Panama Canal Commission Compensation Fund Act of 1988
PL 100-705 (H.R.5287), enacted 11/19/1988

PUBLIC LAW 100-705—NOV. 19, 1988 
102 STAT. 4685 
Public Law 100-705 
100th Congress 
An Act 
Panama Canal 
Commission 
Compensation 
Fund Act of 
1988. 
22 u s e 3601 
note. 
22 u s e 3715. 
22 u s e 3715a. 
Claims. 
To establish the Panama Canal Commission Compensation Fund to provide for the 
JNov. 19, l^OB 
accumulation of funds to meet the Panama Canal Commission's obligations under 
[H.R. 5287] 
chapter 81 of title 5, United States Code, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Panama Canal Commission Com-
pensation Fund Act of 1988". 
SEC. 2. ESTABLISHMENT OF COMPENSATION FUND. 
There is established in the Treasury of the United States the 
Panama Canal Commission Compensation Fund (hereafter in this 
Act referred to as the "Fund"). 
SEC. 3. OPERATION OF THE FUND. 
(a) DEPOSITS TO THE FUND.—The Panama Canal Commission shall 
make deposits on a regular basis to the Fund, beginning on Octo-
ber 1, 1988, to accumulate an amount sufficient to defray the 
estimated total cost of liability for the workers' compensation bene-
fits and other payments payable under chapter 81 of title 5, United 
States Code, for the disability or death of employees of the Panama 
Canal Commission or any of its predecessor agencies on account of 
injuries sustained on or before December 31, 1999, except for those 
claims arising before, on, or after October 1, 1988, for which the 
Secretary of Labor has assumed fiscal responsibility. 
(b) CALCULATION OF AMOUNTS TO BE DEPOSITED.—The amounts 
deposited under subsection (a) shall be based upon periodic actuarial 
studies conducted by experts or consultants whose services are 
procured by the Panama Canal Commission by contract. The 
amounts of such deposits shall take into consideration interest 
earnings in accordance with subsection (c) of this section and ex-
pected cost-of-living adjustments as provided in section 8146a of 
title 5, United States Code, but not amounts payable by the Commis-
sion for continuation of pay pursuant to section 8118 of such title. 
(c) INVESTMENT OF AMOUNTS IN THE FUND.—The Secretary of the 
Treasury, upon the request of the Secretary of Labor, shall invest 
moneys in the Fund in public debt securities which shall bear 
interest at rates determined by the Secretary of the Treasury, 
taking into consideration the current average market yield on 
outstanding marketable obligations of the United States of com-
parable maturity. Such interest shall be credited to and form a part 
of the Fund. 
SEC. 4. TRANSFERS FROM THE FUND FOR COMPENSATION BENEFITS. 
22 USC 3715b. 
The Secretary of the Treasury shall, upon request of the Secretary 
of Labor, transfer funds from the Fund to the Employees' Compensa-
tion Fund to reimburse the Employees' Compensation Fund for the 
» 
Contracts. 
102 STAT. 4686 
PUBLIC LAW 100-705—NOV. 19, 1988 
total cost of workers' compensation benefits and other payments 
described in section 3(a) that are provided on or after October 1, 
1988. 
22 u s e 3715c. 
SEC. 5. FINAL EVALUATION OF THE FUND: DEFICIENCY OR SURPLUS IN 
THE FUND. 
Upon the termination of the Panama Canal Commission: 
Contracts. 
(a) FiNAL EVALUATION OF THE FuND.—The Secretary of Labor 
shall, on the basis of an actuarial study conducted by experts or 
consultants whose services are procured by the Secretary of Labor 
by contract, make a final determination of the amounts estimated to 
be necessary to meet expenditures for workers' compensation bene-
fits and other payments described in section 3(a), as calculated in 
accordance with the second sentence of section 3(b). Amounts in the 
Fund shall be used to pay for the final determination under this 
subsection. The Secretary of the Treasury shall, in accordance with 
such final determination, transfer from the Fund to the Employee 
Compensation Fund amounts sufficient to meet expenditures for 
workers' compensation benefits and other payments described in 
section 3(a). 
(b) DEFICIENCY OR SURPLUS IN THE FUND.—If amounts in the Fund 
are not sufficient to meet expenditures as determined by the Sec-
retary of Labor for workers' compensation benefits and other pay-
ments described in section 3(a), then amounts in the Panama Canal 
Revolving Fund not otherwise obligated shall be transferred to the 
Employees Compensation Fund to make up the deficiency. Any 
amounts remaining in the Fund in excess of the final determination 
amount as described in subsection (a) shall be transferred to the 
Panama Canal Revolving Fund, and may be used to satisfy lawful 
obligations of the Revolving Fund arising on or before December 31, 
1999. 
22 u s e 3715d. 
SEC. 6. CONTINUATION OF BENEFITS. 
The provisions of chapter 81 of title 5, United States Code, shall, 
on or after the effective date of this Act, continue to be the exclusive 
remedy, in accordance with section 8116 of such title, for the 
disability or death of any employee of the Panama Canal Commis-
sion, or any of its predecessor agencies, who is covered under such 
chapter, resulting from injuries sustained while in the performance 
of the employee's duty. The rights of any such employee for workers' 
compensation benefits shall be based only on the provisions of that 
chapter. 
SEC. 7. PROXIES. 
Section 1102(c) of the Panama Canal Act of 1979 (22 U.S.C. 
3612(c)), is amended by striking out "Only one proxy may be valid at 
any one time.". 
SEC. 8. OTHER USES OF COMMISSION FUNDS PROHIBITED. 
Section 1321 of the Panama Canal Act of 1979 (22 U.S.C. 3731) is 
amended by adding at the end thereof the following: 
"(h) Except as expressly provided in this Act, funds available to 
the Panama Canal Commission may not be made available to any 
other agency as that term is defined in section 551 of title 5, United 
States Code, nor may funds be authorized or appropriated for any 
function other* than Panama Canal Commission activities.". 
PUBLIC LAW 100-705—NOV. 19, 1988 
102 STAT. 4687 
SEC. 9. TECHNICAL AMENDMENT. 
Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 3712) is 
amended in the last subsection by striking out "(e)(1)" and inserting 
in lieu thereof "(f)(1)". 
SEC. 10. EFFECTIVE DATE. 
22 USC 3612w. 
This Act takes effect on October 1,1988. 
Approved November 19, 1988. 
LEGISLATIVE HISTORY—H.R. 5287: 
HOUSE REPORTS: No. 100-969 (Comm. on Merchant Marine and Fisheries). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Sept. 26, considered and passed House. 
Oct. 19, considered and passed Senate.