-CITE-

10 USC CHAPTER 56 - DEPARTMENT OF DEFENSE

MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

.

-HEAD-

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-MISC1-

Sec.

1111. Establishment and purpose of Fund; definitions; authority to

enter into agreements.

1112. Assets of Fund.

1113. Payments from the Fund.

1114. Board of Actuaries.

1115. Determination of contributions to the Fund.

1116. Payments into the Fund.

1117. Investment of assets of Fund.

AMENDMENTS

2001 - Pub. L. 107-107, div. A, title VII, Sec. 711(e)(3), Dec.

28, 2001, 115 Stat. 1167, inserted ''; authority to enter into

agreements'' after ''definitions'' in item 1111.

-CITE-

10 USC Sec. 1111 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1111. Establishment and purpose of Fund; definitions;

authority to enter into agreements

-STATUTE-

(a) There is established on the books of the Treasury a fund to

be known as the Department of Defense Medicare-Eligible Retiree

Health Care Fund (hereinafter in this chapter referred to as the

''Fund''), which shall be administered by the Secretary of the

Treasury. The Fund shall be used for the accumulation of funds in

order to finance on an actuarially sound basis liabilities of the

Department of Defense under uniformed services retiree health care

programs for medicare-eligible beneficiaries.

(b) In this chapter:

(1) The term ''uniformed services retiree health care

programs'' means the provisions of this title or any other

provision of law creating an entitlement to or eligibility for

health care for a member or former member of a participating

uniformed service who is entitled to retired or retainer pay, and

an eligible dependent under such program.

(2) The term ''eligible dependent'' means a dependent described

in section 1076(a)(2) (other than a dependent of a member on

active duty), 1076(b), 1086(c)(2), or 1086(c)(3) of this title.

(3) The term ''medicare-eligible'', with respect to any person,

means entitled to benefits under part A of title XVIII of the

Social Security Act (42 U.S.C. 1395c et seq.).

(4) The term ''participating uniformed service'' means the

Army, Navy, Air Force, and Marine Corps, and any other uniformed

service that is covered by an agreement entered into under

subsection (c).

(c) The Secretary of Defense shall enter into an agreement with

each other administering Secretary (as defined in section 1072(3)

of this title) for participation in the Fund by a uniformed service

under the jurisdiction of that Secretary. The agreement shall

require that Secretary to determine contributions to the Fund on

behalf of the members of the uniformed service under the

jurisdiction of that Secretary in a manner comparable to the

determination with respect to contributions to the Fund made by the

Secretary of Defense under section 1116 of this title, and such

administering Secretary may make such contributions.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-179; amended Pub.

L. 107-107, div. A, title VII, Sec. 711(a), (b)(1), (e)(1), (2),

title X, Sec. 1048(a)(12), Dec. 28, 2001, 115 Stat. 1164-1166,

1223; Pub. L. 107-314, div. A, title VII, Sec. 704(b), Dec. 2,

2002, 116 Stat. 2584.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsec. (b)(3), is act

Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title

XVIII of the Act is classified generally to part A (Sec. 1395c et

seq.) of subchapter XVIII of chapter 7 of Title 42, The Public

Health and Welfare. For complete classification of this Act to the

Code, see section 1305 of Title 42 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-314 substituted ''shall enter

into an agreement with each other administering Secretary'' for

''may enter into an agreement with any other administering

Secretary'' in first sentence and ''The'' for ''Any such'' in

second sentence.

2001 - Pub. L. 107-107, Sec. 711(e)(2), inserted ''; authority to

enter into agreements'' after ''definitions'' in section catchline.

Subsec. (a). Pub. L. 107-107, Sec. 1048(a)(12), substituted

''hereinafter'' for ''hereafter''.

Pub. L. 107-107, Sec. 711(e)(1), substituted ''uniformed services

retiree health care programs'' for ''Department of Defense retiree

health care programs''.

Subsec. (b). Pub. L. 107-107, Sec. 711(a), amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows: ''In

this chapter:

''(1) The term 'Department of Defense retiree health care

programs for medicare-eligible beneficiaries' means the

provisions of this title or any other provision of law creating

entitlement to health care for a medicare-eligible member or

former member of the uniformed services entitled to retired or

retainer pay, or a medicare-eligible dependent of a member or

former member of the uniformed services entitled to retired or

retainer pay.

