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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 169 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                 S. 169

  To improve pay, retirement, and educational assistance benefits for 
          members of the Armed Forces; and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

    Mr. Cleland (for himself, Mr. Robb, Mr. Levin, Mr. Kennedy, Mr. 
  Bingaman, Mr. Byrd, Mr. Lieberman, Ms. Landrieu, Mr. Reed, and Mr. 
   Daschle) introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL

 
  To improve pay, retirement, and educational assistance benefits for 
          members of the Armed Forces; and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Recruiting and Retention 
Improvement Act of 1999''.

                      TITLE I--PAY AND ALLOWANCES

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

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

                                                                      RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Years of service computed under section 205 of title 37, United States Code
     Pay Grade      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                     2 or less    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\1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
O-10\2\............      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00   $10,655.10   $10,707.60   $10,930.20   $11,318.40
O-9................       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00       0.00     9,319.50     9,453.60     9,647.70     9,986.40
O-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     9,048.00
O-7................   5,479.50   5,851.80   5,851.50   5,894.40   6,114.60   6,282.00   6,475.80   6,669.00   6,863.10   7,471.50   7,985.40     7,985.40     7,985.40     7,985.40     8,025.60
O-6................   4,061.10   4,461.60   4,754.40   4,754.40   4,772.40   4,976.70   5,004.00   5,004.00   5,169.30   5,791.20   6,086.10     6,381.30     6,549.00     6,719.10     7,049.10
O-5................   3,248.40   3,813.90   4,077.90   4,127.70   4,291.80   4,291.80   4,420.80   4,659.30   4,971.90   5,286.00   5,436.00     5,583.60     5,751.90     5,751.90     5,751.90
O-4................   2,737.80   3,333.90   3,556.20   3,606.04   3,812.40   3,980.40   4,251.50   4,464.00   4,611.00   4,758.90   4,808.70     4,808.70     4,808.70     4,808.70     4,808.70
O-3\3\.............   2,544.00   2,884.20   3,112.80   3,364.80   3,525.90   3,702.60   3,850.20   4,040.40   4,139.10   4,139.10   4,139.10     4,139.10     4,139.10     4,139.10     4,139.10
O-2\3\.............   2,218.80   2,527.20   2,910.90   3,000.00   3,071.10   3,071.10   3,071.10   3,071.10   3,071.10   3,071.10   3,071.10     3,071.10     3,071.10     3,071.10     3,071.10
O-1\3\.............   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-3E\4\............      $0.00      $0.00      $0.00  $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    $4,416.90
O-2E\4\............       0.00       0.00       0.00   3,009.00   3,071.10   3,168.60   3,333.90   3,461.40   3,556.20   3,556.20   3,556.20     3,556.20     3,556.20     3,556.20     3,556.20
O-1E\4\............       0.00       0.00       0.00   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................      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00    $4,475.10    $4,628.70    $4,782.90    $4,937.40
W-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     4,427.10
W-3................   2,355.90   2,555.40   2,555.40   2,588.40   2,694.30   2,814.90   2,974.20   3,071.10   3,177.00   3,298.20   3,418.50     3,539.10     3,659.40     3,780.00     3,900.90
W-2................   2,063.40   2,232.60   2,232.60   2,305.80   2,423.10   2,555.40   2,852.60   2,749.80   2,844.30   2,949.00   3,058.40     3,163.80     3,270.90     3,378.30     3,378.30
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                 RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES--Continued
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     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    Over 18     Over 20      Over 22      Over 24      Over 26
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
W-1................   1,719.00   1,971.00   1,971.00   2,135.70   2,232.60   2,332.80   2,433.30   2,533.20   2,634.00   2,734.80   2,835.00     2,910.90     2,910.90     2,910.90     2,910.90
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ENLISTED MEMBERS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
E-9\4\.............      $0.00      $0.00      $0.00      $0.00      $0.00      $0.00  $3,015.30  $3,083.40  $3,169.80  $3,271.50  $3,373.20    $3,473.40    $3,609.30    $3,744.00    $3,915.80
E-8................       0.00       0.00       0.00       0.00       0.00   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
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     3,134.40
E-6................   1,518.90   1,678.20   1,752.60   1,824.30   1,899.30   1,973.10   2,047.20   2,118.60   2,191.50   2,244.60   2,283.30     2,283.30     2,285.70     2,285.70     2,285.70
E-5................   1,332.60   1,494.00   1,566.00   1,640.40   1,714.50   1,789.50   1,861.50   1,936.20   1,936.20   1,936.20   1,936.20     1,936.20     1,936.20     1,936.20     1,936.20
E-4................   1,242.90   1,373.10   1,447.20   1,520.10   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90     1,593.90     1,593.90     1,593.90     1,593.90
E-3................   1,171.50   1,260.60   1,334.10   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90     1,335.90     1,335.90     1,335.90     1,335.90
E-2................   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40     1,127.40     1,127.40     1,123.20     1,127.40
E-1................  \5\1,005.
                            60   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60     1,005.60     1,005.60     1,005.60    1,005.60
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\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.
\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.

