Mustering-Out Payment Act

Mustering - Out Payment Act - Provides that each member of the Armed Forces who served on active duty for 90 days or more and who was discharged or released from active duty on or after August 5, 1964, and before such date as shall thereafter be determined by Presidential proclamation or concurrent resolution of the Congress, under honorable conditions, shall be eligible for mustering out payments of $350, $250, or $100, depending on the place and length of service.

Specifies members of the Armed Forces ineligible for such payment because of severance or retired pay, type of service, or pay grade.

Requires applications for mustering - out payments to be made within two years of the enactment of this Act.

Authorizes payments to surviving spouses, children, or parents of deceased members of the Armed Forces.

Excludes from gross income under the Internal Revenue Code the mustering-out payments made under this Act.