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U.S. Code as of:
01/19/04
Section 1450. Payment of annuity: beneficiaries
(a) In General. - Effective as of the first day after the death
of a person to whom section 1448 of this title applies (or on such
other day as that person may provide under subsection (j)), a
monthly annuity under section 1451 of this title shall be paid to
the person's beneficiaries under the Plan, as follows:
(1) Surviving spouse or former spouse. - The eligible surviving
spouse or the eligible former spouse.
(2) Surviving children. - The surviving dependent children in
equal shares, if the eligible surviving spouse or the eligible
former spouse is dead, dies, or otherwise becomes ineligible
under this section.
(3) Dependent children. - The dependent children in equal
shares if the person to whom section 1448 of this title applies
(with the concurrence of the person's spouse, if required under
section 1448(a)(3) of this title) elected to provide an annuity
for dependent children but not for the spouse or former spouse.
(4) Natural person designated under "insurable interest"
coverage. - The natural person designated under section
1448(b)(1) of this title, unless the election to provide an
annuity to the natural person has been changed as provided in
subsection (f).
(b) Termination of Annuity for Death, Remarriage Before Age 55,
Etc. -
(1) General rule. - An annuity payable to the beneficiary
terminates effective as of the first day of the month in which
eligibility is lost.
(2) Termination of spouse annuity upon death or remarriage
before age 55. - An annuity for a surviving spouse or former
spouse shall be paid to the surviving spouse or former spouse
while the surviving spouse or former spouse is living or, if the
surviving spouse or former spouse remarries before reaching age
55, until the surviving spouse or former spouse remarries.
(3) Effect of termination of subsequent marriage before age 55.
- If the surviving spouse or former spouse remarries before
reaching age 55 and that marriage is terminated by death,
annulment, or divorce, payment of the annuity shall be resumed
effective as of the first day of the month in which the marriage
is so terminated. However, if the surviving spouse or former
spouse is also entitled to an annuity under the Plan based upon
the marriage so terminated, the surviving spouse or former spouse
may not receive both annuities but must elect which to receive.
(c) Offset for Amount of Dependency and Indemnity Compensation. -
(1) Required offset. - If, upon the death of a person to whom
section 1448 of this title applies, the surviving spouse or
former spouse of that person is also entitled to dependency and
indemnity compensation under section 1311(a) of title 38, the
surviving spouse or former spouse may be paid an annuity under
this section, but only in the amount that the annuity otherwise
payable under this section would exceed that compensation.
(2) Effective date of offset. - A reduction in an annuity under
this section required by paragraph (1) shall be effective on the
date of the commencement of the period of payment of such
dependency and indemnity compensation under title 38.
(d) Limitation on Payment of Annuities When Coverage Under Civil
Service Retirement Elected. - If, upon the death of a person to
whom section 1448 of this title applies, that person had in effect
a waiver of that person's retired pay for the purposes of
subchapter III of chapter 83 of title 5, an annuity under this
section shall not be payable unless, in accordance with section
8339(j) of title 5, that person notified the Office of Personnel
Management that he did not desire any spouse surviving him to
receive an annuity under section 8341(b) of that title.
(e) Refund of Amounts Deducted From Retired Pay When DIC Offset
Is Applicable. -
(1) Full refund when dic greater than sbp annuity. - If an
annuity under this section is not payable because of subsection
(c), any amount deducted from the retired pay of the deceased
under section 1452 of this title shall be refunded to the
surviving spouse or former spouse.
(2) Partial refund when sbp annuity reduced by dic. - If,
because of subsection (c), the annuity payable is less than the
amount established under section 1451 of this title, the annuity
payable shall be recalculated under that section. The amount of
the reduction in the retired pay required to provide that
recalculated annuity shall be computed under section 1452 of this
title, and the difference between the amount deducted before the
computation of that recalculated annuity and the amount that
would have been deducted on the basis of that recalculated
annuity shall be refunded to the surviving spouse or former
spouse.
(f) Change in Election of Insurable Interest or Former Spouse
Beneficiary. -
(1) Authorized changes. -
(A) Election in favor of spouse or child. - A person who
elects to provide an annuity to a person designated by him
under section 1448(b) of this title may, subject to paragraph
(2), change that election and provide an annuity to his spouse
or dependent child.
(B) Notice. - The Secretary concerned shall notify the former
spouse or other natural person previously designated under
section 1448(b) of this title of any change of election under
subparagraph (A).
