II

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.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Military Recruiting

5 and Retention Improvement Act of 1999’’.
2

•S 169 IS

1 TITLE I—PAY AND ALLOWANCES

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

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

5 adjustment required by section 1009 of title 37, United

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

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

8 such title to become effective during fiscal year 2000 shall

9 not be made.

10 (b) JANUARY 1, 2000, INCREASE IN BASIC PAY.—

11 Effective on January 1, 2000, the rates of monthly basic

12 pay for members of the uniformed services shall be in13 creased by 4.8 percent.

14 (c) BASIC PAY REFORM.—Effective on July 1, 2000,

15 the rates of monthly basic pay for members of the uni16 formed services are as follows:
3

•S 169 IS

RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES

Pay

Grade

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

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 OFFICERS1

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 $11,318.40O–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 9,986.40O–8 ........ 6,594.30 6,810.30 6,953.10 6,993.30 7,171.80 7,471.50 7,540.80 7,824.60 7,906.20 8,150.10 8,503.80 8,830.20 9,048.00 9,048.00 9,048.00O–7 ........ 5,479.50 5,851.80 5,851.50 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 8,025.60O–6 ........ 4,061.10 4,461.60 4,754.40 4,754.40 4,772.40 4,976.70 5,004.00 5,004.00 5,169.30 5,791.20 6,086.10 6,381.30 6,549.00 6,719.10 7,049.10O–5 ........ 3,248.40 3,813.90 4,077.90 4,127.70 4,291.80 4,291.80 4,420.80 4,659.30 4,971.90 5,286.00 5,436.00 5,583.60 5,751.90 5,751.90 5,751.90O–4 ........ 2,737.80 3,333.90 3,556.20 3,606.04 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 4,808.70O–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 4,139.10O–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 3,071.10O–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–3E4 ... $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 $4,416.90O–2E4 ... 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 3,556.20O–1E4 ... 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 $4,937.40W–4 ....... 2,592.00 2,788.50 2,868.60 2,947.50 3,083.40 3,217.20 3,352.80 3,485.10 3,622.20 3,753.60 3,888.00 4,019.00 4,155.60 4,289.70 4,427.10W–3 ....... 2,355.90 2,555.40 2,555.40 2,588.40 2,694.30 2,814.90 2,974.20 3,071.10 3,177.00 3,298.20 3,418.50 3,539.10 3,659.40 3,780.00 3,900.90W–2 ....... 2,063.40 2,232.60 2,232.60 2,305.80 2,423.10 2,555.40 2,852.60 2,749.80 2,844.30 2,949.00 3,058.40 3,163.80 3,270.90 3,378.30 3,378.30
4

•S 169 IS

RATES OF MONTHLY BASIC PAY OF THE UNIFORMED SERVICES—Continued

Pay

Grade

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

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 $3,915.80E–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 3,483.60E–7 ........ 1,765.80 1,927.80 2,001.00 2,073.00 2,147.70 2,220.90 2,294.10 2,367.30 2,439.30 2,514.00 2,588.10 2,660.40 2,787.60 2,926.20 3,134.40E–6 ........ 1,518.90 1,678.20 1,752.60 1,824.30 1,899.30 1,973.10 2,047.20 2,118.60 2,191.50 2,244.60 2,283.30 2,283.30 2,285.70 2,285.70 2,285.70E–5 ........ 1,332.60 1,494.00 1,566.00 1,640.40 1,714.50 1,789.50 1,861.50 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20E–4 ........ 1,242.90 1,373.10 1,447.20 1,520.10 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90E–3 ........ 1,171.50 1,260.60 1,334.10 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90E–2 ........ 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 1,123.20 1,127.40E–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 officersis limited to the rate of basic pay for level V of the Executive Schedule.

