Accession Number : ADA612491

Title :   Fiscal Year 2014: Military Retirement Fund Audited Financial Report


Full Text :

Report Date : 07 Nov 2014

Pagination or Media Count : 66

Abstract : The reporting entity is the Department of Defense (DoD) Military Retirement Fund (MRF, or Fund ). The Military Retirement System (MRS) provides benefits for military members retirement from active duty and the reserves, disability retirement benefits, and survivor benefits. The MRF accumulates funds to finance, on an actuarial basis, the liabilities of DoD under military retirement and survivor benefit programs. Within DoD, the operations of the MRS are jointly overseen by the: (1) Office of the Under Secretary of Defense (Comptroller) (OUSD(C)), (2) Defense Finance and Accounting Service (DFAS), and (3) Office of the Under Secretary of Defense for Personnel and Readiness (OUSD(P&R)). DFAS is responsible for the accounting, investing, payment of benefits, and reporting of the MRF. The DoD Office of the Actuary (OACT) within OUSD(P&R) calculates the actuarial liability of the MRF. The Office of Military Personnel Policy within OUSD(P&R) issues policy related to MRS benefits. While the MRF does not have a specified Chief Financial Officer (CFO), the OUSD(C) has oversight of the MRF's financial reporting processes. The Fund was established by Public Law (P.L.) 98-94 (currently Chapter 74 of Title 10, U.S.C.) starting October 1, 1984. The Fund is overseen by an independent, three-member Secretary of Defense-appointed DoD Board of Actuaries ( Board ). The Board is required to review valuations of the MRS, determine the method of amortizing unfunded liabilities, report annually to the Secretary of Defense, and report to the President and the Congress at least once every four years on the status of the MRF. OACT provides all technical and administrative support to the Board. The Fund receives income from three sources: (1) normal cost payments from the Services and U.S. Treasury; (2) payment from the U.S. Treasury to amortize the unfunded liability; and (3) investment income.


Subject Categories : Economics and Cost Analysis
      Personnel Management and Labor Relations
      Military Forces and Organizations

Distribution Statement : APPROVED FOR PUBLIC RELEASE