determined under subparagraph (C), for calendar year 
                1992.
            (v) Special rule for certain computations

                For purposes of computing B and C in such formulas--
                    (I) the percentage rate computed under subparagraph 
                (C), if more than the maximum contribution limit 
                computed under paragraph (20) shall not be reduced to 
                that limit; and
                    (II) any computations which under subparagraph (C) 
                are to be made on the basis of a 4-quarter or a 12-
                quarter period ending on a given June 30 shall be made 
                on the basis of a period beginning on January 1, 1990, 
                and ending on that June 30, and the amount so computed 
                shall be increased to an amount that bears the same 
                ratio to the amount so computed as 4 or 12, as 
                appropriate, bears to the number of calendar quarters in 
                the period on which the computation was based.
            (vi) Special transition rule for public commuter 
                    railroads

                With respect to each of calendar years 1989 and 1990, 
            the contribution of the National Railroad Passenger 
            Corporation and an employer which on November 10, 1988, is a 
            publicly funded and publicly operated carrier providing rail 
            commuter service shall be equal to the amount of benefits 
            attributable to such carrier, plus an amount equal to 0.65 
            percent of the total compensation paid by that employer in 
            that year on which that employer's contribution would be 
            based under clause (i) if such employer's contribution were 
            determined under that clause.

        (C) Experience-rated contributions

            With respect to compensation paid in a calendar year that 
        begins after December 31, 1992, the contribution rate for each 
        employer shall be determined as follows:
            (i) Step 1

                Compute the employer's benefit ratio as of the preceding 
            June 30 to 4 decimal points in accordance with paragraph 
            (2).
            (ii) Step 2

                Subtract the employer's reserve ratio as of the 
            preceding June 30 as computed to 4 decimal points in 
            accordance with paragraph (4).
            (iii) Step 3

                Subtract the pooled credit ratio for the calendar year, 
            if any, as computed to 4 decimal points in accordance with 
            paragraph (12).
            (iv) Step 4

                Multiply by 100 the total arrived at under the steps set 
            forth in clauses (i) through (iii) so as to obtain a 
            percentage rate, which shall be rounded to the nearest 100th 
            of 1 percent. If the total arrived at under such steps is 0 
            or less than 0, the percentage rate as so computed shall be 
            0.
            (v) Step 5

                Add 0.65 to the percentage rate arrived at under clause 
            (iv), representing the portion of the employer's 
            contribution which is to be deposited to the credit of the 
            fund under subsection (i) of this section.
            (vi) Step 6

                Add the surcharge rate for the calendar year, if any, as 
            computed under paragraph (14).
            (vii) Step 7

                Add the pooled charge ratio for the calendar year, if 
            any, as computed to 4 decimal points under paragraph (13) 
            and multiplied by 100.
            (viii) Step 8

                Reduce the precentage \1\ rate computed in accordance 
            with the preceding steps to the maximum contribution limit 
            computed under paragraph (20), if such rate is higher than 
            such limit. The rate computed in accordance with the 
            preceding steps, after any reduction under this clause, is 
            the contribution rate.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``percentage''.
---------------------------------------------------------------------------

        (D) New-employer contribution rates

            Notwithstanding subparagraphs (B) and (C), the contribution 
        rate applicable to a new employer who does not become subject to 
        this chapter until after December 31, 1989, shall be determined 
        as follows:
            (i) 1st calendar year

                With respect to compensation paid in calendar months 
            before the end of the first full calendar year in which the 
            employer is subject to this chapter, the contribution rate 
            shall be the average contribution rate paid by all employers 
            during the 3 calendar years preceding the calendar year 
            before the calendar year in which the compensation is paid. 
            The average contribution rate shall be determined--
                    (I) by dividing the aggregate contributions paid by 
                all employers under this subsection in those 3 calendar 
                years by the aggregate compensation with respect to 
                which such contributions were paid; and
                    (II) by multiplying the resulting ratio as computed 
                to 4 decimal points by 100.
            (ii) 2d calendar year

                With respect to compensation paid in calendar months in 
            the next calendar year, the contribution rate shall be the 
            smaller of--
                    (I) the maximum contribution limit computed under 
                paragraph (20); or
                    (II) the percentage rate computed pursuant to the 
                following formula:




                                                                2(A2)+B
                                                      R=  <3  <hbond><hbo  <3
                                                           -  n<hbond><hb   -
                                                                o<hbond>
                                                                   3


            (iii) 3d calendar year

                With respect to compensation paid in calendar months in 
            the third full calendar year in which the employer is 
            subject to the coverage of this chapter, the contribution 
            rate shall be the smaller of--
                    (I) the maximum contribution limit computed under 
                paragraph (20); or
                    (II) the percentage rate computed pursuant to the 
                following formula:




                                            A3+2C
                                R=     <hbond><hbond><
                                           h<hbond>
                                              3


            (iv) Subsequent calendar years

                With respect to all calendar months in calendar years 
            subsequent to that calendar year, the contribution rate 
            shall be determined under subparagraph (C).
            (v) Meaning of symbols

