166 
consultation with the majority and minorities 
leaders of the House of Representatives and the 
Senate, as follows: 
(i) One in consultation with the 
Speaker of the House of Representatives. 
(ii) One in consultation with the mi-
nority leader of the House of Representa-
tives. 
(iii) One in consultation with the ma-
jority leader of the Senate. 
(iv) One in consultation with the mi-
nority leader of the Senate. 
(v) Three other members. 
(B) EX
OFFICIO
MEMBERS.—The Presi-
dent may appoint up to 4 Members of Congress 
(up to 2 from each House) as nonvoting ex offi-
cio members of the Commission. 
(2) 
CHAIRMAN
AND
VICE-CHAIRMAN.—The 
President shall appoint a chairman and vice-chair-
man from among the members of the Commission. 
(c) PERIOD OF APPOINTMENT; VACANCIES.—Mem-
bers shall be appointed for the life of the Commission. Any 
vacancy in the Commission shall not affect its powers, but 
shall be filled in the same manner as the original appoint-
ment. 
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167 
(d) INITIAL MEETING.—Not later than 30 days after 
the date on which all members of the Commission have 
been appointed, the Commission shall hold its first meet-
ing. 
(e) MEETINGS.—The Commission shall meet at the 
call of the chairman. 
(f) QUORUM.—A majority of the members of the 
Commission shall constitute a quorum, but a lesser num-
ber of members may hold hearings. 
SEC. 422. DUTIES OF THE COMMISSION. 
(a) DEFINITION.—The term ‘‘agency’’, as used in 
this section, has the meaning given the term ‘‘executive 
agency’’ under section 105 of title 5, United States Code. 
(b) IN GENERAL.—The Commission shall— 
(1) evaluate all agencies and programs within 
those agencies, using the criteria under subsection 
(c); and 
(2) submit to Congress— 
(A) a plan with recommendations of the 
agencies and programs that should be realigned 
or eliminated; and 
(B) proposed legislation to implement the 
plan under subparagraph (A), but shall be lim-
ited in content to matters directly related to the 
purpose of the Commission. 
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168 
(c) CRITERIA.— 
(1) COST EFFECTIVE.—Whether the agency or 
program as carried out by the agency is cost effec-
tive and achieves its stated purpose of goals. 
(2) MISSION.—The extent to which the pro-
gram has achieved or completed its intended pur-
pose. 
(3) DUPLICATIVE.—The extent to which the 
agency or program duplicates or conflicts with other 
Federal agencies, State and local government, or the 
private sector. 
(4) COORDINATION
WITH
STATE
AND
LOCAL 
GOVERNMENTS.—The extent to which the agency co-
ordinates effectively with State and local govern-
ments in performing the functions of the program. 
(5) PERFORMANCE.—The extent to which the 
program failed to meet its objectives or a national 
priority or purpose 
(6) MANAGEMENT STRUCTURE.—The extent to 
which changes in the management structure of the 
agency or program or its placement in the Executive 
Branch are needed to improve the overall efficiency, 
effectiveness, or accountability of Executive Branch 
operations. 
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169 
(7) NATIONAL
NEEDS.—The extent to which 
the program benefits special interest groups and 
does not meet a national priority or purpose. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Commission 
shall submit to the President and Congress a report 
that includes— 
(A) the plan described under subsection 
(b)(1) with supporting documentation for all 
recommendations; and 
(B) the proposed legislation described 
under subsection (b)(2). 
(2) USE OF SAVINGS.—The proposed legislation 
under paragraph (1)(B) shall provide that all funds 
saved by the implementation of the plan under para-
graph (1)(A) shall be used for deficit reduction. 
SEC. 423. POWERS OF THE COMMISSION. 
(a) HEARINGS AND SUBPOENA POWER.—The Com-
mission or, at its direction, any subcommittee or member 
of the Commission, may, for the purpose of carrying out 
this Act— 
(1) hold such hearings, sit and act at such 
times and places, take such testimony, receive such 
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170 
evidence, and administer such oaths as any member 
of the Commission considers advisable; 
(2) require, by subpoena or otherwise, the at-
tendance and testimony of such witnesses as any 
member of the Commission considers advisable; and 
(3) require, by subpoena or otherwise, the pro-
duction of such books, records, correspondence, 
memoranda, papers, documents, tapes, and other 
evidentiary materials relating to any matter under 
investigation by the Commission. 
(b) ENFORCEMENT OF SUBPOENAS.—The Commis-
sion may issue subpoenas as follows: 
(1) ISSUANCE.—Subpoenas shall only be issued 
pursuant to this section if approved by a vote of the 
Commission, shall bear the signature of the chair-
man of the Commission, and shall be served by a 
person or class of persons designated by the chair-
man for that purpose. 
(2) ENFORCEMENT.—In the case of contumacy 
or failure to obey a subpoena issued under sub-
section (a), the United States district court for the 
judicial district in which the subpoenaed person re-
sides, is served, or may be found, may issue an order 
requiring such person to appear at any designated 
place to testify or to produce documentary or other 
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171 
evidence. Any failure to obey the order of the court 
may be punished by the court as a contempt of that 
court. 
(3) LIMITATION ON ISSUANCE AND ENFORCE-
MENT.—Subpoenas may only be issued pursuant to 
this section to Federal agencies, Federal contractors, 
or persons or entities receiving Federal funds, and 
only for information or matter directly related to the 
purpose of the Commission. 
(c) INFORMATION FROM FEDERAL AGENCIES.—The 
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out this Act. Upon request of 
the chairman of the Commission, the head of such depart-
ment or agency shall furnish such information to the Com-
mission. 
(d) POSTAL SERVICES.—The Commission may use 
the United States mails in the same manner and under 
the same conditions as other departments and agencies of 
the Federal Government. 
SEC. 424. COMMISSION PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.— 
(1) NON-FEDERAL MEMBERS.—Except as pro-
vided under subsection (b), each member of the 
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172 
Commission who is not an officer or employee of the 
Federal Government shall not be compensated. 
(2) FEDERAL OFFICERS OR EMPLOYEES.—All 
members of the Commission who are officers or em-
ployees of the United States shall serve without com-
pensation in addition to that received for their serv-
ices as officers or employees of the United States. 
(b) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
regular places of business in the performance of services 
for the Commission. 
(c) STAFF.— 
(1) IN GENERAL.—The chairman of the Com-
mission may, without regard to the civil service laws 
and regulations, appoint and terminate an executive 
director and such other additional personnel as may 
be necessary to enable the Commission to perform 
its duties. The employment of an executive director 
shall be subject to confirmation by the Commission. 
(2) COMPENSATION.—Upon the approval of the 
chairman, the executive director may fix the com-
pensation of the executive director and other per-
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173 
sonnel without regard to chapter 51 and subchapter 
III of chapter 53 of title 5, United States Code, re-
lating to classification of positions and General 
Schedule pay rates, except that the rate of pay for 
the executive director and other personnel may not 
exceed the maximum rate payable for a position at 
GS–15 of the General Schedule under section 5332 
of such title. 
