An Act to provide benefits for the survivors of servicemen and veterans, and for other purposes
PL 84-881 (H.R.7089), enacted 08/01/1956

ro STAT.] 
PUBLIC L
A
W 881-AUG. 1, 1966 
867 
Public Law 881 
CHAPTER837 
^^ 
^^'^ 
August I, 1956 
To provide benefits for the survivors of servicemen and veterans, and for other 
[H. R. 7089] 
puri)0ses. 
Servicemen's and 
Veterans' S u r v i -
vor Benefits Act. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 
TITLE I—SHORT TITLE AND DEFINITIONS 
SHORT TITLE 
SEC. 101. This Act, divided into titles and sections according to the 
following table of contents, may be cited as the "Servicemen's and 
Veterans^ Survivor Benefits Act". 
TABLE OF CONTENTS 
TITLE I—SHORT TITLE AND DEFINITIONS 
Sec. 101. Short title. 
Sec. 102. Definitions. 
TITLE II—DEPENDENCY AND INDEMNITY COMPENSATION 
Post, p. 862. 
Sec. 201. Deaths entitling survivors to dependency and indemnity compensation. 
Sec. 202. Dependency and indemnity compensation to a widow. 
Sec. 203. Dependency and indemnity compensation to children. 
Sec. 204. Supplemental dependency and indemnity compensation to children. 
Sec. 205. Dependency and indemnity compensation to parents. 
Sec. 206. Dependency and indemnity compensation in cases of prior deaths. 
Sec. 207. Determinations by the Veterans' Administration. 
Sec. 208. Duplication of benefits. 
Sec. 209. Administrative provisions. 
Sec, 210. Exemption from taxation and claims of creditors. 
TITLE III—^DEATH GRATUITY 
Poat, p. 868. 
Sec. 301. Deaths entitling survivors to death gratuity. 
Sec. 302. Immediate payment of death gratuity. 
Sec. 303. Death g^ratuity coverage after active service. 
Sec. 304. Administrative provisions. 
TITLE IV—OLD-AGE AND SURVIVORS INSURANCE 
Post, p. 869. 
PART A—^PROVISIONS RELATING TO TITLE II OF THE SOCIAL SECURITY ACT 
Sec. 401. Defihition of wages. 
Sec. 402. Definition of employment. 
Sec. 403. Lump-sum death payments for reinterment of deceased veterans. 
Sec. 404. Credit for military or naval service performed before January 1, 1957. 
Sec. 405. Payment of benefits in certain cases of in-service or service-connected 
deaths. 
Sec. 406. Reimbursement of trust fund for cost of wage credits for certain 
military service. 
Sec. 407. Requirement of application. 
Sec. 408. Amendments relating to railroad retirement. 
Sec. 409. Annuities under the Civil Service Retirement Act. 
PART B 
AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954 
Sec. 410. Definition of wages. 
Sec. 411. Definition of employment. 
Sec. 412. Receipts for employees. 
858 
PUBLIC LAW 881-AUG. 1, 1956 
[70 ST A T . 
Post, p. 880. 
Post, p. 886. 
TABLE OF CONTENTS—Continued 
TITLE V—AMENDMENTS AND REPEALS 
Sec. 501. Amendments.. 
Sec. 502. Repeals. 
TITLE VI—^MISCELLANEOUS 
"Administrator". 
"Me mb e r o f a 
uniformed service". 
"Reserve c o m -
p o n e n t of a uni-
formed service". 
"Active duty". 
Sec. 601. Application for benefits. 
Sec. 602. Renewal of term insurance. 
Sec. 603. Effective dates. 
DEFINITIONS 
SEQ. 102. For the purposes of this Act— 
(1) "Administrator" means the Administrator of Veterans' 
Affairs. 
(2) "Member of a uniformed service" means a person ap-
pointed, enlisted, or inducted in a component of the Army, Navy, 
Air Force, Marine Corps, or Coast Guard (including a reserve 
component of a uniformed service), or in one of those services 
without specification of component, or as a commissioned officer 
of the Coast and Geodetic Survey or the Kegular or Reserve Corps 
of the Public Health Service, and any person serving in the Army 
or Air Force under call or conscription. 
The term includes— 
(A) a retired member of any of those services; 
(B) a member of the Fleet Reserve or Fleet Marine Corps 
Reserve; 
(C) a cadet at the United States Military Academy, a mid*-
shipman at the United States Naval Academy, and a cadet at 
1 
the United States Coast Guard Academy or United States 
Air Force Academy; 
(D) a member of the Reserve Officers' Training Corps, the 
Naval Reserve Officers' Training Corps, or the Air Force 
Reserve Officers' Training Corps, when ordered to annual 
training duty for fourteen days or more, and while perform-
ing authorized travel to and from that duty; and 
(E) any person while en route to or from, or at, a place 
for final acceptance or for entry upon active duty in the mili-
tary or naval service— 
(i) who has been provisionally accepted for such 
duty; or 
(ii) who, under the Universal Military Training and 
Service Act, has been selected for active military or 
naval service; 
and has been ordered or directed to proceed to such place. 
The term does not include a temporary member of the Coast Guard 
Reserve. 
(3) "Reserve component of a uniformed service" means— 
(A) The Army Reserve; 
(B) The Naval Reserve; 
(C) The Marine Corps Reserve; 
(D) The Air Force Reserve; 
(E) The Coast Guard Reserve; 
(F) The Reserve Corps of the Public Health Service; 
(G) The National Guard of the United States; 
(H) The Air National Guard of the United States. 
(4) "Active duty" means (A) full-time duty performed by a 
member of a uniformed service in the active military or naval 
service, other than active duty for training, (B) full-time duty as 
a commisioned officer in the Coast and Geodetic Survey, or in the 
Regular Corps of the Public Health Service, or in the Reserve 
70 STAT.] 
P U B U C LAW 881-AUG. 1, 1956 
869 
Corps of the Public Health Service (other than for training pur-
poses), (C) service as a cadet at the United States Military, Air 
Force, or Coast Guard Academy, or as a midshipman at the 
United States Naval Academy, and (D) authorized travel to or 
from such duty or service. 
(5) "Active duty for training" means (A) full-time duty per- training"! *
*
"
*
^ '°' 
formed by a member of a reserve component of a uniformed 
service in the active military or naval service of the United States 
for training purposes, (B) full-time duty as a commissioned offi-
cer in the Keserve Corps of the Public Health Service for training 
purposes, (C) annual training duty performed for a period of 
fourteen days or more by a member of the Reserve Officers' Train-
ing Corps, the Naval Keserve Officers' Training Corps, or the • 
Air Force Reserve Officers' Training Corps, and (D) authorized 
travel to or from such duty. 
The term does not include duty 
performed as a temporary member of the Coast Guard Reserve. 
(6) (A) "Inactive duty training" means any of the training, tr^'nfng"!^''* *
^
"
*
^ 
instruction, duty, appropriate duties, or equivalent training, 
instruction, duty, appropriate duties, or hazardous duty, per-
formed with or without compensation by a member of a reserve 
component of a uniformed service, prescribed by the appropriate 
Secretary pursuant to section 501 of the Career Compensation 
Act of 1949 or any other provision of law. The term does not 
^^ ^*|^* ^^^' 
include (1) work or study performed by a member of a reserve 
component of a uniformed service in connection with corre-
spondence courses of the Army, Navy, Air Force, Marine Corps, 
Coast Guard, or Public Health Service, (2) attendance at an 
educational institution in an inactive status under the sponsorship 
of the Army, Navy, Air Force, Marine Corps, Coast Guard, or 
Public Health Service, or (3) duty performed as a temporary 
member of the Coast Guard Reserve. 
(B) Any member of a reserve component of a uniformed 
service— 
(i) who, when authorized or required by competent au-
thority, assumes an obligation to perform active duty for 
training or inactive duty training; and 
(ii) who dies from an injury incurred on or after Janu-
ary 1, 1957, by him while proceeding directly to or returning 
directly from such active duty for training or inactive duty 
training, as the case may be; 
shall be deemed to have been on active duty for training or in-
active duty training, as the case may be, and entitled to basic pay 
at the time such injury was incurred. 
For purposes of title III, 
^°®'' P* ^*®' 
except section 303, the Secretary concerned, and for purposes of 
^''*'' P* ^^^' 
title I I and section 303, the Administrator, shall determine 
whether such member of a reserve component of a uniformed 
service was so authorized or required to perform such duty, and 
whether he died from injury so incurred. 
In making such deter-
minations, the Secretary concerned or the Administrator, as the 
case may be, shall take into consideration the hour on which the 
member of a reserve component of a uniformed service began to 
so proceed or so return; the hour on which he was scheduled to 
arrive for, or on which he ceased to perform, such duty; the 
method of travel employed; his itinerary; the manner in which 
the travel was performed; and the immediate cause of death. 
Whenever any claim is filed alleging that the claimant is entitled 
to benefits by reason of this subparagraph, the burden of proof 
shall be upon the claimant. 
860 
PUBLIC LAW 881-AUG. 1, 1966 
[70 ST AT* 
39 Stat. 206-211. 
32 u s e 
62-65, 
144-146, 183. 
Poat, p. 869. 
"Child"; ••Paiw 
ent". 
PoeU P* 884. 
"Widow". 
"Basic pay". 
63Stat. 805, 828. 
37USC232, 308. 
Post, 
p. 862. 
Post, p. 862. 
(C) A member of the National Guard or Air National Guard 
of the several States, Territories, or the District of Columbia, 
when performing training or duty under sections 92, 94, 97, 99, 
or 113 of the National Defense Act of June 3,1916, as amended, 
shall, for the purpose of benefits provided herein, oe considered 
a "member of a reserve component of a uniformed service", and 
training or duty performed by such a member under those sec-
tions of that Act shall be considered "active duty for training", 
or "inactive duty training" as appropriate. 
(7) Except for purposes of title IV, the terms "child" and 
"parent" have the meanings assigned to them by Veterans Regula-
tion Numbered 10, as amended. 
(8) Except for purposes of title IV, the term "widow" means a 
woman who was married to a person— 
(A) before the expiration of fifteen years after the termi-
nation of the period of active duty, active duty for training, 
or inactive duty training, in which the injury or disease 
causing the death of such person was incurred or aggra-
vated ; or 
(B) for five or more years; or 
(C) for any period of time if a child was born of the 
marriage. 
(9) "Secretary concerned" means— 
(A) The Secretary of the Army with respect to the Army; 
(B) The Secretary of the Navy with respect to the Navy 
and Marine Corps; 
(C) The Secretary of the Air Force with respect to the Air 
Force; 
(D) The Secretary of the Treasury with respect to the 
Coast Guard; 
(E) The Secretary of Commerce with respect to the Coast 
and Geodetic Survey; and 
(F) The Secretary of Health, Education, and Welfare 
with respect to the Public Health Service. 
(10) (A) "Basic pay" means the monthly pay prescribed by 
section 201 (a), 201 (e), 201 (f), or 508 of the Career Compensa-
tion Act of 1949, as may be appropriate, for a member of a uni-
formed service on active duty. 
(B) The pay received by members of the Reserve Officers' 
Training Corps, the Naval Reserve Officers' Training Corps, and 
the Air Force Reserve Officers' Training Corps during periods 
of annual training duty of fourteen days or more shall be con-
sidered to be "basic pay , and the rank and years of service of such 
members shall be a rank (and years of service) comparable to the 
pay grade and years of service to which their pajr is related. 
(11) (A) With respect to a member of a uniformed service 
who died while on active duty, active duty for training, or inactive 
duty training, the term "basic pay" (for purposes of title II) 
means the basic pay (as defined in paragraph (10)) prescribed 
on January 1,1957, or on the date of his death (whichever is the 
later date) for a member of a uniformed service on active duty of 
the same rank (with the same cumulative years of service for 
purposes of pay) as that of the deceased member of a uniformed 
service on the date of his death. 
