should be marked at the top "Amended" and should incorporate any corrections you wish to make. A claim for refund filed on TD Form 843 should clearly set forth the issue or issues upon which you are basing your claim for refund; factual material should be fully presented and cover only 1 year. An amended return or claim for refund generally must be filed within 3 years from the due date for filing the original return.

69. Advice and Assistance:

a. The whole subject of taxation of retired pay cannot be covered in the space of a few pages. You may obtain further advice on any Federal tax question from your District Director of Internal Revenue or from any Air Force legal assistance officer. Final determination in every specific tax case must, of course, be made by the Internal Revenue Service.

b. Final Reminder. Your Withholding Tax Statement (TD Form W-2), will be mailed to you from the Finance Center on or before 15 January, if you have received any taxable retired pay during the preceding year. If you should have received a copy and do not have it by 10 February, it is suggested that you advise the Retired Pay Division, AFAFC, of that fact. 70. State and Local Taxes. Each individual should contact State and/or local authorities with reference to taxes other than Federal income taxes. There are no provisions whereby these taxes can be withheld from your retired pay.

71. Allotments:

a. General. Monthly allotments authorized from retired pay are Class D (U.S. Government Life Insurance), Class N (National Service Life Insurance), and Class E allotments to commercial insurance companies. These allotments are authorized for the payment of premiums of life insurance on your life only, or for life insurance premiums on family group type policies where primary coverage is on your life. No other allotment deductions are authorized. All of the allotment accounts of retired Air Force personnel are maintained and paid by the Retired Pay Division, AFAFC. Allotments from retired pay in payment of insurance premiums normally pay the premium for the month fol

lowing the month of deduction. For example, the deduction from your pay for the month of May will be forwarded to the insurance company before 10 June in payment of the June premium. All correspondence and inquiries regarding insurance dividends, extent of coverage, and change of beneficiaries should be addressed directly to the Veterans Administration Insurance Center, Philadelphia Pa 15240, or to the commercial insurance company, as appropriate. b. Action Regarding Allotments Before Retirement. A member who is to be retired should prepare AF Form 337, "Allotment Authorization to Start or Stop Allotments," as follows: (1) To continue in effect from retired pay, any Class D, E, or N allotments previously in effect; and

(2) To establish any authorized Class D, E, or N allotments for deduction from retired pay.

AF Forms 337 in the case of subparagraph (1) or (2) above will not be routed through the Accounting and Finance Office but will be forwarded by the servicing CBPO direct to Director of Allotments and Retired Pay, AFAFC (MR), 3800 York St Denver Colo 80205.

c. Request for Changes in Allotments Subsequent to Retirement. Request for authorization, change or discontinuance of allotments subsequent to retirement should be forwarded to AFAFC (MR), 3800 York St Denver Colo 80205. AF Form 337, for this purpose, may be requested from the Retired Pay Division, AFAFC; however, to accommodate retired personnel who frequently do not have access to printed forms and to eliminate the need for requesting such forms, the Retired Pay Division, AFAFC, will accept informal letters over handwritten signatures requesting the registration or discontinuance of allotments. Requests by wire or telephone cannot be accepted. Changes in allotments must be received in the Retired Pay Division, AFAFC, by the 15th of the month to have the change effective with that month's pay. When requesting any of the above actions, you must state the monthly amount, month of first (or last) deduction from your pay, and the name of the payee. The Veterans Administration Insurance Center, Philadelphia, Pa., 15240, is the payee of all

Government and National Service Life Insurance allotments premiums. For commercial insurances, state the full name of the company and its home address.

d. Renewal of Government Life Insurance (U.S. Government Life Insurance and National Service Life Insurance). A notice of the increase in premium rates to the insured's attained insurance age for renewal of 5-year level premium term insurance will be received in the Retired Pay Division, AFAFC, from the Veterans Administration. Upon receipt of this notice, the Retired Pay Division, AFAFC, will forward the renewal indorsement to you, together with AF Form 337 and information regarding the increase in your premium. Attach the renewal indorsement to your policy. Sign the AF Form 337 and return it to the Retired Pay Division, AFAFC, to authorize the increased allotment deduction from your pay. The necessary renewal adjustment to your account will not be made until your authorization has been received by the Retired Pay Division, AFAFC.

e. Reduction in Pay Under the Retired Serviceman's Family Protection Plan. Deductions from retired pay of members who have elected an option under this plan are discussed in paragraph 83.

f. Other Deductions. Other deductions that may be made from your retired pay include:

(1) Outstanding indebtedness to the U.S. Government due to an overpayment or nondeduction while on active duty or subsequent to retirement.

