I 

108TH CONGRESS 

2D SESSION H. R. 5354 

To enhance the benefits and protections for members of the reserve components of the Armed Forces who are called or ordered to extended active 

duty, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 9, 2004 

Ms. HOOLEY of Oregon (for herself, Mr. HOLDEN, Mr. CAPUANO, Mr. 

SANDLIN, Mr. SCOTT of Georgia, Ms. CARSON of Indiana, Mr. PAYNE, 

Mr. RUPPERSBERGER, Mr. DEFAZIO, Mr. HOLT, Mr. KILDEE, Mr. 

STARK, Mr. STUPAK, Ms. ESHOO, Mr. GRIJALVA, Mr. BISHOP of Georgia, Mrs. CAPPS, Mr. BERRY, Mr. BELL, Mr. LUCAS of Kentucky, Ms. 

KILPATRICK, Mr. CARDOZA, Mr. ROSS, Mr. SCOTT of Virginia, Ms. 

LINDA T. SA ́NCHEZ of California, Mr. BISHOP of New York, Mr. 

MCNULTY, Mr. WU, Mr. DAVIS of Tennessee, Mr. HONDA, Mr. LARSEN

of Washington, Mr. SMITH of Washington, Ms. DEGETTE, Mr. PASTOR, 

Mr. KIND, Mr. FRANK of Massachusetts, Ms. JACKSON-LEE of Texas, 

Mr. MCGOVERN, Mr. KENNEDY of Rhode Island, Mr. STENHOLM, Mr. 

SERRANO, and Mr. BLUMENAUER) introduced the following bill; which 

was referred to the Committee on Armed Services, and in addition to the 

Committees on Energy and Commerce, Education and the Workforce, 

Ways and Means, and Veterans’ Affairs, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To enhance the benefits and protections for members of 

the reserve components of the Armed Forces who are 

called or ordered to extended active duty, and for other 

purposes. 
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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 ‘‘National Guard and 

5 Reserve Bill of Rights Act of 2004’’. 

6 SEC. 2. PERIODS OF DEPLOYMENTS OF RESERVES OVER7 SEAS. 

8 (a) UNITED STATES CENTRAL COMMAND DEPLOY9 MENTS.— 

10 (1) LIMITATION.—During a period when there 

11 is in effect a policy of assigning units or members 

12 of one or more of the active components of the 

13 Armed Forces to duty in the area of responsibility 

14 of the United States Central Command for a speci15 fied period of time of not less than one year, the 

16 Secretary of Defense shall provide that the length of 

17 such an assignment in the case of members of the 

18 reserve components of the Armed Forces may not 

19 exceed the length of such period for the cor20 responding active component reduced by the period 

21 of time between the date of entry of the reserve com22 ponent members onto active duty and the date of the 

23 deployment of such members for such assignment. 

24 (2) TRANSITION.—Paragraph (1) applies to 

25 members of reserve components assigned to duty in 
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1 the area of responsibility of the United States Cen2 tral Command on or after the date of the enactment 

3 of this Act and to such members assigned to such 

4 duty before such date who as of the date of the en5 actment of this Act have more than 90 days remain6 ing in such assignment. 

7 (b) COMMUNICATION OF LENGTHS OF DEPLOYMENT

8 PERIODS TO RESERVES IN OPERATION IRAQI FREE9 DOM.— 

10 (1) FINDINGS.—Congress makes the following 

11 findings: 

12 (A) Members of all components of the 

13 Armed Forces, active and reserve, exhibit a re14 markable commitment and willingness to serve 

15 their country in Iraq and Afghanistan, and 

16 other United States military efforts around the 

17 world and, in doing so, frequently face grave 

18 risks and difficulties. 

19 (B) While the members of the Armed 

20 Forces have clearly and consistently dem21 onstrated their dedication to duty, much uncer22 tainty has arisen among them about the lengths 

23 of their deployments and when they will be re24 turned to their loved ones. This confusion im25 pairs our troops’ morale and places undue 
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1 strain on their families and their civilian em2 ployers. 

