II

106TH CONGRESS

1ST SESSION S. 4

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

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 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. LOTT, Mr. HAGEL, Mr. ABRAHAM, Mr.

MACK, Mrs. HUTCHISON, Mr. SANTORUM, and Mr. COVERDELL) introduced the following bill; which was read twice and referred to the Committee on Armed Services

A BILL

To improve pay and retirement equity for members of the

Armed Forces; and for other purposes.

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 ‘‘Soldiers’, Sailors’, Air5 men’s, and Marines’ Bill of Rights Act of 1999’’.
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1 TITLE I—PAY AND ALLOWANCES

2 SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTUR3 ING OF BASIC PAY.

4 (a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any

5 adjustment required by section 1009 of title 37, United

6 States Code, in the rates of monthly basic pay authorized

7 members of the uniformed services by section 203(a) of

8 such title to become effective during fiscal year 2000 shall

9 not be made.

10 (b) JANUARY 1, INCREASE IN BASIC PAY.—Effective

11 on January 1, 2000, the rates of monthly basic pay for

12 members of the uniformed services shall be increased by

13 4.8 percent.

14 (c) BASIC PAY REFORM.—(1) Effective on July 1,

15 2000, the rates of monthly basic pay for members of the

16 uniformed services within each pay grade are as follows:
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RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES

Pay

Grade

Years of service (computed under section 205 of title 37, United States Code)

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 $11,318.40O–9 .... 9,319.50 9,453.60 9,647.70 9,986.40O–8 .... $6,594.30 $6,810.30 $6,953.10 $6,993.30 $7,171.80 $7,471.50 $7,540.80 $7,824.60 $7,906.20 $8,150.10 $8,503.80 8,830.20 9,048.00 9,048.00 9,048.00O–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 8,025.60O–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 7,049.10O–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 5,751.90O–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 4,808.70O–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 4,139.10O–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 3,071.10O–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

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER

O–3E2 $3,364.80 $3,525.90 $3,702.60 $3,850.20 $4,040.40 $4,200.30 $4,291.80 $4,416.90 $4,416.90 $4,416.90 $4,416.90 $4,416.90O–2E2 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 3,556.20O–1E2 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 $4,937.40W–4 .... $2,592.00 $2,788.50 $2,868.60 $2,947.50 $3,083.40 $3,217.20 $3,352.80 $3,485.10 $3,622.20 $3,753.60 $3,888.00 4,019.00 4,155.60 4,289.70 4,427.10W–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 3,900.90W–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 3,378.30W–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 .... $3,015.30 $3,083.40 $3,169.80 $3,271.50 $3,373.20 $3,473.40 $3,609.30 $3,744.00 $3,915.80E–8 .... $2,528.40 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
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RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES—Continued

Pay

Grade

Years of service (computed under section 205 of title 37, United States Code)

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

ENLISTED MEMBERS

E–7 .... $1,765.80 $1,927.80 $2,001.00 $2,073.00 $2,147.70 $2,220.90 2,294.10 2,367.30 2,439.30 2,514.00 2,588.10 2,660.40 2,787.60 2,926.20 3,134.40E–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 2,285.70E–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 1,936.20E–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 1,593.90E–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 1,335.90E–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 1,127.40E–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 1,005.60E–1 4 .. 930.00

1Rates 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.2Rates apply to commissioned officers with over 4 years of active duty service as an enlisted member or warrant officer.3Rates apply for personnel in grade E–1 who have served 4 months or more on active duty.4Rates apply for personnel in grade E–1 who have served less than 4 months on active duty.
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1 (2) Subject to paragraph (4), the rate of monthly

2 basic pay for an officer of the uniformed services in grade

3 O–10 is $12,441.00 while the officer is serving as Chair4 man or Vice Chairman of the Joint Chiefs of Staff, Chief

5 of Staff of the Army, Chief of Naval Operations, Chief

6 of Staff of the Air Force, Commandant of the Marine

7 Corps, or Commandant of the Coast Guard, regardless of

8 cumulative years of service computed under section 205

9 of title 37, United States Code.

