‘‘If the person’s age, in years, 
The minimum years of 
is at least: 
service required is 
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20’’. 
(b) 20-YEAR LETTER.—Subsection (d) of such sec-
tion is amended by striking ‘‘the years of service required 
for eligibility for retired pay under this chapter’’ in the 
first sentence and inserting ‘‘20 years of service computed 
under section 12732 of this title’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the first day of the first 
month beginning on or after the date of the enactment 
of this Act and shall apply with respect to retired pay pay-
able for that month and subsequent months. 
TITLE II—HEALTH CARE AND 
EDUCATION MATTERS 
SEC. 201. PERMANENT AUTHORITY FOR CERTAIN TRICARE 
BENEFITS FOR RESERVES. 
(a) PERMANENT AUTHORITY
FOR COVERAGE
OF 
READY RESERVE MEMBERS UNDER TRICARE PRO-
GRAM.—Section 1076b of title 10, United States Code, is 
amended by striking subsection (l).
(b) PERMANENT AUTHORITY FOR EARLIER ELIGI-
BILITY DATE FOR TRICARE BENEFITS FOR MEMBERS 
OF RESERVE COMPONENTS.—Section 1074(d) of title 10, 
United States Code, is amended by striking paragraph (3). 
(c) PERMANENT
EXTENSION
OF
TRANSITIONAL 
HEALTH CARE BENEFITS.— 
(1) Paragraph (3) of section 1145(a) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(3) Transitional health care for a member under 
subsection (a) shall be available for 180 days beginning 
on the date on which the member is separated from active 
duty.’’. 
(2) Paragraph (3) of section 1145(a) of title 
10, United States Code, shall apply with respect to 
separations from active duty that take effect on or 
after November 24, 2003. 
(3) Section 704 of the National Defense Au-
thorization Act for Fiscal Year 2004 (Public Law 
108–136; 117 Stat. 1527) and section 1117 of the 
Emergency Supplemental Appropriations Act for 
Defense and for the Reconstruction of Iraq and Af-
ghanistan, 2004 (Public Law 108–106; 117 Stat. 
1218) are repealed.
SEC. 202. INCREASE IN AMOUNT OF BASIC EDUCATIONAL 
ASSISTANCE UNDER THE MONTGOMERY GI 
BILL FOR MEMBERS OF RESERVE COMPO-
NENTS; INDEXING PAYMENT AMOUNTS TO 
HIGHER EDUCATION COSTS. 
(a) IN GENERAL.—(1) Paragraph (1) of Section 
16131(b) of title 10, United States Code, is amended— 
(A) in subparagraph (A), by striking ‘‘$251’’ 
and inserting ‘‘$600’’; 
(B) in subparagraph (B), by striking ‘‘$188’’ 
and inserting ‘‘$450’’; and 
(C) in subparagraph (C), by striking ‘‘$125’’ 
and inserting ‘‘$300’’. 
(2) The amendments made by paragraph (1) shall 
take effect on October 1, 2005, and shall apply with re-
spect to educational assistance allowances under section 
16131(b)(1) of such title paid for months after September 
2005. 
(3) In the case of an educational assistance allowance 
under such section paid for months occurring during fiscal 
year 2005— 
(A) subparagraph (A) of such section shall be 
applied by substituting ‘‘$475’’ for ‘‘$251’’; 
(B) subparagraph (B) of such section shall be 
applied by substituting ‘‘$325’’ for ‘‘$188’’; and
(C) subparagraph (C) of such section shall be 
applied by substituting ‘‘$215’’ for ‘‘$125’’. 
(b) NO ADJUSTMENT FOR FISCAL YEARS 2005 AND 
2006.—Section 16131(b)(2) of such title shall not apply 
to rates of basic educational assistance paid under such 
section during fiscal years 2005 and 2006. 
(c) APPLICATION
OF INDEX BASED
ON HIGHER 
EDUCATION COSTS.—(1) Section 16131(b)(2) of title 10, 
United States Code, is amended to read as follows: 
‘‘(2)(A) With respect to any fiscal year beginning on 
or after October 1, 2006, the Secretary shall provide a 
percentage increase (rounded to the nearest dollar) in the 
rates payable under paragraph (1) equal to the percentage 
(as determined by the Secretary) by which— 
‘‘(i) the average monthly costs of tuition and 
expenses for commuter students at public institu-
tions of higher learning that award baccalaureate 
degrees for purposes of paragraph (1) for the fiscal 
year involved, exceeds 
‘‘(ii) such average monthly costs for the pre-
ceding fiscal year. 
‘‘(B) The Secretary shall make the determination 
under subparagraph (A) after consultation with the Sec-
retary of Education.
‘‘(C) A determination made under subparagraph (A) 
in a year shall take effect on October 1 of that year and 
apply with respect to basic educational assistance allow-
ances payable under this section for the fiscal year begin-
ning in that year. 
‘‘(D) Not later than September 30 each year, the Sec-
retary shall publish in the Federal Register the average 
monthly costs of tuition and expenses as determined under 
subparagraph (A) in that year.’’. 
(2)(A) Section 3015(h) of title 38, United States 
Code, is amended by striking ‘‘by which—’’ and all that 
follows and inserting ‘‘determined by the Secretary under 
section 16131(b)(2) of title 10 for the fiscal year in-
volved.’’. 
(B) The amendment made by subparagraph (A) shall 
apply to fiscal years beginning on or after October 1, 
2006. 
SEC. 203. PROHIBITION ON DENIAL OF BENEFITS UNDER 
THE MONTGOMERY GI BILL FOR MEMBERS 
OF RESERVE COMPONENTS IN CONJUNCTION 
WITH CALLS TO ACTIVE DUTY. 
(a) IN GENERAL.—Section 16134 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘Educational’’ and inserting 
‘‘(a) GENERAL RULE.—Educational’’; and