Military Surviving Spouses Equity Act

To amend title 10, United States Code, to repeal the requirement for reduction of survivor annuities under the Survivor Benefit Plan for military surviving spouses to offset the receipt of veterans dependency and indemnity compensation, and for other purposes. 1. Short title This Act may be cited as the Military Surviving Spouses Equity Act 2. Repeal of requirement of reduction of Survivor Benefit Plan survivor annuities by amount of dependency and indemnity compensation (a) Repeal (1) Repeal Subchapter II of chapter 73 (A) In section 1450, by striking subsection (c). (B) In section 1451(c)— (i) by striking paragraph (2); and (ii) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (2) Conforming amendments Such subchapter is further amended as follows: (A) In section 1450— (i) by striking subsection (e); and (ii) by striking subsection (k). (B) In section 1451(g)(1), by striking subparagraph (C). (C) In section 1452— (i) in subsection (f)(2), by striking does not apply— does not apply in the case of a deduction made through administrative error. (ii) by striking subsection (g). (D) In section 1455(c), by striking , 1450(k)(2), (b) Prohibition on Retroactive Benefits No benefits may be paid to any person for any period before the effective date provided under subsection (f) by reason of the amendments made by subsection (a). (c) Prohibition on recoupment of certain amounts previously refunded to SBP recipients A surviving spouse who is or has been in receipt of an annuity under the Survivor Benefit Plan under subchapter II of chapter 73 (d) Repeal of authority for optional annuity for dependent children Section 1448(d)(2) of such title is amended— (1) by striking Dependent children In the case of a member described in paragraph (1), Dependent children (2) by striking subparagraph (B). (e) Restoration of eligibility for previously eligible spouses The Secretary of the military department concerned shall restore annuity eligibility to any eligible surviving spouse who, in consultation with the Secretary, previously elected to transfer payment of such annuity to a surviving child or children under the provisions of section 1448(d)(2)(B) of title 10, United States Code, as in effect on the day before the effective date provided under subsection (f). Such eligibility shall be restored whether or not payment to such child or children subsequently was terminated due to loss of dependent status or death. For the purposes of this subsection, an eligible spouse includes a spouse who was previously eligible for payment of such annuity and is not remarried, or remarried after having attained age 55, or whose second or subsequent marriage has been terminated by death, divorce or annulment. (f) Effective Date This section and the amendments made by this section shall take effect on the later of— (1) October 1, 2017; and (2) the first day of the first month that begins after the date of the enactment of this Act.

Summary: Military Surviving Spouses Equity Act This bill: (1) repeals certain provisions that require the offset of amounts paid in dependency and indemnity compensation from Survivor Benefit Plan (SBP) annuities for the surviving spouses of former military personnel who are entitled to military retired pay or who would be entitled to retired pay except for being under 60 years of age, (2) prohibits requiring repayment of certain amounts previously paid to SBP recipients in the form of a retired pay refund, and (3) requires (current law authorizes) the Secretary of the military department concerned to pay an annuity to a member's dependent children when there is no eligible surviving spouse. The Secretary concerned shall restore annuity eligibility to a surviving spouse who earlier agreed to transfer such eligibility to the surviving child or children of a member.