US LAWS, STATUTES & CODES ON-LINE
§ 107. — Certain service deemed not to be active service.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 38USC107]
TITLE 38--VETERANS' BENEFITS
PART I--GENERAL PROVISIONS
CHAPTER 1--GENERAL
Sec. 107. Certain service deemed not to be active service
(a) Service before July 1, 1946, in the organized military forces of
the Government of the Commonwealth of the Philippines, while such forces
were in the service of the Armed Forces of the United States pursuant to
the military order of the President dated July 26, 1941, including among
such military forces organized guerrilla forces under commanders
appointed, designated, or subsequently recognized by the Commander in
Chief, Southwest Pacific Area, or other competent authority in the Army
of the United States, shall not be deemed to have been active military,
naval, or air service for the purposes of any law of the United States
conferring rights, privileges, or benefits upon any person by reason of
the service of such person or the service of any other person in the
Armed Forces, except benefits under--
(1) contracts of National Service Life Insurance entered into
before February 18, 1946;
(2) chapter 10 of title 37; and
(3) chapters 11, 13 (except section 1312(a)), 23, and 24 (to the
extent provided for in section 2402(8)) of this title.
Except as provided in subsection (c) or (d), payments under such
chapters shall be made at a rate of $0.50 for each dollar authorized,
and where annual income is a factor in entitlement to benefits, the
dollar limitations in the law specifying such annual income shall apply
at a rate of $0.50 for each dollar. Any payments made before February
18, 1946, to any such member under such laws conferring rights,
benefits, or privileges shall not be deemed to have been invalid by
reason of the circumstance that such member's service was not service in
the Armed Forces or any component thereof within the meaning of any such
law.
(b) Service in the Philippine Scouts under section 14 of the Armed
Forces Voluntary Recruitment Act of 1945 shall not be deemed to have
been active military, naval, or air service for the purposes of any of
the laws administered by the Secretary except--
(1) with respect to contracts of National Service Life Insurance
entered into (A) before May 27, 1946, (B) under section 620 or 621
of the National Service Life Insurance Act of 1940, or (C) under
section 1922 of this title; and
(2) chapters 11 and 13 (except section 1312(a)) of this title.
Payments under such chapters shall be made at a rate of $0.50 for each
dollar authorized, and where annual income is a factor in entitlement to
benefits, the dollar limitations in the law specifying such annual
income shall apply at a rate of $0.50 for each dollar.
(c) In the case of benefits under subchapters II and IV of chapter
11 of this title paid by reason of service described in subsection (a)
to an individual residing in the United States who is a citizen of, or
an alien lawfully admitted for permanent residence in, the United
States, the second sentence of subsection (a) shall not apply.
(d)(1) With respect to benefits under chapter 23 of this title, in
the case of an individual described in paragraph (2), the second
sentence of subsection (a) shall not apply.
(2) Paragraph (1) applies to any individual whose service is
described in subsection (a) and who dies after November 1, 2000, if the
individual, on the individual's date of death--
(A) is a citizen of, or an alien lawfully admitted for permanent
residence in, the United States;
(B) is residing in the United States; and
(C) either--
(i) is receiving compensation under chapter 11 of this
title; or
(ii) if the individual's service had been deemed to be
active military, naval, or air service, would have been paid
pension under section 1521 of this title without denial or
discontinuance by reason of section 1522 of this title.
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1111; Pub. L. 87-268,
Sec. 1(b), Sept. 21, 1961, 75 Stat. 566; Pub. L. 89-641, Sec. 2(a), Oct.
11, 1966, 80 Stat. 885; Pub. L. 97-295, Sec. 4(4), Oct. 12, 1982, 96
Stat. 1305; Pub. L. 99-576, title VII, Sec. 701(6), Oct. 28, 1986, 100
Stat. 3291; Pub. L. 102-83, Secs. 4(a)(1), 5(c)(1), Aug. 6, 1991, 105
Stat. 403, 406; Pub. L. 103-446, title V, Sec. 507(a), Nov. 2, 1994, 108
Stat. 4664; Pub. L. 106-377, Sec. 1(a)(1) [title V, Sec. 501(a)(1)],
Oct. 27, 2000, 114 Stat. 1441, 1441A-57; Pub. L. 106-419, title III,
Secs. 331(b), 332(a), Nov. 1, 2000, 114 Stat. 1856; Pub. L. 107-14,
Sec. 8(a)(1), June 5, 2001, 115 Stat. 34; Pub. L. 107-330, title III,
Sec. 308(g)(2), Dec. 6, 2002, 116 Stat. 2828.)
References in Text
Section 14 of the Armed Forces Voluntary Recruitment Act of 1945,
referred to in subsec. (b), is section 14 of act Oct. 6, 1945, ch. 393,
59 Stat. 543, which enacted section 637 of former Title 10, Army and Air
Force, and was omitted from the Code in the revision and reenactment of
Title 10, Armed Forces, by act Aug. 10, 1956, ch. 1041, 70A Stat. 1.
Sections 620 and 621 of the National Service Life Insurance Act of
1940, referred to in subsec. (b)(1), are sections 620 and 621 of act
Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39,
pt. II, Sec. 10, 65 Stat. 36, which enacted sections 820 and 821 of
former Title 38, Pensions, Bonuses, and Veterans' Relief, which were
repealed and the provisions thereof reenacted as sections 722(a) and 723
[now 1922(a) and 1923] of this title by Pub. L. 85-857, Sept. 2, 1958,
72 Stat. 1105.
Amendments
2002--Subsec. (d)(2). Pub. L. 107-330 substituted ``November 1,
2000,'' for ``the date of the enactment of this subsection'' in
introductory provisions.
