`[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 270 Placed on Calendar Senate (PCS)]





                                                        Calendar No. 10

106th CONGRESS

  1st Session

                                 S. 270

_______________________________________________________________________

                                 A BILL

 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.

_______________________________________________________________________

                            January 22, 1999

            Read the second time and placed on the calendar





                                                        Calendar No. 10
106th CONGRESS
  1st Session
                                 S. 270

 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1999

  Mr. Warner (for himself, Mr. Thurmond, Mr. McCain, Mr. Smith of New 
    Hampshire, Mr. Inhofe, Ms. Snowe, Mr. Roberts, Mr. Allard, Mr. 
 Hutchinson, Mr. Sessions, Mr. Santorum, and Mr. Lott) introduced the 
             following bill; which was read the first time

                            January 22, 1999

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Soldiers', Sailors', Airmen's, and 
Marines' Bill of Rights Act of 1999''.

                      TITLE I--PAY AND ALLOWANCES

SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTURING OF BASIC PAY.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services by section 
203(a) of such title to become effective during fiscal year 2000 shall 
not be made.
    (b) January 1, Increase in Basic Pay.--Effective on January 1, 
2000, the rates of monthly basic pay for members of the uniformed 
services shall be increased by 4.8 percent.
    (c) Basic Pay Reform.--(1) Effective on July 1, 2000, the rates of 
monthly basic pay for members of the uniformed services within each pay 
grade are as follows:


                                                                      RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Years of service (computed under section 205 of title 37, United States Code)
             Pay Grade             -------------------------------------------------------------------------------------------------------------------------------------------------------------
                                     Under 2   Over 2    Over 3    Over 4    Over 6    Over 8    Over 10   Over 12   Over 14   Over 16   Over 18    Over 20     Over 22     Over 24     Over 26
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
COMMISSIONED OFFICERS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
O-10..............................                                                                                                                $10,655.10  $10,707.60  $10,930.20  $11,318.40
O-9...............................                                                                                                                  9,319.50    9,453.60    9,647.70    9,986.40
O-8...............................  $6,594.3
                                           0  $6,810.3
                                                     0  $6,953.1
                                                               0  $6,993.3
                                                                         0  $7,171.8
                                                                                   0  $7,471.5
                                                                                             0  $7,540.8
                                                                                                       0  $7,824.6
                                                                                                                 0  $7,906.2
                                                                                                                           0  $8,150.1
                                                                                                                                     0  $8,503.8
                                                                                                                                               0    8,830.20    9,048.00    9,048.00    9,048.00
O-7...............................  5,479.50  5,851.80  5,851.80  5,894.40  6,114.60  6,282.00  6,475.80  6,669.00  6,863.10  7,471.50  7,985.40    7,985.40    7,985.40    7,985.40    8,025.60
O-6...............................  4,061.10  4,461.60  4,754.40  4,754.40  4,772.40  4,976.70  5,004.00  5,004.00  5,169.30  5,791.20  6,086.10    6,381.30    6,549.00    6,719.10    7,049.10
O-5...............................  3,248.40  3,813.90  4,077.90  4,127.70  4,291.80  4,291.80  4,420.80  4,659.30  4,971.90  5,286.00  5,436.00    5,583.60    5,751.90    5,751.90    5,751.90
O-4...............................  2,737.80  3,333.90  3,556.20  3,606.00  3,812.40  3,980.40  4,252.50  4,464.00  4,611.00  4,758.90  4,808.70    4,808.70    4,808.70    4,808.70    4,808.70
O-3\1\............................  2,544.00  2,884.20  3,112.80  3,364.80  3,525.90  3,702.60  3,850.20  4,040.40  4,139.10  4,139.10  4,139.10    4,139.10    4,139.10    4,139.10    4,139.10
O-2\1\............................  2,218.80  2,527.20  2,910.90  3,009.00  3,071.10  3,071.10  3,071.10  3,071.10  3,071.10  3,071.10  3,071.10    3,071.10    3,071.10    3,071.10    3,071.10
O-1\1\............................  1,926.30  2,004.90  2,423.10  2,423.10  2,423.10  2,423.10  2,423.10  2,423.10  2,423.10  2,423.10  2,423.10    2,423.10    2,423.10    2,423.10    2,423.10
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
O-3E\2\...........................                                $3,364.8
                                                                         0  $3,525.9
                                                                                   0  $3,702.6
                                                                                             0  $3,850.2
                                                                                                       0  $4,040.4
                                                                                                                 0  $4,200.3
                                                                                                                           0  $4,291.8
                                                                                                                                     0  $4,416.9
                                                                                                                                               0   $4,416.90   $4,416.90   $4,416.90   $4,416.90
O-2E\2\...........................                                3,009.00  3,071.10  3,168.60  3,333.90  3,461.40  3,556.20  3,556.20  3,556.20    3,556.20    3,556.20    3,556.20    3,556.20
O-1E\2\...........................                                2,423.10  2,588.40  2,683.80  2,781.30  2,877.60  3,009.00  3,009.00  3,009.00    3,009.00    3,009.00    3,009.00    3,009.00
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
WARRANT OFFICERS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
W-5...............................                                                                                                                 $4,475.10   $4,628.70   $4,782.90   $4,937.40
W-4...............................  $2,592.0
                                           0  $2,788.5
                                                     0  $2,868.6
                                                               0  $2,947.5
                                                                         0  $3,083.4
                                                                                   0  $3,217.2
                                                                                             0  $3,352.8
                                                                                                       0  $3,485.1
                                                                                                                 0  $3,622.2
                                                                                                                           0  $3,753.6
                                                                                                                                     0  $3,888.0
                                                                                                                                               0    4,019.00    4,155.60    4,289.70    4,427.10
W-3...............................  2,355.90  2,555.40  2,555.40  2,588.40  2,694.30  2,814.90  2,974.20  3,071.10  3,177.00  3,298.20  3,418.50    3,539.10    3,659.40    3,780.00    3,900.90
W-2...............................  2,063.40  2,232.60  2,232.60  2,305.80  2,423.10  2,555.40  2,852.60  2,749.80  2,844.30  2,949.00  3,058.40    3,163.80    3,270.90    3,378.30    3,378.30
W-1...............................  1,719.00  1,971.00  1,971.00  2,135.70  2,232.60  2,332.80  2,433.30  2,533.20  2,634.00  2,734.80  2,835.00    2,910.90    2,910.90    2,910.90    2,910.90
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ENLISTED MEMBERS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
E-9...............................                                                              $3,015.3
                                                                                                       0  $3,083.4
                                                                                                                 0  $3,169.8
                                                                                                                           0  $3,271.5
                                                                                                                                     0  $3,373.2
                                                                                                                                               0   $3,473.40   $3,609.30   $3,744.00   $3,915.80
E-8...............................                                                    $2,528.4
                                                                                             0  2,601.60  2,669.70  2,751.60  2,840.10  2,932.50    3,026.10    3,161.10    3,295.50    3,483.60
E-7...............................  $1,765.8
                                           0  $1,927.8
                                                     0  $2,001.0
                                                               0  $2,073.0
                                                                         0  $2,147.7
                                                                                   0  $2,220.9
                                                                                             0  2,294.10  2,367.30  2,439.30  2,514.00  2,588.10    2,660.40    2,787.60    2,926.20    3,134.40
E-6...............................  1,518.90  1,678.20  1,752.60  1,824.30  1,899.30  1,973.10  2,047.20  2,118.60  2,191.50  2,244.60  2,283.30    2,283.30    2,285.70    2,285.70    2,285.70
E-5...............................  1,332.60  1,494.00  1,566.00  1,640.40  1,714.50  1,789.50  1,861.50  1,936.20  1,936.20  1,936.20  1,936.20    1,936.20    1,936.20    1,936.20    1,936.20
E-4...............................  1,242.90  1,373.10  1,447.20  1,520.10  1,593.90  1,593.90  1,593.90  1,593.90  1,593.90  1,593.90  1,593.90    1,593.90    1,593.90    1,593.90    1,593.90
E-3...............................  1,171.50  1,260.60  1,334.10  1,335.90  1,335.90  1,335.90  1,335.90  1,335.90  1,335.90  1,335.90  1,335.90    1,335.90    1,335.90    1,335.90    1,335.90
E-2...............................  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40  1,127.40    1,127.40    1,127.40    1,127.40    1,127.40
E-1\3\............................  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60  1,005.60    1,005.60    1,005.60    1,005.60    1,005.60
E-1\4\............................    930.00
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\1\Rates do not apply to commissioned officers who have been credited with over 4 years of active duty service as an enlisted member or warrant officer of the uniformed services.
\2\Rates apply to commissioned officers with over 4 years of active duty service as an enlisted member or warrant officer.
\3\Rates apply for personnel in grade E-1 who have served 4 months or more on active duty.
\4\Rates apply for personnel in grade E-1 who have served less than 4 months on active duty.