(3) PERSONNEL AS FEDERAL EMPLOYEES.— 
(A) IN GENERAL.—The executive director 
and any personnel of the Commission who are 
employees shall be employees under section 
2105 of title 5, United States Code, for pur-
poses of chapters 63, 81, 83, 84, 85, 87, 89, 
and 90 of that title. 
(B) MEMBERS OF COMMISSION.—Subpara-
graph (A) shall not be construed to apply to 
members of the Commission. 
(d) DETAIL
OF GOVERNMENT EMPLOYEES.—Any 
Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall 
be without interruption or loss of civil service status or 
privilege. 
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The chairman of the Commission may 
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174 
procure temporary and intermittent services under section 
3109(b) of title 5, United States Code, at rates for individ-
uals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of such title. 
SEC. 425. TERMINATION OF THE COMMISSION. 
The Commission shall terminate 90 days after the 
date on which the Commission submits the report under 
section 3(d). 
SEC. 426. CONGRESSIONAL CONSIDERATION OF REFORM 
PROPOSALS. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘implementation bill’’ means only 
a bill which is introduced as provided under sub-
section (b), and contains the proposed legislation in-
cluded in the report submitted to Congress under 
section 3, without modification; and 
(2) the term ‘‘calendar day’’ means a calendar 
day other than 1 on which either House is not in 
session because of an adjournment of more than 3 
days to a date certain. 
(b) INTRODUCTION; REFERRAL; AND REPORT
OR 
DISCHARGE.— 
(1) INTRODUCTION.—On the first calendar day 
on which both Houses are in session, on or imme-
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175 
diately following the date on which the report is sub-
mitted to Congress under section 3, a single imple-
mentation bill shall be introduced (by request)— 
(A) in the Senate by the majority leader of 
the Senate, for himself and the minority leader 
of the Senate, or by Members of the Senate 
designated by the majority leader and minority 
leader of the Senate; and 
(B) in the House of Representatives by the 
majority leader of the House of Representa-
tives, for himself and the minority leader of the 
House of Representatives, or by Members of the 
House of Representatives designated by the 
Speaker and minority leader of the House of 
Representatives. 
(2) REFERRAL.—The implementation bills in-
troduced under paragraph (1) shall be referred to 
any appropriate committee of jurisdiction in the 
Senate and any appropriate committee of jurisdic-
tion in the House of Representatives. A committee 
to which an implementation bill is referred under 
this paragraph may report such bill to the respective 
House without substantive revision. 
(3) REPORT OR DISCHARGE.—If a committee to 
which an implementation bill is referred has not re-
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176 
ported such bill by the end of the 30th calendar day, 
excepting Saturdays and Sundays, after the date of 
the introduction of such bill, such committee shall be 
immediately discharged from further consideration 
of such bill, and upon being reported or discharged 
from the committee, such bill shall be placed on the 
appropriate calendar. 
(c) FLOOR CONSIDERATION.— 
(1) IN
GENERAL.—When the committee to 
which an implementation bill is referred has re-
ported, or has been discharged under subsection 
(b)(3), it is at any time thereafter in order (even 
though a previous motion to the same effect has 
been disagreed to) for any Member of the respective 
House to move to proceed to the consideration of the 
implementation bill, and all points of order against 
such legislation and against its consideration) are 
waived, except those arising under sections 302(f) 
and 311 of the Congressional Budget Act of 1974. 
The motion is highly privileged in the House of Rep-
resentatives and is privileged in the Senate and is 
not debatable. The motion is not subject to amend-
ment, or to a motion to postpone, or motion to pro-
ceed to the consideration of other business. A motion 
to reconsider the vote by which the motion is agreed 
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177 
to or disagreed to shall not be in order. If a motion 
to proceed to the consideration of the implementa-
tion bill is agreed to, it shall remain the unfinished 
business of the respective House until disposed of. 
(2) COST ESTIMATE.—An implementation bill 
may not be considered pursuant to paragraph (1) 
unless a cost estimate has been prepared for such 
bill by the Congressional Budget Office and been 
publicly available for 72 hours prior to consider-
ation. 
(3) AMENDMENTS.—An implementation bill 
may not be amended in the Senate or the House of 
Representatives. 
(4) DEBATE.—Debate on the implementation 
bill, and on all debatable motions and appeals in 
connection therewith, shall be limited to not more 
than 10 hours, which shall be divided equally be-
tween those favoring and those opposing the resolu-
tion. A motion further to limit debate is in order and 
not debatable. An amendment to, or a motion to 
postpone, or a motion to proceed to the consider-
ation of other business, or a motion to recommit the 
implementation bill is not in order. A motion to re-
consider the vote by which the implementation bill is 
agreed to or disagreed to is not in order. 
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178 
(5) VOTE
ON
FINAL
PASSAGE.—Immediately 
following the conclusion of the debate on an imple-
mentation bill, and a single quorum call at the con-
clusion of the debate if requested in accordance with 
the rules of the appropriate House, the vote on final 
passage of the implementation bill shall occur. 
(6) RULINGS OF THE CHAIR ON PROCEDURE.— 
Appeals from the decisions of the Chair relating to 
the application of the rules of the Senate or the 
House of Representatives, as the case may be, to the 
procedure relating to an implementation bill shall be 
decided without debate. 
(d) COORDINATION
WITH
ACTION
BY
OTHER 
HOUSE.—If, before the passage by 1 House of an imple-
mentation bill of that House, that House receives from 
the other House an implementation bill, then the following 
procedures shall apply: 
(1) NON-REFERRAL.—The implementation bill 
of the other House shall not be referred to a com-
mittee. 
(2) VOTE ON BILL OF OTHER HOUSE.—With 
respect to an implementation bill of the House re-
ceiving the implementation bill— 
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179 
(A) the procedure in that House shall be 
the same as if no implementation bill had been 
received from the other House; but 
(B) the vote on final passage shall be on 
the implementation bill of the other House. 
(e) RULES OF THE SENATE AND THE HOUSE OF 
REPRESENTATIVES.—This section is enacted by Con-
gress— 
(1) as an exercise of the rulemaking power of 
the Senate and House of Representatives, respec-
tively, and as such it is deemed a part of the rules 
of each House, respectively, but applicable only with 
respect to the procedure to be followed in that 
House in the case of an implementation bill de-
scribed in subsection (a), and it supersedes other 
rules only to the extent that it is inconsistent with 
such rules; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as 
relating to the procedure of that House) at any time, 
in the same manner, and to the same extent as in 
the case of any other rule of that House. 
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180 
SEC. 427. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums 
as may be necessary for each of fiscal years 2010 through 
2013 for carrying out this Act. 
TITLE V—TRANSPARENCY IN 
BUDGETING 
SEC. 500. SHORT TITLE. 
