[Code of Federal Regulations]
[Title 48, Volume 6]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR1615.805-70]

[Page 131]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
  CHAPTER 16--OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH 
                     BENEFITS ACQUISITION REGULATION
 
PART 1615--CONTRACTING BY NEGOTIATION--Table of Contents
 
                    Subpart 1615.8--Price Negotiation
 
Sec. 1615.805-70  Carrier investment of FEHB funds.

    (a) This paragraph does not apply to contracts based on a 
combination of cost and price analysis (community rated).
    (b) The carrier is required to invest and reinvest all funds on 
hand, including any attributable to the special reserve or the reserve 
for incurred but unpaid claims, exceeding the funds needed to discharge 
promptly the obligations incurred under the contract.
    (c) The carrier is required to credit income earned from its 
investment of FEHB funds to the special reserve on behalf of the FEHB 
Program. If a carrier fails to invest excess FEHB funds or to credit any 
income due the contract, for whatever reason, it shall return or credit 
any investment income lost to OPM or the special reserve.
    (d) Investment income. Investment income is the net amount earned by 
the carrier after deducting investment expenses.

[52 FR 16040, May 1, 1987, as amended at 55 FR 27415, July 2, 1990; 62 
FR 47575, Sept. 10, 1997]