US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 1465

Determination of contributions to the Fund

(a)
(1)
section 1466(b) of this title Not later than six months after the Board of Actuaries is first appointed, the Board shall determine the amount that is the present value (as of ) of future benefits payable from the Fund that are attributable to service in the armed forces performed before . That amount is the original unfunded liability of the Fund. The Board shall determine the period of time over which the original unfunded liability should be liquidated and shall determine an amortization schedule for the liquidation of such liability over that period. Contributions to the Fund for the liquidation of the original unfunded liability in accordance with such schedule shall be made as provided in .
(2)
section 1466(b) of this title Not later than , the Board of Actuaries shall determine the amount that is the present value (as of ) of future benefits payable from the Fund that are attributable to service in the Coast Guard performed before . That amount is the original Coast Guard unfunded liability of the Fund. The Board shall determine the period of time over which the original Coast Guard unfunded liability should be liquidated and shall determine an amortization schedule for the liquidation of such liability over that period. Contributions to the Fund for the liquidation of the original Coast Guard unfunded liability in accordance with such schedule shall be made as provided in .
(b)
(1)
section 1466(a) of this title The Secretary of Defense, in consultation with the Secretary of the department in which the Coast Guard is operating, shall determine each year, in sufficient time for inclusion in budget requests for the following fiscal year, the total amount of Department of Defense and Coast Guard contributions to be made to the Fund during that fiscal year under . That amount shall be the sum of the following:
(A)
The product of—
(i)
the current estimate of the value of the single level percentage of basic pay to be determined under subsection (c)(1)(A) at the time of the next actuarial valuation under subsection (c); and
(ii)
section 115(i) of this title the total amount of basic pay expected to be paid during that fiscal year for active duty members of the Armed Forces and for full-time National Guard duty (other than full-time National Guard duty for training only), but excluding the amount expected to be paid for any duty that would be excluded for active-duty end strength purposes by .
(B)
The product of—
(i)
section 206 of title 37 the current estimate of the value of the single level percentage of basic pay and of compensation (paid pursuant to ) to be determined under subsection (c)(1)(B) at the time of the next actuarial valuation under subsection (c); and
(ii)
section 206 of title 37 the total amount of basic pay and of compensation (paid pursuant to ) expected to be paid during that fiscal year to members of the Selected Reserve of the armed forces for service not otherwise described in subparagraph (A)(ii).
(2)
section 1466(a) of this titlesection 1105 of title 31 The amount determined under paragraph (1) for any fiscal year is the amount needed to be appropriated to the Coast Guard Retired Pay account and the Department of Defense for that fiscal year for payments to be made to the Fund during that year under . The President shall include not less than the full amount so determined in the budget transmitted to Congress for that fiscal year under . The President may comment and make recommendations concerning any such amount.
(3)
section 1466(b)(2)(D) of this titlesection 1466(a) of this title At the same time that the Secretary of Defense makes the determination required by paragraph (1) for any fiscal year, the Secretary shall determine the amount of the Treasury contribution to be made to the Fund for the next fiscal year under . That amount shall be determined in the same manner as the determination under paragraph (1) of the total amount of Department of Defense and Coast Guard contributions to be made to the Fund during that fiscal year under , except that for purposes of this paragraph the Secretary, in making the calculations required by subparagraphs (A) and (B) of that paragraph, shall use the single level percentages determined under subsection (c)(4), rather than those determined under subsection (c)(1).
(c)
(1)
Not less often than every four years, the Secretary of Defense, in consultation with the Secretary of the department in which the Coast Guard is operating, shall carry out an actuarial valuation of Department of Defense military retirement and survivor benefit programs. Each actuarial valuation of such programs shall include—
(A)
section 115(i) of this title a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay for active duty members of the Armed Forces and for full-time National Guard duty (other than full-time National Guard duty for training only), but excluding the amount expected to be paid for any duty that would be excluded for active-duty end strength purposes by , to be determined without regard to section 1413a or 1414 of this title; and
(B)
section 206 of title 37 a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay and of compensation (paid pursuant to ) for members of the Selected Reserve of the armed forces for service not otherwise described by subparagraph (A), to be determined without regard to section 1413a or 1414 of this title.
section 1466(a) of this titleSuch single level percentages shall be used for the purposes of subsection (b)(1) and .
(2)
If at the time of any such valuation (or any valuation carried out in order to comply with chapter 95 of title 31) there has been a change in benefits under a military retirement or survivor benefit program that has been made since the last such valuation and such change in benefits increases or decreases the present value of amounts payable from the Fund, the Secretary of Defense, in consultation with the Secretary of the department in which the Coast Guard is operating, shall determine an amortization methodology and schedule for the amortization of the cumulative unfunded liability (or actuarial gain to the Fund) created by such change and any previous such changes so that the present value of the sum of the amortization payments (or reductions in payments that would otherwise be made) equals the cumulative increase (or decrease) in the present value of such amounts.
(3)
If at the time of any such valuation (or any valuation carried out in order to comply with chapter 95 of title 31) the Secretary of Defense, in consultation with the Secretary of the department in which the Coast Guard is operating, determines that, based upon changes in actuarial assumptions since the last valuation, there has been an actuarial gain or loss to the Fund, the Secretary shall determine an amortization methodology and schedule for the amortization of the cumulative gain or loss to the Fund created by such change in assumptions and any previous such changes in assumptions through an increase or decrease in the payments that would otherwise be made to the Fund.
(4)
Whenever the Secretary carries out an actuarial valuation under paragraph (1), the Secretary shall include as part of such valuation the following:
(A)
A determination of a single level percentage determined in the same manner as applies under subparagraph (A) of paragraph (1), but based only upon the provisions of sections 1413a and 1414 of this title.
(B)
A determination of a single level percentage determined in the same manner as applies under subparagraph (B) of paragraph (1), but based only upon the provisions of sections 1413a and 1414 of this title.
Such single level percentages shall be used for the purposes of subsection (b)(3).
(5)
section 1466(b) of this title Contributions to the Fund in accordance with amortization schedules under paragraphs (2) and (3) shall be made as provided in .
(d)
All determinations under this section shall be made using methods and assumptions approved by the Board of Actuaries (including assumptions of interest rates and inflation) and in accordance with generally accepted actuarial principles and practices.
(e)
The Secretary of Defense and, with regard to the Coast Guard, the Secretary of the department in which the Coast Guard is operating shall provide for the keeping of such records as are necessary for determining the actuarial status of the Fund.