2001--Subsec. (a). Pub. L. 107-14, Sec. 8(a)(1)(A), inserted ``or
(d)'' after ``subsection (c)'' in concluding provisions.
Subsecs. (c), (d). Pub. L. 107-14, Sec. 8(a)(1)(B), (C),
redesignated subsec. (c) relating to the inapplicability of the second
sentence of subsec. (a) to an individual described in paragraph (2) as
(d) and substituted ``With respect to benefits under chapter 23 of this
title, in'' for ``In'' in par. (1).
2000--Subsec. (a). Pub. L. 106-419, Sec. 332(a)(1), which directed
substitution of ``Subject to subsection (c), payments'' for
``Payments'', could not be executed because ``Payments'' did not appear
subsequent to the amendment by Pub. L. 106-377, Sec. 1(a)(1) [title V,
Sec. 501(a)(1)(A)]. See below.
Pub. L. 106-377, Sec. 1(a)(1) [title V, Sec. 501(a)(1)(A)],
substituted ``Except as provided in subsection (c), payments'' for
``Payments'' in concluding provisions.
Subsec. (a)(3). Pub. L. 106-419, Sec. 331(b), amended par. (3)
generally. Prior to amendment, par. (3) read as follows: ``chapters 11,
13 (except section 1312(a)), and 23 of this title.''
Subsec. (c). Pub. L. 106-419, Sec. 332(a)(2), added subsec. (c)
relating to the inapplicability of the second sentence of subsec. (a) to
an individual described in paragraph (2).
Pub. L. 106-377, Sec. 1(a)(1) [title V, Sec. 501(a)(1)(B)], added
subsec. (c) relating to the inapplicability of the second sentence of
subsec. (a) to cases of benefits under subchapters II and IV of chapter
11 of this title paid to United States citizens or to permanent resident
aliens.
1994--Subsecs. (a), (b). Pub. L. 103-446 substituted ``rate of'' for
``rate in pesos as is equivalent to'' and for ``rate in Philippine pesos
as is equivalent to'' in second sentence.
1991--Subsec. (a)(3). Pub. L. 102-83, Sec. 5(c)(1), substituted
``1312(a)'' for ``412(a)''.
Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1922'' for
``722'' in par. (1)(C) and ``1312(a)'' for ``412(a)'' in par. (2).
Pub. L. 102-83, Sec. 4(a)(1), substituted ``administered by the
Secretary'' for ``administered by the Veterans' Administration''.
1986--Subsec. (a). Pub. L. 99-576 substituted ``that such member's''
for ``that his'' in last sentence.
1982--Subsec. (a)(2). Pub. L. 97-295 substituted ``chapter 10 of
title 37'' for ``the Missing Persons Act''.
1966--Pub. L. 89-641 increased the specified dollar/peso rate for
payments from one peso for each dollar otherwise authorized to a rate in
Philippine pesos equivalent to $0.50 for each dollar.
1961--Pub. L. 87-268 substituted ``section 412(a)'' for ``sections
412'' wherever appearing.
Effective Date of 2001 Amendment
Pub. L. 107-14, Sec. 8(a)(1), June 5, 2001, 115 Stat. 34, provided
that the amendment made by section 8(a)(1) is effective Nov. 1, 2000.
Effective Date of 2000 Amendments
Pub. L. 106-419, title III, Sec. 331(c), Nov. 1, 2000, 114 Stat.
1856, provided that: ``The amendments made by this section [amending
this section and section 2402 of this title] shall apply with respect to
deaths occurring on or after the date of the enactment of this Act [Nov.
1, 2000].''
Pub. L. 106-419, title III, Sec. 332(b), Nov. 1, 2000, 114 Stat.
1856, provided that: ``No benefits shall accrue to any person for any
period before the date of the enactment of this Act [Nov. 1, 2000] by
reason of the amendments made by subsection (a) [amending this
section].''
Pub. L. 106-377, Sec. 1(a)(1) [title V, Sec. 501(a)(2)], Oct. 27,
2000, 114 Stat. 1441, 1441A-57, provided that: ``The amendments made by
paragraph (1) [amending this section] shall take effect on the date of
the enactment of this Act [Oct. 27, 2000] and shall apply to benefits
paid for months beginning on or after that date.''
Effective Date of 1994 Amendment
Section 507(c) of Pub. L. 103-446 provided that: ``The amendments
made by this section [amending this section and sections 3532 and 3565
of this title] shall apply with respect to payments made after December
31, 1994.''
Effective Date of 1966 Amendment
Section 2(b) of Pub. L. 89-641 provided that: ``The amendments made
by subsection (a) of this section [amending this section] shall take
effect on the first day of the second calendar month which begins after
the date of enactment of this Act [Oct. 11, 1966].''
Effective Date of 1961 Amendment
Amendment by Pub. L. 87-268 effective Oct. 1, 1961, see section 3 of
Pub. L. 87-268, set out as a note under section 1312 of this title.
Refund of Erroneously Deducted NSLI Premium to Philippine Veterans on
Proper Application
Section 1 of Pub. L. 89-641 provided for refund of erroneously
deducted insurance premiums to Philippine armed forces members in
service of the United States Armed Forces, such refund to be made upon
receipt of an application within two years after Oct. 11, 1966. In event
of death of such member, refund was to be made only to widow or widower,
children or parents of such member, in that order, with no refunds to
heirs or legal representatives.
Section Referred to in Other Sections
This section is referred to in sections 1734, 1925, 2402 of this
title; title 8 sections 1612, 1613, 1622.