10 (3) The rate monthly basic pay for a member of the

11 uniformed services grade E–9 is $4,701.00 while the mem12 ber is serving as Sergeant Major of the Army, Master

13 Chief Petty Officer of the Navy or Coast Guard, Chief

14 Master Sergeant of the Air Force, or Sergeant Major of

15 the Marine Corps, regardless of cumulative years of serv16 ice computed under section 205 of title 37, United States

17 Code.

18 (4) The limitation in section 5303(f) of title 5, United

19 States Code, applies to the adjustments of rates of month20 ly basic pay made by paragraphs (1) and (2).

21 SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FIS22 CAL YEAR 2000.

23 (a) ECI+0.5 PERCENT INCREASE FOR ALL MEM24 BERS.—Section 1009(c) of title 37, United States Code,

25 is amended to read as follows:
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1 ‘‘(c) ECI+0.5 PERCENT INCREASE FOR ALL MEM2 BERS.—Subject to subsection (d), an adjustment taking

3 effect under this section during a fiscal year shall provide

4 all eligible members with an increase in the monthly basic

5 pay by the percentage equal to the sum of one percent

6 plus the percentage calculated as provided under section

7 5303(a) of title 5 (without regard to whether rates of pay

8 under the statutory pay systems are actually increased

9 during such fiscal year under that section by the percent10 age so calculated).’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall take effect on October 1, 2000.

13 SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.

14 (a) ALLOWANCE.—(1) Chapter 7 of title 37, United

15 States Code, is amended by inserting after section 402 the

16 following new section:

17 ‘‘§ 402a. Special subsistence allowance

18 ‘‘(a) ENTITLEMENT.—Upon the application of an eli19 gible member of a uniformed service, the Secretary con20 cerned shall pay the member a special subsistence allow21 ance for each month for which the member is eligible to

22 receive food stamp assistance.

23 ‘‘(b) TERMINATION OF ENTITLEMENT.—The entitle24 ment of a member to receive payment of a special subsist-
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1 ence allowance terminates upon the occurrence of any of

2 the following events:

3 ‘‘(1) Termination of eligibility for food stamp

4 assistance.

5 ‘‘(2) Payment of the special subsistence allow6 ance for 12 consecutive months.

7 ‘‘(3) Promotion of the member to a higher

8 grade.

9 ‘‘(4) Transfer of the member in a permanent

10 change of station.

11 ‘‘(c) REESTABLISHED ENTITLEMENT.—(1) After a

12 termination of a member’s entitlement to the special sub13 sistence allowance under subsection (b), the Secretary con14 cerned shall resume payment of the special subsistence al15 lowance to the member if the Secretary determines, upon

16 further application of the member, that the member is eli17 gible to receive food stamps.

18 ‘‘(2) Payments resumed under this subsection shall

19 terminate under subsection (b) upon the occurrence of an

20 event described in that subsection after the resumption of

21 the payments.

22 ‘‘(3) The number of times that payments are resumed

23 under this subsection is unlimited.

24 ‘‘(d) DOCUMENTATION OF ELIGIBILITY.—A member

25 of the uniformed services applying for the special subsist-
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1 ence allowance under this section shall furnish the Sec2 retary concerned with such evidence of the member’s eligi3 bility for food stamp assistance as the Secretary may re4 quire in connection with the application.

5 ‘‘(e) AMOUNT OF ALLOWANCE.—The monthly

6 amount of the special subsistence allowance under this

7 section is $180.

8 ‘‘(f) RELATIONSHIP TO BASIC ALLOWANCE FOR SUB9 SISTENCE.—The special subsistence allowance under this

10 section is in addition to the basic allowance for subsistence

11 under section 402 of this title.

