PUBLIC LAW 104-201—SEPT. 23, 1996 110 STAT. 2573 der 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. "(2) ADDITIONAL REDUCTION FOR CHILD COVERAGE. — If there Regulations, is a dependent child as well as a spouse or former spouse, the amount prescribed under paragraph (1) shall be increased by an amount prescribed under regulations of the Secretary of Defense. " (3) No REDUCTION WHEN NO BENEFICIARY.—The reduction in retired pay prescribed by paragraph (1) shall not be applicable during any month in which there is no eligible spouse or former spouse beneficiary. " (4) PERIODIC ADJUSTMENTS.— "(A) ADJUSTMENTS FOR INCREASES IN RATES OF BASIC PAY.— Whenever there is an increase in the rates of basic pay of members of the uniformed services effective on or after October 1, 1985, the amounts under paragraph (1) with respect to which the percentage factor of 2 Viz is applied shall be increased by the overall percentage of such increase in the rates of basic pay. The increase under the preceding sentence shall apply only with respect to persons whose retired pay is computed based on the rates of basic pay in effect on or Eifter the date of such increase in rates of basic pay. "(B) ADJUSTMENTS FOR RETIRED PAY COLAS.—In addition to the increase under subparagraph (A), the amounts under paragraph (1) with respect to which the percentage factor of 2y2 is applied shall be further increased at the same time and by the same percentage as an increase in retired pay under section 1401a of this title effective on or after October 1, 1985. Such increase under the preceding sentence shall apply only with respect to a person who initially participates in the Plan on a date which is after both the effective date of such increase under section 1401a and the effective date of the rates of basic pay upon which that person's retired pay is computed. " (5) SPOUSE COVERAGE DESCRIBED. — For the purposes of paragraph (1), a participant in the Plan who is providing spouse coverage is a participant who— "(A) has (i) a spouse or former spouse, or (ii) a spouse or former spouse and a dependent child; and "(B) has not elected to provide an annuity to a person designated by him under section 1448(b)(1) of this title or, having made such an election, has changed his election in favor of his spouse under section 1450(f) of this title. "(b) CHILD-ONLY ANNUITIES. — "(1) REQUIRED REDUCTION IN RETIRED PAY.— The retired pay of a participant in the Plan who is providing child-only coverage (as described in paragraph (4)) shall be reduced by an amount prescribed under regulations by the Secretary of Defense. "(2) No REDUCTION WHEN NO CHILD.— There shall be no reduction in retired pay under paragraph (1) for any month during which the participant has no eligible dependent child.
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