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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-572
_______________________________________________________________________


 
                 VETERANS' BENEFITS AMENDMENTS OF 1996

_______________________________________________________________________


  May 10, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


   Mr. Stump, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3373]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3373) to amend title 38, United States Code, to 
update and make changes to the Servicemen's Group Life 
Insurance program and the Veterans' Group Life Insurance 
program, and make other improvements to life insurance programs 
administered by the Secretary of Veterans Affairs, to clarify 
the eligibility of certain minors for burial in national 
cemeteries, and to require that the offices for management, 
policy, and other functions associated with the educational 
assistance programs of the Education Service of the Department 
of Veterans Affairs be in the District of Columbia, having 
considered the same, reports favorably thereon, without 
amendment, and recommends that the bill do pass.

                              Introduction

    On January 4, 1996, the Chairman of the Veterans' Affairs 
Committee, the Honorable Bob Stump, along with the Ranking 
Member, the Honorable G.V. (Sonny) Montgomery, and the Chairman 
and Ranking Member of the Subcommittee on Compensation, 
Pension, Insurance and Memorial Affairs, the Honorable Terry 
Everett and the Honorable Lane Evans, introduced H.R. 2843, 
which would change the name of the Servicemen's Group Life 
Insurance program to Servicemembers' Group Life Insurance, 
authorize the termination of life insurance under that program 
when premiums are not paid, increase the maximum 
Servicemembers' Group Life Insurance coverage to $200,000 and 
provide for coverage under that program to be provided 
automatically at the maximum level unless the servicemember 
elects a lower level, and to make other improvements to life 
insurance programs administered by the Secretary of Veterans 
Affairs.

    On April 17, 1996, the Subcommittee on Compensation, 
Pension, Insurance and Memorial Affairs met, and by unanimous 
voice vote ordered H.R. 2843, as amended, reported to the full 
Committee.

    On January 4, 1996, the Chairman and Ranking Member of the 
Committee on Veterans' Affairs, the Honorable Bob Stump and the 
Honorable G.V. (Sonny) Montgomery, introduced H.R. 2850, which 
would define the term ``minor child'' to clarify the 
eligibility of veterans' children for burial in national 
cemeteries.

    On April 17, 1996, the Subcommittee on Compensation, 
Pension, Insurance and Memorial Affairs met and recommended 
H.R. 2850 to the full Committee.

    On March 6, 1996, the Veterans' Affairs Committee's Ranking 
Member, the Honorable G.V. (Sonny) Montgomery, and the Chairman 
of the Veterans' Affairs Committee, the Honorable Bob Stump, 
along with the Chairman and Ranking Member of the Subcommittee 
on Education, Training, Employment and Housing, the Honorable 
Steve Buyer and the Honorable Maxine Waters, introduced H.R. 
3036, to require that the offices for management, policy, and 
other functions associated with the educational assistance 
programs of the Education Service of the Department of Veterans 
Affairs be in the District of Columbia.

    On April 18, 1996, the Subcommittee on Education, Training, 
Employment and Housing met to receive testimony on the bill.

    On May 8, 1996, the Committee met and ordered H.R. 3373 
reported favorably to the House by unanimous voice vote. This 
bill combined provisions from H.R. 2843, H.R. 2850, and H.R. 
3036.

                      Summary of the Reported Bill

    H.R. 3373 contains two titles. Title I would:

    1) Merge the Retired Reserve Servicemembers' Group Life 
Insurance and Veterans' Group Life Insurance programs; extend 
Veterans' Group Life Insurance coverage to members of the Ready 
Reserve of a uniformed service.

    2) Provide for an individual, upon separation from the 
military, to choose to roll over to the Veterans' Group Life 
Insurance program or choose a commercial policy, upon written 
application; eliminate the five-year renewal period for 
Veterans' Group Life Insurance; provide that if a Veterans' 
Group Life Insurance-insured individual becomes insured by 
Servicemembers' Group Life Insurance but dies before the 
Veterans' Group Life Insurance has been terminated or 
converted, Veterans' Group Life Insurance will be payable only 
if the individual is insured for less than $200,000 under 
Servicemembers' Group Life Insurance, and then only in an 
amount which, when added to the amount of Servicemembers' Group 
Life Insurance, does not exceed $200,000.

    3) Require information to be provided members concerning 
automatic maximum coverage of $200,000 under Servicemen's Group 
Life Insurance.

    4) Rename the Servicemen's Group Life Insurance program to 
Servicemembers' Group Life Insurance.

    5) Specify that the Servicemembers' Group Life Insurance of 
any member of the Retired Reserve of a uniformed service in 
force on the date of the enactment of this Act shall be 
converted, effective 90 days after that date, to Veterans' 
Group Life Insurance.

    Title II would:

    1) Clarify the eligibility of certain minors for burial in 
national cemeteries, by defining the term ``minor child''.

    2) Require that the offices for management, policy, and 
other functions associated with the educational assistance 
programs of the Education Service of the Department of Veterans 
Affairs be in the District of Columbia.

                       Background and Discussion

                 TITLE I--VETERANS' INSURANCE PROGRAMS

    The Department of Veterans Affairs administers six life 
insurance programs and supervises the administration of two 
others for the benefit of service members, veterans, and their 
beneficiaries. At the end of 1995, the total amount of 
insurance under these programs was over $491 billion. The two 
programs supervised by the Department of Veterans Affairs but 
administered under a contractual agreement by the Prudential 
Insurance Company include the Servicemen's Group Life Insurance 
and the Veterans' Group Life Insurance.

    The Servicemen's Group Life Insurance program provides low 
cost group life insurance protection to persons on active duty 
in the military service, ready reservists, retired reservists, 
members of the Commissioned Corps of the National Oceanic and 
Atmospheric Administration and the Public Health Service, 
cadets and midshipmen of the four service academies, and 
members of the Reserve Officer Training Corps. At the end of 
1995, 2.7 million individuals were covered under this program.

    Veterans' Group Life Insurance is a post-separation 
insurance program which provides for the conversion of 
Servicemen's Group Life Insurance to a five-year renewable term 
policy. At the end of 1995, 349,256 enrollees had insurance 
coverage under the Veterans' Group Life Insurance program.