3 (C) Fairness to the men and women of the 

4 Armed Forces deployed overseas requires that 

5 the Department of Defense— 

6 (i) have clear policies regarding 

7 lengths of deployment periods; and 

8 (ii) communicate these policies and 

9 other deployment-related information to 

10 them and their families. 

11 (D) While many military units were de12 ployed months before Operation Iraqi Freedom 

13 was launched on March 19, 2003, the Depart14 ment of Defense did not announce a policy 

15 about the length of deployments until August 

16 2003. 

17 (E) Even after the Department of Defense 

18 issued its so-called ‘‘one year boots-on-the19 ground’’ policy regarding lengths of deployment 

20 periods, many of the members of units deployed 

21 overseas in Operation Iraqi Freedom learned 

22 shortly before their scheduled return dates that 

23 their deployments would be extended for 

24 months beyond the one-year period provided 

25 under that policy. 
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1 (2) REPORT.— 

2 (A) REQUIREMENT FOR REPORT.—Not 

3 later than March 1, 2005, the Secretary of De4 fense shall submit to the Committees on Armed 

5 Services of the Senate and the House of Rep6 resentatives a report on Department of Defense 

7 policies governing the length of deployment pe8 riods applicable to members of reserve compo9 nents of the Armed Forces in connection with 

10 Operation Iraqi Freedom, and on the commu11 nication between the Department of Defense 

12 and reserve component personnel and their 

13 families regarding the length of the deployment 

14 periods. 

15 (B) CONSULTATION REQUIREMENT.—In 

16 preparing the report under this section the Sec17 retary shall consult with the Chairman and 

18 other members of the Joint Chiefs of Staff and 

19 with such other officials as the Secretary con20 siders appropriate. 

21 (C) CONTENT.—The report under this 

22 paragraph shall contain a discussion of the 

23 matters described in subparagraph (A), includ24 ing the following matters: 
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1 (i) The process by which the Depart2 ment of Defense determined its policy re3 garding the length of deployment periods. 

4 (ii) The reason that no such policy 

5 was in place before Operation Iraqi Free6 dom began. 

7 (iii) A comparison of the policy during 

8 Operation Iraqi Freedom with Department 

9 of Defense deployment policies that applied 

10 to previous contingency operations. 

11 (iv) The timeliness of the process for 

12 notifying reserve component units for acti13 vation. 

14 (v) The process for communicating 

15 with activated reserve component members 

16 and their families about demobilization 

17 schedules. 

18 (vi) The family support programs pro19 vided by the National Guard and other re20 serve components for families of activated 

21 Reserves. 

22 (vii) An assessment of lessons learned 

23 about how the increased operations tempo 

24 of the National Guard and other reserve 

25 components can be expected to affect read-
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1 iness, recruitment and retention, civilian 

2 employers of Reserves, and equipment and 

3 supply resources of the National Guard 

4 and the other reserve components. 

5 (D) MATTERS FOR PARTICULAR EMPHA6 SIS.—In the discussion of the matters included 

7 in the report under this subsection, the Sec8 retary of Defense shall place particular empha9 sis on— 

10 (i) lessons learned, including defi11 ciencies identified; and 

12 (ii) near-term and long-term correc13 tive actions to address the identified defi14 ciencies. 

15 (E) FORM OF REPORT.—The report shall 

16 be submitted in unclassified form, but may in17 clude a classified annex. 

18 SEC. 3. MILITARY PAY. 

19 (a) CORRECTION OF PAY PROBLEMS FOR ACTIVATED

20 RESERVE COMPONENT PERSONNEL.— 

21 (1) REQUIREMENT FOR SENIOR LEVEL AC22 TION.—The Secretary of the Army shall designate a 

23 senior level official of the Department of the Army 

24 to implement— 
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1 (A) the recommendations for executive ac2 tion set forth in the report of the Comptroller 

3 General of the United States entitled ‘‘Military 

4 Pay, Army National Guard Personnel Mobilized 

5 to Active Duty Experienced Significant Pay 

6 Problems’’, dated November 2003; and 

7 (B) the recommendations for executive ac8 tion set forth in the report of the Comptroller 

9 General of the United States entitled ‘‘Military 

10 Pay, Army Reserve Soldiers Mobilized to Active 

11 Duty Experienced Significant Pay Problems’’, 

12 dated August 2004. 

