An Act to amend title 10, United States Code, with respect to annuities based on retired or retainer pay, and for other purposes
PL 87-381 (H.R.6668), enacted 10/04/1961

810 
PUBLIC LAW 87-381-OCT. 4, 1961 
[75 S T A T . 
Public Law 87-381 
October 4, 1961 
"^^ A C T 
[H. R. 6668] 
To amend title 10, United States Code, with respect to annuities based on retired 
or retainer pay, and for other purposes. 
Armed Forces. 
Retired members. 
Be it enacted hy the Senate and Hcmse of Representatives 
of the 
United States of America in Congress assembled. That title 10, United 
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Family p r o t e c- otates (^ocie, IS amended as lollows: 
"°io^u s'c 14 3 1- 
^^) ^^^^ ^^^^^ ^^ chapter 73 is amended to read as follows: 
1444. 
"CHAPTER 73.—RETIRED SERVICEMAN'S FAMILY PRO-
TECTION PLAN'* 
(2) The chapter analysis of subtitle A and the analysis of part I I 
of subtitle A are each amended by striking out the following item: 
"73. Annuities Based on Retired or Retainer Pay 
1431" 
and inserting the following item in place thereof: 
"73. Retired Serviceman's Family Protection Plan__ 
1431". 
7
0
A Stat. 108. 
SEC. 2. Section 1431 of title 10, United States Code, is amended to 
read as follows: 
"§ 1431. Election of annuity: members of armed forces 
" (a) This section applies to all members of the armed forces except— 
"(1) members whose names are on a retired list other than a 
io^sc?*i376^' 
^^^* maintained under section 1376(a) of this title; 
" (2) cadets at the United States Military Academy, the United 
States Air Force Academy, or the Coast Guard Academy; and 
"(3) midshipmen. 
"(b) To provide an annuity under section 1434 of this title, a person 
covered by subsection (a) may elect to receive a reduced amount of 
the retired or retainer pay to which he may become entitled as a result 
of service in his armed force. 
Except as otherwise provided in this 
section, unless it is made before he completes 18 years of service for 
which he is entitled to credit in the computation of his basic pay, the 
election must be made at least three years before the first day for 
which retired or retainer pay is granted. 
However, if, because of 
military operations, a member is assigned to an isolated station or is 
missing, interned in a neutral country, captured by a hostile force, or 
beleaguered or besieged, and for that reason is unable to make an 
election before completing 18 years of that service, he may make the 
election, to become effective immediately, within one year after he 
ceases to be assigned to that station or returns to the jurisdiction of 
his armed force, as the case may be. A member to whom retired pay 
or retainer pay is granted retroactively, and who is otherwiss eligible 
to make an election, may make the election within 90 days after 
receiving notice that such pay has been granted to him. 
"(c) An election may be changed or revoked by the elector before 
the first day for which retired or retainer pay is granted. However, 
unless made on the basis of restored mental competency under section 
7
0
A Stat. 109. 
1433 of tliis title, the change or revocation is not effective if made 
less than three years before the first day for which retired or retainer 
pay is granted. 
"(d) If an election made under this section is found to be void for 
any reason except fraud or willful intent of the member making the 
election, he may make a corrected election at any time within 90 days 
after he is notified in writing that the election is void. A corrected 
election made under this subsection is effective as of the date of the 
voided election it replaces." 
75 S T A T . ] 
PUBLIC LAW 87-38 1 - O C T . 4, 1961 
811 
SEC. 3. Section 1434 of title 10, United States O d e is amended— 
'OA stat. 109. 
(1) by amending subsection (b) to read as follows: 
"(b) A person may elect to provide both the annuity provided in 
clause (1) of subsection (a) and that provided in clause (2) of sub-
section (a), but he may elect only 25 or 121/^ percent of his reduced 
retired or retainer pay for each annuity. The reduction in his retired 
or retainer pay on account of each annuity, and the amount of each 
annuity, shall be determined in the same manner that it would be 
determined if the other annuity had not been elected."; and 
(2) by adding the following new subsection at the end thereof: 
"(d) Under regulations prescribed under section 1444(a) of this 
7OA stat. 111. 
title, a person may, before or after the first day for which retired or 
retainer pay is granted, provide for allocating, during the period of 
the surviving spouse's eligibility, a part of the annuity under subsec-
tion (a) (3) for payment to those of his surviving children who are 
not children of that spouse," 
SEC. 4. Section 1436 of title 10, United States Code, is amended— 
7OA stat. 110. 
