I 

108TH CONGRESS 

1ST SESSION H. R. 548

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 5, 2003

Mr. MILLER of Florida (for himself, Mr. SCHROCK, Mr. MORAN of Virginia, 

Mr. DUNCAN, Mr. SAXTON, Mr. EDWARDS, Mr. ISRAEL, Mr. HOLDEN, 

Mr. LUCAS of Kentucky, Mr. GIBBONS, Mr. WILSON of South Carolina, 

Mr. PAUL, Mr. VITTER, Mr. FOLEY, Mr. RODRIGUEZ, Mr. WHITFIELD, 

Mr. MICA, Mrs. CHRISTENSEN, Mr. ADERHOLT, Mr. MANZULLO, Mr. 

LANTOS, Mr. TIBERI, Mr. FILNER, Mr. BROWN of South Carolina, Mr. 

JEFFERSON, Mr. MCGOVERN, Mr. WU, Mr. SMITH of New Jersey, Mr. 

MCINNIS, Ms. WOOLSEY, Mr. BROWN of Ohio, Mr. LAMPSON, Mr. 

UDALL of New Mexico, Mr. TURNER of Texas, Ms. ROS-LEHTINEN, Ms. 

HART, Mr. PETRI, Mr. SANDLIN, Mr. CARSON of Oklahoma, Mr. KINGSTON, Mr. LYNCH, Mr. ISTOOK, Mr. QUINN, Mr. BAKER, Ms. CORRINE

BROWN of Florida, Mrs. JONES of Ohio, Mr. WALDEN of Oregon, Mr. 

SIMMONS, Mr. DAVIS of Florida, Mr. BOOZMAN, Mr. BEAUPREZ, Mr. 

BACA, Mr. SMITH of Washington, Mr. LINCOLN DIAZ-BALART of Florida, 

Mr. PICKERING, Ms. CARSON of Indiana, Mr. GOODE, Mr. MCINTYRE, 

Mr. SOUDER, Mr. CRENSHAW, Mr. RAHALL, Mr. FROST, Ms. GINNY

BROWN-WAITE of Florida, Mr. TERRY, Mr. FRANK of Massachusetts, Mr. 

JENKINS, Mr. OLVER, Mr. GREEN of Texas, Mr. PUTNAM, Mr. GREEN

of Wisconsin, Mr. GRIJALVA, Mr. BOYD, Mr. KENNEDY of Rhode Island, 

Mr. PALLONE, Mr. WYNN, Mr. LATOURETTE, Mrs. WILSON of New Mexico, Mr. BELL, Mr. JONES of North Carolina, Mr. TANCREDO, Mr. TOM

DAVIS of Virginia, Mr. CRAMER, Mrs. MCCARTHY of New York, Mr. 

BURR, Mr. EVANS, Mr. BILIRAKIS, Mr. CUNNINGHAM, Ms. NORTON, Mr. 

GOSS, Mr. HONDA, Ms. HOOLEY of Oregon, Ms. BERKLEY, Mr. LAHOOD, 

Mrs. MUSGRAVE, Mr. HINCHEY, Mr. ROSS, Mrs. EMERSON, Mr. OTTER, 

Mr. PASTOR, Ms. SOLIS, Mr. COMBEST, Mr. KLINE, Mr. MCCRERY, Mr. 

OBERSTAR, Ms. KILPATRICK, Mr. DEUTSCH, Mr. ROTHMAN, Mr. 

PEARCE, Mr. SANDERS, Mr. WOLF, Mr. HAYWORTH, Mr. PETERSON of 

Pennsylvania, Mr. COSTELLO, Ms. KAPTUR, Ms. HARRIS, Mr. ROYCE, 

Mr. KING of New York, Ms. LINDA T. SA ́NCHEZ of California, and Mr. 
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MATHESON) 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Survivor Ben5 efits Improvement Act of 2003’’. 

