38 U.S.C. § 3222 — Contributions; matching fund

Page 710 TITLE 38—VETERANS’ BENEFITS § 3222 elects to enroll in the program, such person must participate for at least 12 consecutive months before disenrolling or suspending par- ticipation. (b) The requirement for 12 consecutive months of participation required by subsection (a) of this section shall not apply when (1) the partici- pant suspends participation or disenrolls from the program because of personal hardship as de- fined in regulations issued jointly by the Sec- retary and the Secretary of Defense, or (2) the participant is discharged or released from active duty. (c) A participant shall be permitted to suspend participation or disenroll from the program at the end of any 12-consecutive-month period of participation. If participation is suspended, the participant shall be eligible to make additional contributions to the program under such terms and conditions as shall be prescribed by regula- tions issued jointly by the Secretary and the Secretary of Defense. (d) If a participant disenrolls from the pro- gram, such participant forfeits any entitlement to benefits under the program except as pro- vided in subsection (e) of this section. A partici- pant who disenrolls from the program is eligible for a refund of such participant’s contributions as provided in section 3223 of this title. (e) A participant who has disenrolled may be permitted to reenroll in the program under such conditions as shall be prescribed jointly by the Secretary and the Secretary of Defense. (f) An individual who serves in the Selected Reserve may not receive credit for such service under both the program established by this chapter and the program established by chapter 106 of title 10 but shall elect (in such form and manner as the Secretary of Veterans Affairs may prescribe) the program to which such serv- ice is to be credited. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2394, § 1621; amended Pub. L. 99–576, title III, § 309(a)(3), Oct. 28, 1986, 100 Stat. 3270; Pub. L. 101–237, title IV, §§ 410, 423(b)(1)(A), (4)(A), (6), Dec. 18, 1989, 103 Stat. 2084, 2092, 2093; renum- bered § 3221 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 1621 of this title as this section. Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3223’’ for ‘‘1623’’. 1989—Subsec. (b)(1). Pub. L. 101–237, § 423(b)(1)(A), (4)(A), substituted ‘‘Secretary’’ for ‘‘Administrator’’ after ‘‘jointly by the’’ and struck out ‘‘(hereinafter in this chapter referred to as the ‘Secretary’)’’ after ‘‘Sec- retary of Defense’’. Subsecs. (c), (e). Pub. L. 101–237, § 423(b)(1)(A), (4)(A), substituted ‘‘Secretary’’ for ‘‘Administrator’’ after ‘‘jointly by the’’ and inserted ‘‘of Defense’’ after ‘‘Sec- retary’’ at end. Subsec. (f). Pub. L. 101–237, § 410, added subsec. (f). 1986—Subsec. (a). Pub. L. 99–576 inserted ‘‘and before July 1, 1985,’’ and ‘‘before July 1, 1985’’ in first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. ENROLLMENT IN PROGRAM BEFORE APRIL 1, 1987 For provisions for continued eligibility for enroll- ment in the program established by this chapter until Apr. 1, 1987, of individuals on active duty in the Armed Forces who were eligible therefor on June 30, 1985, and requiring notice of such continued eligibility to af- fected individuals, see section 309(c), (d) of Pub. L. 99–576, set out as a note under section 3201 of this title. SUSPENSION OF RIGHT TO ENROLL IN POST-VIETNAM ERA PROGRAM Pub. L. 98–525, title VII, § 704, Oct. 19, 1984, 98 Stat. 2564, which provided that no individual on active duty in the Armed Forces could initially enroll in the edu- cational assistance program provided for in this chap- ter during the period beginning on July 1, 1985, and end- ing on June 30, 1988, was repealed by Pub. L. 99–576, title III, § 309(b), Oct. 28, 1986, 100 Stat. 3270. NEW ENROLLMENTS IN EDUCATIONAL ASSISTANCE PRO- GRAM AFTER DECEMBER 31, 1981, PRESIDENTIAL REC- OMMENDATION TO CONGRESS Pub. L. 94–502, title IV, § 408, Oct. 15, 1976, 90 Stat. 2397, provided that: ‘‘(a)(1) No individual on active duty in the Armed Forces may initially enroll in the educational assist- ance program provided for in chapter 32 of title 38, United States Code (as added by section 404 of this Act) after December 31, 1981, unless— ‘‘(A) before June 1, 1981, the President submits to both Houses of Congress a written recommendation that such program continue to be open for new en- rollments; and ‘‘(B) before the close of the 60-day period after the day on which the President submits to Congress the recommendation described in