(B) With respect to a deceased member or former member of 
a uniformed service who did not die on active duty, active duty 
for training, or inactive duty training, the term "basic pay" (for 
purposes of title II) means the basic pay (as defined in paragraph 
(10)) prescribed on January 1, 1957, or on the date of his death 
70 STAT.] 
PUBLIC L,AW 881-AUG. 1, 1956 
861 
(whichever is the later date) for a member of a uniformed service 
on active duty of the same rank (with the same cumulative years 
of service for purposes of pay) as that of the deceased member 
or former member of a uniformed service on the date of his last 
discharge or release from active duty under conditions other than 
dishonorable; however, if his death results from disease or injury 
incurred or aggravated while on active duty for training, or from 
injury incurred or aggravated while on inactive duty training, 
after such last discharge or release from active duty, his rank and 
years of service for purposes of pay shall be those held bj[ him on 
the date of his discharge or release from the period of active duty 
for training or inactive duty training in which such injury or 
disease was incurred or aggravated. 
(C) With respect to a deceased person who is not a member 
or former memh^r of a uniformed service, but who had a com-
pensable status on the date of his death under laws administered 
Dy the Veterans' Administration, the head of the department 
under which such person performed the services by which he 
obtained a compensable status shall determine a pay grade for 
such person under section 201 (a) of the Career Compensation 
Act of 1949, as amended, and a rate of pay within that pay grade 
3^ use 232. 
(taking into consideration his duties, responsibilities, and years 
of service). His "basic pay" shall be that prescribed on Jan-
uary 1,1957, or the date of his death, whichever is the later date, 
under such section 201 (a) for the pay grade and rate of pay so 
determined. For the purposes of title II of this Act, only, sucli 
'^°^*' P* ^^^ 
persons shall be deemed to have been on active duty during the 
period of service by which they obtained a compensable status. 
(D) Whenever oasic pay prescribed by section 201 (a), 201 
(e), 201 (f), or 508 of the Career Compensation Act of 1949 is 
37use 232. 308. 
increased or decreased, "basic pay" determined pursuant to this 
paragraph (11) shall increase or decrease accordingly. 
(E) Any person described in paragraph (2) (E) who suffers 
an injury or disease resulting in disability or death while en route 
to or from, or at, a place for final acceptance or entry upon active 
duty in the military or naval service shall be deemed to be on 
active duty when such incident occurs, and to be entitled to the 
basic pay of the pay grade which he would receive upon final 
acceptance or entry upon active duty in such service. 
(F) The Secretary concerned shall, at the request of the 
Administrator, certify to him the basic pay considering rank or 
grade and cumulative years of service for pay purposes of 
deceased persons with respect to whose deaths applications for 
benefits are filed under title I I of this Act. 
The certification of 
^o'^' P' 8*2. 
the Secretary concerned shall be binding upon the Administrator. 
(12) Where an individual is discharged or released on or after 
January 1, 1957, from a period of active duty, such individual 
shall be deemed to continue on active duty and to be entitled to 
basic pay (and any special or incentive pays) at the rate to which 
he was entitled on the day prior to his discharge or release from 
such duty, during the period of time immediately following the 
date of such discharge or release determined by the Secretary con-
cerned to be required for him to proceed to his home by the most 
direct route, and in any event, until midnight of the date of such 
discharge or release. 
862 
PUBLIC LAW 881-AUG. 1, 1956 
[70 STAT. 
TITLE II—DEPENDENCY AND INDEMNITY 
COMPENSATION 
DEATHS ENTITLING SURVIVORS TO DEPENDENCY AND I N D E M N I T Y 
COMPENSATION 
SEC. 201. When any person dies on or after January 1,1957— 
(1) from disease or injury incurred or aggravated in line of 
duty while on active duty or active duty for training; 
(2) from injury incurred or aggravated in line of duty while 
on inactive duty training; or 
(3) from a disability compensable under laws administered 
by the Veterans' Administration, 
the Administrator shall pay dependency and indemnity compensation 
under this title to his widow, children, and dependent parents upon 
application therefor. 
DEPENDENCY AND I N D E M N I T Y COMPENSATION TO A WIDOW 
SEC. 202. (a) Dependency and indemnity compensation shall be 
paid under this title to a widow at a monthly rate equal to $112 plus 
12 per centum of the basic pay of her deceased husband. 
(b) If there are two or more children of a deceased person who have 
not attained the age of eighteen, and the total of th& monthly benefits 
to which the widow and children who have not attained the age of 
eighteen of such deceased person are or would, upon the filing of an 
application, be entitled under— 
(1) section 405 of this Act, 
42usc*4of*403. 
^^^ scctiou 202 of the Social Security Act (after reduction 
Post, pp.' 871*, 
under sectioit203 (a) of such Act but without regard to the de-
*^^* 
duction provisions of such section 203), on the basis of such 
deceased person's earnings, and 
stlt. 686*.' ^'^' ^^ 
(^) section 5 of the Railroad Retirement Act of 1937 (after re-
4 5 us"c 228e, 
ductiou Under section 4 (i) and section 5 (h) of such Act), on the 
^^^^'^' 
basis of such deceased person's earnings, 
is less than the amount described in subsection (d), then the depend-
ency and indemnity compensation paid monthly to the widow pursuant 
to subsection (a) of this section shall be increased by $25 for each child 
who has not attained the age of eighteen in excess of one. 
(c) The total of increases under subsection (b) shall, in any case, 
not exceed an amount equal to— 
(1) the amount described in subsection (d), less 
(2) the total of the monthly benefits to which such widow and 
such children who have not attained the age of eighteen are or 
would, upon the filing of an application, be entitled under— 
(A) section 405 of this Act, 
42 use402,403. 
(B) sectiou 202 of the Social Security Act (after reduction 
876.°"*' ^^* ^^ ' 
under section 203 (a) of such Act but without regard to the 
deduction provisions of such section 203), on the basis of the 
deceased person's earnings, and 
45 use 228e. 
(Q) sectiou 5 of the Railroad Retirement Act of 1937 (after 
reduction under section 4 (i) and section 5 (h) of such Act), 
on the basis of the deceased person's earnings. 
(d) The amount referred to in subsections (b) and (c) (1) is an 
amount equal to the total of the monthly benefits to which a widow 
and two children of a deceased person would be entitled under section 
p^^^^ p°p^.' 8
°
7
^
i
'
, •^^^ ®^ *^e Social Security Act if the deceased person's average monthly 
876. 
' 
* 
' wage had been $160 (after reduction under section 203 (a) of such 
Act but without regard to deduction provisions of such section 203). 
70 S T A T . ] 
PUBLIC LAW 8 8 1 - A U G . 1. 1956 
863 
(e) The amount determined under subsection (a) shall, after in-
crease (if any) under subsection (b), be adjusted by the Administrator 
to the next higher dollar. 
The amount referred to in paragraph (2) 
(A) or (B) or paragraph (2) (C) of subsection (c) shall be deter-
mined by the Secretary of Health, Education, and Welfare, or the 
Kailroad Retirement Board, as the case may be, and shall be certified 
to the Administrator upon his request. 
DEPENDENCY AND INDEMNITY COMPENSATION TO CHILDREN 
SEC. 203. (a) Whenever there is no widow of a deceased person 
entitled to dependency and indemnity compensation under this title, 
dependency and indemnity compensation shall be paid to the children 
of the deceased person at the following rates: 
(1) One child, $70 per month. 
(2) Two children, $100 per month. 
(3) Three children, $130 per month. 
(4) More than three children, $130 per month, plus $25 per 
month for each child in excess of three. 
(b) Dependency and indemnity compensation prescribed by this 
section shall be paid to eligible children in equal shares. 
SUPPLEMENTAL DEPENDENCY AND INDEMNITY COMPENSATION TO 
CHILDREN 
SEC. 204. (a) In the case of a child entitled to dependency and 
indemnity compensation who has attained the age of eighteen and who, 
while under such age, became permanently incapable of self-support, 
the dependency and indemnity compensation paid monthly to him 
shall be increased by $25. 
(b) If dependency and indemnity compensation is payable monthly 
to a woman as a "widow" and there is a child (of her deceased hus-
band) who has attained the age of eighteen and who, while under such 
age, became permanently incapable of self-support, dependency and 
indemnity compensation shall De paid monthly to each such child, con-
currently with the payment of dependency and indemnity compensa-
tion to the widow, in the amount of $70. 
(c) If dependency and indemnity compensation is payable monthly 
to a woman as a "widow" and there is a child (of her deceased hus-
band) who has attained the age of eighteen and who, while under the 
age of twenty-one, is pursuing a course of instruction at an approved 
educational institution, dependency and indemnity compensation 
shall be paid monthly to each such child, concurrently with the pay-
ment of dependency and indemnity compensation to the widow, in 
the amount of $35. 
D E P E N D E N C Y AND INDEMNITY COMPENSATION TO PARENTS 
SEC. 205. (a) Dependency and indemnity compensation shall be 
paia monthly under this title to parents of a deceased person in the 
amounts prescribed by this section. 
(b) Except as provided in subsection (d), if there is only one 
parent, dependency and indemnity compensation shall be paid to him 
864 
PUBLIC LAW 881-AUG. 1, 1956 
[70 ST AT, 
at a monthly rate equal to the amount under column II of the follow-
ing table opposite his total annual income as shown in column I: 
Column I 
Total annual income 
More 
Kqual to at 
than— 
but less than— 
$750 
$1,000 
$1,250 
$1,500 
$1,750 
$750 
$1,000 
$1,250 
$1,600 
$1,760 
Column II 
$76. 
$60. 
$46. 
$30. 
$16. 
No amount payable. 
(c) Except as provided in subsection (d), if there are two parents, 
but they are not living together, dependency and indemnity compen-
sation shall be paid to each at a monthly rate equal to the amount 
under column II of the following table opposite the total annual in-
come of each as shown in column I : 
Column I 
Total annual income 
More 
Equal to or 
than— 
but less than— 
$750 
$1,000 
$1,250 
$1,500 
$1,750 
$750 
$1,000 
$1,250 
$1,500 
$1,750 
Column II 
$60. 
$40. 
$30. 
$20. 
$10. 
No amount payable. 
(d) If there are two parents who are living together, or if a parent 
has remarried and is living with his spouse, dependency and indemnity 
compensation shall be paid to each such parent at a monthly rate 
equal to the amount under column II of the following table opposite 
the total combined annual income of the parents, or of the parent and 
his spouse, as the case may be, as shown in column I: 
Column I 
Total combined annual 
income 
More 
Equal to or 
than— but less than— 
$1,000 
$1,350 
$1,700 
$2,050 
$2,400 
$1,000 
$1,360 
$1,700 
$2,050 
$2,400 
Column II 
$50. 
$40. 
$30. 
$20. 
$10. 
No amount payable. 
(e) The Administrator shall require as a condition of granting or 
continuing dependency and indemnity compensation to a parent that 
such parent file each year with him (on the form prescribed by him) 
a report showing the total income which such parent expects to receive 
in that year and the total income which such parent received in the 
preceding year. The parent or parents shall file with the Adminis-
70 S T A T . ] 
PUBLIC LAW 881-AUG. 1, 1956 
866 
trator a revised report whenever there is a material change in the 
estimated annual income. 
(f) If the Administrator ascertains that there have been overpay-
ments to a parent under this section, he shall deduct such overpay-
ments (unless waived) from any future payments made to such parent 
under this section. 
(g) (1) In determining income under this section, all payments of 
any kind or from any source shall be included, except— 
(A) payments of the six-months'death gratuity; 
(B) donations from public or private relief or welfare organi-
zations ; 
(C) payments under this title; 
(D) payments of death or disability compensation under any 
other law administered by the Veterans' Administration; 
(E) lump-sum death payments under title I I of the Social 
Security Act. 
(2) The Administrator may provide by regulation for the exclusion 
from income under this section of amounts paid by a parent for un-
usual medical expenses. 
49 Stat. 622. 
42 u s e 401-421. 
Post, 
p. 8 6 9 
et aeq. 
DEPENDENCY AND INDEMNITY COMPENSATION I N CASES OF PRIOR DEATHS 
SEC, 206. (a) (1) Any person who, on or after December 31, 1956, 
is eligible as a widow or child for death compensation under any other 
law administered by the Veterans' Administration by reason of a 
death occurring on or before that date may receive dependency and 
indemnity compensation under this title upon application therefor, 
without regard to clause (1) of section 209 (c). 
