SURVIVOR ANNUITIES.

SEC. 205. SURVIVOR ANNUITIES.Section 774 is amended— (1) in subsection (b), by striking “5 years” each place it appears and inserting “18 months”; (2) in subsection (c), by amending paragraphs (2) and (3) to read as follows: 102 STAT. 1601 “(2) by a spouse and a dependent child, the surviving spouse shall receive an immediate annuity computed under subsection (d) of this section and each dependent child shall receive an immediate annuity equal to the smaller of— “(A) 10 percent of the average annual pay computed under subsection (d)(1) of this section; or “(B) 20 percent of the average annual pay computed under subsection (d)(1) of this section, divided by the number of dependent children; or “(3) only by a dependent child, each dependent child shall receive an immediate annuity equal to the smaller of— “(A) the annuity a surviving spouse would be entitled to receive under clause (2) of this subsection, divided by the number of dependent children; “(B) 20 percent of the average annual pay computed under subsection (d)(1) of this section; or “(C) 40 percent of the average annual pay computed under subsection (d)(1) of this section, divided by the number of dependent children.”; (3) in subsection (d)(1), by striking “1.25” and inserting “1.5”; and (4) in subsection (e), by amending the first sentence to read as follows: “A surviving spouse’s annuity may not be more than 50 percent nor less than 25 percent of the average annual pay computed under subsection (d)(1) of this section.”.