§1113 Payments From the Fund

Summary

Pay from the Fund must cover the costs of retiree health care programs for members or former members of a participating uniformed service who get retired or retainer pay and are Medicare‑eligible, and for their Medicare‑eligible dependents. The Fund’s assets are available to make those payments. The Secretary of Defense may move money from the Fund to Department of Defense or other agency appropriations when needed to pay those Medicare‑eligible retiree health care costs, including program administration. Money moved is combined with the appropriation and used for the same purpose and time period. If some moved money is later not needed, it can be moved back to the Fund. A transfer into or back from an appropriation cannot be made after the end of the second fiscal year after the fiscal year when that appropriation was available for obligation. The Secretary must set rules for how to calculate transfer amounts. Those rules can use a share of the health care volume used by Medicare‑eligible beneficiaries. The rules must be sent to the Comptroller General at least 60 days before they take effect, and the Comptroller General must report on them within 30 days. If the Secretary of Defense has an agreement to act for another uniformed service, the Secretary may do these transfers and follow these steps for that service too.