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Subtitle C—Travel and
Transportation Allowances
SEC. 641. PAYMENT OF EXPENSES OF TRAVEL TO THE
UNITED STATES FOR OBSTETRICAL PUR-
POSES OF DEPENDENTS LOCATED IN VERY
REMOTE LOCATIONS OUTSIDE THE UNITED
STATES.
Section 1040 of title 10, United States Code, is
amended—
(1) by redesignating subsections (c) and (d) as
subsection (d) and (e), respectively; and
(2) by inserting after subsection (b) the following
new subsection (c):
‘‘(c) The Secretary of Defense may pay the travel ex-
penses and related expenses of a dependent of a member
of the uniformed services assigned to a very remote location
outside the United States, as determined by the Secretary,
for travel for obstetrical purposes to a location in the United
States.’’.
SEC. 642. PAYMENT OF MOVING EXPENSES FOR JUNIOR RE-
SERVE OFFICERS’ TRAINING CORPS INSTRUC-
TORS IN HARD-TO-FILL POSITIONS.
Section 2031 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection:
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‘‘(f)(1) When determined by the Secretary of the mili-
tary department concerned to be in the national interest
and agreed upon by the institution concerned, the institu-
tion may reimburse the moving expenses of a Junior Re-
serve Officers’ Training Corps instructor who executes a
written agreement to serve a minimum of two years of em-
ployment at the institution in a position that is hard-to-
fill for geographic or economic reasons and as determined
by the Secretary concerned.
‘‘(2) Any reimbursement of an instructor under para-
graph (1) is in addition to the minimum instructor pay
otherwise payable to the instructor.
‘‘(3) The Secretary concerned shall reimburse an insti-
tution making a reimbursement under paragraph (1) in an
amount equal to the amount of the reimbursement paid by
the institution under that paragraph. Any reimbursement
under this paragraph shall be made from funds appro-
priated for that purpose.
‘‘(4) The payment of reimbursements under para-
graphs (1) and (3) shall be subject to regulations prescribed
by the Secretary of Defense for purposes of this subsection.’’.
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Subtitle D—Retired Pay and
Survivor Benefits
SEC. 651. MODIFICATION OF SCHEME FOR PAYMENT OF
DEATH GRATUITY PAYABLE WITH RESPECT
TO MEMBERS OF THE ARMED FORCES.
(a) IN GENERAL.—Subsection (a) of section 1477 of
title 10, United States Code, is amended by striking all that
follows ‘‘on the following list:’’ and inserting the following:
‘‘(1) To any individual designated by the person
in writing.
‘‘(2) If there is no person so designated, to the
surviving spouse of the person.
‘‘(3) If there is none of the above, to the children
(as prescribed by subsection (b)) of the person and the
descendants of any deceased children by representa-
tion.
‘‘(4) If there is none of the above, to the parents
(as prescribed by subsection (c)) of the person or the
survivor of them.
‘‘(5) If there is none of the above, to the duly ap-
pointed executor or administrator of the estate of the
person.
‘‘(6) If there is none of the above, to other next
of kin of the person entitled under the laws of domi-
cile of the person at the time of the person’s death.’’.
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(b) CONFORMING AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (b), by striking ‘‘Subsection
(a)(2)’’ in the matter preceding paragraph (1) and
inserting ‘‘Subsection (a)(3)’’;
(2) by striking (c) and inserting the following
new subsection (c):
‘‘(c) For purposes of subsection (a)(4), parents include
fathers and mothers through adoption. However, only one
father and one mother may be recognized in any case, and
preference shall be given to those who exercised a parental
relationship on the date, or most nearly before the date, on
which the decedent entered a status described in section
1475 or 1476 of this title.’’; and
(3) by striking subsection (d).
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act.
(d) APPLICABILITY.—Notwithstanding subsection (c),
the provisions of section 1477 of title 10, United States
Code, as in effect on the day before the date of the enactment
of this Act, shall continue to apply to each member of the
Armed Forces covered by such section until the earlier of
the following—
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(1) the date on which such member makes the
designation contemplated by paragraph (1) of section
1477(a) of such title (as amended by subsection (a) of
this section); or
(2) January 1, 2008.
(e) REGULATIONS.—
(1) IN GENERAL.—Not later than December 1,
2007, the Secretary of Defense shall prescribe regula-
tions to implement the amendments to section 1477 of
title 10, United States Code, made by subsection (a).
(2) ELEMENTS.—The regulations required by
paragraph (1) shall include forms for the making of
the designation contemplated by paragraph (1) of sec-
tion 1477(a) of title 10, United States Code (as
amended by subsection (a)), and instructions for
members of the Armed Forces in the filling out of such
forms.
