[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR48.403]



[Page 315]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 48_RETIRED SERVICEMAN'S FAMILY PROTECTION PLAN--Table of Contents

 

                   Subpart D_Reduction of Retired Pay

 

Sec.  48.403  Payment of nonwithheld reduction of retired pay.



    (a) A member of a uniformed service who is entitled to retired pay 

and has made an election shall, during any period in which he is not 

receiving retired pay (including periods of active duty), deposit the 

amount which would have been withheld from his retired pay had he been 

receiving that pay.

    (b) Such deposit will be payable to Treasurer of the United States 

and shall be forwarded monthly to the disbursing office which would 

normally pay the member his retired pay.

    (c) The disbursing office will in all cases inform the member of the 

amount to be deposited and when such deposits are to be made.

    (d) In the event deposits are not made within 30 days of the due 

date, the disbursing office will inform the member concerned that he is 

delinquent from such due date and thereafter his designated 

beneficiaries will not be eligible for the annuity provided under the 

Plan until the arrears have been paid. The notification of delinquency 

will advise the member that 15 additional days have been granted to him 

in which to remit his deposit, and that if the arrears are not deposited 

within that period, the member will be charged interest to include the 

first day of delinquency. In no case will the expiration date of the 15 

days exceed a date later than 45 days from the date the deposit was due. 

The interest will be computed monthly and the rate will be that used in 

computing the cost tables in effect on the date of the member's 

retirement. If such member later becomes in receipt of retired pay, any 

arrears with compound interest will be withheld.