{"identifier":"/us/usc/t10/s1451","title":10,"num":"\u00a7\u202f1451.","heading":"Amount of annuity","text":"\u00a7\u202f1451.\nAmount of annuity\n(a)\nComputation of Annuity for a Spouse, Former Spouse, or Child.\u2014\n(1)\nStandard annuity.\u2014\nIn the case of a standard annuity provided to a beneficiary under\n(A)\nBeneficiary under 62 years of age.\u2014\nIf 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.\n(B)\nBeneficiary 62 years of age or older.\u2014\n(i)\nGeneral rule.\u2014\nIf 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 the product of the base amount and the percent applicable to the month, as follows:\n(I) For a month before October 2005, the applicable percent is 35 percent.\n(II) For months after September 2005 and before April 2006, the applicable percent is 40 percent.\n(III) For months after March 2006 and before April 2007, the applicable percent is 45 percent.\n(IV) For months after March 2007 and before April 2008, the applicable percent is 50 percent.\n(V) For months after March 2008, the applicable percent is 55 percent.\n(ii)\nRule if beneficiary eligible for social security offset computation.\u2014\nIf the beneficiary is eligible to have the annuity computed under subsection (e) and if 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).\n(2)\nReserve-component annuity.\u2014\nIn the case of a reserve-component annuity provided to a beneficiary under\n(A)\nBeneficiary under 62 years of age.\u2014\nIf 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\u2014\n(i) is less than 55 percent; and\n(ii) is determined under subsection (f).\n(B)\nBeneficiary 62 years of age or older.\u2014\n(i)\nGeneral rule.\u2014\nIf 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\u2014\n(I) is less than the percent specified under subsection (a)(1)(B)(i) as being applicable for the month; and\n(II) is determined under subsection (f).\n(ii)\nRule if beneficiary eligible for social security offset computation.\u2014\nIf 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).\n(b)\nInsurable Interest Beneficiary.\u2014\n(1)\nStandard annuity.\u2014\nIn the case of a standard annuity provided to a beneficiary under\nsection 1450(a)(5) of this title\nsection 1452(c) of this title\n(2)\nReserve-component annuity.\u2014\nIn the case of a reserve-component annuity provided to a beneficiary under\n(A) is less than 55 percent; and\n(B) is determined under subsection (f).\n(3)\nComputation of reserve-component annuity when participant dies before age 60.\u2014\nFor the purposes of paragraph (2), a person\u2014\n(A) who provides an annuity that is determined in accordance with that paragraph;\n(B) who dies before becoming 60 years of age; and\n(C) who at the time of death is otherwise entitled to retired pay,\nshall 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\nsection 1448(e) of this title\n(c)\nAnnuities for Survivors of Certain Persons Dying During a Period of Special Eligibility for SBP.\u2014\n(1)\nIn general.\u2014\nIn 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:\n(A)\nBeneficiary under 62 years of age.\u2014\nIf 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 when he died determined as follows:\n(i) In the case of an annuity provided under section 1448(d) or 1448(f) of this title (other than in a case covered by clause (ii) or (iii)), such retired pay shall be computed as if the member had been retired under\nsection 1201 of this title\n(ii) In the case of an annuity provided under\nsection 1448(d)(1)(A) of this title\n(iii) In the case of an annuity provided under\nsection 1448(f)(1)(A) of this title\nsection 12733 of this title\n(B)\nBeneficiary 62 years of age or older.\u2014\n(i)\nGeneral rule.\u2014\nIf 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 the applicable percent of the retired pay to which the member or former member would have been entitled as determined under subparagraph (A). The percent applicable for a month under the preceding sentence is the percent specified under subsection (a)(1)(B)(i) as being applicable for that month.\n(ii)\nRule if beneficiary eligible for social security offset computation.\u2014\nIf the beneficiary is eligible to have the annuity computed under subsection (e) and if 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).\n(2)\nDIC offset.\u2014\nAn annuity computed under paragraph (1) that is paid to a surviving spouse shall be reduced by a portion (calculated under\nsection 1450(c) of this title\nsection 1311(a) of title 38\n(3)\nServicemembers not yet granted retired pay.\u2014\nIn the case of an annuity provided by reason of the service of a member described in clause (ii) or (iii) of\nsection 1448(d)(1)(A) of this title\nSeptember 8, 1980\n(4)\nRate of pay to be used in computing annuity.\u2014\nIn the case of an annuity paid under\nsection 1448(f) of this title\nSeptember 8, 1980\n(d)\nReduction of Annuities at Age 62.\u2014\n(1)\nReduction required.\u2014\nThe 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.\n(2)\nAmount of annuity as reduced.\u2014\n(A)\nComputation of annuity.\u2014\nExcept 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.\n(B)\nSavings provision for beneficiaries eligible for social security offset computation.\u2014\nIn 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).\n(e)\nSavings Provision for Certain Beneficiaries.\u2014\n(1)\nPersons covered.