
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 642(b)]
[Document affected by Public Law 107-107 Section 642(c)(2)]
[CITE: 10USC1451]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
         CHAPTER 73--ANNUITIES BASED ON RETIRED OR RETAINER PAY
 
                  SUBCHAPTER II--SURVIVOR BENEFIT PLAN
 
Sec. 1451. Amount of annuity

    (a) Computation of Annuity for a Spouse, Former Spouse, or Child.--
        (1) Standard annuity.--In the case of a standard annuity 
    provided to a beneficiary under section 1450(a) of this title (other 
    than under section 1450(a)(4)), the monthly annuity payable to the 
    beneficiary shall be determined as follows:
            (A) Beneficiary under 62 years of age.--If the beneficiary 
        is under 62 years of age or is a dependent child when becoming 
        entitled to the annuity, the monthly annuity shall be the amount 
        equal to 55 percent of the base amount.
            (B) Beneficiary 62 years of age or older.--
                (i) General rule.--If the beneficiary (other than a 
            dependent child) is 62 years of age or older when becoming 
            entitled to the annuity, the monthly annuity shall be the 
            amount equal to 35 percent of the base amount.
                (ii) Rule if beneficiary eligible for social security 
            offset computation.--If the beneficiary is eligible to have 
            the annuity computed under subsection (e) and if, at the 
            time the beneficiary becomes entitled to the annuity, 
            computation of the annuity under that subsection is more 
            favorable to the beneficiary than computation under clause 
            (i), the annuity shall be computed under that subsection 
            rather than under clause (i).

        (2) Reserve-component annuity.--In the case of a reserve-
    component annuity provided to a beneficiary under section 1450(a) of 
    this title (other than under section 1450(a)(4)), the monthly 
    annuity payable to the beneficiary shall be determined as follows:
            (A) Beneficiary under 62 years of age.--If the beneficiary 
        is under 62 years of age or is a dependent child when becoming 
        entitled to the annuity, the monthly annuity shall be the amount 
        equal to a percentage of the base amount that--
                (i) is less than 55 percent; and
                (ii) is determined under subsection (f).

            (B) Beneficiary 62 years of age or older.--
                (i) General rule.--If the beneficiary (other than a 
            dependent child) is 62 years of age or older when becoming 
            entitled to the annuity, the monthly annuity shall be the 
            amount equal to a percentage of the base amount that--
                    (I) is less than 35 percent; and
                    (II) is determined under subsection (f).

                (ii) Rule if beneficiary eligible for social security 
            offset computation.--If the beneficiary is eligible to have 
            the annuity computed under subsection (e) and if, at the 
            time the beneficiary becomes entitled to the annuity, 
            computation of the annuity under that subsection is more 
            favorable to the beneficiary than computation under clause 
            (i), the annuity shall be computed under that subsection 
            rather than under clause (i).

    (b) Insurable Interest Beneficiary.--
        (1) Standard annuity.--In the case of a standard annuity 
    provided to a beneficiary under section 1450(a)(4) of this title, 
    the monthly annuity payable to the beneficiary shall be the amount 
    equal to 55 percent of the retired pay of the person who elected to 
    provide the annuity after the reduction in that pay in accordance 
    with section 1452(c) of this title.
        (2) Reserve-component annuity.--In the case of a reserve-
    component annuity provided to a beneficiary under section 1450(a)(4) 
    of this title, the monthly annuity payable to the beneficiary shall 
    be the amount equal to a percentage of the retired pay of the person 
    who elected to provide the annuity after the reduction in such pay 
    in accordance with section 1452(c) of this title that--
            (A) is less than 55 percent; and
            (B) is determined under subsection (f).

        (3) Computation of reserve-component annuity when participant 
    dies before age 60.--For the purposes of paragraph (2), a person--
            (A) who provides an annuity that is determined in accordance 
        with that paragraph;
            (B) who dies before becoming 60 years of age; and
            (C) who at the time of death is otherwise entitled to 
        retired pay,

    shall be considered to have been entitled to retired pay at the time 
    of death. The retired pay of such person for the purposes of such 
    paragraph shall be computed on the basis of the rates of basic pay 
    in effect on the date on which the annuity provided by such person 
    is to become effective in accordance with the designation of such 
    person under section 1448(e) of this title.

