PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3777

widower and who will not have died before receiving payment of
such lump sum. If there be no such widow or widower, such lump
sum shall be payable to the children, grandchildren, parents, broth-
ers and sisters, or the estate of the deceased individual in the same
manner as if such lump sum were a lump sum payable under
subsection (cXD of this section.

"(2) The lump sum provided under subdivision Q) of this subsec-
tion shall be in an amount equal to the product of (A) the compensa-
tion attributable to the additional months of service which would
have been credited to the individual due to the receipt of payments
in the nature of separation or severance pay pursuant to section
3(iX4) of this Act if such individual had remained in an employment
relation to one or more employers or had continued to be an
employee representative and (B) the rate of tax, or rates of tax,
imposed on the compensation described in clause (A) of this subdivi-
sion by section 3201(b) of the Internal Revenue Code of 1986.".

SEC 7302. DEIJETIONOFIASTFEESONSERVICEASADISQ1JAUFICATION.

(a) IN GENERAL.—Section 2(e) of the Railroad Retirement Act of
1974 is amended—

(1XA) in subdivision (1), by striking out "any person, whether
or not"; and

(B) by striking out "(but with the" and all that follows
through "political subdivision of a State";

(2) in subdivision (2), by striking out "and of the person, or
persons, by whom he was last employed"; and

(3) in subdivision (3), by striking out "or to the last person, or
persons, by whom he was employed prior to the date on which
the annuity under subsection (aXD began to accrue".

(b) DEDUCTION FOB WORK.—Section 2(£) of such Act is amended by
adding at the end thereof the following new subdivision:

"(6XA) Except as provided in subparagraph (B)—

"(i) that portion of the annuity for any month of an individual
as is computed under section 3(b) and as adjusted under section
3(g), plus any supplemental amount for such month under
section 3(e), and that portion of the annuity for any month of a
spouse as is computed under section 4(b) and as adjusted under
section 4(d), shall each be subject to a deduction of $1 for each $2
of compensation received by such individual from compensated
service rendered in such month to the last person, or persons, by
whom such individual was employed before the date on which
the annuity of such individual under subsection (aXD began to
accrue; and

"(ii) that portion of the annuity for any month of a spouse as
is computed under section 4(b) and as adjusted under section
4(d) shall be subject to a deduction of $1 for each $2 of com-
pensation received by such spouse from compensated service
rendered in such month to the last person, or persons, by whom
such spouse was employed before the date on which the annuity
of such spouse under subsection (cXl) began to accrue.
"(B) Any deductions imposed by this subdivision for any month

shall not exceed 50 percent of the annuity amount for such month to

which such deductions apply.".

(c) EFFECTIVE DATE.—The amendments made by this section shall
apply to annuities payable under the Railroad Retirement Act of
1974 for months beginning after the date of enactment of this Act

45 USC 231a.

45 USC 231a
note.