106
motor vehicle pursuant to subsection (g) of such sec-
tion.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on July 1, 1997.
SEC. 364. CONTROL OF TRANSPORTATION SYSTEMS IN
TIME OF WAR.
(a) RESPONSIBILITY OF SECRETARY OF DEFENSE.—
Chapter 157 of title 10, United States Code is amended by
adding at the end the following new section:
‘‘§ 2644. Control of transportation systems in time of
war
‘‘In time of war, the President, acting through the Sec-
retary of Defense, may take possession and assume control
of all or any part of a system of transportation to transport
troops, war material, and equipment, or for other purposes
related to the emergency. So far as necessary, the Secretary
may use the transportation system to the exclusion of other
traffic.’’.
(b) CONFORMING REPEALS.—Sections 4742 and 9742
of title 10, United States Code are repealed.
(c) CLERICAL AMENDMENTS.—(1) The table of sections
at the beginning of chapter 447 of such title is amended
by striking out the item relating to section 4742.
107
(2) The table of sections at the beginning of chapter
947 of such title is amended by striking out the item relat-
ing to section 9742.
(3) The table of sections at the beginning of chapter
157 of such title 10 is amended by inserting after the item
relating to section 2643 the following new item:
‘‘2644. Control of transportation systems in time of war.’’.
SEC. 365. SECURITY PROTECTIONS AT DEPARTMENT OF DE-
FENSE FACILITIES IN NATIONAL CAPITAL RE-
GION.
(a) EXPANSION OF AUTHORITY.—Subsection (b) of sec-
tion 2674 of title 10, United States Code, is amended by
striking out ‘‘at the Pentagon Reservation’’ and inserting
in lieu thereof ‘‘in the National Capital Region’’.
(b) CLERICAL AMENDMENT.—(1) The heading of such
section is amended to read as follows:
‘‘§ 2674. Operation and control of Pentagon Reserva-
tion and defense facilities in National
Capital Region’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 159 of such title is
amended to read as follows:
‘‘2674. Operation and control of Pentagon Reservation and defense facilities in
National Capital Region.’’.
108
SEC. 366. MODIFICATIONS TO ARMED FORCES RETIREMENT
HOME ACT OF 1991.
(a) TERM OF OFFICE.—Section 1515 of the Armed
Forces Retirement Home Act of 1991 (24 U.S.C. 415) is
amended—
(1) in subsection (e), by adding at the end the
following:
‘‘(3) The chairman of the Retirement Home Board
may appoint a member of the Retirement Home Board for
a second consecutive term. The chairman of a Local Board
may appoint a member of that Local Board for a second
consecutive term.’’; and
(2) by striking out subsection (f) and inserting
in lieu thereof the following:
‘‘(f) EARLY EXPIRATION OF TERM.—A member of the
Armed Forces or Federal civilian employee who is ap-
pointed as a member of the Retirement Home Board or a
Local Board may serve as a board member only so long
as the member of the Armed Forces or Federal civilian em-
ployee is assigned to or serving in the duty position that
gave rise to the appointment as a board member.’’.
(b) DISPOSAL OF REAL PROPERTY.—Section 1516(d)
of such Act (24 U.S.C. 416(d)) is amended by striking out
‘‘(d)’’ and all that follows through the end of paragraph
(1) and inserting in lieu thereof the following:
109
‘‘(d) DISPOSAL OF REAL PROPERTY.—(1) The Retire-
ment Home Board may dispose of real property of the Re-
tirement Home by sale or otherwise, except that the disposal
may not occur until after the end of a period of 30 legisla-
tive days or 60 calendar days, whichever is longer, begin-
ning on the date on which the Retirement Home Board no-
tifies the Committee on Armed Services of the Senate and
the Committee on National Security of the House of Rep-
resentatives of the proposed disposal. The Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 471
et seq.), section 501 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11411), and any other provision
of law or regulation relating to the handling or disposal
of real property by the United States shall not apply to
the disposal of real property by the Retirement Home
Board.’’.
(c) ANNUAL EVALUATION
OF DIRECTORS.—Section
1517 of such Act (24 U.S.C. 417) is amended by striking
out subsection (f) and inserting in lieu thereof the following:
‘‘(f) ANNUAL EVALUATION OF DIRECTORS.—The chair-
man of the Retirement Home Board shall annually evaluate
the performance of the Directors and shall make such rec-
ommendations to the Secretary of Defense as the chairman
considers appropriate in light of the evaluation.’’.
110
(d) EFFECT OF AMENDMENT.—The amendment made
by subsection (a)(2) shall not affect the staggered terms of
members of the Armed Forces Retirement Home Board or
a Local Board of the Retirement Home under section
1515(f) of such Act, as in effect before the date of the enact-
ment of this Act.
SEC. 367. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES
THAT BENEFIT DEPENDENTS OF MEMBERS
OF THE ARMED FORCES AND DEPARTMENT
OF DEFENSE CIVILIAN EMPLOYEES.
(a) CONTINUATION
OF DEPARTMENT
OF DEFENSE
PROGRAM FOR FISCAL YEAR 1997.—Of the amounts au-
thorized to be appropriated in section 301(5)—
(1) $50,000,000 shall be available for providing
educational agencies assistance (as defined in sub-
section (d)(1)) to local educational agencies; and
(2) $8,000,000 shall be available for making edu-
cational agencies payments (as defined in subsection
(d)(2)) to local educational agencies.
(b) NOTIFICATION.—Not later than June 30, 1997, the
Secretary of Defense shall—
(1) notify each local educational agency that is
eligible for educational agencies assistance for fiscal
year 1997 of that agency’s eligibility for such assist-
111
ance and the amount of such assistance for which that
agency is eligible; and
(2) notify each local educational agency that is
eligible for an educational agencies payment for fiscal
year 1997 of that agency’s eligibility for such pay-
ment and the amount of the payment for which that
agency is eligible.
(c) DISBURSEMENT OF FUNDS.—The Secretary of De-
fense shall disburse funds made available under paragraphs
(1) and (2) of subsection (a) not later than 30 days after
the date on which notification to the eligible local edu-
cational agencies is provided pursuant to subsection (b).
(d) DEFINITIONS.—In this section:
(1) The term ‘‘educational agencies assistance’’
means assistance authorized under section 386(b) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(2) The term ‘‘educational agencies payments’’
means payments authorized under section 386(d) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(3) The term ‘‘local educational agency’’ has the
meaning given that term in section 8013(9) of the El-
112
ementary and Secondary Education Act of 1965 (20
U.S.C. 7713(9)).
SEC. 368. RETENTION OF CIVILIAN EMPLOYEE POSITIONS
AT MILITARY TRAINING BASES TRANSFERRED
TO NATIONAL GUARD.
(a) MILITARY TRAINING INSTALLATIONS AFFECTED.—
This section applies with respect to each military training
installation that—
(1) was approved for closure in 1995 under the
Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101–510; 10
U.S.C. 2687 note);
(2) is scheduled for transfer during fiscal year
1997 to National Guard operation and control; and
(3) will continue to be used, after such transfer,
to provide training support to active and reserve com-
ponents of the Armed Forces.
(b) RETENTION OF EMPLOYEE POSITIONS.—In the
case of a military training installation described in sub-
section (a), the Secretary of Defense shall retain civilian
employee positions of the Department of Defense at the in-
stallation after transfer to the National Guard to facilitate
active and reserve component training at the installation.
(c) MAXIMUM POSITIONS RETAINED.—The maximum
number of civilian employee positions retained at an instal-
113
lation under this section shall not exceed 20 percent of the
Federal civilian workforce employed at the installation as
of September 8, 1995.
(d) REMOVAL
OF POSITION.—The requirement to
maintain a civilian employee position at an installation
under this section shall terminate upon the later of the fol-
lowing:
(1) The date of the departure or retirement of the
civilian employee initially employed or retained in a
civilian employee position at the installation as a re-
sult of this section.
(2) The date on which the Secretary certifies to
Congress that a civilian employee position at the in-
stallation is no longer required to ensure that effective
support is provided at the installation for active and
reserve component training.
SEC. 369. EXPANSION OF AUTHORITY TO DONATE UNUS-
ABLE FOOD.
(a) AUTHORITY
FOR DONATIONS FROM DEFENSE
AGENCIES.—Section 2485 of title 10, United States Code,
is amended by striking out ‘‘Secretary of a military depart-
ment’’ in subsections (a) and (b) and inserting in lieu
thereof ‘‘Secretary of Defense’’.
(b) EXPANSION OF ELIGIBLE RECIPIENTS.—Such sec-
tion is further amended—
114
(1) in subsection (a), by striking out ‘‘authorized
charitable nonprofit food banks’’ and inserting in lieu
thereof ‘‘entities specified under subsection (d)’’; and
(2) in subsection (d), by striking out ‘‘may only
be made’’ and all that follows and inserting in lieu
thereof the following: ‘‘may only be made to an entity
that is one of the following:
‘‘(1) A charitable nonprofit food bank that is des-
ignated by the Secretary of Defense or the Secretary
of Health and Human Services as authorized to re-
ceive such donations.
‘‘(2) A State or local agency that is designated
by the Secretary of Defense or the Secretary of Health
and Human Services as authorized to receive such do-
nations.
‘‘(3) A chapter or other local unit of a recognized
national veterans organization that provides services
to persons without adequate shelter and is designated
by the Secretary of Veterans Affairs as authorized to
receive such donations.
‘‘(4) A not-for-profit organization that provides
care for homeless veterans and is designated by the
Secretary of Veterans Affairs as authorized to receive
such donations.’’.
115
(c) CLARIFICATION
OF FOOD THAT MAY BE DO-
NATED.—Subsection (b) of such section is further amended
by inserting ‘‘rations known as humanitarian daily rations
(HDRs),’’ after ‘‘(MREs),’’.
TITLE IV—MILITARY PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 1997, as follows:
(1) The Army, 495,000.
(2) The Navy, 407,318.
(3) The Marine Corps, 174,000.
(4) The Air Force, 381,100.
SEC. 402. PERMANENT END STRENGTH LEVELS TO SUP-
PORT 
TWO 
MAJOR 
REGIONAL 
CONTIN-
GENCIES.
Section 691 of title 10, United States Code, is amend-
ed—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(2) by striking out subsection (c) and inserting
in lieu thereof the following:
‘‘(c) The budget for the Department of Defense for any
fiscal year as submitted to Congress shall include amounts
116
for funding for each of the armed forces (other than the
Coast Guard) at least in the amounts necessary to maintain
the active duty end strengths prescribed in subsection (b),
as in effect at the time that such budget is submitted.
‘‘(d) No funds appropriated to the Department of De-
fense may be used to implement a reduction of the active
duty end strength for any of the armed forces (other than
the Coast Guard) for any fiscal year below the level specified
in subsection (b) unless the reduction in end strength for
that armed force for that fiscal year is specifically author-
ized by law.’’.
SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED
OFFICERS ON ACTIVE DUTY IN GRADES OF
MAJOR, LIEUTENANT COLONEL, AND COLO-
NEL AND NAVY GRADES OF LIEUTENANT
COMMANDER, COMMANDER, AND CAPTAIN.
(a) REVISION IN ARMY, AIR FORCE, AND MARINE
CORPS LIMITATIONS.—The table in paragraph (1) of sec-
tion 523(a) of title 10, United States Code, is amended to
read as follows:
‘‘Total number of commissioned officers (excluding
officers in categories specified in subsection (b)) on
active duty:
Number of officers who may be serving on active duty in the
grade of:
Major
Lieutenant
Colonel
Colonel
Army:
35,000 ...............................................
8,922
6,419
2,163
40,000 ...............................................
9,614
6,807
2,347
45,000 ...............................................
10,305
7,196
2,530
50,000 ...............................................
10,997
7,584
2,713
55,000 ...............................................
11,688
7,973
2,897
60,000 ...............................................
12,380
8,361
3,080
65,000 ...............................................
13,071
8,750
3,264
117
‘‘Total number of commissioned officers (excluding
officers in categories specified in subsection (b)) on
active duty:
Number of officers who may be serving on active duty in the
grade of:
Major
Lieutenant
Colonel
Colonel
70,000 ...............................................
13,763
9,138
3,447
75,000 ...............................................
14,454
9,527
3,631
80,000 ...............................................
15,146
9,915
3,814
85,000 ...............................................
15,837
10,304
3,997
90,000 ...............................................
16,529
10,692
4,181
95,000 ...............................................
17,220
11,081
4,364
100,000 .............................................
17,912
11,469
4,548
110,000 .............................................
19,295
12,246
4,915
120,000 .............................................
20,678
13,023
5,281
130,000 .............................................
22,061
13,800
5,648
170,000 .............................................
27,593
16,908
7,116
Air Force:
35,000 ...............................................
9,216
7,090
2,125
40,000 ...............................................
10,025
7,478
2,306
45,000 ...............................................
10,835
7,866
2,487
50,000 ...............................................
11,645
8,253
2,668
55,000 ...............................................
12,454
8,641
2,849
60,000 ...............................................
13,264
9,029
3,030
65,000 ...............................................
14,073
9,417
3,211
70,000 ...............................................
14,883
9,805
3,392
75,000 ...............................................
15,693
10,193
3,573
80,000 ...............................................
16,502
10,582
3,754
85,000 ...............................................
17,312
10,971
3,935
90,000 ...............................................
18,121
11,360
4,115
95,000 ...............................................
18,931
11,749
4,296
100,000 .............................................
19,741
12,138
4,477
105,000 .............................................
20,550
12,527
4,658
110,000 .............................................
21,360
12,915
4,838
115,000 .............................................
22,169
13,304
5,019
120,000 .............................................
22,979
13,692
5,200
125,000 .............................................
23,789
14,081
5,381
Marine Corps:
10,000 ...............................................
2,525
1,480
571
12,500 ...............................................
2,900
1,600
592
15,000 ...............................................
3,275
1,720
613
17,500 ...............................................
3,650
1,840
633
20,000 ...............................................
4,025
1,960
654
22,500 ...............................................
4,400
2,080
675
25,000 ...............................................
4,775
2,200
695.’’
(b) REVISION IN NAVY LIMITATIONS.—The table in
paragraph (2) of such section is amended to read as follows:
‘‘Total number of commissioned officers (excluding
officers in categories specified in subsection (b)) on
active duty:
Number of officers who may be serving on active duty in
grade of:
Lieutenant com-
mander
Commander
Captain
Navy:
30,000 ...............................................
7,331
5,018
2,116
33,000 ...............................................
7,799
5,239
2,223
36,000 ...............................................
8,267
5,460
2,330
39,000 ...............................................
8,735
5,681
2,437
42,000 ...............................................
9,203
5,902
2,544
118
‘‘Total number of commissioned officers (excluding
officers in categories specified in subsection (b)) on
active duty:
Number of officers who may be serving on active duty in
grade of:
Lieutenant com-
mander
Commander
Captain
45,000 ...............................................
9,671
6,123
2,651
48,000 ...............................................
10,139
6,343
2,758
51,000 ...............................................
10,606
6,561
2,864
54,000 ...............................................
11,074
6,782
2,971
57,000 ...............................................
11,541
7,002
3,078
60,000 ...............................................
12,009
7,222
3,185
63,000 ...............................................
12,476
7,441
3,292
66,000 ...............................................
12,944
7,661
3,398
70,000 ...............................................
13,567
7,954
3,541
90,000 ...............................................
16,683
9,419
4,254.’’
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) shall take effect on September 1, 1997,
except that with the approval of the Secretary of Defense
the Secretary of a military department may prescribe an
earlier date for that Secretary’s military department. Any
such date shall be published in the Federal Register.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) FISCAL YEAR 1997.—The Armed Forces are au-
thorized strengths for Selected Reserve personnel of the re-
serve components as of September 30, 1997, as follows:
(1) The Army National Guard of the United
States, 366,758.
(2) The Army Reserve, 215,179.
(3) The Naval Reserve, 96,304.
(4) The Marine Corps Reserve, 42,000.
(5) The Air National Guard of the United
States, 108,843.
(6) The Air Force Reserve, 73,281.
119
(7) The Coast Guard Reserve, 8,000.
(b) WAIVER AUTHORITY.—The Secretary of Defense
may vary the end strength authorized by subsection (a) by
not more than 2 percent.
(c) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve compo-
nent for a fiscal year shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such
component which are on active duty (other than for
training) at the end of the fiscal year, and
(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be proportionately in-
creased by the total authorized strengths of such units and
by the total number of such individual members.
120
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
Within the end strengths prescribed in section 411(a),
the reserve components of the Armed Forces are authorized,
as of September 30, 1997, the following number of Reserves
to be serving on full-time active duty or full-time duty, in
the case of members of the National Guard, for the purpose
of organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United
States, 22,798.
(2) The Army Reserve, 11,729.
(3) The Naval Reserve, 16,603.
(4) The Marine Corps Reserve, 2,559.
(5) The Air National Guard of the United
States, 10,378.
(6) The Air Force Reserve, 625.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS.
(a) AUTHORIZATION FOR FISCAL YEAR 1997.—The
minimum number of military technicians as of the last day
of fiscal year 1997 for the reserve components of the Army
and the Air Force (notwithstanding section 129 of title 10,
United States Code) shall be the following:
(1) For the Army Reserve, 6,799.
(2) For the Army National Guard of the United
States, 25,500.
121
(3) For the Air Force Reserve, 9,802.
(4) For the Air National Guard of the United
States, 22,906.
(b) INFORMATION TO BE PROVIDED WITH FUTURE
AUTHORIZATION REQUESTS.—Section 10216 of title 10,
United States Code, is amended—
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a) the following
new subsection (b):
‘‘(b) INFORMATION REQUIRED TO BE SUBMITTED
WITH
ANNUAL
END
STRENGTH
AUTHORIZATION
RE-
QUEST.—(1) The Secretary of Defense shall include as part
of the budget justification documents submitted to Congress
with the budget of the Department of Defense for any fiscal
year the following information with respect to the end
strengths for military technicians requested in that budget
pursuant to section 115(g) of this title, shown separately
for each of the Army and Air Force reserve components:
‘‘(A) The number of dual-status technicians in
the high priority units and organizations specified in
subsection (a)(1).
‘‘(B) The number of technicians other than dual-
status technicians in the high priority units and or-
ganizations specified in subsection (a)(1).
122
‘‘(C) The number of dual-status technicians in
other than high priority units and organizations
specified in subsection (a)(1).
