Military Widow’s Tax Elimination Act of 2019

II 116TH CONGRESS 1ST SESSION S. 622 To amend title 10, United States Code, to repeal the requirement for reduc- tion of survivor annuities under the Survivor Benefit Plan by veterans’ dependency and indemnity compensation, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 28, 2019 Mr. JONES (for himself, Ms. COLLINS, Mr. COONS, Ms. WARREN, Mr. WYDEN, Mr. INHOFE, Mr. MERKLEY, Mr. CASEY, Mr. CRAPO, Mr. TESTER, Ms. HARRIS, Mr. HOEVEN, Mrs. MURRAY, Mr. LEAHY, Mrs. HYDE-SMITH, Ms. DUCKWORTH, Ms. BALDWIN, Ms. KLOBUCHAR, Mr. VAN HOLLEN, Ms. STABENOW, Mr. MARKEY, Mr. MENENDEZ, Mr. BOOZMAN, Mr. CRAMER, Mr. BENNET, Mr. RUBIO, Mr. RISCH, Mrs. BLACKBURN, and Mr. MANCHIN) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to repeal the require- ment for reduction of survivor annuities under the Sur- vivor Benefit Plan by veterans’ dependency and indem- nity compensation, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Military Widow’s Tax 4 Elimination Act of 2019’’. 5 VerDate Sep 11 2014 04:49 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 kjohnson on DSK79L0C42 with BILLS 2 •S 622 IS SEC. 2. REPEAL OF REQUIREMENT OF REDUCTION OF SUR- 1 VIVOR BENEFITS PLAN SURVIVOR ANNUITIES 2 BY DEPENDENCY AND INDEMNITY COM- 3 PENSATION. 4 (a) REPEAL.— 5 (1) IN GENERAL.—Subchapter II of chapter 73 6 of title 10, United States Code, is amended as fol- 7 lows: 8 (A) In section 1450, by striking subsection 9 (c). 10 (B) In section 1451(c)— 11 (i) by striking paragraph (2); and 12 (ii) by redesignating paragraphs (3) 13 and (4) as paragraphs (2) and (3), respec- 14 tively. 15 (2) CONFORMING AMENDMENTS.—Such sub- 16 chapter is further amended as follows: 17 (A) In section 1450— 18 (i) by striking subsection (e); 19 (ii) by striking subsection (k); and 20 (iii) by striking subsection (m). 21 (B) In section 1451(g)(1), by striking sub- 22 paragraph (C). 23 (C) In section 1452— 24 (i) in subsection (f)(2), by striking 25 ‘‘does not apply—’’ and all that follows 26 VerDate Sep 11 2014 04:49 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 kjohnson on DSK79L0C42 with BILLS 3 •S 622 IS and inserting ‘‘does not apply in the case 1 of a deduction made through administra- 2 tive error.’’; and 3 (ii) by striking subsection (g). 4 (D) In section 1455(c), by striking ‘‘, 5 1450(k)(2),’’. 6 (b) PROHIBITION ON RETROACTIVE BENEFITS.—No 7 benefits may be paid to any person for any period before 8 the effective date provided under subsection (f) by reason 9 of the amendments made by subsection (a). 10 (c) PROHIBITION ON RECOUPMENT OF CERTAIN 11 AMOUNTS PREVIOUSLY REFUNDED TO SBP RECIPI- 12 ENTS.—A surviving spouse who is or has been in receipt 13 of an annuity under the Survivor Benefit Plan under sub- 14 chapter II of chapter 73 of title 10, United States Code, 15 that is in effect before the effective date provided under 16 subsection (f) and that is adjusted by reason of the 17 amendments made by subsection (a) and who has received 18 a refund of retired pay under section 1450(e) of title 10, 19 United States Code, shall not be required to repay such 20 refund to the United States. 21 (d) REPEAL OF AUTHORITY FOR OPTIONAL ANNUITY 22 FOR DEPENDENT CHILDREN.—Section 1448(d) of such 23 title is amended— 24 VerDate Sep 11 2014 04:49 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 kjohnson on DSK79L0C42 with BILLS 4 •S 622 IS (1) in paragraph (1), by striking ‘‘Except as 1 provided in paragraph (2)(B), the Secretary con- 2 cerned’’ and inserting ‘‘The Secretary concerned’’; 3 and 4 (2) in paragraph (2)— 5 (A) by striking ‘‘DEPENDENT CHIL- 6 DREN.—’’ and all that follows through ‘‘In the 7 case of a member described in paragraph (1),’’ 8 and inserting ‘‘DEPENDENT CHILDREN ANNU- 9 ITY WHEN NO ELIGIBLE SURVIVING SPOUSE.— 10 In the case of a member described in paragraph 11 (1)’’; and 12 (B) by striking subparagraph (B). 13 (e) RESTORATION OF ELIGIBILITY FOR PREVIOUSLY 14 ELIGIBLE SPOUSES.—The Secretary of the military de- 15 partment concerned shall restore annuity eligibility to any 16 eligible surviving spouse who, in consultation with the Sec- 17 retary, previously elected to transfer payment of such an- 18 nuity to a surviving child or children under the provisions 19 of section 1448(d)(2)(B) of title 10, United States Code, 20 as in effect on the day before the effective date provided 21 under subsection (f). Such eligibility shall be restored 22 whether or not payment to such child or children subse- 23 quently was terminated due to loss of dependent status 24 or death. For the purposes of this subsection, an eligible 25 VerDate Sep 11 2014 04:49 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 kjohnson on DSK79L0C42 with BILLS 5 •S 622 IS spouse includes a spouse who was previously eligible for 1 payment of such annuity and is not remarried, or remar- 2 ried after having attained age 55, or whose second or sub- 3 sequent marriage has been terminated by death, divorce 4 or annulment. 5 (f) EFFECTIVE DATE.—This section and the amend- 6 ments made by this section shall take effect on the later 7 of— 8 (1) the first day of the first month that begins 9 after the date of the enactment of this Act; or 10 (2) the first day of the fiscal year that begins 11 in the calendar year in which this Act is enacted. 12 Æ VerDate Sep 11 2014 04:49 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S622.IS S622 kjohnson on DSK79L0C42 with BILLS