Computation of reduction in retired pay; withdrawal for severe financial hardship
(a)
The reduction in the retired or retainer pay of any person who elects an annuity under this subchapter shall be computed by the armed force concerned as of the date when the person becomes eligible for that pay but without regard to any increase in that pay to reflect changes in the Consumer Price Index. It shall be computed under an actuarial equivalent method based on (1) appropriate actuarial tables selected by the Board of Actuaries, and (2) an interest rate of 3 percent a year, or such other rate as the Secretary of the Treasury, after considering the average yield on outstanding marketable long-term obligations of the United States during the preceding six months, may specify by August 1 of any year for the following year. The method and tables shall be those in effect on the date as of which the computation is made.
(b)
section 1444(a) of this title Under regulations prescribed under , the Secretary concerned may, upon application by the retired member, allow the member—
(1)
to reduce the amount of the annuity specified by him under section 1434(a) and 1434(b) of this title but to not less than the prescribed minimum; or
(2)
to withdraw from participation in an annuity program under this title; or
(3)
section 1434(a) of this title to elect the annuity provided under clause (1) of in place of the annuity provided under clause (3) of such section, if on the first day for which retired or retainer pay is granted the member had in effect a valid election under clause (3) of such section, and he does not have a child beneficiary who would be eligible for the annuity provided under clause (3) of such section. For this purpose, a child (other than a child who is incapable of supporting himself because of a mental defect or physical incapacity existing before his eighteenth birthday) who is at least eighteen, but under twenty-three years of age shall not be considered an eligible beneficiary; or
(4)
section 1434(a) of this titlesection 1434(b) of this titlesection 1434(a) of this titlesection 1434(b) of this title to elect that a child (other than a child who is incapable of supporting himself because of a mental defect or physical incapacity existing before his eighteenth birthday) who is at least eighteen, but under twenty-three years of age shall not be considered eligible for the annuity provided under clause (2) of , or for an annuity provided under , if on the first day for which retired or retainer pay is granted the member had in effect a valid election under clause (2) of , or under .
A retired member may not reduce an annuity under clause (1) of this subsection, or withdraw under clause (2) of this subsection, earlier than the first day of the seventh calendar month beginning after he applies for reduction or withdrawal. A change of election under clause (3) of this subsection shall be effective on the first day of the month following the month in which application is made. An election under clause (4) of this subsection shall be effective on the first day of the month following the month in which application is made and, if on the effective date there is no surviving child who would be eligible for an annuity provided under clause (2) of section 1434(a), or under section 1434(b), of this title if the elector died, no deduction shall be made for such an annuity to, or on behalf of, a child from the elector’s retired or retainer pay for that month or any subsequent month. No amounts by which a member’s retired or retainer pay is reduced prior to the effective date of a reduction of annuity, withdrawal, change of election, or election under this subsection may be refunded to, or credited on behalf of, the member by virtue of an application made by him under this subsection.
The words “of any person who elects an annuity” are substituted for the words “of an active or retired member who has made an election”. The words “in each individual case” and “designated in section 8” are omitted as surplusage. The words “and as of the date of election in the case of a retired member” are omitted as executed. 37:373(c) (1st 23 words of last sentence) is omitted as otherwise covered by the language of the revised section.
Pub. L. 92–4251972—Subsec. (a). substituted “subchapter” for “chapter”.
Pub. L. 90–485Pub. L. 104–1061968—Subsec. (b). , as amended by , substituted provisions authorizing the Secretary to allow the member to reduce the amount of the annuity, allow the member to withdraw from participation in an annuity program, allow the member to elect the annuity provided in section 1434(a)(1) in place of the annuity provided in section 1434(a)(3) under the specified conditions, and allow the member to elect that a child at least 18, but under 23, not be eligible for the specified annuities, setting forth the times when such reduction, withdrawal, or change of election may take place, and disallowing the refunding or crediting of any amount previously withheld, for provisions authorizing the Secretary to allow the member to withdraw from participation in an annuity program whenever the Secretary considers it necessary because of the member’s severe financial hardship, the absence of an eligible beneficiary not of itself to be a basis for such action.
Pub. L. 90–2071967—Subsec. (a). inserted “but without regard to any increase in that pay to reflect changes in the Consumer Price Index” after “that pay”.
Pub. L. 87–3811961— designated existing provisions as subsec. (a), added subsec. (b), and inserted “; withdrawal for severe financial hardship” in section catchline.