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dies or (B) such parent remarries after the employee’s death,
whichever first occurs.
(9) No annuity shall accrue with respect to the calendar month
in which an annuitant dies. In cases where an individual entitled
to an annuity under this Act disappears, no annuity shall accrue
to that individual with respect to any month until and unless such
individual is shown, by evidence satisfactory to the Board, to have
continued in life throughout such month, but—
(A) where an annuity would accrue for such month under
section 2(a)(1) to an individual who had a current connection
with the railroad industry at the time of such individual’s disappearance, and under section 2(c) to such individual’s spouse,
had such individual been shown to be alive during such month,
such individual shall be deemed, for the purposes of benefits
under section 2(d), to have died in the month in which such individual disappeared, and where an annuity would accrue for
such month under section 2(a)(1) to an individual who did not
have a current connection with the railroad industry at the
time of such individual’s disappearance, and under section 2(c)
to such individual’s spouse, had such individual been shown to
be alive during such month, such individual shall be deemed,
for purposes of benefits payable under section 2(c), to be alive
during such month unless the death of such individual has
been established or the annuity of the spouse of such individual is otherwise terminated under subsection (c)(3) of this
section, and
(B) if such individual is later determined to have been
alive during any of such months, recovery of any benefits paid
on the basis of such individual’s compensation under section
2(d) for the months in which such individual was not known
to be alive, minus the total of the amounts that would have
been paid as a spouse’s annuity during such months (treating
the application for a widow’s or widower’s annuity as an application for a spouse’s annuity), shall be made in accordance
with section 10.
For purposes of the payment of benefits under this Act, the death
of an individual shall be presumed based on such individual’s unexplained absence of not less than seven years, except that whenever
the death of an individual is so established, such individual shall
be deemed to have died in the month in which such individual disappeared.
ø45 U.S.C. 231d¿
LUMP-SUM PAYMENTS

SEC. 6. (a)(1) Annuities under section 2(a)(1) and supplemental
annuities under section 2(b) which will have become due an individual but will not have been paid at the time of such individual’s
death shall be payable to the person, if any, who is determined by
the Board to be such individual’s widow or widower and to have
been living with such individual at the time of such individual’s
death and who will not have died before receiving payment of such
annuities. If there be no such widow or widower, such annuities
shall be payable to any person or persons, equitably entitled thereOctober 19, 2018

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to, to the extent and in the proportions that he or they shall have
paid the expenses of burial of such individual, and to the extent
that he or they will not have been reimbursed under subsection (b)
of this section for having paid such expenses. If there be no person
or persons so entitled, or if the total of such annuities exceeds the
amount payable under this subdivision to such person or persons,
such total, or the remainder thereof, as the case may be, shall be
paid to the children, grandchildren, parents, or brothers and sisters
of the deceased individual in the same manner as if such annuities
were a lump sum payable under subsection (c)(1) of this section.
(2) Annuities under section 2(d) which will have become due a
survivor of an employee but will not have been paid at the time of
such survivor’s death shall be payable to the person, if any, who
is determined by the Board to be such employee’s widow or widower and to have been living with such employee at the time of the
employee’s death and who will not have died before receiving payment of such annuities. If there be no such widow or widower, such
annuities shall be payable to the children, grandchildren, parents,
or brothers and sisters of the deceased employee in the same manner as if such unpaid annuities were a lump sum payable under
subsection (c)(1) of this section.
(3) Annuities under section 2(c) which will have become due a
spouse or divorced wife of an individual but which will not have
been paid at the time of such spouse’s or divorced wife’s death shall
be payable to the individual from whose employment such annuities derived and who will not have died before receiving payment
of such annuities. If there be no such individual, such annuities
shall be paid as provided in the last two sentences of subdivision
(1) of the subsection as if such annuities were annuities due to an
individual but unpaid at the time of such individual’s death.
(4) Applications for accrued and unpaid annuities provided for
in the preceeding subdivisions of this subsection shall be filed prior
to the expiration of two years after the death of the person to
whom such annuities were originally due.
(5) If there is no person to whom all or any part of the payments described in subdivision (1), (2), or (3) can be made, such
payment or part thereof shall escheat to the credit of the Railroad
Retirement Account.
(6) For the purposes of this subsection and subsection (c) of
this section, a widow or widower of an individual shall be deemed
to have been living with the individual at the time of the individual’s death if the applicable conditions set forth in section 216(h)
(2) or (3) of the Social Security Act, as in effect before 1957, are
fulfilled.
