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10 U.S.C. § 12525 (ARMED FORCES)
§ 12525. Benefit amounts
(a) Basic Benefit.—
The basic benefit for an insured member under the insurance program is $1,000 per month (as adjusted under subsection (d)).
(b) Reduced and Enhanced Benefits.—
Under the regulations prescribed by the Secretary, a person enrolled for coverage under the insurance program may elect—
(1) a reduced coverage benefit equal to one-half the amount of the basic benefit; or
(2) an enhanced benefit in the amount of $1,500, $2,000, $2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month (as adjusted under subsection (d)).
(c) Amount for Partial Month.—
The amount of insurance payable to an insured member for any period of covered service that is less than one month shall be determined by multiplying 1⁄30 of the monthly benefit rate for the member by the number of days of the covered service served by the member during such period.
(d) Adjustment of Amounts.—
(1) The Secretary shall determine annually the effect of inflation on benefits and shall adjust the amounts set forth in subsections (a) and (b)(2) to maintain the constant dollar value of the benefit.
(2) If the amount of a benefit as adjusted under paragraph (1) is not evenly divisible by $10, the amount shall be rounded to the nearest multiple of $10, except that an amount evenly divisible by $5 but not by $10 shall be rounded to the next lower amount that is evenly divisible by $10.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 301.)
10 U.S.C. § 12526 (ARMED FORCES)
§ 12526. Premiums
(a) Establishment of Rates.—
(1) The Secretary, in consultation with the Board of Actuaries, shall prescribe the premium rates for insurance under the insurance program.
(2) The Secretary shall prescribe a fixed premium rate for each $1,000 of monthly insurance benefit. The premium amount shall be equal to the share of the cost attributable to insuring the member and shall be the same for all members of the Ready Reserve who are insured under the insurance program for the same benefit amount. The Secretary shall prescribe the rate on the basis of the best available estimate of risk and financial exposure, levels of subscription by members, and other relevant factors.
(b) Level Premiums.—
The premium rate prescribed for the first year of insurance coverage of an insured member shall be continued without change for subsequent years of insurance coverage, except that the Secretary, after consultation with the Board of Actuaries, may adjust the premium rate in order to fund inflation-adjusted benefit increases on an actuarially sound basis.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 301.)
10 U.S.C. § 12527 (ARMED FORCES)
§ 12527. Payment of premiums
(a) Methods of Payment.—
(1) The monthly premium for coverage of a member of the Selected Reserve under the insurance program shall be deducted and withheld from the insured member’s pay for each month.
(2) The Secretary of Defense, in consultation with the Secretary of Homeland Security, shall prescribe regulations which specify the procedures for payment of premiums by members of the Individual Ready Reserve and other members who do not receive pay on a monthly basis.
(b) Advance Pay for Premium.—
The Secretary concerned may advance to an insured member the amount equal to the first insurance premium payment due under this chapter. The advance may be paid out of appropriations for military pay. An advance to a member shall be collected from the member either by deducting and withholding the amount from basic pay payable for the member or by collecting it from the member directly. No disbursing or certifying officer shall be responsible for any loss resulting from an advance under this subsection.
(c) Premiums To Be Deposited in Fund.—
Premium amounts deducted and withheld from the pay of insured members and premium amounts paid directly to the Secretary shall be credited monthly to the Fund.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 302; amended Pub. L. 104–201, div. A, title V, § 547, Sept. 23, 1996, 110 Stat. 2524; Pub. L. 107–296, title XVII, § 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314.)
heading: Amendments
text: 2002—Subsec. (a)(2). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation”.
1996—Subsec. (a)(1). Pub. L. 104–201, § 547(1), inserted “of the Selected Reserve” after “a member”.
Subsec. (a)(2). Pub. L. 104–201, § 547(2), added par. (2) and struck out former par. (2) which read as follows: “An insured member who does not receive pay on a monthly basis shall pay the Secretary directly the premium amount applicable for the level of benefits for which the member is insured.”
heading: Effective Date of 2002 Amendment
text: Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of this title.