‘‘(D) The number of technicians other than dual-
status technicians in other than high priority units
and organizations specified in subsection (a)(1).
‘‘(2)(A) If the budget submitted to Congress for any
fiscal year requests authorization for that fiscal year under
section 115(g) of this title of a military technician end
strength for a reserve component of the Army or Air Force
in a number that constitutes a reduction from the end
strength minimum established by law for that reserve com-
ponent for the fiscal year during which the budget is sub-
mitted, the Secretary of Defense shall submit to the congres-
sional defense committees with that budget a justification
providing the basis for that requested reduction in techni-
cian end strength.
‘‘(B) Any justification submitted under subparagraph
(A) shall clearly delineate—
‘‘(i) in the case of a reduction that includes a re-
duction in technicians described in subparagraph (A)
or (C) of paragraph (1), the specific force structure
reductions forming the basis for such requested techni-
cian reduction (and the numbers related to those force
structure reductions); and
123
‘‘(ii) in the case of a reduction that includes re-
ductions in technicians described in subparagraphs
(B) or (D) of paragraph (1), the specific force struc-
ture reductions, Department of Defense civilian per-
sonnel reductions, or other reasons forming the basis
for such requested technician reduction (and the num-
bers related to those reductions).’’.
(c) TECHNICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by striking out ‘‘section
115’’ and inserting in lieu thereof ‘‘section 115(g)’’;
and
(2) in subsection (c), as redesignated by sub-
section (b)(1), by striking out ‘‘after the date of the
enactment of this section’’ both places it appears and
inserting in lieu thereof ‘‘after February 10, 1996,’’.
Subtitle C—Authorization of
Appropriations
SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
1997 a total of $70,206,030,000. The authorization in the
preceding sentence supersedes any other authorization of
124
appropriations (definite or indefinite) for such purpose for
fiscal year 1997.
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—Personnel Management
SEC. 501. AUTHORIZATION FOR SENIOR ENLISTED MEM-
BERS TO REENLIST FOR AN INDEFINITE PE-
RIOD OF TIME.
Subsection (d) of section 505 of title 10, United States
Code, is amended to read as follows:
‘‘(d)(1) For a member with less than 10 years of serv-
ice, the Secretary concerned may accept a reenlistment in
the Regular Army, Regular Navy, Regular Air Force, Regu-
lar Marine Corps, or Regular Coast Guard, as the case may
be, for periods of at least two but not more than six years.
‘‘(2) At the discretion of the Secretary concerned, a
member with 10 or more years of service who reenlists in
the Regular Army, Regular Navy, Regular Air Force, Regu-
lar Marine Corps, or Regular Coast Guard, as the case may
be, and who meets all qualifications for continued service,
may be accepted for reenlistment of an unspecified period
of time.’’.
125
SEC. 502. AUTHORITY TO EXTEND ENTRY ON ACTIVE DUTY
UNDER THE DELAYED ENTRY PROGRAM.
Section 513(b) of title 10, United States Code, is
amended—
(1) by adding after the first sentence the follow-
ing new sentence: ‘‘The Secretary concerned may ex-
tend the 365-day period for any person for up to an
additional 180 days if the Secretary considers such
extension to be warranted on a case-by-case basis.’’;
and
(2) in the last sentence, by striking out ‘‘the pre-
ceding sentence’’ and inserting in lieu thereof ‘‘under
this subsection’’.
SEC. 503. PERMANENT AUTHORITY FOR NAVY SPOT PRO-
MOTIONS FOR CERTAIN LIEUTENANTS.
Section 5721 of title 10, United States Code, is amend-
ed by striking out subsection (g).
SEC. 504. REPORTS ON RESPONSE TO RECOMMENDATIONS
CONCERNING IMPROVEMENTS TO DEPART-
MENT OF DEFENSE JOINT MANPOWER PROC-
ESS.
(a) SEMIANNUAL REPORT.—The Secretary of Defense
shall submit to Congress a semiannual report on the status
of actions taken by the Secretary to implement the rec-
ommendations made by the Department of Defense Inspec-
tor General in the report of November 29, 1995, entitled
126
‘‘Inspection of the Department of Defense Joint Manpower
Process’’ (Report No. 96–029). The first such report shall
be submitted not later than February 1, 1997.
(b) ADDITIONAL MATTER FOR FIRST REPORT.—As
part of the first report under subsection (a), the Secretary
shall include the following:
(1) The Secretary’s assessment as to the need to
establish a joint, centralized permanent organization
in the Department of Defense to determine, validate,
approve, and manage military and civilian man-
power requirements resources at joint organizations.
(2) The Secretary’s assessment of the Department
of Defense timeline and plan to increase the capabil-
ity of the joint professional military education system
(including the Armed Forces Staff College) to over-
come the capacity limitations cited in the report re-
ferred to in subsection (a).
(3) The Secretary’s plan and timeline to provide
the necessary training and education of reserve com-
ponent officers.
(c) GAO ASSESSMENT.—The Comptroller General of
the United States shall assess the completeness and ade-
quacy of the corrective actions taken by the Secretary with
respect to the matters covered in the report referred to in
subsection (a) and shall submit a report to Congress, not
127
later than one year after the date of enactment of this Act,
providing the Comptroller General’s findings and rec-
ommendations.
SEC. 505. FREQUENCY OF REPORTS TO CONGRESS ON
JOINT OFFICER MANAGEMENT POLICIES.
(a) CHANGE
FROM SEMIANNUAL
TO ANNUAL RE-
PORT.—Section 662(b) of title 10, United States Code, is
amended by striking out ‘‘REPORT.—The Secretary of De-
fense shall periodically (and not less often than every six
months) report to Congress on the promotion rates’’ and
inserting in lieu thereof ‘‘ANNUAL REPORT.—Not later than
January 1 of each year, the Secretary of Defense shall sub-
mit to Congress a report on the promotion rates during the
preceding fiscal year’’.
(b) TECHNICAL
AND CONFORMING AMENDMENTS.—
Such section is further amended—
(1) in the first sentence, by striking out
‘‘clauses’’ and inserting in lieu thereof ‘‘paragraphs’’;
and
(2) in the second sentence—
(A) by inserting ‘‘for any fiscal year’’ after
‘‘such objectives’’; and
(B) by striking out ‘‘periodic report re-
quired by this subsection’’ and inserting in lieu
thereof ‘‘report for that fiscal year’’.
128
SEC. 506. REPEAL OF REQUIREMENT THAT COMMISSIONED
OFFICERS BE INITIALLY APPOINTED IN A RE-
SERVE GRADE.
Section 532 of title 10, United States Code, is amended
by striking out subsection (e).
SEC. 507. CONTINUATION ON ACTIVE STATUS FOR CERTAIN
RESERVE OFFICERS OF THE AIR FORCE.
(a) AUTHORITY.—Section 14507 of title 10, United
States Code, is amended by adding at the end the following
new subsection:
‘‘(c) TEMPORARY AUTHORITY TO RETAIN CERTAIN
OFFICERS DESIGNATED AS JUDGE ADVOCATES.—(1) Not-
withstanding the provisions of subsections (a) and (b), the
Secretary of the Air Force may retain on the reserve active-
status list any reserve officer of the Air Force who is des-
ignated as a judge advocate and who obtained the first pro-
fessional degree in law while on an educational delay pro-
gram subsequent to being commissioned through the Reserve
Officers’ Training Corps.
‘‘(2) No more than 50 officers may be retained on the
reserve active-status list under the authority of paragraph
(1) at any time.
‘‘(3) No officer may be retained on the reserve active-
status list under the authority of paragraph (1) for a period
exceeding three years from the date on which, but for that
129
authority, that officer would have been removed from the
reserve active-status list under subsection (a) or (b).
‘‘(4) The authority of the Secretary of the Air Force
under paragraph (1) expires on September 30, 2003.’’.
(b) EFFECTIVE DATE.—Subsection (c) of section 14507
of title 10, United States Code, as added by subsection (a),
shall take effect on October 1, 1996.
Subtitle B—Reserve Component
Matters
SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AU-
THORITY.
(a) IRR MEMBERS SUBJECT TO ORDER TO ACTIVE
DUTY OTHER THAN DURING WAR OR NATIONAL EMER-
GENCY.—Section 10144 of title 10, United States Code, is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘Within the Ready
Reserve’’; and
(2) by adding at the end the following:
‘‘(b)(1) Within the Individual Ready Reserve of each
reserve component there is a mobilization category of mem-
bers, as designated by the Secretary concerned, who are sub-
ject to being ordered to active duty involuntarily in accord-
ance with section 12304 of this title. A member may not
be placed in that mobilization category unless—
130
‘‘(A) the member volunteers for that category;
and
‘‘(B) the member is selected for that category by
the Secretary concerned, based upon the needs of the
service and the grade and military skills of that mem-
ber.
‘‘(2) A member of the Individual Ready Reserve may
not be carried in the mobilization category of members
under paragraph (1) after the end of the 24-month period
beginning on the date of the separation of the member from
active service.
‘‘(3) The Secretary shall designate the grades and criti-
cal military skills or specialities of members to be eligible
for placement in such mobilization category.
‘‘(4) A member in such mobilization category shall be
eligible for benefits (other than pay and training) as are
normally available to members of the Selected Reserve, as
determined by the Secretary of Defense.’’.
(b) CRITERIA FOR ORDERING TO ACTIVE DUTY.—Sub-
section (a) of section 12304 of title 10, United States Code,
is amended by inserting after ‘‘of this title),’’ the following:
‘‘or any member in the Individual Ready Reserve mobiliza-
tion category and designated as essential under regulations
prescribed by the Secretary concerned,’’.
131
(c) MAXIMUM NUMBER.—Subsection (c) of such section
is amended—
(1) by inserting ‘‘and the Individual Ready Re-
serve’’ after ‘‘Selected Reserve’’; and
(2) by inserting ‘‘, of whom not more than
30,000 may be members of the Individual Ready Re-
serve’’ before the period at the end.
(d) CONFORMING AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (f), by inserting ‘‘or Individual
Ready Reserve’’ after ‘‘Selected Reserve’’;
(2) in subsection (g), by inserting ‘‘, or member
of the Individual Ready Reserve,’’ after ‘‘to serve as
a unit’’; and
(3) by adding at the end the following new sub-
section:
‘‘(i) For purposes of this section, the term ‘Individual
Ready Reserve mobilization category’ means, in the case of
any reserve component, the category of the Individual
Ready Reserve described in section 10144(b) of this title.’’.
(e) CLERICAL AMENDMENTS.—(1) The heading of such
section is amended to read as follows:
132
‘‘§ 12304. Selected Reserve and certain Individual
Ready Reserve members; order to active
duty other than during war or national
emergency’’.
(2) The item relating to section 12304 in the table of
sections at the beginning of chapter 1209 of such title is
amended to read as follows:
‘‘12304. Selected Reserve and certain Individual Ready Reserve members; order
to active duty other than during war or national emergency’’.
SEC. 512. TRAINING FOR RESERVES ON ACTIVE DUTY IN
SUPPORT OF THE RESERVES.
Subsection (b) of section 12310 of title 10, United
States Code, is amended to read as follows:
‘‘(b) A Reserve on active duty as described in sub-
section (a) may be provided training and professional de-
velopment opportunities consistent with those provided to
other members on active duty, as the Secretary concerned
sees fit.’’.
SEC. 513. CLARIFICATION TO DEFINITION OF ACTIVE STA-
TUS.
Section 101(d)(4) of title 10, United States Code, is
amended by striking out ‘‘a reserve commissioned officer,
other than a commissioned warrant officer’’ and inserting
in lieu thereof ‘‘a member of a reserve component’’.
133
SEC. 514. APPOINTMENT ABOVE GRADE OF 0–2 IN THE
NAVAL RESERVE.
Paragraph (3) of section 12205(b) of title 10, United
States Code, is amended by inserting ‘‘or the Seaman to
Admiral Program’’ before the period at the end.
SEC. 515. REPORT ON NUMBER OF ADVISERS IN ACTIVE
COMPONENT SUPPORT OF RESERVES PILOT
PROGRAM.
(a) REPORT ON NUMBER OF ACTIVE COMPONENT AD-
VISERS.—Not later than six months after the date of the
enactment of this Act, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Represent-
atives a report setting forth the Secretary’s determination
as to the appropriate number of active component personnel
to be assigned to serve as advisers to reserve components
under section 414 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note).
If the Secretary’s determination is that such number should
be a number other than the required minimum number in
effect under subsection (c) of such section, the Secretary
shall include in the report an explanation providing the
Secretary’s justification for the number recommended.
(b) TECHNICAL AMENDMENT.—Section 414(a) of the
National Defense Authorization Act for Fiscal Years 1992
and 1993 (10 U.S.C. 12001 note) is amended by striking
134
out ‘‘During fiscal years 1992 and 1993, the Secretary of
the Army shall institute’’ and inserting in lieu thereof ‘‘The
Secretary of the Army shall carry out’’.
SEC. 516. SENSE OF CONGRESS AND REPORT REGARDING
REEMPLOYMENT RIGHTS FOR MOBILIZED RE-
SERVISTS EMPLOYED IN FOREIGN COUN-
TRIES.
(a) SENSE
OF CONGRESS.—Congress is concerned
about the lack of reemployment rights afforded Reserve com-
ponent members who reside in foreign countries and either
work for United States companies that maintain offices or
operations in foreign countries or work for foreign employ-
ers. Being outside the jurisdiction of the United States, these
employers are not subject to the provisions of chapter 43
of title 38, United States Code, known as the Uniformed
Services Employment and Reemployment Rights Act
(USERRA). The purpose of that Act is to provide statutory
employment protections that include reinstatement, senior-
ity, status, and rate of pay coverage for Reservists who are
ordered to active duty for a specified period of time, includ-
ing involuntary active duty in support of an operational
contingency. While most Reserve members are afforded the
protections of that Act (which covers reemployment rights
in their civilian jobs upon completion of military service),
approximately 2,000 members of the Selected Reserve reside
135
outside the United States and its territories and, not being
guaranteed the job protection envisioned by the USERRA,
are potentially subject to reemployment problems after re-
lease from active duty. During Operation Joint Endeavor,
a number of Reservists who are currently living and work-
ing abroad and who were involuntarily ordered to active
duty in support of that operation did in fact face reemploy-
ment problems with their civilian employers. This situation
poses a continuing personnel management challenge for the
reserve components.
(b) RECOGNITION OF PROBLEM.—Congress, while rec-
ognizing that foreign governments and companies located
abroad, not being within the jurisdiction of the United
States, cannot be required to comply with the provisions
of the Uniformed Services Employment and Reemployment
Rights Act, also recognizes that there is a need to provide
assistance to Reservists in the situation described in sub-
section (a), both in the near term and the long term.
(c) REPORT REQUIREMENT.—Not later than April 1,
1997, the Secretary of Defense shall submit to the Commit-
tee on Armed Services of the Senate and the Committee on
National Security of the House of Representatives a report
that sets forth recommended actions to help alleviate reem-
ployment problems for Reservists who are employed outside
the United States and its territories by United States com-
136
panies that maintain offices or operations in foreign coun-
tries or by foreign employers. The report shall include rec-
ommendations on the assistance and support that may be
required by other organizations of the Government, includ-
ing the Defense Attache´ Offices, the Department of Labor,
and the Department of State. The report shall be prepared
in consultation with the Secretary of State and the Sec-
retary of Labor.
Subtitle C—Jurisdiction and Pow-
ers of Courts-Martial for the Na-
tional Guard When Not in Fed-
eral Service
SEC. 531. COMPOSITION, JURISDICTION, AND PROCEDURES
OF COURTS-MARTIAL.
Section 326 of title 32, United States Code, is amend-
ed—
(1) by inserting ‘‘(a)’’ at the beginning of the
text of the section;
(2) by striking out the second sentence and in-
serting in lieu thereof the following: ‘‘They shall fol-
low substantially the forms and procedures provided
for those courts and shall provide accused members of
the National Guard the rights and protections pro-
vided in those courts.’’; and
(3) by adding at the end the following:
137
‘‘(b) Courts-martial of the National Guard not in Fed-
eral service do not have jurisdiction over those persons who
are subject to the jurisdiction of a court-martial pursuant
to section 802 of title 10.
‘‘(c) A court-martial of the National Guard not in
Federal service shall have such jurisdiction and powers,
consistent with the provisions of this chapter, as may be
provided by the law of the State or Territory, Puerto Rico,
or District of Columbia in which the court-martial is con-
vened.’’.
SEC. 532. GENERAL COURTS-MARTIAL.
(a) CONVENING AUTHORITY.—Subsection (a) of section
327 of title 32, United States Code, is amended by inserting
‘‘or adjutant general’’ after ‘‘governor’’.
(b) PUNISHMENTS.—Subsection (b) of such section is
amended to read as follows:
‘‘(b) A general court-martial may sentence an accused,
upon conviction, to any of the following punishments:
‘‘(1) A fine of not more than $500 for a single
offense.
‘‘(2) Forfeiture of pay and allowances in an
amount of not more than $500 for a single offense or
any forfeiture of pay for not more than six months.
‘‘(3) A reprimand.
138
‘‘(4) Dismissal, bad conduct discharge, or dis-
honorable discharge.
‘‘(5) In the case of an enlisted member, reduction
to a lower grade.
‘‘(6) Confinement for not more than 180 days.
‘‘(7) Any combination of the punishments speci-
fied in paragraphs (1) through (6).’’.
(c) LIMITATION
ON PUNITIVE DISCHARGES.—Such
section is further amended by adding at the end the follow-
ing new subsection:
‘‘(c)(1) A dismissal or bad conduct or dishonorable dis-
charge may not be adjudged unless counsel was detailed to
represent the accused and a military judge was detailed to
the trial.
‘‘(2) In a case in which the sentence adjudged includes
dismissal or a bad conduct or dishonorable discharge, a ver-
batim record of the proceedings shall be made.’’.
SEC. 533. SPECIAL COURTS-MARTIAL.
(a) CONVENING AUTHORITY.—Subsection (a) of section
328 of title 32, United States Code, is amended by inserting
‘‘, if a National Guard officer,’’ after ‘‘the commanding offi-
cer’’.
(b) PUNISHMENTS.—Subsection (b) of such section is
amended to read as follows:
139
‘‘(b) A special court-martial may sentence an accused,
upon conviction, to any of the following punishments:
‘‘(1) A fine of not more than $300 for a single
offense.