subparagraph (A), nei- ther the House of Representatives nor the Senate adopts, by an affirmative vote of a majority of those present and voting in that House, a resolution which in substance disapproves such recommendation. ‘‘(2) For purposes of computing the 60-day period re- ferred to in paragraph (1)(B), there shall be excluded— ‘‘(A) the days on which either House is not in ses- sion because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die, and ‘‘(B) any Saturday and Sunday, not excluded under the preceding subparagraph, when either House is not in session. The recommendation referred to in paragraph (1)(A) shall be delivered to both Houses of Congress on the same day and shall be delivered to the Clerk of the House of Representatives if the House is not in session and to the Secretary of the Senate if the Senate is not in session. ‘‘(b) If new enrollments after December 31, 1981, in the educational assistance program provided for in such chapter 32 are authorized after the application of the provisions of subsection (a), then effective January 1, 1982, section 1622(b) [now 3222(b)] of title 38, United States Code, is amended by striking out ‘Veterans’ Ad- ministration’ and inserting in lieu thereof ‘Department of Defense’.’’ § 3222. Contributions; matching fund (a) Except as provided in subsections (c) and (d) of this section, each person electing to par- ticipate in the program shall agree to have a monthly deduction made from such person’s military pay. Such monthly deduction shall be in any amount not less than $25 nor more than $100 except that the amount must be divisible by 5. Any such amount contributed by the partici- pant or contributed by the Secretary of Defense pursuant to subsection (c) of this section shall be deposited in a deposit fund account entitled the ‘‘Post-Vietnam Era Veterans Education Ac- Page 711 TITLE 38—VETERANS’ BENEFITS § 3222 count’’ (hereinafter in this chapter referred to as the ‘‘fund’’) to be established in the Treasury of the United States. Contributions made by the participant shall be limited to a maximum of $2,700. (b) Except as otherwise provided in this chap- ter, each monthly contribution made by a par- ticipant under subsection (a) shall entitle the participant to matching funds from the Depart- ment of Defense at the rate of $2 for each $1 con- tributed by the participant. (c) The Secretary of Defense is authorized to contribute to the fund of any participant such contributions as the Secretary of Defense deems necessary or appropriate to encourage persons to enter or remain in the Armed Forces, includ- ing contributions in lieu of, or to reduce the amount of, monthly deductions under sub- section (a) of this section. The Secretary of De- fense is authorized to issue such rules and regu- lations as the Secretary of Defense deems nec- essary or appropriate to implement the provi- sions of this subsection. (d) Subject to the maximum contribution pre- scribed by subsection (a) of this section, a par- ticipant shall be permitted, while serving on ac- tive duty, to make a lump-sum contribution to the fund. A lump-sum contribution to the fund by a participant shall be in addition to or in lieu of monthly deductions made from such partici- pant’s military pay and shall be considered, for the purposes of paragraph (2) of section 3231(a) of this title, to have been made by monthly deduc- tions from such participant’s military pay in the amount of $100 per month or in such lesser amount as may be specified by such participant pursuant to regulations issued jointly by the Secretary of Defense and the Secretary. (e) Any amount transferred to the Secretary from the Secretary of a military department under an interagency agreement for the admin- istration by the Department of Veterans Affairs of an educational assistance program estab- lished by the Secretary of Defense under chapter 107 of title 10 may be deposited into and dis- bursed from the fund for the purposes of such program. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2395, § 1622; amended Pub. L. 94–502, title IV, § 408(b), Oct. 15, 1976, 90 Stat. 2398; Pub. L. 96–466, title IV, § 406, Oct. 17, 1980, 94 Stat. 2202; Pub. L. 97–306, title II, §§ 209, 210, Oct. 14, 1982, 96 Stat. 1436; Pub. L. 98–160, title VII, § 702(6), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 101–237, title IV, § 423(b)(1), (4)(A), (B), (D), Dec. 18, 1989, 103 Stat. 2092; renumbered § 3222 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 1622 of this title as this section. Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3231(a)’’ for ‘‘1631(a)’’. 