Debra Nixon Special Needs Trust Inclusion Act

To amend title 10, United States Code, to authorize a person participating in the Survivor Benefit Plan to change the beneficiary to a supplemental or special needs trust for the benefit of a dependent child, to authorize a person who establishes such a trust to begin participating in the Survivor Benefit Plan, and for other purposes. 1. Short title This Act may be cited as the Debra Nixon Special Needs Trust Inclusion Act 2. Authorization to participate in or change beneficiary under the Survivor Benefit Plan to provide coverage for certain children with special needs (a) Participation by person who establishes trust for special needs child after retirement Section 1448(a)(5) of title 10, United States Code, is amended— (1) in subparagraph (A)— (A) by striking or (B) by inserting , or establishes a trust described in subsection (b)(6) may (2) in subparagraph (B)— (A) by striking or (B) by inserting , or establishes a trust described in subsection (b)(6) (b) Change in election of beneficiary to trust for special needs child Section 1450(f)(1)(A) of title 10, United States Code, is amended— (1) in the heading, by striking or child , child, or trust (2) by striking or (3) by inserting , or a trust described in section 1448(b)(6) of this title 3. Open enrollment period for changes in beneficiaries under the Survivor Benefit Plan to provide coverage for certain children with special needs (a) Election to change beneficiary During the open enrollment period, an eligible individual may elect to change the beneficiary, previously elected by that eligible individual, of an annuity under the Survivor Benefit Plan, to provide coverage for— (1) a trust established for a special needs child; (2) a spouse and a trust established for a special needs child; or (3) a former spouse and a trust established for a special needs child. (b) Manner of making election An election under this section shall be made in writing, signed by the eligible individual making the election, and received by the Secretary concerned before the end of the open enrollment period. (c) Effective date of election An election under this section shall be effective on the first day of the first calendar month following the month in which the election is made. (d) Definitions In this section; (1) The term eligible individual (A) is a person described in subsection (b)(6) of section 1448 of title 10, United States Code; and (B) before the open enrollment period, is a participant in the Survivor Benefit Plan providing coverage for a spouse or former spouse. (2) The term open enrollment period (3) The term Secretary concerned 50 U.S.C. 3911 (4) The term Survivor Benefit Plan chapter 73 (5) The term trust established for a special needs child

Summary: Debra Nixon Special Needs Trust Inclusion Act This bill addresses the administration of the Survivor Benefit Plan (SBP) in relation to Special Needs Trusts. Specifically, the bill authorizes retirees who previously elected not to participate in the SBP due to not having a spouse or dependent child to later enroll if they establish a Special Needs Trust. Such retirees must elect to enroll within one year after the date on which the trust is established. The bill also authorizes those who have established a Special Needs Trust for certain dependent children to elect to have such trust or child as the beneficiary under the SBP. During the open enrollment period, an individual is authorized to elect to change the beneficiary of an annuity under the SBP to provide coverage for a trust established for a special needs child, a spouse and a trust established for a special needs child, or a former spouse and a trust established for a special needs child.