Page:United States Statutes at Large Volume 92 Part 1.djvu/901

 PUBLIC LAW 95-397—SEPT. 30, 1978

92 STAT. 847

his death, and the retired pay of such person for the purpose of such clause shall be computed on the basis of the rates of basic pay in effect on the date on which the annuity is to become effective in accordance with the designation of such person under section 1448(e) of this title.".

Ante, p. 844.

(d) Such section is further amended by adding at the end thereof the following new subsection: "(d) The percentage to be applied by the Secretary of Defense in determining the amount of an annuity under subsection (a)(2) or (b)(2) shall be 55 percent reduced by such amount as the Secretary shall by regulation prescribe, taking into consideration the age of the person electing to provide the annuity at the time of such election, the difference in age between such person and the beneficiary of the annuity, whether such person provided for the annuity to become effective (in the event he died before becoming 60 years of age) on the day after his death or on the 60th anniversary of his birth, appropriate group annuity tables, and such other factors as the Secretary considers relevant.". KEDUCTION I N RETIRED PAY

SEC. 205. (a) The first sentence of subsection (a) of section 1462 of title 10, United States Code, is amended by striking out "shall be ., reduced each month" and all that follows in such sentence and inserting in lieu thereof "shall be reduced each month— "(1) by an amount equal to 2i/^ percent of the first $300 of the base amount plus 10 percent of the remainder of the base amount, if the person is providing an annuity by virtue of eligibility under section 1448(a)(1)(A) of this title; or Aiue, p. 844. " (2) by an amount prescribed under regulations of the Secretary of Defense, if the person is providing an annuity by virtue of eligibility under section 1448(a)(1)(B). ". (b) Subsection (c) of such section is amended to read as follows: "(c) The retired or retainer pay of a person who has elected to provide an annuity to a person designated by him under section 1450(a)(4) of this title shall be reduced— "(^1) in the case of a person providing the annuity by virtue of eligibility under section 1448(a)(1)(A) of this title, by 10 percent plus 5 percent for each full five years the individual designated is younger than that person; or "(2) in the case of a person providing the annuity by virtue of eligibility under section 1448(a)(1) (13) of this title, by an amount prescribed under regulations of the Secretary of Defense. However, the total reduction under clause (1) may not exceed 40 percent. The reduction in retired or retainer pay prescribed by this section shall continue during the lifetime of the person designated I under section 1450(a)(4) of this title or until the person receiving retired or retainer pay changes his election under section 1450(f) of this title.". NOTiriCATIOlSr

SEC. 206. Section 1331(d) of title 10, United States Code, is amended by adding at the end thereof the following new sentence: "Such notice shall include notification of the elections available to such person under the Survivor Benefit Plan established under subchapter II of chapter 73 of this title and the effects of such elections.". 10 USC 1447.

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