SEC. 102. PAY INCREASES FOR FISCAL YEARS 2001 THROUGH 2006 AT ECI PLUS 
              ONE-HALF PERCENT.

    Notwithstanding subsection (c) of section 1009 of title 37, United 
States Code, the percentage of the increase in the rates of monthly 
basic pay that takes effect under that section during each of fiscal 
years 2001 through 2006 shall be the percentage equal to the sum of one 
percent plus the percentage increase calculated as provided under 
subsection (a) of section 5303 of title 5, United States Code, for such 
fiscal year (without regard to whether rates of pay under the statutory 
pay systems are actually increased by the percentage calculated under 
such section 5303(a) during such fiscal year).

SEC. 103. THREE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              CERTAIN BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 1999,'' and 
inserting ``December 31, 2002,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each amended 
by striking ``December 31, 1999'' and inserting ``December 31, 2002''.
    (d) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 1999'' and inserting ``December 31, 
2002''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2002''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking ``any fiscal year 
beginning before October 1, 1998, and the 15-month period beginning on 
that date and ending on December 31, 1999'' and inserting ``the 15-
month period beginning on October 1, 1998, and ending on December 31, 
1999, and any year beginning after December 31, 1999, and ending before 
January 1, 2003''.

SEC. 104. THREE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking ``December 31, 1999'' and inserting ``December 
31, 2002''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking ``December 31, 1999'' and inserting ``December 31, 
2002''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking 
``December 31, 1999'' and inserting ``December 31, 2002''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2002''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking ``January 1, 2000'' and 
inserting in lieu thereof ``January 1, 2003''.

SEC. 105. THREE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED 
              NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
1999'' and inserting ``December 31, 2002''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
1999'' and inserting ``December 31, 2002''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking 
``December 31, 1999'' and inserting in lieu thereof ``December 31, 
2002''.

                         TITLE II--RETIRED PAY

SEC. 201. REPEAL OF REDUCTION IN RETIRED PAY MULTIPLIER FOR POST-JULY 
              31, 1986 MEMBERS RETIRING WITH LESS THAN 30 YEARS OF 
              SERVICE.

    Section 1409(b) of title 10, United States Code, is amended by 
striking paragraph (2).

SEC. 202. MODIFIED ``CPI-1'' COST-OF-LIVING ADJUSTMENT.

    Paragraph (3) of section 1401a(b) of title 10, United States Code, 
is amended to read as follows:
            ``(3) Post-august 1, 1986 members.--The Secretary shall 
        increase the retired pay of each member and former member who 
        first became a member of a uniformed service on or after August 
        1, 1986, by the percent equal to the difference between the 
        percent determined under paragraph (2) and 1 percent, except 
        that, if the percent determined under paragraph (2) is less 
        than 3 percent, the Secretary shall increase the retired pay by 
        the lesser of the percent so determined or 2 percent.''.

