Sec. 103. Restructuring of payments for retiree health benefits
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/bill/114/s/2051/is/section-103·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 8906(g)(2) of title 5, United States Code, is amended— by inserting
(i)after (2)(A) ; in subparagraph (A)— in clause (i), as so designated, by striking shall through September 30, 2016, be paid and all that follows and inserting shall be paid as provided in clause (ii). ; and by adding at the end the following: With respect to the Government contributions required to be paid under clause (i)— the portion of the contributions that is equal to the amount of the net claims costs under the enrollment of the individuals described in clause
(i)shall be paid from the Postal Service Retiree Health Benefits Fund up to the amount contained in the Fund; and any remaining amount shall be paid by the United States Postal Service. ; and by adding at the end the following: For purposes of this paragraph, the amount of the net claims costs under the enrollment of an individual described in subparagraph (A)(i) shall be the amount, as determined by the Office over any particular period of time, that is the difference between— the sum of— the costs incurred by a carrier in providing health services to, paying for health services provided to, or reimbursing expenses for health services provided to, the individual and any other person covered under the enrollment of the individual; and an amount of indirect expenses reasonably allocable to the provision, payment, or reimbursement described in subclause (I), as determined by the Office; and the amount withheld from the annuity of the individual or otherwise paid by the individual under this section. . Section 8909a of title 5, United States Code, is amended— in subsection (d)— in paragraph (1), by striking required under section 8906(g)(2)(A) and inserting required to be paid from the Postal Service Retiree Health Benefits Fund under section 8906(g)(2)(A)(ii)(I) ; by striking paragraph
(2)and inserting the following: Not later than June 30, 2017, the Office shall compute, and by June 30 of each succeeding year, the Office shall recompute, a schedule including a series of annual installments which provide for the liquidation of the amount described under subparagraph
(B)(regardless of whether the amount is a liability or surplus) by September 30, 2056, including interest at the rate used in the computations under this subsection. The amount described in this subparagraph is the amount, as of the date on which the applicable computation or recomputation under subparagraph
(A)is made, that is equal to the difference between— 80 percent of the Postal Service actuarial liability as of September 30 of the preceding fiscal year; and the value of the assets of the Postal Service Retiree Health Benefits Fund as of September 30 of the preceding fiscal year. ; in paragraph (3)— in subparagraph (A)— in clause (iii), by adding and at the end; in clause (iv), by striking the semicolon at the end and inserting a period; and by striking clauses
(v)through (x); and in subparagraph (B)(ii)— by inserting subject to paragraph (7), before any annual installment ; and by striking paragraph (2)(B) and inserting paragraph
(2); by amending paragraph
(4)to read as follows: Computations under this subsection shall be based on— economic and actuarial methods and assumptions consistent with the methods and assumptions used in determining the Postal surplus or supplemental liability under section 8348(h); and any other methods and assumptions, including a health care cost trend rate, that the Director of the Office determines to be appropriate. ; and by adding at the end the following: There is established in the Treasury a fund to be known as the Postal Service Investment Account (in this paragraph referred to as the Account ). The Secretary of the Treasury shall invest amounts in the Account in a manner similar to how amounts in the Thrift Savings Fund are invested and in accordance with guidance from the Thrift Savings Board. If the amount described under paragraph (2)(B) for a fiscal year is a liability, the United States Postal Service may, in lieu of paying an annual installment under paragraph (3)(B)(ii), deposit in the Account an amount equal to the amount of the annual installment. Before September 30 of the tenth fiscal year after the fiscal year during which the United States Postal Service makes a deposit under subparagraph
(B)in lieu of paying an annual installment under paragraph (3)(B)(ii), upon request by the United States Postal Service or if determined appropriate by the Secretary of the Treasury, the Secretary of the Treasury shall transfer from the amounts in the Account attributable to the earnings on the deposit to the Postal Service Retiree Health Benefits Fund an amount equal to the amount of such annual installment. If a transfer has not been made under subclause
(I)relating to a deposit under subparagraph
(B)in lieu of paying an annual installment under paragraph (3)(B)(ii) before September 30 of the tenth fiscal year after the fiscal year during which the United States Postal Service makes the deposit, effective on such September 30, the Secretary of the Treasury shall transfer from the amounts in the Account attributable to the earnings on the deposit to the Postal Service Retiree Health Benefits Fund an amount equal to the amount of such annual installment. If, on the date a transfer is required under clause (i)(II), the amount in the Account attributable to the earnings on the applicable deposit is less than the amount required to be transferred under clause (i)(II)— the Secretary of the Treasury shall transfer to the Postal Service Retiree Health Benefits Fund the amounts in the Account attributable to the earnings on the applicable deposit; and the United States Postal Service— may request that the Secretary of the Treasury transfer to the Postal Service Retiree Health Benefits Fund from the amounts in the Account attributable to the applicable deposit an amount equal to the difference between the amount transferred under subclause
(I)and the amount of the applicable annual installment; and if the United States Postal Service does not request a transfer under item (aa), shall pay into the Postal Service Retiree Health Benefits Fund an amount equal to the difference between the amount transferred under subclause
(I)and the amount of the applicable annual installment. After a transfer under clause
(i)and a transfer or payment under clause (ii), if applicable, any remaining amounts in the Account that are attributable to the applicable deposit and earnings on the deposit— shall be used by the United States Postal Service to repay any obligation issued under section 2005(a) of title 39; to the extent amounts remain after repayments under subclause (I), shall be transferred by the United States Postal Service to the Civil Service Retirement and Disability Fund for the purpose of reducing any supplemental liability under section 8348(h); and to the extent amounts remain after repayments under subclause
(I)and transfers under subclause (II), may be used by the United States Postal Service for the operation of the United States Postal Service. In this subsection, the term Postal Service actuarial liability means the difference between— the net present value of future payments required to be paid from the Postal Service Retiree Health Benefits Fund under section 8906(g)(2)(A)(ii)(I) for current and future United States Postal Service annuitants; and the net present value as computed under paragraph
(1)attributable to the future service of United States Postal Service employees. For purposes of computing an amount under paragraph
(1)or (8)(A), section 8906(g)(2)(A)(ii)(I) shall be applied as though up to the amount contained in the Fund were struck. ; and by adding at the end the following: Subsections
(a)through
(d)of this section shall be subject to section 102 of the Improving Postal Operations, Service, and Transparency Act of 2015 . . Any obligation of the Postal Service under section 8909a(d)(3)(A) of title 5, United States Code, as in effect on the day before the date of enactment of this Act, that remains unpaid as of such date of enactment is cancelled. The heading of section 8909a of title 5, United States Code, is amended by striking and inserting Benefit . Benefits