(1) by adding the following at the end of the catchline: 
"; withdrawal for severe jSnancial hardship" ; 
(2) by inserting the designation " ( a ) " before the words "The 
reduction" at the beginning; and 
(3) by adding the following new subsection at the end thereof: 
"(b) Under regulations prescribed under section 1444(a) of this 
title, the Secretary concerned may, whenever he considers it necessary 
because of the member's severe financial hardship, allow him to with-
draw from participation in an annuity program under this chapter, 
when requiring the member to continue to participate in the program 
would violate equity and good conscience. The absence of an eligible 
beneficiary shall not of itself be a basis for such action. However, no 
amounts by which retired or retainer pay is reduced may be refunded 
to him under this subsection." 
SEC. 5. Section 1444(b) of title 10, United States Code, is amended ar^i^naV'sis''*"" 
by adding the following new sentence at the end thereof: "In addition °^^^ ana ys s. 
to a report on the administration of this chapter, the report shall also 
contain a detailed account, including an actuarial analysis, of those 
cases in which relief is granted under sections 1436(b) and 1552 of 
10 use 1552. 
this title, or any other statutory or administrative procedure." 
SEC. 6. Chapter 73 of title 10, United States Code, is amended— 
(1) by adding the following new sections at the end thereof: 
"§ 1445. Correction of administrative deficiencies 
"Whenever he considers it necessary, the Secretary concerned may, 
under regulations prescribed under section 1444(a) of this title, cor-
rect any election, or any change or revocation of an election, under this 
chapter when he considers it necessary to correct an administrative 
error. Except when procured by fraud, a correction under this sec-
tion is final and conclusive on all officers of the United States. 
*'§ 1446. Restriction on participation 
" (a) Notwithstanding section 1441 of this title, if a perscm— 
10 use 1441. 
" (1) has made an election under this chapter; and 
"(2) is retired for physical disability before he completes 18 
years of service for which he is entitled to credit in the com-
putation of his basic pay; 
and thereafter dies, his beneficiaries are not entitled to the annuities 
provided under this chapter until they give proof to the department 
concerned that they are not eligible for benefits under chapter 11 or 13 
of title 38. If the beneficiaries are not eligible for benefits under .^^H^^^^^'^^^' 
chapter 11 or 13 of title 38, the annuity shall begin on the first day of 
the month in which the death occurs. 
812 
PUBLIC LAW 87-382-OCT. 4, 1961 
[75 
S T A T . 
10 use 
1444. 
1 4 3 1-
"(b) Whenever the beneficiaries on whose behalf the election was 
made are restricted, under subsection (a), from participating in the 
annuities provided under this chapter, the amount withheld from the 
elector's retired or retainer pay as a result of an election under this 
chapter shall be refunded to the beneficiaries, less the amount of any 
annuities paid under this chapter, and in either case without interest."; 
and 
(2) by striking out the following item in the analysis: 
"1436. Computation of reduction in retired pay." 
and inserting the following item in place thereof: 
"1436. Computation of reduction in retired pay; withdrawal for severe financial 
hardship."; and 
(3) by adding the following new items at the end of the anal-
ysis: 
"1445. Correction of administrative deficiencies. 
"1446. Restriction on participation." 
SEC. 7. Any person who, before the date of enactment of this Act, has 
filed a change or revocation, subject to section 1431(c) of title 10, 
United States Code, of an election made under section 1431(b) of that 
title, which change or revocation would be ineffective if the first day for 
which retired or retainer pay is granted were to be the date of enact-
ment of this Act, shall have that change or revocation become effective 
on that date, or three years after the date upon which it was filed, 
whichever is later. 
SEC. 8. Any person who— 
(1) made an election before the date of enactment of this Act 
which would be effective if he retired on the day before such date; 
and 
(2) hereafter retires for physical disability before completing 
18 years of service for which he is entitled to credit in the com-
putation of his basic pay— 
shall be considered as having applicable to him all of the provisions of 
chapter 73 of title 10, United States Code, existing on the date pre-
ceding the date of enactment of this Act, except that any revocation 
or change of an election is not effective until three years after the date 
of filing such revocation or change, or the date of enactment of this 
Act, whichever is later. 
Approved October 4, 1961. 
October 4, 1961 
[H. R. 47S0] 
Public Law 87-382 
AN ACT 
To amend section 6(a) of the Virgin Islands Corporation Act. 
Virgin I s l a n d s 
Corp. 
B o r r o w i n g au-
thority, increase. 
72 Stat. 1760. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That subsection (a) 
of section 6 of the Virgin Islands Corporation Act (63 Stat. 350,353), 
as amended (48 U.S.C. 1407e(a)), is further amended by striking out 
the figure "$11,000,000" in both places where it appears therein and 
inserting in lieu thereof the figure "$15,000,000". 
Approved October 4, 1961.