10 U.S.C. § 1450 : US Code - 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.
        (3) Limitation on recoupment of offset amount. - Any amount
      subject to offset under this subsection that was previously paid
      to the surviving spouse or former spouse shall be recouped only
      to the extent that the amount paid exceeds any amount to be
      refunded under subsection (e). In notifying a surviving spouse or
      former spouse of the recoupment requirement, the Secretary shall
      provide the spouse or former spouse - 
          (A) a single notice of the net amount to be recouped or the
        net amount to be refunded, as applicable, under this subsection
        or subsection (e);
          (B) a written explanation of the statutory requirements for
        recoupment of the offset amount and for refund of any
        applicable amount deducted from retired pay;
          (C) a detailed accounting of how the offset amount being
        recouped and retired pay deduction amount being refunded were
        calculated; and
          (D) contact information for a person who can provide
        information about the offset recoupment and retired pay
        deduction refund processes and answer questions the surviving
        spouse or former spouse may have about the requirements,
        processes, or amounts.

      (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 -
         
            (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.

      (m) Special Survivor Indemnity Allowance. - 
        (1) Provision of allowance. - The Secretary concerned shall pay
      a monthly special survivor indemnity allowance under this
      subsection to the surviving spouse or former spouse of a member
      of the uniformed services to whom section 1448 of this title
      applies if - 
          (A) the surviving spouse or former spouse is entitled to
        dependency and indemnity compensation under section 1311(a) of
        title 38;
          (B) except for subsection (c) of this section, the surviving
        spouse or former spouse is eligible for an annuity by reason of
        a participant in the Plan under subsection (a)(1) of section
        1448 of this title or by reason of coverage under subsection
        (d) of such section; and
          (C) the eligibility of the surviving spouse or former spouse
        for an annuity as described in subparagraph (B) is affected by
        subsection (c) of this section.

        (2) Amount of payment. - Subject to paragraph (3), the amount
      of the allowance paid to an eligible survivor under paragraph (1)
      for a month shall be equal to - 
          (A) for months during fiscal year 2009, $50;
          (B) for months during fiscal year 2010, $60;
          (C) for months during fiscal year 2011, $70;
          (D) for months during fiscal year 2012, $80;
          (E) for months during fiscal year 2013, $90;
          (F) for months during fiscal year 2014, $150;
          (G) for months during fiscal year 2015, $200;
          (H) for months during fiscal year 2016, $275; and
          (I) for months during fiscal year 2017, $310.

        (3) Limitation. - The amount of the allowance paid to an
      eligible survivor under paragraph (1) for any month may not
      exceed the amount of the annuity for that month that is subject
      to offset under subsection (c).
        (4) Status of payments. - An allowance paid under this
      subsection does not constitute an annuity, and amounts so paid
      are not subject to adjustment under any other provision of law.
        (5) Source of funds. - The special survivor indemnity allowance
      shall be paid from amounts in the Department of Defense Military
      Retirement Fund established under section 1461 of this title.
        (6) Effective date and duration. - This subsection shall only
      apply with respect to the month beginning on October 1, 2008, and
      subsequent months through the month ending on September 30, 2017.
      Effective on October 1, 2017, the authority provided by this
      subsection shall terminate. No special survivor indemnity
      allowance may be paid to any person by reason of this subsection
      for any period before October 1, 2008, or beginning on or after
      October 1, 2017.