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PUBLIC LAW 356-AUG. 11, 1955
[69 STAT*
of any issuing company or reinsurer which insured employees of the Federal Government on December 31, 1953, under policies issued to an association of Federal employees, the amount which results from the application of the formula referred to in subsection (d) of this section is less than the totaj decrease, if any, since December 31, 1953, in the amount of such company's insurance under such policies, the amount allocated to such company shall be increased to the amount of such decrease: Provided further, That any increase in the amount allocated to such company by application of the preceding proviso shall be reduced by the amount or amounts of any policy or policies purchased from such company under the authorization of section 10 of this Act, and in force on the date of such redetermination," 5 USC 2099. gj,(-. 4 Section 10 of said Act is amended to read as follows: Retired employ"SEC. 10. (a) The Commissioii is authorized to arrange with any a^eements.'^"*^* iioiiprofit association of Federal or District of Columbia employees for the assumption by the fund created by section 5(c) of all life insurance agreements, including all benefits contained therein, obtained or provided by such association for its members. "(b) The Commission is authorized, without regard to other sec41 USC 5. tions of this Act and without regard to section 3709 of the Revised Statutes as amended, to purchase from one or more life insurance companies, as determined by the Commission, a policy or policies of group life insurance to insure all or any portion of the life insurance agreements obtained or provided by an association for its members and assumed under this section: Provided, That any such company must be either (1) the company then insuring such members under a policy or policies issued to such association; or (2) a company which is an insurer or a reinsurer under section 7 of this Act. The Commission may at any time discontinue any policy or policies it has purchased from any insurance company. "(c) Any association accepting such arrangement shall, in consideration therefor, pay over and transfer to the Commission (1) an amount equal to the actuarial value, as determined by the Commission, of the insurance obligations assumed by the fund created by section 5(c), or (2) the total assets of the life insurance fund of such association, whichever is the lesser. Such payment and transfer shall be a premium for the purchase of the Government insurance arrangement, shall be deposited in the fund created by section 5(c), and shall be accomplished in accordance with the procedures and conditions prescribed by the Commission, and in accordance with the requirements of applicable law. " (d) The arrangements authorized by this section shall be made within six calendar months following the date of enactment of this amending Act, or such later date as the Commission may agree when there are extenuating circumstances, but not later than August 17, 1957, and such arrangements shall apply only to life insurance agreements existing on both the date of the approval of this amendment and on the date of the respective arrangement. "(e) Any such arrangement shall provide that the continuation of the insurance coverage of such members shall be conditioned upon their payment to the fund created by section 5(c), in such manner and under such conditions as the Commission may prescribe, of premium payments equal to the premiums or dues previously payable by them for such insurance coverage. " (f) The members of such associations shall not by reason of any such arrangements be disqualified from any other insurance benefits provided by this Act if otherwise eligible therefor." Approved August 11, 1955.
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