
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: 10USC1460]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
         CHAPTER 73--ANNUITIES BASED ON RETIRED OR RETAINER PAY
 
           SUBCHAPTER III--SUPPLEMENTAL SURVIVOR BENEFIT PLAN
 
Sec. 1460. Supplemental spouse coverage: reductions in retired 
        pay
        
    (a) Reduction Required.--The retired pay of a person who elects to 
provide a supplemental spouse annuity shall be reduced each month as 
required under regulations prescribed under subsection (b).
    (b) Regulations Determining Amount of Reduction.--Regulations for 
the purposes of subsection (a) shall be prescribed by the Secretary of 
Defense. Those regulations shall be based upon assumptions used by the 
Department of Defense Retirement Board of Actuaries in the valuation of 
military retirement and survivor benefit programs under chapter 74 of 
this title (including assumptions relating to mortality, interest rates, 
and inflation) and shall ensure the following:
        (1) That reductions in retired pay under this section are made 
    in amounts sufficient to provide that the Supplemental Survivor 
    Benefit Plan operates on an actuarially neutral basis.
        (2) That such reductions are stated, with respect to the base 
    amount (under the Survivor Benefit Plan) of any person, as a 
    constant percentage of that base amount and, in the case of a person 
    providing a supplemental spouse annuity computed under section 
    1457(b) of this title, a constant percentage of such person's base 
    amount for each 5 percent increment specified in accordance with 
    that section.
        (3) That the amounts of such reductions in retired pay of 
    persons participating in the Supplemental Survivor Benefit Plan 
    (stated as a percentage of base amount)--
            (A) are based on the age of the participant at the time 
        participation in that Plan is first effective under this 
        subchapter; and
            (B) are not determined by any other demographic 
        differentiation among participants in the Plan.

        (4) That such reductions are otherwise determined in accordance 
    with generally accepted actuarial principles and practices.

    (c) Suspension of Reduction When There Is No Spouse Beneficiary.--A 
reduction in retired pay under this section shall not be made in the 
case of any person during any month in which there is no eligible spouse 
or former spouse beneficiary.
    (d) Adjustments in Amount of Reduction.--Whenever the amount of the 
reduction in retired pay of a participant in the Survivor Benefit Plan 
is increased under section 1452(h) of this title or recomputed under 
section 1452(i) of this title, the amount of the reduction in that 
retired pay under this section shall be increased or recomputed, as the 
case may be, at the same time and in the same manner as that increase or 
recomputation.
    (e) Administrative Provisions.--The provisions of subsections (d) 
and (f) of section 1452 of this title apply with respect to the 
participation of a person in the Supplemental Survivor Benefit Plan in 
the same manner that those provisions apply under the Survivor Benefit 
Plan.

(Added Pub. L. 101-189, div. A, title XIV, Sec. 1404(a)(1), Nov. 29, 
1989, 103 Stat. 1584; amended Pub. L. 102-190, div. A, title VI, 
Sec. 653(b)(2), Dec. 5, 1991, 105 Stat. 1388.)


                               Amendments

    1991--Subsec. (b)(2). Pub. L. 102-190 inserted before period ``and, 
in the case of a person providing a supplemental spouse annuity computed 
under section 1457(b) of this title, a constant percentage of such 
person's base amount for each 5 percent increment specified in 
accordance with that section''.


                    Effective Date of 1991 Amendment

    Amendment by Pub. L. 102-190 effective Apr. 1, 1992, see section 
653(b)(3) of Pub. L. 102-190, set out as a note under section 1457 of 
this title.