\u2014\nThe following beneficiaries under the Plan are eligible to have an annuity under the Plan computed under this subsection:\n(A) A beneficiary receiving an annuity under the Plan on\nOctober 1, 1985\n(B) A spouse or former spouse beneficiary of a person who on\n(i) was a participant in the Plan;\n(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\n(iii) would have been eligible for reserve-component retired pay but for the fact that he was under 60 years of age.\n(2)\nAmount of annuity.\u2014\nSubject to paragraph (3), an annuity computed under this subsection is determined as follows:\n(A)\nStandard annuity.\u2014\nIn the case of the beneficiary of a standard annuity, the annuity shall be the amount equal to 55 percent of the base amount.\n(B)\nReserve-component annuity.\u2014\nIn the case of the beneficiary of a reserve-component annuity, the annuity shall be the percentage of the base amount that\u2014\n(i) is less than 55 percent; and\n(ii) is determined under subsection (f).\n(C)\nBeneficiaries of persons dying during a period of special eligibility for sbp.\u2014\nIn 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)).\n(3)\nSocial security offset.\u2014\nAn annuity computed under this subsection shall be reduced by the lesser of the following:\n(A)\nSocial security computation.\u2014\nThe 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\nNovember 29, 1989\n42 U.S.C. 401\nl\n42 U.S.C. 410\nl\n(B)\nMaximum amount of reduction.\u2014\n40 percent of the amount of the monthly annuity as determined under paragraph (2).\n(4)\nSpecial rules for social security offset computation.\u2014\n(A)\nTreatment of deductions made on account of work.\u2014\nFor 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\nNovember 29, 1989\n42 U.S.C. 401\n42 U.S.C. 403\n(B)\nTreatment of certain periods for which social security refunds are made.\u2014\nIn the computation of any reduction made under paragraph (3), there shall be excluded any period of service described in section 210(\n(i) which was performed after\nDecember 1, 1980\n(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.\n(f)\nDetermination of Percentages Applicable to Computation of Reserve-Component Annuities.\u2014\nThe 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:\n(1) The age of the person electing to provide the annuity at the time of such election.\n(2) The difference in age between such person and the beneficiary of the annuity.\n(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.\n(4) Appropriate group annuity tables.\n(5) Such other factors as the Secretary considers relevant.\n(g)\nAdjustments to Annuities.\u2014\n(1)\nPeriodic adjustments for cost-of-living.\u2014\n(A)\nIncreases in annuities when retired pay increased.\u2014\nWhenever retired pay is increased under\nsection 1401a of this title\n(B)\nPercentage of increase.\u2014\nThe 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).\n(C)\nCertain reductions to be disregarded.\u2014\nThe amount of the increase shall be based on the monthly annuity payable before any reduction under\nsection 1450(c) of this title\n(2)\nRounding down.\u2014\nThe 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.\n(h)\nAdjustments to Base Amount.\u2014\n(1)\nPeriodic adjustments for cost-of-living.\u2014\n(A)\nIncreases in base amount when retired pay increased.\u2014\nWhenever retired pay is increased under\nsection 1401a of this title\n(B)\nPercentage of increase.\u2014\nThe increase shall be by the same percent as the percent by which the retired pay of the participant is so increased.\n(2)\nRecomputation at age 62.\u2014\nWhen the retired pay of a person who first became a member of a uniformed service on or after\nAugust 1, 1986\nsection 1410 of this title\nsection 1410 of this title\nsection 1401a(b) of this title\n(3)\nDisregarding of retired pay reductions for retirement of certain members before 30 years of service.\u2014\nComputation of a member\u2019s retired pay for purposes of this section shall be made without regard to any reduction under\nsection 1409(b)(2) of this title\n(i)\nRecomputation of Annuity for Certain Beneficiaries.\u2014\nIn 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\nsection 1410 of this title\nsection 1401a(b) of this title","url":"https://projectusc.org/usc/t10/s1451.html","content":[{"t":"sec","id":"/us/usc/t10/s1451","children":[{"t":"num","text":"\u00a7\u202f1451."},{"t":"heading","text":"Amount of annuity"},{"t":"subsec","id":"/us/usc/t10/s1451/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Computation of Annuity for a Spouse, Former Spouse, or Child.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Standard annuity.\u2014"},{"t":"chapeau","text":"In the case of a standard annuity provided to a beneficiary under ","children":[{"t":"ref","text":"section 1450(a) of this title","href":"/us/usc/t10/s1450/a","tail":" (other than under section 1450(a)(5)), the monthly annuity payable to the beneficiary shall be determined as follows:"}]},{"t":"subpara","id":"/us/usc/t10/s1451/a/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Beneficiary under 62 years of age.\u2014"},{"t":"content","text":"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.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/a/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Beneficiary 62 years of age or older.