3Does 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.
5

•S 169 IS

1 SEC. 102. PAY INCREASES FOR FISCAL YEARS 2001

2 THROUGH 2006 AT ECI PLUS ONE-HALF PER3 CENT.

4 Notwithstanding subsection (c) of section 1009 of

5 title 37, United States Code, the percentage of the in6 crease in the rates of monthly basic pay that takes effect

7 under that section during each of fiscal years 2001

8 through 2006 shall be the percentage equal to the sum

9 of one percent plus the percentage increase calculated as

10 provided under subsection (a) of section 5303 of title 5,

11 United States Code, for such fiscal year (without regard

12 to whether rates of pay under the statutory pay systems

13 are actually increased by the percentage calculated under

14 such section 5303(a) during such fiscal year).

15 SEC. 103. THREE-YEAR EXTENSION OF AUTHORITIES RE16 LATING TO PAYMENT OF CERTAIN BONUSES

17 AND SPECIAL PAYS.

18 (a) AVIATION OFFICER RETENTION BONUS.—Sec19 tion 301b(a) of title 37, United States Code, is amended

20 by striking ‘‘December 31, 1999,’’ and inserting ‘‘Decem21 ber 31, 2002,’’.

22 (b) REENLISTMENT BONUS FOR ACTIVE MEM23 BERS.—Section 308(g) of title 37, United States Code, is

24 amended by striking ‘‘December 31, 1999’’ and inserting

25 ‘‘December 31, 2002’’.
6

•S 169 IS

1 (c) ENLISTMENT BONUSES FOR MEMBERS WITH

2 CRITICAL SKILLS.—Sections 308a(c) and 308f(c) of title

3 37, United States Code, are each amended by striking

4 ‘‘December 31, 1999’’ and inserting ‘‘December 31,

5 2002’’.

6 (d) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI7 CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section

8 312(e) of title 37, United States Code, is amended by

9 striking ‘‘December 31, 1999’’ and inserting ‘‘December

10 31, 2002’’.

11 (e) NUCLEAR CAREER ACCESSION BONUS.—Section

12 312b(c) of title 37, United States Code, is amended by

13 striking ‘‘December 31, 1999’’ and inserting ‘‘December

14 31, 2002’’.

15 (f) NUCLEAR CAREER ANNUAL INCENTIVE

16 BONUS.—Section 312c(d) of title 37, United States Code,

17 is amended by striking ‘‘any fiscal year beginning before

18 October 1, 1998, and the 15-month period beginning on

19 that date and ending on December 31, 1999’’ and insert20 ing ‘‘the 15-month period beginning on October 1, 1998,

21 and ending on December 31, 1999, and any year begin22 ning after December 31, 1999, and ending before January

23 1, 2003’’.
7

•S 169 IS

1 SEC. 104. THREE-YEAR EXTENSION OF CERTAIN BONUSES

2 AND SPECIAL PAY AUTHORITIES FOR RE3 SERVE FORCES.

4 (a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN

5 CRITICALLY SHORT WARTIME SPECIALTIES.—Section

6 302g(f) of title 37, United States Code, is amended by

7 striking ‘‘December 31, 1999’’ and inserting ‘‘December

8 31, 2002’’.

9 (b) SELECTED RESERVE REENLISTMENT BONUS.—

10 Section 308b(f) of title 37, United States Code, is amend11 ed by striking ‘‘December 31, 1999’’ and inserting ‘‘De12 cember 31, 2002’’.

13 (c) SELECTED RESERVE ENLISTMENT BONUS.—Sec14 tion 308c(e) of title 37, United States Code, is amended

15 by striking ‘‘December 31, 1999’’ and inserting ‘‘Decem16 ber 31, 2002’’.

17 (d) SPECIAL PAY FOR ENLISTED MEMBERS AS18 SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section

19 308d(c) of title 37, United States Code, is amended by

20 striking ‘‘December 31, 1999’’ and inserting ‘‘December

21 31, 2002’’.

22 (e) SELECTED RESERVE AFFILIATION BONUS.—Sec23 tion 308e(e) of title 37, United States Code, is amended

24 by striking ‘‘December 31, 1999’’ and inserting ‘‘Decem25 ber 31, 2002’’.
8

•S 169 IS

1 (f) READY RESERVE ENLISTMENT AND REENLIST2 MENT BONUS.—Section 308h(g) of title 37, United States

3 Code, is amended by striking ‘‘December 31, 1999’’ and

4 inserting ‘‘December 31, 2002’’.

