Page:United States Statutes at Large Volume 70A.djvu/168

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110

110 section (a), but the combined amount of the annuities may not be more than 50 percent of his reduced retired or retainer pay. (c) Any annuity under subsection (a), or any combination of annuities under subsection (b), may provide, at the elector's option, that no deduction may be made from his retired or retainer pay after the last day of the month in which there is no beneficiary who would be eligible for the annuity if the elector died. §1435. Eligible beneficiaries Only the following persons are eligible to be made the beneficiaries of, or to receive payments under, an annuity elected under this chapter by a member of the armed forces: (1) The spouse of the member on the date when the member is retired or becomes entitled to retired or retainer pay or, if the member was already retired or entitled to retired or retainer pay on November 1, 1953, the spouse on that date. (2) The children of the member who are— (A) unmarried; (B) under 18 years of age or incapable of supporting themselves because of a mental defect or physical incapacity existing before their eighteenth birthday; (C) legitimate or adopted children of, or stepchildren in fact dependent for their support upon, the member; (D) living on the date when the member is retired or becomes entitled to retired or retainer pay or, if the member was already retired or entitled to retired or retainer pay on November 1, 1953, living on that date; and (E) born on or before the date prescribed in clause (D). § 1436. Computation of reduction in retired pay The reduction in the retired or retainer pay of any person who elects an annuity under this chapter shall be computed by the armed force concerned as of the date when the persor oecomes eligible for that pay. I t shall be computed under an actuarial equivalent method based on (1) appra<priate 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. § 1437. Payment of annuity Each annuity payable under this chapter accrues as of the first day of the month in which the person upon whose reduced pay the annuity is based dies. Payments shall be made in equal installments and not later than the fifteenth day of each month following that month. However, no annuity accrues for the month in which entitlement thereto ends. § 1438. Deposits for amounts not deducted If, for any period, a person who has been retired or has become entitled to retired or riBtainer pay, and who has elected an annuity under this chapter, is not entitled to retired or retainer pay, he must