412 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Rules and Regulations

right to acquire such stock, received in

connection with a transaction occurring

on or after March 9, 1998.

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: December 17, 1997.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 98–4 Filed 1–5–98; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 3

RIN 2900–AI83

Minimum Income Annuity

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

Department of Veterans Affairs (VA)

adjudication regulations to provide for

payment of the minimum income

annuity, authorized by Public Law 92–

425 as amended, to certain surviving

spouses. This amendment is necessary

to reflect statutory revisions contained

in the National Defense Authorization

Act for Fiscal Year 1997 that transfers

the responsibility for paying this benefit

from the Department of Defense (DoD)

to VA.

EFFECTIVE DATE: January 6, 1998.

FOR FURTHER INFORMATION CONTACT: John

Bisset, Jr., Consultant, Regulations Staff,

Compensation and Pension Service,

Veterans Benefits Administration, 810

Vermont Avenue, NW, Washington, DC

20420, telephone (202) 273–7230.

SUPPLEMENTARY INFORMATION: Public

Law 92–425, section 4, 86 Stat. 706, 712

(1972) (10 U.S.C. 1448 note), provides

for payment of a guaranteed minimum

annual income (the so-called minimumincome-widow annuity, hereinafter

referred to as the minimum income

annuity) to certain surviving spouses of

persons entitled to military retired or

retainer pay at the time of their death.

To be eligible, a person must: (1) Be the

surviving spouse of a military retiree

who died on or before March 20, 1974;

(2) be eligible for VA nonserviceconnected death pension; (3) have

annual income that is less than the

maximum annual rate of pension under

38 U.S.C. 1541(b); and (4) be ineligible

to receive an annuity under the Survivor

Benefit Plan (10 U.S.C. 1447–1455).

Section 638 of the National Defense

Authorization Act for Fiscal Year 1997,

Public Law 104–201, section 638, 110

Stat. 2422, 2581, transfers responsibility

for the payment of the minimum income

annuity to the Secretary of Veterans

Affairs from DoD. However, DoD

remains responsible for funding this

benefit and determining basic eligibility.

This transfer was effective on July 1,

1997, and applies with respect to

payments of benefits for any month after

June 1997.

VA published an interim rule with a

request for comments to implement

section 638 of Pubic Law 104–201 in the

Federal Register of July 3, 1997 (62 FR

35970–72). Interested persons were

invited to submit written comments on

or before September 2, 1997. No

comments were received. The interim

rule is now adopted with a technical

change noting that, as required by

statute, in certain instances, the

Department of Transportation will

determine whether an individual meets

the criteria of section 4(a) of Pub. L. 92–

425 as amended.

The Secretary hereby certifies that

this regulatory amendment will not

have a significant economic impact on

a substantial number of small entities as

they are defined in the Regulatory

Flexibility Act (RFA), 5 U.S.C. 601–612.

The reason for this certification is that

these amendments would not directly

affect any small entities. Only VA

beneficiaries could be directly affected.

Therefore, pursuant to 5 U.S.C. 605(b),

these amendments are exempt from the

initial and final regulatory flexibility

analysis requirements of sections 603

and 604.

The Catalog of Federal Domestic

Assistance program number is 64.105.

List of Subjects in 38 CFR Part 3

Administrative practice and

procedure, Claims, Disability benefits,

Health care, Pensions, Veterans,

Vietnam.

Approved: December 23, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

For the reasons set forth in the

preamble, the amendment to 38 CFR

part 3 published July 3, 1997 (62 FR

35970) is adopted as final with the

following changes:

PART 3—ADJUDICATION

Subpart A—Pension, Compensation,

and Dependency and Indemnity

Compensation

1. The authority citation for part 3,

subpart A continues to read as follows:

Authority: 38 U.S.C. 501(a), unless

otherwise noted.

2. Section 3.811 is revised to read as

follows:

§ 3.811 Minimum income annuity.

