To repeal the requirement for reduction of survivor annuities under the Survivor Benefit Plan by veterans' dependency and indemnity compensation.

SA 3073. Mr. NELSON of Florida submitted an amendment intended to be
proposed by him to the bill S. 3254, to authorize appropriations for
fiscal year 2013 for military activities of the Department of Defense,
for military construction, and for defense activities of the Department
of Energy, to prescribe military personnel strengths for such fiscal
year, and for other purposes; which was ordered to lie on the table; as
follows:

At the end of subtitle D of title VI, add the following:

SEC. 643. REPEAL OF REQUIREMENT OF REDUCTION OF SURVIVOR
BENEFITS PLAN SURVIVOR ANNUITIES BY DEPENDENCY
AND INDEMNITY COMPENSATION.

(a) Repeal.--
(1) In general.--Subchapter II of chapter 73 of title 10,
United States Code, is amended as follows:
(A) In section 1450, by striking subsection (c).
(B) In section 1451(c)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.
(2) Conforming amendments.--Such subchapter is further
amended as follows:
(A) In section 1450--
(i) by striking subsection (e);
(ii) by striking subsection (k); and
(iii) by striking subsection (m).
(B) In section 1451(g)(1), by striking subparagraph (C).
(C) In section 1452--
(i) in subsection (f)(2), by striking ``does not apply--''
and all that follows and inserting ``does not apply in the
case of a deduction made through administrative error.''; and
(ii) by striking subsection (g).
(D) In section 1455(c), by striking ``, 1450(k)(2),''.
(b) Prohibition on Retroactive Benefits.--No benefits may
be paid to any person for any period before the effective
date provided under subsection (f) by reason of the
amendments made by subsection (a).
(c) Prohibition on Recoupment of Certain Amounts Previously
Refunded to SBP Recipients.--A surviving spouse who is or has
been in receipt of an annuity under the Survivor Benefit Plan
under subchapter II of chapter 73 of title 10, United States
Code, that is in effect before the effective date provided
under subsection (f) and that is adjusted by reason of the
amendments made by subsection (a) and who has received a
refund of retired pay under section 1450(e) of title 10,
United States Code, shall not be required to repay such
refund to the United States.
(d) Repeal of Authority for Optional Annuity for Dependent
Children.--Section 1448(d) of such title is amended--
(1) in paragraph (1), by striking ``Except as provided in
paragraph (2)(B), the Secretary concerned'' and inserting
``The Secretary concerned''; and
(2) in paragraph (2)--
(A) by striking ``Dependent children.--'' and all that
follows through ``In the case of a member described in
paragraph (1),'' and inserting ``Dependent children annuity
when no eligible surviving spouse.--In the case of a member
described in paragraph (1),''; and
(B) by striking subparagraph (B).
(e) Restoration of Eligibility for Previously Eligible
Spouses.--The Secretary of the military department concerned
shall restore annuity eligibility to any eligible surviving
spouse who, in consultation with the Secretary, previously
elected to transfer payment of such annuity to a surviving
child or children under the provisions of section
1448(d)(2)(B) of title 10, United States Code, as in effect
on the day before the effective date provided under
subsection (f). Such eligibility shall be restored whether or
not payment to such child or children subsequently was
terminated due to loss of dependent status or death. For the
purposes of this subsection, an eligible spouse includes a
spouse who was previously eligible for payment of such
annuity and is not remarried, or remarried after having
attained age 55, or whose second or subsequent marriage has
been terminated by death, divorce or annulment.
(f) Effective Date.--This section and the amendments made
by this section shall take effect on the later of--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted.
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