Page:United States Statutes at Large Volume 110 Part 3.djvu/837

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PUBLIC LAW 104-201—SEPT. 23, 1996 110 STAT. 2567 computed under that subsection rather than under clause (i), "(2) RESERVE-COMPONENT ANNUITY—In the case of a reserve-component annuity provided to a beneficiary under section 1450(a) of this title (other than under section 1450(a)(4)), the monthly annuity payable to the beneficiary shall be determined as follows: "(A) BENEFICIARY UNDER 62 YEARS OF AGE. —I f the beneficiary is under 62 years of age or is a dependent child when becoming entitled to the annuity, the monthly annuity shall be the amount equal to a percentage of the base amount that— "(i) is less than 55 percent; and "(ii) is determined under subsection (f). " (B) BENEFICIARY 62 YEARS OF AGE OR OLDER. — "(i) GENERAL RULE.—I f the beneficiary (other than a dependent child) is 62 years of age or older when becoming entitled to the Einnuity, the monthly annuity shall be the amount equal to a percentage of the base amount that— "(I) is less than 35 percent; and "(II) is determined under subsection (f). " (ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL SECURITY OFFSET COMPUTATION.—If the beneficiary is eligible to have the annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary than computation under clause (i), the annuity shall be computed under that subsection rather than under clause (i). " (b) INSURABLE INTEREST BENEFICIARY.— "(1) STANDARD ANNUITY.—In the case of a standard annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to the beneficiary shall be the amount equal to 55 percent of the retired pay of the person who elected to provide the annuity after the reduction in that pay in accordance with section 1452(c) of this title. "(2) RESERVE-COMPONENT ANNUITY.—In the case of a reserve-component annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to the beneficiary shall be the amount equal to a percentage of the retired pay of the person who elected to provide the annuity after the reduction in such pay in accordance with section 1452(c) of this title that— "(A) is less than 55 percent; and "(B) is determined under subsection (f). " (3) COMPUTATION OF RESERVE-COMPONENT ANNUITY WHEN PARTICIPANT DIES BEFORE AGE 60.— For the purposes of paragraph (2), a person— "(A) who provides an annuity that is determined in accordance with that paragraph; "(B) who dies before becoming 60 years of age; and "(C) who at the time of death is otherwise entitled to retired pay, shall be considered to have been entitled to retired pay at the time of death. The retired pay of such person for the