''(2) The term 'medicare-eligible' means entitled to benefits

under part A of title XVIII of the Social Security Act (42 U.S.C.

1395c et seq.).

''(3) The term 'dependent' means a dependent (as such term is

defined in section 1072 of this title) described in section

1076(b)(1) of this title.''

Subsec. (c). Pub. L. 107-107, Sec. 711(b)(1), added subsec. (c).

EFFECTIVE DATE OF 2001 AMENDMENT

Pub. L. 107-107, div. A, title VII, Sec. 711(f), Dec. 28, 2001,

115 Stat. 1167, provided that: ''The amendments made by this

section (amending this section and sections 1112, 1113, 1115, and

1116 of this title) shall take effect as if included in the

enactment of chapter 56 of title 10, United States Code, by section

713(a)(1) of the Floyd D. Spence National Defense Authorization Act

for Fiscal Year 2001 (as enacted into law by Public Law 106-398;

114 Stat. 1654A-179).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1112, 1113 of this title.

-CITE-

10 USC Sec. 1112 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1112. Assets of Fund

-STATUTE-

There shall be deposited into the Fund the following, which shall

constitute the assets of the Fund:

(1) Amounts paid into the Fund under section 1116 of this

title.

(2) Any amount appropriated to the Fund.

(3) Any return on investment of the assets of the Fund.

(4) Amounts paid into the Fund pursuant to section 1111(c) of

this title.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-180; amended Pub.

L. 107-107, div. A, title VII, Sec. 711(b)(2), Dec. 28, 2001, 115

Stat. 1165.)

-MISC1-

AMENDMENTS

2001 - Par. (4). Pub. L. 107-107 added par. (4).

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-107 effective as if included in the

enactment of this chapter by Pub. L. 106-398, see section 711(f) of

Pub. L. 107-107, set out as a note under section 1111 of this

title.

-CITE-

10 USC Sec. 1113 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1113. Payments from the Fund

-STATUTE-

(a) There shall be paid from the Fund amounts payable for the

costs of all uniformed service retiree health care programs for the

benefit of members or former members of a participating uniformed

service who are entitled to retired or retainer pay and are

medicare eligible, and eligible dependents who are medicare

eligible.

(b) The assets of the Fund are hereby made available for payments

under subsection (a).

(c)(1) In carrying out subsection (a), the Secretary of Defense

may transfer periodically from the Fund to applicable

appropriations of the Department of Defense, or to applicable

appropriations of other departments or agencies, such amounts as

the Secretary determines necessary to cover the costs chargeable to

those appropriations for uniformed service retiree health care

programs for beneficiaries under those programs who are

medicare-eligible. Such transfers may include amounts necessary

for the administration of such programs. Amounts so transferred

shall be merged with and be available for the same purposes and for

the same time period as the appropriation to which transferred.

Upon a determination that all or part of the funds transferred from

the Fund are not necessary for the purposes for which transferred,

such amounts may be transferred back to the Fund. This transfer

authority is in addition to any other transfer authority that may

be available to the Secretary.

(2) A transfer from the Fund under paragraph (1) may not be made

to an appropriation after the end of the second fiscal year after

the fiscal year that the appropriation is available for

obligation. A transfer back to the Fund under paragraph (1) may

not be made after the end of the second fiscal year after the

fiscal year for which the appropriation to which the funds were

originally transferred is available for obligation.

(d) The Secretary of Defense shall by regulation establish the

method or methods for calculating amounts to be transferred under

subsection (c). Such method or methods may be based (in whole or in

part) on a proportionate share of the volume (measured as the

Secretary determines appropriate) of health care services provided

or paid for under uniformed service retiree health care programs

for beneficiaries under those programs who are medicare-eligible in

relation to the total volume of health care services provided or

paid for under Department of Defense health care programs.

(e) The regulations prescribed by the Secretary under subsection

(d) shall be provided to the Comptroller General not less than 60

days before such regulations become effective. The Comptroller

General shall, not later than 30 days after receiving such

regulations, report to the Secretary of Defense and Congress on the

adequacy and appropriateness of the regulations.