‘‘(2) Forfeiture of pay and allowances in an
amount of not more than $300 for a single offense,
but adjudged forfeiture of pay may not exceed two-
thirds pay per month and forfeitures may not extend
for more than six months.
‘‘(3) A reprimand.
‘‘(4) Bad conduct discharge.
‘‘(5) In the case of an enlisted member, reduction
to a lower grade.
‘‘(6) Confinement for not more than 100 days.
‘‘(7) Any combination of the punishments speci-
fied in paragraphs (1) through (6).’’.
(c) LIMITATION ON BAD CONDUCT DISCHARGES.—
Subsection (c) of such section is amended to read as follows:
‘‘(c)(1) A bad conduct discharge may not be adjudged
unless counsel was detailed to represent the accused and a
military judge was detailed to the trial.
‘‘(2) In a case in which the sentence adjudged includes
a bad conduct discharge, a verbatim record of the proceed-
ings shall be made.’’.
140
SEC. 534. SUMMARY COURTS-MARTIAL.
(a) CONVENING AUTHORITY.—Subsection (a) of section
329 of title 32, United States Code, is amended—
(1) by inserting ‘‘, if a National Guard officer,’’
after ‘‘the commanding officer’’; and
(2) by inserting after the first sentence the fol-
lowing new sentence: ‘‘Summary courts-martial may
also be convened by superior authority.’’.
(b) JURISDICTION.—Subsection (a) of such section is
further amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following:
‘‘(2) A summary court-martial may not try a commis-
sioned officer.’’.
(c) PUNISHMENTS.—Subsection (b) of such section is
amended to read as follows:
‘‘(b) A summary court-martial may sentence an ac-
cused, upon conviction, to any of the following punishments:
‘‘(1) A fine of not more than $200 for a single
offense.
‘‘(2) Forfeiture of pay and allowances in an
amount of not more than $200 for a single offense,
but not to exceed two-thirds of one month’s pay.
‘‘(3) Reduction to a lower grade.
‘‘(4) Any combination of the punishments speci-
fied in paragraphs (1) through (3).’’.
141
(d) CONSENT OF ACCUSED FOR SUMMARY COURT-
MARTIAL.—Such section is further amended by adding at
the end the following new subsection:
‘‘(c) An accused with respect to whom summary
courts-martial have jurisdiction may not be brought to trial
before a summary court-martial if the accused objects there-
to. If an accused so objects to trial by summary court-mar-
tial, the convening authority may order trial by special or
general court-martial, as may be appropriate.’’.
SEC. 535. REPEAL OF AUTHORITY FOR CONFINEMENT IN
LIEU OF FINE.
Section 330 of title 32, United States Code, is repealed.
SEC. 536. APPROVAL OF SENTENCE OF BAD CONDUCT DIS-
CHARGE OR CONFINEMENT.
(a) IN GENERAL.—Section 331 of title 32, United
States Code, is amended by striking out ‘‘or dishonorable
discharge’’ and inserting in lieu thereof ‘‘, bad conduct dis-
charge, dishonorable discharge, or confinement for three
months or more’’.
(b) CONFORMING AMENDMENT.—The heading of such
section is amended to read as follows:
‘‘§ 331. Sentences requiring approval of governor’’.
SEC. 537. AUTHORITY OF MILITARY JUDGES.
Section 332 of title 32, United States Code, is amended
by inserting ‘‘or military judge’’ after ‘‘the president’’.
142
SEC. 538. STATUTORY REORGANIZATION.
(a) NEW TITLE 32 CHAPTER.—(1) Title 32, United
States Code, is amended by inserting after section 325 the
following:
‘‘CHAPTER 4—COURTS-MARTIAL FOR THE
NATIONAL GUARD WHEN NOT IN FED-
ERAL SERVICE
‘‘Sec.
‘‘401.
Courts-martial: composition, jurisdiction, and procedures.
‘‘402.
General courts-martial.
‘‘403.
Special courts-martial.
‘‘404.
Summary courts-martial.
‘‘405.
Sentences requiring approval of governor.
‘‘406.
Compelling attendance of accused and witnesses.
‘‘407.
Execution of process and sentence.’’.
(2) The table of chapters at the beginning of such title
is amended by inserting after the item relating to chapter
3 the following new item:
‘‘4. Courts-Martial for the National Guard When not in Federal Service
401’’.
(3) The table of sections at the beginning of chapter
3 of such title is amended by striking out the items relating
to sections 326 through 333.
(b) REDESIGNATION OF SECTIONS.—The following sec-
tions of title 32, United States Code (as amended by this
subtitle), are redesignated as follows:
Section
Redesignated section
326 ...........................................................................................
401
327 ...........................................................................................
402
328 ...........................................................................................
403
329 ...........................................................................................
404
331 ...........................................................................................
405
332 ...........................................................................................
406
333 ...........................................................................................
407
143
(c) SECTION HEADINGS.—The headings for sections
401, 402, 403, and 404 of title 32, United States Code, as
redesignated by subsection (b), are amended by striking out
‘‘of National Guard not in Federal service’’.
SEC. 539. EFFECTIVE DATE.
The amendments made by this subtitle shall take effect
on the date of the enactment of this Act, except that for
an offense committed before that date the maximum punish-
ment shall be the maximum punishment in effect at the
time of the commission of the offense.
SEC. 540. CONFORMING AMENDMENTS TO UNIFORM CODE
OF MILITARY JUSTICE.
(a) ARTICLE 20.—Section 820 of title 10, United
States Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘Subject to’’;
(2) by striking out the second and third sentences
and inserting in lieu thereof the following:
‘‘(b) An accused with respect to whom summary
courts-martial have jurisdiction may not be brought to trial
before a summary court-martial if the accused objects there-
to. If an accused so objects to trial by summary court-mar-
tial, the convening authority may order trial by special or
general court-martial, as may be appropriate.’’; and
(3) by designating as subsection (c) the sentence
beginning ‘‘Summary courts-martial may,’’.
144
(b) ARTICLE 54.—Section 854(c)(1) of such title is
amended by striking out ‘‘complete record of the proceedings
and testimony’’ and inserting in lieu thereof ‘‘verbatim
record of the proceedings’’.
Subtitle D—Education and
Training Programs
SEC. 551. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT
AS A CADET OR MIDSHIPMAN IN THE SENIOR
RESERVE OFFICERS’ TRAINING CORPS AND
THE SERVICE ACADEMIES.
(a) SENIOR RESERVE OFFICERS’ TRAINING CORPS.—
Sections 2107(a) and 2107a(a) of title 10, United States
Code, are amended—
(1) by striking out ‘‘25 years of age’’ and insert-
ing in lieu thereof ‘‘27 years of age’’; and
(2) by striking out ‘‘29 years of age’’ and insert-
ing in lieu thereof ‘‘30 years of age’’.
(b) UNITED STATES MILITARY ACADEMY.—Section
4346(a) of such title is amended by striking out ‘‘twenty-
second birthday’’ and inserting in lieu thereof ‘‘twenty-
third birthday’’.
(c) UNITED
STATES
NAVAL
ACADEMY.—Section
6958(a)(1) of such title is amended by striking out ‘‘twenty-
second birthday’’ and inserting in lieu thereof ‘‘twenty-
third birthday’’.
145
(d) UNITED STATES AIR FORCE ACADEMY.—Section
9346(a) of such title is amended by striking out ‘‘twenty-
second birthday’’ and inserting in lieu thereof ‘‘twenty-
third birthday’’.
SEC. 552. OVERSIGHT AND MANAGEMENT OF SENIOR RE-
SERVE OFFICERS’ TRAINING CORPS PRO-
GRAM.
(a) ENROLLMENT PRIORITY TO BE CONSISTENT WITH
PURPOSE OF PROGRAM.—(1) Section 2103 of title 10, Unit-
ed States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(e) An educational institution at which a unit of the
program has been established shall give priority for enroll-
ment in the program to students who are eligible for ad-
vanced training under section 2104 of this title.’’.
(2) Section 2109 of such title is amended by adding
at the end the following new subsection:
‘‘(c)(1) A person who is not qualified for, and (as de-
termined by the Secretary concerned) will not be able to
become qualified for, advanced training by reason of one
or more of the requirements prescribed in paragraphs (1)
through (3) of section 2104(b) of this title shall not be per-
mitted to participate in—
‘‘(A) field training or a practice cruise under
section 2106(b)(6) of this title; or
146
‘‘(B) practical military training under sub-
section (a).
‘‘(2) The Secretary of the military department con-
cerned may waive the limitation in paragraph (1) under
procedures prescribed by the Secretary.’’.
(b) WEAR
OF
THE MILITARY UNIFORM.—Section
772(h) of such title is amended by inserting before the pe-
riod at the end the following: ‘‘if the wear of such uniform
is specifically authorized under regulations prescribed by
the Secretary of the military department concerned’’.
SEC. 553. ROTC SCHOLARSHIP STUDENT PARTICIPATION IN
SIMULTANEOUS MEMBERSHIP PROGRAM.
Section 2103 of title 10, United States Code, is amend-
ed by adding after subsection (e), as added by section 552,
the following new subsection:
‘‘(f) The Secretary of Defense shall ensure that, in car-
rying out the program, the Secretaries of the military de-
partments permit any person who is receiving financial as-
sistance under section 2107 of this title simultaneously to
be a member of the Selected Reserve.’’.
SEC. 554. EXPANSION OF ROTC ADVANCED TRAINING PRO-
GRAM TO INCLUDE GRADUATE STUDENTS.
(a) IN GENERAL.—Section 2107(c) of title 10, United
States Code, is amended by inserting before the last sentence
the following new sentence: ‘‘The Secretary of the military
147
department concerned may provide similar financial assist-
ance to a student enrolled in an advanced education pro-
gram beyond the baccalaureate degree level if the student
also is a cadet or midshipman in an advanced training
program.’’.
(b) DEFINITIONAL CHANGE.—Paragraph (3) of section
2101 of title 10, United States Code, is amended by insert-
ing ‘‘students enrolled in an advanced education program
beyond the baccalaureate degree level or to’’ after ‘instruc-
tion offered in the Senior Reserve Officers’ Training Corps
to’’.
SEC. 555. RESERVE CREDIT FOR MEMBERS OF ARMED
FORCES HEALTH PROFESSIONS SCHOLAR-
SHIP AND FINANCIAL ASSISTANCE PROGRAM.
(a) SERVICE CREDIT.—Section 2126 of title 10, Unit-
ed States Code, is amended—
(1) by striking out ‘‘Service performed’’ and in-
serting in lieu thereof ‘‘(a) GENERAL RULE AGAINST
PROVISION OF SERVICE CREDIT.—Except as provided
in subsection (b), service performed’’; and
(2) by adding at the end the following:
‘‘(b) SERVICE CREDIT FOR CERTAIN PURPOSES.—(1)
This subsection applies with respect to a member of the Se-
lected Reserve who—
148
‘‘(A) completed a course of study under this sub-
chapter as a member of the program;
‘‘(B) completed the active duty obligation im-
posed under section 2123(a) of this title; and
‘‘(C) possesses a specialty designated by the Sec-
retary concerned as critically needed in wartime.
‘‘(2) Upon satisfactory completion of a year of service
in the Selected Reserve by a member of the Selected Reserve
described in paragraph (1), the Secretary concerned may
credit the member with a maximum of 50 points creditable
toward the computation of the member’s years of service
under section 12732(a)(2) of this title for one year of par-
ticipation in a course of study under this subchapter. Not
more than four years of participation in a course of study
under this subchapter may be considered under this para-
graph.
‘‘(3) In the case of a member of the Selected Reserve
described in paragraph (1), the Secretary concerned may
also credit the service of the member while pursuing a
course of study under this subchapter, but not to exceed a
total of four years, for purposes of computing years of serv-
ice creditable under section 205 of title 37.
‘‘(c) LIMITATIONS.—(1) A member of the Selected Re-
serve relieved of any portion of the minimum active duty
149
obligation imposed under section 2123(a) of this title may
not receive any point or service credit under subsection (b).
‘‘(2) A member of the Selected Reserve awarded points
or service credit under subsection (b) shall not be considered
to have been in an active status, by reason of the award
of the points or credit, while pursuing a course of study
under this subchapter for purposes of any provision of law
other than section 12732(a)(2) of this title and section 205
of title 37.’’.
(b) RETROACTIVITY BARRED.—A member of the Se-
lected Reserve is not entitled to any retroactive award or
increase in pay or allowances as a result of the amendments
made by subsection (a).
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to individuals receiving financial assist-
ance under section 2107 of title 10, United States Code,
after September 30, 1996.
SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION
BENEFITS TO INCLUDE CERTAIN RESERVE
OFFICERS’ TRAINING CORPS (ROTC) PARTICI-
PANTS.
(a) ACTIVE DUTY SERVICE.—Section 3011(c) of title
38, United States Code, is amended—
150
(1) by striking out ‘‘or upon completion of a pro-
gram of educational assistance under section 2107 of
title 10’’ in paragraph (2); and
(2) by adding at the end the following:
‘‘(3) An individual who after December 31, 1976, re-
ceives a commission as an officer in the Armed Forces upon
completion of a program of educational assistance under
section 2107 of title 10 is not eligible for educational assist-
ance under this section if the individual enters on active
duty—
‘‘(A) before October 1, 1996; or
‘‘(B) after September 30, 1996, and while par-
ticipating in such program received more than $2,000
for each year of such participation.’’.
(b) SELECTED RESERVE.—Section 3012(d) of title 38,
United States Code, is amended—
(1) by striking out ‘‘or upon completion of a pro-
gram of educational assistance under section 2107 of
title 10’’ in paragraph (2); and
(2) by adding at the end the following:
‘‘(3) An individual who after December 31, 1976, re-
ceives a commission as an officer in the Armed Forces upon
completion of a program of educational assistance under
section 2107 of title 10 is not eligible for educational assist-
151
ance under this section if the individual enters on active
duty—
‘‘(A) before October 1, 1996; or
‘‘(B) after September 30, 1996, and while par-
ticipating in such program received more than $2,000
for each year of such participation.’’.
SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND
POLICY IMPLICATIONS OF PERMITTING UP
TO FIVE PERCENT OF SERVICE ACADEMY
GRADUATES TO BE ASSIGNED DIRECTLY TO
RESERVE DUTY UPON GRADUATION.
(a) REPORT REQUIRED.—The Comptroller General of
the United States shall submit to the Committee on Armed
Services of the Senate and the Committee on National Secu-
rity of the House of Representatives a report providing an
analysis of the cost implications, and the policy implica-
tions, of permitting up to 5 percent of each graduating class
of each of the service academies to be placed, upon gradua-
tion and commissioning, in an active status in the appro-
priate reserve component (without a minimum period of
obligated active duty service), with a corresponding increase
in the number of ROTC graduates each year who are per-
mitted to serve on active duty upon commissioning.
(b) INFORMATION ON CURRENT ACADEMY GRADUATES
IN RESERVE COMPONENTS.—The Comptroller General shall
152
include in the report information (shown in the aggregate
and separately for each of the Armed Forces and for grad-
uates of each service academy) on—
(1) the number of academy graduates who at the
time of the report are serving in an active status in
a reserve component; and
(2) within the number under paragraph (1), the
number for each reserve component and, of those, the
number within each reserve component who are on
active duty under section 12301(d) of title 10, United
States Code, for the purpose of organizing, admin-
istering, recruiting, instructing, or training the re-
serve components.
(c) SUBMISSION OF REPORT.—The report shall be sub-
mitted not later than six months after the date of the enact-
ment of this Act.
(d) SERVICE ACADEMIES.—For purposes of this sec-
tion, the term ‘‘service academies’’ means—
(1) the United States Military Academy;
(2) the United States Naval Academy; and
(3) the United States Air Force Academy.
Subtitle E—Other Matters
SEC. 561. HATE CRIMES IN THE MILITARY.
(a) HUMAN RELATIONS TRAINING.—(1) The Secretary
of Defense shall ensure that the Secretary of each military
153
department conducts ongoing programs for human relations
training for all members of the Armed Forces under the ju-
risdiction of the Secretary. Matters to be covered by such
training include race relations, equal opportunity, opposi-
tion to gender discrimination, and sensitivity to ‘‘hate
group’’ activity. Such training shall be provided during
basic training (or other initial military training) and on
a regular basis thereafter.
(2) The Secretary of Defense shall also ensure that unit
commanders are aware of their responsibilities in ensuring
that impermissible activity based upon discriminatory mo-
tives does not occur in units under their command.
(b) INFORMATION TO BE PROVIDED TO PROSPECTIVE
RECRUITS.—The Secretary of Defense shall ensure that each
individual preparing to enter an officer accession program
or to execute an original enlistment agreement is provided
information concerning the meaning of the oath of office
or oath of enlistment for service in the Armed Forces in
terms of the equal protection and civil liberties guarantees
of the Constitution, and each such individual shall be in-
formed that if supporting those guarantees is not possible
personally for that individual, then that individual should
decline to enter the Armed Forces.
(c) ANNUAL SURVEY.—(1) Section 451 of title 10,
United States Code, is amended to read as follows:
154
‘‘§ 451. Race relations, gender discrimination, and
hate group activity: annual survey and re-
port
‘‘(a) ANNUAL SURVEY.—The Secretary of Defense shall
carry out an annual survey to measure the state of racial,
ethnic, and gender issues and discrimination among mem-
bers of the armed forces serving on active duty and the ex-
tent (if any) of activity among such members that may be
seen as so-called ‘hate group’ activity. The survey shall so-
licit information on the race relations and gender relations
climate in the armed forces, including—
‘‘(1) indicators of positive and negative trends of
relations among all racial and ethnic groups and be-
tween the sexes;
‘‘(2) the effectiveness of Department of Defense
policies designed to improve race, ethnic, and gender
relations; and
‘‘(3) the effectiveness of current processes for com-
plaints on and investigations into racial, ethnic, and
gender discrimination.
‘‘(b) IMPLEMENTING ENTITY.—The Secretary shall
carry out each annual survey through the entity in the De-
partment of Defense known as the Armed Forces Survey on
Race/Ethnic Issues.
‘‘(c) REPORTS TO CONGRESS.—Upon completion of bi-
ennial survey under subsection (a), the Secretary shall sub-
155
mit to Congress a report containing the results of the sur-
vey.’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 22 of such title is
amended to read as follows:
‘‘451. Race relations, gender discrimination, and hate group activity: annual sur-
vey and report.’’.
