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-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

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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)

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Monthly rate

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Training period Oct. 1, On or after

1996--Sept. Oct. 1,

30, 1997 1997

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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

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* * * * *

(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]

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