This title may be cited as the ‘‘Transparency in 
Budgeting Act of 2009’’. 
Subtitle 
A—Accrual 
Funding 
of 
Pensions and Retirement Pay 
for Federal Employees and Uni-
formed Services Personnel 
SEC. 501. CIVIL SERVICE RETIREMENT SYSTEM. 
(a) CIVIL SERVICE RETIREMENT AND DISABILITY 
FUND.—Chapter 83 of title 5, United States Code, is 
amended— 
(1) in section 8331— 
(A) in paragraph (17)— 
(i) by striking ‘‘normal cost’’ and in-
serting ‘‘normal cost percentage’’; and 
(ii) by inserting ‘‘and standards 
(using dynamic assumptions)’’ after ‘‘prac-
tice’’; 
(B) by amending paragraph (18) to read 
as follows: 
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181 
‘‘(18) ‘Fund balance’ means the current net as-
sets of the Fund available for payment of benefits, 
as determined by the Office in accordance with ap-
propriate accounting standards, but does not include 
any amount attributable to— 
‘‘(A) the Federal Employees’ Retirement 
System; or 
‘‘(B) contributions made under the Federal 
Employees’ Retirement Contribution Temporary 
Adjustment Act of 1983 by or on behalf of any 
individual who became subject to the Federal 
Employees’ Retirement System;’’ 
(C) by amending paragraph (19) to read 
as follows: 
‘‘(19) ‘accrued liability’ means the estimated ex-
cess of the present value of all benefits payable from 
the Fund to employees and Members, and former 
employees and Members, subject to this subchapter, 
and their survivors, over the present value of deduc-
tions to be withheld from the future basic pay of em-
ployees and Members currently subject to this sub-
chapter and of future agency contributions to be 
made in their behalf;’’ 
(D) in paragraph (27) by striking ‘‘and’’ 
at the end; 
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182 
(E) in paragraph (28) by striking the pe-
riod at the end and inserting a semicolon; and 
(F) by adding at the end the following 
paragraphs: 
‘‘(29) ‘dynamic assumptions’ means economic 
assumptions that are used in determining actuarial 
costs and liabilities of a retirement system and in 
anticipating the effects of long-term future— 
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation; and 
‘‘(30) ‘unfunded liability’ means the estimated 
excess of— 
‘‘(A) the actuarial present value of all fu-
ture benefits payable from the Fund under this 
subchapter based on the service of current or 
former employees or Members, over 
‘‘(B) the sum of— 
‘‘(i) the actuarial present value of de-
ductions to be withheld from the future 
basic pay of employees and Members cur-
rently subject to this chapter pursuant to 
section 8334; 
‘‘(ii) the actuarial present value of the 
future contributions to be made pursuant 
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183 
to section 8334 with respect to employees 
and Members currently subject to this sub-
chapter; 
‘‘(iii) the Fund balance, as defined in 
paragraph (18), as of the date the un-
funded liability is determined; and 
‘‘(iv) any other appropriate amount, 
as determined by the Office of Personnel 
Management in accordance with generally 
accepted actuarial practices and prin-
ciples.’’; 
(2) in section 8334— 
(A) in subsection (a)(1)— 
(i) by striking the last two sentences; 
(ii) by redesignating that subsection, 
as so amended, as (a)(1)(A); and 
(iii) by adding at the end the fol-
lowing new subparagraphs: 
‘‘(B) Except as provided in subparagraph (E), each 
employing agency having any employees or Members sub-
ject to subparagraph (A) shall contribute from amounts 
available for salaries and expenses an amount equal to the 
sum of— 
‘‘(i) the product of— 
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184 
‘‘(I) the normal cost percentage, as deter-
mined for employees (other than employees cov-
ered by clause (ii)), multiplied by 
‘‘(II) the aggregate amount of basic pay 
payable by the agency, for the period involved, 
to employees (under subclause (I)) who are 
within such agency; and 
‘‘(ii) the product of— 
‘‘(I) the normal cost percentage, as deter-
mined for Members, Congressional employees, 
law enforcement officers, firefighters, air traffic 
controllers, bankruptcy judges, Court of Fed-
eral Claims judges, United States magistrates, 
judges of the United States Court of Appeals 
for the Armed Forces, members of the Capitol 
Police, nuclear materials couriers, and members 
of the Supreme Court Police, multiplied by 
‘‘(II) the aggregate amount of basic pay 
payable by the agency for the period involved, 
to employees and Members (under subclause 
(I)) who are within such agency. 
‘‘(C) In determining the normal cost percentage to 
be applied under subparagraph (B), amounts provided for 
under subparagraph (A) shall be taken into account. 
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185 
‘‘(D) Contributions under this paragraph shall be 
paid— 
‘‘(i) in the case of law enforcement officers, 
firefighters, 
air 
traffic 
controllers, 
bankruptcy 
judges, Court of Federal Claims judges, United 
States magistrates, judges of the United States 
Court of Appeals for the Armed Forces, members of 
the Supreme Court Police, nuclear materials couriers 
and other employees, from the appropriations or 
fund used to pay such law enforcement officers, fire-
fighters, air traffic controllers, bankruptcy judges, 
Court of Federal Claims judges, United States mag-
istrates, judges of the United States Court of Ap-
peals for the Armed Forces, members of the Su-
preme Court Police, nuclear materials couriers and 
other employees, respectively; 
‘‘(ii) in the case of elected officials, from an ap-
propriation or fund available for payment of other 
salaries of the same office or establishment; and 
‘‘(iii) in the case of employees of the legislative 
branch paid by the Clerk of the House of Represent-
atives, from the contingent fund of the House of 
Representatives. 
‘‘(E) In the case of the United States Postal Service, 
the Metropolitan Washington Airports Authority, and the 
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186 
government of the District of Columbia, an amount equal 
to that withheld under subparagraph (A) shall be contrib-
uted from the appropriation or fund used to pay the em-
ployee.’’; 
(B) in subsection (k)— 
(i) in paragraph (1)— 
(I) in subparagraph (A) by strik-
ing ‘‘the first sentence of subsection 
(a)(1) of this section’’ and inserting 
‘‘subsection (a)(1)(A)’’; and 
(II) by amending subparagraph 
(B) to read as follows: 
‘‘(B) the amount of the contribution under sub-
section (a)(1)(B) shall be the amount contributed 
under such subsection if this subsection had not 
been enacted.’’ 
(ii) in paragraph (2)(C)(iii) by strik-
ing ‘‘the first sentence of subsection 
(a)(1)’’ 
and 
inserting 
‘‘subsection 
(a)(1)(A)’’; and 
(3) in section 8348— 
(A) by repealing subsection (f); 
(B) by amending subsection (g) to read as 
follows: 
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187 
‘‘(g)(1)(A) Not later than June 30, 2011, the Office 
of the Actuary shall determine the unfunded liability of 
the Fund, as of September 30, 2010, attributable to bene-
fits payable under this chapter and make recommenda-
tions regarding its liquidation. After considering such rec-
ommendations, the Office shall establish an amortization 
schedule, including a series of annual installments com-
mencing October 1, 2011, which provides for the liquida-
tion of such liability by October 1, 2049. 
