---
kind: "section"
citation: "38 U.S.C. § 4318"
title: "38"
title_heading: "Veterans’ Benefits"
number: "4318"
heading: "Employee pension benefit plans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/4318"
units:
  - "Part III — Readjustment and Related Benefits"
  - "Chapter 43 — Employment and Reemployment Rights of Members of the Uniformed Services"
  - "Subchapter II — Employment and Reemployment Rights and Limitations; Prohibitions"
---

# §4318. Employee pension benefit plans

- (a)
  - (1)
    - (A) Except as provided in [subparagraph (B)](#a-1-B), in the case of a right provided pursuant to an [employee](/usc/38/4303.md?p=3) [pension](/usc/38/101.md?p=15) [benefit](/usc/38/4303.md?p=2) plan (including those described in sections 3(2) and 3(33) of the [Employee](/usc/38/4303.md?p=3) Retirement Income Security Act of 1974) or a right provided under any Federal or [State](/usc/38/4101.md?p=6) law governing [pension](/usc/38/101.md?p=15) [benefits](/usc/38/4303.md?p=2) for governmental [employees](/usc/38/4303.md?p=3), the right to [pension](/usc/38/101.md?p=15) [benefits](/usc/38/4303.md?p=2) of a person reemployed under this chapter shall be determined under this section.
    - (B) In the case of [benefits](/usc/38/4303.md?p=2) under the Thrift Savings Plan, the rights of a person reemployed under this chapter shall be those rights provided in [section 8432b of title 5](/usc/5/8432b.md). The first sentence of this subparagraph shall not be construed to affect any other right or [benefit](/usc/38/4303.md?p=2) under this chapter.
  - (2)
    - (A) A person reemployed under this chapter shall be treated as not having incurred a break in service with the [employer](/usc/38/4303.md?p=4-A) or [employers](/usc/38/4303.md?p=4-A) maintaining the plan by reason of such person’s period or periods of [service in the uniformed services](/usc/38/4303.md?p=13).
    - (B) Each period served by a person in the [uniformed services](/usc/38/4303.md?p=17) shall, upon reemployment under this chapter, be deemed to constitute service with the [employer](/usc/38/4303.md?p=4-A) or [employers](/usc/38/4303.md?p=4-A) maintaining the plan for the purpose of determining the nonforfeitability of the person’s accrued [benefits](/usc/38/4303.md?p=2) and for the purpose of determining the accrual of [benefits](/usc/38/4303.md?p=2) under the plan.
- (b)
  - (1) An [employer](/usc/38/4303.md?p=4-A) reemploying a person under this chapter shall, with respect to a period of service described in [subsection (a)(2)(B)](#a-2-B), be liable to an [employee](/usc/38/4303.md?p=3) [pension](/usc/38/101.md?p=15) [benefit](/usc/38/4303.md?p=2) plan for funding any obligation of the plan to provide the [benefits](/usc/38/4303.md?p=2) described in [subsection (a)(2)](#a-2) and shall allocate the amount of any [employer](/usc/38/4303.md?p=4-A) contribution for the person in the same manner and to the same extent the allocation occurs for other [employees](/usc/38/4303.md?p=3) during the period of service. For purposes of determining the amount of such liability and any obligation of the plan, earnings and forfeitures shall not be included. For purposes of determining the amount of such liability and for purposes of section 515 of the [Employee](/usc/38/4303.md?p=3) Retirement Income Security Act of 1974 or any similar Federal or [State](/usc/38/4101.md?p=6) law governing [pension](/usc/38/101.md?p=15) [benefits](/usc/38/4303.md?p=2) for governmental [employees](/usc/38/4303.md?p=3), [service in the uniformed services](/usc/38/4303.md?p=13) that is deemed under [subsection (a)](#a) to be service with the [employer](/usc/38/4303.md?p=4-A) shall be deemed to be service with the [employer](/usc/38/4303.md?p=4-A) under the terms of the plan or any applicable collective bargaining agreement. In the case of a multiemployer plan, as defined in section 3(37) of the [Employee](/usc/38/4303.md?p=3) Retirement Income Security Act of 1974, any liability of the plan described in this paragraph shall be allocated—
    - (A) by the plan in such manner as the sponsor maintaining the plan shall provide; or
    - (B) if the sponsor does not provide—
      - (i) to the last [employer](/usc/38/4303.md?p=4-A) employing the person before the period served by the person in the [uniformed services](/usc/38/4303.md?p=17), or
      - (ii) if such last [employer](/usc/38/4303.md?p=4-A) is no longer functional, to the plan.
  - (2) A person reemployed under this chapter shall be entitled to accrued [benefits](/usc/38/4303.md?p=2) pursuant to [subsection (a)](#a) that are contingent on the making of, or derived from, [employee](/usc/38/4303.md?p=3) contributions or elective deferrals (as defined in section 402(g)(3) of the Internal Revenue Code of 1986) only to the extent the person makes payment to the plan with respect to such contributions or deferrals. No such payment may exceed the amount the person would have been permitted or required to contribute had the person remained continuously employed by the [employer](/usc/38/4303.md?p=4-A) throughout the period of service described in [subsection (a)(2)(B)](#a-2-B). Any payment to the plan described in this paragraph shall be made during the period beginning with the date of reemployment and whose duration is three times the period of the person’s [service in the uniformed services](/usc/38/4303.md?p=13), such payment period not to exceed five years.
  - (3) For purposes of computing an [employer](/usc/38/4303.md?p=4-A)’s liability under [paragraph (1)](#b-1) or the [employee](/usc/38/4303.md?p=3)’s contributions under [paragraph (2)](#b-2), the [employee](/usc/38/4303.md?p=3)’s [compensation](/usc/38/101.md?p=13) during the period of service described in [subsection (a)(2)(B)](#a-2-B) shall be computed—
    - (A) at the rate the [employee](/usc/38/4303.md?p=3) would have received but for the period of service described in [subsection (a)(2)(B)](#a-2-B), or
    - (B) in the case that the determination of such rate is not reasonably certain, on the basis of the [employee](/usc/38/4303.md?p=3)’s average rate of [compensation](/usc/38/101.md?p=13) during the 12-month period immediately preceding such period (or, if shorter, the period of employment immediately preceding such period).
- (c) Any [employer](/usc/38/4303.md?p=4-A) who reemploys a person under this chapter and who is an [employer](/usc/38/4303.md?p=4-A) contributing to a multiemployer plan, as defined in section 3(37) of the [Employee](/usc/38/4303.md?p=3) Retirement Income Security Act of 1974, under which [benefits](/usc/38/4303.md?p=2) are or may be payable to such person by reason of the obligations set forth in this chapter, shall, within 30 days after the date of such reemployment, provide information, in writing, of such reemployment to the administrator of such plan.

