Page:United States Statutes at Large Volume 99 Part 1.djvu/694

 99 STAT. 672 10 USC 1450. Ante, p. 671. 10 USC 1448 ^°^-

PUBLIC LAW 99-145—NOV. 8, 1985 (b) EFFECTIVE DATE OF ANNUITY.—Section 1450(j) of such title is amended by adding at the end thereof the following new sentence: "An annuity payable under section 1448(f) of this title shall be effective on the day after the date of the death of the person upon whose service the right to the annuity is based.". (c) PERSONS COVERED.—(1) Section 1448(f) of title 10, United States Code, as added by subsection (a), shall apply to the surviving spouse and dependent children of any person who dies after September 30, 1978, and the former spouse of a person who dies after September 7, 1982. (2) In the case of the surviving spouse and dependents of a person who dies during the period beginning on September 30, 1978, and ending on October 1, 1985, the Secretary concerned shall take appropriate steps to locate persons eligible for an annuity under section 1448(f) of title 10, United States Code, as added by subsection (a). Any such person must submit an application to the Secretary for such an annuity before October 1, 1988, to be eligible to receive such annuity. Any such annuity shall be effective only for months after the month in which the Secretary receives such application. SEC. 714. INDEXING OF THRESHOLD AMOUNT FOR CALCULATION OF REDUCTION OF RETIRED PAY (a) IN GENERAL.—Section 1452(a) of title 10, United States Code, is amended— (1) by inserting "(1)" after "(a)"; (2) in the first sentence— (A) by redesignating clauses (1) and (2) as clauses (A) and (B), respectively; (B) in clause (A) (as so redesignated)— (i) by inserting "(as adjusted from time to time under paragraph (4))" after "$300"; and (ii) by striking out "an annuity by virtue of eligibility under section 1448(a)(1)(A) of this title" and inserting in lieu thereof "a standard annuity"; and (C) in clause (B) (as so redesignated), by striking out "an annuity by virtue of eligibility under section 1448(a)(1)(B)" and inserting in lieu thereof "a reserve-component annuity"; (3) by designating the second sentence as paragraph (2) and striking out "As long as" and all that follows through "that amount" and inserting in lieu thereof "If there is a dependent child as well as a spouse or former spouse, the amount prescribed under paragraph (1)"; (4) by designating the third sentence as paragraph (3) and in such sentence— (A) by striking out "the first sentence of this subsection" and inserting in lieu thereof "paragraph (1)"; and (B) by inserting "or former spouse" after "eligible spouse"; and (5) by adding at the end thereof the following new paragraph: "(4)(A) Whenever there is an increase in the rates of basic pay of members of the uniformed services effective on or after October 1, 1985, the amount under paragraph (1)(A) with respect to which the percentage factor of 2V2 is applied shall be increased by the overall percentage of such increase in the rates of basic pay. The increase under the preceding sentence shall apply only with respect to persons whose retired pay is computed based on the rates of basic

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