-CITE-
    10 USC CHAPTER 71 - COMPUTATION OF RETIRED PAY              01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
                  CHAPTER 71 - COMPUTATION OF RETIRED PAY              

-MISC1-
    Sec.                                                     
    1401.       Computation of retired pay.                           
    1401a.      Adjustment of retired pay and retainer pay to reflect
                 changes in Consumer Price Index.                     
    1402.       Recomputation of retired or retainer pay to reflect
                 later active duty of members who first became members
                 before September 8, 1980.                            
    1402a.      Recomputation of retired or retainer pay to reflect
                 later active duty of members who first became members
                 after September 7, 1980.                             
    1403.       Disability retired pay: treatment under Internal
                 Revenue Code of 1986.                                
    1404.       Applicability of section 8301 of title 5.             
    1405.       Years of service.                                     
    1406.       Retired pay base for members who first became members
                 before September 8, 1980: final basic pay.           
    1407.       Retired pay base for members who first became members
                 after September 7, 1980: high-36 month average.      
    1407a.      Retired pay base: officers retired in general or flag
                 officer grades.                                      
    1408.       Payment of retired or retainer pay in compliance with
                 court orders.                                        
    1409.       Retired pay multiplier.                               
    1410.       Restoral of full retirement amount at age 62 for
                 certain members entering on or after August 1, 1986. 
    1411.       Rules of construction.                                
    1412.       Rounding to next lower dollar.                        
    [1413.      Repealed.]                                            
    1413a.      Combat-related special compensation.                  
    1414.       Members eligible for retired pay who are also eligible
                 for veterans' disability compensation for
                 disabilities rated 50 percent or higher: concurrent
                 payment of retired pay and veterans' disability
                 compensation.                                        

                                AMENDMENTS                            
      2006 - Pub. L. 109-364, div. A, title VI, Sec. 641(b), Oct. 17,
    2006, 120 Stat. 2259, added item 1407a.
      2003 - Pub. L. 108-136, div. A, title VI, Sec. 641(d), (e)(2),
    Nov. 24, 2003, 117 Stat. 1516, 1517, struck out item 1413 "Special
    compensation for certain severely disabled uniformed services
    retirees", and substituted "Combat-related special compensation"
    for "Special compensation for certain combat-related disabled
    uniformed services retirees" in item 1413a and "Members eligible
    for retired pay who are also eligible for veterans' disability
    compensation for disabilities rated 50 percent or higher:
    concurrent payment of retired pay and veterans' disability
    compensation" for "Members eligible for retired pay who have
    service-connected disabilities: payment of retired pay and
    veterans' disability compensation; contingent authority" in item
    1414.
      2002 - Pub. L. 107-314, div. A, title VI, Sec. 636(a)(3), Dec. 2,
    2002, 116 Stat. 2576, added item 1413a.
      2001 - Pub. L. 107-107, div. A, title VI, Sec. 641(c), Dec. 28,
    2001, 115 Stat. 1150, added item 1414.
      1999 - Pub. L. 106-65, div. A, title VI, Secs. 643(b)(3)(B),
    658(a)(2), Oct. 5, 1999, 113 Stat. 664, 669, inserted "certain"
    before "members" in item 1410 and added item 1413.
      1987 - Pub. L. 100-26, Sec. 7(h)(2)(B), Apr. 21, 1987, 101 Stat.
    282, substituted colon for semicolon and "Internal Revenue Code of
    1986" for "Internal Revenue Code of 1954" in item 1403.
      1986 - Pub. L. 99-348, title III, Sec. 304(b)(2), July 1, 1986,
    100 Stat. 703, inserted "of members who first became members before
    September 8, 1980" in item 1402, substituted "Retired pay base for
    members who first became members before September 8, 1980: final
    basic pay" for "Limitations on revocation of retired pay" in item
    1406 and "Retired pay base for members who first became members
    after September 7, 1980: high-36 month average" for "Retired pay
    base" in item 1407, and added items 1409 to 1412.
      1982 - Pub. L. 97-252, title X, Sec. 1002(b), Sept. 8, 1982, 96
    Stat. 735, added item 1408.
      1980 - Pub. L. 96-513, title V, Sec. 511(51)(C), (52)(C), Dec.
    12, 1980, 94 Stat. 2924, 2925, substituted "of members who first
    became members after September 7, 1980" for "in case of members who
    first became members after the enactment of the Department of
    Defense Authorization Act, 1981" in item 1402a, and substituted
    "Internal Revenue Code of 1954" for "title 26" in item 1403.
      Pub. L. 96-342, title VIII, Sec. 813(a)(2), (b)(3)(B), 94 Stat.
    1101, 1104, added items 1402a and 1407.
      1966 - Pub. L. 89-718, Sec. 3, Nov. 2, 1966, 80 Stat. 1115,
    substituted "8301" for "47a" in item 1404.
      Pub. L. 89-652, Sec. 2(2), Oct. 14, 1966, 80 Stat. 902, added
    item 1406.
      1963 - Pub. L. 88-132, Sec. 5(g)(2), Oct. 2, 1963, 77 Stat. 214,
    added item 1401a.
      1958 - Pub. L. 85-422, Sec. 11(a)(1)(B), May 20, 1958, 72 Stat.
    131, added item 1405.

-End-



-CITE-
    10 USC Sec. 1401                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1401. Computation of retired pay

-STATUTE-
      (a) Disability, Non-Regular Service, Warrant Officer, and DOPMA
    Retirement. - The monthly retired pay of a person entitled thereto
    under this subtitle is computed according to the following table.
    For each case covered by a section of this title named in the
    column headed "For sections", retired pay is computed by taking, in
    order, the steps prescribed opposite it in columns 1, 2, 3, and 4,
    as modified by the applicable footnotes.


    Formula No.: 1 
      For sections: 1201, 1204 
      Column 1 - Take: Retired pay base as computed under section
       1406(b) or 1407.                                      
      Column 2 - Multiply by: As member elects - 
      (1) 2(!1/2)% of years of service credited to him under section
       1208; (!1) or                                         
      (2) the percentage of disability on date when retired. 
      Column 3 - Add:   
      Column 4 - Subtract: Excess over 75% of retired pay base upon
       which computation is based.                           
    Formula No.: 2 
      For sections: 1202, 1205 
      Column 1 - Take: Retired pay base as computed under section
       1406(b) or 1407.                                      
      Column 2 - Multiply by: As member elects - 
      (1) 2(!1/2)% of years of service credited to him under section
       1208; (!1) or                                         
      (2) the percentage of disability on date when his name was placed
       on temporary disability retired list.                 
      Column 3 - Add: Amount necessary to increase product of columns 1
       and 2 to 50% of retired pay base upon which computation is
       based.                                                
      Column 4 - Subtract: Excess over 75% of retired pay base upon
       which computation is based.                           
    Formula No.: 4 
      For sections: 580, 1263, 1293, 1305 
      Column 1 - Take: Retired pay base as computed under section
       1406(b) or 1407.                                      
      Column 2 - Multiply by: The retired pay multiplier prescribed in
       section 1409(a) for the years of service credited to him
       under section 1405.                                   
      Column 3 - Add:   
      Column 4 - Subtract:  
    Formula No.: 5 
      For sections: 633, 634, 635, 636, 1251, 1252, 1253 
      Column 1 - Take: Retired pay base as computed under section
       1406(b) or 1407.                                      
      Column 2 - Multiply by: The retired pay multiplier prescribed in
       section 1409(a) for the years of service credited to him
       under section 1405.                                   
      Column 3 - Add:   
      Column 4 - Subtract:  

      (!1) Before applying percentage factor, credit each full month of
    service that is in addition to the number of full years of service
    creditable to the member as one-twelfth of a year and disregard any
    remaining fractional part of a month.
    --------------------------------------------------------------------

      (b) Use of Most Favorable Formula. - If a person would otherwise
    be entitled to retired pay computed under more than one formula of
    the table in subsection (a) or of any other provision of law, the
    person is entitled to be paid under the applicable formula that is
    most favorable to him.

-SOURCE-
    (Aug. 10, 1956, ch. 1041, 70A Stat. 106; Pub. L. 85-422, Secs.
    6(7), 11(a)(2), May 20, 1958, 72 Stat. 129, 131; Pub. L. 88-132,
    Sec. 5(h)(1), Oct. 2, 1963, 77 Stat. 214; Pub. L. 89-132, Sec. 6,
    Aug. 21, 1965, 79 Stat. 547; Pub. L. 90-207, Sec. 3(1), Dec. 16,
    1967, 81 Stat. 653; Pub. L. 92-455, Sec. 1, Oct. 2, 1972, 86 Stat.
    761; Pub. L. 96-342, title VIII, Sec. 813(b)(1), Sept. 8, 1980, 94
    Stat. 1102; Pub. L. 96-513, title I, Sec. 113(a), title V, Sec.
    511(49), Dec. 12, 1980, 94 Stat. 2876, 2924; Pub. L. 98-94, title
    IX, Secs. 922(a)(1), 923(a)(1), (2)(A), Sept. 24, 1983, 97 Stat.
    641, 642; Pub. L. 98-557, Sec. 35(b), Oct. 30, 1984, 98 Stat. 2877;
    Pub. L. 99-348, title II, Sec. 201(a), July 1, 1986, 100 Stat. 691;
    Pub. L. 102-484, div. A, title X, Sec. 1052(18), Oct. 23, 1992, 106
    Stat. 2500; Pub. L. 103-337, div. A, title XVI, Sec. 1662(j)(2),
    Oct. 5, 1994, 108 Stat. 3004; Pub. L. 109-163, div. A, title V,
    Sec. 509(d)(1)(A), Jan. 6, 2006, 119 Stat. 3231; Pub. L. 109-364,
    div. A, title V, Sec. 502(d)(1), Oct. 17, 2006, 120 Stat. 2177.)

-MISC1-



                       HISTORICAL AND REVISION NOTES                   
    --------------------------------------------------------------------
     Revised         Source (U.S. Code)           Source (Statutes at   
     section                                             Large)         
    --------------------------------------------------------------------
    1401         10:600l(f) (1st sentence,     June 29, 1948, ch. 708,  
     Intro        less applicability to         Sec. 303 (1st 91 words  
     ductory      retired grade).               and 1st proviso), 62    
     clause                                     Stat. 1088.             
                                                                        
                                                                        
                                                                        
    1401(1)                                                             
                 34:430(f) (1st sentence,                               
                  less applicability to                                 
                  retired grade).                                       
                 37:272(d) (less 1st 55                                 
                  words; less 104th through                             
                  128th words, as                                       
                  applicable to retired                                 
                  grade; and less 1st, 2d,                              
                  4th, 5th, and last                                    
                  provisos).                                            
                 37:272(e) (1st proviso of                              
                  last sentence).                                       
                                               Oct. 12, 1949, ch. 681,  
                                                Secs. 402(d) (less 30th 
                                                through 55th words; less
                                                104th through 128th     
                                                words, as applicable to 
                                                retired grade; and less 
                                                2d, 5th, and last       
                                                provisos), 402(e) (1st  
                                                proviso of last         
                                                sentence), 63 Stat. 818,
                                                819.                    
    1401(2)      37:272(d) (1st 29, and        May 29, 1954, ch. 249,   
                  51st through 55th, words,     Sec. 14(d) (less 1st    
                  and 4th proviso).             sentence), (f) (1st     
                                                sentence, less          
                                                applicability to retired
                                                grade; and last         
                                                sentence), 68 Stat. 163,
                                                164.                    
                                                                        
                                                                        
    1401(3)                                                             
                 10:1036b (1st 91 words                                 
                  and 1st proviso).                                     
                 34:440j (1st 91 words and                              
                  1st proviso).                                         
    1401(4)      10:600l(d) (2d sentence).                              
                 10:600l(f) (last                                       
                  sentence).                                            
                 34:430(d) (2d sentence).                               
                 34:430(f) (last sentence).                             
      1401,      [No source].                                           
       foot                                                             
       note 1.                                                           
      1401,      [No source].                                           
       foot                                                             
       note 2.                                                           
      1401,      37:272(d) (1st proviso);                               
       foot       10:600l(d) (less 1st and                              
       note 3.     2d sentences).                                        
                 34:430(d) (less 1st and                                
                  2d sentences).                                        
    --------------------------------------------------------------------

      In the introductory paragraph, the applicability of the rule
    stated in the third sentence to situations not expressly covered by
    the laws named in the source statutes above is a practical
    construction that the rule must be reciprocally applied in all
    cases.
      In formula No. 1, the words "whichever is earlier", in 37:272(d)
    (clause (2)), are omitted, since they are contrary to the rule
    stated in 37:272(e) (1st proviso of last sentence).
      In formula No. 3, the computation is based on monthly pay instead
    of annual pay to conform to the other formulas of the revised
    section. The words "basic pay" are substituted for the words "base
    and longevity pay" to conform to the terminology of the Career
    Compensation Act of 1949 (37 U.S.C. 231 et seq.). The words "which
    he would receive if serving, at the time granted such pay, on
    active duty" are omitted as surplusage and to conform to the other
    formulas of the revised section, since the effect of these words is
    covered by footnote 1. The words "at any time" are substituted for
    the words "during his entire period of service".
      Footnotes 1 and 2 reflect the long-standing construction of those
    provisions dealing with computation of retired pay which do not
    specifically provide that the member is entitled to compute his
    retired pay on the basis of the monthly basic pay to which he would
    be entitled if he were on active duty in his retired grade. The
    pertinent basic computation provisions for such retirement either
    provide for computation of retired pay on the same basis as the
    provisions dealing with higher retired grade, or the basic
    retirement provisions were enacted after the provisions authorizing
    higher retired grade. The words "at rates applicable on date of
    retirement * * * and adjust to reflect later changes in permanent
    rates", in footnote 1; and all of footnote 2; are based on the
    source statutes incorporated in the formulas to which footnotes 1
    and 2 apply, as interpreted in an opinion of the Judge Advocate
    General of the Army (1953/4120, 14 May 1953).
      In footnote 3, the words "and disregard a part of a year that is
    less than six months" are made applicable to formulas Nos. 1 and 2.
    The legislative history of the Career Compensation Act of 1949
    (Hearings before the Committee on Armed Services of the Senate on
    H.R. 5007, 81st Congress, First Session, page 313, July 6, 1949)
    indicates that the provisions, upon which formulas Nos. 1 and 2 are
    based, should be construed to require that a fraction of less than
    one-half of a year be disregarded. It also indicates that other
    retirement laws that are also silent on this point should be
    similarly construed.

                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-364 in table inserted "1253"
    after "1252" in column under heading "For sections".
      Pub. L. 109-163 in table inserted "1252" after "1251" in column
    under heading "For sections".
      1994 - Subsec. (a). Pub. L. 103-337 in table struck out formula
    number 3 which provided formula for computing retired pay under
    former section 1331 of this title.
      1992 - Subsec. (a). Pub. L. 102-484 substituted "580" for "564"
    in column in table under heading "For sections".
      1986 - Subsec. (a). Pub. L. 99-348, Sec. 201(a)(1), (2),
    designated existing provision as subsec. (a), added heading, and
    struck out third, fourth, and fifth sentences which read as
    follows: "The amount computed, if not a multiple of $1, shall be
    rounded to the next lower multiple of $1. However, if a person
    would otherwise be entitled to retired pay computed under more than
    one pay formula of this table or of any other provision of law, he
    is entitled to be paid under the applicable formula that is most
    favorable to him. Section references below are to sections of this
    title."
      Pub. L. 99-348, Sec. 201(a)(3), amended column 1 of table
    generally by substituting provisions that retired pay be computed
    by taking the retired pay base as computed under section 1406(b) or
    1407 of this title for provisions that retired pay be computed for
    a person who first became a member of a uniformed service, as
    defined in section 1407(a)(2) of this title, after Sept. 7, 1980,
    by taking the monthly retired pay base as computed under section
    1407(b) of this title, and for all others, by taking the monthly
    basic pay to which the member was entitled under various
    circumstances.
      Pub. L. 99-348, Sec. 201(a)(4), substituted in column 2 of table
    a multiplier of the retired pay multiplier prescribed in section
    1409(a) for the years of service credited to him under section 1405
    for a multiplier of 2 1/2 % of years of service credited under
    section 1405 for formulas 4 and 5 and struck out "Excess over 75%
    of pay upon which computation is based." in column 4 of table for
    formulas 4 and 5.
      Pub. L. 99-348, Sec. 201(a)(5), in columns 3 and 4 substituted
    "retired pay base" for "pay" wherever appearing.
      Pub. L. 99-348, Sec. 201(a)(6), redesignated footnote 3 as 1, and
    struck out former footnote 1 which provided computation at rates
    applicable on date of retirement or date when the member's name was
    placed on temporary disability retired list, as the case may be,
    footnote 2 which provided computation at rates applicable on the
    date when retired pay is granted, footnote 4 which provided
    computation at the highest rates of basic pay applicable to an
    officer who served as Chairman of the Joint Chiefs of Staff, Chief
    of Staff of the Army, Chief of Naval Operations, chief of Staff of
    the Air Force, Commandant of the Marine Corps, or Commandant of the
    Coast Guard, while so serving in that office and computation at the
    highest rate of basic pay applicable to an enlisted person who has
    served as sergeant major of the Army, master chief petty officer of
    the Navy, chief master sergeant of the Air Force, sergeant major of
    the Marine Corps, or master chief petty officer of the Coast Guard,
    while he served if that rate is higher than the rate authorized by
    the table, and footnote 5 which provided for purposes of this
    section that an officer's retired grade be determined as if
    sections 3962(b) and 8962(b) did not apply.
      Pub. L. 99-348, Sec. 201(a)(7), in column 2 of table substituted
    footnote 1 designation for footnote 3 designation wherever
    appearing.
      Subsec. (b). Pub. L. 99-348, Sec. 201(a)(8), added subsec. (b).
      1984 - Pub. L. 98-557 inserted reference to Commandant of the
    Coast Guard in footnote 4 of table.
      1983 - Pub. L. 98-94, Sec. 922(a)(1), inserted "The amount
    computed, if not a multiple of $1, shall be rounded to the next
    lower multiple of $1."
      Pub. L. 98-94, Sec. 923(a)(1), (2)(A), in footnote 3 of table,
    substituted "Before applying percentage factor, credit each full
    month of service that is in addition to the number of full years of
    service creditable to the member as one-twelfth of a year and
    disregard any remaining fractional part of a month" for "Before
    applying percentage factor, credit a part of a year that is six
    months or more as a whole year, and disregard a part of a year that
    is less than six months".
      1980 - Pub. L. 96-513, Sec. 113(a), inserted formula 5 in table
    of formulae set out in the section and added footnote 5.
      Pub. L. 96-513, Sec. 511(49), in formula 4 table of sections
    struck out reference to section 1255, in heading for Column 1
    substituted reference to Sept. 7, 1980, for reference to date of
    enactment of Department of Defense Authorization Act, 1981, and in
    footnote 4 substituted reference to master chief petty officer of
    the Navy, for reference to senior enlisted advisor of the Navy.
      Pub. L. 96-342 in heading for column 1 of table inserted
    provisions respecting applicability to persons becoming members
    after the date of the enactment of the Department of Defense
    Authorization Act, 1981.
      1972 - Pub. L. 92-455 substituted in second sentence of footnote
    4 of table "chief master sergeant of the Air Force, sergeant major
    of the Marine Corps, or master chief petty officer of the Coast
    Guard," for "chief master sergeant of the Air Force, or sergeant
    major of the Marine Corps,".
      1967 - Pub. L. 90-207 inserted sentence to footnote 4 of table
    requiring the computation of retired pay for an enlisted person who
    has served as senior noncommissioned officer of his service at the
    highest rate of basic pay applicable to him while he so served, if
    that rate is higher than the rate authorized by the table.
      1965 - Pub. L. 89-132 struck out "increased, for members credited
    with two or less years of service for basic pay purposes, by 6%"
    from column 1 of formula 1 and column 1 of formula 2.
      1963 - Pub. L. 88-132 struck out from footnote 1 of table ", and
    adjust to reflect later changes in applicable permanent rates"
    after "as the case may be."
      1958 - Pub. L. 85-422, Sec. 6(7)(A), inserted provisions in
    Column 1 of formulas 1 and 2 permitting the taking of the monthly
    basic pay to which a member was entitled on the day before
    retirement or placement on temporary disability retired list,
    increased, for members credited with two or less years of service
    for basic pay purposes, by 6 percent.
      Pub. L. 85-422, Sec. 11(a)(2), substituted "under section 1405 of
    this title" for "in computing basic pay" in column 2 of formula 4.
      Pub. L. 85-422, Sec. 6(7)(B), added footnote 4.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as
    otherwise provided, see section 1691 of Pub. L. 103-337, set out as
    an Effective Date note under section 10001 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Section 35(c) of Pub. L. 98-557 provided that: "The amendments
    made by this section [amending this section and provisions set out
    as a note under section 1009 of Title 37, Pay and Allowances of the
    Uniformed Services] shall become effective on October 1, 1984".

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Section 922(e) of Pub. L. 98-94 provided that: "The amendments
    made by this section [enacting section 6333 of this title and
    amending this section, sections 1401a, 1402, 1402a, 1437, 1451,
    3991, 3992, 6151, 6383, 8991, and 8992 of this title, section 423
    of Title 14, Coast Guard, section 853o of Title 33, Navigation and
    Navigable Waters, section 212 of Title 42, The Public Health and
    Welfare] shall take effect on October 1, 1983."
      Amendment by section 923 of Pub. L. 98-94 applicable with respect
    to the computation of retired or retainer pay of any individual who
    becomes entitled to that pay after Sept. 30, 1983, see section
    923(g) of Pub. L. 98-94, set out as a note under section 1174 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by section 113(a) of Pub. L. 96-513 effective Sept. 15,
    1981, but the authority to prescribe regulations under the
    amendment by Pub. L. 96-513 effective on Dec. 12, 1980, and
    amendment by section 511(49) of Pub. L. 96-513 effective Dec. 12,
    1980, see section 701 of Pub. L. 96-513, set out as a note under
    section 101 of this title.

                     EFFECTIVE DATE OF 1967 AMENDMENT                 
      Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7
    of Pub. L. 90-207, set out as a note under section 203 of Title 37,
    Pay and Allowances of the Uniformed Services.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section
    10 of Pub. L. 89-132, set out as a note under section 203 of Title
    37, Pay and Allowances of the Uniformed Services.

                     EFFECTIVE DATE OF 1963 AMENDMENT                 
      Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section
    14 of Pub. L. 88-132, set out as a note under section 201 of Title
    37, Pay and Allowances of the Uniformed Services.

                     EFFECTIVE DATE OF 1958 AMENDMENT                 
      Amendment by Pub. L. 85-422 effective June 1, 1958, see section 9
    of Pub. L. 85-422.

                       SHORT TITLE OF 1986 AMENDMENT                   
      Section 1(a) of Pub. L. 99-348 provided that: "This Act [enacting
    sections 134a, 1406, 1407, and 1409 to 1412 of this title,
    redesignating former section 1406 of this title as section 1338
    [now 12738] of this title, amending this section, sections 101,
    135, 136a, 716, 1040, 1338 [now 12738], 1401a, 1402, 1402a, 1405,
    1447, 1451, 1452, 2830, 3925, 3991, 3992, 5083, 5201, 6151, 6322,
    6323, 6325, 6326, 6330, 6333, 6383, 8925, 8991, and 8992 of this
    title, sections 5313 and 5314 of Title 5, Government Organization
    and Employees, sections 46, 47, 51, 288, 291 to 293, 327, 334, 353
    to 355, 357, 362, and 421 to 424 of Title 14, Coast Guard, section
    853o of Title 33, Navigation and Navigable Waters, and sections 211
    and 212 of Title 42, The Public Health and Welfare, repealing
    former section 1407 and section 6328 of this title, enacting
    provisions set out as notes under this section and sections 135 and
    12731 of this title, and repealing provisions set out as notes
    under this section and section 6330 of this title] may be cited as
    the 'Military Retirement Reform Act of 1986'."

                       SHORT TITLE OF 1982 AMENDMENT                   
      Pub. L. 97-252, title X, Sec. 1001, Sept. 8, 1982, 96 Stat. 730,
    provided that: "This title [enacting section 1408 of this title,
    amending sections 1072, 1076, 1086, 1447, 1448, and 1450 of this
    title, and enacting provisions set out as notes under sections 1408
    and 2208 of this title] may be cited as the 'Uniformed Services
    Former Spouses' Protection Act'."

    RECOMPUTATION OF RETIRED PAY FOR CERTAIN RECENTLY RETIRED OFFICERS
      Pub. L. 106-65, div. A, title VI, Sec. 601(e), Oct. 5, 1999, 113
    Stat. 648, provided that: "In the case of a commissioned officer of
    the uniformed services who retired during the period beginning on
    April 30, 1999, through December 31, 1999, and who, at the time of
    retirement, was in pay grade O-7, O-8, O-9, or O-10, the retired
    pay of that officer shall be recomputed, effective as of January 1,
    2000, using the rate of basic pay that would have been applicable
    to the computation of that officer's retired pay if the provisions
    of paragraph (2) of section 203(a) of title 37, United States Code,
    as added by subsection (d), had taken effect on April 30, 1999."

                          SIX-MONTH ROUNDING RULE                      
      Section 305(b) of Pub. L. 99-348 provided that:
      "(1) General rule. - Retired pay or retainer pay may not be paid
    to a covered member of the Armed Forces (as defined in paragraph
    (3)) for any month in an amount that is greater than the amount
    otherwise determined to be payable after such reductions as may be
    necessary to reflect adjusting the computation of retired pay or
    retainer pay that includes credit for a part of a year of service
    to permit credit for a part of a year of service only for such
    month or months actually served.
      "(2) Exceptions. - The limitation in paragraph (1) does not apply
    to a member who before January 1, 1982 - 
        "(A) applied for retirement or transfer to the Fleet Reserve or
      Fleet Marine Corps Reserve;
        "(B) was being processed for retirement under the provisions of
      chapter 61 of title 10, United States Code, or who was on the
      temporary disability retired list and thereafter retired under
      the provisions of section 1210(c) or 1210(d) of such title; or
        "(C) was retired or in an inactive status and would have been
      eligible for retired pay under the provisions of chapter 67 [now
      1223] of such title, but for the fact that the person was under
      60 years of age.
      "(3) Definition of covered member. - For the purposes of this
    subsection, the term 'covered member of the Armed Forces' means a
    member of the Armed Forces who became entitled to retired or
    retainer pay during the period beginning on January 1, 1982, and
    ending on September 30, 1983.
      "(4) Repeal of source law. - Section 8054 of the Department of
    Defense Appropriations Act, 1985 (as contained in section 101(h) of
    Public Law 98-473) [formerly set out as a note below], is repealed.
      "(5) Cross reference. - For the effective date of October 1,
    1983, for provisions making permanent programmatic changes in law
    to accomplish the policy provided in such section 8054 (and prior
    provisions of law), see section 923(h) of the Department of Defense
    Authorization Act, 1984 (Public Law 98-94) [probably means section
    923(g) of Pub. L. 98-94, set out as an Effective Date of 1983
    Amendment note under section 1174 of this title]."

        LIMITATION ON PAYMENT OF RETIRED OR RETAINER PAY TO REFLECT
                        FRACTIONAL YEAR ADJUSTMENTS
      Pub. L. 98-473, title I, Sec. 101(h) [title VIII, Sec. 8054],
    Oct. 12, 1984, 98 Stat. 1904, 1933, prohibited, with certain
    exceptions, payment of retired pay or retainer pay of a member of
    the Armed Forces for any month who, on or after January 1, 1982,
    became entitled to retired or retainer pay, in an amount greater
    than the amount otherwise determined payable after reductions
    necessary to reflect adjusting the computation of retired pay or
    retainer pay that includes credit for part of a year of service to
    permit credit for a part of a year of service only for such month
    or months actually served, prior to repeal by Pub. L. 99-348, title
    III, Sec. 305(b)(4), July 1, 1986, 100 Stat. 705.

      INCREASE IN PAY AND ALLOWANCES OF CERTAIN PERSONS WHO SERVED AS
     GENERALS OF THE ARMY, FLEET ADMIRALS OF THE NAVY, GENERAL OF THE
                MARINE CORPS, OR ADMIRAL IN THE COAST GUARD
      Section 5 of Pub. L. 90-207 provided that: "Notwithstanding any
    other provision of law, a member of an armed force who is entitled
    to pay and allowances under any of the following provisions of law
    on September 30, 1967, shall continue to receive the pay and
    allowances to which he was entitled on that day plus an increase of
    4.5 per centum in the total of his pay and allowances:
        "(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).
        "(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).
        "(3) The Act of September 18, 1950, chapter 952 (64 Stat.
      A224)."

    INCREASE IN RETIRED OR RETAINER PAY OF MEMBERS ENTITLED THERETO ON
                         OR AFTER OCTOBER 1, 1967
      Section 6 of Pub. L. 90-207 provided that: "Notwithstanding any
    other provision of law, a member or former member of a uniformed
    service who initially becomes entitled to retired pay or retainer
    pay on or after October 1, 1967, shall be entitled to have that pay
    computed using the rates of basic pay prescribed by the first
    section of this Act [amending section 203(a) of Title 37]."

