Internal Revenue Code:Sec. 3241. Determination of tier 2 tax rate based on average account benefits ratio
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 22 - RAILROAD RETIREMENT TAX ACT
Subchapter E - Tier 2 Tax Rate Determination
Statute
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
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Average account benefits ratio
----------------
At least :But less than :Applicable :Applicable
: : percentage for: percentage for
: : sections : section
: : 3211(b) and : 3201(b)
: : 3221(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.
Sources
(Added Pub. L. 107-90, title II, Sec. 204(d), Dec. 21, 2001, 115
Stat. 892.)
Miscellaneous
EFFECTIVE DATE
Subchapter applicable to calendar years beginning after Dec. 31,
2001, see section 204(f) of Pub. L. 107-90, set out as an Effective
and Termination Dates of 2001 Amendments note under section 24 of
this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3201, 3211, 3221 of this
title; title 45 sections 231u, 231v.