(7) In determining for purposes of this subsection and subsections (c) and (d) of this section whether an applicant is the
widow, widower, child, or parent of an employee as claimed, the
rules set forth in section 216(h) of the Social Security Act shall be
applied. In determining for purposes of this subsection and subsections (c) and (d) of this section whether an applicant is the
grandchild, brother, or sister of an employee as claimed, the Board
shall apply such law as would be applied in determining the devolution of intestate personal property by the courts of the State in
which such employee was domiciled at the time of his death, or if
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such employee was not so domiciled in any State, by the courts of
the District of Columbia. Applicants who according to such law
would have the same status relative to taking personal property as
a grandchild, brother, or sister shall be deemed such.
(b)(1) Upon the death of an individual who will have completed
ten years of service prior to January 1, 1975, and will have had a
current connection with the railroad industry at the time of his
death, a lump-sum payment shall be made in accordance with the
provisions of section 5(f)(1) of the Railroad Retirement Act of 1937
as in effect on December 31, 1974, in an amount, if any, which
would have been payable under such section 5(f)(1) on the basis of
(A) the individual’s compensation after December 31, 1936, and
prior to January 1, 1975, and (B) the individual’s wages (as defined
in section 209 of the Social Security Act) prior to January 1, 1975.
Any lump sum payable under this subdivision shall be in an
amount computed as if the individual had died on January 1, 1975.
No lump sum shall be payable under this subdivision if the employee died leaving a surviving divorced wife who would on proper
application therefore be entitled to receive an annuity under section 2(d) of this Act for the month in which the employee’s death
occurred.
(2) Upon the death of an individual who will not have completed ten years of service prior to January 1, 1975, but who (i) will
have completed ten years of service (or five or more years of service, all of which accrues after December 31, 1995) at the time of
his death (ii) will have had a current connection with the railroad
industry at the time of his death, and (iii) will have died leaving
no widow surviving divorced wife, widower, child, or parent who
would on proper application therefore be entitled to receive an annuity under section 2(d) of this Act for the month in which such
death occurred, a lump-sum death payment shall be made in accordance with the provisions of section 202(i) of the Social Security
Act in an amount equal to the amount which would have been payable under such section 202(i) if such individual’s service as an employee after December 31, 1936, were included in the term ‘‘employment’’ as defined in that Act. If a lump sum would be payable
to a widow or widower under this subdivision except for the fact
that a survivor will have been entitled to receive an annuity for the
month in which the individual will have died, but within one year
after the individual’s death there will not have accrued to survivors
of the individual, by reason of his death, annuities which, after all
deductions pursuant to sections 2(g) and 2(h) of this Act, are equal
to such lump sum, a payment equal to the amount by which such
lump sum exceeds such annuities so accrued after such deductions
shall then nevertheless be made under this subdivision to the
widow or widower to whom a lump sum would have been payable
under this subdivision except for the fact that a monthly benefit
under section 2(d) of this Act was payable for the month in which
the individual dies, if such widow or widower will not have died before receiving payment of such lump sum.
(c)(1) Whenever it shall appear, with respect to the death of an
employee, that no benefits, or no further benefits (other than benefits payable to a widow, widower, or parent under either this Act
or the Social Security Act upon attaining the age of eligibility
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therefor at a future date) will be payable under this Act or under
the Social Security Act, a lump sum in an amount computed under
subdivision (2) of this subsection shall be paid to such person or
persons as the deceased employee may have designated by a writing filed with the Board prior to his or her death, or if there be
no designation, to the following person (or, if more than one, in
equal shares to the persons) whose relationship to the decreased
employee will have been determined by the Board and who will not
have died before receiving payment of the lump sum provided for
in this subdivision—
(i) the widow or widower of the deceased employee who
was living with such employee at the time of such employee’s
death; or
(ii) if there be no such widow or widower, to any child or
children of such employee; or
(iii) if there be no such widow, widower, or child, to any
grandchild or grandchildren of such employee; or
(iv) if there be no such widow, widower, child, or grandchild, to any parent or parents of such employee; or
(v) if there be no such widow, widower, child, grandchild,
or parent, to any brother or sister of such employee; or
(vi) if there be no such widow, widower, child, grandchild,
parent, brother, or sister, to the estate of such employee:
Provided, however, That if the employee is survived by a widow,
widower, or parent who may upon attaining the age of eligibility
be entitled to benefits under this Act or under the Social Security
Act, such lump sum shall not be paid unless such widow, widower,
or parent makes and files with the Board an irrevocable election,
in such form as the Board may prescribe, to have such lump sum
be paid in lieu of all benefits to which such widow, widower, or parent might otherwise become entitled under this Act on the basis of
the deceased employee’s compensation and years of service or
under the Social Security Act on the basis of the decreased employee’s wages from (A) employment with an employer as defined in
section 1(a) of this Act or (B) service as an employee representative
as defined in section 1(c) of this Act. Any election made and filed
by a widow, widower, or parent pursuant to this subdivision shall
be legally effective according to its terms. After a lump sum with
respect to the death of an employee is paid pursuant to an election
filed with the Board under the provisions of this subsection, no further benefits shall be paid (other than to a survivor in the circumstances described in paragraph (3)) under this Act or the Social
Security Act on the basis of such employee’s compensation and
service under this Act, except that nothing in this Act or the Social
Security Act shall operate to deprive a widow, widower, or parent
making such election of any insurance benefit under title II of the
Social Security Act to which such individual would have been entitled if the employee had not rendered service as an employee under
this Act.