                For purposes of the formulas in clauses (ii) and (iii)--
                    (I) ``R'' is the applicable contribution rate 
                expressed as a percentage for months in the calendar 
                year;
                    (II) ``A1'' is the contribution rate determined 
                under clause (i) for such employer's first full calendar 
                year;
                    (III) ``A2'' is the contribution rate which would 
                have been determined under clause (i) if the employer's 
                second calendar year had been its first full calendar 
                year;
                    (IV) ``A3'' is the contribution rate which would 
                have been determined under clause (i) if the employer's 
                third calendar year had been such employer's first full 
                calendar year;
                    (V) ``B'' is the contribution rate for the employer 
                as determined under subparagraph (C) for the employer's 
                second full calendar year; and
                    (VI) ``C'' is the contribution rate for the employer 
                as determined under subparagraph (C) for the employer's 
                third full calendar year.
            (vi) Special rule for certain computations

                For purposes of computing B and C in such formulas--
                    (I) the percentage rate computed under subparagraph 
                (C), shall not be reduced under clause (viii) of that 
                subparagraph; and
                    (II) any computations which under subparagraph (C) 
                are to be made on the basis of a 4-quarter or 12-quarter 
                period ending on a given June 30 shall be made on the 
                basis of a period commencing with the first day of the 
                first calendar quarter that begins after the date on 
                which the employer first commenced paying compensation 
                subject to this chapter and ending on that June 30, and 
                the amount so computed shall be increased to an amount 
                that bears the same ratio to the amount so computed as 4 
                or 12, as appropriate, bears to the number of calendar 
                quarters in the period on which the computation was 
                based.

                          (2) Benefit ratio

        An employer's benefit ratio as of any given June 30 shall be 
    determined by dividing all benefits charged to the employer under 
    paragraph (15) during the 12 calendar quarters ending on such June 
    30 by the employer's 3-year compensation base as of such June 30 as 
    computed under paragraph (3).

                    (3) 3-year compensation base

        An employer's 3-year compensation base as of any given June 30 
    is the aggregate compensation with respect to which contributions 
    were paid by the employer under this subsection in the 12 calendar 
    quarters ending on such June 30.

                          (4) Reserve ratio

        An employer's reserve ratio as of any given June 30 shall be 
    computed by dividing the employer's reserve balance as of such June 
    30, as computed under paragraph (6), by that employer's 1-year 
    compensation base as of such June 30, as computed under paragraph 
    (5). The employer's reserve ratio may be either a positive or a 
    negative figure, depending upon whether the employer's reserve 
    balance is a positive or negative figure.

                    (5) 1-year compensation base

        An employer's 1-year compensation base as of any given June 30 
    is the aggregate compensation with respect to which contributions 
    were paid by the employer under this subsection in the 4 calendar 
    quarters ending on such June 30.

                         (6) Reserve balance

        An employer's reserve balance as of any given June 30 shall be 
    determined by subtracting the employer's cumulative benefit balance 
    as of such June 30, computed under paragraph (7), from the 
    employer's net cumulative contribution balance as of such June 30, 
    computed under paragraph (8). An employer's reserve balance may be 
    either positive or negative, depending upon whether or not that 
    employer's net cumulative contribution balance exceeds the 
    employer's cumulative benefit balance.

                   (7) Cumulative benefit balance

        An employer's cumulative benefit balance as of any given June 30 
    shall be determined by adding--
            (A) the net amount of the benefits charged to the employer 
        under paragraph (15) on or after January 1, 1990; and
            (B) the cumulative amount of the employer's unallocated 
        charges for the same period, if any, as computed under paragraph 
        (9).

               (8) Net cumulative contribution balance

        An employer's net cumulative contribution balance as of any 
    given June 30 shall be determined as follows:

        (A) Step 1

            Compute the sum of
                (i) all contributions paid by the employer pursuant to 
            this subsection;
                (ii) that portion of the tax imposed under section 
            3321(a) of title 26 that is attributable to the surtax rate 
            under section 516(b) of the Railroad Unemployment Insurance 
            and Retirement Improvement Act of 1988; \2\ and
---------------------------------------------------------------------------
    \2\ See References in Text note below.
---------------------------------------------------------------------------
                (iii) any taxes paid by the employer pursuant to section 
            3321(a) of title 26 (after the outstanding balance of loans 
            made under section 360(d) of this title before October 1, 
            1985, plus interest, have been paid);

        on or after January 1, 1990.

        (B) Step 2

            Subtract an amount equal to the amount of such contributions 
        deposited to the credit of the fund under subsection (i) of this 
        section.

        (C) Step 3

            Add an amount equal to the aggregate amount by which such 
        contributions were reduced in prior calendar years as a result 
        of pooled credits, if any, under paragraph (1)(C)(iii).

                       (9) Unallocated charge

        An employer's unallocated charge as of any given June 30 is the 
    amount that as of such June 30 bears the same ratio to the system 
    unallocated charge balance, computed under paragraph (10), as the 
    employer's 1-year compensation base, computed under paragraph (5), 
    bears to the system compensation base computed under paragraph (11).

               (10) System unallocated charge balance

        The system unallocated charge balance as of any given June 30 
    shall be determined as follows:

        (A) Step 1

            Compute the aggregate amount of all interest paid by the 
        account on loans from the Railroad Retirement Account after 
        September 30, 1985, pursuant to section 360(d) of this title, 
        during the 4 calendar quarters ending on that June 30.

        (B) Step 2

            Add the aggregate amount of any additions to the system 
        unallocated charge balance specified in paragraphs (15) and 
        (16), during that period.