12 ‘‘(g) FOOD STAMP ASSISTANCE DEFINED.—In this

13 section, the term ‘food stamp assistance’ means assistance

14 under the Food Stamp Act of 1977 (7 U.S.C. 2011 et

15 seq.).

16 ‘‘(h) TERMINATION OF AUTHORITY.—No special sub17 sistence allowance may be made under this section for any

18 month beginning after September 30, 2004.’’.

19 (2) The table of sections at the beginning of such

20 chapter is amended by inserting after the item relating

21 to section 402 the following:

‘‘402a. Special subsistence allowance.’’.

22 (b) EFFECTIVE DATE.—Section 402a of title 37,

23 United States Code, shall take effect on the first day of

24 the first month that begins not less than 180 days after

25 the date of the enactment of this Act.
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1 (c) ANNUAL REPORT.—(1) Not later than March 1

2 of each year after 1999, the Secretary of Defense shall

3 submit to Congress a report setting forth the number of

4 members of the uniformed services who are eligible for as5 sistance under the Food Stamp Act of 1977 (7 U.S.C.

6 2011 et seq.).

7 (2) In preparing the report, the Secretary shall con8 sult with the Secretary of Transportation (with respect to

9 the Coast Guard), the Secretary of Health and Human

10 Services (with respect to the commissioned corps of the

11 Public Health Service), and the Secretary of Commerce

12 (with respect to the commissioned officers of the National

13 Oceanic and Atmospheric Administration), who shall pro14 vide the Secretary of Defense with any information that

15 the Secretary determines necessary to prepare the report.

16 (3) No report is required under this section after

17 March 1, 2004.

18 TITLE II—RETIREMENT

19 BENEFITS

20 SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTER21 ING UNIFORMED SERVICES ON OR AFTER AU22 GUST 1, 1986.

23 (a) REDUCED RETIRED PAY ONLY FOR MEMBERS

24 ELECTING 15-YEAR SERVICE BONUS.—(1) Paragraph (2)

25 of section 1409(b) of title 10, United States Code, is
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1 amended by inserting after ‘‘July 31, 1986,’’ the following:

2 ‘‘has elected to receive a bonus under section 318 of title

3 37,’’.

4 (2)(A) Paragraph (2)(A) of section 1401a(b) of title

5 10, United States Code, is amended by striking ‘‘The Sec6 retary shall increase the retired pay of each member and

7 former member who first became a member of a uniformed

8 service before August 1, 1986,’’ and inserting ‘‘Except as

9 otherwise provided in this subsection, the Secretary shall

10 increase the retired pay of each member and former mem11 ber’’.

12 (B) Paragraph (3) of such section 1401a(b) is

13 amended by inserting after ‘‘August 1, 1986,’’ the follow14 ing: ‘‘and has elected to receive a bonus under section 318

15 of title 37,’’.

16 (3) Section 1410 of title 10, United States Code, is

17 amended by inserting after ‘‘August 1, 1986,’’ the follow18 ing: ‘‘who has elected to receive a bonus under section 318

19 of title 37,’’.

20 (b) OPTIONAL LUMP-SUM BONUS AT 15 YEARS OF

21 SERVICE.—(1) Chapter 5 of title 37, United States Code,

22 is amended by adding at the end the following new section:
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1 ‘‘§ 318. Special pay: 15-year service bonus elected by

2 members entering on or after August 1,

3 1986

4 ‘‘(a) PAYMENT OF BONUS.—The Secretary concerned

5 shall pay a bonus to a member of a uniformed service who

6 is eligible and elects to receive the bonus under this sec7 tion.

8 ‘‘(b) ELIGIBILITY FOR BONUS.—A member of a uni9 formed service serving on active duty is eligible to receive

10 a bonus under this section if the member—

11 ‘‘(1) first became a member of a uniformed

12 service on or after August 1, 1986;

13 ‘‘(2) has completed 15 years of active duty in

14 the uniformed services; and

15 ‘‘(3) if not already obligated to remain on active

16 duty for a period that would result in at least 20

17 years of active-duty service, executes a written

18 agreement (prescribed by the Secretary concerned)

19 to remain continuously on active duty for five years

20 after the date of the completion of 15 years of ac21 tive-duty service.

