---
kind: "section"
citation: "38 U.S.C. § 1928"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1928"
heading: "Authority for payment of interest on settlements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1928"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter I — National Service Life Insurance"
---

# §1928. Authority for payment of interest on settlements

- (a) Subject to [subsection (b)](#b) of this section, the [Secretary](/usc/38/101.md?p=1) may pay interest on the proceeds of a participating National Service Life [Insurance](/usc/38/1901.md?p=1), [Veterans](/usc/38/1101.md?p=1)’ Special Life [Insurance](/usc/38/1901.md?p=1), and [Veterans](/usc/38/1101.md?p=1) Reopened [Insurance](/usc/38/1901.md?p=1) policy from the date the policy matures to the date of payment of the proceeds to the beneficiary or, in the case of an endowment policy, to the policyholder.
- (b)
  - (1) The [Secretary](/usc/38/101.md?p=1) may pay interest under [subsection (a)](#a) of this section only if the [Secretary](/usc/38/101.md?p=1) determines that the payment of such interest is administratively and actuarially sound for the settlement option involved.
  - (2) Interest paid under [subsection (a)](#a) of this section shall be at the rate that is established by the [Secretary](/usc/38/101.md?p=1) for dividends held on credit or deposit in policyholders’ accounts under the [insurance](/usc/38/1901.md?p=1) program involved.

## Source credit

(Added Pub. L. 100–687, div. B, title XIV, § 1401(a)(1), Nov. 18, 1988, 102 Stat. 4128, § 728; renumbered § 1928 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.)

## Notes

### Editorial Notes

### Amendments

1991—Pub. L. 102–83 renumbered section 728 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 100–687, div. B, title XIV, § 1401(a)(3), Nov. 18, 1988, 102 Stat. 4129, provided that: “The amendments made by this subsection [enacting this section and section 763 [now 1963] of this title] shall take effect with respect to insurance policies maturing after the date of the enactment of this Act [Nov. 18, 1988].”