5 (g) PRIOR SERVICE ENLISTMENT BONUS.—Section

6 308i(f) of title 37, United States Code, is amended by

7 striking ‘‘December 31, 1999’’ and inserting ‘‘December

8 31, 2002’’.

9 (h) REPAYMENT OF EDUCATION LOANS FOR CER10 TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE11 LECTED RESERVE.—Section 16302(d) of title 10, United

12 States Code, is amended by striking ‘‘January 1, 2000’’

13 and inserting in lieu thereof ‘‘January 1, 2003’’.

14 SEC. 105. THREE-YEAR EXTENSION OF CERTAIN BONUSES

15 AND SPECIAL PAY AUTHORITIES FOR NURSE

16 OFFICER CANDIDATES, REGISTERED NURSES,

17 AND NURSE ANESTHETISTS.

18 (a) NURSE OFFICER CANDIDATE ACCESSION PRO19 GRAM.—Section 2130a(a)(1) of title 10, United States

20 Code, is amended by striking ‘‘December 31, 1999’’ and

21 inserting ‘‘December 31, 2002’’.

22 (b) ACCESSION BONUS FOR REGISTERED NURSES.—

23 Section 302d(a)(1) of title 37, United States Code, is

24 amended by striking ‘‘December 31, 1999’’ and inserting

25 ‘‘December 31, 2002’’.
9

•S 169 IS

1 (c) INCENTIVE SPECIAL PAY FOR NURSE ANES2 THETISTS.—Section 302e(a)(1) of title 37, United States

3 Code, is amended by striking ‘‘December 31, 1999’’ and

4 inserting in lieu thereof ‘‘December 31, 2002’’.

5 TITLE II—RETIRED PAY

6 SEC. 201. REPEAL OF REDUCTION IN RETIRED PAY MULTI7 PLIER FOR POST-JULY 31, 1986 MEMBERS RE8 TIRING WITH LESS THAN 30 YEARS OF SERV9 ICE.

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

11 amended by striking paragraph (2).

12 SEC. 202. MODIFIED ‘‘CPI–1’’ COST-OF-LIVING ADJUSTMENT.

13 Paragraph (3) of section 1401a(b) of title 10, United

14 States Code, is amended to read as follows:

15 ‘‘(3) POST-AUGUST 1, 1986 MEMBERS.—The

16 Secretary shall increase the retired pay of each

17 member and former member who first became a

18 member of a uniformed service on or after August

19 1, 1986, by the percent equal to the difference be20 tween the percent determined under paragraph (2)

21 and 1 percent, except that, if the percent determined

22 under paragraph (2) is less than 3 percent, the Sec23 retary shall increase the retired pay by the lesser of

24 the percent so determined or 2 percent.’’.
10

•S 169 IS

1 SEC. 203. CONFORMING AMENDMENTS.

2 (a) COMPUTATION OF RETIRED PAY.—(1) Chapter

3 71 of title 10, United States Code, is further amended—

4 (A) in section 1409(b)—

5 (i) in paragraph (1), by striking ‘‘para6 graphs (2) and (3)’’ and inserting in lieu there7 of ‘‘paragraph (2)’’; and

8 (iii) by redesignating paragraph (3) as

9 paragraph (2); and

10 (B) in section 1410, by striking ‘‘if—’’ and all

11 that follows and inserting the following: ‘‘if increases

12 in the retired pay of the member or former member

13 under section 1401a(b) of this title had been com14 puted as provided in paragraph (2) of that section

15 (rather than under paragraph (3) of that section).’’

16 (2)(A) The heading for section 1410 of such title is

17 amended to read as follows:

18 ‘‘§ 1410. Members entering on or after August 1, 1986:

19 restoration of COLA increases to full20 COLA amounts at age 62’’.