## Source credit

(Added Pub. L. 103–353, § 2(a), Oct. 13, 1994, 108 Stat. 3162; amended Pub. L. 104–275, title III, § 311(8), Oct. 9, 1996, 110 Stat. 3335.)

## Notes

### Editorial Notes

### References in Text

Sections 3 and 515 of the Employee Retirement Income Security Act of 1974, referred to in subsecs. (a)(1)(A), (b)(1), and (c), are classified to sections 1002 and 1145, respectively, of Title 29, Labor.

Section 402(g)(3) of the Internal Revenue Code of 1986, referred to in subsec. (b)(2), is classified to section 402(g)(3) of Title 26, Internal Revenue Code.

### Prior Provisions

A prior section 4318 was renumbered section 7618 of this title.

### Amendments

1996—Subsec. (b)(2). Pub. L. 104–275 substituted “services, such payment period” for “services,” in last sentence.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–275 effective Oct. 13, 1994, see section 313 of Pub. L. 104–275, set out as a note under section 4301 of this title.

### Effective Date

Section effective with respect to reemployments initiated on or after the first day after the 60-day period beginning Oct. 13, 1994, with transition rules, except that an employee pension benefit plan not in compliance with this section or section 8(h)(1) of Pub. L. 103–353 on Oct. 13, 1994, has two years to come into compliance, see section 8 of Pub. L. 103–353, set out as a note under section 4301 of this title.