        (C) Step 3

            Add the aggregate amount of any other expenditures by the 
        account during that period not chargeable to any individual 
        employer under paragraph (15) or to the fund under section 361 
        of this title.

        (D) Step 4

            Subtract the aggregate amount of all income to the account, 
        under section 360(a)(iv) of this title or section 360(a)(vii) of 
        this title, during that period.

        (E) Step 5

            Subtract the aggregate amount of all transfers to the 
        account, pursuant to section 361(d) of this title, during that 
        period.

        (F) Step 6

            Subtract the aggregate amount of all other income and 
        receipts of the account, during that period, which are not 
        assigned to individual employer balances.

        (G) Step 7

            Subtract the net cumulative contribution balance of each 
        employer whose balance has been cancelled pursuant to paragraph 
        (16), during that period, calculated as of the date of such 
        cancellation.

                    (11) System compensation base

        The system compensation base as of any given June 30 shall be 
    determined by adding together the amounts of the 1-year compensation 
    bases of all employers and employee representatives subject to this 
    chapter, computed in accordance with paragraph (5), as of such June 
    30.

                      (12) Pooled credit ratio

        The pooled credit ratio, if any, for a calendar year shall be 
    determined as follows:

        (A) Step 1

            Compute the balance to the credit of the account as of the 
        close of business on the preceding June 30, including any 
        amounts in the account attributable to loans made under section 
        360(d) of this title before October 1, 1985, but disregarding 
        the obligation to repay such loans and interest thereon. In 
        determining such balance as of June 30 of any year, so much of 
        the balance to the credit of the railroad unemployment insurance 
        administration fund as of the close of business on such date as 
        is in excess of $6,000,000 shall be deemed to be part of the 
        balance to the credit of such account. There will be a pooled 
        credit ratio for the calendar year only if that balance is in 
        excess of the greater of $250,000,000 or of the amount that 
        bears the same ratio to $250,000,000 as the system compensation 
        base as of that June 30 bears to the system compensation base as 
        of June 30, 1991, as computed in accordance with paragraph (11).

        (B) Step 2

            If there is such an excess amount, divide that excess amount 
        by the system compensation base as of the June 30 preceding the 
        calendar year. The result is the pooled credit ratio for the 
        calendar year.

                      (13) Pooled charge ratio

        The pooled charge ratio, if any, for a calendar year shall be 
    determined as follows:

        (A) Step 1

            With respect to each employer whose contribution rate for 
        that calendar year as computed through step 6 under paragraph 
        (1)(C) was greater than the maximum contribution limit computed 
        under paragraph (20), multiply the employer's 1-year 
        compensation base as of the preceding June 30, as computed in 
        accordance with paragraph (5), by the difference between--
                (i) the percentage rate determined under subparagraph 
            (B), (C), or (D) of paragraph (1) before the reduction to 
            the maximum contribution limit; and
                (ii) the maximum contribution limit.

        (B) Step 2

            Add the amounts arrived at under step 1 so as to obtain an 
        aggregate amount for all such employers.

        (C) Step 3

            For each employer whose contribution rate as computed 
        through step 3 under paragraph (1)(C) was less than 0, the 
        percentage rate by which such employer's rate was raised in 
        order to bring that rate to 0 shall be multiplied by that 
        employer's 1-year compensation base as of the preceding June 30. 
        Subtract the total of the amounts computed under the preceding 
        sentence for all employers from the amount arrived at in step 2.

        (D) Step 4

            Divide the aggregate amount arrived at under step 3 by the 
        system compensation base as of the preceding June 30 as computed 
        under paragraph (11) minus the one-year compensation base of 
        those employers whose rates computed through step 6 of paragraph 
        (1)(C) exceeded the maximum contribution rate computed under 
        paragraph (20). The result is the pooled charge ratio for the 
        calendar year.

                         (14) Surcharge rate

        The surcharge rate for a calendar year, if any, shall be 
    determined as follows:

        (A) Step 1

            Compute the balance to the credit of the account as of the 
        close of business on the preceding June 30, including any 
        amounts in the account attributable to loans made under section 
        360(d) of this title before October 1, 1985, but disregarding 
        the obligation to repay such loans and interest thereon. In 
        determining such balance as of June 30 of any year, so much of 
        the balance to the credit of the railroad unemployment insurance 
        administration fund as of the close of business on such date as 
        is in excess of $6,000,000 shall be deemed to be part of the 
        balance to the credit of such account. There will be a surcharge 
        rate for the calendar year only if that balance is less than the 
        greater of $100,000,000 or of the amount that bears the same 
        ratio to $100,000,000 as the system compensation base as of that 
        June 30 bears to the system compensation base as of June 30, 
        1991, as computed in accordance with paragraph (11).

        (B) Step 2

            (i) If the balance to the credit of the account is less than 
        the greater of the amounts referred to in the 2nd sentence of 
        step 1 but is equal to or more than the greater of $50,000,000 
        or of the amount that bears the same ratio to $50,000,000 as the 
        system compensation base as of that June 30 bears to the system 
        compensation base as of June 30, 1991, then the surcharge rate 
        for the calendar year shall be 1.5 percent.
            (ii) If the balance to the credit of the account is less 
        than the greater of the amounts referred to in the clause (i), 
        but greater than or equal to zero, then the surcharge rate for 
        the calendar year shall be 2.5 percent.
            (iii) If the balance to the credit of the account is less 
        than zero, the surcharge rate for the calendar year shall be 3.5 
        percent.