\u2014"},{"t":"clause","id":"/us/usc/t10/s1451/a/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"General rule.\u2014"},{"t":"chapeau","text":"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 the product of the base amount and the percent applicable to the month, as follows:"},{"t":"subclause","id":"/us/usc/t10/s1451/a/1/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" For a month before October 2005, the applicable percent is 35 percent.","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t10/s1451/a/1/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" For months after September 2005 and before April 2006, the applicable percent is 40 percent.","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t10/s1451/a/1/B/i/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" For months after March 2006 and before April 2007, the applicable percent is 45 percent.","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t10/s1451/a/1/B/i/IV","children":[{"t":"num","text":"(IV)"},{"t":"content","text":" For months after March 2007 and before April 2008, the applicable percent is 50 percent.","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t10/s1451/a/1/B/i/V","children":[{"t":"num","text":"(V)"},{"t":"content","text":" For months after March 2008, the applicable percent is 55 percent.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/a/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Rule if beneficiary eligible for social security offset computation.\u2014"},{"t":"content","text":"If the beneficiary is eligible to have the annuity computed under subsection (e) and if 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).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Reserve-component annuity.\u2014"},{"t":"chapeau","text":"In the case of a reserve-component annuity provided to a beneficiary under ","children":[{"t":"ref","text":"section 1450(a) of this title","href":"/us/usc/t10/s1450/a","tail":" (other than under section 1450(a)(5)), the monthly annuity payable to the beneficiary shall be determined as follows:"}]},{"t":"subpara","id":"/us/usc/t10/s1451/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Beneficiary under 62 years of age.\u2014"},{"t":"chapeau","text":"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\u2014"},{"t":"clause","id":"/us/usc/t10/s1451/a/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is less than 55 percent; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/a/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" is determined under subsection (f).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Beneficiary 62 years of age or older.\u2014"},{"t":"clause","id":"/us/usc/t10/s1451/a/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"General rule.\u2014"},{"t":"chapeau","text":"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\u2014"},{"t":"subclause","id":"/us/usc/t10/s1451/a/2/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" is less than the percent specified under subsection (a)(1)(B)(i) as being applicable for the month; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t10/s1451/a/2/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" is determined under subsection (f).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/a/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Rule if beneficiary eligible for social security offset computation.\u2014"},{"t":"content","text":"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).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Insurable Interest Beneficiary.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Standard annuity.\u2014"},{"t":"content","text":"In the case of a standard annuity provided to a beneficiary under ","children":[{"t":"ref","text":"section 1450(a)(5) of this title","href":"/us/usc/t10/s1450/a/5","tail":", 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 "},{"t":"ref","text":"section 1452(c) of this title","href":"/us/usc/t10/s1452/c","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Reserve-component annuity.\u2014"},{"t":"chapeau","text":"In the case of a reserve-component annuity provided to a beneficiary under ","children":[{"t":"ref","text":"section 1450(a)(5) of this title","href":"/us/usc/t10/s1450/a/5","tail":", 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 "},{"t":"ref","text":"section 1452(c) of this title","href":"/us/usc/t10/s1452/c","tail":" that\u2014"}]},{"t":"subpara","id":"/us/usc/t10/s1451/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" is less than 55 percent; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" is determined under subsection (f).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Computation of reserve-component annuity when participant dies before age 60.\u2014"},{"t":"chapeau","text":"For the purposes of paragraph (2), a person\u2014"},{"t":"subpara","id":"/us/usc/t10/s1451/b/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" who provides an annuity that is determined in accordance with that paragraph;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/b/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" who dies before becoming 60 years of age; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/b/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" who at the time of death is otherwise entitled to retired pay,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"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 ","children":[{"t":"ref","text":"section 1448(e) of this title","href":"/us/usc/t10/s1448/e","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Annuities for Survivors of Certain Persons Dying During a Period of Special Eligibility for SBP.