Supplemental Liability Law and Legal Definition

The term "supplemental liability" means “the estimated excess of--

(A) the actuarial present value of all future benefits payable from the Fund under this chapter [5 USCS §§ 8401 et seq.] based on the service of current or former employees or Members, over

(B) the sum of--

(i) the actuarial present value of deductions to be withheld from the future basic pay of employees and Members currently subject to this chapter [5 USCS §§ 8401 et seq.] pursuant to section 8422 [5 USCS § 8422];

(ii) the actuarial present value of the future contributions to be made pursuant to section 8423(a) [5 USCS § 8423(a)] with respect to employees and Members currently subject to this chapter [5 USCS §§ 8401 et seq.];

(iii) the Fund balance as of the date the supplemental liability is determined, to the extent that such balance is attributable--

(I) to the System, or

(II) to contributions made under the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 [5 USCS § 8331 note] by or on behalf of an individual who became subject to the System; and

(iv) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principle.” (5 USCS § 8401)