(2) Any person who, on or after December 31, 1956, is eligible as 
a parent, or, but for his annual income, would be eligible as a parent, 
for death compensation under any other law administered by the 
Veterans' Administration by reason of a death occurring on or before 
that date may receive dependency and indemnity compensation under 
this title upon application therefor, without regard to clause (1) of 
section 209 (c) ; however, the annual income limitations established 
by section 205 shall apply to each such parent. 
(b) (1) Whenever the widow of a deceased person is granted 
dependency and indemnity compensation by reason of this section, 
payments to her and to the children of the deceased person shall there-
after be made under this title, and shall not thereafter be made to 
them by reason of the death of the deceased person under (A) any 
other law administered by the Veterans' Administration providing 
for the payment of compensation or pension or (B) the Federal 
Employees' Compensation Act. 
(2) Whenever the child or parent of any deceased person is granted 
dependency and indemnity compensation by reason of this section, 
payments shall not thereafter be made to such child or parent by 
reason of the death of the deceased person under (A) any other law 
administered by the Veterans' Administration providing for the pay-
ment of compensation or pension or (B) the Federal Employees' 
Compensation Act. 
(c) If children of a deceased person are receiving death compensa-
tion under any other law administered by the Veterans' Administra-
tion, and all such children have not applied for benefits under this 
title, (1) benefits paid to each such child under this title shall not 
exceed the amounts which would be paid if the application had been 
made by, or on behalf of, all such children, and (2) benefits paid to 
each child under any other law administered by the Veterans' Admin-
istration providing for the payment of death compensation or death 
pension, or under the Federal Employees' Compensation Act, shall 
63 Stat. 865. 
5 u s e 751 note. 
5 u s e 751 note. 
5 u s e 751 note. 
69225 O -57 -59 ( V o l . 70) 
PUBLIC LAW 881-AUG. 1, 1956 
[70 ST A T . 
5 u s e 751 note. 
Post, p. 886. 
Post, p. 886. 
Post, p. 886. 
not exceed the amounts which would be paid to him if no such 
application had been made. 
(d) If there are two parents of a deceased person eligible for 
benefits by reason of subsection (a), and an application for benefits 
under this title is not made by both parents, (1) benefits paid to the 
parent who applies therefor shall not exceed the amounts which 
would be paid to him if both parents had so applied, and (2) benefits 
paid to the other parent under any other law administered by the 
Veterans' Administration providing for the payment of death com-
pensation, or under the Federal Employees' Compensation Act, shall 
not exceed the amounts which would be paid to him if no such 
application had been made. 
(e) (1) Except as provided in paragraphs (3) and (4), no person 
who, on January 1,1957, is a principal or contingent beneficiary of any 
payments under the Servicemen's Indemnity Act of 1951 may receive 
any such payments based upon the death giving rise to such payments 
after he has been granted dependency and indemnity compensation by 
reason of this section. No principal or contingent beneficiary who as-
signs his interest in payments under the Servicemen's Indemnity Act 
of 1951 after June 28,1956, may receive any payments under this title 
based upon the death giving rise to such payments until the portion of 
the indemnity so assigned is no longer payable to any person. 
(2) Where a beneficiary is barred from the receipt of payments 
under the Servicemen's Indemnity Act of 1951 by virtue of the first 
sentence of paragraph (1), no payments of the portion of indemnity 
in which such beneficiary had an interest shall be made to any other 
beneficiary. 
(3) In the case of a child who has applied for dependency and in-
demnity compensation pursuant to this section, and who is or becomes 
a beneficiary under the Servicemen's Indemnity Act of 1951 by reason 
of the death giving rise to his eligibility for dependency and in-
demnity compensation, the Administrator shall determine and pay to 
such child for each month, or part thereof, payments under this title 
or under such Act, whichever payment he determines to be the greater 
amount. 
(4) Notwithstanding paragraph (2), where a child receives depen-
dency and indemnity compensation under this title, and thereafter 
dies, the portion of servicemen's indemnity in which such child had 
an interest may be paid (subject to paragraph (3)) to another child 
of the person by reason of whose death such servicemen's indemnity 
was payable. 
63 Stat. 865. 
5 u s e 751 note. 
DETERMINATIONS BY THE VETERANS' ADMINISTRATION 
SEC. 207. The standards and criteria for determining incurrence or 
aggravation of a disease or injury in line of dutj^ under this title shall 
be those applicable under disability compensation laws administered 
by the Veterans' Administration. 
DUPLICATION o r BENEFITS 
SEC. 208. No person eligible for benefits under this title by reason 
of any death occurring on or after January 1, 1957, shall be eligible 
by reason of such death (1) for death compensation or death pension 
under any other law administered by the Veterans' Administration, or 
(2) for any payments under the Federal Employees' Compensation 
Act. 
70 STAT.] 
PUBLIC I^AW 881-AUG. 1, 1966 
867 
ADMINISTRATIVE PROVISIONS 
SEC. 209. (a) This title shall be administered by the Administrator. 
Except as otherwise provided in this Act, the administrative, defini-
tive, and regulatory provisions under Public, Numbered 2, Seventy-
third Congress, as amended, shall be for application under this title. 
3lus^'7oi-72i. 
Dependency and indemnity compensation which is otherwise payable 
to a child shall commence effective the date on which the child's entitle-
ment arose if application is filed within one year from that date; 
otherwise from tne date of filing application. 
(b) Payment of benefits under this title by reason of any application 
filed with respect to a death which occurred before January 1, 1957, 
shall become effective as of the date such application is filed; how-
ever, payment of such benefits by reason of any such application shall 
become effective as of January 1,1957— 
(1) if the application is filed on or before July 1, 1957; or 
(2) if the application is filed within one year after the date 
of such death. 
(c) Dependency and indemnity compensation shall not be paid 
under this title to the widow, children, or parents of any deceased 
person unless the deceased person (1) was discharged or released 
under conditions other than dishonorable from the period of active 
duty, active duty for training, or inactive duty training in which the 
disability was incurred, or (2) died while on active duty, active duty 
for training, or inactive duty training. 
(d) If a child receives or there is paid on account of a child depend-
ency and indemnity compensation, or death compensation under any 
other law administered by the Veterans' Administration, by reason of 
the death of a parent, dependency and indemnity compensation by 
reason of the death of another parent in the same parental line may 
not be paid to or on account of such child. 
(e) No dependency and indemnity compensation shall be paid under 
this title to any woman as a "widow" unless she continuously cohabited 
with her husband from the date of marriage to the date of death 
except where there was a separation which was due to the misconduct 
of or procured by the husband without fault on her part. 
Payments 
of dependency and indemnity compensation shall not be made b;;^ 
reason of the death of her husband to any woman as his "widow" for 
any period after she has remarried, unless the purported remarriage 
is void. 
(f) There shall be no recovery of overpayments under this title 
from any person who, in the judgment of the Administrator, is without 
fault on his part if, in the judgment of the Administrator, such a 
recovery would defeat the purpose of the benefits payable under this 
title or would be against equity and good conscience. No disbursing 
or certifying officer shall be held liable for any amount paid to any 
person where the recovery of such amount from the payee is waived 
under this subsection. 
EXEMPTION FROM TAXATION AND CLAIMS OF CREDITORS 
SEC. 210. Payments of dependency and indemnity compensation 
due or to become due under this title shall not be assignable, shall be 
exempt from taxation, shall be exempt from the claims of creditors, 
including any claim of the United States (except as provided in sec-
tion 3 of the Act of August 12, 1935 (38 U. S. C , sec. 454a)), and 
^9 stat. 609. 
shall not be subject to attachment, levy, or seizure by or under any 
legal or equitable process whatever either before or after receipt by 
the payee. 
Notwithstanding the foregoing provisions of this section, 
868 
PUBLIC LAW 88l-AUG. 1, 1956 
[70 STAT, 
payments of dependency and indemnity compensation due or to 
become due under this title shall not be exempt from levy under the 
provisions of subchapter D of chapter 64 of the Internal Revenue 
2e'^us^c 6*3^31- ^o<i6 of 1954, relating to seizure of property for collection of taxes. 
6344. 
T I T L E III—DEATH GRATUITY 
DEATHS ENTITLING SURVIVORS TO DEATH GRATUITY 
SEC. 301. (a) Except as provided in section 304 (a), the Secretary 
concerned shall have a death gratuity paid immediately upon official 
notification of the death of a member of a uniformed service under his 
jurisdiction who dies while on active duty, active duty for training, or 
inactive duty training. 
(b) The death gratuity shall equal six months' basic pay (plus 
special and incentive pays) at the rate to which the deceased member 
of a uniformed service was entitled on the date of his death, but shall 
not be less than $800 nor more than $3,000. 
(c) The death gratuity shall be paid to or for the living survivor 
or survivors of the deceased member of a uniformed service first listed 
below: 
(1) His spouse. 
(2) His children (without regard to their age or marital status) in 
equal shares. 
(3) His parents or his brothers or sisters (including those of the 
half blood and those through adoption), when designated by him. 
(4) His parents in equal shares. 
(5) His brothers and sisters (including those of the half blood and 
those through adoption) in equal shares. 
(d) If a survivor dies before he receives the amount to which he is 
entitled under this title, such amount shall be paid to the then living 
survivor or survivors first listed under subsection (c). 
IMMEDIATE PAYMENT OP DEATH GRATUITY 
SEC. 302. In order that payments under section 301 may be made 
immediately, the Secretary concerned (1) shall authorize the com-
manding officers of military or naval commands, installations, or dis-
tricts, in which survivors or deceased members of the Army, Navy, Air 
Force, Marine Corps, or Coast Guard are residing, to determine 
the survivors eligible to receive the death gratuity, and (2) shall 
authorize the disbursing or certifying officer of each such command, 
installation, or district to make the payments to the survivors so de-
termined, or certify the payments due to such survivors, as may be 
appropriate. 
DEATH GRATUITY COVERAGE AFTER ACTIVE SERVICE 
SEC. 303. (a) 
The Secretary concerned shall have a death gratuity 
paid in any case where a member or former member of a uniformed 
service dies on or after January 1, 1957, during the one hundred and 
twenty-day period which begins on the day following the date of his 
discharge or release from active duty, active duty for training, or 
inactive duty training, if the Administrator determines that the death 
resulted— 
(1) from disease or injury incurred or aggravated while on 
such active duty or active duty for training; or 
(2) from injury incurred or aggravated while on such inactive 
duty training. 
70 STAT.] 
PUBLIC LAW 881-AUG. 1, 1956 
869 
(b) Whenever the Administrator determines, on the basis of a 
claim for benefits filed with him under title I I of this Act, that a 
^ ' « ' P* ^62. 
death occurred under the circumstances referred to in subsection (a), 
* 
he shall certify that fact to the Secretary concerned; in all other 
cases, he shall make the determination referred to in that subsection 
at the request of the Secretary concerned. 
(c) The standards, criteria, and procedures for determining in-
(iurrence or aggravation of a disease or injury under this section shall 
(except for line of duty) be those applicable under disability compen-
sation laws administered by the Veterans' Administration. 
(d) For purposes of computing the amount of the death gratuity to 
be paid by reason of this section, the deceased person shall be deemed 
to be entitled on the date of his death to basic pay (plus special and 
incentive pays) at the rate to which he was entitled on the last day he 
performed such active duty, active duty for training, or inactive duty 
training. 
(e) No amounts shall be paid by reason of this section unless the 
Administrator determines that the deceased person was discharged 
or released under conditions other than dishonorable from such pe-
riod of active duty, active duty for training, or inactive duty training. 
ADMINISTRATIVE PROVISIONS 
SEC. 304. (a) No payment shall be made under this title if the 
deceased member of a uniformed service suffered death as a result of 
lawful punishment for crime or for a military or naval offense, except 
when death was so inflicted by any hostile force with which the Armed 
Forces of the United States have engaged in armed conflict. 
(b) Payments under this title shall be made from appropriations 
available for the pay of members of the uniformed service concerned. 
(c) A member of a reserve component of a uniformed service who 
performs active duty, active duty for training, or inactive duty train-
ing, without pay, snail, for the purposes of this title only, be con-
sidered as having been entitled to basic pay while performing such 
duties. In the case of a member of a reserve component of a uni-
formed service who suffers disability while on active duty, active 
duty for training, or inactive duty training, and is placed in a pay 
status while he is receiving hospitalization or medical care (includ-
ing out-patient care) for such disability, he shall be deemed, for the 
purposes of this title, to continue on active duty, active duty for 
training, or inactive duty training, as the case may be, for so long as 
he remains in a pay status. 
