SEP PREMIUMS FOR RESERVE-COMPONENT CHILD-ONLY COVERAGE.

SEC. 637. SEP PREMIUMS FOR RESERVE-COMPONENT CHILD-ONLY COVERAGE. (a) Determination of Premiums.— Subsection (b) of section 1452 of title 10, United States Code, is amended to read as follows: “(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. “(3) Special rule for certain rcsbp participants.— In the case of a participant in the Plan who is participating in the Plan under an election under section 1448(a)(2)(B) of this title and who provided child-only coverage during a period before the participant becomes entitled to receive retired pay, the retired pay of the participant shall be reduced by an amount prescribed under regulations by the Secretary of Defense to reflect the coverage provided under the Plan during the period before the participant became entitled to receive retired pay. A reduction under this paragraph is in addition to any reduction under paragraph (1) and is made without regard to whether there is an eligible dependent child during a month for which the reduction is made. “(4) Child-only coverage defined.— For the purposes of this subsection, a participant in the Plan who is providing child-only coverage is a participant who has a dependent child and who— “(A) does not have an eligible spouse or former spouse; or “(B) has a spouse or former spouse but has elected to provide an annuity for dependent children only.”. (b) Effective Date.— (1) Except as provided in paragraph (2), the amendment made by subsection (a) applies to any election for child-only coverage under a reserve-component annuity under the Survivor Benefit Plan, whether made before, on, or after the date of the enactment of this Act. (2) Paragraph (1) does not apply in a case of an election referred to in that paragraph that was made before the date of the enactment of this Act if the participant was informed, in writing, before the date of the enactment or this Act that no reduction in the partici-108 STAT. 2791pant’s retired pay for child-only coverage would be made during a period when there was no eligible dependent child.