105 STAT. 1398 PUBLIC LAW 102-190—DEC. 5, 1991 separated pursuant to this section before that date. The amount so determined is the original unfunded liability of the Fund. The Board shall determine an appropriate amortization period and schedule for liquidation of the original unfunded liability. The Secretary shall make deposits to the Fund in accordance with that amortization schedule. "(6) For persons separated under this section on or after January 1, 1993, the Secretary shall deposit in the Fund during the period beginning on that date and ending on September 30, 1995— "(A) such sums as are necessary to pay the current liabilities under this section during such period; and "(B) the amount equal to the present value, as of September 30, 1995, of the future benefits payable under this section, as determined by the Board. "(7)(A) For each fiscal year after fiscal year 1996, the Board shall— "(i) carry out an actuarial valuation of the Fund and determine any unfunded liability of the Fund which deposits under paragraphs (5) and (6) do not liquidate, taking into consideration any cumulative actuarial gain or loss to the Fund; "(ii) determine the period over which that unfunded liability should be liquidated; and "(iii) determine for the following fiscal year, the total amount, and the monthly amount, of the Department of Defense contributions that must be made to the Fund during that fiscal year in order to fund the unfunded liabilities of the Fund over the applicable amortization periods. "(B) The Board shall carry out its responsibilities for each fiscal year in sufficient time for the amounts referred to in subparagraph (A)(iii) to be included in budget requests for that fiscal year. "(C) The Secretary of Defense shall pay into the Fund at the end of each month as the Department of Defense contribution to the Fund the amount necessary to liquidate unfunded liabilities of the Fund in accordance with the amortization schedules determined by the Board. "(8) Amounts paid into the Fund under this subsection shall be paid from funds available for the pay of members of the armed forces under the jurisdiction of the Secretary of each military department. "(9) The investment provisions of section 1467 of this title shall apply to the Voluntary Separation Incentive Fund. "(i) The Secretary of Defense may issue such regulations as may be necessary to carry out this section.". (2) The table of sections at the beginning of such chapter, as amended by section 661, is further amended by adding at the end the following: "1175. Voluntary separation incentive.". 10 USC 1175 (b) Tax Treatment—Notwithstanding the Internal Revenue Code "° *^ of 1986 and any other provision of law, any voluntary separation incentive paid to a member of the Armed Forces under section 1175 of title 10, United States Code (as added by subsection (a)), shall be includable in gross income for federal tax purposes only for the taxable year in which such incentive is paid to the participant or beneficiary of the member.
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