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Title 38 — Veterans' BenefitsRelease 119-73not60

§1962 Authority for Higher Monthly Installments Payable to Certain Annuitants

Title 38 › Part II— GENERAL BENEFITS › Chapter 19— INSURANCE › Subchapter II— UNITED STATES GOVERNMENT LIFE INSURANCE › § 1962

Last updated Apr 5, 2026|Official source

Summary

The Secretary can raise the monthly payments for people getting United States Government Life Insurance money as a life annuity. The Secretary must only do this when the change is administratively and actuarially sound. The Secretary can make the change without following the rules in section 1944 about interest rates and mortality tables, but the new monthly amount cannot be less than what would apply otherwise. The Secretary must also find how much in the Treasury trust fund comes from interest and from mortality gains on annuity reserves. That amount can be paid to those annuitants as a fixed percentage added to their monthly payment. "Gains on the reserves" means annuity account money that is more than the actuarial liabilities.

Full Legal Text

Title 38, §1962

Veterans' Benefits — Source: USLM XML via OLRC

(a)Subject to subsections (b) and (c) of this section, the Secretary may from time to time adjust the dollar amount of the monthly installments payable to a beneficiary of United States Government Life Insurance who is receiving the proceeds of such insurance under a life annuity settlement option. The Secretary may make such an adjustment only if the Secretary determines that the adjustment is administratively and actuarially sound. The Secretary may make such an adjustment without regard to the provisions of section 1944 of this title with respect to interest rates and the use of mortality tables.
(b)The Secretary shall determine the amount in the trust fund in the Treasury held for payment of proceeds to United States Government Life Insurance beneficiaries attributable to interest and mortality gains on the reserves held for annuity accounts. Such amount shall be available for distribution to the life annuitants referred to in subsection (a) of this section as a fixed percentage of, and in addition to, the monthly installment amount to which the annuitants are entitled under this subchapter. For the purposes of this section, gains on the reserves are defined as funds attributable solely to annuity accounts that are in excess of actuarial liabilities.
(c)The monthly amount of an annuity authorized in section 1944 of this title, as adjusted under this section, may not be less than the monthly amount of such annuity that would otherwise be applicable without regard to this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Pub. L. 102–83, § 5(a), renumbered section 762 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted “1944” for “744”. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing. Subsec. (b). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”. Subsec. (c). Pub. L. 102–83, § 5(c)(1), substituted “1944” for “744”.

Reference

Citations & Metadata

Citation

38 U.S.C. § 1962

Title 38 — Veterans' Benefits

Last Updated

Apr 5, 2026

Release point: 119-73not60