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PUBLIC LAW 87-509-JUNE 28, 1962
[76 STAT.
Public Law 87-509 June 28, 1962 [H. R. 8773]
Armed Forces, Lump-sum paymerits to reserv-
ists. 70 Stat. 517.
72 Stat. 1272 "as^usc 1012105. ^^° TcT^sut.'^sn" 70A Stat. 30.
70 Stat. 517.
^^ A.CT rpf, auieiid section 265 of the Armed Forces Reserve Act of 1952, as amended (50 U.S.C. 1016), relating to lump-sum readjustment payments for members of the reserve components who are involuntarily released from active duty, and for other puriwses.
Be it enacted by the Senate and House of Representatives of the United Stutes of America in Congress assembled,, That section 265 of ^\^^ Armed FoFces Reserve Act of 1952, as amended (50 U.S.C. 1016), •
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IS amended as lollows: ^-|^^ Subsection (a) is amended to read as follows: " (a) A member of a reserve component who is involuntarily released from active duty after the date of enactment of this amended subsection and after having completed immediately prior to such release at least five years of continuous active duty, except for breaks in service of not more than thirty days, as either an officer, warrant officer, or enlisted person, is entitled to a lump-sum readjustment payment computed on the basis of two months' basic pay in the grade in which he is serving at the time of release from active duty for each year of active service (other than in time of war or of national emergency hereafter declared by Congress) ending at the close of the eighteenth year. However, the readjustment payment of a member who is released from active duty because his performance of duty has fallen below standards prescribed by the appropriate Secretary or because his retention is not clearly consistent with the interests of national security, shall be computed on the basis of one-half of one month's pay. For the purposes of computing the amount of the readjustment payment, a part of a year that is six months or more is counted as a whole year, and a part of a year that is less than six months is disregarded, and any prior period for which readjustment pay has been received under any other provision of law shall be excluded. No person covered by this subsection may be paid a total of more than two years' basic pay in the grade in which he is serving at the time of release or $15,000, whichever is the lesser. There shall be deducted from any lump-sum readjustment payment under this subsection any mustering-out pay received under the Mustering-Out Payment Act of 1944, the Veterans' Readjustment Assistance Act of 1952, "^ chapter 43 of title 38, United States Code." (2) The second sentence of subsection (b)(5) is amended to read ^^ follows: "However, such a person is entitled— " (A) to receive readjustment pay under this section even though he is also entitled to be paid under section 680 of title 10, United States Code; and " (B) with respect to severance pay to which he is entitled under any provision of law other than section 680 of that title^ to elect either to receive that severance pay or to receive readjustment pay under this section, but not both." (3) Subsection (b)(6) is amended to read as follows: "(6) Except as provided in this clause, a person who upon release from active duty is eligible for disability compensation under laws administered by the Veterans' Administration. However, such a person may receive readjustment pay under this section in addition to disability compensation subject to deduction from the disability compensation of an amount equal to 75 percent of the readjustment pay. Receipt of readjustment pay shall not deprive a person of any part of any disability compensation to which he may become entitled, on the basis of subsequent service, under laws administered by the Veterans' Administration."
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