Provides a one-year open enrollment period for SBP participation, commencing October 1, 2005, for those currently not participating, those electing to increase current coverage, and those wishing to participate in the supplemental SBP.
Authorizes the Secretary of Defense to require appropriate premiums for SBP participation.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1916 Introduced in Senate (IS)]
1st Session
S. 1916
To amend title 10, United States Code, to increase the minimum Survivor
Benefit Plan basic annuity for surviving spouses age 62 and older, to
provide for a one-year open season under that plan, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 21, 2003
Ms. Landrieu introduced the following bill; which was read twice and
referred to the Committee on Armed ServicesYYYYYYYYYYYYYYYYYYYY
_______________________________________________________________________
A BILL
To amend title 10, United States Code, to increase the minimum Survivor
Benefit Plan basic annuity for surviving spouses age 62 and older, to
provide for a one-year open season under that plan, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Survivor Benefits
Improvement Act of 2003''.
SEC. 2. FULL SBP SURVIVOR BENEFITS FOR SURVIVING SPOUSES OVER AGE 62.
(a) Phased Increase in Basic Annuity.--
(1) Increase to 55 percent.--Subsection (a)(1)(B)(i) of
section 1451 of title 10, United States Code, is amended by
striking ``35 percent of the base amount.'' and inserting ``the
product of the base amount and the percent applicable for the
month. The percent applicable for a month is 35 percent for
months beginning before October 2005, 40 percent for months
beginning after September 2005 and before October 2008, 45
percent for months beginning after September 2008, and 55
percent for months beginning after September 2014.''.
(2) Reserve-component annuity.--Subsection (a)(2)(B)(i)(I)
of such section is amended by striking ``35 percent'' and
inserting ``the percent specified under paragraph (1)(B)(i) as
being applicable for the month''.
(3) Special-eligibility annuity.--Subsection (c)(1)(B)(i)
of such section is amended--
(A) by striking ``35 percent'' and inserting ``the
applicable percent''; and
(B) by adding at the end the following: ``The
percent applicable for a month under the preceding
sentence is the percent specified under subsection
(a)(1)(B)(i) as being applicable for the month.''.
(4) Conforming amendment.--The heading for subsection
(d)(2)(A) of such section is amended to read as follows:
``Computation of Annuity.--''.
(b) Phased Elimination of Supplemental Annuity.--
(1) Decreasing percentages.--Section 1457(b) of title 10,
United States Code, is amended--
(A) by striking ``5, 10, 15, or 20 percent'' and
inserting ``the applicable percent''; and
(B) by inserting after the first sentence the
following: ``The percent used for the computation shall
be an even multiple of 5 percent and, whatever the
percent specified in the election, may not exceed 20
percent for months beginning before October 2005, 15
percent for months beginning after September 2005 and
before October 2008, and 10 percent for months
beginning after September 2008.''.
(2) Repeal of program in 2014.--Effective on October 1,
2014, chapter 73 of such title is amended--
(A) by striking subchapter III; and
(B) by striking the item relating to subchapter III
in the table of subchapters at the beginning of that
chapter.
(c) Recomputation of Annuities.--
(1) Requirement for recomputation.--Effective on the first
day of each month referred to in paragraph (2)--
(A) each annuity under section 1450 of title 10,
United States Code, that commenced before that month,
is computed under a provision of section 1451 of that
title amended by subsection (a), and is payable for
that month shall be recomputed so as to be equal to the
amount that would be in effect if the percent
applicable for that month under that provision, as so
amended, had been used for the initial computation of
the annuity; and
(B) each supplemental survivor annuity under
section 1457 of such title that commenced before that
month and is payable for that month shall be recomputed
so as to be equal to the amount that would be in effect
if the percent applicable for that month under that
section, as amended by this section, had been used for
the initial computation of the supplemental survivor
annuity.
(2) Times for recomputation.--The requirements for
recomputation of annuities under paragraph (1) apply with
respect to the following months:
(A) October 2005.
(B) October 2008.
(C) October 2014.
(d) Recomputation of Retired Pay Reductions for Supplemental
Survivor Annuities.--The Secretary of Defense shall take such actions
as are necessitated by the amendments made by subsection (b) and the
requirements of subsection (c)(1)(B) to ensure that the reductions in
retired pay under section 1460 of title 10, United States Code, are
adjusted to achieve the objectives set forth in subsection (b) of that
section.
SEC. 3. OPEN ENROLLMENT PERIOD FOR SURVIVOR BENEFIT PLAN COMMENCING
OCTOBER 1, 2005.
(a) Persons Not Currently Participating in Survivor Benefit Plan.--
(1) Election of sbp coverage.--An eligible retired or
former member may elect to participate in the Survivor Benefit
Plan under subchapter II of chapter 73 of title 10, United
States Code, during the open enrollment period specified in
subsection (f).
(2) Election of supplemental annuity coverage.--An eligible
retired or former member who elects under paragraph (1) to
participate in the Survivor Benefit Plan at the maximum level
may also elect during the open enrollment period to participate
in the Supplemental Survivor Benefit Plan established under
subchapter III of chapter 73 of title 10, United States Code.
