§ 325. Incentive bonus: savings plan for education expenses and other contingencies

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 2001

   National Defense Authorization Act for Fiscal Year 2002

   Pub. L. 107–107 div. A title VI § 622(a)(1) · 115 Stat. 1012

   Enacted · 37 U.S.C. § 325

   Added Pub. L. 107–107, div. A, title VI, § 622(a)(1), Dec. 28, 2001, 115 Stat. 1140

   Source evidence

   Code source credit
   Added Pub. L. 107–107, div. A, title VI, § 622(a)(1), Dec. 28, 2001, 115 Stat. 1140

   Enacted provision · exact public law section
   (1) Chapter 5 of title 37, United States Code, is amended by inserting after section 324, as added by section 621, the following new section: “§ 325. Incentive bonus: savings plan for education expenses and other contingencies “(a) Benefit and Eligibility.— The Secretary concerned may purchase United States savings bonds under this section for a member of the armed forces who is eligible as follows: “(1) A member who, before completing three years of service on active duty, enters into a commitment to perform qualifying service. “(2) A member who, after completing three years of service on active duty, but not more than nine years of service on active duty, enters into a commitment to perform qualifying service. “(3) A member who, after completing nine years of service on active duty, enters into a commitment to perform qualifying service. “(b) Qualifying Service.— For the purposes of this section, qualifying service is service on active duty in a specialty designated by the Secretary concerned as critical to meet requirements (whether or not such specialty is designated as critical to meet wartime or peacetime requirements) for a period that— “(1) is not less than six years; and “(2) does not include any part of a period for which the member is obligated to serve on active duty under an enlistment or other agreement for which a benefit has previously been paid under this section. “(c) Forms of Commitment to Additional Service.— For the purposes of this section, a commitment means— “(1) in the case of an enlisted member, a reenlistment; and “(2) in the case of a commissioned officer, an agreement entered into with the Secretary concerned. “(d) Amounts of Bonds.— The total of the face amounts of the United States savings bonds authorized to be purchased for a member under this section for a commitment shall be as follows: “(1) In the case of a purchase for a member under paragraph (1) of subsection (a), $5,000. “(2) In the case of a purchase for a member under paragraph (2) of subsection (a), the amount equal to the excess of $15,000 over the total of the face amounts of any United States savings bonds previously purchased for the member under this section. “(3) In the case of a purchase for a member under paragraph (3) of subsection (a), the amount equal to the excess of $30,000 over the total of the face amounts of any United States savings bonds previously purchased for the member under this section. “(e) Total Amount of Benefit.— The total amount of the benefit authorized for a member when United States savings bonds are purchased for the member under this section by reason of a commitment by that member shall be the sum of— “(1) the purchase price of the United States savings bonds; and “(2) the amounts that would be deducted and withheld for the payment of individual income taxes if the total amount computed under this subsection for that commitment were paid to the member as a bonus. “(f) Amount Withheld for Taxes.— The total amount payable for a member under subsection (e)(2) for a commitment by that member shall be withheld, credited, and otherwise treated in the same manner as amounts deducted and withheld from the basic pay of the member. “(g) Repayment for Failure To Complete Obligated Service.— (1) If a person fails to complete the qualifying service for which the person is obligated under a commitment for which a benefit has been paid under this section, the person shall refund to the United States the amount that bears the same ratio to the total amount paid for the person (as computed under subsection (e)) for that particular commitment as the uncompleted part of the period of qualifying service bears to the total period of the qualifying service for winch obligated. “(2) Subject to paragraph (3), an obligation to reimburse the United States imposed under paragraph (1) is for all purposes a debt owed to the United States. “(3) The Secretary concerned may waive, in whole or in part, a refund required under paragraph (1) if the Secretary concerned determines that recovery would be against equity and good conscience or would be contrary to the best interests of the United States. “(4) A discharge in bankruptcy under title 11 that is entered less than five years after the termination of an enlistment or other agreement under this section does not discharge the person signing such enlistment or other agreement from a debt arising under the enlistment or agreement, respectively, or this subsection. “(h) Relationship to Other Special Pays.— The benefit authorized under this section is in addition to any other bonus or incentive or special pay that is paid or payable to a member under any other provision of this chapter for any portion of the same qualifying service. “(i) Regulations.— This section shall be administered under regulations prescribed by the Secretary of Defense for the armed forces under his jurisdiction and by the Secretary of Transportation for the Coast Guard when the Coast Guard is not operating as a service in the Navy.”.

2. 2002

   Homeland Security Act of 2002

   Pub. L. 107–296 title XVII § 1704(c) · 116 Stat. 2135

   Substituted · 37 U.S.C. § 325(i)

   Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation”

   Source evidence

   Code amendment note
   Subsec. (i). Pub. L. 107–296 substituted “of Homeland Security” for “of Transportation”.

   Enacted provision · exact public law section
   (c) Title 37, United States Code.— Title 37, United States Code, is amended in sections 101(5), 204(i)(4), 301a(a)(3), 306(d), 307(c), 308(a)(1), 308(d)(2), 308(f), 308b(e), 308c(c), 308d(a), 308e(f), 308g(g), 308h(f), 308i(e), 309(d), 316(d), 323(b), 323(g)(1), 325(i), 402(d), 402a(g)(1), 403(f)(3), 403(l)(1), 403b(i)(5), 406(b)(1), 417(a), 417(b), 418(a), 703, 1001(c), 1006(f), 1007(a), and 1011(d) by striking “of Transportation” each place it appears and inserting “of Homeland Security”.

   Effective date note
   Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces.

3. 2006

   National Defense Authorization Act for Fiscal Year 2006

   Pub. L. 109–163 div. A title VI § 687(b)(33) · 119 Stat. 3136

   1. Amended · 37 U.S.C. § 325(g)

      Pub. L. 109–163, amended heading and text of subsec. (g) generally

   2. Substituted · 37 U.S.C. § 325(g)

      Pub. L. 109–163, substituting provisions referring to repayment provisions of section 303a(e) for specific provisions relating to refunds required when person fails to complete qualifying service for which person is obligated under commitment for which benefit was paid

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 109–163, amended heading and text of subsec. (g) generally, substituting provisions referring to repayment provisions of section 303a(e) for specific provisions relating to refunds required when person fails to complete qualifying service for which person is obligated under commitment for which benefit was paid.

   Enacted provision · exact public law section
   (33) Savings plan for education expenses and other contingencies.— Subsection (g) of section 325 of such title is amended to read as follows: “(g) Repayment.— If a person does not complete the qualifying service for which the person is obligated under a commitment for which a benefit has been paid under this section, the person shall be subject to the repayment provisions of section 303a(e) of this title.” .

4 of 4 references resolved to an enrolled provision