SEC. 562. AUTHORITY OF A RESERVE JUDGE ADVOCATE TO
ACT AS A NOTARY PUBLIC.
(a) NOTARY PUBLIC AUTHORITY TO INCLUDE RE-
SERVE
LAWYERS
OF
THE
ARMED
FORCES.—Section
1044a(b) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking out ‘‘on active
duty or performing inactive-duty training’’ and in-
serting in lieu thereof ‘‘, including reserve judge advo-
cates not on active duty’’;
(2) in paragraph (3), by striking out ‘‘adjutants
on active duty or performing inactive-duty training’’
and inserting in lieu thereof ‘‘adjutants, including re-
serve members not on active duty’’; and
(3) in paragraph (4), by striking out ‘‘persons
on active duty or performing inactive-duty training’’
and inserting in lieu thereof ‘‘members of the armed
forces, including reserve members not on active
duty,’’.
156
(b) RATIFICATION OF PRIOR NOTARIAL ACTS.—Any
notarial act performed before the enactment of this Act, the
validity of which has not been challenged or negated in a
case pending before or decided by a court or administrative
agency of competent jurisdiction, on or before the date of
the enactment of this Act, is hereby confirmed, ratified, and
approved with full effect as if such act was performed after
the enactment of this Act.
SEC. 563. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO
PUBLIC HEALTH SERVICE OFFICERS.
(a) LEGAL ASSISTANCE AVAILABLE.—Subsection (a)
of section 1044 of title 10, United States Code, is amended
by striking out paragraph (3) and inserting in lieu thereof
the following:
‘‘(3) Officers of the commissioned corps of the
Public Health Service who are on active duty or enti-
tled to retired or equivalent pay.
‘‘(4) Dependents of members and former members
described in paragraphs (1), (2), and (3).’’.
(b) LIMITATION ON ASSISTANCE.—Subsection (c) of
such section is amended—
(1) by striking out ‘‘armed forces’’ and inserting
in lieu thereof ‘‘uniformed services described in sub-
section (a)’’; and
(2) by inserting ‘‘such’’ after ‘‘dependent of’’.
157
(c) CLARIFYING AMENDMENTS.—Subsection (a) of such
section is further amended by striking out ‘‘under his juris-
diction’’ in paragraphs (1) and (2).
(d) STYLISTIC AMENDMENTS.—Subsection (a) of such
section is further amended—
(1) in the matter preceding paragraph (1), by
striking out ‘‘to—’’ and inserting in lieu thereof ‘‘to
the following persons:’’;
(2) by capitalizing the first letter of the first
word of paragraphs (1) and (2);
(3) by striking out the semicolon at the end of
paragraph (1) and inserting in lieu thereof a period;
and
(4) by striking out ‘‘; and’’ at the end of para-
graph (2) and inserting in lieu thereof a period.
SEC. 564. EXCEPTED APPOINTMENT OF CERTAIN JUDICIAL
NON-ATTORNEY 
STAFF 
IN 
THE 
UNITED
STATES COURT OF APPEALS FOR THE ARMED
FORCES.
Section 943(c) of title 10, United States Code, is
amended—
(1) in the heading for the subsection, by insert-
ing ‘‘AND CERTAIN OTHER’’ after ‘‘ATTORNEY’’; and
158
(2) in paragraph (1), by inserting ‘‘and non-at-
torney positions on the personal staff of a judge’’ after
‘‘Court of Appeals for the Armed Forces’’.
SEC. 565. REPLACEMENT OF CERTAIN AMERICAN THEATER
CAMPAIGN RIBBONS.
(a) REPLACEMENT RIBBONS.—The Secretary of the
Army, pursuant to section 3751 of title 10, United States
Code, may replace any World War II decoration known as
the American Theater Campaign Ribbon that was awarded
to a person listed in the order described in subsection (b).
(b) RIBBONS PROPERLY AWARDED.—Any person list-
ed in the document titled ‘‘General Order Number 1’’, issued
by the Third Auxiliary Surgical Group, APO 647, United
States Army, dated February 1, 1943, shall be considered
to have been properly awarded the American Theater Cam-
paign Ribbon for service during World War II.
SEC. 566. RESTORATION OF REGULATIONS PROHIBITING
SERVICE OF HOMOSEXUALS IN THE ARMED
FORCES.
(a) TERMINATION OF EXISTING ADMINISTRATIVE POL-
ICY.—Effective on the date of the enactment of this Act, the
following measures of the executive branch are rescinded
and shall cease to be effective:
(1) The memorandum of the Secretary of Defense
to the Secretaries of the military departments and the
159
Chairman of the Joint Chiefs of Staff dated July 19,
1993, that stated its subject to be: ‘‘Policy on
Homsexual Conduct in the Armed Forces’’.
(2) The four-page document entitled ‘‘Policy
Guidelines on Homsexual Conduct in the Armed
Forces’’ that was issued by the Secretary of Defense
as an attachment to the memorandum referred to in
paragraph (1).
(3) The revisions to Department of Defense direc-
tives 1332.30, 1332.14, and 1304.26 that were di-
rected to be made by the General Counsel of the De-
partment of Defense by memorandum dated February
28, 1994, to the Director of Administration and Man-
agement of the Department of Defense.
(b) REINSTATEMENT OF FORMER REGULATIONS.—Im-
mediately upon the enactment of this Act and effective as
of the date of the enactment of this Act—
(1) the Secretary of Defense shall reinstate the
regulations (including Department of Defense direc-
tives) of the Department of Defense regarding service
of homosexuals in the Armed Forces that were in ef-
fect on January 19, 1993; and
(2) the Secretary of each military department
shall reinstate the regulations of that military depart-
160
ment regarding service of homosexuals in the Armed
Forces that were in effect on January 19, 1993.
(c) REVISION PROHIBITED.—The regulations (includ-
ing Department of Defense directives) reinstated pursuant
to subsection (b), insofar as they relate to the service of ho-
mosexuals in the Armed Forces, may not be revised except
as specifically provided by a law enacted after the enact-
ment of this Act.
(d) RULE OF CONSTRUCTION.—In the case of a conflict
between the regulations required to be prescribed by sub-
section (b) and the provisions of section 654 of title 10,
United States Code, or any other provision of law, the re-
quirements of such provision of law shall be given effect.
(e) RESTORATION
OF QUESTIONING
OF NEW EN-
TRANTS INTO MILITARY SERVICE.—(1) Not later than 90
days after the date of the enactment of this Act, the Sec-
retary of Defense shall issue instructions for the resumption
of questioning of potential new entrants into the Armed
Forces as to homosexuality in accordance with the policy
and practices of the Department of Defense as of January
19, 1993 (as reinstated pursuant to subsection (b)).
(2) Section 571(d) of the National Defense Authoriza-
tion Act for Fiscal Year 1994 (Public Law 103–160; 107
Stat. 1673; 10 U.S.C. 654 note) is repealed.
161
SEC. 567. REENACTMENT AND MODIFICATION OF MANDA-
TORY SEPARATION FROM SERVICE FOR MEM-
BERS DIAGNOSED WITH HIV–1 VIRUS.
(a) REENACTMENT AND MODIFICATION.—(1) Chapter
59 of title 10, United States Code, is amended by inserting
after section 1176 the following:
‘‘§ 1177. Members infected with HIV–1 virus: manda-
tory discharge or retirement
‘‘(a) MANDATORY SEPARATION.—(1) A member of the
Army, Navy, Air Force, or Marine Corps who is HIV-posi-
tive and who on the date on which the medical determina-
tion is made that the member is HIV-positive has less than
15 years of creditable service shall be separated. Such sepa-
ration shall be made on a date determined by the Secretary
concerned, which shall be as soon as practicable after the
date on which the medical determination is made that the
member is HIV-positive and not later than the last day of
the second month beginning after such date.
‘‘(2) In determining the years of creditable service of
a member for purposes of paragraph (1)—
‘‘(A) in the case of a member on active duty or
full-time National Guard duty, the member’s years of
creditable service are the number of years of service
of the member as computed for the purpose of deter-
mining the member’s eligibility for retirement under
162
any provision of law (other than chapter 61 or 1223
of this title); and
‘‘(B) in the case of a member in an active status,
the member’s years of creditable service are the num-
ber of years of service creditable to the member under
section 12732 of this title.
‘‘(b) FORM OF SEPARATION.—The characterization of
the service of the member shall be determined without re-
gard to the determination that the member is HIV-positive.
‘‘(c) SEPARATION TO BE CONSIDERED INVOLUN-
TARY.—A separation under this section shall be considered
to be an involuntary separation for purposes of any other
provision of law.
‘‘(d) 
COUNSELING
ABOUT
AVAILABLE
MEDICAL
CARE.—A member to be separated under this section shall
be provided information, in writing, before such separation
of the available medical care (through the Department of
Veterans Affairs and otherwise) to treat the member’s condi-
tion. Such information shall include identification of spe-
cific medical locations near the member’s home of record
or point of discharge at which the member may seek nec-
essary medical care.
‘‘(e) HIV-POSITIVE MEMBERS.—A member shall be
considered to be HIV-positive for purposes of this section
if there is serologic evidence that the member is infected
163
with the virus known as Human Immunodeficiency Virus–
1 (HIV–1), the virus most commonly associated with the
acquired immune deficiency syndrome (AIDS) in the Unit-
ed States. Such serologic evidence shall be considered to
exist if there is a reactive result given by an enzyme-linked
immunosorbent assay (ELISA) serologic test that is con-
firmed by a reactive and diagnostic immunoelectrophoresis
test (Western blot) on two separate samples. Any such sero-
logic test must be one that is approved by the Food and
Drug Administration.’’.
(2) The table of sections at the beginning of chapter
59 of such title is amended by inserting after the item relat-
ing to section 1176 the following new item:
‘‘1177. Members infected with HIV–1 virus: mandatory discharge or retirement.’’.
(b) EFFECTIVE DATE.—Section 1177 of title 10, Unit-
ed States Code, as added by subsection (a), applies with
respect to members of the Army, Navy, Air Force, and Ma-
rine Corps determined to be HIV-positive before, on, or after
the date of the enactment of this Act. In the case of a mem-
ber of the Army, Navy, Air Force, or Marine Corps deter-
mined to be HIV-positive before such date, the deadline for
separation of the member under subsection (a) of such sec-
tion shall be determined from the date of the enactment of
this Act (rather than from the date of such determination),
except that no such member shall be separated by reason
164
of such section (without the consent of the member) before
October 1, 1996.
TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1997.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any
adjustment required by section 1009 of title 37, United
States Code, in elements of compensation of members of the
uniformed services to become effective during fiscal year
1997 shall not be made.
(b) INCREASE IN BASIC PAY AND BAS.—Effective on
January 1, 1997, the rates of basic pay and basic allowance
for subsistence of members of the uniformed services are in-
creased by 3 percent.
(c) INCREASE IN BAQ.—Effective on January 1, 1997,
the rates of basic allowance for quarters of members of the
uniformed services are increased by 4.6 percent.
SEC. 602. AVAILABILITY OF BASIC ALLOWANCE FOR QUAR-
TERS FOR CERTAIN MEMBERS WITHOUT DE-
PENDENTS WHO SERVE ON SEA DUTY.
(a) AVAILABILITY OF ALLOWANCE.—Section 403(c)(2)
of title 37, United States Code, is amended—
165
(1) by striking out ‘‘A member’’ in the first sen-
tence and inserting in lieu thereof ‘‘(A) Except as
provided in subparagraph (B) or (C), a member’’;
(2) by striking out the second sentence; and
(3) by adding at the end the following new sub-
paragraphs:
‘‘(B) Under regulations prescribed by the Secretary
concerned, the Secretary may authorize the payment of a
basic allowance for quarters to a member of a uniformed
service under the jurisdiction of the Secretary when the
member is without dependents, is serving in pay grade E–
5, and is assigned to sea duty. In prescribing regulations
under this subparagraph, the Secretary concerned shall con-
sider the availability of quarters for members serving in
pay grade E–5.
‘‘(C) Notwithstanding section 421 of this title, two
members of the uniformed services in a pay grade below
pay grade E–5 who are married to each other, have no other
dependents, and are simultaneously assigned to sea duty
are entitled to a single basic allowance for quarters during
the period of such simultaneous sea duty. The amount of
the allowance shall be based on the without dependents rate
for the pay grade of the senior member.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on July 1, 1997.
166
SEC. 603. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT
OF VARIABLE HOUSING ALLOWANCE FOR
HIGH HOUSING COST AREAS.
(a) MINIMUM MONTHLY AMOUNT OF ALLOWANCE.—
Subsection (c) of section 403a of title 37, United States
Code, is amended by striking out paragraph (1) and insert-
ing in lieu thereof the following new paragraph:
‘‘(1) The monthly amount of a variable housing allow-
ance under this section for a member of a uniformed service
with respect to an area is equal to the greater of the follow-
ing amounts:
‘‘(A) An amount equal to the difference be-
tween—
‘‘(i) the median monthly cost of housing in
that area for members of the uniformed services
serving in the same pay grade and with the
same dependency status as that member; and
‘‘(ii) 80 percent of the median monthly cost
of housing in the United States for members of
the uniformed services serving in the same pay
grade and with the same dependency status as
that member.
‘‘(B) An amount equal to the difference be-
tween—
‘‘(i) the adequate housing allowance floor
determined by the Secretary of Defense for all
167
members of the uniformed services in that area
entitled to a variable housing allowance under
this section; and
‘‘(ii) the monthly basic allowance for quar-
ters for members of the uniformed services serv-
ing in the same pay grade and with the same de-
pendency status as that member.’’.
(b) ADEQUATE HOUSING ALLOWANCE FLOOR.—Such
subsection is further amended by adding at the end the fol-
lowing new paragraph:
‘‘(7)(A) For purposes of paragraph (1)(B)(i), the Sec-
retary of Defense shall establish an adequate housing allow-
ance floor for members of the uniformed services in an area
as a selected percentage, not to exceed 85 percent, of the
cost of adequate housing in that area based on an index
of housing costs selected by the Secretary of Defense from
among the following:
‘‘(i) The fair market rentals established annually
by the Secretary of Housing and Urban Development
under section 8(c)(1) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(c)(1)).
‘‘(ii) An index developed in the private sector
that the Secretary of Defense determines is com-
parable to the fair market rentals referred to in clause
168
(i) and is appropriate for use to determine the ade-
quate housing allowance floor.
‘‘(B) The Secretary of Defense shall carry out this
paragraph in consultation with the Secretary of Transpor-
tation, the Secretary of Commerce, and the Secretary of
Health and Human Services.’’.
(c) EFFECT ON TOTAL AMOUNT AVAILABLE FOR AL-
LOWANCE.—Subsection (d)(3) of such section is amended in
the second sentence by striking out ‘‘the second sentence of
subsection (c)(3)’’ and inserting in lieu thereof ‘‘paragraph
(1)(B) of subsection (c) and the second sentence of para-
graph (3) of that subsection’’.
(d) CONFORMING AMENDMENTS.—Subsection (c) of
such section is further amended—
(1) in paragraph (3), by striking out ‘‘this sub-
section’’ in the first sentence and inserting lieu thereof
‘‘paragraph (1)(A) or the minimum amount of a
variable housing allowance under paragraph (1)(B)’’;
and
(2) in paragraph (5), by inserting ‘‘or minimum
amount of a variable housing allowance’’ after ‘‘costs
of housing’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 1997, except that the
Secretary of Defense may delay implementation of the re-
169
quirements imposed by the amendments to such later date
as the Secretary considers appropriate upon publication of
notice to that effect in the Federal Register.
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE
FORCES.
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1997’’ and inserting in lieu
thereof ‘‘September 30, 1998’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1997’’ and inserting in lieu
thereof ‘‘September 30, 1998’’.
(c) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1997’’ and inserting in lieu
thereof ‘‘September 30, 1998’’.
(d) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1997’’ and
inserting in lieu thereof ‘‘September 30, 1998’’.
(e) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(i) of title 37, United States Code, is amended by strik-
170
ing out ‘‘September 30, 1997’’ and inserting in lieu thereof
‘‘September 30, 1998’’.
SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL
PAY FOR NURSE OFFICER CANDIDATES, REG-
ISTERED 
NURSES, 
AND 
NURSE 
ANES-
THETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code,
is amended by striking out ‘‘September 30, 1997’’ and in-
serting in lieu thereof ‘‘September 30, 1998’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1997’’ and insert-
ing in lieu thereof ‘‘September 30, 1998’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1997’’ and
inserting in lieu thereof ‘‘September 30, 1998’’.
SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAY-
MENT OF OTHER BONUSES AND SPECIAL
PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Section
301b(a) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1997’’ and inserting in lieu thereof
‘‘September 30, 1998,’’.
171
(b) SPECIAL PAY FOR HEALTH CARE PROFESSIONALS
WHO SERVE IN THE SELECTED RESERVE IN CRITICALLY
SHORT WARTIME SPECIALTIES.—Section 302g(f) of title
37, United States Code, is amended by striking out ‘‘Sep-
tember 30, 1997’’ and inserting in lieu thereof ‘‘September
30, 1998’’.
(c) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1997’’ and inserting in lieu
thereof ‘‘September 30, 1998’’.
(d) ENLISTMENT BONUSES FOR CRITICAL SKILLS.—
Sections 308a(c) and 308f(c) of title 37, United States Code,
are each amended by striking out ‘‘September 30, 1997’’
and inserting in lieu thereof ‘‘September 30, 1998’’.
(e) SPECIAL PAY FOR ENLISTED MEMBERS OF THE
SELECTED RESERVE ASSIGNED TO CERTAIN HIGH PRIOR-
ITY UNITS.—Section 308d(c) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1997’’ and
inserting in lieu thereof ‘‘September 30, 1998’’.
(f) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFICERS
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e)
of title 37, United States Code, is amended by striking out
‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 1998’’.
172
(g) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of title 37, United States Code, is amended by strik-
ing out ‘‘September 30, 1997’’ and inserting in lieu thereof
‘‘September 30, 1998’’.
(h) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of title 37, United States Code, is amended
by striking out ‘‘October 1, 1997’’ and inserting in lieu
thereof ‘‘October 1, 1998’’.
(i) REPAYMENT OF EDUCATION LOANS FOR CERTAIN
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED
RESERVE.—Section 16302(d) of title 10, United States
Code, is amended by striking out ‘‘October 1, 1997’’ and
inserting in lieu thereof ‘‘October 1, 1998’’.
