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Further, the statutory provision, in conjunction with the
implementing directives issued by DOD, simply establishes a
formula for computing the minimum “additional amount” of
compensation retired instructors are entitled to receive from the
employing school and the maximum portion of such additional
amount that will be reimbursed by the Federal Government. See
id. at 675. Moreover, the “additional amount” is not in the form
of basic pay or an allowance afforded to active duty officers.
Id. at 676. Rather, the “additional amount” is tantamount to an
inducement offered to persuade retired personnel to accept
employment as JROTC instructors. Id.
The active duty pay is merely a guideline in determining the
level at which JROTC instructors are to be compensated.
Consequently, each school district is given discretion to
compensate their JROTC instructors in amounts greater than the
statutory “additional amount”, subject to the condition that
there will be no additional reimbursement from the Federal
Government. Thus, the only limitation imposed on school
districts is that instructors must, at a minimum, be paid the
“additional amount” set out in the statute. Id. at 674.
In view of the foregoing, we hold that no portion of the
JROTC pay that petitioner received from HISD is excludable from
gross income pursuant to 10 U.S.C. sec. 2031(d).
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Last modified: May 25, 2011