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' 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.

1 Filed as part of original document.

(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. § 48.402

Effective date of reduction.

The effective date of reduction in retired pay will be the effective date of retirement with pay or November 1, 1953, whichever is later. The reduction in retired pay will be terminated on the date the member ceases to be entitled to retired pay or, in the case of members electing Option 4, on the first day of the month following that in which there is no eligible dependent.

§ 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 loans, carried on the life of the member, his spouse, and/or his dependent children.

(3) A statement of all salaries, wages, commissions, pensions, annuities, dividends and income from any other source received by the member, spouse, and dependent children during the past twelve months. Amounts withheld for taxes or other deductions shall be identified and included as income.

(4) An itemized statement of actual expenses for the past twelve months and estimated expenses for the next twelve months.

(5) A list of all obligations not otherwise shown.

(6) A statement of the events which have caused the member's living expenses or obligations to increase beyond that which might have been reasonably predicted prior to the time the member could have revoked an election to participate in the Plan.

(7) Any other information required by the Secretary concerned.

(8) An attested statement that all information furnished by the member is, to the best of his knowledge, true and correct.

(c) All requests for withdrawal shall be reviewed and evaluated as directed by the Secretary concerned. If he considers it desirable he may request the Joint Board described in § 48.602(a) to also review the request and to furnish him a recommendation of approval or disapproval. Any recommendation of the Joint Board shall require the concurrence of at least four services.

(d) After reviewing all evidence available including the recommendation of the Joint Board, the Secretary of the department concerned shall approve or disapprove the request for withdrawal. If the request is approved, it shall become effective at the end of the month in which approved. At that time deductions from retired pay will cease and in the event of the death of the member after that time no annuity will be payable.

(e) The applicant will be notified of secretarial action.

(f) If the request for withdrawal is approved, the service concerned will furnish the Board of Actuaries pertinent details of the case for inclusion in the annual report on the operation of the Plan.

§ 48.501

Subpart E-Annuity

General information.

No annuity payable under the Plan shall be assignable, or subject to execution, levy, attachment, garnishment, or other legal process. Annuities payable under this Plan shall be in addition to any pensions or other payments to which the beneficiaries may now or hereafter be entitled under other provisions of law (except as provided in § 48.507), and may not be considered as income under any law administered by the Veterans Administration except for the purposes of Title 38, United States Code, section 415 (g) and chapter 15.

month in which entitlement to that annuity terminates.

§ 48.503 Claims for annuity payments.

Upon official notification of the death of a retired member who has elected under the Plan, the department concerned shall forward to the eligible surviving dependents the necessary information and forms for making application for annuity payments. Such information shall include the place to which the application should be forwarded and to which questions regarding annuity payments should be addressed.

§ 48.504 Payment to children.

Annuities for a child or children will be paid to the child's guardian, or if there is no guardian to the person(s) who has care, custody, and control of the child or children.

(a) The Secretary of the department concerned is empowered to use any means provided by law to recover amounts of annuities erroneously paid to any individual under the Plan. He may authorize such recovery by adjustment in subsequent payments to which the individual is entitled.

(b) There need be no recovery when in the judgment of the Secretary of the department concerned and the Comptroller General of the United States, the individual to whom the erroneous payment was made is without fault and recovery would be contrary to the purpose of the Plan or would be against equity and good conscience.

§ 48.507 Restriction on participation.

(a) If on or after 4 October 1961, a person who has made an election under the Plan is retired by reason of physical

disability prior to completion of 18 years of service and hereafter dies, his beneficiaries are not entitled to the annuities provided under §§ 48.201 and 202 until they have submitted proof to the department concerned that they are not eligible for benefits under Title 38, United States Code, chapter 11 or 13. If either the widow or children is eligible for the latter benefits, then payment of annuities under the Plan may not be made to any member of the family.

(b) Upon notification of the death of the member in such a case the department concerned will take the following action:

(1) Forward to the eligible widow and/or children an application for survivor benefits under Title 38, United States Code, chapter 11 or 13, and instructions for completion and submission of the application to the office of the nearest Veterans Administration Regional Office. These instructions will include information concerning the conditions that must be met prior to any payment of annuity or refund of deductions.

(2) Notify the Central Office of the Veterans Administration of the death of the member and request that the department concerned be advised if an award is made under chapter 11 or 13 of Title 38, United States Code.

(c) If the beneficiaries on whose behalf the election was made are restricted under paragraph (a) of this section from participating in the annuities provided, the amounts withheld from the elector's retired pay shall be refunded to the beneficiaries, less the amount of any annuities paid under the provisions of the Retired Serviceman's Family Protection Plan, without interest.

Subpart F-Miscellaneous

(a) The Joint Committee for the Uniformed Services Contingency Option Act of 1953 is hereby redesignated as the Joint Board for the Retired Serviceman's Family Protection Plan.