    (c) Annuities for Survivors of Certain Persons Dying During a Period 
of Special Eligibility for SBP.--
        (1) In general.--In the case of an annuity provided under 
    section 1448(d) or 1448(f) of this title, the amount of the annuity 
    shall be determined as follows:
            (A) Beneficiary under 62 years of age.--If the person 
        receiving the annuity is under 62 years of age or is a dependent 
        child when the member or former member dies, the monthly annuity 
        shall be the amount equal to 55 percent of the retired pay to 
        which the member or former member would have been entitled if 
        the member or former member had been entitled to that pay based 
        upon his years of active service when he died.
            (B) Beneficiary 62 years of age or older.--
                (i) General rule.--If the person receiving the annuity 
            (other than a dependent child) is 62 years of age or older 
            when the member or former member dies, the monthly annuity 
            shall be the amount equal to 35 percent of the retired pay 
            to which the member or former member would have been 
            entitled if the member or former member had been entitled to 
            that pay based upon his years of active service when he 
            died.
                (ii) Rule if beneficiary eligible for social security 
            offset computation.--If the beneficiary is eligible to have 
            the annuity computed under subsection (e) and if, at the 
            time the beneficiary becomes entitled to the annuity, 
            computation of the annuity under that subsection is more 
            favorable to the beneficiary than computation under clause 
            (i), the annuity shall be computed under that subsection 
            rather than under clause (i).

        (2) DIC offset.--An annuity computed under paragraph (1) that is 
    paid to a surviving spouse shall be reduced by the amount of 
    dependency and indemnity compensation to which the surviving spouse 
    is entitled under section 1311(a) of title 38. Any such reduction 
    shall be effective on the date of the commencement of the period of 
    payment of such compensation under title 38.
        (3) Servicemembers not yet granted retired pay.--In the case of 
    an annuity provided by reason of the service of a member described 
    in section 1448(d)(1)(B) or 1448(d)(1)(C) of this title who first 
    became a member of a uniformed service before September 8, 1980, the 
    retired pay to which the member would have been entitled when he 
    died shall be determined for purposes of paragraph (1) based upon 
    the rate of basic pay in effect at the time of death for the grade 
    in which the member was serving at the time of death, unless (as 
    determined by the Secretary concerned) the member would have been 
    entitled to be retired in a higher grade.
        (4) Rate of pay to be used in computing annuity.--In the case of 
    an annuity paid under section 1448(f) of this title by reason of the 
    service of a person who first became a member of a uniformed service 
    before September 8, 1980, the retired pay of the person providing 
    the annuity shall for the purposes of paragraph (1) be computed on 
    the basis of the rates of basic pay in effect on the effective date 
    of the annuity.

    (d) Reduction of Annuities at Age 62.--
        (1) Reduction required.--The annuity of a person whose annuity 
    is computed under subparagraph (A) of subsection (a)(1), (a)(2), or 
    (c)(1) shall be reduced on the first day of the month after the 
    month in which the person becomes 62 years of age.
        (2) Amount of annuity as reduced.--
            (A) 35 percent annuity.--Except as provided in subparagraph 
        (B), the reduced amount of the annuity shall be the amount of 
        the annuity that the person would be receiving on that date if 
        the annuity had initially been computed under subparagraph (B) 
        of that subsection.
            (B) Savings provision for beneficiaries eligible for social 
        security offset computation.--In the case of a person eligible 
        to have an annuity computed under subsection (e) and for whom, 
        at the time the person becomes 62 years of age, the annuity 
        computed with a reduction under subsection (e)(3) is more 
        favorable than the annuity with a reduction described in 
        subparagraph (A), the reduction in the annuity shall be computed 
        in the same manner as a reduction under subsection (e)(3).