SEC. 203. CONFORMING AMENDMENTS.

    (a) Computation of Retired Pay.--(1) Chapter 71 of title 10, United 
States Code, is further amended--
            (A) in section 1409(b)--
                    (i) in paragraph (1), by striking ``paragraphs (2) 
                and (3)'' and inserting in lieu thereof ``paragraph 
                (2)''; and
                    (iii) by redesignating paragraph (3) as paragraph 
                (2); and
            (B) in section 1410, by striking ``if--'' and all that 
        follows and inserting the following: ``if increases in the 
        retired pay of the member or former member under section 
        1401a(b) of this title had been computed as provided in 
        paragraph (2) of that section (rather than under paragraph (3) 
        of that section).''
    (2)(A) The heading for section 1410 of such title is amended to 
read as follows:
``Sec. 1410. Members entering on or after August 1, 1986: restoration 
              of COLA increases to full-COLA amounts at age 62''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 71 of such title is amended to read as 
follows:

``1410. Members entering on or after August 1, 1986: restoration of 
                            COLA increases to full-COLA amounts at age 
                            62.''.
    (b) Survivor Benefit Plan.--Chapter 73 of such title is amended--
            (1) in section 1447(6)(A), by striking ``(determined 
        without regard to any reduction under section 1409(b)(2) of 
        this title)'';
            (2) in section 1451(h), by striking paragraph (3); and
            (3) in section 1452(c), by striking paragraph (4).

SEC. 204. EFFECTIVE DATE.

    The amendments made by this title shall take effect on October 1, 
1999.

                     TITLE III--THRIFT SAVINGS PLAN

SEC. 301. PARTICIPATION IN THRIFT SAVINGS PLAN.

    (a) Authority.--Subchapter III of chapter 84 of title 5, United 
States Code, is amended by adding at the end the following:
``Sec. 8440e. Members of the uniformed services in active service
    ``(a) Participation Authorized.--(1) A member of the armed forces 
in active service may participate in the Thrift Savings Plan in 
accordance with this section.
    ``(2) An election to contribute to the Thrift Savings Fund under 
paragraph (1) may be made only during a period provided under section 
8432(b) for individuals subject to this chapter.
    ``(b) Applicability of Thrift Savings Plan Provisions.--Except as 
otherwise provided in this section, the provisions of this subchapter 
and subchapter VII of this chapter shall apply with respect to members 
of the uniformed services making contributions to the Thrift Savings 
Fund as if such members were employees within the meaning of section 
8401(11).
    ``(c) Maximum Contribution From Basic Pay.--The amount contributed 
by a member of the uniformed services for any pay period out of basic 
pay may not exceed--
            ``(1) for any pay period 5 percent of such member's basic 
        pay for such pay period, plus
            ``(2) an amount equal to the amount of any enlistment or 
        reenlistment bonus paid to the member under section 308, 308a, 
        or 308f of title 37 in connection with an enlistment for active 
        service.
    ``(d) Agency Contributions Prohibited.--No contribution under 
section 8432(c) of this title may be made for the benefit of a member 
of the uniformed services making contributions to the Thrift Savings 
Fund under subsection (a).
    ``(e) Certain Transfers Not Considered Separations.--A transfer of 
a member from one armed force to another armed force without a break in 
active service of more than 30 days shall not be considered to be a 
separation from service for the purposes of establishing an entitlement 
of the member to a withdrawal from the member's account under the 
Thrift Savings Plan.
    ``(f) Regulations.--The Executive Director, after consultation with 
the Secretary of Defense, may prescribe regulations to carry out this 
section.
    ``(g) Definitions.--For purposes of this section--
            ``(1) the term `armed forces' has the meaning given the 
        term in subsection (a)(4) of section 101 of title 10;
            ``(2) the term `active service' has the meaning given the 
        term in subsection (d)(3) of such section; and
            ``(3) the term `basic pay' means basic pay that is payable 
        under section 204 of title 37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 84 of title 5, United States Code, is amended by adding after 
the item relating to section 8440d the following:

``8440e. Members of the uniformed services in active service.''.