(d) For purposes of this title, a man or woman shall be considered 
spou.e. 
to be the spouse of a member of a uniformed service if legally married 
to the member of a uniformed service at the time of the member's 
death. 
TITLE IV—OLD-AGE AND SURVIVORS INSURANCE 
PART A—PROVISIONS RELATING TO TITLE I I OF THE SOCIAL SECURITY 
ACT 
DEFINITION OF W A < ^ 
SEC. 401. Section 209 of the Social Security Act is amended by add- 
6^ ^mu 492. 
ing at the end thereof the following new paragraph: 
"For purposes of this title, in the case of an individual performing 
service, as a member of a uniformed service, to which the provisions 
of section 210 (m) (1) are applicable, the term 'wages' shall, subject 
^°^*' P* ^'°* 
to the provisions of subsection (a) of this section, include as such 
870 
PUBLIC LAW 881-AUG. 1, 1966 
[70 STAT. 
individual's remuneration for such service only his basic pay as de-
scribed in section 102 (10) of the Servicemen's and Veterans' Survivor 
Ante, p. 858. 
Benefits Act." 
42 use 410. 
DEFINITION OF EMPLOYMENT 
SEC. 402. (a) Section 210 of the Social Security Act is amended by 
adding at the end thereof the following new subsections: 
"Service in the Uniformed Services 
"(m) (1) Except as provided in paragraph (4), the term 'em-
ployment' shall, notwithstanding the provisions of subsection (a) of 
this section, include service performed after December 1956 by an 
individual as a member of a uniformed service on active duty; but 
such term shall not include any such service which is performed while 
on leave without pay. 
"(2) The term 'active duty' means 'active duty' as described in 
section 102 of the Servicemen's and Veterans' Survivor Benefits Act, 
except that it shall also include 'active duty for training' as described 
in such section. 
"(3) The term 'inactive duty training' means 'inactive duty train-
ing' as described in such section 102. 
"(4) (A) Paragraph (1) of this subsection shall not apply in the 
case of any service, performed by an individual as a member of a 
uniformed service, which is creditable under section 4 of the Railroad 
Post. p. 876. 
Retirement Act of 1937. The Railroad Retirement Board shall notify 
the Secretary of Health, Education, and Welfare, as provided in 
Post, p. 876. 
section 4 (p) (2) of that Act, with respect to all such service which 
is so creditable. 
"(B) In any case where benefits under this title are already payable 
on the basis of such individual's wages and self-employment income at 
the time such notification (with respect to such individual) is re-
ceived by the Secretary, the Secretary shall certify no further benefits 
for payment under this title on the basis of such individual's wages 
and self-employment income, or shall recompute the amount of any 
further benefits payable on the basis of such wages and self-employ-
ment income, as may be required as a consequence of subparagraph 
(A) of this paragraph. 
No payment of a benefit to any person on 
the basis of such individual's wages and self-employment income, 
certified by the Secretary prior to the end of the month in which he 
receives such notification from the Railroad Retirement Board, shall 
be deemed by reason of this subparagraph to have been an erroneous 
payment or a payment to which such person was not entitled. 
The 
Secretary shall, as soon as possible after the receipt of such notifica-
tion from the Railroad Retirement Board, advise such Board whether 
or not any such benefit will be reduced or terminated by reason of 
subparagraph (A), and if any such benefit will be so deduced or ter-
minated, specify the first month with respect to which such reduction 
or termination will be effective. 
"Member of a Uniformed Service 
"(n) The term 'member of a uniformed service' means any person 
appointed, enlisted, or inducted in a component of the Army, Navy, 
Air Force, Marine Corps, or Coast Guard (including a reserve com-
ponent of a uniformed service as defined in section 102 (3) of the 
Ante, p. 858. 
Scrvicemeu's and Veterans' Survivor Benefits Act), or in one of 
those services without specification of component, or as a commissioned 
officer of the Coast and Geodetic Survey or the Regular or Reserve 
Corps of the Public Health Service, and any person serving in the 
V O S T A T . ] 
P U B L I C LAW 881-AUG. 1, 1956 
871 
Army or Air Force under call or conscription. 
The term includes—-
" (1) a retired member of any of those services; 
"(2) a member of the Fleet Keserve or Fleet Marine Corps 
Reserve; 
"(3) a cadet at the United States Military Academy, a mid-
shipman at the United States Naval Academy, and a cadet at the 
United States Coast Guard Academy or United States Air Force 
Academy; 
"(4) a member of the Reserve Officers' Training Corps, the 
Naval Reserve Officers' Training Corps, or the Air Force Reserve 
Officers' Training Corps, when ordered to annual training duty 
for fourteen days or more, and while performing authorized 
travel to and from that duty; and 
"(5) any person while en route to or from, or at, a place for 
final acceptance or for entry upon active duty in the military 
or naval service— 
"(A) who has been provisionally accepted for such duty; 
or 
"(B) who, under the Universal Military Training and 
Service Act, has been selected for active military or naval 
service; 
and has been ordered or directed to proceed to such place. 
The term does not include a temporary member of the Coast Guard 
Reserve." 
(b)The first sentence of section 205 (p) (1) of such Act is amended 
^2 use 405. 
by inserting "including service, performed as a member of a uniformed 
service, to which the provisions of subsection (m) (1) of such section 
are applicable," immediately after "in the employ of any instrumen-
tality which is wholly owned by the United States,". 
LUMP-SUM DEATH PAYMENTS FOR REINTERMENT OF DECEASED VETERANS 
SEC. 403. (a) The fourth sentence of section 202 (i) of the Social 
Security Act is amended to read as follows: "In the case of any indi- 
^2 use 402. 
vidual who died outside the forty-eight States and the District of 
Columbia after December 1953 and before January 1, 1957, whose 
death occurred while he was in the active military or naval service 
of the United States, and who is returned to any of such States, the 
District of Columbia, Alaska, Hawaii, Puerto Rico, or the Virgin 
Islands for interment or reinterment, the provisions of the preceding 
sentence shall not prevent payment to any person under tne second 
sentence of this subsection if application for a lump-sum death pay-
ment with respect to such deceased individual is filed by or on behalf 
of such person (whether or not legally competent) prior to the expi-
ration of two years after the date of such interment or reinterment. 
In the case of any individual who died outside the forty-eight States 
and the District of Columbia after December 1956 while he was per-
forming service, as a member of a uniformed service, to which the 
provisions of section 210 (m) (1) are applicable, and who is returned 
^*«' P* ^'O* 
to any of such States, or the District of Columbia, or to any Territory 
or possession of the United States, for interment or reinterment, the 
provisions of the third sentence of this subsection shall not prevent 
payment to any person under the second sentence of this subsection if 
application for a lump-sum death payment with respect to such de-
ceased individual is filed by or on behalf of such person (whether 
or not legally competent) prior to the expiration of two years after 
the date of such interment or reinterment." 
(b) The amendment made by subsection (a) shall be effective as 
Effective date, 
though it had been enacted on March 31,1956. 
42 use 416. 
872 
PUBLIC LtAW 881-AUG. 1, 1966 
[70 STAT. 
CREDIT FOR MILITARY OR NAVAL SERVICE PERFORMED BEFORE 
JANUARY 1, 1957 
42 us*c 4V7.' 
^^^- ^^^' (^) Section 217 (e) of the Social Security Act is amended 
to read as follows: 
"(e) (1) For purposes of determining entitlement to and the 
amount of any monthly benefit or lump-sum death payment payable 
under this title on the basis of wages and self-employment income 
of any veteran (as defined in paragraph (4)), and for purposes of 
section 216 (i) (3), such veteran shall be deemed to have been paid 
wages (in addition to the wages, if any, actually paid to him) of $160 
in each month during any part of which he served in the active mili-
tary or naval service of the United States on or after July 26, 1947, 
and prior to January 1,1957. This subsection shall not be applicable 
in the case of any monthly benefit or lump-sum death payment if— 
"(A) a larger such benefit or payment, as the case may be, 
would be payable without its application; or 
"(B) a benefit (other than a benefit payable in a lump sum 
unless it is a commutation of, or a substitute for, periodic pay-
ments) which is based, in whole or in part, upon the active mili-
tary or naval service of such veteran on or after July 25, 1947, 
and prior to January 1, 1957, is determined by any agency or 
wholly owned instrumentality of the United States (other than 
the Veterans' Administration) to be payable by it under any other 
law of the United States or under a system established by such 
agency or instrumentality. 
The provisions of clause (B) shall not apply in the case of any monthly 
benefit or lump-sum death payment under this title if its application 
would reduce by $0.50 or less the primary insurance amount (as com-
puted under section 215 prior to any recomputation thereof pursuant 
to subsection (f) of such section) of the individual on whose wages 
and self-employment income such benefit or payment is based. 
The 
provisions of clause (B) shall also not apply for purposes of section 
216 (i) (3). 
In the case of monthly benefits under this title for 
months after December 1956 (and any lump-sum death payment under 
this title with respect to a death occurring after December 1956) based 
on the wages and self-employment income of a veteran who performed 
service (as a member of a uniformed service) to which the provisions 
Ante. p. 870. 
Q£ scctiou 210 (m) (1) are applicable, wages which would, but for the 
provisions of clause (B), be deemed under this subsection to have been 
paid to such veteran with respect to his active military or naval service 
performed after December 1950 shall be deemed to have been paid to 
him with respect to such service notwithstanding the provisions of 
such clause, but only if the benefits referred to in such clause which 
are based (in whole or in part) on such service are payable solely by 
the Army, Navy, Air Force, Marine Corps, Coast Guard, Coast and 
Geodetic Survey or Public Health Service. 
"(2) Upon application for benefits or a lump-sum death payment 
on the basis of the wages and self-employment income of any veteran, 
the Secretary of Health, Education, and Welfare shall make a deci-
sion without regard to clause (B) of paragraph (1) of this subsection 
unless he has been notified by some other agency or instrumentality of 
the United States that, on the basis of the military or naval service 
of such veteran on or after July 25, 1947, and prior to January 1, 
1957, a benefit described in clause (B) of paragraph (1) has been deter-
mined by such agency or instrumentality to be payable by it. 
If he 
has not been so notified, the Secretary of Health, Education, and Wel-
fare shall then ascertain whether some other agency or wholly 
owned instrumentality of the United States has decided that a benefit 
42 use 415. 
70 S T A T . ] 
PUBLIC LAW 88 KADG. 1, 1966 
»r^ 
"Veteran". 
described in clause (B) of paragraph (1) is payable by it. 
If any 
such agency or instrumentality has decided, or thereafter decides, that 
such a Denefit is payable by it, it shall so notify the Secretary of Health, 
Education, and Welfare, and the Secretary shall certify no further 
benefits for payment or shall recompute the amount of any fur-
ther benefits payable, as may be required by paragraph (1) of this 
subsection. 
"(3) Any agency or wholly owned instrumentality of the United 
States which is authorized by any law of the United States to pay 
benefits, or has a system of benefits which are based, in whole or in 
part, on military or naval service on or after July 25, 1947, and prior 
to January 1, 1957, shall, at the request of the Secretary of Health, 
Education, and Welfare, certify to him, with respect to any veteran, 
such information as the Secretary deems necessary to carry out his 
functions under paragraph (2) of this subsection. 
"(4) For the purposes of this subsection, the term 'veteran' means 
any individual who served in the active military or naval service of 
the United States at any time on or after July 25, 1947, and prior to 
January 1, 1957, and who, if discharged or released therefrom, was 
so discharged or released under conditions other than dishonorable 
after active service of ninety days or more or by reason of a disa-
bility or injury incurred or aggravated in service in line of duty; but 
such term shall not include any individual who died while in the 
active military or naval service of the United States if his death was 
inflicted (other than by an enemy of the United States) as lawful 
punishment for a military or naval offense." 