                   INCREASES IN RETIRED OR RETAINER PAY               
      Pub. L. 89-501, title III, Sec. 303, July 13, 1966, 80 Stat. 278,
    provided that: "Notwithstanding any other provision of law, a
    member or former member of a uniformed service who initially
    becomes entitled to retired pay or retainer pay on the effective
    date of this title shall be entitled to have that pay computed
    using the rates of basic pay prescribed by the first section of
    this title [amending section 203(a) of Title 37]."
      Effective date of section 303 of Pub. L. 89-501 as the first day
    of the first pay period which begins on or after July 1, 1966, see
    section 304 of Pub. L. 89-501, set out as Effective Date of 1966
    Amendments note under section 203 of Title 37, Pay and Allowances
    of the Uniformed Services.
      Section 5(a) of Pub. L. 89-132 provided that: "The retired pay or
    retainer pay of a member or former member of a uniformed service
    who is entitled to that pay computed under rates of basic pay in
    effect before the effective date of this Act [Sept. 1, 1965] shall
    be increased, effective that date, by the per centum (adjusted to
    the nearest one-tenth of 1 per centum) that the Consumer Price
    Index (all items - United States city average), published by the
    Bureau of Labor Statistics, for the calendar month immediately
    preceding the effective date of this Act has increased over the
    average monthly index for calendar year 1962."

    CONTINUATION OF PAY AND ALLOWANCES OF CERTAIN PERSONS WHO SERVED AS
     GENERALS OF THE ARMY, FLEET ADMIRALS OF THE NAVY, GENERAL OF THE
                MARINE CORPS, OR ADMIRAL IN THE COAST GUARD
      Section 7 of Pub. L. 89-132 provided that: "Notwithstanding any
    other provision of law, a member of an armed force who was entitled
    to pay and allowances under any of the following provisions of law
    on the day before the effective date of this Act [Sept. 1, 1965]
    shall continue to receive the pay and allowances to which he was
    entitled on that day:
        "(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).
        "(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).
        "(3) The Act of September 18, 1950, chapter 952 (64 Stat.
      A224)."

      INCREASE IN RETIRED PAY TO PERSONS RETIRED BEFORE JUNE 1, 1958  
      Section 4 of Pub. L. 85-422, as amended by Pub. L. 85-855, Sec.
    1(a), Aug. 28, 1958, 72 Stat. 1104, provided that:
      "(a) Except for members covered by section 7 of this Act, members
    and former members of the uniformed services who are entitled to
    retired pay, retirement pay, retainer pay, or equivalent pay, on
    the day before the effective date of this Act [June 1, 1958], shall
    be entitled to an increase of 6 per centum of that pay to which
    they were entitled on that date.
      "(b) Notwithstanding any other provision of law, a member of a
    uniformed service retired under any provision of law, or
    transferred to the Fleet Reserve or Fleet Marine Corps Reserve, on
    the effective date of this Act [June 1, 1958] shall have his
    retired pay or retainer pay computed on the basis of the rates of
    basic pay set forth in the Career Compensation Act of 1949, as
    amended by this Act, or on the rates of basic pay set forth in the
    Career Compensation Act of 1949 on the day before the effective
    date of this Act, plus 6 per centum of that pay, whichever is
    greater.
      "(c) Section 5 of the Career Incentive Act of 1955 (69 Stat. 22)
    does not apply to any person who is retired, or to whom retired
    pay, retirement pay, retainer pay, or equivalent pay (including
    temporary disability retired pay) is granted, on or after the
    effective date of this Act [June 1, 1958]".
      Section 1(b) of Pub. L. 85-855 provided that the amendment of
    section 4(a) of Pub. L. 85-422, which eliminated the words "and
    persons with two or less years of service for basic pay purposes
    who were retired for physical disability or placed on the temporary
    disability retired list" preceding "members and former members"
    should be effective June 1, 1958.

                           PUBLIC HEALTH SERVICE                       
      Authority vested by this chapter in "military departments", "the
    Secretary concerned", or "the Secretary of Defense" to be
    exercised, with respect to commissioned officers of Public Health
    Service, by Secretary of Health and Human Services or his designee,
    see section 213a of Title 42, The Public Health and Welfare.

              NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION          
      Authority vested by this chapter in "military departments", "the
    Secretary concerned", or "the Secretary of Defense" to be
    exercised, with respect to commissioned officer corps of National
    Oceanic and Atmospheric Administration, by Secretary of Commerce or
    Secretary's designee, see section 3071 of Title 33, Navigation and
    Navigable Waters.

-End-



-CITE-
    10 USC Sec. 1401a                                           01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1401a. Adjustment of retired pay and retainer pay to reflect
      changes in Consumer Price Index

-STATUTE-
      (a) Prohibition on Recomputation To Reflect Increases in Basic
    Pay. - Unless otherwise specifically provided by law, the retired
    pay of a member or former member of an armed force may not be
    recomputed to reflect any increase in the rates of basic pay for
    members of the armed forces.
      (b) Cost-of-Living Adjustments Based on CPI Increases. - 
        (1) Increase required. - Effective on December 1 of each year,
      the Secretary of Defense shall increase the retired pay of
      members and former members entitled to that pay in accordance
      with paragraphs (2) and (3).
        (2) Percentage increase. - Except as otherwise provided in this
      subsection, the Secretary shall increase the retired pay of each
      member and former member by the percent (adjusted to the nearest
      one-tenth of 1 percent) by which - 
          (A) the price index for the base quarter of that year,
        exceeds
          (B) the base index.

        (3) Reduced percentage for certain post-august 1, 1986 members.
      - If the percent determined under paragraph (2) is greater than 1
      percent, the Secretary shall increase the retired pay of each
      member and former member who first became a member on or after
      August 1, 1986, and has elected to receive a bonus under section
      322 of title 37, by the difference between - 
          (A) the percent determined under paragraph (2); and
          (B) 1 percent.

        (4) Special rule for paragraph (3). - If in any case in which
      an increase in retired pay that would otherwise be made under
      paragraph (3) is not made by reason of law (other than any
      provision of this section), then (unless otherwise provided by
      law) when the next increase in retired pay is made under this
      subsection, the increase under paragraph (3) shall be carried out
      so as to achieve the same net increase in retired pay under that
      paragraph that would have been the case if that law had not been
      enacted.
        (5) Regulations. - Any increase in retired pay under this
      subsection shall be made in accordance with regulations
      prescribed by the Secretary of Defense.

      (c) First COLA Adjustment for Members With Retired Pay Computed
    Using Final Basic Pay. - 
        (1) First adjustment with intervening increase in basic pay. -
      Notwithstanding subsection (b) but subject to subsection (f)(2),
      if a person described in paragraph (3) becomes entitled to
      retired pay based on rates of monthly basic pay that became
      effective after the last day of the calendar quarter of the base
      index, the retired pay of the member or former member shall be
      increased on the effective date of the next adjustment of retired
      pay under subsection (b) only by the percent (adjusted to the
      nearest one-tenth of 1 percent) by which - 
          (A) the price index for the base quarter of that year,
        exceeds
          (B) the price index for the calendar quarter immediately
        before the calendar quarter in which the rates of monthly basic
        pay on which the retired pay is based became effective.

        (2) First adjustment with no intervening increase in basic pay.
      - If a person described in paragraph (3) becomes entitled to
      retired pay on or after the effective date of an adjustment in
      retired pay under subsection (b) but before the effective date of
      the next increase in the rates of monthly basic pay, the retired
      pay of the member or former member shall be increased (subject to
      subsection (f)(2) as applied to other members whose retired pay
      is computed on the current rates of basic pay in the most recent
      adjustment under this section), effective on the date the member
      becomes entitled to that pay, by the percent (adjusted to the
      nearest one-tenth of 1 percent) by which - 
          (A) the base index, exceeds
          (B) the price index for the calendar quarter immediately
        before the calendar quarter in which the rates of monthly basic
        pay on which the retired pay is based became effective.

        (3) Members covered. - Paragraphs (1) and (2) apply to a member
      or former member of an armed force who first became a member of a
      uniformed service before August 1, 1986, and whose retired pay
      base is determined under section 1406 of this title.

      (d) First COLA Adjustment for Members With Retired Pay Computed
    Using High-Three. - Notwithstanding subsection (b) but subject to
    subsection (f)(2), the retired pay of a member or former member of
    an armed force who first became a member of a uniformed service
    before August 1, 1986, or on or after August 1, 1986, if the member
    or former member did not elect to receive a bonus under section 322
    of title 37 and whose retired pay base is determined under section
    1407 of this title shall be increased on the effective date of the
    first adjustment of retired pay under subsection (b) after the
    member or former member becomes entitled to retired pay by the
    percent (adjusted to the nearest one-tenth of 1 percent) equal to
    the difference between the percent by which - 
        (1) the price index for the base quarter of that year, exceeds
        (2) the price index for the calendar quarter immediately before
      the calendar quarter during which the member became entitled to
      retired pay.

      (e) Pro Rating of Initial Adjustment. - Notwithstanding
    subsection (b) but subject to subsection (f)(2), the retired pay of
    a member or former member of an armed force who first became a
    member of a uniformed service on or after August 1, 1986, and
    elected to receive a bonus under section 322 of title 37 shall be
    increased on the effective date of the first adjustment of retired
    pay under subsection (b) after the member or former member becomes
    entitled to retired pay by the percent (adjusted to the nearest one-
    tenth of 1 percent) equal to the difference between - 
        (1) the percent by which - 
          (A) the price index for the base quarter of that year,
        exceeds
          (B) the price index for the calendar quarter immediately
        before the calendar quarter during which the member became
        entitled to retired pay; and

        (2) one-fourth of 1 percent for each calendar quarter from the
      quarter described in paragraph (1)(B) to the quarter described in
      paragraph (1)(A).

    If in any case the percent described in paragraph (2) exceeds the
    percent determined under paragraph (1), such an increase shall not
    be made.
      (f) Prevention of Pay Inversions. - 
        (1) Prevention of retired pay inversions. - Notwithstanding any
      other provision of law, the monthly retired pay of a member or a
      former member of an armed force who initially became entitled to
      that pay on or after January 1, 1971, may not be less than the
      monthly retired pay to which he would be entitled if he had
      become entitled to retired pay at an earlier date based on the
      grade in which the member is retired, adjusted to reflect any
      applicable increases in such pay under this section. In computing
      the amount of retired pay to which such a member or former member
      would have been entitled on that earlier date, the computation
      shall be based on his grade, length of service, and the rate of
      basic pay applicable to him at that time, except that such
      computation may not be based on a rate of basic pay for a grade
      higher than the grade in which the member is retired. This
      subsection does not authorize any increase in the monthly retired
      pay to which a member was entitled for any period before October
      7, 1975.
        (2) Prevention of cola inversions. - The percentage of the
      first adjustment under this section in the retired pay of any
      person, as determined under subsection (c)(1), (c)(2), (d), or
      (e), may not exceed the percentage increase in retired pay
      determined under subsection (b)(2) that is effective on the same
      date as the effective date of such first adjustment.

      (g) Definitions. - In this section:
        (1) The term "price index" means the Consumer Price Index (all
      items, United States city average) published by the Bureau of
      Labor Statistics.
        (2) The term "base quarter" means the calendar quarter ending
      on September 30 of each year.
        (3) The term "base index" means the price index for the base
      quarter for the most recent adjustment under subsection (b).
        (4) The term "retired pay" includes retainer pay.

      (h) Price Index for a Quarter. - For purposes of this section,
    the price index for a calendar quarter is the arithmetical mean of
    the price index for the three months comprising that quarter.

-SOURCE-
    (Added Pub. L. 88-132, Sec. 5(g)(1), Oct. 2, 1963, 77 Stat. 213;
    amended Pub. L. 89-132, Sec. 5(b), Aug. 21, 1965, 79 Stat. 547;
    Pub. L. 90-207, Sec. 2(a)(1), Dec. 16, 1967, 81 Stat. 652; Pub. L.
    91-179, Sec. 1, Dec. 30, 1969, 83 Stat. 837; Pub. L. 94-106, title
    VIII, Sec. 806, Oct. 7, 1975, 89 Stat. 538; Pub. L. 94-361, title
    VIII, Sec. 801(a), July 14, 1976, 90 Stat. 929; Pub. L. 94-440,
    title XIII, Sec. 1306(d)(1), Oct. 1, 1976, 90 Stat. 1462; Pub. L.
    96-342, title VIII, Sec. 812(b)(1), Sept. 8, 1980, 94 Stat. 1098;
    Pub. L. 98-94, title IX, Secs. 921(a)(1), (b), 922(a)(2), Sept. 24,
    1983, 97 Stat. 640, 641; Pub. L. 98-525, title XIV, Sec. 1405(26),
    Oct. 19, 1984, 98 Stat. 2623; Pub. L. 99-348, title I, Sec. 102,
    July 1, 1986, 100 Stat. 683; Pub. L. 100-180, div. A, title XII,
    Sec. 1231(21), Dec. 4, 1987, 101 Stat. 1161; Pub. L. 100-224, Sec.
    1, Dec. 30, 1987, 101 Stat. 1536; Pub. L. 100-456, div. A, title
    VI, Sec. 622(a), Sept. 29, 1988, 102 Stat. 1983; Pub. L. 101-189,
    div. A, title VI, Sec. 651(b)(1), Nov. 29, 1989, 103 Stat. 1460;
    Pub. L. 103-66, title II, Sec. 2001, Aug. 10, 1993, 107 Stat. 335;
    Pub. L. 103-160, div. A, title XI, Sec. 1182(e), Nov. 30, 1993, 107
    Stat. 1773; Pub. L. 103-335, title VIII, Sec. 8114A(b)(1), Sept.
    30, 1994, 108 Stat. 2648; Pub. L. 103-337, div. A, title VI, Sec.
    633(a), Oct. 5, 1994, 108 Stat. 2787; Pub. L. 104-106, div. A,
    title VI, Sec. 631(a), (c), Feb. 10, 1996, 110 Stat. 364, 365; Pub.
    L. 104-201, div. A, title VI, Secs. 631(a), 632(a), Sept. 23, 1996,
    110 Stat. 2549; Pub. L. 106-65, div. A, title VI, Secs. 641(b),
    643(b)(1), title X, Sec. 1066(a)(10), Oct. 5, 1999, 113 Stat. 662,
    663, 771; Pub. L. 107-314, div. A, title VI, Sec. 633, Dec. 2,
    2002, 116 Stat. 2572.)


-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (c)(1). Pub. L. 107-314, Sec. 633(a)(1), inserted
    "but subject to subsection (f)(2)" after "Notwithstanding
    subsection (b)" in introductory provisions.
      Subsec. (c)(2). Pub. L. 107-314, Sec. 633(a)(2), inserted
    "(subject to subsection (f)(2) as applied to other members whose
    retired pay is computed on the current rates of basic pay in the
    most recent adjustment under this section)" after "shall be
    increased" in introductory provisions.
      Subsec. (d). Pub. L. 107-314, Sec. 633(a)(1), (b)(1), in
    introductory provisions, inserted "but subject to subsection
    (f)(2)" after "Notwithstanding subsection (b)" and "or on or after
    August 1, 1986, if the member or former member did not elect to
    receive a bonus under section 322 of title 37" after "August 1,
    1986,".
      Subsec. (e). Pub. L. 107-314, Sec. 633(a)(1), (b)(2), in
    introductory provisions, inserted "but subject to subsection
    (f)(2)" after "Notwithstanding subsection (b)" and "and elected to
    receive a bonus under section 322 of title 37" after "August 1,
    1986,".
      Subsec. (f). Pub. L. 107-314, Sec. 633(a)(3), designated existing
    provisions as par. (1), inserted par. heading, realigned margins,
    and added par. (2).
      1999 - Subsec. (b)(1). Pub. L. 106-65, Sec. 643(b)(1)(A),
    substituted "Increase required" for "In general" in heading.
      Subsec. (b)(2). Pub. L. 106-65, Sec. 1066(a)(10), struck out
    subpar. (A) designation and heading "General rule", redesignated
    cls. (i) and (ii) as subpars. (A) and (B), respectively, and
    realigned their margins, and struck out former subpars. (B) and (C)
    which read as follows:
      "(B) Special rule for fiscal year 1996. - In the case of the
    increase in retired pay that, pursuant to paragraph (1), becomes
    effective on December 1, 1995, the initial month for which such
    increase is payable as part of such retired pay shall
    (notwithstanding such December 1 effective date) be March 1996.
      "(C) Inapplicability to disability retirees. - Subparagraph (B)
    does not apply with respect to the retired pay of a member retired
    under chapter 61 of this title."
      Pub. L. 106-65, Sec. 643(b)(1)(B), substituted "Percentage
    increase" for "Pre-august 1, 1986 members" in heading.
      Pub. L. 106-65, Sec. 641(b)(1), substituted "Except as otherwise
    provided in this subsection, the Secretary shall increase the
    retired pay of each member and former member" for "The Secretary
    shall increase the retired pay of each member and former member who
    first became a member of a uniformed service before August 1,
    1986,".
      Subsec. (b)(3). Pub. L. 106-65, Sec. 643(b)(1)(C), substituted
    "Reduced percentage for certain post-august 1, 1986 members" for
    "Post-august 1, 1986 members" in heading.
      Pub. L. 106-65, Sec. 641(b)(2), inserted "and has elected to
    receive a bonus under section 322 of title 37," after "August 1,
    1986,".
      1996 - Subsec. (b)(2)(B). Pub. L. 104-201, Sec. 631(a),
    substituted "Special rule for fiscal year 1996" for "Special rules
    for fiscal years 1996 and 1998" as subpar. heading, struck out cl.
    (i) designation and heading "Fiscal year 1996" before "In the case
    of", and struck out cl. (ii) which read as follows: "Fiscal year
    1998. - In the case of the increase in retired pay that, pursuant
    to paragraph (1), becomes effective on December 1, 1997, the
    initial month for which such increase is payable as part of such
    retired pay shall (notwithstanding such December 1 effective date)
    be September 1998."
      Pub. L. 104-106, Sec. 631(c), repealed Pub. L. 103-335, Sec.
    8114A(b)(1). See 1994 Amendment note below.
      Pub. L. 104-106, Sec. 631(a), amended subpar. (B) generally.
    Prior to amendment, subpar. (B) read as follows: "Special rules for
    fiscal years 1994 through 1998. - 
        "(i) Fiscal year 1994. - In the case of an increase in retired
      pay that, pursuant to paragraph (1), becomes effective on
      December 1, 1993, the initial month for which such increase is
      payable as part of such retired pay shall (notwithstanding such
      December 1 effective date) be March 1994.
        "(ii) Fiscal years 1995 through 1998. - In the case of an
      increase in retired pay that, pursuant to paragraph (1), becomes
      effective on December 1 of 1994, 1995, 1996, or 1997, the initial
      month for which such increase is payable as part of such retired
      pay shall (notwithstanding such December 1 effective date) be
      September of the following year."
      Subsec. (c). Pub. L. 104-201, Sec. 632(a), added subsec. (c) and
    struck out former subsec. (c) which read as follows: "Rule for
    First Adjustment After Retirement With Intervening Increase in
    Basic Pay. - Notwithstanding subsection (b), if a member or former
    member of an armed force who first became a member of a uniformed
    service before August 1, 1986, becomes entitled to retired pay
    based on rates of monthly basic pay that became effective after the
    last day of the calendar quarter of the base index, the retired pay
    of the member or former member shall be increased on the effective
    date of the next adjustment of retired pay under subsection (b)
    only by the percent (adjusted to the nearest one-tenth of 1
    percent) by which - 
        "(1) the price index for the base quarter of that year, exceeds
        "(2) the price index for the calendar quarter immediately
      before the calendar quarter in which the rates of monthly basic
      pay on which the retired pay is based became effective."
      Subsec. (d). Pub. L. 104-201, Sec. 632(a), added subsec. (d) and
    struck out former subsec. (d) which read as follows: "Rule for
    First Adjustment After Retirement With No Intervening Increase in
    Basic Pay. - If a member or former member of an armed force who
    first became a member of a uniformed service before August 1, 1986,
    becomes entitled to retired pay on or after the effective date of
    an adjustment in retired pay under subsection (b) but before the
    effective date of the next increase in the rates of monthly basic
    pay, the retired pay of the member or former member shall be
    increased, effective on the date the member becomes entitled to
    that pay, by the percent (adjusted to the nearest one-tenth of 1
    percent) by which - 
        "(1) the base index, exceeds
        "(2) the price index for the calendar quarter immediately
      before the calendar quarter in which the rates of monthly basic
      pay on which the retired pay is based became effective."
      1994 - Subsec. (b)(2)(B). Pub. L. 103-335, Sec. 8114A(b)(1),
    which directed substituting, in heading, "through 1996" for
    "through 1998" and substituting, in cl. (ii), "and 1996" for
    "through 1998", "of 1994 or 1995" for "of 1994, 1995, 1996, or
    1997", and "March" for "September", was repealed by Pub. L. 104-
    106, Sec. 631(c).
      Subsec. (f). Pub. L. 103-337 inserted "based on the grade in
    which the member is retired" after "at an earlier date" in first
    sentence and ", except that such computation may not be based on a
    rate of basic pay for a grade higher than the grade in which the
    member is retired" before period at end of second sentence and
    struck out after second sentence "However, in the case of a member
    who, after initially becoming eligible for retired pay, is reduced
    in grade pursuant to a sentence of a court-martial, such
    computation may not be based on a grade higher than the grade in
    which the member is retired."
      1993 - Subsec. (b)(2). Pub. L. 103-160, Sec. 1182(e)(1), amended
    par. (2) generally. Prior to amendment, par. (2) read as follows:
    "Except as provided in paragraph (6), the Secretary shall increase
    the retired pay of each member and former member who first became a
    member of a uniformed service before August 1, 1986, by the percent
    (adjusted to the nearest one-tenth of 1 percent) by which - 
        "(A) the price index for the base quarter of that year, exceeds
        "(B) the base index."
      Pub. L. 103-66, Sec. 2001(1), substituted "Except as provided in
    paragraph (6), the Secretary" for "The Secretary".
      Subsec. (b)(6). Pub. L. 103-160, Sec. 1182(e)(2), struck out par.
    (6) which read as follows: "Special rules for paragraph (2) for
    fiscal years 1994 through 1998. - 
        "(A) Fiscal year 1994. - In the case of an increase in the
      retired pay of a member or former member referred to in paragraph
      (2) that, pursuant to paragraph (1), becomes effective on
      December 1, 1993, the initial month for which such increase is
      payable as part of such retired pay shall (notwithstanding such
      December 1 effective date) be March 1994.
        "(B) Fiscal years 1995 through 1998. - In the case of an
      increase in retired pay of a member or former member referred to
      in paragraph (2) that, pursuant to paragraph (1), becomes
      effective on December 1 of 1994, 1995, 1996, or 1997, the initial
      month for which such increase is payable as part of such retired
      pay shall (notwithstanding such December 1 effective date) be
      September of the following year.
        "(C) Inapplicability to disability retirees. - Subparagraphs
      (A) and (B) do not apply with respect to the retired pay of a
      member retired under chapter 61 of this title."
      Pub. L. 103-66, Sec. 2001(2), added par. (6).
      1989 - Subsec. (b)(3). Pub. L. 101-189, Sec. 651(b)(1)(A),
    inserted "and former member" after first reference to "member".
      Subsec. (e). Pub. L. 101-189, Sec. 651(b)(1)(B), inserted "or
    former member" after first and third reference to "member".
      Subsec. (f). Pub. L. 101-189, Sec. 651(b)(1)(C), inserted "or
    former member" after "member" in second sentence.
      1988 - Subsec. (f). Pub. L. 100-456 inserted after second
    sentence "However, in the case of a member who, after initially
    becoming eligible for retired pay, is reduced in grade pursuant to
    a sentence of a court-martial, such computation may not be based on
    a grade higher than the grade in which the member is retired."
      1987 - Subsec. (a). Pub. L. 100-180 struck out "pay" after "the
    retired pay".
      Subsec. (b)(4), (5). Pub. L. 100-224, Sec. 1(a), added par. (4)
    and redesignated former par. (4) as (5).
      Subsec. (e). Pub. L. 100-224, Sec. 1(b), substituted "by the
    percent (adjusted to the nearest one-tenth of 1 percent) equal to
    the difference between - 
        "(1) the percent by which - 
          "(A) the price index for the base quarter of that year,
        exceeds
          "(B) the price index for the calendar quarter immediately
        before the calendar quarter during which the member became
        entitled to retired pay; and
        "(2) one-fourth of 1 percent for each calendar quarter from the
      quarter described in paragraph (1)(B) to the quarter described in
      paragraph (1)(A).
    If in any case the percent described in paragraph (2) exceeds the
    percent determined under paragraph (1), such an increase shall not
    be made." for "only by the percent (adjusted to the nearest one-
    tenth of 1 percent) by which - 
        "(1) the price index for the base quarter of that year, exceeds
        "(2) the price index for the calendar quarter immediately
      before the calendar quarter in which the member became entitled
      to retired pay."
      1986 - Subsec. (a). Pub. L. 99-348, Sec. 102(b)(1), (c)(1),
    inserted heading, struck out "or retainer" after "retired pay", and
    struck out sentence defining "Index" in this section as meaning the
    Consumer Price Index (all items, United States city average)
    published by the Bureau of Labor Statistics.
      Subsecs. (b) to (d). Pub. L. 99-348, Sec. 102(a), added subsecs.
    (b) to (d) and struck out former subsecs. (b) to (d) which read as
    follows:
      "(b) Each time that an increase is made under section 8340(b) of
    title 5 in annuities paid under subchapter III of chapter 83 of
    such title, the Secretary of Defense shall at the same time
    increase the retired and retainer pay of members and former members
    of the armed forces by the same percent as the percentage by which
    annuities are increased under such section.
      "(c) Notwithstanding subsection (b), if a member or former member
    of an armed force becomes entitled to retired pay or retainer pay
    based on rates of monthly basic pay prescribed by section 203 of
    title 37 that became effective after the last day of the month of
    the base index, his retired pay or retainer pay shall be increased
    on the effective date of the next adjustment of retired pay and
    retainer pay under subsection (b) only by the percent (adjusted to
    the nearest one-tenth of 1 percent) that the new base index exceeds
    the index for the calendar month immediately before that in which
    the rates of monthly basic pay on which his retired pay or retainer
    pay is based became effective.
      "(d) If a member or former member of an armed force becomes
    entitled to retired pay or retainer pay on or after the effective
    date of an adjustment of retired pay and retainer pay under
    subsection (b) but before the effective date of the next increase
    in the rates of monthly basic pay prescribed by section 203 of
    title 37, his retired pay or retainer pay shall be increased,
    effective on the date he becomes entitled to that pay, by the
    percent (adjusted to the nearest one-tenth of 1 percent) that the
    base index exceeds the index for the calendar month immediately
    before that in which the rates of monthly basic pay on which his
    retired pay or retainer pay is based became effective."
      Subsec. (e). Pub. L. 99-348, Sec. 102(a), added subsec. (e).
      Subsec. (f). Pub. L. 99-348, Sec. 102(c)(2), inserted heading and
    struck out "or retainer" after "retired" wherever appearing.
      Subsecs. (g), (h). Pub. L. 99-348, Sec. 102(b)(2), added subsecs.
    (g) and (h) and struck out former subsec. (g) which provided that
    the retired or retainer pay of a member or former member of an
    armed force as adjusted under this section, if not a multiple of
    $1, would be rounded to the next lower multiple of $1.
      1984 - Subsec. (f). Pub. L. 98-525 substituted "before October 7,
    1975" for "prior to the effective date of this subsection".
      1983 - Subsec. (e). Pub. L. 98-94, Sec. 921(a)(1), struck out
    subsec. (e) which provided that: "Notwithstanding subsections (c)
    and (d), the adjusted retired pay or retainer pay of a member or
    former member of an armed force retired on or after October 1,
    1967, may not be less than it would have been had he become
    entitled to retired pay or retainer pay based on the same pay
    grade, years of service for pay, years of service for retired or
    retainer pay purposes, and percent of disability, if any, on the
    day before the effective date of the rates of monthly basic pay on
    which his retired pay or retainer pay is based."
      Subsec. (f). Pub. L. 98-94, Sec. 921(b), struck out ", subject to
    subsection (e) of this section," after "the computation shall".
      Subsec. (g). Pub. L. 98-94, Sec. 922(a)(2), added subsec. (g).
      1980 - Subsec. (b). Pub. L. 96-342 substituted provisions
    directing the Secretary of Defense to increase the retired and
    retainer pay of members and former members of the armed forces each
    time that an increase is made under section 8340(b) of title 5 in
    annuities paid under subchapter III of chapter 83 of title 5, with
    such increase to be by the same percent as the percentage by which
    the annuities are increased for provisions under which the
    Secretary of Defense had been authorized and directed to increase
    the retired pay and retainer pay of members and former members of
    the armed forces on March 1 and September 1 depending upon
    determinations which the Secretary was directed to make on January
    1 and July 1 of each year with regards to the percentage change in
    the index published for June or December of the previous year.
      1976 - Subsec. (b). Pub. L. 94-440 substituted provisions that
    Secretary of Defense shall determine the percent change in the
    index on Jan. 1 and July 1 of each year and effective Mar. 1 and
    Sept. 1, retired and retainer pay shall be increased by the
    computed percent change adjusted to the nearest  1/10  of 1
    percent, for provisions that the Secretary of Defense shall
    determine on a monthly basis the percent by which the index has
    increased over that used as a basis for the most recent adjustment
    of retired and retainer pay and if Secretary determines for 3
    consecutive months that the amount of increase is at least 3
    percent over the base index, retired and retainer pay shall be
    increased by adding 1 percent and the highest percent increase in
    the index during those months adjusted to the nearest  1/10  of 1
    percent.
      Pub. L. 94-361 struck out "the per centum obtained by adding 1
    per centum and" before "the highest per centum of increase in the
    index".
      1975 - Subsec. (f). Pub. L. 94-106 added subsec. (f).
      1969 - Subsec. (b). Pub. L. 91-179 provided for a 1 percent
    addition in computing increases in retired and retainer pay of
    present and former members of the armed forces, whenever the
    Secretary made such adjustments to effect increases in the consumer
    index over the base index.
      1967 - Subsec. (a). Pub. L. 90-207 substituted "may not be
    recomputed" for "shall not be recomputed", struck out "if that
    increase becomes effective after the effective date of this
    section" after "armed forces" and inserted sentence defining
    "Index".
      Subsec. (b). Pub. L. 90-207 revised subsec. (b) generally and,
    among other changes, substituted provisions requiring the Secretary
    of Defense to determine monthly the percent by which the index has
    increased over that used as the basis for the most recent
    adjustment of retired and retainer pay under this subsection for
    provisions which required the Secretary of Defense to determine the
    per centum that the index for each calendar month after the
    calendar month immediately preceding the effective date of Pub. L.
    89-132 has increased over the base index (that for the calendar
    month immediately preceding the effective date of Pub. L. 89-132
    or, if later, that used as the basis for the most recent adjustment
    of retired and retainer pay under this subsection).
      Subsecs. (c) to (e). Pub. L. 90-207 added subsecs. (c) to (e).
      1965 - Subsec. (b). Pub. L. 89-132 substituted provisions
    requiring the Secretary of Defense to determine the per centum for
    each calendar month that the Consumer Price Index has increased
    over the base Consumer Price Index, and if the index has shown an
    increase of at least 3 per centum over the base index for three
    consecutive calendar months to increase the retired or retainer pay
    by the highest per centum of increase in the index, for provisions
    which required a determination of the increase over the preceding
    calendar year and permitted an increase in the retired or retainer
    pay if the index advanced 3 per centum or more for a full calendar
    year.