SEC. 614. SPECIAL INCENTIVES TO RECRUIT AND RETAIN
DENTAL OFFICERS.
(a) VARIABLE, ADDITIONAL, AND BOARD CERTIFIED
SPECIAL PAYS FOR ACTIVE DUTY DENTAL OFFICERS.—
Section 302b(a) of title 37, United States Code is amend-
ed—
(1) in paragraph (2)—
(A) in subparagraph (A), by striking out
‘‘$1,200’’ and inserting in lieu thereof ‘‘$3,000’’;
(B) in subparagraph (B), by striking out
‘‘$2,000’’ and inserting in lieu thereof ‘‘$7,000’’;
and
173
(C) in subparagraph (C), by striking out
‘‘$4,000’’ and inserting in lieu thereof ‘‘$7,000’’;
(2) in paragraph (4), by striking out subpara-
graphs (A), (B), and (C) and inserting in lieu thereof
the following:
‘‘(A) $4,000 per year, if the officer has less than
three years of creditable service.
‘‘(B) $6,000 per year, if the officer has at least
three but less than 14 years of creditable service.
‘‘(C) $8,000 per year, if the officer has at least
14 but less than 18 years of creditable service.
‘‘(D) $10,000 per year, if the officer has at least
18 or more years of creditable service.’’; and
(3) in paragraph (5), by striking out subpara-
graphs (A), (B), and (C) and inserting in lieu thereof
the following:
‘‘(A) $2,500 per year, if the officer has less than
10 years of creditable service.
‘‘(B) $3,500 per year, if the officer has at least
10 but less than 12 years of creditable service.
‘‘(C) $4,000 per year, if the officer has at least
12 but less than 14 years of creditable service.
‘‘(D) $5,000 per year, if the officer has at least
14 but less than 18 years of creditable service.
174
‘‘(E) $6,000 per year, if the officer has 18 or
more years of creditable service.’’.
(b) RESERVE DENTAL OFFICERS SPECIAL PAY.—Sec-
tion 302b of title 37, United States Code, is amended by
adding at the end the following new subsection:
‘‘(h) RESERVE DENTAL OFFICERS SPECIAL PAY.—(1)
A reserve dental officer described in paragraph (2) is enti-
tled to special pay at the rate of $350 a month for each
month of active duty, including active duty in the form of
annual training, active duty for training, and active duty
for special work.
‘‘(2) A reserve dental officer referred to in paragraph
(1) is a reserve officer who—
‘‘(A) is an officer of the Dental Corps of the
Army or the Navy or an officer of the Air Force des-
ignated as a dental officer; and
‘‘(B) is on active duty under a call or order to
active duty for a period of less than one year.’’.
(c) ACCESSION BONUS FOR DENTAL SCHOOL GRAD-
UATES WHO ENTER THE ARMED FORCES.—(1) Chapter 5
of title 37, United States Code, is amended by inserting
after section 302g the following new section:
175
‘‘§ 302h. Special pay: accession bonus for dental offi-
cers
‘‘(a) ACCESSION BONUS AUTHORIZED.—(1) A person
who is a graduate of an accredited dental school and who,
during the period beginning on the date of the enactment
of this section, and ending on September 30, 2002, executes
a written agreement described in subsection (c) to accept
a commission as an officer of the armed forces and remain
on active duty for a period of not less than four years may,
upon the acceptance of the agreement by the Secretary con-
cerned, be paid an accession bonus in an amount deter-
mined by the Secretary concerned.
‘‘(2) The amount of an accession bonus under para-
graph (1) may not exceed $30,000.
‘‘(b) LIMITATION ON ELIGIBILITY FOR BONUS.—A per-
son may not be paid a bonus under subsection (a) if—
‘‘(1) the person, in exchange for an agreement to
accept an appointment as an officer, received finan-
cial assistance from the Department of Defense to
pursue a course of study in dentistry; or
‘‘(2) the Secretary concerned determines that the
person is not qualified to become and remain certified
and licensed as a dentist.
‘‘(c) AGREEMENT.—The agreement referred to in sub-
section (a) shall provide that, consistent with the needs of
the armed service concerned, the person executing the agree-
176
ment will be assigned to duty, for the period of obligated
service covered by the agreement, as an officer of the Dental
Corps of the Army or the Navy or an officer of the Air
Force designated as a dental officer.
‘‘(d) REPAYMENT.—(1) An officer who receives a pay-
ment under subsection (a) and who fails to become and re-
main certified or licensed as a dentist during the period
for which the payment is made shall refund to the United
States an amount equal to the full amount of such payment.
‘‘(2) An officer who voluntarily terminates service on
active duty before the end of the period agreed to be served
under subsection (a) shall refund to the United States an
amount that bears the same ratio to the amount paid to
the officer as the unserved part of such period bears to the
total period agreed to be served.
‘‘(3) An obligation to reimburse the United States im-
posed under paragraph (1) or (2) is for all purposes a debt
owed to the United States.
‘‘(4) A discharge in bankruptcy under title 11 that is
entered less than five years after the termination of an
agreement under this section does not discharge the person
signing such agreement from a debt arising under such
agreement or this subsection. This paragraph applies to any
case commenced under title 11 after the date of the enact-
ment of this section.’’.
177
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
302g the following new item:
‘‘302h. Special pay: accession bonus for dental officers.’’.
(3) Section 303a of title 37, United States Code, is
amended by striking out ‘‘302g’’ each place it appears and
inserting in lieu thereof ‘‘302h’’.
(d) REPORT ON ADDITIONAL ACTIVITIES TO INCREASE
RECRUITMENT
OF DENTISTS.—Not later than April 1,
1997, the Secretary of Defense shall submit to Congress a
report describing the feasibility of increasing the number
of persons enrolled in the Armed Forces Health Professions
Scholarship and Financial Assistance program who are
pursuing a course of study in dentistry in anticipation of
service as an officer of the Dental Corps of the Army or
the Navy or an officer of the Air Force designated as a den-
tal officer.
(e) STYLISTIC AMENDMENTS.—Section 302b of title 37,
United States Code, is amended—
(1) in subsection (a), by inserting ‘‘VARIABLE,
ADDITIONAL, AND BOARD CERTIFICATION SPECIAL
PAY.—’’ after ‘‘(a)’’;
(2) in subsection (b), by inserting ‘‘ACTIVE-DUTY
AGREEMENT.—’’ after ‘‘(b)’’;
(3) in subsection (c), by inserting ‘‘REGULA-
TIONS.—’’ after ‘‘(c)’’;
178
(4) in subsection (d), by inserting ‘‘FREQUENCY
OF PAYMENTS.—’’ after ‘‘(d)’’;
(5) in subsection (e), by inserting ‘‘REFUND FOR
PERIOD OF UNSERVED OBLIGATED SERVICE.—’’ after
‘‘(e)’’;
(6) in subsection (f), by inserting ‘‘EFFECT OF
DISCHARGE IN BANKRUPTCY.—’’ after ‘‘(f)’’; and
(7) in subsection (g), by inserting ‘‘DETERMINA-
TION OF CREDITABLE SERVICE.—’’ after ‘‘(g)’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 621. TEMPORARY LODGING EXPENSES OF MEMBER IN
CONNECTION 
WITH 
FIRST 
PERMANENT
CHANGE OF STATION.
(a) PAYMENT OR REIMBURSEMENT AUTHORIZED.—
Section 404a(a) of title 37, United States Code, is amend-
ed—
(1) by striking out ‘‘or’’ at the end of paragraph
(1);
(2) in paragraph (2), by inserting ‘‘or’’ after
‘‘Alaska;’’; and
(3) by inserting after paragraph (2) the follow-
ing new paragraph:
‘‘(3) from home of record or initial technical
school to first duty station;’’.
179
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on January 1, 1997.
SEC. 622. ALLOWANCE IN CONNECTION WITH SHIPPING
MOTOR VEHICLE AT GOVERNMENT EXPENSE.
(a) ALLOWANCE AUTHORIZED.—Section 406(b)(1)(B)
of title 37, United States Code, is amended by adding at
the end the following: ‘‘If clause (i)(I) applies to the trans-
portation by the member of a motor vehicle from the old
duty station, the monetary allowance under this subpara-
graph shall also cover return travel to the old duty station
by the member or other person transporting the vehicle. In
the case of transportation described in clause (ii), the mone-
tary allowance shall also cover travel from the new duty
station to the port of debarkation to pick up the vehicle.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 1997.
SEC. 623. DISLOCATION ALLOWANCE AT A RATE EQUAL TO
TWO AND ONE-HALF MONTHS BASIC ALLOW-
ANCE FOR QUARTERS.
(a) Section 407(a) of title 37, United States Code, is
amended in the matter preceding the paragraphs by strik-
ing out ‘‘two months’’ and inserting in lieu thereof ‘‘two
and one-half months’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 1997.
180
SEC. 624. ALLOWANCE FOR TRAVEL PERFORMED IN CON-
NECTION WITH LEAVE BETWEEN CONSECU-
TIVE OVERSEAS TOURS.
(a) ADDITIONAL DEFERRAL.—Section 411b(a)(2) of
title 37, United States Code, is amended by adding at the
end the following: ‘‘If the member is unable to undertake
the travel before the end of such one-year period as a result
of the participation of the member in a critical operational
mission, as determined by the Secretary concerned, the
member may defer the travel, under the regulations referred
to in paragraph (1), for a period not to exceed one year
after the date on which the member’s participation in the
critical operational mission ends.’’.
(b) APPLICATION OF AMENDMENT.—The amendment
made by subsection (a) shall apply to members of the uni-
formed services participating, on or after November 1, 1995,
in critical operational missions designated by the Secretary
of Defense.
Subtitle D—Retired Pay, Survivior
Benefits, and Related Matters
SEC. 631. INCREASE IN ANNUAL LIMIT ON DAYS OF INAC-
TIVE DUTY TRAINING CREDITABLE TOWARDS
RESERVE RETIREMENT.
(a) INCREASE IN LIMIT.—Section 12733(3) is amend-
ed by inserting before the period at the end the following:
‘‘before the year in which the date of the enactment of the
181
National Defense Authorization Act for Fiscal Year 1997
occurs and not more than 75 days in any subsequent year’’.
(b) TRACKING SYSTEM FOR AWARD OF RETIREMENT
POINTS.—To better enable the Secretary of Defense and
Congress to assess the cost and the effect on readiness of
the amendment made by subsection (a) and of other poten-
tial changes to the Reserve retirement system under chapter
1223 of title 10, United States Code, the Secretary of De-
fense shall require the Secretary of each military depart-
ment to implement a system to monitor the award of retire-
ment points for purposes of that chapter by categories in
accordance with the recommendation set forth in the August
1988 report of the Sixth Quadrennial Review of Military
Compensation.
(c) RECOMMENDATIONS TO CONGRESS.—The Secretary
shall submit to Congress, not later than one year after the
date of the enactment of this Act, the recommendations of
the Secretary with regard to the adoption of the following
Reserve retirement initiatives recommended in the August
1988 report of the Sixth Quadrennial Review of Military
Compensation:
(1) Elimination of membership points under
subparagraph (C) of section 12732(a)(2) of title 10,
United States Code, in conjunction with a decrease
182
from 50 to 35 in the number of points required for
a satisfactory year under that section.
(2) Limitation to 60 in any year on the number
of points that may be credited under subparagraph
(B) of section 12732(a)(2) of such title at two points
per day.
(3) Limitation to 360 in any year on the total
number of retirement points countable for purposes of
section 12733 of such title.
SEC. 632. AUTHORITY FOR RETIREMENT IN GRADE IN
WHICH A MEMBER HAS BEEN SELECTED FOR
PROMOTION WHEN A PHYSICAL DISABILITY
INTERVENES.
Section 1372 of title 10, United States Code, is amend-
ed by striking out ‘‘his physical examination for pro-
motion’’ in paragraphs (3) and (4) and inserting in lieu
thereof ‘‘a physical examination’’.
SEC. 633. ELIGIBILITY FOR RESERVE DISABILITY RETIRE-
MENT FOR RESERVES INJURED WHILE AWAY
FROM HOME OVERNIGHT FOR INACTIVE-DUTY
TRAINING.
Section 1204(2) of title 10, United States Code, is
amended by inserting before the semicolon at the end the
following: ‘‘or is incurred in line of duty while remaining
overnight, between successive periods of inactive-duty train-
183
ing, at or in the vicinity of the site of the inactive-duty
training, if the site is outside reasonable commuting dis-
tance from the member’s residence’’.
SEC. 634. RETIREMENT OF RESERVE ENLISTED MEMBERS
WHO QUALIFY FOR ACTIVE DUTY RETIRE-
MENT AFTER ADMINISTRATIVE REDUCTION
IN ENLISTED GRADE.
(a) ARMY.—(1) Chapter 369 of title 10, United States
Code, is amended by inserting after section 3962 the follow-
ing new section:
‘‘§ 3963. Highest grade held satisfactorily: Reserve en-
listed members reduced in grade not as a
result of the member’s misconduct
‘‘(a) A Reserve enlisted member of the Army described
in subsection (b) who is retired under section 3914 of this
title shall be retired in the highest enlisted grade in which
the member served on active duty satisfactorily (or, in the
case of a member of the National Guard, in which the mem-
ber served on full-time duty satisfactorily), as determined
by the Secretary of the Army.
‘‘(b) This section applies to a Reserve enlisted member
who—
‘‘(1) at the time of retirement is serving on ac-
tive duty (or, in the case of a member of the National
Guard, on full-time National Guard duty) in a grade
184
lower than the highest enlisted grade held by the
member while on active duty (or full-time National
Guard duty); and
‘‘(2) was previously administratively reduced in
grade not as a result of the member’s own misconduct,
as determined by the Secretary of the Army.
‘‘(c) This section applies with respect to Reserve en-
listed members who are retired under section 3914 of this
title after September 30, 1996.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
3962 the following new item:
‘‘3963. Highest grade held satisfactorily: Reserve enlisted members reduced in
grade not as a result of the member’s misconduct.’’.
(b) NAVY AND MARINE CORPS.—(1) Chapter 571 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 6336. Highest grade held satisfactorily: Reserve en-
listed members reduced in grade not as a
result of the member’s misconduct
‘‘(a) A member of the Naval Reserve or Marine Corps
Reserve described in subsection (b) who is transferred to the
Fleet Reserve or the Fleet Marine Corps Reserve under sec-
tion 6330 of this title shall be transferred in the highest
enlisted grade in which the member served on active duty
satisfactorily, as determined by the Secretary of the Navy.
185
‘‘(b) This section applies to a Reserve enlisted member
who—
‘‘(1) at the time of transfer to the Fleet Reserve
or Fleet Marine Corps Reserve is serving on active
duty in a grade lower than the highest enlisted grade
held by the member while on active duty; and
‘‘(2) was previously administratively reduced in
grade not as a result of the member’s own misconduct,
as determined by the Secretary of the Navy.
‘‘(c) This section applies with respect to enlisted mem-
bers of the Naval Reserve and Marine Corps Reserve who
are transferred to the Fleet Reserve or the Fleet Marine
Corps Reserve after September 30, 1996.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘6336. Highest grade held satisfactorily: Reserve enlisted members reduced in
grade not as a result of the member’s misconduct.’’.
(c) AIR FORCE.—(1) Chapter 869 of title 10, United
States Code, is amended by inserting after section 8962 the
following new section:
‘‘§ 8963. Highest grade held satisfactorily: Reserve en-
listed members reduced in grade not as a
result of the member’s misconduct
‘‘(a) A Reserve enlisted member of the Air Force de-
scribed in subsection (b) who is retired under section 8914
of this title shall be retired in the highest enlisted grade
186
in which the member served on active duty satisfactorily
(or, in the case of a member of the National Guard, in
which the member served on full-time duty satisfactorily),
as determined by the Secretary of the Air Force.
‘‘(b) This section applies to a Reserve enlisted member
who—
‘‘(1) at the time of retirement is serving on ac-
tive duty (or, in the case of a member of the National
Guard, on full-time National Guard duty) in a grade
lower than the highest enlisted grade held by the
member while on active duty (or full-time National
Guard duty); and
‘‘(2) was previously administratively reduced in
grade not as a result of the member’s own misconduct,
as determined by the Secretary of the Air Force.
‘‘(c) This section applies with respect to Reserve en-
listed members who are retired under section 8914 of this
title after September 30, 1996.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
8962 the following new item:
‘‘8963. Highest grade held satisfactorily: Reserve enlisted members reduced in
grade not as a result of the member’s misconduct.’’.
(d) COMPUTATION OF RETIRED AND RETAINER PAY
BASED UPON RETIRED GRADE.—(1) Section 3991 of such
187
title is amended by adding at the end the following new
subsection:
‘‘(c) SPECIAL RULE
FOR RETIRED RESERVE EN-
LISTED MEMBERS COVERED BY SECTION 3963.—In the
case of a Reserve enlisted member retired under section 3914
of this title whose retired grade is determined under section
3963 of this title and who first became a member of a uni-
formed service before October 1, 1980, the retired pay base
of the member (notwithstanding section 1406(a)(1) of this
title) is the amount of the monthly basic pay of the mem-
ber’s retired grade (determined based upon the rates of basic
pay applicable on the date of the member’s retirement), and
that amount shall be used for the purposes of subsection
(a)(1)(A) rather than the amount computed under section
1406(c) of this title.’’.
(2) Section 6333 of such title is amended by adding
at the end the following new subsection:
‘‘(c) In the case of a Reserve enlisted member whose
grade upon transfer to the Fleet Reserve or Fleet Marine
Corps Reserve is determined under section 6336 of this title
and who first became a member of a uniformed service be-
fore October 1, 1980, the retainer pay base of the member
(notwithstanding section 1406(a)(1) of this title) is the
amount of the monthly basic pay of the grade in which the
member is so transferred (determined based upon the rates
188
of basic pay applicable on the date of the member’s trans-
fer), and that amount shall be used for the purposes of the
table in subsection (a) rather than the amount computed
under section 1406(d) of this title.’’.
(3) Section 8991 of such title is amended by adding
at the end the following new subsection:
‘‘(c) SPECIAL RULE
FOR RETIRED RESERVE EN-
LISTED MEMBERS COVERED BY SECTION 8963.—In the
case of a Reserve enlisted member retired under section 8914
of this title whose retired grade is determined under section
8963 of this title and who first became a member of a uni-
formed service before October 1, 1980, the retired pay base
of the member (notwithstanding section 1406(a)(1) of this
title) is the amount of the monthly basic pay of the mem-
ber’s retired grade (determined based upon the rates of basic
pay applicable on the date of the member’s retirement), and
that amount shall be used for the purposes of subsection
(a)(1)(A) rather than the amount computed under section
1406(e) of this title.’’.