‘‘(B) The Office shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2010, 
through the fiscal year ending September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2049. 
‘‘(C) The Office shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
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188 
‘‘(D) Amortization schedules established under this 
paragraph shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the 
Civil Service Retirement System. 
‘‘(2) At the beginning of each fiscal year, beginning 
on October 1, 2011, the Office shall notify the Secretary 
of the Treasury of the amount of the first installment 
under the most recent amortization schedule established 
under paragraph (1). The Secretary shall credit that 
amount to the Fund, as a Government contribution, out 
of any money in the Treasury of the United States not 
otherwise appropriated. 
‘‘(3) For the purpose of carrying out paragraph (1) 
with respect to any fiscal year, the Office may— 
‘‘(A) require the Board of Actuaries of the Civil 
Service Retirement System to make actuarial deter-
minations and valuations, make recommendations, 
and maintain records in accordance with section 
8347(f); and 
‘‘(B) use the latest actuarial determinations 
and valuations made by such Board of Actuaries.’’; 
(C) in subsections (h), (i), and (m) by 
striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 
each place it appears; and 
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189 
(D) by adding at the end the following new 
subsection: 
‘‘(n) Under regulations prescribed by the Office, the 
head of an agency may request reconsideration of any 
amount determined to be payable with respect to such 
agency under section 8334(a)(1)(B)–(D). Any such re-
quest shall be referred to the Board of Actuaries of the 
Civil Service Retirement System. The Board of Actuaries 
shall review the computations of the Office and may make 
any adjustment with respect to any such amount which 
the Board determines appropriate. A determination by the 
Board of Actuaries under this subsection shall be final.’’. 
(b) GOVERNMENT CONTRIBUTIONS.—Section 8423 
of title 5, United States Code, is amended— 
(1) in subsection (a)(2) by striking ‘‘section 
8422’’ and inserting ‘‘section 8422(a)’’; and 
(2) in subsection (b)(2) by striking ‘‘equal an-
nual installments’’ and inserting ‘‘annual install-
ments set in accordance with generally accepted ac-
tuarial practices and principles’’. 
SEC. 502. CENTRAL INTELLIGENCE AGENCY RETIREMENT 
AND DISABILITY SYSTEM. 
(a) Section 101 of the Central Intelligence Agency 
Retirement Act (50 U.S.C. 2001) is amended— 
(1) in paragraph (5), to read as follows: 
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‘‘(5) UNFUNDED
LIABILITY.—The term ‘un-
funded liability’ means the estimated excess of— 
‘‘(A) the actuarial present value of all fu-
ture benefits payable from the Fund under title 
II of this Act based on the service of current 
or former participants, over 
‘‘(B) the sum of— 
‘‘(i) the actuarial present value of de-
ductions to be withheld from the future 
basic pay of participants currently subject 
to title II of this Act pursuant to section 
211; 
‘‘(ii) the actuarial present value of the 
future contributions to be made pursuant 
to section 211 with respect to participants 
currently subject to title II of this Act; 
‘‘(iii) the Fund balance, as defined in 
paragraph (4), as of the date the unfunded 
liability is determined; and 
‘‘(iv) any other appropriate amount, 
as determined by the Director in accord-
ance with generally accepted actuarial 
practices and principles.’’; 
(2) in paragraph (6)— 
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(A) by striking ‘‘ ‘normal cost’ ’’ and in-
serting ‘‘ ‘normal cost percentage’ ’’; and 
(B) by inserting ‘‘and standards (using dy-
namic assumptions)’’ after ‘‘practice’’; and 
(3) by adding at the end the following para-
graph: 
‘‘(10) DYNAMIC ASSUMPTIONS.—The term ‘dy-
namic assumptions’ means economic assumptions 
that are used in determining actuarial costs and li-
abilities of a retirement system and in anticipating 
the effects of long-term future— 
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation.’’. 
(b) Section 202 of such Act (50 U.S.C. 2012) is 
amended by adding at the end the following: ‘‘The Fund 
is appropriated for the payment of benefits as provided 
by this title.’’. 
(c) Section 211(a)(2) of such Act (50 U.S.C. 
2021(a)(2)) is amended to read as follows: 
‘‘(2) AGENCY
CONTRIBUTIONS.—The Agency 
shall contribute to the Fund the amount computed 
in a manner similar to that used under section 
8334(a) of title 5, United States Code, pursuant to 
determinations of the normal cost percentage of the 
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192 
Central Intelligence Agency Retirement and Dis-
ability System by the Director. Contributions under 
this paragraph shall be paid from amounts available 
for salaries and expenses.’’. 
(d) Section 261 of such Act (50 U.S.C. 2091) is 
amended— 
(1) by striking subsections (c), (d), and (e); and 
(2) by inserting after subsection (b) the fol-
lowing new subsections: 
‘‘(c)(1) Not later than June 30, 2011, the Director 
shall cause to be made actuarial valuations of the Fund 
that determine the unfunded liability of the Fund, as of 
September 30, 2010, attributable to benefits payable 
under this title and make recommendations regarding its 
liquidation. After considering such recommendations, the 
Director shall establish an amortization schedule, includ-
ing a series of annual installments commencing October 
1, 2011, which provides for the liquidation of such liability 
by October 1, 2049. 
‘‘(2) The Director shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2010, 
through the fiscal year ending September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
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193 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2049. 
‘‘(3) The Director shall redetermine the unfunded li-
ability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
‘‘(4) Amortization schedules established under this 
subsection shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the 
Civil Service Retirement and Disability System. 
‘‘(d) At the beginning of each fiscal year, beginning 
on October 1, 2011, the Director shall notify the Secretary 
of the Treasury of the amount of the first installment 
under the most recent amortization schedule established 
under subsection (c). The Secretary shall credit that 
amount to the Fund, as a Government contribution, out 
of any money in the Treasury of the United States not 
otherwise appropriated. For the purposes of section 504 
of the National Security Act of 1947, this amount shall 
be considered authorized.’’. 
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194 
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EM-
PLOYEES DESIGNATED UNDER SECTION 302. 