SEC. 652. ANNUITIES FOR GUARDIANS OR CARETAKERS OF
DEPENDENT CHILDREN UNDER SURVIVOR
BENEFIT PLAN.
(a) ELECTION.—Section 1448(b) of title 10, United
States Code, is amended—
(1) in the subsection caption, by striking ‘‘AND
FORMER SPOUSE’’ and inserting ‘‘, FORMER SPOUSE,
AND GUARDIAN OR CARETAKER’’; and
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(2) by adding at the end the following new para-
graph:
‘‘(6) GUARDIAN OR CARETAKER COVERAGE.—
‘‘(A) GENERAL RULE.—A person who is not
married and has one or more dependent children
upon becoming eligible to participate in the Plan
may elect to provide an annuity under the Plan
to a natural person (other than a natural person
with an insurable interest in the person under
paragraph (1) or a former spouse) who acts as
a guardian or caretaker to such child or chil-
dren. In the case of a person providing a reserve-
component annuity, such an election shall in-
clude a designation under subsection (e).
‘‘(B) TERMINATION
OF
COVERAGE.—Sub-
paragraphs (B) through (E) of paragraph (1)
shall apply to an election under subparagraph
(A) of this paragraph in the same manner as
such subparagraphs apply to an election under
subparagraph (A) of paragraph (1).
‘‘(C) ELECTION OF NEW BENEFICIARY UPON
DEATH
OF
PREVIOUS
BENEFICIARY.—Subpara-
graph (G) of paragraph (1) shall apply to an
election under subparagraph (A) of this para-
graph in the same manner as such subparagraph
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(G) applies to an election under subparagraph
(A) of paragraph (1), except that any new bene-
ficiary elected under such subparagraph (G) by
reason of this subparagraph shall be a guardian
or caretaker of the dependent child or children of
the person making such election.’’.
(b) PAYMENT OF ANNUITY.—Section 1450 of such title
is amended—
(1) in subsection (a), by adding at the end the
following new paragraph:
‘‘(5) GUARDIAN OR CARETAKER COVERAGE.—The
natural person designated under section 1448(b)(6) of
this title, unless the election to provide an annuity to
the natural person has been changed as provided in
subsection (f).’’; and
(2) in the subsection caption of subsection (f), by
striking ‘‘OR FORMER SPOUSE’’ and inserting ‘‘,
FORMER SPOUSE, OR GUARDIAN OR CARETAKER’’.
(c) AMOUNT OF ANNUITY.—Section 1451(b) of such
title is amended—
(1) in the subsection caption, by inserting ‘‘OR
GUARDIAN
OR CARETAKER’’ after ‘‘INSURABLE IN-
TEREST’’; and
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(2) 
by 
inserting 
‘‘or 
1450(a)(5)’’ 
after
‘‘1450(a)(4)’’ each place it appears in paragraphs (1)
and (2).
(d) REDUCTION IN RETIRED PAY.—Section 1452(c) of
such title is amended—
(1) in the subsection caption, by inserting ‘‘OR
GUARDIAN
OR CARETAKER’’ after ‘‘INSURABLE IN-
TEREST’’; and
(2) 
by 
inserting 
‘‘or 
1450(a)(5)’’ 
after
‘‘1450(a)(4)’’ each place it appears in paragraphs (1)
and (3).
SEC. 653. EXPANSION OF COMBAT-RELATED SPECIAL COM-
PENSATION ELIGIBILITY FOR CHAPTER 61
MILITARY RETIREES.
(a) ELIGIBILITY.—Subsection (c) of section 1413a of
title 10, United States Code, is amended by striking ‘‘enti-
tled to retired pay who—’’ and all that follows and insert-
ing ‘‘who—
‘‘(1) is entitled to retired pay (other than by rea-
son of section 12731b of this title); and
‘‘(2) has a combat-related disability.’’.
(b) COMPUTATION.—Paragraph (3) of subsection (b) of
such section is amended—
(1) by designating the text of that paragraph as
subparagraph (A), realigning that text so as to be in-
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dented 4 ems from the left margin, and inserting be-
fore ‘‘In the case of’’ the following heading: ‘‘IN GEN-
ERAL.—’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) SPECIAL RULE FOR RETIREES WITH
FEWER THAN 20 YEARS OF SERVICE.—In the case
of an eligible combat-related disabled uniformed
services retiree who is retired under chapter 61
of this title with fewer than 20 years of cred-
itable service, the amount of the payment under
paragraph (1) for any month shall be reduced by
the amount (if any) by which the amount of the
member’s retired pay under chapter 61 of this
title exceeds the amount equal to 21⁄2 percent of
the member’s years of creditable service multi-
plied by the member’s retired pay base under sec-
tion 1406(b)(1) or 1407 of this title, whichever is
applicable to the member.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 2008, and shall apply
to payments for months beginning on or after that date.