(f) If the Secretary of Defense enters into an agreement with

another administering Secretary pursuant to section 1111(c), the

Secretary of Defense may take the actions described in subsections

(c), (d), and (e) on behalf of the beneficiaries and programs of

the other participating uniformed service.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-180; amended Pub.

L. 107-107, div. A, title VII, Sec. 711(c), Dec. 28, 2001, 115

Stat. 1165.)

-MISC1-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-107, Sec. 711(c)(1), amended

subsec. (a) generally. Prior to amendment, subsec. (a) read as

follows: ''There shall be paid from the Fund amounts payable for

Department of Defense retiree health care programs for

medicare-eligible beneficiaries.''

Subsecs. (c) to (f). Pub. L. 107-107, Sec. 711(c)(2), added

subsecs. (c) to (f).

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-107 effective as if included in the

enactment of this chapter by Pub. L. 106-398, see section 711(f) of

Pub. L. 107-107, set out as a note under section 1111 of this

title.

EFFECTIVE DATE

Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec. 713(b)(1)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-184, provided that: ''Sections

1113 and 1116 of title 10, United States Code (as added by

subsection (a)), shall take effect on October 1, 2002.''

-CITE-

10 USC Sec. 1114 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1114. Board of Actuaries

-STATUTE-

(a)(1) There is established in the Department of Defense a

Department of Defense Medicare-Eligible Retiree Health Care Board

of Actuaries (hereinafter in this chapter referred to as the

''Board''). The Board shall consist of three members who shall be

appointed by the Secretary of Defense from among qualified

professional actuaries who are members of the Society of Actuaries.

(2)(A) Except as provided in subparagraph (B), the members of the

Board shall serve for a term of 15 years, except that a member of

the Board appointed to fill a vacancy occurring before the end of

the term for which his predecessor was appointed shall only serve

until the end of such term. A member may serve after the end of

his term until his successor has taken office. A member of the

Board may be removed by the Secretary of Defense for misconduct or

failure to perform functions vested in the Board, and for no other

reason.

(B) Of the members of the Board who are first appointed under

this paragraph, one each shall be appointed for terms ending five,

ten, and 15 years, respectively, after the date of appointment, as

designated by the Secretary of Defense at the time of appointment.

(3) A member of the Board who is not otherwise an employee of the

United States is entitled to receive pay at the daily equivalent of

the annual rate of basic pay of the highest rate of basic pay under

the General Schedule of subchapter III of chapter 53 of title 5,

for each day the member is engaged in the performance of duties

vested in the Board, and is entitled to travel expenses, including

a per diem allowance, in accordance with section 5703 of title 5.

(b) The Board shall report to the Secretary of Defense annually

on the actuarial status of the Fund and shall furnish its advice

and opinion on matters referred to it by the Secretary.

(c) The Board shall review valuations of the Fund under section

1115(c) of this title and shall report periodically, not less than

once every four years, to the President and Congress on the status

of the Fund. The Board shall include in such reports

recommendations for such changes as in the Board's judgment are

necessary to protect the public interest and maintain the Fund on a

sound actuarial basis.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-180; amended Pub.

L. 107-107, div. A, title X, Sec. 1048(a)(12), Dec. 28, 2001, 115

Stat. 1223.)

-MISC1-

AMENDMENTS

2001 - Subsec. (a)(1). Pub. L. 107-107 substituted

''hereinafter'' for ''hereafter''.

-CITE-

10 USC Sec. 1115 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1115. Determination of contributions to the Fund

-STATUTE-

(a) The Board shall determine the amount that is the present

value (as of October 1, 2002) of future benefits payable from the

Fund that are attributable to service in the participating

uniformed services performed before October 1, 2002. That amount is

the original unfunded liability of the Fund. The Board shall

determine the period of time over which the original unfunded

liability should be liquidated and shall determine an amortization

schedule for the liquidation of such liability over that period.

Contributions to the Fund for the liquidation of the original

unfunded liability in accordance with such schedule shall be made

as provided in section 1116(b) of this title.

(b)(1) 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:

(A) The product of -

(i) 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

(ii) 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 (other

than active duty for training) and full-time National Guard

duty (other than full-time National Guard duty for training

only).

