§12529 Board of Actuaries

Summary

The Board of Actuaries must run the financial checks for the insurance program. It must do regular actuarial valuations and create a method for setting premium rates. The first valuation and rate method must be done no later than six months after the program starts. If benefit changes raise or lower the program’s present value, the Board must make a rate method and recommend a premium schedule to pay off that change. If assumptions or actual experience cause gains or losses, the Board must recommend how to spread that gain or loss into premiums. If liabilities exceed assets because Ready Reserve members are called to active duty (see section 12521(2)), the Secretary will ask the President to seek a special appropriation. If Congress does not provide money, the Secretary must cut benefit payments so payments do not exceed expected assets for the fiscal year; unpaid amounts are deferred until funds are available. The Board must define “present value.”