Calendar No. 13

106TH CONGRESS

1ST SESSION S. 4

[Report No. 106–1]

A BILL

To improve pay and retirement equity for members

of the Armed Forces; and for other purposes.

FEBRUARY 2, 1999

Reported with an amendment
II

Calendar No. 13

106TH CONGRESS

1ST SESSION S. 4

[Report No. 106–1]

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

FEBRUARY 2, 1999

Reported by Mr. WARNER, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Soldiers’, Sailors’, Air3 men’s, and Marines’ Bill of Rights Act of 1999’’.

4 TITLE I—PAY AND ALLOWANCES

5 SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTUR6 ING OF BASIC PAY.

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

8 adjustment required by section 1009 of title 37, United

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

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

11 such title to become effective during fiscal year 2000 shall

12 not be made.

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

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

15 members of the uniformed services shall be increased by

16 4.8 percent.

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

18 2000, the rates of monthly basic pay for members of the

19 uniformed services within each pay grade are as follows:

COMMISSIONED OFFICERS 1

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–10 2 $0.00 $0.00 $0.00 $0.00 $0.00

O–9 ... 0.00 0.00 0.00 0.00 0.00

O–8 ... 6,594.30 6,810.30 6,953.10 6,993.30 7,171.80

O–7 ... 5,479.50 5,851.80 5,851.50 5,894.40 6,114.60

O–6 ... 4,061.10 4,461.60 4,754.40 4,754.40 4,772.40

O–5 ... 3,248.40 3,813.90 4,077.90 4,127.70 4,291.80

O–4 ... 2,737.80 3,333.90 3,556.20 3,606.04 3,812.40

O–3 3 2,544.00 2,884.20 3,112.80 3,364.80 3,525.90

O–2 3 2,218.80 2,527.20 2,910.90 3,000.00 3,071.10

O–1 3 1,926.30 2,004.90 2,423.10 2,423.10 2,423.10
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COMMISSIONED OFFICERS 1

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

Over 8 Over 10 Over 12 Over 14 Over 16

O–10 2 $0.00 $0.00 $0.00 $0.00 $0.00

O–9 ... 0.00 0.00 0.00 0.00 0.00

O–8 ... 7,471.50 7,540.80 7,824.60 7,906.20 8,150.10

O–7 ... 6,282.00 6,475.80 6,669.00 6,863.10 7,471.50

O–6 ... 4,976.70 5,004.00 5,004.00 5,169.30 5,791.20

O–5 ... 4,291.80 4,420.80 4,659.30 4,971.90 5,286.00

O–4 ... 3,980.40 4,251.50 4,464.00 4,611.00 4,758.90

O–3 3 3,702.60 3,850.20 4,040.40 4,139.10 4,139.10

O–2 3 3,071.10 3,071.10 3,071.10 3,071.10 3,071.10

O–1 3 2,423.10 2,423.10 2,423.10 2,423.10 2,423.10

Over 18 Over 20 Over 22 Over 24 Over 26

O–10 2 $0.00 $10,655.10 $10,707.60 $10,930.20 $11,318.40

O–9 ... 0.00 9,319.50 9,453.60 9,647.70 9,986.40

O–8 ... 8,503.80 8,830.20 9,048.00 9,048.00 9,048.00

O–7 ... 7,985.40 7,985.40 7,985.40 7,985.40 8,025.60

O–6 ... 6,086.10 6,381.30 6,549.00 6,719.10 7,049.10

O–5 ... 5,436.00 5,583.60 5,751.90 5,751.90 5,751.90

O–4 ... 4,808.70 4,808.70 4,808.70 4,808.70 4,808.70

O–3 3 4,139.10 4,139.10 4,139.10 4,139.10 4,139.10

O–2 3 3,071.10 3,071.10 3,071.10 3,071.10 3,071.10

O–1 3 2,423.10 2,423.10 2,423.10 2,423.10 2,423.10

1 Basic pay for these officers is limited to the rate of basic pay for level V of the Executive

Schedule. 2 While 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, basic pay for this grade is calculated to be

$12,441.00, regardless of cumulative years of service computed under section 205 of title 37,

United States Code. Nevertheless, basic pay for these officers is limited to the rate of basic pay for

level V of the Executive Schedule. 3 Does not apply to commissioned officers who have been credited with over 4 years of active

duty service as an enlisted member or warrant officer.
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE

AS AN ENLISTED MEMBER OR WARRANT OFFICER

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–

3E4 $0.00 $0.00 $0.00 $3,364.80 $3,525.90

O–

2E4 0.00 0.00 0.00 3,009.00 3,071.10

O–

1E4 0.00 0.00 0.00 2,423.10 2,588.40

Over 8 Over 10 Over 12 Over 14 Over 16

O–

3E4 $3,702.60 $3,850.20 $4,040.40 $4,200.30 $4,291.80

O–

2E4 3,168.60 3,333.90 3,461.40 3,556.20 3,556.20

O–

1E4 2,683.80 2,781.30 2,877.60 3,009.00 3,009.00

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E $4,416.90 $4,416.90 $4,416.90 $4,416.90 $4,416.90

O–2E 3,556.20 3,556.20 3,556.20 3,556.20 3,556.20

O–1E 3,009.00 3,009.00 3,009.00 3,009.00 3,009.00

WARRANT OFFICERS

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–5 .. $0.00 $0.00 $0.00 $0.00 $0.00

W–4 .. 2,592.00 2,788.50 2,868.60 2,947.50 3,083.40

W–3 .. 2,355.90 2,555.40 2,555.40 2,588.40 2,694.30

W–2 .. 2,063.40 2,232.60 2,232.60 2,305.80 2,423.10

W–1 .. 1,719.00 1,971.00 1,971.00 2,135.70 2,232.60

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 .. $0.00 $0.00 $0.00 $0.00 $0.00

W–4 .. 3,217.20 3,352.80 3,485.10 3,622.20 3,753.60

W–3 .. 2,814.90 2,974.20 3,071.10 3,177.00 3,298.20

W–2 .. 2,555.40 2,852.60 2,749.80 2,844.30 2,949.00

W–1 .. 2,332.80 2,433.30 2,533.20 2,634.00 2,734.80

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 .. $0.00 $4,475.10 $4,628.70 $4,782.90 $4,937.40

W–4 .. 3,888.00 4,019.00 4,155.60 4,289.70 4,427.10

W–3 .. 3,418.50 3,539.10 3,659.40 3,780.00 3,900.90

W–2 .. 3,058.40 3,163.80 3,270.90 3,378.30 3,378.30

W–1 .. 2,835.00 2,910.90 2,910.90 2,910.90 2,910.90
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ENLISTED MEMBERS

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–9 4 $0.00 $0.00 $0.00 $0.00 $0.00