6 SEC. 2. COMPUTATION OF BENEFITS UNDER SURVIVOR 

7 BENEFIT PLAN FOR SURVIVING SPOUSES 

8 OVER AGE 62. 

9 (a) PHASED INCREASE IN BASIC ANNUITY.—

10 (1) STANDARD ANNUITY.—

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

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

13 10, United States Code, is amended by striking 

14 ‘‘35 percent of the base amount.’’ and inserting 

15 ‘‘the product of the base amount and the per16 cent applicable to the month, as follows: 
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1 ‘‘(I) For a month before October 

2 2004, the applicable percent is 35 per3 cent. 

4 ‘‘(II) For a month during fiscal 

5 year 2005, the applicable percent is 

6 40 percent. 

7 ‘‘(III) For a month during fiscal 

8 year 2006, the applicable percent is 

9 45 percent. 

10 ‘‘(IV) For a month during fiscal 

11 year 2007, the applicable percent is 

12 50 percent. 

13 ‘‘(V) For a month during a fiscal 

14 year after fiscal year 2007, the appli15 cable percent is 55 percent.’’. 

16 (B) COORDINATION WITH SAVINGS PROVI17 SION UNDER PRIOR LAW.—Clause (ii) of such 

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

19 the beneficiary becomes entitled to the annu20 ity,’’. 

21 (2) RESERVE-COMPONENT ANNUITY.—Sub22 section (a)(2)(B)(i)(I) of such section is amended by 

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

24 specified under subsection (a)(1)(B)(i) as being ap25 plicable for the month’’. 
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1 (3) SURVIVORS OF ELIGIBLE PERSONS DYING

2 ON ACTIVE DUTY, ETC.—

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

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

5 amended—

6 (i) by striking ‘‘35 percent’’ and in7 serting ‘‘the applicable percent’’; and 

8 (ii) by adding at the end the fol9 lowing: ‘‘The percent applicable for a 

10 month under the preceding sentence is the 

11 percent specified under subsection 

12 (a)(1)(B)(i) as being applicable for that 

13 month.’’. 

14 (B) COORDINATION WITH SAVINGS PROVI15 SION UNDER PRIOR LAW.—Clause (ii) of such 

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

17 the beneficiary becomes entitled to the annu18 ity,’’. 

19 (4) CLERICAL AMENDMENT.—The heading for 

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

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

22 (b) CORRESPONDING PHASED ELIMINATION OF SUP23 PLEMENTAL ANNUITY.—
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1 (1) PHASED REDUCTION OF SUPPLEMENTAL

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

3 States Code, is amended—

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

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

6 (B) by inserting after the first sentence 

7 the following: ‘‘The percent used for the com8 putation shall be an even multiple of 5 percent 

9 and, whatever the percent specified in the elec10 tion, may not exceed 20 percent for months be11 fore October 2004, 15 percent for months dur12 ing fiscal year 2005, 10 percent for months 

13 during fiscal year 2006, and 5 percent for 

14 months after September 2006.’’. 

15 (2) REPEAL UPON IMPLEMENTATION OF 55

16 PERCENT SBP ANNUITY.—Effective on October 1, 

17 2007, chapter 73 of such title is amended—

18 (A) by striking subchapter III; and 

19 (B) by striking the item relating to sub20 chapter III in the table of subchapters at the 

21 beginning of that chapter. 

22 (c) RECOMPUTATION OF ANNUITIES.—

23 (1) PERIODIC RECOMPUTATION REQUIRED.—

24 Effective on the first day of each month specified in 

25 paragraph (2)—
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1 (A) each annuity under section 1450 of 

2 title 10, United States Code, that commenced 

3 before that month, is computed under a provi4 sion of section 1451 of that title amended by 

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

6 shall be recomputed so as to be equal to the 

7 amount that would be in effect if the percent 

8 applicable for that month under that provision, 

9 as so amended, had been used for the initial 

10 computation of the annuity; and 

11 (B) each supplemental survivor annuity 

12 under section 1457 of such title that com13 menced before that month and is payable for 

14 that month shall be recomputed so as to be 

15 equal to the amount that would be in effect if 

16 the percent applicable for that month under 

17 that section, as amended by this section, had 

18 been used for the initial computation of the 

19 supplemental survivor annuity. 