    (e) Savings Provision for Certain Beneficiaries.--
        (1) Persons covered.--The following beneficiaries under the Plan 
    are eligible to have an annuity under the Plan computed under this 
    subsection:
            (A) A beneficiary receiving an annuity under the Plan on 
        October 1, 1985, as the surviving spouse or former spouse of the 
        person providing the annuity.
            (B) A spouse or former spouse beneficiary of a person who on 
        October 1, 1985--
                (i) was a participant in the Plan;
                (ii) was entitled to retired pay or was qualified for 
            that pay except that he had not applied for and been granted 
            that pay; or
                (iii) would have been eligible for reserve-component 
            retired pay but for the fact that he was under 60 years of 
            age.

        (2) Amount of annuity.--Subject to paragraph (3), an annuity 
    computed under this subsection is determined as follows:
            (A) Standard annuity.--In the case of the beneficiary of a 
        standard annuity, the annuity shall be the amount equal to 55 
        percent of the base amount.
            (B) Reserve-component annuity.--In the case of the 
        beneficiary of a reserve-component annuity, the annuity shall be 
        the percentage of the base amount that--
                (i) is less than 55 percent; and
                (ii) is determined under subsection (f).

            (C) Beneficiaries of persons dying during a period of 
        special eligibility for sbp.--In the case of the beneficiary of 
        an annuity under section 1448(d) or 1448(f) of this title, the 
        annuity shall be the amount equal to 55 percent of the retired 
        pay of the person providing the annuity (as that pay is 
        determined under subsection (c)).

        (3) Social security offset.--An annuity computed under this 
    subsection shall be reduced by the lesser of the following:
            (A) Social security computation.--The amount of the survivor 
        benefit, if any, to which the surviving spouse (or the former 
        spouse, in the case of a former spouse beneficiary who became a 
        former spouse under a divorce that became final after November 
        29, 1989) would be entitled under title II of the Social 
        Security Act (42 U.S.C. 401 et seq.) based solely upon service 
        by the person concerned as described in section 210(l)(1) of 
        such Act (42 U.S.C. 410(l)(1)) and calculated assuming that the 
        person concerned lives to age 65.
            (B) Maximum amount of reduction.--40 percent of the amount 
        of the monthly annuity as determined under paragraph (2).

        (4) Special rules for social security offset computation.--
            (A) Treatment of deductions made on account of work.--For 
        the purpose of paragraph (3), a surviving spouse (or a former 
        spouse, in the case of a person who becomes a former spouse 
        under a divorce that becomes final after November 29, 1989) 
        shall not be considered as entitled to a benefit under title II 
        of the Social Security Act (42 U.S.C. 401 et seq.) to the extent 
        that such benefit has been offset by deductions under section 
        203 of such Act (42 U.S.C. 403) on account of work.
            (B) Treatment of certain periods for which social security 
        refunds are made.--In the computation of any reduction made 
        under paragraph (3), there shall be excluded any period of 
        service described in section 210(l)(1) of the Social Security 
        Act (42 U.S.C. 410(l)(1))--
                (i) which was performed after December 1, 1980; and
                (ii) which involved periods of service of less than 30 
            continuous days for which the person concerned is entitled 
            to receive a refund under section 6413(c) of the Internal 
            Revenue Code of 1986 of the social security tax which the 
            person had paid.

    (f) Determination of Percentages Applicable to Computation of 
Reserve-Component Annuities.--The percentage to be applied in 
determining the amount of an annuity computed under subsection (a)(2), 
(b)(2), or (e)(2)(B) shall be determined under regulations prescribed by 
the Secretary of Defense. Such regulations shall be prescribed taking 
into consideration the following:
        (1) The age of the person electing to provide the annuity at the 
    time of such election.
        (2) The difference in age between such person and the 
    beneficiary of the annuity.
        (3) Whether such person provided for the annuity to become 
    effective (in the event he died before becoming 60 years of age) on 
    the day after his death or on the 60th anniversary of his birth.
        (4) Appropriate group annuity tables.
        (5) Such other factors as the Secretary considers relevant.

