An Act to permit members of the Armed Forces to elect certain contingency options, and for other purposes
PL 83-239 (H.R.5304), enacted 08/08/1953

67 S T A T . ] 
PUBLIC LAW 239-AUG. 8, 1953 
501 
Pacific Islands, and (2) the word 'Territorial' shall reflect such 
inclusion." 
SEC. 6. The amendments made by this Act shall take effect on the 
first day of the third month which begins more than ten days after the 
date of enactment of this Act. 
Approved August 8, 1953. 
Effective date. 
Public Law 239 
CHAPTER 393 
^ ^ - ^ ^ ^ 
August 8,1953 
To permit members of the uniformed services to elect certain contingency options, 
[H. R. 5304] 
and for other purposes. 
Be it enacted hy the Senate and' House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Uniformed Services Contingency Option Act of 1953". 
SEC. 2. As used in this Act— 
(a) The term "uniformed services" means the Army of the United 
States, Navy, United States Air Force, Marine Corps, Coast Guard, 
Coast and Geodetic Survey, and Public Health Service, including all 
components and members thereof. 
(b) The term "member" means a commissioned officer, commis-
sioned warrant officer, warrant officer, nurse, flight officer, or a person 
in an enlisted grade (including an aviation cadet), of any of the 
uniformed services and a person entitled to retainer pay in the Fleet 
Reserve or Fleet Marine Corps Reserve with credit for sixteen or 
more years of naval service. 
(c) The term "active member" means a member on the active list 
of a regular or reserve component of a vmiformed service or member 
of a reserve component of a uniformed service, who has completed 
twenty satisfactory years in his uniformed service, as defined in section 
302 of the Army and Air Force Vitalization and Retirement Equali-
zation Act of 1948. 
(d) The term "retired member" means a member or former member 
of a uniformed service, who is or has been awarded retired, retirement, 
or retainer pay or equivalent pay as a result of service in one of the 
uniformed services. 
(e) The term "widow" includes a widower and refers only to the 
spouse at the date of retirement of an active member or to the spouse 
at the effective date of this Act in the case of a retired member at the 
effective date of this Act. 
(f) The term "child" means a legitimate child, a stepchild in fact 
dependent upon the member for support, or a legally adopted child, 
who is under eighteen years of age and unmarried, or a child over 
eighteen years of age and unmarried who is incapable of self-support 
because of being mentally defective or physically incapacitated if 
that condition existed prior to reaching age eighteen and refers only 
to an active member's child who was born and is living at the date of 
retirement of the active member or to a retired member's child who 
was born and is living at the effective date of this Act in the case of a 
I'etired member at the effective date of the Act. 
(g) The term "retired pay" includes retirement pay, equivalent 
pay, and retainer pay. 
(h) The term "department concerned" means (A) the Department 
of the Army with respect to the Army, (B) the Department of the 
Navy with respect to the Navy and Marine Corps, (C) the Depart-
ment of the Air Force with respect to the Air Force, (D) the Treasury 
Department with respect to the Coast Guard, (E) the Department 
Uniformed Serv-
i c e s Contingency 
Option Act of 1953. 
Definitions. 
62 Stat. 1087. 
10 u s e 1036a, 
502 
PUBLIC LAW 239-AUG. 8, 1953 
[67 S T A T . 
S u r v i v o r ' s an-
nuity, election. 
Physical 
bility. 
d i s a-
Missing status. 
of Commerce with respect to the Coast and Geodetic Survey, and 
(F) the Department of Health, Education, and Welfare with respect 
to the Public Health Service. 
SEC. 3. (a) An active member may elect, prior to the completion 
of eighteen years of service which is creditable in the computation of 
active-duty pay in the uniformed service of which he is a member, 
to receive a reduced amount of any retired pay which may be awarded 
him as the result of service in his uniformed service in order to provide 
one or more of the annuities specified in section 4, payable after his 
death in a retired status to his widow, child, or children, if such 
widow, child, or children are living at the date of his retirement. 
Where the active member is awarded retired pay by his uniformed 
service for physical disability prior to the completion of the eighteen 
years of service, the election may be made at the time of retirement. 
An active member who has heretofore completed the eighteen years 
of service may make this election within one hundred and eighty days 
after the effective date of this Act. 