E–8 ... 0.00 0.00 0.00 0.00 0.00

E–7 ... 1,765.80 1,927.80 2,001.00 2,073.00 2,147.70

E–6 ... 1,518.90 1,678.20 1,752.60 1,824.30 1,899.30

E–5 ... 1,332.60 1,494.00 1,566.00 1,640.40 1,714.50

E–4 ... 1,242.90 1,373.10 1,447.20 1,520.10 1,593.90

E–3 ... 1,171.50 1,260.60 1,334.10 1,335.90 1,335.90

E–2 ... 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40

E–1 ... 5 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60

Over 8 Over 10 Over 12 Over 14 Over 16

E–9 4 $0.00 $3,015.30 $3,083.40 $3,169.80 $3,271.50

E–8 ... 2,528.40 2,601.60 2,669.70 2,751.60 2,840.10

E–7 ... 2,220.90 2,294.10 2,367.30 2,439.30 2,514.00

E–6 ... 1,973.10 2,047.20 2,118.60 2,191.50 2,244.60

E–5 ... 1,789.50 1,861.50 1,936.20 1,936.20 1,936.20

E–4 ... 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90

E–3 ... 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

E–1 ... 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60

Over 18 Over 20 Over 22 Over 24 Over 26

E–9 4 $3,373.20 $3,473.40 $3,609.30 $3,744.00 $3,915.80

E–8 ... 2,932.50 3,026.10 3,161.10 3,295.50 3,483.60

E–7 ... 2,588.10 2,660.40 2,787.60 2,926.20 3,134.40

E–6 ... 2,283.30 2,283.30 2,285.70 2,285.70 2,285.70

E–5 ... 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20

E–4 ... 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90

E–3 ... 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 1,123.20 1,127.40

E–1 ... 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60

4 While serving 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, basic pay for this grade is $4,701.00, regardless of cumulative years of

service computed under section 205 of title 37, United States Code. 5 In the case of members in the grade E–1 who have served less than 4 months on active duty,

basic pay is $930.30.
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1 SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FIS2 CAL YEAR 2000.

3 (a) ECI+0.5 PERCENT INCREASE FOR ALL MEM4 BERS.—Section 1009(c) of title 37, United States Code,

5 is amended to read as follows:

6 ‘‘(c) ECI+0.5 PERCENT INCREASE FOR ALL MEM7 BERS.—Subject to subsection (d), an adjustment taking

8 effect under this section during a fiscal year shall provide

9 all eligible members with an increase in the monthly basic

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

11 plus the percentage calculated as provided under section

12 5303(a) of title 5 (without regard to whether rates of pay

13 under the statutory pay systems are actually increased

14 during such fiscal year under that section by the percent15 age so calculated).’’.

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

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

18 SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.

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

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

21 following new section:

22 ‘‘§ 402a. Special subsistence allowance

23 ‘‘(a) ENTITLEMENT.—Upon the application of an eli24 gible member of a uniformed service, the Secretary con25 cerned shall pay the member a special subsistence allow-
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1 ance for each month for which the member is eligible to

2 receive food stamp assistance.

3 ‘‘(b) TERMINATION OF ENTITLEMENT.—The entitle4 ment of a member to receive payment of a special subsist5 ence allowance terminates upon the occurrence of any of

6 the following events:

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

8 assistance.

9 ‘‘(2) Payment of the special subsistence allow10 ance for 12 consecutive months.

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

12 grade.

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

14 change of station.

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

16 termination of a member’s entitlement to the special sub17 sistence allowance under subsection (b), the Secretary con18 cerned shall resume payment of the special subsistence al19 lowance to the member if the Secretary determines, upon

20 further application of the member, that the member is eli21 gible to receive food stamps.

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

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

24 event described in that subsection after the resumption of

25 the payments.
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1 ‘‘(3) The number of times that payments are resumed

2 under this subsection is unlimited.

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

4 of the uniformed services applying for the special subsist5 ence allowance under this section shall furnish the Sec6 retary concerned with such evidence of the member’s eligi7 bility for food stamp assistance as the Secretary may re8 quire in connection with the application.

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

10 amount of the special subsistence allowance under this

11 section is $180.

12 ‘‘(f) RELATIONSHIP TO BASIC ALLOWANCE FOR SUB13 SISTENCE.—The special subsistence allowance under this

14 section is in addition to the basic allowance for subsistence

15 under section 402 of this title.

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

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

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

19 seq.).

20 ‘‘(h) TERMINATION OF AUTHORITY.—No special sub21 sistence allowance may be made under this section for any

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

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

24 chapter is amended by inserting after the item relating

25 to section 402 the following:

‘‘402a. Special subsistence allowance.’’.
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1 (b) EFFECTIVE DATE.—Section 402a of title 37,

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

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

4 the date of the enactment of this Act.

5 (c) ANNUAL REPORT.—(1) Not later than March 1

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

7 submit to Congress a report setting forth the number of

8 members of the uniformed services who are eligible for as9 sistance under the Food Stamp Act of 1977 (7 U.S.C.

10 2011 et seq.).

11 (2) In preparing the report, the Secretary shall con12 sult with the Secretary of Transportation (with respect to

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

14 Services (with respect to the commissioned corps of the

15 Public Health Service), and the Secretary of Commerce

16 (with respect to the commissioned officers of the National

17 Oceanic and Atmospheric Administration), who shall pro18 vide the Secretary of Defense with any information that

19 the Secretary determines necessary to prepare the report.

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

21 March 1, 2004.
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1 TITLE II—RETIREMENT

2 BENEFITS

3 SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTER4 ING UNIFORMED SERVICES ON OR AFTER AU5 GUST 1, 1986.

6 (a) REDUCED RETIRED PAY ONLY FOR MEMBERS

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

8 of section 1409(b) of title 10, United States Code, is

9 amended by inserting after ‘‘July 31, 1986,’’ the following:

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

11 37,’’.

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

13 10, United States Code, is amended by striking ‘‘The Sec14 retary shall increase the retired pay of each member and

15 former member who first became a member of a uniformed

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

17 otherwise provided in this subsection, the Secretary shall

18 increase the retired pay of each member and former mem19 ber’’.

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

21 amended by inserting after ‘‘August 1, 1986,’’ the follow22 ing: ‘‘and has elected to receive a bonus under section 318

23 of title 37,’’.

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

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

2 of title 37,’’.

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

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

5 is amended by adding at the end the following new section:

6 ‘‘§ 318. Special pay: 15-year service bonus elected by

7 members entering on or after August 1,

8 1986

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

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

11 is eligible and elects to receive the bonus under this sec12 tion.

13 ‘‘(b) ELIGIBILITY FOR BONUS.—A member of a uni14 formed service serving on active duty is eligible to receive

15 a bonus under this section if the member—

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

17 service on or after August 1, 1986;

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

19 the uniformed services; and

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

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

22 years of active-duty service, executes a written

23 agreement (prescribed by the Secretary concerned)

24 to remain continuously on active duty for five years
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1 after the date of the completion of 15 years of ac2 tive-duty service.

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

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

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

6 period as the Secretary concerned requires.

