10 U.S.C. § 1435 — Eligible beneficiaries

Page 1343 TITLE 10—ARMED FORCES § 1436 members to whom section 1431 of this title applies on Aug. 13, 1968, see section 3 of Pub. L. 90–485, set out as a note under section 1431 of this title. § 1435. Eligible beneficiaries Only the following persons are eligible to be made the beneficiaries of, or to receive pay- ments under, an annuity elected under this sub- chapter by a member of the armed forces: (1) The spouse of the member on the date when the member is retired or becomes enti- tled to retired or retainer pay or, if the mem- ber was already retired or entitled to retired or retainer pay on November 1, 1953, the spouse on that date. (2) The children of the member who are— (A) unmarried; (B) under eighteen years of age, or incapa- ble of supporting themselves because of a mental defect or physical incapacity exist- ing before their eighteenth birthday, or at least eighteen, but under twenty-three, years of age and pursuing a full-time course of study or training in a high school, trade school, technical or vocational institute, junior college, college, university, or com- parable recognized educational institution; (C) legitimate or adopted children of, or stepchildren in fact dependent for their sup- port upon, the member; (D) living on the date when the member is retired or becomes entitled to retired or re- tainer pay or, if the member was already re- tired or entitled to retired or retainer pay on November 1, 1953, living on that date; and (E) born on or before the date prescribed in clause (D). For the purposes of clause (2)(B), a child is con- sidered to be pursuing a full-time course of study or training during an interval between school years that does not exceed one hundred and fifty days if he has demonstrated to the sat- isfaction of the Secretary concerned that he has a bonafide intention of commencing, resuming, or continuing to pursue a full-time course of study or training in a recognized educational in- stitution immediately after that interval. (Aug. 10, 1956, ch. 1041, 70A Stat. 110; Pub. L. 90–485, § 1(4), (5), Aug. 13, 1968, 82 Stat. 752; Pub. L. 92–425, § 1(2)(A), Sept. 21, 1972, 86 Stat. 706.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 1435(1) ..... 1435(2) ..... 37:371(e). 37:371(f). Aug. 8, 1953, ch. 393, § 2(e), (f), 67 Stat. 501. In clauses (1) and (2), the words ‘‘is retired or becomes entitled to retired or retainer pay’’ are substituted for the words ‘‘retired member’’, since the words ‘‘retired member’’, as defined in the source statute, included former members who have been awarded that pay. In clause (1), the words ‘‘ ‘widow’ includes a widower’’ are omitted as covered by the definition of ‘‘spouse’’ in section 101(32) of this title. Editorial Notes AMENDMENTS 1972—Pub. L. 92–425 substituted ‘‘subchapter’’ for ‘‘chapter’’. 1968—Pub. L. 90–485 inserted provisions in cl. (2)(B) concerning children of the member who are at least 18, but under 23 and pursuing a full-time course of study or training and inserted text following cl. (2)(E) relating to children considered to be pursuing a full-time course of study or training. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–485 effective on first day of third calendar month following Aug. 13, 1968, see sec- tion 6 of Pub. L. 90–485, set out as a note under section 1431 of this title. § 1436. Computation of reduction in retired pay; withdrawal for severe financial hardship (a) The reduction in the retired or retainer pay of any person who elects an annuity under this subchapter shall be computed by the armed force concerned as of the date when the person becomes eligible for that pay but without regard to any increase in that pay to reflect changes in the Consumer Price Index. It shall be computed under an actuarial equivalent method based on (1) appropriate actuarial tables selected by the Board of Actuaries, and (2) an interest rate of 3 percent a year, or such other rate as the Sec- retary of the Treasury, after considering the av- erage yield on outstanding marketable long- term obligations of the United States during the preceding six months, may specify by August 1 of any year for the following year. The method and tables shall be those in effect on the date as of which the computation is made. (b) Under regulations prescribed under section 1444(a) of this title, the Secretary concerned may, upon application by the retired member, allow the member— (1) to reduce the amount of the annuity spec- ified by him under section 1434(a) and 1434(b) of this title but to not less than the prescribed minimum; or (2) to withdraw from participation in an an- nuity program under this title; or (3) to elect the annuity provided under clause (1) of section 1434(a) of this title in place of the annuity provided under clause (3) of such section, if on the first day for which retired or retainer pay is granted the member had in effect a valid election under clause (3) of such section, and he does not have a child beneficiary who would be eligible for the annu- ity provided under clause (3) of such section. For this purpose, a child (other than a child who is incapable of supporting himself because of a mental defect or physical incapacity ex- isting before his eighteenth birthday) who is at least eighteen, but under twenty-three years of age shall not be considered an eligible beneficiary; or (4) to elect that a child (other than a child who is incapable of supporting himself because of a mental defect or physical incapacity ex- isting before his eighteenth birthday) who is at least eighteen, but under twenty-three years of age shall not be considered eligible for the annuity provided under clause (2) of sec- tion 1434(a) of this title, or for an annuity pro- vided under section 1434(b) of this title, if on the first day for which retired or retainer pay is granted the member had in effect a valid election under clause (2) of section 1434(a) of this title, or under section 1434(b) of this title.