    Section 101. Merger of Retired Reserve Servicemembers' 
Group Life Insurance and Veterans' Group Life Insurance and 
extension of Veterans' Group Life Insurance to members of the 
Ready Reserve. This provision would benefit Retired Reservists 
by making available the lifetime coverage provided under the 
Veterans' Group Life Insurance program. Veterans' Group Life 
Insurance coverage would also be extended to members of the 
Ready Reserve of a uniformed service. Currently, when members 
of the Ready Reserve retire with 20 years of service or are 
transferred to the Retired Reserve under temporary special 
retirement authority, they may continue their Servicemen's 
Group Life Insurance (SGLI) coverage as Retired Reservists' 
SGLI until they receive their retired pay or reach age 61, 
whichever comes first. By discontinuing the Retired Reservists' 
SGLI program, the Retired Reservist would have lifetime 
coverage available under the Veterans' Group Life Insurance 
(VGLI) program.

    Section 102. Conversion to commercial life insurance policy 
and elimination of the Veterans' Group Life Insurance program 
five-year renewal period; provides that if a Veteran's Group 
Life Insurance program-insured individual becomes insured by 
Servicemembers' Group Life Insurance, but dies before the 
Veterans' Group Life Insurance has been terminated or 
converted, Veterans' Group Life Insurance will be payable only 
if the individual is insured for less than $200,000 under the 
Servicemembers' Group Life Insurance, and then only in an 
amount which, when added to the amount of Servicemembers' Group 
Life Insurance, does not exceed $200,000. Currently, 
servicemembers may not convert their SGLI insurance to a 
commercial policy when they separate from service. 
Servicemembers who choose to enroll in VGLI upon separation 
must maintain their VGLI policy for a minimum of five years 
before converting to a commercial life insurance policy. 
Although term policies provide low-cost coverage for younger 
insureds, term insurance becomes very expensive for older 
insureds. A permanent life insurance policy is an alternative 
to the ever-increasing cost of term coverage. Since the cost of 
such a policy increases as the insured's age increases, 
requiring insureds to delay conversion until five years after 
leaving active duty increases the cost for those who would like 
to convert sooner. This provision would give insureds an option 
to convert their SGLI or VGLI policies at any time, lowering 
their cost of conversion.

    Section 103. Information to be provided members concerning 
automatic maximum coverage of $200,000 under Servicemen's Group 
Life Insurance. The following general information would be 
provided to individuals by the appropriate Secretary:

        (a) Lthe purpose and role of life insurance in 
        financial planning;
        (b) Lthe difference between term life insurance and 
        whole life insurance;
        (c) Lthe availability of commercial life insurance;
        (d) Lthe relationship between Servicemen's Group Life 
        Insurance and Veterans' Group Life Insurance.

    This provision would help educate the servicemember about 
financial planning and ensure that informed decisions are being 
made by the servicemember.

    Section 104. Renaming of Servicemen's Group Life Insurance 
program. The program's name would be changed to Servicemembers' 
Group Life Insurance to make it gender neutral.

    Section 105. Effective date. The Servicemembers' Group Life 
Insurance of any member of the Retired Reserve of a uniformed 
service in force on the date of the enactment of this Act shall 
be converted, effective 90 days after that date, to Veterans' 
Group Life Insurance.

                        TITLE II--OTHER MATTERS

    Section 201. Eligibility of certain minors for burial in 
national cemeteries. In 1973, Congress enacted the National 
Cemeteries Act, which transferred the responsibility for 
operating national cemeteries from the Department of the Army 
to the Department of Veterans Affairs. Eligibility for burial 
continued to be defined under title 24 provisions, as Congress 
indicated an intent that similar eligibility rules should apply 
under VA's management of the cemetery system. The Department of 
Army defines ``minor child'' as children under age 21, as does 
the Department of Veterans Affairs regulation at 38 C.F.R., 
section 1.620(g). However, under title 38, United States Code, 
``child'' includes children up to age 23, providing they are 
pursuing a course of instruction at an approved educational 
institution. The National Cemetery System encounters situations 
which result in confusion as a result of the differences in the 
title 38 definition of a ``child'' and the regulatory 
definition of ``minor child'' for purposes of burial 
eligibility. Therefore, this bill would amend the statute 
governing burial eligibility to incorporate the regulatory 
definition of ``minor child''.

    Section 202. Programs, projects, and activities of the 
Education Service, Department of Veterans Affairs. The 
Department of Veterans Affairs has proposed to move the VA's 
Education Service to St. Louis, Missouri, as part of the 
Veterans Benefits Administration's efforts to restructure.

    The VA asserts that the move of the Education Service from 
Washington, DC, would not hinder the quality of the program, 
just as the location of the Department's Insurance Program in 
Philadelphia has not had an adverse effect on that program. VA 
believes that the collocation of the policy activity of the 
program at its main production site saves time, promotes 
efficiency and fosters a constructive partnership between line 
and staff elements. It is VA's belief that education services 
will benefit from this new structure, but VA has not elaborated 
as to how either the Education Service or veteran beneficiaries 
will receive improved service.

    The Committee feels that moving VA's Education Service to 
St. Louis, MO, would adversely affect the administration of the 
Montgomery GI Bill (MGIB) and other VA education programs. 
There is a unique process for the successful administration of 
the MGIB. VA, DoD, and the military service staffs, veteran 
service organizations and education industry professional 
associations must work closely with the Congressional 
authorizing committees. A move to St. Louis would make 
communication and cooperation far more difficult.

    The Education Service staff frequently interacts with VA's 
Central Office staff. Without direct contact, it would be much 
harder for that staff to work with VA General Counsel, computer 
support services, budget staff, contractors, and others. 
Additionally, by allowing the Education Service to be moved to 
St. Louis, the Committee believes that the service would be 
underrepresented when policy decisions are made and priorities 
established.

    The Montgomery GI Bill and other education and training 
programs administered by the Education Service are as important 
to our Nation's veterans as the other benefits provided by VA--
moving the Education Service would send the message that 
education programs are not valued.

    H.R. 3373 does not affect full time employee equivalency 
and would ensure that educational assistance programs continue 
to be high priority programs in the VA. It enjoys strong 
bipartisan support.

