§12526 Premiums

Summary

The Secretary, after talking with the Board of Actuaries, must set the insurance premium rates. The Secretary will set one fixed premium amount for each $1,000 of monthly insurance benefit. That amount must equal the share of the cost to insure each member and must be the same for all Ready Reserve members who have the same benefit level. The rate must be based on the best available estimates of risk and financial exposure, how many members sign up, and other relevant factors. The premium a member pays in their first year stays the same in later years. The Secretary may change the rate only after consulting the Board of Actuaries and only to fund inflation-adjusted benefit increases in a financially sound way based on actuarial advice.