10 U.S.C. § 12528 (ARMED FORCES)
§ 12528. Reserve Mobilization Income Insurance Fund
(a) Establishment.—
There is established on the books of the Treasury a fund to be known as the “Reserve Mobilization Income Insurance Fund”, which shall be administered by the Secretary of the Treasury. The Fund shall be used for the accumulation of funds in order to finance the liabilities of the insurance program on an actuarially sound basis.
(b) Assets of Fund.—
There shall be deposited into the Fund the following:
(1) Premiums paid under section 12527 of this title.
(2) Any amount appropriated to the Fund.
(3) Any return on investment of the assets of the Fund.
(c) Availability.—
Amounts in the Fund shall be available for paying insurance benefits under the insurance program.
(d) Investment of Assets of Fund.—
The Secretary of the Treasury shall invest such portion of the Fund as is not in the judgment of the Secretary of Defense required to meet current liabilities. Such investments shall be in public debt securities with maturities suitable to the needs of the Fund, as determined by the Secretary of Defense, and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. The income on such investments shall be credited to the Fund.
(e) Annual Accounting.—
At the beginning of each fiscal year, the Secretary, in consultation with the Board of Actuaries and the Secretary of the Treasury, shall determine the following:
(1) The projected amount of the premiums to be collected, investment earnings to be received, and any transfers or appropriations to be made for the Fund for that fiscal year.
(2) The amount for that fiscal year of any cumulative unfunded liability (including any negative amount or any gain to the Fund) resulting from payments of benefits.
(3) The amount for that fiscal year (including any negative amount) of any cumulative actuarial gain or loss to the Fund.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 302.)
10 U.S.C. § 12529 (ARMED FORCES)
§ 12529. Board of Actuaries
(a) Actuarial Responsibility.—
The Board of Actuaries shall have the actuarial responsibility for the insurance program.
(b) Valuations and Premium Recommendations.—
The Board of Actuaries shall carry out periodic actuarial valuations of the benefits under the insurance program and determine a premium rate methodology for the Secretary to use in setting premium rates for the insurance program. The Board shall conduct the first valuation and determine a premium rate methodology not later than six months after the insurance program is established.
(c) Effects of Changed Benefits.—
If at the time of any actuarial valuation under subsection (b) there has been a change in benefits under the insurance program that has been made since the last such valuation and such change in benefits increases or decreases the present value of amounts payable from the Fund, the Board of Actuaries shall determine a premium rate methodology, and recommend to the Secretary a premium schedule, for the liquidation of any liability (or actuarial gain to the Fund) resulting from such change and any previous such changes so that the present value of the sum of the scheduled premium payments (or reduction in payments that would otherwise be made) equals the cumulative increase (or decrease) in the present value of such benefits.
(d) Actuarial Gains or Losses.—
If at the time of any such valuation the Board of Actuaries determines that there has been an actuarial gain or loss to the Fund as a result of changes in actuarial assumptions since the last valuation or as a result of any differences, between actual and expected experience since the last valuation, the Board shall recommend to the Secretary a premium rate schedule for the amortization of the cumulative gain or loss to the Fund resulting from such changes in assumptions and any previous such changes in assumptions or from the differences in actual and expected experience, respectively, through an increase or decrease in the payments that would otherwise be made to the Fund.
(e) Insufficient Assets.—
If at any time liabilities of the Fund exceed assets of the Fund as a result of members of the Ready Reserve being ordered to active duty as described in section 12521(2) of this title, and funds are unavailable to pay benefits completely, the Secretary shall request the President to submit to Congress a request for a special appropriation to cover the unfunded liability. If appropriations are not made to cover an unfunded liability in any fiscal year, the Secretary shall reduce the amount of the benefits paid under the insurance program to a total amount that does not exceed the assets of the Fund expected to accrue by the end of such fiscal year. Benefits that cannot be paid because of such a reduction shall be deferred and may be paid only after and to the extent that additional funds become available.
(f) Definition of Present Value.—
The Board of Actuaries shall define the term “present value” for purposes of this subsection.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 303.)