7 ‘‘(2) An election made under this subsection is irrev8 ocable.

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

10 concerned shall transmit a written notification of the op11 portunity to elect to receive a bonus under this section

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

13 agreement described in subsection (b)(3), would be eligi14 ble) to receive the bonus. The Secretary shall complete the

15 notification within 180 days after the date on which the

16 member completes 15 years of active duty. The notifica17 tion shall include the procedures for electing to receive the

18 bonus and an explanation of the effects under sections

19 1401a, 1409, and 1410 of title 10 that such an election

20 has on the computation of any retired or retainer pay

21 which the member may become eligible to receive.

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

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

24 $30,000.
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1 ‘‘(f) TIME FOR PAYMENT.—Payment of a bonus to

2 a member electing to receive the bonus under this section

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

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

5 concerned receives from the member an election that satis6 fies the requirements imposed under subsection (c).

7 ‘‘(g) REPAYMENT OF BONUS.—(1) If a person paid

8 a bonus under this section fails to complete the total pe9 riod of active duty specified in the agreement entered into

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

11 United States the amount that bears the same ratio to

12 the amount of the bonus payment as the unserved part

13 of that total period bears to the total period.

14 ‘‘(2) Subject to paragraph (3), an obligation to reim15 burse the United States imposed under paragraph (1) is

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

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

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

19 Secretary concerned determines that recovery would be

20 against equity and good conscience or would be contrary

21 to the best interests of the United States.

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

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

24 agreement under this section does not discharge the mem-
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1 ber signing such agreement from a debt arising under the

2 agreement or this subsection.’’.

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

4 chapter is amended by adding at the end the following

5 new item:

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

after August 1, 1986.’’.

6 (c) CONFORMING AMENDMENTS TO SURVIVOR BENE7 FIT PLAN PROVISIONS.—(1) Section 1451(h)(3) of title

8 10, United States Code, is amended by inserting ‘‘OF CER9 TAIN MEMBERS’’ after ‘‘RETIREMENT’’.

10 (2) Section 1452(i) of such title is amended by strik11 ing ‘‘When the retired pay’’ and inserting ‘‘Whenever the

12 retired pay’’.

13 (d) RELATED TECHNICAL AMENDMENTS.—(1) Sec14 tion 1401a(b) of title 10, United States Code, is

15 amended—

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

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

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

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

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

21 and inserting ‘‘REDUCED PERCENTAGE FOR CER22 TAIN POST-AUGUST 1, 1986 MEMBERS.—’’.
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1 (2) Section 1409(b)(2) of title 10, United States

2 Code, is amended by inserting ‘‘CERTAIN’’ after ‘‘REDUC3 TION APPLICABLE TO’’ in the paragraph heading.

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

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

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

7 sections at the beginning of chapter 71 of title 10, United

8 States Code, is amended by inserting ‘‘certain’’ before

9 ‘‘members’’.

10 SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.

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

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

13 the end the following:

14 ‘‘§ 211. Participation in Thrift Savings Plan

15 ‘‘(a) AUTHORITY.—A member of the uniformed serv16 ices serving on active duty for a period of more than 30

17 days may participate in the Thrift Savings Plan in accord18 ance with section 8440e of title 5.

19 ‘‘(b) RULE OF CONSTRUCTION REGARDING SEPARA20 TION.—For the purposes of section 8440e of title 5, the

21 following actions shall be considered separation of a mem22 ber of the uniformed services from Government employ23 ment:

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

25 service (not followed by a resumption of active-duty
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1 service within 30 days after the effective date of the

2 release).

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

4 concerned to a retired list maintained by the Sec5 retary.’’.

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

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

‘‘211. Participation in Thrift Savings Plan.’’.

8 (2)(A) Subchapter III of chapter 84 of title 5, United

9 States Code, is amended by adding at the end the follow10 ing:

11 ‘‘§ 8440e. Members of the uniformed services on ac12 tive duty

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

14 of the uniformed services authorized to participate in the

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

16 contribute to the Thrift Savings Fund.

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

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

19 period provided under section 8432(b) for individuals sub20 ject to this chapter.

21 ‘‘(b) APPLICABILITY OF THRIFT SAVINGS PLAN PRO22 VISIONS.—Except as otherwise provided in this section,

23 the provisions of this subchapter and subchapter VII of

24 this chapter shall apply with respect to members of the

25 uniformed services making contributions to the Thrift
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1 Savings Fund as if such members were employees within

2 the meaning of section 8401(11).

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

4 The amount contributed by a member of the uniformed

5 services for any pay period out of basic pay may not ex6 ceed 5 percent of such member’s basic pay for such pay

7 period.

8 ‘‘(d) OTHER MEMBER CONTRIBUTIONS.—A member

9 of the uniformed services making contributions to the

10 Thrift Savings Fund out of basic pay may also contribute

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

12 or incentive pay that the member receives under chapter

13 5 of title 37. No contribution made under this subsection

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

15 the first sentence of section 8432(d), relating to the appli16 cability of any limitation under section 415 of the Internal

17 Revenue Code of 1986.

18 ‘‘(e) AGENCY CONTRIBUTIONS GENERALLY PROHIB19 ITED.—Except as provided in section 211(c) of title 37,

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

21 made for the benefit of a member of the uniformed serv22 ices making contributions to the Thrift Savings Fund

23 under subsection (a).

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

25 applying section 8433 to a member of the uniformed serv-
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1 ices who has an account balance in the Thrift Savings

2 Fund—

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

4 from Government employment shall be construed to

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

6 37; and

7 ‘‘(2) the reference in section 8433(g)(1) to con8 tributions made under section 8432(a) shall be

9 treated as being a reference to contributions made to

10 the Fund by the member, whether made under sec11 tion 8351, 8432(a), or this section.

12 ‘‘(g) BASIC PAY DEFINED.—For purposes of this sec13 tion, the term ‘basic pay’ means basic pay that is payable

14 under section 204 of title 37.’’.

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

16 84 of title 5, United States Code, is amended by adding

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

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

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

19 is amended—

20 (A) in paragraph (1), by striking ‘‘Each em21 ployee’’ and inserting ‘‘Except as provided in para22 graph (4), each employee’’;

23 (B) by redesignating paragraph (4) as para24 graph (5); and
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1 (C) by inserting after paragraph (3) the follow2 ing new paragraph (4)

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

4 for a period for which an employee made a contribution

5 under section 8440e.’’.

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

7 amended—

8 (A) in subsection (a), by striking ‘‘14 mem9 bers’’ and inserting ‘‘15 members’’; and

10 (B) in subsection (b)—

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

12 ‘‘15 members’’;

13 (ii) by striking ‘‘and’’ at the end of para14 graph (8);

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

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

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

18 ‘‘(10) 1 shall be appointed to represent partici19 pants (under section 8440e) who are members of the

20 uniformed services.’’.

