Investment of the postal service retiree health benefits funds

Section 8909a(c) of title 5, United States Code, is amended— (1) by striking (c) The Secretary and inserting (c)(1) Subject to paragraph (2), the Secretary; and (2) by adding at the end the following: (2) (A) The Secretary of the Treasury shall immediately invest a specified percentage of the Fund, using one or more qualified professional asset managers, in index funds modeled after those established under subparagraphs (B), (C), (D), and (E) of section 8438(b)(1). The Secretary shall ensure, to the maximum extent practicable, that the investment replicates the performance of the longest-term target date asset allocation investment fund established by the Federal Retirement Thrift Investment Board. (B) In exercising authority under subparagraph (A), including in the selection of specific qualified professional asset managers and in the development of specific investment guidelines to meet the requirement of such subparagraph, the Secretary shall consult with the Postal Service Retiree Health Benefits Fund Investment Committee. (C) (i) There is established a Postal Service Retiree Health Benefits Fund Investment Committee that shall consist of— (I) the Secretary; (II) the Chair of the Board of Governors of the United States Postal Service; (III) the Chairman of the Federal Retirement Thrift Investment Board; and (IV) two members, appointed by the President, who— (aa) shall represent the interests of Postal Service employees and annuitants; (bb) have experience and expertise in the management of financial investments and Postal Service employee benefits; and (cc) shall serve for a term of 3 years. (ii) Subsections (b)(1) and (c)(2) of section 8477 shall apply with respect to the Postal Service Retiree Health Benefits Fund Investment Committee and each member of the Postal Service Retiree Health Benefits Fund Investment Committee in the same manner as such subsections apply to a fiduciary with respect to the Thrift Savings Fund. (D) (i) The Secretary shall annually engage an independent qualified public accountant (as defined in section 8439) to audit and provide a report on the financial statements of the investments made pursuant to subparagraph (A). (ii) Not later than 180 days after the end of each fiscal year beginning after the date of the enactment of this paragraph, the Secretary shall submit to Congress an annual management report regarding the Fund that includes— (I) a statement of financial position; (II) a statement of operations; (III) a statement of cash flows; (IV) a statement on internal accounting and administrative control systems; (V) the most recent report resulting from an audit of the financial statements of the investments conducted under clause (i); and (VI) any other comments and information the Secretary determines necessary to inform the Congress about the operations and financial condition of the investments. (E) In this paragraph— (i) the term specified percentage means 25 percent of the currently available portions of the Fund as are not immediately required for payments from the Fund, except that the Postal Service Retiree Health Benefits Fund Investment Committee may specify a higher percentage, not to exceed 30 percent, not earlier than 5 years after the date of enactment of the Postal Service Financial Improvement Act of 2019, and as appropriate thereafter; and (ii) the term qualified professional asset manager has the meaning given that term in section 8438(a)..