Debra Nixon Special Needs Trust Inclusion Act

Debra Nixon Special Needs Trust Inclusion Act

This bill addresses the administration of the Survivor Benefit Plan (SBP) in relation to Special Needs Trusts. Specifically, the bill authorizes retirees who previously elected not to participate in the SBP due to not having a spouse or dependent child to later enroll if they establish a Special Needs Trust. Such retirees must elect to enroll within one year after the date on which the trust is established.

The bill also authorizes those who have established a Special Needs Trust for certain dependent children to elect to have such trust or child as the beneficiary under the SBP.

During the open enrollment period, an individual is authorized to elect to change the beneficiary of an annuity under the SBP to provide coverage for a trust established for a special needs child, a spouse and a trust established for a special needs child, or a former spouse and a trust established for a special needs child.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2109 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 2109

     To amend title 10, United States Code, to authorize a person 
participating in the Survivor Benefit Plan to change the beneficiary to 
 a supplemental or special needs trust for the benefit of a dependent 
  child, to authorize a person who establishes such a trust to begin 
  participating in the Survivor Benefit Plan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2021

 Ms. Sherrill (for herself and Mr. Bilirakis) introduced the following 
      bill; which was referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
     To amend title 10, United States Code, to authorize a person 
participating in the Survivor Benefit Plan to change the beneficiary to 
 a supplemental or special needs trust for the benefit of a dependent 
  child, to authorize a person who establishes such a trust to begin 
  participating in the Survivor Benefit 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 ``Debra Nixon Special Needs Trust 
Inclusion Act''.

SEC. 2. AUTHORIZATION TO PARTICIPATE IN OR CHANGE BENEFICIARY UNDER THE 
              SURVIVOR BENEFIT PLAN TO PROVIDE COVERAGE FOR CERTAIN 
              CHILDREN WITH SPECIAL NEEDS.

    (a) Participation by Person Who Establishes Trust for Special Needs 
Child After Retirement.--Section 1448(a)(5) of title 10, United States 
Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``or'' and inserting a comma; and
                    (B) by inserting ``, or establishes a trust 
                described in subsection (b)(6)'' before ``may''; and
            (2) in subparagraph (B)--
                    (A) by striking ``or'' and inserting a comma; and
                    (B) by inserting ``, or establishes a trust 
                described in subsection (b)(6)'' before the period.
    (b) Change in Election of Beneficiary to Trust for Special Needs 
Child.--Section 1450(f)(1)(A) of title 10, United States Code, is 
amended--
            (1) in the heading, by striking ``or child'' and inserting 
        ``, child, or trust'';
            (2) by striking ``or'' and inserting a comma; and
            (3) by inserting ``, or a trust described in section 
        1448(b)(6) of this title'' before the period.

SEC. 3. OPEN ENROLLMENT PERIOD FOR CHANGES IN BENEFICIARIES UNDER THE 
              SURVIVOR BENEFIT PLAN TO PROVIDE COVERAGE FOR CERTAIN 
              CHILDREN WITH SPECIAL NEEDS.

    (a) Election to Change Beneficiary.--During the open enrollment 
period, an eligible individual may elect to change the beneficiary, 
previously elected by that eligible individual, of an annuity under the 
Survivor Benefit Plan, to provide coverage for--
            (1) a trust established for a special needs child;
            (2) a spouse and a trust established for a special needs 
        child; or
            (3) a former spouse and a trust established for a special 
        needs child.
    (b) Manner of Making Election.--An election under this section 
shall be made in writing, signed by the eligible individual making the 
election, and received by the Secretary concerned before the end of the 
open enrollment period.
    (c) Effective Date of Election.--An election under this section 
shall be effective on the first day of the first calendar month 
following the month in which the election is made.
    (d) Definitions.--In this section;
            (1) The term ``eligible individual'' means an individual 
        who--
                    (A) is a person described in subsection (b)(6) of 
                section 1448 of title 10, United States Code; and
                    (B) before the open enrollment period, is a 
                participant in the Survivor Benefit Plan providing 
                coverage for a spouse or former spouse.
            (2) The term ``open enrollment period'' means the one-year 
        period beginning on the date of the enactment of this Act.
            (3) The term ``Secretary concerned'' has the meaning given 
        that term in section 101 of the Servicemembers Civil Relief Act 
        (50 U.S.C. 3911).
            (4) The term ``Survivor Benefit Plan'' means the program 
        established under subchapter II of chapter 73 of title 10, 
        United States Code.
            (5) The term ``trust established for a special needs 
        child'' means a trust described in subsection (b)(6) of section 
        1448 of title 10, United States Code.
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