    (g) Adjustments to Annuities.--
        (1) Periodic adjustments for cost-of-living.--
            (A) Increases in annuities when retired pay increased.--
        Whenever retired pay is increased under section 1401a of this 
        title (or any other provision of law), each annuity that is 
        payable under the Plan shall be increased at the same time.
            (B) Percentage of increase.--The increase shall, in the case 
        of any annuity, be by the same percent as the percent by which 
        the retired pay of the person providing the annuity would have 
        been increased at such time if the person were alive (and 
        otherwise entitled to such pay).
            (C) Certain reductions to be disregarded.--The amount of the 
        increase shall be based on the monthly annuity payable before 
        any reduction under section 1450(c) of this title or under 
        subsection (c)(2).

        (2) Rounding down.--The monthly amount of an annuity payable 
    under this subchapter, if not a multiple of $1, shall be rounded to 
    the next lower multiple of $1.

    (h) Adjustments to Base Amount.--
        (1) Periodic adjustments for cost-of-living.--
            (A) Increases in base amount when retired pay increased.--
        Whenever retired pay is increased under section 1401a of this 
        title (or any other provision of law), the base amount 
        applicable to each participant in the Plan shall be increased at 
        the same time.
            (B) Percentage of increase.--The increase shall be by the 
        same percent as the percent by which the retired pay of the 
        participant is so increased.

        (2) Recomputation at age 62.--When the retired pay of a person 
    who first became a member of a uniformed service on or after August 
    1, 1986, and who is a participant in the Plan is recomputed under 
    section 1410 of this title upon the person's becoming 62 years of 
    age, the base amount applicable to that person shall be recomputed 
    (effective on the effective date of the recomputation of such 
    retired pay under section 1410 of this title) so as to be the amount 
    equal to the amount of the base amount that would be in effect on 
    that date if increases in such base amount under paragraph (1) had 
    been computed as provided in paragraph (2) of section 1401a(b) of 
    this title (rather than under paragraph (3) of that section).
        (3) Disregarding of retired pay reductions for retirement of 
    certain members before 30 years of service.--Computation of a 
    member's retired pay for purposes of this section shall be made 
    without regard to any reduction under section 1409(b)(2) of this 
    title.

    (i) Recomputation of Annuity for Certain Beneficiaries.--In the case 
of an annuity under the Plan which is computed on the basis of the 
retired pay of a person who would have been entitled to have that 
retired pay recomputed under section 1410 of this title upon attaining 
62 years of age, but who dies before attaining that age, the annuity 
shall be recomputed, effective on the first day of the first month 
beginning after the date on which the member or former member would have 
attained 62 years of age, so as to be the amount equal to the amount of 
the annuity that would be in effect on that date if increases under 
subsection (h)(1) in the base amount applicable to that annuity to the 
time of the death of the member or former member, and increases in such 
annuity under subsection (g)(1), had been computed as provided in 
paragraph (2) of section 1401a(b) of this title (rather than under 
paragraph (3) of that section).

