I 

108TH CONGRESS 

2D SESSION H. R. 3763

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 HOUSE OF REPRESENTATIVES 

FEBRUARY 4, 2004

Mr. MILLER of Florida (for himself, Mr. BILIRAKIS, Mr. TURNER of Ohio, 

Mr. SNYDER, Mr. RODRIGUEZ, Mr. BACHUS, Mr. BERRY, Mr. DEFAZIO, 

Mr. HOLDEN, Mr. ISAKSON, Ms. KILPATRICK, Mr. BARTLETT of Maryland, Mr. ACEVEDO-VILA ́, Mr. HINCHEY, Mr. LAMPSON, Mr. BISHOP of 

Georgia, Mr. WILSON of South Carolina, Mr. BOYD, Mr. QUINN, Mrs. 

MCCARTHY of New York, Mr. EVANS, Mr. MICA, Mr. KING of Iowa, Mr. 

MCGOVERN, Mr. LAHOOD, Mr. SIMMONS, Mr. VITTER, Mr. GRIJALVA, 

Mr. EDWARDS, Ms. GINNY BROWN-WAITE of Florida, Mr. 

RUPPERSBERGER, Mr. FATTAH, Mr. SCOTT of Georgia, Mr. SMITH of 

New Jersey, Mr. FOLEY, Mr. VAN HOLLEN, Mr. CRANE, Mr. GOSS, Mr. 

LATOURETTE, Mr. PAUL, Mr. NEAL of Massachusetts, Mr. BAKER, Mr. 

DUNCAN, Mr. ISTOOK, Mr. JONES of North Carolina, Mr. BROWN of 

South Carolina, Mr. NORWOOD, Mr. SCHROCK, Mr. FRANKS of Arizona, 

Mr. ALLEN, Mr. COLLINS, Mr. LINCOLN DIAZ-BALART of Florida, Mr. 

GOODE, Mr. MURTHA, Mr. MATHESON, Mr. MICHAUD, Mr. STRICKLAND, 

Mr. MCINTYRE, Mr. REYES, Mr. FILNER, Mr. MEEKS of New York, Mr. 

PEARCE, Ms. HART, Mr. PUTNAM, Mr. NEY, Mr. FORBES, Mr. KING of 

New York, Mrs. MYRICK, Mr. BURGESS, Mr. HAYES, Mr. CALVERT, Mrs. 

JO ANN DAVIS of Virginia, Mr. COOPER, Mr. BALLANCE, Mr. FORD, Mr. 

ROGERS of Michigan, Mr. SMITH of Washington, Mr. FROST, Mr. JENKINS, Mr. GUTIERREZ, Mr. TAYLOR of Mississippi, Mr. TURNER of 

Texas, Mr. PALLONE, Mr. MEEHAN, Mr. SANDLIN, Mr. GILLMOR, Mr. 

SANDERS, Mr. MENENDEZ, Mr. WICKER, Mr. OWENS, Mr. ALEXANDER, 

Ms. BORDALLO, Ms. HOOLEY of Oregon, Mr. BURTON of Indiana, Mr. 

WHITFIELD, Mr. ENGLISH, Mr. BURR, Mr. BROWN of Ohio, Mr. MILLER

of North Carolina, Ms. DELAURO, Mr. CUNNINGHAM, Mr. CROWLEY, Mr. 

KELLER, Mr. HOEFFEL, Mr. GIBBONS, Mr. SHERMAN, Mr. KUCINICH, 

Mr. SPRATT, Mr. THOMPSON of California, Mr. STENHOLM, Mr. KENNEDY of Rhode Island, Mr. OTTER, Ms. HARMAN, Mrs. MUSGRAVE, Mr. 

JOHN, Mr. MOORE, Mr. PETERSON of Minnesota, Mr. LYNCH, Ms. NORTON, Mr. ISRAEL, Mr. MARKEY, Mr. KILDEE, Mr. UDALL of New Mexico, 
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Mr. BISHOP of New York, Mr. MEEK of Florida, Mr. JOHNSON of Illinois, Mrs. NAPOLITANO, Mr. ROSS, Mr. ORTIZ, Mr. KIND, Ms. LEE, Mr. 

