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returns to active duty shall have deducted from each pay-
ment of basic pay, in such schedule of monthly installments
as the Secretary concerned shall specify, until the total
amount deducted from such basic pay equals the total
amount of voluntary separation pay received.
‘‘(2) Members who are involuntarily recalled to active
duty or full-time National Guard duty in accordance with
section 12301(a), 12301(b), 12301(g), 12302, 12303, or
12304 of this title or section 502(f)(1) of title 32 shall not
be subject to this subsection.
‘‘(3) Members who are recalled or perform active duty
or full-time National Guard duty in accordance with sec-
tion 101(d)(1), 101(d)(2), 101(d)(5), 12301(d) (insofar as
the period served is less than 180 consecutive days with the
consent of the member), 12319, or 12503 of title 10, or sec-
tion 114, 115, or 502(f)(2) of title 32 (insofar as the period
served is less than 180 consecutive days with consent of the
member), shall not be subject to this subsection.
‘‘(4) The Secretary of Defense may waive, in whole or
in part, repayment required under paragraph (1) if the
Secretary determines that recovery would be against equity
and good conscience or would be contrary to the best inter-
ests of the United States. The authority in this paragraph
may be delegated only to the Undersecretary of Defense for
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Personnel and Readiness and the Principal Deputy Under-
secretary of Defense for Personnel and Readiness.
‘‘(k) TERMINATION OF AUTHORITY.—(1) The authority
to separate a member of the armed forces from active duty
under subsection (c) shall terminate on December 31, 2008.
‘‘(2) A member who separates by the date specified in
paragraph (1) may continue to be provided voluntary sepa-
ration pay and benefits under this section until the member
has received the entire amount of pay and benefits to which
the member is entitled under this section.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 59 of such title is
amended by inserting after the item relating to sec-
tion 1175 the following new item:
‘‘1175a. Voluntary separation pay and benefits.’’.
(b) LIMITATION ON APPLICABILITY.—During the pe-
riod beginning on the date of the enactment of this Act and
ending on December 31, 2008, the members of the Armed
Forces who are eligible for separation, and for the provision
of voluntary separation pay and benefits, under section
1175a of title 10, United States Code (as added by sub-
section (a)), shall be limited to officers of the Armed Forces
who meet the eligibility requirements of section 1175a(b)
of title 10, United States Code (as so added), but have not
completed more than 12 years of active service as of the
date of separation from active duty.
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(c) OFFICER SELECTIVE EARLY RETIREMENT.—Sec-
tion 638a(a) of title 10, United States Code, is amended
by adding at the end the following new sentence: ‘‘During
the period beginning on October 1, 2005, and ending on
December 31, 2011, the Secretary of Defense may also au-
thorize the Secretary of the Navy and the Secretary of the
Air Force to take any of the actions set forth in such sub-
section with respect to officers of the armed forces under
the jurisdiction of such Secretary.’’.
SEC. 675. EDUCATION LOAN REPAYMENT PROGRAM FOR
CHAPLAINS IN THE SELECTED RESERVE.
(a) IN GENERAL.—Chapter 1609 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 16303. Education loan repayment program: chap-
lains serving in the Selected Reserve
‘‘(a) AUTHORITY TO REPAY EDUCATION LOANS.—
Under regulations prescribed by the Secretary of Defense
and subject to the provisions of this section, the Secretary
concerned may, for purposes of maintaining adequate num-
bers of chaplains in the Selected Reserve, repay a loan
that—
‘‘(1) was used by a person described in sub-
section (b) to finance education resulting in a Masters
of Divinity degree; and