                      (15) Chargeable benefits

        (A) In general

            Beginning January 1, 1990, all benefits paid to an employee 
        for days of unemployment or days of sickness shall be charged to 
        that employee's base year employer by adding amounts equal to 
        the amounts of such benefits to the employer's cumulative 
        benefit balance except that benefits paid by reason of strikes 
        or work stoppages growing out of labor disputes shall not be 
        added to the employer's cumulative benefit balance but instead 
        shall be added to the system unallocated charge balance.

        (B) Adjustments

            A sum equal to each amount realized in recovery for 
        overpayment, erroneous payment, or reimbursement of benefits and 
        credited to the account pursuant to section 360(a)(v) or 
        360(a)(viii) of this title shall be subtracted from the 
        cumulative benefit balances of the employers of the employees to 
        whom such an amount was paid as a benefit in the proportion to 
        the amount by which each such employer's cumulative benefit 
        balance was increased as a result of the payment of the benefit.

        (C) Multiple employers

            (i) In general

                All benefits paid to an employee who had more than 1 
            base-year employer shall be charged to the cumulative 
            benefit balances of the employee's base year employers--
                    (I) in reverse chronological order of the employee's 
                employment with each such employer in the base year if 
                the employer at the time of the claim was the last base 
                year employer, and the amount charged to each employer 
                shall not exceed the compensation paid by that employer 
                to the employee in the base year; and
                    (II) in all other cases, in the same ratio as the 
                compensation paid to such employee by the employer bears 
                to the total of such compensation paid to such employees 
                by all such employers in the base year.
            (ii) Special rule for employer with cancelled 
                    balances

                All benefits chargeable under this subparagraph to an 
            employer for which the Board has cancelled balances under 
            paragraph (16) shall be added to the system unallocated 
            charge balance.

                        (16) Defunct employer

        Whenever the Board determines, pursuant to such regulations as 
    the Board may prescribe, that an employer has permanently ceased to 
    pay compensation with respect to which contributions are payable 
    pursuant to this subsection, the Board shall, effective on the date 
    of the Board's determination, transfer the employer's net cumulative 
    contribution balance as a subtraction from, and cumulative benefit 
    balance as an addition to, the system unallocated charge balance and 
    cancel all other accumulations of the employer.

                   (17) Individual employer record

        (A) In general

            As of January 1, 1990, the Board shall commence maintaining 
        an individual employer record with respect to each employer, and 
        the records necessary to determine pooled charges, pooled 
        credits and unallocated charge balances for the system. Whenever 
        a new employer begins paying compensation with respect to which 
        contributions are payable pursuant to this subsection, the Board 
        shall establish and maintain an individual employer record for 
        such employer.

        (B) Definition

            As used in this paragraph, the term ``individual employer 
        record'' means a record of an individual employer's benefit 
        ratio, reserve ratio, 1-year compensation base, 3-year 
        compensation base, unallocated charge, reserve balance, net 
        cumulative contribution balance, and cumulative benefit balance.

                     (18) Joint employer records

        Pursuant to regulations prescribed by the Board, the Board may 
    allow 2 or more employers, upon application, to establish and 
    maintain, or to discontinue, a joint individual employer record for 
    such employers as though such joint record constituted a single 
    employer's individual employer record.

     (19) Mergers, consolidations, or other changes in employer 
                                  identity

        (A) With other employers

            In the event of a merger, consolidation, unification, or 
        reorganization in which an employer combines with another 
        employer and the combination entails no partitioning of the 
        property of the employer, the individual employer records of the 
        2 employers shall be combined into a joint individual employer 
        record if the parties request such joint treatment pursuant to 
        paragraph (18) or if the Board otherwise determines, pursuant to 
        regulations prescribed by the Board, that such joint treatment 
        is desirable.

        (B) With nonemployers

            In the event of a merger, consolidation, unification, or 
        reorganization in which an employer combines with another entity 
        that is not an employer, the employer's individual employer 
        record shall attach to the combined entity.

        (C) Sale of assets

            In the event property of an employer is sold or transferred 
        to another employer or other entity, or is partitioned among 2 
        or more employers or entities, the cumulative benefit balance, 
        net cumulative contribution balance, 1-year compensation base, 
        and 3-year compensation base of the employer shall be prorated 
        among the employers which receive the property, including any 
        entities which become employers by virtue of such transfer or 
        partition, in such equitable manner as the Board by regulation 
        shall prescribe.

        (D) Reincorporation

            The cumulative benefit balance, net cumulative contribution 
        balance, 1-year compensation base, and 3-year compensation base 
        of an employer that reincorporates or otherwise alters its 
        corporate identity in a transaction not involving a merger, 
        consolidation, or unification shall attach to the reincorporated 
        or altered entity.

        (E) Abandonment

            If an employer abandons property or discontinues service but 
        continues to operate as an employer, the employer's individual 
        employer record shall continue to be calculated as provided in 
        this subsection without retroactive adjustment.

                   (20) Maximum contribution limit

        The maximum contribution limit with respect to a calendar year 
    is 12 percent, unless a 3.5 percent surcharge under paragraph (14) 
    is in effect with respect to that calendar year. If such a surcharge 
    is in effect the maximum contribution limit with respect to that 
    calendar year is 12.5 percent.

