PRIA, Government Policy, Made Personal

Summary

The Director must figure out how much money the fund needs each year and must order actuarial studies as often as needed, but at least once every five years. If a law creates bigger or new benefits, adds new groups of employees, or raises pay used to figure benefits, that law is treated as approving money to cover the added unpaid cost. That extra cost is paid in 30 equal yearly installments with interest at the rate from the most recent valuation, and the first payment is due at the end of the fiscal year when the change takes effect. Congress may appropriate whatever is needed each year to cover the normal cost not paid by contributions under section 2021(a). Each year Congress may also appropriate money to pay interest on the unfunded liability (using the valuation interest rate) and the part of annuity payments the Director says is due to credit for military service, minus any amount the Director decides should be offset by deposits under section 2082(h).

Title 50, §2091

War and National Defense, Source: USLM XML via OLRC

(a)Estimates of annual appropriations

The Director shall prepare the estimates of the annual appropriations required to be made to the fund.

(b)Actuarial valuations

The Director shall cause to be made actuarial valuations of the fund at such intervals as the Director determines to be necessary, but not less often than every five years.

(c)Changes in law affecting actuarial status of fund

Any statute which authorizes—

(1)new or increased benefits payable from the fund under this subchapter, including annuity increases other than under section 2131 of this title;

(2)extension of the coverage of this subchapter to new groups of employees; or

(3)increases in pay on which benefits are computed;

is deemed to authorize appropriations to the fund in order to provide funding for the unfunded liability created by that statute, in 30 equal annual installments with interest computed at the rate used in the then most recent valuation of the system and with the first payment thereof due as of the end of the fiscal year in which such new or liberalized benefit, extension of coverage, or increase in pay is effective.

(d)Authorization

There is hereby authorized to be appropriated to the fund for each fiscal year such amounts as may be necessary to meet the amount of normal cost for each year that is not met by contributions under section 2021(a) of this title.

(e)Unfunded liability; credit allowed for military service

There is hereby authorized to be appropriated to the fund for each fiscal year such sums as may be necessary to provide the amount equivalent to—

(1)interest on the unfunded liability computed for that year at the interest rate used in the then most recent valuation of the system; and

(2)that portion of disbursement for annuities for that year that the Director estimates is attributable to credit allowed for military service,

less an amount determined by the Director to be appropriate to reflect the value of the deposits made to the credit of the fund under section 2082(h) of this title.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 261 of Pub. L. 88–643, title II, Oct. 13, 1964, 78 Stat. 1052; Pub. L. 94–522, title I, § 102, Oct. 17, 1976, 90 Stat. 2467; Ex. Ord. No. 12443, § 12, Sept. 27, 1983, 48 F.R. 44754; Pub. L. 99–335, title V, § 501(2), (3), June 6, 1986, 100 Stat. 622, related to estimate of appropriations needed and was set out as a note under section 403 of this title prior to the general amendment of Pub. L. 88–643 by section 802 of Pub. L. 102–496.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on first day of fourth month beginning after Oct. 24, 1992, see section 805 of Pub. L. 102–496, set out as a note under section 2001 of this title.

§2091 Estimate of Appropriations Needed