SEC. 635. CLARIFICATION OF INITIAL COMPUTATION OF RE-
TIREE COLAS AFTER RETIREMENT.
(a) IN GENERAL.—Section 1401a of title 10, United
States Code, is amended by striking out subsections (c) and
(d) and inserting in lieu thereof the following new sub-
sections:
189
‘‘(c) FIRST COLA ADJUSTMENT FOR MEMBERS WITH
RETIRED PAY COMPUTED USING FINAL BASIC PAY.—
‘‘(1) FIRST ADJUSTMENT WITH INTERVENING IN-
CREASE IN BASIC PAY.—Notwithstanding subsection
(b), if a person described in paragraph (3) becomes
entitled to retired pay based on rates of monthly basic
pay that became effective after the last day of the cal-
endar quarter of the base index, the retired pay of the
member or former member shall be increased on the
effective date of the next adjustment of retired pay
under subsection (b) only by the percent (adjusted to
the nearest one-tenth of 1 percent) by which—
‘‘(A) the price index for the base quarter of
that year, exceeds
‘‘(B) the price index for the calendar quar-
ter immediately before the calendar quarter in
which the rates of monthly basic pay on which
the retired pay is based became effective.
‘‘(2) FIRST ADJUSTMENT WITH NO INTERVENING
INCREASE IN BASIC PAY.—If a person described in
paragraph (3) becomes entitled to retired pay on or
after the effective date of an adjustment in retired
pay under subsection (b) but before the effective date
of the next increase in the rates of monthly basic pay,
the retired pay of the member or former member shall
190
be increased, effective on the date the member becomes
entitled to that pay, by the percent (adjusted to the
nearest one-tenth of 1 percent) by which—
‘‘(A) the base index, exceeds
‘‘(B) the price index for the calendar quar-
ter immediately before the calendar quarter in
which the rates of monthly basic pay on which
the retired pay is based became effective.
‘‘(3) MEMBERS COVERED.—Paragraphs (1) and
(2) apply to a member or former member of an armed
force who first became a member of a uniformed serv-
ice before August 1, 1986, and whose retired pay base
is determined under section 1406 of this title.
‘‘(d) FIRST COLA ADJUSTMENT FOR MEMBERS WITH
RETIRED PAY COMPUTED USING HIGH-THREE.—Notwith-
standing subsection (b), the retired pay of a member or
former member of an armed force who first became a mem-
ber of a uniformed service before August 1, 1986, and whose
retired pay base is determined under section 1407 of this
title shall be increased on the effective date of the first ad-
justment of retired pay under subsection (b) after the mem-
ber or former member becomes entitled to retired pay by
the percent (adjusted to the nearest one-tenth of 1 percent)
equal to the difference between the percent by which—
191
‘‘(1) the price index for the base quarter of that
year, exceeds
‘‘(2) the price index for the calendar quarter im-
mediately before the calendar quarter during which
the member became entitled to retired pay.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply only to adjustments of retired and
retainer pay effective after the date of the enactment of this
Act.
SEC. 636. TECHNICAL CORRECTION TO PRIOR AUTHORITY
FOR PAYMENT OF BACK PAY TO CERTAIN
PERSONS.
Section 634 of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 366)
is amended—
(1) in subsection (b)(1), by striking out ‘‘Island
of Bataan’’ and inserting in lieu thereof ‘‘peninsula
of Bataan or island of Corregidor’’; and
(2) in subsection (c), by inserting after the first
sentence the following: ‘‘For the purposes of this sub-
section, the Secretary of War shall be deemed to have
determined that conditions in the Philippines during
the specified period justified payment under applica-
ble regulations of quarters and subsistence allowances
192
at the maximum special rate for duty where emer-
gency conditions existed.’’.
SEC. 637. AMENDMENTS TO THE UNIFORMED SERVICES
FORMER SPOUSES’ PROTECTION ACT.
(a) MANNER OF SERVICE OF PROCESS.—Subsection
(b)(1)(A) of section 1408 of title 10, United States Code,
is amended by striking out ‘‘certified or registered mail, re-
turn receipt requested’’ and inserting in lieu thereof ‘‘fac-
simile or electronic transmission or by mail’’.
(b) SUBSEQUENT COURT ORDER FROM ANOTHER
STATE.—Subsection (d) of such section is amended by add-
ing at the end the following new paragraph:
‘‘(6)(A) The Secretary concerned may not accept serv-
ice of a court order that is an out-of State modification,
or comply with the provisions of such a court order, unless
the court issuing that order has jurisdiction in the manner
specified in subsection (c)(4) over both the member and the
spouse or former spouse involved.
‘‘(B) A court order shall be considered to be an out-
of-State modification for purposes of this paragraph if the
order—
‘‘(i) modifies a previous court order under this
section upon which payments under this subsection
are based; and
193
‘‘(ii) is issued by a court of a State other than
the State of the court that issued the previous court
order.’’.
SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED
MINIMUM INCOME WIDOWS.
(a) PAYMENTS TO BE MADE BY SECRETARY OF VET-
ERANS AFFAIRS.—Section 4 of Public Law 92–425 (10
U.S.C. 1448 note) is amended by adding at the end the fol-
lowing new subsection:
‘‘(e)(1) Payment of annuities under this section shall
be made by the Secretary of Veterans Affairs. If appropriate
for administrative convenience (or otherwise determined
appropriate by the Secretary of Veterans Affairs), that Sec-
retary may combine a payment to any person for any
month under this section with any other payment for that
month under laws administered by the Secretary so as to
provide that person with a single payment for that month.
‘‘(2) The Secretary concerned shall annually transfer
to the Secretary of Veterans Affairs such amounts as may
be necessary for payments by the Secretary of Veterans Af-
fairs under this section and for costs of the Secretary of
Veterans Affairs in administering this section. Such trans-
fers shall be made from amounts that would otherwise be
used for payment of annuities by the Secretary concerned
under this section. The authority to make such a transfer
194
is in addition to any other authority of the Secretary con-
cerned to transfer funds for a purpose other than the pur-
pose for which the funds were originally made available.
In the case of a transfer by the Secretary of a military de-
partment, the provisions of section 2215 of this title do not
apply.
‘‘(3) The Secretary concerned shall promptly notify the
Secretary of Veterans Affairs of any change in beneficiaries
under this section.’’.
(b) EFFECTIVE DATE.—Subsection (e) of section 4 of
Public Law 92–425, as added by subsection (a), shall apply
with respect to payments of benefits for any month after
June 1997.
SEC. 639. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR
BENEFIT PLAN STATUTE.
Subchapter II of chapter 73 of title 10, United States
Code, is amended to read as follows:
‘‘SUBCHAPTER II—SURVIVOR BENEFIT PLAN
‘‘Sec.
‘‘1447. Definitions.
‘‘1448. Application of Plan.
‘‘1449. Mental incompetency of member.
‘‘1450. Payment of annuity: beneficiaries.
‘‘1451. Amount of annuity.
‘‘1452. Reduction in retired pay.
‘‘1453. Recovery of amounts erroneously paid.
‘‘1454. Correction of administrative errors.
‘‘1455. Regulations.
‘‘§ 1447. Definitions
‘‘In this subchapter:
198
‘‘(A) was married to the person for at least
one year immediately before the person’s death;
or
‘‘(B) is the mother of issue by that mar-
riage.
‘‘(8) WIDOWER.—The term ‘widower’ means the
surviving husband of a person who, if not married to
the person at the time she became eligible for retired
pay—
‘‘(A) was married to her for at least one
year immediately before her death; or
‘‘(B) is the father of issue by that marriage.
‘‘(9) SURVIVING SPOUSE.—The term ‘surviving
spouse’ means a widow or widower.
‘‘(10) FORMER
SPOUSE.—The term ‘former
spouse’ means the surviving former husband or wife
of a person who is eligible to participate in the Plan.
‘‘(11) DEPENDENT CHILD.—
‘‘(A) IN
GENERAL.—The term ‘dependent
child’ means a person who—
‘‘(i) is unmarried;
‘‘(ii) is (I) under 18 years of age, (II)
at least 18, but under 22, years of age and
pursuing a full-time course of study or
training in a high school, trade school, tech-
199
nical or vocational institute, junior college,
college, university, or comparable recognized
educational institution, or (III) incapable
of self support because of a mental or phys-
ical incapacity existing before the person’s
eighteenth birthday or incurred on or after
that birthday, but before the person’s twen-
ty-second birthday, while pursuing such a
full-time course of study or training; and
‘‘(iii) is the child of a person to whom
the Plan applies, including (I) an adopted
child, and (II) a stepchild, foster child, or
recognized natural child who lived with that
person in a regular parent-child relation-
ship.
‘‘(B) SPECIAL RULES FOR COLLEGE STU-
DENTS.—For the purpose of subparagraph (A), a
child whose twenty-second birthday occurs before
July 1 or after August 31 of a calendar year,
and while regularly pursuing such a course of
study or training, is considered to have become
22 years of age on the first day of July after that
birthday. A child who is a student is considered
not to have ceased to be a student during an in-
terim between school years if the interim is not
200
more than 150 days and if the child shows to the
satisfaction of the Secretary of Defense that the
child has a bona fide intention of continuing to
pursue a course of study or training in the same
or a different school during the school semester
(or other period into which the school year is di-
vided) immediately after the interim.
‘‘(C) FOSTER CHILDREN.—A foster child, to
qualify under this paragraph as the dependent
child of a person to whom the Plan applies,
must, at the time of the death of that person, also
reside with, and receive over one-half of his sup-
port from, that person, and not be cared for
under a social agency contract. The temporary
absence of a foster child from the residence of
that person, while a student as described in this
paragraph, shall not be considered to affect the
residence of such a foster child.
‘‘(12) COURT.—The term ‘court’ has the meaning
given that term by section 1408(a)(1) of this title.
‘‘(13) COURT ORDER.—
‘‘(A) IN GENERAL.—The term ‘court order’
means a court’s final decree of divorce, dissolu-
tion, or annulment or a court ordered, ratified,
or approved property settlement incident to such
201
a decree (including a final decree modifying the
terms of a previously issued decree of divorce,
dissolution, annulment, or legal separation, or of
a court ordered, ratified, or approved property
settlement agreement incident to such previously
issued decree).
‘‘(B) FINAL DECREE.—The term ‘final de-
cree’ means a decree from which no appeal may
be taken or from which no appeal has been taken
within the time allowed for the taking of such
appeals under the laws applicable to such ap-
peals, or a decree from which timely appeal has
been taken and such appeal has been finally de-
cided under the laws applicable to such appeals.
‘‘(C) REGULAR
ON
ITS
FACE.—The term
‘regular on its face’, when used in connection
with a court order, means a court order that
meets the conditions prescribed in section
1408(b)(2) of this title.
‘‘§ 1448. Application of plan
‘‘(a) GENERAL RULES FOR PARTICIPATION IN THE
PLAN.—
‘‘(1) NAME OF PLAN; ELIGIBLE PARTICIPANTS.—
The program established by this subchapter shall be
202
known as the Survivor Benefit Plan. The following
persons are eligible to participate in the Plan:
‘‘(A) Persons entitled to retired pay.
‘‘(B) Persons who would be eligible for re-
serve-component retired pay but for the fact that
they are under 60 years of age.
‘‘(2) PARTICIPANTS IN THE PLAN.—The Plan ap-
plies to the following persons, who shall be partici-
pants in the Plan:
‘‘(A) STANDARD ANNUITY PARTICIPANTS.—
A person who is eligible to participate in the
Plan under paragraph (1)(A) and who is mar-
ried or has a dependent child when he becomes
entitled to retired pay, unless he elects (with his
spouse’s concurrence, if required under para-
graph (3)) not to participate in the Plan before
the first day for which he is eligible for that pay.
‘‘(B) RESERVE-COMPONENT
ANNUITY
PAR-
TICIPANTS.—A person who (i) is eligible to par-
ticipate in the Plan under paragraph (1)(B),
(ii) is married or has a dependent child when he
is notified under section 12731(d) of this title
that he has completed the years of service re-
quired for eligibility for reserve-component re-
tired pay, and (iii) elects to participate in the
203
Plan (and makes a designation under subsection
(e)) before the end of the 90-day period beginning
on the date he receives such notification.
A person described in clauses (i) and (ii) of subpara-
graph (B) who does not elect to participate in the
Plan before the end of the 90-day period referred to
in that clause remains eligible, upon reaching 60
years of age and otherwise becoming entitled to re-
tired pay, to participate in the Plan in accordance
with eligibility under paragraph (1)(A).
‘‘(3) ELECTIONS.—
‘‘(A) SPOUSAL
CONSENT
FOR
CERTAIN
ELECTIONS RESPECTING STANDARD ANNUITY.—A
married person who is eligible to provide a
standard annuity may not without the concur-
rence of the person’s spouse elect—
‘‘(i) not to participate in the Plan;
‘‘(ii) to provide an annuity for the per-
son’s spouse at less than the maximum level;
or
‘‘(iii) to provide an annuity for a de-
pendent child but not for the person’s
spouse.
‘‘(B) SPOUSAL
CONSENT
FOR
CERTAIN
ELECTIONS
RESPECTING
RESERVE-COMPONENT
204
ANNUITY.—A married person who elects to pro-
vide a reserve-component annuity may not with-
out the concurrence of the person’s spouse elect—
‘‘(i) to provide an annuity for the per-
son’s spouse at less than the maximum level;
or
‘‘(ii) to provide an annuity for a de-
pendent child but not for the person’s
spouse.
‘‘(C) EXCEPTION WHEN SPOUSE UNAVAIL-
ABLE.—A person may make an election de-
scribed in subparagraph (A) or (B) without the
concurrence of the person’s spouse if the person
establishes to the satisfaction of the Secretary
concerned—
‘‘(i) that the spouse’s whereabouts can-
not be determined; or
‘‘(ii) that, due to exceptional cir-
cumstances, requiring the person to seek the
spouse’s consent would otherwise be inap-
propriate.
‘‘(D) CONSTRUCTION WITH FORMER SPOUSE
ELECTION
PROVISIONS.—This paragraph does
not affect any right or obligation to elect to pro-
vide an annuity for a former spouse (or for a
205
former spouse and dependent child) under sub-
section (b)(2).
‘‘(E) NOTICE TO SPOUSE OF ELECTION TO
PROVIDE FORMER SPOUSE ANNUITY.—If a mar-
ried person who is eligible to provide a standard
annuity elects to provide an annuity for a
former spouse (or for a former spouse and de-
pendent child) under subsection (b)(2), that per-
son’s spouse shall be notified of that election.
‘‘(4) IRREVOCABILITY OF ELECTIONS.—
‘‘(A) STANDARD
ANNUITY.—An election
under paragraph (2)(A) not to participate in the
Plan is irrevocable if not revoked before the date
on which the person first becomes entitled to re-
tired pay.
‘‘(B) RESERVE-COMPONENT
ANNUITY.—An
election under paragraph (2)(B) to participate
in the Plan is irrevocable if not revoked before
the end of the 90-day period referred to in that
paragraph.
‘‘(5) PARTICIPATION
BY
PERSON
MARRYING
AFTER RETIREMENT, ETC.—
‘‘(A) ELECTION TO PARTICIPATE IN PLAN.—
A person who is not married and has no depend-
ent child upon becoming eligible to participate
206
in the Plan but who later marries or acquires a
dependent child may elect to participate in the
Plan.
‘‘(B) MANNER AND TIME OF ELECTION.—
Such an election must be written, signed by the
person making the election, and received by the
Secretary concerned within one year after the
date on which that person marries or acquires
that dependent child.
‘‘(C) LIMITATION ON REVOCATION OF ELEC-
TION.—Such an election may not be revoked ex-
cept in accordance with subsection (b)(3).
‘‘(D) EFFECTIVE DATE OF ELECTION.—The
election is effective as of the first day of the first
calendar month following the month in which the
election is received by the Secretary concerned.
‘‘(E) DESIGNATION IF RCSBP ELECTION.—
In the case of a person providing a reserve-com-
ponent annuity, such an election shall include a
designation under subsection (e).
‘‘(6) ELECTION OUT OF PLAN BY PERSON WITH
SPOUSE COVERAGE WHO REMARRIES.—
‘‘(A) GENERAL RULE.—A person—
207
‘‘(i) who is a participant in the Plan
and is providing coverage under the Plan
for a spouse (or a spouse and child);
‘‘(ii) who does not have an eligible
spouse beneficiary under the Plan; and
‘‘(iii) who remarries,
may elect not to provide coverage under the Plan
for the person’s spouse.
‘‘(B) EFFECT
OF
ELECTION
ON
RETIRED
PAY.—If such an election is made, reductions in
the retired pay of that person under section 1452
of this title shall not be made.
‘‘(C) TERMS
AND
CONDITIONS
OF
ELEC-
TION.—An election under this paragraph—
‘‘(i) is irrevocable;
‘‘(ii) shall be made within one year
after the person’s remarriage; and
‘‘(iii) shall be made in such form and
manner as may be prescribed in regulations
under section 1455 of this title.
‘‘(D) NOTICE
TO
SPOUSE.—If a person
makes an election under this paragraph—
‘‘(i) not to participate in the Plan;
208
‘‘(ii) to provide an annuity for the per-
son’s spouse at less than the maximum level;
or
‘‘(iii) to provide an annuity for a de-
pendent child but not for the person’s
spouse,
the person’s spouse shall be notified of that elec-
tion.
‘‘(E) CONSTRUCTION WITH FORMER SPOUSE
ELECTION
PROVISIONS.—This paragraph does
not affect any right or obligation to elect to pro-
vide an annuity to a former spouse under sub-
section (b).
‘‘(b) INSURABLE INTEREST
AND FORMER SPOUSE
COVERAGE.—
‘‘(1) COVERAGE FOR PERSON WITH INSURABLE
INTEREST.—
‘‘(A) GENERAL RULE.—A person who is not
married and does not have a dependent child
upon becoming eligible to participate in the Plan
may elect to provide an annuity under the Plan
to a natural person with an insurable interest in
that person. In the case of a person providing a
reserve-component annuity, such an election
shall include a designation under subsection (e).
