Title 10 — Armed Forces
Part II · Chapter 73 — Annuities Based on Retired or Retainer Pay
§ 1436. Computation of reduction in retired pay; withdrawal for severe financial hardship
Statutory text
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.
Under regulations prescribed under section 1444(a) of this title, the Secretary concerned may, upon application by the retired member, allow the member—
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
to withdraw from participation in an annuity program under this title; or
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
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.
A retired member may not reduce an annuity under clause (1) of this subsection, or withdraw under clause (2) of this subsection, earlier than the first day of the seventh calendar month beginning after he applies for reduction or withdrawal. A change of election under clause (3) of this subsection shall be effective on the first day of the month following the month in which application is made. An election under clause (4) of this subsection shall be effective on the first day of the month following the month in which application is made and, if on the effective date there is no surviving child who would be eligible for an annuity provided under clause (2) of section 1434(a), or under section 1434(b), of this title if the elector died, no deduction shall be made for such an annuity to, or on behalf of, a child from the elector’s retired or retainer pay for that month or any subsequent month. No amounts by which a member’s retired or retainer pay is reduced prior to the effective date of a reduction of annuity, withdrawal, change of election, or election under this subsection may be refunded to, or credited on behalf of, the member by virtue of an application made by him under this subsection.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 10, 1956, ch. 1041, 70A Stat. 110 · 70A Stat. 110
Enacted · 10 U.S.C. § 1436
Aug. 10, 1956, ch. 1041, 70A Stat. 110
Source evidence
Code source credit
Aug. 10, 1956, ch. 1041, 70A Stat. 110Pub. L. 87–381 § 4 · 75 Stat. 810
Amended · 10 U.S.C. § 1436
Pub. L. 87–381 designated existing provisions as subsec. (a)
Added · 10 U.S.C. § 1436
Pub. L. 87–381 added subsec. (b)
Inserted · 10 U.S.C. § 1436
Pub. L. 87–381 inserted “; withdrawal for severe financial hardship” in section catchline
Source evidence
Code amendment note
Pub. L. 87–381 designated existing provisions as subsec. (a), added subsec. (b), and inserted “; withdrawal for severe financial hardship” in section catchline.Enacted provision · exact public law section
Sec. 4. Section 1436 of title 10, United States Code, is amended— 70A Stat. 110. (1) by adding the following at the end of the catchline: “; withdrawal for severe financial hardship”; (2) by inserting the designation “(a)” before the words “The reduction” at the beginning; and (3) by adding the following new subsection at the end thereof: “(b) Under regulations prescribed under section 1444(a) of this title, the Secretary concerned may, whenever he considers it necessary because of the member’s severe financial hardship, allow him to withdraw from participation in an annuity program under this chapter, when requiring the member to continue to participate in the program would violate equity and good conscience. The absence of an eligible beneficiary shall not of itself be a basis for such action. However, no amounts by which retired or retainer pay is reduced may be refunded to him under this subsection.”Pub. L. 90–207 § 2(a)(3) · 81 Stat. 649
Inserted · 10 U.S.C. § 1436(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”
Source evidence
Code amendment note
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”.Enacted provision · exact public law section
(3) The first sentence of section 1436(a) is amended by inserting 70A Stat. 110; 75 Stat. 811. “but without regard to any increase in that pay to reflect changes in the Consumer Price Index” after “that pay” and before the period.Pub. L. 90–485 § 1(6) · 82 Stat. 751
Amended · 10 U.S.C. § 1436(b)
Pub. L. 90–485, as amended by Pub. L. 104–106
Substituted · 10 U.S.C. § 1436(b)
Pub. L. 90–485, as 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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