(a) Eligibility. The minimum income

annuity authorized by Public Law 92–

425 as amended is payable to a person:

(1) Whom the Department of Defense

or the Department of Transportation has

determined meets the eligibility criteria

of section 4(a) of Pub. L. 92–425 as

amended other than section 4(a)(1) and

(2); and

(2) Who is eligible for pension under

subchapter III of chapter 15 of title 38,

United States Code, or section 306 of the

Veterans’ and Survivors’ Pension

Improvement Act of 1978; and

(3) Whose annual income, as

determined in establishing pension

eligibility, is less than the maximum

annual rate of pension in effect under 38

U.S.C. 1541(b).

(b) Computation of the minimum

income annuity payment—(1) Annual

income. VA will determine a

beneficiary’s annual income for

minimum income annuity purposes

under the provisions of §§ 3.271 and

3.272 of this part for beneficiaries

receiving improved pension, or under

§§ 3.260 through 3.262 of this part for

beneficiaries receiving old law or

section 306 pensions, except that the

amount of the minimum income

annuity will be excluded from the

calculation.

(2) VA will determine the minimum

income annuity payment for

beneficiaries entitled to improved

pension by subtracting the annual

income for minimum income annuity

purposes from the maximum annual

pension rate under 38 U.S.C. 1541(b).

(3) VA will determine the minimum

income annuity payment for

beneficiaries receiving old law and

section 306 pensions by reducing the

maximum annual pension rate under 38

U.S.C. 1541(b) by the amount of the

Retired Servicemen’s Family Protection

Plan benefit, if any, that the beneficiary

receives and subtracting from that

amount the annual income for

minimum income annuity purposes.

(4) VA will recompute the monthly

minimum income annuity payment

whenever there is a change to the

maximum annual rate of pension in

effect under 38 U.S.C. 1541(b), and

whenever there is a change in the

beneficiary’s income.

(c) An individual otherwise eligible

for pension under subchapter III of

chapter 15 of title 38, United States

Code, or section 306 of the Veterans’

and Survivors’ Pension Improvement

Act of 1978 shall be considered eligible

for pension for purposes of determining

eligibility for the minimum income

annuity even though as a result of

adding the amount of the minimum
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Rules and Regulations 413

income annuity authorized under Public

Law 92–425 as amended to any other

countable income, no amount of

pension is due.

(d) Termination. Other than as

provided in paragraph (c) of this

section, if a beneficiary receiving the

minimum income annuity becomes

ineligible for pension, VA will terminate

the minimum income annuity effective

the same date.

(Authority: Pub. L. 92–425 as amended (10

U.S.C. 1448 note); Sec. 638, Pub. L. 104–201,

110 Stat. 2581)

[FR Doc. 98–179 Filed 1–5–98; 8:45 am]

BILLING CODE 8320–01–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 3

RIN 2900–AI91

Active Military Service Certified Under

Section 401 of Public Law 95–202

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

Department of Veterans Affairs (VA)

adjudication regulations concerning

persons who are included as having

served on active duty. This action is

necessary because the Secretary of the

Air Force has determined that the

service of two groups known as ‘‘U.S.

Flight Crew and Aviation Ground

Support Employees of Northeast

Airlines Atlantic Division, Who Served

Overseas as a Result of Northeast

Airlines’ Contract With the Air

Transport Command During the Period

December 7, 1941, Through August 14,

1945’’ and ‘‘U.S. Civilian Flight Crew

and Aviation Ground Support

Employees of Braniff Airways, Who

Served Overseas in the North Atlantic or

Under the Jurisdiction of the North

Atlantic Wing, Air Transport Command

(ATC), as a Result of a Contract With the

ATC During the Period February 26,

1942, Through August 14, 1945’’

constitutes active military service in the

Armed Forces of the United States. The

intended effect of this amendment is to

reflect eligibility of members of these

groups for VA benefits.

EFFECTIVE DATE: June 2, 1997.

FOR FURTHER INFORMATION CONTACT: John

Bisset, Jr., Consultant, Regulations Staff,

Compensation and Pension Service,

Veterans Benefits Administration, 810

Vermont Avenue, NW, Washington, DC

20420, telephone (202) 273–7230.