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Pub. L. 106-65, div. A, title VI, Sec. 644, Oct. 5, 1999, 113
    Stat. 664, provided that: "The amendments made by sections 641,
    642, and 643 [enacting section 322 of Title 37, Pay and Allowances
    of the Uniformed Services, and amending this section and sections
    1409, 1410, 1451, and 1452 of this title] shall take effect on
    October 1, 1999."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 632(b) of Pub. L. 104-201 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply only to
    adjustments of retired and retainer pay effective after the date of
    the enactment of this Act [Sept. 23, 1996]."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 633(b) of Pub. L. 103-337 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply with
    respect to the computation of the retired pay of a member of the
    Armed Forces who retires on or after the date of the enactment of
    this Act [Oct. 5, 1994]."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 622(b) of Pub. L. 100-456 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the first day of the first month that begins after the date of the
    enactment of this Act [Sept. 29, 1988] and shall apply to the
    computation of the retired or retainer pay of members who initially
    become entitled to such pay on or after such effective date."

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Section 921(a)(2) of Pub. L. 98-94 provided that:
      "(A) Notwithstanding the repeal of such subsection [subsec. (e)
    of this section], the provisions of such subsection shall apply in
    the case of any member or former member of the Armed Forces
    eligible to retire on the date of the enactment of this Act [Sept.
    24, 1983] for a period of three years after such date in the same
    manner such provisions would have applied had they not been
    repealed.
      "(B) The amount of retired or retainer pay of any member or
    former member of the Armed Forces who was eligible to retire on the
    date of the enactment of this Act [Sept. 24, 1983] and who becomes
    entitled to such pay at any time after the end of the three-year
    period beginning on the date of the enactment of this Act may not
    be less than it would have been had he become entitled to retired
    or retainer pay on the day before the end of such three-year
    period."
      Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983,
    see section 922(e) of Pub. L. 98-94, set out as a note under
    section 1401 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 812(b)(1) of Pub. L. 96-342, set out below, provided that
    the amendment made by that section is effective Aug. 31, 1981, but
    subject to certain conditions.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Section 1306(d)(2) of Pub. L. 94-440 provided that: "The
    amendment made by subsection (1) [amending this section] shall
    apply to any increase in retired pay or retainer pay after the date
    of enactment of this Act [Oct. 1, 1976], except that with respect
    to the first date after the date of enactment of this Act on which
    the Secretary of Defense is to determine a percent change, such
    percent change shall be determined by computing the change in the
    index published for the month immediately preceding such first date
    over the index for the last month preceding the date of enactment
    of this Act used as the basis for the most recent adjustment of
    retired pay and retainer pay under section 1401a(b) of title 10,
    United States Code [subsec. (b) of this section], as in effect
    immediately prior to the date of enactment of this Act [Oct. 1,
    1976]."

                     EFFECTIVE DATE OF 1969 AMENDMENT                 
      Section 2 of Pub. L. 91-179 provided that: "The provisions of
    this Act [amending this section] become effective on October 31,
    1969."

                     EFFECTIVE DATE OF 1967 AMENDMENT                 
      Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7
    of Pub. L. 90-207, set out as a note under section 203 of Title 37,
    Pay and Allowances of the Uniformed Services.

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section
    10 of Pub. L. 89-132, set out as a note under section 203 of Title
    37, Pay and Allowances of the Uniformed Services.

                              EFFECTIVE DATE                          
      Section effective Oct. 1, 1963, see section 14 of Pub. L. 88-132,
    set out as an Effective Date of 1963 Amendment note under section
    201 of Title 37, Pay and Allowances of the Uniformed Services.

             CONTINGENT ALTERNATIVE DATE FOR FISCAL YEAR 1998         
      Section 631(b) of Pub. L. 104-106 provided that if a civil
    service retiree COLA that becomes effective during fiscal year 1998
    becomes effective on a date other than the date on which a military
    retiree COLA during that fiscal year is specified to become
    effective under subsec. (b)(2)(B) of this section, then the
    increase in military retired and retainer pay would become payable
    as part of such retired and retainer pay effective on the same date
    on which such civil service retiree COLA was to become effective,
    prior to repeal by Pub. L. 104-201, div. A, title VI, Sec. 631(b),
    Sept. 23, 1996, 110 Stat. 2549.

     ELIMINATION OF DISPARITY BETWEEN EFFECTIVE DATES FOR MILITARY AND
     CIVILIAN RETIREE COST-OF-LIVING ADJUSTMENTS FOR FISCAL YEAR 1995
      Section 631 of Pub. L. 103-337 provided that:
      "(a) In General. - The fiscal year 1995 increase in military
    retired pay shall (notwithstanding subparagraph (B) of section
    1401a(b)(2) of title 10, United States Code) first be payable as
    part of such retired pay for the month of March 1995.
      "(b) Definitions. - For the purposes of subsection (a):
        "(1) The term 'fiscal year 1995 increase in military retired
      pay' means the increase in retired pay that, pursuant to
      paragraph (1) of section 1401a(b) of title 10, United States
      Code, becomes effective on December 1, 1994.
        "(2) The term 'retired pay' includes retainer pay.
      "(c) Limitation. - Subsection (a) shall be effective only if
    there is appropriated to the Department of Defense Military
    Retirement Fund (in an Act making appropriations for the Department
    of Defense for fiscal year 1995 that is enacted before March 1,
    1995) such amount as is necessary to offset increased outlays to be
    made from that fund during fiscal year 1995 by reason of the
    provisions of subsection (a).
      "(d) Authorization of Appropriations. - There is authorized to be
    appropriated for fiscal year 1995 to the Department of Defense
    Military Retirement Fund the sum of $376,000,000 to offset
    increased outlays to be made from that fund during fiscal year 1995
    by reason of the provisions of subsection (a)."

    SENSE OF CONGRESS ON EQUAL TREATMENT OF EFFECTIVE DATES FOR FUTURE
       COST-OF-LIVING ADJUSTMENTS FOR MILITARY AND CIVILIAN RETIREES
      Section 632 of Pub. L. 103-337 provided that:
      "(a) Findings. - Congress makes the following findings:
        "(1) Congress, in the Omnibus Budget Reconciliation Act of 1993
      [Pub. L. 103-66, see Tables for classification], changed the
      effective dates for future cost-of-living adjustments for
      military retired pay and for Federal civilian retirement
      annuities, which (before that Act) were provided by law to be
      made effective on December 1 each year.
        "(2) The timing, and the percentage of increase, of military
      and Federal civilian retirees' cost-of-living adjustments have
      been linked for decades.
        "(3) The effect of the enactment of the Omnibus Budget
      Reconciliation Act of 1993 was to abandon the longstanding
      congressional practice of treating military and Federal civilian
      retirees identically in matters related to cost-of-living
      adjustments.
      "(b) Sense of Congress. - In light of the findings in subsection
    (a), it is the sense of Congress that - 
        "(1) as a matter of simple equity and fairness, it is
      imperative that cost-of-living adjustments in retirement benefits
      for military and Federal civilian retirees be returned to an
      identical schedule as soon as possible, but not later than
      January 1, 1999;
        "(2) if after October 1, 1998, there is, by law, a difference
      between the date on which a cost-of-living adjustment for Federal
      civilian retirees takes effect and the date on which a cost-of-
      living adjustment for military retirees takes effect, then the
      difference in those effective dates should be eliminated by
      requiring that cost-of-living adjustments for both classes of
      retirees become effective on the earlier of the two dates; and
        "(3) if after October 1, 1998, there is, by law, a difference
      between the first month for which a cost-of-living adjustment for
      civilian retirees is payable and the first month for which a cost-
      of-living adjustment for military retirees is payable, then the
      difference in the months for which those adjustments are first
      payable should be eliminated by requiring that the cost-of-living
      adjustments for both classes of retirees first become payable for
      the earlier of the two months."

    WAIVER OF ADMINISTRATIVE TIME-IN-GRADE REQUIREMENTS TO PREVENT PAY
          INVERSIONS IN RETIRED PAY OF CERTAIN MILITARY RETIREES
      Section 634 of Pub. L. 103-337 provided that:
      "(a) Authority. - The Secretary concerned may, for purposes of
    the computation under section 1401a(f) of title 10, United States
    Code, of the retired pay of military retirees described in
    subsection (b), waive any administrative time-in-grade regulation
    (as described in subsection (d)) that would otherwise apply to such
    computation. Any such waiver may be made retroactive, in the case
    of any such retiree, to the date on which that retiree initially
    became entitled to retired pay.
      "(b) Covered Retirees. - This section applies to any military
    retiree - 
        "(1) who initially became entitled to retired pay on or after
      January 1, 1971, and before the date of the enactment of this Act
      [Oct. 5, 1994];
        "(2) whose retired pay, by reason of the provisions of section
      1401a(f) of title 10, United States Code (the so-called 'Tower
      amendment'), was initially computed as an amount greater than
      would have been the case but for that section; and
        "(3) who, as of the earlier computation date applicable to that
      retiree - 
          "(A) in the case of an individual retired in an enlisted
        grade, had served in the grade in which the retiree retired for
        a period that was less than the period prescribed by the
        applicable administrative time-in-grade requirement described
        in subsection (d); and
          "(B) in the case of an individual retired in an officer grade
        - 
            "(i) was subject to an administrative time-in-grade
          requirement described in subsection (d) that established a
          time-in-grade requirement that was longer than the statutory
          time-in-grade requirement applicable to that member; and
            "(ii) had served in the grade in which the retiree retired
          for a period that was less than the period prescribed by such
          administrative time-in-grade requirement but not less than
          the statutory time-in-grade requirement applicable to that
          member.
      "(c) Earlier Computation Date. - For purposes of subsection
    (b)(3), the earlier computation date applicable to a military
    retiree is the date that (under such section 1401a(f) as in effect
    on the date of the member's retirement) was the 'earlier date' that
    was used as the basis for the computation of the retiree's retired
    pay.
      "(d) Regulations Subject to Waiver. - A regulation that may be
    waived under subsection (a) is any regulation (not required by law)
    that establishes a minimum period of time that a member of the
    Armed Forces must have served in a grade on active duty in order to
    be eligible to retire in that grade.
      "(e) Scope of Waiver Authority. - The Secretary concerned may
    exercise the authority provided in subsection (a) in the case of an
    individual military retiree or for any group of military retirees.
      "(f) Military Retiree Defined. - For purposes of this section,
    the term 'military retiree' means a member or former member of the
    Armed Forces who is entitled to retired pay.
      "(g) Secretary Concerned. - For purposes of this section, the
    term 'Secretary concerned' has the meaning given such term in
    section 101 of title 10, United States Code."

     FISCAL YEAR 1995 COST-OF-LIVING ADJUSTMENTS FOR MILITARY RETIREES 
      Pub. L. 103-335, title VIII, Sec. 8114A, Sept. 30, 1994, 108
    Stat. 2648, as amended by Pub. L. 104-106, div. A, title VI, Sec.
    631(c), Feb. 10, 1996, 110 Stat. 365, provided that:
      "(a) Fiscal Year 1995 Cost-of-Living Adjustment for Military
    Retirees. - (1) The fiscal year 1995 increase in military retired
    pay shall (notwithstanding subparagraph (B) of section 1401a(b)(2)
    of title 10, United States Code) first be payable as part of such
    retired pay for the month of March 1995.
      "(2) For the purposes of subsection (a):
        "(A) The term 'fiscal year 1995 increase in military retired
      pay' means the increase in retired pay that, pursuant to
      paragraph (1) of section 1401a(b) of title 10, United States
      Code, becomes effective on December 1, 1994.
        "(B) The term 'retired pay' includes retainer pay.
      "(b) [Repealed. Pub. L. 104-106, div. A, title VI, Sec. 631(c),
    Feb. 10, 1996, 110 Stat. 365.]"

       CONTINGENT ONCE-A-YEAR ADJUSTMENT OF RETIRED AND RETAINER PAY   
      Pub. L. 96-342, title VIII, Sec. 812, Sept. 8, 1980, 94 Stat.
    1098, as amended by Pub. L. 97-35, title II, Sec. 211(b), Aug. 13,
    1981, 95 Stat. 383, provided that:
      "(a)(1) The increase in the retired and retainer pay of members
    and former members of the uniformed services which but for this
    section would be made effective September 1, 1980, under the
    provisions of paragraph (2)(B) of section 1401a(b) of title 10,
    United States Code, shall not be made.
      "(2)(A) In making the determination required by the provisions of
    paragraph (1)(A) of section 1401a(b) of title 10, United States
    Code, to be made on January 1, 1981, or within a reasonable time
    thereafter, the Secretary of Defense shall determine the percent
    change in the index (as such term is defined in section 1401a(a) of
    title 10, United States Code) published for December 1980 over the
    index published for December 1979 (rather than over the index
    published for June 1980).
      "(B) The increase in the retired and retainer pay of members and
    former members of the uniformed services to be made effective March
    1, 1981, under the provisions of paragraph (2)(A) of such section
    shall, in lieu of the increase prescribed by such paragraph, be the
    percent change computed under subparagraph (A), adjusted to the
    nearest  1/10  of one percent.
      "(3) The President shall by Executive order provide for only one
    cost-of-living adjustment in the annuities paid under the Central
    Intelligence Agency [Retirement] Act of 1964 for Certain Employees
    (50 U.S.C. 403 note) during the period beginning on September 1,
    1980, and ending on August 31, 1981. Such adjustment shall be
    effective March 1, 1981, and shall be made in the same manner and
    percentage as the adjustment provided for in paragraphs (1) and (2)
    for the retired and retainer pay of members and former members of
    the uniformed services.
      "(4) Paragraphs (1), (2), and (3) shall not take effect unless
    similar legislation is enacted which provides for only one cost-of-
    living increase in annuities paid under subchapter III of chapter
    83 of title 5, United States Code, during the period beginning on
    September 1, 1980, and ending on August 31, 1981.
      "(b)(1) Effective August 31, 1981, but subject to paragraph (2),
    section 1401a(b), of title 10, United States Code, relating to
    adjustment of retired pay and retainer pay to reflect changes in
    the Consumer Price Index, is amended to read as follows:
        " '(b) Each time that an increase is made under section 8340(b)
      of title 5 in annuities paid under subchapter III of chapter 83
      of such title, the Secretary of Defense shall at the same time
      increase the retired and retainer pay of members and former
      members of the armed forces by the same percent as the percentage
      by which annuities are increased under such section.'.
      "(2) The amendment made by paragraph (1) shall not take effect
    unless legislation is enacted which provides for the adjustment of
    annuities paid under subchapter III of chapter 83 of title 5,
    United States Code, on a once-a-year basis. In the event such
    legislation is enacted, such amendment shall become effective with
    respect to adjustments in the retired pay and retainer pay of
    members and former members of the uniformed services at the same
    time that the legislation providing for such a once-a-year
    adjustment of annuities paid under subchapter III of chapter 83 of
    title 5, United States Code, becomes effective.
      "(3) If legislation described in paragraph (2) is enacted to
    provide for the adjustment of annuities paid under subchapter III
    of chapter 83 of title 5, United States Code, on a once-a-year
    basis, the President shall exercise the authority vested in him
    under section 292 of the Central Intelligence Agency [Retirement]
    Act of 1964 for Certain Employees (50 U.S.C. 403 note) to provide
    for cost-of-living adjustments in the annuities paid under such Act
    on an identical basis.
      "(4) If at the time the first adjustment in retired and retainer
    pay is made under section 1401a(b) of title 10, United States Code,
    as amended by paragraph (1) of this subsection, the period upon
    which the most recent adjustment in such retired and retainer pay
    was computed is not identical to the period upon which the most
    recent adjustment in annuities under subchapter III of chapter 83
    of title 5, United States Code, was computed, then the percentage
    increase to be made under such section 1401a(b) at the time of the
    first such adjustment shall be computed in the same manner as the
    percentage increase made at the same time in annuities under
    subchapter III of chapter 83 of title 5, United States Code, is
    computed, but shall be based on the period beginning on the last
    day of the period upon which the most recent adjustment in such
    retired and retainer pay was computed and ending on the last day of
    the period upon which the adjustment being made at the same time in
    annuities under such subchapter III is computed. The President
    shall by Executive order provide for a similar computation of the
    adjustment in annuities paid under the Central Intelligence Agency
    [Retirement] Act of 1964 for Certain Employees (50 U.S.C. 403 note)
    which is made at the same time as the increase in retired and
    retainer pay to which the preceeding [preceding] sentence is
    applicable.
      "(c) For the purposes of this section, the term 'uniformed
    services' means - 
        "(1) the Armed Forces; and
        "(2) the commissioned corps of the National Oceanic and
      Atmospheric Administration and of the Public Health Service."

     COMPUTATION OF RETIRED PAY OF SERGEANT MAJORS OF MARINE CORPS WHO
               COMPLETED SERVICE PRIOR TO DECEMBER 16, 1967
      Pub. L. 95-581, Nov. 2, 1978, 92 Stat. 2478, provided: "That (a)
    the retired pay of any individual who served as sergeant major of
    the Marine Corps and who completed such service before December 16,
    1967, shall be computed based upon a rate of basic pay of the sum
    of (1) the highest rate of basic pay to which such individual was
    entitled while so serving, and (2) $150.
      "(b) For the purpose of computing any adjustment under section
    1401a of title 10, United States Code, in the retired pay of any
    individual whose retired pay is affected by subsection (a), the
    rate of basic pay provided under such subsection for the purpose of
    computing the retired pay of such individual shall be considered to
    have been the rate of basic pay applicable to such individual at
    the time of his retirement, and any adjustment under such section
    1401a in the retired pay of such individual before September 30,
    1978, shall be readjusted to reflect such rate of basic pay.
      "Sec. 2. (a) Any change in the retired pay of any individual by
    reason of the enactment of this Act shall be effective for months
    beginning after September 30, 1978.
      "(b) The enactment of this Act shall not reduce the retired pay
    of any individual."
      [The Central Intelligence Agency Retirement Act of 1964 for
    Certain Employees, referred to in Pub. L. 96-342, set out above, is
    Pub. L. 88-643, Oct. 13, 1964, 78 Stat. 1043, which was revised
    generally by Pub. L. 102-496, title VIII, Sec. 802, Oct. 24, 1992,
    106 Stat. 3196, is known as the Central Intelligence Agency
    Retirement Act and is classified generally to chapter 38 (Sec. 2001
    et seq.) of Title 50, War and National Defense.]

    COST-OF-LIVING ADJUSTMENT OF RETIRED PAY OR RETAINER PAY OF MEMBERS
      AND FORMER MEMBERS OF ARMED FORCES AND COMMISSIONED OFFICERS OF
     NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION AND PUBLIC HEALTH
                 SERVICE; EFFECTIVE DATE OF 1976 AMENDMENT
      Section 801(c) of Pub. L. 94-361 provided that:
      "(1) The amendments made by subsections (a) [to subsec. (b) of
    this section] and (b) [to provisions formerly set out as a note
    under section 403 of title 50] shall not become effective unless
    legislation is enacted repealing the so-called 1 per centum add-on
    provision applicable to the cost-of-living adjustment of annuities
    paid under chapter 83 of title 5, United States Code. In the event
    such legislation is enacted, such amendments shall become effective
    with respect to the cost-of-living adjustment of the retired pay
    and retainer pay of members and former members of the Armed Forces
    and the cost-of-living adjustment of annuities paid under the
    Central Intelligence Agency [Retirement] Act of 1964 for Certain
    Employees at the same time the repeal of such 1 per centum add-on
    provision becomes effective with respect to such cost-of-living
    adjustment of annuities paid under such chapter 83.
      "(2) If any change other than the repeal of the so-called 1 per
    centum add-on provision referred to in paragraph (1) is made in the
    method of computing the cost-of-living adjustment of annuities paid
    under chapter 83 of title 5, United States Code, the President
    shall make the same change in the cost-of-living adjustment of
    retired pay and retainer pay of members and former members of the
    Armed Forces and the cost-of-living adjustment of annuities paid
    under the Central Intelligence Agency [Retirement] Act of 1964 for
    Certain Employees. Any change made under this paragraph shall have
    the same effective date as the effective date applicable to such
    change made in annuities under chapter 83 of title 5, United States
    Code.
      "(3) The provisions of paragraphs (1) and (2) relating to any
    change in the method of computing the cost-of-living adjustment of
    the retired pay or retainer pay of members and former members of
    the Armed Forces shall be applicable to the computation of cost-of-
    living adjustments of the retired pay of commissioned officers of
    the National Oceanic and Atmospheric Administration and the retired
    pay of commissioned officers of the Public Health Service."
      [The Central Intelligence Agency Retirement Act of 1964 for
    Certain Employees, referred to in Pub. L. 94-361, set out above, is
    Pub. L. 88-643, Oct. 13, 1964, 78 Stat. 1043, which was revised
    generally by Pub. L. 102-496, title VIII, Sec. 802, Oct. 24, 1992,
    106 Stat. 3196, is known as the Central Intelligence Agency
    Retirement Act and is classified generally to chapter 38 (Sec. 2001
    et seq.) of Title 50, War and National Defense.]

      INCREASE IN CERTAIN ARMED FORCE MEMBERS' PAY AND ALLOWANCES NOT
                  OTHERWISE TIED TO CONSUMER PRICE INDEX
      Pub. L. 93-210, Sec. 2, Dec. 28, 1973, 87 Stat. 908, provided
    that:
      "(a) Notwithstanding any other provision of law, effective on the
    date of enactment of this Act [Dec. 28, 1973], the pay and
    allowances of members of the Armed Forces to whom this Act applies
    shall be increased to amounts equal to the amounts such pay and
    allowances would have been increased if the pay and allowances of
    such members had been increased, under section 1401a(b) of title
    10, United States Code, by the same percentage rates, consecutively
    compounded, that the retired pay or retainer pay of members and
    former members of the Armed Forces entitled to retired pay or
    retainer pay since October 1, 1967, has been increased, and such
    member shall, on and after the date of enactment of this Act [Dec.
    28, 1973], have his pay and allowances increased effective the same
    day and by the same percentage rate that the retired pay or
    retainer pay of members and former members of the Armed Forces is
    increased under such section 1401a(b).
      "(b) This section applies to members of the Armed Forces entitled
    to pay and allowances under either of the following provisions of
    law:
        "(1) The Act of June 26, 1948, chapter 677 (62 Stat. 1052)
      [which authorized the appointment of one officer in the Regular
      Army in the permanent grade of general, one officer in the
      Regular Air Force in the permanent grade of general, and one
      officer in the Regular Navy in the permanent grade of admiral].
        "(2) The Act of September 18, 1950, chapter 952 (64 Stat. A224)
      [which authorized the appointment of Omar N. Bradley to the
      permanent grade of General of the Army].
      "(c) No amounts shall be paid, as the result of the enactment of
    this section, for any period prior to the date of enactment of this
    section [Dec. 28, 1973]."

       RETROACTIVE ADJUSTMENT OF RETIRED OR RETAINER PAY OF PERSONS
     ENTITLED THERETO AFTER NOVEMBER 30, 1966, BUT PRIOR TO EFFECTIVE
                 DATE OF NEXT INCREASE AFTER JULY 1, 1966
      Section 2(b) of Pub. L. 90-207 provided that: "Notwithstanding
    section 1401a(d) of title 10, United States Code, a person who is a
    member or former member of an armed force on the date of enactment
    of this Act [Dec. 16, 1967] and who initially became, or hereafter
    initially becomes, entitled to retired pay or retainer pay after
    November 30, 1966, but before the effective date of the next
    increase after July 1, 1966, in the rates of monthly basic pay
    prescribed by section 203 of title 37, United States Code, is
    entitled to have his retired pay or retainer pay increased by 3.7
    percent, effective as of the date of his entitlement to that pay."

-End-



-CITE-
    10 USC Sec. 1402                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1402. Recomputation of retired or retainer pay to reflect
      later active duty of members who first became members before
      September 8, 1980

-STATUTE-
      (a) A member of an armed force who first became a member of a
    uniformed service before September 8, 1980, and who has become
    entitled to retired pay or retainer pay, and who thereafter serves
    on active duty (other than for training), is entitled to recompute
    his retired pay or retainer pay upon his release from that duty
    according to the following table.


      Column 1 - Take: Monthly basic pay (!1) of the grade in which he
       would be eligible -                                   
      (1) to retire if he were retiring upon that release from active
       duty; or                                              
      (2) to transfer to the Fleet Reserve or Fleet Marine Corps Reserve
       if he were transferring to either upon that release from
       active duty.                                          
      Column 2 - Multiply by: 2 1/2  percent of the sum of - 
      (1) the years of service that may be credited to him in computing
       retired pay or retainer pay; and                      
      (2) his years of active service after becoming entitled to retired
       pay or retainer pay.(!2)                              
      Column 3 - Subtract: Excess over 75 percent of pay upon which
       computation is based.                                 

      (!1) For a member who has been entitled, for continuous period of
    at least two years, to basic pay under the rates of basic pay in
    effect upon that release from active duty, compute under those
    rates. For a member who has been entitled to basic pay for a
    continuous period of at least two years upon that release from
    active duty, but who is not covered by the preceding sentence,
    compute under the rates of basic pay replaced by those in effect
    upon that release from active duty. For any other member, compute
    under the rates of basic pay under which the member's retired pay
    or retainer pay was computed when he entered on that active duty.
      (!2) Before applying percentage factor, credit each full month of
    service that is in addition to the number of full years of service
    creditable to the member as one-twelfth of a year and disregard any
    remaining fractional part of a month.
    --------------------------------------------------------------------

    However, an officer who was ordered to active duty (other than for
    training) in the grade that he holds on the retired list under
    former section 6150 of this title, or under any other law that
    authorized advancement on the retired list based upon a special
    commendation for the performance of duty in actual combat, may have
    his retired pay recomputed under this subsection on the basis of
    the rate of basic pay applicable to that grade upon his release
    from that active duty only if he has been entitled, for a
    continuous period of at least three years, to basic pay at that
    rate. If, upon his release from that active duty, he has been
    entitled to the basic pay of that grade for a continuous period of
    at least three years, but he does not qualify under the preceding
    sentence, he may have his retired pay recomputed under this
    subsection on the basis of the rate of basic pay prescribed for
    that grade by the rates of basic pay replaced by those in effect
    upon his release from that duty.
      (b) A member of an armed force who first became a member of a
    uniformed service before September 8, 1980, and who has been
    retired other than for physical disability, and who while on active
    duty incurs a physical disability of at least 30 percent for which
    he would otherwise be eligible for retired pay under chapter 61 of
    this title, is entitled, upon his release from active duty, to
    retired pay under subsection (d).
      (c) A member of an armed force who first became a member of a
    uniformed service before September 8, 1980, and who - 
        (1) was retired for physical disability under section 1201 or
      1204 of this title or any other law or whose name is on the
      temporary disability retired list;
        (2) incurs, while on active duty after retirement or after his
      name was placed on that list, a physical disability that is in
      addition to or that aggravates the physical disability for which
      he was retired or for which his name was placed on the temporary
      disability retired list; and
        (3) is qualified under section 1201, 1202, 1204, or 1205 of
      this title;

    is entitled, upon his release from active duty, to retired pay
    under subsection (d).
      (d) A member of an armed force covered by subsection (b) or (c)
    may elect to receive either (1) the retired pay to which he became
    entitled when he retired, increased by any applicable adjustments
    in that pay under section 1401a of this title after he initially
    became entitled to that pay, or (2) retired pay computed according
    to the following table.


      Column 1 - Take: Highest monthly basic pay that member received
       while on active duty after retirement or after date when
       his name was placed on temporary disability retired list,
       as the case may be.                                   
      Column 2 - Multiply by: As member elects - 
      (1) 2(!1/2)% of years of service credited under section 1208 of
       this title; (!1) or                                   
      (2) the highest percentage of disability attained while on active
       duty after retirement or after the date when his name was
       placed on temporary disability retired list, as the case
       may be.(!1)                                           
      Column 3 - Add: Add amount necessary to increase product of
       columns 1 and 2 to 50% of pay upon which computation is
       based, if member is on temporary disability retired list 
      Column 4 - Subtract: Excess over 75% of pay upon which computation
       is based.                                             

      (!1) Before applying percentage factor, credit each full month of
    service that is in addition to the number of full years of service
    creditable to the member as one-twelfth of a year and disregard any
    remaining fractional part of a month.
    --------------------------------------------------------------------

    If, while on active duty after retirement or after his name was
    placed on the temporary disability retired list, a member covered
    by this subsection was promoted to a higher grade in which he
    served satisfactorily, as determined by the Secretary concerned, he
    is entitled to retired pay based on the monthly basic pay to which
    he would be entitled if he were on active duty in that higher
    grade.
      (e) Notwithstanding subsection (a), a member covered by that
    subsection may elect, upon his release from active duty, to have
    his retired pay or retainer pay - 
        (1) computed according to the formula set forth in subsection
      (a) but using the rate of basic pay under which his retired pay
      or retainer pay was computed when he entered on active duty; and
        (2) increased by any applicable adjustments in that pay under
      section 1401a of this title after he initially became entitled to
      that pay.

      (f)(1) In the case of a member who is entitled to recompute
    retired pay under this section upon release from active duty served
    after retiring under section 3914 or 8914 of this title, the
    member's retired pay as recomputed under another provision of this
    section shall be increased by 10 percent of the amount so
    recomputed if the member has been credited by the Secretary
    concerned with extraordinary heroism in the line of duty during any
    period of active duty service in the armed forces.
      (2) The amount of the retired pay as recomputed under another
    provision of this section and as increased under paragraph (1) may
    not exceed the amount equal to 75 percent of the monthly rate of
    basic pay upon which the recomputation of such retired pay is
    based.
      (3) The determination of the Secretary concerned as to
    extraordinary heroism is conclusive for all purposes.

-SOURCE-
    (Aug. 10, 1956, ch. 1041, 70A Stat. 107; Pub. L. 86-559, Sec. 1(5),
    June 30, 1960, 74 Stat. 265; Pub. L. 88-132, Sec. 5(l)(1), Oct. 2,
    1963, 77 Stat. 214; Pub. L. 90-207, Sec. 2(a)(2), Dec. 16, 1967, 81
    Stat. 653; Pub. L. 96-342, title VIII, Sec. 813(b)(2), Sept. 8,
    1980, 94 Stat. 1102; Pub. L. 96-513, title V, Sec. 511(50), Dec.
    12, 1980, 94 Stat. 2924; Pub. L. 98-94, title IX, Secs. 922(a)(3),
    (4), 923(a)(1), (2)(B), (C), Sept. 24, 1983, 97 Stat. 641, 642;
    Pub. L. 99-348, title II, Sec. 201(b)(3), title III, Sec.
    304(a)(3), (b)(3), July 1, 1986, 100 Stat. 694, 703; Pub. L. 102-
    484, div. A, title VI, Sec. 642(a), Oct. 23, 1992, 106 Stat.
    2424.)

-MISC1-



                       HISTORICAL AND REVISION NOTES                   
    --------------------------------------------------------------------
     Revised         Source (U.S. Code)           Source (Statutes at   
     section                                             Large)         
    --------------------------------------------------------------------
    1402(a)      37:316.                       Oct. 12, 1949, ch. 681,  
                                                Secs. 402(d) (last      
                                                proviso, less           
                                                applicability to retired
                                                grade), 516, 63 Stat.   
                                                819, 832.               
    1402(b),                                                            
     (c)                                                                
                 37:272(d) (1st 128 words                               
                  of last proviso, less                                 
                  applicability to retired                              
                  grade).                                               
    1402(d)      37:272(d) (last proviso,                               
                  less 1st 128 words, and                               
                  less applicability to                                 
                  retired grade).                                       
    --------------------------------------------------------------------

      In subsection (a), columns 1 and 2 of the table are based on
    37:316 (1st proviso). Column 4 is based on 37:316 (last proviso).
    Footnote 1 is based on 37:316 (2d proviso). 37:316 (3d proviso) is
    omitted as operationally obsolete.
      In subsections (a) and (d), the words "and disregard a part of a
    year that is less than six months" are added to footnote 1 to
    conform to footnote 3 of section 1401 of this title.
      In subsection (b), the words "for which he would otherwise be
    eligible for retired pay under chapter 61 of this title" are
    substituted for the words "in accordance with the standard schedule
    of rating disabilities in current use by the Veterans'
    Administration" and "if qualified".
      In subsection (c), the requirement that the physical disability
    incurred be 30 percent or more is omitted as surplusage, since it
    is also required that the member be qualified for physical
    disability retirement under section 1201 or 1204 of this title.
      In subsection (d), the rules stated in 37:316 (2d and last
    provisos) are repeated in column 4 of the table and the footnote to
    the table, since they apply to all cases of increased pay for
    active duty performed after retirement.

-COD-
                               CODIFICATION                           
      Another section 304(b)(3) of Pub. L. 99-348 amended the table of
    sections at the beginning of chapter 571 of this title.


-MISC2-
                                AMENDMENTS                            
      1992 - Subsec. (f). Pub. L. 102-484 added subsec. (f).
      1986 - Pub. L. 99-348, Sec. 304(b)(3), inserted "of members who
    first became members before September 8, 1980" in section
    catchline.
      Subsec. (a). Pub. L. 99-348, Secs. 201(b)(3), 304(a)(3), struck
    out "(as defined in section 1407(a)(2) of this title)" after
    "uniformed service" and struck out provision that if the amount
    recomputed is not a multiple of $1, it be rounded to the next lower
    multiple of $1. See section 1412 of this title.
      Subsecs. (b), (c). Pub. L. 99-348, Sec. 304(a)(3), struck out
    "(as defined in section 1407(a)(2) of this title)" after "uniformed
    service".
      Subsec. (d). Pub. L. 99-348, Sec. 201(b)(3), struck out provision
    that if the amount recomputed is not a multiple of $1, it be
    rounded to the next lower multiple of $1. See section 1412 of this
    title.
      1983 - Subsec. (a). Pub. L. 98-94, Sec. 922(a)(3), substituted
    "according to the following table. The amount recomputed, if not a
    multiple of $1, shall be rounded to the next lower multiple of $1."
    for "as follows:".
      Pub. L. 98-94, Sec. 923(a)(1), (2)(B), in footnote 2 of table,
    substituted "Before applying percentage factor, credit each full
    month of service that is in addition to the number of full years of
    service creditable to the member as one-twelfth of a year and
    disregard any remaining fractional part of a month" for "Before
    applying percentage factor, credit a part of a year that is six
    months or more as a whole year, and disregard a part of a year that
    is less than six months".
      Subsec. (d). Pub. L. 98-94, Sec. 922(a)(4), substituted
    "according to the following table. The amount computed, if not a
    multiple of $1, shall be rounded to the next lower multiple of $1."
    for "as follows:".
      Pub. L. 98-94, Sec. 923(a)(1), (2)(C), in footnote 1 of table,
    substituted "Before applying percentage factor, credit each full
    month of service that is in addition to the number of full years of
    service creditable to the member as one-twelfth of a year and
    disregard any remaining fractional part of a month" for "Before
    applying percentage factor, credit a part of a year that is six
    months or more as a whole year, and disregard a part of a year that
    is less than six months".
      1980 - Subsecs. (a) to (c). Pub. L. 96-513 substituted "a
    uniformed service (as defined in section 1407(a)(2) of this title)
    before September 8, 1980" for "the armed forces before the date of
    the enactment of the Department of Defense Appropriation Act, 1981"
    wherever appearing.
      Pub. L. 96-342 inserted "who first became a member of the armed
    forces before the date of the enactment of the Department of
    Defense Authorization Act, 1981, and" after "of an armed force"
    wherever appearing.
      1967 - Subsec. (d). Pub. L. 90-207, Sec. 2(a)(2)(A), inserted
    "increased by any applicable adjustments in that pay under section
    1401a of this title after he initially became entitled to that pay"
    after "retired,".
      Subsec. (e). Pub. L. 90-207, Sec. 2(a)(2)(B), added subsec. (e).
      1963 - Subsec. (a). Pub. L. 88-132 substituted in introductory
    clause "who has become entitled to retired pay or retainer pay" for
    "who has been retired or has become entitled to retainer pay" and
    "to recompute his retired pay or retainer pay upon his release from
    that duty" for ", upon release from that duty, to recompute his
    retired or retainer pay" and inserted in such clause "(other than
    for training)" after "active duty"; substituted in column 1 of
    table "Monthly basic pay" for "Monthly basic pay or base and
    longevity pay, as the case may be,", designated existing provisions
    as (1) and added (2); substituted in (1) of column 2 of the table
    "retired pay or retainer pay" for "retired or retainer pay" and in
    (2) of such column 2 "after becoming entitled to retired pay or
    retainer pay" for "after retirement or becoming entitled to
    retainer pay", struck out column 3 relating to addition and
    redesignated column 4 as 3; added footnote 1 to the table and
    redesignated former footnote 1 as 2; and inserted provisions for
    recomputation of retired pay upon release from active duty of
    officers ordered to active duty in a higher grade based upon
    special commendation for performance of duty in actual combat.
      1960 - Subsec. (a). Pub. L. 86-559 prohibited recomputation of
    retired pay under subsec. (a) on the basis of any period of active
    duty that was of less than six consecutive months' duration or on
    the basis of any active duty for training for a reserve officer who
    is or has been retired under section 3911, 6323, or 8911 of this
    title or under section 232 of title 14.

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983,
    see section 922(e) of Pub. L. 98-94, set out as a note under
    section 1401 of this title.
      Amendment by section 923 of Pub. L. 98-94 applicable with respect
    to (1) the computation of retired or retainer pay of any individual
    who becomes entitled to that pay after Sept. 30, 1983, and (2) the
    recomputation of retired pay under this section, of any individual
    who after Sept. 30, 1983, becomes entitled to recompute retired pay
    under this section, see section 923(g) of Pub. L. 98-94, set out as
    a note under section 1174 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section
    701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of
    this title.

                     EFFECTIVE DATE OF 1967 AMENDMENT                 
      Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7
    of Pub. L. 90-207, set out as a note under section 203 of Title 37,
    Pay and Allowances of the Uniformed Services.

                     EFFECTIVE DATE OF 1963 AMENDMENT                 
      Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section
    14 of Pub. L. 88-132, set out as a note under section 201 of Title
    37, Pay and Allowances of the Uniformed Services.

              ACCRUAL OF BENEFITS; PROSPECTIVE APPLICABILITY          
      Section 642(c) of Pub. L. 102-484 provided that: "No benefits
    shall accrue for months beginning before the date of the enactment
    of this Act [Oct. 23, 1992] by reason of the amendments made by
    this section [amending this section and section 1402a of this
    title]."

         RECOMPUTATION OF RETIRED PAY OF CERTAIN RECALLED RETIREES     
      Pub. L. 98-525, title VI, Sec. 655, Oct. 19, 1984, 98 Stat. 2552,
    provided that:
      "(a) Notwithstanding the second sentence of footnote 1 of the
    table contained in section 1402(a) of title 10, United States Code
    (relating to recomputation of retired pay to reflect later active
    duty), in the case of a member of the Armed Forces who - 
        "(1) was voluntarily called or ordered to active duty during
      the period beginning on October 1, 1963, and ending on September
      30, 1971;
        "(2) was at the time of such call or order entitled to retired
      pay or retainer pay;
        "(3) served on such active duty under such call or order for a
      continuous period of at least two years; and
        "(4) was released from such active duty before October 1, 1973,
    the retired or retainer pay of such member shall be recomputed, as
    provided in subsection (b), under the rates of basic pay in effect
    at the time of that release from active duty.
      "(b) The retired or retainer pay of a member of the Armed Forces
    described in subsection (a) shall be the amount determined under
    section 1402(a) of title 10, United States Code (as modified with
    respect to such member by subsection (a)), and increased by the
    amount by which the member's retired or retainer pay would have
    been increased during the period beginning on the date of the
    member's release from active duty referred to in subsection (a)(4)
    and ending on the day before the day on which this section becomes
    effective had subsection (a) applied in the case of the member at
    the time of that release from active duty.
      "(c) This section shall apply only with respect to retired pay
    and retainer pay payable for months beginning after September 30,
    1984, or on or after the date of the enactment of this Act [Oct.
    19, 1984], whichever is later."

      RETIRED PAY AND RETAINER PAY; PROHIBITION AGAINST RECOMPUTATION
     UNDER 1963 PAY RATES; EXCEPTIONS; INCREMENTS BASED ON THE GREATER
     OF A 5 PERCENT INCREASE OR RECOMPUTATION UNDER 1958 PAY RATES FOR
       MEMBERS RETIRED PRIOR TO OCTOBER 1949 FOR REASONS OTHER THAN
      PHYSICAL DISABILITY, MEMBERS RECEIVING RETIRED PAY UNDER CAREER
     COMPENSATION ACT OF 1949 AND FORMER CHIEFS OF STAFF; ADDITIONAL 5
    PERCENT INCREASE FOR OTHER RETIRED MEMBERS; EXCLUSION FROM INCREASE
               OF OFFICERS RETIRED UNDER CERTAIN PROVISIONS
      Section 5(a)-(f) of Pub. L. 88-132 provided that:
      "(a) Except as provided in section 1402 of title 10, United
    States Code, the changes made by this Act [see Short Title note
    under section 201 of Title 37] in the rates of basic pay of members
    of the uniformed services do not increase the retired pay or
    retainer pay to which a member or former member of the uniformed
    services was entitled on the day before the effective date of this
    Act [Oct. 1, 1963]. However, except for a member covered by section
    6331 of title 10, United States Code who became entitled to
    retainer pay before April 1, 1963, and subject to subsection (j) of
    this section [set out as a note below], a member or former member
    of a uniformed service who became entitled to retired pay or
    retainer pay after March 31, 1963, but before the effective date of
    this Act [Oct. 1, 1963], is entitled - 
        "(1) to have the retired pay or retainer pay to which he was
      entitled on the day before the effective date of this Act [Oct.
      1, 1963] recomputed under the rates of basic pay prescribed by
      section 2 of this Act [amending section 203 of Title 37]; or
        "(2) to continue to have that pay computed under the rates of
      basic pay that were in effect under section 203 of title 37,
      United States Code, on the day before the effective date of this
      Act [Oct. 1, 1963], plus the percentage increase provided by
      subsection (e) of this section;
    whichever pay is the greater. For the purposes of the preceding
    sentence, a member or former member who became entitled to retired
    pay on April 1, 1963, by virtue of section 1 of the Act of April
    23, 1930, ch. 209, as amended (5 U.S.C. 47a) [section 8301 of Title
    5], shall be considered as having become entitled to that pay
    before April 1, 1963.
      "(b) A member or former member of a uniformed service who was
    retired other than for physical disability and who, in accordance
    with section 511 of the Career Compensation Act of 1949 (63 Stat.
    829) [10 U.S.C. 580 note], is entitled to retired pay or retainer
    pay computed by 'method' (a) of that section using rates of basic
    pay that were in effect before October 1, 1949, is entitled - 
        "(1) to have pay recomputed by 'method' (b) of that section
      using the rates of basic pay that were in effect under that Act
      on the day before the effective date of this Act [Oct. 1, 1963];
      or
        "(2) to an increase of 5 percent in the retired pay or retainer
      pay to which he was entitled on the day before the effective date
      of this Act [Oct. 1, 1963];
    whichever pay is the greater.
      "(c) A member or former member of a uniformed service who is
    entitled to retired pay or retainer pay computed under the rates of
    basic pay that were in effect under the Career Compensation Act of
    1949 before June 1, 1958, including a member or former member who
    is entitled to retired pay under section 7 (b) or (c) of the Act of
    May 20, 1958, Public Law 85-422 (72 Stat. 130), is entitled - 
        "(1) to have that pay recomputed under the rates of basic pay
      that were in effect under that Act on the day before the
      effective date of this Act [Oct. 1, 1963]; or
        "(2) to an increase of 5 percent in the retired pay or retainer
      pay to which he was entitled on the day before the effective date
      of this Act [Oct. 1, 1963];
    whichever pay is the greater.
      "(d) A member or former member of a uniformed service who was
    entitled to retired pay on the day before the effective date of
    this Act [Oct. 1, 1963] and who served as Chief of Staff of the
    Army, Chief of Naval Operations, Chief of Staff of the Air Force,
    or Commandant of the Marine Corps is entitled - 
        "(1) to have his retired pay recomputed under the formula for
      computing retired pay applicable to him - 
          "(A) when he retired; or
          "(B) if he served on active duty after he retired and his
        retired pay was recomputed by reason of that service, when his
        retired pay was so recomputed;
      using as his rate of basic pay the rate of basic pay prescribed
      for officers serving on active duty in those positions on June 1,
      1958, by footnote 1 to table for commissioned officers in section
      201(a) of the Career Compensation Act of 1949, as amended (72
      Stat. 122) [see section 203 of Title 37]; or
        "(2) to an increase of 5 percent in the retired pay to which he
      was entitled on the day before the effective date of this Act
      [Oct. 1, 1963];
    whichever pay is the greater.
      "(e) A member or former member of a uniformed service who was
    entitled to retired pay or retainer pay on the day before the
    effective date of this Act [Oct. 1, 1963], other than a member or
    former member who is covered by subsection (b), (c), or (d) of this
    section, is entitled to an increase of 5 percent in the retired or
    retainer pay to which he was entitled on the day before the
    effective date of this Act [Oct. 1, 1963].
      "(f) Notwithstanding any other provision of law, a member of an
    armed force who was entitled to pay and allowances under any of the
    following provisions of law on the day before the effective date of
    this Act [Oct. 1, 1963] shall continue to receive the pay and
    allowances to which he was entitled on that day:
        "(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).
        "(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).
        "(3) The Act of September 18, 1950, chapter 952 (64 Stat.
      A224)."

             RETIRED PAY AND RETAINER PAY; RETROACTIVE EFFECT         
      Section 5(j) of Pub. L. 88-132 provided that: "A member or former
    member of a uniformed service is not entitled to an increase in his
    retired pay or retainer pay because of the enactment of this Act
    [see Short Title note set out under section 201 of Title 37] for
    any period before the effective date of this Act [Oct. 1, 1963]."

                             SAVINGS PROVISION                         
      Section 5(l)(2) of Pub. L. 88-132 provided that: "Notwithstanding
    paragraph (1) of this subsection [amending this section], and
    unless otherwise entitled to higher retired pay or retainer pay, a
    member of a uniformed service who is on active duty (other than for
    training) on the effective date of this Act [Oct. 1, 1963], who was
    entitled to retired pay or retainer pay before he entered on that
    duty, and who is released from that duty on or after the effective
    date of this Act after having served on that duty for a continuous
    period of at least one year shall, upon that release from active
    duty, be entitled to recompute his retired pay or retainer pay
    under the table in section 1402 of title 10, United States Code
    [this section], subject to section 6483(c) of title 10, as that
    table and that section were in effect on the day before the
    effective date of this Act, using rates of basic pay prescribed by
    this Act [section 203 of Title 37]."

-End-



-CITE-
    10 USC Sec. 1402a                                           01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1402a. Recomputation of retired or retainer pay to reflect
      later active duty of members who first became members after
      September 7, 1980

-STATUTE-
      (a) In General. - A member of an armed force - 
        (1) who first became a member of a uniformed service after
      September 7, 1980;
        (2) who has become entitled to retired pay or retainer pay; and
        (3) who thereafter serves on active duty (other than for
      training),

    is entitled to recompute his retired pay or retainer pay upon
    release from that duty according to the following table.


                Column 1                            Column 2            
                  Take                             Multiply by          
    --------------------------------------------------------------------
    Retired pay base or retainer        The retired pay multiplier or   
     pay base under section 1407         retainer pay multiplier        
     which he would be entitled to       prescribed in section 1409 for 
     use if -                            the sum of -                   
    (1) he were retiring upon           (1) the years of service that   
     release from that active duty;      may be credited to him in      
     or                                  computing retired pay or       
                                         retainer pay; and              
                                                                        
    (2) he were transferring to the     (2) his years of active service 
     Fleet Reserve or Fleet Marine       after becoming entitled to     
     Corps Reserve upon that release     retired pay or retainer pay.   
     from active duty.                                                  
    --------------------------------------------------------------------

      (b) New Disability Incurred During Later Active Duty. - A member
    of an armed force who first became a member of a uniformed service
    after September 7, 1980, who has been retired other than for
    physical disability and who while on active duty incurs a physical
    disability of at least 30 percent for which he would otherwise be
    eligible for retired pay under chapter 61 of this title, is
    entitled, upon his release from active duty, to retired pay under
    subsection (d).
      (c) Additional or Aggravated Disability Incurred During Later
    Active Duty. - A member of an armed force who first became a member
    of a uniformed service after September 7, 1980, and who - 
        (1) was retired for physical disability under section 1201 or
      1204 of this title or any other law or whose name is on the
      temporary disability retired list;
        (2) incurs, while on active duty after retirement or after his
      name was placed on the temporary disability retired list, a
      physical disability that is in addition to or that aggravates the
      physical disability for which he was retired or for which his
      name was placed on that list; and
        (3) is qualified under section 1201, 1202, 1204, or 1205 of
      this title;

    is entitled, upon his release from active duty, to retired pay
    under subsection (d).
      (d) Computation for Later Disability. - A member of an armed
    force covered by subsection (b) or (c) may elect to receive either
    (1) the retired pay to which he became entitled when he retired,
    increased by any applicable adjustments in that pay under section
    1401a of this title after he initially became entitled to that pay,
    or (2) retired pay computed according to the following table.


      Column 1 - Take: The retired pay base computed under section
       1407(b) of this title.                                
      Column 2 - Multiply by: As member elects - 
      (1) 2(!1/2) percent of years of service credited under section
       1208 of this title; (!1) or                           
      (2) the highest percentage of disability attained while on active
       duty after retirement or after the date when his name was
       placed on temporary disability retired list, as the case
       may be.                                               
      Column 3 - Add: Amount necessary to increase product of columns 1
       and 2 to 50 percent of pay upon which computation is
       based, if member is on temporary disability retired list 
      Column 4 - Subtract: Excess over 75 percent of retired or retainer
       pay base upon which computation is based.             

      (!1) Before applying percentage factor, credit each full month of
    service that is in addition to the number of full years of service
    creditable to the member as one-twelfth of a year and disregard any
    remaining fractional part of a month.
    --------------------------------------------------------------------

      (e) Alternative Recomputation to Subsection (a) Formula. -
    Notwithstanding subsection (a), a member covered by that subsection
    may elect, upon his release from that active duty, to have his
    retired pay or retainer pay - 
        (1) computed according to the formula set forth in subsection
      (a) but using the monthly retired pay base under which his
      retired pay or retainer pay was computed when he entered on that
      active duty; and
        (2) increased by any applicable adjustments in that pay under
      section 1401a of this title after he initially became entitled to
      that pay.

      (f) Additional 10 Percent for Certain Enlisted Members Credited
    With Extraordinary Heroism. - (1) In the case of a member who is
    entitled to recompute retired pay under this section upon release
    from active duty served after retiring under section 3914 or 8914
    of this title, the member's retired pay as recomputed under another
    provision of this section shall be increased by 10 percent of the
    amount so recomputed if the member has been credited by the
    Secretary concerned with extraordinary heroism in the line of duty
    during any period of active duty service in the armed forces.
      (2) The amount of the retired pay as recomputed under another
    provision of this section and as increased under paragraph (1) may
    not exceed the amount equal to 75 percent of the retired pay base
    upon which the recomputation of such retired pay is based.
      (3) The determination of the Secretary concerned as to
    extraordinary heroism is conclusive for all purposes.

-SOURCE-
    (Added Pub. L. 96-342, title VIII, Sec. 813(b)(3)(A), Sept. 8,
    1980, 94 Stat. 1102; amended Pub. L. 96-513, title V, Sec.
    511(51)(A), (B), Dec. 12, 1980, 94 Stat. 2924; Pub. L. 98-94, title
    IX, Secs. 922(a)(5), (6), 923(a)(1), (2)(D), (E), Sept. 24, 1983,
    97 Stat. 641, 642; Pub. L. 99-348, title II, Sec. 201(b)(1), (2),
    July 1, 1986, 100 Stat. 693; Pub. L. 102-484, div. A, title VI,
    Sec. 642(b), Oct. 23, 1992, 106 Stat. 2425.)


-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (f). Pub. L. 102-484 added subsec. (f).
      1986 - Subsec. (a). Pub. L. 99-348, Sec. 201(b)(1), amended
    subsec. (a) generally. Prior to the amendment, subsec. (a) read as
    follows: "A member of an armed force who first became a member of a
    uniformed service (as defined in section 1407(a)(2) of this title)
    after September 7, 1980, who has become entitled to retired pay or
    retainer pay, and who thereafter serves on active duty (other than
    for training), is entitled to recompute his retired pay or retainer
    pay upon his release from that duty according to the following
    table. The amount recomputed, if not a multiple of $1, shall be
    rounded to the next lower multiple of $1."
      Subsec. (b). Pub. L. 99-348, Sec. 201(b)(2)(A), inserted heading.
      Subsec. (c). Pub. L. 99-348, Sec. 201(b)(2)(B), inserted heading.
      Subsec. (d). Pub. L. 99-348, Sec. 201(b)(2)(C), inserted heading,
    struck out provision that if the amount recomputed is not a
    multiple of $1, it be rounded to the next lower multiple of $1, and
    in column 1 of table struck out "monthly" before "retired pay" and
    in column 4 of table struck out "monthly" before "retired or".
      Subsec. (e). Pub. L. 99-348, Sec. 201(b)(2)(D), inserted heading.
      1983 - Subsec. (a). Pub. L. 98-94, Sec. 922(a)(5), substituted
    "according to the following table. The amount recomputed, if not a
    multiple of $1, shall be rounded to the next lower multiple of $1."
    for "as follows:".
      Pub. L. 98-94, Sec. 923(a)(1), (2)(D), in footnote 1 of table,
    substituted "Before applying percentage factor, credit each full
    month of service that is in addition to the number of full years of
    service creditable to the member as one-twelfth of a year and
    disregard any remaining fractional part of a month" for "Before
    applying percentage factor, credit a part of a year that is six
    months or more as a whole year, and disregard a part of a year that
    is less than six months".
      Subsec. (d). Pub. L. 98-94, Sec. 922(a)(6), substituted
    "according to the following table. The amount computed, if not a
    multiple of $1, shall be rounded to the next lower multiple of $1."
    for "as follows:".
      Pub. L. 98-94, Sec. 923(a)(1), (2)(E), in footnote 1 of table,
    substituted "Before applying percentage factor, credit each full
    month of service that is in addition to the number of full years of
    service creditable to the member as one-twelfth of a year and
    disregard any remaining fractional part of a month" for "Before
    applying percentage factor, credit a part of a year that is six
    months or more as a whole year, and disregard a part of a year that
    is less than six months".
      1980 - Pub. L. 96-513, Sec. 511(51)(B), substituted "of members
    who first became members after September 7, 1980" for "in case of
    members who first became members after the enactment of the
    Department of Defense Authorization Act, 1981" in section
    catchline.
      Subsecs. (a) to (c). Pub. L. 96-513, Sec. 511(51)(A), substituted
    "after September 7, 1980" for "on or after the date of the
    enactment of the Department of Defense Authorization Act, 1981"
    wherever appearing.

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983,
    see section 922(e) of Pub. L. 98-94, set out as a note under
    section 1401 of this title.
      Amendment by section 923 of Pub. L. 98-94 applicable with respect
    to (1) the computation of retired or retainer pay of any individual
    who becomes entitled to that pay after Sept. 30, 1983, and (2) the
    recomputation of retired pay under this section, of any individual
    who after Sept. 30, 1983, becomes entitled to recompute retired pay
    under this section, see section 923(g) of Pub. L. 98-94, set out as
    a note under section 1174 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section
    701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of
    this title.

              ACCRUAL OF BENEFITS; PROSPECTIVE APPLICABILITY          
      No benefits to accrue for months beginning before Oct. 23, 1992,
    by reason of the amendment by Pub. L. 102-484, see section 642(c)
    of Pub. L. 102-484, set out as a note under section 1402 of this
    title.

-End-



-CITE-
    10 USC Sec. 1403                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1403. Disability retired pay: treatment under Internal Revenue
      Code of 1986

-STATUTE-
      That part of the retired pay of a member of an armed force,
    computed under formula No. 1 or 2 of section 1401, or under section
    1402(d) or 1402a(d) of this title on the basis of years of service,
    which exceeds the retired pay that he would receive if it were
    computed on the basis of percentage of disability is not considered
    as a pension, annuity, or similar allowance for personal injury, or
    sickness, resulting from active service in the armed forces, under
    section 104(a) of the Internal Revenue Code of 1986.

-SOURCE-
    (Aug. 10, 1956, ch. 1041, 70A Stat. 108; Pub. L. 96-342, title
    VIII, Sec. 813(b)(3)(C), Sept. 8, 1980, 94 Stat. 1104; Pub. L. 96-
    513, title V, Sec. 511(52)(A), (B), Dec. 12, 1980, 94 Stat. 2925;
    Pub. L. 100-26, Sec. 7(h)(1), (2)(A), Apr. 21, 1987, 101 Stat.
    282.)

-MISC1-



                       HISTORICAL AND REVISION NOTES                   
    --------------------------------------------------------------------
     Revised         Source (U.S. Code)           Source (Statutes at   
     section                                             Large)         
    --------------------------------------------------------------------
    1403         37:272(h).                    Oct. 12, 1949, ch. 681,  
                                                Sec. 402(h), 63 Stat.   
                                                820.                    
    --------------------------------------------------------------------


-REFTEXT-
                            REFERENCES IN TEXT                        
      The Internal Revenue Code of 1986, referred to in text, is set
    out in Title 26, Internal Revenue Code.


-MISC2-
                                AMENDMENTS                            
      1987 - Pub. L. 100-26 substituted "Internal Revenue Code of 1986"
    for "Internal Revenue Code of 1954" in section catchline and text.
      1980 - Pub. L. 96-513 substituted "the Internal Revenue Code of
    1954" for "title 26" in section catchline and text.
      Pub. L. 96-342 inserted reference to section 1402a(d) of this
    title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section
    701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of
    this title.

-End-



-CITE-
    10 USC Sec. 1404                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1404. Applicability of section 8301 of title 5

-STATUTE-
      The retirement provisions of this title are subject to section
    8301 of title 5.

-SOURCE-
    (Aug. 10, 1956, ch. 1041, 70A Stat. 108; Pub. L. 89-718, Sec. 3,
    Nov. 2, 1966, 80 Stat. 1115.)

-MISC1-



                       HISTORICAL AND REVISION NOTES                   
    --------------------------------------------------------------------
     Revised         Source (U.S. Code)           Source (Statutes at   
     section                                             Large)         
    --------------------------------------------------------------------
    1404         [No source].                  [No source].             
    --------------------------------------------------------------------

      The effect of the act of April 23, 1930 (5 U.S.C. 47a), in
    temporarily deferring retirement dates otherwise specifically fixed
    by law is reflected in the sections of the proposed text that name
    those dates. This section is inserted to make clear that under that
    act such deferments have no effect on the applicability of the
    specific rates that are to be used in computing retired pay.

                                AMENDMENTS                            
      1966 - Pub. L. 89-718 substituted "8301" for "47a" in section
    catchline and text.

-End-



-CITE-
    10 USC Sec. 1405                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1405. Years of service

-STATUTE-
      (a) In General. - For the purposes of the computation of the
    years of service of a member of the armed forces under a provision
    of this title providing for such computation to be made under this
    section, the years of service of the member are computed by adding -
     
        (1) his years of active service;
        (2) the years of service, not included in clause (1), with
      which he was entitled to be credited on May 31, 1958, in
      computing his basic pay; and
        (3) the years of service, not included in clause (1) or (2),
      with which he would be entitled to be credited under section
      12733 of this title if he were entitled to retired pay under
      section 12731 of this title.

      (b) Fractional Years of Service. - In determining a member's
    years of service under subsection (a) - 
        (1) each full month of service that is in addition to the
      number of full years of service creditable to the member shall be
      credited as  1/12  of a year; and
        (2) any remaining fractional part of a month shall be
      disregarded.

      (c) Exclusion of Time Required To Be Made Up or Excluded. - (1)
    Time required to be made up by an enlisted member of the Army or
    Air Force under section 972(a) of this title, or required to be
    made up by an enlisted member of the Navy, Marine Corps, or Coast
    Guard under that section with respect to a period of time after
    October 5, 1994, may not be counted in determining years of service
    under subsection (a).
      (2) Section 972(b) of this title excludes from computation of an
    officer's years of service for purposes of this section any time
    identified with respect to that officer under that section.

-SOURCE-
    (Added Pub. L. 85-422, Sec. 11(a)(1)(A), May 20, 1958, 72 Stat.
    130; amended Pub. L. 85-861, Sec. 1(31A), Sept. 2, 1958, 72 Stat.
    1451; Pub. L. 87-649, Sec. 6(f)(4), Sept. 7, 1962, 76 Stat. 494;
    Pub. L. 87-651, title I, Sec. 109, Sept. 7, 1962, 76 Stat. 509;
    Pub. L. 90-130, Sec. 1(7), Nov. 8, 1967, 81 Stat. 374; Pub. L. 96-
    513, title I, Sec. 113(b), Dec. 12, 1980, 94 Stat. 2877; Pub. L.
    97-295, Sec. 1(17), Oct. 12, 1982, 96 Stat. 1290; Pub. L. 99-348,
    title I, Sec. 106, July 1, 1986, 100 Stat. 691; Pub. L. 103-337,
    div. A, title VI, Sec. 635(d), title XVI, Sec. 1662(j)(3), Oct. 5,
    1994, 108 Stat. 2789, 3004; Pub. L. 104-106, div. A, title V, Sec.
    561(d)(1), Feb. 10, 1996, 110 Stat. 322; Pub. L. 104-201, div. A,
    title X, Sec. 1074(b)(1), Sept. 23, 1996, 110 Stat. 2660; Pub. L.
    107-107, div. A, title X, Sec. 1048(c)(7), Dec. 28, 2001, 115 Stat.
    1226.)

-MISC1-



                       HISTORICAL AND REVISION NOTES                   
                                 1958 ACT                             
    --------------------------------------------------------------------
     Revised         Source (U.S. Code)           Source (Statutes at   
     section                                             Large)         
    --------------------------------------------------------------------
    1405         [No source].                  [No source].             
    --------------------------------------------------------------------

      The amendment reflects section 11 of the Act of May 20, 1958,
    Pub. L. 85-422 (72 Stat. 130).

                                 1962 ACT                             
      The change corrects a typographical error.

                                 1982 ACT                             
      This amends 10:1405 to correct an inadvertent error in the
    codification of title 10 in 1956 relating to retirement pay of
    warrant officers advanced on the retired list. Under provisions of
    law first enacted in 1948 through the codification of title 10 in
    1956 and until 1965, warrant officers advanced on the retired list
    received credit for inactive service in the computation of
    retirement pay. The Comptroller General in 1965 (B-156576) held in
    effect that computation of such retirement pay was governed by the
    wording of new title 10 that based the computation on years of
    active service only even though this had the result of making a
    substantive change. The Armed Services Committee of the House of
    Representatives concurs that an error was made in the codification
    of title 10 and has indicated that corrective legislative action is
    properly a responsibility of the House Judiciary Committee. See,
    also, the amendments to 10:3992 and 8992 made by sections 1(40) and
    1(52), respectively.

                                AMENDMENTS                            
      2001 - Subsec. (c)(1). Pub. L. 107-107 substituted "October 5,
    1994," for "the date of the enactment of the National Defense
    Authorization Act for Fiscal Year 1995,".
      1996 - Subsec. (c). Pub. L. 104-106, as amended by Pub. L. 104-
    201, substituted "Made Up or Excluded" for "Made Up" in heading,
    designated existing provisions as par. (1), substituted "section
    972(a) of this title, or required to be made up by an enlisted
    member of the Navy, Marine Corps, or Coast Guard under that section
    with respect to a period of time after the date of the enactment of
    the National Defense Authorization Act for Fiscal Year 1995," for
    "section 972 of this title", and added par. (2).
      1994 - Subsec. (a)(3). Pub. L. 103-337, Sec. 1662(j)(3),
    substituted "12733" for "1333" and "12731" for "1331".
      Subsec. (c). Pub. L. 103-337, Sec. 635(d), added subsec. (c).
      1986 - Pub. L. 99-348 designated existing provision as subsec.
    (a), inserted heading, and in provision preceding par. (1)
    substituted "the computation of the years of service of a member of
    the armed forces under a provision of this title providing for such
    computation to be made under this section, the years of service of
    the member" for "section 1401 (formulas 4 and 5), 3991 (formula A),
    3992 (formula B), 6151(b), 6323(e), 6325(a)(2) and (b)(2),
    6383(c)(2), 8991 (formula A), or 8992 (formula B) of this title,
    the years of service of a member of the armed forces", and added
    subsec. (b).
      1982 - Pub. L. 97-295, Sec. 1(17), substituted "3991 (formula A),
    3992 (formula B)" for "3991 (formula B)", struck out "or" first
    time appearing, and substituted "8991 (formula A), or 8992 (formula
    B)" for "8991 (formula B)".
      1980 - Pub. L. 96-513 struck out provisions that permitted the
    crediting of certain periods of constructive service in computing
    the retired pay of medical and dental officers and provided that
    members would compute their years of service for retirement pay by
    adding (1) years of active service, (2) years of service not
    otherwise counted with which the member was entitled to be credited
    on May 31, 1958, and (3) years of service not otherwise counted
    with which he would be credited under section 1333 if he were
    entitled to retired pay under section 1331.
      1967 - Pub. L. 90-130 struck out references to section 6399(c)(2)
    of this title.
      1962 - Pub. L. 87-651 struck out references to sections 6391(h)
    and 6394(g)(2) of this title and inserted a reference to section
    6394(h) of this title.
      Pub. L. 87-649 substituted "section 205(a)(7) and (8) of title
    37" for "section 233(a)(7) of title 37" in cl. (2).
      1958 - Pub. L. 85-861 inserted references to sections 6323(e) and
    6391(h) of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-106 effective Feb. 10, 1996, and
    applicable to any period of time covered by section 972 of this
    title that occurs after that date, see section 561(e) of Pub. L.
    104-106, set out as a note under section 972 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 635(e) of Pub. L. 103-337 provided that: "This section
    [amending this section and sections 3925, 3991, 3992, 6333, 8925,
    8991, and 8992 of this title] shall apply to - 
        "(1) the computation of the retired pay of any enlisted member
      who retires on or after the date of the enactment of this Act
      [Oct. 5, 1994];
        "(2) the computation of the retainer pay of any enlisted member
      who is transferred to the Fleet Reserve or the Fleet Marine Corps
      Reserve on or after the date of the enactment of this Act; and
        "(3) the recomputation of the retired pay of any enlisted
      member who is advanced on the retired list on or after the date
      of the enactment of this Act."
      Amendment by section 1662(j)(3) of Pub. L. 103-337 effective Dec.
    1, 1994, except as otherwise provided, see section 1691 of Pub. L.
    103-337, set out as an Effective Date note under section 10001 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-513 effective Sept. 15, 1981, but the
    authority to prescribe regulations under the amendment by Pub. L.
    96-513 effective on Dec. 12, 1980, see section 701 of Pub. L. 96-
    513, set out as a note under section 101 of this title.

                     EFFECTIVE DATE OF 1962 AMENDMENT                 
      Amendment by Pub. L. 87-649 effective Nov. 1, 1962, see section
    15 of Pub. L. 87-649, set out as a note preceding section 101 of
    Title 37, Pay and Allowances of the Uniformed Services.

                              EFFECTIVE DATE                          
      Section effective June 1, 1958, see section 9 of Pub. L. 85-422.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.


-MISC2-
     TRANSITION PROVISIONS UNDER DEFENSE OFFICER PERSONNEL MANAGEMENT
                                    ACT
      For provisions to prevent extinction or premature termination of
    rights, duties, penalties, or proceedings that existed or were
    begun prior to the effective date of Pub. L. 96-513 and otherwise
    to allow for an orderly transition to the system of officer
    personnel management put in place under Pub. L. 96-513, see section
    601 et seq. of Pub. L. 96-513, set out as a note under section 611
    of this title.

-End-



-CITE-
    10 USC Sec. 1406                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1406. Retired pay base for members who first became members
      before September 8, 1980: final basic pay

-STATUTE-
      (a) Use of Retired Pay Base in Computing Retired Pay. - 
        (1) General rule. - The retired pay or retainer pay of any
      person entitled to that pay who first became a member of a
      uniformed service before September 8, 1980, is computed using the
      retired pay base or retainer pay base determined under this
      section.
        (2) Exception for recomputation. - Recomputation of retired or
      retainer pay to reflect later active duty is provided for under
      section 1402 of this title without reference to a retired pay
      base or retainer pay base.

      (b) Retirement Under Subtitle A or E. - 
        (1) Disability, warrant officer, and dopma retirement. - In the
      case of a person whose retired pay is computed under this
      subtitle, the retired pay base is determined in accordance with
      the following table.


         For a member entitled to             The retired pay base is:   
        retired pay under section:                                       
    --------------------------------------------------------------------
                                  1201    Monthly basic pay(!1) of grade 
                                           to which member is entitled   
                                           under section 1372 or to which
                                           he was entitled on day before 
                                           retirement or placement on    
                                           temporary disability retired  
                                           list, whichever is higher.    
                                  1202                                   
                                  1204                                   
                                  1205                                   
                                   580    Monthly basic pay to which     
                                           member would have been        
                                           entitled if he had served on  
                                           active duty in his retired    
                                           grade on day before           
                                           retirement, or if the pay of  
                                           that grade is less than the   
                                           pay of any warrant grade      
                                           satisfactorily held by him on 
                                           active duty, the monthly basic
                                           pay of that warrant officer   
                                           grade.                        
                                  1263                                   
                                  1293                                   
                                  1305                                   
                                   633    Monthly basic pay(!2) of       
                                           member's retired grade.(!3)   
                                   634                                   
                                   635                                   
                                   636                                   
                                  1251                                   
                                  1252                                   
                                  1253                                   

      (!1) Compute at rates applicable on date of retirement or date
    when member's name was placed on temporary disability retired list,
    as the case may be.
      (!2) Compute at rates applicable on date of retirement.
      (!3) For the purposes of this subsection, determine member's
    retired grade as if sections 3962 and 8962 did not apply.
    --------------------------------------------------------------------

        (2) Non-regular service retirement. - In the case of a person
      who is entitled to retired pay under section 12731 of this title,
      the retired pay base is the monthly basic pay, determined at the
      rates applicable on the date when retired pay is granted, of the
      highest grade held satisfactorily by the person at any time in
      the armed forces. For purposes of the preceding sentence, the
      highest grade in which a person served satisfactorily as an
      officer shall be determined in accordance with section 1370(d) of
      this title.

      (c) Voluntary Retirement for Members of the Army. - 
        (1) In general. - In the case of a member whose retired pay is
      computed under section 3991 of this title or who is entitled to
      retired pay computed under section 3992 of this title, the
      retired pay base is determined in accordance with the following
      table.


         For a member entitled to             The retired pay base is:   
        retired pay under section:                                       
    --------------------------------------------------------------------
                                  3911    Monthly basic pay of member's  
                                           retired grade.(!1)            
                                  3918                                   
                                  3920                                   
                                  3924                                   
                                  3914    Monthly basic pay to which     
                                           member was entitled on day    
                                           before he retired.            
                                  3917                                   
                                  3992    Monthly basic pay of grade to  
                                           which member is advanced on   
                                           retired list.                 

      (!1) For the purposes of this subsection, determine member's
    retired grade as if section 3962 did not apply.
    --------------------------------------------------------------------

        (2) Rate of basic pay to be used. - The rate of basic pay to be
      used under paragraph (1) is the rate applicable on the date of
      the member's retirement.

      (d) Retirement for Members of the Navy and Marine Corps. - In the
    case of a member whose retired pay is computed under section 6333
    of this title, who is advanced on the retired list under section
    6151 or 6334 of this title, or who is entitled to retainer pay
    under section 6330 of this title, the retired pay base or retainer
    pay base is determined in accordance with the following table.


         For a member entitled to             The retired pay base or    
       retired or retainer pay under           retainer pay base is:     
                 section:                                                
    --------------------------------------------------------------------
                                  6323    Basic pay of the grade in      
                                           which the member retired.(!1) 
                               6325(a)                                   
                                  6383                                   
                               6325(b)    Basic pay of the grade the     
                                           officer would hold if he had  
                                           not received an appointment   
                                           described in section 6325(b). 
                                  6326    Basic pay of the pay grade in  
                                           which the member was serving  
                                           on the day before retirement. 
                                  6330    Basic pay that the member      
                                           received at the time of       
                                           transfer to the Fleet Reserve 
                                           or Fleet Marine Corps Reserve.
                                  6151    Basic pay of the grade to      
                                           which the member is advanced  
                                           under section 6151.           
                                  6334    Basic pay of the grade to      
                                           which the member is advanced  
                                           under section 6334.           

      (!1) If the rate specified is less than the pay of any warrant
    officer grade satisfactorily held by the member on active duty, use
    the monthly basic pay of that warrant officer grade.
    --------------------------------------------------------------------

      (e) Voluntary Retirement for Members of the Air Force. - 
        (1) In general. - In the case of a member whose retired pay is
      computed under section 8991 of this title or who is entitled to
      retired pay computed under section 8992 of this title, the
      retired pay base is determined in accordance with the following
      table.


         For a member entitled to             The retired pay base is:   
        retired pay under section:                                       
    --------------------------------------------------------------------
                                  8911    Monthly basic pay of member's  
                                           retired grade.(!1)            
                                  8918                                   
                                  8920                                   
                                  8924                                   
                                  8914    Monthly basic pay to which     
                                           member was entitled on day    
                                           before he retired.            
                                  8917                                   
                                  8992    Monthly basic pay of grade to  
                                           which member is advanced on   
                                           retired list.                 

      (!1) For the purposes of this subsection, determine member's
    retired grade as if section 8962 did not apply.
    --------------------------------------------------------------------

        (2) Rate of basic pay to be used. - The rate of basic pay to be
      used under paragraph (1) is the rate applicable on the date of
      the member's retirement.

      (f) Coast Guard. - In the case of a member who is retired under
    any section of title 14, the member's retired pay is computed under
    section 423(a) of title 14 in the manner provided in that section.
      (g) Commissioned Corps of National Oceanic and Atmospheric
    Administration. - In the case of an officer whose retired pay is
    computed under section 245 of the National Oceanic and Atmospheric
    Administration Commissioned Officer Corps Act of 2002 (33 U.S.C.
    3045), the retired pay base is the basic pay of the rank with which
    the officer retired.
      (h) Commissioned Corps of Public Health Service. - In the case of
    an officer who is retired under section 210(g) or 211(a) of the
    Public Health Service Act (42 U.S.C. 211(g), 212(a)), the retired
    pay base is determined as follows:
        (1) Mandatory retirement. - If the officer is retired under
      section 210(g) of such Act, the retired pay base is the basic pay
      of the permanent grade held by the officer at the time of
      retirement.
        (2) Voluntary retirement. - If the officer is retired under
      section 211(a) of such Act, the retired pay base is the basic pay
      of the highest grade held by the officer and in which, in the
      case of a temporary promotion to such grade, the officer has
      performed active duty for not less than six months.

      (i) Special Rule for Former Chairmen and Vice Chairmen of the
    JCS, Chiefs of Service, Commanders of Combatant Commands, and
    Senior Enlisted Members. - 
        (1) In general. - For the purposes of subsections (b) through
      (e), in determining the rate of basic pay to apply in the
      determination of the retired pay base of a member who has served
      as Chairman or Vice Chairman of the Joint Chiefs of Staff, as a
      Chief of Service, as a commander of a unified or specified
      combatant command (as defined in section 161(c) of this title),
      or as the senior enlisted member of an armed force, the highest
      rate of basic pay applicable to the member while serving in that
      position shall be used, if that rate is higher than the rate
      otherwise authorized by this section.
        (2) Exception for members reduced in grade or who do not serve
      satisfactorily. - Paragraph (1) does not apply in the case of a
      member who, while or after serving in a position specified in
      that paragraph and by reason of conduct occurring after October
      16, 1998 - 
          (A) in the case of an enlisted member, is reduced in grade as
        the result of a court-martial sentence, nonjudicial punishment,
        or other administrative process; or
          (B) in the case an officer, is not certified by the Secretary
        of Defense under section 1370(c) of this title as having served
        on active duty satisfactorily in the grade of general or
        admiral, as the case may be, while serving in that position.

        (3) Definitions. - In this subsection:
          (A) The term "Chief of Service" means any of the following:
            (i) Chief of Staff of the Army.
            (ii) Chief of Naval Operations.
            (iii) Chief of Staff of the Air Force.
            (iv) Commandant of the Marine Corps.
            (v) Commandant of the Coast Guard.

          (B) The term "senior enlisted member" means any of the
        following:
            (i) Sergeant Major of the Army.
            (ii) Master Chief Petty Officer of the Navy.
            (iii) Chief Master Sergeant of the Air Force.
            (iv) Sergeant Major of the Marine Corps.
            (v) Master Chief Petty Officer of the Coast Guard.
            (vi) Senior Enlisted Advisor to the Chairman of the Joint
          Chiefs of Staff.

-SOURCE-
    (Added Pub. L. 99-348, title I, Sec. 104(b), July 1, 1986, 100
    Stat. 686; amended Pub. L. 100-180, div. A, title V, Sec.
    512(d)(2), title XIII, Sec. 1314(b)(6), Dec. 4, 1987, 101 Stat.
    1090, 1175; Pub. L. 100-456, div. A, title XII, Sec. 1233(c), Sept.
    29, 1988, 102 Stat. 2057; Pub. L. 102-190, div. A, title XI, Sec.
    1131(7), Dec. 5, 1991, 105 Stat. 1506; Pub. L. 103-337, div. A,
    title XVI, Sec. 1662(j)(4), Oct. 5, 1994, 108 Stat. 3004; Pub. L.
    105-85, div. A, title X, Sec. 1073(a)(23), Nov. 18, 1997, 111 Stat.
    1901; Pub. L. 105-261, div. A, title VI, Sec. 646, Oct. 17, 1998,
    112 Stat. 2050; Pub. L. 106-65, div. A, title X, Sec. 1066(a)(11),
    Oct. 5, 1999, 113 Stat. 771; Pub. L. 107-372, title II, Sec.
    272(a), Dec. 19, 2002, 116 Stat. 3094; Pub. L. 108-136, div. A,
    title VI, Sec. 643(a), (b), Nov. 24, 2003, 117 Stat. 1517; Pub. L.
    108-375, div. A, title X, Sec. 1084(d)(9), Oct. 28, 2004, 118 Stat.
    2061; Pub. L. 109-163, div. A, title V, Sec. 509(d)(1)(B), title
    VI, Sec. 685(d), Jan. 6, 2006, 119 Stat. 3231, 3325; Pub. L. 109-
    364, div. A, title V, Sec. 502(d)(2), title X, Sec. 1071(a)(7),
    Oct. 17, 2006, 120 Stat. 2178, 2398.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1406 was renumbered section 12738 of this title.

                                AMENDMENTS                            
      2006 - Subsec. (b)(1). Pub. L. 109-364, Sec. 502(d)(2), in table
    inserted "1253" at end of column under heading "For a member
    entitled to retired pay under section:".
      Pub. L. 109-163, Sec. 509(d)(1)(B), in table inserted "1252" at
    end of column under heading "For a member entitled to retired pay
    under section:".
      Subsec. (i)(3)(B)(vi). Pub. L. 109-364, Sec. 1071(a)(7),
    substituted "to" for "for".
      Pub. L. 109-163, Sec. 685(d), added cl. (vi).
      2004 - Subsec. (g). Pub. L. 108-375 substituted "section 245" for
    "section 305" and "Officer Corps Act of 2002 (33 U.S.C. 3045)" for
    "Officers Act of 2002".
      2003 - Subsec. (i). Pub. L. 108-136 inserted "Commanders of
    Combatant Commands," after "Chiefs of Service," in heading and "as
    a commander of a unified or specified combatant command (as defined
    in section 161(c) of this title)," after "Chief of Service," in
    par. (1).
      2002 - Subsec. (g). Pub. L. 107-372 substituted "section 305 of
    the National Oceanic and Atmospheric Administration Commissioned
    Officers Act of 2002" for "section 16 of the Coast and Geodetic
    Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853o)"
      1999 - Subsec. (i)(2). Pub. L. 106-65 substituted "after October
    16, 1998" for "on or after the date of the enactment of the Strom
    Thurmond National Defense Authorization Act for Fiscal Year 1999"
    in introductory provisions.
      1998 - Subsec. (i)(2), (3). Pub. L. 105-261 added par. (2) and
    redesignated former par. (2) as (3).
      1997 - Subsec. (b)(1). Pub. L. 105-85 substituted "3962 and 8962"
    for "3962(b) and 8962(b)" in footnote 3 in table.
      Subsec. (c)(1). Pub. L. 105-85, Sec. 1073(a)(23)(A), substituted
    "3962" for "3962(b)" in footnote 1 in table.
      Subsec. (e)(1). Pub. L. 105-85, Sec. 1073(a)(23)(B), substituted
    "8962" for "8962(b)" in footnote 1 in table.
      1994 - Subsec. (b). Pub. L. 103-337 substituted "Subtitle A or E"
    for "Subtitle A" in subsec. heading, designated existing provisions
    as par. (1), inserted par. (1) heading, in table struck out item
    for section 1331 which related to monthly basic pay of highest
    grade held satisfactorily by person at any time in armed forces,
    renumbered footnotes 3 and 4 as 2 and 3, respectively, and struck
    out former footnote 2 which provided for computations at rates
    applicable on date when retired pay is granted, and added par. (2).
      1991 - Subsec. (b). Pub. L. 102-190 substituted "580" for "564"
    in table.
      1988 - Subsec. (b). Pub. L. 100-456 substituted "satisfactorily
    by person" for "satisfactory by person" in item relating to section
    1331 in table.
      1987 - Subsec. (d). Pub. L. 100-180, Sec. 512(d)(2), inserted "or
    6334" after "6151" in text, and inserted item relating to section
    6334 at end of table.
      Subsec. (i). Pub. L. 100-180, Sec. 1314(b)(6), inserted "and Vice
    Chairmen" after "Chairmen" in heading and inserted "or Vice
    Chairman" after "Chairman" in par. (1).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-136, div. A, title VI, Sec. 643(c), Nov. 24, 2003,
    117 Stat. 1517, provided that: "The amendments made by this section
    [amending this section] shall take effect on the date of the
    enactment of this Act [Nov. 24, 2003] and shall apply with respect
    to officers who first become entitled to retired pay under title
    10, United States Code, on or after such date."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as
    otherwise provided, see section 1691 of Pub. L. 103-337, set out as
    an Effective Date note under section 10001 of this title.

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Amendment by Pub. L. 102-190 effective Feb. 1, 1992, see section
    1132 of Pub. L. 102-190, set out as a note under section 521 of
    this title.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.


-MISC2-
                   GRADE ON TRANSFER TO RETIRED RESERVE               
      Section 1688 of title XVI of Pub. L. 103-337 provided that: "In
    determining the highest grade held satisfactorily by a person at
    any time in the Armed Forces for the purposes of paragraph (2) of
    section 1406(b) of title 10, United States Code, as added by this
    title, the requirement for satisfactory service on the reserve
    active-status list contained in section 1370(d) of title 10, United
    States Code, as added by this title, shall apply only to reserve
    commissioned officers who are promoted to a higher grade as a
    result of selection for promotion under chapter 36 of that title or
    under chapter 1405 of that title, as added by this title, or having
    been found qualified for Federal recognition in a higher grade
    under chapter 3 of title 32, United States Code, after the
    effective date of this title [see Effective Date note set out under
    section 10001 of this title]."

-End-



-CITE-
    10 USC Sec. 1407                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1407. Retired pay base for members who first became members
      after September 7, 1980: high-36 month average

-STATUTE-
      (a) Use of Retired Pay Base in Computing Retired Pay. - The
    retired pay or retainer pay of any person entitled to that pay who
    first became a member of a uniformed service after September 7,
    1980, is computed using the retired pay base or retainer pay base
    determined under this section.
      (b) High-Three Average. - Except as provided in subsection (f),
    the retired pay base or retainer pay base of a person under this
    section is the person's high-three average determined under
    subsection (c) or (d).
      (c) Computation of High-Three Average for Members Entitled to
    Retired or Retainer Pay for Regular Service. - 
        (1) General rule. - The high-three average of a member entitled
      to retired or retainer pay under any provision of law other than
      section 1204 or 1205 or section 12731 of this title is the amount
      equal to - 
          (A) the total amount of monthly basic pay to which the member
        was entitled for the 36 months (whether or not consecutive) out
        of all the months of active service of the member for which the
        monthly basic pay to which the member was entitled was the
        highest, divided by
          (B) 36.

        (2) Special rule for short-term disability retirees. - In the
      case of a member who is entitled to retired pay under section
      1201 or 1202 of this title and who has completed less than 36
      months of active service, the member's high-three average
      (notwithstanding paragraph (1)) is the amount equal to - 
          (A) the total amount of basic pay to which the member was
        entitled during the period of the member's active service,
        divided by
          (B) the number of months (including any fraction thereof) of
        the member's active service.

        (3) Special Rule for Reserve Component Members. - In the case
      of a member of a reserve component who is entitled to retired pay
      under section 1201 or 1202 of this title, the member's high-three
      average (notwithstanding paragraphs (1) and (2)) is computed in
      the same manner as prescribed in paragraphs (2) and (3) of
      subsection (d) for a member entitled to retired pay under section
      1204 or 1205 of this title.

      (d) Computation of High-Three Average for Members and Former
    Members Entitled to Retired Pay for Nonregular Service. - 
        (1) Retired pay under chapter 1223. - The high-three average of
      a member or former member entitled to retired pay under section
      12731 of this title is the amount equal to - 
          (A) the total amount of monthly basic pay to which the member
        or former member was entitled during the member or former
        member's high-36 months (or to which the member or former
        member would have been entitled if the member or former member
        had served on active duty during the entire period of the
        member or former member's high-36 months), divided by
          (B) 36.

        (2) Nonregular service disability retired pay. - The high-three
      average of a member entitled to retired pay under section 1204 or
      1205 of this title is the amount equal to - 
          (A) the total amount of monthly basic pay to which the member
        was entitled during the member's high-36 months (or to which
        the member would have been entitled if the member had served on
        active duty during the entire period of the member's high-36
        months), divided by
          (B) 36.

        (3) Special rule for short-term disability retirees. - In the
      case of a member who is entitled to retired pay under section
      1204 or 1205 of this title and who was a member for less than 36
      months before being retired under that section, the member's high-
      three average (notwithstanding paragraph (2)) is the amount
      equal to - 
          (A) the total amount of basic pay to which the member was
        entitled during the entire period the member was a member of a
        uniformed service before being so retired (or to which the
        member would have been entitled if the member had served on
        active duty during the entire period the member was a member of
        a uniformed service before being so retired), divided by
          (B) the number of months (including any fraction thereof)
        which the member was a member before being so retired.

        (4) High-36 months. - The high-36 months of a member or former
      member whose retired pay is covered by paragraph (1) or (2) are
      the 36 months (whether or not consecutive) out of all the months
      before the member or former member became entitled to retired pay
      for which the monthly basic pay to which the member or former
      member was entitled (or would have been entitled if serving on
      active duty during those months) was the highest. In the case of
      a former member, only months during which the former member was a
      member of a uniformed service may be used for purposes of the
      preceding sentence.

      (e) Limitation for Enlisted Members Retiring With Less Than 30
    Years' Service. - In the case of a member who is retired under
    section 3914 or 8914 of this title or who is transferred to the
    Fleet Reserve or Fleet Marine Corps Reserve under section 6330 of
    this title, the member's high-36 average shall be computed using
    only rates of basic pay applicable to months of active duty of the
    member as an enlisted member.
      (f) Exception for Enlisted Members Reduced in Grade and Officers
    Who Do Not Serve Satisfactorily in Highest Grade Held. - 
        (1) Computation based on pre-high-three rules. - In the case of
      a member or former member described in paragraph (2), the retired
      pay base or retainer pay base is determined under section 1406 of
      this title in the same manner as if the member or former member
      first became a member of a uniformed service before September 8,
      1980.
        (2) Affected members. - A member or former member referred to
      in paragraph (1) is a member or former member who by reason of
      conduct occurring after October 30, 2000 - 
          (A) in the case of a member retired in an enlisted grade or
        transferred to the Fleet Reserve or Fleet Marine Corps Reserve,
        was at any time reduced in grade as the result of a court-
        martial sentence, nonjudicial punishment, or an administrative
        action, unless the member was subsequently promoted to a higher
        enlisted grade or appointed to a commissioned or warrant grade;
        and
          (B) in the case of an officer, is retired in a grade lower
        than the highest grade in which served by reason of denial of a
        determination or certification under section 1370 of this title
        that the officer served on active duty satisfactorily in that
        grade.

        (3) Special rule for enlisted members. - In the case of a
      member who retires within three years after having been reduced
      in grade as described in paragraph (2)(A), who retires in an
      enlisted grade that is lower than the grade from which reduced,
      and who would be subject to paragraph (1) but for a subsequent
      promotion to a higher enlisted grade or a subsequent appointment
      to a warrant or commissioned grade, the rates of basic pay used
      in the computation of the member's high-36 average for the period
      of the member's service in a grade higher than the grade in which
      retired shall be the rates of pay that would apply if the member
      had been serving for that period in the grade in which retired.

-SOURCE-
    (Added Pub. L. 99-348, title I, Sec. 104(b), July 1, 1986, 100
    Stat. 689; amended Pub. L. 101-189, div. A, title VI, Sec. 651(a),
    (b)(2), Nov. 29, 1989, 103 Stat. 1459, 1460; Pub. L. 103-337, div.
    A, title XVI, Sec. 1662(j)(5), Oct. 5, 1994, 108 Stat. 3004; Pub.
    L. 104-106, div. A, title XV, Sec. 1501(c)(15), Feb. 10, 1996, 110
    Stat. 499; Pub. L. 106-398, Sec. 1 [[div. A], title VI, Sec. 651],
    Oct. 30, 2000, 114 Stat. 1654, 1654A-163; Pub. L. 107-107, div. A,
    title X, Sec. 1048(c)(8), Dec. 28, 2001, 115 Stat. 1226; Pub. L.
    108-375, div. A, title VI, Sec. 641(a), Oct. 28, 2004, 118 Stat.
    1957.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1407, added Pub. L. 96-342, title VIII, Sec.
    813(a)(1), Sept. 8, 1980, 94 Stat. 1100; amended Pub. L. 96-513,
    title I, Sec. 113(c), title V, Secs. 501(21), 511(53), Dec. 12,
    1980, 94 Stat. 2877, 2908, 2925, related to determination of
    retired base pay, prior to repeal by Pub. L. 99-348, Sec. 104(b).

                                AMENDMENTS                            
      2004 - Subsec. (c)(3). Pub. L. 108-375 added par. (3).
      2001 - Subsec. (f)(2). Pub. L. 107-107 substituted "October 30,
    2000 - " for "the date of the enactment of this subsection - " in
    introductory provisions.
      2000 - Subsec. (b). Pub. L. 106-398, Sec. 1 [[div. A], title VI,
    Sec. 651(1)], substituted "Except as provided in subsection (f),
    the retired pay base" for "The retired pay base".
      Subsec. (f). Pub. L. 106-398, Sec. 1 [[div. A], title VI, Sec.
    651(2)], added subsec. (f).
      1996 - Subsec. (c)(1). Pub. L. 104-106, Sec. 1501(c)(15)(A),
    substituted "section 12731" for "section 1331".
      Subsec. (d)(1). Pub. L. 104-106 substituted in heading "chapter
    1223" for "chapter 67" and in text "section 12731" for "section
    1331".
      1994 - Subsec. (c)(2)(B). Pub. L. 103-337, Sec. 1662(j)(5)(A),
    which directed substitution of "chapter 1223" for "chapter 67",
    could not be executed because the words "chapter 67" did not appear
    subsequent to amendment by Pub. L. 101-189, Sec. 651(a)(2), (4).
    See 1989 Amendment note below.
      Subsec. (f)(2). Pub. L. 103-337, Sec. 1662(j)(5)(B), which
    directed amendment of subsec. (f)(2) by substituting "Chapter 1223"
    for "Chapter 67" in heading and "section 12731" for "section 1331"
    in text, could not be executed because of previous repeal of
    subsec. (f) by Pub. L. 101-189, Sec. 651(a)(2). See 1989 Amendment
    note below.
      1989 - Subsec. (b). Pub. L. 101-189, Sec. 651(a)(1), (b)(2),
    substituted "person" for "member", "person's" for "member's", and
    "subsection (c) or (d)" for "subsection (c)".
      Subsec. (c). Pub. L. 101-189, Sec. 651(a)(2), (4), added subsec.
    (c) and struck out former subsec. (c) which related to computation
    of high-three average.
      Subsec. (d). Pub. L. 101-189, Sec. 651(a)(4), added subsec. (d).
    Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 101-189, Sec. 651(a)(2), (3), redesignated
    subsec. (d) as (e) and struck out former subsec. (e) which related
    to special rules for short-term disability retirees.
      Subsecs. (f), (g). Pub. L. 101-189, Sec. 651(a)(2), struck out
    subsec. (f) which related to special rule for members retiring with
    non-regular service, and subsec. (g) which defined the term "years
    of creditable service".

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-375, div. A, title VI, Sec. 641(b), Oct. 28, 2004,
    118 Stat. 1957, provided that: "Paragraph (3) of section 1407(c) of
    title 10, United States Code, as added by subsection (a), shall
    take effect - 
        "(1) for purposes of determining an annuity under subchapter II
      or III of chapter 73 of that title, with respect to deaths on
      active duty on or after September 10, 2001; and
        "(2) for purposes of determining the amount of retired pay of a
      member of a reserve component entitled to retired pay under
      section 1201 or 1202 of such title, with respect to such
      entitlement that becomes effective on or after the date of the
      enactment of this Act [Oct. 28, 2004]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 1501(c) of Pub. L. 104-106 provided that the amendment
    made by that section is effective as of Dec. 1, 1994, and as if
    included as an amendment made by the Reserve Officer Personnel
    Management Act, title XVI of Pub. L. 103-337, as originally
    enacted.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as
    otherwise provided, see section 1691 of Pub. L. 103-337, set out as
    an Effective Date note under section 10001 of this title.

-End-



-CITE-
    10 USC Sec. 1407a                                           01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1407a. Retired pay base: officers retired in general or flag
      officer grades

-STATUTE-
      (a) Rates of Basic Pay to Be Used in Determination. - In a case
    in which the determination under section 1406 or 1407 of this title
    of the retired pay base applicable to the computation of the
    retired pay of a covered general or flag officer involves a rate of
    basic pay payable to that officer for any period that was subject
    to a reduction under section 203(a)(2) of title 37 for such period,
    such retired-pay-base determination shall be made using the rate of
    basic pay for such period provided by law, rather than such rate as
    so reduced.
      (b) Covered General and Flag Officers. - In this section, the
    term "covered general or flag officer" means a member or former
    member who after September 30, 2006, is retired in a general
    officer grade or flag officer grade.

-SOURCE-
    (Added Pub. L. 109-364, div. A, title VI, Sec. 641(a), Oct. 17,
    2006, 120 Stat. 2258.)

-End-



-CITE-
    10 USC Sec. 1408                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1408. Payment of retired or retainer pay in compliance with
      court orders

-STATUTE-
      (a) Definitions. - In this section:
        (1) The term "court" means - 
          (A) any court of competent jurisdiction of any State, the
        District of Columbia, the Commonwealth of Puerto Rico, Guam,
        American Samoa, the Virgin Islands, the Northern Mariana
        Islands, and the Trust Territory of the Pacific Islands;
          (B) any court of the United States (as defined in section 451
        of title 28) having competent jurisdiction;
          (C) any court of competent jurisdiction of a foreign country
        with which the United States has an agreement requiring the
        United States to honor any court order of such country; and
          (D) any administrative or judicial tribunal of a State
        competent to enter orders for support or maintenance (including
        a State agency administering a program under a State plan
        approved under part D of title IV of the Social Security Act),
        and, for purposes of this subparagraph, the term "State"
        includes the District of Columbia, the Commonwealth of Puerto
        Rico, the Virgin Islands, Guam, and American Samoa.

        (2) The term "court order" means a final decree of divorce,
      dissolution, annulment, or legal separation issued by a court, or
      a court ordered, ratified, or approved property settlement
      incident to such a decree (including a final decree modifying the
      terms of a previously issued decree of divorce, dissolution,
      annulment, or legal separation, or a court ordered, ratified, or
      approved property settlement incident to such previously issued
      decree), or a support order, as defined in section 453(p) of the
      Social Security Act (42 U.S.C. 653(p)), which - 
          (A) is issued in accordance with the laws of the jurisdiction
        of that court;
          (B) provides for - 
            (i) payment of child support (as defined in section
          459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)));
            (ii) payment of alimony (as defined in section 459(i)(3) of
          the Social Security Act (42 U.S.C. 659(i)(3))); or
            (iii) division of property (including a division of
          community property); and

          (C) in the case of a division of property, specifically
        provides for the payment of an amount, expressed in dollars or
        as a percentage of disposable retired pay, from the disposable
        retired pay of a member to the spouse or former spouse of that
        member.

        (3) The term "final decree" means a decree from which no appeal
      may be taken or from which no appeal has been taken within the
      time allowed for taking such appeals under the laws applicable to
      such appeals, or a decree from which timely appeal has been taken
      and such appeal has been finally decided under the laws
      applicable to such appeals.
        (4) The term "disposable retired pay" means the total monthly
      retired pay to which a member is entitled less amounts which - 
          (A) are owed by that member to the United States for previous
        overpayments of retired pay and for recoupments required by law
        resulting from entitlement to retired pay;
          (B) are deducted from the retired pay of such member as a
        result of forfeitures of retired pay ordered by a court-martial
        or as a result of a waiver of retired pay required by law in
        order to receive compensation under title 5 or title 38;
          (C) in the case of a member entitled to retired pay under
        chapter 61 of this title, are equal to the amount of retired
        pay of the member under that chapter computed using the
        percentage of the member's disability on the date when the
        member was retired (or the date on which the member's name was
        placed on the temporary disability retired list); or
          (D) are deducted because of an election under chapter 73 of
        this title to provide an annuity to a spouse or former spouse
        to whom payment of a portion of such member's retired pay is
        being made pursuant to a court order under this section.

        (5) The term "member" includes a former member entitled to
      retired pay under section 12731 of this title.
        (6) The term "spouse or former spouse" means the husband or
      wife, or former husband or wife, respectively, of a member who,
      on or before the date of a court order, was married to that
      member.
        (7) The term "retired pay" includes retainer pay.

      (b) Effective Service of Process. - For the purposes of this
    section - 
        (1) service of a court order is effective if - 
          (A) an appropriate agent of the Secretary concerned
        designated for receipt of service of court orders under
        regulations prescribed pursuant to subsection (i) or, if no
        agent has been so designated, the Secretary concerned, is
        personally served or is served by facsimile or electronic
        transmission or by mail;
          (B) the court order is regular on its face;
          (C) the court order or other documents served with the court
        order identify the member concerned and include, if possible,
        the social security number of such member; and
          (D) the court order or other documents served with the court
        order certify that the rights of the member under the
        Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.)
        were observed; and

        (2) a court order is regular on its face if the order - 
          (A) is issued by a court of competent jurisdiction;
          (B) is legal in form; and
          (C) includes nothing on its face that provides reasonable
        notice that it is issued without authority of law.

      (c) Authority for Court To Treat Retired Pay as Property of the
    Member and Spouse. - (1) Subject to the limitations of this
    section, a court may treat disposable retired pay payable to a
    member for pay periods beginning after June 25, 1981, either as
    property solely of the member or as property of the member and his
    spouse in accordance with the law of the jurisdiction of such
    court. A court may not treat retired pay as property in any
    proceeding to divide or partition any amount of retired pay of a
    member as the property of the member and the member's spouse or
    former spouse if a final decree of divorce, dissolution, annulment,
    or legal separation (including a court ordered, ratified, or
    approved property settlement incident to such decree) affecting the
    member and the member's spouse or former spouse (A) was issued
    before June 25, 1981, and (B) did not treat (or reserve
    jurisdiction to treat) any amount of retired pay of the member as
    property of the member and the member's spouse or former spouse.
      (2) Notwithstanding any other provision of law, this section does
    not create any right, title, or interest which can be sold,
    assigned, transferred, or otherwise disposed of (including by
    inheritance) by a spouse or former spouse. Payments by the
    Secretary concerned under subsection (d) to a spouse or former
    spouse with respect to a division of retired pay as the property of
    a member and the member's spouse under this subsection may not be
    treated as amounts received as retired pay for service in the
    uniformed services.
      (3) This section does not authorize any court to order a member
    to apply for retirement or retire at a particular time in order to
    effectuate any payment under this section.
      (4) A court may not treat the disposable retired pay of a member
    in the manner described in paragraph (1) unless the court has
    jurisdiction over the member by reason of (A) his residence, other
    than because of military assignment, in the territorial
    jurisdiction of the court, (B) his domicile in the territorial
    jurisdiction of the court, or (C) his consent to the jurisdiction
    of the court.
      (d) Payments by Secretary Concerned to (or for Benefit of) Spouse
    or Former Spouse. - (1) After effective service on the Secretary
    concerned of a court order providing for the payment of child
    support or alimony or, with respect to a division of property,
    specifically providing for the payment of an amount of the
    disposable retired pay from a member to the spouse or a former
    spouse of the member, the Secretary shall make payments (subject to
    the limitations of this section) from the disposable retired pay of
    the member to the spouse or former spouse (or for the benefit of
    such spouse or former spouse to a State disbursement unit
    established pursuant to section 454B of the Social Security Act or
    other public payee designated by a State, in accordance with part D
    of title IV of the Social Security Act, as directed by court order,
    or as otherwise directed in accordance with such part D) in an
    amount sufficient to satisfy the amount of child support and
    alimony set forth in the court order and, with respect to a
    division of property, in the amount of disposable retired pay
    specifically provided for in the court order. In the case of a
    spouse or former spouse who, pursuant to section 408(a)(3) of the
    Social Security Act (42 U.S.C. 608(a)(4)), assigns to a State the
    rights of the spouse or former spouse to receive support, the
    Secretary concerned may make the child support payments referred to
    in the preceding sentence to that State in amounts consistent with
    that assignment of rights. In the case of a member entitled to
    receive retired pay on the date of the effective service of the
    court order, such payments shall begin not later than 90 days after
    the date of effective service. In the case of a member not entitled
    to receive retired pay on the date of the effective service of the
    court order, such payments shall begin not later than 90 days after
    the date on which the member first becomes entitled to receive
    retired pay.
      (2) If the spouse or former spouse to whom payments are to be
    made under this section was not married to the member for a period
    of 10 years or more during which the member performed at least 10
    years of service creditable in determining the member's eligibility
    for retired pay, payments may not be made under this section to the
    extent that they include an amount resulting from the treatment by
    the court under subsection (c) of disposable retired pay of the
    member as property of the member or property of the member and his
    spouse.
      (3) Payments under this section shall not be made more frequently
    than once each month, and the Secretary concerned shall not be
    required to vary normal pay and disbursement cycles for retired pay
    in order to comply with a court order.
      (4) Payments from the disposable retired pay of a member pursuant
    to this section shall terminate in accordance with the terms of the
    applicable court order, but not later than the date of the death of
    the member or the date of the death of the spouse or former spouse
    to whom payments are being made, whichever occurs first.
      (5) If a court order described in paragraph (1) provides for a
    division of property (including a division of community property)
    in addition to an amount of child support or alimony or the payment
    of an amount of disposable retired pay as the result of the court's
    treatment of such pay under subsection (c) as property of the
    member and his spouse, the Secretary concerned shall pay (subject
    to the limitations of this section) from the disposable retired pay
    of the member to the spouse or former spouse of the member, any
    part of the amount payable to the spouse or former spouse under the
    division of property upon effective service of a final court order
    of garnishment of such amount from such retired pay.
      (6) In the case of a court order for which effective service is
    made on the Secretary concerned on or after August 22, 1996, and
    which provides for payments from the disposable retired pay of a
    member to satisfy the amount of child support set forth in the
    order, the authority provided in paragraph (1) to make payments
    from the disposable retired pay of a member to satisfy the amount
    of child support set forth in a court order shall apply to payment
    of any amount of child support arrearages set forth in that order
    as well as to amounts of child support that currently become due.
      (7)(A) The Secretary concerned may not accept service of a court
    order that is an out-of-State modification, or comply with the
    provisions of such a court order, unless the court issuing that
    order has jurisdiction in the manner specified in subsection (c)(4)
    over both the member and the spouse or former spouse involved.
      (B) A court order shall be considered to be an out-of-State
    modification for purposes of this paragraph if the order - 
        (i) modifies a previous court order under this section upon
      which payments under this subsection are based; and
        (ii) is issued by a court of a State other than the State of
      the court that issued the previous court order.

      (e) Limitations. - (1) The total amount of the disposable retired
    pay of a member payable under all court orders pursuant to
    subsection (c) may not exceed 50 percent of such disposable retired
    pay.
      (2) In the event of effective service of more than one court
    order which provide for payment to a spouse and one or more former
    spouses or to more than one former spouse, the disposable retired
    pay of the member shall be used to satisfy (subject to the
    limitations of paragraph (1)) such court orders on a first-come,
    first-served basis. Such court orders shall be satisfied (subject
    to the limitations of paragraph (1)) out of that amount of
    disposable retired pay which remains after the satisfaction of all
    court orders which have been previously served.
      (3)(A) In the event of effective service of conflicting court
    orders under this section which assert to direct that different
    amounts be paid during a month to the same spouse or former spouse
    of the same member, the Secretary concerned shall - 
        (i) pay to that spouse from the member's disposable retired pay
      the least amount directed to be paid during that month by any
      such conflicting court order, but not more than the amount of
      disposable retired pay which remains available for payment of
      such court orders based on when such court orders were
      effectively served and the limitations of paragraph (1) and
      subparagraph (B) of paragraph (4);
        (ii) retain an amount of disposable retired pay that is equal
      to the lesser of - 
          (I) the difference between the largest amount required by any
        conflicting court order to be paid to the spouse or former
        spouse and the amount payable to the spouse or former spouse
        under clause (i); and
          (II) the amount of disposable retired pay which remains
        available for payment of any conflicting court order based on
        when such court order was effectively served and the
        limitations of paragraph (1) and subparagraph (B) of paragraph
        (4); and

        (iii) pay to that member the amount which is equal to the
      amount of that member's disposable retired pay (less any amount
      paid during such month pursuant to legal process served under
      section 459 of the Social Security Act (42 U.S.C. 659) and any
      amount paid during such month pursuant to court orders
      effectively served under this section, other than such
      conflicting court orders) minus - 
          (I) the amount of disposable retired pay paid under clause
        (i); and
          (II) the amount of disposable retired pay retained under
        clause (ii).

      (B) The Secretary concerned shall hold the amount retained under
    clause (ii) of subparagraph (A) until such time as that Secretary
    is provided with a court order which has been certified by the
    member and the spouse or former spouse to be valid and applicable
    to the retained amount. Upon being provided with such an order, the
    Secretary shall pay the retained amount in accordance with the
    order.
      (4)(A) In the event of effective service of a court order under
    this section and the service of legal process pursuant to section
    459 of the Social Security Act (42 U.S.C. 659), both of which
    provide for payments during a month from the same member,
    satisfaction of such court orders and legal process from the
    retired pay of the member shall be on a first-come, first-served
    basis. Such court orders and legal process shall be satisfied out
    of moneys which are subject to such orders and legal process and
    which remain available in accordance with the limitations of
    paragraph (1) and subparagraph (B) of this paragraph during such
    month after the satisfaction of all court orders or legal process
    which have been previously served.
      (B) Notwithstanding any other provision of law, the total amount
    of the disposable retired pay of a member payable by the Secretary
    concerned under all court orders pursuant to this section and all
    legal processes pursuant to section 459 of the Social Security Act
    (42 U.S.C. 659) with respect to a member may not exceed 65 percent
    of the amount of the retired pay payable to such member that is
    considered under section 462 of the Social Security Act (42 U.S.C.
    662) to be remuneration for employment that is payable by the
    United States.
      (5) A court order which itself or because of previously served
    court orders provides for the payment of an amount which exceeds
    the amount of disposable retired pay available for payment because
    of the limit set forth in paragraph (1), or which, because of
    previously served court orders or legal process previously served
    under section 459 of the Social Security Act (42 U.S.C. 659),
    provides for payment of an amount that exceeds the maximum amount
    permitted under paragraph (1) or subparagraph (B) of paragraph (4),
    shall not be considered to be irregular on its face solely for that
    reason. However, such order shall be considered to be fully
    satisfied for purposes of this section by the payment to the spouse
    or former spouse of the maximum amount of disposable retired pay
    permitted under paragraph (1) and subparagraph (B) of paragraph
    (4).
      (6) Nothing in this section shall be construed to relieve a
    member of liability for the payment of alimony, child support, or
    other payments required by a court order on the grounds that
    payments made out of disposable retired pay under this section have
    been made in the maximum amount permitted under paragraph (1) or
    subparagraph (B) of paragraph (4). Any such unsatisfied obligation
    of a member may be enforced by any means available under law other
    than the means provided under this section in any case in which the
    maximum amount permitted under paragraph (1) has been paid and
    under section 459 of the Social Security Act (42 U.S.C. 659) in any
    case in which the maximum amount permitted under subparagraph (B)
    of paragraph (4) has been paid.
      (f) Immunity of Officers and Employees of United States. - (1)
    The United States and any officer or employee of the United States
    shall not be liable with respect to any payment made from retired
    pay to any member, spouse, or former spouse pursuant to a court
    order that is regular on its face if such payment is made in
    accordance with this section and the regulations prescribed
    pursuant to subsection (i).
      (2) An officer or employee of the United States who, under
    regulations prescribed pursuant to subsection (i), has the duty to
    respond to interrogatories shall not be subject under any law to
    any disciplinary action or civil or criminal liability or penalty
    for, or because of, any disclosure of information made by him in
    carrying out any of his duties which directly or indirectly pertain
    to answering such interrogatories.
      (g) Notice to Member of Service of Court Order on Secretary
    Concerned. - A person receiving effective service of a court order
    under this section shall, as soon as possible, but not later than
    30 days after the date on which effective service is made, send a
    written notice of such court order (together with a copy of such
    order) to the member affected by the court order at his last known
    address.
      (h) Benefits for Dependents Who Are Victims of Abuse by Members
    Losing Right to Retired Pay. - (1)(A) If, in the case of a member
    or former member of the armed forces referred to in paragraph
    (2)(A), a court order provides (in the manner applicable to a
    division of property) for the payment of an amount from the
    disposable retired pay of that member or former member (as
    certified under paragraph (4)) to an eligible spouse or former
    spouse of that member or former member, the Secretary concerned,
    beginning upon effective service of such court order, shall pay
    that amount in accordance with this subsection to such spouse or
    former spouse.
      (B) If, in the case of a member or former member of the armed
    forces referred to in paragraph (2)(A), a court order provides for
    the payment as child support of an amount from the disposable
    retired pay of that member or former member (as certified under
    paragraph (4)) to an eligible dependent child of the member or
    former member, the Secretary concerned, beginning upon effective
    service of such court order, shall pay that amount in accordance
    with this subsection to such dependent child.
      (2) A spouse or former spouse, or a dependent child, of a member
    or former member of the armed forces is eligible to receive payment
    under this subsection if - 
        (A) the member or former member, while a member of the armed
      forces and after becoming eligible to be retired from the armed
      forces on the basis of years of service, has eligibility to
      receive retired pay terminated as a result of misconduct while a
      member involving abuse of a spouse or dependent child (as defined
      in regulations prescribed by the Secretary of Defense or, for the
      Coast Guard when it is not operating as a service in the Navy, by
      the Secretary of Homeland Security); and (!1)

        (B) in the case of eligibility of a spouse or former spouse
      under paragraph (1)(A), the spouse or former spouse - 
          (i) was the victim of the abuse and was married to the member
        or former member at the time of that abuse; or
          (ii) is a natural or adopted parent of a dependent child of
        the member or former member who was the victim of the abuse;
        and

        (C) in the case of eligibility of a dependent child under
      paragraph (1)(B), the other parent of the child died as a result
      of the misconduct that resulted in the termination of retired
      pay.

      (3) The amount certified by the Secretary concerned under
    paragraph (4) with respect to a member or former member of the
    armed forces referred to in paragraph (2)(A) shall be deemed to be
    the disposable retired pay of that member or former member for the
    purposes of this subsection.
      (4) Upon the request of a court or an eligible spouse or former
    spouse, or an eligible dependent child, of a member or former
    member of the armed forces referred to in paragraph (2)(A) in
    connection with a civil action for the issuance of a court order in
    the case of that member or former member, the Secretary concerned
    shall determine and certify the amount of the monthly retired pay
    that the member or former member would have been entitled to
    receive as of the date of the certification - 
        (A) if the member or former member's eligibility for retired
      pay had not been terminated as described in paragraph (2)(A); and
        (B) if, in the case of a member or former member not in receipt
      of retired pay immediately before that termination of eligibility
      for retired pay, the member or former member had retired on the
      effective date of that termination of eligibility.

      (5) A court order under this subsection may provide that whenever
    retired pay is increased under section 1401a of this title (or any
    other provision of law), the amount payable under the court order
    to the spouse or former spouse, or the dependent child, of a member
    or former member described in paragraph (2)(A) shall be increased
    at the same time by the percent by which the retired pay of the
    member or former member would have been increased if the member or
    former member were receiving retired pay.
      (6) Notwithstanding any other provision of law, a member or
    former member of the armed forces referred to in paragraph (2)(A)
    shall have no ownership interest in, or claim against, any amount
    payable under this section to a spouse or former spouse, or to a
    dependent child, of the member or former member.
      (7)(A) If a former spouse receiving payments under this
    subsection with respect to a member or former member referred to in
    paragraph (2)(A) marries again after such payments begin, the
    eligibility of the former spouse to receive further payments under
    this subsection shall terminate on the date of such marriage.
      (B) A person's eligibility to receive payments under this
    subsection that is terminated under subparagraph (A) by reason of
    remarriage shall be resumed in the event of the termination of that
    marriage by the death of that person's spouse or by annulment or
    divorce. The resumption of payments shall begin as of the first day
    of the month in which that marriage is so terminated. The monthly
    amount of the payments shall be the amount that would have been
    paid if the continuity of the payments had not been interrupted by
    the marriage.
      (8) Payments in accordance with this subsection shall be made out
    of funds in the Department of Defense Military Retirement Fund
    established by section 1461 of this title or, in the case of the
    Coast Guard, out of funds appropriated to the Department of
    Homeland Security for payment of retired pay for the Coast Guard.
      (9)(A) A spouse or former spouse of a member or former member of
    the armed forces referred to in paragraph (2)(A), while receiving
    payments in accordance with this subsection, shall be entitled to
    receive medical and dental care, to use commissary and exchange
    stores, and to receive any other benefit that a spouse or a former
    spouse of a retired member of the armed forces is entitled to
    receive on the basis of being a spouse or former spouse, as the
    case may be, of a retired member of the armed forces in the same
    manner as if the member or former member referred to in paragraph
    (2)(A) was entitled to retired pay.
      (B) A dependent child of a member or former member referred to in
    paragraph (2)(A) who was a member of the household of the member or
    former member at the time of the misconduct described in paragraph
    (2)(A) shall be entitled to receive medical and dental care, to use
    commissary and exchange stores, and to have other benefits provided
    to dependents of retired members of the armed forces in the same
    manner as if the member or former member referred to in paragraph
    (2)(A) was entitled to retired pay.
      (C) If a spouse or former spouse or a dependent child eligible or
    entitled to receive a particular benefit under this paragraph is
    eligible or entitled to receive that benefit under another
    provision of law, the eligibility or entitlement of that spouse or
    former spouse or dependent child to such benefit shall be
    determined under such other provision of law instead of this
    paragraph.
      (10)(A) For purposes of this subsection, in the case of a member
    of the armed forces who has been sentenced by a court-martial to
    receive a punishment that will terminate the eligibility of that
    member to receive retired pay if executed, the eligibility of that
    member to receive retired pay may, as determined by the Secretary
    concerned, be considered terminated effective upon the approval of
    that sentence by the person acting under section 860(c) of this
    title (article 60(c) of the Uniform Code of Military Justice).
      (B) If each form of the punishment that would result in the
    termination of eligibility to receive retired pay is later
    remitted, set aside, or mitigated to a punishment that does not
    result in the termination of that eligibility, a payment of
    benefits to the eligible recipient under this subsection that is
    based on the punishment so vacated, set aside, or mitigated shall
    cease. The cessation of payments shall be effective as of the first
    day of the first month following the month in which the Secretary
    concerned notifies the recipient of such benefits in writing that
    payment of the benefits will cease. The recipient may not be
    required to repay the benefits received before that effective date
    (except to the extent necessary to recoup any amount that was
    erroneous when paid).
      (11) In this subsection, the term "dependent child", with respect
    to a member or former member of the armed forces referred to in
    paragraph (2)(A), means an unmarried legitimate child, including an
    adopted child or a stepchild of the member or former member, who - 
        (A) is under 18 years of age;
        (B) is incapable of self-support because of a mental or
      physical incapacity that existed before becoming 18 years of age
      and is dependent on the member or former member for over one-half
      of the child's support; or
        (C) if enrolled in a full-time course of study in an
      institution of higher education recognized by the Secretary of
      Defense for the purposes of this subparagraph, is under 23 years
      of age and is dependent on the member or former member for over
      one-half of the child's support.

      (i) Certification Date. - It is not necessary that the date of a
    certification of the authenticity or completeness of a copy of a
    court order for child support received by the Secretary concerned
    for the purposes of this section be recent in relation to the date
    of receipt by the Secretary.
      (j) Regulations. - The Secretaries concerned shall prescribe
    uniform regulations for the administration of this section.
      (k) Relationship to Other Laws. - In any case involving an order
    providing for payment of child support (as defined in section
    459(i)(2) of the Social Security Act) by a member who has never
    been married to the other parent of the child, the provisions of
    this section shall not apply, and the case shall be subject to the
    provisions of section 459 of such Act.

-SOURCE-
    (Added Pub. L. 97-252, title X, Sec. 1002(a), Sept. 8, 1982, 96
    Stat. 730; amended Pub. L. 98-525, title VI, Sec. 643(a)-(d), Oct.
    19, 1984, 98 Stat. 2547; Pub. L. 99-661, div. A, title VI, Sec.
    644(a), Nov. 14, 1986, 100 Stat. 3887; Pub. L. 100-26, Secs. 3(3),
    7(h)(1), Apr. 21, 1987, 101 Stat. 273, 282; Pub. L. 101-189, div.
    A, title VI, Sec. 653(a)(5), title XVI, Sec. 1622(e)(6), Nov. 29,
    1989, 103 Stat. 1462, 1605; Pub. L. 101-510, div. A, title V, Sec.
    555(a)-(d), (f), (g), Nov. 5, 1990, 104 Stat. 1569, 1570; Pub. L.
    102-190, div. A, title X, Sec. 1061(a)(7), Dec. 5, 1991, 105 Stat.
    1472; Pub. L. 102-484, div. A, title VI, Sec. 653(a), Oct. 23,
    1992, 106 Stat. 2426; Pub. L. 103-160, div. A, title V, Sec.
    555(a), (b), title XI, Sec. 1182(a)(2), Nov. 30, 1993, 107 Stat.
    1666, 1771; Pub. L. 104-106, div. A, title XV, Sec. 1501(c)(16),
    Feb. 10, 1996, 110 Stat. 499; Pub. L. 104-193, title III, Secs.
    362(c), 363(c)(1)-(3), Aug. 22, 1996, 110 Stat. 2246, 2249; Pub. L.
    104-201, div. A, title VI, Sec. 636, Sept. 23, 1996, 110 Stat.
    2579; Pub. L. 105-85, div. A, title X, Sec. 1073(a)(24), (25), Nov.
    18, 1997, 111 Stat. 1901; Pub. L. 107-107, div. A, title X, Sec.
    1048(c)(9), Dec. 28, 2001, 115 Stat. 1226; Pub. L. 107-296, title
    XVII, Sec. 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314; Pub. L. 108-
    189, Sec. 2(c), Dec. 19, 2003, 117 Stat. 2866; Pub. L. 109-163,
    div. A, title VI, Sec. 665(a), Jan. 6, 2006, 119 Stat. 3317.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsecs. (a)(1)(D) and
    (d)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.
    Part D of title IV of the Act is classified generally to part D
    (Sec. 651 et seq.) of subchapter IV of chapter 7 of Title 42, The
    Public Health and Welfare. Section 454B of the Act is classified to
    section 654b of Title 42. For complete classification of this Act
    to the Code, see section 1305 of Title 42 and Tables.
      The Servicemembers Civil Relief Act, referred to in subsec.
    (b)(1)(D), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, as
    amended, which is classified to section 501 et seq. of Title 50,
    Appendix, War and National Defense. For complete classification of
    this Act to the Code, see section 501 of Title 50, Appendix and
    Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (h)(1). Pub. L. 109-163, Sec. 665(a)(1),
    designated existing provisions as subpar. (A) and added subpar.
    (B).
      Subsec. (h)(2). Pub. L. 109-163, Sec. 665(a)(2)(A), inserted ",
    or a dependent child," after "former spouse" in introductory
    provisions.
      Subsec. (h)(2)(B). Pub. L. 109-163, Sec. 665(a)(2)(B)(i),
    inserted "in the case of eligibility of a spouse or former spouse
    under paragraph (1)(A)," after "(B)".
      Subsec. (h)(2)(C). Pub. L. 109-163, Sec. 665(a)(2)(B)(ii), (C),
    added subpar. (C).
      Subsec. (h)(4). Pub. L. 109-163, Sec. 665(a)(3), inserted ", or
    an eligible dependent child," after "former spouse" in introductory
    provisions.
      Subsec. (h)(5). Pub. L. 109-163, Sec. 665(a)(4), inserted ", or
    the dependent child," after "former spouse".
      Subsec. (h)(6). Pub. L. 109-163, Sec. 665(a)(5), inserted ", or
    to a dependent child," after "former spouse".
      2003 - Subsec. (b)(1)(D). Pub. L. 108-189 substituted
    "Servicemembers Civil Relief Act" for "Soldiers' and Sailors' Civil
    Relief Act of 1940".
      2002 - Subsec. (h)(2)(A), (8). Pub. L. 107-296 substituted "of
    Homeland Security" for "of Transportation".
      2001 - Subsec. (d)(6). Pub. L. 107-107 substituted "August 22,
    1996," for "the date of the enactment of this paragraph".
      1997 - Subsec. (d). Pub. L. 105-85, Sec. 1073(a)(24)(A),
    substituted "to" for "To" in heading.
      Subsec. (d)(6). Pub. L. 105-85, Sec. 1073(a)(24)(B), redesignated
    par. (6), relating to court order which is out-of-State
    modification, as (7).
      Subsec. (d)(7). Pub. L. 105-85, Sec. 1073(a)(24)(B), redesignated
    par. (6), relating to court order which is out-of-State
    modification, as (7).
      Subsec. (d)(7)(A). Pub. L. 105-85, Sec. 1073(a)(24)(C),
    substituted "out-of-State" for "out-of State".
      Subsec. (g). Pub. L. 105-85, Sec. 1073(a)(25), in heading,
    substituted "to" for "To" and "on" for "On".
      1996 - Subsec. (a)(1)(D). Pub. L. 104-193, Sec. 362(c)(1), added
    subpar. (D).
      Subsec. (a)(2). Pub. L. 104-193, Sec. 362(c)(2)(A), inserted "or
    a support order, as defined in section 453(p) of the Social 
    Security  Act  (42  U.S.C.  653(p)),"  before "which - ".
      Subsec. (a)(2)(B)(i). Pub. L. 104-193, Sec. 362(c)(2)(B),
    substituted "(as defined in section 459(i)(2) of the Social
    Security Act (42 U.S.C. 659(i)(2)))" for "(as defined in section
    462(b) of the Social Security Act (42 U.S.C. 662(b)))".
      Subsec. (a)(2)(B)(ii). Pub. L. 104-193, Sec. 362(c)(2)(C),
    substituted "(as defined in section 459(i)(3) of the Social
    Security Act (42 U.S.C. 659(i)(3)))" for "(as defined in section
    462(c) of the Social Security Act (42 U.S.C. 662(c)))".
      Subsec. (a)(5). Pub. L. 104-106 substituted "section 12731" for
    "section 1331".
      Subsec. (b)(1)(A). Pub. L. 104-201, Sec. 636(a), substituted
    "facsimile or electronic transmission or by mail" for "certified or
    registered mail, return receipt requested".
      Subsec. (d). Pub. L. 104-193, Sec. 362(c)(3)(A), inserted "(or
    for benefit of)" before "Spouse or" in heading.
      Subsec. (d)(1). Pub. L. 104-193, Sec. 363(c)(2), inserted after
    first sentence "In the case of a spouse or former spouse who,
    pursuant to section 408(a)(3) of the Social Security Act (42 U.S.C.
    608(a)(4)), assigns to a State the rights of the spouse or former
    spouse to receive support, the Secretary concerned may make the
    child support payments referred to in the preceding sentence to
    that State in amounts consistent with that assignment of rights."
      Pub. L. 104-193, Sec. 362(c)(3)(B), in first sentence, inserted
    "(or for the benefit of such spouse or former spouse to a State
    disbursement unit established pursuant to section 454B of the
    Social Security Act or other public payee designated by a State, in
    accordance with part D of title IV of the Social Security Act, as
    directed by court order, or as otherwise directed in accordance
    with such part D)" before "in an amount sufficient".
      Subsec. (d)(6). Pub. L. 104-201, Sec. 636(b), added par. (6)
    relating to court order which is out-of-State modification.
      Pub. L. 104-193, Sec. 363(c)(3), added par. (6) relating to use
    of disposable retired pay of member to satisfy amount of child
    support set forth in court order.
      Subsec. (i). Pub. L. 104-193, Sec. 363(c)(1), added subsec. (i).
    Former subsec. (i) redesignated (j).
      Subsec. (j). Pub. L. 104-193, Sec. 363(c)(1), redesignated
    subsec. (j) as (k).
      Pub. L. 104-193, Sec. 362(c)(4), added subsec. (j).
      Subsec. (k). Pub. L. 104-193, Sec. 363(c)(1), redesignated
    subsec. (j) as (k).
      1993 - Subsecs. (b)(1)(A), (f)(1), (2). Pub. L. 103-160, Sec.
    1182(a)(2)(A), substituted "subsection (i)" for "subsection (h)".
      Subsec. (h)(2)(A). Pub. L. 103-160, Sec. 555(b)(1), inserted "or,
    for the Coast Guard when it is not operating as a service in the
    Navy, by the Secretary of Transportation" after "Secretary of
    Defense".
      Subsec. (h)(4)(B). Pub. L. 103-160, Sec. 1182(a)(2)(B), inserted
    "of" after "of that termination".
      Subsec. (h)(8). Pub. L. 103-160, Sec. 555(b)(2), inserted before
    period at end "or, in the case of the Coast Guard, out of funds
    appropriated to the Department of Transportation for payment of
    retired pay for the Coast Guard".
      Subsec. (h)(10), (11). Pub. L. 103-160, Sec. 555(a), added par.
    (10) and redesignated former par. (10) as (11).
      1992 - Subsecs. (h), (i). Pub. L. 102-484 added subsec. (h) and
    redesignated former subsec. (h) as (i).
      1991 - Pub. L. 102-190 inserted "or retainer" after "retired" in
    section catchline.
      1990 - Pub. L. 101-510, Sec. 555(f)(2), substituted "retired pay"
    for "retired or retainer pay" in section catchline.
      Subsec. (a). Pub. L. 101-510, Sec. 555(g)(1), inserted heading.
      Subsec. (a)(2)(C). Pub. L. 101-510, Sec. 555(f)(2), substituted
    "retired pay" for "retired or retainer pay" wherever appearing.
      Subsec. (a)(4). Pub. L. 101-510, Sec. 555(f)(2), substituted
    "retired pay" for "retired or retainer pay" wherever appearing in
    introductory provisions and in subpar. (D).
      Subsec. (a)(4)(A). Pub. L. 101-510, Sec. 555(b)(1), inserted
    before semicolon at end "for previous overpayments of retired pay
    and for recoupments required by law resulting from entitlement to
    retired pay".
      Subsec. (a)(4)(B). Pub. L. 101-510, Sec. 555(b)(2), added subpar.
    (B) and struck out former subpar. (B) which read as follows: "are
    required by law to be and are deducted from the retired or retainer
    pay of such member, including fines and forfeitures ordered by
    courts-martial, Federal employment taxes, and amounts waived in
    order to receive compensation under title 5 or title 38;".
      Subsec. (a)(4)(C) to (F). Pub. L. 101-510, Sec. 555(b)(3), (4),
    redesignated subpars. (E) and (F) as (C) and (D), respectively, and
    struck out former subpars. (C) and (D) which read as follows:
      "(C) are properly withheld for Federal, State, or local income
    tax purposes, if the withholding of such amounts is authorized or
    required by law and to the extent such amounts withheld are not
    greater than would be authorized if such member claimed all
    dependents to which he was entitled;
      "(D) are withheld under section 3402(i) of the Internal Revenue
    Code of 1986 if such member presents evidence of a tax obligation
    which supports such withholding;".
      Subsec. (a)(7). Pub. L. 101-510, Sec. 555(f)(1), added par. (7).
      Subsec. (b). Pub. L. 101-510, Sec. 555(g)(2), inserted heading.
      Subsec. (c). Pub. L. 101-510, Sec. 555(g)(3), inserted heading.
      Subsec. (c)(1). Pub. L. 101-510, Sec. 555(f)(2), substituted
    "retired pay" for "retired or retainer pay".
      Pub. L. 101-510, Sec. 555(a), inserted at end "A court may not
    treat retired pay as property in any proceeding to divide or
    partition any amount of retired pay of a member as the property of
    the member and the member's spouse or former spouse if a final
    decree of divorce, dissolution, annulment, or legal separation
    (including a court ordered, ratified, or approved property
    settlement incident to such decree) affecting the member and the
    member's spouse or former spouse (A) was issued before June 25,
    1981, and (B) did not treat (or reserve jurisdiction to treat) any
    amount of retired pay of the member as property of the member and
    the member's spouse or former spouse."
      Subsec. (c)(2). Pub. L. 101-510, Sec. 555(c), inserted at end
    "Payments by the Secretary concerned under subsection (d) to a
    spouse or former spouse with respect to a division of retired pay
    as the property of a member and the member's spouse under this
    subsection may not be treated as amounts received as retired pay
    for service in the uniformed services."
      Subsec. (c)(4). Pub. L. 101-510, Sec. 555(f)(2), substituted
    "retired pay" for "retired or retainer pay".
      Subsec. (d). Pub. L. 101-510, Sec. 555(g)(4), inserted heading.
      Pub. L. 101-510, Sec. 555(f)(2), substituted "retired pay" for
    "retired or retainer pay" wherever appearing.
      Subsec. (e). Pub. L. 101-510, Sec. 555(g)(5), inserted heading.
      Pub. L. 101-510, Sec. 555(f)(2), substituted "retired pay" for
    "retired or retainer pay" wherever appearing.
      Subsec. (e)(1). Pub. L. 101-510, Sec. 555(d)(1), substituted
    "payable under all court orders pursuant to subsection (c)" for
    "payable under subsection (d)".
      Subsec. (e)(4)(B). Pub. L. 101-510, Sec. 555(d)(2), substituted
    "the amount of the retired pay payable to such member that is
    considered under section 462 of the Social Security Act (42 U.S.C.
    662) to be remuneration for employment that is payable by the
    United States" for "the disposable retired or retainer pay payable
    to such member".
      Subsec. (f). Pub. L. 101-510, Sec. 555(g)(6), inserted heading.
      Subsec. (f)(1). Pub. L. 101-510, Sec. 555(f)(2), substituted
    "retired pay" for "retired or retainer pay".
      Subsec. (g). Pub. L. 101-510, Sec. 555(g)(7), inserted heading.
      Subsec. (h). Pub. L. 101-510, Sec. 555(g)(8), inserted heading.
      1989 - Subsec. (a)(1), (2). Pub. L. 101-189, Sec. 1622(e)(6),
    substituted "The term 'court" for " 'Court" in introductory
    provisions.
      Subsec. (a)(3). Pub. L. 101-189, Sec. 1622(e)(6), substituted
    "The term 'final" for " 'Final".
      Subsec. (a)(4). Pub. L. 101-189, Sec. 1622(e)(6), substituted
    "The term 'disposable" for " 'Disposable" in introductory
    provisions.
      Subsec. (a)(4)(D). Pub. L. 101-189, Sec. 653(a)(5)(A), struck out
    "(26 U.S.C. 3402(i))" after "Code of 1986".
      Subsec. (a)(5). Pub. L. 101-189, Secs. 653(a)(5)(B), 1622(e)(6),
    substituted "The term 'member" for " 'Member" and inserted
    "entitled to retired pay under section 1331 of this title" after "a
    former member".
      Subsec. (a)(6). Pub. L. 101-189, Sec. 1622(e)(6), substituted
    "The term 'spouse" for " 'Spouse".
      1987 - Subsec. (a)(4). Pub. L. 100-26, Sec. 3(3), made technical
    amendment to directory language of Pub. L. 99-661, Sec. 644(a). See
    1986 Amendment note below.
      Subsec. (a)(4)(D). Pub. L. 100-26, Sec. 7(h)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954".
      1986 - Subsec. (a)(4). Pub. L. 99-661, Sec. 644(a), as amended by
    Pub. L. 100-26, Sec. 3(3), struck out "(other than the retired pay
    of a member retired for disability under chapter 61 of this title)"
    before "less amounts" in introductory text, added subpar. (E), and
    struck out former subpar. (E) which read as follows: "are deducted
    as Government life insurance premiums (not including amounts
    deducted for supplemental coverage); or".
      1984 - Subsec. (a)(2)(C). Pub. L. 98-525, Sec. 643(a), inserted
    "in the case of a division of property,".
      Subsec. (b)(1)(C). Pub. L. 98-525, Sec. 643(b), inserted ", if
    possible,".
      Subsec. (d)(1). Pub. L. 98-525, Sec. 643(c)(1), substituted
    "After effective service on the Secretary concerned of a court
    order providing for the payment of child support or alimony or,
    with respect to a division of property, specifically providing for
    the payment of an amount of the disposable retired or retainer pay
    from a member to the spouse or a former spouse of the member, the
    Secretary shall make payments (subject to the limitations of this
    section) from the disposable retired or retainer pay of the member
    to the spouse or former spouse in an amount sufficient to satisfy
    the amount of child support and alimony set forth in the court
    order and, with respect to a division of property, in the amount of
    disposable retired or retainer pay specifically provided for in the
    court order" for "After effective service on the Secretary
    concerned of a court order with respect to the payment of a portion
    of the retired or retainer pay of a member to the spouse or a
    former spouse of the member, the Secretary shall, subject to the
    limitations of this section, make payments to the spouse or former
    spouse in the amount of the disposable retired or retainer pay of
    the member specifically provided for in the court order".
      Subsec. (d)(5). Pub. L. 98-525, Sec. 643(c)(2), substituted
    "child support or alimony or the payment of an amount of disposable
    retired or retainer pay as the result of the court's treatment of
    such pay under subsection (c) as property of the member and his
    spouse, the Secretary concerned shall pay (subject to the
    limitations of this section) from the disposable retired or
    retainer pay of the member to the spouse or former spouse of the
    member, any part" for "disposable retired or retainer pay, the
    Secretary concerned shall, subject to the limitations of this
    section, pay to the spouse or former spouse of the member, from the
    disposable retired or retainer pay of the member, any part".
      Subsec. (e)(2). Pub. L. 98-525, Sec. 643(d)(1), substituted ",
    the disposable retired or retainer pay of the member" for "from the
    disposable retired or retainer pay of a member, such pay" before
    "shall be used to satisfy".
      Subsec. (e)(3)(A). Pub. L. 98-525, Sec. 643(d)(2)(A), struck out
    "from the disposable retired or retainer pay" before "of the same
    member".
      Subsec. (e)(3)(A)(i). Pub. L. 98-525, Sec. 643(d)(2)(B),
    substituted "from the member's disposable retired or retainer pay
    the least amount" for "the least amount of disposable retired or
    retainer pay" before "directed to be paid".
      Subsec. (e)(2)(A)(ii)(I). Pub. L. 98-525, Sec. 643(d)(2)(C),
    struck out "of retired or retainer pay" before "required by any
    conflicting".
      Subsec. (e)(4)(A). Pub. L. 98-525, Sec. 643(d)(3), struck out
    "the retired or retainer pay of" before "the same member" and
    substituted "satisfaction of such court orders and legal process
    from the retired or retainer pay of the members shall be" for "such
    court orders and legal process shall be satisfied".
      Subsec. (e)(5). Pub. L. 98-525, Sec. 643(d)(4), struck out "of
    disposable retired or retainer pay" after "payment of an amount" in
    two places and substituted "disposable retired or retainer pay" for
    "such pay" before "available for payment".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-163, div. A, title VI, Sec. 665(b), Jan. 6, 2006, 119
    Stat. 3318, provided that: "A court order authorized by the
    amendments made by this section [amending this section] may not
    provide for a payment attributable to any period before the date of
    the enactment of this Act [Jan. 6, 2006], or the date of the court
    order, whichever is later."

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-296 effective on the date of transfer of
    the Coast Guard to the Department of Homeland Security, see section
    1704(g) of Pub. L. 107-296, set out as a note under section 101 of
    this title.

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by section 362(c) of Pub. L. 104-193 effective six
    months after Aug. 22, 1996, see section 362(d) of Pub. L. 104-193,
    set out as a note under section 659 of Title 42, The Public Health
    and Welfare.
      For effective date of amendment by section 363(c)(1)-(3) of Pub.
    L. 104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a
    note under section 654 of Title 42.
      Section 1501(c) of Pub. L. 104-106 provided that the amendment
    made by that section is effective as of Dec. 1, 1994, and as if
    included as an amendment made by the Reserve Officer Personnel
    Management Act, title XVI of Pub. L. 103-337, as originally
    enacted.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Section 555(c) of Pub. L. 103-160 provided that: "The amendments
    made by this section [amending this section] shall take effect as
    of October 23, 1992, and shall apply as if the provisions of the
    paragraph (10) of section 1408(h) of title 10, United States Code,
    added by such subsection were included in the amendment made by
    section 653(a)(2) of Public Law 102-484 (106 Stat. 2426) [amending
    this section]."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 555(e) of Pub. L. 101-510, as amended by Pub. L. 102-190,
    div. A, title X, Sec. 1062(a)(1), Dec. 5, 1991, 105 Stat. 1475,
    provided that:
      "(1) The amendment made by subsection (a) [amending this section]
    shall apply with respect to judgments issued before, on, or after
    the date of the enactment of this Act [Nov. 5, 1990]. In the case
    of a judgment issued before the date of the enactment of this Act,
    such amendment shall not relieve any obligation, otherwise valid,
    to make a payment that is due to be made before the end of the two-
    year period beginning on the date of the enactment of this Act.
      "(2) The amendments made by subsections (b), (c), and (d)
    [amending this section] apply with only respect to divorces,
    dissolutions of marriage, annulments, and legal separations that
    become effective after the end of the 90-day period beginning on
    the date of the enactment of this Act."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by section 3(3) of Pub. L. 100-26 applicable as if
    included in Pub. L. 99-661 when enacted on Nov. 14, 1986, see
    section 12(a) of Pub. L. 100-26, set out as a note under section
    776 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Section 644(b) of Pub. L. 99-661 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply with
    respect to court orders issued after the date of the enactment of
    this Act [Nov. 14, 1986]."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Section 643(e) of Pub. L. 98-525 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to court orders for which effective service (as described
    in section 1408(b)(1) of title 10, United States Code, as amended
    by subsection (b) of this section) is made on or after the date of
    the enactment of this Act [Oct. 19, 1984]."

                   EFFECTIVE DATE; TRANSITION PROVISIONS               
      Section 1006 of title X of Pub. L. 97-252, as amended by Pub. L.
    98-94, title IX, Sec. 941(c)(4), Sept. 24, 1983, 97 Stat. 654; Pub.
    L. 98-525, title VI, Sec. 645(b), Oct. 19, 1984, 98 Stat. 2549,
    provided that:
      "(a) The amendments made by this title [amending this section and
    sections 1072, 1076, 1086, 1447, 1448, and 1450 of this title and
    enacting provisions set out as notes under this section and section
    1401 of this title] shall take effect on the first day of the first
    month [February 1983] which begins more than one hundred and twenty
    days after the date of the enactment of this title [Sept. 8, 1982].
      "(b) Subsection (d) of section 1408 of title 10, United States
    Code, as added by section 1002(a), shall apply only with respect to
    payments of retired or retainer pay for periods beginning on or
    after the effective date of this title [Feb. 1, 1983, provided in
    subsec. (a)], but without regard to the date of any court order.
    However, in the case of a court order that became final before June
    26, 1981, payments under such subsection may only be made in
    accordance with such order as in effect on such date and without
    regard to any subsequent modifications.
      "(c) The amendments made by section 1003 of this title [amending
    sections 1447, 1448, and 1450 of this title] shall apply to persons
    who become eligible to participate in the Survivor Benefit Plan
    provided for in subchapter II of chapter 73 of title 10, United
    States Code [section 1447 et seq. of this title], before, on, or
    after the effective date of such amendments.
      "(d) The amendments made by section 1004 of this title [amending
    sections 1072, 1076, and 1086 of this title] and the provisions of
    section 1005 of this title [formerly set out as a note under this
    section] shall apply in the case of any former spouse of a member
    or former member of the uniformed services whether the final decree
    of divorce, dissolution, or annulment of the marriage of the former
    spouse and such member or former member is dated before, on, or
    after February 1, 1983.
      "(e) For the purposes of this section - 
        "(1) the term 'court order' has the same meaning as provided in
      section 1408(a)(2) of title 10, United States Code (as added by
      section 1002 of this title);
        "(2) the term 'former spouse' has the same meaning as provided
      in section 1408(a)(6) of such title (as added by section 1002 of
      this title); and
        "(3) the term 'uniformed services' has the same meaning as
      provided in section 1072 of title 10, United States Code."


-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.


-MISC2-
              REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS          
      Pub. L. 105-85, div. A, title VI, Sec. 643, Nov. 18, 1997, 111
    Stat. 1799, directed the Secretary of Defense to carry out a
    comprehensive review of the protections, benefits, and treatment
    afforded under Federal law to members and former members of the
    uniformed services and former spouses of such persons and to
    employees and former employees of the Government and former spouses
    of such persons and to submit to committees of Congress a report on
    the results of such review not later than Sept. 30, 1999.

      PAYROLL DEDUCTIONS FOR ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS  
      Section 363(c)(4) of Pub. L. 104-193 provided that: "The
    Secretary of Defense shall begin payroll deductions within 30 days
    after receiving notice of withholding, or for the first pay period
    that begins after such 30-day period."

              ACCRUAL OF PAYMENTS; PROSPECTIVE APPLICABILITY          
      Section 653(c) of Pub. L. 102-484 provided that: "No payments
    under subsection (h) of section 1408 of title 10, United States
    Code (as added by subsection (a)), shall accrue for periods before
    the date of the enactment of this Act [Oct. 23, 1992]."

     STUDY CONCERNING BENEFITS FOR DEPENDENTS WHO ARE VICTIMS OF ABUSE 
      Pub L. 102-484, div. A, title VI, Sec. 653(e), Oct. 23, 1992, 106
    Stat. 2429, directed the Secretary of Defense to conduct a study in
    order to estimate the number of persons who would become eligible
    to receive payments under subsec. (h) of this section during each
    of fiscal years 1993 through 2000 and the number of members of the
    Armed Forces who would be approved in each of fiscal years 1993
    through 2000 for separation from the Armed Forces as a result of
    having abused a spouse or dependent child, and to submit to
    Congress a report on the results of such study not later than one
    year after Oct. 23, 1992.

                    COMMISSARY AND EXCHANGE PRIVILEGES                
      Section 1005 of Pub. L. 97-252, which directed Secretary of
    Defense to prescribe regulations to provide that an unremarried
    former spouse described in 10 U.S.C. 1072(2)(F)(i) is entitled to
    commissary and post exchange privileges to the same extent and on
    the same basis as the surviving spouse of a retired member of the
    uniformed services, was repealed and restated in section 1062 of
    this title by Pub. L. 100-370, Sec. 1(c)(1), (5).

-FOOTNOTE-               

    (!1) So in original. The word "and" probably should not appear.


-End-



-CITE-
    10 USC Sec. 1409                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1409. Retired pay multiplier

-STATUTE-
      (a) Retired Pay Multiplier for Regular-Service Nondisability
    Retirement. - In computing - 
        (1) the retired pay of a member of a uniformed service who is
      entitled to that pay under any provision of law other than - 
          (A) chapter 61 of this title (relating to retirement or
        separation for physical disability); or
          (B) chapter 1223 of this title (relating to retirement for
        non-regular service); or

        (2) the retainer pay of a member who is transferred to the
      Fleet Reserve or the Fleet Marine Corps Reserve under section
      6330 of this title,

    the retired pay multiplier (or retainer pay multiplier) is the
    percentage determined under subsection (b).
      (b) Percentage. - 
        (1) General rule. - Subject to paragraphs (2) and (3), the
      percentage to be used under subsection (a) is the product (stated
      as a percentage) of - 
          (A) 2 1/2 , and
          (B) the member's years of creditable service (as defined in
        subsection (c)).

        (2) Reduction applicable to certain new-retirement members with
      less than 30 years of service. - In the case of a member who
      first became a member of a uniformed service after July 31, 1986,
      has elected to receive a bonus under section 322 of title 37, has
      less than 30 years of creditable service, and is under the age of
      62 at the time of retirement, the percentage determined under
      paragraph (1) shall be reduced by - 
          (A) 1 percentage point for each full year that the member's
        years of creditable service are less than 30; and
          (B)  1/12  of 1 percentage point for each month by which the
        member's years of creditable service (after counting all full
        years of such service) are less than a full year.

        (3) 30 years of service. - 
          (A) Retirement before january 1, 2007. - In the case of a
        member who retires before January 1, 2007, with more than 30
        years of creditable service, the percentage to be used under
        subsection (a) is 75 percent.
          (B) Retirement after december 31, 2006. - In the case of a
        member who retires after December 31, 2006, with more than 30
        years of creditable service, the percentage to be used under
        subsection (a) is the sum of - 
            (i) 75 percent; and
            (ii) the product (stated as a percentage) of - 
              (I) 2 1/2 ; and
              (II) the member's years of creditable service (as defined
            in subsection (c)) in excess of 30 years of creditable
            service, under conditions authorized for purposes of this
            subparagraph during a period designated by the Secretary of
            Defense for purposes of this subparagraph.

      (c) Years of Creditable Service Defined. - In this section, the
    term "years of creditable service" means the number of years of
    service creditable to a member in computing the member's retired or
    retainer pay (including  1/12  of a year for each full month of
    service that is in addition to the number of full years of service
    of the member).

-SOURCE-
    (Added Pub. L. 99-348, title I, Sec. 101, July 1, 1986, 100 Stat.
    683; amended Pub. L. 101-189, div. A, title VI, Sec. 651(b)(3),
    Nov. 29, 1989, 103 Stat. 1460; Pub. L. 103-337, div. A, title XVI,
    Sec. 1662(j)(6), Oct. 5, 1994, 108 Stat. 3005; Pub. L. 106-65, div.
    A, title VI, Secs. 641(a), 643(b)(2), Oct. 5, 1999, 113 Stat. 662,
    664; Pub. L. 109-364, div. A, title VI, Sec. 642(a), Oct. 17, 2006,
    120 Stat. 2259.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(3). Pub. L. 109-364 amended heading and text
    of par. (3) generally. Prior to amendment, text read as follows:
    "In the case of a member with more than 30 years of creditable
    service, the percentage to be used under subsection (a) is 75
    percent."
      1999 - Subsec. (b)(2). Pub. L. 106-65 inserted "certain" after
    "Reduction applicable to" in heading and "has elected to receive a
    bonus under section 322 of title 37," after "July 31, 1986," in
    introductory provisions.
      1994 - Subsec. (a)(1)(B). Pub. L. 103-337 substituted "chapter
    1223" for "chapter 67".
      1989 - Subsec. (a)(1). Pub. L. 101-189 substituted "who is
    entitled to that pay" for "who is retired" in introductory
    provisions.

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Amendment by Pub. L. 106-65 effective Oct. 1, 1999, see section
    644 of Pub. L. 106-65, set out as a note under section 1401a of
    this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as
    otherwise provided, see section 1691 of Pub. L. 103-337, set out as
    an Effective Date note under section 10001 of this title.

-End-



-CITE-
    10 USC Sec. 1410                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1410. Restoral of full retirement amount at age 62 for certain
      members entering on or after August 1, 1986

-STATUTE-
      In the case of a member or former member who first became a
    member of a uniformed service on or after August 1, 1986, who has
    elected to receive a bonus under section 322 of title 37, and who
    becomes entitled to retired pay before the age of 62, the retired
    pay of such member or former member shall be recomputed, effective
    on the first day of the first month beginning after the member or
    former member attains 62 years of age, so as to be the amount equal
    to the amount of retired pay to which the member or former member
    would be entitled on that date if - 
        (1) increases in the retired pay of the member or former member
      under section 1401a(b) of this title had been computed as
      provided in paragraph (2) of that section (rather than under
      paragraph (3) of that section); and
        (2) in the case of a member whose retired pay was subject to
      section 1409(b)(2) of this title, no reduction in the member's
      retired pay had been made under that section.

-SOURCE-
    (Added Pub. L. 99-348, title I, Sec. 103, July 1, 1986, 100 Stat.
    685; amended Pub. L. 100-224, Sec. 2, Dec. 30, 1987, 101 Stat.
    1536; Pub. L. 101-189, div. A, title VI, Sec. 651(b)(4), Nov. 29,
    1989, 103 Stat. 1460; Pub. L. 106-65, div. A, title VI, Secs.
    641(c), 643(b)(3)(A), Oct. 5, 1999, 113 Stat. 662, 664.)


-MISC1-
                                AMENDMENTS                            
      1999 - Pub. L. 106-65 inserted "certain" before "members" in
    section catchline and "who has elected to receive a bonus under
    section 322 of title 37," after "August 1, 1986," in introductory
    provisions.
      1989 - Pub. L. 101-189, Sec. 651(b)(4), in introductory
    provisions, inserted "or former member" after "In the case of a
    member", "the retired pay of such member", "after the member", and
    "to which the member", and in par. (1), substituted "retired pay of
    the member or former member" for "member's retired pay".
      1987 - Pub. L. 100-224 struck out heading "(a) General rule",
    substituted provisions that the amount equal to the amount of
    retired pay to which the member would be entitled on that date if
    (1) increases in the member's retired pay under section 1401a(b) of
    this title had been computed as provided in paragraph (2) of that
    section (rather than under paragraph (3) of that section); and (2)
    in the case of a member whose retired pay was subject to section
    1409(b)(2) of this title, no reduction in the member's retired pay
    had been made under that section, for provisions that the amount
    equal to (1) the amount of the member's initial unreduced retired
    pay, increased by (2) the percent (adjusted to the nearest one-
    tenth of 1 percent) by which (A) the price index for the most
    recent base quarter ending more than 31 days before the date the
    member attains 62 years of age, exceeds (B) the price index for the
    calendar quarter immediately before the date the member first
    became entitled to retired pay, and struck out subsec. (b) which
    had directed that, in this section, the term "initial unreduced
    retired pay" meant the amount of retired pay (A) to which the
    member was entitled when the member first became entitled to
    retired pay; or (B) in the case of a member whose retired pay was
    subject to section 1409(b)(2) of this title, to which the member
    would have been entitled on the date of the member's retirement
    without regard to that section, and that the definitions in
    subsection (g), and the provisions of subsection (h), of section
    1401a of this title applied to this section.

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Amendment by Pub. L. 106-65 effective Oct. 1, 1999, see section
    644 of Pub. L. 106-65, set out as a note under section 1401a of
    this title.

-End-



-CITE-
    10 USC Sec. 1411                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1411. Rules of construction

-STATUTE-
      (a) Construction of "First Became a Member". - For purposes of
    this chapter and other provisions of law providing for computation
    of retired or retainer pay of members of the uniformed services, a
    person shall be considered to first become a member of a uniformed
    service on the date the person is first enlisted, inducted, or
    appointed in a uniformed service.
      (b) References in Tables. - Section references in tables in this
    chapter are to sections of this title.

-SOURCE-
    (Added Pub. L. 99-348, title I, Sec. 105, July 1, 1986, 100 Stat.
    691.)

-End-



-CITE-
    10 USC Sec. 1412                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1412. Rounding to next lower dollar

-STATUTE-
      Amounts computed under this chapter, if not a multiple of $1,
    shall be rounded to the next lower multiple of $1.

-SOURCE-
    (Added Pub. L. 99-348, title I, Sec. 105, July 1, 1986, 100 Stat.
    691.)

-End-



-CITE-
    10 USC Sec. 1413                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1413. Repealed.

-MISC1-
    [Sec. 1413. Repealed. Pub. L. 108-136, div. A, title VI, Sec.
      641(b), Nov. 24, 2003, 117 Stat. 1514].
      Section, added Pub. L. 106-65, div. A, title VI, Sec. 658(a)(1),
    Oct. 5, 1999, 113 Stat. 668; amended Pub. L. 106-398, Sec. 1 [[div.
    A], title VI, Sec. 657(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A-
    166; Pub. L. 107-107, div. A, title VI, Sec. 641(b), (e)(1), (2),
    Dec. 28, 2001, 115 Stat. 1150, 1151; Pub. L. 107-314, div. A, title
    VI, Sec. 636(b), Dec. 2, 2002, 116 Stat. 2576; Pub. L. 108-136,
    div. A, title VI, Sec. 641(c)(1), Nov. 24, 2003, 117 Stat. 1514,
    related to special compensation for certain severely disabled
    uniformed services retirees.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 2004, and applicable to payments for
    months beginning on or after that date, see section 641(e) of Pub.
    L. 108-136, set out as an Effective Date of 2003 Amendment note
    under section 1414 of this title.

-End-



-CITE-
    10 USC Sec. 1413a                                           01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1413a. Combat-related special compensation

-STATUTE-
      (a) Authority. - The Secretary concerned shall pay to each
    eligible combat-related disabled uniformed services retiree who
    elects benefits under this section a monthly amount for the combat-
    related disability of the retiree determined under subsection (b).
      (b) Amount. - 
        (1) Determination of monthly amount. - Subject to paragraphs
      (2) and (3), the monthly amount to be paid an eligible combat-
      related disabled uniformed services retiree under subsection (a)
      for any month is the amount of compensation to which the retiree
      is entitled under title 38 for that month, determined without
      regard to any disability of the retiree that is not a combat-
      related disability.
        (2) Maximum amount. - The amount paid to an eligible combat-
      related disabled uniformed services retiree for any month under
      paragraph (1) may not exceed the amount of the reduction in
      retired pay that is applicable to the retiree for that month
      under sections 5304 and 5305 of title 38.
        (3) Special rules for chapter 61 disability retirees. - In the
      case of an eligible combat-related disabled uniformed services
      retiree who is retired under chapter 61 of this title, the amount
      of the payment under paragraph (1) for any month shall be reduced
      by the amount (if any) by which the amount of the member's
      retired pay under chapter 61 of this title exceeds the amount of
      retired pay to which the member would have been entitled under
      any other provision of law based upon the member's service in the
      uniformed services if the member had not been retired under
      chapter 61 of this title.

      (c) Eligible Retirees. - For purposes of this section, an
    eligible combat-related disabled uniformed services retiree
    referred to in subsection (a) is a member of the uniformed services
    entitled to retired pay who - 
        (1) has completed at least 20 years of service in the uniformed
      services that are creditable for purposes of computing the amount
      of retired pay to which the member is entitled or is entitled to
      retired pay under section 12731 of this title (other than by
      reason of section 12731b of this title); and
        (2) has a combat-related disability.

      (d) Procedures. - The Secretary of Defense shall prescribe
    procedures and criteria under which a disabled uniformed services
    retiree may apply to the Secretary of a military department to be
    considered to be an eligible combat-related disabled uniformed
    services retiree. Such procedures shall apply uniformly throughout
    the Department of Defense.
      (e) Combat-Related Disability. - In this section, the term
    "combat-related disability" means a disability that is compensable
    under the laws administered by the Secretary of Veterans Affairs
    and that - 
        (1) is attributable to an injury for which the member was
      awarded the Purple Heart; or
        (2) was incurred (as determined under criteria prescribed by
      the Secretary of Defense) - 
          (A) as a direct result of armed conflict;
          (B) while engaged in hazardous service;
          (C) in the performance of duty under conditions simulating
        war; or
          (D) through an instrumentality of war.

      (f) Coordination With Concurrent Receipt Provision. - Subsection
    (d) of section 1414 of this title provides for coordination between
    benefits under that section and under this section.
      (g) Status of Payments. - Payments under this section are not
    retired pay.
      (h) Source of Payments. - Payments under this section for a
    member of the Army, Navy, Air Force, or Marine Corps shall be paid
    from the Department of Defense Military Retirement Fund. Payments
    under this section for any other member for any fiscal year shall
    be paid out of funds appropriated for pay and allowances payable by
    the Secretary concerned for that fiscal year.
      (i) Other Definitions. - In this section:
        (1) The term "service-connected" has the meaning given such
      term in section 101 of title 38.
        (2) The term "retired pay" includes retainer pay, emergency
      officers' retirement pay, and naval pension.

-SOURCE-
    (Added Pub. L. 107-314, div. A, title VI, Sec. 636(a)(1), Dec. 2,
    2002, 116 Stat. 2574; amended Pub. L. 108-136, div. A, title VI,
    Secs. 641(c)(1), 642(a)-(e)(1), Nov. 24, 2003, 117 Stat. 1514,
    1516, 1517.)


-MISC1-
                                AMENDMENTS                            
      2003 - Pub. L. 108-136, Sec. 642(e)(1), substituted "Combat-
    related special compensation" for "Special compensation for
    certain combat-related disabled uniformed services retirees" in
    section catchline.
      Subsec. (b)(1). Pub. L. 108-136, Sec. 642(c), substituted "under
    subsection (a) for any month is the amount of compensation to which
    the retiree is entitled under title 38 for that month, determined
    without regard to any disability of the retiree that is not a
    combat-related disability." for "for a combat-related disability
    under subsection (a) is the monthly amount of compensation to which
    the retiree would be entitled solely for the combat-related
    disability consistent with chapter 11 of title 38."
      Subsec. (c)(1). Pub. L. 108-136, Sec. 642(b), inserted before
    semicolon at end "or is entitled to retired pay under section 12731
    of this title (other than by reason of section 12731b of this
    title)".
      Subsec. (c)(2). Pub. L. 108-136, Sec. 642(a)(2), struck out
    "qualifying" before "combat-related disability".
      Subsec. (e). Pub. L. 108-136, Sec. 642(a)(1), amended heading and
    text of subsec. (e) generally. Prior to amendment, subsec. (e)
    defined term "qualifying combat-related disability".
      Subsec. (f). Pub. L. 108-136, Sec. 642(d), amended heading and
    text of subsec. (f) generally. Prior to amendment, text read as
    follows:
      "(1) Single source of compensation. - An individual who is paid
    special compensation under this section may not receive special
    compensation under section 1413 of this title.
      "(2) Election of source. - An individual who is eligible for
    special compensation under this section and special compensation
    under section 1413 of this title shall elect which special
    compensation to receive.
      "(3) Regulations. - The Secretary of Defense shall prescribe in
    regulations the manner and form of an election under this
    subsection."
      Subsec. (h). Pub. L. 108-136, Sec. 641(c)(1), inserted first
    sentence and inserted "for any other member" before "for any fiscal
    year".

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-136, div. A, title VI, Sec. 641(c)(6), Nov. 24, 2003,
    117 Stat. 1516, provided that: "The amendments made by this
    subsection [amending this section and sections 1413, 1463, 1465,
    and 1466 of this title] shall take effect as of October 1, 2003.
    The Secretary of Defense shall provide for such administrative
    adjustments as necessary to provide for payments made for any
    period during fiscal year 2004 before the date of the enactment of
    this Act [Nov. 24, 2003] to be treated as having been made in
    accordance with such amendments and for the provisions of such
    amendments to be implemented as if enacted as of September 30,
    2003."
      Pub. L. 108-136, div. A, title VI, Sec. 642(f), Nov. 24, 2003,
    117 Stat. 1517, provided that: "The amendments made by subsections
    (a), (b), and (c) [amending this section] shall apply to payments
    under section 1413a of title 10, United States Code, for months
    beginning on or after January 1, 2004. The amendment made by
    subsection (d) [amending this section] shall take effect on January
    1, 2004."

                              EFFECTIVE DATE                          
      Pub. L. 107-314, div. A, title VI, Sec. 636(a)(2), Dec. 2, 2002,
    116 Stat. 2576, provided that: "Section 1413a of title 10, United
    States Code, as added by paragraph (1), shall take effect not later
    than 180 days after the date of the enactment of this Act [Dec. 2,
    2002]."

-End-



-CITE-
    10 USC Sec. 1414                                            01/03/2007

-EXPCITE-
    TITLE 10 - ARMED FORCES
    Subtitle A - General Military Law
    PART II - PERSONNEL
    CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-
    Sec. 1414. Members eligible for retired pay who are also eligible
      for veterans' disability compensation for disabilities rated 50
      percent or higher: concurrent payment of retired pay and
      veterans' disability compensation

-STATUTE-
      (a) Payment of Both Retired Pay and Compensation. - 
        (1) In general. - Subject to subsection (b), a member or former
      member of the uniformed services who is entitled for any month to
      retired pay and who is also entitled for that month to veterans'
      disability compensation for a qualifying service-connected
      disability (hereinafter in this section referred to as a
      "qualified retiree") is entitled to be paid both for that month
      without regard to sections 5304 and 5305 of title 38. During the
      period beginning on January 1, 2004, and ending on December 31,
      2013, payment of retired pay to such a qualified retiree is
      subject to subsection (c), except that in the case of a qualified
      retiree receiving veterans' disability compensation for a
      disability rated as 100 percent, payment of retired pay to such
      veteran is subject to subsection (c) only during the period
      beginning on January 1, 2004, and ending on December 31, 2004,
      and in the case of a qualified retiree receiving veterans'
      disability compensation at the rate payable for a 100 percent
      disability by reason of a determination of individual
      unemployability, payment of retired pay to such veteran is
      subject to subsection (c) only during the period beginning on
      January 1, 2004, and ending on September 30, 2009.
        (2) Qualifying service-connected disability. - In this section,
      the term "qualifying service-connected disability" means a
      service-connected disability or combination of service-connected
      disabilities that is rated as not less than 50 percent disabling
      by the Secretary of Veterans Affairs.

      (b) Special Rules for Chapter 61 Disability Retirees. - 
        (1) Career retirees. - The retired pay of a member retired
      under chapter 61 of this title with 20 years or more of service
      otherwise creditable under section 1405 of this title, or at
      least 20 years of service computed under section 12732 of this
      title, at the time of the member's retirement is subject to
      reduction under sections 5304 and 5305 of title 38, but only to
      the extent that the amount of the member's retired pay under
      chapter 61 of this title exceeds the amount of retired pay to
      which the member would have been entitled under any other
      provision of law based upon the member's service in the uniformed
      services if the member had not been retired under chapter 61 of
      this title.
        (2) Disability retirees with less than 20 years of service. -
      Subsection (a) does not apply to a member retired under chapter
      61 of this title with less than 20 years of service otherwise
      creditable under section 1405 of this title, or with less than 20
      years of service computed under section 12732 of this title, at
      the time of the member's retirement.

      (c) Phase-in of Full Concurrent Receipt. - During the period
    beginning on January 1, 2004, and ending on December 31, 2013,
    retired pay payable to a qualified retiree that pursuant to the
    second sentence of subsection (a)(1) is subject to this subsection
    shall be determined as follows:
        (1) Calendar year 2004. - For a month during 2004, the amount
      of retired pay payable to a qualified retiree is the amount (if
      any) of retired pay in excess of the current baseline offset plus
      the following:
          (A) For a month for which the retiree receives veterans'
        disability compensation for a disability rated as total, $750.
          (B) For a month for which the retiree receives veterans'
        disability compensation for a disability rated as 90 percent,
        $500.
          (C) For a month for which the retiree receives veterans'
        disability compensation for a disability rated as 80 percent,
        $350.
          (D) For a month for which the retiree receives veterans'
        disability compensation for a disability rated as 70 percent,
        $250.
          (E) For a month for which the retiree receives veterans'
        disability compensation for a disability rated as 60 percent,
        $125.
          (F) For a month for which the retiree receives veterans'
        disability compensation for a disability rated as 50 percent,
        $100.

        (2) Calendar year 2005. - For a month during 2005, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount specified in paragraph (1) for that qualified
        retiree; and
          (B) 10 percent of the difference between (i) the current
        baseline offset, and (ii) the amount specified in paragraph (1)
        for that member's disability.

        (3) Calendar year 2006. - For a month during 2006, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (2) for that
        qualified retiree; and
          (B) 20 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (2) for that qualified retiree.

        (4) Calendar year 2007. - For a month during 2007, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (3) for that
        qualified retiree; and
          (B) 30 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (3) for that qualified retiree.

        (5) Calendar year 2008. - For a month during 2008, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (4) for that
        qualified retiree; and
          (B) 40 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (4) for that qualified retiree.

        (6) Calendar year 2009. - For a month during 2009, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (5) for that
        qualified retiree; and
          (B) 50 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (5) for that qualified retiree.

        (7) Calendar year 2010. - For a month during 2010, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (6) for that
        qualified retiree; and
          (B) 60 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (6) for that qualified retiree.

        (8) Calendar year 2011. - For a month during 2011, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (7) for that
        qualified retiree; and
          (B) 70 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (7) for that qualified retiree.

        (9) Calendar year 2012. - For a month during 2012, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (8) for that
        qualified retiree; and
          (B) 80 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (8) for that qualified retiree.

        (10) Calendar year 2013. - For a month during 2013, the amount
      of retired pay payable to a qualified retiree is the sum of - 
          (A) the amount determined under paragraph (9) for that
        qualified retiree; and
          (B) 90 percent of the difference between (i) the current
        baseline offset, and (ii) the amount determined under paragraph
        (9) for that qualified retiree.

        (11) General limitation. - Retired pay determined under this
      subsection for a qualified retiree, if greater than the amount of
      retired pay otherwise applicable to that qualified retiree, shall
      be reduced to the amount of retired pay otherwise applicable to
      that qualified retiree.

      (d) Coordination With Combat-Related Special Compensation
    Program. - 
        (1) In general. - A person who is a qualified retiree under
      this section and is also an eligible combat-related disabled
      uniformed services retiree under section 1413a of this title may
      receive special compensation in accordance with that section or
      retired pay in accordance with this section, but not both.
        (2) Annual open season. - The Secretary concerned shall provide
      for an annual period (referred to as an "open season") during
      which a person described in paragraph (1) shall have the right to
      make an election to change from receipt of special compensation
      in accordance with section 1413a of this title to receipt of
      retired pay in accordance with this section, or the reverse, as
      the case may be. Any such election shall be made under
      regulations prescribed by the Secretary concerned. Such
      regulations shall provide for the form and manner for making such
      an election and shall provide for the date as of when such an
      election shall become effective. In the case of the Secretary of
      a military department, such regulations shall be subject to
      approval by the Secretary of Defense.

      (e) Definitions. - In this section:
        (1) Retired pay. - The term "retired pay" includes retainer
      pay, emergency officers' retirement pay, and naval pension.
        (2) Veterans' disability compensation. - The term "veterans'
      disability compensation" has the meaning given the term
      "compensation" in section 101(13) of title 38.
        (3) Disability rated as total. - The term "disability rated as
      total" means - 
          (A) a disability, or combination of disabilities, that is
        rated as total under the standard schedule of rating
        disabilities in use by the Department of Veterans Affairs; or
          (B) a disability, or combination of disabilities, for which
        the scheduled rating is less than total but for which a rating
        of total is assigned by reason of inability of the disabled
        person concerned to secure or follow a substantially gainful
        occupation as a result of disabilities for which veterans'
        disability compensation may be paid.

        (4) Current baseline offset. - 
          (A) In general. - The term "current baseline offset" for any
        qualified retiree means the amount for any month that is the
        lesser of - 
            (i) the amount of the applicable monthly retired pay of the
          qualified retiree for that month; and
            (ii) the amount of monthly veterans' disability
          compensation to which the qualified retiree is entitled for
          that month.

          (B) Applicable retired pay. - In subparagraph (A), the term
        "applicable retired pay" for a qualified retiree means the
        amount of monthly retired pay to which the qualified retiree is
        entitled, determined without regard to this section or sections
        5304 and 5305 of title 38, except that in the case of such a
        retiree who was retired under chapter 61 of this title, such
        amount is the amount of retired pay to which the member would
        have been entitled under any other provision of law based upon
        the member's service in the uniformed services if the member
        had not been retired under chapter 61 of this title.

-SOURCE-
    (Added Pub. L. 107-107, div. A, title VI, Sec. 641(a), Dec. 28,
    2001, 115 Stat. 1149; amended Pub. L. 108-136, div. A, title VI,
    Sec. 641(a), Nov. 24, 2003, 117 Stat. 1511; Pub. L. 108-375, div.
    A, title VI, Sec. 642, Oct. 28, 2004, 118 Stat. 1957; Pub. L. 109-
    163, div. A, title VI, Sec. 663, Jan. 6, 2006, 119 Stat. 3316.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(1). Pub. L. 109-163 inserted ", and in the
    case of a qualified retiree receiving veterans' disability
    compensation at the rate payable for a 100 percent disability by
    reason of a determination of individual unemployability, payment of
    retired pay to such veteran is subject to subsection (c) only
    during the period beginning on January 1, 2004, and ending on
    September 30, 2009" before period at end.
      2004 - Subsec. (a)(1). Pub. L. 108-375, Sec. 642(a), inserted
    before period at end ", except that in the case of a qualified
    retiree receiving veterans' disability compensation for a
    disability rated as 100 percent, payment of retired pay to such
    veteran is subject to subsection (c) only during the period
    beginning on January 1, 2004, and ending on December 31, 2004".
      Subsec. (c). Pub. L. 108-375, Sec. 642(b), inserted "that
    pursuant to the second sentence of subsection (a)(1) is subject to
    this subsection" after "a qualified retiree" in introductory
    provisions.
      2003 - Pub. L. 108-136 amended section generally. Prior to
    amendment, section related to members eligible for retired pay who
    had service-connected disabilities: payment of retired pay and
    veterans' disability compensation; and contingent effectiveness
    based on enactment of offsetting legislation.

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-136, div. A, title VI, Sec. 641(e), Nov. 24, 2003,
    117 Stat. 1516, provided that: "The amendments made by subsections
    (a) and (b) [amending this section and repealing section 1413 of
    this title] shall take effect on January 1, 2004, and shall apply
    to payments for months beginning on or after that date."

                    PROHIBITION OF RETROACTIVE BENEFITS                
      Pub. L. 107-107, div. A, title VI, Sec. 641(d), Dec. 28, 2001,
    115 Stat. 1150, provided that: "If the provisions of subsection (a)
    of section 1414 of title 10, United States Code, becomes [sic]
    effective in accordance with subsection (f) of that section, no
    benefit may be paid to any person by reason of those provisions for
    any period before the effective date specified in subsection (e) of
    that section."

-End-