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

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

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

24 the date of the enactment of this Act, the Executive Direc25 tor appointed by the Federal Thrift Retirement Invest-
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1 ment Board and the Secretary of Defense shall jointly

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

3 United States Code (as added by subsection (a)) and sec4 tion 211 of title 37, United States Code (as added by sub5 section (b)).

6 SEC. 203. SPECIAL RETENTION INITIATIVE.

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

8 by section 202, is amended by adding at the end the fol9 lowing:

10 ‘‘(c) AGENCY CONTRIBUTIONS FOR RETENTION IN

11 CRITICAL SPECIALTIES.—(1) The Secretary concerned

12 may enter into an agreement with a member to make con13 tributions to the Thrift Savings Fund for the benefit of

14 the member if the member—

15 ‘‘(A) is in a specialty designated by the Sec16 retary as critical to meet requirements (whether

17 such specialty is designated as critical to meet war18 time or peacetime requirements); and

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

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

21 six years.

22 ‘‘(2) Under any agreement entered into with a mem23 ber under paragraph (1), the Secretary shall make con24 tributions to the Fund for the benefit of the member for

25 each pay period of the 6-year period of the agreement for
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1 which the member makes a contribution out of basic pay

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

3 8432(c) applies to the Secretary’s obligation to make con4 tributions under this paragraph, except that the reference

5 in such paragraph to contributions under paragraph (1)

6 of such section does not apply.’’.

7 SECTION 1. SHORT TITLE.

8 This Act may be cited as the ‘‘Soldiers’, Sailors’, Air9 men’s, and Marines’ Bill of Rights Act of 1999’’.

10 TITLE I—PAY AND ALLOWANCES

11 SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTUR12 ING OF BASIC PAY.

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

14 adjustment required by section 1009 of title 37, United

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

16 members of the uniformed services by section 203(a) of such

17 title to become effective during fiscal year 2000 shall not

18 be made.

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

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

21 members of the uniformed services shall be increased by 4.8

22 percent.

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

24 2000, the rates of monthly basic pay for members of the

25 uniformed services within each pay grade are as follows:
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COMMISSIONED OFFICERS 1

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–10 2 $0.00 $0.00 $0.00 $0.00 $0.00

O–9 ... 0.00 0.00 0.00 0.00 0.00

O–8 ... 6,594.30 6,810.30 6,953.10 6,993.30 7,171.80

O–7 ... 5,479.50 5,851.80 5,851.50 5,894.40 6,114.60

O–6 ... 4,061.10 4,461.60 4,754.40 4,754.40 4,772.40

O–5 ... 3,248.40 3,813.90 4,077.90 4,127.70 4,291.80

O–4 ... 2,737.80 3,333.90 3,556.20 3,606.04 3,812.40

O–3 3 2,544.00 2,884.20 3,112.80 3,364.80 3,525.90

O–2 3 2,218.80 2,527.20 2,910.90 3,000.00 3,071.10

O–1 3 1,926.30 2,004.90 2,423.10 2,423.10 2,423.10

Over 8 Over 10 Over 12 Over 14 Over 16

O–10 2 $0.00 $0.00 $0.00 $0.00 $0.00

O–9 ... 0.00 0.00 0.00 0.00 0.00

O–8 ... 7,471.50 7,540.80 7,824.60 7,906.20 8,150.10

O–7 ... 6,282.00 6,475.80 6,669.00 6,863.10 7,471.50

O–6 ... 4,976.70 5,004.00 5,004.00 5,169.30 5,791.20

O–5 ... 4,291.80 4,420.80 4,659.30 4,971.90 5,286.00

O–4 ... 3,980.40 4,251.50 4,464.00 4,611.00 4,758.90

O–3 3 3,702.60 3,850.20 4,040.40 4,139.10 4,139.10

O–2 3 3,071.10 3,071.10 3,071.10 3,071.10 3,071.10

O–1 3 2,423.10 2,423.10 2,423.10 2,423.10 2,423.10

Over 18 Over 20 Over 22 Over 24 Over 26

O–10 2 $0.00 $10,655.10 $10,707.60 $10,930.20 $11,318.40

O–9 ... 0.00 9,319.50 9,453.60 9,647.70 9,986.40

O–8 ... 8,503.80 8,830.20 9,048.00 9,048.00 9,048.00

O–7 ... 7,985.40 7,985.40 7,985.40 7,985.40 8,025.60

O–6 ... 6,086.10 6,381.30 6,549.00 6,719.10 7,049.10

O–5 ... 5,436.00 5,583.60 5,751.90 5,751.90 5,751.90

O–4 ... 4,808.70 4,808.70 4,808.70 4,808.70 4,808.70

O–3 3 4,139.10 4,139.10 4,139.10 4,139.10 4,139.10

O–2 3 3,071.10 3,071.10 3,071.10 3,071.10 3,071.10

O–1 3 2,423.10 2,423.10 2,423.10 2,423.10 2,423.10

1Basic pay for these officers is limited to the rate of basic pay for level V of the Executive Schedule.2 While 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, basic pay for this grade is calculated to be $12,441.00, regardless of cumulative years of service computed under section 205 of title 37, United States Code. Nevertheless, basic pay for these officers is limited to the rate of basic pay for level V of the Executive

Schedule. 3 Does not apply to commissioned officers who have been credited with over 4 years of active duty

service as an enlisted member or warrant officer.

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE

AS AN ENLISTED MEMBER OR WARRANT OFFICER

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–3E4 $0.00 $0.00 $0.00 $3,364.80 $3,525.90

O–2E4 0.00 0.00 0.00 3,009.00 3,071.10

O–1E4 0.00 0.00 0.00 2,423.10 2,588.40

Over 8 Over 10 Over 12 Over 14 Over 16

O–3E4 $3,702.60 $3,850.20 $4,040.40 $4,200.30 $4,291.80

O–2E4 3,168.60 3,333.90 3,461.40 3,556.20 3,556.20
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE

AS AN ENLISTED MEMBER OR WARRANT OFFICER

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–1E4 2,683.80 2,781.30 2,877.60 3,009.00 3,009.00

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E $4,416.90 $4,416.90 $4,416.90 $4,416.90 $4,416.90

O–2E 3,556.20 3,556.20 3,556.20 3,556.20 3,556.20

O–1E 3,009.00 3,009.00 3,009.00 3,009.00 3,009.00

WARRANT OFFICERS

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–5 ... $0.00 $0.00 $0.00 $0.00 $0.00

W–4 ... 2,592.00 2,788.50 2,868.60 2,947.50 3,083.40

W–3 ... 2,355.90 2,555.40 2,555.40 2,588.40 2,694.30

W–2 ... 2,063.40 2,232.60 2,232.60 2,305.80 2,423.10

W–1 ... 1,719.00 1,971.00 1,971.00 2,135.70 2,232.60

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 ... $0.00 $0.00 $0.00 $0.00 $0.00

