; (2) in the first year after the initial contract year, shall subsidize 50 percent of the Medicare part B premium payments; and (3) in the second year after the initial contract year, shall subsidize 25 percent of the Medicare part B premium payments. (c) Fund The Postal Service shall establish a fund to provide the subsidies required under subsection (b). 104. Postal Service pension funding reform (a) Civil Service Retirement System Section 8348(h) of title 5, United States Code, is amended— (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: (B) The Office shall redetermine the Postal surplus or supplemental liability as of the close of the fiscal year, for each fiscal year beginning after September 30, 2016. Subject to subparagraph (C), beginning June 15, 2018, if the result is a surplus or a supplemental liability, the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of the surplus or liability to the Postal Service or the Fund (as the case may be) by September 30, 2043. (C) Not later than June 30, 2033, the Office shall determine, and thereafter shall redetermine as necessary, but not more frequently than once per year, the appropriate date by which to complete the liquidation of any remaining surplus or liability determined under this paragraph. The appropriate date shall be determined in accordance with generally accepted actuarial practices and principles and shall not be later than 15 years after the date on which the determination is made. ; and (2) by adding at the end the following: (4) For the purpose of carrying out paragraph (1), for fiscal year 2017 and each fiscal year thereafter, the Office shall use— (A) demographic factors specific to current and former employees of the United States Postal Service, unless such data cannot be generated