22 ‘‘(c) ELECTION.—(1) A member eligible to receive a

23 bonus under this section may elect to receive the bonus.

24 The election shall be made in such form and within such

25 period as the Secretary concerned requires.
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1 ‘‘(2) An election made under this subsection is irrev2 ocable.

3 ‘‘(d) NOTIFICATION OF ELIGIBILITY.—The Secretary

4 concerned shall transmit a written notification of the op5 portunity to elect to receive a bonus under this section

6 to each member who is eligible (or upon execution of an

7 agreement described in subsection (b)(3), would be eligi8 ble) to receive the bonus. The Secretary shall complete the

9 notification within 180 days after the date on which the

10 member completes 15 years of active duty. The notifica11 tion shall include the procedures for electing to receive the

12 bonus and an explanation of the effects under sections

13 1401a, 1409, and 1410 of title 10 that such an election

14 has on the computation of any retired or retainer pay

15 which the member may become eligible to receive.

16 ‘‘(e) FORM AND AMOUNT OF BONUS.—A bonus

17 under this section shall be paid in one lump sum of

18 $30,000.

19 ‘‘(f) TIME FOR PAYMENT.—Payment of a bonus to

20 a member electing to receive the bonus under this section

21 shall be made not later than the first month that begins

22 on or after the date that is 60 days after the Secretary

23 concerned receives from the member an election that satis24 fies the requirements imposed under subsection (c).
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1 ‘‘(g) REPAYMENT OF BONUS.—(1) If a person paid

2 a bonus under this section fails to complete the total pe3 riod of active duty specified in the agreement entered into

4 under subsection (b)(3), the person shall refund to the

5 United States the amount that bears the same ratio to

6 the amount of the bonus payment as the unserved part

7 of that total period bears to the total period.

8 ‘‘(2) Subject to paragraph (3), an obligation to reim9 burse the United States imposed under paragraph (1) is

10 for all purposes a debt owed to the United States.

11 ‘‘(3) The Secretary concerned may waive, in whole

12 or in part, a refund required under paragraph (1) if the

13 Secretary concerned determines that recovery would be

14 against equity and good conscience or would be contrary

15 to the best interests of the United States.

16 ‘‘(4) A discharge in bankruptcy under title 11 that

17 is entered less than five years after the termination of an

18 agreement under this section does not discharge the mem19 ber signing such agreement from a debt arising under the

20 agreement or this subsection.’’.

21 (2) The table of sections at the beginning of such

22 chapter is amended by adding at the end the following

23 new item:

‘‘318. Special pay: 15-year service bonus elected by members entering on or

after August 1, 1986.’’.
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1 (c) CONFORMING AMENDMENTS TO SURVIVOR BENE2 FIT PLAN PROVISIONS.—(1) Section 1451(h)(3) of title

3 10, United States Code, is amended by inserting ‘‘OF CER4 TAIN MEMBERS’’ after ‘‘RETIREMENT’’.

5 (2) Section 1452(i) of such title is amended by strik6 ing ‘‘When the retired pay’’ and inserting ‘‘Whenever the

7 retired pay’’.

8 (d) RELATED TECHNICAL AMENDMENTS.—(1) Sec9 tion 1401a(b) of title 10, United States Code, is

10 amended—

11 (A) by striking the heading for paragraph (1)

12 and inserting ‘‘INCREASE REQUIRED.—’’;

13 (B) by striking the heading for paragraph (2)

14 and inserting ‘‘PERCENTAGE INCREASE.—’’; and

15 (C) by striking the heading for paragraph (3)

16 and inserting ‘‘REDUCED PERCENTAGE FOR CER17 TAIN POST-AUGUST 1, 1986 MEMBERS.—’’.

