§12528 Reserve Mobilization Income Insurance Fund

Summary

Creates the Reserve Mobilization Income Insurance Fund in the Treasury and gives the Secretary of the Treasury responsibility for running it. Money put into the fund comes from premiums under section 12527, any appropriations, and returns on investments. The money in the fund must be used to pay insurance benefits. The Treasury must invest money not needed for current payments in public debt securities with maturities set to meet the fund’s needs (as decided by the Secretary of Defense) and interest rates set by the Treasury; investment income goes back into the fund. At the beginning of each fiscal year, the Secretary, working with the Board of Actuaries and the Secretary of the Treasury, must estimate for that year the expected premiums, investment earnings, and transfers or appropriations; the amount of any cumulative unfunded liability from benefit payments (including any negative amounts or gains); and the amount of any cumulative actuarial gain or loss (including negatives).