150 
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; 
(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
151 
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 
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-
152 
ject to subparagraph (A) shall contribute from amounts 
available for salaries and expenses an amount equal to the 
sum of— 
‘‘(i) the product of— 
‘‘(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.
153 
‘‘(C) In determining the normal cost percentage to 
be applied under subparagraph (B), amounts provided for 
under subparagraph (A) shall be taken into account. 
‘‘(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.
154 
‘‘(E) In the case of the United States Postal Service, 
the Metropolitan Washington Airports Authority, and the 
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.’’; and 
(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 which would 
have been contributed under such subsection if this 
subsection had not been enacted.’’; and 
(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);
155 
(B) by amending subsection (g) to read as 
follows: 
‘‘(g)(1)(A) Not later than June 30, 2006, the Office 
of the Actuary shall determine the unfunded liability of 
the Fund, as of September 30, 2005, 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, 2006, which provides for the liquida-
tion of such liability by October 1, 2044. 
‘‘(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, 2005, 
through the fiscal year ending September 30, 2039, 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, 2044. 
‘‘(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, 2039, and 
shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1
156 
of the second subsequent fiscal year, which provides for 
the liquidation of such liability over five years. 
‘‘(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, 2006, 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.’’;
157 
(C) in subsections (h), (i), and (m) by 
striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 
each place it appears; and 
(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’’.
158 
SEC. 402. 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: 
‘‘(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-
159 
ance with generally accepted actuarial 
practices and principles.’’; 
(2) in paragraph (6)— 
(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
160 
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 
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.’’; and 
(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, 2006, the Director 
shall cause to be made actuarial valuations of the Fund 
that determine the unfunded liability of the Fund, as of 
September 30, 2005, 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, 2006, which provides for the liquidation of such liability 
by October 1, 2044. 
‘‘(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, 2005,
161 
through the fiscal year ending September 30, 2039, 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, 2044. 
‘‘(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, 2039, 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, 2006, 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
162 
of the National Security Act of 1947, this amount shall 
be considered authorized.’’. 
(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 which would be con-
tributed by the number of employees projected to be des-
ignated under section 302 and the amounts that are actu-
ally 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
163 
available for salaries and expenses. Agency employees des-
ignated pursuant to section 302 of this Act shall, com-
mencing with such designation, have deducted from their 
basic pay the full amount required by section 8422 of title 
5, United States Code, and such deductions shall be con-
tributed 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, 2006, 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, 2007, 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, 2007, which provides for the liquidation of 
the section 302 unfunded liability by September 30, 2014. 
‘‘(3) At the end of each fiscal year, beginning on Sep-
tember 30, 2007, the Director shall notify the Secretary 
of the Treasury of the amount of the annual installment 
under the amortization schedule established under para-
164 
graph (2) of this subsection. Before closing the accounts 
for that fiscal year, the Secretary shall credit that amount 
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. 403. 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;’’;
165 
(2) by amending paragraph (14) to read as fol-
lows: 
‘‘(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
166 
who became subject to the Foreign Service 
Pension System; and 
‘‘(iv) any other appropriate amount, 
as determined by the Secretary of the 
Treasury in accordance with generally ac-
cepted actuarial practices and principles.’’; 
and 
(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) 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)—
167 
(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) in section 805(a)(1) (22 U.S.C. 4045(a)(i))— 
(1) by striking the second sentence; 
(2) (by redesignating that subsection, as so 
amended, as (a)(1)(A);
168 
(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-
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-
169 
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) by repealing sections 821 and 822 (22 U.S.C. 
4061 and 4062) and by adding the following new section: 
‘‘SEC. 821. UNFUNDED LIABILITY.—(a)(1) Not later 
than June 30, 2006, the Secretary of State shall cause 
to be made actuarial valuations of the Fund that deter-
mine the unfunded liability of the Fund, as of September 
30, 2005, attributable to benefits payable under this sub-
chapter and make recommendations regarding its liquida-
tion. After considering such recommendations, the Sec-
retary of State shall establish an amortization schedule, 
including a series of annual installments commencing Oc-
tober 1, 2005, which provides for the liquidation of such 
liability by October 1, 2044. 
‘‘(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, 
2005, through the fiscal year ending September 30, 2039,
170 
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, 2044. 
‘‘(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, 
2039, 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, 2006, the Secretary of State 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 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.’’;
171 
(e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 
striking ‘‘equal annual installments’’ and inserting ‘‘an-
nual installments set in accordance with generally accept-
ed actuarial practices and principles’’; 
(f) in section 859 (22 U.S.C. 4071h) by adding ‘‘per-
centage’’ after ‘‘normal cost’’; 
(g) in section 802 (22 U.S.C. 4042) by adding at the 
end the following: ‘‘The Fund is appropriated for the pay-
ment of benefits as provided by this subchapter.’’; and 
(h) in section 818 (22 U.S.C. 4058) by striking ‘‘Sys-
tem’’ and inserting ‘‘Systems under this subchapter’’. 
SEC. 404. 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
172 
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. 
‘‘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 404(c) of the Family Budget Protec-
tion Act of 2005. 
‘‘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, 2006, the 
Secretary shall determine the unfunded liability of the 
Fund attributable to service performed as of September 
30, 2005, which is ‘active service’ for the purpose of sec-
173 
tion 212. The Secretary shall establish an amortization 
schedule, including a series of annual installments com-
mencing October 1, 2006, which provides for the liquida-
tion of such liability by October 1, 2044. 
‘‘(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, 2005, 
through the fiscal year ending September 30, 2039, 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, 2044. 
‘‘(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, 2039, 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 5 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—
174 
‘‘(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 
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