§ 5301. Nonassignability and exempt status of benefits

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. 1958

   Pub. L. 85–857 · 72 Stat. 1105

   Enacted · 38 U.S.C. § 5301

   Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1229, § 3101

   Source evidence

   Code source credit
   Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1229, § 3101

2. 1976

   Veterans’ Education and Employment Assistance Act of 1976

   Pub. L. 94–502 title VII § 701 · 90 Stat. 2383

   Inserted · 38 U.S.C. § 5301(a)

   Pub. L. 94–502 inserted provision which prohibits, as an assignment, a payee of an educational assistance allowance from designating an attorney-in-fact’s address as the payee’s address for the purpose of receiving checks and benefits where the attorney-in-fact has also been given authority to negotiate the checks and benefits

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 94–502 inserted provision which prohibits, as an assignment, a payee of an educational assistance allowance from designating an attorney-in-fact’s address as the payee’s address for the purpose of receiving checks and benefits where the attorney-in-fact has also been given authority to negotiate the checks and benefits.

   Enacted provision · exact public law section
   Sec. 701. Section 3101 (a) of title 38, United States Code, is amended by adding at the end thereof the following: “For the purposes of this subsection, in any case where a payee of an educational assistance allowance has designated the address of an attorney-in-fact as the payee’s address for the purpose of receiving his or her benefit check and has also executed a power of attorney giving the attorney-in-fact authority to negotiate such benefit check, such action shall be deemed to be an assignment and is prohibited.”.

3. 1978

   An Act for the creation of an American Battle Monuments Commission to erect suitable memorials commemorating the services of the American soldier in Europe, and for other purposes

   Pub. L. 95–479 title III § 301 · 92 Stat. 1560

   Added · 38 U.S.C. § 5301(d)

   Pub. L. 95–479 added subsec. (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 95–479 added subsec. (d).

   Enacted provision · exact public law section
   Sec. 301. nontaxable status of certain retired pay received in lieu of veterans’ benefits Section 3101 is amended by adding at the end thereof the following new subsection: “(d) In the case of a person who— “(1) has been determined to be eligible to receive pension or compensation under laws administered by the Veterans’ Administration but for the receipt by such person of pay pursuant to any provision of law providing retired or retirement pay to members or former members of the Armed Forces or commissioned officers of the National Oceanic and Atmospheric Administration or of the Public Health Service; and “(2) tiles a waiver of such pay in accordance with section 3105 of this title in the amount of such pension or compensation before the end of the one-year period beginning on the date such person is notified by the Veterans’ Administration of such person’s eligibility for such pension or compensation. the retired or retirement pay of such person shall be exempt from taxation, as provided in subsection (a) of this section, in an amount equal to the amount of pension or compensation which would have been paid to such person but for the receipt by such person of such pay.”.

4. 1982

   Pub. L. 97–295 § 4(74) · 96 Stat. 1287

   1. Inserted · 38 U.S.C. § 5301(c)

      Pub. L. 97–295 inserted “of this section” after “subsection (a)”

   2. Substituted · 38 U.S.C. § 5301(c)

      Pub. L. 97–295 substituted “(26 U.S.C. 6331 et seq.)” for “(relating to seizure of property for collection of taxes)”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 97–295 inserted “of this section” after “subsection (a)”, and substituted “(26 U.S.C. 6331 et seq.)” for “(relating to seizure of property for collection of taxes)”.

   Enacted provision · exact public law section
   (74) Section 3101(c) is amended by inserting “of this section” after “subsection (a)” and by striking out “(relating to seizure of property for collection of taxes)” and substituting “(26 U.S.C. 6331 et seq.)”.

5. 1986

   Pub. L. 99–576 § 701(68)(A) · 100 Stat. 3248

   Substituted · 38 U.S.C. § 5301(a)

   Pub. L. 99–576, § 701(68)(A), substituted “a” for “his or her” before “benefit check”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 99–576, § 701(68)(A), substituted “a” for “his or her” before “benefit check”.

