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 Mary-
land, 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. JEN-
KINS, 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. KEN-
NEDY of Rhode Island, Mr. OTTER, Ms. HARMAN, Mrs. MUSGRAVE, Mr. 
JOHN, Mr. MOORE, Mr. PETERSON of Minnesota, Mr. LYNCH, Ms. NOR-
TON, Mr. ISRAEL, Mr. MARKEY, Mr. KILDEE, Mr. UDALL of New Mexico,
Mr. BISHOP of New York, Mr. MEEK of Florida, Mr. JOHNSON of Illi-
nois, 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. JACKSON-
LEE 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 Com-
mittee on Armed Services 
A BILL 
To amend title 10, United States Code, to increase the 
minimum Survivor Benefit Plan basic annuity for sur-
viving spouses age 62 and older, to provide for a one-
year open season under that plan, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Military Survivor Ben-
efits Improvement Act of 2004’’. 
SEC. 2. COMPUTATION OF BENEFITS UNDER SURVIVOR 
BENEFIT PLAN FOR SURVIVING SPOUSES 
OVER AGE 62. 
(a) PHASED INCREASE IN BASIC ANNUITY.—
(1) STANDARD ANNUITY.—
(A) INCREASE TO 55 PERCENT.—Clause (i) 
of subsection (a)(1)(B) of section 1451 of title 
10, United States Code, is amended by striking 
‘‘35 percent of the base amount.’’ and inserting 
‘‘the product of the base amount and the per-
cent applicable to the month, as follows: 
‘‘(I) For a month before October 
2005, the applicable percent is 35 per-
cent. 
‘‘(II) For months after Sep-
tember 2005 and before October 
2008, the applicable percent is 40 per-
cent. 
‘‘(III) For months after Sep-
tember 2008 and before October 
2014, the applicable percent is 45 per-
cent.
‘‘(IV) For months after Sep-
tember 2014, the applicable percent is 
55 percent.’’. 
(B) COORDINATION WITH SAVINGS PROVI-
SION UNDER PRIOR LAW.—Clause (ii) of such 
subsection is amended by striking ‘‘, at the time 
the beneficiary becomes entitled to the annu-
ity,’’. 
(2) 
RESERVE-COMPONENT
ANNUITY.—Sub-
section (a)(2)(B)(i)(I) of such section is amended by 
striking ‘‘35 percent’’ and inserting ‘‘the percent 
specified under subsection (a)(1)(B)(i) as being ap-
plicable for the month’’. 
(3) SURVIVORS OF ELIGIBLE PERSONS DYING 
ON ACTIVE DUTY, ETC.—
(A) INCREASE TO 55 PERCENT.—Clause (i) 
of subsection (c)(1)(B) of such section is 
amended—
(i) by striking ‘‘35 percent’’ and in-
serting ‘‘the applicable percent’’; and 
(ii) by adding at the end the fol-
lowing: ‘‘The percent applicable for a 
month under the preceding sentence is the 
percent 
specified 
under 
subsection
(a)(1)(B)(i) as being applicable for that 
month.’’. 
(B) COORDINATION WITH SAVINGS PROVI-
SION UNDER PRIOR LAW.—Clause (ii) of such 
subsection is amended by striking ‘‘, at the time 
the beneficiary becomes entitled to the annu-
ity,’’. 
(4) CLERICAL AMENDMENT.—The heading for 
subsection (d)(2)(A) of such section is amended to 
read as follows: ‘‘COMPUTATION OF ANNUITY.—’’. 
(b) CORRESPONDING PHASED ELIMINATION OF SUP-
PLEMENTAL ANNUITY.—
(1) PHASED
REDUCTION
OF
SUPPLEMENTAL 
ANNUITY.—Section 1457(b) of title 10, United 
States Code, is amended—
(A) by striking ‘‘5, 10, 15, or 20 percent’’ 
and inserting ‘‘the applicable percent’’; and 
(B) by inserting after the first sentence 
the following: ‘‘The percent used for the com-
putation shall be an even multiple of 5 percent 
and, whatever the percent specified in the elec-
tion, may not exceed 20 percent for months be-
fore October 2005, 15 percent for months dur-
ing fiscal years 2006, 2007, and 2008, and 10
percent for months during fiscal years 2009 
through 2014.’’. 
