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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on September 1, 2005, and shall
apply with respect to months beginning on or after that
date.
SEC. 673. TEMPORARY AUTHORITY FOR INCENTIVES FOR
RECRUITMENT OF MILITARY PERSONNEL.
(a) AUTHORITY TO PROVIDE INCENTIVES.—The Sec-
retary of Defense may, in consultation with the Director
of the Office of Management and Budget, develop and pro-
vide incentives (in addition to any other incentives author-
ized by law) for the recruitment of individuals as officers
and enlisted members of the Armed Forces.
(b) CONSTRUCTION WITH OTHER PERSONNEL AU-
THORITIES.—
(1) IN GENERAL.—Incentives may be provided
under subsection (a)—
(A) without regard to the lack of specific
authority for such incentives under title 10,
United States Code, or title 37, United States
Code; and
(B) notwithstanding any provision of title
10, United States Code, or title 37, United
States Code, or any rule or regulation prescribed
under such provision, relating to methods of—
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(i) determining requirements for, and
the compensation of, members of the Armed
Forces who are assigned duty as military
recruiters; or
(ii) providing incentives to individuals
to accept commissions or enlist in the
Armed Forces, including the provision of
group or individual bonuses, pay, or other
incentives.
(2) 
WAIVER
OF
OTHERWISE
APPLICABLE
LAWS.—No provision of title 10, United States Code,
or title 37, United States Code, may be waived with
respect to, or otherwise determined to be inapplicable
to, the provision of incentives under subsection (a) ex-
cept with the approval of the Secretary.
(c) PLANS.—
(1) DEVELOPMENT OF PLANS.—Before providing
an incentive under subsection (a), or entering into
any agreement or contract with respect to the provi-
sion of such incentive, the Secretary shall develop a
plan that includes—
(A) a description of such incentive, includ-
ing the purpose of such project and the members
(or potential recruits) of the Armed Forces to be
addressed by such incentive;
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(B) a statement of the anticipated outcomes
of such incentive; and
(C) the method of evaluating the effective-
ness of such incentive.
(2) SUBMITTAL OF PLANS.—Not later than 30
days before the provision of an incentive under sub-
section (a), the Secretary shall submit a copy of the
plan developed under paragraph (1) on such
incentive—
(A) to the elements of the Department of De-
fense to be affected by the provision of such in-
centive; and
(B) to Congress.
(d) LIMITATIONS.—
(1) NUMBER OF INDIVIDUALS.—The number of
individuals provided incentives under subsection (a)
may not exceed the number of individuals equal to 20
percent of the accession mission of the Armed Force
concerned for the fiscal year in which such incentives
are first provided.
(2) DURATION OF PROVISION.—The provision of
incentives under subsection (a) shall terminate not
later than the end of the three-year period beginning
on the date on which the provision of such incentives
commences (except that such incentives may continue
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to be provided beyond the date otherwise provided in
this paragraph to the extent necessary to evaluate the
effectiveness of such incentives).
(e) REPORTS.—
(1) IN GENERAL.—The Secretary shall submit to
Congress on an annual basis a report on the incen-
tives provided under subsection (a) during the pre-
ceding year.
(2) ELEMENTS.—Each report under this sub-
section shall include—
(A) a description of the incentives provided
under subsection (a) during the fiscal year cov-
ered by such report; and
(B) an assessment of the impact of such in-
centives on the recruitment of individuals as offi-
cers or enlisted members of the Armed Forces.
SEC. 674. PAY AND BENEFITS TO FACILITATE VOLUNTARY
SEPARATION OF TARGETED MEMBERS OF
THE ARMED FORCES.
(a) PAY AND BENEFITS AUTHORIZED.—
(1) IN GENERAL.—Chapter 59 of title 10, United
States Code, is amended by inserting after section
1175 the following new section:
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‘‘§ 1175a. Voluntary separation pay and benefits
‘‘(a) IN GENERAL.—Under regulations approved by
the Secretary of Defense, the Secretary concerned may pro-
vide voluntary separation pay and benefits in accordance
with this section to eligible members of the armed forces
who are voluntarily separated from active duty in the
armed forces.
‘‘(b) ELIGIBLE MEMBERS.—(1) Except as provided in
paragraph (2), a member of the armed forces is eligible for
voluntary separation pay and benefits under this section
if the member—
‘‘(A) has served on active duty for more than 6
years but not more than 20 years;
‘‘(B) has served at least 5 years of continuous ac-
tive duty immediately preceding the date of the mem-
ber’s separation from active duty;
‘‘(C) has not been approved for payment of a vol-
untary separation incentive under section 1175 of
this title;
‘‘(D) meets such other requirements as the Sec-
retary concerned may prescribe, which may include
requirements relating to—
‘‘(i) years of service, skill, rating, military
specialty, or competitive category;
‘‘(ii) grade or rank;
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‘‘(iii) remaining period of obligated service;
or
‘‘(iv) any combination of these factors; and
‘‘(E) requests separation from active duty.
‘‘(2) The following members are not eligible for vol-
untary separation pay and benefits under this section:
‘‘(A) Members discharged with disability sever-
ance pay under section 1212 of this title.
‘‘(B) Members transferred to the temporary dis-
ability retired list under section 1202 or 1205 of this
title.
‘‘(C) Members being evaluated for disability re-
tirement under chapter 61 of this title.
‘‘(D) Members who have been previously dis-
charged with voluntary separation pay.
‘‘(E) Members who are subject to pending dis-
ciplinary action or who are subject to administrative
separation or mandatory discharge under any other
provision of law or regulations.
‘‘(3) The Secretary concerned shall determine each
year the number of members to be separated, and provided
separation pay and benefits, under this section during the
fiscal year beginning in such year.
‘‘(c) SEPARATION.—Each eligible member of the armed
forces whose request for separation from active duty under