5 U.S.C. § 8348 : US Code - Section 8348: Civil Service Retirement and Disability Fund

      (a) There is a Civil Service Retirement and Disability Fund. The
    Fund - 
        (1) is appropriated for the payment of - 
          (A) benefits as provided by this subchapter or by the
        provisions of chapter 84 of this title which relate to benefits
        payable out of the Fund; and
          (B) administrative expenses incurred by the Office of
        Personnel Management in placing in effect each annuity
        adjustment granted under section 8340 or 8462 of this title, in
        administering survivor annuities and elections providing
        therefor under sections 8339 and 8341 of this title or
        subchapters II and IV of chapter 84 of this title, in
        administering alternative forms of annuities under sections
        8343a and 8420a (and related provisions of law), in making an
        allotment or assignment made by an individual under section
        8345(h) or 8465(b) of this title, and in withholding taxes
        pursuant to section 3405 of title 26 or section 8345(k) or 8469
        of this title;

        (2) is made available, subject to such annual limitation as the
      Congress may prescribe, for any expenses incurred by the Office
      in connection with the administration of this chapter, chapter 84
      of this title, and other retirement and annuity statutes; and
        (3) is made available, subject to such annual limitation as the
      Congress may prescribe, for any expenses incurred by the Merit
      Systems Protection Board in the administration of appeals
      authorized under sections 8347(d) and 8461(e) of this title.

      (b) The Secretary of the Treasury may accept and credit to the
    Fund money received in the form of a donation, gift, legacy, or
    bequest, or otherwise contributed for the benefit of civil-service
    employees generally.
      (c) The Secretary shall immediately invest in interest-bearing
    securities of the United States such currently available portions
    of the Fund as are not immediately required for payments from the
    Fund. The income derived from these investments constitutes a part
    of the Fund.
      (d) The purposes for which obligations of the United States may
    be issued under chapter 31 of title 31 are extended to authorize
    the issuance at par of public-debt obligations for purchase by the
    Fund. The obligations issued for purchase by the Fund shall have
    maturities fixed with due regard for the needs of the Fund and bear
    interest at a rate equal to the average market yield computed as of
    the end of the calendar month next preceding the date of the issue,
    borne by all marketable interest-bearing obligations of the United
    States then forming a part of the public debt which are not due or
    callable until after the expiration of 4 years from the end of that
    calendar month. If the average market yield is not a multiple of 
    1/8  of 1 percent, the rate of interest on the obligations shall be
    the multiple of  1/8  of 1 percent nearest the average market
    yield.
      (e) The Secretary may purchase other interest-bearing obligations
    of the United States, or obligations guaranteed as to both
    principal and interest by the United States, on original issue or
    at the market price only if he determines that the purchases are in
    the public interest.
      (f) Any statute which authorizes - 
        (1) new or liberalized benefits payable from the Fund,
      including annuity increases other than under section 8340 of this
      title;
        (2) extension of the coverage of this subchapter to new groups
      of employees; or
        (3) increases in pay on which benefits are computed;

    is deemed to authorize appropriations to the Fund to finance the
    unfunded liability created by that statute, in 30 equal annual
    installments with interest computed at the rate used in the then
    most recent valuation of the Civil Service Retirement System and
    with the first payment thereof due as of the end of the fiscal year
    in which each new or liberalized benefit, extension of coverage, or
    increase in pay is effective.
      (g) At the end of each fiscal year, the Office shall notify the
    Secretary of the Treasury of the amount equivalent to (1) interest
    on the unfunded liability computed for that year at the interest
    rate used in the then most recent valuation of the System, and (2)
    that portion of disbursement for annuities for that year which the
    Office estimates is attributable to credit allowed for military
    service, less an amount determined by the Office to be appropriate
    to reflect the value of the deposits made to the credit of the Fund
    under section 8334(j) of this title. Before closing the accounts
    for each fiscal year, the Secretary shall credit to the Fund, as a
    Government contribution, out of any money in the Treasury of the
    United States not otherwise appropriated, the following percentages
    of such amounts: 10 percent for 1971; 20 percent for 1972; 30
    percent for 1973; 40 percent for 1974; 50 percent for 1975; 60
    percent for 1976; 70 percent for 1977; 80 percent for 1978; 90
    percent for 1979; and 100 percent for 1980 and for each fiscal year
    thereafter.
      (h)(1) In this subsection, the term "Postal surplus or
    supplemental liability" means the estimated difference, as
    determined by the Office, between - 
        (A) the actuarial present value of all future benefits payable
      from the Fund under this subchapter to current or former
      employees of the United States Postal Service and attributable to
      civilian employment with the United States Postal Service; and
        (B) the sum of - 
          (i) the actuarial present value of deductions to be withheld
        from the future basic pay of employees of the United States
        Postal Service currently subject to this subchapter under
        section 8334;
          (ii) that portion of the Fund balance, as of the date the
        Postal surplus or supplemental liability is determined,
        attributable to payments to the Fund by the United States
        Postal Service and its employees, minus benefit payments
        attributable to civilian employment with the United States
        Postal Service, plus the earnings on such amounts while in the
        Fund; and
          (iii) any other appropriate amount, as determined by the
        Office in accordance with generally accepted actuarial
        practices and principles.