(b) Section 217 of such Act is further amended by adding at the 
end thereof the following new subsection: 
"(f) (1) In any case where a World War I I veteran (as defined in 
subsection (d) (2)) or a veteran (as defined in subsection (e) (4)) has 
died or shall hereafter die, and his widow or child is entitled under the 
Civil Service Retirement Act of May 29, 1930, as amended, to an 
annuity in the computation of which his active military or naval 
service was included, clause (B) of subsection (a) (1) or clause (B) 
of subsection (e) (1) shall not operate (solely by reason of such 
annuity) to make such subsection inapplicable in the case of any 
monthly benefit under section 202 which is based on his wages and 
self-employment income; except that no such widow or child shall be posi'. We, 
entitled under section 202 to any monthly benefit in the computation 
of which such service is included by reason of this subsection (A) 
unless such widow or child after December 1956 waives his or her 
right to receive such annuity, or (B) for any month prior to the first 
month with respect to which the Civil Service Commission certifies 
to the Secretary of Health, Education, and Welfare that (by reason 
of such waiver) no further annuity will be paid to such widow or 
child under such Act of May 29, 1930, as amended, on the basis of 
such veteran's military or civilian service. Any such waiver shall be 
irrevocable. 
"(2) Whenever a widow waives her right to receive such annuity 
such waiver shall constitute a waiver on her own behalf; a waiver by a 
legal guardian or guardians, or, in the absence of a legal guardian, 
the person (or persons) who has the child in his care, of the child's 
right to receive such annuity shall constitute a waiver on behalf of 
such child. 
Such a waiver with respect to an annuity based on a 
veteran's service shall be valid only if the widow and all children, or, 
if there is no widow, all the children, waive their rights to receive 
annuities under the Civil Service Retirement Act of May 29, 1930, as 
amended, based on such veteran's military or civilian service." 
42 use 417. 
46 Stat. 468. 
5 use 691 note. 
Post, p. 877. 
42 use 402. 
An te, p. 8 7 1; 
5 use 691 note. 
Poat, p. 877. 
874 
PUBLIC LiAW 881-AUG. 1, 1956 
[70 8T A T . 
42 u s e 417. 
Ante, p. 872. 
5 u s e 691 note. 
Post, p. 877. 
42 u s e 402. 
Ante, 
p. 8 7 1; 
ost, p. 876. 
Ante, p. 872. 
Ante, p. 873. 
42 u s e 415. 
42 u s e 401-421. 
Ante, p. 869 et 
aeq. 
Ante, p. 873. 
Effective date. 
Ante, p. 872. 
(c) In the case of any deceased individual— 
(1) who is a World War I I veteran (as defined in section 217 
(d) (2) of the Social Security Act) or a veteran (as defined in 
section 217 (e) (4) of such Act); and 
(2) whose widow or child is entitled under the Civil Service 
Retirement Act of May 29,1930, as amended, to an annuity in the 
computation of which his active military or naval service after 
September 15, 1940, and before January 1, 1957, was included; 
and 
(3) whose widow or child is entitled under section 202 of the 
Social Security Act, on the basis of his wages and self-employ-
ment income, to a monthly benefit in the computation of which 
such active military or naval service was excluded (under clause 
(B) of subsection (a) (1) or (e) (1) of section 217 of such Act) 
solely by reason of the annuity described in the preceding para-
graph; and 
(4) whose widow or child is entitled by reason of section 217 
(f) of the Social Security Act to have such active military or 
naval service included in the computation of such monthly bene-
fit, 
the Secretary of Health, Education, and Welfare shall, notwithstand-
ing the provisions of section 215 (f) (1) of the Social Security Act, 
recompute the primary insurance amount of such individual upon 
tlie filing of an application, after December 1956, by or on behalf of 
such widow or child. Such recomputation shall be made only in the 
manner provided in title II of the Social Security Act as in effect at 
tlie time of such individual's death, and as though application therefor 
was filed in the month in which he died. No recomputation made 
under this subsection shall be regarded as a recomputation under sec-
tion 215 (f) of the Social Security Act. 
Any such recomputation 
shall be effective for and after the twelfth month before the month 
in which the application is filed, but in no case for any month before 
the first month with respect to which such widow or child is entitled 
by reason of section 217 (f) of the Social Security Act to have such 
active military or naval service included in the computation of such 
monthly benefits. 
The terms used in this subsection shall have the 
same meaning as when used in title II of the Social Security Act. 
(d) Except for the last sentence of section 217 (e) (1) of the 
Social Security Act as amended by subsection (a) of this section, the 
amendments made by such subsection (a) shall be effective as though 
they had been enacted on March 31, 1956. Such last sentence of sec-
tion 217 (e) (1) of the Social Security Act shall become effective 
January 1, 1957. 
64 Stat. 505. 
42 u s e 414. 
TAYMENT OF BENEFITS IN 
CERTAIN CASES OF IN-SERVICE OR SERVICE-
CONNECTED DEATHS 
SEC. 405. (a) In the case of any individual— 
(1) who dies after December 1956 and is not a fully and cur-
rently insured individual (as defined in section 214 of the Social 
Security Act) at the time of his death; and 
(2) whose death occurs— 
(A) while on active duty, active duty for training, or 
inactive duty training as a member of a uniformed service; or 
(B) as the result of a disease or injury which the Admin-
istrator determines was incurred or aggravated in line of 
duty while on active duty or active duty for training, or an 
injury which the Administrator determines was incurred or 
aggravated in line of duty while on inactive duty training, as a 
member of a uniformed service after September 15, 1940, if 
70 S T A T . ] 
PUBLIC LAW 881-AUG. 1, 1956 
876 
the Administrator determines that such individual was dis-
charged or released from the period of such active duty, active 
duty for training, or inactive duty training under conditions 
other than dishonorable; and 
(3) who leaves one or more survivors who are not entitled for 
any month to monthly benefits under section 202 of the Social 
Security Act on the basis of his wages and self-emplo;y^ment income 
l^^Y^^ ^°\ 
but who would, upon application therefor, be entitled to such pos"p!'876. 
benefits if he had been both fully and currently insured at the 
time of his death; 
the Administrator shall pay for such month benefits under this sec-
tion to each such survivor in an amount equal to the amount of the 
benefits which would have been paid for such month to such survivor 
under title I I of the Social Security Act, if such individual had been ^Ye,^^.°l'69^^'et 
both fully and currently insured at the time of his death and if such seq. 
survivor had filed application therefor on the same date on which 
application for benefits under this section is filed with the Admin-
istrator, 
(b) The determination (other than a determination required by 
subsection (a) (2)) as to whether any survivor described in subsection 
(a) (3) of a deceased individual would be entitled to benefits under 
section 202 of the Social Security Act for any month and as to the 
1^„V|,^ p^\ 71-
amount of the benefits which would be paid for such month, if the poat, p.'876. 
deceased individual had been a fully and currently insured individual 
at the time of his death, shall be made by the Secretary of Health, 
Education, and Welfare, and shall be certified by him to the Admin-
istrator upon request of the Administrator. 
(c) Upon the basis of estimates made by the Secretary of Health, 
Education, and Welfare after consultation with the Administrator, 
the Administrator shall pay to the Secretary an amount equal to the 
costs which will be incurred in making determinations and certifica-
tions under subsection (b). Such payments shall be made with respect 
to the costs incurred during such period (but not shorter than a calen-
dar quarter) as the Secretary and the Administrator may prescribe. 
The amount payable for any period shall be increased or reduced to 
compensate for any underpayment or overpayment, as the case may be, 
of the costs incurred in any preceding period. 
(d) Except with respect to determinations made under subsection 
(b), the Administrator shall prescribe such regulations as may be 
necessary to carry out the provisions of this section. 
REIMBURSEMENT OF TRUST FUND FOR COST OF WAGE CREDITS FOR CERTAIN 
MILITARY SERVICE 
SEC. 406. Section 217 of the Social Security Act is amended by 
'^'«' P* S^S. 
adding after subsection (f), (as added by section 404 (b) of this Act) 
the following new subsection: 
"(g) (1) There are hereby authorized to be appropriated to the 
Trust Fund annually, as benefits under this title are paid after June 
1956, such sums as the Secretary of Health, Education, and Welfare 
determines to be necessarj'^ to meet the additional costs, resulting 
from subsections (a), (b), and (e), of such benefits (including lump-
sum death payments). 
"(2) The Secretary shall, before October 1, 1958, determine the 
amount which would place the Trust Fund in the same position in 
which it would have been at the close of June 30, 1956, if section 210 
of this Act, as in effect prior to the Social Security Act Amendments 
^2 use 410. 
of 1950, and section 217 of this Act (including amendments thereof), 
42usc*'3oinote. 
had not been enacted. 
There are hereby authorized to be appropri-
ated to the Trust Fund annually, during the first ten fiscal years 
876 
PUBLIC LAW 881-AUG. 1, 1956 
[70 STAT. 
beginning after such determination is made, sums aggregating the 
amount so determined, plus interest accruing on such amount (as re-
duced by appropriations made pursuant to this paragraph) for each 
fiscal year beginning after June 30,1956, at a rate for such fiscal year 
equal to the average rate of interest (as determined by the Managing 
Trustee) earned on the invested assets of the Trust Fund during the 
preceding fiscal year." 
REQUIREMENT OF APPLICATION 
^2 use 402. 
SEC. 407. Section 202 of the Social Security Act is amended by 
adding at the end thereof the following new subsection: 
"Application for Benefits by Survivors of Members and Former 
Members of the Uniformed Services 
"(o) In the case of any individual who would be entitled to bene-
fits under subsection (d), (e), (g),or (h) upon filing proper applica-
tion therefor, the filing with the Administrator of Veterans' Affairs 
by or on behalf of such individual of an application for such benefits, 
Post, p. 886. 
QYi the form prescribed under section 601 of the Servicemen's and 
Veterans' Survivor Benefits Act, shall satisfy the requirement of such 
subsection (d), (e), (g), or (h) that an application for such benefits 
be filed." 
AMENDMENTS RELATING TO RAILROAD RETIREMENT 
45usc*228?:i. 
SEC. 408. (a) Section 4 of the Railroad Retirement Act of 1937 is 
amended by adding at the end thereof the following new subsections: 
"(p) (1) Military service rendered by an individual after Decem-
ber 1956 shall be creditable under this section only if the number of 
such individual's j^ears of service is ten or more (including, in such 
years of service, military service which, but for this subsection, would 
De creditable under this section). 
"(2) In any case where an individual has completed ten or more 
years of service and such years of service include any military service 
rendered after December 1956, the Board shall as promptly as is 
practicable (A) notify the Secretary of Health, Education, and Wel-
fare that such military service is creditable under this section and (B) 
specify the period or periods of the military service tendered after 
December 1956 which is so creditable. 
"(q) Notwithstanding the provisions of this section and section 2 
(c) (2), military service rendered by an individual after December 
1956 shall not be used in determining eligibility for, or computing the 
amount of, any annuity accruing under section 2 for any month if (1) 
any benefits are payable for that month under title II of the Social 
A^n"^^p.°86^9'et Security Act on the basis of such individual's wages and self-employ-
aeq. 
' ' 
meiit iiicome, (2) such military service was included in the computa-
tion of such benefits, and (3) the inclusion of such service in the com-
putation of such benefits resulted (for that month) in benefits not 
otherwise pavable or in an increase in the benefits otherwise payable. 
Ante, p. 858. 
"(r) The Secretary concerned (as defined in section 102 (9) of the 
Servicemen's and Veterans' Survivor Benefits Act) shall maintain 
such records, and furnish the Board upon its request with such in-
formation, regarding the months of any individual's military service 
and the remuneration paid therefor, as may be necessary to enable the 
4 5 use 2 2 8b, Board to carry out its duties under this section and sections 2 and 5." 