13 (2) SUPERVISION BY COMPTROLLER OF DE14 PARTMENT OF DEFENSE.—The official designated 

15 under paragraph (1) shall report directly to, and be 

16 subject to the direction of, the Under Secretary of 

17 Defense (Comptroller) regarding performance of the 

18 duties that the official is designated to carry out 

19 under such paragraph. 

20 (3) TERMINATION OF REQUIREMENT.—The 

21 designation under paragraph (1) shall terminate 

22 upon the certification of the Under Secretary of De23 fense (Comptroller) to Congress that all rec24 ommendations referred to in such paragraph have 

25 been implemented. 
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1 (b) REENLISTMENT BONUS FOR SELECTED RE2 SERVE.— 

3 (1) EXPANDED ELIGIBILITY.—Subsection (a)(1) 

4 of section 308b of title 37, United States Code, is 

5 amended by striking ‘‘14 years’’ and inserting ‘‘17 

6 years’’. 

7 (2) INCREASED MAXIMUM AMOUNT.—Sub8 section (b) of such section is amended by striking 

9 ‘‘(b) BONUS AMOUNT; PAYMENT.—(1) The amount 

10 of a bonus under this section may not exceed—’’ 

11 and all that follows through the end of paragraph 

12 (1) and inserting the following: 

13 ‘‘(b) BONUS AMOUNT.—The amount of a bonus 

14 under this section may not exceed $10,000.’’. 

15 (3) OPTION TO RECEIVE LUMP-SUM PAY16 MENT.—Section 308b of title 37, United States 

17 Code, is further amended— 

18 (A) by striking paragraphs (1) and (2) of 

19 subsection (c); and 

20 (B) in paragraph (2) of subsection (b)— 

21 (i) by striking ‘‘(2) Any bonus payable 

22 under this section’’ and inserting the fol23 lowing: 

24 ‘‘(c) PAYMENT IN LUMP SUM OR INSTALLMENTS.— 

25 (1) A bonus payable to a member under this section shall 
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1 be paid, upon the election of the member, in one lump 

2 sum or in partial payments under paragraph (2). 

3 ‘‘(2) Any bonus payable in partial payments under 

4 this section’’. 

5 (4) REDESIGNATION OF PROVISIONS.—Such 

6 section is further amended— 

7 (A) by redesignating subsections (d), (e), 

8 and (f), as subsections (e), (f), and (g), respec9 tively; and 

10 (B) in subsection (c)(3)— 

11 (i) by striking ‘‘(3) In the case of’’ 

12 and inserting ‘‘(d) PERSONNEL IN CER13 TAIN CONTINGENCY OPERATIONS.—In the 

14 case of’’; and 

15 (ii) by striking ‘‘paragraph (1)(B) 

16 or’’. 

17 SEC. 4. TRICARE FOR RESERVE COMPONENT PERSONNEL. 

18 (a) EXPANDED ELIGIBILITY OF READY RESERVE

19 MEMBERS UNDER TRICARE PROGRAM.— 

20 (1) UNCONDITIONAL ELIGIBILITY.—Subsection 

21 (a) of section 1076b of title 10, United States Code, 

22 is amended by striking ‘‘is eligible, subject to sub23 section (h), to enroll in TRICARE’’ and all that fol24 lows through ‘‘an employer-sponsored health benefits 

25 plan’’ and inserting ‘‘, except for a member who is 
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1 enrolled or is eligible to enroll in a health benefits 

2 plan under chapter 89 of title 5, is eligible to enroll 

3 in TRICARE, subject to subsection (h)’’. 

4 (2) PERMANENT AUTHORITY.—Subsection (l) of 

5 such section is repealed. 

6 (3) CONFORMING REPEAL OF OBSOLETE PROVI7 SIONS.—Such section is further amended— 

8 (A) by striking subsections (i) and (j); and 

9 (B) by redesignating subsection (k) as sub10 section (i). 

