10 U.S.C. § 1114 — Board of Actuaries

Page 1175 TITLE 10—ARMED FORCES § 1115 EFFECTIVE DATE Pub. L. 106–398, § 1 [[div. A], title VII, § 713(b)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–184, provided that: ‘‘Sec- tions 1113 and 1116 of title 10, United States Code (as added by subsection (a)), shall take effect on October 1, 2002.’’ § 1114. Board of Actuaries (a)(1) There is established in the Department of Defense a Department of Defense Medicare- Eligible Retiree Health Care Board of Actuaries (hereinafter in this chapter referred to as the ‘‘Board’’). The Board shall consist of three mem- bers who shall be appointed by the Secretary of Defense from among qualified professional actu- aries who are members of the Society of Actu- aries. (2)(A) Except as provided in subparagraph (B), the members of the Board shall serve for a term of 15 years, except that a member of the Board appointed to fill a vacancy occurring before the end of the term for which his predecessor was appointed shall only serve until the end of such term. A member may serve after the end of his term until his successor has taken office. A member of the Board may be removed by the Secretary of Defense for misconduct or failure to perform functions vested in the Board, and for no other reason. (B) Of the members of the Board who are first appointed under this paragraph, one each shall be appointed for terms ending five, ten, and 15 years, respectively, after the date of appoint- ment, as designated by the Secretary of Defense at the time of appointment. (3) A member of the Board who is not other- wise an employee of the United States is enti- tled to receive pay at the daily equivalent of the annual rate of basic pay of the highest rate of basic pay under the General Schedule of sub- chapter III of chapter 53 of title 5, for each day the member is engaged in the performance of du- ties vested in the Board, and is entitled to travel expenses, including a per diem allowance, in ac- cordance with section 5703 of title 5. (b) The Board shall report to the Secretary of Defense annually on the actuarial status of the Fund and shall furnish its advice and opinion on matters referred to it by the Secretary. (c) The Board shall review valuations of the Fund under section 1115(c) of this title and shall report periodically, not less than once every four years, to the President and Congress on the status of the Fund. The Board shall include in such reports recommendations for such changes as in the Board’s judgment are necessary to pro- tect the public interest and maintain the Fund on a sound actuarial basis. (Added Pub. L. 106–398, § 1 [[div. A], title VII, § 713(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–180; amended Pub. L. 107–107, div. A, title X, § 1048(a)(12), Dec. 28, 2001, 115 Stat. 1223.) Editorial Notes AMENDMENTS 2001—Subsec. (a)(1). Pub. L. 107–107 substituted ‘‘here- inafter’’ for ‘‘hereafter’’. § 1115. Determination of contributions to the Fund (a) The Board shall determine the amount that is the present value (as of October 1, 2002) of future benefits payable from the Fund that are attributable to service in the participating uniformed services performed before October 1, 2002. That amount is the original unfunded li- ability of the Fund. The Board shall determine the period of time over which the original un- funded liability should be liquidated and shall determine an amortization schedule for the liq- uidation of such liability over that period. Con- tributions to the Fund for the liquidation of the original unfunded liability in accordance with such schedule shall be made as provided in sec- tion 1116 of this title. (b) The Secretary of Defense shall determine, before the beginning of each fiscal year after September 30, 2005, the total amount of the De- partment of Defense contribution to be made to the Fund for that fiscal year for purposes of sec- tion 1116(b)(2). That amount shall be the sum of the following: (1) The product of— (A) the current estimate of the value of the single level dollar amount to be deter- mined under subsection (c)(1)(A) at the time of the next actuarial valuation under sub- section (c); and (B) the expected average force strength during that fiscal year for members of the uniformed services under the jurisdiction of the Secretary of Defense on active duty and full-time National Guard duty, but exclud- ing any member who would be excluded for active-duty end strength purposes by section 115(i) of this title. (2) The product of— (A) the current estimate of the value of the single level dollar amount to be deter- mined under subsection (c)(1)(B) at the time of the next actuarial valuation under sub- section (c); and (B) the expected average force strength during that fiscal year for members of the Selected Reserve of the uniformed services under the jurisdiction of the Secretary of Defense who are not otherwise described in paragraph (1)(B). (c)(1) Not less often than every four years, the Secretary of Defense shall carry out an actu- arial valuation of the Fund. Each such actuarial valuation shall include— (A) a determination (using the aggregate entry-age normal cost method) of a single level dollar amount for members of the par- ticipating uniformed services on active duty and full-time National Guard duty, but exclud- ing any member who would be excluded for ac- tive-duty end strength purposes by section 115(i) of this title; and (B) a determination (using the aggregate entry-age normal cost method) of a single level dollar amount for members of the Se- lected Reserve of the participating uniformed services who are not otherwise described by subparagraph (A). Such single level dollar amounts shall be used for the purposes of subsection (b). The Secretary