BONNER, Mr. TERRY, Mr. MCINNIS, Mr. UDALL of Colorado, Mrs. 

BLACKBURN, Mr. ENGEL, Mr. OLVER, Ms. MAJETTE, Mr. HOSTETTLER, 

Mr. DICKS, Mr. MCDERMOTT, Ms. CORRINE BROWN of Florida, Mr. 

HASTINGS of Florida, Mr. PICKERING, Ms. MILLENDER-MCDONALD, Mr. 

BOSWELL, Mrs. BONO, Mr. MORAN of Virginia, Mr. JEFFERSON, Ms. 

WATERS, Mr. MURPHY, Mr. ANDREWS, Ms. CARSON of Indiana, Mr. 

CARDOZA, Mr. ROTHMAN, Mr. BOUCHER, Mr. LANGEVIN, Mr. DEUTSCH, 

Mr. TANNER, Mr. LARSON of Connecticut, Mr. CRAMER, Ms. JACKSONLEE of Texas, Mr. BOOZMAN, Mr. WELDON of Pennsylvania, Mr. BAIRD, 

Mr. LOBIONDO, Ms. BERKLEY, Mr. SOUDER, Mrs. MILLER of Michigan, 

Mr. LEWIS of Georgia, Mr. PORTER, Mr. HONDA, Mr. GERLACH, Mr. 

COSTELLO, Mr. KIRK, Mr. DOYLE, Mrs. CAPITO, Mr. MANZULLO, Mrs. 

DAVIS of California, Mr. BRADLEY of New Hampshire, Mr. LARSEN of 

Washington, Mrs. LOWEY, Mr. BERMAN, Mr. LIPINSKI, Mr. ROGERS of 

Alabama, Mr. TIBERI, Mr. CONYERS, Mr. PETERSON of Pennsylvania, 

Mr. OBERSTAR, Mr. HAYWORTH, Ms. SLAUGHTER, Mr. SERRANO, Mr. 

JACKSON of Illinois, Mr. DOGGETT, Mr. BARRETT of South Carolina, Mr. 

TOWNS, Mr. CLYBURN, Mr. EVERETT, Mr. RYAN of Ohio, Mr. 

GALLEGLY, Ms. WOOLSEY, Mr. HALL, Mr. SESSIONS, Mr. MCCOTTER, 

Mr. BELL, Mr. DEMINT, Mr. KANJORSKI, Mr. CASE, Mr. SHUSTER, Mr. 

OSE, Mr. KINGSTON, Mr. GEORGE MILLER of California, Mr. DAVIS of 

Tennessee, Mr. INSLEE, Mr. NEUGEBAUER, Mr. BACA, Mr. MARSHALL, 

Mr. SAXTON, Mrs. CAPPS, Mr. DELAHUNT, Mr. WEINER, Mr. ROYCE, 

Mr. SHAW, Mr. SCHIFF, Mr. STUPAK, Mr. GREEN of Wisconsin, and Mr. 

SULLIVAN) introduced the following bill; which was referred to the Committee on Armed Services 

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 oneyear open season under that plan, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Military Survivor Ben3 efits Improvement Act of 2004’’. 

4 SEC. 2. COMPUTATION OF BENEFITS UNDER SURVIVOR 

5 BENEFIT PLAN FOR SURVIVING SPOUSES 

6 OVER AGE 62. 

7 (a) PHASED INCREASE IN BASIC ANNUITY.—

8 (1) STANDARD ANNUITY.—

9 (A) INCREASE TO 55 PERCENT.—Clause (i) 

10 of subsection (a)(1)(B) of section 1451 of title 

11 10, United States Code, is amended by striking 

12 ‘‘35 percent of the base amount.’’ and inserting 

13 ‘‘the product of the base amount and the per14 cent applicable to the month, as follows: 

15 ‘‘(I) For a month before October 

16 2005, the applicable percent is 35 per17 cent. 

18 ‘‘(II) For months after Sep19 tember 2005 and before October 

20 2008, the applicable percent is 40 per21 cent. 

22 ‘‘(III) For months after Sep23 tember 2008 and before October 

24 2014, the applicable percent is 45 per25 cent. 
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1 ‘‘(IV) For months after Sep2 tember 2014, the applicable percent is 

3 55 percent.’’. 