      (2)(A) Not later than June 15, 2007, the Office shall determine
    the Postal surplus or supplemental liability, as of September 30,
    2006. If that result is a surplus, the amount of the surplus shall
    be transferred to the Postal Service Retiree Health Benefits Fund
    established under section 8909a by June 30, 2007.
      (B) The Office shall redetermine the Postal surplus or
    supplemental liability as of the close of the fiscal year, for each
    fiscal year beginning after September 30, 2007, through the fiscal
    year ending September 30, 2038. If the result is a surplus, that
    amount shall remain in the Fund until distribution is authorized
    under subparagraph (C). Beginning June 15, 2017, if the result is a
    supplemental liability, the Office shall establish an amortization
    schedule, including a series of annual installments commencing on
    September 30 of the subsequent fiscal year, which provides for the
    liquidation of such liability by September 30, 2043.
      (C) As of the close of the fiscal years ending September 30,
    2015, 2025, 2035, and 2039, if the result is a surplus, that amount
    shall be transferred to the Postal Service Retiree Health Benefits
    Fund, and any prior amortization schedule for payments shall be
    terminated.
      (D) Amortization schedules established under this paragraph shall
    be set in accordance with generally accepted actuarial practices
    and principles, with interest computed at the rate used in the most
    recent valuation of the Civil Service Retirement System.
      (E) The United States Postal Service shall pay the amounts so
    determined to the Office, with payments due not later than the date
    scheduled by the Office.
      (3) Notwithstanding any other provision of law, in computing the
    amount of any payment under any other subsection of this section
    that is based upon the amount of the unfunded liability, such
    payment shall be computed disregarding that portion of the unfunded
    liability that the Office determines will be liquidated by payments
    under this subsection.
      (i)(1) Notwithstanding any other provision of law, the Panama
    Canal Commission shall be liable for that portion of any estimated
    increase in the unfunded liability of the fund which is
    attributable to any benefits payable from the Fund to or on behalf
    of employees and their survivors to the extent attributable to the
    amendments made by sections 1241 and 1242, and the provisions of
    sections 1231(b) and 1243(a)(1), of the Panama Canal Act of 1979,
    and the amendments made by section 3506 of the Panama Canal
    Commission Authorization Act for Fiscal Year 1991.
      (2) The estimated increase in the unfunded liability referred to
    in paragraph (1) of this subsection shall be determined by the
    Office of Personnel Management. The Panama Canal Commission shall
    pay to the Fund from funds available to it for that purpose the
    amount so determined in annual installments with interest computed
    at the rate used in the most recent valuation of the Civil Service
    Retirement System.
      (j)(1) Notwithstanding subsection (c) of this section, the
    Secretary of the Treasury may suspend additional investment of
    amounts in the Fund if such additional investment could not be made
    without causing the public debt of the United States to exceed the
    public debt limit.
      (2) Any amounts in the Fund which, solely by reason of the public
    debt limit, are not invested shall be invested by the Secretary of
    the Treasury as soon as such investments can be made without
    exceeding the public debt limit.
      (3) Upon expiration of the debt issuance suspension period, the
    Secretary of the Treasury shall immediately issue to the Fund
    obligations under chapter 31 of title 31 that (notwithstanding
    subsection (d) of this section) bear such interest rates and
    maturity dates as are necessary to ensure that, after such
    obligations are issued, the holdings of the Fund will replicate to
    the maximum extent practicable the obligations that would then be
    held by the Fund if the suspension of investment under paragraph
    (1) of this subsection, and any redemption or disinvestment under
    subsection (k) of this section for the purpose described in such
    paragraph, during such period had not occurred.
      (4) On the first normal interest payment date after the
    expiration of any debt issuance suspension period, the Secretary of
    the Treasury shall pay to the Fund, from amounts in the general
    fund of the Treasury of the United States not otherwise
    appropriated, an amount determined by the Secretary to be equal to
    the excess of - 
        (A) the net amount of interest that would have been earned by
      the Fund during such debt issuance suspension period if - 
          (i) amounts in the Fund that were not invested during such
        debt issuance suspension period solely by reason of the public
        debt limit had been invested, and
          (ii) redemptions and disinvestments with respect to the Fund
        which occurred during such debt issuance suspension period
        solely by reason of the public debt limit had not occurred,
        over

        (B) the net amount of interest actually earned by the Fund
      during such debt issuance suspension period.

      (5) For purposes of this subsection and subsections (k) and (l)
    of this section - 
        (A) the term "public debt limit" means the limitation imposed
      by section 3101(b) of title 31; and
        (B) the term "debt issuance suspension period" means any period
      for which the Secretary of the Treasury determines for purposes
      of this subsection that the issuance of obligations of the United
      States may not be made without exceeding the public debt limit.

      (k)(1) Subject to paragraph (2) of this subsection, the Secretary
    of the Treasury may sell or redeem securities, obligations, or
    other invested assets of the Fund before maturity in order to
    prevent the public debt of the United States from exceeding the
    public debt limit.
      (2) The Secretary may sell or redeem securities, obligations, or
    other invested assets of the Fund under paragraph (1) of this
    subsection only during a debt issuance suspension period, and only
    to the extent necessary to obtain any amount of funds not exceeding
    the amount equal to the total amount of the payments authorized to
    be made from the Fund under the provisions of this subchapter or
    chapter 84 of this title or related provisions of law during such
    period. A sale or redemption may be made under this subsection even
    if, before the sale or redemption, there is a sufficient amount in
    the Fund to ensure that such payments are made in a timely manner.
      (l)(1) The Secretary of the Treasury shall report to Congress on
    the operation and status of the Fund during each debt issuance
    suspension period for which the Secretary is required to take
    action under paragraph (3) or (4) of subsection (j) of this
    section. The report shall be submitted as soon as possible after
    the expiration of such period, but not later than the date that is
    30 days after the first normal interest payment date occurring
    after the expiration of such period.
      (2) Whenever the Secretary of the Treasury determines that, by
    reason of the public debt limit, the Secretary will be unable to
    fully comply with the requirements of subsection (c) of this
    section, the Secretary shall immediately notify Congress of the
    determination. The notification shall be made in writing.