
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-419 Section 313(b)]
[Document affected by Public Law 107-14 Section 4(d)]
[CITE: 38USC1969]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
          SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE
 
Sec. 1969. Deductions; payment; investment; expenses

    (a)(1) During any period in which a member, on active duty or active 
duty for training under a call or order to such duty that does not 
specify a period of less than thirty-one days, is insured under 
Servicemembers' Group Life Insurance, there shall be deducted each month 
from the member's basic or other pay until separation or release from 
such duty an amount determined by the Secretary (which shall be the same 
for all such members) as the share of the cost attributable to insuring 
such member under such policy, less any costs traceable to the extra 
hazard of such duty in the uniformed service.
    (2)(A) During any month in which a member is assigned to the Ready 
Reserve of a uniformed service under conditions which meet the 
qualifications of section 1965(5)(B) of this title, and is insured under 
a policy of insurance purchased by the Secretary, under section 1966 of 
this title, there shall be contributed from the appropriation made for 
active duty pay of the uniformed service concerned an amount determined 
by the Secretary (which shall be the same for all such members) as the 
share of the cost attributable to insuring such member under this 
policy, less any costs traceable to the extra hazards of such duty in 
the uniformed services. Any amounts so contributed on behalf of any 
individual shall be collected by the Secretary concerned from such 
individual (by deduction from pay or otherwise) and shall be credited to 
the appropriation from which such contribution was made.
    (B) If an individual who is required pursuant to subparagraph (A) to 
make a direct remittance of costs to the Secretary concerned fails to 
make the required remittance within 60 days of the date on which such 
remittance is due, such individual's insurance with respect to which 
such remittance is required shall be terminated by the Secretary 
concerned. Such termination shall be made by written notice to the 
individual's official address and shall be effective 60 days after the 
date of such notice. Such termination of insurance may be vacated if, 
before the effective date of termination, the individual remits all 
amounts past due for such insurance and demonstrates to the satisfaction 
of the Secretary concerned that the failure to make timely remittances 
was justifiable.
    (3) During any fiscal year, or portion thereof, that a member is on 
active duty or active duty for training under a call or order to such 
duty that specifies a period of less than thirty-one days, or is 
authorized or required to perform inactive duty training scheduled in 
advance by competent authority, and is insured under Servicemembers' 
Group Life Insurance, the Secretary concerned shall collect from the 
member (by deduction from pay or otherwise) an amount determined by the 
Secretary (which shall be the same for all such members) as the share of 
the cost attributable to insuring such member under such policy, less 
any costs traceable to the extra hazard of such duty in the uniformed 
service.
    (4) Any amount not deducted from the basic or other pay of a member 
insured under Servicemembers' Group Life Insurance, or collected from 
the member by the Secretary concerned, if not otherwise paid, shall be 
deducted from the proceeds of any insurance thereafter payable. The 
initial monthly amount under paragraph (1) or (2) hereof, or fiscal year 
amount under paragraph (3) hereof, determined by the Secretary to be 
charged under this section for Servicemembers' Group Life Insurance may 
be continued from year to year, except that the Secretary may 
redetermine such monthly or fiscal year amounts from time to time in 
accordance with experience. No refunds will be made to any member of any 
amount properly deducted from the member's basic or other pay, or 
collected from the member by the Secretary concerned, to cover the 
insurance granted under Servicemembers' Group Life Insurance.
    (b) For each month for which any member is so insured, there shall 
be contributed from the appropriation made for active duty pay of the 
uniformed service concerned an amount determined by the Secretary and 
certified to the Secretary concerned to be the cost of Servicemembers' 
Group Life Insurance which is traceable to the extra hazard of duty in 
the uniformed services. Effective January 1, 1970, such cost shall be 
