227
SEC. 623. ADDITIONAL AUTHORITIES AND INCENTIVES TO 
ENCOURAGE RETIRED MEMBERS AND RE-
SERVE COMPONENT MEMBERS TO VOLUN-
TEER TO SERVE ON ACTIVE DUTY IN HIGH-
DEMAND, LOW-DENSITY ASSIGNMENTS. 
(a) AUTHORITY
TO OFFER INCENTIVE BONUS.—
Chapter 5 of title 37, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 329. Incentive bonus: retired members and reserve 
component 
members 
volunteering 
for 
high-demand, low-density assignments 
‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Sec-
retary of Defense may pay a bonus under this section to 
a retired member or former member of the Army, Navy, 
Air Force, or Marine Corps or to a member of a reserve 
component of the Army, Navy, Air Force, or Marine Corps 
(who is not otherwise serving on active duty) who executes 
a written agreement to serve on active duty for a period 
specified in the agreement in an assignment intended to 
alleviate a high-demand, low-density military capability or 
in any other specialty designated by the Secretary as crit-
ical to meet wartime or peacetime requirements. 
‘‘(b) MAXIMUM AMOUNT OF BONUS.—A bonus under 
subsection (a) and any incentive developed under sub-
section (d) may not exceed $50,000.
228
‘‘(c) METHODS OF PAYMENT.—At the election of the 
Secretary, a bonus under subsection (a) and any incentive 
developed under subsection (d) shall be paid or provided—
‘‘(1) when the member commences service on 
active duty; or 
‘‘(2) in annual installments in such amounts as 
may be determined by the Secretary. 
‘‘(d) DEVELOPMENT OF ADDITIONAL INCENTIVES.—
(1) The Secretary may develop and provide to members 
referred to in subsection (a) additional incentives to en-
courage such members to return to active duty in assign-
ments intended to alleviate a high-demand, low-density 
military capability or in others specialties designated by 
the Secretary as critical to meet wartime or peacetime re-
quirements. 
‘‘(2) The provision of any incentive developed under 
this subsection shall be subject to an agreement, as re-
quired for bonuses under subsection (a). 
‘‘(3) Not later than 30 days before first offering any 
incentive developed under this subsection, the Secretary 
shall submit to the congressional defense committees a re-
port that contains a description of that incentive and an 
explanation why a bonus under subsection (a) or other pay 
and allowances are not sufficient to alleviate the high-de-
229
mand, low-density military capability or otherwise fill crit-
ical military specialties. 
‘‘(e) RELATIONSHIP TO OTHER PAY AND ALLOW-
ANCES.—A bonus or other incentive paid or provided to 
a member under this section is in addition to any other 
pay and allowances to which the member is entitled. 
‘‘(f) REPAYMENT.—A member who does not complete 
the period of active duty specified in the agreement exe-
cuted under subsection (a) or (d) shall be subject to the 
repayment provisions of section 303a(e) of this title. 
‘‘(g) HIGH-DEMAND, LOW-DENSITY ASSIGNMENT 
DEFINED.—In this section, the term ‘high-demand, low-
density military capability’ means a combat, combat sup-
port or service support capability, unit, system, or occupa-
tional specialty that the Secretary determines has funding, 
equipment, or personnel levels that are substantially below 
the levels required to fully meet or sustain actual or ex-
pected operational requirements set by regional com-
manders. 
‘‘(h) REGULATIONS.—The Secretary of Defense may 
prescribe such regulations as the Secretary considers nec-
essary to carry out this section. 
‘‘(i) TERMINATION OF AUTHORITY.—No agreement 
under subsection (a) or (d) may be entered into after De-
cember 31, 2010.’’.