209
‘‘(B) TERMINATION
OF
COVERAGE.—An
election under subparagraph (A) for a bene-
ficiary who is not the former spouse of the person
providing the annuity may be terminated. Any
such termination shall be made by a participant
by the submission to the Secretary concerned of
a request to discontinue participation in the
Plan, and such participation in the Plan shall
be discontinued effective on the first day of the
first month following the month in which the re-
quest is received by the Secretary concerned. Ef-
fective on such date, the Secretary concerned
shall discontinue the reduction being made in
such person’s retired pay on account of partici-
pation in the Plan or, in the case of a person
who has been required to make deposits in the
Treasury on account of participation in the
Plan, such person may discontinue making such
deposits effective on such date.
‘‘(C) FORM FOR DISCONTINUATION.—A re-
quest under subparagraph (B) to discontinue
participation in the Plan shall be in such form
and shall contain such information as may be
required under regulations prescribed by the Sec-
retary of Defense.
210
‘‘(D) WITHDRAWAL OF REQUEST FOR DIS-
CONTINUATION.—The Secretary concerned shall
furnish promptly to each person who submits a
request under subparagraph (B) to discontinue
participation in the Plan a written statement of
the advantages and disadvantages of participat-
ing in the Plan and the possible disadvantages
of discontinuing participation. A person may
withdraw the request to discontinue participa-
tion if withdrawn within 30 days after having
been submitted to the Secretary concerned.
‘‘(E) 
CONSEQUENCES
OF
DISCONTINU-
ATION.—Once participation is discontinued, ben-
efits may not be paid in conjunction with the
earlier participation in the Plan and premiums
paid may not be refunded. Participation in the
Plan may not later be resumed except through a
qualified election under paragraph (5) of sub-
section (a).
‘‘(2) FORMER SPOUSE COVERAGE UPON BECOM-
ING A PARTICIPANT IN THE PLAN.—
‘‘(A) GENERAL RULE.—A person who has a
former spouse upon becoming eligible to partici-
pate in the Plan may elect to provide an annu-
ity to that former spouse.
211
‘‘(B) EFFECT
OF
FORMER
SPOUSE
ELEC-
TION ON SPOUSE OR DEPENDENT CHILD.—In the
case of a person with a spouse or a dependent
child, such an election prevents payment of an
annuity to that spouse or child (other than a
child who is a beneficiary under an election
under paragraph (4)), including payment under
subsection (d).
‘‘(C) DESIGNATION
IF
MORE
THAN
ONE
FORMER
SPOUSE.—If there is more than one
former spouse, the person shall designate which
former spouse is to be provided the annuity.
‘‘(D) DESIGNATION IF RCSBP ELECTION.—
In the case of a person providing a reserve-com-
ponent annuity, such an election shall include a
designation under subsection (e).
‘‘(3) FORMER SPOUSE COVERAGE BY PERSONS
ALREADY PARTICIPATING IN PLAN.—
‘‘(A) ELECTION OF COVERAGE.—
‘‘(i) AUTHORITY
FOR
ELECTION.—A
person—
‘‘(I) who is a participant in the
Plan and is providing coverage for a
spouse or a spouse and child (even
212
though there is no beneficiary currently
eligible for such coverage), and
‘‘(II) who has a former spouse
who was not that person’s former
spouse when that person became eligi-
ble to participate in the Plan,
may (subject to subparagraph (B)) elect to
provide an annuity to that former spouse.
‘‘(ii) TERMINATION OF PREVIOUS COV-
ERAGE.—Any such election terminates any
previous coverage under the Plan.
‘‘(iii) MANNER
AND
TIME
OF
ELEC-
TION.—Any such election must be written,
signed by the person making the election,
and received by the Secretary concerned
within one year after the date of the decree
of divorce, dissolution, or annulment.
‘‘(B) LIMITATION ON ELECTION.—A person
may not make an election under subparagraph
(A) to provide an annuity to a former spouse
who that person married after becoming eligible
for retired pay unless—
‘‘(i) the person was married to that
former spouse for at least one year, or
213
‘‘(ii) that former spouse is the parent
of issue by that marriage.
‘‘(C) IRREVOCABILITY, EFFECTIVE
DATE,
ETC.—An election under this paragraph may not
be revoked except in accordance with section
1450(f) of this title. Such an election is effective
as of the first day of the first calendar month fol-
lowing the month in which it is received by the
Secretary concerned. This paragraph does not
provide the authority to change a designation
previously made under subsection (e).
‘‘(D) NOTICE TO SPOUSE.—If a person who
is married makes an election to provide an an-
nuity to a former spouse under this paragraph,
that person’s spouse shall be notified of the elec-
tion.
‘‘(4) FORMER SPOUSE AND CHILD COVERAGE.—
A person who elects to provide an annuity for a
former spouse under paragraph (2) or (3) may, at the
time of the election, elect to provide coverage under
that annuity for both the former spouse and a de-
pendent child, if the child resulted from the person’s
marriage to that former spouse.
‘‘(5) DISCLOSURE OF WHETHER ELECTION OF
FORMER SPOUSE COVERAGE IS REQUIRED.—A person
214
who elects to provide an annuity to a former spouse
under paragraph (2) or (3) shall, at the time of mak-
ing the election, provide the Secretary concerned with
a written statement (in a form to be prescribed by
that Secretary and signed by such person and the
former spouse) setting forth—
‘‘(A) whether the election is being made
pursuant to the requirements of a court order; or
‘‘(B) whether the election is being made
pursuant to a written agreement previously en-
tered into voluntarily by such person as a part
of, or incident to, a proceeding of divorce, dis-
solution, or annulment and (if so) whether such
voluntary written agreement has been incor-
porated in, or ratified or approved by, a court
order.
‘‘(c) PERSONS ON TEMPORARY DISABILITY RETIRED
LIST.—The application of the Plan to a person whose name
is on the temporary disability retired list terminates when
his name is removed from that list and he is no longer enti-
tled to disability retired pay.
‘‘(d) COVERAGE FOR SURVIVORS OF RETIREMENT-ELI-
GIBLE MEMBERS WHO DIE ON ACTIVE DUTY.—
‘‘(1) SURVIVING
SPOUSE
ANNUITY.—The Sec-
retary concerned shall pay an annuity under this
215
subchapter to the surviving spouse of a member who
dies on active duty after—
‘‘(A) becoming eligible to receive retired
pay;
‘‘(B) qualifying for retired pay except that
he has not applied for or been granted that pay;
or
‘‘(C) completing 20 years of active service
but before he is eligible to retire as a commis-
sioned officer because he has not completed 10
years of active commissioned service.
‘‘(2) DEPENDENT
CHILD
ANNUITY.—The Sec-
retary concerned shall pay an annuity under this
subchapter to the dependent child of a member de-
scribed in paragraph (1) if there is no surviving
spouse or if the member’s surviving spouse subse-
quently dies.
‘‘(3) MANDATORY FORMER SPOUSE ANNUITY.—If
a member described in paragraph (1) is required
under a court order or spousal agreement to provide
an annuity to a former spouse upon becoming eligible
to be a participant in the Plan or has made an elec-
tion under subsection (b) to provide an annuity to a
former spouse, the Secretary—
216
‘‘(A) may not pay an annuity under para-
graph (1) or (2); but
‘‘(B) shall pay an annuity to that former
spouse as if the member had been a participant
in the Plan and had made an election under
subsection (b) to provide an annuity to the
former spouse, or in accordance with that elec-
tion, as the case may be, if the Secretary receives
a written request from the former spouse con-
cerned that the election be deemed to have been
made in the same manner as provided in section
1450(f)(3) of this title.
‘‘(4) PRIORITY.—An annuity that may be pro-
vided under this subsection shall be provided in pref-
erence to an annuity that may be provided under any
other provision of this subchapter on account of serv-
ice of the same member.
‘‘(5) COMPUTATION.—The amount of an annuity
under this subsection is computed under section
1451(c) of this title.
‘‘(e) DESIGNATION FOR COMMENCEMENT OF RESERVE-
COMPONENT ANNUITY.—In any case in which a person
electing to participate in the Plan is required to make a
designation under this subsection, the person making such
election shall designate whether, in the event he dies before
217
becoming 60 years of age, the annuity provided shall become
effective on—
‘‘(1) the day after the date of his death; or
‘‘(2) the 60th anniversary of his birth.
‘‘(f) COVERAGE OF SURVIVORS OF PERSONS DYING
WHEN ELIGIBLE TO ELECT RESERVE-COMPONENT ANNU-
ITY.—
‘‘(1) SURVIVING
SPOUSE
ANNUITY.—The Sec-
retary concerned shall pay an annuity under this
subchapter to the surviving spouse of a person who is
eligible to provide a reserve-component annuity and
who dies—
‘‘(A) before being notified under section
12731(d) of this title that he has completed the
years of service required for eligibility for re-
serve-component retired pay; or
‘‘(B) during the 90-day period beginning on
the date he receives notification under section
12731(d) of this title that he has completed the
years of service required for eligibility for re-
serve-component retired pay if he had not made
an election under subsection (a)(2)(B) to partici-
pate in the Plan.
‘‘(2) DEPENDENT
CHILD
ANNUITY.—The Sec-
retary concerned shall pay an annuity under this
218
subchapter to the dependent child of a person de-
scribed in paragraph (1) if there is no surviving
spouse or if the person’s surviving spouse subsequently
dies.
‘‘(3) MANDATORY FORMER SPOUSE ANNUITY.—If
a person described in paragraph (1) is required under
a court order or spousal agreement to provide an an-
nuity to a former spouse upon becoming eligible to be
a participant in the Plan or has made an election
under subsection (b) to provide an annuity to a
former spouse, the Secretary—
‘‘(A) may not pay an annuity under para-
graph (1) or (2); but
‘‘(B) shall pay an annuity to that former
spouse as if the person had been a participant
in the Plan and had made an election under
subsection (b) to provide an annuity to the
former spouse, or in accordance with that elec-
tion, as the case may be, if the Secretary receives
a written request from the former spouse con-
cerned that the election be deemed to have been
made in the same manner as provided in section
1450(f)(3) of this title.
219
‘‘(4) COMPUTATION.—The amount of an annuity
under this subsection is computed under section
1451(c) of this title.
‘‘(g) ELECTION TO INCREASE COVERAGE UPON RE-
MARRIAGE.—
‘‘(1) ELECTION.—A person—
‘‘(A) who is a participant in the Plan and
is providing coverage under subsection (a) for a
spouse or a spouse and child, but at less than the
maximum level; and
‘‘(B) who remarries,
may elect, within one year of such remarriage, to in-
crease the level of coverage provided under the Plan
to a level not in excess of the current retired pay of
that person.
‘‘(2) PAYMENT
REQUIRED.—Such an election
shall be contingent on the person paying to the Unit-
ed States the amount determined under paragraph
(3) plus interest on such amount at a rate determined
under regulations prescribed by the Secretary of De-
fense.
‘‘(3) AMOUNT TO BE PAID.—The amount referred
to in paragraph (2) is the amount equal to the dif-
ference between—
220
‘‘(A) the amount that would have been with-
held from such person’s retired pay under section
1452 of this title if the higher level of coverage
had been in effect from the time the person be-
came a participant in the Plan; and
‘‘(B) the amount of such person’s retired
pay actually withheld.
‘‘(4) MANNER OF MAKING ELECTION.—An elec-
tion under paragraph (1) shall be made in such man-
ner as the Secretary shall prescribe and shall become
effective upon receipt of the payment required by
paragraph (2).
‘‘(5) DISPOSITION
OF
PAYMENTS.—A payment
received under this subsection by the Secretary of De-
fense shall be deposited into the Department of De-
fense Military Retirement Fund. Any other payment
received under this subsection shall be deposited in the
Treasury as miscellaneous receipts.
‘‘§ 1449. Mental incompetency of member
‘‘(a) ELECTION BY SECRETARY CONCERNED ON BE-
HALF OF MENTALLY INCOMPETENT MEMBER.—If a person
to whom section 1448 of this title applies is determined to
be mentally incompetent by medical officers of the armed
force concerned or of the Department of Veterans Affairs,
or by a court of competent jurisdiction, an election de-
221
scribed in subsection (a)(2) or (b) of section 1448 of this
title may be made on behalf of that person by the Secretary
concerned.
‘‘(b) REVOCATION OF ELECTION BY MEMBER.—
‘‘(1) AUTHORITY
UPON
SUBSEQUENT
DETER-
MINATION OF MENTAL COMPETENCE.—If a person for
whom the Secretary has made an election under sub-
section (a) is later determined to be mentally com-
petent by an authority named in that subsection, that
person may, within 180 days after that determina-
tion, revoke that election.
‘‘(2) DEDUCTIONS FROM RETIRED PAY NOT TO
BE REFUNDED.—Any deduction made from retired
pay by reason of such an election may not be re-
funded.
‘‘§ 1450. Payment of annuity: beneficiaries
‘‘(a) IN GENERAL.—Effective as of the first day after
the death of a person to whom section 1448 of this title
applies (or on such other day as that person may provide
under subsection (j)), a monthly annuity under section
1451 of this title shall be paid to the person’s beneficiaries
under the Plan, as follows:
‘‘(1) SURVIVING SPOUSE OR FORMER SPOUSE.—
The eligible surviving spouse or the eligible former
spouse.
222
‘‘(2) SURVIVING CHILDREN.—The surviving de-
pendent children in equal shares, if the eligible sur-
viving spouse or the eligible former spouse is dead,
dies, or otherwise becomes ineligible under this sec-
tion.
‘‘(3) DEPENDENT
CHILDREN.—The dependent
children in equal shares if the person to whom section
1448 of this title applies (with the concurrence of the
person’s spouse, if required under section 1448(a)(3)
of this title) elected to provide an annuity for depend-
ent children but not for the spouse or former spouse.
‘‘(4) NATURAL PERSON DESIGNATED UNDER ‘IN-
SURABLE INTEREST’ COVERAGE.—The natural person
designated under section 1448(b)(1) of this title, un-
less the election to provide an annuity to the natural
person has been changed as provided in subsection (f).
‘‘(b) TERMINATION OF ANNUITY FOR DEATH, REMAR-
RIAGE BEFORE AGE 55, ETC.—
‘‘(1) GENERAL RULE.—An annuity payable to
the beneficiary terminates effective as of the first day
of the month in which eligibility is lost.
‘‘(2) TERMINATION OF SPOUSE ANNUITY UPON
DEATH OR REMARRIAGE BEFORE AGE 55.—An annu-
ity for a surviving spouse or former spouse shall be
paid to the surviving spouse or former spouse while
223
the surviving spouse or former spouse is living or, if
the surviving spouse or former spouse remarries before
reaching age 55, until the surviving spouse or former
spouse remarries.
‘‘(3) EFFECT OF TERMINATION OF SUBSEQUENT
MARRIAGE BEFORE AGE 55.—If the surviving spouse
or former spouse remarries before reaching age 55 and
that marriage is terminated by death, annulment, or
divorce, payment of the annuity shall be resumed ef-
fective as of the first day of the month in which the
marriage is so terminated. However, if the surviving
spouse or former spouse is also entitled to an annuity
under the Plan based upon the marriage so termi-
nated, the surviving spouse or former spouse may not
receive both annuities but must elect which to receive.
‘‘(c) OFFSET FOR AMOUNT OF DEPENDENCY AND IN-
DEMNITY COMPENSATION.—
‘‘(1) REQUIRED OFFSET.—If, upon the death of
a person to whom section 1448 of this title applies,
the surviving spouse or former spouse of that person
is also entitled to dependency and indemnity com-
pensation under section 1311(a) of title 38, the sur-
viving spouse or former spouse may be paid an annu-
ity under this section, but only in the amount that
224
the annuity otherwise payable under this section
would exceed that compensation.
‘‘(2) EFFECTIVE DATE OF OFFSET.—A reduction
in an annuity under this section required by para-
graph (1) shall be effective on the date of the com-
mencement of the period of payment of such depend-
ency and indemnity compensation under title 38.
‘‘(d) LIMITATION ON PAYMENT OF ANNUITIES WHEN
COVERAGE UNDER CIVIL SERVICE RETIREMENT ELECT-
ED.—If, upon the death of a person to whom section 1448
of this title applies, that person had in effect a waiver of
that person’s retired pay for the purposes of subchapter III
of chapter 83 of title 5, an annuity under this section shall
not be payable unless, in accordance with section 8339(j)
of title 5, that person notified the Office of Personnel Man-
agement that he did not desire any spouse surviving him
to receive an annuity under section 8341(b) of that title.
‘‘(e) REFUND
OF AMOUNTS DEDUCTED FROM RE-
TIRED PAY WHEN DIC OFFSET IS APPLICABLE.—
‘‘(1) FULL REFUND WHEN DIC GREATER THAN
SBP ANNUITY.—If an annuity under this section is
not payable because of subsection (c), any amount de-
ducted from the retired pay of the deceased under sec-
tion 1452 of this title shall be refunded to the surviv-
ing spouse or former spouse.
225
‘‘(2) PARTIAL REFUND WHEN SBP ANNUITY RE-
DUCED BY DIC.—If, because of subsection (c), the an-
nuity payable is less than the amount established
under section 1451 of this title, the annuity payable
shall be recalculated under that section. The amount
of the reduction in the retired pay required to provide
that recalculated annuity shall be computed under
section 1452 of this title, and the difference between
the amount deducted before the computation of that
recalculated annuity and the amount that would have
been deducted on the basis of that recalculated annu-
ity shall be refunded to the surviving spouse or former
spouse.
‘‘(f) CHANGE IN ELECTION OF INSURABLE INTEREST
OR FORMER SPOUSE BENEFICIARY.—
‘‘(1) AUTHORIZED CHANGES.—
‘‘(A) ELECTION IN FAVOR OF SPOUSE OR
CHILD.—A person who elects to provide an an-
nuity to a person designated by him under sec-
tion 1448(b) of this title may, subject to para-
graph (2), change that election and provide an
annuity to his spouse or dependent child.
‘‘(B) NOTICE.—The Secretary concerned
shall notify the former spouse or other natural
person previously designated under section
226
1448(b) of this title of any change of election
under subparagraph (A).
‘‘(C) 
PROCEDURES, 
EFFECTIVE
DATE,
ETC.—Any such change of election is subject to
the same rules with respect to execution, revoca-
tion, and effectiveness as are set forth in section
1448(a)(5) of this title (without regard to the eli-
gibility of the person making the change of elec-
tion to make such an election under that sec-
tion).
