Title 10, Armed ForcesRelease 119-110

§1581 Foreign National Employees Separation Pay Account

Title 10 › Subtitle A — General Military Law › PART II — PERSONNEL › CHAPTER 81 — CIVILIAN EMPLOYEES › § 1581

Last updated Sep 22, 2026|Official source

Summary

Creates a Treasury account called the "Foreign National Employees Separation Pay Account, Defense." It holds money to pay separation pay for certain foreign nationals. The Secretary of Defense must deposit into it all amounts obligated for that pay from the proper appropriations. Funds can only be used for those separation-pay obligations and stay available until spent. If money is deobligated, it can be used for two years from the deobligation date to settle charges; any left after two years is canceled. It covers foreign nationals who work for the Department of Defense or who work for a foreign government for the Department’s benefit under contracts, treaties, or memoranda of understanding that provide separation pay.

Full Legal Text

Title 10, §1581

Armed Forces, Source: USLM XML via OLRC

(a)Establishment and Purpose.—
There is established on the books of the Treasury an account to be known as the “Foreign National Employees Separation Pay Account, Defense”. The account shall be used for the accumulation of funds to finance obligations of the United States for separation pay for foreign nationals referred to in subsection (e).
(b)Deposits Into Account.—
The Secretary of Defense shall deposit into the account from applicable appropriations all amounts obligated for separation pay for foreign nationals referred to in subsection (e).
(c)Payments From Account.—
Amounts in the account shall remain available for expenditure in accordance with the purpose for which obligated until expended.
(d)Deobligated Funds.—
Any amount in the account that is deobligated shall be available for a period of two years from the date of deobligation for recording, adjusting, and liquidating amounts properly chargeable to the liability of the United States for which the obligation was made. Any such deobligated amount remaining at the end of such two-year period shall be canceled.
(e)Employees Covered.—
This section applies only with respect to separation pay of foreign nationals employed by the Department of Defense, and foreign nationals employed by a foreign government for the benefit of the Department of Defense, under any of the following agreements that provide for payment of separation pay:
(1)A contract.
(2)A treaty.
(3)A memorandum of understanding with a foreign nation.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1581, acts Aug. 10, 1956, ch. 1041, 70A Stat. 118; Sept. 2, 1958, Pub. L. 85–861, § 1(34), 72 Stat. 1456; May 29, 1959, Pub. L. 86–36, § 3, 73 Stat. 63; Sept. 23, 1959, Pub. L. 86–377, § 2, 73 Stat. 701; Oct. 4, 1961, Pub. L. 87–367, title II, § 203, 75 Stat. 790; Oct. 11, 1962, Pub. L. 87–793, § 1001(b), 76 Stat. 863, provided for appointment of a limited number of civilian research and development personnel and prescribed their relationship to civil service provisions, prior to repeal by Pub. L. 97–295, § 1(19)(A), Oct. 12, 1982, 96 Stat. 1290.

Amendments

2001—Subsec. (b). Pub. L. 107–107 struck out par. (2) designation and “on or after
December 5, 1991,” after “all amounts obligated” and struck out par. (1) which read as follows: “The Secretary of the Treasury shall deposit into the account all amounts that were obligated by the Secretary of Defense before
December 5, 1991, and that remain unexpended for separation pay for foreign nationals referred to in subsection (e).” 1994—Subsecs. (a), (b). Pub. L. 103–337, § 346(1), substituted “foreign nationals referred to in subsection (e)” for “foreign national employees of the Department of Defense” wherever appearing. Subsec. (e). Pub. L. 103–337, § 346(2), added subsec. (e) and struck out former subsec. (e) which read as follows: “Employees Covered.—This section applies only with respect to separation pay of foreign nationals employed by the Department of Defense under any of the following agreements that provide for payment of separation pay: “(1) A contract. “(2) A treaty. “(3) A memorandum of understanding with a foreign nation.” 1992—Subsec. (b)(1), (2). Pub. L. 102–484 substituted “
December 5, 1991,” for “the date of the enactment of this section”.

Reference

Citations & Metadata

Citation

10 U.S.C. § 1581

Title 10, Armed Forces

Last Updated

Sep 22, 2026

Release point: 119-110