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

22 sections at the beginning of chapter 71 of such title is

23 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.’’.
11

•S 169 IS

1 (b) SURVIVOR BENEFIT PLAN.—Chapter 73 of such

2 title is amended—

3 (1) in section 1447(6)(A), by striking ‘‘(deter4 mined without regard to any reduction under section

5 1409(b)(2) of this title)’’;

6 (2) in section 1451(h), by striking paragraph

7 (3); and

8 (3) in section 1452(c), by striking paragraph

9 (4).

10 SEC. 204. EFFECTIVE DATE.

11 The amendments made by this title shall take effect

12 on October 1, 1999.

13 TITLE III—THRIFT SAVINGS

14 PLAN

15 SEC. 301. PARTICIPATION IN THRIFT SAVINGS PLAN.

16 (a) AUTHORITY.—Subchapter III of chapter 84 of

17 title 5, United States Code, is amended by adding at the

18 end the following:

19 ‘‘§ 8440e. Members of the uniformed services in active

20 service

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

22 of the armed forces in active service may participate in

23 the Thrift Savings Plan in accordance with this section.

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

25 Fund under paragraph (1) may be made only during a
12

•S 169 IS

1 period provided under section 8432(b) for individuals sub2 ject to this chapter.

3 ‘‘(b) APPLICABILITY OF THRIFT SAVINGS PLAN PRO4 VISIONS.—Except as otherwise provided in this section,

5 the provisions of this subchapter and subchapter VII of

6 this chapter shall apply with respect to members of the

7 uniformed services making contributions to the Thrift

8 Savings Fund as if such members were employees within

9 the meaning of section 8401(11).

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

11 The amount contributed by a member of the uniformed

12 services for any pay period out of basic pay may not

13 exceed—

14 ‘‘(1) for any pay period 5 percent of such mem15 ber’s basic pay for such pay period, plus

16 ‘‘(2) an amount equal to the amount of any en17 listment or reenlistment bonus paid to the member

18 under section 308, 308a, or 308f of title 37 in con19 nection with an enlistment for active service.

20 ‘‘(d) AGENCY CONTRIBUTIONS PROHIBITED.—No

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

22 made for the benefit of a member of the uniformed serv23 ices making contributions to the Thrift Savings Fund

24 under subsection (a).
13

•S 169 IS

1 ‘‘(e) CERTAIN TRANSFERS NOT CONSIDERED SEPA2 RATIONS.—A transfer of a member from one armed force

3 to another armed force without a break in active service

4 of more than 30 days shall not be considered to be a sepa5 ration from service for the purposes of establishing an en6 titlement of the member to a withdrawal from the mem7 ber’s account under the Thrift Savings Plan.

8 ‘‘(f) REGULATIONS.—The Executive Director, after

9 consultation with the Secretary of Defense, may prescribe

10 regulations to carry out this section.

11 ‘‘(g) DEFINITIONS.—For purposes of this section—

12 ‘‘(1) the term ‘armed forces’ has the meaning

13 given the term in subsection (a)(4) of section 101 of

14 title 10;

15 ‘‘(2) the term ‘active service’ has the meaning

16 given the term in subsection (d)(3) of such section;

17 and

18 ‘‘(3) the term ‘basic pay’ means basic pay that

19 is payable under section 204 of title 37.’’.

20 (b) CLERICAL AMENDMENT.—The table of sections

21 at the beginning of chapter 84 of title 5, United States

22 Code, is amended by adding after the item relating to sec23 tion 8440d the following:

‘‘8440e. Members of the uniformed services in active service.’’.
14

•S 169 IS

1 SEC. 302. NONDUPLICATION OF CONTRIBUTIONS.

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

3 amended—

4 (1) in paragraph (1), by striking ‘‘Each em5 ployee’’ and inserting ‘‘Except as provided in para6 graph (4), each employee’’;

7 (2) by redesignating paragraph (4) as para8 graph (5); and

9 (3) by inserting after paragraph (3) the follow10 ing new paragraph (4)

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

12 for a period for which an employee made a contribution

13 under section 8440e.’’.