    (21) Special rules for certain computations under paragraph 
                                   (1)(C)

        (A) Any computation that is to be made under paragraph (1)(C) on 
    the basis of a 12-quarter period ending on a given June 30 shall be 
    made on the basis of a period--
            (i) beginning on the later of--
                (I) January 1, 1990;
                (II) the first day of the first calendar quarter that 
            begins after the date on which the employer first began to 
            pay compensation subject to this chapter; or
                (III) July 1 of the third calendar year preceding that 
            June 30; and

            (ii) ending on that June 30.

        (B) The amount computed under subparagraph (A) shall be 
    increased to an amount that bears the same ratio to the amount so 
    computed as 12 bears to the number of calendar quarters on which the 
    computation is based.

(b) Employee representative contribution

    Each employee representative shall pay a contribution with respect 
to so much of the compensation paid to him for services performed as an 
employee representative as is not in excess of the monthly compensation 
base computed in accordance with section 351(i) of this title, at a rate 
which shall be determined under subsection (a) of this section in the 
same manner and with the same effect as if the employee organization by 
which such employee representative is employed were an employer as 
defined in this chapter.

(c) Board proclamation of balance

                           (1) In general

        Not later than October 15, 1990, and October 15 of each year 
    thereafter the Board shall proclaim--
            (A) the balance to the credit of the account as of the 
        preceding June 30 for purposes of paragraphs (12) and (14) of 
        subsection (a) of this section;
            (B) the balance of any advances to the account under section 
        360(d) of this title after September 30, 1985, that has not been 
        repaid with interest as provided in such section as of September 
        30 of that year;
            (C) the system compensation base as of that June 30 as 
        computed in accordance with paragraph (11) of that subsection;
            (D) the system unallocated charge balance as of that June 
        30, as computed in accordance with paragraph (10) of that 
        subsection; and
            (E) the pooled credit ratio, the pooled charge ratio, and 
        the surcharge rate, if any, as determined under paragraph (12), 
        (13), or (14) of that subsection and applicable in the following 
        calendar year.

                      (2) Publication of notice

        As soon as is practicable after such proclamation, the Board 
    shall publish notice in the Federal Register of the amounts so 
    determined and proclaimed.

(d) Notifications by Board

    (1) Not later than the last day of any calendar quarter that begins 
after March 31, 1990, the Board shall notify each employer and employee 
representative of its net cumulative contribution balance and cumulative 
benefit balance as of the end of the preceding calendar quarter, as 
computed in accordance with paragraphs (7) and (8) of subsection (a) of 
this section as of the last day of such preceding calendar quarter 
rather than as of a given June 30 if such last day is not a June 30.
    (2) Not later than October 15, 1990, and October 15 of each year 
thereafter, the Board shall notify each employer and employee 
representative of its benefit ratio, reserve ratio, 1-year compensation 
base, 3-year compensation base, unallocated charge, and reserve balance 
as of the preceding June 30 as computed in accordance with paragraphs 
(2), (3), (4), (5), (6), and (9) of subsection (a) of this section, and 
of the contribution rate applicable to the employer or employee 
representative in the following calendar year as computed under 
paragraphs (1)(B), (C), or (D) of that subsection.

(e) Information to verify accuracy to be made available

    Notwithstanding any other provision of law, upon request by an 
employer or employee representative, the Board shall make available to 
such employer or employee representative any information available to 
the Board which may be necessary to verify the accuracy of a 
contribution rate determined by the Board to be applicable to such 
employer or employee representative, or of any component of that 
contribution rate including the accuracy of the employer's individual 
employer record, upon payment by such employer or employee 
representative to the Board of the cost incurred by the Board in making 
such information available. The amounts so paid to the Board shall be 
credited to and deposited in the fund.

(f) Fractional parts of a cent

    In the payment of any contribution under this chapter, a fractional 
part of a cent shall be disregarded unless it amounts to one-half cent 
or more, in which case it shall be increased to one cent.

(g) Adjustments for improper payments

    If more or less than the correct amount of the contribution required 
by this section is paid with respect to any compensation, then, under 
regulations prescribed under this chapter by the Board, proper 
adjustments with respect to the contribution shall be made, without 
interest, in connection with subsequent contribution payments made under 
this chapter by the same employer or employee representative.

(h) Refunding overpayment; collecting underpayment

    If more or less than the correct amount of the contribution required 
by this section is paid with respect to any compensation and the 
overpayment or underpayment of the contribution cannot be adjusted under 
subsection (d) of this section, the amount of the overpayment shall be 
refunded from the account, or the amount of the underpayment shall be 
collected, in such manner and at such times (subject to the statute of 
limitations properly applicable thereto) as may be prescribed by 
regulations of the Board.

(i) Collection and deposit of contributions

    The contributions required by this chapter shall be collected by the 
Board and shall be deposited by it with the Secretary of the Treasury of 
the United States, such part thereof as equals 0.65 per centum of the 
total compensation on which such contributions are based to be deposited 
to the credit of the fund and the balance to be deposited to the credit 
of the account.

