ELIGIBILITY OF MEMBERS RETIRED UNDER TEMPORARY SPECIAL RETIREMENT AUTHORITY FOR SERVICEMEN’S GROUP LIFE INSURANCE.

SEC. 651. ELIGIBILITY OF MEMBERS RETIRED UNDER TEMPORARY SPECIAL RETIREMENT AUTHORITY FOR SERVICEMEN’S GROUP LIFE INSURANCE. (a) Eligibility.— Section 1965(5) of title 38, United States Code, is amended— (1) by striking out “and” at the end of subparagraph (C); (2) by redesignating subparagraph (D) as subparagraph (E); and (3) by inserting after subparagraph (C) the following new subparagraph (D): “(D) a person transferred to the Retired Reserve of a uniformed service under the temporary special retirement authority provided in section 1331a of title 10 who has not received the first increment of retirement pay or has not reached sixty-one years of age; and”. (b) Insurance Coverage.— Section 1967(a) of such title is amended— (1) by striking out “and” at the end of paragraph (2); (2) by adding “and” at the end of paragraph (3); (3) by inserting after paragraph (3) the following: “(4) any member assigned to the Retired Reserve of a uniform service who meets the qualifications set forth in section 1965(5)(D) of this title;”; and (4) in the second sentence, by inserting after “section 1965(5)(D) of this title,” the following: “or the first day a member of the Reserves meets the qualifications of section 1965(5)(D) of this title,”. (c) Duration of Coverage.— Section 1968(a) of such title is amended— (1) in the matter preceding paragraph (1), by striking out “section 1965(5) (B) or (C)” and inserting in lieu thereof “subparagraph (B), (C), or (D) of section 1965(5)”; (2) in paragraph (4)— (A) by striking out “or” at the end of subparagraph (A); (B) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof “; or”; and (C) by adding at the end the following new subparagraph: “(C) unless on the date of such separation or release the member is transferred to the Retired Reserve of a uniformed service under the temporary special retirement authority provided in section 1331a of title 10, in which event the insurance, unless converted to an individual policy under terms and conditions set forth in section 1977(e) of this title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the administrative office established under section 1966(b) of this title, continue in force until receipt of the first increment of 108 STAT. 2793retirement pay by the member or the member’s sixty-first birthday, whichever occurs earlier.”; and (3) by adding at the end the following: “(6) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(D) of this title, at such time as the member receives the first increment of retirement pay, or the member’s sixty-first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent premiums, under terms prescribed by the Secretary, directly to the administrative office established under section 1966(b) of this title”. (d) Deductions.— Section 1969 of such title is amended— (1) in subsection (a)(2)— (A) by striking out “or is assigned” and inserting in lieu thereof “is assigned”; and (B) by inserting after “section 1965(5)(D) of this title,” the following: “or is assigned to the Retired Reserve and meets the qualifications of section 1965(5)(D) of this title,”; and (2) in subsection (e), by striking out “section 1965(5)(D)” in the first sentence and inserting in lieu thereof “subparagraph (C) or (D) of section 1965(5)”.