(b) (1) The first sentence of section 4 (n) of the Railroad Retire-
ment Act of 1937 is amended— 
* 
* 
(A) by striking out " ( i ) " and "(ii)" and inserting in lieu 
thereof "(1)" and "(2)", respectively; 
70 STAT.] 
PUBLIC LAW 881-AUG. 1, 1956 
877 
(B) by striking out "for military service after December 31, 
1936" and inserting in lieu thereof "for military service after 
December 31,1936, and prior to January 1, 1957"; and 
(C) by inserting before the period at the end thereof a comma 
and the following: "and (3) an amount found by the Board to be 
equal to (A) the amount of the total additional excise and income 
taxes which would have been payable during the preceding fiscal 
year under chapter 22 of the Internal Revenue Code of 1954 with 
ol^us^c sVo 
respect to the compensation, as defined in such chapter, of all 3233. 
individuals entitled (without regard to subsection (p) (1) of this 
section) to credit under this Act for military service after Decem-. 
ber 1956 if each of such individuals, in addition to compensation 
actually paid, had been paid such compensation in the amount of 
$160 in each calendar month in which he was in such military 
service during such preceding fiscal year and such taxes were 
measured by all such compensation without limitation as to 
amount paid to any individual in any one calendar month, less 
(B) the amount of the taxes which were paid with respect to such 
military service under sections 3101 and 3111 of the Internal ,.\\ ^sc 3101, 
Revenue Code of 1954". 
. 
(2) Section 4 (n) of such Act is further amended by adding at the 
end thereof the following new sentence: "In determining pursuant to 
section 5 (k) (2) for any fiscal year the total amount to be credited 
from the Railroad Retirement Account to the Old-Age and Survivors 
Insurance Trust Fund, credit shall be given such Account for the 
amount of the taxes described in clause (3) (B) of the first sentence of 
this subsection." 
(c) Section 1 (q) of the Railroad Retirement Act of 1937 is amended 
J| s^°^- ^^^l' 
by striking out "as amended in 1954" and inserting in lieu thereof "as 
Ante, p. 836. 
amended in 1956". 
ANNUITIES UNDER THE CIVIL SERVICE RETIREMENT ACT 
SEC. 409. Section 5 of the Civil Service Retirement Act of May 29, 
g^ulc^Vo??* 
1930, as amended, is amended by inserting after the second paragraph 
thereof the following new paragraph: 
"Notwithstanding any other provision of this section, any service 
(other than service covered by military leave with pay from a civilian 
position) performed by an individual after December 1956 as a mem-
ber of a uniformed service on active duty or active duty for training 
(as those terms are defined in section 102 of the Servicemen's and 
Veterans' Survivor Benefits Act) shall be excluded in determining the 
aggregate period of service upon which an annuity payable under this 
Act to such individual or to his widow or child is to be based, if such 
individual or widow or child is entitled (or would upon proper appli-
cation be entitled), at the time of such determination, to monthly old-
age or survivors benefits under section 202 of the Social Security Act 
^^^l^ ^^^'ari 
based on such individual's wages and self-employment income. If 876. 
' 
* 
' 
in the case of the individual or widow such service is not excluded 
under the preceding sentence, but upon attaining retirement age (as 
defined in section 216 (a) of the Social Security Act) he or she becomes 
^^ ^^^ ^^^' 
entitled (or would upon proper application be entitled) to such bene-
fits, the Commission shall redetermine the aggregate period of service 
upon which such annuity is based, effective as of the first day of the 
month in which he or she attains such age, so as to exclude such service. 
The Secretary of Health, Education, and Welfare shall, upon the 
request of the Commission, inform the Commission whether or not any 
such individual or widow or child is entitled at any specified time to 
such benefits." 
Ante, p. 858. 
878 
PUBLIC LAW 881-AUG. 1, 1956 
[70 STAT. 
. 
PART B—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954 
DEFINITION OF WAGES 
26ljic*im!' 
^^^' ^10. Section 3121 (i) of the Internal Revenue Code of 1954 is 
amended to read as follows: 
"(i) COMPUTATION OF WAGES IN CERTAIN CASES.— 
"(1) DOMESTIC SERVICE.—For purposes of this chapter, in the 
case of domestic service described in subsection (a) (7) (B), 
any payment of cash remuneration for such service wnich is 
more or less than a whole-dollar amount shall, under such condi-
tions and to such extent as may be prescribed by regulations made 
under this chapter, be computed to the nearest dollar. For the 
purpose of the computation to the nearest dollar, the payment of 
a fractional part of a dollar shall be disregarded unless it amounts 
to one-half dollar or more, in which case it shall be increased 
to $1. The amount of any payment of cash remuneration so 
computed to the nearest dollar shall, in lieu of the amount 
actually paid, be deemed to constitute the amount of cash re-
muneration for purposes of subsection (a) (7) (B). 
"(2) SERVICE IN THE UNIFORMED SERVICES.—For purposes of 
this chapter, in the case of an individual performing service, as 
, , 
a member of a uniformed service, to which the provisions of 
'•"'«'• 
subsection (m) (1) are applicable, the term'wages'shall, subject 
to the provisions of subsection (a) (1) of this section, include 
as such individual's remuneration for such service only his basic 
Ante, p. 858. 
^^y ^g described in section 102 (10) of the Servicemen's and 
Veterans' Survivor Benefits Act." 
DEFINITION OF EMPLOYMENT 
SEC. 411. (a) Section 8121 of the Internal Revenue Code of 1954 
is amended by adding at the end thereof the following new subsections: 
; 
, 
"(m) SERVICE IN THE UNIFORMED SERVICES.—For purposes of this 
chapter— 
"(1) INCLUSION OF SERVICE.—The term 'employment' shall, 
. 
notwithstanding the provisions of subsection (b) of this section, 
include service performed after December 1956 by an individual 
as a member of a uniformed service on active duty; but such term 
shall not include any such service which is performed while 
on leave without pay. 
"(2) ACTIVE DUTY.—The term 'active duty' means 'active duty' 
Ante, p. 858. 
^g described in section 102 of the Servicemen's and Veterans' Sur-
vivor Benefits Act, except that it shall also include 'active duty 
for training' as described in such section. 
"(3) INACTIVE DUTY TRAINING.—The term 'inactive duty train-
ing' means 'inactive duty training' as described in such section 102. 
"(n) MEMBER OF A UNIFORMED SERVICE.—For purposes of this 
chapter, the term 'member of a uniformed service' means any person 
appointed, enlisted, or inducted in a component of the Army, Navy, 
Air Force, Marine Corps, or Coast Guard (including a reserve corn-
Ante, p. 858. 
ponent of a uniformed service as defined in section 102 (3) of the 
Servicemen's and Veterans' Survivor Benefits Act), or in one of those 
services without specification of component, or as a commissioned 
officer of the Coast and Geodetic Survey or the Regular or Reserve 
Corps of the Public Health Service, and any person serving in the 
Army or Air Force under call or conscription. The term includes— 
" (1) a retired member of any of those services; 
"(2) a member of the Fleet Reserve or Fleet Marine Corps 
Reserve; 
70 STAT.] 
PUBLIC LAW 881-AUG. 1, 1956 
879 
"(3) a cadet at the United States Military Academy, a mid-
shipman at the United States Naval Academy, and a cadet at 
the United States Coast Guard Academy or United States Air 
Force Academy; 
"(4) a member of the Reserve Officers' Training Corps, the 
Naval Reserve Officers' Training Corps, or the Air Force Reserve 
Officers' Training Corps, when ordered to annual training duty 
for fourteen days or more, and while performing authorized travel 
to and from that duty; and 
"(5) any person while en route to or from, or at, a place for 
final acceptance or for entry upon active duty in the military or 
naval service— 
"(A) w^ho has been provisionally accepted for such duty; 
or 
"(B) who, under the Universal Military Training and 
Service Act, has been selected for active military or naval 
fo^u^s c^^app. 
service; 
451. 
and has been ordered or directed to proceed to such place. 
The term does not include a temporary member of the Coast Guard 
Reserve." 
(b) The first sentence of section 3122 of the Internal Revenue Code 
^^ "^^ ^^^2. 
of 1954 is amended by inserting "including service, performed as a 
member of a uniformed service, to which the provisions of section 
3121 (m) (1) are applicable," immediately after "in the employ of 
any instrumentality which is wholly owned by the United States,". 
(c) Section 3122 of the Internal Revenue Code of 1954 is further 
amended by inserting after the second sentence thereof the following 
new sentence: "Payments of the tax imposed under section 3111 with 
^e use 3in. 
respect to service, performed by an individual as a member of a uni-
formed service, to which the provisions of section 3121 (m) (1) are 
applicable, shall be made from appropriations available for the pay 
01 members of such uniformed service." 
RECEIPTS rOR EMPLOYEES 
SEC. 412. (a) Section 6051 (a) of the Internal Revenue Code of 
1954 is amended by adding at the end thereof the following new 
oe'^icf^osV' 
sentence: "In the case of compensation paid for service as a member 
of a uniformed service, the statement shall show, in lieu of the amount 
required to be shown by paragraph (5), the total amount of wages 
as defined in section 3121 (a), computed in accordance with such 
section and section 3121 (i) (2)." 
Ante. p. 878. 
(b) Section 6051 (b) of the Internal Revenue Code of 1954 is 
amended to read as follows: 
"(b) 
SPECIAL RULE AS TO COMPENSATION OF MEMBERS or ARMED 
FORCES.—In the case of compensation paid for service as a member 
of the Armed Forces, the statement required by subsection (a) shall 
be furnished if any tax was withheld during the calendar year under 
section 3402, or if any of the compensation paid during such year is 
26 use 3402. 
includible in gross income under chapter 1, or if during the calendar 
year any amount was required to be withheld as tax under section 
3101. In lieu of the amount required to be shown by paragraph (3) 
26 use a 101. 
of subsection (a), such statement shall show as wages paid during 
the calendar year the amount of such compensation paid during the 
calendar year which is not excluded from gross income under chapter 
1 (whether or not such compensation constituted wages as defined 
26useietseq. 
in section 3401 (a))." 
26 use 340i. 
880 
PUBLIC L,AW 881-AUG. 1, 1956 
[70 STAT. 
TITLE V—AMENDMENTS AND REPEALS 
AMENDMENTS 
65 Stat. 36. 
SEC. 501. (a) (1) Section 620 of the National Service Life Iiisuraiice 
38 use 821, 
^^^ Q^ -j^Q^Q -g amended by striking out the last sentence and inserting 
in lieu thereof the following: "Any member of a uniformed service 
(as that term is defined in section 102 of the Servicemen's and Vet-
Ante, p. 858. 
eraus' Survivor Benefits Act) while on active duty, active duty for 
training, or inactive duty training (as those terms are defined in such 
section) shall be deemed to be in the active service for the purpose of 
applying for insurance under this section; however, as to persons in-
curring a disability under the conditions provided in section 102 (11) 
(E) of such Act, application for insurance must be filed under this 
section within one year after the incurrence of such disability." 
38 use 822. 
(2) Section 621 of the National Service Life Insurance Act of 1940 
is amended by adding at the end thereof the following: 
"(c) No insurance shall be granted to any person under this section 
on or after January 1, 1957, unless prior to such date an acceptable 
application accompanied by proper and valid remittances or authori-
zations for the payment of premiums (1) was received by the Veterans' 
Administration, (2) was placed in the mails properly directed to the 
Veterans' Administration, or (3) was delivered to an authorized rep-
resentative of any of the uniformed services." 
38 use 823. 
^3^ ^^^ Section 622 of the National Service Life Insurance Act 
of 1940 is amended by inserting " ( a ) " immediately after "SEC. 622.", 
and by adding at the end thereof the following: 
"(b) Notwithstanding the provisions of subsection (a), no applica-
tion for waiver of premiums may be made after December 31, 1956, 
except applications therefor filed pursuant to the first proviso of sub-
section (a)." 
(B) Except as herein otherwise provided, where an individual dies 
on or after May 1, 1957, and at the time of his death has in effect a 
policy of national service life insurance or United States Government 
life insurance under waiver of premiums under section 62f2 of the 
National Service Life Insurance Act of 1940, no dependency and in-
demnity compensation shall be paid under this Act to his widow, chil-
dren, or parents by reason of his death, but death compensation may 
be paid under laws administered by the Veterans' Administration to 
such widow, children, or parents by reason of his death, notwithstand-
ing the fact that such death occurred after December 31, 1956. In no 
event shall the foregoing provision be applicable with respect to any 
person entitled to waiver of premiums under the first proviso to section 
622 (a) of the National Service Life Insurance Act of 1940, as 
amended, whose death occurs prior to his return to military jurisdic-
tion or within one hundred and twenty days thereafter. 
