II 

108TH CONGRESS 

2D SESSION S. 2035

To amend title 10, United States Code, to revise the age and service requirements for eligibility to receive retired pay for non-regular service; to 

expand certain authorities to provide health care benefits for Reserves 

and their families, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 28, 2004

Mr. GRAHAM of South Carolina (for himself, Mr. DASCHLE, Mr. LEAHY, Mr. 

DEWINE, Mrs. CLINTON, Ms. MURKOWSKI, Mr. ALLEN, Mr. SMITH, Ms. 

LANDRIEU, Mr. REID, Mr. LAUTENBERG, Mr. PRYOR, Mr. KERRY, Ms. 

CANTWELL, Mrs. LINCOLN, Mr. AKAKA, Mr. LIEBERMAN, Mr. SCHUMER, 

Mrs. BOXER, Mrs. MURRAY, Mr. DORGAN, Mr. JOHNSON, Mr. BINGAMAN, Mr. DAYTON, Mr. KENNEDY, Ms. MIKULSKI, and Mr. NELSON of 

Nebraska) 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 revise the age 

and service requirements for eligibility to receive retired 

pay for non-regular service; to expand certain authorities 

to provide health care benefits for Reserves and their 

families, 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,
2

•S 2035 IS 

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Guard and Reserve 

3 Readiness and Retention Act of 2004’’. 

4 SEC. 2. ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR 

5 SERVICE. 

6 (a) AGE AND SERVICE REQUIREMENTS.—Subsection 

7 (a) of section 12731 of title 10, United States Code, is 

8 amended to read as follows: 

9 ‘‘(a)(1) Except as provided in subsection (c), a person 

10 is entitled, upon application, to retired pay computed 

11 under section 12739 of this title, if the person—

12 ‘‘(A) satisfies one of the combinations of re13 quirements for minimum age and minimum number 

14 of years of service (computed under section 12732 of 

15 this title) that are specified in the table in para16 graph (2); 

17 ‘‘(B) performed the last six years of qualifying 

18 service while a member of any category named in 

19 section 12732(a)(1) of this title, but not while a 

20 member of a regular component, the Fleet Reserve, 

21 or the Fleet Marine Corps Reserve, except that in 

22 the case of a person who completed 20 years of serv23 ice computed under section 12732 of this title before 

24 October 5, 1994, the number of years of qualifying 

25 service under this subparagraph shall be eight; and 
3

•S 2035 IS 

1 ‘‘(C) is not entitled, under any other provision 

2 of law, to retired pay from an armed force or re3 tainer pay as a member of the Fleet Reserve or the 

4 Fleet Marine Corps Reserve. 

5 ‘‘(2) The combinations of minimum age and min6 imum years of service required of a person under subpara7 graph (A) of paragraph (1) for entitlement to retired pay 

8 as provided in such paragraph are as follows:

‘‘Age, in years, is The minimum years of service 

at least: required for that age is: 

53 ...................................................................................................... 34

54 ...................................................................................................... 32

55 ...................................................................................................... 30

56 ...................................................................................................... 28

57 ...................................................................................................... 26

58 ...................................................................................................... 24

59 ...................................................................................................... 22

60 ...................................................................................................... 20.’’.

9 (b) 20-YEAR LETTER.—Subsection (d) of such sec10 tion is amended by striking ‘‘the years of service required 

11 for eligibility for retired pay under this chapter’’ in the 

12 first sentence and inserting ‘‘20 years of service computed 

13 under section 12732 of this title.’’. 

14 (c) EFFECTIVE DATE.—This section and the amend15 ments made by this subsection (a) shall take effect on the 

16 first day of the first month beginning on or after the date 

17 of the enactment of this Act and shall apply with respect 

18 to retired pay payable for that month and subsequent 

19 months. 
4

•S 2035 IS 

1 SEC. 3. EXPANDED ELIGIBILITY OF READY RESERVE MEM2 BERS UNDER TRICARE PROGRAM. 

3 (a) UNCONDITIONAL ELIGIBILITY.—Subsection (a) 

4 of section 1076b of title 10, United States Code, is amend5 ed by striking ‘‘and receive benefits’’ and all that follows 

6 through ‘‘an employer-sponsored health benefits plan’’. 

7 (b) PERMANENT AUTHORITY.—Subsection (l) of such 

8 section is repealed. 

9 (c) CONFORMING REPEAL OF OBSOLETE PROVI10 SIONS.—Such section is further amended—

11 (1) by striking subsections (i) and (j); and 

12 (2) by redesignating subsection (k) as sub13 section (i). 

14 SEC. 4. CONTINUATION OF NON-TRICARE HEALTH BENE15 FITS PLAN COVERAGE FOR CERTAIN RE16 SERVES CALLED OR ORDERED TO ACTIVE 

17 DUTY AND THEIR DEPENDENTS. 

18 (a) REQUIRED CONTINUATION.—(1) Chapter 55 of 

19 title 10, United States Code, is amended by inserting after 

20 section 1078a the following new section: 

21 ‘‘§ 1078b. Continuation of non-TRICARE health bene22 fits plan coverage for dependents of cer23 tain Reserves called or ordered to active 

24 duty 

25 ‘‘(a) PAYMENT OF PREMIUMS.—The Secretary con26 cerned shall pay the applicable premium to continue in 
5

•S 2035 IS 

1 force any qualified health benefits plan coverage for the 

2 members of the family of an eligible reserve component 

3 member for the benefits coverage continuation period if

4 timely elected by the member in accordance with regula5 tions prescribed under subsection (j). 

