10 U.S.C. § 12528 — Reserve Mobilization Income Insurance Fund

submitted 30 years ago by Pub. L. 104-106 to r/title-10-ARMED-FORCES · 326 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Treasury runs a special "Reserve Mobilization Income Insurance Fund" to pay for this insurance program's future benefits. Premiums, appropriations, and investment returns all go into the Fund, and it can only be used to pay insurance benefits. The Treasury must invest any money not needed right away in government securities, and every year the Secretary and Board of Actuaries must review the Fund's projected income and any funding gains or losses.

(a) Establishment. The Treasury runs a fund called the "Reserve Mobilization Income Insurance Fund," used to build up money to pay for the insurance program's future costs on a sound financial basis. (b) Assets of Fund. The Fund receives: (1) premiums paid under section 12527; (2) any money Congress appropriates to it; and (3) any investment returns it earns. (c) Availability. The Fund's money can only be used to pay insurance benefits under this program. (d) Investment of Assets of Fund. The Treasury must invest whatever part of the Fund the Secretary of Defense decides is not needed for current bills, in government securities with maturities that fit the Fund's needs, earning interest based on current market rates. That investment income goes back into the Fund. (e) Annual Accounting. At the start of each fiscal year, the Secretary — working with the Board of Actuaries and the Treasury — must figure out: (1) the projected premiums, investment income, and any transfers or appropriations expected for the Fund that year; (2) any cumulative funding shortfall (or gain) from paying benefits; and (3) any cumulative actuarial gain or loss for that year.

the actual law source: uscode.house.gov ↗public domain

(a)Establishment.—

There is established on the books of the Treasury a fund to be known as the “Reserve Mobilization Income Insurance 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 the liabilities of the insurance program on an actuarially sound basis.

(b)Assets of Fund.—

There shall be deposited into the Fund the following:

(1)

Premiums paid under section 12527 of this title.

(2)

Any amount appropriated to the Fund.

(3)

Any return on investment of the assets of the Fund.

(c)Availability.—

Amounts in the Fund shall be available for paying insurance benefits under the insurance program.

(d)Investment of Assets of Fund.—

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 liabilities. 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 the Fund.

(e)Annual Accounting.—

At the beginning of each fiscal year, the Secretary, in consultation with the Board of Actuaries and the Secretary of the Treasury, shall determine the following:

(1)

The projected amount of the premiums to be collected, investment earnings to be received, and any transfers or appropriations to be made for the Fund for that fiscal year.

(2)

The amount for that fiscal year of any cumulative unfunded liability (including any negative amount or any gain to the Fund) resulting from payments of benefits.

(3)

The amount for that fiscal year (including any negative amount) of any cumulative actuarial gain or loss to the Fund.

Source credit: (Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 302.)

history & why it existsrecord from the source credit

1996Enacted · Pub. L. 104-106 · 110 Stat. 302

A history note hasn’t been published yet. The record shows enactment by Pub. L. 104-106 on 1996-02-10.

all 0 arguments · sorted by: best

no arguments yet — make the first case