(2) REPEAL
UPON
IMPLEMENTATION
OF
PERCENT SBP ANNUITY.—Effective on October 1, 
2014, chapter 73 of such title is amended—
(A) by striking subchapter III; and 
(B) by striking the item relating to sub-
chapter III in the table of subchapters at the 
beginning of that chapter. 
(c) RECOMPUTATION OF ANNUITIES.—
(1) PERIODIC
RECOMPUTATION
REQUIRED.—
Effective on the first day of each month specified in 
paragraph (2)—
(A) each annuity under section 1450 of 
title 10, United States Code, that commenced 
before that month, is computed under a provi-
sion of section 1451 of that title amended by 
subsection (a), and is payable for that month 
shall be recomputed so as to be equal to the 
amount that would be in effect if the percent 
applicable for that month under that provision, 
as so amended, had been used for the initial 
computation of the annuity; and 
(B) each supplemental survivor annuity 
under section 1457 of such title that com-
menced before that month and is payable for 
that month shall be recomputed so as to be 
equal to the amount that would be in effect if 
the percent applicable for that month under 
that section, as amended by this section, had 
been used for the initial computation of the 
supplemental survivor annuity. 
(2) TIME FOR RECOMPUTATION.—The require-
ment under paragraph (1) for recomputation of cer-
tain annuities applies with respect to the following 
months: 
(A) October 2005. 
(B) October 2008. 
(C) October 2014. 
(d) RECOMPUTATION OF RETIRED PAY REDUCTIONS 
FOR SUPPLEMENTAL SURVIVOR ANNUITIES.—The Sec-
retary of Defense shall take such actions as are neces-
sitated by the amendments made by subsection (b) and 
the requirements of subsection (c)(1)(B) to ensure that 
the reductions in retired pay under section 1460 of title 
10, United States Code, are adjusted to achieve the objec-
tives set forth in subsection (b) of that section.
SEC. 3. OPEN ENROLLMENT PERIOD FOR SURVIVOR BEN-
EFIT PLAN COMMENCING OCTOBER 1, 2005. 
(a) PERSONS NOT CURRENTLY PARTICIPATING IN 
SURVIVOR BENEFIT PLAN.—
(1) ELECTION OF SBP COVERAGE.—An eligible 
retired or former member may elect to participate in 
the Survivor Benefit Plan under subchapter II of 
chapter 73 of title 10, United States Code, during 
the open enrollment period specified in subsection 
(f). 
(2) ELECTION
OF
SUPPLEMENTAL
ANNUITY 
COVERAGE.—An eligible retired or former member 
who elects under paragraph (1) to participate in the 
Survivor Benefit Plan at the maximum level may 
also elect during the open enrollment period to par-
ticipate in the Supplemental Survivor Benefit Plan 
established under subchapter III of chapter 73 of 
title 10, United States Code. 
(3) ELIGIBLE RETIRED OR FORMER MEMBER.—
For purposes of paragraphs (1) and (2), an eligible 
retired or former member is a member or former 
member of the uniformed services who on the day 
before the first day of the open enrollment period is 
not a participant in the Survivor Benefit Plan and—
(A) is entitled to retired pay; or
(B) would be entitled to retired pay under 
chapter 1223 of title 10, United States Code, 
but for the fact that such member or former 
member is under 60 years of age. 
(4) STATUS UNDER SBP OF PERSONS MAKING 
ELECTIONS.—
(A) STANDARD ANNUITY.—A person mak-
ing an election under paragraph (1) by reason 
of eligibility under paragraph (3)(A) shall be 
treated for all purposes as providing a standard 
annuity under the Survivor Benefit Plan. 
(B) RESERVE-COMPONENT
ANNUITY.—A 
person making an election under paragraph (1) 
by reason of eligibility under paragraph (3)(B) 
shall be treated for all purposes as providing a 
reserve-component annuity under the Survivor 
Benefit Plan. 
(b) ELECTION
TO INCREASE COVERAGE UNDER 
SBP.—A person who on the day before the first day of 
the open enrollment period is a participant in the Survivor 
Benefit Plan but is not participating at the maximum base 
amount or is providing coverage under the Plan for a de-
pendent child and not for the person’s spouse or former 
spouse may, during the open enrollment period, elect to—
(1) participate in the Plan at a higher base 
amount (not in excess of the participant’s retired 
pay); or 
(2) provide annuity coverage under the Plan for 
the person’s spouse or former spouse at a base 
amount not less than the base amount provided for 
the dependent child. 