determined by the Secretary on the basis of the excess mortality 
incurred by members and former members of the uniformed services insured 
under Servicemembers' Group Life Insurance above what their mortality 
would have been under peacetime conditions as such mortality is 
determined by the Secretary using such methods and data as the Secretary 
shall determine to be reasonable and practicable. The Secretary is 
authorized to make such adjustments regarding contributions from pay 
appropriations as may be indicated from actual experience.
    (c) An amount equal to the first amount due on Servicemembers' Group 
Life Insurance may be advanced from current appropriations for active-
service pay to any such member, which amount shall constitute a lien 
upon any service or other pay accruing to the person from whom such 
advance was made and shall be collected therefrom if not otherwise paid. 
No disbursing or certifying officer shall be responsible for any loss 
incurred by reason of such advance.
    (d)(1) The sums withheld from the basic or other pay of members, or 
collected from them by the Secretary concerned, under subsection (a) of 
this section, and the sums contributed from appropriations under 
subsection (b) of this section, together with the income derived from 
any dividends or premium rate adjustments received from insurers shall 
be deposited to the credit of a revolving fund established in the 
Treasury of the United States. All premium payments and extra hazard 
costs on Servicemembers' Group Life Insurance and the administrative 
cost to the Department of insurance issued under this subchapter shall 
be paid from the revolving fund.
    (2) The Secretary is authorized to set aside out of the revolving 
fund such amounts as may be required to meet the administrative costs to 
the Department of insurance issued under this subchapter and all current 
premium payments and extra hazard costs on any insurance policy or 
policies purchased under section 1966 of this title. The Secretary of 
the Treasury is authorized to invest in and to sell and retire special 
interest-bearing obligations of the United States for the account of the 
revolving fund. Such obligations issued for this purpose shall have 
maturities fixed with due regard for the needs of the fund and shall 
bear interest at a rate equal to the average market yield (computed by 
the Secretary of the Treasury on the basis of market quotations as of 
the end of the calendar month next preceding the date of issue) on all 
marketable interest-bearing obligations of the United States then 
forming a part of the public debt which are not due or callable until 
after the expiration of four years from the end of such calendar month; 
except that where such average market yield is not a multiple of one-
eighth of 1 per centum, the rate of interest of such obligation shall be 
the multiple of one-eighth of 1 per centum nearest such market yield.
    (3) Notwithstanding the provisions of section 1982 of this title, 
the Secretary shall, from time to time, determine the administrative 
costs to the Department which in the Secretary's judgment are properly 
allocable to insurance issued under this subchapter and shall transfer 
such cost from the revolving fund to the appropriation ``General 
Operating Expenses, Department of Veterans Affairs''.
    (e) The Secretary of Defense shall prescribe regulations for the 
administration of the functions of the Secretaries of the military 
departments under this section. Such regulations shall prescribe such 
procedures as the Secretary of Defense, after consultation with the 
Secretary, may consider necessary to ensure that such functions are 
carried out in a timely and complete manner and in accordance with the 
provisions of this section, including specifically the provisions of 
subsection (a)(2) of this section relating to contributions from 
appropriations made for active duty pay.
    (f)(1) No tax, fee, or other monetary payment may be imposed or 
collected by any State, or by any political subdivision or other 
governmental authority of a State, on or with respect to any premium 
paid under an insurance policy purchased under this subchapter.
    (2) Paragraph (1) of this subsection shall not be construed to 
exempt any company issuing a policy of insurance under this subchapter 
from the imposition, payment, or collection of a tax, fee, or other 
monetary payment on the net income or profit accruing to or realized by 
that company from business conducted under this subchapter, if that tax, 
fee, or payment is applicable to a broad range of business activity.

