Sec. 102. Postal Service retiree health care benefit funding reform
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Section 8906(g) of title 5, United States Code, is amended— by striking (2)(A) The Government and inserting (2)(A)(i) The Government ; and in paragraph (2)— in subparagraph (A)— in clause (i), as added by paragraph (1), by striking shall through September 30, 2016, be paid and all that follows and inserting the following: 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, equal to 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 the following: 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, 2018, 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, 2055, or within 15 years, whichever is later, 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— 100 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)— in clause (i), by striking paragraph
(1)and inserting paragraph (1), except to the extent the payment would cause the value of the assets in the Fund to exceed the Postal Service actuarial liability ; and in clause (ii), 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: 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 (7)(A), subclause
(I)of section 8906(g)(2)(A)(ii) shall be applied without regard to the limit in such subclause with respect to the amount contained in the Fund. ; and by adding at the end the following: Subsections
(a)through
(d)of this section shall be subject to the requirements of section 8903c. . 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 canceled. The heading of section 8909a of title 5, United States Code, is amended by striking and inserting Benefit . Benefits