im
Benefit c e r t ificates.
Retired employees' insurance agreements, etc. Assumption by fund.
Payments.
Transfer of ass e t s or liability amount.
Restrictions.
Promulgation of regulations.
Advisory C o u n cil o n GiToup Insurance.
Committee.
PUBLIC LAW 598-AUG. 17, 1954
[68
STAT,
fund, subject to the right of the insurance company or companies issuing the policy to make such deposit in equal monthly-installments over a period of not more than two years. SEC. 9. The Commission shall arrange to have each employee insured under such policy receive a certificate setting forth the benefits to which the employee is entitled thereunder, to whom such benefits shall be payable, to whom claims should be submitted, and summarizing the provisions of the policy principally affecting the employee. Such certificate shall be in lieu of the certificate which the insurance company or companies would otherwise be required to issue. SEC. 10. (a) The Commission is authorized to arrange with any nonprofit association of Federal employees for the assumption by the fund of any existing life insurance agreements of such association with its members retired or otherwise separated from the Federal service and to insure the obligations assumed with any company or companies meeting the requirements of section 7(a). (b) Any such arrangement shall provide that payments by such insured members for life insurance only shall th? reafter be made at the same rates to the fund, under such conditioika.,rfS the Commission may prescribe. (c) Any such arrangement shall further provide that there be transferred to and deposited in the fund the lesser of the following amounts: (1) The total assets of the life insurance fund of such association; or (2) The amount required to meet the liabilities under life insurance agreements assumed, taking into account the payments as provided in paragraph (b). The determination of this amount shall be based on an actuarial valuation satisfactory to the Commission, procured by the association without expense to the Commission. (d) The arrangements authorized by this section shall be made only with those associations which terminate life insurance agreements with all of their members within one year after the date of enactment of this Act, and such arrangements shall apply only to life insurance granted to any member by any such association before January 1, 1954. (e) I n any case in which the fund assumes a liability for life insurance as provided in this section in respect to a person who (1) subsequently becomes eligible to be insured as an employee under this Act, and (2) does not give notice, as provided in section 5(a), of his desire not to be so insured, the life insurance provided under this section shall terminate as of the date such person becomes insured as an employee. SEC. 11. Except as otherwise provided herein, the Commission is hereby authorized to promulgate such regulations as may be necessary and proper to give elOfect to the intent, purposes, and provisions of this Act. SEC. 12. (a) There is hereby established an Advisory Council on Group Insurance consisting of the Secretary of the Treasury as Chairman, the Secretary of Labor, and the Director of the Bureau of the Budget, who shall serve without additional compensation. The Council shall meet once a year, or oftener at the call of the Commission, and shall review the operations of this Act and advise the Commission on matters of policy relating to its activities thereunder. (b) The Chairman of the Commission shall appoint a committee composed of five employees insured under this Act, who shall serve without compensation, to advise the Commission regarding matters of concern to employees under this Act.
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