[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 935 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 935

To repeal the requirement for reduction of survivor annuities under the 
      Survivor Benefit Plan by veterans' dependency and indemnity 
                 compensation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2007

   Mr. Nelson of Florida (for himself, Mr. Hagel, Mr. Bingaman, Ms. 
Mikulski, Mrs. Lincoln, Mr. Biden, Mr. Vitter, Mr. Domenici, Mr. Kerry, 
 Mr. Martinez, Mr. Salazar, Ms. Snowe, Mr. Brown, Mrs. Feinstein, Mrs. 
Murray, and Mrs. Clinton) introduced the following bill; which was read 
         twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To repeal the requirement for reduction of survivor annuities under the 
      Survivor Benefit Plan by veterans' dependency and indemnity 
                 compensation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR ANNUITIES 
              BY DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Repeal.--
            (1) In general.--Subchapter II of chapter 73 of title 10, 
        United States Code, is amended as follows:
                    (A) In section 1450, by striking subsection (c).
                    (B) In section 1451(c)--
                            (i) by striking paragraph (2); and
                            (ii) by redesignating paragraphs (3) and 
                        (4) as paragraphs (2) and (3), respectively.
            (2) Conforming amendments.--Such subchapter is further 
        amended as follows:
                    (A) In section 1450--
                            (i) by striking subsection (e); and
                            (ii) by striking subsection (k).
                    (B) In section 1451(g)(1), by striking subparagraph 
                (C).
                    (C) In section 1452--
                            (i) in subsection (f)(2), by striking 
                        ``does not apply--'' and all that follows and 
                        inserting ``does not apply in the case of a 
                        deduction made through administrative error.''; 
                        and
                            (ii) by striking subsection (g).
                    (D) In section 1455(c), by striking ``, 
                1450(k)(2),''.
    (b) Prohibition on Retroactive Benefits.--No benefits may be paid 
to any person for any period before the effective date provided under 
subsection (f) by reason of the amendments made by subsection (a).
    (c) Prohibition on Recoupment of Certain Amounts Previously 
Refunded to SBP Recipients.--A surviving spouse who is or has been in 
receipt of an annuity under the Survivor Benefit Plan under subchapter 
II of chapter 73 of title 10, United States Code, that is in effect 
before the effective date provided under subsection (f) and that is 
adjusted by reason of the amendments made by subsection (a) and who has 
received a refund of retired pay under section 1450(e) of title 10, 
United States Code, shall not be required to repay such refund to the 
United States.
    (d) Repeal of Authority for Optional Annuity for Dependent 
Children.--Section 1448(d)(2) of such title is amended--
            (1) by striking ``Dependent children.--'' and all that 
        follows through ``In the case of a member described in 
        paragraph (1),'' and inserting ``Dependent children.--In the 
        case of a member described in paragraph (1),''; and
            (2) by striking subparagraph (B).
    (e) Restoration of Eligibility for Previously Eligible Spouses.--
The Secretary of the military department concerned shall restore 
annuity eligibility to any eligible surviving spouse who, in 
consultation with the Secretary, previously elected to transfer payment 
of such annuity to a surviving child or children under the provisions 
of section 1448(d)(2)(B) of title 10, United States Code, as in effect 
on the day before the effective date provided under subsection (f). 
Such eligibility shall be restored whether or not payment to such child 
or children subsequently was terminated due to loss of dependent status 
or death. For the purposes of this subsection, an eligible spouse 
includes a spouse who was previously eligible for payment of such 
annuity and is not remarried, or remarried after having attained age 
55, or whose second or subsequent marriage has been terminated by 
death, divorce or annulment.
    (f) Effective Date.--The sections and the amendments made by this 
section shall take effect on the later of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted.

SEC. 2. EFFECTIVE DATE OF PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    (a) Survivor Benefit Plan.--Section 1452(j) of title 10, United 
States Code, is amended by striking ``October 1, 2008'' and inserting 
``October 1, 2007''.
    (b) Retired Serviceman's Family Protection Plan.--Section 1436a of 
such title is amended by striking ``October 1, 2008'' and inserting 
``October 1, 2007''.
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