(b) The Joint Board shall consist of a principal and alternate members appointed by each Secretary concerned. Alternate members will be authorized to act in the absence of the principal. The Board shall meet on call of the chairman. A quorum shall consist of representatives of at least four of the participating services.

(c) The Board shall establish procedures for the orderly conduct of business to be approved by the Assistant Secretary of Defense (Manpower).

(d) The duties of the Board will include but not be limited to the following: (1) Making recommendations to the Secretary of Defense for:

(i) Changes to the Executive order delegating to him functions conferred on the President by the law,

(ii) Changes to the regulations in this

part,

(iii) Changes to the law, and

(iv) Measures to insure uniform operating policies.

(2) Promulgating tables of percentage reduction of retired pay as prescribed by the Board of Actuaries.

(3) Promulgating the cost of term insurance as required in § 48.405.

(4) Preparing appropriate informational brochures concerning the Retired Serviceman's Family Protection Plan for distribution by the uniformed services.

(5) When requested, making recommendation for approval or disapproval of withdrawal from the Plan as set forth in § 48.406.

(e) The chairmanship of this Joint Board will be rotated annually on a fiscal year basis in the order of Air Force, Navy, and Army.

§ 48.603 Correction of administrative

deficiencies.

(a) The Secretary of the Department concerned may correct any election or any change or revocation of an election when he considers it necessary to correct an administrative error. Information

(b) Except when procured by fraud, a correction under this section is final and conclusive on all officers of the United States.

(c) Information on all corrections to elections under this Plan which are made under Title 10, United States Code, section 1552, shall be compiled and this information forwarded to the Board of Actuaries for an actuarial analysis.

§ 48.604 Transition and protective clauses.

(a) A revocation or change of election filed prior to October 4, 1961, shall become effective three years from the date made or on October 4, 1961, whichever is later, provided the member has not become entitled to receive retired pay in the interim.

(b) A member who made an election prior to October 4, 1961, and who is subsequently retired for physical disability with less than 18 years of service shall be considered as having applicable to him all the provisions of Title 10, United States Code, chapter 73, existing prior to October 4, 1961, except that any revocation or change in election will be effective three years from the date of filing, or October 4, 1961, whichever is later provided he has not become entitled to retired pay in the interim.

(c) A revocation or change of an election must be submitted not less than three years before the retirement of the elector in order to be effective except as noted in paragraph (d) of this section.

(d) A change or revocation of an election made under Title 10, United States Code, section 1431, by (1) an officer who is retired under section 10, act of July 12, 1960 (74 Stat. 396), (2) an officer who is retired under section 3, act of August 11, 1959 (73 Stat. 336), or (3) an officer who is retired under the provisions of Title 14, United States Code, section 235, is effective if made at such a time that it would have been effective had he been retired on the earliest date prescribed for an officer of his kind by Title 10, United States Code, sections 3918, 3921, 6376, 6377, 6379, 8916, or 8921, or Title 14, United States Code, section 248, as appropriate.

SERVICE OBLIGATION

Sec. 50.1

Purpose.

50.2

Cancellation.

50.3 Applicability.

50.4 The military service obligation.

AUTHORITY: The provisions of this Part 50 issued under secs. 4, 6, 62 Stat. 605, as amended, 609, as amended, sec. 651, 70A Stat. 27, as amended, sec. 516, 72 Stat. 1439, sec. 262, 69 Stat. 600, as amended, secs. 1, 2, 70 Stat. 333; 50 U.S.C. App. 454, 456, 10 U.S.C. 651, 516; 50 U.S.C. 1013, 1411, 1412.

SOURCE: The provisions of this Part 50 appear at 25 F.R. 14355, Dec. 31, 1960, unless otherwise noted.

The purpose of this part is to prescribe uniform policy with respect to fulfilling the statutory military service obligation. § 50.2 Cancellation.

DoD Directive 1200.3, "Reserve Obligations Under section 4(d), Universal Military Training and Service Act, as amended," dated March 2, 1953, and DoD Directive 1300.4, "Discharge of Reservists for the Purpose of Immediate Entry into the U.S. Military Academy, the U.S. Naval Academy, the U.S. Air Force Academy, or the U.S. Coast Guard Academy, to Prevent Such Individuals from Having Dual Military Status While Enrolled Therein," dated May 3, 1954, are hereby superseded and cancelled. § 50.3 Applicability.

This part applies to all military departments in the administration of the regular and reserve components. § 50.4

The military service obligation. (a) Subsections 4(d) (1) and (2) of the Universal Military Training and Service Act, as amended, hereinafter referred to as the UMT&S Act, as amended. Members of the Armed Forces, including the reserve components thereof, who possess a statutory reserve obligation as a result of the operation of subsections 4 (d) (1) and (2) of this act are relieved of that obligation by being discharged from military status at the discretion of the Secretary concerned.

(b) Subsection 4 (d) (3) of the UMT&S Act, as amended (1) Statutory provisions-(i) The eight year obligation. "Each person who • [between June 20, 1951 and August 9, 1955,