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general.\u2014"},{"t":"chapeau","text":"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:"},{"t":"subpara","id":"/us/usc/t10/s1451/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Beneficiary under 62 years of age.\u2014"},{"t":"chapeau","text":"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 when he died determined as follows:"},{"t":"clause","id":"/us/usc/t10/s1451/c/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" In the case of an annuity provided under section 1448(d) or 1448(f) of this title (other than in a case covered by clause (ii) or (iii)), such retired pay shall be computed as if the member had been retired under ","children":[{"t":"ref","text":"section 1201 of this title","href":"/us/usc/t10/s1201","tail":" on the date of the member\u2019s death with a disability rated as total."}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/c/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" In the case of an annuity provided under ","children":[{"t":"ref","text":"section 1448(d)(1)(A) of this title","href":"/us/usc/t10/s1448/d/1/A","tail":" by reason of the death of a member not in line of duty, such retired pay shall be computed based upon the member\u2019s years of active service when he died."}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/c/1/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" In the case of an annuity provided under ","children":[{"t":"ref","text":"section 1448(f)(1)(A) of this title","href":"/us/usc/t10/s1448/f/1/A","tail":" by reason of the death of a member or former member not in line of duty, such retired pay shall be computed based upon the member or former member\u2019s years of service when he died computed under "},{"t":"ref","text":"section 12733 of this title","href":"/us/usc/t10/s12733","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Beneficiary 62 years of age or older.\u2014"},{"t":"clause","id":"/us/usc/t10/s1451/c/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"General rule.\u2014"},{"t":"content","text":"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 the applicable percent of the retired pay to which the member or former member would have been entitled as determined under subparagraph (A). The percent applicable for a month under the preceding sentence is the percent specified under subsection (a)(1)(B)(i) as being applicable for that month.","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/c/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Rule if beneficiary eligible for social security offset computation.\u2014"},{"t":"content","text":"If the beneficiary is eligible to have the annuity computed under subsection (e) and if 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).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"DIC offset.\u2014"},{"t":"content","text":"An annuity computed under paragraph (1) that is paid to a surviving spouse shall be reduced by a portion (calculated under ","children":[{"t":"ref","text":"section 1450(c) of this title","href":"/us/usc/t10/s1450/c","tail":") of the amount of dependency and indemnity compensation to which the surviving spouse is entitled under "},{"t":"ref","text":"section 1311(a) of title 38","href":"/us/usc/t38/s1311/a","tail":". Any such reduction shall be effective on the date of the commencement of the period of payment of such compensation under title 38."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Servicemembers not yet granted retired pay.\u2014"},{"t":"content","text":"In the case of an annuity provided by reason of the service of a member described in clause (ii) or (iii) of ","children":[{"t":"ref","text":"section 1448(d)(1)(A) of this title","href":"/us/usc/t10/s1448/d/1/A","tail":" who first became a member of a uniformed service before "},{"t":"text","text":"September 8, 1980","tail":", 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."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/c/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Rate of pay to be used in computing annuity.\u2014"},{"t":"content","text":"In the case of an annuity paid under ","children":[{"t":"ref","text":"section 1448(f) of this title","href":"/us/usc/t10/s1448/f","tail":" by reason of the service of a person who first became a member of a uniformed service before "},{"t":"text","text":"September 8, 1980","tail":", 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."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Reduction of Annuities at Age 62.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Reduction required.\u2014"},{"t":"content","text":"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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Amount of annuity as reduced.\u2014"},{"t":"subpara","id":"/us/usc/t10/s1451/d/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Computation of annuity.\u2014"},{"t":"content","text":"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.