14 TITLE IV—MONTGOMERY GI

15 BILL BENEFITS

16 SEC. 401. INCREASE IN RATES OF EDUCATIONAL ASSIST17 ANCE FOR FULL-TIME EDUCATION.

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

19 States Code, is amended—

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

21 inserting ‘‘$600’’; and

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

23 and inserting ‘‘$488’’.

24 (b) EFFECTIVE DATE.—The amendments made by

25 subsection (a) shall take effect on October 1, 1999, and

26 shall apply with respect to educational assistance allow-
15

•S 169 IS

1 ances paid for months after September 1999. However,

2 no adjustment in rates of educational assistance shall be

3 made under subsection (g) of section 3015 of title 38,

4 United States Code, for fiscal year 2000.

5 SEC. 402. TERMINATION OF REDUCTIONS OF BASIC PAY.

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

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

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

9 subsection (c).

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

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

12 and shall apply to individuals whose initial obligated pe13 riod of active duty under section 3011 or 3012 of title

14 38, United States Code, as the case may be, begins on

15 or after such date.

16 (b) TERMINATION OF REDUCTIONS IN PROGRESS.—

17 Any reduction in the basic pay of an individual referred

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

19 reason of such section 3011(b), or of any individual re20 ferred to in section 3012(c) of such title by reason of such

21 section 3012(c), as of the date of the enactment of this

22 Act shall cease commencing with the first month begin23 ning after such date, and any obligation of such individual

24 under such section 3011(b) or 3012(c), as the case may
16

•S 169 IS

1 be, as of the day before such date shall be deemed to be

2 fully satisfied as of such date.

3 (c) CONFORMING AMENDMENT.—Section 3034(e)(1)

4 of title 38, United States Code, is amended in the second

5 sentence by striking ‘‘as soon as practicable’’ and all that

6 follows through ‘‘such additional times’’ and inserting ‘‘at

7 such times’’.

8 SEC. 403. ACCELERATED PAYMENTS OF EDUCATIONAL AS9 SISTANCE.

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

11 amended—

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

13 shall pay’’; and

14 (2) by adding at the end the following new sub15 section (b):

16 ‘‘(b)(1) When the Secretary determines that it is ap17 propriate to accelerate payments under the regulations

18 prescribed pursuant to paragraph (6), the Secretary may

19 make payments of basic educational assistance allowance

20 under this subchapter on an accelerated basis.

21 ‘‘(2) The Secretary may pay a basic educational as22 sistance allowance on an accelerated basis only to an indi23 vidual entitled to payment of the allowance under this sub24 chapter who has made a request for payment of the allow25 ance on an accelerated basis.
17

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1 ‘‘(3) In the event an adjustment under section

2 3015(g) of this title in the monthly rate of basic edu3 cational assistance will occur during a period for which

4 a payment of an allowance is made on an accelerated basis

5 under this subsection, the Secretary shall—

6 ‘‘(A) pay on an accelerated basis the amount

7 the allowance otherwise payable under this sub8 chapter for the period without regard to the adjust9 ment under that section; and

10 ‘‘(B) pay on the date of the adjustment any ad11 ditional amount of the allowance that is payable for

12 the period as a result of the adjustment.

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

14 allowance under this subchapter of an individual who is

15 paid an allowance on an accelerated basis under this sub16 section shall be charged at a rate equal to one month for

17 each month of the period covered by the accelerated pay18 ment of the allowance.

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

20 paid on an accelerated basis under this subsection as fol21 lows:

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

23 leading to a standard college degree, at the begin24 ning of the quarter, semester, or term of the course

25 in a lump-sum amount equivalent to the aggregate
18

•S 169 IS

1 amount of monthly allowance otherwise payable

2 under this subchapter for the quarter, semester, or

3 term, as the case may be, of the course.

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

5 other than a course referred to in subparagraph

6 (A)—

7 ‘‘(i) at the later of (I) the beginning of the

8 course, or (II) a reasonable time after the re9 quest for payment by the individual concerned;

10 and

11 ‘‘(ii) in any amount requested by the indi12 vidual concerned up to the aggregate amount of

13 monthly allowance otherwise payable under this

14 subchapter for the period of the course.