‘‘(2) LIMITATION ON CHANGE IN BENEFICIARY
WHEN
FORMER
SPOUSE
COVERAGE
IN
EFFECT.—A
person who, incident to a proceeding of divorce, dis-
solution, or annulment, is required by a court order
to elect under section 1448(b) of this title to provide
an annuity to a former spouse (or to both a former
spouse and child), or who enters into a written agree-
ment (whether voluntary or required by a court
order) to make such an election, and who makes an
election pursuant to such order or agreement, may
not change that election under paragraph (1) unless,
of the following requirements, whichever are applica-
ble in a particular case are satisfied:
‘‘(A) In a case in which the election is re-
quired by a court order, or in which an agree-
227
ment to make the election has been incorporated
in or ratified or approved by a court order, the
person—
‘‘(i) furnishes to the Secretary con-
cerned a certified copy of a court order
which is regular on its face and which
modifies the provisions of all previous court
orders relating to such election, or the agree-
ment to make such election, so as to permit
the person to change the election; and
‘‘(ii) certifies to the Secretary con-
cerned that the court order is valid and in
effect.
‘‘(B) In a case of a written agreement that
has not been incorporated in or ratified or ap-
proved by a court order, the person—
‘‘(i) furnishes to the Secretary con-
cerned a statement, in such form as the Sec-
retary concerned may prescribe, signed by
the former spouse and evidencing the former
spouse’s agreement to a change in the elec-
tion under paragraph (1); and
‘‘(ii) certifies to the Secretary con-
cerned that the statement is current and in
effect.
228
‘‘(3) REQUIRED FORMER SPOUSE ELECTION TO
BE DEEMED TO HAVE BEEN MADE.—
‘‘(A) DEEMED ELECTION UPON REQUEST BY
FORMER
SPOUSE.—If a person described in
paragraph (2) or (3) of section 1448(b) of this
title is required (as described in subparagraph
(B)) to elect under section 1448(b) of this title to
provide an annuity to a former spouse and such
person then fails or refuses to make such an elec-
tion, such person shall be deemed to have made
such an election if the Secretary concerned re-
ceives the following:
‘‘(i) 
REQUEST
FROM
FORMER
SPOUSE.—A written request, in such man-
ner as the Secretary shall prescribe, from
the former spouse concerned requesting that
such an election be deemed to have been
made.
‘‘(ii) COPY
OF
COURT
ORDER
OR
OTHER OFFICIAL STATEMENT.—Either—
‘‘(I) a copy of the court order, reg-
ular on its face, which requires such
election or incorporates, ratifies, or ap-
proves the written agreement of such
person; or
229
‘‘(II) a statement from the clerk of
the court (or other appropriate official)
that such agreement has been filed with
the court in accordance with applicable
State law.
‘‘(B) PERSONS REQUIRED TO MAKE ELEC-
TION.—A person shall be considered for purposes
of subparagraph (A) to be required to elect under
section 1448(b) of this title to provide an annu-
ity to a former spouse if—
‘‘(i) the person enters, incident to a
proceeding of divorce, dissolution, or annul-
ment, into a written agreement to make
such an election and the agreement (I) has
been incorporated in or ratified or approved
by a court order, or (II) has been filed with
the court of appropriate jurisdiction in ac-
cordance with applicable State law; or
‘‘(ii) the person is required by a court
order to make such an election.
‘‘(C) TIME LIMIT FOR REQUEST BY FORMER
SPOUSE.—An election may not be deemed to
have been made under subparagraph (A) in the
case of any person unless the Secretary con-
cerned receives a request from the former spouse
230
of the person within one year of the date of the
court order or filing involved.
‘‘(D) EFFECTIVE DATE OF DEEMED ELEC-
TION.—An election deemed to have been made
under subparagraph (A) shall become effective on
the first day of the first month which begins after
the date of the court order or filing involved.
‘‘(4) FORMER SPOUSE COVERAGE MAY BE RE-
QUIRED BY COURT ORDER.—A court order may re-
quire a person to elect (or to enter into an agreement
to elect) under section 1448(b) of this title to provide
an annuity to a former spouse (or to both a former
spouse and child).
‘‘(g) LIMITATION ON CHANGING OR REVOKING ELEC-
TIONS.—
‘‘(1) IN GENERAL.—An election under this sec-
tion may not be changed or revoked.
‘‘(2) EXCEPTIONS.—Paragraph (1) does not
apply to—
‘‘(A) a revocation of an election under sec-
tion 1449(b) of this title; or
‘‘(B) a change in an election under sub-
section (f).
‘‘(h) TREATMENT
OF
ANNUITIES
UNDER
OTHER
LAWS.—Except as provided in section 1451 of this title, an
231
annuity under this section is in addition to any other pay-
ment to which a person is entitled under any other provi-
sion of law. Such annuity shall be considered as income
under laws administered by the Secretary of Veterans Af-
fairs.
‘‘(i) ANNUITIES
EXEMPT
FROM
CERTAIN
LEGAL
PROCESS.—Except as provided in subsection (l)(3)(B), an
annuity under this section is not assignable or subject to
execution, levy, attachment, garnishment, or other legal
process.
‘‘(j) EFFECTIVE DATE OF RESERVE-COMPONENT AN-
NUITIES.—
‘‘(1) PERSONS MAKING SECTION 1448(e) DESIGNA-
TION.—An annuity elected by a person providing a
reserve-component annuity shall be effective in ac-
cordance with the designation made by such person
under section 1448(e) of this title.
‘‘(2) PERSONS DYING BEFORE MAKING SECTION
1448(e) DESIGNATION.—An annuity payable under
section 1448(f) of this title shall be effective on the
day after the date of the death of the person upon
whose service the right to the annuity is based.
‘‘(k) ADJUSTMENT OF SPOUSE OR FORMER SPOUSE
ANNUITY UPON LOSS OF DEPENDENCY AND INDEMNITY
COMPENSATION.—
232
‘‘(1) READJUSTMENT IF BENEFICIARY 55 YEARS
OF AGE OR MORE.—If a surviving spouse or former
spouse whose annuity has been adjusted under sub-
section (c) subsequently loses entitlement to depend-
ency and indemnity compensation under section
1311(a) of title 38 because of the remarriage of the
surviving spouse, or former spouse, and if at the time
of such remarriage the surviving spouse or former
spouse is 55 years of age or more, the amount of the
annuity of the surviving spouse or former spouse shall
be readjusted, effective on the effective date of such loss
of dependency and indemnity compensation, to the
amount of the annuity which would be in effect with
respect to the surviving spouse or former spouse if the
adjustment under subsection (c) had never been made.
‘‘(2) REPAYMENT OF AMOUNTS PREVIOUSLY RE-
FUNDED.—
‘‘(A) GENERAL RULE.—A surviving spouse
or former spouse whose annuity is readjusted
under paragraph (1) shall repay any amount re-
funded under subsection (e) by reason of the ad-
justment under subsection (c).
‘‘(B) INTEREST REQUIRED IF REPAYMENT
NOT
A
LUMP
SUM.—If the repayment is not
made in a lump sum, the surviving spouse or
233
former spouse shall pay interest on the amount
to be repaid. Such interest shall commence on the
date on which the first such payment is due and
shall be applied over the period during which
any part of the repayment remains to be paid.
‘‘(C) MANNER OF REPAYMENT; RATE OF IN-
TEREST.—The manner in which such repayment
shall be made, and the rate of any such interest,
shall be prescribed in regulations under section
1455 of this title.
‘‘(D) DEPOSIT OF AMOUNTS REPAID.—An
amount repaid under this paragraph (including
any such interest) received by the Secretary of
Defense shall be deposited into the Department of
Defense Military Retirement Fund. Any other
amount repaid under this paragraph shall be de-
posited into the Treasury as miscellaneous re-
ceipts.
‘‘(l) PARTICIPANTS IN THE PLAN WHO ARE MISS-
ING.—
‘‘(1) AUTHORITY TO PRESUME DEATH OF MISS-
ING PARTICIPANT.—
‘‘(A) IN
GENERAL.—Upon application of
the beneficiary of a participant in the Plan who
is missing, the Secretary concerned may deter-
234
mine for purposes of this subchapter that the
participant is presumed dead.
‘‘(B) PARTICIPANT
WHO
IS
MISSING.—A
participant in the Plan is considered to be miss-
ing for purposes of this subsection if—
‘‘(i) the retired pay of the participant
has been suspended on the basis that the
participant is missing; or
‘‘(ii) in the case of a participant in the
Plan who would be eligible for reserve-com-
ponent retired pay but for the fact that he
is under 60 years of age, his retired pay, if
he were entitled to retired pay, would be
suspended on the basis that he is missing.
‘‘(C) REQUIREMENTS APPLICABLE TO PRE-
SUMPTION OF DEATH.—Any such determination
shall be made in accordance with regulations
prescribed under section 1455 of this title. The
Secretary concerned may not make a determina-
tion for purposes of this subchapter that a par-
ticipant who is missing is presumed dead unless
the Secretary finds that—
‘‘(i) the participant has been missing
for at least 30 days; and
235
‘‘(ii) the circumstances under which
the participant is missing would lead a rea-
sonably prudent person to conclude that the
participant is dead.
‘‘(2) COMMENCEMENT OF ANNUITY.—Upon a de-
termination under paragraph (1) with respect to a
participant in the Plan, an annuity otherwise pay-
able under this subchapter shall be paid as if the par-
ticipant died on the date as of which the retired pay
of the participant was suspended.
‘‘(3) EFFECT OF PERSON NOT BEING DEAD.—
‘‘(A) TERMINATION OF ANNUITY.—If, after a
determination under paragraph (1), the Sec-
retary concerned determines that the participant
is alive—
‘‘(i) any annuity being paid under this
subchapter by reason of this subsection shall
be terminated; and
‘‘(ii) the total amount of any annuity
payments made by reason of this subsection
shall constitute a debt to the United States.
‘‘(B) COLLECTION
FROM
PARTICIPANT
OF
ANNUITY AMOUNTS ERRONEOUSLY PAID.—A debt
under subparagraph (A)(ii) may be collected or
offset—
236
‘‘(i) from any retired pay otherwise
payable to the participant;
‘‘(ii) if the participant is entitled to
compensation under chapter 11 of title 38,
from that compensation; or
‘‘(iii) if the participant is entitled to
any other payment from the United States,
from that payment.
‘‘(C) COLLECTION FROM BENEFICIARY.—If
the participant dies before the full recovery of the
amount of annuity payments described in sub-
paragraph (A)(ii) has been made by the United
States, the remaining amount of such annuity
payments may be collected from the participant’s
beneficiary under the Plan if that beneficiary
was the recipient of the annuity payments made
by reason of this subsection.
‘‘§ 1451. Amount of annuity
‘‘(a) COMPUTATION
OF ANNUITY
FOR
A SPOUSE,
FORMER SPOUSE, OR CHILD.—
‘‘(1) STANDARD
ANNUITY.—In the case of a
standard annuity provided to a beneficiary under sec-
tion 1450(a) of this title (other than under section
1450(a)(4)), the monthly annuity payable to the bene-
ficiary shall be determined as follows:
237
‘‘(A) BENEFICIARY
UNDER
YEARS
OF
AGE.—If the beneficiary is under 62 years of age
or is a dependent child when becoming entitled
to the annuity, the monthly annuity shall be the
amount equal to 55 percent of the base amount.
‘‘(B) BENEFICIARY 62 YEARS OF AGE OR
OLDER.—
‘‘(i) GENERAL
RULE.—If the bene-
ficiary (other than a dependent child) is 62
years of age or older when becoming entitled
to the annuity, the monthly annuity shall
be the amount equal to 35 percent of the
base amount.
‘‘(ii) RULE IF BENEFICIARY ELIGIBLE
FOR
SOCIAL
SECURITY
OFFSET
COMPUTA-
TION.—If the beneficiary is eligible to have
the annuity computed under subsection (e)
and if, at the time the beneficiary becomes
entitled to the annuity, computation of the
annuity under that subsection is more fa-
vorable to the beneficiary than computation
under clause (i), the annuity shall be com-
puted under that subsection rather than
under clause (i).
238
‘‘(2) RESERVE-COMPONENT
ANNUITY—In the
case of a reserve-component annuity provided to a
beneficiary under section 1450(a) of this title (other
than under section 1450(a)(4)), the monthly annuity
payable to the beneficiary shall be determined as fol-
lows:
‘‘(A) BENEFICIARY
UNDER
YEARS
OF
AGE.—If the beneficiary is under 62 years of age
or is a dependent child when becoming entitled
to the annuity, the monthly annuity shall be the
amount equal to a percentage of the base amount
that—
‘‘(i) is less than 55 percent; and
‘‘(ii) is determined under subsection
(f).
‘‘(B) BENEFICIARY 62 YEARS OF AGE OR
OLDER.—
‘‘(i) GENERAL
RULE.—If the bene-
ficiary (other than a dependent child) is 62
years of age or older when becoming entitled
to the annuity, the monthly annuity shall
be the amount equal to a percentage of the
base amount that—
‘‘(I) is less than 35 percent; and
239
‘‘(II) is determined under sub-
section (f).
‘‘(ii) RULE IF BENEFICIARY ELIGIBLE
FOR
SOCIAL
SECURITY
OFFSET
COMPUTA-
TION.—If the beneficiary is eligible to have
the annuity computed under subsection (e)
and if, at the time the beneficiary becomes
entitled to the annuity, computation of the
annuity under that subsection is more fa-
vorable to the beneficiary than computation
under clause (i), the annuity shall be com-
puted under that subsection rather than
under clause (i).
‘‘(b) INSURABLE INTEREST BENEFICIARY.—
‘‘(1) STANDARD
ANNUITY.—In the case of a
standard annuity provided to a beneficiary under sec-
tion 1450(a)(4) of this title, the monthly annuity
payable to the beneficiary shall be the amount equal
to 55 percent of the retired pay of the person who
elected to provide the annuity after the reduction in
that pay in accordance with section 1452(c) of this
title.
‘‘(2) RESERVE-COMPONENT
ANNUITY.—In the
case of a reserve-component annuity provided to a
beneficiary under section 1450(a)(4) of this title, the
251
effect on that date if increases in such base amount
under paragraph (1) had been computed as provided
in paragraph (2) of section 1401a(b) of this title
(rather than under paragraph (3) of that section).
‘‘(3) DISREGARDING OF RETIRED PAY REDUC-
TIONS FOR RETIREMENT BEFORE 30 YEARS OF SERV-
ICE.—Computation of a member’s retired pay for
purposes of this section shall be made without regard
to any reduction under section 1409(b)(2) of this title.
‘‘(i) RECOMPUTATION
OF ANNUITY
FOR CERTAIN
BENEFICIARIES.—In the case of an annuity under the Plan
which is computed on the basis of the retired pay of a per-
son who would have been entitled to have that retired pay
recomputed under section 1410 of this title upon attaining
62 years of age, but who dies before attaining that age, the
annuity shall be recomputed, effective on the first day of
the first month beginning after the date on which the mem-
ber or former member would have attained 62 years of age,
so as to be the amount equal to the amount of the annuity
that would be in effect on that date if increases under sub-
section (h)(1) in the base amount applicable to that annuity
to the time of the death of the member or former member,
and increases in such annuity under subsection (g)(1), had
been computed as provided in paragraph (2) of section
252
1401a(b) of this title (rather than under paragraph (3) of
that section).
‘‘§ 1452. Reduction in retired pay
‘‘(a) SPOUSE AND FORMER SPOUSE ANNUITIES.—
‘‘(1) REQUIRED REDUCTION IN RETIRED PAY.—
Except as provided in subsection (b), the retired pay
of a participant in the Plan who is providing spouse
coverage (as described in paragraph (5)) shall be re-
duced as follows:
‘‘(A) STANDARD ANNUITY.—If the annuity
coverage being providing is a standard annuity,
the reduction shall be as follows:
‘‘(i) DISABILITY
AND
NONREGULAR
SERVICE RETIREES.—In the case of a per-
son who is entitled to retired pay under
chapter 61 or chapter 1223 of this title, the
reduction shall be in whichever of the alter-
native reduction amounts is more favorable
to that person.
‘‘(ii) MEMBERS AS OF ENACTMENT OF
FLAT-RATE REDUCTION.—In the case of a
person who first became a member of a uni-
formed service before March 1, 1990, the re-
duction shall be in whichever of the alter-
277
(2) The term ‘‘agreement’’ means the agreement
required under section 722(b) between the Secretary of
Defense and a designated provider.
(3) The term ‘‘capitation payment’’ means an
actuarially sound payment for a defined set of health
care services that is established on a per enrollee per
month basis.
(4) The term ‘‘covered beneficiary’’ means a ben-
eficiary under chapter 55 of title 10, United States
Code, other than a beneficiary under section 1074(a)
of such title.
(5) The term ‘‘designated provider’’ means a
public or nonprofit private entity that was a trans-
feree of a Public Health Service hospital or other sta-
tion under section 987 of the Omnibus Budget Rec-
onciliation Act of 1981 (Public Law 97–35; 95 Stat.
603) and that, before the date of the enactment of this
Act, was deemed to be a facility of the uniformed
services for the purposes of chapter 55 of title 10,
United States Code. The term includes any legal suc-
cessor in interest of the transferee.
(6) The term ‘‘enrollee’’ means a covered bene-
ficiary who enrolls with a designated provider.
(7) The term ‘‘health care services’’ means the
health care services provided under the health plan
537
(A) by the area offices of the Department of En-
ergy located at the facilities and laboratories covered
by this section; or
(B) by the Assistant Secretary of Energy for De-
fense Programs.
(3) The report also shall address and make rec-
ommendations with respect to other internal streamlining
and reorganization initiatives that the Department could
pursue with respect to military or national security pro-
grams.
(e) DEFENSE PROGRAMS MANAGEMENT COUNCIL.—
The Secretary of Energy shall establish a Defense Programs
Management Council to advise the Secretary on policy mat-
ters, operational concerns, strategic planning, and develop-
ment of priorities relating to the national security functions
of the Department of Energy. The Council shall be composed
of the directors of the facilities and laboratories and shall
report directly to the Assistant Secretary of Energy for De-
fense Programs.
(f) COVERED SITE OPERATIONS.—For purposes of this
section, matters relating to site operation of a facility or
laboratory include matters relating to personnel, budget,
and procurement in national security programs.