‘‘(a) In addition to other government contributions 
required by law, the Agency shall contribute to the Civil 
Service Retirement and Disability Fund (hereinafter in 
this section referred to as the ‘Fund’) amounts calculated 
in accordance with section 8423 of title 5, United States 
Code, based on the projected number of employees to be 
designated pursuant to section 302 of this Act. In addi-
tion, the Agency, in a manner similar to that established 
for employee contributions to the Fund by section 8422 
of title 5, United States Code, will contribute an amount 
equal to the difference between that contributed by the 
number of employees projected to be designated under sec-
tion 302 and the amounts that are actually being deducted 
and contributed from the basic pay of an equal number 
of employees pursuant to section 8422. The amounts of 
the Agency’s contributions under this subsection shall be 
determined by the Director of the Office of Personnel 
Management, in consultation with the Director, and shall 
be paid by the Agency from funds available for salaries 
and expenses. Agency employees designated pursuant to 
section 302 of this Act shall, commencing with such des-
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195 
ignation, have deducted from their basic pay the full 
amount required by section 8422 of title 5, United States 
Code, and such deductions shall be contributed to the 
Fund. 
‘‘(b)(1) The Director of the Office of Personnel Man-
agement, in consultation with the Director, shall deter-
mine the total amount of unpaid contributions (govern-
ment and employee contributions) and interest attrib-
utable to the number of individuals employed with the 
Agency on September 30, 2011, who are projected to be 
designated under section 302 of this Act, but are not yet 
designated under that section as of that date. The amount 
shall be referred to as the section 302 unfunded liability. 
‘‘(2) Not later than June 30, 2012, the Director of 
the Office of Personnel Management, in consultation with 
the Director, shall establish an amortization schedule, set-
ting forth a series of annual installments commencing 
September 30, 2012, which provides for the liquidation of 
the section 302 unfunded liability by September 30, 2019. 
‘‘(3) At the end of each fiscal year, beginning on Sep-
tember 30, 2012, the Director shall notify the Secretary 
of the Treasury of the amount of the annual installment 
under the amortization schedule established under para-
graph (2) of this subsection. Before closing the accounts 
for that fiscal year, the Secretary shall credit that amount 
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196 
to the Fund, out of any money in the Treasury of the 
United States not otherwise appropriated. 
‘‘(c) Amounts paid by the Agency pursuant to this 
section are deemed to be specifically authorized by the 
Congress for the purposes of section 504 of the National 
Security Act of 1947.’’. 
(2) The table of contents of such Act is amended by 
inserting after the item relating to section 307 the fol-
lowing new item: 
‘‘Sec. 308. Full funding of retiree costs for employees designated under section 
302.’’. 
SEC. 503. FOREIGN SERVICE RETIREMENT AND DISABILITY 
SYSTEM. 
(a) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
804 (22 U.S.C. 4044)— 
(1) by amending paragraph (5) to read as fol-
lows: 
‘‘(5) ‘normal cost percentage’ means the entry- 
age normal cost computed in accordance with gen-
erally accepted actuarial practice and standards 
(using dynamic assumptions) and expressed as a 
level percentage of aggregate basic pay.’’; 
(2) by amending paragraph (14) to read as fol-
lows: 
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‘‘(14) ‘unfunded liability’ means the estimated 
excess of— 
‘‘(A) the actuarial present value of all fu-
ture benefits payable from the Fund under this 
part based on the service of current or former 
participants, over 
‘‘(B) the sum of— 
‘‘(i) the actuarial present value of de-
ductions to be withheld from the future 
basic pay of participants currently subject 
to this part pursuant to section 805; 
‘‘(ii) the actuarial present value of the 
future contributions to be made pursuant 
to section 805 with respect to participants 
currently subject to this part; 
‘‘(iii) the Fund balance, as defined in 
paragraph (7), as of the date the unfunded 
liability is determined, excluding any 
amount attributable to the Foreign Service 
Pension System, or contributions made 
under the Federal Employees’ Retirement 
Contribution Temporary Adjustment Act 
of 1983 by or on behalf of any individual 
who became subject to the Foreign Service 
Pension System; and 
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198 
‘‘(iv) any other appropriate amount, 
as determined by the Secretary of the 
Treasury in accordance with generally ac-
cepted actuarial practices and principles.’’ 
(3)(A) by striking the period at the end of 
paragraph (15) and inserting ‘‘; and’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(16) ‘dynamic assumptions’ means economic 
assumptions that are used in determining actuarial 
costs and liabilities of a retirement system and in 
anticipating the effects of long-term future— 
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation.’’. 
(b) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
852 (22 U.S.C. 4071a)— 
(1) in paragraph (4)— 
(A) by striking ‘‘normal cost’’ and insert-
ing ‘‘normal cost percentage’’; and 
(B) by striking ‘‘by the Secretary of 
State’’; 
(2) in paragraph (7)— 
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199 
(A) by striking ‘‘supplemental’’ and insert-
ing ‘‘unfunded’’; 
(B) in subparagraph (B)(i) by striking 
‘‘(I)’’ and ‘‘and (II) contributions for past civil-
ian and military service’’; and 
(C) in subparagraph (B)(ii) by inserting 
before the semicolon ‘‘with respect to partici-
pants currently subject to this part’’; and 
(3)(A) at the end of paragraph (8) by striking 
‘‘and’’; 
(B) at the end of paragraph (9) by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(10) ‘dynamic assumptions’ means economic 
assumptions that are used in determining actuarial 
costs and liabilities of a retirement system and in 
anticipating the effects of long-term future— 
‘‘(A) investment yields; 
‘‘(B) increases in rates of basic pay; and 
‘‘(C) rates of price inflation.’’. 
(c) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
805(a)(1) (22 U.S.C. 4045(a))— 
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200 
(1) by striking the second sentence; 
(2) (by redesignating that subsection, as so 
amended, as (a)(1)(A); 
(3) by redesignating the last sentence of that 
subsection, as so amended as (a)(1)(C); 
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) Each employing agency having par-
ticipants shall contribute to the Fund the 
amount computed in a manner similar to that 
used under section 8334(a) of title 5, United 
States Code, pursuant to determinations of the 
normal cost percentage of the Foreign Service 
Retirement and Disability System. Contribu-
tions under this subparagraph shall be paid 
from the appropriations or fund used for pay-
ment of the salary of the participant.’’; 
(5) in subsection (a)(2)(A) by striking ‘‘An 
equal amount shall be contributed by the Depart-
ment’’ and inserting in its place ‘‘Each employing 
agency having participants shall contribute to the 
Fund the amount computed in a manner similar to 
that used under section 8334(a) of title 5, United 
States Code, pursuant to determinations of the nor-
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201 
mal cost percentage of the Foreign Service Retire-
ment and Disability System’’; and 
(6) in subsection (a)(2)(B) by striking ‘‘An 
equal amount shall be contributed by the Depart-
ment’’ and inserting in its place ‘‘Each employing 
agency having participants shall contribute to the 
Fund from amounts available for salaries and ex-
penses the amount computed in a manner similar to 
that used under section 8334(a) of title 5, United 
States Code, pursuant to determinations of the nor-
mal cost percentage of the Foreign Service Retire-
ment and Disability System’’. 