   Enacted provision · exact public law section
   (A) by striking out “his or her” in the last sentence of subsection (a) and inserting in lieu thereof “a”; and

6. 1986

   Pub. L. 99–576 § 701(68)(B) · 100 Stat. 3248

   Substituted · 38 U.S.C. § 5301(b)

   Pub. L. 99–576, § 701(68)(B), substituted “the beneficiary’s” for “his” in four places in first sentence

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 99–576, § 701(68)(B), substituted “the beneficiary’s” for “his” in four places in first sentence.

   Enacted provision · exact public law section
   (B) by striking out “his” each place it appears in subsection (b) and inserting in lieu thereof “the beneficiary’s”.

7. 1986

   Pub. L. 99–576 § 504(2) · 100 Stat. 3248

   Redesignated · 38 U.S.C. § 5301(c)

   Pub. L. 99–576, § 504(2), added subsec. (c). Former subsec. (c) redesignated (d)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 99–576, § 504(2), added subsec. (c). Former subsec. (c) redesignated (d).

   Enacted provision · exact public law section
   (2) by inserting after subsection (b) the following new subsection (c): “(c) (1) Notwithstanding any other provision of this section, the Administrator may, after receiving a request under paragraph (2) of this subsection relating to a veteran, collect by offset of any compensation or pension payable to the veteran under laws administered by the Veterans’ Administration the uncollected portion of the amount of any indebtedness associated with the veteran’s participation in a plan prescribed in subchapter I or II of chapter 73 of title 10 USC 1431 et seq. 10. “(2) If the Secretary concerned (as defined in section 101(5) of title 37) has tried under section 3711(a) of title 31 to collect an amount described in paragraph (1) of this subsection in the case of any veteran, has been unable to collect such amount, and has deter-mined that the uncollected portion of such amount is not collectible from amounts payable by the Secretary to the veteran or that the veteran is not receiving any payment from the Secretary, the Secretary may request the Administrator to make collections in the case of such veteran as authorized in paragraph (1) of this subsection. “(3) (A) A collection authorized by paragraph (1) of this subsection shall be conducted in accordance with the procedures prescribed in section 3716 of title 31 for administrative offset collections made after attempts to collect claims under section 3711(a) of such title. “(B) For the purposes of subparagraph (A) of this paragraph, as used in the second sentence of section 3716(a) of title 31— “(i) the term ‘records of the agency’ shall be considered to refer to the records of the department of the Secretary concerned; and “(ii) the term ‘agency’ in clauses (3) and (4) shall be considered to refer to such department. “(4) Funds collected under this subsection shall be credited to the Department of Defense Military Retirement Fund under chapter 74 of title 10.”. 10 USC 1461 et seq.

8. 1986

   Pub. L. 99–576 § 504(1) · 100 Stat. 3248

   Redesignated · 38 U.S.C. § 5301(d); 38 U.S.C. § 5301(e)

   Pub. L. 99–576, § 504(1), redesignated former subsecs. (c) and (d) as (d) and (e), respectively

   Source evidence

   Code amendment note
   Subsecs. (d), (e). Pub. L. 99–576, § 504(1), redesignated former subsecs. (c) and (d) as (d) and (e), respectively.

   Enacted provision · exact public law section
   (1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and

9. 1989

   Military Survivor Benefits Improvement Act of 1989

   Pub. L. 101–189 div. A title XIV § 1404(b)(2) · 103 Stat. 1352

   1. Amended · 38 U.S.C. § 5301(c)(1)

      Pub. L. 101–189, as amended by Pub. L. 102–25

   2. Struck · 38 U.S.C. § 5301(c)(1)

      Pub. L. 101–189, as struck out “subchapter I or II of” after “plan prescribed in”

   Source evidence

   Code amendment note
   Subsec. (c)(1). Pub. L. 101–189, as amended by Pub. L. 102–25, struck out “subchapter I or II of” after “plan prescribed in”.

   Enacted provision · exact public law section
   (2) Section 3101(c)(1) of title 38, United States Code, is amended by striking out “of subchapter I or II”.

10. 1991

    Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991

    Pub. L. 102–25 title VII § 705(c)(2) · 105 Stat. 75

    Changed · 38 U.S.C. § 5301(c)(1)

    Pub. L. 102–25 made a technical correction to Pub. L. 101–189. See 1989 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–25 made a technical correction to Pub. L. 101–189. See 1989 Amendment note below.

