year: 1,186,305 1,246,875 1,277,175 91.341 93.870 99,000 4,350 3,184 6,054 -93,870 -99,000 -102,000 -3,184 -6,054 -6,054 1,184,942 1,238,875 Balance of fund at end of year.. 3,915,705 4,089,408 4,396,434 100,208 99,000 102,000 4,015,913 4,188,408 4,498,434 Total annual income.. Cash outgo during year: Benefit payments and claims... Authorized program.. Proposed increase in limitation for separate transmittal.. Loans to Railroad unemployment insurance account_ Payment to Federal hospital insurance trust fund............. Total annual outgo.......... 435,638 445,000 520,000 23,615 25,000 27,000 1,341,859 1,412,220 1,584,201 2 72 Obligated balance, start of year: Treasury balance.. U.S. securities (par).... 74 Obligated balance, end of 90 Treasury balance__ U.S. securities (par). Expenditures... Income. The income of the Railroad retirement account consists of taxes paid by railroad employers and employees; interest on investments; appropriations for 1,274,175 military service credits; repayments on amounts loaned to the Railroad unemployment insurance account; payments from the Federal old-age and survivors insurance trust fund and Federal disability insurance trust fund. The railroad retirement system has a reinsurance arrangement of annual financial interchanges with the social security system so as to place these systems in the same position in which they would have been if railroad employment had been included in social security coverage. Under the railroad retirement system, railroad workers and employers pay taxes on wages to finance the payment of annuities for age and disability and benefits for survivors and to finance the cost of hospital insurance benefits established by the 1965 amendments to the Social Security Act. These taxes are deposited in this trust fund and invested in Government securities bearing interest of at least 3%. The 1965 amendments to the Railroad Retirement Act increased the amount of compensation subject to this tax from $450 to $550 per month, decreased the tax rate of 8.125% in effect for the first 9 months of calendar year 1965 to 7.125% for the last 3 months of the year, which is payable by both employers and employees, and then provide for increases in the tax rate to 7.95% for 1966 and 8.4% for 1967. The portion of these taxes which finances hospital insurance benefits is transferred to the Federal hospital insurance trust fund under the financial interchange provisions governing the railroad retirement and social security systems. The 1965 amendments also provided increases in benefit rates for many railroad retirement beneficiaries. Retirement, disability, and survivor benefit payments.Payment estimates reflect the continuing growth in the beneficiary rolls and the increases in benefit rates provided by the 1965 amendments to the Railroad Retirement and Social Security Acts. Administrative expenses. Such expenses are subject to annual limitations in appropriation acts (see Limitation on salaries and expenses, Railroad Retirement Board in part II of the budget). Loan to Railroad unemployment insurance account.-The Railroad Unemployment Insurance Act provides that when the balance in the Railroad unemployment insurance account is insufficient to pay benefits due under that act, necessary amounts are to be borrowed from the Railroad retirement account. retirement account. When the balance in the Railroad unemployment insurance account permits, borrowed 200-100-66—————69 Includes capital outlay as follows: 1965, $7 thousand; 1966, $10 thousand; 1967. $10 thousand. The Board administers an unemployment and sickness insurance system and an employment service for unemployed railroad workers. The administrative expenses are financed through a permanent authorization of 0.25% of taxable payroll. As of each June 30, the unobligated balance in this fund in excess of $6 million is transferred to the Railroad unemployment insurance account in the unemployment trust fund (45 U.S.C. 361). [In thousands of dollars] 1. Maintenance of earnings accounts.-Insurance payments for unemployment, sickness, and maternity benefits are based on individual records of earnings and daily wage rates and the workload fluctuates according to such factors as level of employment and rate of turnover in the railroad industry. The costs are shared on a measured basis with the retirement program. Accounts posted were 982,000 in 1965 and are estimated at 980,000 in 1966 and 1967. 2. Processing of unemployment insurance claims.Workers' claims for unemployment compensation are filed locally and certified for payment through the headquarters offices. Regular unemployment claims were 979,000 in 1965 and are estimated to be 800,000 in 1966 and 1967. 3. Processing of sickness and maternity claims.-These claims are filed by mail and certified for payment through the headquarters offices of the Board. Sickness claims were 688,000 in 1965 and are estimated to be 660,000 in 1966 and 1967. 4. Claimant placement services.-The Board conducts an employment service for unemployment benefit claimants. This resulted in savings of benefit payments of approximately $4.8 million in 1965 as 22,400 placements were made. Placements are estimated at 22,000 in 1966 and 1967. 5. Administration. The costs of administration are shared between this and the retirement program on a measured basis. Object Classification (in thousands of dollars) 1965 actual 1966 1967 estimate estimate Identification code 32-50-8190-0-7-704 Program by activities: 10 Maintenance and operation of facilities (costs-obligations) (object class 25.1). 15 -8 8 8 8 Relation of obligations to expenditures: 71 Total obligations (affecting expenditures) __| 90 Expenditures. 11 = 20 2120 This fund, established under 26 U.S.C. 7448, is used to pay survivorship benefits to eligible widows and dependent children of deceased judges of the Tax Court of the United States. Participating judges pay into the fund 3% of their salaries or retired pay to cover creditable service for which payment is required and such additional funds as are needed are provided through the annual appropriation to the Tax Court of the United States. On June 30, 1965, eight judges of the court were partici15 pating in the fund, and two eligible widows were receiving survivorship annuity payments. 1. U.S. dollars advanced from foreign governments.These funds are advanced from foreign governments and private organizations for purchase of films owned or controlled by the United States Information Agency (22 U.S.C. 1431 et. seq.) and for replacing damaged or destroyed U.S.I.A. property (22 U.S.C. 1479). 2. Contributions for trade fair and solo exhibits.-Contributions are received from non-Federal sources, primarily business concerns, for use at international exhibitions (70 Stat. 778). 3. Contributions for distribution of donated books.Contributions are received from non-Federal sources for the procurement and shipping of books to oversea missions for presentation to schools, libraries, reading rooms, and individuals (75 Stat. 527). Object Classification (in thousands of dollars) 6 |