230
(b) TEMPORARY AUTHORITY TO ORDER RETIRED 
MEMBERS TO ACTIVE DUTY IN HIGH-DEMAND, LOW-
DENSITY
ASSIGNMENTS.—Section 688a of title 10, 
United States Code, is amended—
(1) in subsection (a)—
(A) by striking the first sentence and in-
serting the following new sentence: ‘‘The Sec-
retary of a military department may order to 
active duty a retired member who agrees to 
serve on active duty in an assignment intended 
to alleviate a high-demand, low-density military 
capability or in any other specialty designated 
by the Secretary as critical to meet wartime or 
peacetime requirements.’’; and 
(B) in the second sentence, by striking ‘‘of-
ficer’’ both places it appears and inserting 
‘‘member’’; 
(2) in subsection (b), by striking ‘‘an officer’’ 
and inserting ‘‘a member’’; 
(3) in subsection (c), by striking ‘‘500 officers’’ 
and inserting ‘‘1,000 members’’; 
(4) in subsection (d), by striking ‘‘officer’’ and 
inserting ‘‘member’’; 
(5) in subsection (e), by striking ‘‘Officers’’ and 
inserting ‘‘Retired members’’;
231
(6) in subsection (f)—
(A) by striking ‘‘An officer’’ and inserting 
‘‘A retired member’’; and 
(B) by striking ‘‘September 30, 2008’’ and 
inserting ‘‘December 31, 2010’’; and 
(7) by adding at the end the following new sub-
section: 
‘‘(g) HIGH-DEMAND, LOW-DENSITY ASSIGNMENT 
DEFINED.—In this section, the term ‘high-demand, low-
density military capability’ means a combat, combat sup-
port or service support capability, unit, system, or occupa-
tional specialty that the Secretary of Defense determines 
has funding, equipment, or personnel levels that are sub-
stantially below the levels required to fully meet or sustain 
actual or expected operational requirements set by re-
gional commanders.’’. 
(c) CLERICAL AMENDMENTS.—
(1) TITLE 37.—The table of sections at the be-
ginning of chapter 5 of title 37, United States Code, 
is amended by adding at the end the following new 
item:
‘‘329. Incentive bonus: retired members and reserve component members volun-
teering for high-demand, low-density assignments.’’.
(2) TITLE
10.—(A) The heading of section 
688a of title 10, United States Code, is amended to 
read as follows:
232
‘‘§ 688a. Retired members: temporary authority to 
order to active duty in high-demand, low-
density assignments’’. 
(B) The table of sections at the beginning of 
chapter 39 of such title is amended by striking the 
item relating to section 688a and inserting the fol-
lowing new item:
‘‘688a. Retired members: temporary authority to order to active duty in high-
demand, low-density assignments.’’.
(d) EFFECTIVE DATE.—No agreement may be en-
tered into under section 329 of title 37, United States 
Code, as added by subsection (a), before October 1, 2006. 
(e) LIMITATION
ON FISCAL YEAR 2007 OBLIGA-
TIONS.—During fiscal year 2007, obligations incurred 
under section 329 of title 37, United States Code, as 
added by subsection (a), to provide bonuses or other incen-
tives to retired members and former members of the 
Army, Navy, Air Force, or Marine Corps or to members 
of the reserve components of the Army, Navy, Air Force, 
and Marine Corps may not exceed $5,000,000. 
SEC. 624. ELIMINATION OF INEQUITY IN ELIGIBILITY AND 
PROVISION OF ASSIGNMENT INCENTIVE PAY. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of the Army should promptly cor-
rect the pay inequity in the provision of assignment incen-
tive pay under section 307a of title 37, United States
233
Code, to members of the Army National Guard and the 
Army Reserve serving on active duty in Afghanistan and 
Iraq that arose from the disparite treatment between—
(1) those members who previously served under 
a call or order to active duty under section 12302 
of title 10, United States Code, and who are eligible 
for assignment incentive pay; and 
(2) those members who previously served under 
a call or order to active duty under section 12304 
of such title and who are currently ineligible for as-
signment incentive pay. 
(b) REPORT REQUIRED.—Not later than 30 days 
after the date of the enactment of this Act, the Secretary 
of the Army shall submit to Congress a report—
(1) specifying the number of members of the 
Army National Guard and the Army Reserve ad-
versely affected by the disparate treatment afforded 
to members who previously served under a call or 
order to active duty under section 12304 of title 10, 
United States Code, in determining eligibility for as-
signment incentive pay; and 
(2) containing proposed remedies or courses of 
action to correct this inequity, including allowing 
time served during a call or order to active duty
234
under such section 12304 to count toward the time 
needed to qualify for assignment incentive pay. 
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. AUTHORITY TO PAY COSTS ASSOCIATED WITH DE-
LIVERY OF MOTOR VEHICLE TO STORAGE LO-
CATION SELECTED BY MEMBER AND SUBSE-
QUENT REMOVAL OF VEHICLE. 