11 (b) CONTINUATION OF NON-TRICARE HEALTH

12 BENEFITS PLAN COVERAGE FOR CERTAIN RESERVES

13 CALLED OR ORDERED TO ACTIVE DUTY AND THEIR DE14 PENDENTS.— 

15 (1) REQUIRED CONTINUATION.— 

16 (A) REQUIREMENT.—Chapter 55 of title 

17 10, United States Code, is amended by insert18 ing after section 1078a the following new sec19 tion: 

20 ‘‘§ 1078b. Continuation of non-TRICARE health bene21 fits plan coverage for dependents of cer22 tain Reserves called or ordered to active 

23 duty 

24 ‘‘(a) PAYMENT OF PREMIUMS.—The Secretary con25 cerned shall pay the applicable premium to continue in 
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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-
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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. 
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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; or 

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. 

16 ‘‘(g) EXTENSION OF PERIOD OF COBRA COV17 ERAGE.—Notwithstanding any other provision of law— 

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

19 continuation provision (as defined in section 

20 9832(d)(1) of the Internal Revenue Code of 1986) 

21 for an eligible reserve component member under this 

22 section shall be deemed to be equal to the benefits 

23 coverage continuation period for such member under 

24 this section; and 
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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 (B) CLERICAL AMENDMENT.—The table of 

24 sections at the beginning of such chapter is 
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1 amended by inserting after the item relating to 

2 section 1078a the following new item: 

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

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

4 United States Code (as added by paragraph (1)), 

5 shall apply with respect to calls or orders of mem6 bers of reserve components of the Armed Forces to 

7 active duty as described in subsection (b) of such 

8 section, that are issued by the Secretary of a military 

9 department before, on, or after the date of the enact10 ment of this Act, but only with respect to qualified 

11 health benefits plan coverage (as described in sub12 section (c) of such section) that is in effect on or after 

13 the date of the enactment of this Act. 

14 SEC. 5. CHILD CARE FOR CHILDREN OF MEMBERS OF 

15 ARMED FORCES ON ACTIVE DUTY FOR OPER16 ATION ENDURING FREEDOM OR OPERATION 

17 IRAQI FREEDOM. 

18 (a) CHILD CARE FOR CHILDREN WITHOUT ACCESS

19 TO MILITARY CHILD CARE.— 

20 (1) AUTHORITY.—In any case where the chil21 dren of a covered member of the Armed Forces are 

22 geographically dispersed and do not have practical 

23 access to a military child development center, the 

24 Secretary of Defense may, to the extent funds are 
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1 available for such purpose, provide such funds as are 

2 necessary permit the member’s family to secure ac3 cess for such children to State licensed child care 

4 and development programs and activities in the pri5 vate sector that are similar in scope and quality to 

6 the child care and development programs and activi7 ties the Secretary would otherwise provide access to 

8 under subchapter II of chapter 88 of title 10, United 

9 States Code, and other applicable provisions of law. 

10 (2) PROCEDURES.—Funds may be provided 

11 under paragraph (1) in accordance with the provi12 sions of section 1798 of title 10, United States 

13 Code, or by such other mechanism as the Secretary 

14 considers appropriate. 

15 (3) PRIORITIES.—The Secretary shall prescribe 

16 in regulations priorities for the allocation of funds 

17 for the provision of access to child care under para18 graph (1) in circumstances where funds are inad19 equate to provide all children described in that para20 graph with access to child care as described in that 

21 paragraph. 

22 (b) PRESERVATION OF SERVICES AND PROGRAMS.— 

23 The Secretary shall provide for the attendance and partici24 pation of children in military child development centers 

25 and child care and development programs and activities 
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1 under subsection (a) in a manner that preserves the scope 

2 and quality of child care and development programs and 

3 activities otherwise provided by the Secretary. 

4 (c) FUNDING.—Amounts otherwise available to the 

5 Department of Defense and the military departments 

6 under this Act may be available for purposes of providing 

7 access to child care under subsection (a). 

8 (d) DEFINITIONS.—In this section: 

9 (1) COVERED MEMBERS OF THE ARMED

10 FORCES.—The term ‘‘covered members of the Armed 

11 Forces’’ means members of the Armed Forces on ac12 tive duty, including members of the Reserves who 

13 are called or ordered to active duty under a provi14 sion of law referred to in section 101(a)(13)(B) of 

15 title 10, United States Code, for Operation Endur16 ing Freedom or Operation Iraqi Freedom. 

