Survivor Benefit Plan Insurable Interest Fairness Act

Survivor Benefit Plan Insurable Interest Fairness Act - Amends Federal provisions concerning the Survivor Benefit Plan for military personnel and their dependents to provide that, if the reason for discontinuance in the Plan is the death of the beneficiary, the Plan participant may designate a new beneficiary, who must be a natural person with an insurable interest in the participant. Requires such designation within 180 days after the death of the previous beneficiary.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2986 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2986

 To amend title 10, United States Code, to allow a participant in the 
military Survivor Benefit Plan who has designated an insurable interest 
  beneficiary under that plan to designate a new beneficiary upon the 
            death of the previously designated beneficiary.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2005

 Mr. Andrews introduced the following bill; which was referred to the 
                      Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
 To amend title 10, United States Code, to allow a participant in the 
military Survivor Benefit Plan who has designated an insurable interest 
  beneficiary under that plan to designate a new beneficiary upon the 
            death of the previously designated beneficiary.

    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 ``Survivor Benefit Plan Insurable 
Interest Fairness Act''.

SEC. 2. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER INSURABLE 
              INTEREST COVERAGE.

    (a) Authority to Designate New Beneficiary.--Section 1448(b)(1) of 
title 10, United States Code, is amended--
            (1) by inserting ``under subparagraph (F)'' in the second 
        sentence of subparagraph (E) after ``election''; and
            (2) by adding at the end the following new subparagraph:
                    ``(F) Election of new beneficiary upon death of 
                previous beneficiary.--If the reason for 
                discontinuation in the Plan is the death of the 
                beneficiary, the participant in the Plan may designate 
                a new beneficiary. Any such beneficiary must be a 
                natural person with an insurable interest in the 
                participant. Such an election may be made only during 
                the 180-day period beginning on the date of the death 
                of the previous beneficiary. Such an election shall be 
                in writing, signed by the participant, and made in such 
                form and manner as the Secretary concerned may 
                prescribe. Such an election shall be effective the 
                first day of the first month following the month in 
                which the election is received by the Secretary.''.
    (b) Transition.--
            (1) Transition period.--In the case of a person who made a 
        covered insurable-interest election under the Survivor Benefit 
        Plan and whose designated beneficiary under that election dies 
        before the date of the enactment of this Act or during the 18-
        month period beginning on such date, the time period applicable 
        for purposes of the limitation in the third sentence of 
        subparagraph (F) of section 1448(b)(1) of title 10, United 
        States Code, as added by subsection (a), shall be the two-year 
        period beginning on the date of the enactment of this Act 
        (rather than the 180-day period specified in that sentence).
            (2) Covered insurable-interest elections.--For purposes of 
        paragraph (1), a covered insurable-interest election is an 
        election under section 1448(b)(1) of title 10, United States 
        Code, made before the date of the enactment of this Act, or 
        during the 18-month period beginning on such date, by a 
        participant in the military Survivor Benefit Plan to provide an 
        annuity under that plan to a natural person with an insurable 
        interest in that person.
            (3) Survivor benefit plan.--For purposes of this 
        subsection, the term ``Survivor Benefit Plan'' means the 
        program under subchapter II of chapter 73 of title 10, United 
        States Code.
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