(Added Pub. L. 92-425, Sec. 1(3), Sept. 21, 1972, 86 Stat. 709; amended 
Pub. L. 94-496, Sec. 1(4), Oct. 14, 1976, 90 Stat. 2375; Pub. L. 95-397, 
title II, Sec. 204, Sept. 30, 1978, 92 Stat. 846; Pub. L. 96-402, 
Sec. 3, Oct. 9, 1980, 94 Stat. 1705; Pub. L. 97-22, Sec. 11(a)(4), July 
10, 1981, 95 Stat. 137; Pub. L. 98-94, title IX, Sec. 922(a)(14)(B), 
Sept. 24, 1983, 97 Stat. 642; Pub. L. 98-525, title VI, Sec. 641(a), 
Oct. 19, 1984, 98 Stat. 2545; Pub. L. 99-145, title VII, Sec. 711(a), 
(b), Nov. 8, 1985, 99 Stat. 666, 670; Pub. L. 99-348, title III, 
Sec. 301(a)(2), (b), (c), July 1, 1986, 100 Stat. 702; Pub. L. 99-661, 
div. A, title VI, Sec. 642(b), title XIII, Sec. 1343(a)(8)(D), Nov. 14, 
1986, 100 Stat. 3886, 3992; Pub. L. 100-26, Sec. 7(h)(1), Apr. 21, 1987, 
101 Stat. 282; Pub. L. 100-224, Sec. 3(a), (c), Dec. 30, 1987, 101 Stat. 
1537; Pub. L. 100-456, div. A, title VI, Sec. 652(a), Sept. 29, 1988, 
102 Stat. 1991; Pub. L. 101-189, div. A, title XIV, Secs. 1403(a), 
1407(a)(5)-(8), (b)(1), Nov. 29, 1989, 103 Stat. 1579, 1588, 1589; Pub. 
L. 103-337, div. A, title X, Sec. 1070(e)(4), Oct. 5, 1994, 108 Stat. 
2859; Pub. L. 104-201, div. A, title VI, Sec. 634, Sept. 23, 1996, 110 
Stat. 2566; Pub. L. 105-85, div. A, title X, Sec. 1073(a)(28), Nov. 18, 
1997, 111 Stat. 1901; Pub. L. 106-65, div. A, title VI, Sec. 643(a)(1), 
Oct. 5, 1999, 113 Stat. 663.)

                       References in Text

    The Social Security Act, referred to in subsec. (e)(3)(A), (4)(A), 
is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the 
Social Security Act is classified generally to subchapter II (Sec. 401 
et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For 
complete classification of this Act to the Code, see section 1305 of 
Title 42 and Tables.
    Section 6413(c) of the Internal Revenue Code of 1986, referred to in 
subsec. (e)(4)(B)(ii), is classified to section 6413(c) of Title 26, 
Internal Revenue Code.