(2) Under the provisions of Chapter 24, Section 6321, the Internal Revenue Code of 1954, taxes owed to the Federal Government may be collected by levy against accrued retired pay, if payment or satisfactory arrangements. are not made within 10 days after notice and demand with the Internal Revenue for payment of such taxes owed. The AFAFC, upon receipt of a Notice of Levy from the Internal Revenue Service, is required by law to apply the full retired pay accrued as of the date Notice of Levy is received toward satisfying any amounts owed by a retired member.

72. Administration of Accounts. The active duty and retired pay accounts of mentally incompetent members of the Air Force are administered by the Retired Pay Division, AFAFC. When an active duty Air Force member has been officially declared mentally incompetent, his military pay record and related documents are transferred from his active duty station to the Retired Pay Division, AFAFC, where they are maintained until his retirement, separation from the service, or restoration to competency. If a mentally incompetent member is hospitalized in a Veterans Administration facility, the manager of the VA facility may request, and the Retired Pay Division, AFAFC, will pay to the manager, limited amounts of retired pay or other pay due the member. Such funds will be paid to the manager only if a trustee or other legal representative has not been appointed, and are to be used for the member's normal requirements or for articles or services determined to be therapeutically beneficial to the member.

73. Action Taken Upon Receipt of Notice of Incompetency:

a. Upon receipt of notice that an Air Force member (while on active duty or after retirement) has been officially declared mentally incompetent, the Retired Pay Division, AFAFC, will contact the next-of-kin to ascertain whether a legal guardian will be appointed. If a legal guardian will not be appointed, the Retired Pay Division, AFAFC, is authorized to designate a trustee to receive the pay and allowance (including mustering-out pay, final travel pay, clothing allowance, deposits, accrued leave, etc.) or retired pay due the member.

b. Any person, preferably in the order of precedence indicated below, is eligible to be designated as trustee provided that such person's age is 21 or more:

(1) Lawful wife or husband of the incompetent (age requirement may be waived in this case).

(2) Legitimate or legally adopted son or daughter of the incompetent.

(3) Either or both parents of the incompetent.

(4) The head of an institution while the member is committed to the care of an institution, provided that such person can comply with the accounting and reporting requirements.

(5) Any other person or persons, provided that such designation is considered to be in the best interest of the incompetent.

c. The prescribed form to be used in submitting application for trusteeship is AFAFC Form 510-41, "Trustee Application and Designation," which the Retired Pay Division, AFAFC, will furnish in duplicate to a prospective trustee. The person desiring trusteeship will sign and return both copies of the form to AFAFC. However, any person wishing to be designated as trustee may submit a written application by letter to the Retired Pay Division, AFAFC.

d. Retired Pay Division, AFAFC, will complete the lower portion of Form 510-41 and return it to the person or persons designated as trustee, with a letter giving complete instructions as to the duties and responsibilities of trusteeship.

74. Duties and Responsibilities of Trustee: a. The trustee must furnish a corporate surety bond commensurate with the income and size of the estate of the incompetent. For this purpose the Retired Pay Division, AFAFC, will furnish DD Form 462. To determine the amount of the initial bond, an estimate of routine expenditures is required.

b. The person who has been designated as trustee will act in this capacity without remuneration for his services. However, if a bond

is required, the premium fee charged by the bonding company may be paid from funds received on behalf of the mentally incompetent member.

c. Quarterly reports will be required of the trustee to account for the funds received from the Air Force and expended on behalf of the incompetent member and for the maintenance, care, and comfort of his dependents. The Retired Pay Division, AFAFC, will furnish AFAFC Form 510-29, "Financial Report of Trustee," for this purpose. A final accounting will be required when the trusteeship is terminated for any reason.