17 (2) MILITARY CHILD DEVELOPMENT CENTER.— 

18 The term ‘‘military child development center’’ has 

19 the meaning given such term in section 1800(1) of 

20 title 10, United States Code. 

21 SEC. 6. RIGHTS AND DUTIES UNDER USERRA. 

22 (a) REQUIREMENT FOR EMPLOYERS TO PROVIDE

23 NOTICE OF RIGHTS AND DUTIES UNDER USERRA.— 

24 (1) NOTICE.— 
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1 (A) REQUIREMENT FOR NOTICE.—Chapter 

2 43 of title 38, United States Code, is amended 

3 by adding at the end the following new section: 

4 ‘‘§ 4334. Notice of rights and duties 

5 ‘‘(a) REQUIREMENT TO PROVIDE NOTICE.—Each 

6 employer shall provide to persons entitled to rights and 

7 benefits under this chapter a notice of the rights, benefits, 

8 and obligations of such persons and such employers under 

9 this chapter. The requirement for the provision of notice 

10 under this section may be met by the posting of the notice 

11 where employers customarily place notices for employees. 

12 ‘‘(b) CONTENT OF NOTICE.—The Secretary shall 

13 provide to employers the text of the notice to be provided 

14 under this section.’’. 

15 (B) CLERICAL AMENDMENT.—The table of 

16 sections at the beginning of such chapter is 

17 amended by adding at the end the following 

18 new item: 

‘‘4334. Notice of rights and duties.’’. 

19 (2) IMPLEMENTATION.— 

20 (A) REQUIREMENT.—Not later than the 

21 date that is 90 days after the date of the enact22 ment of this Act, the Secretary of Labor shall 

23 make available to employers the notice required 

24 under section 4334 of title 38, United States 

25 Code, as added by paragraph (1). 
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1 (B) APPLICABILITY.—The amendments 

2 made by this subsection shall apply to employ3 ers under chapter 43 of such title on and after 

4 the first date referred to in subparagraph (A). 

5 (b) DEMONSTRATION PROJECT FOR REFERRAL OF

6 USERRA CLAIMS AGAINST FEDERAL AGENCIES TO THE

7 OFFICE OF SPECIAL COUNSEL.— 

8 (1) ESTABLISHMENT OF PROJECT.—The Sec9 retary of Labor and the Office of Special Counsel 

10 shall carry out a demonstration project under which 

11 certain claims against Federal executive agencies 

12 under the Uniformed Services Employment and Re13 employment Rights Act under chapter 43 of title 38, 

14 United States Code, are referred to, or otherwise re15 ceived by, the Office of Special Counsel for assist16 ance, including investigation and resolution of the 

17 claim as well as enforcement of rights with respect 

18 to the claim. 

19 (2) REFERRAL OF ALL PROHIBITED PER20 SONNEL ACTION CLAIMS TO THE OFFICE OF SPE21 CIAL.— 

22 (A) COVERED CLAIMS.—Under the dem23 onstration project, the Office of Special Counsel 

24 shall receive and investigate all claims under 

25 the Uniformed Services Employment and Reem-
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1 ployment Rights Act with respect to Federal ex2 ecutive agencies in cases where the Office of 

3 Special Counsel has jurisdiction over related 

4 claims pursuant to section 1212 of title 5, 

5 United States Code. 

6 (B) RELATED CLAIMS.—For purposes of 

7 subparagraph (A), a related claim is a claim in8 volving the same Federal executive agency and 

9 the same or similar factual allegations or legal 

10 issues as those being pursued under a claim 

11 under the Uniformed Services Employment and 

12 Reemployment Rights Act. 

13 (3) REFERRAL OF OTHER CLAIMS AGAINST

14 FEDERAL EXECUTIVE.— 

15 (A) OTHER CLAIMS.—Under the dem16 onstration project, the Secretary— 

17 (i) shall refer to the Office of Special 

18 Counsel all claims described in subpara19 graph (B) made during the period of the 

20 demonstration project; and 

21 (ii) may refer any claim described in 

22 subparagraph (B) filed before the dem23 onstration project that is pending before 

24 the Secretary at the beginning of the dem25 onstration project. 
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1 (B) COVERED CLAIMS.—A claim referred 

2 to in subparagraph (A) is a claim under chapter 

3 43 of title 38, United States Code, against a 

4 Federal executive agency by a claimant with a 

5 social security account number with an odd 

6 number as its terminal digit, or, in the case of 

7 a claim that does not contain a social security 

8 account number, a case number assigned to the 

9 claim with an odd number as its terminal digit. 