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SEC. 654. CLARIFICATION OF APPLICATION OF RETIRED
PAY MULTIPLIER PERCENTAGE TO MEMBERS
OF THE UNIFORMED SERVICES WITH OVER 30
YEARS OF SERVICE.
(a) COMPUTATION OF RETIRED AND RETAINER PAY
FOR MEMBERS OF NAVAL SERVICE.—The table in section
6333(a) of title 10, United States Code, is amended in Col-
umn 2 of Formula A by striking ‘‘75 percent’’ and inserting
‘‘Retired pay multiplier prescribed under section 1409 for
the years of service that may be credited to him under sec-
tion 1405.’’.
(b) RETIRED PAY FOR CERTAIN MEMBERS RECALLED
TO ACTIVE DUTY.—The table in section 1402(a) of such title
is amended by striking Column 3.
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) shall take effect on January 1, 2007,
and shall apply with respect to retired pay and retainer
pay payable on or after that date.
SEC. 655. COMMENCEMENT OF RECEIPT OF NON-REGULAR
SERVICE RETIRED PAY BY MEMBERS OF THE
READY RESERVE ON ACTIVE FEDERAL STA-
TUS OR ACTIVE DUTY FOR SIGNIFICANT PERI-
ODS.
(a) REDUCED ELIGIBILITY AGE.—Section 12731 of
title 10, United States Code, is amended—
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(1) in subsection (a), by striking paragraph (1)
and inserting the following:
‘‘(1) has attained the eligibility age applicable
under subsection (f) to that person;’’; and
(2) by adding at the end the following new sub-
section:
‘‘(f)(1) Subject to paragraph (2), the eligibility age for
purposes of subsection (a)(1) is 60 years of age.
‘‘(2)(A) In the case of a person who as a member of
the Ready Reserve serves on active duty or performs active
service described in subparagraph (B) after September 11,
2001, the eligibility age for purposes of subsection (a)(1)
shall be reduced below 60 years of age by three months for
each aggregate of 90 days on which such person so performs
in any fiscal year after such date, subject to subparagraph
(C). A day of duty may be included in only one aggregate
of 90 days for purposes of this subparagraph.
‘‘(B)(i) Service on active duty described in this sub-
paragraph is service on active duty pursuant to a call or
order to active duty under a provision of law referred to
in section 101(a)(13)(B) or under section 12301(d) of this
title. Such service does not include service on active duty
pursuant to a call or order to active duty under section
12310 of this title.
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‘‘(ii) Active service described in this subparagraph is
also service under a call to active service authorized by the
President or the Secretary of Defense under section 502(f)
of title 32 for purposes of responding to a national emer-
gency declared by the President or supported by Federal
funds.
‘‘(C) The eligibility age for purposes of subsection
(a)(1) may not be reduced below 50 years of age for any
person under subparagraph (A).’’.
(b) CONTINUATION OF AGE 60 AS MINIMUM AGE FOR
ELIGIBILITY OF NON-REGULAR SERVICE RETIREES FOR
HEALTH
CARE.—Section 
1074(b) 
of 
such 
title 
is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) Paragraph (1) does not apply to a member or
former member entitled to retired pay for non-regular serv-
ice under chapter 1223 of this title who is under 60 years
of age.’’.
(c) ADMINISTRATION
OF RELATED PROVISIONS
OF
LAW OR POLICY.—With respect to any provision of law,
or of any policy, regulation, or directive of the executive
branch that refers to a member or former member of the
uniformed services as being eligible for, or entitled to, re-
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tired pay under chapter 1223 of title 10, United States
Code, but for the fact that the member or former member
is under 60 years of age, such provision shall be carried
out with respect to that member or former member by sub-
stituting for the reference to being 60 years of age a ref-
erence to having attained the eligibility age applicable
under subsection (f) of section 12731 of title 10, United
States Code (as added by subsection (a)), to such member
or former member for qualification for such retired pay
under subsection (a) of such section.
SEC. 656. ADDITIONAL INDIVIDUALS ELIGIBLE FOR TRANS-
PORTATION FOR SURVIVORS OF DECEASED
MEMBERS TO ATTEND THE MEMBER’S BURIAL
CEREMONIES.
Section 411f(c) of title 37, United States Code, is
amended—
(1) in paragraph (1) by adding at the end the
following new subparagraphs:
‘‘(D) Any child of the parent or parents of the
deceased member who is under the age of 18 years if
such child is attending the burial ceremony of the me-
morial service with the parent or parents and would
otherwise be left unaccompanied by the parent or par-
ents.