(C) Procedures, effective date, etc. - Any such change of
election is subject to the same rules with respect to
execution, revocation, and effectiveness as are set forth in
section 1448(a)(5) of this title (without regard to the
eligibility of the person making the change of election to make
such an election under that section). Notwithstanding the
preceding sentence, a change of election under this subsection
to provide an annuity to a spouse instead of a former spouse
may (subject to paragraph (2)) be made at any time after the
person providing the annuity remarries without regard to the
time limitation in section 1448(a)(5)(B) of this title.
(2) Limitation on change in beneficiary when former spouse
coverage in effect. - A person who, incident to a proceeding of
divorce, dissolution, or annulment, is required by a court order
to elect under section 1448(b) of this title to provide an
annuity to a former spouse (or to both a former spouse and
child), or who enters into a written agreement (whether voluntary
or required by a court order) to make such an election, and who
makes an election pursuant to such order or agreement, may not
change that election under paragraph (1) unless, of the following
requirements, whichever are applicable in a particular case are
satisfied:
(A) In a case in which the election is required by a court
order, or in which an agreement to make the election has been
incorporated in or ratified or approved by a court order, the
person -
(i) furnishes to the Secretary concerned a certified copy
of a court order which is regular on its face and which
modifies the provisions of all previous court orders relating
to such election, or the agreement to make such election, so
as to permit the person to change the election; and
(ii) certifies to the Secretary concerned that the court
order is valid and in effect.
(B) In a case of a written agreement that has not been
incorporated in or ratified or approved by a court order, the
person -
(i) furnishes to the Secretary concerned a statement, in
such form as the Secretary concerned may prescribe, signed by
the former spouse and evidencing the former spouse's
agreement to a change in the election under paragraph (1);
and
(ii) certifies to the Secretary concerned that the
statement is current and in effect.
(3) Required former spouse election to be deemed to have been
made. -
(A) Deemed election upon request by former spouse. - If a
person described in paragraph (2) or (3) of section 1448(b) of
this title is required (as described in subparagraph (B)) to
elect under section 1448(b) of this title to provide an annuity
to a former spouse and such person then fails or refuses to
make such an election, such person shall be deemed to have made
such an election if the Secretary concerned receives the
following:
(i) Request from former spouse. - A written request, in
such manner as the Secretary shall prescribe, from the former
spouse concerned requesting that such an election be deemed
to have been made.
(ii) Copy of court order or other official statement. -
Either -
(I) a copy of the court order, regular on its face, which
requires such election or incorporates, ratifies, or
approves the written agreement of such person; or
(II) a statement from the clerk of the court (or other
appropriate official) that such agreement has been filed
with the court in accordance with applicable State law.
(B) Persons required to make election. - A person shall be
considered for purposes of subparagraph (A) to be required to
elect under section 1448(b) of this title to provide an annuity
to a former spouse if -
(i) the person enters, incident to a proceeding of divorce,
dissolution, or annulment, into a written agreement to make
such an election and the agreement (I) has been incorporated
in or ratified or approved by a court order, or (II) has been
filed with the court of appropriate jurisdiction in
accordance with applicable State law; or
(ii) the person is required by a court order to make such
an election.
(C) Time limit for request by former spouse. - An election
may not be deemed to have been made under subparagraph (A) in
the case of any person unless the Secretary concerned receives
a request from the former spouse of the person within one year
of the date of the court order or filing involved.
(D) Effective date of deemed election. - An election deemed
to have been made under subparagraph (A) shall become effective
on the day referred to in section 1448(b)(3)(E)(ii) of this
title.
(4) Former spouse coverage may be required by court order. - A
court order may require a person to elect (or to enter into an
agreement to elect) under section 1448(b) of this title to
provide an annuity to a former spouse (or to both a former spouse
and child).
(g) Limitation on Changing or Revoking Elections. -
(1) In general. - An election under this section may not be
changed or revoked.
(2) Exceptions. - Paragraph (1) does not apply to -
(A) a revocation of an election under section 1449(b) of this
title; or
(B) a change in an election under subsection (f).
(h) Treatment of Annuities Under Other Laws. - Except as provided
in section 1451 of this title, an annuity under this section is in
addition to any other payment to which a person is entitled under
any other provision of law. Such annuity shall be considered as
income under laws administered by the Secretary of Veterans
Affairs.
(i) Annuities Exempt From Certain Legal Process. - Except as
provided in subsection (l)(3)(B), an annuity under this section is
not assignable or subject to execution, levy, attachment,
garnishment, or other legal process.
