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been reduced before the effective date of the 
election if the original beneficiary (i) had not 
died and had been covered under the Plan 
through the date of the election, and (ii) had 
been the same number of years younger than 
the participant (if any) as the new beneficiary 
designated under the election. 
‘‘(B) Interest on the amounts by which the 
retired pay of the participant would have been 
so reduced, computed from the dates on which 
the retired pay would have been so reduced at 
such rate or rates and according to such meth-
odology as the Secretary of Defense determines 
reasonable. 
‘‘(C) Any additional amount that the Sec-
retary determines necessary to protect the actu-
arial soundness of the Department of Defense 
Military Retirement Fund against any increased 
risk for the fund that is associated with the 
election.’’. 
(c) TRANSITION.— 
(1) TRANSITION PERIOD.—In the case of a par-
ticipant in the Survivor Benefit Plan who made a 
covered insurable-interest election (as defined in 
paragraph (2)) and whose designated beneficiary
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under that election dies before the date of the enact-
ment of this Act or during the 18-month period be-
ginning on such date, the time period applicable for 
purposes of the limitation in the third sentence of 
subparagraph (G)(i) of section 1448(b)(1) of title 
10, United States Code, as added by subsection (a), 
shall be the two-year period beginning on the date 
of the enactment of this Act (rather than the 180- 
day period specified in that sentence). 
(2) 
COVERED
INSURABLE-INTEREST
ELEC-
TIONS.—For purposes of paragraph (1), a covered 
insurable-interest election is an election under sec-
tion 1448(b)(1) of title 10, United States Code, 
made before the date of the enactment of this Act, 
or during the 18-month period beginning on such 
date, by a participant in the Survivor Benefit Plan 
to provide an annuity under that plan to a natural 
person with an insurable interest in that person. 
(3) SURVIVOR BENEFIT PLAN.—For purposes 
of this subsection, the term ‘‘Survivor Benefit Plan’’ 
means the program under subchapter II of chapter 
73 of title 10, United States Code.
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Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits 
SEC. 661. INCREASE IN AUTHORIZED LEVEL OF SUPPLIES 
AND SERVICES PROCUREMENT FROM OVER-
SEAS EXCHANGE STORES. 
Subsection 2424(b) of title 10, United States Code, 
is amended by striking ‘‘$50,000’’ and inserting 
‘‘$100,000’’. 
SEC. 662. REQUIREMENTS FOR PRIVATE OPERATION OF 
COMMISSARY STORE FUNCTIONS. 
Section 2485(a)(2) of title 10, United States Code, 
is amended by adding at the end the following new sen-
tence: ‘‘Until December 31, 2010, the Defense Com-
missary Agency is not required to conduct any cost-com-
parison study under the policies and procedures of Office 
of Management and Budget Circular A–76 relating to the 
possible contracting out of commissary store functions.’’. 
SEC. 663. PROVISION OF INFORMATION TECHNOLOGY 
SERVICES 
FOR 
ACCOMMODATIONS 
PRO-
VIDED BY NONAPPROPRIATED FUND INSTRU-
MENTALITIES FOR WOUNDED MEMBERS OF 
THE ARMED FORCES AND THEIR FAMILIES. 
(a) AUTHORITY
TO PROVIDE SERVICES.—Section 
2494 of title 10, United States Code, is amended—
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(1) by inserting ‘‘(a) UTILITY SERVICES.—’’ 
before ‘‘Appropriations’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) INFORMATION TECHNOLOGY SERVICES.—Ap-
propriations for the Department of Defense may be used 
to provide information technology services, including 
equipment and access to the internet, for— 
‘‘(1) Fisher Houses and Fisher Suites associ-
ated with health care facilities of a military depart-
ment; and 
‘‘(2) other accommodations made available by a 
nonappropriated fund instrumentality of the Depart-
ment of Defense to members of the Armed Forces 
recovering from a wound or injury or to dependents 
of such members.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 2494. Nonappropriated fund instrumentalities: fur-
nishing certain services for morale, wel-
fare, and recreation purposes’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of subchapter III of chapter 147 of 
such title is amended by striking the item relating
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to section 2494 and inserting the following new 
item: 
‘‘2494. Nonappropriated fund instrumentalities: furnishing certain services for 
morale, welfare, and recreation purposes.’’. 
SEC. 664. PROVISION OF AND PAYMENT FOR OVERSEAS 
TRANSPORTATION 
SERVICES 
FOR 
COM-
MISSARY AND EXCHANGE SUPPLIES. 
