[Federal Register Volume 62, Number 99 (Thursday, May 22, 1997)]
[Rules and Regulations]
[Pages 27963-27964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13372]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION
Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI54


Reservists' Education: Increase in Rates Payable Under the 
Montgomery GI Bill--Selected Reserve

AGENCIES: Department of Defense; Coast Guard, DOT; and Department of 
Veterans Affairs.

ACTION: Final rule.

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SUMMARY: By statute, the monthly rates of basic educational assistance 
payable to reservists under the Montgomery GI Bill--Selected Reserve 
must be adjusted each fiscal year. In accordance with the statutory 
formula, the regulations governing rates of basic educational 
assistance payable under the Montgomery GI Bill--Selected Reserve for 
fiscal year 1997 (October 1, 1996, through September 30, 1997) are 
changed to show a 2.7% increase in these rates. Furthermore, the 
Veterans' Benefits Improvements Act of 1996 provides that the lower 
rate of educational assistance payable to reservists pursuing 
cooperative training was abolished effective October 9, 1996. They will 
be paid at the same rate as those reservists pursuing residence 
training. The regulations are changed to conform to statutory 
requirements.

DATES: This final rule is effective May 22, 1997. However, the changes 
in rates are applied retroactively to conform to statutory 
requirements. For more information concerning the dates of application, 
see the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director 
for Policy and Program Administration, Education Service, Veterans 
Benefits Administration, Department of Veterans Affairs, (202) 273-
7187.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 10 U.S.C. 
16131(b) for fiscal year 1997, the rates of basic educational 
assistance under the Montgomery GI Bill--Selected Reserve payable to 
students pursuing a program of education full time, three-quarter time, 
and half time must be increased by 2.7%, which is the percentage by 
which the total of the monthly Consumer Price Index-W for July 1, 1995, 
through June 30, 1996, exceeds the total of the monthly Consumer Price 
Index-W for July 1, 1994, through June 30, 1995.
    10 U.S.C. 16131(b) requires that full-time, three-quarter time, and 
half-time rates be increased as noted above. In addition, 10 U.S.C. 
16131(d) requires that monthly rates payable to reservists in 
apprenticeship or other on-job training must be set at a given 
percentage of the full-time rate. Hence, there is a 2.7% raise for such 
training as well.
    10 U.S.C. 16131(b) also requires that the Department of Veterans 
Affairs (VA) pay reservists training less than half time at an 
appropriately reduced rate. Since payment for less than half-time 
training became available under the Montgomery GI Bill--Selected 
Reserve in fiscal year 1990, VA has paid less than half-time students 
at 25% of the full-time rate. Changes are made consistent with the 
authority and formula described in this paragraph.
    Before the enactment on October 9, 1996, of the Veterans' Benefits 
Improvements Act of 1996 (Public Law 104-275), the rate of educational 
assistance payable to a reservist pursuing a cooperative course was set 
by statute at 80% of the rate payable to a reservist in residence 
training. This statutory provision was reflected in the regulations. 
The Veterans' Benefits Improvements Act of 1996 eliminated this 
different rate of payment so that reservists in cooperative training 
receive the same monthly rate as reservists in residence training. 38 
CFR 21.7636 is changed accordingly.
    Nonsubstantive changes also are made for the purpose of clarity.
    The changes set forth in this final rule are effective from the 
date of publication, but the changes in rates are applied retroactively 
from October 1, 1996, or October 9, 1996, as respectively set out in 
the regulations, in accordance with the applicable statutory provisions 
discussed above.
    Substantive changes made by this final rule merely reflect 
statutory requirements and adjustments made based on previously 
established formulas. Accordingly, there is a basis for dispensing with 
prior notice and comment and delayed effective date provisions of 5 
U.S.C. 552 and 553.
    The Secretary of Defense, the Commandant of the Coast Guard, and 
the Secretary of Veterans Affairs hereby certify that this final rule 
will not have a significant economic impact on a substantial number of 
small entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. This final rule directly affects only individuals and 
does not directly affect small entities. Pursuant to 5 U.S.C. 605(b), 
this final rule, therefore, is exempt from the initial and final 
regulatory flexibility analyses requirements of sections 603 and 604.
    There is no Catalog of Federal Domestic Assistance number for the 
program affected by this final rule.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, Defense 
Department, Education, Employment, Grant programs--education, Grant 
programs--veterans, Health programs, Loan programs--education, Loan 
programs--veterans, Manpower training programs, Reporting and 
recordkeeping requirements, Schools, Travel and transportation 
expenses, Veterans, Vocational education, Vocational rehabilitation.

    Approved: January 24, 1997.
Jesse Brown,
Secretary of Veterans Affairs.

    Approved: February 24, 1997.
Al H. Bemis,
Deputy Assistant Secretary for Defense for Reserve Affairs (M&P).

    Approved: April 24, 1997.
W.C. Donnell, RADM, USCG,
Assistant Commandant for Human Resources, U.S. Coast Guard.

    For the reasons set out above, 38 CFR part 21, subpart L, is 
amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected 
Reserve

    1. The authority citation for part 21, subpart L, is revised to 
read as follows:

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), ch. 36, unless 
otherwise noted.

    2. In 21.7636, paragraphs (a)(1), (a)(2) introductory text, 
(a)(2)(i), and (a)(3) are revised and the authority citation for 
paragraph (a) is republished to read as follows:

[[Page 27964]]

Sec. 21.7636  Rates of payment.

    (a) Monthly rate of educational assistance. (1) Except as otherwise 
provided in this section or in Sec. 21.7639, the monthly rate of 
educational assistance payable to a reservist is the amount stated in 
this table:

----------------------------------------------------------------------------------------------------------------
                                                                                   Training time                
                  Period of pursuit of training                  -----------------------------------------------
                                                                   Fulltime   \3/4\ time  \1/2\ time  \1/4\ time
----------------------------------------------------------------------------------------------------------------
Oct. 1, 1995-Sept. 30, 1996.....................................     $197.90     $148.42      $98.95      $49.47
On or after Oct. 1, 1996........................................      203.24      152.43      101.62       50.81
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    (2) The monthly rate of basic educational assistance payable to a 
reservist for pursuit of apprenticeship or other on-job training full 
time is the rate stated in this table:
    (i)

------------------------------------------------------------------------
                                                     Monthly rate       
                                             ---------------------------
              Training  period                Oct. 1, 1995-             
                                                Sept. 30,    On or after
                                                  1996      Oct. 1, 1996
------------------------------------------------------------------------
First six months of pursuit of training.....       $148.42       $152.43
Second six months of pursuit of training....        108.94        111.78
Remaining pursuit of training...............         69.26         71.13
------------------------------------------------------------------------

* * * * *
    (3) The monthly rate of educational assistance payable to a 
reservist for pursuit of a cooperative course is the rate stated in 
this table:

------------------------------------------------------------------------
               Period of pursuit of training                Monthly rate
------------------------------------------------------------------------
Oct. 1, 1995-Sept. 30, 1996...............................       $158.32
Oct. 1, 1996-Oct. 8, 1996.................................        162.59
On or after Oct. 9, 1996..................................        203.24
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    Authority: 10 U.S.C. 16131(b), (c); sec. 12009(c), Pub. L. 103-
66, 107 Stat. 416)
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[FR Doc. 97-13372 Filed 5-21-97; 8:45 am]
BILLING CODE 8320-01-P