    The Committee believes that it is vital to veterans, and to 
the Secretary of Veterans Affairs, to keep the policy and 
management team for a dynamic program such as the education 
service as close as possible to the Secretary and the 
Congressional Committee charged with oversight. The comparison 
of Education Services to the VA insurance program is not an apt 
one. The Committee views the Education Service as having an 
ever-changing program, certainly in need of more policy-making 
discussions and oversight than the VA Insurance Program.

                      Section-By-Section Analysis

    Section 1 would be cited as the ``Veterans' Benefits 
Amendments of 1996''.

    Section 101(a) would amend section 1965(5) by redefining 
``member'' for purposes of veterans' insurance programs.

    Section 101(b) would amend section 1967 by redefining 
``persons insured'' for purposes of veterans' insurance 
programs.

    Section 101(c) would amend section 1968 by redefining 
``duration and termination of coverage'' for purposes of 
veterans' insurance programs.

    Section 101(d) would amend section 1969 by redefining 
``premiums'' requirements for purposes of veterans' insurance 
programs.

    Section 102(a) would amend section 1968(b), as amended by 
section 101(c)(2),by providing that an individual insured under 
Servicemembers' Group Life Insurance may be automatically 
converted to Veterans' Group Life Insurance, and by providing 
for an individual to convert from Servicemembers' Group Life 
Insurance to an individual policy of insurance as described in 
section 1977(e).

    Section 102(b) would amend section 1977(a) by providing for 
any person insured under Veterans' Group Life Insurance who 
becomes insured under Servicemembers' Group Life Insurance but 
dies before terminating or converting such person's Veterans' 
Group Insurance, that Veterans' Group Life Insurance shall be 
payable only if such person is insured for less than $200,000 
under Servicemembers' Group Life Insurance, and then only in an 
amount which, when added to the amount of Servicemembers' Group 
Life Insurance payable, does not exceed $200,000. It would also 
provide for an insured under Veterans' Group Life Insurance the 
right to convert to an individual policy at any time, and it 
would provide for the termination of Veterans' Group Life 
Insurance on the day before the date on which the individual 
policy becomes effective.

    Section 103 would amend section 1967, as amended by section 
101(b) of this title, providing that members with the maximum 
insurance amount of $200,000 be furnished with general 
information concerning life insurance, such as (1) the purpose 
and role of life insurance in financial planning; (2) the 
difference between term life insurance and whole life 
insurance; (3) the availability of commercial life insurance; 
(4) the relationship between Servicemember's Group Life 
Insurance and Veterans' Group Life Insurance.

    Section 104(a) would redesignate the insurance program 
under subchapter III of chapter 19 of title 38, United States 
Code, as the Servicemember's Group Life Insurance program.

    Section 104(b) would amend chapter 19 to make conforming 
changes regarding the redesignation of the program's name.

    Section 105 would provide that the Servicemembers' Group 
Life Insurance of any member of the Retired Reserve of a 
uniformed service in force on the date of the enactment of this 
Act shall be converted, effective 90 days after that date, to 
Veterans' Group Life Insurance.

    Section 201(a) would amend section 2402(5) of title 38, 
United States Code, to define the term ``minor child'' and 
clarify the eligibility of veterans' children for burial in 
national cemeteries.

    Section 201(b) would amend section 101(4)(A) of this title 
to make conforming changes.

    Section 202(a) would amend chapter 77 by inserting section 
7705 to require that the management, policy, and the operations 
functions associated with the educational assistance programs 
of the VA's Education Service be located in the District of 
Columbia.

    Section 202(b) would amend the table of sections at the 
beginning of chapter 77 referencing section 7705.

                           Oversight Findings

    No oversight findings have been submitted to the Committee 
by the Committee on Government Reform and Oversight.

               Congressional Budget Office Cost Estimate

    The following letter was received from the Congressional 
Budget Office concerning the cost of the reported bill:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 9, 1996.
Hon. Bob Stump,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has reviewed H.R. 3373, the Veterans' Benefits Amendments of 
1996, as ordered reported by the House Committee on Veterans' 
Affairs on May 8, 1996. H.R. 3373 would not significantly 
affect the federal budget. The provisions on insurance programs 
and burial benefits would, however, affect direct spending and 
would be subject to pay-as-you-go procedures under section 252 
of the Balanced Budget and Emergency Deficit Control Act of 
1985. This estimate supersedes CBO's estimate dated May 8, 
1996, and reflects changes made by the House Committee on 
Veterans' Affairs to H.R. 3373.

    The bill would affect veterans' insurance programs by:

        --offering coverage to retired reservists through the 
        Veterans' Group Life Insurance (VGLI) program rather 
        than through SGLI,

        --making VGLI available to members of the Ready 
        Reserve, and

        --allowing individuals insured under either SGLI or 
        VGLI to convert their policies to individual life 
        insurance policies with a commercial company.

    Although SGLI and VGLI are programs of the Department of 
Veterans Affairs (VA), they are administered by the Prudential 
Insurance Company, which pays administrative costs and would 
automatically adjust insurance premiums to cover any change in 
benefit payments.

    The bill also would clarify which children of veterans are 
eligible for burial in national cemeteries by defining minor as 
someone under 21 years old or under 23 years old for someone in 
school. Because this provision would codify current policies of 
the VA, it would have no budgetary impact.

    Finally, the bill would require VA to keep the office that 
administers its educational assistance programs in the District 
of Columbia rather than relocate it to St. Louis as currently 
planned. This change would not significantly affect 
discretionary spending of the VA.

    H.R. 3373 contains no intergovernmental or private sector 
mandates as defined in Public Law 104-4 and would impose no 
direct costs on state, local, or tribal governments.

    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mary Helen 
Petrus, who can be reached at 226-2840.

            Sincerely,
                                           June E. O'Neill,
                                                          Director.