10 (4) ADMINISTRATION OF DEMONSTRATION — 

11 (A) OFFICE OF SPECIAL COUNSEL.—The 

12 Office of Special Counsel shall administer the 

13 demonstration project. The Secretary shall co14 operate with the Office of Special Counsel in 

15 carrying out the demonstration project. 

16 (B) LAW ADMINISTERED BY THE SEC17 RETARY OF VETERANS AFFAIRS.—In the case of 

18 any claim referred to, or otherwise received by, 

19 the Office of Special Counsel under the dem20 onstration project, any reference to the ‘‘Sec21 retary’’ in sections 4321, 4322, and 4326 of 

22 title 38, United States Code, is deemed a ref23 erence to the ‘‘Office of Special Counsel’’. 

24 (C) RETENTION OF JURISDICTION OVER

25 REFERRED CLAIMS.—In the case of any claim 
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1 referred to, or otherwise received by, the Office 

2 of Special Counsel under the demonstration 

3 project, the Office of Special Counsel shall re4 tain administrative jurisdiction over the claim. 

5 (5) PERIOD OF PROJECT.—The demonstration 

6 project shall be carried out during the period begin7 ning on the date that is 60 days after the date of 

8 the enactment of this Act, and ending on September 

9 30, 2007. 

10 (6) PERIODIC EVALUATIONS.—The Comptroller 

11 General of the United States shall conduct periodic 

12 evaluations of the demonstration project under this 

13 subsection. 

14 (7) REPORT ON EVALUATIONS.—Not later than 

15 April 1, 2007, the Comptroller General shall submit 

16 to Congress a report on the evaluations conducted 

17 under paragraph (6). The report shall include the 

18 following information and recommendations: 

19 (A) A description of the operation and re20 sults of the demonstration program, includ21 ing— 

22 (i) the number of claims described in 

23 paragraph (3) referred to, or otherwise re24 ceived by, the Office of Special Counsel 
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1 and the number of such claims referred to 

2 the Secretary of Labor; and 

3 (ii) for each Federal executive agency, 

4 the number of claims resolved, the type of 

5 corrective action obtained, the period of 

6 time for final resolution of the claim, and 

7 the results obtained. 

8 (B) An assessment of whether referral to 

9 the Office of Special Counsel of claims under 

10 the demonstration project— 

11 (i) improved services to 

12 servicemembers and veterans; or 

13 (ii) significantly reduced or eliminated 

14 duplication of effort and unintended delays 

15 in resolving meritorious claims of those 

16 servicemembers and veterans. 

17 (C) An assessment of the feasibility and 

18 advisability of referring all claims under chapter 

19 43 of title 38, United States Code, against Fed20 eral executive agencies to the Office of Special 

21 Counsel for investigation and resolution. 

22 (D) Such other recommendations for ad23 ministrative action or legislation as the Comp24 troller General determines appropriate. 

25 (8) DEFINITIONS.—In this subsection: 
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1 (A) OFFICE OF SPECIAL COUNSEL.—The 

2 term ‘‘Office of Special Counsel’’ means the Of3 fice of Special Counsel established by section 

4 1211 of title 5, United States Code. 

5 (B) SECRETARY.—The term ‘‘Secretary’’ 

6 means the Secretary of Labor. 

7 (C) FEDERAL EXECUTIVE AGENCY.—The 

8 term ‘‘Federal executive agency’’ has the mean9 ing given that term in section 4303(5) of title 

10 38, United States Code. 

