10 U.S.C. § 1451 : US Code - Section 1451: Amount of annuity

Search 10 U.S.C. § 1451 : US Code - Section 1451: Amount of annuity

(a) Computation of Annuity for a Spouse, Former Spouse, or Child.
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(1) Standard annuity. - In the case of a standard annuity
provided to a beneficiary under section 1450(a) of this title
(other than under section 1450(a)(4)), the monthly annuity
payable to the beneficiary shall be determined as follows:
(A) Beneficiary under 62 years of age. - 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.
(B) Beneficiary 62 years of age or older. -
(i) General rule. - 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:
(I) For a month before October 2005, the applicable
percent is 35 percent.
(II) For months after September 2005 and before April
2006, the applicable percent is 40 percent.
(III) For months after March 2006 and before April 2007,
the applicable percent is 45 percent.
(IV) For months after March 2007 and before April 2008,
the applicable percent is 50 percent.
(V) For months after March 2008, the applicable percent
is 55 percent.
(ii) Rule if beneficiary eligible for social security
offset computation. - 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).
(2) Reserve-component annuity. - In the case of a reserve-
component annuity provided to a beneficiary under section
1450(a) of this title (other than under section 1450(a)(4)), the
monthly annuity payable to the beneficiary shall be determined as
follows:
(A) Beneficiary under 62 years of age. - 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 -
(i) is less than 55 percent; and
(ii) is determined under subsection (f).
(B) Beneficiary 62 years of age or older. -
(i) General rule. - 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 -
(I) is less than the percent specified under subsection
(a)(1)(B)(i) as being applicable for the month; and
(II) is determined under subsection (f).
(ii) Rule if beneficiary eligible for social security
offset computation. - 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).
(b) Insurable Interest Beneficiary. -
(1) Standard annuity. - In the case of a standard annuity
provided to a beneficiary under section 1450(a)(4) of this title,
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 section 1452(c) of this title.
(2) Reserve-component annuity. - In the case of a reserve-
component annuity provided to a beneficiary under section
1450(a)(4) of this title, 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 section
1452(c) of this title that -
(A) is less than 55 percent; and
(B) is determined under subsection (f).
(3) Computation of reserve-component annuity when participant
dies before age 60. - For the purposes of paragraph (2), a person
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(A) who provides an annuity that is determined in accordance
with that paragraph;
(B) who dies before becoming 60 years of age; and
(C) who at the time of death is otherwise entitled to retired
pay,
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 section 1448(e) of this title.
(c) Annuities for Survivors of Certain Persons Dying During a
Period of Special Eligibility for SBP. -
(1) In general. - 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:
(A) Beneficiary under 62 years of age. - 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:
(i) In the case of an annuity provided under section
1448(d) of this title (other than in a case covered by clause
(ii)), such retired pay shall be computed as if the member
had been retired under section 1201 of this title on the date
of the member's death with a disability rated as total.
(ii) In the case of an annuity provided under section
1448(d)(1)(A) of this title by reason of the death of a
member not in line of duty, such retired pay shall be
computed based upon the member's years of active service when
he died.
(iii) In the case of an annuity provided under section
1448(f) of this title, such retired pay shall be computed
based upon the member or former member's years of active
service when he died computed under section 12733 of this
title.
(B) Beneficiary 62 years of age or older. -
(i) General rule. - 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.
(ii) Rule if beneficiary eligible for social security
offset computation. - 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).
(2) DIC offset. - An annuity computed under paragraph (1) that
is paid to a surviving spouse shall be reduced by the amount of
dependency and indemnity compensation to which the surviving
spouse is entitled under section 1311(a) of title 38. Any such
reduction shall be effective on the date of the commencement of
the period of payment of such compensation under title 38.
(3) Servicemembers not yet granted retired pay. - In the case
of an annuity provided by reason of the service of a member
described in clause (ii) or (iii) of section 1448(d)(1)(A) of
this title who first became a member of a uniformed service
before September 8, 1980, 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.
(4) Rate of pay to be used in computing annuity. - In the case
of an annuity paid under section 1448(f) of this title by reason
of the service of a person who first became a member of a
uniformed service before September 8, 1980, 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.
(d) Reduction of Annuities at Age 62. -
(1) Reduction required. - 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.
