I 

113TH CONGRESS 

1ST SESSION H. R. 3314 

To amend title 10, United States Code, to limit recoupments of separation 

pay, special separation benefits, and voluntary separation incentive from 

members of the Armed Forces subsequently receiving retired or retainer 

pay. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 23, 2013 

Ms. SHEA-PORTER introduced the following bill; which was referred to the 

Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to limit recoupments 

of separation pay, special separation benefits, and voluntary separation incentive from members of the Armed 

Forces subsequently receiving retired or retainer pay. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Retired Pay 

5 Fairness Act of 2013’’. 


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1 SEC. 2. LIMITATIONS ON RECOUPMENT OF SEPARATION 

2 PAY, SPECIAL SEPARATION BENEFITS, AND 

3 VOLUNTARY SEPARATION INCENTIVE FROM 

4 MEMBERS SUBSEQUENTLY RECEIVING RE5 TIRED OR RETAINER PAY. 

6 (a) SEPARATION PAY AND SPECIAL SEPARATION

7 BENEFITS.—Section 1174(h)(1) of title 10, United States 

8 Code, is amended— 

9 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 

10 (2) by adding at the end the following new sub11 paragraphs: 

12 ‘‘(B) The amount deducted under subparagraph (A) 

13 from a payment of retired or retainer pay may not exceed 

14 25 percent of the amount of the member’s retired or re15 tainer pay for that month unless the member requests or 

16 consents to deductions at an accelerated rate. The Sec17 retary of Defense shall consult with the member regarding 

18 the repayment rate to be imposed, taking into account the 

19 financial ability of the member to pay and avoiding the 

20 imposition of an undue hardship on the member and the 

21 member’s dependents. 

22 ‘‘(C) The deduction of amounts from the retired or 

23 retainer pay of a member under this paragraph may not 

24 commence until the date that is 90 days after the date 

25 on which the Secretary of Defense notifies the member 

26 of the deduction of such amounts under this paragraph. 


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1 Any notice under this subparagraph shall be designed to 

2 provide clear and comprehensive information on the de3 duction of amounts under this paragraph, including infor4 mation on the determination of the amount and period of 

5 installments under this paragraph. 

6 ‘‘(D) The Secretary of Defense may waive the deduc7 tion of amounts from the retired or retainer pay of a mem8 ber under this paragraph if the Secretary determines that 

9 deduction of such amounts would result in a financial 

10 hardship for the member.’’. 

11 (b) VOLUNTARY SEPARATION INCENTIVE.—Section 

12 1175(e)(3) of such title is amended— 

13 (1) by redesignating subparagraph (B) as sub14 paragraph (C); 

15 (2) by inserting after subparagraph (A) the fol16 lowing new subparagraph: 

17 ‘‘(B) The amount deducted under subparagraph (A) 

18 from a payment of retired or retainer pay may not exceed 

19 25 percent of the amount of the member’s retired or re20 tainer pay for that month unless the member requests or 

21 consents to deductions at an accelerated rate. The Sec22 retary of Defense or the Secretary of Homeland Security, 

23 as applicable, shall consult with the member regarding the 

24 repayment rate to be imposed, taking into account the fi25 nancial ability of the member to pay and avoiding the imVerDate Mar 15 2010 22:15 Oct 24, 2013 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3314.IH H3314

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1 position of an undue hardship on the member and the 

2 member’s dependents.’’; and 

3 (3) by adding at the end the following new sub4 paragraphs: 

5 ‘‘(D) The deduction of amounts from the retired or 

6 retainer pay of a member under this paragraph may not 

7 commence until the date that is 90 days after the date 

8 on which the Secretary of Defense or the Secretary of 

9 Homeland Security, as applicable, notifies the member of 

10 the deduction of such amounts under this paragraph. Any 

11 notice under this subparagraph shall be designed to pro12 vide clear and comprehensive information on the deduction 

13 of amounts under this paragraph, including information 

14 on the determination of the amount and period of install15 ments under this paragraph. 

16 ‘‘(E) The Secretary of Defense or the Secretary of 

17 Homeland Security, as applicable, may waive the deduc18 tion of amounts from the retired or retainer pay of a mem19 ber under this paragraph if the Secretary determines that 

20 deduction of such amounts would result in a financial 

21 hardship for the member.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on the first day of the first 

24 month beginning on or after the date of the enactment 

25 of this Act and apply to deductions made from the retired 


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1 or retainer pay of members of the uniformed services for 

2 that month and subsequent months. 

Æ 


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