An Act to provide a lump-sum readjustment payment for members of reserve components who are involuntarily released from active duty.
PL 84-676 (H.R.9952), enacted 07/09/1956

70 S T A T . ] 
PUBLIC LAW 676-JULY 9, 1956 
517 
or before" so that the second paragraph of section 3 (a) will read as 
follows: 
"No claim shall be entertained by the Secretary of the Army unless 
it shall appear to his satisfaction that such claim was a part of a civil 
action filed against the United States in a United States district court 
on or before April 25, 1950, except that, for good cause, the Secretary 
may waive the limitation date of April 25, 1950, where it is shown 
that claimant, hy reason of infancy, insanity, or other legal reason, 
was unable to bring such civil action." 
Approved July 9, 1956. 
Public Law 676 
CHAPTER 534 
AN ACT 
Tuly 9. 1956 
To provide a lump-sum readjustment payment for members of the reserve com- 
[H. R. 9952] 
ponents who are involuntarily released from active duty. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Armed R^s^rVe A°t*^of 
Forces Reserve Act of 1952 (66 Stat. 481), as amended, is further ^^i^j/'"®"fj^®"*-
amended by adding tlie following section after section 264: 
Lun^-^'sum read-
"SEC, 265. (a) K member of a reserve component who is involun- J"stment payment, 
tarily released from active duty after the enactment of this section 
and after having completed immediately prior to such release at least 
five years of continuous active duty, except for breaks in service of not 
more than thirty days, as either an officer, warrant officer, or enlisted 
person, is entitled to a lump-sum readjustment payment computed 
on the basis of one-half of one month's basic pay in the grade in 
which he is serving at the time of release from active duty for each 
year of active service ending at the close of the eighteenth year. For 
the purposes of computing th« amount of readjustment payment (1) 
a part of a year that is six months or more is counted as a whole year, 
and a part of a year that is less than six months is disregarded, and (2) 
any prior period for which severance pay has been received under 
any other provision of law sliall be excluded. 
There shall be deducted 
from any lump-sum readjustment payment any mustering-out pay 
received under the provisions of the Mustering-Out Payment Act of gg58stat.8;66stat. 
1944 or the Veterans Readjustment Assistance Act of 1952. 
^^33 use 691, 90i 
"(b) The following persons are not entitled to any payments under 
p^ersons not ««-
this section : 
""*''* *° payment. 
"(1) A person who is released from active duty at his own request. 
"(2) A person who is released from active duty for training. 
"(3) Under regulations prescribed by the Secretary of Defense, 
or by the Secretary of the Treasury with respect to members of the 
Coast Guard when the Coast Guard is not operating as a service in 
the Navy, a person who is released from active duty because of moral 
or professional dereliction. 
"(4) A person who upon release from active duty is immediately 
eligible for retired pay, retirement pay, or retainer pay based entirely 
on his military service under any provision of law. 
"(5) A person who upon release from active duty is immediately 
eligible for severance pay based on his military service under any 
other provision of law. However, such a person may elect to receive 
either readjustment pay under this section or severance pay, but not 
both. 
"(6) A person who upon release from active duty is eligible for 
disability compensation under laws administered by the Veterans' 
Administration. 
However, such a person may elect to receive either 
518 
PUBLIC LAW 677-JULY 9, 1956 
[70 S T A T . 
Other retirement 
benefits. 
Involuntary sep-
aration. 
66 Stat. 491. 
50 u s e 963. 
38 u s e 691, 901 
note. 
*^nvoluntary re-
lease". 
readjustment pay under this section or disability compensation under 
laws administered by the Veterans' Administration, but not both. 
Election of readjustment pay shall not deprive a person of any dis-
ability compensation to which he may become entitled, on the basis 
of subsequent service, under laws administered by the Veterans' 
Administration. 
"(c) The acceptance of readjustment paj under this section shall 
not deprive a person of any retired pay, retirement pay, retainer pay, 
or other retirement benefits from the United States to which he would 
otherwise become entitled. 
"(d) Under regulations prescribed by the appropriate Secretary, 
which regulations shall be as uniform as practicable, a member of 
a reserve component who is on active duty and is within two years 
of qualifying for retired pay, retirement pay, or retainer pay under 
any purely military retirement system, shall not be involuntarily 
separated from that duty before he qualifies for that pay unless his 
separation is approved by the appropriate Secretary. 
"(e) A member of a reserve component who on the effective date 
of this section is serving on active duty under an agreement author-
ized by section 235 of this Act, and who is involuntarily released from 
active duty before completing his agreed term of service, may elect, in 
lieu of separation payment under that section, to receive readjustment 
pay under this section. 
"(f) Any payments accruing to a person under this section shall 
be reduced by the amount of any payment previously received by that 
person under this section, unless he has already refunded the prior 
payment to the United States. If he has refunded the earlier pay-
ment, the period covered by the earlier payment shall be considered 
as a period for which no payment has been made under this Act. 
"(g) A person who receives readjustment pay under this section is 
not entitled to mustering-out pay under the Slustering Out Payment 
Act of 1944 or under the Veterans' Readjustment Assistance Act of 
1952. 
"(h) For the purpose of this section, the term 'involuntary release' 
shall include release under conditions wherein a member of a reserve 
component, who has completed a tour of duty, volunteers for an 
additional tour of duty and the service concerned does not extend or 
accept the volunteer request of the member for the additional tour." 
Approved July 9, 1956. 
i
uly 9, 1956 
1. R. 10230] 
Public Law 677 
CHAPTER535 
AN ACT 
To amend sections 3526 and 3528 of the Revised Statutes relating to the coinage 
of subsidiary silver coins and minor coins of the United States. 
eoinage. 
68 Stat. 336. 
64 Stat. 157. 
31 u s e 320. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 3528 
of the Kevised Statutes, as amended (31 U. S. C. 340), is further 
amended by striking out "$2,000,000" and inserting in lieu thereof 
"$3,000,000^'. 
SEC. 2, The third sentence of section 3526 of the Revised Statutes, 
as amended (31 U. S. C. 335), is amended to read as follows: "This 
fund shall be charged with the cost of the alloy metal, with the 
wastage incurred in such coinage, with the recoinage loss on silver 
coins recoined pursuant to section 9 of the Act of March 14, 1900 (31 
Stat. 48), as amended, and with the cost of distributing silver coins." 
Approved July 9, 1956.