An active member who, as a 
result of or in connection with military or naval operations, is in a 
status of missing, missing in action, interned in a neutral country, 
captured by a hostile force, or beleaguered or besieged, and because 
of that status is unable to make the election prior to the completion 
of the eighteen years of service, or an active member who is in that 
status on the effective date of this Act and has theretofore completed 
the eighteen years of service, may make the election within six months 
of his return to the jurisdiction of his uniformed service. A person 
who is a former member on the effective date of the Act and who is 
thereafter awarded retired pay by a uniformed service may make 
Revocation, etc. the election at the time he is awarded that pay. The terms of the 
election may be modified or revoked by a member at any time prior 
to his retirement but any modification or revocation so made shall 
not be effective if he retires within five years after the date it is made. 
Any member who revokes an election shall not thereafter be permitted 
to withdraw or modify his revocation and after it becomes effective, 
he shall not be permitted to be covered in any way by this Act. 
(b) A retired member who has heretofore been awarded retired 
pay by a uniformed service may, within one hundred and eighty 
days after the effective date of this Act, elect to receive a reduced 
amount of that retired pay in order to provide one or more of the 
annuities specified in section 4, payable after his death to his 
widow, child, or children. An election so made shall thereafter be 
irrevocable. 
(c) Whenever an active member, former member, or retired mem-
ber is determined to be mentally incompetent by medical officers of 
the service concerned or of the Veterans' Administration, or is 
adjudged mentally incompetent by a court of competent jurisdiction, 
and because of such mental incompetency is incapable of making any 
election provided in this section within the time limitations specified 
therein, the head of the department concerned may make the appro-
priate election provided for in this section on behalf of such member 
if so requested by the spouse or if there be no spouse by the child or 
children of such member. 
If such member is subsequently deter-
mined to be mentally competent by medical officers of the Veterans' 
Administration, or where appropriate is subsequently adjudged men-
tally competent by a court of competent jurisdiction, he may, within 
one hundred and eighty days of such determination or judgment, 
modify, or terminate the election made on his behalf. 
Deductions 
theretofore made shall not be refunded. 
SEC. 4. (a) Under the conditions set forth in section 3, an active 
or retired member may elect one or more of the following annuities. 
Retired members. 
Mental incompe< 
tency. 
T y p e s 
nuities. 
of 
an-
67 S T A T . ] 
PUBUC LAW 239~AUG. 8, 1953 
503 
payable under this Act, in such amount, expressed as a percentage 
of the reduced amount of his retired pay, as he may specify at the 
time of election, in amounts equal to one-half, one-quarter or one-
eighth of the reduced amount of his retired pay. 
(1) An annuity payable to or on behalf of his widow, the annuity 
to terminate upon her death or remarriage, whichever first occurs. 
(2) An annuity payable to or on behalf of his surviving child or 
children, the annuity to terminate when there ceases to be at least 
one such surviving child, unmarried and under eighteen years of age, 
except that if there is a child, unmarried and over eighteen years of 
age incapable of self-support because of bein^ mentally defective or 
physically incapacitated and that condition existed prior to his reach-
ing eighteen years of age, the annuity to terminate upon his marriage, 
death, or recovery from the disability, whichever first occurs. Each 
payme-nt under such annuity shall be paid in equal shares to or on 
behalf of the surviving children remaining eligible at the time the 
payment is due. 
(3) An annuity payable to or on behalf of his widow and surviving 
children, the annuity to terminate upon: the death or remarriage of 
the widow; or, if later, the first day of the month in which there are 
no surviving children of the member who are under eighteen years 
of age and unmarried, except that if there is a child, unmarried and 
over eighteen years of age incapable of self-support because of being 
mentally defective or physically incapacitated and that condition 
existed prior to his reaching eighteen years of age, the annuity to 
terminate upon his marriage, death, or recovery from the disability, 
whichever first occurs. 
Such annuity shall be paid to the widow 
until death or remarriage, and thereafter each payment under such 
annuity shall be paid in equal shares to or on behalf of the surviving 
children remaining eligible at the time the payment is due. 
