§4071f Government contributions

Summary

Agencies that employ participants must pay money into the Fund. The amount is calculated like the method in section 8423(a) of title 5, using the normal-cost percentage the Secretary of State sets for the Foreign Service Pension System. At the end of each fiscal year after September 30, 1987, the Secretary of State will calculate any supplemental liability. That liability is paid in 30 equal yearly installments with interest at the rate from the System’s most recent valuation. Each year the Secretary of State tells the Treasury the installment amount, and before closing the books the Treasury credits that amount to the Fund from available funds. For any period beginning after December 31, 2013, the normal-cost percentage must be figured and used as if section 402(b) of the Bipartisan Budget Act of 2013 had never been passed. Any extra contributions caused by that rule must go to lower the Foreign Service Retirement and Disability System’s unfunded liability. Once the Secretary of State determines the unfunded liability is eliminated, future government contributions are made without using this special rule.