SEC. 302. NONDUPLICATION OF CONTRIBUTIONS.

    Section 8432b(b) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``Each employee'' and 
        inserting ``Except as provided in paragraph (4), each 
        employee'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following new 
        paragraph (4)
    ``(4) No contribution may be made under this section for a period 
for which an employee made a contribution under section 8440e.''.

                 TITLE IV--MONTGOMERY GI BILL BENEFITS

SEC. 401. INCREASE IN RATES OF EDUCATIONAL ASSISTANCE FOR FULL-TIME 
              EDUCATION.

    (a) Increase.--Section 3015 of title 38, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking ``$528'' and 
        inserting ``$600''; and
            (2) in subsection (b)(1), by striking ``$429'' and 
        inserting ``$488''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to 
educational assistance allowances paid for months after September 1999. 
However, no adjustment in rates of educational assistance shall be made 
under subsection (g) of section 3015 of title 38, United States Code, 
for fiscal year 2000.

SEC. 402. TERMINATION OF REDUCTIONS OF BASIC PAY.

    (a) Repeals.--(1) Section 3011 of title 38, United States Code, is 
amended by striking subsection (b).
    (2) Section 3012 of such title is amended by striking subsection 
(c).
    (3) The amendments made by paragraphs (1) and (2) shall take effect 
on the date of the enactment of this Act and shall apply to individuals 
whose initial obligated period of active duty under section 3011 or 
3012 of title 38, United States Code, as the case may be, begins on or 
after such date.
    (b) Termination of Reductions in Progress.--Any reduction in the 
basic pay of an individual referred to in section 3011(b) of title 38, 
United States Code, by reason of such section 3011(b), or of any 
individual referred to in section 3012(c) of such title by reason of 
such section 3012(c), as of the date of the enactment of this Act shall 
cease commencing with the first month beginning after such date, and 
any obligation of such individual under such section 3011(b) or 
3012(c), as the case may be, as of the day before such date shall be 
deemed to be fully satisfied as of such date.
    (c) Conforming Amendment.--Section 3034(e)(1) of title 38, United 
States Code, is amended in the second sentence by striking ``as soon as 
practicable'' and all that follows through ``such additional times'' 
and inserting ``at such times''.

SEC. 403. ACCELERATED PAYMENTS OF EDUCATIONAL ASSISTANCE.

    Section 3014 of title 38, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The Secretary shall 
        pay''; and
            (2) by adding at the end the following new subsection (b):
    ``(b)(1) When the Secretary determines that it is appropriate to 
accelerate payments under the regulations prescribed pursuant to 
paragraph (6), the Secretary may make payments of basic educational 
assistance allowance under this subchapter on an accelerated basis.
    ``(2) The Secretary may pay a basic educational assistance 
allowance on an accelerated basis only to an individual entitled to 
payment of the allowance under this subchapter who has made a request 
for payment of the allowance on an accelerated basis.
    ``(3) In the event an adjustment under section 3015(g) of this 
title in the monthly rate of basic educational assistance will occur 
during a period for which a payment of an allowance is made on an 
accelerated basis under this subsection, the Secretary shall--
            ``(A) pay on an accelerated basis the amount the allowance 
        otherwise payable under this subchapter for the period without 
        regard to the adjustment under that section; and
            ``(B) pay on the date of the adjustment any additional 
        amount of the allowance that is payable for the period as a 
        result of the adjustment.
    ``(4) The entitlement to a basic educational assistance allowance 
under this subchapter of an individual who is paid an allowance on an 
accelerated basis under this subsection shall be charged at a rate 
equal to one month for each month of the period covered by the 
accelerated payment of the allowance.
    ``(5) A basic educational assistance allowance shall be paid on an 
accelerated basis under this subsection as follows:
            ``(A) In the case of an allowance for a course leading to a 
        standard college degree, at the beginning of the quarter, 
        semester, or term of the course in a lump-sum amount equivalent 
        to the aggregate amount of monthly allowance otherwise payable 
        under this subchapter for the quarter, semester, or term, as 
        the case may be, of the course.
            ``(B) In the case of an allowance for a course other than a 
        course referred to in subparagraph (A)--
                    ``(i) at the later of (I) the beginning of the 
                course, or (II) a reasonable time after the request for 
                payment by the individual concerned; and
                    ``(ii) in any amount requested by the individual 
                concerned up to the aggregate amount of monthly 
                allowance otherwise payable under this subchapter for 
                the period of the course.
    ``(6) The Secretary shall prescribe regulations for purposes of 
making payments of basic educational allowance on an accelerated basis 
under this subsection. Such regulations shall specify the circumstances 
under which accelerated payments should be made and include 
requirements relating to the request for, making and delivery of, and 
receipt and use of such payments.''.

