Mustering-Out Payment Act of 1979

Mustering-Out Payment Act of 1979 - Revises the eligibility requirements for mustering-out payments by removing criteria stipulating active duty during the Korean conflict and an honorable discharge. Grants eligibility to members of the Armed Forces who served on active duty for 90 days or more during the Vietnam era and who were discharged or released under conditions other than dishonorable.

Denies benefits to any individual on account of service as a commissioned officer of the National Oceanic and Atmospheric Administration.

Increases the amount of mustering-out payments: (1) from $300 to $350 for persons who, having performed active duty for 60 days or more, have served outside the continental limits of the United States or in Alaska; and (2) from $200 to $250 for persons who having performed active duty for 60 days or more, have served no part thereof outside the continental limits of the United States or in Alaska.

Changes the time limitations: (1) for entitlement, to discharge or release from active duty under honorable conditions before the date of enactment of this Act; and (2) for application, to any time within two years after the date of enactment of this Act.

Declares that mustering-out payments shall now be assignable. Disqualifies recipients of mustering-out payments from receiving unemployment compensation with respect to weeks of unemployment completed within 60 days after discharge or release.