Pub. L. 98–94, title IX, § 925(a)(1)97 Stat. 646Pub. L. 98–525, title XIV, § 1405(28)98 Stat. 2623Pub. L. 99–500, § 101(c) [title IX, § 9131]100 Stat. 1783–82Pub. L. 99–591, § 101(c) [title IX, § 9131]100 Stat. 3341–82Pub. L. 99–661, div. A, title VI, § 661(a)100 Stat. 3891Pub. L. 108–136, div. A, title VI, § 641(c)(3)117 Stat. 1515Pub. L. 108–375, div. A, title X, § 1084(d)(11)118 Stat. 2062Pub. L. 109–364, div. A, title V, § 591(a)120 Stat. 2232Pub. L. 116–283, div. G, title LVXXXII134 Stat. 4658Pub. L. 117–81, div. A, title X, § 1081(a)(18)135 Stat. 1920Pub. L. 118–159, div. A, title XVII, § 1701(a)(21)138 Stat. 2204(Added , , ; amended , , ; , , , 1783–128, and , , , 3341–128; , , ; , (4), , ; , , ; , , ; [LXXXII], § 8224, , ; , , ; , , .)

Editorial Notes

Codification

Pub. L. 99–591Pub. L. 99–500 is a corrected version of .

Pub. L. 99–500Pub. L. 99–591Pub. L. 99–500Pub. L. 99–591Pub. L. 99–661Amendment of section by and is based on section 642 of S. 2638, Ninety-ninth Congress, as passed by the Senate on , which was enacted into permanent law by and . S. 2638 was subsequently enacted as .

Amendments

Pub. L. 118–1592024—Subsec. (e). inserted “shall” before “provide”.

Pub. L. 116–283, § 8224(1)2021—Subsec. (a). , designated existing provisions as par. (1) and added par. (2).

Pub. L. 116–283, § 8224(2)(A)(i)Subsec. (b)(1). , in introductory provisions, inserted “, in consultation with the Secretary of the department in which the Coast Guard is operating,” after “Secretary of Defense” and “and Coast Guard” after “Department of Defense”.

Pub. L. 116–283, § 8224(2)(A)(ii)Subsec. (b)(1)(A)(ii). , substituted “members of the Armed Forces” for “(other than the Coast Guard)”.

Pub. L. 116–283, § 8224(2)(A)(iii)Subsec. (b)(1)(B)(ii). , struck out “(other than the Coast Guard)” after “armed forces”.

Pub. L. 117–81Subsec. (b)(2). substituted “account and the Department” for “account and the the Department”.

Pub. L. 116–283, § 8224(2)(B), inserted “the Coast Guard Retired Pay account and the” after “appropriated to”.

Pub. L. 116–283, § 8224(2)(C)Subsec. (b)(3). , inserted “and Coast Guard” after “Department of Defense”.

Pub. L. 116–283, § 8224(3)(A)(i)Subsec. (c)(1). , inserted “, in consultation with the Secretary of the department in which the Coast Guard is operating,” after “Secretary of Defense” in introductory provisions.

Pub. L. 116–283, § 8224(3)(A)(ii)Subsec. (c)(1)(A). , substituted “members of the Armed Forces” for “(other than the Coast Guard)”.

Pub. L. 116–283, § 8224(3)(A)(iii)Subsec. (c)(1)(B). , struck out “(other than the Coast Guard)” after “armed forces”.

Pub. L. 116–283, § 8224(3)(B)Subsec. (c)(2). , inserted “, in consultation with the Secretary of the department in which the Coast Guard is operating,” after “Secretary of Defense”.

Pub. L. 116–283, § 8224(3)(C)Subsec. (c)(3). , inserted “, in consultation with the Secretary of the department in which the Coast Guard is operating,” after “Secretary of Defense”.

