1. (a) Qualifying for reduced monthly contributions. Some individuals can become participants while making no contributions. To qualify for this portion of the pilot program the individual must:

   1. (1) Enlist or reenlist in the Army, Navy, Air Force or Marine Corps after November 30, 1980, and before October 1, 1981;
   2. (2) Elect or have elected to participate in the Post-Vietnam Era Educational Assistance Program; and

   3. (3) Be chosen for the pilot program by the Secretary of Defense or his or her designee.

      (Authority: Sec. 903 Pub. L. 96-342, 94 Stat. 1115)

2. (b) Monthly contributions made by the Secretary of Defense.

   1. (1) The Secretary of Defense may pay $75 per month as the monthly contribution otherwise required under § 21.5052(b) for an individual described in paragraph (a) of this section.
   2. (2) The individual will not be required to make a contribution for any month to the extent that the contribution otherwise required by § 21.5052(b) for that month is paid by the Secretary of Defense.

   3. (3) The amount paid by the Secretary of Defense shall be deposited in the fund.

      (Authority: Sec. 903, Pub. L. 96-342; 94 Stat. 1115)

3. (c) Restrictions on monthly contributions. The Secretary of Defense may not make a payment under the pilot program on behalf of any person for any month:

   1. (1) Before the month in which the person enlisted or reenlisted in the Army, Navy, Air Force or Marine Corps, or

   2. (2) Before December 1980.

      (Authority: Sec. 903, Pub. L. 96-342, 94 Stat. 1115)

4. (d) Refunds. If an individual participating in the pilot program disenrolls, any monthly contributions made by the Secretary of Defense will be returned to the Secretary of Defense rather than refunded to the individual.

   (Authority: Sec. 903, Pub. L. 96-342; 94 Stat. 1115)

5. (e) Application of sections to this portion of the pilot program.

   1. (1) The following sections apply to this portion of the pilot program with amendments as noted:

      1. (i) In § 21.5021(e) a participant includes someone whose contributions are being made by the Secretary of Defense.
      2. (ii) In § 21.5052(b) the Secretary of Defense may make contributions to the fund and may designate the amount of the contribution.
      3. (iii) In § 21.5052(d) the Secretary of Defense may increase or decrease the amount of the contribution.
      4. (iv) In §§ 21.5064 and 21.5065 monthly contributions made by the Secretary of Defense will be returned to him or her instead of being refunded to the veteran.
      5. (v) In § 21.5071 the Department of Veterans Affairs will also credit the individual with 1 month of entitlement for each month the Secretary of Defense contributes to the fund on his or her behalf.
      6. (vi) In § 21.5138 the references to the individual's contributions include those contributions made on the individual's behalf by the Secretary of Defense.

   2. (2) Except as amended in paragraph (e)(1) of this section §§ 21.5001 through 21.5041 and §§ 21.5050 through 21.5270 apply without change to this portion of the pilot program. See § 21.5296.

      (Authority: Pub. L., 96-342, sec. 903; 38 U.S.C. 3232, 3698(a)(2); Pub. L. 97-35, Pub. L. 99-576)

[47 FR 51747, Nov. 17, 1982, as amended at 49 FR 2109, Jan. 18, 1984; 53 FR 34499, Sept. 7, 1988; 61 FR 29030, June 7, 1996]