W–4 ... 3,217.20 3,352.80 3,485.10 3,622.20 3,753.60

W–3 ... 2,814.90 2,974.20 3,071.10 3,177.00 3,298.20

W–2 ... 2,555.40 2,852.60 2,749.80 2,844.30 2,949.00

W–1 ... 2,332.80 2,433.30 2,533.20 2,634.00 2,734.80

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 ... $0.00 $4,475.10 $4,628.70 $4,782.90 $4,937.40

W–4 ... 3,888.00 4,019.00 4,155.60 4,289.70 4,427.10

W–3 ... 3,418.50 3,539.10 3,659.40 3,780.00 3,900.90

W–2 ... 3,058.40 3,163.80 3,270.90 3,378.30 3,378.30

W–1 ... 2,835.00 2,910.90 2,910.90 2,910.90 2,910.90

ENLISTED MEMBERS

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–9 4 $0.00 $0.00 $0.00 $0.00 $0.00

E–8 ... 0.00 0.00 0.00 0.00 0.00

E–7 ... 1,765.80 1,927.80 2,001.00 2,073.00 2,147.70

E–6 ... 1,518.90 1,678.20 1,752.60 1,824.30 1,899.30

E–5 ... 1,332.60 1,494.00 1,566.00 1,640.40 1,714.50

E–4 ... 1,242.90 1,373.10 1,447.20 1,520.10 1,593.90

E–3 ... 1,171.50 1,260.60 1,334.10 1,335.90 1,335.90

E–2 ... 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40

E–1 ... 5 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60

Over 8 Over 10 Over 12 Over 14 Over 16

E–9 4 $0.00 $3,015.30 $3,083.40 $3,169.80 $3,271.50

E–8 ... 2,528.40 2,601.60 2,669.70 2,751.60 2,840.10

E–7 ... 2,220.90 2,294.10 2,367.30 2,439.30 2,514.00

E–6 ... 1,973.10 2,047.20 2,118.60 2,191.50 2,244.60

E–5 ... 1,789.50 1,861.50 1,936.20 1,936.20 1,936.20

E–4 ... 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90
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ENLISTED MEMBERS

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

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–3 ... 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

E–1 ... 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60

Over 18 Over 20 Over 22 Over 24 Over 26

E–9 4 $3,373.20 $3,473.40 $3,609.30 $3,744.00 $3,915.80

E–8 ... 2,932.50 3,026.10 3,161.10 3,295.50 3,483.60

E–7 ... 2,588.10 2,660.40 2,787.60 2,926.20 3,134.40

E–6 ... 2,283.30 2,283.30 2,285.70 2,285.70 2,285.70

E–5 ... 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20

E–4 ... 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90

E–3 ... 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 1,123.20 1,127.40

E–1 ... 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60

4 While serving 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, basic pay for this grade is $4,701.00, regardless of cumulative years of service computed under section 205 of title 37, United States Code. 5 In the case of members in the grade E–1 who have served less than 4 months on active duty,

basic pay is $930.30.

1 SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FISCAL

2 YEAR 2000.

3 (a) ECI+0.5 PERCENT INCREASE FOR ALL MEM4 BERS.—Section 1009(c) of title 37, United States Code, is

5 amended to read as follows:

6 ‘‘(c) ECI+0.5 PERCENT INCREASE FOR ALL MEM7 BERS.—Subject to subsection (d), an adjustment taking ef8 fect under this section during a fiscal year shall provide

9 all eligible members with an increase in the monthly basic

10 pay by the percentage equal to the sum of one percent plus

11 the percentage calculated as provided under section 5303(a)

12 of title 5 (without regard to whether rates of pay under

13 the statutory pay systems are actually increased during

14 such fiscal year under that section by the percentage so cal15 culated).’’.
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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall take effect on October 1, 2000.

3 SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.

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

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

6 following new section:

7 ‘‘§ 402a. Special subsistence allowance

8 ‘‘(a) ENTITLEMENT.—Upon the application of an eli9 gible member of a uniformed service described in subsection

10 (b), the Secretary concerned shall pay the member a special

11 subsistence allowance for each month for which the member

12 is eligible to receive food stamp assistance.

13 ‘‘(b) COVERED MEMBERS.—An enlisted member re14 ferred to subsection (a) is an enlisted member in pay grade

15 E–5 or below.

16 ‘‘(c) TERMINATION OF ENTITLEMENT.—The entitle17 ment of a member to receive payment of a special subsist18 ence allowance terminates upon the occurrence of any of

19 the following events:

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

21 assistance.

22 ‘‘(2) Payment of the special subsistence allow23 ance for 12 consecutive months.

24 ‘‘(3) Promotion of the member to a higher grade.
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1 ‘‘(4) Transfer of the member in a permanent

2 change of station.

3 ‘‘(d) REESTABLISHED ENTITLEMENT.—(1) After a ter4 mination of a member’s entitlement to the special subsist5 ence allowance under subsection (c), the Secretary con6 cerned shall resume payment of the special subsistence al7 lowance to the member if the Secretary determines, upon

8 further application of the member, that the member is eligi9 ble to receive food stamps.

10 ‘‘(2) Payments resumed under this subsection shall ter11 minate under subsection (c) upon the occurrence of an event

12 described in that subsection after the resumption of the pay13 ments.

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

15 under this subsection is unlimited.

16 ‘‘(e) DOCUMENTATION OF ELIGIBILITY.—A member of

17 the uniformed services applying for the special subsistence

18 allowance under this section shall furnish the Secretary con19 cerned with such evidence of the member’s eligibility for

20 food stamp assistance as the Secretary may require in con21 nection with the application.

22 ‘‘(f) AMOUNT OF ALLOWANCE.—The monthly amount

23 of the special subsistence allowance under this section is

24 $180.
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1 ‘‘(g) RELATIONSHIP TO BASIC ALLOWANCE FOR SUB2 SISTENCE.—The special subsistence allowance under this

3 section is in addition to the basic allowance for subsistence

4 under section 402 of this title.

5 ‘‘(h) FOOD STAMP ASSISTANCE DEFINED.—In this sec6 tion, the term ‘food stamp assistance’ means assistance

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

8 ‘‘(i) TERMINATION OF AUTHORITY.—No special sub9 sistence allowance may be made under this section for any

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

11 (2) The table of sections at the beginning of such chap12 ter is amended by inserting after the item relating to section

13 402 the following:

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

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

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

16 first month that begins not less than 180 days after the date

17 of the enactment of this Act.

18 (c) ANNUAL REPORT.—(1) Not later than March 1 of

19 each year after 1999, the Secretary of Defense shall submit

20 to Congress a report setting forth the number of members

21 of the uniformed services who are eligible for assistance

22 under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).

23 (2) In preparing the report, the Secretary shall consult

24 with the Secretary of Transportation (with respect to the

25 Coast Guard), the Secretary of Health and Human Services
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1 (with respect to the commissioned corps of the Public Health

2 Service), and the Secretary of Commerce (with respect to

3 the commissioned officers of the National Oceanic and At4 mospheric Administration), who shall provide the Secretary

5 of Defense with any information that the Secretary deter6 mines necessary to prepare the report.