(3) Eligible retired or former member.--For purposes of
paragraphs (1) and (2), an eligible retired or former member is
a member or former member of the uniformed services who on the
day before the first day of the open enrollment period is not a
participant in the Survivor Benefit Plan and--
(A) is entitled to retired pay; or
(B) would be entitled to retired pay under chapter
1223 of title 10, United States Code, but for the fact
that such member or former member is under 60 years of
age.
(4) Status under sbp of persons making elections.--
(A) Standard annuity.--A person making an election
under paragraph (1) by reason of eligibility under
paragraph (3)(A) shall be treated for all purposes as
providing a standard annuity under the Survivor Benefit
Plan.
(B) Reserve-component annuity.--A person making an
election under paragraph (1) by reason of eligibility
under paragraph (3)(B) shall be treated for all
purposes as providing a reserve-component annuity under
the Survivor Benefit Plan.
(b) Election To Increase Coverage Under SBP.--A person who on the
day before the first day of the open enrollment period is a participant
in the Survivor Benefit Plan but is not participating at the maximum
base amount or is providing coverage under the Plan for a dependent
child and not for the person's spouse or former spouse may, during the
open enrollment period, elect to--
(1) participate in the Plan at a higher base amount (not in
excess of the participant's retired pay); or
(2) provide annuity coverage under the Plan for the
person's spouse or former spouse at a base amount not less than
the base amount provided for the dependent child.
(c) Election for Current SBP Participants To Participate in
Supplemental SBP.--
(1) Election.--A person who is eligible to make an election
under this paragraph may elect during the open enrollment
period to participate in the Supplemental Survivor Benefit Plan
established under subchapter III of chapter 73 of title 10,
United States Code.
(2) Persons eligible.--Except as provided in paragraph (3),
a person is eligible to make an election under paragraph (1) if
on the day before the first day of the open enrollment period
the person is a participant in the Survivor Benefit Plan at the
maximum level, or during the open enrollment period the person
increases the level of such participation to the maximum level
under subsection (b) of this section, and under that Plan is
providing annuity coverage for the person's spouse or a former
spouse.
(3) Limitation on eligibility for certain sbp participants
not affected by two-tier annuity computation.--A person is not
eligible to make an election under paragraph (1) if (as
determined by the Secretary concerned) the annuity of a spouse
or former spouse beneficiary of that person under the Survivor
Benefit Plan is to be computed under section 1451(e) of title
10, United States Code. However, such a person may during the
open enrollment period waive the right to have that annuity
computed under such section 1451(e). Any such election is
irrevocable. A person making such a waiver may make an election
under paragraph (1) as in the case of any other participant in
the Survivor Benefit Plan.
(d) Manner of Making Elections.--An election under this section
shall be made in writing, signed by the person making the election, and
received by the Secretary concerned before the end of the open
enrollment period. Any such election shall be made subject to the same
conditions, and with the same opportunities for designation of
beneficiaries and specification of base amount, that apply under the
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the
case may be. A person making an election under subsection (a) to
provide a reserve-component annuity shall make a designation described
in section 1448(e) of title 10, United States Code.
(e) Effective Date for Elections.--Any such election shall be
effective as of the first day of the first calendar month following the
month in which the election is received by the Secretary concerned.
(f) Open Enrollment Period.--The open enrollment period under this
section shall be the one-year period beginning on October 1, 2005.
(g) Effect of Death of Person Making Election Within Two Years of
Making Election.--If a person making an election under this section
dies before the end of the two-year period beginning on the effective
date of the election, the election is void and the amount of any
reduction in retired pay of the person that is attributable to the
election shall be paid in a lump sum to the person who would have been
the deceased person's beneficiary under the voided election if the
deceased person had died after the end of such two-year period.
(h) Applicability of Certain Provisions of Law.--The provisions of
sections 1449, 1453, and 1454 of title 10, United States Code, are
applicable to a person making an election, and to an election, under
this section in the same manner as if the election were made under the
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the
case may be.
(i) Additional Premium.--The Secretary of Defense may require that
the premium for a person making an election under subsection (a)(1) or
(b) include, in addition to the amount required under section 1452(a)
of title 10, United States Code, an amount determined under regulations
prescribed by the Secretary of Defense for the purposes of this
subsection. Any such amount shall be stated as a percentage of the base
amount of the person making the election and shall reflect the number
of years that have elapsed since the person retired, but may not exceed
4.5 percent of that person's base amount.
(j) Report Concerning Open Season.--Not later than July 1, 2005,
the Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a report on the
open season authorized by this section for the Survivor Benefit Plan.
The report shall include the following:
(1) A description of the Secretary's plans for
implementation of the open season.
(2) The Secretary's estimates of the costs associated with
the open season, including any anticipated effect of the open
season on the actuarial status of the Department of Defense
Military Retirement Fund.
(3) Any recommendation by the Secretary for further
legislative action.
<all>
Introduced in Senate
Read twice and referred to the Committee on Armed Services.
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