(j) Effective Date of Reserve-Component Annuities. -
(1) Persons making section 1448(e) designation. - A
reserve-component annuity shall be effective in accordance with
the designation made under section 1448(e) of this title by the
person providing the annuity.
(2) Persons dying before making section 1448(e) designation. -
An annuity payable under section 1448(f) of this title shall be
effective on the day after the date of the death of the person
upon whose service the right to the annuity is based.
(k) Adjustment of Spouse or Former Spouse Annuity Upon Loss of
Dependency and Indemnity Compensation. -
(1) Readjustment if beneficiary 55 years of age or more. - If a
surviving spouse or former spouse whose annuity has been adjusted
under subsection (c) subsequently loses entitlement to dependency
and indemnity compensation under section 1311(a) of title 38
because of the remarriage of the surviving spouse, or former
spouse, and if at the time of such remarriage the surviving
spouse or former spouse is 55 years of age or more, the amount of
the annuity of the surviving spouse or former spouse shall be
readjusted, effective on the effective date of such loss of
dependency and indemnity compensation, to the amount of the
annuity which would be in effect with respect to the surviving
spouse or former spouse if the adjustment under subsection (c)
had never been made.
(2) Repayment of amounts previously refunded. -
(A) General rule. - A surviving spouse or former spouse whose
annuity is readjusted under paragraph (1) shall repay any
amount refunded under subsection (e) by reason of the
adjustment under subsection (c).
(B) Interest required if repayment not a lump sum. - If the
repayment is not made in a lump sum, the surviving spouse or
former spouse shall pay interest on the amount to be repaid.
Such interest shall commence on the date on which the first
such payment is due and shall be applied over the period during
which any part of the repayment remains to be paid.
(C) Manner of repayment; rate of interest. - The manner in
which such repayment shall be made, and the rate of any such
interest, shall be prescribed in regulations under section 1455
of this title.
(D) Deposit of amounts repaid. - An amount repaid under this
paragraph (including any such interest) received by the
Secretary of Defense shall be deposited into the Department of
Defense Military Retirement Fund. Any other amount repaid under
this paragraph shall be deposited into the Treasury as
miscellaneous receipts.
(l) Participants in the Plan Who Are Missing. -
(1) Authority to presume death of missing participant. -
(A) In general. - Upon application of the beneficiary of a
participant in the Plan who is missing, the Secretary concerned
may determine for purposes of this subchapter that the
participant is presumed dead.
(B) Participant who is missing. - A participant in the Plan
is considered to be missing for purposes of this subsection if
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(i) the retired pay of the participant has been suspended
on the basis that the participant is missing; or
(ii) in the case of a participant in the Plan who would be
eligible for reserve-component retired pay but for the fact
that he is under 60 years of age, his retired pay, if he were
entitled to retired pay, would be suspended on the basis that
he is missing.
(C) Requirements applicable to presumption of death. - Any
such determination shall be made in accordance with regulations
prescribed under section 1455 of this title. The Secretary
concerned may not make a determination for purposes of this
subchapter that a participant who is missing is presumed dead
unless the Secretary finds that -
(i) the participant has been missing for at least 30 days;
and
(ii) the circumstances under which the participant is
missing would lead a reasonably prudent person to conclude
that the participant is dead.
(2) Commencement of annuity. - Upon a determination under
paragraph (1) with respect to a participant in the Plan, an
annuity otherwise payable under this subchapter shall be paid as
if the participant died on the date as of which the retired pay
of the participant was suspended.
(3) Effect of person not being dead. -
(A) Termination of annuity. - If, after a determination under
paragraph (1), the Secretary concerned determines that the
participant is alive -
(i) any annuity being paid under this subchapter by reason
of this subsection shall be terminated; and
(ii) the total amount of any annuity payments made by
reason of this subsection shall constitute a debt to the
United States.
(B) Collection from participant of annuity amounts
erroneously paid. - A debt under subparagraph (A)(ii) may be
collected or offset -
(i) from any retired pay otherwise payable to the
participant;
(ii) if the participant is entitled to compensation under
chapter 11 of title 38, from that compensation; or
(iii) if the participant is entitled to any other payment
from the United States, from that payment.
(C) Collection from beneficiary. - If the participant dies
before the full recovery of the amount of annuity payments
described in subparagraph (A)(ii) has been made by the United
States, the remaining amount of such annuity payments may be
collected from the participant's beneficiary under the Plan if
that beneficiary was the recipient of the annuity payments made
by reason of this subsection.
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