18 (2) Section 1409(b)(2) of title 10, United States

19 Code, is amended by inserting ‘‘CERTAIN’’ after ‘‘REDUC20 TION APPLICABLE TO’’ in the paragraph heading.

21 (3)(A) The heading of section 1410 of such title is

22 amended by inserting ‘‘certain’’ before ‘‘members’’.

23 (B) The item relating to such section in the table of

24 sections at the beginning of chapter 71 of title 10, United
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1 States Code, is amended by inserting ‘‘certain’’ before

2 ‘‘members’’.

3 SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.

4 (a) PARTICIPATION AUTHORITY.—(1)(A) Chapter 3

5 of title 37, United States Code, is amended by adding at

6 the end the following:

7 ‘‘§ 211. Participation in Thrift Savings Plan

8 ‘‘(a) AUTHORITY.—A member of the uniformed serv9 ices serving on active duty for a period of more than 30

10 days may participate in the Thrift Savings Plan in accord11 ance with section 8440e of title 5.

12 ‘‘(b) RULE OF CONSTRUCTION REGARDING SEPARA13 TION.—For the purposes of section 8440e of title 5, the

14 following actions shall be considered separation of a mem15 ber of the uniformed services from Government employ16 ment:

17 ‘‘(1) Release of the member from active-duty

18 service (not followed by a resumption of active-duty

19 service within 30 days after the effective date of the

20 release).

21 ‘‘(2) Transfer of the member by the Secretary

22 concerned to a retired list maintained by the Sec23 retary.’’.

24 (B) The table of sections at the beginning of such

25 chapter is amended by adding at the end the following:

‘‘211. Participation in Thrift Savings Plan.’’.
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1 (2)(A) Subchapter III of chapter 84 of title 5, United

2 States Code, is amended by adding at the end the follow3 ing:

4 ‘‘§ 8440e. Members of the uniformed services on ac5 tive duty

6 ‘‘(a) PARTICIPATION AUTHORIZED.—(1) A member

7 of the uniformed services authorized to participate in the

8 Thrift Savings Plan under section 211(a) of title 37 may

9 contribute to the Thrift Savings Fund.

10 ‘‘(2) An election to contribute to the Thrift Savings

11 Fund under paragraph (1) may be made only during a

12 period provided under section 8432(b) for individuals sub13 ject to this chapter.

14 ‘‘(b) APPLICABILITY OF THRIFT SAVINGS PLAN PRO15 VISIONS.—Except as otherwise provided in this section,

16 the provisions of this subchapter and subchapter VII of

17 this chapter shall apply with respect to members of the

18 uniformed services making contributions to the Thrift

19 Savings Fund as if such members were employees within

20 the meaning of section 8401(11).

21 ‘‘(c) MAXIMUM CONTRIBUTION FROM BASIC PAY.—

22 The amount contributed by a member of the uniformed

23 services for any pay period out of basic pay may not ex24 ceed 5 percent of such member’s basic pay for such pay

25 period.
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1 ‘‘(d) OTHER MEMBER CONTRIBUTIONS.—A member

2 of the uniformed services making contributions to the

3 Thrift Savings Fund out of basic pay may also contribute

4 (by direct transfer to the Fund) any part of any special

5 or incentive pay that the member receives under chapter

6 5 of title 37. No contribution made under this subsection

7 shall be subject to, or taken into account for purposes of,

8 the first sentence of section 8432(d), relating to the appli9 cability of any limitation under section 415 of the Internal

10 Revenue Code of 1986.

11 ‘‘(e) AGENCY CONTRIBUTIONS GENERALLY PROHIB12 ITED.—Except as provided in section 211(c) of title 37,

13 no contribution under section 8432(c) of this title may be

14 made for the benefit of a member of the uniformed serv15 ices making contributions to the Thrift Savings Fund

16 under subsection (a).