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881, 
Sec. 769; amended Pub. L. 91-291, Sec. 4, June 25, 1970, 84 Stat. 329; 
Pub. L. 93-289, Secs. 6, 10(2), May 24, 1974, 88 Stat. 168, 172; Pub. L. 
97-66, title IV, Sec. 402, Oct. 17, 1981, 95 Stat. 1031; Pub. L. 99-576, 
title VII, Sec. 701(39), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 100-322, 
title III, Sec. 332(a), May 20, 1988, 102 Stat. 537; renumbered 
Sec. 1969 and amended Pub. L. 102-83, Secs. 4(a)(3), (4), (b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 103-337, 
div. A, title VI, Sec. 651(d), Oct. 5, 1994, 108 Stat. 2793; Pub. L. 
103-446, title XII, Sec. 1201(e)(8), (i)(3), Nov. 2, 1994, 108 Stat. 
4685, 4688; Pub. L. 104-106, div. A, title VI, Sec. 647(a), Feb. 10, 
1996, 110 Stat. 370; Pub. L. 104-275, title IV, Secs. 402(d), 
405(b)(1)(C), Oct. 9, 1996, 110 Stat. 3337, 3339.)


                               Amendments

    1996--Subsec. (a)(1). Pub. L. 104-275, Sec. 405(b)(1)(C), 
substituted ``Servicemembers' Group'' for ``Servicemen's Group''.
    Subsec. (a)(2). Pub. L. 104-106 designated existing provisions as 
subpar. (A) and added subpar. (B).
    Subsec. (a)(2)(A). Pub. L. 104-275, Sec. 402(d)(1), struck out ``is 
assigned to the Reserve (other than the Retired Reserve) and meets the 
qualifications of section 1965(5)(C) of this title, or is assigned to 
the Retired Reserve and meets the qualifications of section 1965(5)(D) 
of this title,'' after ``qualifications of section 1965(5)(B) of this 
title,''.
    Subsec. (a)(3), (4). Pub. L. 104-275, Sec. 405(b)(1)(C), substituted 
``Servicemembers' Group'' for ``Servicemen's Group'' wherever appearing.
    Subsecs. (b) to (d)(1). Pub. L. 104-275, Sec. 405(b)(1)(C), 
substituted ``Servicemembers' Group'' for ``Servicemen's Group'' 
wherever appearing.
    Subsecs. (e) to (g). Pub. L. 104-275, Sec. 402(d)(2), (3), 
redesignated subsecs. (f) and (g) as (e) and (f), respectively, and 
struck out former subsec. (e) which related to premiums for Servicemen's 
Group Life Insurance for members assigned to the Retired Reserve of a 
uniformed service.
    1994--Subsec. (a)(2). Pub. L. 103-337, Sec. 651(d)(1), substituted 
``is assigned to the Reserve'' for ``or is assigned to the Reserve'' and 
inserted ``or is assigned to the Retired Reserve and meets the 
qualifications of section 1965(5)(D) of this title,'' after ``section 
1965(5)(C) of this title,''.
    Subsec. (d)(3). Pub. L. 103-446, Sec. 1201(i)(3), substituted 
``Department of Veterans Affairs'' for ``Department''.
    Subsec. (e). Pub. L. 103-446, Sec. 1201(e)(8), substituted 
``subsections (a) and (c) of section 1971'' for ``sections 1971(a) and 
(c)'' and ``subsections (d) and (e) of section 1971'' for ``sections 
1971(d) and (e)''.
    Pub. L. 103-337, Sec. 651(d)(2), substituted ``subparagraph (C) or 
(D) of section 1965(5)'' for ``section 1965(5)(C)''.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 769 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``1965(5)(B)'' for ``765(5)(B)'', ``1965(5)(C)'' for ``765(5)(C)'', and 
``1966'' for ``766'' in par. (2).
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    Subsec. (d)(1). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted 
``Department'' for ``Veterans' Administration''.
    Subsec. (d)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1966'' 
for ``766''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator''.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    Subsec. (d)(3). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1982'' 
for ``782''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' and ``Secretary's'' for ``Administrator's''.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration'' in two places.
    Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``1965(5)(C)'' for ``765(5)(C)'', ``1971(a)'' for ``771(a)'', 
``1966(b)'' for ``766(b)'', and ``1971(d)'' for ``771(d)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    Subsec. (f). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    1988--Subsec. (g). Pub. L. 100-322 added subsec. (g).
    1986--Subsec. (a)(1). Pub. L. 99-576, Sec. 701(39)(A), substituted 
``the member's'' for ``his''.
    Subsec. (a)(3). Pub. L. 99-576, Sec. 701(39)(B), substituted ``the 
member'' for ``him''.
    Subsec. (a)(4). Pub. L. 99-576, Sec. 701(39)(C), substituted ``the 
member'' for ``him'' in two places and ``the member's'' for ``his''.
    Subsec. (b). Pub. L. 99-576, Sec. 701(39)(D), substituted ``the 