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

8 March 1, 2004.

9 TITLE II—RETIREMENT

10 BENEFITS

11 SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTER12 ING UNIFORMED SERVICES ON OR AFTER AU13 GUST 1, 1986.

14 (a) REDUCED RETIRED PAY ONLY FOR MEMBERS

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

16 of section 1409(b) of title 10, United States Code, is amend17 ed by inserting after ‘‘July 31, 1986,’’ the following: ‘‘has

18 elected to receive a bonus under section 318 of title 37,’’.

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

20 10, United States Code, is amended by striking ‘‘The Sec21 retary shall increase the retired pay of each member and

22 former member who first became a member of a uniformed

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

24 otherwise provided in this subsection, the Secretary shall
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1 increase the retired pay of each member and former mem2 ber’’.

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

4 by inserting after ‘‘August 1, 1986,’’ the following: ‘‘and

5 has elected to receive a bonus under section 318 of title 37,’’.

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

7 amended by inserting after ‘‘August 1, 1986,’’ the following:

8 ‘‘who has elected to receive a bonus under section 318 of

9 title 37,’’.

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

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

12 is amended by adding at the end the following new section:

13 ‘‘§ 318. Special pay: 15-year service bonus elected by

14 members entering on or after August 1,

15 1986

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

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

18 is eligible and elects to receive the bonus under this section.

19 ‘‘(b) ELIGIBILITY FOR BONUS.—A member of a uni20 formed service serving on active duty is eligible to receive

21 a bonus under this section if the member—

22 ‘‘(1) first became a member of a uniformed serv23 ice on or after August 1, 1986;

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

25 uniformed services; and
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1 ‘‘(3) if not already obligated to remain on active

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

3 years of active-duty service, executes a written agree4 ment (prescribed by the Secretary concerned) to re5 main continuously on active duty for five years after

6 the date of the completion of 15 years of active-duty

7 service.

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

9 bonus under this section may elect to receive the bonus. The

10 election shall be made in such form and within such period

11 as the Secretary concerned requires.

12 ‘‘(2) An election made under this subsection is irrev13 ocable.

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

15 concerned shall transmit a written notification of the op16 portunity to elect to receive a bonus under this section to

17 each member who is eligible (or upon execution of an agree18 ment described in subsection (b)(3), would be eligible) to

19 receive the bonus. The Secretary shall complete the notifica20 tion within 180 days after the date on which the member

21 completes 15 years of active duty. The notification shall in22 clude the procedures for electing to receive the bonus and

23 an explanation of the effects under sections 1401a, 1409,

24 and 1410 of title 10 that such an election has on the com-
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1 putation of any retired or retainer pay which the member

2 may become eligible to receive.

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

4 this section shall be paid in one lump sum of $30,000.

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

6 member electing to receive the bonus under this section shall

7 be made not later than the first month that begins on or

8 after the date that is 60 days after the Secretary concerned

9 receives from the member an election that satisfies the re10 quirements imposed under subsection (c).

11 ‘‘(g) REPAYMENT OF BONUS.—(1) If a person paid a

12 bonus under this section fails to complete the total period

13 of active duty specified in the agreement entered into under

14 subsection (b)(3), the person shall refund to the United

15 States the amount that bears the same ratio to the amount

16 of the bonus payment as the unserved part of that total pe17 riod bears to the total period.

18 ‘‘(2) Subject to paragraph (3), an obligation to reim19 burse the United States imposed under paragraph (1) is

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

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

22 in part, a refund required under paragraph (1) if the Sec23 retary concerned determines that recovery would be against

24 equity and good conscience or would be contrary to the best

25 interests of the United States.
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1 ‘‘(4) A discharge in bankruptcy under title 11 that is

2 entered less than five years after the termination of an

3 agreement under this section does not discharge the member

4 signing such agreement from a debt arising under the agree5 ment or this subsection.’’.

6 (2) The table of sections at the beginning of such chap7 ter 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.’’.

8 (c) CONFORMING AMENDMENTS TO SURVIVOR BENEFIT

9 PLAN PROVISIONS.—(1) Section 1451(h)(3) of title 10,

10 United States Code, is amended by inserting ‘‘OF CERTAIN

11 MEMBERS’’ after ‘‘RETIREMENT’’.

12 (2) Section 1452(i) of such title is amended by striking

13 ‘‘When the retired pay’’ and inserting ‘‘Whenever the retired

14 pay’’.

15 (d) RELATED TECHNICAL AMENDMENTS.—(1) Section

16 1401a(b) of title 10, United States Code, is amended—

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

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

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

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

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

22 and inserting ‘‘REDUCED PERCENTAGE FOR CERTAIN

23 POST-AUGUST 1, 1986 MEMBERS.—’’.
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1 (2) Section 1409(b)(2) of title 10, United States Code,

2 is amended by inserting ‘‘CERTAIN’’ after ‘‘REDUCTION AP3 PLICABLE TO’’ in the paragraph heading.

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

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

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

7 sections at the beginning of chapter 71 of title 10, United

8 States Code, is amended by inserting ‘‘certain’’ before

9 ‘‘members’’.

10 SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.

11 (a) PARTICIPATION AUTHORITY.—(1)(A) Chapter 3 of

12 title 37, United States Code, is amended by adding at the

13 end the following:

14 ‘‘§ 211. Participation in Thrift Savings Plan

15 ‘‘(a) AUTHORITY.—A member of the uniformed services

16 serving on active duty for a period of more than 30 days

17 may participate in the Thrift Savings Plan in accordance

18 with section 8440e of title 5.

19 ‘‘(b) RULE OF CONSTRUCTION REGARDING SEPARA20 TION.—For the purposes of section 8440e of title 5, the fol21 lowing actions shall be considered separation of a member

22 of the uniformed services from Government employment:

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

24 service (not followed by a resumption of active-duty
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1 service within 30 days after the effective date of the

2 release).

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

4 concerned to a retired list maintained by the Sec5 retary.’’.

6 (B) The table of sections at the beginning of such chap7 ter is amended by adding at the end the following:

‘‘211. Participation in Thrift Savings Plan.’’.

8 (2)(A) Subchapter III of chapter 84 of title 5, United

9 States Code, is amended by adding at the end the following:

10 ‘‘§ 8440e. Members of the uniformed services on active

11 duty

12 ‘‘(a) PARTICIPATION AUTHORIZED.—(1) A member of

13 the uniformed services authorized to participate in the

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

15 contribute to the Thrift Savings Fund.

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

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

18 period provided under section 8432(b) for individuals sub19 ject to this chapter.

20 ‘‘(b) APPLICABILITY OF THRIFT SAVINGS PLAN PROVI21 SIONS.—Except as otherwise provided in this section, the

22 provisions of this subchapter and subchapter VII of this

23 chapter shall apply with respect to members of the uni24 formed services making contributions to the Thrift Savings
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1 Fund as if such members were employees within the mean2 ing of section 8401(11).