(2) The lump sum provided under subdivision (1) of this subsection shall be in an amount equal to (A) the sum of 4 per centum
of the deceased employee’s compensation paid after December 31,
1936, and prior to January 1, 1947, plus 7 per centum of such emOctober 19, 2018

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ployee’s compensation paid after December 31, 1946, and before
January 1, 1959, plus 71⁄2 per centum of such employee’s compensation paid after December 31, 1958, and before January 1,
1962, plus 8 per centum of such employee’s compensation paid
after December 31, 1961, and before January 1, 1966, plus an
amount equal to the total of all employee taxes payable by such
employee after December 31, 1965, and before January 1, 1975,
under the provisions of section 3201 of the Railroad Retirement
Tax Act (excluding, for this purpose, the amount of the employee
tax attributable to that portion of the tax rate derived from section
3101(b) of the Internal Revenue Code of 1954), plus one-half of 1
per centum of the compensation on which such taxes were payable,
deeming the compensation attributable to creditable military service after June 30, 1963, and before January 1, 1975, to be taxable
compensation, and one-half of the taxes payable by an employee
representative under section 3211 of the Railroad Retirement Tax
Act to be employee taxes under section 3201 of such Act, minus (B)
the sum of all benefits paid to such employee, and to others deriving from such employee, during his or her life, or to others by reason of his or her death, under this Act, the Railroad Retirement
Act of 1937, or the Social Security Act (excluding, for this purpose,
payments to providers of services under section 7(d) of this Act or
section 21 of the Railroad Retirement Act of 1937, any supplemental annuity payments made to the employee under section 2(b)
of this Act or section 3(j) of the Railroad Retirement Act of 1937,
any amounts by which that portion of the annuities provided the
employee under section 3(a) of this Act or his spouse or divorced
wife under section 4(a) of this Act were increased by reason of the
employee’s wages and self-employment income derived from employment and self-employment under the Social Security Act, that
portion of the annuities provided the employee under section 3(h)
of this Act or his spouse under section 4(e) of this Act, and so much
of the benefits paid to the employee and to others deriving from
him or her under the Social Security Act during his or her lifetime
as would have been payable under that Act if such employee had
not rendered service as an employee as defined in section 1(b) of
this Act). In computing compensation for purposes of this subdivision there shall be excluded compensation in excess of $300 for any
month before July 1, 1954; compensation in excess of $350 for any
month after June 30, 1954, and before June 1, 1959; compensation
in excess of $400 for any month after May 31, 1959, and before November 1, 1963; compensation in excess of $450 for any month
after October 31, 1963, and before October 1, 1965; and compensation in excess of (i) $450 or (ii) an amount equal to one-twelfth of
the current maximum annual taxable ‘‘wages’’ as defined in section
3121 of the Internal Revenue Code of 1954, which ever is greater,
for any month after September 30, 1965.
(3) Notwithstanding the last sentence of paragraph (1),
benefits shall be paid to a survivor who—
(A) is a divorced wife; and
(B) through administrative error received benefits otherwise precluded by the making of a lump sum payment
under this section to a widow;
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if that divorced wife makes an election to repay to the Board
the lump sum payment. The Board may withhold up to 10 percent of each benefit amount paid after the date of the enactment of this paragraph toward such reimbursement. The
Board may waive such repayment to the extent the Board determines it would cause an unjust financial hardship for the
beneficiary.
(d)(1) Every individual who will have completed ten years of
service at the time of his retirement or death, but does not meet
the qualifications for an annuity amount determined under the provisions of section 3(h)(1) or 3(h)(2) of this Act, shall, at the time his
annuity under section 2(a)(1) begins to accrue, be entitled to a
lump sum in the amount provided under subdivision (2) of this subsection. If an individual otherwise eligible for a lump sum under
this section dies before he becomes entitled to an annuity under
section 2(a)(1) of this Act, or before he receives payment of such
lump sum, such lump sum shall be payable to the person, if any,
who is determined by the Board to be such individual’s widow or
widower and who will not have died before receiving payment of
such lump sum. If there be no such widow or widower, such lump
sum shall be payable to the children, grandchildren, parents, brothers and sisters, or the estate of the deceased individual in the same
manner as if such lump sum were a lump sum payable under subsection (c)(1) of this section.