                     Inflationary Impact Statement

    The enactment of the reported bill would have no 
inflationary impact.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                      TITLE 38, UNITED STATES CODE

          * * * * * * *

                       PART I--GENERAL PROVISIONS

          * * * * * * *

                           CHAPTER 1--GENERAL

          * * * * * * *

Sec. 101. Definitions

  For the purposes of this title--
  (1)  * * *
          * * * * * * *
  (4)(A) The term ``child'' means (except for purposes of 
[chapter 19] chapters 19 and 24 of this title and section 
8502(b) of this title) a person who is unmarried and--
          (i)  * * *
          * * * * * * *

                       PART II--GENERAL BENEFITS

          * * * * * * *

CHAPTER 13--DEPENDENCY AND INDEMNITY COMPENSATION FOR SERVICE-CONNECTED 
                                 DEATHS

          * * * * * * *

          SUBCHAPTER II--DEPENDENCY AND INDEMNITY COMPENSATION

          * * * * * * *

Sec. 1315. Dependency and indemnity compensation to parents

  (a)  * * *
          * * * * * * *
  (f)(1) In determining income under this section, all payments 
of any kind or from any source shall be included, except--
          (A)  * * *
          * * * * * * *
          (F) payments under policies of [servicemen's] 
        servicemembers group life insurance, United States 
        Government life insurance or national service life 
        insurance, and payments of servicemen's indemnity;
          * * * * * * *

                         CHAPTER 19--INSURANCE

          * * * * * * *

              subchapter i--national service life insurance

Sec.
1901.  Definitions.
1902.  Premium rates and policy values.
1903.  Amount of insurance.
     * * * * * * *

           [subchapter iii--servicemen's group life insurance]

     subchapter iii--servicemembers' group life insurance (formerly 
                   servicemen's group life insurance)

1965.  Definitions.
1966.  Eligible insurance companies.
1967.  Persons insured; amount.
     * * * * * * *
[1974.  Advisory Council on Servicemen's Group Life Insurance.]
1974.  Advisory Council on Servicemembers' Group Life Insurance 
          (formerly Servicemen's Group Life Insurance)
          * * * * * * *

          [SUBCHAPTER III--SERVICEMEN'S GROUP LIFE INSURANCE]

    SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE (FORMERLY 
                   SERVICEMEN'S GROUP LIFE INSURANCE)

Sec. 1965. Definitions

  For the purpose of this subchapter--
          (1)  * * *
          * * * * * * *
          (5) The term ``member'' means--
                  (A)  * * *
                  (B) a person who volunteers for assignment to 
                the Ready Reserve of a uniformed service and is 
                assigned to a unit or position in which such 
                person may be required to perform active duty, 
                or active duty for training, and each year will 
                be scheduled to perform at least twelve periods 
                of inactive duty training that is creditable 
                for retirement purposes under chapter 1223 of 
                title 10 (or under chapter 67 of that title as 
                in effect before the effective date of the 
                Reserve Officer Personnel Management Act); and
                  [(C) a person assigned to, or who upon 
                application would be eligible for assignment 
                to, the Retired Reserve of a uniformed service 
                who has not received the first increment of 
                retirement pay or has not yet reached sixty-one 
                years of age and has completed at least twenty 
                years of satisfactory service creditable for 
                retirement purposes under chapter 1223 of title 
                10 (or under chapter 67 of that title as in 
                effect before the effective date of the Reserve 
                Officer Personnel Management Act);
                  [(D) a person transferred to the Retired 
                Reserve of a uniformed service under the 
                temporary special retirement authority provided 
                in section 1331a of title 10 who has not 
                received the first increment of retirement pay 
                or has not reached sixty-one years of age; and
                  [(E)] (C) a member, cadet, or midshipman of 
                the Reserve Officers Training Corps while 
                attending field training or practice cruises.
          * * * * * * *

Sec. 1967. Persons insured; amount

  (a) Any policy of insurance purchased by the Secretary under 
section 1966 of this title shall automatically insure against 
death--
          (1) any member of a uniformed service on active duty, 
        active duty for training, or inactive duty training 
        scheduled in advance by competent authority; and
          (2) any member of the Ready Reserve of a uniformed 
        service who meets the qualifications set forth in 
        section 1965(5)(B) of this title;
          [(3) any member assigned to, or who upon application 
        would be eligible for assignment to, the Retired 
        Reserve of a uniformed service who meets the 
        qualifications set forth in section 1965(5)(C) of this 
        title; and
          [(4) any member assigned to the Retired Reserve of a 
        uniform service who meets the qualifications set forth 
        in section 1965(5)(D) of this title;]

in the amount of $200,000, unless such member elects in writing 
(A) not to be insured under this subchapter, or (B) to be 
insured in an amount less than $200,000 that is evenly 
divisible by $10,000. The insurance shall be effective the 
first day of active duty or active duty for training, or the 
beginning of a period of inactive duty training scheduled in 
advance by competent authority, or the first day a member of 
the Ready Reserve meets the qualifications set forth in section 
1965(5)(B) of this title, [or the first day a member of the 
Reserves, whether or not assigned to the Retired Reserve of a 
uniformed service, meets the qualifications of section 
1965(5)(C) of this title, or the first day a member of the 
Reserves meets the qualifications of section 1965(5)(D) of this 
title,] or the date certified by the Secretary to the Secretary 
concerned as the date [Servicemen's Group] Servicemembers' 
Group Life Insurance under this subchapter for the class or 
group concerned takes effect, whichever is the later date.
          * * * * * * *
  (c) If any member elects not to be insured under this 
subchapter or to be insured in any amount less than $200,000, 
such member may thereafter be insured under this subchapter in 
the amount of $200,000 or any lesser amount evenly divisible by 
$10,000 upon written application, proof of good health, and 
compliance with such other terms and conditions as may be 
prescribed by the Secretary. Any former member insured under 
Veterans' Group Life Insurance who again becomes eligible for 
[Servicemen's Group] Servicemembers' Group Life Insurance and 
declines such coverage solely for the purpose of maintaining 
such member's Veterans' Group Life Insurance in effect shall 
upon termination of coverage under Veterans' Group Life 
Insurance be automatically insured under [Servicemen's Group] 
Servicemembers' Group Life Insurance, if otherwise eligible 
therefor.
  [(d) Notwithstanding any other provision of this section, any 
member who on May 1, 1991 is a member of the Retired Reserve of 
a uniformed service (or who upon application would be eligible 
for assignment to the Retired Reserve of a uniformed service) 
may obtain increased insurance coverage in the amount of 
$100,000 or any lesser amount evenly divisible by $10,000 if--
          [(1) the member--
                  [(A) is insured under this subchapter on May 
                1, 1991; or
                  [(B) within one year after May 1, 1991, 
                reinstates insurance under this subchapter that 
                had lapsed for nonpayment of premiums; and
          [(2) the member submits a written application for the 
        increased coverage to the office established pursuant 
        to section 1966(b) of this title within one year after 
        May 1, 1991.]
  (d) Whenever a member has the opportunity to make an election 
under subsection (a) not to be insured under this subchapter, 
or to be insured under this subchapter in an amount less than 
the maximum amount of $200,000, and at such other times 
periodically thereafter as the Secretary concerned considers 
appropriate, the Secretary concerned shall furnish to the 
member general information concerning life insurance. Such 
information shall include--
          (1) the purpose and role of life insurance in 
        financial planning;
          (2) the difference between term life insurance and 
        whole life insurance;
          (3) the availability of commercial life insurance; 
        and
          (4) the relationship between Servicemembers' Group 
        Life Insurance and Veterans' Group Life Insurance.
  (e) The effective date and time for any change in benefits 
under the [Servicemen's Group] Servicemembers' Group Life 
Insurance Program shall be based on the date and time according 
to the time zone immediately west of the International Date 
Line.

