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U.S. Code as of:
01/19/04
Section 1452. Reduction in retired pay
(a) Spouse and Former Spouse Annuities. -
(1) Required reduction in retired pay. - Except as provided in
subsection (b), the retired pay of a participant in the Plan who
is providing spouse coverage (as described in paragraph (5))
shall be reduced as follows:
(A) Standard annuity. - If the annuity coverage being
provided is a standard annuity, the reduction shall be as
follows:
(i) Disability and nonregular service retirees. - In the
case of a person who is entitled to retired pay under chapter
61 or chapter 1223 of this title, the reduction shall be in
whichever of the alternative reduction amounts is more
favorable to that person.
(ii) Members as of enactment of flat-rate reduction. - In
the case of a person who first became a member of a uniformed
service before March 1, 1990, the reduction shall be in
whichever of the alternative reduction amounts is more
favorable to that person.
(iii) New entrants after enactment of flat-rate reduction.
- In the case of a person who first becomes a member of a
uniformed service on or after March 1, 1990, and who is
entitled to retired pay under a provision of law other than
chapter 61 or chapter 1223 of this title, the reduction shall
be in an amount equal to 6 1/2 percent of the base amount.
(iv) Alternative reduction amounts. - For purposes of
clauses (i) and (ii), the alternative reduction amounts are
the following:
(I) Flat-rate reduction. - An amount equal to 6 1/2
percent of the base amount.
(II) Amount under pre-flat-rate reduction. - An amount
equal to 2 1/2 percent of the first $337 (as adjusted
after November 1, 1989, under paragraph (4)) of the base
amount plus 10 percent of the remainder of the base amount.
(B) Reserve-component annuity. - If the annuity coverage
being provided is a reserve-component annuity, the reduction
shall be in whichever of the following amounts is more
favorable to that person:
(i) Flat-rate reduction. - An amount equal to 6 1/2
percent of the base amount plus an amount determined in
accordance with regulations prescribed by the Secretary of
Defense as a premium for the additional coverage provided
through reserve-component annuity coverage under the Plan.
(ii) Amount under pre-flat-rate reduction. - An amount
equal to 2 1/2 percent of the first $337 (as adjusted after
November 1, 1989, under paragraph (4)) of the base amount
plus 10 percent of the remainder of the base amount plus an
amount determined in accordance with regulations prescribed
by the Secretary of Defense as a premium for the additional
coverage provided through reserve-component annuity coverage
under the Plan.
(2) Additional reduction for child coverage. - If there is a
dependent child as well as a spouse or former spouse, the amount
prescribed under paragraph (1) shall be increased by an amount
prescribed under regulations of the Secretary of Defense.
(3) No reduction when no beneficiary. - The reduction in
retired pay prescribed by paragraph (1) shall not be applicable
during any month in which there is no eligible spouse or former
spouse beneficiary.
(4) Periodic adjustments. -
(A) Adjustments for increases in rates of basic pay. -
Whenever there is an increase in the rates of basic pay of
members of the uniformed services effective on or after October
1, 1985, the amounts under paragraph (1) with respect to which
the percentage factor of 2 1/2 is applied shall be increased
by the overall percentage of such increase in the rates of
basic pay. The increase under the preceding sentence shall
apply only with respect to persons whose retired pay is
computed based on the rates of basic pay in effect on or after
the date of such increase in rates of basic pay.
(B) Adjustments for retired pay colas. - In addition to the
increase under subparagraph (A), the amounts under paragraph
(1) with respect to which the percentage factor of 2 1/2 is
applied shall be further increased at the same time and by the
same percentage as an increase in retired pay under section
1401a of this title effective on or after October 1, 1985. Such
increase under the preceding sentence shall apply only with
respect to a person who initially participates in the Plan on a
date which is after both the effective date of such increase
under section 1401a and the effective date of the rates of
basic pay upon which that person's retired pay is computed.
(5) Spouse coverage described. - For the purposes of paragraph
(1), a participant in the Plan who is providing spouse coverage
is a participant who -
(A) has (i) a spouse or former spouse, or (ii) a spouse or
former spouse and a dependent child; and
(B) has not elected to provide an annuity to a person
designated by him under section 1448(b)(1) of this title or,
having made such an election, has changed his election in favor
of his spouse under section 1450(f) of this title.