    Enacted provision · exact public law section
    (2) Section 1404(b)(2) of Public Law 101–189 (103 Stat. 1586) is amended by striking out “of subchapter I or II” in the matter in quotation marks and inserting in lieu thereof “subchapter I or II of”.

11. 1991

    Department of Veterans Affairs Health-Care Personnel Act of 1991

    Pub. L. 102–40 § 402(b)(1) · 105 Stat. 187

    Changed · 38 U.S.C. § 5301

    Pub. L. 102–40, § 402(b)(1), renumbered section 3101 of this title as this section

    Source evidence

    Code amendment note
    Pub. L. 102–40, § 402(b)(1), renumbered section 3101 of this title as this section.

    Enacted provision · exact public law section
    (1) Each section contained in any of chapters 51, 53, 55, 57, 59, 61, 71, 72, 76, 78 (as redesignated by subsection (a)), 81, 83, and 85 is redesignated so that the first two digits of the section number of that section are the same as the chapter number of the chapter containing that section.

12. 1991

    Department of Veterans Affairs Health-Care Personnel Act of 1991

    Pub. L. 102–40 § 402(d)(1) · 105 Stat. 187

    Substituted · 38 U.S.C. § 5301(e)(2)

    Pub. L. 102–40, § 402(d)(1), substituted “5305” for “3105”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–40, § 402(d)(1), substituted “5305” for “3105”.

    Enacted provision · exact public law section
    (1) Each provision of title 38, United States Code, that contains a reference to a section redesignated by section 401(a)(4) or by subsection (b) is amended so that the reference refers to the section as redesignated.

13. 1991

    Pub. L. 102–54 § 14(d)(2) · 105 Stat. 267

    Substituted · 38 U.S.C. § 5301(d)

    Pub. L. 102–54 amended subsec. (d) as in effect immediately before enactment of Pub. L. 102–40 by substituting “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–54 amended subsec. (d) as in effect immediately before enactment of Pub. L. 102–40 by substituting “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.

    Enacted provision · exact public law section
    (2) Section 3101(d) is amended by striking out “the Internal 38 USC 5301. Revenue Code of 1954” and inserting in lieu thereof “the Internal Revenue Code of 1986”.

14. 1991

    Pub. L. 102–83 § 4(a)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(a); 38 U.S.C. § 5301(b)

    Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”

    Source evidence

    Code amendment note
    Subsecs. (a), (b). Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”.

    Enacted provision · exact public law section
    (1) Title 38 is amended by striking out “administered by the Veterans’ Administration” each place it appears and inserting in lieu thereof “administered by the Secretary”.

15. 1991

    Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(c)(1)

    Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”.

    Enacted provision · exact public law section
    (1) Title 38 is further amended by striking out “Administrator” and “Administrator’s” each place they appear (except as provided in paragraphs (2) and (9) and including where they appear in section headings and tables of sections) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.

16. 1991

    Pub. L. 102–83 § 4(a)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(c)(1)

    Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”.

    Enacted provision · exact public law section
    (1) Title 38 is amended by striking out “administered by the Veterans’ Administration” each place it appears and inserting in lieu thereof “administered by the Secretary”.

17. 1991

    Pub. L. 102–83 § 4(b)(4)(C) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(c)(2)

    Pub. L. 102–83, § 4(b)(4)(C), substituted “that Secretary” for second, third, and fourth references to “the Secretary”

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 102–83, § 4(b)(4)(C), substituted “that Secretary” for second, third, and fourth references to “the Secretary”.

    Enacted provision · exact public law section
    (C) Section 5301(c)(2) (the second, third, and fourth place “the Secretary” appears).

18. 1991

    Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(c)(2)

    Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” before “to make”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” before “to make”.

    Enacted provision · exact public law section
    (1) Title 38 is further amended by striking out “Administrator” and “Administrator’s” each place they appear (except as provided in paragraphs (2) and (9) and including where they appear in section headings and tables of sections) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.