10 U.S.C. § 12530 (ARMED FORCES)
§ 12530. Payment of benefits
(a) Commencement of Payment.—
An insured member who serves in excess of 30 days of covered service shall be paid the amount to which such member is entitled on a monthly basis beginning not later than one month after the 30th day of covered service.
(b) Method of Payment.—
The Secretary shall prescribe in the regulations the manner in which payments shall be made to the member or to a person designated in accordance with subsection (c).
(c) Designated Recipients.—
(1) A member may designate in writing another person (including a spouse, parent, or other person with an insurable interest, as determined in accordance with the regulations prescribed by the Secretary) to receive payments of insurance benefits under the insurance program.
(2) A member may direct that payments of insurance benefits for a person designated under paragraph (1) be deposited with a bank or other financial institution to the credit of the designated person.
(d) Recipients in Event of Death of Insured Member.—
Any insurance payable under the insurance program on account of a deceased member’s period of covered service shall be paid, upon the establishment of a valid claim, to the beneficiary or beneficiaries which the deceased member designated in writing. If no such designation has been made, the amount shall be payable in accordance with the laws of the State of the member’s domicile.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 304.)
10 U.S.C. § 12531 (ARMED FORCES)
§ 12531. Purchase of insurance
(a) Purchase Authorized.—
The Secretary may, instead of or in addition to underwriting the insurance program through the Fund, purchase from one or more insurance companies a policy or policies of group insurance in order to provide the benefits required under this chapter. The Secretary may waive any requirement for full and open competition in order to purchase an insurance policy under this subsection.
(b) Eligible Insurers.—
In order to be eligible to sell insurance to the Secretary for purposes of subsection (a), an insurance company shall—
(1) be licensed to issue insurance in each of the 50 States and in the District of Columbia; and
(2) as of the most recent December 31 for which information is available to the Secretary, have in effect at least one percent of the total amount of insurance that all such insurance companies have in effect in the United States.
(c) Administrative Provisions.—
(1) An insurance company that issues a policy for purposes of subsection (a) shall establish an administrative office at a place and under a name designated by the Secretary.
(2) For the purposes of carrying out this chapter, the Secretary may use the facilities and services of any insurance company issuing any policy for purposes of subsection (a), may designate one such company as the representative of the other companies for such purposes, and may contract to pay a reasonable fee to the designated company for its services.
(d) Reinsurance.—
The Secretary shall arrange with each insurance company issuing any policy for purposes of subsection (a) to reinsure, under conditions approved by the Secretary, portions of the total amount of the insurance under such policy or policies with such other insurance companies (which meet qualifying criteria prescribed by the Secretary) as may elect to participate in such reinsurance.
(e) Termination.—
The Secretary may at any time terminate any policy purchased under this section.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 304.)
10 U.S.C. § 12532 (ARMED FORCES)
§ 12532. Termination for nonpayment of premiums; forfeiture
(a) Termination for Nonpayment.—
The coverage of a member under the insurance program shall terminate without prior notice upon a failure of the member to make required monthly payments of premiums for two consecutive months. The Secretary may provide in the regulations for reinstatement of insurance coverage terminated under this subsection.
(b) Forfeiture.—
Any person convicted of mutiny, treason, spying, or desertion, or who refuses to perform service in the armed forces or refuses to wear the uniform of any of the armed forces shall forfeit all rights to insurance under this chapter.
(Added Pub. L. 104–106, div. A, title V, § 512(a)(1), Feb. 10, 1996, 110 Stat. 305.)
10 U.S.C. § 12533 (ARMED FORCES)
§ 12533. Termination of program
(a) In General.—
The Secretary shall terminate the insurance program in accordance with this section.
(b) Termination of New Enrollments.—
The Secretary may not enroll a member of the Ready Reserve for coverage under the insurance program after November 18, 1997.
(c) Termination of Coverage.—
(1) The enrollment under the insurance program of insured members other than insured members described in paragraph (2) is terminated as of November 18, 1997. The enrollment of an insured member described in paragraph (2) is terminated as of the date of the termination of the period of covered service of that member described in that paragraph.