(b) Child-Only Annuities. -
(1) Required reduction in retired pay. - The retired pay of a
participant in the Plan who is providing child-only coverage (as
described in paragraph (4)) shall be reduced by an amount
prescribed under regulations by the Secretary of Defense.
(2) No reduction when no child. - There shall be no reduction
in retired pay under paragraph (1) for any month during which the
participant has no eligible dependent child.
(3) Special rule for certain rcsbp participants. - In the case
of a participant in the Plan who is participating in the Plan
under an election under section 1448(a)(2)(B) of this title and
who provided child-only coverage during a period before the
participant becomes entitled to receive retired pay, the retired
pay of the participant shall be reduced by an amount prescribed
under regulations by the Secretary of Defense to reflect the
coverage provided under the Plan during the period before the
participant became entitled to receive retired pay. A reduction
under this paragraph is in addition to any reduction under
paragraph (1) and is made without regard to whether there is an
eligible dependent child during a month for which the reduction
is made.
(4) Child-only coverage defined. - For the purposes of this
subsection, a participant in the Plan who is providing child-only
coverage is a participant who has a dependent child and who -
(A) does not have an eligible spouse or former spouse; or
(B) has a spouse or former spouse but has elected to provide
an annuity for dependent children only.
(c) Reduction for Insurable Interest Coverage. -
(1) Required reduction in retired pay. - The retired pay of a
person who has elected to provide an annuity to a person
designated by him under section 1450(a)(4) of this title shall be
reduced as follows:
(A) Standard annuity. - In the case of a person providing a
standard annuity, the reduction shall be by 10 percent plus 5
percent for each full five years the individual designated is
younger than that person.
(B) Reserve component annuity. - In the case of a person
providing a reserve-component annuity, the reduction shall be
by an amount prescribed under regulations of the Secretary of
Defense.
(2) Limitation on total reduction. - The total reduction under
paragraph (1) may not exceed 40 percent.
(3) Duration of reduction. - The reduction in retired pay
prescribed by this subsection shall continue during the lifetime
of the person designated under section 1450(a)(4) of this title
or until the person receiving retired pay changes his election
under section 1450(f) of this title.
(4) Rule for computation. - Computation of a member's retired
pay for purposes of this subsection shall be made without regard
to any reduction under section 1409(b)(2) of this title.
(d) Deposits To Cover Periods When Retired Pay Not Paid. -
(1) Required deposits. - If a person who has elected to
participate in the Plan has been awarded retired pay and is not
entitled to that pay for any period, that person must deposit in
the Treasury the amount that would otherwise have been deducted
from his pay for that period.
(2) Deposits not required when participant on active duty. -
Paragraph (1) does not apply to a person with respect to any
period when that person is on active duty under a call or order
to active duty for a period of more than 30 days.
(e) Deposits Not Required for Certain Participants in CSRS. -
When a person who has elected to participate in the Plan waives
that person's retired pay for the purposes of subchapter III of
chapter 83 of title 5, that person shall not be required to make
the deposit otherwise required by subsection (d) as long as that
waiver is in effect unless, in accordance with section 8339(j) of
title 5, that person has notified the Office of Personnel
Management that he does not desire a spouse surviving him to
receive an annuity under section 8341(b) of title 5.
(f) Refunds of Deductions Not Allowed. -
(1) General rule. - A person is not entitled to refund of any
amount deducted from retired pay under this section.
(2) Exceptions. - Paragraph (1) does not apply -
(A) in the case of a refund authorized by section 1450(e) of
this title; or
(B) in case of a deduction made through administrative error.
(g) Discontinuation of Participation by Participants Whose
Surviving Spouses Will Be Entitled to DIC. -
(1) Discontinuation. -
(A) Conditions. - Notwithstanding any other provision of this
subchapter but subject to paragraphs (2) and (3), a person who
has elected to participate in the Plan and who is suffering
from a service-connected disability rated by the Secretary of
Veterans Affairs as totally disabling and has suffered from
such disability while so rated for a continuous period of 10 or
more years (or, if so rated for a lesser period, has suffered
from such disability while so rated for a continuous period of
not less than 5 years from the date of such person's last
discharge or release from active duty) may discontinue
participation in the Plan by submitting to the Secretary
concerned a request to discontinue participation in the Plan.
