pay which may be awarded him as a result of service in his uniformed service in order to provide one or more of the annuities specified in Title 10, United States Code, section 1434, payable after his death in a retired status to his widow, child, or children, subject to certain limitations specified in the law and elaborated in the regulations in this part. § 48.102 Definitions.

(a) The term "Plan" as used in this part means the Retired Serviceman's Family Protection Plan.

(b) The term "uniformed services" means the Army, Navy, Air Force, Marine Corps, Coast Guard, Coast and Geodetic Survey, and Public Health Service.

(c) The term "member" means a commissioned officer, commissioned warrant officer, warrant officer, nurse, flight officer, or a person in an enlisted grade (including an aviation cadet) of any of the uniformed services, and a person in any of those categories who is entitled to or is in receipt of retired pay except persons excluded in Title 10, United States Code, section 1431a, as amended.

(d) The term "widow" includes "widower" and refers to the lawful spouse of the member on the date of retirement with pay.

(e) The term "child" means, in all cases, a member's child, as hereafter defined, who was born and is living and meets the following requirements on the date of retirement of the member with pay or November 1, 1953-whichever is later:

(1) A legitimate child under 18 years of age and unmarried.

(2) A stepchild, under 18 years of age and unmarried, who is in fact dependent on the member for support (see (f) and (g) below).

(3) A legally adopted child, under 18 years of age and unmarried.

(4) A child, as defined above, who is over 18 years of age and unmarried, and who is incapable of self-support because of being mentally defective or physically incapacitated if that condition existed prior to reaching age 18.

(f) The term "stepchild" means a child of a member's spouse by a former marriage. The stepchild relationship terminates upon the divorce of the parent spouse but not upon the death of the parent spouse.

(g) The term "in fact dependent" means that the stepchild must be de

pendent on the member for over half of his or her support.

(h) The term "retirement" means retirement with eligibility to receive pay (unless otherwise indicated).

(i) The term "retired pay" includes retired, retirement, equivalent, and retainer pay.

(j) The term "reduced retired pay" means the retired pay remaining after the cost of participation in the Plan has been subtracted.

(k) The term "department concerned" means (1) the Department of the Army with respect to the Army, (2) the Department of the Navy with respect to the Navy and Marine Corps, (3) the Department of the Air Force with respect to the Air Force, (4) the Treasury Department with respect to the Coast Guard, (5) the Department of Commerce with respect to the Coast and Geodetic Survey, and (6) the Department of Health, Education, and Welfare with respect to Public Health Service.

(1) The term "dependents" means the prospective annuitants described in subsections 102d and 102e.

(m) The term "Board of Actuaries" means the Government Actuary, the Chief Actuary of the Social Security Administration, and a member of the Society of Actuaries appointed by the President to advise the Secretary of Defense on the administration of the Plan.

(n) The term "Joint Board" means representatives of the uniformed services appointed under the provisions of

§ 48.602.

(0) The term "years of service" means years of service creditable in the computation of basic pay.

Subpart B-Election of Options

§ 48.201 Options.

As provided in § 48.203, a member may elect one or more of the following annuities in amounts equal to one-half, one-quarter, or one-eighth of the reduced amount of his retired pay. Such amounts must be specified at the time of election:

(a) Option 1 is an annuity payable to or on behalf of his widow, the annuity to terminate upon her death or remarriage.

(b) Option 2 is an annuity payable to or on behalf of his surviving child or children, the annuity to terminate when there ceases to be at least one such surviving child eligible to receive the an

nuity. Each payment under such annuity shall be paid in equal shares to or on behalf of the surviving children remaining eligible at the time the payment is due.

(c) Option 3 is an annuity to or on behalf of his widow and surviving child or children. Such annuity shall be paid to the widow until death or remarriage, and thereafter each payment under such annuity shall be paid in equal shares to or on behalf of the surviving children remaining eligible at the time the payment is due. A member may provide for allocating during the period of the surviving spouse's eligibility, a part of the annuity under this section for payment to those of his surviving children who are not children of that spouse.

(d) Option 4 provides that no further deductions shall be made from the retired pay of the member commencing with the first day of the month following that in which there is no beneficiary eligible to receive an annuity payable under the election made by him in paragraphs (a), (b), or (c) of this section. § 48.202 Limitation on number of annuities.

Where a member desires to provide both the annuity provided by Option 1 and Option 2, he may elect either onequarter or one-eighth of his reduced retired pay for each option elected. The reduction in his retired pay on account of each annuity, and the amount of each annuity shall be determined separately. A member may not elect Option 1 and Option 3 or 2 and 3 for any amount either with or without Option 4.

§ 48.203 Election of options.