Pub. L. 116–283, § 8224(4)Subsec. (e). , substituted “Secretary of Defense and, with regard to the Coast Guard, the Secretary of the department in which the Coast Guard is operating” for “Secretary of Defense shall”.

Pub. L. 109–364, § 591(a)(1)(A)section 115(i) of this title2006—Subsec. (b)(1)(A)(ii). , substituted “for active duty (other than the Coast Guard) and for full-time National Guard duty (other than full-time National Guard duty for training only), but excluding the amount expected to be paid for any duty that would be excluded for active-duty end strength purposes by ” for “to members of the armed forces (other than the Coast Guard) on active duty (other than active duty for training) or full-time National Guard duty (other than full-time National Guard duty for training only)”.

Pub. L. 109–364, § 591(a)(1)(B)Subsec. (b)(1)(B)(ii). , substituted “Selected Reserve” for “Ready Reserve” and “Coast Guard) for service” for “Coast Guard and other than members on full-time National Guard duty other than for training) who are”.

Pub. L. 109–364, § 591(a)(2)(A)section 115(i) of this titleSubsec. (c)(1)(A). , substituted “for active duty (other than the Coast Guard) and for full-time National Guard duty (other than full-time National Guard duty for training only), but excluding the amount expected to be paid for any duty that would be excluded for active-duty end strength purposes by ” for “for members of the armed forces (other than the Coast Guard) on active duty (other than active duty for training) or full-time National Guard duty (other than full-time National Guard duty for training only)”.

Pub. L. 109–364, § 591(a)(2)(B)Subsec. (c)(1)(B). , substituted “Selected Reserve” for “Ready Reserve” and “Coast Guard) for service” for “Coast Guard and other than members on full-time National Guard duty other than for training) who are”.

Pub. L. 108–3752004—Subsec. (c)(1)(A), (B), (4)(A), (B). substituted “1413a” for “1413, 1413a,”.

Pub. L. 108–136, § 641(c)(3)2003—Subsec. (b)(3). , added par. (3).

Pub. L. 108–136, § 641(c)(4)(A)(iii)Subsec. (c)(1). , substituted “subsection (b)(1)” for “subsection (b)” in concluding provisions.

Pub. L. 108–136, § 641(c)(4)(A)(i)Subsec. (c)(1)(A). , inserted before semicolon “, to be determined without regard to section 1413, 1413a, or 1414 of this title”.

Pub. L. 108–136, § 641(c)(4)(A)(ii)Subsec. (c)(1)(B). , inserted before period at end “, to be determined without regard to section 1413, 1413a, or 1414 of this title”.

Pub. L. 108–136, § 641(c)(4)(B)Subsec. (c)(4), (5). , (C), added par. (4) and redesignated former par. (4) as (5).

Pub. L. 99–500Pub. L. 99–591Pub. L. 99–661, § 661(a)1985—Subsec. (b)(1). and , , amended par. (1) identically, inserting second sentence and striking out the existing second sentence which read as follows: “That amount shall be determined as the product of—

“(A) the current estimate of the value of the single level percentage of basic pay to be determined at the time of the next actuarial valuation under subsection (c); and

“(B) the total amount of basic pay expected to be paid during that fiscal year to members of the armed forces (other than the Coast Guard) on active duty or in the Selected Reserve.”

Pub. L. 99–500Pub. L. 99–591Pub. L. 99–661, § 661(a)(2)section 1466(a) of this titleSubsec. (c)(1). and , , amended par. (1) identically, inserting second and third sentences and striking out existing second sentence which read as follows: “Each actuarial valuation of such programs shall include a determination (using the aggregate entry-age normal cost method) of a single level percentage of basic pay to be used for the purposes of subsection (b) and .”

Pub. L. 98–5251984—Subsec. (c)(1). struck out “(A)” after “(c)(1)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Pub. L. 109–364, div. A, title V, § 591(c)120 Stat. 2233

section 1466 of this title“The amendments made by this section [amending this section and ] shall take effect on .”
, , , provided that:

Effective Date of 2003 Amendment

Pub. L. 108–136section 641(c)(6) of Pub. L. 108–136section 1413a of this titleAmendment by effective , with Secretary of Defense to provide for certain administrative adjustments, see , set out as a note under .

Effective Date of 1986 Amendments

Pub. L. 99–500Pub. L. 99–591section 661(d) of Pub. L. 99–661

section 1466 of this titlesection 1466(a) of title 10“The amendments made by this section [amending this section and ] shall take effect on , or the date of the enactment of this Act [], whichever is later, and shall apply to payments required to be made under , United States Code, as amended by this section, for months beginning on or after that effective date.”
section 1466 of this titlesection 1466(a) of title 10Section 642(c) of S. 2638, as passed by the Senate on , and as enacted into law by section 101(c) [title IX, § 9131] of and , and , provided respectively that: and “The amendments made by subsections (a) and (b) [amending this section and ] shall apply to payments required to be made under , United States Code, as amended by subsection (b), for months beginning on or after the date of the enactment of this Act [].”