    (2) Subject to paragraph (4), the rate of monthly basic pay for an 
officer of the uniformed services in grade O-10 is $12,441.00 while the 
officer is serving as Chairman or Vice 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, regardless of cumulative years of service computed 
under section 205 of title 37, United States Code.
    (3) The rate monthly basic pay for a member of the uniformed 
services grade E-9 is $4,701.00 while the member is serving as Sergeant 
Major of the Army, Master Chief Petty Officer of the Navy or Coast 
Guard, Chief Master Sergeant of the Air Force, or Sergeant Major of the 
Marine Corps, regardless of cumulative years of service computed under 
section 205 of title 37, United States Code.
    (4) The limitation in section 5303(f) of title 5, United States 
Code, applies to the adjustments of rates of monthly basic pay made by 
paragraphs (1) and (2).

SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FISCAL YEAR 2000.

    (a) ECI+0.5 Percent Increase for All Members.--Section 1009(c) of 
title 37, United States Code, is amended to read as follows:
    ``(c) ECI+0.5 Percent Increase for All Members.--Subject to 
subsection (d), an adjustment taking effect under this section during a 
fiscal year shall provide all eligible members with an increase in the 
monthly basic pay by the percentage equal to the sum of one percent 
plus the percentage calculated as provided under section 5303(a) of 
title 5 (without regard to whether rates of pay under the statutory pay 
systems are actually increased during such fiscal year under that 
section by the percentage so calculated).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2000.

SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.

    (a) Allowance.--(1) Chapter 7 of title 37, United States Code, is 
amended by inserting after section 402 the following new section:
``Sec. 402a. Special subsistence allowance
    ``(a) Entitlement.--Upon the application of an eligible member of a 
uniformed service, the Secretary concerned shall pay the member a 
special subsistence allowance for each month for which the member is 
eligible to receive food stamp assistance.
    ``(b) Termination of Entitlement.--The entitlement of a member to 
receive payment of a special subsistence allowance terminates upon the 
occurrence of any of the following events:
            ``(1) Termination of eligibility for food stamp assistance.
            ``(2) Payment of the special subsistence allowance for 12 
        consecutive months.
            ``(3) Promotion of the member to a higher grade.
            ``(4) Transfer of the member in a permanent change of 
        station.
    ``(c) Reestablished Entitlement.--(1) After a termination of a 
member's entitlement to the special subsistence allowance under 
subsection (b), the Secretary concerned shall resume payment of the 
special subsistence allowance to the member if the Secretary 
determines, upon further application of the member, that the member is 
eligible to receive food stamps.
    ``(2) Payments resumed under this subsection shall terminate under 
subsection (b) upon the occurrence of an event described in that 
subsection after the resumption of the payments.
    ``(3) The number of times that payments are resumed under this 
subsection is unlimited.
    ``(d) Documentation of Eligibility.--A member of the uniformed 
services applying for the special subsistence allowance under this 
section shall furnish the Secretary concerned with such evidence of the 
member's eligibility for food stamp assistance as the Secretary may 
require in connection with the application.
    ``(e) Amount of Allowance.--The monthly amount of the special 
subsistence allowance under this section is $180.
    ``(f) Relationship to Basic Allowance for Subsistence.--The special 
subsistence allowance under this section is in addition to the basic 
allowance for subsistence under section 402 of this title.
    ``(g) Food Stamp Assistance Defined.--In this section, the term 
`food stamp assistance' means assistance under the Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.).
    ``(h) Termination of Authority.--No special subsistence allowance 
may be made under this section for any month beginning after September 
30, 2004.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 402 the 
following:

``402a. Special subsistence allowance.''.
    (b) Effective Date.--Section 402a of title 37, United States Code, 
shall take effect on the first day of the first month that begins not 
less than 180 days after the date of the enactment of this Act.
    (c) Annual Report.--(1) Not later than March 1 of each year after 
1999, the Secretary of Defense shall submit to Congress a report 
setting forth the number of members of the uniformed services who are 
eligible for assistance under the Food Stamp Act of 1977 (7 U.S.C. 2011 
et seq.).
    (2) In preparing the report, the Secretary shall consult with the 
Secretary of Transportation (with respect to the Coast Guard), the 
Secretary of Health and Human Services (with respect to the 
commissioned corps of the Public Health Service), and the Secretary of 
Commerce (with respect to the commissioned officers of the National 
Oceanic and Atmospheric Administration), who shall provide the 
Secretary of Defense with any information that the Secretary determines 
necessary to prepare the report.
    (3) No report is required under this section after March 1, 2004.

                     TITLE II--RETIREMENT BENEFITS

SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTERING UNIFORMED SERVICES 
              ON OR AFTER AUGUST 1, 1986.

    (a) Reduced Retired Pay Only for Members Electing 15-Year Service 
Bonus.--(1) Paragraph (2) of section 1409(b) of title 10, United States 
Code, is amended by inserting after ``July 31, 1986,'' the following: 
``has elected to receive a bonus under section 318 of title 37,''.
    (2)(A) Paragraph (2)(A) of section 1401a(b) of title 10, United 
States Code, is amended by striking ``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,'' and inserting ``Except 
as otherwise provided in this subsection, the Secretary shall increase 
the retired pay of each member and former member''.
    (B) Paragraph (3) of such section 1401a(b) is amended by inserting 
after ``August 1, 1986,'' the following: ``and has elected to receive a 
bonus under section 318 of title 37,''.
    (3) Section 1410 of title 10, United States Code, is amended by 
inserting after ``August 1, 1986,'' the following: ``who has elected to 
receive a bonus under section 318 of title 37,''.
    (b) Optional Lump-Sum Bonus at 15 Years of Service.--(1) Chapter 5 
of title 37, United States Code, is amended by adding at the end the 
following new section:
``Sec. 318. Special pay: 15-year service bonus elected by members 
              entering on or after August 1, 1986
    ``(a) Payment of Bonus.--The Secretary concerned shall pay a bonus 
to a member of a uniformed service who is eligible and elects to 
receive the bonus under this section.
    ``(b) Eligibility for Bonus.--A member of a uniformed service 
serving on active duty is eligible to receive a bonus under this 
section if the member--
            ``(1) first became a member of a uniformed service on or 
        after August 1, 1986;
            ``(2) has completed 15 years of active duty in the 
        uniformed services; and
            ``(3) if not already obligated to remain on active duty for 
        a period that would result in at least 20 years of active-duty 
        service, executes a written agreement (prescribed by the 
        Secretary concerned) to remain continuously on active duty for 
        five years after the date of the completion of 15 years of 
        active-duty service.
    ``(c) Election.--(1) A member eligible to receive a bonus under 
this section may elect to receive the bonus. The election shall be made 
in such form and within such period as the Secretary concerned 
requires.
    ``(2) An election made under this subsection is irrevocable.
    ``(d) Notification of Eligibility.--The Secretary concerned shall 
transmit a written notification of the opportunity to elect to receive 
a bonus under this section to each member who is eligible (or upon 
execution of an agreement described in subsection (b)(3), would be 
eligible) to receive the bonus. The Secretary shall complete the 
notification within 180 days after the date on which the member 
completes 15 years of active duty. The notification shall include the 
procedures for electing to receive the bonus and an explanation of the 
effects under sections 1401a, 1409, and 1410 of title 10 that such an 
election has on the computation of any retired or retainer pay which 
the member may become eligible to receive.
    ``(e) Form and Amount of Bonus.--A bonus under this section shall 
be paid in one lump sum of $30,000.
    ``(f) Time for Payment.--Payment of a bonus to a member electing to 
receive the bonus under this section shall be made not later than the 
first month that begins on or after the date that is 60 days after the 
Secretary concerned receives from the member an election that satisfies 
the requirements imposed under subsection (c).
    ``(g) Repayment of Bonus.--(1) If a person paid a bonus under this 
section fails to complete the total period of active duty specified in 
the agreement entered into under subsection (b)(3), the person shall 
refund to the United States the amount that bears the same ratio to the 
amount of the bonus payment as the unserved part of that total period 
bears to the total period.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement under this 
section does not discharge the member signing such agreement from a 
debt arising under the agreement or this subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``318. Special pay: 15-year service bonus elected by members entering 
                            on or after August 1, 1986.''.
    (c) Conforming Amendments to Survivor Benefit Plan Provisions.--(1) 
Section 1451(h)(3) of title 10, United States Code, is amended by 
inserting ``of certain members'' after ``retirement''.
    (2) Section 1452(i) of such title is amended by striking ``When the 
retired pay'' and inserting ``Whenever the retired pay''.
    (d) Related Technical Amendments.--(1) Section 1401a(b) of title 
10, United States Code, is amended--
            (A) by striking the heading for paragraph (1) and inserting 
        ``Increase required.--'';
            (B) by striking the heading for paragraph (2) and inserting 
        ``Percentage increase.--''; and
            (C) by striking the heading for paragraph (3) and inserting 
        ``Reduced percentage for certain post-august 1, 1986 members.--
        ''.
    (2) Section 1409(b)(2) of title 10, United States Code, is amended 
by inserting ``certain'' after ``Reduction applicable to'' in the 
paragraph heading.
    (3)(A) The heading of section 1410 of such title is amended by 
inserting ``certain'' before ``members''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 71 of title 10, United States Code, is amended 
by inserting ``certain'' before ``members''.

SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.

    (a) Participation Authority.--(1)(A) Chapter 3 of title 37, United 
States Code, is amended by adding at the end the following:
``Sec. 211. Participation in Thrift Savings Plan
    ``(a) Authority.--A member of the uniformed services serving on 
active duty for a period of more than 30 days may participate in the 
Thrift Savings Plan in accordance with section 8440e of title 5.
    ``(b) Rule of Construction Regarding Separation.--For the purposes 
of section 8440e of title 5, the following actions shall be considered 
separation of a member of the uniformed services from Government 
employment:
            ``(1) Release of the member from active-duty service (not 
        followed by a resumption of active-duty service within 30 days 
        after the effective date of the release).
            ``(2) Transfer of the member by the Secretary concerned to 
        a retired list maintained by the Secretary.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``211. Participation in Thrift Savings Plan.''.
    (2)(A) Subchapter III of chapter 84 of title 5, United States Code, 
is amended by adding at the end the following:
``Sec. 8440e. Members of the uniformed services on active duty
    ``(a) Participation Authorized.--(1) A member of the uniformed 
services authorized to participate in the Thrift Savings Plan under 
section 211(a) of title 37 may contribute to the Thrift Savings Fund.
    ``(2) An election to contribute to the Thrift Savings Fund under 
paragraph (1) may be made only during a period provided under section 
8432(b) for individuals subject to this chapter.
    ``(b) Applicability of Thrift Savings Plan Provisions.--Except as 
otherwise provided in this section, the provisions of this subchapter 
and subchapter VII of this chapter shall apply with respect to members 
of the uniformed services making contributions to the Thrift Savings 
Fund as if such members were employees within the meaning of section 
8401(11).
    ``(c) Maximum Contribution From Basic Pay.--The amount contributed 
by a member of the uniformed services for any pay period out of basic 
pay may not exceed 5 percent of such member's basic pay for such pay 
period.
    ``(d) Other Member Contributions.--A member of the uniformed 
services making contributions to the Thrift Savings Fund out of basic 
pay may also contribute (by direct transfer to the Fund) any part of 
any special or incentive pay that the member receives under chapter 5 
of title 37. No contribution made under this subsection shall be 
subject to, or taken into account for purposes of, the first sentence 
of section 8432(d), relating to the applicability of any limitation 
under section 415 of the Internal Revenue Code of 1986.
    ``(e) Agency Contributions Generally Prohibited.--Except as 
provided in section 211(c) of title 37, no contribution under section 
8432(c) of this title may be made for the benefit of a member of the 
uniformed services making contributions to the Thrift Savings Fund 
under subsection (a).
    ``(f) Benefits and Elections of Benefits.--In applying section 8433 
to a member of the uniformed services who has an account balance in the 
Thrift Savings Fund--
            ``(1) any reference in such section to separation from 
        Government employment shall be construed to refer to an action 
        described in section 211(b) of title 37; and
            ``(2) the reference in section 8433(g)(1) to contributions 
        made under section 8432(a) shall be treated as being a 
        reference to contributions made to the Fund by the member, 
        whether made under section 8351, 8432(a), or this section.
    ``(g) Basic Pay Defined.--For purposes of this section, the term 
`basic pay' means basic pay that is payable under section 204 of title 
37.''.
    (B) The table of sections at the beginning of chapter 84 of title 
5, United States Code, is amended by adding after the item relating to 
section 8440d the following:

``8440e. Members of the uniformed services on active duty.''.
    (3) Section 8432b(b) of title 5, United States Code, is amended--
            (A) in paragraph (1), by striking ``Each employee'' and 
        inserting ``Except as provided in paragraph (4), each 
        employee'';
            (B) by redesignating paragraph (4) as paragraph (5); and
            (C) by inserting after paragraph (3) the following new 
        paragraph (4)
    ``(4) No contribution may be made under this section for a period 
for which an employee made a contribution under section 8440e.''.
    (4) Section 8473 of title 5, United States Code, is amended--
            (A) in subsection (a), by striking ``14 members'' and 
        inserting ``15 members''; and
            (B) in subsection (b)--
                    (i) by striking ``14 members'' and inserting ``15 
                members'';
                    (ii) by striking ``and'' at the end of paragraph 
                (8);
                    (iii) by striking the period at the end of 
                paragraph (9) and inserting ``; and''; and
                    (iv) by adding at the end the following:
            ``(10) 1 shall be appointed to represent participants 
        (under section 8440e) who are members of the uniformed 
        services.''.
    (5) Paragraph (11) of section 8351(b) of title 5, United States 
Code, is redesignated as paragraph (8).
    (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Executive Director appointed by the Federal 
Thrift Retirement Investment Board and the Secretary of Defense shall 
jointly issue regulations to implement section 8440e of title 5, United 
States Code (as added by subsection (a)) and section 211 of title 37, 
United States Code (as added by subsection (b)).

SEC. 203. SPECIAL RETENTION INITIATIVE.

    Section 211 of title 37, United States Code, as added by section 
202, is amended by adding at the end the following:
    ``(c) Agency Contributions for Retention in Critical Specialties.--
(1) The Secretary concerned may enter into an agreement with a member 
to make contributions to the Thrift Savings Fund for the benefit of the 
member if the member--
            ``(A) is in a specialty designated by the Secretary as 
        critical to meet requirements (whether such specialty is 
        designated as critical to meet wartime or peacetime 
        requirements); and
            ``(B) commits in such agreement to continue to serve on 
        active duty in that specialty for a period of six years.
    ``(2) Under any agreement entered into with a member under 
paragraph (1), the Secretary shall make contributions to the Fund for 
the benefit of the member for each pay period of the 6-year period of 
the agreement for which the member makes a contribution out of basic 
pay to the Fund under this section. Paragraph (2) of section 8432(c) 
applies to the Secretary's obligation to make contributions under this 
paragraph, except that the reference in such paragraph to contributions 
under paragraph (1) of such section does not apply.''.`