Sec. 1968. Duration and termination of coverage; conversion

  (a) Each policy purchased under this subchapter shall contain 
a provision, in terms approved by the Secretary, to the effect 
that any insurance thereunder on any member of the uniformed 
services, unless discontinued or reduced upon the written 
request of the insured (or discontinued pursuant to section 
1969(a)(2)(B) of this title), shall continue in effect while 
the member is on active duty, active duty for training, or 
inactive duty training scheduled in advance by competent 
authority during the period thereof, or while the member meets 
the qualifications set forth in [subparagraph (B), (C), or (D) 
of section 1965(5)] section 1965(5)(B) of this title, and such 
insurance shall cease--
          (1) with respect to a member on active duty or active 
        duty for training under a call or order to duty that 
        does not specify a period of less than thirty-one 
        days--
                  (A) one hundred and twenty days after the 
                separation or release from active duty or 
                active duty for training, unless on the date of 
                such separation or release the member is 
                totally disabled, under criteria established by 
                the Secretary, in which event the insurance 
                shall cease one year after the date of 
                separation or release from such active duty or 
                active duty for training, or on the date the 
                insured ceases to be totally disabled, 
                whichever is the earlier date, but in no event 
                prior to the expiration of one hundred and 
                twenty days after such separation or release; 
                or
                  (B) at the end of the thirty-first day of a 
                continuous period of (i) absence without leave, 
                (ii) confinement by civil authorities under a 
                sentence adjudged by a civilian court, or (iii) 
                confinement by military authorities under a 
                courtmartial sentence involving total 
                forfeiture of pay and allowances. Any insurance 
                so terminated as the result of such an absence 
                or confinement, together with any beneficiary 
                designation in effect for such insurance at 
                such termination thereof, shall be 
                automatically revived as of the date the member 
                is restored to active duty with pay or to 
                active duty for training with pay[.];
          (2) with respect to a member on active duty or active 
        duty for training under a call or order to duty that 
        specifies a period of less than thirty-one days 
        insurance under this subchapter shall cease at 
        midnight, local time, on the last day of such duty, 
        unless on such date the insured is suffering from a 
        disability incurred or aggravated during such period 
        which, within one hundred and twenty days after such 
        date, (i) results in death, or (ii) renders the member 
        uninsurable at standard premium rates according to the 
        good health standards approved by the Secretary, in 
        which event the insurance shall continue in force to 
        death, or for one hundred and twenty days after such 
        date, whichever is the earlier date[.];
          (3) with respect to a member on inactive duty 
        training scheduled in advance by competent authority 
        insurance under this subchapter shall cease at the end 
        of such scheduled training period, unless at such time 
        the insured is suffering from a disability incurred, or 
        aggravated during such period which, within one hundred 
        and twenty days after the date of such training, (i) 
        results in death, or (ii) renders the member 
        uninsurable at standard premium rates according to the 
        good health standards approved by the Secretary in 
        which event the insurance shall continue in force to 
        death, or for one hundred and twenty days after the 
        date such training terminated, whichever is the earlier 
        date[.]; and
          (4) with respect to a member of the Ready Reserve of 
        a uniformed service who meets the qualifications set 
        forth in section 1965(5)(B) of this title, one hundred 
        and twenty days after separation or release [from such 
        assignment--
                  [(A) unless on] from such assignment, unless 
                on the date of such separation or release the 
                member is totally disabled, under criteria 
                established by the Secretary, in which event 
                the insurance shall cease one year after the 
                date of separation or release from such 
                assignment, or on the date the insured ceases 
                to be totally disabled, whichever is the 
                earlier date, but in no event prior to the 
                expiration of one hundred and twenty days after 
                separation or release from such assignment[;].
                  [(B) unless on the date of such separation or 
                release the member has completed at least 
                twenty years of satisfactory service creditable 
                for retirement purposes under chapter 1223 of 
                title 10 (or under chapter 67 of that title as 
                in effect before the effective date of the 
                Reserve Officer Personnel Management Act) and 
                would upon application be eligible for 
                assignment to or is assigned to the Retired 
                Reserve, in which event the insurance, unless 
                converted to an individual policy under terms 
                and conditions set forth in section 1977(e) of 
                this title, shall, upon timely payment of 
                premiums under terms prescribed by the 
                Secretary directly to the administrative office 
                established under section 1966(b) of this 
                title, continue in force until receipt of the 
                first increment of retirement pay by the member 
                or the member's sixty-first birthday, whichever 
                occurs earlier; or
                  [(C) unless on the date of such separation or 
                release the member is transferred to the 
                Retired Reserve of a uniformed service under 
                the temporary special retirement authority 
                provided in section 1331a of title 10, in which 
                event the insurance, unless converted to an 
                individual policy under terms and conditions 
                set forth in section 1977(e) of this title, 
                shall, upon timely payment of premiums under 
                terms prescribed by the Secretary directly to 
                the administrative office established under 
                section 1966(b) of this title, continue in 
                force until receipt of the first increment of 
                retirement pay by the member or the member's 
                sixty-first birthday, whichever occurs earlier.
          [(5) with respect to a member of the Retired Reserve 
        who meets the qualifications of section 1965(5)(C) of 
        this title, and who was assigned to the Retired Reserve 
        prior to the date insurance under the amendment made by 
        section 5(a) of the Veterans' Insurance Act of 1974 
        (Public Law 93-289, 88 Stat. 166) is placed in effect 
        for members of the Retired Reserve, at such time as the 
        member receives the first increment of retirement pay, 
        or the member's sixty-first birthday, whichever occurs 
        earlier, subject to the timely payment of the initial 
        and subsequent premiums, under terms prescribed by the 
        Secretary, directly to the administrative office 
        established under section 1966(b) of this title.
          [(6) with respect to a member of the Retired Reserve 
        who meets the qualifications of section 1965(5)(D) of 
        this title, at such time as the member receives the 
        first increment of retirement pay, or the member's 
        sixty-first birthday, whichever occurs earlier, subject 
        to the timely payment of the initial and subsequent 
        premiums, under terms prescribed by the Secretary, 
        directly to the administrative office established under 
        section 1966(b) of this title.]
  (b)(1) Each policy purchased under this subchapter shall 
contain a provision, in terms approved by the Secretary, that, 
except as hereinafter provided, [Servicemen's Group] 
Servicemembers' Group Life Insurance which is continued in 
force after expiration of the period of duty or travel under 
section 1967(b) or 1968(a) of this title, effective the day 
after the date such insurance [would cease, shall be 
automatically converted to Veterans' Group Life Insurance 
subject to (1) the timely payment of the initial premium under 
terms prescribed by the Secretary, and (2) the terms and 
conditions set forth in section 1977 of this title.] would 
cease--
          (A) shall be automatically converted to Veterans' 
        Group Life Insurance, subject to (i) the timely payment 
        of the initial premium under terms prescribed by the 
        Secretary, and (ii) the terms and conditions set forth 
        in section 1977 of this title; or
          (B) at the election of the member, shall be converted 
        to an individual policy of insurance as described in 
        section 1977(e) of this title upon written application 
        for conversion made to the participating company 
        selected by the member and payment of the required 
        premiums.
  (2) [Such automatic conversion] Automatic conversion to 
Veterans' Group Life Insurance under paragraph (1) shall be 
effective only in the case of an otherwise eligible member or 
former member who is separated or released from a period of 
active duty or active duty for training or inactive duty 
training on or after the date on which the Veterans' Group Life 
Insurance program (provided for under section 1977 of this 
title) becomes effective. [Servicemen's Group Life Insurance 
continued in force under section 1968(a)(4)(B) or (5) of this 
title shall not be converted to Veterans' Group Life Insurance. 
However, a member whose insurance could be continued in force 
under section 1968(a)(4)(B) of this title, but is not so 
continued, may, effective the day after the insurance otherwise 
would cease, convert such insurance to an individual policy 
under the terms and conditions set forth in section 1977(e) of 
this title.]

