II 

111TH CONGRESS 

1ST SESSION S. 1008 

To amend title 10, United States Code, to limit recoupments of separation 

pay, special separation benefits, and voluntary separation incentive from 

members of the Armed Forces subsequently receiving retired or retainer 

pay. 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2009 

Mrs. SHAHEEN (for herself and Mr. GREGG) introduced the following bill; 

which was read twice and referred to the Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to limit recoupments 

of separation pay, special separation benefits, and voluntary separation incentive from members of the Armed 

Forces subsequently receiving retired or retainer pay. 

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 Retired Pay 

5 Fairness Act of 2009’’. 


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1 SEC. 2. LIMITATIONS ON RECOUPMENT OF SEPARATION 

2 PAY, SPECIAL SEPARATION BENEFITS, AND 

3 VOLUNTARY SEPARATION INCENTIVE FROM 

4 MEMBERS SUBSEQUENTLY RECEIVING RE5 TIRED OR RETAINER PAY. 

6 (a) SEPARATION PAY AND SPECIAL SEPARATION

7 BENEFITS.—Section 1174(h)(1) of title 10, United States 

8 Code, is amended— 

9 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 

10 (2) in subparagraph (A), as so designated, by 

11 striking ‘‘so much of such pay as is based on the 

12 service for which he received separation pay under 

13 this section or separation pay, severance pay, or re14 adjustment pay under any other provision of law’’ 

15 and inserting ‘‘an amount, in such schedule of 

16 monthly installments as the Secretary of Defense 

17 shall specify taking into account the financial ability 

18 of the member to pay and avoiding the imposition of 

19 undue financial hardship on the member and mem20 ber’s dependents,’’; and 

21 (3) by adding at the end the following new sub22 paragraphs: 

23 ‘‘(B) The amount deducted under subparagraph (A) 

24 from a payment of retired or retainer pay may not exceed 

25 25 percent of the amount of the member’s retired or re26 tainer pay for that month unless the member requests or 


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1 consents to deductions at an accelerated rate. The Sec2 retary concerned shall consult with the member regarding 

3 the repayment rate to be imposed, taking into account the 

4 financial ability of the member to pay and avoiding the 

5 imposition of an undue hardship on the member and the 

6 member’s dependents. 

7 ‘‘(C) The deduction of amounts from the retired or 

8 retainer pay of a member under this paragraph may not 

9 commence until the date that is 90 days after the date 

10 on which the Secretary concerned notifies the member of 

11 the deduction of such amounts under this paragraph. Any 

12 notice under this subparagraph shall be designed to pro13 vide clear and comprehensive information on the deduction 

14 of amounts under this paragraph, including information 

15 on the determination of the amount and period of install16 ments under this paragraph. 

17 ‘‘(D) The Secretary concerned may waive the deduc18 tion of amounts from the retired or retainer pay of a mem19 ber under this paragraph if the Secretary determines that 

20 deduction of such amounts would result in a financial 

21 hardship for the member.’’. 

22 (b) VOLUNTARY SEPARATION INCENTIVE.—Section 

23 1175(e)(3) of such title is amended— 

24 (1) in subparagraph (A), by striking ‘‘so much 

25 of such pay as is based on the service for which he 


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1 received the voluntary separation incentive’’ and in2 serting ‘‘an amount, in such schedule of monthly in3 stallments as the Secretary of Defense shall specify 

4 taking into account the financial ability of the mem5 ber to pay and avoiding the imposition of undue fi6 nancial hardship on the member and member’s de7 pendents,’’; 

8 (2) by redesignating subparagraph (B) as sub9 paragraph (C); 

10 (3) by inserting after subparagraph (A) the fol11 lowing new subparagraph: 

12 ‘‘(B) The amount deducted under subparagraph (A) 

13 from a payment of retired or retainer pay may not exceed 

14 25 percent of the amount of the member’s retired or re15 tainer pay for that month unless the member requests or 

16 consents to deductions at an accelerated rate. The Sec17 retary concerned shall consult with the member regarding 

18 the repayment rate to be imposed, taking into account the 

19 financial ability of the member to pay and avoiding the 

20 imposition of an undue hardship on the member and the 

21 member’s dependents.’’; and 

22 (4) by adding at the end the following new sub23 paragraphs: 

24 ‘‘(D) The deduction of amounts from the retired or 

25 retainer pay of a member under this paragraph may not 


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1 commence until the date that is 90 days after the date 

2 on which the Secretary concerned notifies the member of 

3 the deduction of such amounts under this paragraph. Any 

4 notice under this subparagraph shall be designed to pro5 vide clear and comprehensive information on the deduction 

6 of amounts under this paragraph, including information 

7 on the determination of the amount and period of install8 ments under this paragraph. 

9 ‘‘(E) The Secretary concerned may waive the deduc10 tion of amounts from the retired or retainer pay of a mem11 ber under this paragraph if the Secretary determines that 

12 deduction of such amounts would result in a financial 

13 hardship for the member.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall take effect on the first day of the first 

16 month beginning on or after the date of the enactment 

17 of this Act and apply to deductions made from the retired 

18 or retainer pay of members of the uniformed services for 

19 that month and subsequent months. 

Æ 


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