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/d/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Savings provision for beneficiaries eligible for social security offset computation.\u2014"},{"t":"content","text":"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).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Savings Provision for Certain Beneficiaries.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Persons covered.\u2014"},{"t":"chapeau","text":"The following beneficiaries under the Plan are eligible to have an annuity under the Plan computed under this subsection:"},{"t":"subpara","id":"/us/usc/t10/s1451/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" A beneficiary receiving an annuity under the Plan on ","children":[{"t":"text","text":"October 1, 1985","tail":", as the surviving spouse or former spouse of the person providing the annuity."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" A spouse or former spouse beneficiary of a person who on ","children":[{"t":"text","text":"October 1, 1985","tail":"\u2014"}]},{"t":"clause","id":"/us/usc/t10/s1451/e/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" was a participant in the Plan;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/e/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" was entitled to retired pay or was qualified for that pay except that he had not applied for and been granted that pay; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/e/1/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" would have been eligible for reserve-component retired pay but for the fact that he was under 60 years of age.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Amount of annuity.\u2014"},{"t":"chapeau","text":"Subject to paragraph (3), an annuity computed under this subsection is determined as follows:"},{"t":"subpara","id":"/us/usc/t10/s1451/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Standard annuity.\u2014"},{"t":"content","text":"In the case of the beneficiary of a standard annuity, the annuity shall be the amount equal to 55 percent of the base amount.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Reserve-component annuity.\u2014"},{"t":"chapeau","text":"In the case of the beneficiary of a reserve-component annuity, the annuity shall be the percentage of the base amount that\u2014"},{"t":"clause","id":"/us/usc/t10/s1451/e/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is less than 55 percent; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/e/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" is determined under subsection (f).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/e/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Beneficiaries of persons dying during a period of special eligibility for sbp.\u2014"},{"t":"content","text":"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)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Social security offset.\u2014"},{"t":"chapeau","text":"An annuity computed under this subsection shall be reduced by the lesser of the following:"},{"t":"subpara","id":"/us/usc/t10/s1451/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Social security computation.\u2014"},{"t":"content","text":"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 ","children":[{"t":"text","text":"November 29, 1989","tail":") would be entitled under title II of the Social Security Act ("},{"t":"ref","text":"42 U.S.C. 401","href":"/us/usc/t42/s401","tail":" et seq.) based solely upon service by the person concerned as described in section 210("},{"t":"text","text":"l","tail":")(1) of such Act ("},{"t":"ref","text":"42 U.S.C. 410","href":"/us/usc/t42/s410","tail":"("},{"t":"text","text":"l","tail":")(1)) and calculated assuming that the person concerned lives to age 65."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Maximum amount of reduction.\u2014"},{"t":"content","text":"40 percent of the amount of the monthly annuity as determined under paragraph (2).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/e/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Special rules for social security offset computation.\u2014"},{"t":"subpara","id":"/us/usc/t10/s1451/e/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Treatment of deductions made on account of work.\u2014"},{"t":"content","text":"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 ","children":[{"t":"text","text":"November 29, 1989","tail":") shall not be considered as entitled to a benefit under title II of the Social Security Act ("},{"t":"ref","text":"42 U.S.C. 401","href":"/us/usc/t42/s401","tail":" et seq.) to the extent that such benefit has been offset by deductions under section 203 of such Act ("},{"t":"ref","text":"42 U.S.C. 403","href":"/us/usc/t42/s403","tail":") on account of work."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/e/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Treatment of certain periods for which social security refunds are made.\u2014"},{"t":"chapeau","text":"In the computation of any reduction made under paragraph (3), there shall be excluded any period of service described in section 210(","children":[{"t":"text","text":"l","tail":")(1) of the Social Security Act ("},{"t":"ref","text":"42 U.S.C. 410","href":"/us/usc/t42/s410","tail":"("},{"t":"text","text":"l","tail":")(1))\u2014"}]},{"t":"clause","id":"/us/usc/t10/s1451/e/4/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which was performed after ","children":[{"t":"text","text":"December 1, 1980","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t10/s1451/e/4/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Determination of Percentages Applicable to Computation of Reserve-Component Annuities.