(4) An annuity payable under the same terms and conditions as 
specified in (1), (2), or (3), of this subsection, with the additional 
provision that no further deductions shall be made from the retired 
pay of the member commencing with the first day of the month 
following that in which there was no beneficiary who would have been 
eligible to receive, upon the death of the member, an annuity payable 
under the election made by him. 
(b) Where an active or retired member desires to provide more 
than one annuity, he may elect (1) and (2) of subsection (a) of this 
section, with or without the provisions of (4) thereof, but in no case 
may the combined amounts of the annuities exceed 50 per centum of 
the amount of his reduced retired pay. 
(c) The reduction to be made in the retired pay of an active or 
retired member who has made an election under section 3 shall be 
computed by the uniformed service concerned in each individual case, 
as of the date of retirement in the case of an active member and as 
of the date of election in the case of a retired member, by an actuarial 
equivalent method using as a basis appropriate actuarial tables selected 
by the Board of Actuaries designated in section 8 and an interest 
rate of 3 per centum per annum or such other interest rate as the 
Secretary of the Treasury, after considering the average yield during 
the preceding six months on outstanding marketable long-terni obli-
gations of the United States, may specify by August 1 of any year 
as applicable for the succeeding calendar year. 
In the case of an 
active or retired member the computation shall be made at the time 
of retirement, or election, as appropriate, and the actuarial equivalent 
method and actuarial tables shall be those in effect at that time. 
(d) Any active member or former member on the temporary dis-
ability retired list who has elected, pursuant to section 3 of this Act, 
Widow. 
Surviving child. 
Widow and sur-
viving chilcfren. 
More t h a n one 
annuity. 
Coiiq>utation. 
Temporary disa-
bility retirement. 
sm 
PUBLIC LAW 239-AUG. 8, 1953 
[67 ST A T . 
Deposits during 
non-pay period. 
Payments by de-
partments. 
Erroneous p a y-
ment. 
Recovery. 
Admini s t r a tion 
of Act. 
Report, 
B o a r d of Actu-
aries. 
Assignment, etc. 
Accrual, etc. 
Additioned p e n-
sions. 
to receive reduced retired pay in order to provide one or more of the 
annuities specified in section 4 of this Act, and who is subsequently 
removed from the list due to any reason other than permanent retire-
ment shall have refunded to him a sum which represents the difference 
between the amount by which his retired pay has been reduced in 
accordance with his election under section 3 of this Act and the cost 
of an amount of term insurance which is equal to the protection pro-
vided his dependents during the period he was on the temporary 
disability retired list. 
SEO. 5, A retired member of a uniformed service who has made the 
election specified in section 3 shall, during any period in which he is 
not receiving retired pay, deposit with the United States Treasury 
the amount which would have been withheld from his retired pay had 
he been receiving that pay. 
SEC. 6, Determination and certification of eligibility for, and pay-
ment of, annuities payable under this Act and any other payments or 
refunds authorized shall be made by the department concerned, except 
that payments for departments other than the military departments 
shall be made through the disbursing facilities of the Treasury 
Department. 
SEC. 7. (a) The head of the department concerned is empowered 
to use any means provided by law to recover amounts of annuities 
erroneously paid to any individual under this Act. The head of the 
department concerned may authorize such recovery by adjustments 
in subsequent payments to which the individual is entitled. 
(b) There need be no recovery as provided in subsection (a) of 
this section when, in the judgment of the head of the department con-
cerned, and the Comptroller General of the United States, the indi-
vidual to whom the erroneous payment has been made is without 
fault and recovery would be contrary to the purpose of this Act or 
would be against equity and good conscience. 
SEC. 8. This Act shall be administered under regulations prescribed 
by the President, which regulations shall be uniform insofar as prac-
ticable for all of the uniformed services. The President shall report 
annually to the Congress upon the operation of this Act. For the 
purpose of advising in the administration of this Act, the President 
shall convene annually, or oftener if he deems necessary, a Board of 
Actuaries to be composed of the Government Actuary, the Chief 
Actuary of the Social Security Administration, and an actuary to be 
selected from the membership of the Society of Actuaries. 
The 
compensation of the actuary selected from the membership of the 
Society of Actuaries shall be fixed by the President. 
The tables to 
be used in computing dedvictions in retired or retirement pay to 
provide the annuities under this Act shall be those recommended by 
the Board of Actuaries. 