19. 1991

    Pub. L. 102–83 § 4(a)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(d)

    Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”.

    Enacted provision · exact public law section
    (1) Title 38 is amended by striking out “administered by the Veterans’ Administration” each place it appears and inserting in lieu thereof “administered by the Secretary”.

20. 1991

    Pub. L. 102–83 § 4(a)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(e)(1)

    Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”

    Source evidence

    Code amendment note
    Subsec. (e)(1). Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration”.

    Enacted provision · exact public law section
    (1) Title 38 is amended by striking out “administered by the Veterans’ Administration” each place it appears and inserting in lieu thereof “administered by the Secretary”.

21. 1991

    Pub. L. 102–83 § 4(a)(2)(A)(vii) · 105 Stat. 378

    Substituted · 38 U.S.C. § 5301(e)(2)

    Pub. L. 102–83, § 4(a)(2)(A)(vii), substituted “Secretary” for “Veterans’ Administration”

    Source evidence

    Code amendment note
    Subsec. (e)(2). Pub. L. 102–83, § 4(a)(2)(A)(vii), substituted “Secretary” for “Veterans’ Administration”.

    Enacted provision · exact public law section
    (vii) Section 5301(e)(2).

22. 1991

    Pub. L. 102–86 title V § 505(a) · 105 Stat. 414

    Inserted · 38 U.S.C. § 5301(c)(4)

    Pub. L. 102–86 inserted before period at end “or to the Retired Pay Account of the Coast Guard, as appropriate”

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 102–86 inserted before period at end “or to the Retired Pay Account of the Coast Guard, as appropriate”.

    Enacted provision · exact public law section
    (a) Deposit of Coast Guard Amounts.— Section 5301(c)(4) is amended by inserting before the period at the end the following: “or to the Retired Pay Account of the Coast Guard, as appropriate”.

    Effective date note
    Pub. L. 102–86, title V, § 505(b), Aug. 14, 1991, 105 Stat. 426, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to funds collected after September 30, 1991.”

23. 2003

    Veterans Benefits Act of 2003

    Pub. L. 108–183 title VII § 702 · 117 Stat. 2651

    1. Inserted · 38 U.S.C. § 5301(a)

       Pub. L. 108–183 inserted “(1)” after “(a)”

    2. Amended · 38 U.S.C. § 5301(a)

       Pub. L. 108–183 designated last sentence as par. (2)

    3. Added · 38 U.S.C. § 5301(a)

       Pub. L. 108–183 added par. (3)

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 108–183 inserted “(1)” after “(a)”, designated last sentence as par. (2), and added par. (3).

    Enacted provision · exact public law section
    SEC. 702. CLARIFICATION OF APPLICABILITY OF PROHIBITION ON ASSIGNMENT OF VETERANS BENEFITS TO AGREEMENTS REQUIRING PAYMENT OF FUTURE RECEIPT OF BENEFITS.   Section 5301(a) is amended— (1) by inserting “(1)” after “(a)”; (2) by designating the last sentence as paragraph (2); and (3) by adding at the end the following new paragraph: “(3) (A) This paragraph is intended to clarify that, in any case where a beneficiary entitled to compensation, pension, or dependency and indemnity compensation enters into an agreement with another person under which agreement such other person acquires for consideration the right to receive such benefit by payment of such compensation, pension, or dependency and indemnity compensation, as the case may be, except as provided in subparagraph (B), and including deposit into a joint account from which such other person may make withdrawals, or otherwise, such agreement shall be deemed to be an assignment and is prohibited. “(B) Notwithstanding subparagraph (A), nothing in this paragraph is intended to prohibit a loan involving a beneficiary under the terms of which the beneficiary may use the benefit to repay such other person as long as each of the periodic payments made to repay such other person is separately and voluntarily executed by the beneficiary or is made by preauthorized electronic funds transfer pursuant to the Electronic Funds Transfers Act (15 U.S.C. 1693 et seq.). “(C) Any agreement or arrangement for collateral for security for an agreement that is prohibited under subparagraph (A) is also prohibited and is void from its inception.” .

26 of 27 references resolved to an enrolled provision · 1 partial