(j) Time for payment; failure to pay promptly

    The contributions required by this chapter shall be collected and 
paid quarterly or at such other times and in such manner and under such 
conditions not inconsistent with this chapter as may be prescribed by 
regulations of the Board, and shall not be deducted, in whole or in 
part, from the compensation of employees in the employer's employ. If a 
contribution required by this chapter is not paid when due, there shall 
be added to the amount payable (except in the case of adjustments made 
in accordance with the provisions of this chapter) interest at the rate 
of 1 per centum per month or fraction of a month from the date the 
contribution became due until paid. Any interest collected pursuant to 
this subsection shall be credited to the account.

(k) Application of other laws; authority of Board

    All provisions of law, including penalties, applicable with respect 
to any tax imposed by the provisions of the Railroad Retirement Tax Act 
[26 U.S.C. 3201 et seq.], insofar as applicable and not inconsistent 
with the provisions of this chapter, shall be applicable with respect to 
the contributions required by this chapter: Provided, That all authority 
and functions conferred by or pursuant to such provisions upon any 
officer or employee of the United States, except the authority to 
institute and prosecute, and the function of instituting and 
prosecuting, criminal proceedings, shall, with respect to such 
contributions, be vested in and exercised by the Board or such officers 
and employees of the Board as it may designate therefor. The remedies 
available under the first sentence of this subsection for an employer or 
employee representative who contests the amount of contributions payable 
by him shall also apply with respect to a contention that the 
contribution rate determined by the Board under subsection (a) or (b) of 
this section to be applicable to such employer or employee 
representative is inaccurate or otherwise improper.

(June 25, 1938, ch. 680, Sec. 8, 52 Stat. 1102; July 31, 1946, ch. 709, 
Sec. 318, 60 Stat. 739; June 23, 1948, ch. 608, Secs. 4, 5(a), 6, 62 
Stat. 577, 578; Aug. 31, 1954, ch. 1164, pt. III, Secs. 305, 306, 68 
Stat. 1042; Pub. L. 85-927, pt. II, Sec. 203, Sept. 6, 1958, 72 Stat. 
1782; Pub. L. 86-28, pt. III, Secs. 306, 307, May 19, 1959, 73 Stat. 32; 
Pub. L. 88-133, title III, Secs. 303(a), 304, Oct. 5, 1963, 77 Stat. 
222, 223; Pub. L. 89-700, title II, Sec. 204, title III, Sec. 301(i), 
(ii), Oct. 30, 1966, 80 Stat. 1087, 1088; Pub. L. 94-92, title I, 
Sec. 1(g), (h), Aug. 9, 1975, 89 Stat. 463; Pub. L. 97-35, title XI, 
Sec. 1128(b), Aug. 13, 1981, 95 Stat. 641; Pub. L. 98-76, title V, 
Sec. 503(a), Aug. 12, 1983, 97 Stat. 440; Pub. L. 100-647, title VII, 
Secs. 7102(a)-(d), 7103(a), Nov. 10, 1988, 102 Stat. 3759-3770; Pub. L. 
101-322, Sec. 8(a), July 6, 1990, 104 Stat. 297.)

                       References in Text

    Section 516(b) of the Railroad Unemployment Insurance and Retirement 
Improvement Act of 1988, referred to in subsec. (a)(8)(A)(ii), probably 
means section 7106(b) of Pub. L. 100-647, title VII, Nov. 10, 1988, 102 
Stat. 3773, which is set out as a note under section 3321 of Title 26, 
Internal Revenue Code.
    The Railroad Retirement Tax Act, referred to in subsec. (k), is act 
Aug. 16, 1954, ch. 736, Secs. 3201, 3202, 3211, 3212, 3221, and 3231 to 
3233, 68A Stat. 431, as amended, which is classified generally to 
chapter 22 (Sec. 3201 et seq.) of Title 26. For complete classification 
of this Act to the Code, see section 3233 of Title 26 and Tables.