SEO. 9. No annuity payable under this Act shall be assignable, either 
in law or equity, or be subject to execution, levy or attachment, gar-
nishment, or other legal process. 
SEC. 10. All annuities payable under this Act shall accrue from 
the first day of the month in which the retired member dies and shall 
be due and payable not later than the fifteenth day of each month 
following that month and in equal monthly installments thereafter, 
except that no annuity shall accrue or be paid for the month in which 
entitlement to that annuity terminates. 
SEC. 11. Annuities payable under this Act shall be in addition to 
any pensions or other payments to which the beneficiaries may now 
or hereafter be entitled under other provisions of law, and shall not 
be considered income under any law administered by the Veterans' 
Administration. 
67 
S T A T . ] 
PUBLIC LAW 240-AUG. 8, 1953 
505 
SEC. 12. The payments authorized to be made under this Act shall 
be made out of applicable current appropriations which are made 
available for that purpose. 
SEC. 13. This Act shall take effect on the first day of the third 
month following the month in which it is enacted. 
Approved August 8, 1953. 
Funds available. 
Effective date. 
Public Law 240 
CHAPTER 394 
AN ACT 
To amend the Internal Revenue Code and the Narcotic Drugs Import and Export 
Act so as to provide that certain drugs which are or may be chemically syn-
thesized shall be included within the classification of narcotic drugs. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
August 8, 1953 
[H. R. 5561] 
Narcotic drugs. 
DEFINITION OF "NARCOTIC DRUGS" 
SECTION 1. Section 3228 of the Internal Revenue Code is amended 
by adding at the end thereof the following new subsection:. 
"(g) NARCOTIC DRUGS.—The words 'narcotic drugs' as used in this 
part and subchapter A of chapter 23, shall mean any of the following, 
whether produced directly or indirectly by extraction from substances 
of vegetable origin, or independently by means of chemical synthesis, 
or by a combination of extraction and chemical synthesis: 
"(1) Opium, isonipecaine, coca leaves, and opiate; 
"(2) Any compound, manufacture, salt, derivative, or prepara-
tion of opium, isonipecaine, coca leaves, or opiate; 
"(3) Any substance (and any compound, manufacture, salt, 
derivative, or preparation thereof) which is chemically identical 
with any of the substances referred to in clauses (1) and (2)." 
60 Stat. 38. 
26 u s e 3228. 
TECHNICAL AMENDMENTS 
SEC. 2. Section 2550 (a) of the Internal Revenue Code (relating to 
tax on opium and coca leaves) is amended by striking out "opium, 
isonipecaine, coca leaves, opiate, any compound, salt, derivative, or 
preparation thereof," and by inserting in lieu thereof "narcotic 
drugs". 
SEC. 3. (a) Section 2558 (b) of the Internal Revenue Code is 
amended (1) by striking out "opium, coca leaves, isonipecaine, opi-
ates, and all salts, derivatives, and preparations of opium, coca leaves, 
isonipecaine, and opiates," and by inserting in lieu thereof "narcotic 
drugs", and (2) by striking out "None of the aforesaid drugs" and 
inserting in lieu thereof "No narcotic drugs". 
(b) Sections 2564 (b), 3220 (g), and 3222 (c) (1) of the Internal 
Revenue Code are each amended by striking out "opium or coca leaves, 
their sales, derivatives, or preparations" and by inserting in lieu 
thereof "narcotic drugs". 
SEC. 4. Section 2565 of the Internal Revenue Code is amended by 
striking out all that follows "Subsection (d)." and by inserting in lieu 
thereof the following: 
"NARCOTIC DRUGS.— 
"SUBSECTION (g)." 
SEC. 5. Section 3220 of the Internal Revenue Code (relating to tax 
on narcotics) is amended by striking out "opium, coca leaves, isonipe-
caine, or opiate, or any compound, manufacture, salt, derivative, or 
preparation thereof," and by inserting in lieu thereof "narcotic drugs". 
53 Stat. 269. 
26 u s e 2550. 
26 u s e 2558. 
2 6 u s e 
2 5 6 4 , 
3220, 3222. 
26 u s e 2565. 
26 u s e 3220.