(d) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended by repeal-
ing sections 821 and 822 (22 U.S.C. 4061 and 4062) and 
by adding the following new section: 
‘‘§ 821. Unfunded liability 
‘‘(a)(1) Not later than June 30, 2011, the Secretary 
of State shall cause to be made actuarial valuations of the 
Fund that determine the unfunded liability of the Fund, 
as of September 30, 2010, attributable to benefits payable 
under this subchapter and make recommendations regard-
ing its liquidation. After considering such recommenda-
tions, the Secretary of State shall establish an amortiza-
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202 
tion schedule, including a series of annual installments 
commencing October 1, 2010, which provides for the liq-
uidation of such liability by October 1, 2049. 
‘‘(2) The Secretary of State shall redetermine the un-
funded liability of the Fund as of the close of the fiscal 
year, for each fiscal year beginning after September 30, 
2010, through the fiscal year ending September 30, 2044, 
and shall establish a new amortization schedule, including 
a series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2049. 
‘‘(3) The Secretary of State shall redetermine the un-
funded liability of the Fund as of the close of the fiscal 
year for each fiscal year beginning after September 30, 
2044, and shall establish a new amortization schedule, in-
cluding a series of annual installments commencing on Oc-
tober 1 of the second subsequent fiscal year, which pro-
vides for the liquidation of such liability over five years. 
‘‘(4) Amortization schedules established under this 
subsection shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the 
Foreign Service Retirement and Disability System. 
‘‘(b) At the beginning of each fiscal year, beginning 
on October 1, 2011, the Secretary of State shall notify 
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203 
the Secretary of the Treasury of the amount of the first 
installment under the most recent amortization schedule 
established under paragraph (1). The Secretary of the 
Treasury shall credit that amount to the Fund, as a Gov-
ernment contribution, out of any money in the Treasury 
of the United States not otherwise appropriated.’’. 
(e) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
857(b)(1) (22 U.S.C. 4071f(b)(1)) by striking ‘‘equal an-
nual installments’’ and inserting ‘‘annual installments set 
in accordance with generally accepted actuarial practices 
and principles’’. 
(f) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
859 (22 U.S.C. 4071h) by adding ‘‘percentage’’ after 
‘‘normal cost’’. 
(g) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
802 (22 U.S.C. 4042) by adding at the end the following: 
‘‘The Fund is appropriated for the payment of benefits 
as provided by this subchapter.’’. 
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204 
(h) Chapter 8 of title I of the Foreign Service Act 
of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 
94 Stat. 2071, as amended, is further amended in section 
818 (22 U.S.C. 4058) by striking ‘‘System’’ and inserting 
‘‘Systems under this subchapter’’. 
SEC. 504. PUBLIC HEALTH SERVICE COMMISSIONED CORPS 
RETIREMENT SYSTEM. 
(a) IN GENERAL.—Title II of the Public Health Serv-
ice Act (42 U.S.C. 202 et seq.) is amended by adding at 
the end the following new part: 
‘‘PART C—PUBLIC HEALTH SERVICE COMMISSIONED 
CORPS RETIREMENT SYSTEM 
‘‘ESTABLISHMENT AND PURPOSE OF FUND 
‘‘SEC. 251. There is established on the books of the 
Treasury a fund to be known as the Public Health Service 
Commissioned Corps Retirement Fund (hereinafter in this 
part referred to as the ‘Fund’), which shall be adminis-
tered by the Secretary. The Fund shall be used for the 
accumulation of funds in order to finance on an actuarially 
sound basis liabilities of the Department of Health and 
Human Services for benefits payable on account of retire-
ment, disability, or death to commissioned officers of the 
Public Health Service and to their survivors pursuant to 
part A of this title. 
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205 
‘‘ASSETS OF THE FUND 
‘‘SEC. 252. There shall be deposited into the Fund 
the following, which shall constitute the assets of the 
Fund: 
‘‘(1) Amounts paid into the Fund under section 
255. 
‘‘(2) Any return on investment of the assets of 
the Fund. 
‘‘(3) Amounts transferred into the Fund pursu-
ant to section 504(c) of the Spending, Deficit, and 
Debt Control Act of 2009. 
‘‘PAYMENT FROM THE FUND 
‘‘SEC. 253. There shall be paid from the Fund bene-
fits payable on account of retirement, disability, or death 
to commissioned officers of the Public Health Service and 
to their survivors pursuant to part A of this title. 
‘‘DETERMINATION OF CONTRIBUTIONS TO THE FUND 
‘‘SEC. 254. (a)(1) Not later than June 30, 2011, the 
Secretary shall determine the unfunded liability of the 
Fund attributable to service performed as of September 
30, 2010, which is ‘active service’ for the purpose of sec-
tion 212. The Secretary shall establish an amortization 
schedule, including a series of annual installments com-
mencing October 1, 2011, which provides for the liquida-
tion of such liability by October 1, 2049. 
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206 
‘‘(2) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2010, 
through the fiscal year ending September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability by October 1, 2049. 
‘‘(3) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
‘‘(b) The Secretary shall determine each fiscal year, 
in sufficient time for inclusion in the budget request for 
the following fiscal year, the total amount of Department 
of Health and Human Services contributions to be made 
to the Fund during the fiscal year under section 255(a). 
That amount shall be the sum of— 
‘‘(1) the product of— 
‘‘(A) the current estimate of the value of 
the single level percentage of basic pay to be de-
termined under subsection (c)(1) at the time of 
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the most recent actuarial valuation under sub-
section (c); and 
‘‘(B) the total amount of basic pay ex-
pected to be paid during that fiscal year to 
commissioned officers of the Public Health 
Service on active duty (other than active duty 
for training); and 
‘‘(2) the product of— 
‘‘(A) the current estimate of the value of 
the single level percentage of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37, United States Code) to be determined 
under subsection (c)(2) at the time of the most 
recent actuarial valuation under subsection (c); 
and 
‘‘(B) the total amount of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37, United States Code) expected to be 
paid during the fiscal year to commissioned of-
ficers of the Reserve Corps of the Public Health 
Service (other than officers on full-time duty 
other than for training) who are not otherwise 
described in subparagraph (A). 
‘‘(c) Not less often than every four years thereafter 
(or by the fiscal year end prior to the effective date of 
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208 
any statutory change affecting benefits payable on account 
of retirement, disability, or death to commissioned officers 
or their survivors), the Secretary shall carry out an actu-
arial valuation of benefits payable on account of retire-
ment, disability, or death to commissioned officers of the 
Public Health Service and to their survivors pursuant to 
part A of this title. Each such actuarial valuation shall 
be signed by an enrolled Actuary and shall include— 
‘‘(1) a determination (using the aggregate 
entry-age normal cost method) of a single level per-
centage of basic pay for commissioned officers of the 
Public Health Service on active duty (other than ac-
tive duty for training); and 
‘‘(2) a determination (using the aggregate 
entry-age normal cost method) of a single level per-
centage of basic pay and of compensation (paid pur-
suant to section 206 of title 37, United States Code) 
of commissioned officers of the Reserve Corps of the 
Public Health Service (other than officers on full 
time duty other than for training) who are not oth-
erwise described in paragraph (1). 
