§16163a Authority to Transfer Unused Education Benefits to Family Members

Summary

Lets a service member give some of their unused education benefit months to family members. A member who has finished at least six years of service and agrees to serve at least four more (or who meets years set by rules) can transfer months to a spouse, to one or more children, or to both. The total months given cannot be more than 36 months. The Secretary of Defense can set a rule that the minimum transferable months be no less than 18. The member must name who gets the months, say how many months each gets, and say when the transfer starts. The transfer must be done while the member is still serving. The member can change or cancel any unused portion by sending written notice to the Defense Department and the VA. Transferred months are not marital property. A spouse cannot use transferred months until the member has completed at least six years (or as rules say). A child cannot use them until the member has completed at least ten years (or as rules say) and the child has finished high school or turned 18. Each month a dependent uses counts as one month off the member’s balance. Dependents get the same monthly amount the member would get. The member’s death does not stop a dependent’s use. A child may use transferred months past certain time limits but not after turning 26. If too much money is paid, the member and dependent are both responsible to repay. If the member fails to finish the agreed service, used transferred months may be treated as an overpayment, except for death or other specified reasons. The Secretary of Defense, with the VA, will issue rules to manage all this; the term “Secretary concerned” is defined elsewhere.