nontaxable status of certain retired pay received in lieu of veterans’ benefits

nontaxable status of certain retired pay received in lieu of veterans’ benefits Sec. 301. 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 92 STAT. 1565 “(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.”.