§3241 Determination of Tier 2 Tax Rate Based on Average Account Benefits Ratio

Summary

Each year, the law picks the Tier 2 tax rate from a chart. The chart matches ranges of an "average account benefits ratio" to two different percentage rates used by certain tax rules. The Secretary must publish the chosen rates in the Federal Register by December 1 for the next calendar year. "Average account benefits ratio" means the 10-year average of yearly account benefits ratios, rounded up to the next 0.1. "Account benefits ratio" means, for a single fiscal year, 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) divided by the total benefits and administrative expenses those accounts paid that year.