REIMBURSEMENT FOR FINANCIAL INSTITUTION CHARGES INCURRED BECAUSE OF GOVERNMENT ERROR IN DIRECT DEPOSIT OF PAY

SEC. 664 REIMBURSEMENT FOR FINANCIAL INSTITUTION CHARGES INCURRED BECAUSE OF GOVERNMENT ERROR IN DIRECT DEPOSIT OF PAY (a) Extension of Scope of Reimbursement Authority.—(1) Subsection (a) of section 1053 of title 10, United States Code, is amended to read as follows: “(a)(1) A member of the armed forces (or a former member of the armed forces entitled to retired pay under chapter 67 of this title) who, in accordance with law or regulation, participates in a program for the automatic deposit of pay to a financial institution may be reimbursed by the Secretary concerned for a covered late-deposit charge. “(2) covered late-deposit charge for purposes of paragraph (1) is a charge (including an overdraft charge or a minimum balance or average balance charge) that is levied by a financial institution and that results from an administrative or mechanical error on the part of the Government that causes the pay of the person concerned to be deposited late or in an incorrect manner or amount.”. (2) Subsection (d) of such section is amended to read as follows: “(d) In this section: “(1) The term ‘financial institution’ has the meaning given the term ‘financial organization’ in section 3332(a) of title 31. “(2) The term ‘pay1 includes (A) retired pay, and (B) allowances.”. (3)(A) The heading of such section is amended to read as follows: “§ 1053. Reimbursement for financial institution charges incurred because of Government error in mandatory direct deposit of pay”. (B) The item relating to such section in the table of sections at the beginning of chapter 53 of such title is amended to read as follows: “1053. Reimbursement for financial institution charges incurred because of Government error in mandatory direct deposit of pay.”. (b) Other Department of Defense Personnel.—(1) Chapter 81 of such title is amended by adding after section 1593, as added by section 336, the following new section: “§ 1594. Reimbursement for financial institution charges incurred because of Government error in mandatory direct deposit of pay “(a)(1) A civilian officer or employee of the Department of Defense who, in accordance with law or regulation, participates in a program for the automatic deposit of pay to a financial institution may be reimbursed for a covered late-deposit charge. “(2) A covered late-deposit charge for purposes of paragraph (1) is a charge (including an overdraft charge or a minimum balance charge) that is levied by a financial institution and that results from an administrative or mechanical error on the part of the Government that causes the pay of the officer or employee concerned to be deposited late or in an incorrect manner or amount. 103 STAT. 1467 “(b) Reimbursements under this section shall be made from appropriations available for the pay of the officer or employee concerned. “(c) The Secretaries concerned shall prescribe regulations to carry out this section, including regulations for the manner in which reimbursement under this section is to be made. “(d) in this section: “(1) The term ‘financial institution’ has the meaning given the term ‘financial organization’ in section 3332(a) of title 31. “(2) The term ‘pay’ includes allowances.”. (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 1593, as added by section 336, the following new item: “1594. Reimbursement for financial institution charges incurred because of Government error in mandatory direct deposit of pay.”. (c) Effective Date.—The amendments made by subsection (a), and section 1594 of title 10, United States Code, as added by subsection (b), shall apply with respect to pay and allowances deposited (or scheduled to be deposited) on or after the first day of the first month beginning after the date of the enactment of this Act.