(c) ELECTION FOR CURRENT SBP PARTICIPANTS TO 
PARTICIPATE IN SUPPLEMENTAL SBP.—
(1) ELECTION.—A person who is eligible to 
make an election under this paragraph may elect 
during the open enrollment period to participate in 
the Supplemental Survivor Benefit Plan established 
under subchapter III of chapter 73 of title 10, 
United States Code. 
(2) PERSONS ELIGIBLE.—Except as provided in 
paragraph (3), a person is eligible to make an elec-
tion under paragraph (1) if on the day before the 
first day of the open enrollment period the person is 
a participant in the Survivor Benefit Plan at the 
maximum level, or during the open enrollment pe-
riod the person increases the level of such participa-
tion to the maximum level under subsection (b) of 
this section, and under that Plan is providing annu-
ity coverage for the person’s spouse or a former 
spouse. 
(3) LIMITATION ON ELIGIBILITY FOR CERTAIN 
SBP
PARTICIPANTS
NOT
AFFECTED
BY
TWO-TIER 
ANNUITY COMPUTATION.—A person is not eligible to 
make an election under paragraph (1) if (as deter-
mined by the Secretary concerned) the annuity of a 
spouse or former spouse beneficiary of that person 
under the Survivor Benefit Plan will be computed 
under section 1451(e) of title 10, United States 
Code. However, such a person may during the open 
enrollment period waive the right to have that annu-
ity computed under such section. Any such election 
is irrevocable. A person making such a waiver may 
make an election under paragraph (1) as in the case 
of any other participant in the Survivor Benefit 
Plan. 
(d) MANNER OF MAKING ELECTIONS.—An election 
under this section must be made in writing, signed by the 
person making the election, and received by the Secretary 
concerned before the end of the open enrollment period. 
Any such election shall be made subject to the same condi-
tions, and with the same opportunities for designation of 
beneficiaries and specification of base amount, that apply 
under the Survivor Benefit Plan or the Supplemental Sur-
vivor Benefit Plan, as the case may be. A person making 
an election under subsection (a) to provide a reserve-com-
ponent annuity shall make a designation described in sec-
tion 1448(e) of title 10, United States Code. 
(e) EFFECTIVE DATE FOR ELECTIONS.—Any such 
election shall be effective as of the first day of the first 
calendar month following the month in which the election 
is received by the Secretary concerned. 
(f) OPEN ENROLLMENT PERIOD DEFINED.—The 
open enrollment period is the one-year period beginning 
on October 1, 2005. 
(g) EFFECT OF DEATH OF PERSON MAKING ELEC-
TION WITHIN TWO YEARS OF MAKING ELECTION.—If a 
person making an election under this section dies before 
the end of the two-year period beginning on the effective 
date of the election, the election is void and the amount 
of any reduction in retired pay of the person that is attrib-
utable to the election shall be paid in a lump sum to the 
person who would have been the deceased person’s bene-
ficiary under the voided election if the deceased person 
had died after the end of such two-year period. 
(h) APPLICABILITY
OF CERTAIN PROVISIONS
OF 
LAW.—The provisions of sections 1449, 1453, and 1454 
of title 10, United States Code, are applicable to a person 
making an election, and to an election, under this section
in the same manner as if the election were made under 
the Survivor Benefit Plan or the Supplemental Survivor 
Benefit Plan, as the case may be. 
(i) ADDITIONAL PREMIUM.—The Secretary of De-
fense may require that the premium for a person making 
an election under subsection (a)(1) or (b) include, in addi-
tion to the amount required under section 1452(a) of title 
10, United States Code, an amount determined under reg-
ulations prescribed by the Secretary of Defense for the 
purposes of this subsection. Any such amount shall be 
stated as a percentage of the base amount of the person 
making the election and shall reflect the number of years 
that have elapsed since the person retired, but may not 
exceed 4.5 percent of that person’s base amount. 
(j) REPORT CONCERNING OPEN SEASON.—Not later 
than July 1, 2005, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Rep-
resentatives a report on the open season authorized by this 
section for the Survivor Benefit Plan. The report shall in-
clude the following: 
(1) A description of the Secretary’s plans for 
implementation of the open season. 
(2) The Secretary’s estimates of the costs asso-
ciated with the open season, including any antici-
pated effect of the open season on the actuarial sta-
tus of the Department of Defense Military Retire-
ment Fund. 
(3) Any recommendation by the Secretary for 
further legislative action.
Æ