                               Amendments

    1999--Subsec. (h)(3). Pub. L. 106-65 inserted ``of certain members'' 
after ``retirement'' in heading.
    1997--Subsec. (a)(2). Pub. L. 105-85 substituted ``annuity.--'' for 
``annuity--'' in heading.
    1996--Pub. L. 104-201 amended section generally, revising and 
restating provisions relating to amounts of annuities and inserting 
subsec., par., and subpar. headings.
    1994--Subsec. (c)(2). Pub. L. 103-337 substituted ``section 1311(a) 
of title 38'' for ``section 411(a) of title 38''.
    1989--Subsec. (c)(3). Pub. L. 101-189, Sec. 1403(a), amended par. 
(3) generally. Prior to amendment, par. (3) read as follows: ``In the 
case of an annuity provided by a member described in section 
1448(d)(1)(C) of this title, the retired pay to which the member would 
have been entitled when he died shall be determined based upon the rate 
of basic pay in effect at the time of death for the highest grade other 
than a commissioned officer grade in which the member served on active 
duty satisfactorily, as determined by the Secretary concerned.''
    Subsec. (c)(4). Pub. L. 101-189, Sec. 1407(a)(5), inserted ``by 
reason of the service of a person who first became a member of a 
uniformed service before September 8, 1980''.
    Subsec. (e)(1). Pub. L. 101-189, Sec. 1407(a)(6), substituted 
``beneficiaries under the Plan'' for ``beneficiaries under the plan'' in 
introductory provisions.
    Subsec. (e)(1)(B). Pub. L. 101-189, Sec. 1407(a)(7), in cl. (i), 
substituted ``was'' for ``is'', in cl. (ii), substituted ``was'' for 
``is'' in two places and ``had'' for ``has'', and in cl. (iii), 
substituted ``would have been'' for ``would be'' and ``was'' for ``is''.
    Subsec. (e)(2)(A), (B). Pub. L. 101-189, Sec. 1407(a)(8), struck out 
``(as the base amount is adjusted from time to time under section 1401a 
of this title)'' after ``base amount''.
    Subsec. (e)(3)(A), (4)(A). Pub. L. 101-189, Sec. 1407(b)(1), 
inserted ``or former spouse'' after ``widow or widower''.
    1988--Subsec. (e)(1). Pub. L. 100-456 substituted ``widow, widower, 
or former spouse'' for ``widow or widower'' in subpar. (A), and inserted 
``or former spouse'' after ``A spouse'' in subpar. (B).
    1987--Subsec. (a)(1)(A), (B), (2)(A), (B). Pub. L. 100-224, 
Sec. 3(a)(2), struck out ``(as the base amount is adjusted from time to 
time under section 1401a of this title)'' after ``base amount''.
    Subsec. (e)(4)(B)(ii). Pub. L. 100-26 substituted ``Internal Revenue 
Code of 1986'' for ``Internal Revenue Code of 1954''.
    Subsec. (h). Pub. L. 100-224, Sec. 3(a)(1), designated existing 
provisions of subsec. (h) as par. (3) and added pars. (1) and (2).
    Subsec. (i). Pub. L. 100-224, Sec. 3(c), substituted ``so as to be 
the amount equal to the amount of the annuity that would be in effect on 
that date if increases under subsection (h)(1) in the base amount 
applicable to that annuity to the time of the death of the member or 
former member, and increases in such annuity under subsection (g)(1), 
had been computed as provided in paragraph (2) of section 1401a(b) of 
this title (rather than under paragraph (3) of that section)'' for ``on 
the basis of the amount of retired pay to which the member or former 
member would have been entitled upon recomputation of such pay effective 
on such date under section 1410 of this title, had the member or former 
member attained such age''.
    1986--Subsec. (a)(1)(A). Pub. L. 99-661, Sec. 1343(a)(8)(D), 
substituted ``section'' for ``subsection'' before ``1401a of this 
title''.
    Pub. L. 99-661, Sec. 642(b)(1)(A), inserted ``or is a dependent 
child''.
    Subsec. (a)(1)(B). Pub. L. 99-661, Sec. 642(b)(1)(B), inserted 
``(other than a dependent child)''.
    Subsec. (a)(2)(A). Pub. L. 99-661, Sec. 642(b)(1)(A), inserted ``or 
is a dependent child''.
    Subsec. (a)(2)(B). Pub. L. 99-661, Sec. 642(b)(1)(B), inserted 
``(other than a dependent child)''.
    Subsec. (c)(1)(A). Pub. L. 99-661, Sec. 642(b)(2)(A), inserted ``or 
is a dependent child''.
    Subsec. (c)(1)(B). Pub. L. 99-661, Sec. 642(b)(2)(B), inserted 
``(other than a dependent child)''.
    Subsec. (g)(1). Pub. L. 99-348, Sec. 301(b), struck out ``by the 
same total percent'' after ``same time'' in first sentence, and inserted 
provision that the increase, in the case of any annuity, be by the same 
percent as the percent by which the retired pay of the person providing 
the annuity would have been increased at such time if the person were 
