26 U.S. Code § 3241 - Determination of tier 2 tax rate based on average account benefits ratio

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(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

Average account benefits ratio At least But less than Applicable percentage for sections 3211(b) and 3221(b) Applicable percentage for section 3201(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.


(Added Pub. L. 107–90, title II, § 204(d),Dec. 21, 2001, 115 Stat. 892.)
Effective Date

Subchapter applicable to calendar years beginning after Dec. 31, 2001, see section 204(f) ofPub. L. 107–90, set out as an Effective and Termination Dates of 2001 Amendments note under section 24 of this title.

The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

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26 USCDescription of ChangeSession YearPublic LawStatutes at Large


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