(B) The product of -

(i) 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

(ii) the expected average force strength during that fiscal

year for members of the Ready 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 subparagraph

(A)(ii).

(2) 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.

(c)(1) Not less often than every four years, the Secretary of

Defense shall carry out an actuarial valuation of the Fund. Each

such actuarial valuation shall include -

(A) a determination (using the aggregate entry-age normal cost

method) of a single level dollar amount for members of the

participating uniformed services on active duty (other than

active duty for training) or full-time National Guard duty (other

than full-time National Guard duty for training only); and

(B) a determination (using the aggregate entry-age normal cost

method) of a single level dollar amount for members of the Ready

Reserve of the participating uniformed services and other than

members on full-time National Guard duty other than for training)

(FOOTNOTE 1) who are not otherwise described by subparagraph (A).

(FOOTNOTE 1) So in original. There is no corresponding opening

parenthesis.

Such single level dollar amounts shall be used for the purposes of

subsection (b) and section 1116(a) of this title.

(2) If at the time of any such valuation there has been a change

in benefits under the uniformed services retiree health care

programs for medicare-eligible beneficiaries that has been made

since the last such valuation and such change in benefits increases

or decreases the present value of amounts payable from the Fund,

the Secretary of Defense shall determine an amortization

methodology and schedule for the amortization of the cumulative

unfunded liability (or actuarial gain to the Fund) created by such

change and any previous such changes so that the present value of

the sum of the amortization payments (or reductions in payments

that would otherwise be made) equals the cumulative increase (or

decrease) in the present value of such amounts.

(3) If at the time of any such valuation the Secretary of Defense

determines that, based upon changes in actuarial assumptions since

the last valuation, there has been an actuarial gain or loss to the

Fund, the Secretary shall determine an amortization methodology and

schedule for the amortization of the cumulative gain or loss to the

Fund created by such change in assumptions and any previous such

changes in assumptions through an increase or decrease in the

payments that would otherwise be made to the Fund.

(4) If at the time of any such valuation the Secretary of Defense

determines that, based upon the Fund's actuarial experience (other

than resulting from changes in benefits or actuarial assumptions)

since the last valuation, there has been an actuarial gain or loss

to the Fund, the Secretary shall determine an amortization

methodology and schedule for the amortization of the cumulative

gain or loss to the Fund created by such actuarial experience and

any previous actuarial experience through an increase or decrease

in the payments that would otherwise be made to the Fund.

(5) Contributions to the Fund in accordance with amortization

schedules under paragraphs (2), (3), and (4) shall be made as

provided in section 1116(b) of this title.

(d) All determinations under this section shall be made using

methods and assumptions approved by the Board of Actuaries

(including assumptions of interest rates and medical inflation) and

in accordance with generally accepted actuarial principles and

practices.

(e) The Secretary of Defense shall provide for the keeping of

such records as are necessary for determining the actuarial status

of the Fund.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-181; amended Pub.

L. 107-107, div. A, title VII, Sec. 711(b)(3), (e)(1), Dec. 28,

2001, 115 Stat. 1165, 1166.)

-MISC1-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-107, Sec. 711(b)(3)(A), inserted

''participating'' before ''uniformed services''.

Subsec. (b)(1)(A)(ii), (B)(ii). Pub. L. 107-107, Sec.

711(b)(3)(B), inserted ''under the jurisdiction of the Secretary of

Defense'' after ''uniformed services''.

Subsec. (b)(2). Pub. L. 107-107, Sec. 711(b)(3)(C), inserted

''(or to the other executive department having jurisdiction over

the participating uniformed service)'' after ''Department of

Defense''.

Subsec. (c)(1)(A), (B). Pub. L. 107-107, Sec. 711(b)(3)(D),

inserted ''participating'' before ''uniformed services''.

Subsec. (c)(2). Pub. L. 107-107, Sec. 711(e)(1), substituted

''uniformed services retiree health care programs'' for

''Department of Defense retiree health care programs''.

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-107 effective as if included in the

enactment of this chapter by Pub. L. 106-398, see section 711(f) of

Pub. L. 107-107, set out as a note under section 1111 of this

title.