75. Payments:

a. Active duty pay and allowances and/or retired pay due mentally incompetent members will be paid by the Retired Pay Division, AFAFC, to the designated trustee, guardian, committee or other legally designated person authorized to receive such pay on behalf of the mentally incompetent member. The Retired Pay Division, AFAFC, is not authorized to designate a trustee, as outlined in paragraph 73 on behalf of the mentally incompetent member who is residing outside the United States. In such a case, payment will be made only to a legal guardian or other representative appointed by a court of competent jurisdiction.

b. The trustee, or other legally designated representative authorized to receive retired pay on behalf of a mentally incompetent member must submit an AFAFC Form 540-76, "Report

of Existence," each month certifying that the member is alive that month. Retired pay checks will be released at the end of each month, therefore the person receiving the check for the member must send in an AFAFC Form 540-76, "Report of Existence," as soon as he receives each check. For instance, the check for January will be mailed 31 January, but if an AFAFC Form 540-76, "Report of Existence,' is not received by the end of February, the check for February will not be released until an AFAFC Form 540-76, "Report of Existence," is received.

76. Determination of Competency:

a. An Air Force member who has been determined to be mentally incompetent by a medical board appointed under the Act of 21 June 1950, c342, Section 2, as amended (31 USC 352), will be considered competent to handle his own affairs only after further proceedings by such a board and determination by the board that the member is competent.

b. Members who have been declared incompetent by a civil court must be declared competent by a civil court.

c. After the Retired Pay Division, AFAFC, has received a copy of the findings of a medical board or a copy of court order, as appropriate, declaring the member to be legally competent to handle his own affairs, retired pay may be issued directly to the member at his designated address, and the AFAFC Form 540-76, "Report of Existence," will no longer be required.

AFP 211-1-12

77. General. The Retired Serviceman's Family Protection Plan, formerly known as "USCOA" (Uniformed Services Contingency Option Act of 1953), is covered in detail in AFP 211-1-9. For this reason, and because the plan is explained in detail to all personnel before their 18th year of service, only the highlights of the plan will be covered here.

78. Background and Purpose. Civilian retirement plans usually specify a retirement age in the neighborhood of 65, and earlier retirement for disability. The Armed Forces offer retirement income to their members with 20 to 30 years of active Federal service, regardless of their age, as well as to those who are retired earlier because of physical disability.

a. A member of the uniformed services retired from active duty receives retired pay as long as he lives. No part of his retirement pay (with the possible exception of arrears in pay) passes to his family when he dies. For this reason, the Department of Defense sponsored legislation in 1953 for a voluntary survivorship annuity plan under which members of the Armed Forces could provide income for their widows and eligible surviving children after their death in retirement. This legislation became the Uniformed Services Contingency Option Act of 1953 (USCOA), Public Law 83-239, later codified as Chapter 73, Title 10 USC. It was amended and renamed the Retired Serviceman's Family Protection Plan by Public Law 87-381, 4 October 1961.

b. In essence, the Retired Serviceman's Family Protection Plan makes it possible for a serviceman to earmark a percentage of his retired pay as payment for a survivorship annuity. This annuity would be paid to his widow or to his eligible children, or to both when he dies in retirement. The amount of the payments and to whom paid depends upon the option or options elected by him.

79. Eligible Personnel. Members of the Army, Navy, Air Force, Marine Corps and Coast Guard-as well as the commissioned corps of both the Coast and Geodetic Survey and the Public Health Service-may participate in the survivorship annuity plan. Members of the active and inactive lists of the reserve components of the Armed Forces are also eligible.

80. When Election To Participate Can Be Made. Most members of the uniformed services who retire have 20 or more years of service and the plan is geared primarily to their needs. Since the family protection plan must operate on a sound actuarial basis and must be selfsupporting, participation must be equal and fair to all. Election to participate may be made:

a. Prior to completion of 18 years' service for pay purposes; or

b. At any time after 18 years, provided the election is made at least three years before the first day for which the member will be entitled to receive retired pay. When election is made under this provision and the member is retired for any reason before the lapse of the three years time requirement, his election is not in effect and he is not a participant in the program.

c. You may change or revoke an election at any time. However, if you become entitled to retired pay within 3 years thereafter, such change or revocation shall have no effect. After you are in receipt of, or entitled to receive retirement pay you may not change or revoke your election.

81. Options Available. You may elect to have annuity payments made to eligible survivors in an amount of one-eighth, one-quarter, or onehalf of your remaining retired pay after the cost of the annuity is deducted. Three survivor annuity options offered under the plan

are: