I 
111TH CONGRESS 
1ST SESSION H. R. 2302 
To amend title 10, United States Code, to limit recoupments of separation 
pay, special separation benefits, and voluntary separation incentive from 
members of the Armed Forces subsequently receiving retired or retainer 
pay. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 7, 2009 
Ms. SHEA-PORTER (for herself, Mr. HODES, and Mrs. KIRKPATRICK of Ari-
zona) introduced the following bill; which was referred to the Committee 
on Armed Services 
A BILL 
To amend title 10, United States Code, to limit recoupments 
of separation pay, special separation benefits, and vol-
untary separation incentive from members of the Armed 
Forces subsequently receiving retired or retainer pay. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Military Retired Pay 
Fairness Act of 2009’’. 
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SEC. 2. LIMITATIONS ON RECOUPMENT OF SEPARATION 
PAY, SPECIAL SEPARATION BENEFITS, AND 
VOLUNTARY SEPARATION INCENTIVE FROM 
MEMBERS SUBSEQUENTLY RECEIVING RE-
TIRED OR RETAINER PAY. 
(a) SEPARATION PAY
AND SPECIAL SEPARATION 
BENEFITS.—Section 1174(h)(1) of title 10, United States 
Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 
(2) in subparagraph (A), as so designated, by 
striking ‘‘so much of such pay as is based on the 
service for which he received separation pay under 
this section or separation pay, severance pay, or re-
adjustment pay under any other provision of law’’ 
and inserting ‘‘an amount, in such schedule of 
monthly installments as the Secretary of Defense 
shall specify taking into account the financial ability 
of the member to pay and avoiding the imposition of 
undue financial hardship on the member and mem-
ber’s dependents,’’; and 
(3) by adding at the end the following new sub-
paragraphs: 
‘‘(B) The amount deducted under subparagraph (A) 
from a payment of retired or retainer pay may not exceed 
25 percent of the amount of the member’s retired or re-
tainer pay for that month unless the member requests or 
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consents to deductions at an accelerated rate. The Sec-
retary of Defense shall consult with the member regarding 
the repayment rate to be imposed, taking into account the 
financial ability of the member to pay and avoiding the 
imposition of an undue hardship on the member and the 
member’s dependents. 
‘‘(C) The deduction of amounts from the retired or 
retainer pay of a member under this paragraph may not 
commence until the date that is 90 days after the date 
on which the Secretary of Defense notifies the member 
of the deduction of such amounts under this paragraph. 
Any notice under this subparagraph shall be designed to 
provide clear and comprehensive information on the de-
duction of amounts under this paragraph, including infor-
mation on the determination of the amount and period of 
installments under this paragraph. 
‘‘(D) The Secretary of Defense may waive the deduc-
tion of amounts from the retired or retainer pay of a mem-
ber under this paragraph if the Secretary determines that 
deduction of such amounts would result in a financial 
hardship for the member.’’. 
(b) VOLUNTARY SEPARATION INCENTIVE.—Section 
1175(e)(3) of such title is amended— 
(1) in subparagraph (A), by striking ‘‘so much 
of such pay as is based on the service for which he 
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received the voluntary separation incentive’’ and in-
serting ‘‘an amount, in such schedule of monthly in-
stallments as the Secretary of Defense or the Sec-
retary of Homeland Security, as applicable, shall 
specify taking into account the financial ability of 
the member to pay and avoiding the imposition of 
undue financial hardship on the member and mem-
ber’s dependents,’’; 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); 
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) The amount deducted under subparagraph (A) 
from a payment of retired or retainer pay may not exceed 
25 percent of the amount of the member’s retired or re-
tainer pay for that month unless the member requests or 
consents to deductions at an accelerated rate. The Sec-
retary of Defense or the Secretary of Homeland Security, 
as applicable, shall consult with the member regarding the 
repayment rate to be imposed, taking into account the fi-
nancial ability of the member to pay and avoiding the im-
position of an undue hardship on the member and the 
member’s dependents.’’; and 
(4) by adding at the end the following new sub-
paragraphs: 
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‘‘(D) The deduction of amounts from the retired or 
retainer pay of a member under this paragraph may not 
commence until the date that is 90 days after the date 
on which the Secretary of Defense or the Secretary of 
Homeland Security, as applicable, notifies the member of 
the deduction of such amounts under this paragraph. Any 
notice under this subparagraph shall be designed to pro-
vide clear and comprehensive information on the deduction 
of amounts under this paragraph, including information 
on the determination of the amount and period of install-
ments under this paragraph. 
‘‘(E) The Secretary of Defense or the Secretary of 
Homeland Security, as applicable, may waive the deduc-
tion of amounts from the retired or retainer pay of a mem-
ber under this paragraph if the Secretary determines that 
deduction of such amounts would result in a financial 
hardship for the member.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the first day of the first 
month beginning on or after the date of the enactment 
of this Act and apply to deductions made from the retired 
or retainer pay of members of the uniformed services for 
that month and subsequent months. 
Æ 
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