
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1436]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
         CHAPTER 73--ANNUITIES BASED ON RETIRED OR RETAINER PAY
 
        SUBCHAPTER I--RETIRED SERVICEMAN'S FAMILY PROTECTION PLAN
 
Sec. 1436. Computation of reduction in retired pay; withdrawal 
        for severe financial hardship
        
    (a) The reduction in the retired or retainer pay of any person who 
elects an annuity under this subchapter shall be computed by the armed 
force concerned as of the date when the person becomes eligible for that 
pay but without regard to any increase in that pay to reflect changes in 
the Consumer Price Index. It shall be computed under an actuarial 
equivalent method based on (1) appropriate actuarial tables selected by 
the Board of Actuaries, and (2) an interest rate of 3 percent a year, or 
such other rate as the Secretary of the Treasury, after considering the 
average yield on outstanding marketable long-term obligations of the 
United States during the preceding six months, may specify by August 1 
of any year for the following year. The method and tables shall be those 
in effect on the date as of which the computation is made.
    (b) Under regulations prescribed under section 1444(a) of this 
title, the Secretary concerned may, upon application by the retired 
member, allow the member--
        (1) to reduce the amount of the annuity specified by him under 
    section 1434(a) and 1434(b) of this title but to not less than the 
    prescribed minimum; or
        (2) to withdraw from participation in an annuity program under 
    this title; or
        (3) to elect the annuity provided under clause (1) of section 
    1434(a) of this title in place of the annuity provided under clause 
    (3) of such section, if on the first day for which retired or 
    retainer pay is granted the member had in effect a valid election 
    under clause (3) of such section, and he does not have a child 
    beneficiary who would be eligible for the annuity provided under 
    clause (3) of such section. For this purpose, a child (other than a 
    child who is incapable of supporting himself because of a mental 
    defect or physical incapacity existing before his eighteenth 
    birthday) who is at least eighteen, but under twenty-three years of 
    age shall not be considered an eligible beneficiary; or
        (4) to elect that a child (other than a child who is incapable 
    of supporting himself because of a mental defect or physical 
    incapacity existing before his eighteenth birthday) who is at least 
    eighteen, but under twenty-three years of age shall not be 
    considered eligible for the annuity provided under clause (2) of 
    section 1434(a) of this title, or for an annuity provided under 
    section 1434(b) of this title, if on the first day for which retired 
    or retainer pay is granted the member had in effect a valid election 
    under clause (2) of section 1434(a) of this title, or under section 
    1434(b) of this title.

A retired member may not reduce an annuity under clause (1) of this 
subsection, or withdraw under clause (2) of this subsection, earlier 
than the first day of the seventh calendar month beginning after he 
applies for reduction or withdrawal. A change of election under clause 
(3) of this subsection shall be effective on the first day of the month 
following the month in which application is made. An election under 
clause (4) of this subsection shall be effective on the first day of the 
month following the month in which application is made and, if on the 
effective date there is no surviving child who would be eligible for an 
annuity provided under clause (2) of section 1434(a), or under section 
1434(b), of this title if the elector died, no deduction shall be made 
for such an annuity to, or on behalf of, a child from the elector's 
retired or retainer pay for that month or any subsequent month. No 
amounts by which a member's retired or retainer pay is reduced prior to 
the effective date of a reduction of annuity, withdrawal, change of 
election, or election under this subsection may be refunded to, or 
credited on behalf of, the member by virtue of an application made by 
him under this subsection.

(Aug. 10, 1956, ch. 1041, 70A Stat. 110; Pub. L. 87-381, Sec. 4, Oct. 4, 
1961, 75 Stat. 811; Pub. L. 90-207, Sec. 2(a)(3), Dec. 16, 1967, 81 
Stat. 653; Pub. L. 90-485, Sec. 1(6), Aug. 13, 1968, 82 Stat. 753; Pub. 
L. 92-425, Sec. 1(2)(A), Sept. 21, 1972, 86 Stat. 706; Pub. L. 104-106, 
div. A, title XV, Sec. 1505(c), Feb. 10, 1996, 110 Stat. 514.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
1436..................................  37:373(c).                           Au
g. 8, 1953, ch. 393, Sec.  4(c),
                                                                              6
7 Stat. 503.
-------------------------------------------------------------------------------
---------------------------------

    The words ``of any person who elects an annuity'' are substituted 
for the words ``of an active or retired member who has made an 
election''. The words ``in each individual case'' and ``designated in 
section 8'' are omitted as surplusage. The words ``and as of the date of 
election in the case of a retired member'' are omitted as executed. 
37:373(c) (1st 23 words of last sentence) is omitted as otherwise 
covered by the language of the revised section.


                               Amendments

    1996--Subsec. (b). Pub. L. 104-106 made technical correction to 
directory language of Pub. L. 90-485, Sec. 1(6). See 1968 Amendment note 
below.
    1972--Subsec. (a). Pub. L. 92-425 substituted ``subchapter'' for 
``chapter''.
    1968--Subsec. (b). Pub. L. 90-485, as amended by Pub. L. 104-106, 
substituted provisions authorizing the Secretary to allow the member to 
reduce the amount of the annuity, allow the member to withdraw from 
participation in an annuity program, allow the member to elect the 
annuity provided in section 1434(a)(1) in place of the annuity provided 
in section 1434(a)(3) under the specified conditions, and allow the 
member to elect that a child at least 18, but under 23, not be eligible 
for the specified annuities, setting forth the times when such 
reduction, withdrawal, or change of election may take place, and 
disallowing the refunding or crediting of any amount previously 
withheld, for provisions authorizing the Secretary to allow the member 
to withdraw from participation in an annuity program whenever the 
Secretary considers it necessary because of the member's severe 
financial hardship, the absence of an eligible beneficiary not of itself 
to be a basis for such action.
    1967--Subsec. (a). Pub. L. 90-207 inserted ``but without regard to 
any increase in that pay to reflect changes in the Consumer Price 
Index'' after ``that pay''.
    1961--Pub. L. 87-381 designated existing provisions as subsec. (a), 
added subsec. (b), and inserted ``; withdrawal for severe financial 
hardship'' in section catchline.


                    Effective Date of 1996 Amendment

    Section 1505(c) of Pub. L. 104-106 provided that the amendment made 
by that section is effective Aug. 13, 1968, and as if included in Pub. 
L. 90-485 as originally enacted.


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-485 effective Aug. 13, 1968, see section 6 
of Pub. L. 90-485, set out as a note under section 1431 of this title.


                    Effective Date of 1967 Amendment

    Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7 of 
Pub. L. 90-207, set out as a note under section 203 of Title 37, Pay and 
Allowances of the Uniformed Services.

                  Section Referred to in Other Sections

    This section is referred to in section 1434 of this title.