(2) An insured member described in this paragraph is an insured member who on November 18, 1997, is serving on covered service for a period of service, or has been issued an order directing the performance of covered service, that satisfies or would satisfy the entitlement-to-benefits provisions of this chapter.
(d) Termination of Payment of Benefits.—
The Secretary may not make any benefit payment under the insurance program after November 18, 1997, other than to an insured member who on that date (1) is serving on an order to covered service, (2) has been issued an order directing performance of covered service, or (3) has served on covered service before that date for which benefits under the program have not been paid to the member.
(e) Termination of Insurance Fund.—
The Secretary shall close the Fund not later than 60 days after the date on which the last benefit payment from the Fund is made. Any amount remaining in the Fund when closed shall be covered into the Treasury as miscellaneous receipts.
(Added Pub. L. 105–85, div. A, title V, § 512(a), Nov. 18, 1997, 111 Stat. 1729; amended Pub. L. 107–107, div. A, title X, § 1048(c)(15), Dec. 28, 2001, 115 Stat. 1226.)
heading: Amendments
text: 2001—Subsecs. (b), (c)(1). Pub. L. 107–107, § 1048(c)(15)(A), substituted “November 18, 1997.” for “the date of the enactment of this section.”
Subsecs. (c)(2), (d). Pub. L. 107–107, § 1048(c)(15)(B), substituted “November 18, 1997,” for “the date of the enactment of this section”.
10 U.S.C. § 12551 (ARMED FORCES)
[§ 12551. Repealed. Pub. L. 107–314, div. A, title V, § 515(a), Dec. 2, 2002, 116 Stat. 2539]
text: Section, added Pub. L. 105–85, div. A, title V, § 515(a), Nov. 18, 1997, 111 Stat. 1732, related to prohibition of use of Air Force Reserve AGR personnel for Air Force base security functions.
10 U.S.C. § 12552 (ARMED FORCES)
§ 12552. Funeral honors functions at funerals for veterans
Performance by a Reserve of funeral honors functions at the funeral of a veteran (as defined in section 1491(h) of this title) may not be considered to be a period of drill or training, but may be performed as funeral honors duty under section 12503 of this title.
(Added Pub. L. 105–261, div. A, title V, § 567(c)(1), Oct. 17, 1998, 112 Stat. 2031; amended Pub. L. 106–65, div. A, title V, § 578(g)(4), Oct. 5, 1999, 113 Stat. 628; Pub. L. 106–398, § 1 [[div. A], title X, § 1087(a)(21)], Oct. 30, 2000, 114 Stat. 1654, 1654A–291.)
heading: Amendments
text: 2000—Pub. L. 106–398 inserted period at end.
1999—Pub. L. 106–65 substituted “honors functions at funerals for veterans” for “honor guard functions: prohibition of treatment as drill or training” in section catchline and amended text generally. Prior to amendment, text read as follows: “Performance by a Reserve of honor guard functions at the funeral of a veteran may not be considered to be a period of drill or training otherwise required.”
10 U.S.C. § 12601 (ARMED FORCES)
§ 12601. Compensation: Reserve on active duty accepting from any person
Any Reserve who, before being ordered to active duty, was receiving compensation from any person may, while he is on that duty, receive compensation from that person.
(Added Pub. L. 103–337, div. A, title XVI, § 1662(g)(1), Oct. 5, 1994, 108 Stat. 2995.)
heading: Prior Provisions
text: Provisions similar to those in this section were contained in section 1033 of this title, prior to repeal by Pub. L. 103–337, § 1662(g)(2).
heading: Effective Date
text: Chapter effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as a note under section 10001 of this title.
