[Code of Federal Regulations]
[Title 48, Volume 6]
[Revised as of October 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR1631.205-79]

[Page 139]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
  CHAPTER 16--OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH 
                     BENEFITS ACQUISITION REGULATION
 
PART 1631_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
         Subpart 1631.2_Contracts With Commercial Organizations
 
Sec. 1631.205-79  Mandatory statutory reserves.

    Charges for mandatory statutory reserves are not allowed unless 
provided for in the contract. When the term ``mandatory statutory 
reserve'' is specifically identified as an allowable contract charge 
without further definition or explanation, it means a requirement 
imposed by State law upon the carrier to set aside a specific amount or 
rate of funds into a restricted reserve that is accounted for separately 
from all other reserves and surpluses of the carrier and which may be 
used only with the specific approval of the State official designated by 
law to make such approvals. The amount chargeable to the contract may 
not exceed an allocable portion of the amount actually set aside. If the 
statutory reserve is no longer required for the purpose for which it was 
created, and these funds become available for the general use of the 
carrier, a pro rata share based upon FEHBP's contribution to the total 
carrier's set aside shall be returned to the FEHBP in accordance with 
FAR 31.201-5.