Reserves.

CFR · 2024-01-01 · US · Title 5

(a) The enrollment charge consists of the rate approved by OPM for payment to the plan for each enrollee, plus 4 percent, of which one part is for an administrative reserve and 3 parts are for a contingency reserve for the plan. (b) The administrative reserve is credited with the one one-hundred-and-fourth of the enrollment charge set aside for the administrative reserve. The administrative reserve is available for payment of administrative expenses of OPM incurred under this part, and for such other purposes as may be authorized by law. (c)(1) (i) The three one-hundred-and-fourths of the enrollment charge set aside for the contingency reserve from (ii) Amounts transferred in accordance with law from other contingency reserves and the administrative reserve; (iii) Income from investment of the reserve; (iv) Its proportionate share of the income from investment of the administrative reserve; and (v) Any return of reserves of the plan. (2) (3) (i) When, as of the end of a contract period, the total of all the reserves for an experience-rated plan is less than the target level described in the first four sentences of paragraph (c)(3) of this section, the carrier is entitled to payment from the contingency reserve. Such contingency reserve payment shall equal the lesser of: An amount equal to the difference between the target level for the plan's reserves and the total of the reserves for the plan, or an amount equal to the excess, if any, of the contingency reserve over the pref

official document · source cfr-2024 · id 5:§ 890.503