Thirteenth valuation of the railroad retirement system.

The most recent valuation of the financial condition of the railroad retirement system reveals that an existing actuarial deficiency will become more pronounced over time unless corrective action is taken. After projecting the progress of the fund under present law and certain assumptions about the future, the Railroad Retirement Board has concluded that the present value of benefits can be maintained only if the tax rate--already considerably higher for employers than under the social security program--is raised. An immediate increase of 4.1 percent of taxable payroll is required to effect an actuarial balance. Alternatively, a rise of 2.6 percent would be sufficient to prolong the fund until the year 2001. If the present tax rate is not changed, the fund is projected to run out in 1986.