4 (B) COORDINATION WITH SAVINGS PROVI5 SION UNDER PRIOR LAW.—Clause (ii) of such 

6 subsection is amended by striking ‘‘, at the time 

7 the beneficiary becomes entitled to the annu8 ity,’’. 

9 (2) RESERVE-COMPONENT ANNUITY.—Sub10 section (a)(2)(B)(i)(I) of such section is amended by 

11 striking ‘‘35 percent’’ and inserting ‘‘the percent 

12 specified under subsection (a)(1)(B)(i) as being ap13 plicable for the month’’. 

14 (3) SURVIVORS OF ELIGIBLE PERSONS DYING

15 ON ACTIVE DUTY, ETC.—

16 (A) INCREASE TO 55 PERCENT.—Clause (i) 

17 of subsection (c)(1)(B) of such section is 

18 amended—

19 (i) by striking ‘‘35 percent’’ and in20 serting ‘‘the applicable percent’’; and 

21 (ii) by adding at the end the fol22 lowing: ‘‘The percent applicable for a 

23 month under the preceding sentence is the 

24 percent specified under subsection 
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1 (a)(1)(B)(i) as being applicable for that 

2 month.’’. 

3 (B) COORDINATION WITH SAVINGS PROVI4 SION UNDER PRIOR LAW.—Clause (ii) of such 

5 subsection is amended by striking ‘‘, at the time 

6 the beneficiary becomes entitled to the annu7 ity,’’. 

8 (4) CLERICAL AMENDMENT.—The heading for 

9 subsection (d)(2)(A) of such section is amended to 

10 read as follows: ‘‘COMPUTATION OF ANNUITY.—’’. 

11 (b) CORRESPONDING PHASED ELIMINATION OF SUP12 PLEMENTAL ANNUITY.—

13 (1) PHASED REDUCTION OF SUPPLEMENTAL

14 ANNUITY.—Section 1457(b) of title 10, United 

15 States Code, is amended—

16 (A) by striking ‘‘5, 10, 15, or 20 percent’’ 

17 and inserting ‘‘the applicable percent’’; and 

18 (B) by inserting after the first sentence 

19 the following: ‘‘The percent used for the com20 putation shall be an even multiple of 5 percent 

21 and, whatever the percent specified in the elec22 tion, may not exceed 20 percent for months be23 fore October 2005, 15 percent for months dur24 ing fiscal years 2006, 2007, and 2008, and 10 
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1 percent for months during fiscal years 2009 

2 through 2014.’’. 

3 (2) REPEAL UPON IMPLEMENTATION OF 55

4 PERCENT SBP ANNUITY.—Effective on October 1, 

5 2014, chapter 73 of such title is amended—

6 (A) by striking subchapter III; and 

7 (B) by striking the item relating to sub8 chapter III in the table of subchapters at the 

9 beginning of that chapter. 

10 (c) RECOMPUTATION OF ANNUITIES.—

11 (1) PERIODIC RECOMPUTATION REQUIRED.—

12 Effective on the first day of each month specified in 

13 paragraph (2)—

14 (A) each annuity under section 1450 of 

15 title 10, United States Code, that commenced 

16 before that month, is computed under a provi17 sion of section 1451 of that title amended by 

18 subsection (a), and is payable for that month 

19 shall be recomputed so as to be equal to the 

20 amount that would be in effect if the percent 

21 applicable for that month under that provision, 

22 as so amended, had been used for the initial 

23 computation of the annuity; and 

24 (B) each supplemental survivor annuity 

25 under section 1457 of such title that com-
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1 menced before that month and is payable for 

2 that month shall be recomputed so as to be 

3 equal to the amount that would be in effect if 

4 the percent applicable for that month under 

5 that section, as amended by this section, had 

6 been used for the initial computation of the 

7 supplemental survivor annuity. 

8 (2) TIME FOR RECOMPUTATION.—The require9 ment under paragraph (1) for recomputation of cer10 tain annuities applies with respect to the following 

11 months: 

12 (A) October 2005. 

13 (B) October 2008. 