20 (2) TIME FOR RECOMPUTATION.—The require21 ment under paragraph (1) for recomputation of cer22 tain annuities applies with respect to the following 

23 months: 

24 (A) October 2004. 

25 (B) October 2005. 
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1 (C) October 2006. 

2 (D) October 2007. 

3 (d) RECOMPUTATION OF RETIRED PAY REDUCTIONS

4 FOR SUPPLEMENTAL SURVIVOR ANNUITIES.—The Sec5 retary of Defense shall take such actions as are neces6 sitated by the amendments made by subsection (b) and 

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

8 the reductions in retired pay under section 1460 of title 

9 10, United States Code, are adjusted to achieve the objec10 tives set forth in subsection (b) of that section.

11 SEC. 3. OPEN ENROLLMENT PERIOD FOR SURVIVOR BEN12 EFIT PLAN COMMENCING OCTOBER 1, 2004. 

13 (a) PERSONS NOT CURRENTLY PARTICIPATING IN

14 SURVIVOR BENEFIT PLAN.—

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

16 retired or former member may elect to participate in 

17 the Survivor Benefit Plan under subchapter II of 

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

19 the open enrollment period specified in subsection 

20 (f). 

21 (2) ELECTION OF SUPPLEMENTAL ANNUITY

22 COVERAGE.—An eligible retired or former member 

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

24 Survivor Benefit Plan at the maximum level may 

25 also elect during the open enrollment period to par-
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1 ticipate in the Supplemental Survivor Benefit Plan 

2 established under subchapter III of chapter 73 of 

3 title 10, United States Code. 

4 (3) ELIGIBLE RETIRED OR FORMER MEMBER.—

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

6 retired or former member is a member or former 

7 member of the uniformed services who on the day 

8 before the first day of the open enrollment period is 

9 not a participant in the Survivor Benefit Plan and—

10 (A) is entitled to retired pay; or 

11 (B) would be entitled to retired pay under 

12 chapter 1223 of title 10, United States Code, 

13 but for the fact that such member or former 

14 member is under 60 years of age. 

15 (4) STATUS UNDER SBP OF PERSONS MAKING

16 ELECTIONS.—

17 (A) STANDARD ANNUITY.—A person mak18 ing an election under paragraph (1) by reason 

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

20 treated for all purposes as providing a standard 

21 annuity under the Survivor Benefit Plan. 

22 (B) RESERVE-COMPONENT ANNUITY.—A 

23 person making an election under paragraph (1) 

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

25 shall be treated for all purposes as providing a 
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1 reserve-component annuity under the Survivor 

2 Benefit Plan. 

3 (b) ELECTION TO INCREASE COVERAGE UNDER

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

5 the open enrollment period is a participant in the Survivor 

6 Benefit Plan but is not participating at the maximum base 

7 amount or is providing coverage under the Plan for a de8 pendent child and not for the person’s spouse or former 

9 spouse may, during the open enrollment period, elect to—

10 (1) participate in the Plan at a higher base 

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

12 pay); or 

13 (2) provide annuity coverage under the Plan for 

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

15 amount not less than the base amount provided for 

16 the dependent child.