alive, and otherwise entitled to such pay.
    Subsecs. (h), (i). Pub. L. 99-348, Sec. 301(a)(2), (c), added 
subsecs. (h) and (i).
    1985--Pub. L. 99-145, Sec. 711(a), amended section generally, 
eliminating the social security offset to the Plan and establishing a 
two-tier system under which the beneficiary would receive 55 percent of 
retired pay before age 62 and 35 percent thereafter in recognition of 
the entitlement to social security based on military service, and 
providing benefits to certain beneficiaries under either the old social 
security offset system or the new two-tier system, whichever is higher.
    Subsec. (a)(3). Pub. L. 99-145, Sec. 711(b), repealed Pub. L. 98-
525, Sec. 641(a), effective Sept. 1, 1985. See 1984 Amendment note 
below.
    1984--Subsec. (a)(3). Pub. L. 98-525, Sec. 641(a), which substituted 
``is entitled'' for ``would be entitled'' after ``widow or widower'' in 
first sentence and inserted ``or to the extent that the benefit to which 
the beneficiary is entitled is based on the beneficiary's own earnings 
or self-employment'' at end of second sentence, was repealed effective 
Sept. 1, 1985, by Pub. L. 99-145, Sec. 711(b). See Effective Date of 
1984 Amendment note below.
    1983--Subsec. (e). Pub. L. 98-94 added subsec. (e).
    1981--Subsec. (a)(4). Pub. L. 97-22 substituted ``December 1, 1980'' 
for ``the effective date of the Uniformed Services Survivor Benefits 
Amendments of 1980''.
    1980--Subsec. (a). Pub. L. 96-402, Sec. 3(a), in revising subsec. 
(a), designated as par. (1)(A) and (B) existing first sentence 
containing cls. (1) and (2) and provided in subpar. (A) for adjustment 
of the annuity from time to time under section 1401a of this title and 
in subpar. (B) for a similar adjustment after the date the person 
becomes entitled to retired pay under chapter 67 of this title; 
designated as par. (2) existing second sentence but provided for 
reduction of the annuity by the lesser of amounts indicated in subpar. 
(A) or (B), previously limited to reduction by amount prescribed in 
predecessor of subpar. (A) provision; designated existing third and 
fourth sentences as par. (3) and inserted annuity reduction provision 
described for par. (2); and added par. (4).
    Subsec. (c). Pub. L. 96-402, Sec. 3(b), substituted in first 
sentence ``this section or under section 1448(d) of this title'' for 
``this section, or section 1448(d) of this title, on the day before the 
effective day of that increase'' and in second sentence ``title or 
under'' for ``title, or'' before ``subsection (a)''.
    Subsec. (d). Pub. L. 96-402, Sec. 3(c), substituted reference to 
``subsection (a)(1)(B)'' for ``subsection (a)(2)''.
    1978--Subsec. (a). Pub. L. 95-397, Sec. 204(a), (b), substituted 
``The monthly annuity payable to a widow, widower, or dependent child 
who is entitled under section 1450(a) of this title to an annuity shall 
be--'' for ``If the widow or widower is under age 62 or there is a 
dependent child, the monthly annuity payable to the widow, widower, or 
dependent child, under section 1450 of this title shall be equal to 55 
percent of the base amount.'', and added pars. (1) and (2), and 
substituted ``For the purpose of the preceding sentence, a widow or 
widower shall not be considered as entitled to a benefit under 
subchapter II of chapter 7 of title 42 to the extent that such benefit 
has been offset by deductions under section 403 of title 42 on account 
of work'' for ``For the purpose of the preceding sentence, a widow or 
widower shall be considered as entitled to a benefit under subchapter II 
of chapter 7 of title 42 even though that benefit has been offset by 
deductions under section 403 of title 42 on account of work''.
    Subsec. (b). Pub. L. 95-397, Sec. 204(c), substituted ``The monthly 
annuity payable under section 1450(a)(4) of this title shall be--'' for 
``The monthly annuity payable under section 1450(a)(4) of this title 
shall be 55 percent of the retired or retainer pay of the person who 
elected to provide that annuity after the reduction in that retired or 
retainer pay in accordance with section 1452(c) of this title.'', added 
pars. (1) and (2) and provision following par. (2) relating to the 
entitlement to retirement pay, and computation thereof, by a person who 
provided an annuity and who dies before becoming 60 years of age.
    Subsec. (d). Pub. L. 95-397, Sec. 204(d), added subsec. (d).
    1976--Subsec. (b). Pub. L. 94-496 substituted ``(a)(4)'' for 
``(a)(3)''.


