Reservists' Education: Increase in Rates Payable Under the Montgomery GI BillSelected Reserve

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:

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Training time

Period of pursuit of training -----------------------------------------------

Fulltime \3/4\ time \1/2\ time \1/4\ time

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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)

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Monthly rate

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Training period Oct. 1, 1995-

Sept. 30, On or after

1996 Oct. 1, 1996

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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

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* * * * *

(3) The monthly rate of educational assistance payable to a

reservist for pursuit of a cooperative course is the rate stated in

this table:

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Period of pursuit of training Monthly rate

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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