(4) The National Service Life Insurance Act of 1940 is amended 
by adding at the end thereof the following: 
"SEC. 623. (a) Any person who surrendered a policy of National 
Service life insurance or United States Government life insurance on 
a permanent plan for its cash value while in the active service on or 
after April 25,1951, and prior to January 1,1957, may, upon applica-
tion in writing made while in the active service or within one hundred 
and twenty days after separation from the active service, be granted, 
without medical examination, permanent plan insurance on the same 
plan not in excess of the amount surrendered for cash, or may reinstate 
such surrendered insurance upon payment of the required reserve and 
the premium for the current month. Waiver of premiums and total 
disability income benefits otherwise authorized under this Act or the 
43 Stat. 607. 
World War Veterans' Act, 1924, as amended, shall not be denied in 
3o u s e ^z i« 
Post, 
pp. 883, 
885. 
70 S T A T . ] 
PUBLIC LiAW 881-AUG. 1, 1956 
881 
any case of issue or reinstatement of insurance on a permanent plan 
under this section in which it is shown to the satisfaction of the Admin-
istrator that total disability of the applicant commenced prior to the 
date of application. 
The cost of the premiums waived and total 
disability income benefits paid by virtue of the preceding sentence and 
the excess mortality cost in any case where the insurance matures by 
death from such total disability shall be borne by the United States 
and the Administrator is authorized and directed to transfer from 
time to time from the National Service life insurance appropriation to 
the National Service Life Insurance Fund and from the military and 
naval insurance appropriation to the United States Government Life 
Insurance Fund such sums as may be necessary to reimburse the funds 
for such costs. 
"(b) Any person who had United States Government life insurance 
or National Service life insurance on the five-year level premium term 
plan, the term of which expired while he was in the active service after 
April 25, 1951, or within one hundred and twenty days after separa-
tion from such active service, and in either case prior to January 1, 
1957, shall, upon application made while in the active service or within 
one hundred and twenty days after separation from active service, 
payment of premiums and evidence of good health satisfactory to the 
Administrator, be granted an equivalent amount of insurance on the 
five-year level premium term plan at the premium rate for his then 
attained age. 
"(c) Persons deemed to be in the active service for the purposes of 
section 5 of the Servicemen's Indemnity Act of 1951 shall be deemed to 
^°^^' ^' ®
^
^
* 
be in the active service for the purposes of this section." 
(5) Section 619 of the National Service Life Insurance Act of 1940 
38 use 82o. 
is amended by striking out "sections 620 and 621'' and inserting in lieu 
thereof "sections 620, 621, and 623". 
(b) (1) Section 212 of the Public Health Service Act (42 U. S. C , 
^^ ^tat. 689. 
sec. 213) is amended to read as follows: 
"MILITARY BENEFITS 
"SEC. 212. (a) Except as provided in subsection (b), commissioned 
officers of the Service and their surviving beneficiaries shall, with re-
spect to active service performed by such officers— 
" (1) in time of war; 
"(2) on detail for duty with the Army, Navy, Air Force, 
Marine Corps, or Coast Guard; or 
"(3) while the Service is part of the military forces of the 
United States pursuant to Executive order of the President; 
he entitled to all rights, privileges, immunities, and benefits now or 
hereafter provided under any law of the United States in the case of 
commissioned officers of the Army or their surviving beneficiaries on 
account of active military service, except retired pay and uniform 
allowances. 
"(b) The President may prescribe the conditions under which com-
missioned officers of the Service may be awarded military ribbons, 
medals, and decorations. 
"(c) The authority vested by law in the Department of the Army, 
the Secretary of the Army, or other officers of the Department of the 
Army with respect to rights, privileges, immunities, and benefits 
referred to in subsection (a) shall be exercised, with respect to com-
missioned officers of the Service, by the Surgeon General. 
"(d) Active service of commissioned officers of the Service shall be 
deemed to be active military service in the Armed Forces of the United 
States for the purposes of all laws administered by the Veterans' 
69225 O -57 -60 (Vol. 70) 
Ante, p. 871. 
882 
PUBLIC LiAW 881-AUG. 1, 1956 
[70 STAT. 
Post, p. 886. 
Administration (except the Servicemen's Indemnity Act of 1951) 
873" 875.^^' ^^^' ^^^ section 217 of the Social Security Act." 
(2) The amendment made by this subsection (A) shall apply only 
with respect to service performed on or after July 4, 1952, (B) shall 
not be construed to affect the entitlement of any person to benefits 
38us^*9o 1 note, ^uder the Veterans' Readjustment.Assistance Act of 1952, (C) shall 
not be construed to authorize any payment under section 202 (i) of 
the Social Security Act, or under Veterans Regulation Numbered 9 
asuscch. i2A. 
(a), for any death occurring prior to January 1, 1957, and (D) shall 
not be construed to authorize payment of any benefits for any period 
prior to January 1, 1957. 
(3) In the case of any individual— 
(A) who performed active service (i) as a commissioned officer 
of the Public Health Service at any time during the period begin-
ning July 4,1952, and ending December 81,1956, or (ii) as a com-
missioned officer of the Coast and Geodetic Survey at any time 
during the period beginning July 29, 1945, and ending Decem-
ber 31,1956; and 
(B) (i) who became entitled to old-age insurance benefits 
42 use 402. 
under section 202 (a) of the Social Security Act prior to January 
1, 1957, or 
(ii) who died prior to January 1,1957, and whose widow, child, 
or parent is entitled for the month of January 1957, on the basis 
of his wages and self-employment income, to a monthly survivor's 
g^l"'«' pp. 871. 
benefit under section 202 of such Act; and 
(C) any part of whose service described in subparagraph (A) 
was not included in the computation of his primary insurance 
42 use 415. 
amount under section 215 of such Act but would have been in-
cluded in such computation if the amendment made by paragraph 
(1) of this subsection or paragraph (1) of subsection (d) had 
been effective prior to the date of such computation, 
the Secretary of Health, Education, and Welfare shall, notwithstand-
ing the provisions of section 215 (f) (1) of the Social Security Act, 
recompute the primary insurance amount of such individual upon 
the filing of an application, after December 1956, by him or (if he 
dies without filing such an application) by any person entitled to 
42 use 402. 
monthly survivor's benefits under section 202 of such Act on the basis 
876." ^' ^^' 
' of his wages and self-employment income. 
Such recomputation shall 
be made only in the manner provided in title I I of the Social Security 
42 use 401-421. j^ct as in effect at the time of the last previous computation or recom-
et seq.^' ^' 
putatiou of such individual's primary insurance amount, and as 
though application therefor was filed in the month in which applica-
tion for such last previous computation or recomputation was filed. 
No recomputation made under this paragraph shall be regarded as a 
recomputation under section 215 (f) of the Social Security Act. Any 
such recomputation shall be effective for and after the twelfth month 
before the month in which the application was filed, but in no case 
for any month before January 1957. 
5\j|*c*2o'9f' 
^^) ^^^ Section 2 of the Federal Employees' Group Life Insurance 
Act of 1954 is amended by striking out all after "District of Columbia" 
in subsection (b) and inserting in lieu thereof a period, and by adding 
at the end of such section the following new subsection: 
"(c) No person shall acquire insurance coverage under this Act by 
virtue of his status as a member of a uniformed service. The insurance 
granted to any employee under this Act (1) shall cease (except for a 
thirty-one day extension of life insurance coverage) on the day im-
mediately prior to his entry on active duty or active duty for training, 
unless the period of such duty is covered by military leave with pay 
from a civilian position, and (2) shall not cease during any period of 
70 S T A T . ] 
PUBLIC LAW 881-AUG. 1, 1956 
883 
inactive duty training. 
The terms used in this subsection shall have 
the meanings assigned to them by section 102 of the Servicemen's and 
Veterans' Survivor Benefits Act." 
^"'^' P- ^^*-
(2) The amendments made by this subsection shall not apply with 
respect to deaths occurring prior to January 1, 1957, nor shall such 
amendments apply with respect to insurance granted prior to January 
1, 1957, under the Federal Employees' Group Life Insurance Act of 
1954 to commissioned officers of the Coast and Geodetic Survey or of 
s use 2091 note, 
the Regular or Eeserve Corps of the Public Health Service. 
No 
dependency and indemnity compensation shall be payable under this 
Act to any widow, child, or parent of any such commissioned officer 
if any amounts are payable under such insurance'by reason of the 
death of such officer occurring on or after May 1, 1957. 
(d) (1) The second sentence of the second paragraph of section 
16 of the Act of May 22, 1917 (33 U. S. C, sec. 857), is amended to 
^o stat. 88. 
read as follows: "Active service of commissioned officers of the Coast 
and Geodetic Survey shall be deemed to be active military service for 
the purposes of all laws administered by the Veterans' Administration 
(except the Servicemen's Indemnity Act of 1951) and section 217 of 
^°^*' P* 88^' 
the Social Security Act, and for the purposes of section 210 of the s'/l^s?^^^' *^^' 
Social Security Act as in effect prior to the Social Security Act 
Amendments of 1950." 
42 use 410. 
(2) The amendment made by this subsection (A) shall apply only 
with respect to service performed on or after July 29, 1945, (B) shall 
not be construed to affect the entitlement of any person to benefits 
under the Veterans' Readjustment Assistance Act of 1952, (C) shall 
^^ use 901 note, 
not be construed to authorize any payment under section 202 (i) of the 
Social Security Act, or under Veterans Regulation Numbered 9 (a), 
^us^ch.V2A. 
for any death occurring prior to January 1, 1957, and (D) shall not 
be construed to authorize payment of any benefits for any period prior 
to January 1, 1957. 
(e) Section 40 (b) of the Federal Employees' Compensation Act 
(5 U. S. C , sec. 790 (b)) is amended— 
^^ ^'^'' "°-
(1) by striking out clauses (2) and (3) and redesignating 
clauses (4) and (5) as clauses (2) and (3), respectively; and 
(2) by inserting immediately after "United States" the second 
time it occurs in the parenthetical phrase in clause (1) the follow-
ing : ", but excluding commissioned officers of the Regular Corps 
of the Public Health Service, commissioned officers in the Reserve 
Corps of the Public Health Service on active duty, and commis-
sioned officers of the Coast and Geodetic Survey". 
(f) Section 304 of the Naval Reserve Act of 1938 (34 U. S. C , sec. 
855c) is amended (1) by striking out all beginning with "If in time 
^2 stat. 11 si. 
of peace" through '^Provided further, That" in the third proviso and 
inserting in lieu thereof "(a) In time of peace", and (2) by adding 
at the end thereof the following: 
"(b) For the purposes of paragraph I (a) of part I I of Veterans 
Regulation Numbered 1 (a), all members of the Naval Reserve shall 
38 usech. 12A. 
be considered as performing active military or naval service when 
injured while performing active duty with or without pay, training 
duty with or without pay, drills, equivalent instruction or duty, 
appropriate duty, or other prescribed duty, or while performing 
authorized travel to or from such duties." 
(g) Section 2 of the Act of August 12, 1935 (38 U. S. C, sec. 
"^^ stat. 609. 
556a), is amended by inserting immediately after "Public Law Num-
bered 484, Seventy-third Congress," the following: "the Servicemen's 
and Veterans' Survivor Benefits Act,". 
(h) (1) The first sentence of paragraph (1) of section 21 of the 
'^^ ^tat. 607. 
World War Veterans' Act, 1924 (38 U. S. C , sec. 450), is amended 
884 
PUBLIC LAW 881-AUG. 1, 1956 
[70 STAT. 
by inserting immediately after "payment of compensation,"' the fol-
lowing : "dependency and indemnity compensation,-'. 
(2) The first sentence of paragraph (3) of such section is amended 
by inserting immediately after "the compensation," the following: 
"dependency and indemnity compensation,". 
(i) The paragraph under the heading "Transfer of Appropria-
tions" which begins "Army of the Philippines," in the Act of February 
18, 1946 (60 Stat. 14), as amended (38 U. S. C. 38), is amended by 
striking out all beginning with "and (2)", and inserting in lieu thereof 
the following: "(2) laws administered by the Veterans' Administra-
tion providing for the payment of compensation or dependency and 
indemnity compensation on account of service-connected disability 
or death, and (3) the Missing Persons Act (56 Stat 143) as amended 
(50 U. S. C. App. 1001 and the following) : Provided further, 
That 
such compensation or dependency and indemnity compensation shall 
be paid at the rate of one Philippine peso for each dollar authorized 
to be paid under the laws providing for such compensation or depend-
ency and indemnity compensation, and where annual income is a 
factor in entitlement to benefits, the dollar limitations in the laws 
specifying such annual income shall apply at the rate of one Philippine 
peso for each dollar: Provided further, That any payments heretofore 
made under any such law to or with respect to any member of the mili-
tary forces of the Government of the Commonwealth of the Philip-
pines who served in the services of the Armed Forces of the United 
States shall not be deemed to be invalid by reason of the circumstances 
that his service was not service in the military or naval forces of the 
United States or any component thereof within the meaning of such 
law." 
