§12526 Premiums

Summary

The Secretary must set the insurance premium rates, after consulting the Board of Actuaries. There will be a fixed premium for each $1,000 of monthly insurance benefit. That premium must equal the share of cost for covering the member and must be the same for all Ready Reserve members with the same benefit. The Secretary will set the rate using the best available estimates of risk, financial exposure, how many members sign up, and other relevant factors. The premium a member pays in their first year must stay the same in later years. The Secretary, after consulting the Board of Actuaries, may change the rate to fund inflation-adjusted benefit increases only if the change is supported by sound actuarial calculations.