I 111th CONGRESS 1st Session H. R. 2059 IN THE HOUSE OF REPRESENTATIVES April 23, 2009 Mr. Foster introduced the following bill; which was referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to provide for the payment of monthly annuities under the Survivor Benefit Plan to a supplemental or special needs trust established for the sole benefit of a disabled dependent child of a participant in the Survivor Benefit Plan.

1.

Survivor Benefit Plan annuities for special needs trusts established for the benefit of dependent children incapable of self-support

(a)

Special needs trust as eligible beneficiary

(1)

In general

Subsection (a) of section 1450 of title 10, United States Code, is amended— (A)by redesignating paragraph (4) as paragraph (5); and (B)by inserting after paragraph (3) the following new paragraph (4): (4)

Special needs trusts for sole benefit of certain dependent children

Notwithstanding subsection (i), a supplemental or special needs trust established under subparagraph (A) or (C) of section 1917(d)(4) of the Social Security Act (42 U.S.C. 1936p(d)(4)) for the sole benefit of a dependent child considered disabled under section 1614(a)(3) of that Act (42 U.S.C. 1382c(a)(3)) who is incapable of self-support because of mental or physical incapacity. . (2)

Conforming amendment

Subsection (i) of such section is amended by inserting (a)(4) or after subsection. (b)

Regulations

Section 1455(d) of such title is amended— (1)in the subsection heading, by striking and fiduciaries and inserting , fiduciaries, and special needs trusts; (2)in paragraph (1)— (A)in subparagraph (A), by striking and at the end; (B)in subparagraph (B), by striking the period at the end and inserting ; and; and (C)by adding at the end the following new subparagraph: (C)a dependent child incapable of self-support because of mental or physical incapacity for whom a supplemental or special needs trust has been established under subparagraph (A) or (C) of section 1917(d)(4) of the Social Security Act (42 U.S.C. 1936p(d)(4)). ; (3)in paragraph (2)— (A)by redesignating subparagraphs (C) through (H) as subparagraphs (D) through (I), respectively; (B)by inserting after subparagraph (B) the following new subparagraph (C): (C)In the case of an annuitant referred to in paragraph (1)(C), payment of the annuity to the supplemental or special needs trust established for the annuitant. ; (C)in subparagraph (D), as redesignated, by striking subparagraphs (D) and (E) and inserting subparagraphs (E) and (F); and (D)in subparagraph (H), as so redesignated— (i)by inserting or (1)(C) after paragraph (1)(B) in the matter preceding clause (i); (ii)in clause (i), by striking and at the end; (iii)in clause (ii), by striking the period at the end and inserting ; and; and (iv)by adding at the end the following new clause: (iii)procedures for determining when annuity payments to a supplemental or special needs trust shall end based on the death or marriage of the dependent child for which the trust was established. ; and (4)in paragraph (3), by striking to guardian or fiduciary in the paragraph heading.