175 
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 
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).
176 
‘‘(d) All determinations under this section shall be in 
accordance with generally accepted actuarial principles 
and practices and, where appropriate, shall follow the gen-
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
177 
‘‘(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 
‘‘(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).
178 
‘‘(b) At the beginning of each fiscal year, beginning 
on October 1, 2006, the Secretary shall certify to the Sec-
retary of the Treasury the amount of the first installment 
under the most recent amortization schedule established 
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)
179 
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 
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.— 
(1) CONDITION OF DETAIL.—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.’’. 
(2) SEQUESTRATION RULE.—Section 256(f) of 
the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 906(f)) is amended— 
(A) by inserting after the item relating to 
‘‘payment to the foreign service retirement and
180 
disability fund’’ the following item: ‘‘Payment 
to the Public Health Service Commissioned 
Corps Retirement Fund (75–0380–0–1–551);’’; 
and 
(B) by inserting after the item relating to 
the ‘‘Pensions for former Presidents’’ the fol-
lowing item: ‘‘Public Health Service Commis-
sioned Corps Retirement Fund (75–8274–0–7– 
602);’’. 
(c) TRANSFER OF APPROPRIATIONS.—There shall be 
transferred on October 1, 2007, 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. 
SEC. 405. 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