SEC. 404. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE.

    (a) Authority To Transfer to Family Member.--Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance
    ``(a) The Secretary may, for the purpose of enhancing recruiting 
and retention, and at the Secretary's sole discretion, permit an 
individual entitled to educational assistance under this subchapter to 
elect to transfer such individual's entitlement to such assistance, in 
whole or in part, to the individuals specified in subsection (b).
    ``(b) An individual's entitlement to educational assistance may be 
transferred when authorized under subsection (a) as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).
    ``(c)(1) An individual electing to transfer an entitlement to 
educational assistance under this section shall--
            ``(A) designate the individual or individuals to whom such 
        entitlement is being transferred and the percentage of such 
        entitlement to be transferred to each such individual; and
            ``(B) specify the period for which the transfer shall be 
        effective for each individual designated under subparagraph 
        (A).
    ``(2) The aggregate amount of the entitlement transferable by an 
individual under this section may not exceed the aggregate amount of 
the entitlement of such individual to educational assistance under this 
subchapter.
    ``(3) An individual electing to transfer an entitlement under this 
section may elect to modify or revoke the transfer at any time before 
the use of the transferred entitlement. An individual shall make the 
election by submitting written notice of such election to the 
Secretary.
    ``(d)(1) The use of any entitlement transferred under this section 
shall be charged against the entitlement of the individual making the 
transfer at the rate of one month for each month of transferred 
entitlement that is used.
    ``(2) Except as provided in paragraph (3), an individual using 
entitlement transferred under this section shall be subject to the 
provisions of this chapter in such use as if such individual were 
entitled to the educational assistance covered by the transferred 
entitlement in the individual's own right.
    ``(3) Notwithstanding section 3031 of this title, a child shall 
complete the use of any entitlement transferred to the child under this 
section before the child attains the age of 26 years.
    ``(e) In the event of an overpayment of educational assistance with 
respect to an individual to whom entitlement is transferred under this 
section, such individual and the individual making the transfer under 
this section shall be jointly and severally liable to the United States 
for the amount of the overpayment for purposes of section 3685 of this 
title.
    ``(f) The Secretary shall prescribe regulations for purposes of 
this section. Such regulations shall specify the manner and effect of 
an election to modify or revoke a transfer of entitlement under 
subsection (c)(3).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
3019 the following new item:

``3020. Transfer of entitlement to basic educational assistance.''.

                            TITLE V--REPORT

SEC. 501. ANNUAL REPORT ON EFFECTS OF INITIATIVES ON RECRUITMENT AND 
              RETENTION.

    (a) Requirement for Report.--On December 1 of each year, the 
Secretary of Defense shall submit to Congress a report that sets forth 
the Secretary's assessment of the effects that the provisions of this 
Act and the amendments made by the Act are having on recruitment and 
retention of personnel for the Armed Forces.
    (b) First Report.--The first report under this section shall be 
submitted not later than December 1, 2000.
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