6 ‘‘(b) ELIGIBLE MEMBER; FAMILY MEMBERS.—(1) A 

7 member of a reserve component is eligible for payment of 

8 the applicable premium for continuation of qualified 

9 health benefits plan coverage under subsection (a) while 

10 serving on active duty pursuant to a call or order issued 

11 under a provision of law referred to in section 

12 101(a)(13)(B) of this title during a war or national emer13 gency declared by the President or Congress. 

14 ‘‘(2) For the purposes of this section, the members 

15 of the family of an eligible reserve component member in16 clude only the member’s dependents described in subpara17 graphs (A), (D), and (I) of section 1072(2) of this title. 

18 ‘‘(c) QUALIFIED HEALTH BENEFITS PLAN COV19 ERAGE.—For the purposes of this section, health benefits 

20 plan coverage for the members of the family of a reserve 

21 component member called or ordered to active duty is 

22 qualified health benefits plan coverage if—

23 ‘‘(1) the coverage was in force on the date on 

24 which the Secretary notified the reserve component 

25 member that issuance of the call or order was pend-
6

•S 2035 IS 

1 ing or, if no such notification was provided, the date 

2 of the call or order; 

3 ‘‘(2) on such date, the coverage applied to the 

4 reserve component member and members of the fam5 ily of the reserve component member; and 

6 ‘‘(3) the coverage has not lapsed. 

7 ‘‘(d) APPLICABLE PREMIUM.—The applicable pre8 mium payable under this section for continuation of health 

9 benefits plan coverage for the family members of a reserve 

10 component member is the amount of the premium payable 

11 by the member for the coverage of the family members. 

12 ‘‘(e) MAXIMUM AMOUNT.—The total amount that the 

13 Department of Defense may pay for the applicable pre14 mium of a health benefits plan for the family members 

15 of a reserve component member under this section in a 

16 fiscal year may not exceed the amount determined by mul17 tiplying—

18 ‘‘(1) the sum of one plus the number of the 

19 family members covered by the health benefits plan, 

20 by 

21 ‘‘(2) the per capita cost of providing TRICARE 

22 coverage and benefits for dependents under this 

23 chapter for such fiscal year, as determined by the 

24 Secretary of Defense. 
7

•S 2035 IS 

1 ‘‘(f) BENEFITS COVERAGE CONTINUATION PE2 RIOD.—The benefits coverage continuation period under 

3 this section for qualified health benefits plan coverage for 

4 the family members of an eligible reserve component mem5 ber called or ordered to active duty is the period that—

6 ‘‘(1) begins on the date of the call or order; and 

7 ‘‘(2) ends on the earlier of—

8 ‘‘(A) the date on which the reserve compo9 nent member’s eligibility for transitional health 

10 care under section 1145(a) of this title termi11 nates under paragraph (3) of such section; 

12 ‘‘(B) the date on which the reserve compo13 nent member elects to terminate the continued 

14 qualified health benefits plan coverage of the 

15 member’s family members; or 

16 ‘‘(C) December 31, 2005. 

17 ‘‘(g) EXTENSION OF PERIOD OF COBRA COV18 ERAGE.—Notwithstanding any other provision of law—

19 ‘‘(1) any period of coverage under a COBRA 

20 continuation provision (as defined in section 

21 9832(d)(1) of the Internal Revenue Code of 1986) 

22 for an eligible reserve component member under this 

23 section shall be deemed to be equal to the benefits 

24 coverage continuation period for such member under 

25 this section; and 
8

•S 2035 IS 

1 ‘‘(2) with respect to the election of any period 

2 of coverage under a COBRA continuation provision 

3 (as so defined), rules similar to the rules under sec4 tion 4980B(f)(5)(C) of such Code shall apply. 

5 ‘‘(h) NONDUPLICATION OF BENEFITS.—A member of 

6 the family of a reserve component member who is eligible 

7 for benefits under qualified health benefits plan coverage 

8 paid on behalf of the reserve component member by the 

9 Secretary concerned under this section is not eligible for 

10 benefits under the TRICARE program during a period of 

11 the coverage for which so paid. 

12 ‘‘(i) REVOCABILITY OF ELECTION.—A reserve com13 ponent member who makes an election under subsection 

14 (a) may revoke the election. Upon such a revocation, the 

15 member’s family members shall become eligible for bene16 fits under the TRICARE program as provided for under 

17 this chapter. 

18 ‘‘(j) REGULATIONS.—The Secretary of Defense shall 

19 prescribe regulations for carrying out this section. The 

20 regulations shall include such requirements for making an 

21 election of payment of applicable premiums as the Sec22 retary considers appropriate.’’. 

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

24 chapter is amended by inserting after the item relating 

25 to section 1078a the following new item:
9

•S 2035 IS 

‘‘1078b. Continuation of non-TRICARE health benefits plan coverage for dependents of certain Reserves called or ordered to active duty.’’.

1 (b) APPLICABILITY.—Section 1078b of title 10, 

2 United States Code (as added by subsection (a)), shall 

3 apply with respect to calls or orders of members of reserve 

4 components of the Armed Forces to active duty as de5 scribed in subsection (b) of such section, that are issued 

6 by the Secretary of a military department before, on, or 

7 after the date of the enactment of this Act, but only with 

8 respect to qualified health benefits plan coverage (as de9 scribed in subsection (c) of such section) that is in effect 

10 on or after the date of the enactment of this Act.

Æ