1989—Subsec. (a). Pub. L. 101–237, § 423(b)(4)(A), in- serted ‘‘of Defense’’ after ‘‘Secretary’’. Subsec. (c). Pub. L. 101–237, § 423(b)(4)(D), inserted ‘‘of Defense’’ after ‘‘Secretary’’ wherever appearing. Subsec. (d). Pub. L. 101–237, § 423(b)(1)(A), (4)(A), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ at end and inserted ‘‘of Defense’’ after ‘‘jointly by the Secretary’’. Subsec. (e). Pub. L. 101–237, § 423(b)(1), (4)(B), sub- stituted ‘‘Secretary’’ and ‘‘Department of Veterans Af- fairs’’ for ‘‘Administrator’’ and ‘‘Veterans’ Administra- tion’’, respectively, and inserted ‘‘of Defense’’ after ‘‘es- tablished by the Secretary’’. 1983—Subsec. (d). Pub. L. 98–160 inserted ‘‘of this title’’ after ‘‘section 1631(a)’’. 1982—Subsec. (d). Pub. L. 97–306, § 210, substituted ‘‘$100’’ for ‘‘$75’’. Subsec. (e). Pub. L. 97–306, § 209, added subsec. (e). 1980—Subsec. (a). Pub. L. 96–466, § 406(a), substituted ‘‘Except as provided in subsections (c) and (d) of this section, each’’ for ‘‘Each’’, ‘‘$25’’ for ‘‘$50’’, and ‘‘$100’’ for ‘‘$75’’. Subsec. (c). Pub. L. 96–466, § 406(b), inserted ‘‘, including contributions in lieu of, or to reduce the amount of, monthly deductions under subsection (a) of this section’’ after ‘‘Armed Forces’’. Subsec. (d). Pub. L. 96–466, § 406(c), added subsec. (d). 1976—Subsec. (b). Pub. L. 94–502 substituted ‘‘Depart- ment of Defense’’ for ‘‘Veterans’ Administration’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–466 effective Oct. 1, 1980, see section 802(d)(2) of Pub. L. 96–466, set out as a note under section 3224 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–502 effective Jan. 1, 1982, because new enrollments after Dec. 31, 1981, in the edu- cational assistance program provided by this chapter, were authorized after application of provisions of sec- tion 408(a) of Pub. L. 94–502, see section 408(b) of Pub. L. 94–502, set out as a note under section 3221 of this title. EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. REFUNDS FOR CERTAIN SERVICE ACADEMY GRADUATES Pub. L. 101–366, title II, § 207, Aug. 15, 1990, 104 Stat. 442, as amended by Pub. L. 102–83, § 5(c)(2), Aug. 6, 1991, 105 Stat. 406, directed Secretary of Veterans Affairs to refund, on receipt before Jan. 1, 1992, of an application from an individual, not later than 60 days after receiv- ing such application, the amount, if any, of the individ- ual’s unused contributions to the VEAP Account; if the individual has received educational assistance under this chapter, to pay to the individual (out of funds ap- propriated to the readjustment benefits account) a sum equal to the amount by which the amount of the edu- cational assistance that the individual would have re- ceived under chapter 34 of this title for the pursuit of such program exceeds the amount of the educational assistance that the individual did receive under this chapter for the pursuit of such program; or if the indi- vidual has not received educational assistance under this chapter, to pay to the individual (out of funds ap- propriated to the Department of Veterans Affairs Read- justment Benefits account) a sum equal to the amount of educational assistance that the individual would have received under chapter 34 of this title for the pur- suit of a program of education if the individual had been entitled to assistance under such program during the period ending on Dec. 31, 1989; and to refund to the Secretary of Defense the unused contributions by such Secretary to the VEAP Account on behalf of such indi- vidual. EDUCATIONAL ASSISTANCE PILOT PROGRAM; PAYMENT OF MONTHLY CONTRIBUTION BY SECRETARY; MANNER, SCOPE, ETC., OF PAYMENTS Manner, scope, etc., of payments by Secretary in lieu of payments of monthly contributions by persons par- Page 712 TITLE 38—VETERANS’ BENEFITS § 3223 ticipating in educational assistance program, see sec- tion 903 of Pub. L. 96–342, set out as a note under sec- tion 2141 of Title 10, Armed Forces. MATCHING FUNDS FROM DEPARTMENT OF DEFENSE AFTER JANUARY 1, 1982, IF NEW ENROLLMENTS ARE AUTHORIZED AFTER DECEMBER 31, 1981 For provisions of section 408(b) of Pub. L. 94–502 di- recting that ‘‘Department of Defense’’ be substituted for ‘‘Veterans’ Administration’’ in subsec. (b) of this section, effective Jan. 1, 1982, if new enrollments after Dec. 31, 1981, in the educational assistance program provided by this chapter are authorized after applica- tion of section 408(a) of Pub. L. 94–502, see section 408 of Pub. L. 94–502, set out as a note under section 3221 of this title. § 3223. Refunds of contributions upon disenrollment (a) Contributions made to the program by a participant may be refunded only after the par- ticipant has disenrolled from the program or as provided in section 3224 of this title. (b) If a participant disenrolls from the pro- gram prior to discharge or release from active duty, such participant’s contributions will be re- funded on the date of the participant’s discharge or release from active duty or within 60 days of receipt of notice by the Secretary of the partici- pant’s discharge or disenrollment, except that refunds may be made earlier in instances of hardship or other good reason as prescribed in regulations issued jointly by the Secretary and the Secretary of Defense. (c) If a participant disenrolls from the pro- gram after discharge or release from active duty, the participant’s contributions shall be re- funded within 60 days of receipt of an applica- tion for a refund from the participant. (d) In the event the participant (1) dies while on active duty, (2) dies after discharge or release from active duty, or (3) disenrolls or is disenrolled from the program without having utilized any entitlement, the participant may have accrued under the program, or, in the event the participant utilizes part of such partici- pant’s entitlement and disenrolls or is disenrolled from the program, the amount con- tributed by the Secretary of Defense under the authority of section 3222(c) of this title remain- ing in the fund shall be refunded to such Sec- retary. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2395, § 1623; amended Pub. L. 98–160, title VII, § 702(7), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 101–237, title IV, § 423(b)(1)(A), (4)(A), (7), Dec. 18, 1989, 103 Stat. 2092, 2093; renumbered § 3223 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 1623 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3224’’ for ‘‘1624’’. Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3222(c)’’ for ‘‘1622(c)’’. 1989—Subsec. (b). Pub. L. 101–237, § 423(b)(1)(A), (4)(A), substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing and inserted ‘‘of Defense’’ after ‘‘Secretary’’ at end. Subsec. (d). Pub. L. 101–237, § 423(b)(7), inserted ‘‘of Defense’’ after first reference to ‘‘Secretary’’ and sub- stituted ‘‘such’’ for ‘‘the’’ before second reference to ‘‘Secretary’’. 1983—Subsec. (a). Pub. L. 98–160 inserted ‘‘of this title’’ after ‘‘section 1624’’. Subsec. (d). Pub. L. 98–160 inserted ‘‘of this title’’ after ‘‘section 1622(c)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. § 3224. Death of participant In the event of a participant’s death, the amount of such participant’s unused contribu- tions to the fund shall be paid to the living per- son or persons first listed below: (1) The beneficiary or beneficiaries des- ignated by such participant under such par- ticipant’s Servicemembers’ Group Life Insur- ance policy. (2) The surviving spouse of the participant. (3) The surviving child or children of the participant, in equal shares. (4) The surviving parent or parents of the participant, in equal shares. If there is no such person living, such amount shall be paid to such participant’s estate. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2395, § 1624; amended Pub. L. 96–466, title IV, § 402, Oct. 17, 1980, 94 Stat. 2201; renumbered § 3224, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104–275, title IV, § 405(c)(2), Oct. 9, 1996, 110 Stat. 3340.) Editorial Notes AMENDMENTS 1996—Par. (1). Pub. L. 104–275 substituted ‘‘Servicemembers’ Group’’ for ‘‘Servicemen’s Group’’. 1991—Pub. L. 102–83 renumbered section 1624 of this title as this section. 1980—Pub. L. 96–466 expanded provisions to require payment of a participant’s unused contributions to the fund to the surviving spouse, the surviving child or children, or to the surviving parent or parents before payment of such amount to the participant’s estate. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–466, title VIII, § 802(d)(2), Oct. 17, 1980, 94 Stat. 2218, provided that: ‘‘The amendments made by sections 402 through 406 [amending this section and sec- tions 1622, 1631, and 1641 [now 3222, 3231, and 3241] of this title] shall become effective on October 1, 1980.’’ EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. § 3225. Discharge or release under conditions which would bar the use of benefits If a participant in the program is discharged or released from active duty under dishonorable conditions, such participant is automatically disenrolled and any contributions made by such participant shall be refunded to such participant