\u2014"},{"t":"chapeau","text":"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:"},{"t":"para","id":"/us/usc/t10/s1451/f/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" The age of the person electing to provide the annuity at the time of such election.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/f/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" The difference in age between such person and the beneficiary of the annuity.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/f/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/f/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" Appropriate group annuity tables.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/f/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" Such other factors as the Secretary considers relevant.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Adjustments to Annuities.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/g/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Periodic adjustments for cost-of-living.\u2014"},{"t":"subpara","id":"/us/usc/t10/s1451/g/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Increases in annuities when retired pay increased.\u2014"},{"t":"content","text":"Whenever retired pay is increased under ","children":[{"t":"ref","text":"section 1401a of this title","href":"/us/usc/t10/s1401a","tail":" (or any other provision of law), each annuity that is payable under the Plan shall be increased at the same time."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/g/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Percentage of increase.\u2014"},{"t":"content","text":"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).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/g/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Certain reductions to be disregarded.\u2014"},{"t":"content","text":"The amount of the increase shall be based on the monthly annuity payable before any reduction under ","children":[{"t":"ref","text":"section 1450(c) of this title","href":"/us/usc/t10/s1450/c","tail":" or under subsection (c)(2)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/g/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Rounding down.\u2014"},{"t":"content","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Adjustments to Base Amount.\u2014"},{"t":"para","id":"/us/usc/t10/s1451/h/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Periodic adjustments for cost-of-living.\u2014"},{"t":"subpara","id":"/us/usc/t10/s1451/h/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Increases in base amount when retired pay increased.\u2014"},{"t":"content","text":"Whenever retired pay is increased under ","children":[{"t":"ref","text":"section 1401a of this title","href":"/us/usc/t10/s1401a","tail":" (or any other provision of law), the base amount applicable to each participant in the Plan shall be increased at the same time."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t10/s1451/h/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Percentage of increase.\u2014"},{"t":"content","text":"The increase shall be by the same percent as the percent by which the retired pay of the participant is so increased.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/h/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Recomputation at age 62.\u2014"},{"t":"content","text":"When the retired pay of a person who first became a member of a uniformed service on or after ","children":[{"t":"text","text":"August 1, 1986","tail":", and who is a participant in the Plan is recomputed under "},{"t":"ref","text":"section 1410 of this title","href":"/us/usc/t10/s1410","tail":" upon the person\u2019s 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 "},{"t":"ref","text":"section 1410 of this title","href":"/us/usc/t10/s1410","tail":") 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 "},{"t":"ref","text":"section 1401a(b) of this title","href":"/us/usc/t10/s1401a/b","tail":" (rather than under paragraph (3) of that section)."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t10/s1451/h/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Disregarding of retired pay reductions for retirement of certain members before 30 years of service.\u2014"},{"t":"content","text":"Computation of a member\u2019s retired pay for purposes of this section shall be made without regard to any reduction under ","children":[{"t":"ref","text":"section 1409(b)(2) of this title","href":"/us/usc/t10/s1409/b/2","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t10/s1451/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Recomputation of Annuity for Certain Beneficiaries.\u2014"},{"t":"content","text":"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 ","children":[{"t":"ref","text":"section 1410 of this title","href":"/us/usc/t10/s1410","tail":" 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 "},{"t":"ref","text":"section 1401a(b) of this title","href":"/us/usc/t10/s1401a/b","tail":" (rather than under paragraph (3) of that section)."}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}