69
STAT.]
PUBLIC LAW 356-AUG. 11, 1955
made available without fiscal year limitation for premmm payments \inder any insurance policy or policies purchased as authorized in sections 7 and 10 of this Act, for the payment of any obligations under agreements assumed pursuant to section 10 of this Act, and for any expenses incurred by the Commission in the administration of this Act within such limitations as may be specified annually in appropriation acts: Provided, That appropriations available to the Commission for salaries and expenses for the fiscal year 1955 shall be available on a reimbursable basis for necessary administrative expenses of carrying out the purposes of this Act until said fund shall be sufficient to provide therefor. The income derived from any dividends or premium rate adjustments received from insurers shall constitute a part of said fund." (b) Section 5 of said Act is amended by adding the following subsection at the end thereof: " (d) The Secretary of the Treasury is authorized to invest and reinvest the moneys in the fund created by section 5(c), or any part thereof, in interest-bearing obligations of the United States and to sell such obligations of the United States for the purposes of the^und. The interest on and the proceeds from the sale of any such obligations shall become a part of the fund." SEC. 2. (a) Section 6 of said Act is amended to read as follows: "SEC. 6. Each policy purchased under this Act shall contain a provision, in terms approved by the Commission, to the effect that any insurance thereunder on any employee shall cease upon his separation from the service or twelve months after discontinuance of his salary payments, whichever first occurs, subject to a provision which shall be contained in the policy for temporary extension of coverage and for conversion to an individual policy of life insurance under conditions approved by the Commission, except that if upon such date as the insurance would otherwise cease the employee retires on an immediate annuity and (a) his retirement is for disability or (b) he has completed fifteen years of creditable service, as determined by the Commission, his life insurance only may, under conditions determined by the Commission, be continued without cost to him in the amounts for which he would have been insured from time to time had his salary payments continued at the same rate as on the date of cessation. Periods of honorable active service in the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States shall be credited toward the required fifteen years provided the employee has completed at least five years of civilian service." (b) The amendments made by subsection (a) shall be effective as of August 17, 1954. SEC. 3. (a) The third proviso of section 7(d) of said Act is hereby repealed. (b) Section 7(e) of said Act is amended to read as follows: "(e) The companies eligible to participate as reinsurers, and the amount of insurance under the policy or policies to be allocated to each issuing company or reinsurer, may be redetermined by the Commission for and in advance of any policy year after the first, on a basis consistent with subsections (c) and (d) of this section, with any modifications thereof it deems appropriate to carry out the intent of such subsections, and based on each participating company's group life insurance in force in the United States on the most recent December 31 for which information is available to it, excluding that under any policy or policies purchased under this Act, and shall be so redetermined in a similar manner not less often than every three years or at any time that any participating company withdraws from participation: Provided, That if, upon any such redetermination, in the case
677
Investment of fund.
Disability retirees.
Armed Forces
Effective date. 5 USC 2096. Repeal.
Reallocation of reinsurance.
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