                               Amendments

    1990--Subsec. (a)(1)(B)(vi). Pub. L. 101-322 inserted ``the National 
Railroad Passenger Corporation and'' after ``the contribution of''.
    1988--Subsec. (a). Pub. L. 100-647, Sec. 7102(a), added subsec. (a) 
and struck out former subsec. (a) which consisted of two undesignated 
pars.
    Subsec. (b). Pub. L. 100-647, Sec. 7102(b), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``Each 
employee representative shall pay a contribution with respect to so much 
of the compensation paid to him for services performed as an employee 
representative during any month as is not, for any such calendar month, 
in excess of $600, at the rate applicable to employers in accordance 
with subsection (a) of this section. The compensation of an employee 
representative and the contribution with respect thereto shall be 
determined in the same manner and with the same effect as if the 
employee organization by which such employee representative is employed 
were an employer as defined in this chapter.''
    Subsecs. (c) to (g). Pub. L. 100-647, Sec. 7102(d), added subsecs. 
(c) to (e) and redesignated former subsecs. (c) to (g) as (f) to (j), 
respectively.
    Subsec. (h). Pub. L. 100-647, Sec. 7102(d)(1), redesignated former 
subsec. (e) as (h). Former subsec. (h) redesignated (k).
    Pub. L. 100-647, Sec. 7102(c), inserted at end ``The remedies 
available under the first sentence of this subsection for an employer or 
employee representative who contests the amount of contributions payable 
by him shall also apply with respect to a contention that the 
contribution rate determined by the Board under subsection (a) or (b) of 
this section to be applicable to such employer or employee 
representative is inaccurate or otherwise improper.''
    Subsec. (i). Pub. L. 100-647, Sec. 7103(a), substituted ``0.65'' for 
``0.5''.
    Pub. L. 100-647, Sec. 7102(d)(1), redesignated former subsec. (f) as 
(i).
    Subsecs. (j), (k). Pub. L. 100-647, Sec. 7102(d)(1), redesignated 
former subsecs. (g) and (h) as (j) and (k), respectively.
    1983--Subsec. (a). Pub. L. 98-79, Sec. 503(a)(1), amended provisions 
preceding table generally. Prior to amendment, such provisions read as 
follows: ``Every employer shall pay a contribution, with respect to 
having employees in his service, equal to the percentage determined as 
set forth below of so much of the compensation as is not in excess of 
$300 for any calendar month paid by him to any employee for services 
rendered to him after June 30, 1939, and before July 1, 1954, and is not 
in excess of $350 for any calendar month paid by him to any employee for 
services rendered to him after June 30, 1954, and before June 1, 1959, 
and is not in excess of $400 for any calendar month paid by him to any 
employee for services rendered to him after May 31, 1959: Provided, 
however, That if compensation is paid to an employee by more than one 
employer with respect to any such calendar month, the contributions 
required by this subsection shall apply to not more than $300 for any 
month before July 1, 1954, and to not more than $350 for any month after 
June 30, 1954, and before June 1, 1959, and to not more than $400 for 
any month after May 31, 1959, of the aggregate compensation paid to said 
employee by all said employers with respect to such calendar month, and 
each employer other than a subordinate unit of a national railway-labor-
organization employer shall be liable for that proportion of the 
contribution with respect to such compensation paid by all such 
employers which the compensation paid by him after December 31, 1946, to 
the employee for services during any calendar month after 1946 bears to 
the total compensation paid by all such employers after December 31, 
1946, to such employee for services rendered during such month; and in 
the event that the compensation so paid by such employers to the 
employee for services rendered during such month is less than $300 if 
such month is before July 1, 1954, or less than $350 if such month is 
after June 30, 1954, and before June 1, 1959, or less than $400 if such 
month is after May 31, 1959, each subordinate unit of a national 
railway-labor-organization employer shall be liable for such proportion 
of any additional contribution as the compensation paid by such employer 
after December 31, 1946, to such employee for services rendered during 
such month bears to the total compensation paid by all such employers 
after December 31, 1946, to such employee for services rendered during 
such month:
    ``1. With respect to compensation paid prior to January 1, 1948, the 
rate shall be 3 per centum;
    ``2. With respect to compensation paid after the month in which this 
chapter was amended in 1959, the rate shall be as follows:''.
    Subsec. (b). Pub. L. 98-76, Sec. 503(a)(2), struck out ``after 
December 1975'' after ``during any month'', and substituted ``$600'' for 
``$400''.
    1981--Subsec. (f). Pub. L. 97-35 substituted ``equals 0.5 per 
centum'' for ``equals 0.25 per centum''.
    1975--Subsec. (a). Pub. L. 94-92, Sec. 1(g), substituted table 
reading:




``$300,000,000 or more........................................     0.5
$200,000,000 or more but less than $300,000,000...............     4.0
$100,000,000 or more but less than $200,000,000...............     5.5
$50,000,000 or more but less than $100,000,000................     7.0
Less than $50,000,000.........................................     8.0''

for prior provisions reading:

``$450,000,000 or more........................................  1\1/2\
$400,000,000 or more but less than $450,000,000...............     2
$350,000,000 or more but less than $400,000,000...............  2\1/2\
$300,000,000 or more but less than $350,000,000...............     3
Less than $300,000,000........................................   4''