(a) A member who has completed less than 18 years of service may elect to receive a reduced amount of any retired pay which may be awarded him as the result of service in his uniformed service in order to provide one or more of the annuities as specified in §§ 48.201 and 48.202 payable after his death in a retired status to or on behalf of his surviving widow, child or children. To be effective the election by such member must be dated, signed, witnessed and delivered to appropriate service officials, or postmarked, not later than midnight on the day in which he completes 18 years of service. Such an election, if not effectively changed or revoked, will become effective immediately upon subsequent retirement.

or revocation. Deductions previously made shall not be refunded.

(c) A member retired for physical disability who is awarded retired pay on or after October 4, 1961, and prior to the completion of 18 years of service (and who had not already made an election prior to October 4, 1961), may make an election which is subject to the restrictions set forth in § 48.507. The election of the Plan by such member shall be made at the time of retirement if not made earlier.

(d) 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 18 years of service, he may make the election within one year after he ceases to be assigned to that station or returns to the jurisdiction of his service as the case may be, and such become effective imelection shall mediately.

(e) A member to whom retired pay is granted retroactively, and who is otherwise eligible to make an election, may make the election within 90 days after receiving notice that such pay has been granted him.

(f) Whenever a member is determined to be mentally incompetent by medical officers of the uniformed services or of the Veterans Administration, or is adjudged mentally incompetent by a court of competent jurisdiction and because of such mental incompetency is incapable of making any election within the time limitations prescribed by the Plan, the Secretary of the department concerned may make the appropriate election on behalf of such member upon request of the spouse, or if there be no spouse by or on behalf of the child or children of such member. If such member is subsequently determined to be mentally competent by the Veterans Administration or a court of competent jurisdiction, he may, within 180 days after such determination or judgment, change or revoke the election made on his behalf. In such a case, the change or revocation will be effective on the date

(g) If an election made is found to be void for any reason except fraud or willful intent of the member making the election, he may make a corrected election at any time within 90 days after he is notified in writing that the election is void. A corrected election made under this paragraph is effective as of the date of the voided election it replaces.

§ 48.204 Change or revocation of election.

(a) A change of election is a change in the percentage of the reduced amount of retired pay under any option, or a change in any option or options selected. A revocation is a cancellation of a previous election and constitutes a withdrawal from coverage under the Plan.

(b) A member may change the terms of his election as often as he may desire prior to his retirement. Such change shall become effective three years after the date of execution unless the member is retired in the interim period (see §§ 48.203 (f) and 48.604(d) for exceptions).

(c) A member may revoke an election at any time. However, if the member becomes entitled to retired pay within three years thereafter, such revocation shall have no effect (see §§ 48.203 (f) and 48.604(d) for exceptions). After a revocation has been submitted, the member may make a new election.

(d) A member in receipt of, or entitled to receive retirement pay may not change or revoke his election except when made under § 48.203 (f).

(e) Notification of a change of dependent is not a change of election. § 48.205 Statement from member who does not desire coverage.

(a) It is desirable that all members who do not elect to participate make a positive statement of declination of coverage under the Plan. Such members may endorse the election form stating that no election is desired.

(b) A member who stated his declination or made no statement of an election may subsequently elect to be covered by the Plan as specified in §§ 48.201 and 48.202. In order to be effective, the election must be made before completion of 18 years of service, or at least three years before the first day of retirement (see § 48.203 (d) and (e) for exceptions).

§ 48.206 Election form.

The form for making elections will be submitted as directed by the department concerned. All copies forwarded will be signed, and any signed copy may be used to substantiate the fact of election or declination.

§ 48.207 Information regarding elections.

(a) All members of the reserve components on inactive duty who have completed 17 years of service will be provided an individual letter of instructions and an option election form.

(b) It is the responsibility of the department concerned to provide election forms and to promulgate information concerning the benefits of the Plan to all members so as to allow a timely election.

(c) Members retiring for physical disability prior to the completion of 18 years of service will be counseled and furnished information concerning the operation of the Plan prior to retirement.

Subpart C-Designation of
Beneficiaries

If a member has dependents they should be named at the time of election or when they are acquired. The dependents named in an election option may be changed until the date of retirement provided such changes are limited to the same option. In any case all legal beneficiaries described in § 48.102 must be named at the date of retirement pursuant to the option elected. Although a member without dependents may also make an election, it will not be effective unless he has eligible dependents at the time of his retirement.

§ 48.302 Substantiating evidence regarding dependency and age of dependents.

At the time of submitting the election (or prior to the time of retirement), the member must indicate the date and place of his marriage and the full name of his wife prior to their marriage. If requested by the department concerned, he must also submit proof of dissolution of prior marriages, if any, of either spouse. The age of the dependents must be substantiated by a birth certificate or other competent evidence. The birth date of a member must be verified by his service record.

§ 48.303 Condition affecting entitlement of widow or widower.

