110 STAT. 2572 PUBLIC LAW 104-201—SEPT. 23, 1996 under subsection (h)(1) in the base amount applicable to that annuity to the time of the death of the member or former member, and increases in such annuity under subsection (g)(1), had been computed as provided in paragraph (2) of section 1401a(b) of this title (rather than under psiragraph (3) of that section). "§ 1452. Reduction in retired pay "(a) SPOUSE AND FORMER SPOUSE ANNUITIES. — "(1) REQUIRED REDUCTION IN RETIRED PAY.— Except as provided in subsection (b), the retired pay of a participeint in the Flan who is providing spouse coverage (as described in paragraph (5)) shall be reduced as follows: "(A) STANDARD ANNUITY. — I f the annuity coverage being providing is a standard annuity, the reduction shall be as follows: "(i) DISABILITY AND NONREGULAR SERVICE RE- TIREES. —In the case of a person who is entitled to retired pay under chapter 61 or chapter 1223 of this title, the reduction shall be in whichever of the alternative reduction amounts is more favorable to that person. "(ii) MEMBERS AS OF ENACTMENT OF FLAT-RATE REDUCTION.—In the case of a person who first became a member of a uniformed service before March 1, 1990, the reduction shall be in whichever of the alternative reduction amounts is more favorable to that person. "(iii) NEW ENTRANTS AFTER ENACTMENT OF FLAT- RATE REDUCTION.—In the case of a person who first becomes a member of a uniformed service on or after March 1, 1990, and who is entitled to retired pay under a provision of law other than chapter 61 or chapter 1223 of this title, the reduction shall be in an amount equal to 6^2 percent of the base amount. "(iv) ALTERNATIVE REDUCTION AMOUNTS.—For purposes of clauses (i) and (ii), the alternative reduction amounts are the following: "(I) FLAT-RATE REDUCTION.—An amount equal to 6V2 percent of the base amount. " (II) AMOUNT UNDER PRE-FLAT -RATE REDUC- TION.— An amount equal to 2^2 percent of the first $337 (as adjusted after November 1, 1989, under paragraph (4)) of the base amount plus 10 percent of the remainder of the base amount. " (B) RESERVE-COMPONENT ANNUITY.—I f the annuity coverage being provided is a reserve-component annuity, the reduction shall be in whichever of the following amounts is more favorable to that person: "(i) FLAT-RATE REDUCTION.— An amount equal to 6V2 percent of the base amount plus an amount determined in accordance with regulations prescribed by the Secretary of Defense as a premium for the additional coverage provided through reserve-component annuity coverage under the Plan. "(ii) AMOUNT UNDER PRE-FLAT-RATE REDUCTION.— An amount equal to 2V2 percent of the first $337 (as adjusted after November 1, 1989, under paragraph (4)) of the base amount plus 10 percent of the remain-
�
