§3241 Determination of tier 2 tax rate based on average account benefits ratio

Summary

Sets the Tier 2 tax rate for each year by looking up a number in a table based on how big the retirement system’s assets are compared with what it paid out. The law uses an “average account benefits ratio,” which is the average of the last 10 fiscal years’ account benefits ratios. If that average is not a multiple of 0.1, it must be rounded up to the next 0.1. An “account benefits ratio” is the fair market value of the Railroad Retirement Account and the National Railroad Retirement Investment Trust (and, for years before 2002, the Social Security Equivalent Benefits Account) at the end of a fiscal year divided by the total benefits and administrative expenses paid from those accounts in that year. The Secretary must publish the tax rates that apply for the next calendar year in the Federal Register no later than December 1.