§12529 Board of Actuaries

Summary

The Board of Actuaries must handle the program’s actuarial work. It must do regular benefit valuations and set a method for figuring premium rates for the Secretary to use. The Board must do the first valuation and pick a premium method within six months after the program starts. If benefit changes raise or lower the present value of what the Fund owes, the Board must pick a method and recommend a premium schedule so the present value of the scheduled payments matches that change. If changes in assumptions or actual experience create a gain or loss, the Board must recommend a schedule to spread that gain or loss by changing payments. If liabilities exceed assets because Ready Reserve members are ordered to active duty (see section 12521(2)) and there is no money to pay benefits, the Secretary must ask the President to request a special appropriation from Congress. If Congress does not provide money in that fiscal year, the Secretary must cut benefit payments so total payments do not exceed the Fund’s assets expected by year end; unpaid amounts are deferred until funds become available. The Board must define the term “present value.”