(j) The paragraph beginning "Finance Service, Army," under title 
I I of the Act of May 27, 1946 (60 Stat. 223), is amended by striking 
out paragraphs (6) and the proviso immediately following such para-
graph, and inserting in lieu thereof the following: 
"(6) The provisions of laws administered by the Veterans' 
Administration for the payment of compensation or dependency 
and indemnity compensation on account of service-connected dis-
ability or death: 
Provided further, That payments made under the provisions of any 
law referred to in clauses (5) and (6) above shall be paid at the rate 
of one Philippine peso for e^ch dollar authorized by such law: Pro-
vided further, That where annual income is a factor in entitlement to 
benefits, the dollar limitations in the laws specifying such annual in-
come shall apply at the rate of one Philippine peso for each dollar:". 
(k) Paragraph V of part I of Veterans Regulation Numbered 2 
38uscch. 12A. (Ia) is amended by inserting immediately after "compensation" each 
place it occurs therein (except paragraph 
(a)) the following: 
", dependency and indemnity compensation'. 
(1) Section 11 of the Uniformed Services Contingency Option Act 
67 Stat. 504. 
^f ^953 (37 xj. S. C , sec. 380) is amended by inserting immediately 
after "be considered income" the following: "(except as provided in 
Ante, p. 863. 
section 205 (g) of the Servicemen's and Veterans' Survivor Benefits 
Act)". 
(m) The second sentence of paragraph X I I I of Veterans Regulation 
asuscch. 12A. Numbered 10 is amended to read as follows: "The receipt of pension, 
compensation, or dependency and indemnity compensation by a widow, 
child, or parent on account of the death of any person, or receipt by any 
person of pension or compensation on account of his own service, shall 
not bar the payment of pension, compensation, or dependency and 
indemnity compensation on account of the death or disability of any 
other person." 
T
O STAT.] 
PUBLIC LAW 881-AUG. 1, 1956 
885 
(n) Section 15 of Public, Numbered 2, Seventy-third Congress (38 
U. S. C, sec. 715), is amended (1) by inserting immediately after 
"under this title" the first time it occurs the following: "or title II of 
the Servicemen's and Veterans' Survivor Benefits Act", and (2) by 
inserting immediately after "under this title" the second time it occurs 
the following: "and under title II of the Servicemen's and Veterans' 
Survivor Benefits Act". 
(o) Section 3 of the Act of October 17,1940 (38 U. S. C, sec. 49a), 
is amended by inserting immediately after "compensation" the second 
time it occurs the following: ", dependency and indemnity compen-
(p)' The Act of September 7,1944 (38 U. S. C, sec. 733), is amended 
(1) by inserting immediately after "Seventy-third Congress, as 
amended," the following: "or of dependency and indemnity com-
pensation payable under the Servicemen's and Veterans' Survivor 
Benefits Act,', and (2) by inserting immediately after "death pension 
or compensation" in the second proviso the following: "or dependency 
and indemnity compensation". 
(q) The portion of section 201 of the World War Veterans' Act, 
1924 (38 U. S. C, sec. 472), which precedes paragraph (1) thereof 
is amended by striking out "That if death results from injury—" 
and inserting in lieu thereof: "If death occurs prior to January 1, 
1957, and results from injury—". 
(r) The first paragraph of section 3 of the Act of August 16, 1937 
(38 U. S. C, sec. 472b), is amended by striking out "World War 
veteran who died" and inserting in lieu thereof "World War veteran 
who died prior to January 1,1957,". 
(s) (1) Paragraph IV of part I and paragraph III of part II 
of Veterans Regulation Numbered 1 (a) are each amended by insert-
ing immediately after "deceased person who died" the following: 
"prior to January 1, 1957". 
(2) The amendments made by this subsection shall not apply with 
respect to any death occurring on or after May 1, 1957, under the 
circumstances described in section 501 (a) (3) (B) oi this Act. 
(t) Section 121 (a) of the Internal Revenue Code of 1954 is 
amended by adding at the end thereof the following: 
48 Stat. 11. 
Ante, p. 862. 
54 Stat. 1195. 
58 Stat. 728. 
43 Stat. 1305. 
38USCch. 12A. 
N o n applicabil-
ity. 
26 u s e 121. 
"(18) Dependency and indemnity compensation paid to survivors of mem-
bers of a uniformed service and certain other persons, see section 210 of the 
Servicemen's and Veterans' Survivor Benefits Act." 
(u) (1) Subparagraph I (a) (3) of part I of Veterans Regulation 
Numbered 2 (a) is amended to read as follows: 
"(3) Where a claim has been finally disallowed, a subsequent claim 
on tne same factual basis, if supported by new and material evidence, 
shall have the attributes of a new claim, except that, whenever any 
disallowed claim is reopened and thereafter allowed on the basis of 
new and material evidence resulting from the correction of the mili-
tary or naval records of the proper service department under section 
207 of the I^egislative Reorganization Act of 1946, the effective date 
of commencement of the benefit so awarded shall be the date on which 
an application was filed for correction of the military record." 
(2) The amendments made by this subsection shall be effective as 
of August 2, 1946, except that no payment shall be made for any 
period before the date of enactment of this subsection unless applica-
tion therefor is made within one year after the date of enactment of 
this subsection. 
38USCch. 12A. 
60 Stat. 837. 
5 u s e 191a, 275. 
Effective date. 
886 
41 Stat. 367. 
41 Stat. 824. 
45 Stat. 249. 
46 Stat. 268. 
53 Stat. 1042. 
54 Stat. 762. 
56 Stat. 8. 
63 Stat. 534. 
65 Stat. 33. 
38 u s e 851 note. 
PUBLIC LAW 881-AUG. 1, 1956 
REPEALS 
[70 ST A T . 
SEC. 502. The following Acts or parts of Acts are repealed: 
(1) The Act of December 17,1919 (10 U. S. C , sec. 903). 
(2) The second paragraph under "Bureau of Supplies and 
Accounts" in the Act of June 4,1920 (34 U. S. C , sec. 943). 
(3) The Act of March 8, 1928 (10 U. S. C , sec. 903a). 
(4) The Act of May 12,1930 (34 U. S. C , sec. 944). 
(5) The Act of July 15,1939 (5 U. S. C, sees. 797, 797a). 
(6) The Act of July 18,1940 (5 U. S. C , sec. 798). 
(7) Section 9 of the Act of January 19, 1942 (33 U. S. C , 
sec. 870). 
(8) (A) Title 14, United States Code, section 489. 
(B) The portion of the table of sections at the beginning of 
chapter 13 of title 14, United States Code, which reads "489. 
Death gratuity.". 
(9) The Servicemen's Indemnity Act of 1951. 
TITLE VI—MISCELLANEOUS 
Ante, p. 862. 
42 u s e 401-421. 
Ante, 
p. 
8 6 9 
et aeq. 
67 Stat. 186. 
Effective date. 
APPLICATION FOR BENEFITS 
SEC. 601. The Administrator and the Secretary of Health, Educa-
tion, and Welfare shall jointly prescribe forms for use by survivors 
of members and former members of the uniformed services in filing 
applications for benefits under title I I of this Act and under title I I 
of the Social Security Act. 
Each such form shall request informa-
tion sufficient to constitute an application for benefits under both 
such titles; and when an application on such form has been filed with 
either the Administrator or the Secretary it shall be deemed to be an 
application for benefits under both such titles. A copy of each such 
application filed with the Administrator, together with any addi-
tional information 
and supporting documents 
(or 
certifications 
thereof) which may have been received by the Administrator With 
such application, and which may be needed by the Secretary in con-
nection therewith, shall be transmitted by the Administrator to the 
Secretary; and a copy of each such application filed with the Secre-
tary, together with any additional information and supporting docu-
ments (or certifications thereof) which may have been received by 
the Secretary with such form, and which may be needed by the Admin-
istrator in connection therewith, shall be transmitted by the Secretary 
to the Administrator. 
The preceding sentence shall not prevent the 
Secretary and the Administrator from requesting the applicant, or 
any other individual, to furnish such additional information as may 
be necessary for purposes of title I I of the Social Security Act and 
title I I of this Act, respectively. 
RENEWAL OF TERM INSURANCE 
SM). 602. (a) Subsection (f) of section 602 of the National Service 
Life Insurance Act of 1940 (38 U. S. C , sec. 802) is amended by 
striking out "and which is not lapsed" in the first proviso, and by 
adding immediately after such proviso the following: ^''Provided 
further, That such renewal shall be effected in cases where the policy 
is lapsed only in the event the lapse occurred not earlier than two 
months prior to expiration of the term period, and reinstatement in 
such cases shall be under terms and conditions prescribed by the 
Administrator:". 
(b) The amendments made by subsection (a) shall be effective July 
23,1953. 
70 S T A T . ] 
PUBLIC LAW 883-AUG. 1, 1966 
88T 
EFFECTIVE DATES 
SEC. 603. (a) Except as otherwise provided herein, this Act shall 
take effect on January 1,1957. 
(b) The amendment or repeal of any provision of law by this Act |3i{]tyVrior''to'jlSr 
shall not operate to deprive any person of payments of the six-months' i, 1957. 
death gratuity or of any payments which such person would be eligible 
to receive, but for such amendment or repeal, by reason of the death 
or disability of any person occurring prior to January 1, 195T; nor 
shall the amendment or repeal of any such provision operate to 
deprive anj person disabled prior to January 1, 1957, of any right 
or the contmuation of benefits to which he would otherwise be entitled 
by reason of such disability except for such amendment or repeal. 
Approved August 1, 1956. 
Public Law 882 
CHAPTER 838 
JOINT RESOLUTION 
August I. 1956 
To authorize an additional position of Assistant Director in the Bureau of 
L
S
. J- Res. 199] 
the Budget. 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assembled^ That there is hereby estab- B»^et ^" °' *
*
*
* 
lished one additional position of Assistant Director in the Bureau of 
the Budget, for which the compensation shall be the same as is now or 
may hereafter be provided for the two such positions heretofore 
authorized by law (31U. S. C, 16a). 
Approved August 1, 1956. 
A s s i s t a n t Di-
rector. 
67 Stat. 299. 
Public Law 883 
CHAPTER 839 
AN ACT 
Auau.tl,l956 
Authorizing the Administrator of General Services to convey certain property 
[S. 3316] 
which has been declared surplus to the needs of the United States to the city 
of Roseburg, Oregon. 
Be it enacted hy the Sermte and House of Representatives 
of the 
United States of America in Congress assembled, That the Adminis- 
convs^ce^*** 
trator of General Services is authorized and directed to convey, with-
out consideration therefor, to the city of Roseburg, Oregon, all right, 
title, and interest of the United States in and to the following described 
properties, real and personal: the" dwelling house located on lot 5, 
block 29, in the said city of Roseburg, Oregon, together with furniture, 
personal effects, and jewelry stored in said dwelling house or elsewhere 
which has been designated by said Administrator as "lot A person-
alty," all of said property being a part of the estate of Lillie Lela 
Moore devised to the United States hy said Lillie Lela Moore under 
provisions of her will probated in 1940 which has since been declared 
surplus to the needs of the United States. 
Such conveyance, in addition to being subject to such terms and con- lal'^TOtyHi^orfl 
ditions as may be considered by said Administrator to be necessary to cai society, 
protect the interest of the United States, shall be expressly conditioned 
upon an undertaking by the city of Roseburg, Oregon, that such dwell-
ing house, together with said items of personal property, shall, within 
a reasonable period of time as determined by said Administrator, be 
transferred by the city of Roseburg to the Douglas County Historical 
Society and removed irom said land without cost to the United States. 
Approved August 1, 1956.