14 (C) October 2014. 

15 (d) RECOMPUTATION OF RETIRED PAY REDUCTIONS

16 FOR SUPPLEMENTAL SURVIVOR ANNUITIES.—The Sec17 retary of Defense shall take such actions as are neces18 sitated by the amendments made by subsection (b) and 

19 the requirements of subsection (c)(1)(B) to ensure that 

20 the reductions in retired pay under section 1460 of title 

21 10, United States Code, are adjusted to achieve the objec22 tives set forth in subsection (b) of that section. 
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1 SEC. 3. OPEN ENROLLMENT PERIOD FOR SURVIVOR BEN2 EFIT PLAN COMMENCING OCTOBER 1, 2005. 

3 (a) PERSONS NOT CURRENTLY PARTICIPATING IN

4 SURVIVOR BENEFIT PLAN.—

5 (1) ELECTION OF SBP COVERAGE.—An eligible 

6 retired or former member may elect to participate in 

7 the Survivor Benefit Plan under subchapter II of 

8 chapter 73 of title 10, United States Code, during 

9 the open enrollment period specified in subsection 

10 (f). 

11 (2) ELECTION OF SUPPLEMENTAL ANNUITY

12 COVERAGE.—An eligible retired or former member 

13 who elects under paragraph (1) to participate in the 

14 Survivor Benefit Plan at the maximum level may 

15 also elect during the open enrollment period to par16 ticipate in the Supplemental Survivor Benefit Plan 

17 established under subchapter III of chapter 73 of 

18 title 10, United States Code. 

19 (3) ELIGIBLE RETIRED OR FORMER MEMBER.—

20 For purposes of paragraphs (1) and (2), an eligible 

21 retired or former member is a member or former 

22 member of the uniformed services who on the day 

23 before the first day of the open enrollment period is 

24 not a participant in the Survivor Benefit Plan and—

25 (A) is entitled to retired pay; or 
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1 (B) would be entitled to retired pay under 

2 chapter 1223 of title 10, United States Code, 

3 but for the fact that such member or former 

4 member is under 60 years of age. 

5 (4) STATUS UNDER SBP OF PERSONS MAKING

6 ELECTIONS.—

7 (A) STANDARD ANNUITY.—A person mak8 ing an election under paragraph (1) by reason 

9 of eligibility under paragraph (3)(A) shall be 

10 treated for all purposes as providing a standard 

11 annuity under the Survivor Benefit Plan. 

12 (B) RESERVE-COMPONENT ANNUITY.—A 

13 person making an election under paragraph (1) 

14 by reason of eligibility under paragraph (3)(B) 

15 shall be treated for all purposes as providing a 

16 reserve-component annuity under the Survivor 

17 Benefit Plan. 

18 (b) ELECTION TO INCREASE COVERAGE UNDER

19 SBP.—A person who on the day before the first day of 

20 the open enrollment period is a participant in the Survivor 

21 Benefit Plan but is not participating at the maximum base 

22 amount or is providing coverage under the Plan for a de23 pendent child and not for the person’s spouse or former 

24 spouse may, during the open enrollment period, elect to—
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1 (1) participate in the Plan at a higher base 

2 amount (not in excess of the participant’s retired 

3 pay); or 

4 (2) provide annuity coverage under the Plan for 

5 the person’s spouse or former spouse at a base 

6 amount not less than the base amount provided for 

7 the dependent child. 

8 (c) ELECTION FOR CURRENT SBP PARTICIPANTS TO

9 PARTICIPATE IN SUPPLEMENTAL SBP.—

10 (1) ELECTION.—A person who is eligible to 

11 make an election under this paragraph may elect 

12 during the open enrollment period to participate in 

13 the Supplemental Survivor Benefit Plan established 

14 under subchapter III of chapter 73 of title 10, 

15 United States Code. 

16 (2) PERSONS ELIGIBLE.—Except as provided in 

17 paragraph (3), a person is eligible to make an elec18 tion under paragraph (1) if on the day before the 

19 first day of the open enrollment period the person is 

20 a participant in the Survivor Benefit Plan at the 

21 maximum level, or during the open enrollment pe22 riod the person increases the level of such participa23 tion to the maximum level under subsection (b) of 

24 this section, and under that Plan is providing annu-
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1 ity coverage for the person’s spouse or a former 

2 spouse. 

