IB 
Union Calendar No. 672 
114TH CONGRESS 
2D SESSION 
H. R. 5707 
[Report No. 114–859, Part I] 
To amend title 5, United States Code, to provide for certain index fund 
investments from the Postal Service Retiree Health Benefits Fund, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2016 
Mr. LYNCH (for himself and Mr. MCKINLEY) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform 
DECEMBER 8, 2016 
Reported and referred to the Committee on the Budget for a period ending 
not later than December 8, 2016, for consideration of such provisions of 
the bill as fall within the jurisdiction of that committee pursuant to 
clause 1(d) of rule X 
DECEMBER 8, 2016 
The Committee on the Budget discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
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A BILL 
To amend title 5, United States Code, to provide for certain 
index fund investments from the Postal Service Retiree 
Health Benefits Fund, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Postal Service Finan-
cial Improvement Act of 2016’’. 
SEC. 2. INVESTMENT OF THE POSTAL SERVICE RETIREE 
HEALTH BENEFITS FUND. 
Section 8909a(c) of title 5, United States Code, is 
amended— 
(1) by striking ‘‘(c) The Secretary’’ and insert-
ing ‘‘(c)(1) Subject to paragraph (2), the Sec-
retary’’; and 
(2) by adding at the end the following: 
‘‘(2)(A) The Secretary of the Treasury shall imme-
diately invest a specified percentage of the Fund, using 
one or more qualified professional asset managers, in 
index funds modeled after those established under sub-
paragraphs (B), (C), (D) and (E) of section 8438(b)(1). 
The Secretary shall ensure, to the maximum extent prac-
ticable, that the investment replicates the performance of 
the longest-term target date asset allocation investment 
fund established by the Federal Retirement Thrift Invest-
ment Board. Funds invested pursuant to this paragraph 
shall be considered a means of financing. 
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‘‘(B) In exercising authority under subparagraph (A), 
including in the selection of specific qualified professional 
asset managers and in the development of specific invest-
ment guidelines to meet the requirement of such subpara-
graph, the Secretary shall consult with the Postal Service 
Retiree Health Benefits Fund Investment Committee. 
‘‘(C)(i) There is established a Postal Service Retiree 
Health Benefits Fund Investment Committee that shall 
consist of— 
‘‘(I) the Secretary; 
‘‘(II) the Chairman of the Board of Gov-
ernors of the United States Postal Service; 
‘‘(III) the Chairman of the Federal Retire-
ment Thrift Investment Board; and 
‘‘(IV) 2 members to represent the interests 
of Postal Service employees and annuitants 
who— 
‘‘(aa) are appointed by the President; 
‘‘(bb) have experience and expertise in 
the management of financial investments 
and Postal Service employee benefits; and 
‘‘(cc) shall serve for a term of 3 years. 
‘‘(ii) The Postal Service Retiree Health Benefits 
Fund Investment Committee and each member of such 
Committee shall be subject to the requirements of sub-
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sections (b)(1) and (c)(2) of section 8477, in the same 
manner as applied to a fiduciary with respect to the Thrift 
Savings Fund under such subsections. 
‘‘(D)(i) The Secretary shall annually engage an inde-
pendent qualified public accountant to audit the financial 
statements of the investments made pursuant to subpara-
graph (A). 
‘‘(ii) The Secretary shall submit an annual manage-
ment report to the Congress not later than 180 days after 
the end of the each fiscal year that includes— 
‘‘(I) a statement of financial position; 
‘‘(II) a statement of operations; 
‘‘(III) a statement of cash flows; 
‘‘(IV) a statement on internal accounting and 
administrative control systems; 
‘‘(V) the report resulting from an audit of the 
financial statements of the investments conducted 
under clause (i); and 
‘‘(VI) any other comments and information nec-
essary to inform the Congress about the operations 
and financial condition of the investments. 
‘‘(E) In this paragraph— 
‘‘(i) ‘specified percentage’ means 25 percent of 
the currently available portions of the Fund as are 
not immediately required for payments from the 
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Fund, except that the Postal Service Retiree Health 
Benefits Fund Investment Committee may specify a 
higher percentage, not to exceed 30 percent, not ear-
lier than 5 years after the date of enactment of the 
Postal Service Financial Improvement Act of 2016, 
and as appropriate thereafter; and 
‘‘(ii) ‘qualified professional asset manager’ has 
the meaning given that term in section 8438(a).’’. 
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Union Calendar No. 672 
114TH CONGRESS 
2D SESSION 
H. R. 5707 
[Report No. 114–859, Part I] 
A BILL 
To amend title 5, United States Code, to provide 
for certain index fund investments from the Post-
al Service Retiree Health Benefits Fund, and for 
other purposes. 
DECEMBER 8, 2016 
Reported and referred to the Committee on the Budget 
for a period ending not later than December 8, 2016, 
for consideration of such provisions of the bill as fall 
within the jurisdiction of that committee pursuant to 
clause 1(d) of rule X 
DECEMBER 8, 2016 
The Committee on the Budget discharged; committed to 
the Committee of the Whole House on the State of the 
Union and ordered to be printed 
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