11 (c) USERRA IMPLEMENTING REGULATIONS.— 

12 (1) REQUIREMENT FOR REGULATIONS.—Sub13 sections (a) and (b)(1) of section 4331 of title 38, 

14 United States Code, are amended by striking ‘‘may 

15 prescribe’’ and inserting ‘‘shall prescribe’’. 

16 (2) CLARIFICATION OF RIGHT TO MERIT PAY

17 INCREASES.—The regulations prescribed for the im18 plementation of chapter 43 of title 38, United States 

19 Code, under section 4331 of such title shall include 

20 regulations that clarify that the entitlement of per21 sons returning to employment under such chapter to 

22 receive pay increases under merit pay systems of 

23 employers may not be denied on the basis of lack of 

24 work performance evaluations for periods of absence 

25 for active duty in the uniformed services. 
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1 SEC. 7. IMPROVED EDUCATIONAL ASSISTANCE BENEFITS 

2 FOR MEMBERS OF THE SELECTED RESERVE. 

3 (a) INCREASE IN AMOUNT OF BASIC EDUCATIONAL

4 ASSISTANCE.— 

5 (1) IN GENERAL.—Section 16131(b) of title 10, 

6 United States Code, is amended to read as follows: 

7 ‘‘(b) Except as provided in subsections (d) through 

8 (f), each educational assistance program established under 

9 subsection (a) shall provide for payment by the Secretary 

10 concerned, through the Secretary of Veterans Affairs, to 

11 each person entitled to educational assistance under this 

12 chapter who is pursuing a program of education of an edu13 cational assistance allowance at the following monthly 

14 rates: 

15 ‘‘(1) For such a program of education pursued 

16 on a full-time basis, at the monthly rate equal to the 

17 applicable percentage (as defined in paragraph (3)) 

18 of the rate that applies for the month under section 

19 3015(a)(1) of title 38. 

20 ‘‘(2)(A) Subject to subparagraph (B), for such 

21 a program of education pursued on less than a full22 time basis, at an appropriately reduced rate, as de23 termined under regulations which the Secretaries 

24 concerned shall prescribe. 

25 ‘‘(B) No payment may be made to a person for 

26 less than half-time pursuit of such a program of 
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1 education if tuition assistance is otherwise available 

2 to the person for such pursuit from the military de3 partment concerned. 

4 ‘‘(3) In this subsection, the term ‘applicable 

5 percentage’ means, with respect to months occurring 

6 during— 

7 ‘‘(A) fiscal year 2005, 33 percent; 

8 ‘‘(B) fiscal year 2006, 37 percent; 

9 ‘‘(C) fiscal year 2007, 41 percent; 

10 ‘‘(D) fiscal year 2008, 45 percent; and 

11 ‘‘(E) fiscal year 2009, and each subsequent 

12 fiscal year, 50 percent.’’. 

13 (2) EFFECTIVE DATE.—The amendments made 

14 by paragraph (1) shall take effect on October 1, 

15 2004, and shall apply with respect to educational as16 sistance allowances under section 16131(b) of such 

17 title paid for months after September 2004. 

18 (b) EXPANSION OF ELIGIBILITY REQUIREMENTS FOR

19 MEMBERS OF THE SELECTED RESERVE HAVING SERVED

20 ON ACTIVE DUTY FOR A PERIOD OF 24 NON-CONSECU21 TIVE MONTHS UNDER CHAPTER 30 OF TITLE 38, 

22 UNITED STATES CODE.— 

23 (1) CREDIT FOR 24 MONTHS OF ACTIVE DUTY

24 SERVICE OVER A PERIOD OF 5 YEARS.—Subsection 

25 3012(a) of title 38, United States Code, is amended 
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1 in paragraphs (1)(A)(i), (1)(B)(i), and (1)(C)(iii)(I) 

2 by striking ‘‘two years of continuous active duty’’ 

3 each place it appears and inserting ‘‘a cumulative pe4 riod of 24 months during any 5-year period’’. 

5 (2) CONFORMING AMENDMENT.—Subsection (b) 

6 of section 3012 of such title is amended in para7 graph (1) by striking ‘‘during such two years’’ and 

8 inserting ‘‘at any time during such 5-year period’’. 

9 (3) EFFECTIVE DATE.—The amendments made 

10 by this subsection shall apply on or after October 1, 

11 2005. 

