§1436 — Title 10 Armed Forces | U.S. Code

Summary

Calculate the cut in a person’s retired or retainer pay when they pick an annuity as of the date they become eligible, and do not count any cost-of-living increases. The cut is figured using actuarial tables chosen by the Board of Actuaries and an interest rate of 3 percent per year, unless the Secretary of the Treasury sets a different rate for the next year by August 1 after looking at the average yield on long-term, marketable U.S. Treasury securities during the six months before that. Use the method and tables that are in effect on the date you make the calculation. If a retired member asks under rules made under section 1444(a), the Secretary can let the member do one of several things: lower the annuity amount they chose (but not below the required minimum), stop participating in the annuity program, switch from one annuity option to another if they previously chose the first option and they do not have an eligible child beneficiary, or say that a child who is at least 18 but under 23 years old will not count as eligible for certain survivor annuities. A child 18–22 is still eligible if they cannot support themselves because of a mental or physical condition that began before their 18th birthday.

Title 10, §1436

Armed Forces — Source: USLM XML via OLRC

(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 Secretary of the Treasury, after considering the average 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 specified 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 annuity 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 annuity 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 existing 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 existing 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 section 1434(a) of this title, or for an annuity provided 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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised sectionSource (U.S. Code)Source (Statutes at Large) 143637:373(c).Aug. 8, 1953, ch. 393, § 4(c), 67 Stat. 503. The words “of any person who elects an annuity” are substituted for the words “of an active or retired member who has made an election”. The words “in each individual case” and “designated in section 8” are omitted as surplusage. The words “and as of the date of election in the case of a retired member” are omitted as executed. 37:373(c) (1st 23 words of last sentence) is omitted as otherwise covered by the language of the revised section.

Editorial Notes

Amendments

1996—Subsec. (b). Pub. L. 104–106 made technical correction to directory language of Pub. L. 90–485, § 1(6). See 1968 Amendment note below. 1972—Subsec. (a). Pub. L. 92–425 substituted “subchapter” for “chapter”. 1968—Subsec. (b). Pub. L. 90–485, as amended by Pub. L. 104–106, substituted provisions authorizing the Secretary to allow the member to reduce the amount of the annuity, allow the member to withdraw from participation in an annuity program, allow the member to elect the annuity provided in section 1434(a)(1) in place of the annuity provided in section 1434(a)(3) under the specified conditions, and allow the member to elect that a child at least 18, but under 23, not be eligible for the specified annuities, setting forth the times when such reduction, withdrawal, or change of election may take place, and disallowing the refunding or crediting of any amount previously withheld, for provisions authorizing the Secretary to allow the member to withdraw from participation in an annuity program whenever the Secretary considers it necessary because of the member’s severe financial hardship, the absence of an eligible beneficiary not of itself to be a basis for such action. 1967—Subsec. (a). Pub. L. 90–207 inserted “but without regard to any increase in that pay to reflect changes in the Consumer Price Index” after “that pay”. 1961—Pub. L. 87–381 designated existing provisions as subsec. (a), added subsec. (b), and inserted “; withdrawal for severe financial hardship” in section catchline.

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 Amendment Pub. L. 104–106, div. A, title XV, § 1505(c), Feb. 10, 1996, 110 Stat. 514, provided that the amendment made by that section is effective Aug. 13, 1968, and as if included in Pub. L. 90–485 as originally enacted.

Effective Date

of 1968 AmendmentAmendment by Pub. L. 90–485 effective Aug. 13, 1968, see section 6 of Pub. L. 90–485, set out as a note under section 1431 of this title.

Effective Date

of 1967 AmendmentAmendment by Pub. L. 90–207 effective Oct. 1, 1967, see section 7 of Pub. L. 90–207, set out as a note under section 203 of Title 37, Pay and Allowances of the Uniformed Services.

§1436 Computation of Reduction in Retired Pay; Withdrawal for Severe Financial Hardship

Summary

Title 10, §1436

Notes & Related Subsidiaries

Historical and Revision Notes

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata