Page:United States Statutes at Large Volume 98 Part 3.djvu/196

 98 STAT. 2568

PUBLIC LAW 98-525—OCT. 19, 1984 ACCRUAL FUNDING OF DEPARTMENT OF DEFENSE LIABIUTIES

SEC. 706. (a)(1) Chapter 101 of title 10, United States Code, is amended by adding at the end thereof the following new section: 10 USC 2006.

Ante, pp. 2553, 2^^^-

Ante, p. 2557.

Ante, p. 2558.

Ante, p. 2554. Ante, p. 2558. Ante, p. 2555. Ante, p. 2564.

"§ 2006. Department of Defense Education Benefits Fund "(a) There is established on the books of the Treasury a fund to be known as the Department of Defense Education Benefits Fund (hereinafter in this section referred to as the 'Fund'), which shall be administered by the Secretary of the Treasury. The Fund shall be used for the accumulation of funds in order to finance Department of Defense education liabilities on an actuarially sound basis. "(b) In this section: "(1) 'Department of Defense education liabilities' means liabilities of the Department of Defense for benefits under chapter 30 of title 38 and for benefits under chapter 106 of this title. "(2) 'Normal cost', with respect to any period of time, means the total of the following: "(A) The present value of the future benefits payable from the Fund for amounts attributable to increased amounts of educational assistance authorized under section 1415(c) of title 38 to persons who were not on active duty on July 1, 1985, and who during such period enter on active duty. "(B) The present value of the future benefits payable from the Fund for amounts attributable to educational assistance authorized under subchapter III of chapter 30 of title 38 to persons who were not on active duty on July 1, 1985, and who during such period— "(i) enter a fourth year of active duty, in the case of persons eligible for basic educational assistance under section 1411 of such title; or "(ii) enter a period of service that will establish entitlement to such educational assistance under section 1421(b) of such title, in the case of persons eligible for basic educational assistance under section 1412 of such title. "(C) The present value of the future benefits payable from the Fund for educational assistance under chapter 106 of this title to persons who during such period become entitled to such assistance. "(c) There shall be deposited into the Fund the following, which shall constitute the assets of the Fund: "(1) Amounts paid into the Fund by the Secretary of Defense under subsection (g). "(2) Any amount appropriated to the Fund. "(3) Any return on investment of the assets of the Fund. "(d) The Secretary of the Treasury shall transfer from the Fund to the Administrator of Veterans' Affairs such amounts as may be necessary to enable the Administrator to make required payments of Department of Defense education liabilities. The Secretary of the Treasury, the Secretary of Defense, and the Administrator shall enter into an agreement as to how and when, and the amounts in which, such transfers shall be made. Except for investments under subsection (h), amounts in the Fund may not be used for any purpose other than transfers as described in this subsection.

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