II 

110TH CONGRESS 

1ST SESSION S. 663 

To amend title 10, United States Code, to repeal the statutory designation 

of beneficiaries of the $100,000 death gratuity under section 1477 of 

title 10, United States Code, and to permit members of the Armed 

Forces to designate in writing their beneficiaries of choice in the event 

of their death while serving on active duty. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2007 

Mr. MCCAIN introduced the following bill; which was read twice and referred 

to the Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to repeal the statutory designation of beneficiaries of the $100,000 death 

gratuity under section 1477 of title 10, United States 

Code, and to permit members of the Armed Forces to 

designate in writing their beneficiaries of choice in the 

event of their death while serving on active duty. 

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. MODIFICATION OF SCHEME FOR PAYMENT OF 

2 DEATH GRATUITY PAYABLE WITH RESPECT 

3 TO MEMBERS OF THE ARMED FORCES. 

4 (a) FINDINGS.—Congress makes the following find5 ings: 

6 (1) The death gratuity authorized under sec7 tions 1475 to 1480 of title 10, United States Code, 

8 was intended, when originally enacted to provide an 

9 immediate cash payment to assist survivors of de10 ceased members of the Armed Forces to meet their 

11 financial needs during the period immediately fol12 lowing a member’s death and before other survivor 

13 benefits become available. 

14 (2) The death gratuity, when first implemented 

15 in 1908, amounted to six months of a service mem16 ber’s pay and, until 1991, could not exceed $3,000. 

17 (3) However, following the attacks of Sep18 tember 11, 2001, and the initiation of Operation 

19 Enduring Freedom and Operation Iraqi Freedom, 

20 Congress determined that the death benefits avail21 able to survivors of members of the Armed Forces 

22 should be substantially increased. 

23 (4) The National Defense Authorization Act for 

24 Fiscal Year 2006, which was enacted on January 6, 

25 2006, as Public Law 109–163, increased the amount 

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1 of the death gratuity to $100,000, effective retro2 actively to October 7, 2001. 

3 (5) Under section 1477 of title 10, United 

4 States Code, the law authorizing the death gratuity, 

5 those living relatives of deceased members of the 

6 Armed Forces who shall receive the death gratuity 

7 are specifically designated. Service members are not 

8 provided with the opportunity to make an election 

9 choosing a beneficiary other than those set forth in 

10 section 1477 of title 10, United States Code. 

11 (6) The increased death gratuity, in combina12 tion with benefits available under the 

13 Servicemembers’ Group Life Insurance program, the 

14 Survivor Benefit Plan, and Dependency and Indem15 nity Compensation provide significant support and 

16 compensation to the next of kin of deceased mem17 bers of the Armed Forces. Individual members are 

18 best qualified to determine who the beneficiaries for 

19 death benefits should be and should be afforded the 

20 opportunity to make these selections at appropriate 

21 times throughout military service and particularly 

22 prior to mobilization or deployment to a combat 

23 zone. 

24 (7) Under the current system, many members 

25 of the Armed Forces have designated individuals as 

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1 beneficiaries for the death gratuity in a manner not 

2 provided for by law. In these cases, the wishes of 

3 these members regarding the disposition of the 

4 death gratuity has in many cases not been imple5 mented, to the detriment of their children and other 

6 loved ones. 

7 (b) SENSE OF CONGRESS.—It is the sense of Con8 gress that all members of the Armed Forces should be 

9 given the opportunity to affirmatively select who shall re10 ceive the death gratuity and that the Secretary of Defense 

11 and the Secretaries of the military departments should 

12 take prompt action to afford members the opportunity to 

13 make an election in writing about the disposition of the 

14 death gratuity proceeds and to provide appropriate and 

15 timely counseling about the manner in which the proceeds 

16 of the death gratuity and other forms of insurance will 

17 be administered. 

18 (c) MODIFICATION.— 

19 (1) IN GENERAL.—Subsection (a) of section 

20 1477 of title 10, United States Code, is amended by 

21 striking all that follows ‘‘on the following list:’’ and 

22 inserting the following: 

23 ‘‘(1) To any individual designated by the person 

24 in writing. 

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1 ‘‘(2) If there is no person so designated, to the 

2 surviving spouse of the person. 

3 ‘‘(3) If there is none of the above, to the chil4 dren (as prescribed by subsection (b)) of the person 

5 and the descendants of any deceased children by 

6 representation. 

7 ‘‘(4) If there is none of the above, to the par8 ents (as prescribed by subsection (c)) of the person 

9 or the survivor of them. 

10 ‘‘(5) If there is none of the above, to the duly 

11 appointed executor or administrator of the estate of 

12 the person. 

13 ‘‘(6) If there is none of the above, to other next 

14 of kin of the person entitled under the laws of domi15 cile of the person at the time of the person’s 

16 death.’’. 

17 (2) CONFORMING AMENDMENTS.—Such section 

18 is further amended— 

19 (A) in subsection (b), by striking ‘‘Sub20 section (a)(2)’’ in the matter preceding para21 graph (1) and inserting ‘‘Subsection (a)(3)’’; 

22 (B) by striking (c) and inserting the fol23 lowing new subsection (c): 

24 ‘‘(c) For purposes of subsection (a)(4), parents in25 clude fathers and mothers through adoption. However, 

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1 only one father and one mother may be recognized in any 

2 case, and preference shall be given to those who exercised 

3 a parental relationship on the date, or most nearly before 

4 the date, on which the decedent entered a status described 

5 in section 1475 or 1476 of this title.’’; and 

6 (C) by striking subsection (d). 

7 (3) EFFECTIVE DATE.—The amendments made 

8 by this subsection shall take effect on the date of the 

9 enactment of this Act. 

10 (4) APPLICABILITY.—Notwithstanding para11 graph (3), the provisions of section 1477 of title 10, 

12 United States Code, as in effect on the day before 

13 the date of the enactment of this Act, shall continue 

14 to apply to each member of the Armed Forces cov15 ered by such section until the earlier of the fol16 lowing— 

17 (A) the date on which such member makes 

18 the designation contemplated by paragraph (1) 

19 of section 1477(a) of such title (as amended by 

20 paragraph (1) of this subsection); or 

21 (B) January 1, 2008. 

22 (d) REGULATIONS.— 

23 (1) IN GENERAL.—Not later than April 1, 

24 2007, the Secretary of Defense shall prescribe regu25 lations to implement the amendments to section 

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1 1477 of title 10, United States Code, made by sub2 section (c). 

3 (2) ELEMENTS.—The regulations required by 

4 paragraph (1) shall include forms for the making of 

5 the designation contemplated by paragraph (1) of 

6 section 1477(a) of title 10, United States Code (as 

7 amended by subsection (c)), and instructions for 

8 members of the Armed Forces in the filling out of 

9 such forms. 

Æ 

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