(1) Section 1431(b) is amended to read as follows: “(b) To provide an annuity under section 1434 of this title, a person covered by subsection (a) may elect to receive a reduced amount of the retired pay or retainer pay to which he may become entitled as a result of service in his armed force. Except as otherwise provided in this section, unless it is made before he completes nineteen years of service for which he is entitled to credit in the computation of his basic pay, the election must be made at least two years before the first day for which retired pay or retainer pay is granted. However, if, because of military operations, a member is assigned to an isolated station or is missing, interned in a neutral country, captured by a hostile force, or beleaguered or besieged, and for that reason is unable to make an election before completing nineteen years of that service, he may make the election, to become effective immediately, within one year after he ceases to be assigned to that station or returns to the jurisdiction of his armed force, as the case may be. A member to whom retired pay or retainer pay is granted retroactively, and who is otherwise eligible to make an election, may make the election within ninety days after receiving notice that such pay has been granted to him. An election made after the date of enactment of this amendment is not effective if— “(1) the elector dies during the first thirty-day period he is entitled to retired pay as a result of a physical condition which led to his being granted retired pay under chapter 61 of title 10 with 70A Stat. 91. 10 USC 1201–1221. a disability of 100 per centum under the standard schedule of rating disabilities in use by the Veterans’ Administration at the time of the determination of the per centum of his disability; “(2) the disability was not the result of injury or disease received in line of duty as a direct result of armed conflict; and “(3) his widow or children are entitled to dependency and indemnity compensation under chapter 13 of title 38 based upon 72 Stat. 1126. 38 USC 401–423. his death.”Effective date note
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.Pub. L. 92–425 § 1(2)(A) · 86 Stat. 706
Substituted · 10 U.S.C. § 1436(a)
Pub. L. 92–425 substituted “subchapter” for “chapter”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 92–425 substituted “subchapter” for “chapter”.Enacted provision · exact public law section
(1) The title of the chapter is amended by adding “; SURVIVOR BENEFIT PLAN” after “PAY”, and by inserting the following after the revised title; “Subchapter “I. Retired Serviceman’s Family Protection Plan “II. Survivor Benefit Plan “Subchapter I.— Retired Serviceman’s Family Protection Plan”.National Defense Authorization Act for Fiscal Year 1996
Pub. L. 104–106 div. A title XV § 1505(c) · 110 Stat. 186
Changed · 10 U.S.C. § 1436(b)
Pub. L. 104–106 made technical correction to directory language of Pub. L. 90–485, § 1(6). See 1968 Amendment note below
Source evidence
Code amendment note
Subsec. (b). Pub. L. 104–106 made technical correction to directory language of Pub. L. 90–485, § 1(6). See 1968 Amendment note below.Enacted provision · exact public law section
(c) Public Law 90–485.— Effective date. 10 USC 1436. Effective as of August 13, 1968, and as if included therein as originally enacted, section 1(6) of Public Law 90–485 (82 Stat. 753) is amended— (1) by striking out the close quotation marks after the end of clause (4) of the matter inserted by the amendment made by that section; and (2) by adding close quotation marks at the end.Effective date note
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.
8 of 9 references resolved to an enrolled provision · 1 partial
Notes
historicalAndRevision
| Historical and Revision Notes | ||
|---|---|---|
| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| 1436 | 37:373(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
Amendments1961–1996 · 5 rounds
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), , 110 Stat. 514, provided that the amendment made by that section is effective , and as if included in Pub. L. 90–485 as originally enacted.
Effective Date of 1968 Amendment
Amendment by Pub. L. 90–485 effective , see section 6 of Pub. L. 90–485, set out as a note under section 1431 of this title.
Effective Date of 1967 Amendment
Amendment by Pub. L. 90–207 effective , 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.
Credits
1956–1996 · 6 acts
- 1956Aug. 10, 1956, ch. 1041, 70A Stat. 110
- 1961Pub. L. 87–381, § 4, , 75 Stat. 811
- 1967Pub. L. 90–207, § 2(a)(3), , 81 Stat. 653
- 1968Pub. L. 90–485, § 1(6), , 82 Stat. 753
- 1972Pub. L. 92–425, § 1(2)(A), , 86 Stat. 706
- 1996Pub. L. 104–106, div. A, title XV, § 1505(c), , 110 Stat. 514.
Show as published
(Aug. 10, 1956, ch. 1041, 70A Stat. 110; Pub. L. 87–381, § 4, , 75 Stat. 811; Pub. L. 90–207, § 2(a)(3), , 81 Stat. 653; Pub. L. 90–485, § 1(6), , 82 Stat. 753; Pub. L. 92–425, § 1(2)(A), , 86 Stat. 706; Pub. L. 104–106, div. A, title XV, § 1505(c), , 110 Stat. 514.)