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

4 The amount contributed by a member of the uniformed serv5 ices for any pay period out of basic pay may not exceed

6 5 percent of such member’s basic pay for such pay period.

7 ‘‘(d) OTHER MEMBER CONTRIBUTIONS.—A member of

8 the uniformed services making contributions to the Thrift

9 Savings Fund out of basic pay may also contribute (by di10 rect transfer to the Fund) any part of any special or incen11 tive pay that the member receives under section 308, 308a,

12 308f, or 318 of title 37. No contribution made under this

13 subsection shall be subject to, or taken into account for pur14 poses of, the first sentence of section 8432(d), relating to

15 the applicability of any limitation under section 415 of the

16 Internal Revenue Code of 1986.

17 ‘‘(e) AGENCY CONTRIBUTIONS GENERALLY PROHIB18 ITED.—Except as provided in section 211(c) of title 37, no

19 contribution under section 8432(c) of this title may be made

20 for the benefit of a member of the uniformed services making

21 contributions to the Thrift Savings Fund under subsection

22 (a).

23 ‘‘(f) BENEFITS AND ELECTIONS OF BENEFITS.—In ap24 plying section 8433 to a member of the uniformed services

25 who has an account balance in the Thrift Savings Fund—
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1 ‘‘(1) any reference in such section to separation

2 from Government employment shall be construed to

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

4 37; and

5 ‘‘(2) the reference in section 8433(g)(1) to con6 tributions made under section 8432(a) shall be treated

7 as being a reference to contributions made to the

8 Fund by the member, whether made under section

9 8351, 8432(a), or this section.

10 ‘‘(g) BASIC PAY DEFINED.—For purposes of this sec11 tion, the term ‘basic pay’ means basic pay that is payable

12 under section 204 of title 37.’’.

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

14 84 of title 5, United States Code, is amended by adding

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

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

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

17 amended—

18 (A) in paragraph (1), by striking ‘‘Each em19 ployee’’ and inserting ‘‘Except as provided in para20 graph (4), each employee’’;

21 (B) by redesignating paragraph (4) as para22 graph (5); and

23 (C) by inserting after paragraph (3) the follow24 ing new paragraph (4):
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1 ‘‘(4) No contribution may be made under this section

2 for a period for which an employee made a contribution

3 under section 8440e.’’.

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

5 amended—

6 (A) in subsection (a), by striking ‘‘14 members’’

7 and inserting ‘‘15 members’’; and

8 (B) in subsection (b)—

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

10 ‘‘15 members’’;

11 (ii) by striking ‘‘and’’ at the end of para12 graph (8);

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

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

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

16 ‘‘(10) 1 shall be appointed to represent partici17 pants (under section 8440e) who are members of the

18 uniformed services.’’.

19 (5) Paragraph (11) of section 8351(b) of title 5, United

20 States Code, is redesignated as paragraph (8).

21 (b) APPLICABILITY.—The authority of members of the

22 uniformed services to participate in the Thrift Savings

23 Plan under section 211 of title 37, United States Code (as

24 added by subsection (a)(1)), shall take effect on July 1,

25 2000.
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1 (c) REGULATIONS.—Not later than 180 days after the

2 date of the enactment of this Act, the Executive Director

3 appointed by the Federal Thrift Retirement Investment

4 Board shall issue regulations to implement section 8440e

5 of title 5, United States Code (as added by subsection

6 (a)(2)) and section 211 of title 37, United States Code (as

7 added by subsection (a)(1)).

8 SEC. 203. SPECIAL RETENTION INITIATIVE.

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

10 by section 202, is amended by adding at the end the follow11 ing:

12 ‘‘(c) AGENCY CONTRIBUTIONS FOR RETENTION IN

13 CRITICAL SPECIALTIES.—(1) The Secretary concerned may

14 enter into an agreement with a member to make contribu15 tions to the Thrift Savings Fund for the benefit of the mem16 ber if the member—

17 ‘‘(A) is in a specialty designated by the Sec18 retary as critical to meet requirements (whether such

19 specialty is designated as critical to meet wartime or

20 peacetime requirements); and

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

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

23 six years.

24 ‘‘(2) Under any agreement entered into with a member

25 under paragraph (1), the Secretary shall make contribu-
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1 tions to the Fund for the benefit of the member for each

2 pay period of the 6-year period of the agreement for which

3 the member makes a contribution out of basic pay to the

4 Fund under this section. Paragraph (2) of section 8432(c)

5 applies to the Secretary’s obligation to make contributions

6 under this paragraph, except that the reference in such

7 paragraph to contributions under paragraph (1) of such

8 section does not apply.’’.

9 TITLE III—MONTGOMERY GI

10 BILL BENEFITS

11 SEC. 301. INCREASE IN RATES OF EDUCATIONAL ASSIST12 ANCE FOR FULL-TIME EDUCATION.

13 (a) INCREASE.—Section 3015 of title 38, United States

14 Code, is amended—

15 (1) in subsection (a)(1), by striking ‘‘$528’’ and

16 inserting ‘‘$600’’; and

17 (2) in subsection (b)(1), by striking ‘‘$429’’ and

18 inserting ‘‘$488’’.

19 (b) EFFECTIVE DATE.—The amendments made by sub20 section (a) shall take effect on October 1, 1999, and shall

21 apply with respect to educational assistance allowances

22 paid for months after September 1999. However, no adjust23 ment in rates of educational assistance shall be made under

24 subsection (g) of section 3015 of title 38, United States

25 Code, for fiscal year 2000.
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1 SEC. 302. TERMINATION OF REDUCTIONS OF BASIC PAY.

2 (a) REPEALS.—(1) Section 3011 of title 38, United

3 States Code, is amended by striking subsection (b).

4 (2) Section 3012 of such title is amended by striking

5 subsection (c).

6 (3) The amendments made by paragraphs (1) and (2)

7 shall take effect on the date of the enactment of this Act

8 and shall apply to individuals whose initial obligated pe9 riod of active duty under section 3011 or 3012 of title 38,

10 United States Code, as the case may be, begins on or after

11 such date.

12 (b) TERMINATION OF REDUCTIONS IN PROGRESS.—

13 Any reduction in the basic pay of an individual referred

14 to in section 3011(b) of title 38, United States Code, by

15 reason of such section 3011(b), or of any individual referred

16 to in section 3012(c) of such title by reason of such section

17 3012(c), as of the date of the enactment of this Act shall

18 cease commencing with the first month beginning after such

19 date, and any obligation of such individual under such sec20 tion 3011(b) or 3012(c), as the case may be, as of the day

21 before such date shall be deemed to be fully satisfied as of

22 such date.

23 (c) CONFORMING AMENDMENT.—Section 3034(e)(1) of

24 title 38, United States Code, is amended in the second sen25 tence by striking ‘‘as soon as practicable’’ and all that fol-
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1 lows through ‘‘such additional times’’ and inserting ‘‘at

2 such times’’.

