The Post-Widows Tax Repeal SBP Open Enrollment for Service-Disabled Veterans Act
Bill: H.R.4730 | Sponsor: Rep. Waltz, Michael (R-FL)
Policy area: Armed Forces and National Security

Summary:
The Post-Widows Tax Repeal SBP Open Enrollment for Service-Disabled Veterans Act
This bill establishes an open enrollment period for the Survivor Benefit Plan for a member or former member of the uniformed services who, on the day before the first day of the enrollment period, discontinued participation in the Survivor Benefit Plan (due to spousal eligibility for dependency and indemnity compensation), and is entitled to retired pay, or would be entitled to retired pay but for the fact the individual is under 60 years of age.

To establish, for certain individuals, an open enrollment period for 
 the Survivor Benefit Plan under subchapter II of chapter 73 of title 
                        10, United States Code.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Post-Widows Tax Repeal SBP Open 
Enrollment for Service-Disabled Veterans Act''.

SEC. 2. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

    (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 during the open enrollment period specified in subsection 
        (d).
            (2) Eligible retired or former member.--For purposes of 
        paragraph (1), 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, 
        discontinued participation in the Survivor Benefit Plan under 
        section 1452(g) of title 10, United States Code, and--
                    (A) is entitled to retired pay; or
                    (B) would be entitled to retired pay under chapter 
                of title 10, United States Code (or chapter 67 of such 
                title as in effect before October 5, 1994), but for the 
                fact that such member or former member is under 60 
                years of age.
            (3) Status under sbp of persons making elections.--
                    (A) Standard annuity.--A person making an election 
                under paragraph (1) by reason of eligibility under 
                paragraph (2)(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 (2)(B) shall be treated for all 
                purposes as providing a reserve-component annuity under 
                the Survivor Benefit Plan.
    (b) Manner of Making Elections.--
            (1) In general.--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. Except as provided in paragraph (2), any 
        such election shall be made subject to the same conditions, and 
        with the same opportunities for designation of beneficiaries 
        and specification of base amount, that apply under the Survivor 
        Benefit Plan. A person making an election under subsection (a) 
        to provide a reserve-component annuity shall make a designation 
        described in section 1448(e) of title 10, United States Code.
            (2) Election must be voluntary.--An election under this 
        section is not effective unless the person making the election 
        declares the election to be voluntary. An election to 
        participate in the Survivor Benefit Plan under this section may 
        not be required by any court. An election to participate or not 
        to participate in the Survivor Benefit Plan is not subject to 
        the concurrence of a spouse or former spouse of the person.
    (c) 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.
    (d) Open Enrollment Period Defined.--The open enrollment period is 
the period beginning on the date of the enactment of this Act and 
ending on January 1, 2023.
    (e) 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.
    (f) Premiums for Open Enrollment Election.--
            (1) Premiums to be charged.--The Secretary of Defense shall 
        prescribe in regulations premiums which a person electing under 
        this section shall be required to pay for participating in the 
        Survivor Benefit Plan pursuant to the election. The total 
        amount of the premiums to be paid by a person under the 
        regulations shall be equal to the sum of--
                    (A) the total amount by which the retired pay of 
                the person would have been reduced before the effective 
                date of the election if the person had elected to 
                participate in the Survivor Benefit Plan (for the same 
                base amount specified in the election) at the first 
                opportunity that was afforded the member to participate 
                under chapter 73 of title 10, United States Code;
                    (B) interest on the amounts by which the retired 
                pay of the person would have been so reduced, computed 
                from the dates on which the retired pay would have been 
                so reduced at such rate or rates and according to such 
                methodology as the Secretary of Defense determines 
                reasonable; and
                    (C) any additional amount that the Secretary 
                determines necessary to protect the actuarial soundness 
                of the Department of Defense Military Retirement Fund 
                against any increased risk for the fund that is 
                associated with the election.
            (2) Premiums to be credited to retirement fund.--Premiums 
        paid under the regulations shall be credited to the Department 
        of Defense Military Retirement Fund.
    (g) Definitions.--In this section:
            (1) The term ``Survivor Benefit Plan'' means the program 
        established under subchapter II of chapter 73 of title 10, 
        United States Code.
            (2) The term ``retired pay'' includes retainer pay paid 
        under section 8330 of title 10, United States Code.
            (3) The terms ``uniformed services'' and ``Secretary 
        concerned'' have the meanings given those terms in section 101 
        of title 37, United States Code.
            (4) The term ``Department of Defense Military Retirement 
        Fund'' means the Department of Defense Military Retirement Fund 
        established under section 1461(a) of title 10, United States 
        Code.
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