
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 711(b)(3)]
[Document affected by Public Law 107-107 Section 711(e)(1)]
[CITE: 10USC1115]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
CHAPTER 56--DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
                                  FUND
 
Sec. 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 uniformed services performed before 
October 1, 2002. That amount is the original unfunded liability of the 
Fund. The Board shall determine the period of time over which the 
original unfunded liability should be liquidated and shall determine an 
amortization schedule for the liquidation of such liability over that 
period. Contributions to the Fund for the liquidation of the original 
unfunded liability in accordance with such schedule shall be made as 
provided in section 1116(b) of this title.
    (b)(1) The Secretary of Defense shall determine each year, in 
sufficient time for inclusion in budget requests for the following 
fiscal year, the total amount of Department of Defense contributions to 
be made to the Fund during that fiscal year under section 1116(a) of 
this title. That amount shall be the sum of the following:
        (A) The product of--
            (i) the current estimate of the value of the single level 
        dollar amount to be determined under subsection (c)(1)(A) at the 
        time of the next actuarial valuation under subsection (c); and
            (ii) the expected average force strength during that fiscal 
        year for members of the uniformed services on active duty (other 
        than active duty for training) and full-time National Guard duty 
        (other than full-time National Guard duty for training only).

        (B) The product of--
            (i) the current estimate of the value of the single level 
        dollar amount to be determined under subsection (c)(1)(B) at the 
        time of the next actuarial valuation under subsection (c); and
            (ii) the expected average force strength during that fiscal 
        year for members of the Ready Reserve of the uniformed services 
        (other than members on full-time National Guard duty other than 
        for training) who are not otherwise described in subparagraph 
        (A)(ii).

    (2) The amount determined under paragraph (1) for any fiscal year is 
the amount needed to be appropriated to the Department of Defense for 
that fiscal year for payments to be made to the Fund during that year 
under section 1116(a) of this title. The President shall include not 
less than the full amount so determined in the budget transmitted to 
Congress for that fiscal year under section 1105 of title 31. The 
President may comment and make recommendations concerning any such 
amount.
    (c)(1) Not less often than every four years, the Secretary of 
Defense shall carry out an actuarial 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 uniformed 
    services on active duty (other than active duty for training) or 
    full-time National Guard duty (other than full-time National Guard 
    duty for training only); and
        (B) a determination (using the aggregate entry-age normal cost 
    method) of a single level dollar amount for members of the Ready 
    Reserve of the uniformed services and other than members on full-
    time National Guard duty other than for training) \1\ who are not 
    otherwise described by subparagraph (A).
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    \1\ So in original. There is no corresponding opening parenthesis.

Such single level dollar amounts shall be used for the purposes of 
subsection (b) and section 1116(a) of this title.
    (2) If at the time of any such valuation there has been a change in 
benefits under the Department of Defense retiree health care programs 
for medicare-eligible beneficiaries that has been made since the last 
such valuation and such change in benefits increases or decreases the 
present value of amounts payable from the Fund, the Secretary of Defense 
shall determine an amortization methodology and schedule for the 
amortization of the cumulative unfunded liability (or actuarial gain to 
the Fund) created by such change and any previous such changes so that 
the present value of the sum of the amortization payments (or reductions 
in payments that would otherwise be made) equals the cumulative increase 
(or decrease) in the present value of such amounts.
    (3) If at the time of any such valuation the Secretary of Defense 
determines that, based upon changes in actuarial assumptions since the 
last valuation, there has been an actuarial gain or loss to the Fund, 
the Secretary shall determine an amortization methodology and schedule 
for the amortization of the cumulative gain or loss to the Fund created 
by such change in assumptions and any previous such changes in 
assumptions through an increase or decrease in the payments that would 
otherwise be made to the Fund.
    (4) If at the time of any such valuation the Secretary of Defense 
determines that, based upon the Fund's actuarial experience (other than 
resulting from changes in benefits or actuarial assumptions) since the 
last valuation, there has been an actuarial gain or loss to the Fund, 
the Secretary shall determine an amortization methodology and schedule 
for the amortization of the cumulative gain or loss to the Fund created 
by such actuarial experience and any previous actuarial experience 
through an increase or decrease in the payments that would otherwise be 
made to the Fund.
    (5) Contributions to the Fund in accordance with amortization 
schedules under paragraphs (2), (3), and (4) shall be made as provided 
in section 1116(b) of this title.
    (d) All determinations under this section shall be made using 
methods and assumptions approved by the Board of Actuaries (including 
assumptions of interest rates and medical inflation) and in accordance 
with generally accepted actuarial principles and practices.
    (e) The Secretary of Defense shall provide for the keeping of such 
records as are necessary for determining the actuarial status of the 
Fund.

(Added Pub. L. 106-398, Sec. 1 [[div. A], title VII, Sec. 713(a)(1)], 
Oct. 30, 2000, 114 Stat. 1654, 1654A-181.)


                             Effective Date

    Pub. L. 106-398, Sec. 1 [[div. A], title VII, Sec. 713(b)(2)], Oct. 
30, 2000, 114 Stat. 1654, 1654A-184, provided that: ``Section 1115 of 
such title (as added by such subsection) shall take effect on October 1, 
2001.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1114, 1116 of this title.