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 [Servicemen's Group] 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, 
[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,] 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.
          * * * * * * *
  (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 [Servicemen's Group] 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 [Servicemen's Group] 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 [Servicemen's 
Group] 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 [Servicemen's 
Group] 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 [Servicemen's Group] 
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 
[Servicemen's Group] 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 [Servicemen's 
Group] 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 [Servicemen's Group] Servicemembers' Group Life Insurance 
and the administrative cost to the Department of insurance 
issued under this subchapter shall be paid from the revolving 
fund.
          * * * * * * *
  [(e) The premiums for Servicemen's Group Life Insurance 
placed in effect or continued in force for a member assigned to 
the Retired Reserve of a uniformed service who meets the 
qualifications of subparagraph (C) or (D) of section 1965(5) of 
this title, shall be established under the criteria set forth 
in section 1971(a) and (c) of this title, except that the 
Secretary may provide for average premiums for such various age 
groupings as the Secretary may determine to be necessary 
according to sound actuarial principles, and shall include an 
amount necessary to cover the administrative cost of such 
insurance to the company or companies issuing or continuing 
such insurance. Such premiums shall be payable by the insureds 
thereunder as provided by the Secretary directly to the 
administrative office established for such insurance under 
section 1966(b) of this title. The provisions of subsections 
(d) and (e) of section 1971 of this title shall be applicable 
to Servicemen's Group Life Insurance continued in force or 
issued to a member assigned to the Retired Reserve of a 
uniformed service. However, a separate accounting may be 
required by the Secretary for insurance issued to or continued 
in force on the lives of members assigned to the Retired 
Reserve and for other insurance in force under this subchapter. 
In such accounting, the Secretary is authorized to allocate 
claims and other costs among such programs of insurance 
according to accepted actuarial principles.
  [(f)] (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.
  [(g)] (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.
          * * * * * * *