3 SEC. 303. ACCELERATED PAYMENTS OF EDUCATIONAL AS4 SISTANCE.

5 Section 3014 of title 38, United States Code, is

6 amended—

7 (1) by inserting ‘‘(a)’’ before ‘‘The Secretary

8 shall pay’’; and

9 (2) by adding at the end the following new sub10 section (b):

11 ‘‘(b)(1) When the Secretary determines that it is ap12 propriate to accelerate payments under the regulations pre13 scribed pursuant to paragraph (6), the Secretary may make

14 payments of basic educational assistance allowance under

15 this subchapter on an accelerated basis.

16 ‘‘(2) The Secretary may pay a basic educational as17 sistance allowance on an accelerated basis only to an indi18 vidual entitled to payment of the allowance under this sub19 chapter who has made a request for payment of the allow20 ance on an accelerated basis.

21 ‘‘(3) In the event an adjustment under section 3015(g)

22 of this title in the monthly rate of basic educational assist23 ance will occur during a period for which a payment of

24 an allowance is made on an accelerated basis under this

25 subsection, the Secretary shall—
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1 ‘‘(A) pay on an accelerated basis the amount the

2 allowance otherwise payable under this subchapter for

3 the period without regard to the adjustment under

4 that section; and

5 ‘‘(B) pay on the date of the adjustment any ad6 ditional amount of the allowance that is payable for

7 the period as a result of the adjustment.

8 ‘‘(4) The entitlement to a basic educational assistance

9 allowance under this subchapter of an individual who is

10 paid an allowance on an accelerated basis under this sub11 section shall be charged at a rate equal to one month for

12 each month of the period covered by the accelerated payment

13 of the allowance.

14 ‘‘(5) A basic educational assistance allowance shall be

15 paid on an accelerated basis under this subsection as fol16 lows:

17 ‘‘(A) In the case of an allowance for a course

18 leading to a standard college degree, at the beginning

19 of the quarter, semester, or term of the course in a

20 lump-sum amount equivalent to the aggregate amount

21 of monthly allowance otherwise payable under this

22 subchapter for the quarter, semester, or term, as the

23 case may be, of the course.

24 ‘‘(B) In the case of an allowance for a course

25 other than a course referred to in subparagraph (A)—
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1 ‘‘(i) at the later of (I) the beginning of the

2 course, or (II) a reasonable time after the request

3 for payment by the individual concerned; and

4 ‘‘(ii) in any amount requested by the indi5 vidual concerned up to the aggregate amount of

6 monthly allowance otherwise payable under this

7 subchapter for the period of the course.

8 ‘‘(6) The Secretary shall prescribe regulations for pur9 poses of making payments of basic educational allowance

10 on an accelerated basis under this subsection. Such regula11 tions shall specify the circumstances under which acceler12 ated payments should be made and include requirements

13 relating to the request for, making and delivery of, and re14 ceipt and use of such payments.’’.

15 SEC. 304. TRANSFER OF ENTITLEMENT TO EDUCATIONAL

16 ASSISTANCE.

17 (a) AUTHORITY TO TRANSFER TO FAMILY MEMBER.—

18 Subchapter II of chapter 30 of title 38, United States Code,

19 is amended by adding at the end the following new section:

20 ‘‘§ 3020. Transfer of entitlement to basic educational

21 assistance

22 ‘‘(a) The Secretary may, for the purpose of enhancing

23 recruiting and retention, and at the Secretary’s sole discre24 tion, permit an individual entitled to educational assist25 ance under this subchapter to elect to transfer such individ-
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1 ual’s entitlement to such assistance, in whole or in part,

2 to the individuals specified in subsection (b).

3 ‘‘(b) An individual’s entitlement to educational assist4 ance may be transferred when authorized under subsection

5 (a) as follows:

6 ‘‘(1) To the individual’s spouse.

7 ‘‘(2) To one or more of the individual’s children.

8 ‘‘(3) To a combination of the individuals referred

9 to in paragraphs (1) and (2).

10 ‘‘(c)(1) An individual electing to transfer an entitle11 ment to educational assistance under this section shall—

12 ‘‘(A) designate the individual or individuals to

13 whom such entitlement is being transferred and the

14 percentage of such entitlement to be transferred to

15 each such individual; and

16 ‘‘(B) specify the period for which the transfer

17 shall be effective for each individual designated under

18 subparagraph (A).

19 ‘‘(2) The aggregate amount of the entitlement transfer20 able by an individual under this section may not exceed

21 the aggregate amount of the entitlement of such individual

22 to educational assistance under this subchapter.

23 ‘‘(3) An individual electing to transfer an entitlement

24 under this section may elect to modify or revoke the transfer

25 at any time before the use of the transferred entitlement.
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1 An individual shall make the election by submitting written

2 notice of such election to the Secretary.

3 ‘‘(d)(1) The use of any entitlement transferred under

4 this section shall be charged against the entitlement of the

5 individual making the transfer at the rate of one month

6 for each month of transferred entitlement that is used.

7 ‘‘(2) Except as provided in paragraph (3), an individ8 ual using entitlement transferred under this section shall

9 be subject to the provisions of this chapter in such use as

10 if such individual were entitled to the educational assist11 ance covered by the transferred entitlement in the individ12 ual’s own right.

13 ‘‘(3) Notwithstanding section 3031 of this title, a child

14 shall complete the use of any entitlement transferred to the

15 child under this section before the child attains the age of

16 26 years.

17 ‘‘(e) In the event of an overpayment of educational as18 sistance with respect to an individual to whom entitlement

19 is transferred under this section, such individual and the

20 individual making the transfer under this section shall be

21 jointly and severally liable to the United States for the

22 amount of the overpayment for purposes of section 3685 of

23 this title.

24 ‘‘(f) The Secretary shall prescribe regulations for pur25 poses of this section. Such regulations shall specify the man-
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1 ner and effect of an election to modify or revoke a transfer

2 of entitlement under subsection (c)(3).’’.

3 (b) CLERICAL AMENDMENT.—The table of sections at

4 the beginning of such chapter is amended by inserting after

5 the item relating to section 3019 the following new item:

‘‘3020. Transfer of entitlement to basic educational assistance.’’.

6 TITLE IV—REPORT

7 SEC. 401. ANNUAL REPORT ON EFFECTS OF INITIATIVES ON

8 RECRUITMENT AND RETENTION.

9 (a) REQUIREMENT FOR REPORT.—On December 1 of

10 each year, the Secretary of Defense shall submit to Congress

11 a report that sets forth the Secretary’s assessment of the ef12 fects that the provisions of this Act and the amendments

13 made by the Act are having on recruitment and retention

14 of personnel for the Armed Forces.

15 (b) FIRST REPORT.—The first report under this sec16 tion shall be submitted not later than December 1, 2000.