A member may have a different lawful spouse at the time of retirement than the lawful spouse he had at the time of election. The lawful spouse at the time of retirement is the spouse eligible for an annuity.

Subpart D-Reduction of Retired Pay § 48.401 Computation of reduction.

(a) The reduction to be made in the retired pay of a member who has made an election shall be computed by the uniformed service concerned in each individual case based upon tables 1 showing percentage reduction in retired pay. These tables are published as Tables of Percentage Reduction of Retired Pay and Conversion Tables under the Retired Serviceman's Family Protection Plan. The computation shall be based upon the applicable table in effect on the date of retirement.

(b) If the member has no eligible dependents under the option (s) elected on the effective date of retirement, no reduction in retired pay shall be made.

(c) An adjustment may be made in the reduction of retired pay upon the finding of an administrative error or a mistake of fact.

(d) If a member elects to be covered by Option 3, or 3 and 4, and on the date he is awarded retired pay has no children eligible for the annuity, he shall have his costs computed as though he had elected Option 1, or 1 and 4. If he elects Option 3, or 3 and 4, and on the date he is awarded retired pay has no wife eligible for the annuity, he shall have his costs computed as though he had elected Option 2, or 2 and 4.

(e) The percentage of reduction and the annuity payable established for each individual at the time of his retirement shall remain unaltered regardless of future pay increases or decreases.

§ 48.403 Payment of nonwithheld reduction of retired pay.

(a) A member of a uniformed service who is entitled to retired pay and has made an election shall, during any period in which he is not receiving retired pay (including periods of active duty), deposit the amount which would have been withheld from his retired pay had he been receiving that pay.

(b) Such deposit will be payable to the Treasurer of the United States and shall be forwarded monthly to the disbursing office which would normally pay the member his retired pay.

(c) The disbursing office will in all cases inform the member of the amount to be deposited and when such deposits are to be made.

(d) In the event deposits are not made within 30 days of the due date, the disbursing office will inform the member concerned that he is delinquent from such due date and thereafter his designated beneficiaries will not be eligible for the annuity provided under the Plan until the arrears have been paid. The notification of delinquency will advise the member that 15 additional days have been granted to him in which to remit his deposit, and that if the arrears are not deposited within that period the member will be charged interest to include the first day of delinquency. In no case will the expiration date of the 15 days exceed a date later than 45 days from the date the deposit was due. The interest will be computed monthly and the rate will be that used in computing the tables of reduction in retired pay in effect on the date of the member's retirement. If such member later becomes in receipt of retired pay, any arrears with compound interest will be withheld. § 48.404 Ages to be used.

Ages to be used for calculating reductions of retired pay will be the ages of the member and his eligible dependents on their nearest birthday as of the date of the member's retirement, or November 1, 1953, whichever is later.

§ 48.405 Action upon removal from temporary disability retired list.

(a) Any member on the temporary disability retired list established pursuant to Title 10, United States Code, chapter 61, who has elected to receive reduced retired pay in order to provide one or more of the annuities specified in the Plan, and who is subsequently removed

from the list due to any reason other than permanent retirement, shall have refunded to him a sum which represents the difference between the amount by which his retired pay has been reduced and the cost of an amount of term insurance which is equal to the protection provided his dependents during the period he was on the temporary disability retired list.

(b) If the member concerned is returned to active duty, he may continue the election as previously made or he may change or revoke the election as provided in § 48.204.

(c) Service creditable for the purpose of the three year interval of active duty required to make a change, revocation or new election valid includes service before, during and after temporary disability retirement. (See §§ 48.203 and 48.204 and CompGen decision B 144158, December 23, 1960.) Active duty after removal from a temporary disability retired list is a necessity in such a case.

§ 48.406 Withdrawal for severe financial hardship.

(a) The Secretary of the department concerned may allow withdrawal from the Plan in those rare cases when, because of a member's severe financial hardship, enforced continued participation in the Plan would violate equity and good conscience. The absence of an eligible beneficiary shall not of itself be a basis for withdrawal. If a member is allowed to withdraw from the Plan, deductions from his retired pay or deposits in lieu of deductions for all periods prior to the effective date of withdrawal will not be refunded. A member allowed to withdraw may not at any time thereafter participate in the Plan unless the withdrawal occurred while the member was on a temporary retired list and he was later returned to duty.

(b) Requests for withdrawal shall be submitted to the Secretary concerned through prescribed channels. A member requesting withdrawal must furnish:

(1) A balance sheet document with itemized listing of all assets (real estate, stocks, bonds, personal property, etc.) owned by the member, spouse and dependent children. All outstanding liens, mortgages, and other indebtedness reducing the member or family equity in the assets shall be listed.

(2) A listing of all life insurance policies, with cash value and outstanding