§8909a — Title 5 Government Organization and Employees | U.S. Code

Summary

Creates a Postal Service Retiree Health Benefits Fund in the U.S. Treasury and gives the Office of Personnel Management (OPM) the job of running it. Money in the Fund may be used at any time to make the payments required under section 8906(g)(2)(A). The Treasury must invest money not needed for immediate payments in U.S. government interest-bearing securities, using the same approach as the Civil Service Retirement and Disability Fund (section 8348). By June 30, 2026, and each June 30 after that, OPM must check whether government contributions paid from the Fund under section 8906(g)(2)(A) were larger than the Fund’s estimated net claims costs for the covered enrollments. If there is an excess, the United States Postal Service must pay that excess into the Fund by September 30 of that year. When doing any calculation required under section 3654(b) of title 39, OPM must use the net present value of future net claims costs for current USPS annuitants and for current USPS employees who would be eligible for annuity and would meet annuitant coverage rules if retired as of September 30. OPM must use economic and actuarial methods like those used for the Postal surplus or supplemental liability (section 8348(h)), plus any other methods the OPM Director finds appropriate. After consulting the Postal Service, OPM will create any needed regulations. “Estimated net claims costs” means the carrier’s estimated health care costs (plus a fair share of indirect expenses) minus amounts withheld from or paid by annuitants under section 8906.

Title 5, §8909a

Government Organization and Employees — Source: USLM XML via OLRC

(a)There is in the Treasury of the United States a Postal Service Retiree Health Benefits Fund which is administered by the Office of Personnel Management.

(b)The Fund is available without fiscal year limitation for payments required under section 8906(g)(2)(A).

(c)The Secretary of the Treasury shall immediately invest, in interest-bearing securities of the United States such currently available portions of the Fund as are not immediately required for payments from the Fund. Such investments shall be made in the same manner as investments for the Civil Service Retirement and Disability Fund under section 8348.

(d)(1)Not later than June 30, 2026, and by June 30 of each succeeding year, the Office shall compute, for the most recently concluded fiscal year, the amount (if any) that Government contributions required to be paid from the Fund under section 8906(g)(2)(A) exceeded the estimated net claims costs under the enrollment of the individuals described in section 8906(g)(2)(A).

(2)Not later than September 30 of each year in which the Office makes a computation under paragraph (1), the United States Postal Service shall pay into the Fund the amount (if any) of the excess computed under such paragraph.

(e)Any computation required under section 3654(b) of title 39 shall be based on—

(1)the net present value of the future net claims costs with respect to—

(A)current annuitants of the United States Postal Service as of the end of the fiscal year ending on September 30 of the relevant reporting year; and

(B)current employees of the United States Postal Service who would, as of September 30 of that year—

(i)be eligible to become annuitants pursuant to section 8901(3)(A)(i) or (ii); and

(ii)if they were retired as of that date, meet the criteria for coverage of annuitants under section 8905(b);

(2)economic and actuarial methods and assumptions consistent with the methods and assumptions used in determining the Postal surplus or supplemental liability under section 8348(h); and

(3)any other methods and assumptions, including a health care cost trend rate, that the Director of the Office determines to be appropriate.

(f)After consultation with the United States Postal Service, the Office shall promulgate any regulations the Office determines necessary under this subsection.

(g)For purposes of this section, the term “estimated net claims costs” shall mean the difference between—

(1)the sum of—

(A)the estimated costs incurred by a carrier in providing health services to, paying for health services provided to, or reimbursing expenses for health services provided to, annuitants of the United States Postal Service and any other persons covered under the enrollment of such annuitants; and

(B)an amount of indirect expenses reasonably allocable to the provision, payment, or reimbursement described in subparagraph (A), as determined by the Office; and

(2)the amount withheld from the annuity of or paid by annuitants of the United States Postal Service under section 8906.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Pub. L. 117–108, § 102(b)(2), substituted “Benefits” for “Benefit” in section catchline. Subsecs. (d) to (g). Pub. L. 117–108, § 102(b)(1), added subsecs. (d) to (g) and struck out former subsec. (d) which related to various computations of net present value of future payments, payments into the Postal Retiree Health Benefits Fund, and promulgation of

Regulations

. 2011—Subsec. (d)(3)(A)(v). Pub. L. 112–74 substituted “

August 1, 2012” for “

October 4, 2011”. See below. Pub. L. 112–33 substituted “

October 4, 2011”, which is the date specified in section 106(3) of Pub. L. 112–33, for “

September 30, 2011”. 2009—Subsec. (d)(3)(A)(iii). Pub. L. 111–68 amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “$5,400,000,000, not later than

September 30, 2009;”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2009 Amendment Pub. L. 111–68, div. B, § 164(b), Oct. 1, 2009, 123 Stat. 2053, provided that: “The amendment made by subsection (a) [amending this section] shall take effect as if included in the enactment of section 803(a)(1)(B) of the Postal Accountability and Enhancement Act (Public Law 109–435; 120 Stat. 3251).”

Effective Date

Section effective Oct. 1, 2006, see section 805(a) of Pub. L. 109–435, set out as a

Effective Date

of 2006 Amendment note under section 8334 of this title. Application of Pub. L. 117–108 Pub. L. 117–108, title I, § 102(c), Apr. 6, 2022, 136 Stat. 1139, provided that: “(1) Cancellation of payments.—Any payment required from the Postal Service under section 8909a of title 5, United States Code, as in effect on the day before the date of enactment of this Act [Apr. 6, 2022] that remains unpaid as of such date of enactment is canceled. “(2) Effect of this act.—In any determination relating to the future liability for retiree health benefits of the United States Postal Service or the Postal Service Retiree Health Benefits Fund, the Office of Personnel Management shall take into account the actual and reasonably expected effects of this Act [see Tables for classification].” [For definition of “Postal Service” as used in section 102(c) of Pub. L. 117–108, set out above, see section 102 of Title 39, Postal Service, as made applicable by section 2(b) of Pub. L. 117–108, which is set out as a note under section 501 of Title 39.] Review by Postal Regulatory Commission Pub. L. 109–435, title VIII, § 803(b), Dec. 20, 2006, 120 Stat. 3252, provided that: “(1) In general.—“(A) Request for review.—Any regulation established under section 8909a(d)(5) of title 5, United States Code (as added by subsection (a)), shall, upon request of the United States Postal Service, be subject to a review by the Postal Regulatory Commission under this paragraph. “(B) Report.—Upon receiving a request under subparagraph (A), the Commission shall promptly procure the services of an actuary, who shall hold membership in the American Academy of Actuaries and shall be qualified in the evaluation of healthcare insurance obligations, to conduct a review in accordance with generally accepted actuarial practices and principles and to provide a report to the Commission containing the results of the review. The Commission, upon determining that the report satisfies the requirements of this paragraph, shall approve the report, with any comments it may choose to make, and submit it with any such comments to the Postal Service, the Office of Personnel Management, and Congress. “(2) Reconsideration.—Upon receiving the report under paragraph (1), the Office of Personnel Management shall reconsider its determination or redetermination in light of such report, and shall make any appropriate adjustments. The Office shall submit a report containing the results of its reconsideration to the Commission, the Postal Service, and Congress.”

§8909a Postal Service Retiree Health Benefits Fund

Summary

Title 5, §8909a

Notes & Related Subsidiaries

Editorial Notes

Amendments

Regulations

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata