To amend title 10, United States Code, to provide for the inclusion of certain special and incentive pays in the computation of military retired pay for members of the Armed Forces who have a special operations forces designation.

Summary: Special Operations Forces Retention Improvement Act of 2006 - Amends federal Armed Forces provisions to require the retired military pay of a qualified special operations forces member to be increased by the amount of specified special and incentive pays received by such member prior to retirement.

Requires the member, in order to qualify for such retired pay increase, to have been: (1) paid special pay for duty subject to hostile fire or imminent danger for no fewer than 18 months; and (2) assigned in a special operations forces duty assignment for not less than 60 months.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Special Operations Forces Retention 
Improvement Act of 2006''.

SEC. 2. INCLUSION OF SPECIFIED SPECIAL AND INCENTIVE PAYS IN 
              COMPUTATION OF MILITARY RETIRED PAY FOR MEMBERS OF THE 
              ARMED FORCES WITH A SPECIAL OPERATIONS FORCES 
              DESIGNATION.

    (a) In General.--Chapter 71 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1415. Members with special operations forces designation: 
              increase in retired pay for receipt of certain special 
              pays
    ``(a) Increase in Retired Pay for Qualifying Members.--The retired 
pay of a member who is a qualifying special operations forces member 
and who retires on or after the date of the enactment of this section 
shall be increased by the amount determined under subsection (b).
    ``(b) Computation of Increase.--
            ``(1) Sum of prorated monthly special pays.--The amount of 
        an increase in retired pay under this section for any member 
        shall be the sum of the amounts determined under paragraph (2) 
        for that member.
            ``(2) Pro rating of special pays.--For each covered monthly 
        special pay that the member received at any time while on 
        active duty, there shall be determined the amount that is equal 
        to the product of--
                    ``(A) the monthly amount of such covered special 
                pay that the member received for the final month for 
                which the member received that special pay; and
                    ``(B) the fraction in which--
                            ``(i) the numerator is the number of months 
                        for which the member received that special pay; 
                        and
                            ``(ii) the denominator is the total number 
                        of months for which the member received basic 
                        pay.
    ``(c) Covered Monthly Special Pays.--For purposes of this section, 
the term `covered monthly special pay' means the following incentive 
and special pays, each of which is paid on a monthly basis:
            ``(1) Incentive pay under section 301 of title 37, relating 
        to performance of hazardous duty required by orders.
            ``(2) Aviation career incentive pay under section 301a of 
        title 37.
            ``(3) Submarine duty incentive pay under section 301c of 
        title 37.
            ``(4) Special pay under section 304 of title 37, relating 
        to diving duty.
            ``(5) Special pay under section 305 of title 37, relating 
        to hardship duty.
            ``(6) Special pay under section 305a of title 37, relating 
        to career sea pay.
            ``(7) Special pay under section 305b of title 37, relating 
        to service as a member of a Weapons of Mass Destruction Civil 
        Support Team.
            ``(8) Special pay under section 306 of title 37, relating 
        to officers holding positions of unusual responsibility and of 
        a critical nature.
            ``(9) Special pay under section 307 of title 37, relating 
        to special duty assignments for enlisted members.
            ``(10) Special pay under section 310 of title 37, relating 
        to duty subject to hostile fire or imminent danger.
            ``(11) Special pay under section 314 of title 37, relating 
        to qualified members extending duty at designated overseas 
        locations.
            ``(12) Incentive pay under section 320 of title 37, 
        relating to career enlisted flyers.
            ``(13) Special pay under section 328 of title 37, relating 
        to combat-related injury rehabilitation.
    ``(d) Qualifying Special Operations Forces Members.--A member is a 
qualifying special operations forces member for the purposes of this 
section if the member has a special operations forces personnel 
designation and--
            ``(1) the member was paid special pay for not fewer than 18 
        months under section 310 of title 37, relating to special pay 
        for duty subject to hostile fire or imminent danger; or
            ``(2) the member was assigned to duty in a special 
        operations forces duty assignment for not less than 60 months 
        (whether or not consecutive).
    ``(e) Treatment Under Other Provisions Relating to Retired Pay.--An 
amount by which retired pay is increased under this section shall not 
be considered to be retired pay--
            ``(1) for purposes of section 1408 of this title; or
            ``(2) for purposes of the Survivor Benefit Plan under 
        subchapter II of chapter 73 of this title.
    ``(f) Retainer Pay.--In this section, the term `retired pay' 
includes retainer pay payable under section 6330 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1415.  Members with special operations forces designation: increase 
                            in retired pay for receipt of certain 
                            special pays.''.