Section 2643 of title 10, United States Code, is 
amended— 
(1) by inserting ‘‘(a) TRANSPORTATION OP-
TIONS.—’’ before ‘‘The Secretary’’; 
(2) in the first sentence, by striking ‘‘by sea 
without relying on the Military Sealift Command’’ 
and inserting ‘‘to destinations outside the conti-
nental United States without relying on the Air Mo-
bility Command, the Military Sealift Command’’; 
(3) in the second sentence, by striking ‘‘trans-
portation contracts’’ and inserting ‘‘contracts for 
sea-borne transportation’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(b) PAYMENT OF TRANSPORTATION COSTS.—Sec-
tion 2483(b)(5) of this title, regarding the use of appro-
priated funds to cover the expenses of operating com-
missary stores, shall apply to the transportation of com-
missary supplies. Appropriated funds for the Department
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of Defense shall also be used to cover the expenses of 
transporting exchange supplies to destinations outside the 
continental United States.’’. 
SEC. 665. COMPENSATORY TIME OFF FOR CERTAIN NON-
APPROPRIATED FUND EMPLOYEES. 
Section 5543 of title 5, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(d)(1) The appropriate Secretary may, on request 
of an employee of a nonappropriated fund instrumentality 
of the Department of Defense or the Coast Guard de-
scribed in section 2105(c), grant such employee compen-
satory time off from duty instead of overtime pay for over-
time work. 
‘‘(2) For purposes of this subsection, the term ‘appro-
priate Secretary’ means— 
‘‘(A) with respect to an employee of a non-
appropriated fund instrumentality of the Depart-
ment of Defense, the Secretary of Defense; and 
‘‘(B) with respect to an employee of a non-
appropriated fund instrumentality of the Coast 
Guard, the Secretary of the Executive department in 
which it is operating.’’.
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Subtitle F—Other Matters 
SEC. 671. INCLUSION OF SENIOR ENLISTED ADVISOR FOR 
THE CHAIRMAN OF THE JOINT CHIEFS OF 
STAFF AMONG SENIOR ENLISTED MEMBERS 
OF THE ARMED FORCES. 
(a) BASIC PAY RATE.— 
(1) EQUAL TREATMENT.—The rate of basic pay 
for an enlisted member in the grade E–9 while serv-
ing as Senior Enlisted Advisor for the Chairman of 
the Joint Chiefs of Staff shall be the same as the 
rate of basic pay for an enlisted member in that 
grade while serving as Sergeant Major of the Army, 
Master Chief Petty Officer of the Navy, Chief Mas-
ter Sergeant of the Air Force, Sergeant Major of the 
Marine Corps, or Master Chief Petty Officer of the 
Coast Guard, regardless of cumulative years of serv-
ice computed under section 205 of title 37, United 
States Code. 
(2) EFFECTIVE
DATE.—Paragraph (1) shall 
apply beginning on the date on which an enlisted 
member of the Armed Forces is first appointed to 
serve as Senior Enlisted Advisor for the Chairman 
of the Joint Chiefs of Staff. 
(b) PAY DURING TERMINAL LEAVE OR WHILE HOS-
PITALIZED.—Section 210(c) of title 37, United States
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Code, is amended by adding at the end the following new 
paragraph: 
‘‘(6) The Senior Enlisted Advisor for the Chair-
man of the Joint Chiefs of Staff.’’. 
(c) PERSONAL MONEY ALLOWANCE.—Section 414(c) 
of such title is amended— 
(1) by striking ‘‘or’’ after ‘‘Sergeant Major of 
the Marine Corps,’’; and 
(2) by inserting before the period at the end the 
following: ‘‘, or the Senior Enlisted Advisor for the 
Chairman of the Joint Chiefs of Staff’’. 
(d) RETIRED PAY BASE.—Section 1406(i)(3)(B) of 
title 10, United States Code, is amended by adding at the 
end the following new clause: 
‘‘(vi) Senior Enlisted Advisor for the 
Chairman of the Joint Chiefs of Staff.’’. 
SEC. 672. SPECIAL AND INCENTIVE PAYS CONSIDERED FOR 
SAVED PAY UPON APPOINTMENT OF MEM-
BERS AS OFFICERS. 
(a) INCLUSION AND EXCLUSION OF CERTAIN PAY 
TYPES.—Subsection (d) of section 907 of title 37, United 
States Code, is amended to read as follows: 
‘‘(d)(1) In determining the amount of the pay and 
allowances of a grade formerly held by an officer, the fol-
lowing special and incentive pays may be considered only
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so long as the officer continues to perform the duty that 
creates the entitlement to, or eligibility for, that pay and 
would otherwise be eligible to receive that pay in the 
former grade: 
‘‘(A) Incentive pay for hazardous duty under 
section 301 of this title. 
‘‘(B) Submarine duty incentive pay under sec-
tion 301c of this title. 
‘‘(C) Special pay for diving duty under section 
304 of this title. 
‘‘(D) Hardship duty pay under section 305 of 
this title. 
‘‘(E) Career sea pay under section 305a of this 
title. 
‘‘(F) Special pay for service as a member of a 
Weapons of Mass Destruction Civil Support Team 
under section 305b of this title. 
‘‘(G) Assignment incentive pay under section 
307a of this title. 
‘‘(H) Special pay for duty subject to hostile fire 
or imminent danger under section 310 of this title. 
‘‘(I) Special pay or bonus for an extension of 
duty at a designated overseas location under section 
314 of this title.
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‘‘(J) Foreign language proficiency pay under 
section 316 of this title. 
‘‘(K) Critical skill retention bonus under section 
323 of this title. 
‘‘(2) The following special and incentive pays are de-
pendent on a member being in an enlisted status and may 
not be considered in determining the amount of the pay 
and allowances of a grade formerly held by an officer: 
‘‘(A) Special duty assignment pay under section 
307 of this title. 
‘‘(B) Reenlistment bonus under section 308 of 
this title. 
‘‘(C) Enlistment bonus under section 309 of 
this title. 
‘‘(D) Reenlistment bonus for nuclear-trained 
and qualified enlisted members under section 312a 
of this title. 
‘‘(E) Career enlisted flyer incentive pay under 
section 320 of this title.’’. 
(b) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended— 
(1) in subsections (a) and (b)— 
(A) by striking ‘‘he’’ each place it appears 
and inserting ‘‘the officer’’; and
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(B) by striking ‘‘his appointment’’ each 
place it appears and inserting ‘‘the appoint-
ment’’; 
(2) in subsection (c)(2), by striking ‘‘he’’ and 
inserting ‘‘the officer’’. 
SEC. 673. REPAYMENT OF UNEARNED PORTION OF BO-
NUSES, SPECIAL PAYS, AND EDUCATIONAL 
BENEFITS. 
(a) REPAYMENT OF UNEARNED PORTION OF BO-
NUSES AND OTHER BENEFITS.— 
(1) UNIFORM REPAYMENT PROVISION.—Section 
303a of title 37, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(e) REPAYMENT OF UNEARNED PORTION OF BO-
NUSES AND OTHER BENEFITS WHEN CONDITIONS OF 
PAYMENT NOT MET.—(1) A member of the uniformed 
services who receives a bonus or similar benefit and whose 
receipt of the bonus or similar benefit is subject to the 
condition that the member continue to satisfy certain eligi-
bility requirements shall repay to the United States an 
amount equal to the unearned portion of the bonus or 
similar benefit if the member fails to satisfy the require-
ments, except in certain circumstances authorized by the 
Secretary concerned.
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‘‘(2) The Secretary concerned may establish, by regu-
lations, procedures for determining the amount of the re-
payment required under this subsection and the cir-
cumstances under which an exception to the required re-
payment may be granted. The Secretary concerned may 
specify in the regulations the conditions under which an 
installment payment of a bonus or similar benefit to be 
paid to a member of the uniformed services will not be 
made if the member no longer satisfies the eligibility re-
quirements for the bonus or similar benefit. For the mili-
tary departments, this subsection shall be administered 
under regulations prescribed by the Secretary of Defense. 
‘‘(3) An obligation to repay the United States under 
this subsection is, for all purposes, a debt owed the United 
States. A discharge in bankruptcy under title 11 does not 
discharge a person from such debt if the discharge order 
is entered less than five years after— 
‘‘(A) the date of the termination of the agree-
ment or contract on which the debt is based; or 
‘‘(B) in the absence of such an agreement or 
contract, the date of the termination of the service 
on which the debt is based. 
‘‘(4) In this subsection: 
‘‘(A) The term ‘bonus or similar benefit’ means 
a bonus, incentive pay, special pay, or similar pay-