Page:United States Statutes at Large Volume 110 Part 1.djvu/326
110 STAT. 302 PUBLIC LAW 104-106—FEB. 10, 1996 of Actuaries, may adjust the premium rate in order to fund inflationadjusted benefit increases on an actuarially sound basis. "§ 12527. Payment of premiums "(a) METHODS OF PAYMENT.—(1) The monthly premium for coverage of a member under the insurance program shall be deducted and withheld from the insured member's pay for each month. "(2) An insured member who does not receive pay on a monthly basis shall pay the Secretary directly the premium amount applicable for the level of benefits for which the member is insured. "(b) ADVANCE PAY FOR PREMIUM. —The Secretary concerned may advance to an insured member the amount equal to the first insurance premium payment due under this chapter. The advance may be paid out of appropriations for military pay. An advance to a member shall be collected from the member either by deducting and withholding the amount from basic pay payable for the member or by collecting it from the member directly. No disbursing or certifying officer shall be responsible for any loss resulting from an advance under this subsection. "(c) PREMIUMS TO BE DEPOSITED IN FUND.—Premium amounts deducted and withheld from the pay of insured members and premium amounts paid directly to the Secretary shall be credited monthly to the Fund. "§ 12528. Reserve Mobilization Income Insurance Fund "(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.