Subsection (b) of section 2634 of title 10, United 
States Code, is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) If a member elects to have a motor vehicle de-
scribed in subsection (a) stored at a location other than 
a storage location approved by the Secretary concerned, 
the delivery and removal costs described in paragraph (3) 
are the only costs that may be paid by the Secretary. The 
delivery or removal costs paid by the Secretary under this 
paragraph may not exceed the total cost that would have 
been incurred by the United States had the storage loca-
tion approved by the Secretary been used to store the 
motor vehicle. The United States is not responsible for any
235
costs associated with the actual storage of the motor vehi-
cle at the unapproved location.’’. 
SEC. 632. TRANSPORTATION OF ADDITIONAL MOTOR VEHI-
CLE OF MEMBERS ON CHANGE OF PERMA-
NENT STATION TO OR FROM NONFOREIGN 
AREAS OUTSIDE THE CONTINENTAL UNITED 
STATES. 
(a) AUTHORITY TO TRANSPORT ADDITIONAL MOTOR 
VEHICLE.—Subsection (a) of section 2634 of title 10, 
United States Code, is amended—
(1) by striking the sentence following paragraph 
(4); 
(2) by redesignating paragraphs (1), (2), (3), 
and (4) as subparagraphs (A), (B), (C), and (D), re-
spectively; 
(3) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) One additional motor vehicle of a member (or 
a dependent of the member) may be transported as pro-
vided in paragraph (1) if—
‘‘(A) the member is ordered to make a change 
of permanent station to or from a nonforeign area 
outside the continental United States and the mem-
236
ber has at least one dependent of driving age who 
will use the motor vehicle; or 
‘‘(B) the Secretary concerned determines that a 
replacement for the motor vehicle transported under 
paragraph (1) is necessary for reasons beyond the 
control of the member and is in the interest of the 
United States and the Secretary approves the trans-
portation in advance.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
Such subsection is further amended—
(1) by striking ‘‘his dependents’’ and inserting 
‘‘a dependent of the member’’; 
(2) by striking ‘‘him’’ and inserting ‘‘the mem-
ber’’; 
(3) by striking ‘‘his)’’ and inserting ‘‘the mem-
ber)’’; 
(4) by striking ‘‘his new’’ and inserting ‘‘the 
member’s new’’; and 
(5) in paragraph (1)(C), as redesignated by 
subsection (a), by striking ‘‘clauses (1) and (2)’’ and 
inserting ‘‘subparagraphs (A) and (B)’’. 
(c) EFFECTIVE DATE.—Paragraph (2)(A) of sub-
section (a) of section 2634 of title 10, United States Code, 
as added by subsection (a)(4), shall apply with respect to 
orders issued on or after the date of the enactment of this
237
Act for members of the Armed Forces to make a change 
of permanent station to or from nonforeign areas outside 
the continental United States. 
SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES 
FOR TRANSPORTATION OF FAMILY MEMBERS 
INCIDENT TO ILLNESS OR INJURY OF MEM-
BERS. 
Section 411h(b)(1) of title 37, United States Code, 
is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) a person related to the member as de-
scribed in subparagraph (A), (B), (C), or (D) who 
is also a member of the uniformed services.’’.
238
Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. MILITARY SURVIVOR BENEFIT PLAN BENE-
FICIARIES 
UNDER 
INSURABLE 
INTEREST 
COVERAGE. 
(a) AUTHORITY TO ELECT NEW BENEFICIARY.—
Section 1448(b)(1) of title 10, United States Code, is 
amended—
(1) by inserting ‘‘or under subparagraph (G) of 
this paragraph’’ in the second sentence of subpara-
graph (E) before the period at the end; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(G) ELECTION
OF
NEW
BENEFICIARY 
UPON DEATH OF PREVIOUS BENEFICIARY.—
‘‘(i) AUTHORITY FOR ELECTION.—If 
the reason for discontinuation in the Plan 
is the death of the beneficiary, the partici-
pant in the Plan may elect a new bene-
ficiary. Any such beneficiary must be a 
natural person with an insurable interest 
in the participant. Such an election may be 
made only during the 180-day period be-
ginning on the date of the death of the 
previous beneficiary.