I 
109TH CONGRESS 
1ST SESSION H. R. 1102 
To amend title 10, United States Code, to protect the financial condition 
of members of the reserve components of the Armed Forces who are 
ordered to long-term active duty in support of a contingency operation, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2005 
Mr. ISRAEL introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Armed Serv-
ices, 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 amend title 10, United States Code, to protect the finan-
cial condition of members of the reserve components 
of the Armed Forces who are ordered to long-term active 
duty in support of a contingency operation, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Patriot Penalty Elimi-
nation Act of 2005’’.
SEC. 2. INCOME PRESERVATION PAY FOR RESERVES SERV-
ING ON ACTIVE DUTY IN SUPPORT OF A CON-
TINGENCY OPERATION. 
(a) AUTHORITY.—Chapter 1209 of title 10, United 
States Code, is amended by inserting after section 12316 
the following new section: 
‘‘§ 12316a. Reserves: income preservation pay 
‘‘(a) REQUIREMENT TO PAY.—The Secretary of the 
military department concerned shall pay income preserva-
tion pay under this section to an eligible member of a re-
serve component of the armed forces in connection with 
the member’s active-duty service as described in sub-
section (b). 
‘‘(b) ELIGIBLE MEMBER.—A member is eligible for 
income preservation pay if— 
‘‘(1) the member is called or ordered to active 
duty (other than voluntarily) under a provision of 
law referred to in section 101(a)(13)(B) of this title; 
‘‘(2) pursuant to such call or order, the member 
serves on active duty outside the United States dur-
ing at least 6 out of 12 consecutive months; and 
‘‘(3) with respect to such active-duty service, 
the amount of the member’s preservice earned in-
come determined under subparagraph (A) of sub-
section (c)(1) exceeds the amount of the member’s
military service income determined under subpara-
graph (B) of such subsection. 
‘‘(c) AMOUNT.—(1) Subject to paragraph (2), the 
amount payable under this section to a member in connec-
tion with active-duty service is the amount equal to the 
excess (if any) of— 
‘‘(A) the amount computed by multiplying— 
‘‘(i) the preservice average monthly earned 
income of the member, by 
‘‘(ii) the total number of the member’s 
service months for such active-duty service, over 
‘‘(B) the amount computed by multiplying— 
‘‘(i) the military service average monthly 
income of the member, by 
‘‘(ii) the total number of months deter-
mined under subparagraph (A)(ii). 
‘‘(2) The total amount of income preservation pay 
that is paid to a member under this section may not ex-
ceed $50,000. 
‘‘(d) PRESERVICE AVERAGE MONTHLY EARNED IN-
COME.—For the purposes of this section, the preservice 
average monthly earned income of a member who serves 
on active duty as described in subsection (b) shall be com-
puted by dividing 12 into the total amount of the mem-
ber’s earned income for the 12 months immediately pre-
ceding the member’s first service month of the period for 
which income preservation pay is to be paid to the member 
under this section. 
‘‘(e) MILITARY SERVICE AVERAGE MONTHLY IN-
COME.—For the purposes of this section, the military serv-
ice average monthly income of a member who serves on 
active duty as described in subsection (b) is the amount 
determined by dividing— 
‘‘(1) the sum of the total amount of the mem-
ber’s earned income (other than basic pay) and the 
total amount of the member’s basic pay (under sec-
tion 204 of title 37) for the member’s service 
months for such active-duty service, by 
‘‘(2) the total number of such months. 
‘‘(f) TIME AND MANNER OF PAYMENT.—(1) Subject 
to paragraph (2), the total amount of income preservation 
pay that is payable under this section to a member in con-
nection with service on active duty is due and payable, 
in one lump sum, not later than 30 days after the date 
on which the member is released from the active duty. 
‘‘(2) The Secretary concerned may make advance 
payment of income preservation pay in whole or in part 
under this section to a member, under such terms and 
conditions as the Secretary determines appropriate, if it 
is clear from the circumstances that it is likely that the
member’s active-duty service will satisfy the requirements 
of subsection (b). In any case in which advance payment 
is made to a member whose period of such active-duty 
service does not satisfy such requirements, the Secretary 
concerned may waive recoupment of the advance payment 
if the Secretary determines that recoupment would be 
against equity and good conscience or would be contrary 
to the best interests of the United States. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘earned income’ has the meaning 
given such term in section 32(c)(2) of the Internal 
Revenue Code of 1986. 
‘‘(2) The term ‘service month’, with respect to 
service of a member of a reserve component of the 
armed forces on active duty, means a month during 
any part of which the member serves on active 
duty.’’. 
(b) RECHARACTERIZATION OF EXISTING SECTION ON 
PAYMENT OF CERTAIN RESERVES ON ACTIVE DUTY.— 
The heading of section 12316 of title 10, United States 
Code, is amended to read as follows: 
‘‘§ 12316. Reserves: payment of other entitlement in-
stead of pay and allowances’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 1209 of title 10, United States