                    Effective Date of 1999 Amendment

    Amendment by Pub. L. 106-65 effective Oct. 1, 1999, see section 644 
of Pub. L. 106-65, set out as a note under section 1401a of this title.


                    Effective Date of 1989 Amendment

    Section 1407(b)(2) of Pub. L. 101-189 provided that: ``The 
amendments made by paragraph (1) [amending this section] shall apply 
only with respect to the computation of an annuity for a person who 
becomes a former spouse under a divorce that becomes final after the 
date of the enactment of this Act [Nov. 29, 1989].''


                    Effective Date of 1988 Amendment

    Section 652(b) of Pub. L. 100-456 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to payments 
under the Survivor Benefit Plan established under subchapter II of 
chapter 73 of title 10, United States Code, for periods after February 
28, 1986.''


                    Effective Date of 1986 Amendment

    Amendment by section 642(b) of Pub. L. 99-661 applicable to payments 
for periods after Feb. 28, 1986, see section 642(c) of Pub. L. 99-661, 
set out as a note under section 1448 of this title.


                    Effective Date of 1985 Amendment

    Amendment by section 711(a) of Pub. L. 99-145 effective Mar. 1, 
1986, with prohibition against accrual of benefits to any person by 
reason of the enactment of such title VII for any period before Mar. 1, 
1986, see section 731 of Pub. L. 99-145, set out as a note under section 
1447 of this title.
    Section 711(b) of Pub. L. 99-145 provided that the repeal of section 
641 of Pub. L. 98-525 [amending this section and enacting provision set 
out below] is effective Sept. 1, 1985.


                    Effective Date of 1984 Amendment

    Section 641(b) of Pub. L. 98-525, which provided that the amendments 
made by subsection (a), amending this section, was applicable only in 
the case of payments of annuities payable for periods that began on or 
after Sept. 30, 1985, was repealed effective Sept. 1, 1985, by section 
711(b) of Pub. L. 99-145.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-94 effective Oct. 1, 1983, see section 
922(e) of Pub. L. 98-94, set out as a note under section 1401 of this 
title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-402 effective Dec. 1, 1980, applicable to 
annuities payable for months beginning on or after such date, and 
prohibiting accrual of benefits for any period before Oct. 9, 1980, see 
section 7 of Pub. L. 96-402, set out as a note under section 1447 of 
this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-397 effective Oct. 1, 1978, and applicable 
to annuities payable by virtue of amendment for months beginning on or 
after such date, see section 210 of Pub. L. 95-397, set out as a note 
under section 1447 of this title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-496 effective Sept. 11, 1972, see section 3 
of Pub. L. 94-496, set out as a note under section 1447 of this title.


Adjustment of Annuities for Survivors of Certain Members Who Died While 
     on Active Duty Between September 21, 1972 and November 29, 1990

    Section 1403(b)-(d) of Pub. L. 101-189 provided that:
    ``(b) Adjustment of Annuities Already in Effect.--
        ``(1) Recomputation.--The Secretary concerned shall recompute 
    the annuity of any person who on the effective date specified in 
    subsection (d) is entitled to an annuity under the Survivor Benefit 
    Plan by reason of eligibility described in section 1448(d)(1)(B) or 
    1448(d)(1)(C) of title 10, United States Code, and who is further 
    described in subsection (c).
        ``(2) Amount of recomputed annuities.--The amount of the annuity 
    as so recomputed shall be the amount that would be in effect for 
    that annuity on the effective date specified in subsection (d) if 
    the annuity had originally been computed subject to the provisions 
    of paragraph (3) of section 1451(c) of title 10, United States Code, 
    as amended by subsection (a).
    ``(c) Persons Eligible for Recomputation.--A person is eligible to 
have an annuity under the Survivor Benefit Plan recomputed under 
subsection (b) if--
        ``(1) the annuity is based upon the service of a member of the 
    uniformed services who died on active duty during the period 
    beginning on September 21, 1972, and ending on the effective date 
    specified in subsection (d); and
        ``(2) the retired pay of that member for the purposes of 
    determining the amount of the annuity under the Survivor Benefit 
    Plan was computed using a rate of basic pay lower than the rate of 
    basic pay in effect at the time of death for the grade in which the 
    member was serving at the time of death.
    ``(d) Effective Date.--An annuity recomputed under subsection (b) 
shall take effect as so recomputed on March 1, 1990.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1448, 1450, 1452, 1457, 1458 
of this title.
