Sec. 721. Department of Defense Medicare-Eligible Retiree Health Care Fund matters
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Section 1116 of title 10, United States Code, is amended to read as follows: The Secretary of Defense shall pay into the Fund at the end of each month as the Department of Defense contribution to the Fund for that month the amount that, subject to subsections
(b)and (c), is the sum of the following: The product of— the monthly dollar amount determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under section 1115(c)(1)(A) of this title (except that any statutory change in the uniformed services retiree health care programs for medicare-eligible beneficiaries that is effective after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determination); and the total end strength for that month for members of the uniformed services under the jurisdiction of the Secretary of Defense on active duty (other than active duty for training) and full-time National Guard duty (other than full-time National Guard duty for training only). The product of— the level monthly dollar amount determined using all the methods and assumptions approved for the most recent (as of the first day of the current fiscal year) actuarial valuation under section 1115(c)(1)(B) of this title (except that any statutory change in the uniformed services retiree health care programs for medicare-eligible beneficiaries that is effective after the date of that valuation and on or before the first day of the current fiscal year shall be used in such determination); and the total end strength for that month for members of the Selected Reserve of the uniformed services under the jurisdiction of the Secretary of Defense other than members on full-time National Guard duty (other than for training) who are not otherwise described in paragraph (1)(B). If during a month a statute is enacted that will have a significant effect on the amounts calculated for purposes of subsection (a), the Secretary of Defense may recalculate the amount payable under subsection
(a)for months in the fiscal year of such enactment that begin after such enactment taking into account the effect of such change on the calculation of amounts so payable. Any such recalculation in a fiscal year shall apply to amounts payable under subsection
(a)for months in such fiscal year beginning after the change triggering the recalculation. The Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on any recalculation carried out by the Secretary under this subsection, including the effect of such recalculation on amounts payable under subsection
(a)for months in the fiscal year concerned beginning after such recalculation. If an actuarial valuation referred to in paragraph
(1)or
(2)of subsection
(a)has been calculated as a separate single level dollar amount for a participating uniformed service under section 1115(c)(1) of this title, the administering Secretary for the department in which such uniformed service is operating shall calculate the amount under such paragraph separately for such uniformed service. If the administering Secretary is not the Secretary of Defense, the administering Secretary shall notify the Secretary of Defense of the amount so calculated. To determine a single amount for the purpose of paragraph
(1)or
(2)of subsection (a), as the case may be, the Secretary of Defense shall aggregate the amount calculated under this subsection for a uniformed service for the purpose of such paragraph with the amount or amounts calculated (whether separately or otherwise) for the other uniformed services for the purpose of such paragraph. At the beginning of each fiscal year the Secretary of the Treasury shall promptly pay into the Fund from the General Fund of the Treasury the amount certified to the Secretary by the Secretary of Defense under paragraph (3). Such payment shall be the contribution to the Fund for that fiscal year required by sections 1115(a) and 1115(c) of this title. At the beginning of each fiscal year the Secretary of Defense shall determine the sum of the following: The amount of the payment for that year under the amortization schedule determined by the Board of Actuaries under section 1115(a) of this title for the amortization of the original unfunded liability of the Fund. The amount (including any negative amount) for that year under the most recent amortization schedule determined by the Secretary of Defense under section 1115(c)(2) of this title for the amortization of any cumulative unfunded liability (or any gain) to the Fund resulting from changes in benefits. The amount (including any negative amount) for that year under the most recent amortization schedule determined by the Secretary of Defense under section 1115(c)(3) of this title for the amortization of any cumulative actuarial gain or loss to the Fund resulting from actuarial assumption changes. The amount (including any negative amount) for that year under the most recent amortization schedule determined by the Secretary of Defense under section 1115(c)(4) of this title for the amortization of any cumulative actuarial gain or loss to the Fund resulting from actuarial experience. The Secretary of Defense shall promptly certify the amount determined under paragraph
(2)each year to the Secretary of the Treasury. Amounts paid into the Fund under subsection
(a)shall be paid from funds available for the pay of members of the participating uniformed services under the jurisdiction of the respective administering Secretaries. . Such title is further amended as follows: In section 1111(c), by striking under section 1115(b) and all that follows and inserting under section 1116 of this title, and such administering Secretary may make such contributions. . In section 1113(f), by inserting of this title after section 1111(c) . In section 1115— in subsection (a), by striking section 1116 of this title and inserting section 1116(d) of this title ; by striking subsection
(b)and inserting the following new subsection (b): The Secretary of Defense shall determine each year, in sufficient time for inclusion in budget requests for the following fiscal year, the total amount of Department of Defense contributions to be made to the Fund during that fiscal year under section 1116(a) of this title. That amount shall be the sum of the following: The product of— the current estimate of the value of the single level dollar amount to be determined under subsection (c)(1)(A) at the time of the next actuarial valuation under subsection (c); and the expected average force strength during that fiscal year for members of the uniformed services under the jurisdiction of the Secretary of Defense on active duty and full-time National Guard duty, but excluding any member who would be excluded for active-duty end strength purposes by section 115(i) of this title. The product of— the current estimate of the value of the single level dollar amount to be determined under subsection (c)(1)(B) at the time of the next actuarial valuation under subsection (c); and the expected average force strength during that fiscal year for members of the Selected Reserve of the uniformed services under the jurisdiction of the Secretary of Defense who are not otherwise described in subparagraph (A)(ii). The amount determined under paragraph
(1)for any fiscal year is the amount needed to be appropriated to the Department of Defense (or to the other executive department having jurisdiction over the participating uniformed service) for that fiscal year for payments to be made to the Fund during that year under section 1116(a) of this title. The President shall include not less than the full amount so determined in the budget transmitted to Congress for that fiscal year under section 1105 of title 31. The President may comment and make recommendations concerning any such amount. ; and in subsection (c)— in the flush matter following paragraph (1), by inserting and section 1116(a) of this title after subsection
(b); and in paragraph (5), by striking section 1116 and inserting section 1116(d) . The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to payments made into the Department of Defense Medicare-Eligible Retiree Health Care Fund under chapter 56 of title 10, United States Code (as so amended), for fiscal years beginning after fiscal year 2015.