SUPPLEMENTARY INFORMATION: Section

401 of Pub. L. 95–202 states that under

certain circumstances the service of

certain groups that had rendered service

to the Armed Forces of the United States

in the capacity of civilian employment

or contractual service shall be

considered active duty for the purposes

of all laws administered by VA. In order

for members of such a group to be

eligible for VA benefits, the Secretary of

Defense, or his or her designee, must

determine that the service of the group

constituted active military service and

issue discharges to members of the

group.

In the Federal Register of July 7, 1997

(62 FR 36263–64), the Secretary of the

Air Force published a notice that she

had determined that for VA purposes

the service of two groups constituted

active military service: the U.S. Flight

Crew and Aviation Ground Support

Employees of Northeast Airlines

Atlantic Division, Who Served Overseas

as a Result of Northeast Airlines’

Contract With the Air Transport

Command During the Period December

7, 1941, Through August 14, 1945, and

U.S. Civilian Flight Crew and Aviation

Ground Support Employees of Braniff

Airways, Who Served Overseas in the

North Atlantic or Under the Jurisdiction

of the North Atlantic Wing, Air

Transport Command (ATC), as a Result

of a Contract With the ATC During the

Period February 26, 1942, Through

August 14, 1945. Under these

circumstances, members of these groups

are eligible for VA benefits. The

effective date of the determination by

the Secretary of the Air Force was June

2, 1997. Accordingly, this document

amends 38 CFR 3.7(x) to recognize that

the service of these groups constitutes

active military service for the purposes

of laws administered by VA.

Additionally, we have amended the

heading and introductory text of 38 CFR

3.7 to make it easier for interested

individuals to clearly identify the topic

of the regulations. These are not

substantive changes.

This document reflects

determinations totally within the

purview of the Secretary of the Air

Force and also reflects statutory

determinations. In addition, this

document contains other changes which

are nonsubstantive. Under these

circumstances, the changes made by this

document are exempt from the noticeand-comment and from the delayedeffective-date provisions of 5 U.S.C. 553.

Since a notice of proposed rulemaking

is unnecessary, this amendment is not a

‘‘rule’’ as defined in and made subject

to the Regulatory Flexibility Act (RFA),

5 U.S.C. 601(2). Nonetheless, the

Secretary certifies that this final rule

will not have a significant economic

impact on a substantial number of small

entities as they are defined in the RFA,

5 U.S.C. 601–612. This final rule will

not affect any small entity.

There is no affected Catalog of Federal

Domestic Assistance program number.

List of Subjects in 38 CFR Part 3

Administrative practice and

procedure, Claims, Disability benefits,

Health care, Pensions, Veterans,

Vietnam.

Approved: December 23, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

For the reasons set forth in the

preamble, 38 CFR part 3 is amended as

follows:

PART 3—ADJUDICATION

Subpart A—Pension, Compensation,

and Dependency and Indemnity

Compensation

1. The authority citation for Part 3,

subpart A continues to read as follows:

Authority: 38 U.S.C. 501(a), unless

otherwise noted.

2. In § 3.7, the section heading and

introductory text are revised and new

paragraphs (x)(29) and (x)(30) are added

to read as follows:

§ 3.7 Individuals and groups considered to

have performed active military, naval, or air

service.

The following individuals and groups

are considered to have performed active

military, naval, or air service:

* * * * *

(x) * * *

(29) U.S. Flight Crew and Aviation

Ground Support Employees of Northeast

Airlines Atlantic Division, Who Served

Overseas as a Result of Northeast

Airlines’ Contract With the Air

Transport Command During the Period

December 7, 1941, Through August 14,

1945.

(30) U.S. Civilian Flight Crew and

Aviation Ground Support Employees of

Braniff Airways, Who Served Overseas

in the North Atlantic or Under the

Jurisdiction of the North Atlantic Wing,

Air Transport Command (ATC), as a

Result of a Contract With the ATC

During the Period February 26, 1942,

Through August 14, 1945.

(Authority: Sec. 401, Pub. L. 95–202, 91 Stat.

1449)

[FR Doc. 98–176 Filed 1–5–98; 8:45 am]

BILLING CODE 8320–01–P