    Subsec. (b). Pub. L. 94-92, Sec. 1(h), substituted ``Each employee 
representative shall pay a contribution with respect to so much of the 
compensation paid to him for services performed as an employee 
representative during any month after December 1975 as is not, for any 
such calendar month, in excess of $400, at the rate applicable to 
employers in accordance with subsection (a) of this section.'' for 
``Each employee representative shall pay, with respect to his income, a 
contribution equal to 4 per centum of so much of the compensation of 
such employee representative as is not in excess of $300 for any 
calendar month, paid to him for services performed as an employee 
representative after June 30, 1939, and before July 1, 1954, and as is 
not in excess of $350 paid to him for services rendered as an employee 
representative in any calendar month after June 30, 1954, and before 
June 1, 1959, and as is not in excess of $400 paid to him for services 
rendered as an employee representative in any calendar month after May 
31, 1959.''
    1966--Subsec. (a). Pub. L. 89-700, Sec. 301(i), (ii), substituted 
``before June 1, 1959'' for ``before the calendar month next following 
the month in which this Act was amended in 1959'', and ``after May 31, 
1959'' for ``after the month in which this Act was so amended''.
    Subsec. (b). Pub. L. 89-700, Secs. 204(a), 301(i), (ii), increased 
contribution rate from 3\3/4\ per centum to 4 per centum, and 
substituted ``before June 1, 1959'' for ``before the calendar month next 
following the month in which this Act was amended in 1959'', and ``after 
May 31, 1959'' for ``after the month in which this Act was so amended''.
    Subsec. (h). Pub. L. 89-700, Sec. 204(b), substituted ``the 
provisions of the Railroad Retirement Tax Act'' for ``section 1800 or 
2700 of title 26, and the provisions of section 3661 of title 26''.
    1963--Subsec. (a). Pub. L. 88-133, Sec. 303(a), increased 
contribution rate in table from 3\3/4\ to 4 percent when balance to 
credit of railroad unemployment insurance account as of close of 
business on Sept. 30 of any year is less than $300,000,000.
    Subsec. (f). Pub. L. 88-133, Sec. 304, increased amount of 
contributions to be deposited to credit of fund from 0.2 per centum to 
0.25 per centum of total compensation on which such contributions are 
based.
    1959--Subsec. (a). Pub. L. 86-28, Sec. 306, increased earnings base 
from $350 to $400 per month for months after May 1959 for purposes of 
unemployment insurance contributions, and contribution rates with 
respect to compensation paid after May 1959 by 1 percent for each of the 
categories over $300,000,000, by 1\1/4\ percent when the balance was 
$250,000,000 or more but less than $300,000,000, and by \3/4\ of 1 
percent where the balance was less than $250,000,000.
    Subsec. (b). Pub. L. 86-28, Sec. 307, increased contribution rate 
from 3 to 3\3/4\ per centum and maximum amount of compensation for which 
contribution is payable from $350 to $400 for services rendered in any 
calendar month after May 1959.
    1958--Subsec. (a). Pub. L. 85-927 inserted provision deeming balance 
to credit of fund a part of balance to credit of account.
    1954--Subsecs. (a), (b). Act Aug. 31, 1954, increased earnings base 
from $300 to $350 per month after June 30, 1954 for purposes of 
unemployment insurance contributions.
    1948--Subsec. (a). Act June 23, 1948, Secs. 4, 5(a), substituted for 
flat 3 percent contribution rate a sliding scale under which tax rate is 
automatically adjusted in accordance with amount of reserves in 
unemployment insurance account as of close of business on Sept. 30 of 
each year.
    Subsec. (f). Act June 23, 1948, Sec. 6, changed rates of credits to 
account and fund.
    1946--Subsec. (a). Act July 31, 1946, Sec. 318(a), changed basis of 
contributions from compensation payable during a month to compensation 
paid during the month and inserted provisions relating to proration of 
contributions where one of the employers is a railway labor 
organization.
    Subsec. (h). Act July 31, 1946, Sec. 318(b), substituted references 
to sections of the Internal Revenue Code for references to the sections 
of the Internal Revenue Acts of 1926 and 1934 from which they were 
derived.


                    Effective Date of 1990 Amendment

    Section 8(b) of Pub. L. 101-322 provided that: ``The amendment made 
by subsection (a) [amending this section] shall be effective as of 
January 1, 1989.''


                    Effective Date of 1988 Amendment

    Section 7102(e) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section] shall take effect upon the 
date of the enactment of this Act [Nov. 10, 1988].''
    Section 7103(c) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section and sections 360 and 361 of 
this title] shall apply with respect to compensation paid in months 
beginning after September 30, 1988.''


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-76 applicable to compensation paid for 
services rendered after Dec. 31, 1983, see section 503(c) of Pub. L. 98-
76, set out as a note under section 351 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, and applicable 
only with respect to annuities awarded on or after that date, see 
section 1129 of Pub. L. 97-35, set out as a note under section 231 of 
this title.


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 94-92 effective with respect to compensation 
paid for services rendered after Dec. 31, 1975, see section 2 of Pub. L. 
94-92, set out as a note under section 351 of this title.


                    Effective Date of 1963 Amendment

    Section 303(a) of Pub. L. 88-133 provided that the amendment made by 
that section is effective with respect to compensation paid after Dec. 
31, 1963.
    Section 304 of Pub. L. 88-133 provided that the amendment made by 
that section is effective with respect to contributions collected by the 
Railroad Retirement Board after Dec. 31, 1961.


                    Effective Date of 1959 Amendment

    Amendment by sections 306(4), (5) and 307(1) of Pub. L. 86-28 
effective first day of calendar month next following May 1959, and 
applicable only with respect to compensation paid for services rendered 
in calendar months after May 1959, see section 309 of Pub. L. 86-28, set 
out as a note under section 351 of this title.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-927 effective Sept. 6, 1958, except as 
otherwise indicated, see section 207(c) of Pub. L. 85-927, set out as a 
note under section 351 of this title.


                    Effective Date of 1954 Amendment

    Amendment by act Aug. 31, 1954, effective July 1, 1954, see section 
401 of act Aug. 31, 1954, set out as a note under section 351 of this 
title.


                    Effective Date of 1946 Amendment

    Amendment by act July 31, 1946, effective Jan. 1, 1947, see section 
402 of act July 31, 1946.


             Adjustment or Refund of Excessive Contributions

    Section 5(b) of act June 23, 1948, provided that: ``Contributions 
paid under subsection (a) of section 8 of the Railroad Unemployment 
Insurance Act, as amended [subsec. (a) of this section], prior to the 
enactment of the foregoing amendment thereof [June 23, 1948] which are 
in excess of those required by said subsection as so amended shall be 
subject to adjustment or refund in accordance with the provisions of 
subsections (d) and (e) of said section 8 [subsecs. (d) and (e) of this 
section].''


                            Cross References

    Provisions of this section effective notwithstanding the enactment 
of the Internal Revenue Code, see section 366a of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 352, 360, 404 of this title; 
title 26 sections 51, 3322; title 49 section 24104.
