[Federal Register Volume 62, Number 243 (Thursday, December 18, 1997)]
[Rules and Regulations]
[Pages 66277-66278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32988]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI89


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

AGENCIES: Department of Defense, Department of Transportation (Coast 
Guard), 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 1998 (October 1, 1997, through September 30, 1998) are 
changed to show a 2.8% increase in these rates.

DATES: This final rule is effective December 18, 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 1998, 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 2.8%, which is the percentage by 
which the total of the monthly Consumer Price Index-W for July 1, 1996, 
through June 30, 1997, exceeds the total of the monthly Consumer Price 
Index-W for July 1, 1995, through June 30, 1996.
    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-the-job training must be set at a given 
percentage of the full-time rate. Hence, there is a 2.8% 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.
    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, 1997 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 Acting 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: October 17, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.

    Approved: November 7, 1997.
Al H. Bemis,
Deputy Assistant Secretary for Defense for Reserve Affairs (Manpower 
and Personnel).

    Approved: Novmeber 25, 1997.
G.F. Woolever,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.

    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, continues to read 
as follows:

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


[[Page 66278]]


    2. In 21.7636, paragraphs (a)(1), (a)(2)(i), and (a)(3) are revised 
to read as follows:


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:

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                                                                                 Training time                  
                Period of pursuit of training                ---------------------------------------------------
                                                               Full-time    \3/4\ time   \1/2\ time   \1/4\ time
----------------------------------------------------------------------------------------------------------------
Oct. 1, 1996-Sept. 30, 1997.................................      $203.24      $152.43      $101.62       $50.81
On or after Oct. 1, 1997....................................       208.93       156.70       104.47        52.23
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    (2) * * *
    (i)

------------------------------------------------------------------------
                                                      Monthly rate      
                                               -------------------------
                Training period                   Oct. 1,    On or after
                                                1996--Sept.    Oct. 1,  
                                                  30, 1997       1997   
------------------------------------------------------------------------
First six months of pursuit of training.......      $152.43      $156.70
Second six months of pursuit of training......       111.78       114.91
Remaining pursuit of training.................        71.13        73.13
------------------------------------------------------------------------

* * * * *
    (3) The monthly rate of educational assistance payable to a 
reservist for pursuit of a cooperative course during the period 
beginning on October 9, 1996, and ending on September 30, 1997, is 
$203.24. The monthly rate of educational assistance payable to a 
reservist for pursuit of a cooperative course on or after October 1, 
1997, will be the rate stated in paragraph (a)(1) of this section.
* * * * *
[FR Doc. 97-32988 Filed 12-17-97; 8:45 am]
BILLING CODE 8320-01-P