The placement of veterans and their benefits shall be made in accordance with this Act. Matters not specified in this Act shall be dealt with according to the provisions prescribed in other laws.

The veterans referred to in this Act shall include:
1.Officers, non-commissioned officers, and enlisted men who have completed the contracted length of service and are retired legally.
2. Officers, non-commissioned officers, and enlisted men who encounter difficulty in living and need long-term medical care or home-care after discharge from the services due to illness, injury or physical or mental disabilities caused by war or service.
3.Officers, non-commissioned officers, and enlisted men who have participated in the August 23rd Taiwan Strait Bombardment Campaign in 1958, and/or other important campaigns considered critical to the national security by the Ministry of National Defense.
The Kinmen and Matsu Militia members who have participated in the important campaigns provided by Subparagraph 3 of the preceding Paragraph, are considered veterans. The effective date shall be prepared by Veterans Affairs Council (hereinafter referred to as VAC), and submitted to the Executive Yuan for approval. However, for those who have participated in the August 23rd Taiwan Strait Bombardment Campaign in 1958 ,the effective date is January 1, 2001.
The period of compulsory service could be merged with the service years of Subparagraph 1, Paragraph 1 when transferring to voluntary military service during the compulsory service.
The contracted length of service referred to in section 1 of this article shall be suggested by VAC, and approved by the Executive Yuan.

In implementation of this Act, VAC is designated as the agency-in-charge, concerned ministries, commissions, the municipal, and county (city) governments are the agencies-in-assistance.

Concerning the placement of veterans and their benefits , VAC may, after considering national financial conditions, implement veterans assistance measures which are categorized and ranked by the serving period of the veterans , merits they earned , battles they joined, the extent of service-connected illnesses, injuries, and disabilities, their family conditions , working abilities ,their ages and so on.

To perform its functions, VAC may activate a number of subordinate organizations of various types and formulate regulations governing their management and operation based on the need of placement and the nature of their joint venture enterprises, and submit them to the Executive Yuan for approval and enforcement.

The person who retires or resigns from the position in directly administering the investment business of VAC shall not be designated as an Executive of Investment Enterprises of VAC within 3 years.