‘‘(d) All determinations under this section shall be in 
accordance with generally accepted actuarial principles 
and practices and, where appropriate, shall follow the gen-
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209 
eral pattern of methods and assumptions approved by the 
Department of Defense Retirement Board of Actuaries. 
‘‘(e) The Secretary shall provide for the keeping of 
such records as are necessary for determining the actu-
arial status of the Fund. 
‘‘PAYMENTS INTO THE FUND 
‘‘SEC. 255. (a) From amounts available to the De-
partment of Health and Human Services for salaries and 
expenses, the Secretary shall pay into the Fund at the end 
of each month the amount that is the sum of— 
‘‘(1) the product of— 
‘‘(A) the level percentage of basic pay de-
termined using all the methods and assump-
tions approved for the most recent (as of the 
first day of the current fiscal year) actuarial 
valuation under sections 254(C)(1) (except that 
any statutory change affecting benefits payable 
on account of retirement, disability, or death to 
commissioned officers or their survivors that is 
effective after the date of that valuation and on 
or before the first day of the current fiscal year 
shall be used in such determination); and 
‘‘(B) the total amount of basic pay accrued 
for that month by commissioned officers of the 
Public Health Service on active duty (other 
than active duty for training); and 
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210 
‘‘(2) the product of— 
‘‘(A) the level percentage of basic pay and 
of compensation (paid pursuant to section 206 
of title 37, United States Code) determined 
using all the methods and assumptions ap-
proved for the most recent (as of the first day 
of the current fiscal year) actuarial valuation 
under section 254(C)(2) (except that any statu-
tory change affecting benefits payable on ac-
count of retirement, disability, or death to com-
missioned officers or their survivors that is ef-
fective after the date of that valuation and on 
or before the first day of the current fiscal year 
shall be used in such determinations); and 
‘‘(B) the total amount of basic pay and of 
compensation (paid pursuant to section 206 of 
title 37, United States Code) accrued for that 
month by commissioned officers of the Reserve 
Corps of the Public Health Service (other than 
officers on full-time duty other than for train-
ing). 
‘‘(b) At the beginning of each fiscal year, beginning 
on October 1, 2011, the Secretary shall certify to the Sec-
retary of the Treasury the amount of the first installment 
under the most recent amortization schedule established 
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211 
under section 254(a). The Secretary of the Treasury shall 
pay into the Fund from the General Fund of the Treasury 
the amount so certified. Such payment shall be the con-
tribution to the Fund for that fiscal year. 
‘‘INVESTMENTS OF ASSETS OF FUND 
‘‘SEC. 256. The Secretary may request the Secretary 
of the Treasury to invest such portion of the Fund as is 
not, in the judgment of the Secretary, required to meet 
the current needs of the Fund. Such investments shall be 
made by the Secretary of the Treasury in public debt secu-
rities with maturities suitable to the needs of the Fund, 
as determined by the Secretary, 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 cred-
ited to and form a part of the Fund. 
‘‘IMPLEMENTATION YEAR EXCEPTIONS 
‘‘SEC. 257. (a) To avoid funding shortfalls in the first 
year should formal actuarial determinations not be avail-
able in time for budget preparation, the amounts used in 
the first year in sections 255(a)(1)(A) and 255(a)(2)(A) 
shall be set equal to those estimates in sections 
254(b)(1)(A) and 254(b)(2)(A) if final determinations are 
not available. The original unfunded liability as defined 
in section 254(a) shall include an adjustment to correct 
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212 
for this difference between the formal actuarial determina-
tions and the estimates in sections 254(b)(1)(A) and 
254(b)(2)(A).’’. 
(b) CONFORMING AMENDMENTS.—Section 214 of the 
Public Health Service Act (42 U.S.C. 215) is amended 
by adding at the end the following new subsection: 
‘‘(e) The Secretary shall condition any detail under 
subsection (a), (b), or (c) upon the agreement of the exec-
utive department, State, subdivision, Committee of the 
Congress, or institution concerned to pay to the Depart-
ment of Health and Human Services, in advance or by 
way of reimbursement, for the full cost of the detail in-
cluding that portion of the contributions under section 
255(a) that is attributable to the detailed personnel.’’. 
(c) TRANSFER OF APPROPRIATIONS.—There shall be 
transferred on October 1, 2012, into the fund established 
under section 251 of the Public Health Service Act, as 
added by subsection (a), any obligated or unobligated bal-
ances of appropriations made to the Department of Health 
and Human Services that are currently available for bene-
fits payable on account of retirement, disability, or death 
to commissioned officers of the Public Health Service and 
to their survivors pursuant to part A of title II of the Pub-
lic Health Service Act, and amounts so transferred shall 
be part of the assets of the Fund. 
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213 
SEC. 505. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION COMMISSIONED OFFICER CORPS 
RETIREMENT SYSTEM. 
(a) IN GENERAL.—The National Oceanic and Atmos-
pheric Administration Commissioned Officer Corps Act of 
2002 (title II of Public Law 107–372) is amended by in-
serting after section 246 (33 U.S.C. 3046) the following 
new section: 
‘‘SEC. 246A NATIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION COMMISSIONED OFFICER CORPS 
RETIREMENT SYSTEM. 
‘‘(a) ESTABLISHMENT
AND PURPOSE
OF NOAA 
COMMISSIONED OFFICER CORPS RETIREMENT FUND.— 
‘‘(1) There is established on the books of the Treas-
ury a fund to be known as the National Oceanic and At-
mospheric Administration Commissioned Officer Corps 
Retirement Fund (hereinafter in this section referred to 
as the ‘Fund’), which shall be administered by the Sec-
retary. The Fund shall be used for the accumulation of 
funds in order to finance on an actuarially sound basis 
liabilities of the Department of Commerce under military 
retirement and survivor benefit programs for the commis-
sioned officers corps. 
‘‘(2) The term ‘military retirement and survivor ben-
efit program’ means— 
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214 
‘‘(A) the provisions of this title and title 10, 
United States Code, creating entitlement to, or de-
termining, the amount of retired pay; 
‘‘(B) the programs under the jurisdiction of the 
Department of Defense providing annuities for sur-
vivors and members and former members of the 
Armed Forces, including chapter 73 of title 10, sec-
tion 4 of Public Law 92–425, and section 5 of Pub-
lic Law 96–202, as made applicable to the commis-
sioned officer corps by section 261. 
‘‘(b) ASSETS OF THE FUND.—There shall be depos-
ited into the Fund the following, which shall constitute 
the assets of the Fund: 
‘‘(1) Amounts paid into the Fund under sub-
section (e). 
‘‘(2) Any return on investment of the assets of 
the Fund. 