15 ‘‘(6) The Secretary shall prescribe regulations for

16 purposes of making payments of basic educational allow17 ance on an accelerated basis under this subsection. Such

18 regulations shall specify the circumstances under which

19 accelerated payments should be made and include require20 ments relating to the request for, making and delivery of,

21 and receipt and use of such payments.’’.

22 SEC. 404. TRANSFER OF ENTITLEMENT TO EDUCATIONAL

23 ASSISTANCE.

24 (a) AUTHORITY TO TRANSFER TO FAMILY MEM25 BER.—Subchapter II of chapter 30 of title 38, United
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1 States Code, is amended by adding at the end the follow2 ing new section:

3 ‘‘§ 3020. Transfer of entitlement to basic educational

4 assistance

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

6 recruiting and retention, and at the Secretary’s sole dis7 cretion, permit an individual entitled to educational assist8 ance under this subchapter to elect to transfer such indi9 vidual’s entitlement to such assistance, in whole or in part,

10 to the individuals specified in subsection (b).

11 ‘‘(b) An individual’s entitlement to educational assist12 ance may be transferred when authorized under subsection

13 (a) as follows:

14 ‘‘(1) To the individual’s spouse.

15 ‘‘(2) To one or more of the individual’s chil16 dren.

17 ‘‘(3) To a combination of the individuals re18 ferred to in paragraphs (1) and (2).

19 ‘‘(c)(1) An individual electing to transfer an entitle20 ment to educational assistance under this section shall—

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

22 whom such entitlement is being transferred and the

23 percentage of such entitlement to be transferred to

24 each such individual; and
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1 ‘‘(B) specify the period for which the transfer

2 shall be effective for each individual designated

3 under subparagraph (A).

4 ‘‘(2) The aggregate amount of the entitlement trans5 ferable by an individual under this section may not exceed

6 the aggregate amount of the entitlement of such individual

7 to educational assistance under this subchapter.

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

9 under this section may elect to modify or revoke the trans10 fer at any time before the use of the transferred entitle11 ment. An individual shall make the election by submitting

12 written notice of such election to the Secretary.

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

14 this section shall be charged against the entitlement of the

15 individual making the transfer at the rate of one month

16 for each month of transferred entitlement that is used.

17 ‘‘(2) Except as provided in paragraph (3), an individ18 ual using entitlement transferred under this section shall

19 be subject to the provisions of this chapter in such use

20 as if such individual were entitled to the educational as21 sistance covered by the transferred entitlement in the indi22 vidual’s own right.

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

24 child shall complete the use of any entitlement transferred
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1 to the child under this section before the child attains the

2 age of 26 years.

3 ‘‘(e) In the event of an overpayment of educational

4 assistance with respect to an individual to whom entitle5 ment is transferred under this section, such individual and

6 the individual making the transfer under this section shall

7 be jointly and severally liable to the United States for the

8 amount of the overpayment for purposes of section 3685

9 of this title.

10 ‘‘(f) The Secretary shall prescribe regulations for

11 purposes of this section. Such regulations shall specify the

12 manner and effect of an election to modify or revoke a

13 transfer of entitlement under subsection (c)(3).’’.

14 (b) CLERICAL AMENDMENT.—The table of sections

15 at the beginning of such chapter is amended by inserting

16 after the item relating to section 3019 the following new

17 item:

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

18 TITLE V—REPORT

19 SEC. 501. ANNUAL REPORT ON EFFECTS OF INITIATIVES ON

20 RECRUITMENT AND RETENTION.

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

22 each year, the Secretary of Defense shall submit to Con23 gress a report that sets forth the Secretary’s assessment

24 of the effects that the provisions of this Act and the
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1 amendments made by the Act are having on recruitment

2 and retention of personnel for the Armed Forces.

3 (b) FIRST REPORT.—The first report under this sec4 tion shall be submitted not later than December 1, 2000.

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