EFFECTIVE DATE

Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec. 713(b)(2)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-184, provided that: ''Section

1115 of such title (as added by such subsection) shall take effect

on October 1, 2001.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1114, 1116 of this title.

-CITE-

10 USC Sec. 1116 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1116. Payments into the Fund

-STATUTE-

(a) 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 is the sum of the following:

(1) The product of -

(A) 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

(B) 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).

(2) The product of -

(A) 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

(B) the total end strength for that month for members of the

Ready 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).

(b)(1) 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.

(2) At the beginning of each fiscal year the Secretary of Defense

shall determine the sum of the following:

(A) 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.

(B) 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.

(C) 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.

(D) 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.

(3) The Secretary of Defense shall promptly certify the amount

determined under paragraph (2) each year to the Secretary of the

Treasury.

(c) 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.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-182; amended Pub.

L. 107-107, div. A, title VII, Sec. 711(b)(4), (d), (e)(1), title

X, Sec. 1048(a)(13), Dec. 28, 2001, 115 Stat. 1165, 1166, 1223;

Pub. L. 107-314, div. A, title VII, Sec. 704(a), Dec. 2, 2002, 116

Stat. 2584.)

-MISC1-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-314 substituted ''pay of

members'' for ''health care programs''.

2001 - Subsec. (a)(1)(A). Pub. L. 107-107, Sec. 711(e)(1),

substituted ''uniformed services retiree health care programs'' for

''Department of Defense retiree health care programs''.

Subsec. (a)(1)(B). Pub. L. 107-107, Sec. 711(b)(4), inserted

''under the jurisdiction of the Secretary of Defense'' after

''uniformed services''.

Subsec. (a)(2)(A). Pub. L. 107-107, Sec. 711(e)(1), substituted

''uniformed services retiree health care programs'' for

''Department of Defense retiree health care programs''.

Subsec. (a)(2)(B). Pub. L. 107-107, Sec. 1048(a)(13)(A), inserted

an opening parenthesis before ''other than for training''.

Pub. L. 107-107, Sec. 711(b)(4), (d)(1), inserted ''under the

jurisdiction of the Secretary of Defense'' after ''uniformed

services'' and struck out at end ''Amounts paid into the Fund under

this subsection shall be paid from funds available for the Defense

Health Program.''.

Subsec. (b)(2)(D). Pub. L. 107-107, Sec. 1048(a)(13)(B),

substituted ''section 1115(c)(4)'' for ''section 111(c)(4)''.

Subsec. (c). Pub. L. 107-107, Sec. 711(d)(2), added subsec. (c).

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by section 711 of Pub. L. 107-107 effective as if

included in the enactment of this chapter by Pub. L. 106-398, see

section 711(f) of Pub. L. 107-107, set out as a note under section

1111 of this title.

EFFECTIVE DATE

Section effective Oct. 1, 2002, see section 1 ((div. A), title

VII, Sec. 713(b)(1)) of Pub. L. 106-398, set out as a note under

section 1113 of this title.

FIRST YEAR CONTRIBUTIONS

Pub. L. 107-107, div. A, title VII, Sec. 711(g), Dec. 28, 2001,

115 Stat. 1167, provided that: ''With respect to contributions

under section 1116(a) of title 10, United States Code, for the

first year that the Department of Defense Medicare-Eligible Retiree

Health Care Fund is established under chapter 56 of such title, if

the Board of Actuaries is unable to execute its responsibilities

with respect to such section, the Secretary of Defense may make

contributions under such section using methods and assumptions

developed by the Secretary.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1111, 1112, 1115 of this

title.

-CITE-

10 USC Sec. 1117 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 56 - DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH

CARE FUND

-HEAD-

Sec. 1117. Investment of assets of Fund

-STATUTE-

The Secretary of the Treasury shall invest such portion of the

Fund as is not in the judgment of the Secretary of Defense required

to meet current withdrawals. Such investments shall be in public

debt securities with maturities suitable to the needs of the Fund,

as determined by the Secretary of Defense, and bearing interest at

rates determined by the Secretary of the Treasury, taking into

consideration current market yields on outstanding marketable

obligations of the United States of comparable maturities. The

income on such investments shall be credited to and form a part of

the Fund.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VII, Sec.

713(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-184.)

-CITE-