Sec. 1970. Beneficiaries; payment of insurance

  (a) Any amount of insurance under this subchapter in force on 
any member or former member on the date of the insured's death 
shall be paid, upon the establishment of a valid claim 
therefor, to the person or persons surviving at the date of the 
insured's death, in the following order of precedence:
  First, to the beneficiary or beneficiaries as the member or 
former member may have designated by a writing received prior 
to death (1) in the uniformed services if insured under 
[Servicemen's Group] Servicemembers' Group Life Insurance, or 
(2) in the administrative office established under section 
1966(b) of this title if separated or released from service, or 
if assigned to the Retired Reserve, and insured under 
[Servicemen's Group] Servicemembers' Group Life Insurance, or 
if insured under Veterans' Group Life Insurance;
  Second, if there be no such beneficiary, to the widow or 
widower of such member or former member;
  Third, if none of the above, to the child or children of such 
member or former member and descendants of deceased children by 
representation;
  Fourth, if none of the above, to the parents of such member 
or former member or the survivor of them;
  Fifth, if none of the above, to the duly appointed executor 
or administrator of the estate of such member or former member;
  Sixth, if none of the above, to other next of kin of such 
member or former member entitled under the laws of domicile of 
such member or former member at the time of the insured's 
death.
          * * * * * * *
  (f) Notwithstanding the provisions of any other law, payment 
of matured [Servicemen's Group] Servicemembers' Group Life 
Insurance or Veterans' Group Life Insurance benefits may be 
made directly to a minor, widow or widower on the member's own 
behalf, and payment in such case shall be a complete 
acquittance to the insurer.
  (g) Payments of benefits due or to become due under 
[Servicemen's Group] Servicemembers' Group Life Insurance or 
Veterans' Group Life Insurance made to, or on account of, a 
beneficiary shall be exempt from taxation, shall be exempt from 
the claims of creditors, and shall not be liable to attachment, 
levy, or seizure by or under any legal or equitable process 
whatever, either before or after receipt by the beneficiary. 
The preceding sentence shall not apply to (1) collection of 
amounts not deducted from the member's pay, or collected from 
the member by the Secretary concerned under section 1969(a) of 
this title, (2) levy under subchapter D of chapter 64 of the 
Internal Revenue Code of 1986 (26 U.S.C. 6331 et seq.) 
(relating to the seizure of property for collection of taxes), 
and (3) the taxation of any property purchased in part or 
wholly out of such payments.
          * * * * * * *

Sec. 1971. Basic tables of premiums; readjustment of rates

  (a)  * * *
  (b) The total premiums for [Servicemen's Group] 
Servicemembers' Group Life Insurance shall be the sum of the 
amounts computed according to the provisions of subsection (a) 
above and the estimated cost traceable to the extra hazard of 
active duty in the uniformed services as determined by the 
Secretary, subject to the provision that such estimated costs 
traceable to the extra hazard shall be retroactively readjusted 
annually in accordance with section 1969(b).
          * * * * * * *

Sec. 1973. Forfeiture

  Any person guilty of mutiny, treason, spying, or desertion, 
or who, because of conscientious objections, refuses to perform 
service in the Armed Forces of the United States or refuses to 
wear the uniform of such force, shall forfeit all rights to 
[Servicemen's Group] Servicemembers' Group Life Insurance under 
this subchapter. No such insurance shall be payable for death 
inflicted as a lawful punishment for crime or for military or 
naval offense, except when inflicted by an enemy of the United 
States.

[Sec. 1974. Advisory Council on Servicemen's Group Life Insurance]

Sec. 1974. Advisory Council on Servicemembers' Group Life Insurance 
                    (formerly Servicemen's Group Life Insurance)

  (a) There is an Advisory Council on [Servicemen's Group] 
Servicemembers' Group Life Insurance. The council consist of--
          (1)  * * *
          * * * * * * *

Sec. 1977. Veterans' Group Life Insurance

  (a)(1) Veterans' Group Life Insurance shall be issued in the 
amounts specified in section 1967(a) and (e) of this title. In 
the case of any individual, the amount of Veterans' Group Life 
Insurance may not exceed the amount of [Servicemen's Group] 
Servicemembers' Group Life Insurance coverage continued in 
force after the expiration of the period of duty or travel 
under section 1967(b) and (e) or 1968(a) of this title. No 
person may carry a combined amount of [Servicemen's Group] 
Servicemembers' Group Life Insurance and Veterans' Group Life 
Insurance in excess of $200,000 at any one time. [Any person 
insured under Veterans' Group Life Insurance who again becomes 
insured under Servicemen's Group Life Insurance may within 60 
days after becoming so insured convert any or all of such 
person's Veterans' Group Life Insurance to an individual policy 
of insurance under subsection (e). However, if such a person 
dies within the 60-day period and before converting such 
person's Veterans' Group Life Insurance, Veterans' Group Life 
Insurance will be payable only if such person is insured for 
less than $200,000 under Servicemen's Group Life Insurance, and 
then only in an amount which when added to the amount of 
Servicemen's Group Life Insurance payable shall not exceed 
$200,000.]
  (2) If any person insured under Veterans' Group Life 
Insurance again becomes insured under Servicemembers' Group 
Life Insurance but dies before terminating or converting such 
person's Veterans' Group Insurance, Veterans' Group Life 
Insurance shall be payable only if such person is insured for 
less than $200,000 under Servicemembers' Group Life Insurance, 
and then only in an amount which, when added to the amount of 
Servicemembers' Group Life Insurance payable, does not exceed 
$200,000.
          * * * * * * *
  (d) Any amount of Veterans' Group Life Insurance in force on 
any person on the date of such person's death shall be paid, 
upon the establishment of a valid claim therefor, pursuant to 
the provisions of section 1970 of this title. However, any 
designation of beneficiary or beneficiaries for [Servicemen's 
Group] Servicemembers' Group Life Insurance filed with a 
uniformed service until changed, shall be considered a 
designation of beneficiary or beneficiaries for Veterans' Group 
Life Insurance, but not for more than sixty days after the 
effective date of the insured's Veterans' Group Insurance, 
unless at the end of such sixty-day period, the insured is 
incompetent in which event such designation may continue in 
force until the disability is removed but not for more than 
five years after the effective date of the insured's Veterans' 
Group Life Insurance. Except as indicated above in incompetent 
cases, after such sixty-day period, any designation of 
beneficiary or beneficiaries for Veterans' Group Life Insurance 
to be effective must be by a writing signed by the insured and 
received by the administrative office established under section 
1966(b) of this title.
  (e) An insured under Veterans' Group Life Insurance shall 
have the right at any time to convert such insurance to an 
individual policy of life insurance upon written application 
for conversion made to the participating company the insured 
selects and payment of the required premiums. The individual 
policy will be issued without medical examination on a plan 
then currently written by such company which does not provide 
for the payment of any sum less than the face value thereof or 
for the payment of an additional amount as premiums in the 
event the insured performs active duty, active duty for 
training, or inactive duty training. [The individual policy 
will be effective the day after the insured's Veterans' Group 
Life Insurance terminates by expiration of the five-year term 
period, except in a case where the insured is eligible to 
convert at an earlier date by reason of again having become 
insured under Servicemen's Group Life Insurance, in which event 
the effective date of the individual policy may not be later 
than the sixty-first day after the insured again became so 
insured.] The Veterans' Group Life Insurance policy will 
terminate on the day before the date on which the individual 
policy becomes effective. Upon request to the administrative 
office established under section 1966(b) of this title, an 
insured under Veterans' Group Life Insurance shall be furnished 
a list of life insurance companies participating in the program 
established under this subchapter. In addition to the life 
insurance companies participating in the program established 
under this subchapter, the list furnished to an insured under 
this section shall include additional life insurance companies 
(not so participating) which meet qualifying criteria, terms, 
and conditions established by the Secretary and agree to sell 
insurance to former members in accordance with the provisions 
of this section.
          * * * * * * *
  (g) Any person whose [Servicemen's Group] Servicemembers' 
Group Life Insurance was continued in force after termination 
of duty or discharge from service under the law as in effect 
prior to the date on which the Veterans' Group Life Insurance 
program (provided for under section 1977 of this title) became 
effective, and whose coverage under [Servicemen's Group] 
Servicemembers' Group Life Insurance terminated less than four 
years prior to such date, shall be eligible within one year 
from the effective date of the Veterans' Group Life Insurance 
program to apply for and be granted Veterans' Group Life 
Insurance in an amount equal to the amount of the insured's 
[Servicemen's Group] Servicemembers' Group Life Insurance which 
was not converted to an individual policy under prior law. 
Veterans' Group Life Insurance issued under this subsection 
shall be issued for a term period equal to five years, less the 
time elapsing between the termination of the applicant's 
[Servicemen's Group] Servicemembers' Group Life Insurance and 
the effective date on which the Veterans' Group Life Insurance 
program became effective. Veterans' Group Life Insurance under 
this subsection shall only be issued upon application to the 
administrative office established under section 1966(b) of this 
title, payment of the required premium, and proof of good 
health satisfactory to that office, which proof shall be 
submitted at the applicant's own expense. Any person who cannot 
meet the good health requirements for insurance under this 
subsection solely because of a service-connected disability 
shall have such disability waived. For each month for which any 
eligible veteran, whose service-connected disabilities are 
waived, is insured under this subsection there shall be 
contributed to the insurer or insurers issuing the policy or 
policies from the appropriation ``Compensation and Pensions, 
Department of Veterans Affairs'' an amount necessary to cover 
the cost of the insurance in excess of the premiums established 
for eligible veterans, including the cost of the excess 
mortality attributable to such veteran's service-connected 
disabilities. The Secretary may establish, as the Secretary may 
determine to be necessary according to sound actuarial 
principles, a separate premium, age groupings for premium 
purposes, accounting, and reserves, for persons granted 
insurance under this subsection different from those 
established for other persons granted insurance under this 
section. Appropriations to carry out the purpose of this 
section are hereby authorized.
          * * * * * * *