‘‘(3) Amounts transferred into the Fund pursu-
ant to section 405(b) of the Spending, Deficit, and 
Debt Control Act of 2009. 
‘‘(c) PAYMENTS FROM THE FUND.—There shall be 
paid from the Fund benefits payable on account of mili-
tary retirement and survivor benefit programs to commis-
sioned officers of the commissioned officer corps and their 
survivors. 
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215 
‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE 
FUND.—(1)(A) Not later than June 30, 2010, the Sec-
retary shall determine the unfunded liability of the Fund 
attributable to service performed as of September 30, 
2010, which is ‘active service’ for the purpose of this title. 
The Secretary shall establish an amortization schedule, in-
cluding a series of annual installments commencing Octo-
ber 1, 2011, which provides for the liquidation of such 
liability by October 1, 2049. 
‘‘(B) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for 
each fiscal year beginning after September 30, 2010, 
through the fiscal year ending September 30, 2044, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on September 
30 of the subsequent fiscal year, which provides for the 
liquidation of such liability by October 1, 2049. 
‘‘(C) The Secretary shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for 
each fiscal year beginning after September 30, 2044, and 
shall establish a new authorization schedule, including se-
ries of annual installments commencing on October 1 of 
the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years. 
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216 
‘‘(2) The Secretary shall determine each fiscal year, 
in sufficient time for inclusion in the budget request for 
the following fiscal year, the total amount of Department 
of Commerce contributions to be made to the Fund during 
that fiscal year under (e). The amount shall be the product 
of— 
‘‘(A) the current estimate of the value of the 
single level percentage of basic pay to be determined 
under subsection (e) at the time of the most recent 
actuarial valuation under paragraph (3); and 
‘‘(B) the total amount of basic pay expected to 
be paid during that fiscal year to commissioned offi-
cers of NOAA on active duty. 
‘‘(3) Not less often then every four years (or by the 
fiscal year end before the effective date of any statutory 
change affecting benefits payable on account of retire-
ment, disability, or death to commissioned officers or their 
survivors), the Secretary shall carry out an actuarial valu-
ation of benefits payable on account of military retirement 
and survivor benefit programs to commissioned officers of 
the Administration and to their survivors. Each such actu-
arial valuation shall be signed by an enrolled Actuary and 
shall include a determination (using the aggregate entry- 
age normal cost method) of a single level percentage of 
basic pay for commissioned officers on active duty. 
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‘‘(4) All determinations under this section shall be in 
accordance with generally accepted actuarial principles 
and practices, and, where appropriate, shall follow the 
general pattern of methods and assumptions approved by 
the Department of Defense Retirement Board of Actu-
aries. 
‘‘(5) The Secretary shall provide for the keeping of 
such records as are necessary for determining the actu-
arial status of the Fund. 
‘‘(e) PAYMENTS
INTO
THE
FUND.—(1) From 
amounts appropriated to the National Oceanic Atmos-
pheric Administration for salaries and expenses, the Sec-
retary shall pay into the Fund at the end of each month 
the amount that is the product of— 
‘‘(A) the level percentage of basic pay deter-
mined using all the methods and assumptions ap-
proved for the most recent (as of the first day of the 
current fiscal year) actuarial valuation under sub-
section (d) (except that any statutory change affect-
ing benefits payable on account of military retire-
ment and survivor benefit programs to commissioned 
officers of the Administration and to their survivors 
that is effective date after the date of that valuation 
and on or before the first day of the current fiscal 
year shall be used in such determination); and 
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218 
‘‘(B) the total amount of basic pay accrued for 
that month by commissioned officers on active duty. 
‘‘(2)(A) At the beginning of each fiscal year, the Sec-
retary shall determine the sum of— 
‘‘(i) the amount of the payment for that year 
under the amortization of the original unfunded li-
ability of the Fund; 
‘‘(ii) the amount (including any negative 
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary for the 
amortization of any cumulative actuarial gain or loss 
to the Fund, resulting from changes in benefits; and 
‘‘(iii) the amount (including any negative 
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary for the 
amortization or any cumulative actuarial gain or loss 
to the Fund resulting from changes in actuarial as-
sumptions and from experience different from the 
assumed since the last valuation. 
The Secretary shall promptly certify the amount of the 
sum to the Secretary of the Treasury. 
‘‘(B) Upon receiving the certification pursuant to 
paragraph (1), the Secretary of the Treasury shall 
promptly pay into the Fund from the General Fund of 
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219 
the Treasury the amount so certified. Such payment shall 
be the contribution to the Fund for that fiscal year. 
‘‘(f) INVESTMENT OF ASSETS OF THE FUND.—The 
Secretary may request the Secretary of the Treasury to 
invest such portion of the Fund as is not, in the judgment 
of the Secretary, required to meet the current needs of 
the Fund. Such investments shall be made by the Sec-
retary of the Treasury in public debt securities with matu-
rities suitable to the needs of the Fund, as determined 
by the Secretary, and bearing interest at rates determined 
by the Secretary of the Treasury, taking into consideration 
current market yields on outstanding marketable obliga-
tions of the United States of comparable maturities. The 
income of such investments shall be credited to and form 
a part of the Fund. 
‘‘(g) IMPLEMENTATION YEAR EXCEPTIONS.—(1) To 
avoid funding shortfalls in the first year should formal ac-
tuarial determinations not be available in time for budget 
preparation, the amounts used in the first year in sub-
section (e)(1)(A) shall be set equal to the estimate in sub-
section (d)(2)(A) if final determinations are not available. 
The original unfunded liability as determined in sub-
section (d)(1) shall include an adjustment to correct for 
this difference between the formal actuarial determina-
tions and the estimates in subsection (d)(2)(A).’’. 
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(b) TRANSFER OF APPROPRIATIONS.—There shall be 
transferred on October 1, 2012, into the fund established 
under section 246A(a) of the National Oceanic and At-
mospheric Administration Commissioned Officer Corps 
Act of 2002 (title II of Public Law 107–372, as added 
by subsection (a)), any obligated and unobligated balance 
of appropriations made to the Department of Commerce 
that are available as of the date of the enactment of this 
Act for benefits payable on account of military retirement 
and survivor benefit programs to commissioned officers of 
the NOAA Commissioned Officer Corps and to their sur-
vivors, and amounts so transferred shall be part of the 
assets of the Fund, effective October 1, 2012. 
(c) EFFECTIVE DATE.—Subsection (c) (relating to 
payments from the Fund) and (e) (relating to payments 
into the Fund) of section 246A of the National Oceanic 
and Atmospheric Administration Commissioned Officer 
Corps Act of 2002 (title II of Public Law 107–372, as 
added by subsection (a)), shall take effect on October 1, 
2010. 
SEC. 506. COAST GUARD MILITARY RETIREMENT SYSTEM. 
(a) ACCRUAL FUNDING FOR COAST GUARD RETIRE-
MENT.— 
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