10 U.S.C. § 12602 (ARMED FORCES)
§ 12602. Members of Army National Guard of United States and Air National Guard of United States: credit for service as members of National Guard
(a) For the purposes of laws providing benefits for members of the Army National Guard of the United States and their dependents and beneficiaries—
(1) military training, duty, or other service performed by a member of the Army National Guard of the United States in his status as a member of the Army National Guard for which he is entitled to pay from the United States shall be considered military training, duty, or other service, as the case may be, in Federal service as a Reserve of the Army;
(2) full-time National Guard duty performed by a member of the Army National Guard of the United States shall be considered active duty in Federal service as a Reserve of the Army; and
(3) inactive-duty training performed by a member of the Army National Guard of the United States in his status as a member of the Army National Guard, in accordance with regulations prescribed under section 502 of title 32 or other express provision of law, shall be considered inactive-duty training in Federal service as a Reserve of the Army.
(b) For the purposes of laws providing benefits for members of the Air National Guard of the United States and their dependents and beneficiaries—
(1) military training, duty, or other service performed by a member of the Air National Guard of the United States in his status as a member of the Air National Guard for which he is entitled to pay from the United States shall be considered military training, duty, or other service, as the case may be, in Federal service as a Reserve of the Air Force;
(2) full-time National Guard duty performed by a member of the Air National Guard of the United States shall be considered active duty in Federal service as a Reserve of the Air Force; and
(3) inactive-duty training performed by a member of the Air National Guard of the United States in his status as a member of the Air National Guard, in accordance with regulations prescribed under section 502 of title 32 or other express provision of law, shall be considered inactive-duty training in Federal service as a Reserve of the Air Force.
(Added Pub. L. 103–337, div. A, title XVI, § 1662(g)(1), Oct. 5, 1994, 108 Stat. 2995.)
heading: Prior Provisions
text: Provisions similar to those in this section were contained in sections 3686 and 8686 of this title, prior to repeal by Pub. L. 103–337, § 1662(g)(2).
10 U.S.C. § 12603 (ARMED FORCES)
§ 12603. Attendance at inactive-duty training assemblies: commercial travel at Federal supply schedule rates
(a) Federal Supply Schedule Travel.—
Commercial travel under Federal supply schedules is authorized for the travel of a Reserve to the location of inactive duty training to be performed by the Reserve and from that location upon completion of the training.
(b) Regulations.—
The Secretary of Defense shall prescribe in regulations such requirements, conditions, and restrictions for travel under the authority of subsection (a) as the Secretary considers appropriate. The regulations shall include policies and procedures for preventing abuses of that travel authority.
(c) Reimbursement Not Authorized.—
A Reserve is not entitled to Government reimbursement for the cost of travel authorized under subsection (a).
(d) Treatment of Transportation as Use by Military Departments.—
For the purposes of section 501 of title 40, travel authorized under subsection (a) shall be treated as transportation for the use of a military department.
(Added Pub. L. 105–261, div. A, title VI, § 635(a), Oct. 17, 1998, 112 Stat. 2044; amended Pub. L. 107–217, § 3(b)(41), Aug. 21, 2002, 116 Stat. 1298.)
heading: Amendments
text: 2002—Subsec. (d). Pub. L. 107–217 substituted “section 501 of title 40” for “section 201(a) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481(a))”.
10 U.S.C. § 12604 (ARMED FORCES)
§ 12604. Billeting in Department of Defense facilities: Reserves attending inactive-duty training
(a) Authority for Billeting on Same Basis as Active Duty Members Traveling Under Orders.—
The Secretary of Defense shall prescribe regulations authorizing a Reserve traveling to inactive-duty training at a location more than 50 miles from that Reserve’s residence to be eligible for billeting in Department of Defense facilities on the same basis and to the same extent as a member of the armed forces on active duty who is traveling under orders away from the member’s permanent duty station.
(b) Proof of Reason for Travel.—
The Secretary shall include in the regulations the means for confirming a Reserve’s eligibility for billeting under subsection (a).
(Added Pub. L. 106–398, § 1 [[div. A], title VI, § 663(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–168.)
heading: Effective Date
text: Pub. L. 106–398, § 1 [[div. A], title VI, § 663(b)], Oct. 30, 2000, 114 Stat. 1654, 1654A–168, provided that: “Section 12604 of title 10, United States Code, as added by subsection (a), shall apply with respect to periods of inactive-duty training beginning more than 180 days after the date of the enactment of this Act [Oct. 30, 2000].”