17 ‘‘(f) BENEFITS AND ELECTIONS OF BENEFITS.—In

18 applying section 8433 to a member of the uniformed serv19 ices who has an account balance in the Thrift Savings

20 Fund—

21 ‘‘(1) any reference in such section to separation

22 from Government employment shall be construed to

23 refer to an action described in section 211(b) of title

24 37; and
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1 ‘‘(2) the reference in section 8433(g)(1) to con2 tributions made under section 8432(a) shall be

3 treated as being a reference to contributions made to

4 the Fund by the member, whether made under sec5 tion 8351, 8432(a), or this section.

6 ‘‘(g) BASIC PAY DEFINED.—For purposes of this sec7 tion, the term ‘basic pay’ means basic pay that is payable

8 under section 204 of title 37.’’.

9 (B) The table of sections at the beginning of chapter

10 84 of title 5, United States Code, is amended by adding

11 after the item relating to section 8440d the following:

‘‘8440e. Members of the uniformed services on active duty.’’.

12 (3) Section 8432b(b) of title 5, United States Code,

13 is amended—

14 (A) in paragraph (1), by striking ‘‘Each em15 ployee’’ and inserting ‘‘Except as provided in para16 graph (4), each employee’’;

17 (B) by redesignating paragraph (4) as para18 graph (5); and

19 (C) by inserting after paragraph (3) the follow20 ing new paragraph (4)

21 ‘‘(4) No contribution may be made under this section

22 for a period for which an employee made a contribution

23 under section 8440e.’’.

24 (4) Section 8473 of title 5, United States Code, is

25 amended—
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1 (A) in subsection (a), by striking ‘‘14 mem2 bers’’ and inserting ‘‘15 members’’; and

3 (B) in subsection (b)—

4 (i) by striking ‘‘14 members’’ and inserting

5 ‘‘15 members’’;

6 (ii) by striking ‘‘and’’ at the end of para7 graph (8);

8 (iii) by striking the period at the end of

9 paragraph (9) and inserting ‘‘; and’’; and

10 (iv) by adding at the end the following:

11 ‘‘(10) 1 shall be appointed to represent partici12 pants (under section 8440e) who are members of the

13 uniformed services.’’.

14 (5) Paragraph (11) of section 8351(b) of title 5,

15 United States Code, is redesignated as paragraph (8).

16 (c) REGULATIONS.—Not later than 180 days after

17 the date of the enactment of this Act, the Executive Direc18 tor appointed by the Federal Thrift Retirement Invest19 ment Board and the Secretary of Defense shall jointly

20 issue regulations to implement section 8440e of title 5,

21 United States Code (as added by subsection (a)) and sec22 tion 211 of title 37, United States Code (as added by sub23 section (b)).
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1 SEC. 203. SPECIAL RETENTION INITIATIVE.

2 Section 211 of title 37, United States Code, as added

3 by section 202, is amended by adding at the end the fol4 lowing:

5 ‘‘(c) AGENCY CONTRIBUTIONS FOR RETENTION IN

6 CRITICAL SPECIALTIES.—(1) The Secretary concerned

7 may enter into an agreement with a member to make con8 tributions to the Thrift Savings Fund for the benefit of

9 the member if the member—

10 ‘‘(A) is in a specialty designated by the Sec11 retary as critical to meet requirements (whether

12 such specialty is designated as critical to meet war13 time or peacetime requirements); and

14 ‘‘(B) commits in such agreement to continue to

15 serve on active duty in that specialty for a period of

16 six years.

17 ‘‘(2) Under any agreement entered into with a mem18 ber under paragraph (1), the Secretary shall make con19 tributions to the Fund for the benefit of the member for

20 each pay period of the 6-year period of the agreement for

21 which the member makes a contribution out of basic pay

22 to the Fund under this section. Paragraph (2) of section

23 8432(c) applies to the Secretary’s obligation to make con24 tributions under this paragraph, except that the reference
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1 in such paragraph to contributions under paragraph (1)

2 of such section does not apply.’’.

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