12 SEC. 8. REDUCTION IN AGE FOR RECEIPT OF MILITARY RE13 TIRED PAY FOR NONREGULAR SERVICE. 

14 (a) REDUCTION IN AGE.—Section 12731(a)(1) of 

15 title 10, United States Code, is amended by striking ‘‘at 

16 least 60 years of age’’ and inserting ‘‘at least 55 years 

17 of age’’. 

18 (b) APPLICATION TO EXISTING PROVISIONS OF LAW

19 OR POLICY.—With respect to any provision of law, or of 

20 any policy, regulation, or directive of the executive branch, 

21 that refers to a member or former member of the uni22 formed services as being eligible for, or entitled to, retired 

23 pay under chapter 1223 of title 10, United States Code, 

24 but for the fact that the member or former member is 

25 under 60 years of age, such provision shall be carried out 
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1 with respect to that member or former member by sub2 stituting for the reference to being 60 years of age a ref3 erence to the age in effect for qualification for such retired 

4 pay under section 12731(a) of title 10, United States 

5 Code, as amended by subsection (a). 

6 (c) EFFECTIVE DATE.—The amendment made by 

7 subsection (a) shall take effect on the first day of the first 

8 month beginning on or after the date of the enactment 

9 of this Act and shall apply to retired pay payable for that 

10 month and subsequent months. 

11 SEC. 9. DEPUTY UNDER SECRETARY OF DEFENSE FOR PER12 SONNEL AND READINESS (RESERVE AF13 FAIRS). 

14 (a) ESTABLISHMENT OF POSITION.— 

15 (1) POSITION AND DUTIES.—Chapter 4 of title 

16 10, United States Code, is amended by inserting 

17 after section 136a the following new section: 

18 ‘‘§ 136b. Deputy Under Secretary of Defense for Per19 sonnel and Readiness (Reserve Affairs) 

20 ‘‘(a) There is a Deputy Under Secretary of Defense 

21 for Personnel and Readiness (Reserve Affairs), appointed 

22 from civilian life by the President, by and with the advice 

23 and consent of the Senate. 

24 ‘‘(b) The Deputy Under Secretary of Defense for Per25 sonnel and Readiness (Reserve Affairs) shall have as his 
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1 principal duty the overall supervision of reserve component 

2 affairs of the Department of Defense.’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of such chapter is amended 

5 by inserting after the item relating to section 136a 

6 the following new item: 

‘‘136b. Deputy Under Secretary of Defense for Personnel and Readiness (Reserve Affairs).’’. 

7 (b) EXECUTIVE LEVEL IV.—Section 5315 of title 5, 

8 United States Code, is amended by inserting after ‘‘Dep9 uty Under Secretary of Defense for Personnel and Readi10 ness.’’ the following: 

11 ‘‘Deputy Under Secretary of Defense for Per12 sonnel and Readiness (Reserve Affairs).’’. 

13 (c) ELIMINATION OF POSITION OF ASSISTANT SEC14 RETARY OF DEFENSE FOR RESERVE AFFAIRS.— 

15 (1) REPEAL OF REQUIREMENT FOR POSI16 TION.—Subsection (b) of section 138 of title 10, 

17 United States Code, is amended— 

18 (A) by striking paragraph (2); and 

19 (B) by redesignating paragraphs (3), (4), 

20 and (5), as paragraphs (2), (3), and (4), re21 spectively. 

22 (2) REDUCTION IN TOTAL NUMBER OF ASSIST23 ANT SECRETARIES OF DEFENSE.— 
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1 (A) AUTHORIZED NUMBER.—Subsection 

2 (a) of such section is amended by striking 

3 ‘‘nine’’ and inserting ‘‘eight’’. 

4 (B) CONFORMING AMENDMENT.—Section 

5 5315 of title 5, United States Code, is amended 

6 by striking ‘‘(9)’’ after ‘‘Assistant Secretaries of 

7 Defense’’ and inserting ‘‘(8)’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 subsection (c) shall take effect on the date on which a 

10 person is first appointed as Deputy Under Secretary of 

11 Defense for Personnel and Readiness (Reserve Affairs). 

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