             CHAPTER 24--NATIONAL CEMETERIES AND MEMORIALS

          * * * * * * *

Sec. 2402. Persons eligible for interment in national cemeteries

  Under such regulations as the Secretary may prescribe and 
subject to the provisions of section 6105 of this title, the 
remains of the following persons may be buried in any open 
national cemetery in the National Cemetery System:
          (1)  * * *
          * * * * * * *
          (5) The spouse, surviving spouse (which for purposes 
        of this chapter includes an unremarried surviving 
        spouse who had a subsequent remarriage which was 
        terminated by death or divorce), minor child, and, in 
        the discretion of the Secretary, unmarried adult child 
        of any of the persons listed in paragraphs (1) through 
        (4) and paragraph (7). For purposes of this paragraph, 
        a ``minor child'' is a child under 21 years of age, or 
        under 23 years of age if pursuing a program of 
        education at an educational institution, and those 
        terms have the meaning as defined in sections 3452 (b) 
        and (c) of this title.
          * * * * * * *

              PART III--READJUSTMENT AND RELATED BENEFITS

          * * * * * * *

     CHAPTER 30--ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM

          * * * * * * *

              SUBCHAPTER II--BASIC EDUCATIONAL ASSISTANCE

          * * * * * * *

Sec. 3017. Death benefit

  (a)(1)  * * *
  (2)(A) The payment referred to in paragraph (1) of this 
subsection shall be made to the person or persons first listed 
below who is surviving on the date of such individual's death:
          (i) The beneficiary or beneficiaries designated by 
        such individual under the individual's [Servicemen's] 
        Servicemembers' Group Life Insurance policy.
          * * * * * * *

          CHAPTER 32--POST-VIETNAM ERA EDUCATIONAL ASSISTANCE

          * * * * * * *

      SUBCHAPTER II--ELIGIBILITY; CONTRIBUTIONS; AND MATCHING FUND

          * * * * * * *

Sec. 3224. Death of participant

  In the event of a participant's death, the amount of such 
participant's unused contributions to the fund shall be paid to 
the living person or persons first listed below:
          (1) The beneficiary or beneficiaries designated by 
        such participant under such participant's 
        [Servicemen's] Servicemembers' Group Life Insurance 
        policy.
          * * * * * * *

             PART V--BOARDS, ADMINISTRATIONS, AND SERVICES

          * * * * * * *

              CHAPTER 77--VETERANS BENEFITS ADMINISTRATION

                   subchapter i--organization; general

Sec.
7701.  Organization of the Administration.
7703.  Functions of the Administration.
7705.  Management, policy, and operations functions associated with the 
          educational assistance programs of the Education Service.
          * * * * * * *

Sec. 7705. Management, policy, and operations functions associated with 
                    the educational assistance programs of the 
                    Education Service

  The offices of Education Procedures Systems, Education 
Operations, and Education Policy and Program Administration, 
and any successor to any such office, of the Education Service 
of the Veterans Benefit Administration of the Department shall 
be in the District of Columbia.
          * * * * * * *

                  Applicability to Legislative Branch

    The reported bill would not be applicable to the 
legislative branch under the Congressional Accountability Act, 
Public Law 104-1, because the bill would only affect certain 
Department of Veterans Affairs programs and benefits 
recipients.

                     Statement of Federal Mandates

    The reported bill would not establish a federal mandate 
under the Unfunded Mandates Reform Act, Public Law 104-4.

                                   -