(2) The lump sum provided under subdivision (1) of this subsection shall be in an amount equal to the sum of (A) 1.5 per centum of so much of such individual’s combined earnings for any calendar year after 1950 and before 1954 as is in excess of $3,600,
plus (B) 2 per centum of so much of such individual’s combined
earnings for any calendar year after 1953 and before 1957 as is in
excess of $4,200 plus (C) 2.25 per centum of so much of such individual’s combined earnings for any calendar year after 1956 and
before 1959 as is in excess of $4,200 plus (D) 2.5 per centum of so
much of such individual’s combined earnings for the calendar year
1959 as is in excess of $4,800 plus (E) 3 per centum of so much
of such individual’s combined earnings for each of the calendar
years 1960 and 1961 as is in excess of $4,800, plus (F) 3.125 per
centum of so much of such individual’s combined earnings for the
calendar year 1962 as is in excess of $4,800, plus (G) 3.625 per centum of so much of such individual’s combined earnings for any calendar year after 1962 and before 1966 as is in excess of $5,400,
plus (H) 4.2 per centum of so much of such individual’s combined
earnings for the calendar year 1966 as is in excess of $6,600, plus
(I) 4.4 per centum of so much of such individual’s combined earnings for the calendar year 1967 as is in excess of $6,600, plus (J)
3.8 per centum of so much of such individual’s combined earnings
for the calendar year 1968 as is in excess of $7,800, plus (K) 4.2
per centum of so much of such individual’s combined earnings for
each of the calendar years 1969 and 1970 as is in excess of $7,800,
plus (L) 4.6 per centum of so much of such individual’s combined
earnings for the calendar year 1971 as is in excess of $7,800, plus
(M) 4.6 per centum of so much of such individual’s combined earnings for the calendar year 1972 as is in excess of $9,000, plus (N)
4.85 per centum of so much of such individual’s combined earnings
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for the calendar year 1973 as is in excess of $10,800, plus (O) 4.95
per centum of so much of such individual’s combined earnings for
the calendar year 1974 as is in excess of $13,200. For purposes of
this subsection, the term ‘‘combined earnings’’ shall include ‘‘compensation’’ as defined in section 1(h) of the Railroad Retirement Act
of 1937, ‘‘wages’’ as defined in section 209 of the Social Security
Act, and ‘‘self-employment’’ income as defined in section 211(b) of
the Social Security Act.
(e)(1) Every individual who will have completed ten years of
service (or five or more years of service, all of which accrues after
December 31, 1995) at the time of his retirement or death, who will
have received compensation in the nature of separation of severance pay on or after January 1, 1985, and who would have been
credited with additional months of service pursuant to section
3(i)(4) of this Act except for the fact that such individual was not
in an employment relation to one or more employers nor an employee representative in such months, shall, at the time his annuity under section 2(a)(1) of this Act begins to accrue, be entitled to
a lump sum in the amount provided under subdivision (2) of this
subsection. If the full amount of a lump sum under this subsection
cannot be determined at the time an individual’s annuity under
sectin 2(a)(1) begins to accure, such lump sum shall be payable at
such time thereafter as such amount can be determined. If an individual otherwise eligible for a lump sum under this section dies before he becomes entitled to an annuity under section 2(a)(1), or before he receives payment of such lump sum, such lump sum shall
be payable to the person, if any, who is determined by the Board
to be such individual’s widow or widower and who will not have
died before receiving payment of such lump sum. If there be no
such widow or widower, such lump sum shall be payable to the
children, grandchildren, parents, brothers and sisters, or the estate
of the deceased individual in the same manner as if such lump sum
were a lump sum payable under subsection (c)(1) of this section.
(2) The lump sum provided under subdivision (l) 14 of this subsection shall be in an amount equal to the product of (A) the compensation attributable to the additional months of service which
would have been credited to the individual due to the receipt of
payments in the nature of separation or severance pay pursuant to
section 3(i)(4) of this Act if such individual had remained in an employment relation to one or more employers or had continued to be
an employee representative and (B) the rate of tax, or rates of tax,
imposed on the compensation described in clause (A) of this subdivision by section 3201(b) of the Internal Revenue Code of 1986.
ø45 U.S.C. 231e¿
POWERS AND DUTIES OF THE BOARD

SEC. 7. (a) This Act shall be administered by the Railroad Retirement Board established by the Railroad Retirement Act of 1937
as an independent agency in the executive branch of the Government and composed of three members appointed by the President,
by and with the advice and consent of the Senate. Each member
14 So

in law. Probably should be subdivision ‘‘(1)’’.

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