17 (c) ELECTION FOR CURRENT SBP PARTICIPANTS TO

18 PARTICIPATE IN SUPPLEMENTAL SBP.—

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

20 make an election under this paragraph may elect 

21 during the open enrollment period to participate in 

22 the Supplemental Survivor Benefit Plan established 

23 under subchapter III of chapter 73 of title 10, 

24 United States Code, as added by section 1404. 
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1 (2) PERSONS ELIGIBLE.—Except as provided in 

2 paragraph (3), a person is eligible to make an elec3 tion under paragraph (1) if on the day before the 

4 first day of the open enrollment period the person is 

5 a participant in the Survivor Benefit Plan at the 

6 maximum level, or during the open enrollment pe7 riod the person increases the level of such participa8 tion to the maximum level under subsection (b) of 

9 this section, and under that Plan is providing annu10 ity coverage for the person’s spouse or a former 

11 spouse. 

12 (3) LIMITATION ON ELIGIBILITY FOR CERTAIN

13 SBP PARTICIPANTS NOT AFFECTED BY TWO-TIER

14 ANNUITY COMPUTATION.—A person is not eligible to 

15 make an election under paragraph (1) if (as deter16 mined by the Secretary concerned) the annuity of a 

17 spouse or former spouse beneficiary of that person 

18 under the Survivor Benefit Plan will be computed 

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

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

21 enrollment period waive the right to have that annu22 ity computed under such section. Any such election 

23 is irrevocable. A person making such a waiver may 

24 make an election under paragraph (1) as in the case 
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1 of any other participant in the Survivor Benefit 

2 Plan. 

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

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

5 person making the election, and received by the Secretary 

6 concerned before the end of the open enrollment period. 

7 Any such election shall be made subject to the same condi8 tions, and with the same opportunities for designation of 

9 beneficiaries and specification of base amount, that apply 

10 under the Survivor Benefit Plan or the Supplemental Sur11 vivor Benefit Plan, as the case may be. A person making 

12 an election under subsection (a) to provide a reserve-com13 ponent annuity shall make a designation described in sec14 tion 1448(e) of title 10, United States Code. 

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

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

17 calendar month following the month in which the election 

18 is received by the Secretary concerned. 

19 (f) OPEN ENROLLMENT PERIOD DEFINED.—The 

20 open enrollment period is the one-year period beginning 

21 on October 1, 2004. 

22 (g) EFFECT OF DEATH OF PERSON MAKING ELEC23 TION WITHIN TWO YEARS OF MAKING ELECTION.—If a 

24 person making an election under this section dies before 

25 the end of the two-year period beginning on the effective 
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1 date of the election, the election is void and the amount 

2 of any reduction in retired pay of the person that is attrib3 utable to the election shall be paid in a lump sum to the 

4 person who would have been the deceased person’s bene5 ficiary under the voided election if the deceased person 

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

7 (h) APPLICABILITY OF CERTAIN PROVISIONS OF

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

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

10 making an election, and to an election, under this section 

11 in the same manner as if the election were made under 

12 the Survivor Benefit Plan or the Supplemental Survivor 

13 Benefit Plan, as the case may be. 

14 (i) ADDITIONAL PREMIUM.—The Secretary of De15 fense may require that the premium for a person making 

16 an election under subsection (a)(1) or (b) include, in addi17 tion to the amount required under section 1452(a) of title 

18 10, United States Code, an amount determined under reg19 ulations prescribed by the Secretary of Defense for the 

20 purposes of this subsection. Any such amount shall be 

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

22 making the election and shall reflect the number of years 

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

24 exceed 4.5 percent of that person’s base amount. 
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1 (j) REPORT CONCERNING OPEN SEASON.—Not later 

2 than July 1, 2004, the Secretary of Defense shall submit 

3 to the Committees on Armed Services of the Senate and 

4 House of Representatives a report on the open season au5 thorized by this section for the Survivor Benefit Plan. The 

6 report shall include the following: 

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

8 implementation of the open season. 

9 (2) The Secretary’s estimates of the costs asso10 ciated with the open season, including any antici11 pated effect of the open season on the actuarial sta12 tus of the Department of Defense Military Retire13 ment Fund. 

14 (3) Any recommendation by the Secretary for 

15 further legislative action.

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