(2) Amount of annuity as reduced. -
(A) Computation of annuity. - 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.
(B) Savings provision for beneficiaries eligible for social
security offset computation. - 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).
(e) Savings Provision for Certain Beneficiaries. -
(1) Persons covered. - The following beneficiaries under the
Plan are eligible to have an annuity under the Plan computed
under this subsection:
(A) A beneficiary receiving an annuity under the Plan on
October 1, 1985, as the surviving spouse or former spouse of
the person providing the annuity.
(B) A spouse or former spouse beneficiary of a person who on
October 1, 1985 -
(i) was a participant in the Plan;
(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
(iii) would have been eligible for reserve-component
retired pay but for the fact that he was under 60 years of
age.
(2) Amount of annuity. - Subject to paragraph (3), an annuity
computed under this subsection is determined as follows:
(A) Standard annuity. - In the case of the beneficiary of a
standard annuity, the annuity shall be the amount equal to 55
percent of the base amount.
(B) Reserve-component annuity. - In the case of the
beneficiary of a reserve-component annuity, the annuity shall
be the percentage of the base amount that -
(i) is less than 55 percent; and
(ii) is determined under subsection (f).
(C) Beneficiaries of persons dying during a period of special
eligibility for sbp. - 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)).
(3) Social security offset. - An annuity computed under this
subsection shall be reduced by the lesser of the following:
(A) Social security computation. - 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 November
29, 1989) would be entitled under title II of the Social
Security Act (42 U.S.C. 401 et seq.) based solely upon service
by the person concerned as described in section 210(l)(1) of
such Act (42 U.S.C. 410(l)(1)) and calculated assuming that the
person concerned lives to age 65.
(B) Maximum amount of reduction. - 40 percent of the amount
of the monthly annuity as determined under paragraph (2).
(4) Special rules for social security offset computation. -
(A) Treatment of deductions made on account of work. - 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 November 29, 1989)
shall not be considered as entitled to a benefit under title II
of the Social Security Act (42 U.S.C. 401 et seq.) to the
extent that such benefit has been offset by deductions under
section 203 of such Act (42 U.S.C. 403) on account of work.
(B) Treatment of certain periods for which social security
refunds are made. - In the computation of any reduction made
under paragraph (3), there shall be excluded any period of
service described in section 210(l)(1) of the Social Security
Act (42 U.S.C. 410(l)(1)) -
(i) which was performed after December 1, 1980; and
(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.
(f) Determination of Percentages Applicable to Computation of
Reserve-Component Annuities. - 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:
(1) The age of the person electing to provide the annuity at
the time of such election.
(2) The difference in age between such person and the
beneficiary of the annuity.
(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.
(4) Appropriate group annuity tables.
(5) Such other factors as the Secretary considers relevant.
(g) Adjustments to Annuities. -
(1) Periodic adjustments for cost-of-living. -
(A) Increases in annuities when retired pay increased. -
Whenever retired pay is increased under section 1401a of this
title (or any other provision of law), each annuity that is
payable under the Plan shall be increased at the same time.
(B) Percentage of increase. - 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).
(C) Certain reductions to be disregarded. - The amount of the
increase shall be based on the monthly annuity payable before
any reduction under section 1450(c) of this title or under
subsection (c)(2).
(2) Rounding down. - 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.
(h) Adjustments to Base Amount. -
(1) Periodic adjustments for cost-of-living. -
(A) Increases in base amount when retired pay increased. -
Whenever retired pay is increased under section 1401a of this
title (or any other provision of law), the base amount
applicable to each participant in the Plan shall be increased
at the same time.
(B) Percentage of increase. - The increase shall be by the
same percent as the percent by which the retired pay of the
participant is so increased.
(2) Recomputation at age 62. - When 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 base amount applicable to that
person 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 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 section 1401a(b) of this title (rather than
under paragraph (3) of that section).
(3) Disregarding of retired pay reductions for retirement of
certain members before 30 years of service. - Computation of a
member's retired pay for purposes of this section shall be made
without regard to any reduction under section 1409(b)(2) of this
title.
(i) Recomputation of Annuity for Certain Beneficiaries. - 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 section 1410 of this title 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 section
1401a(b) of this title (rather than under paragraph (3) of that
section).