3 (3) LIMITATION ON ELIGIBILITY FOR CERTAIN

4 SBP PARTICIPANTS NOT AFFECTED BY TWO-TIER

5 ANNUITY COMPUTATION.—A person is not eligible to 

6 make an election under paragraph (1) if (as deter7 mined by the Secretary concerned) the annuity of a 

8 spouse or former spouse beneficiary of that person 

9 under the Survivor Benefit Plan will be computed 

10 under section 1451(e) of title 10, United States 

11 Code. However, such a person may during the open 

12 enrollment period waive the right to have that annu13 ity computed under such section. Any such election 

14 is irrevocable. A person making such a waiver may 

15 make an election under paragraph (1) as in the case 

16 of any other participant in the Survivor Benefit 

17 Plan. 

18 (d) MANNER OF MAKING ELECTIONS.—An election 

19 under this section must be made in writing, signed by the 

20 person making the election, and received by the Secretary 

21 concerned before the end of the open enrollment period. 

22 Any such election shall be made subject to the same condi23 tions, and with the same opportunities for designation of 

24 beneficiaries and specification of base amount, that apply 

25 under the Survivor Benefit Plan or the Supplemental Sur-
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1 vivor Benefit Plan, as the case may be. A person making 

2 an election under subsection (a) to provide a reserve-com3 ponent annuity shall make a designation described in sec4 tion 1448(e) of title 10, United States Code. 

5 (e) EFFECTIVE DATE FOR ELECTIONS.—Any such 

6 election shall be effective as of the first day of the first 

7 calendar month following the month in which the election 

8 is received by the Secretary concerned. 

9 (f) OPEN ENROLLMENT PERIOD DEFINED.—The 

10 open enrollment period is the one-year period beginning 

11 on October 1, 2005. 

12 (g) EFFECT OF DEATH OF PERSON MAKING ELEC13 TION WITHIN TWO YEARS OF MAKING ELECTION.—If a 

14 person making an election under this section dies before 

15 the end of the two-year period beginning on the effective 

16 date of the election, the election is void and the amount 

17 of any reduction in retired pay of the person that is attrib18 utable to the election shall be paid in a lump sum to the 

19 person who would have been the deceased person’s bene20 ficiary under the voided election if the deceased person 

21 had died after the end of such two-year period. 

22 (h) APPLICABILITY OF CERTAIN PROVISIONS OF

23 LAW.—The provisions of sections 1449, 1453, and 1454 

24 of title 10, United States Code, are applicable to a person 

25 making an election, and to an election, under this section 
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1 in the same manner as if the election were made under 

2 the Survivor Benefit Plan or the Supplemental Survivor 

3 Benefit Plan, as the case may be. 

4 (i) ADDITIONAL PREMIUM.—The Secretary of De5 fense may require that the premium for a person making 

6 an election under subsection (a)(1) or (b) include, in addi7 tion to the amount required under section 1452(a) of title 

8 10, United States Code, an amount determined under reg9 ulations prescribed by the Secretary of Defense for the 

10 purposes of this subsection. Any such amount shall be 

11 stated as a percentage of the base amount of the person 

12 making the election and shall reflect the number of years 

13 that have elapsed since the person retired, but may not 

14 exceed 4.5 percent of that person’s base amount. 

15 (j) REPORT CONCERNING OPEN SEASON.—Not later 

16 than July 1, 2005, the Secretary of Defense shall submit 

17 to the Committee on Armed Services of the Senate and 

18 the Committee on Armed Services of the House of Rep19 resentatives a report on the open season authorized by this 

20 section for the Survivor Benefit Plan. The report shall in21 clude the following: 

22 (1) A description of the Secretary’s plans for 

23 implementation of the open season. 

24 (2) The Secretary’s estimates of the costs asso25 ciated with the open season, including any antici-
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1 pated effect of the open season on the actuarial sta2 tus of the Department of Defense Military Retire3 ment Fund. 

4 (3) Any recommendation by the Secretary for 

5 further legislative action.

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