Victims of Terrorism Compensation Act

Victims of Terrorism Compensation Act - Amends Federal provisions relating to payments to Federal employees, citizens, nationals, or resident aliens who are missing while in active Federal service as a result of hostile action taken against the United States.

Directs the Secretary of the Treasury to establish a savings fund to which the pay and allowance of an individual in a captive status may be allotted.

Directs that the following payments be made to individuals held in captive status (or, where appropriate, to their beneficiaries): (1) medical and health care expenses incident to the employee's captive status; (2) direct cash payments for captive status as of November 4, 1979; (3) certain benefits provided by the Soldiers' and Sailors' Relief Act of 1940; and (4) payments to the spouse or child of a captive for expenses incurred while attending an educational or training institution.

Authorizes the head of an agency, in order to respond to special circumstances, to pay a captive for educational and training expenses.

Directs the President to prescribe regulations under which disability or death compensation may be paid by an agency head to an employee or family member of such employee if the death or disability was caused by hostile action and was a result of the individual's relationship with the Government.

Prohibits leave from being charged to the account of an alien employee while serving abroad for absence due to injuries incurred as a result of hostile action directed against the United States.

Expresses the sense of the Congress that: (1) the recommendation of the report (relating to Iranian captives) entitled "The Final Report and Recommendations of the President's Commission on Hostage Compensation", dated September 21, 1981, is unacceptable and inappropriate; (2) the decision to agree to and abide by the "Declaration of the Government of the Democratic and Popular Republic of Algeria" inappropriately deprived victims of Iran's illegal actions of the right to seek compensation from Iran; and (3) the executive branch has not taken adequate action to seek legislation or otherwise provide appropriate compensation to persons who were held captive in Iran.

Entitles such captives held from November 1979 to January 1981 to a payment of $50,000. Entitles captives who were held beginning in November 1979 and ending before January 1981 to an amount determined by the President taking into account the provisions of this Act.