SEC. 2. SURVIVOR BENEFIT PLAN ANNUITIES FOR SPECIAL 
NEEDS TRUSTS ESTABLISHED FOR THE BEN-
EFIT OF DEPENDENT CHILDREN INCAPABLE 
OF SELF-SUPPORT. 
(a) SPECIAL NEEDS TRUST
AS ELIGIBLE BENE-
FICIARY.— 
(1) IN
GENERAL.—Subsection (a) of section 
1450 of title 10, United States Code, is amended— 
(A) by redesignating paragraph (4) as 
paragraph (5); and 
(B) by inserting after paragraph (3) the 
following new paragraph (4): 
‘‘(4) SPECIAL NEEDS TRUSTS FOR SOLE BEN-
EFIT
OF
CERTAIN
DEPENDENT
CHILDREN.—Not-
withstanding subsection (i), a supplemental or spe-
cial needs trust described in subparagraph (A) or 
(C) of section 1917(d)(4) of the Social Security Act 
(42 U.S.C. 1396p(d)(4)) that is established for the 
sole benefit of a dependent child considered disabled 
under section 1614(a)(3) of that Act (42 U.S.C. 
1382c(a)(3)) who is incapable of self-support be-
cause of mental or physical incapacity.’’. 
(2) CONFORMING AMENDMENT.—Subsection (i) 
of such section is amended by inserting ‘‘(a)(4) or’’ 
after ‘‘subsection’’. 
VerDate Nov 24 2008 
02:12 Jul 25, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3324.IH
H3324
wwoods2 on DSK1DXX6B1PROD with BILLS
(b) REGULATIONS.—Section 1455(d) of such title is 
amended— 
(1) in the subsection heading, by striking ‘‘AND 
FIDUCIARIES’’ and inserting ‘‘, FIDUCIARIES, AND 
SPECIAL NEEDS TRUSTS’’; 
(2) in paragraph (1)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) a dependent child incapable of self- 
support because of mental or physical inca-
pacity for whom a supplemental or special 
needs trust, as described in subparagraph (A) 
or (C) of section 1917(d)(4) of the Social Secu-
rity Act (42 U.S.C. 1396p(d)(4)), has been es-
tablished.’’; 
(3) in paragraph (2)— 
(A) by redesignating subparagraphs (C) 
through (H) as subparagraphs (D) through (I), 
respectively; 
(B) by inserting after subparagraph (B) 
the following new subparagraph (C): 
VerDate Nov 24 2008 
02:12 Jul 25, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3324.IH
H3324
wwoods2 on DSK1DXX6B1PROD with BILLS
‘‘(C) In the case of an annuitant referred 
to in paragraph (1)(C), payment of the annuity 
to the supplemental or special needs trust es-
tablished for the annuitant.’’; 
(C) in subparagraph (D), as redesignated, 
by striking ‘‘subparagraphs (D) and (E)’’ and 
inserting ‘‘subparagraphs (E) and (F)’’; and 
(D) in subparagraph (H), as so redesig-
nated— 
(i) by inserting ‘‘or (1)(C)’’ after 
‘‘paragraph (1)(B)’’ in the matter pre-
ceding clause (i); 
(ii) in clause (i), by striking ‘‘and’’ at 
the end; 
(iii) in clause (ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(iv) by adding at the end the following 
new clause: 
‘‘(iii) procedures for determining when 
annuity payments to a supplemental or 
special needs trust shall end based on the 
death or marriage of the dependent child 
for which the trust was established.’’; and 
VerDate Nov 24 2008 
02:12 Jul 25, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3324.IH
H3324
wwoods2 on DSK1DXX6B1PROD with BILLS
(4) in paragraph (3), by striking ‘‘TO GUARD-
IAN OR FIDUCIARY’’ in the paragraph heading. 
Æ 
VerDate Nov 24 2008 
02:12 Jul 25, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H3324.IH
H3324
wwoods2 on DSK1DXX6B1PROD with BILLS