Military Surviving Spouses Equity Act - Repeals, as of the later of October 1, 2007, or the date of enactment of this Act, certain provisions which require the offset of amounts paid in dependency and indemnity compensation from Survivor Benefit Plan (SBP) annuities for the surviving spouses of former military personnel who are entitled to military pay or who would be entitled to retired pay except for being under 60 years of age. Provides for the recoupment of certain amounts previously paid to SBP recipients in the form of a retired pay refund. Authorizes the Secretary of Defense to waive the recoupment requirement in certain cases. Repeals the optional authority of (and instead requires) the Secretary of the military department concerned to pay an annuity to a member's dependent children when there is no eligible surviving spouse. Directs the Secretary to restore annuity eligibility to a surviving spouse who earlier agreed to transfer such eligibility to a surviving child or children of a member.
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