Administrator'' for ``he'' before ``shall determine''.
    Subsec. (d)(3). Pub. L. 99-576, Sec. 701(39)(E), substituted ``the 
Administrator's'' for ``his''.
    Subsec. (e). Pub. L. 99-576, Sec. 701(39)(F), substituted ``the 
Administrator'' for ``he'' before ``may determine''.
    1981--Subsec. (f). Pub. L. 97-66 added subsec. (f).
    1974--Subsec. (a)(1). Pub. L. 93-289, Sec. 6(1), substituted ``is 
insured under Servicemen's Group Life Insurance'' for ``is insured under 
a policy of insurance purchased by the Administrator, under section 766 
of this title''.
    Subsec. (a)(2). Pub. L. 93-289, Sec. 6(2), added par. (2). Former 
par. (2) redesignated (3).
    Subsec. (a)(3). Pub. L. 93-289, Sec. 6(1), (2), redesignated former 
par. (2) as (3), and substituted ``is insured under Servicemen's Group 
Life Insurance'' for ``is insured under a policy of insurance purchased 
by the Administrator, under section 766 of this title.'' Former par. (3) 
redesignated (4).
    Subsec. (a)(4). Pub. L. 93-289, Sec. 6(2), (3), redesignated former 
par. (3) as (4), and substituted ``paragraph (1) or (2) hereof, or 
fiscal year amount under paragraph (3) hereof'', for ``subsection (1) 
hereof, or fiscal year amount under subsection (2) hereof'', and 
``Servicemen's Group Life Insurance'' for ``this subchapter'' in two 
places, and for ``insurance under this subchapter''.
    Subsec. (b). Pub. L. 93-289, Sec. 6(4), substituted ``Servicemen's 
Group Life Insurance'' for ``such insurance'' in first sentence, and 
``Servicemen's Group Life Insurance'' for ``this subchapter'' in second 
sentence.
    Subsec. (c). Pub. L. 93-289, Sec. 6(5), substituted ``Servicemen's 
Group Life Insurance'' for ``any such insurance''.
    Subsec. (d)(1). Pub. L. 93-289, Sec. 6(6), substituted 
``Servicemen's Group Life Insurance'' for ``any insurance policy or 
policies purchased under section 766 of this title''.
    Subsec. (d)(3). Pub. L. 93-289, Sec. 10(2), capitalized ``Operating 
Expenses''.
    Subsec. (e). Pub. L. 93-289, Sec. 6(7), added subsec. (e).
    1970--Subsec. (a). Pub. L. 91-291, Sec. 4(1), separated provisions 
covering deduction of the cost of insurance from the pay of members into 
provisions covering such deduction in the case of persons on active duty 
or active duty for training under a call or order to such duty that does 
not specify a period of not less than thirty-one days and provisions 
covering such deduction in the case of persons on active duty or active 
duty for training under a call or order to such duty specifying a period 
of less than thirty-one days or persons authorized or required to 
perform inactive duty training scheduled in advance by competent 
authority and inserted provision for the collection of sums from 
individuals by the Secretary concerned.
    Subsec. (b). Pub. L. 91-291, Sec. 4(1), substituted the mortality 
which members and former members of the uniform services concerned would 
have been under peacetime conditions as determined by the Administrator 
for the mortality of the male civilian population of the United States 
of the same age as the median age of members of the uniformed services 
as shown by the records of the uniformed services, the primary insurer 
or insurers, and the Department of Health, Education, and Welfare as the 
standard against which the excess mortality suffered by members of the 
uniformed services would be measured to determine the extent to which 
the cost of insurance was traceable to the extra hazard of active duty 
in the uniformed services.
    Subsec. (d)(1). Pub. L. 91-291, Sec. 4(2), inserted reference to 
collection of sums by Secretary concerned.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-106 effective Apr. 1, 1996, see section 
647(c) of Pub. L. 104-106, set out as a note under section 1968 of this 
title.


                    Effective Date of 1988 Amendment

    Section 332(b) of Pub. L. 100-322 provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect with 
respect to premiums paid for periods beginning after June 30, 1988.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-66 effective Oct. 17, 1981, see section 
701(b)(1) of Pub. L. 97-66, set out as a note under section 1114 of this 
title.


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-291 effective June 25, 1970, see section 
14(a) of Pub. L. 91-291, set out as a note under section 1317 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1968, 1970, 1971, 1980 of 
this title.