(B) Effective date. - Participation in the Plan of a person
who submits a request under subparagraph (A) shall be
discontinued effective on the first day of the first month
following the month in which the request under subparagraph (A)
is received by the Secretary concerned. Effective on such date,
the Secretary concerned shall discontinue the reduction being
made in such person's retired pay on account of participation
in the Plan or, in the case of a person who has been required
to make deposits in the Treasury on account of participation in
the Plan, such person may discontinue making such deposits
effective on such date.
(C) Form for request for discontinuation. - Any request under
this paragraph to discontinue participation in the Plan shall
be in such form and shall contain such information as the
Secretary concerned may require by regulation.
(2) Consent of beneficiaries required. - A person described in
paragraph (1) may not discontinue participation in the Plan under
such paragraph without the written consent of the beneficiary or
beneficiaries of such person under the Plan.
(3) Information on plan to be provided by secretary concerned.
-
(A) Information to be provided promptly to participant. - The
Secretary concerned shall furnish promptly to each person who
files a request under paragraph (1) to discontinue
participation in the Plan a written statement of the advantages
of participating in the Plan and the possible disadvantages of
discontinuing participation.
(B) Right to withdraw discontinuation request. - A person may
withdraw a request made under paragraph (1) if it is withdrawn
within 30 days after having been submitted to the Secretary
concerned.
(4) Refund of deductions from retired pay. - Upon the death of
a person described in paragraph (1) who discontinued
participation in the Plan in accordance with this subsection, any
amount deducted from the retired pay of that person under this
section shall be refunded to the person's surviving spouse.
(5) Resumption of participation in plan. -
(A) Conditions for resumption. - A person described in
paragraph (1) who discontinued participation in the Plan may
elect to participate again in the Plan if -
(i) after having discontinued participation in the Plan the
Secretary of Veterans Affairs reduces that person's
service-connected disability rating to a rating of less than
total; and
(ii) that person applies to the Secretary concerned, within
such period of time after the reduction in such person's
service-connected disability rating has been made as the
Secretary concerned may prescribe, to again participate in
the Plan and includes in such application such information as
the Secretary concerned may require.
(B) Effective date of resumed coverage. - Such person's
participation in the Plan under this paragraph is effective
beginning on the first day of the month after the month in
which the Secretary concerned receives the application for
resumption of participation in the Plan.
(C) Resumption of contributions. - When a person elects to
participate in the Plan under this paragraph, the Secretary
concerned shall begin making reductions in that person's
retired pay, or require such person to make deposits in the
Treasury under subsection (d), as appropriate, effective on the
effective date of such participation under subparagraph (B).
(h) Increases in Reduction With Increases in Retired Pay. -
(1) General rule. - Whenever retired pay is increased under
section 1401a of this title (or any other provision of law), the
amount of the reduction to be made under subsection (a) or (b) in
the retired pay of any person shall be increased at the same time
and by the same percentage as such retired pay is so increased.
(2) Coordination when payment of increase in retired pay is
delayed by law. -
(A) In general. - Notwithstanding paragraph (1), when the
initial payment of an increase in retired pay under section
1401a of this title (or any other provision of law) to a person
is for a month that begins later than the effective date of
that increase by reason of the application of subsection
(b)(2)(B) of such section (or section 631(b) of Public Law
104-106 (110 Stat. 364)), then the amount of the reduction in
the person's retired pay shall be effective on the date of that
initial payment of the increase in retired pay rather than the
effective date of the increase in retired pay.
(B) Delay not to affect computation of annuity. -
Subparagraph (A) may not be construed as delaying, for purposes
of determining the amount of a monthly annuity under section
1451 of this title, the effective date of an increase in a base
amount under subsection (h) of such section from the effective
date of an increase in retired pay under section 1401a of this
title to the date on which the initial payment of that increase
in retired pay is made in accordance with subsection (b)(2)(B)
of such section.
(i) Recomputation of Reduction Upon Recomputation of Retired Pay.
- Whenever 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 amount of the
reduction in such retired pay under this section 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 such reduction that would be in
effect on that date if increases in such retired pay under section
1401a(b) of this title, and increases in reductions in such retired
pay under subsection (h), had been computed as provided in
paragraph (2) of section 1401a(b) of this title (rather than under
paragraph (3) of that section).
(j) Coverage Paid Up at 30 Years and Age 70. - Effective October
1, 2008, no reduction may be made under this section in the retired
pay of a participant in the Plan for any month after the later of -
(1) the 360th month for which the participant's retired pay is
reduced under this section; and
(2) the month during which the participant attains 70 years of
age.
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