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(c) CREDITABLE MILITARY SERVICE UNDER FERS.—
Section 8401(31) of such title is amended in the flush mat-
ter by inserting ‘‘or full-time National Guard duty (as such
term is defined in section 101(d) of title 10) if such service
interrupts creditable civilian service under this subchapter
and is followed by reemployment in accordance with chap-
ter 43 of title 38 that occurs on or after August 1, 1990’’
before the semicolon.
(d) PAY DEDUCTIONS FOR MILITARY SERVICE UNDER
FERS.—Section 8422(e) of such title is amended—
(1) in paragraph (1)—
(A) by striking ‘‘Each employee’’ and in-
serting ‘‘(A) Except as provided in subparagraph
(B), each employee’’; and
(B) by adding at the end the following:
‘‘(B) In any case where military service inter-
rupts creditable civilian service under this subchapter
and reemployment pursuant to chapter 43 of title 38
occurs on or after August 1, 1990, the deposit payable
under this paragraph may not exceed the amount
that would have been deducted and withheld under
subsection (a)(1) from basic pay during civilian serv-
ice if the employee had not performed the period of
military service.’’; and
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(2) in paragraph (2), immediately before the
comma at the end of subparagraph (B), by inserting
‘‘following the period of military service for which
such deposit is due’’.
(e) TECHNICAL AMENDMENTS.—Title 5, United States
Code, is amended as follows:
(1) In section 8401(11), by striking out ‘‘1954’’
in the flush matter above clause (i) and inserting in
lieu thereof ‘‘1986’’.
(2) In section 8422(a)(2)(A)(ii), by striking out
‘‘1954’’ and inserting in lieu thereof ‘‘1986’’.
(3) In section 8432(d), by striking out ‘‘1954’’ in
the first sentence and inserting in lieu thereof ‘‘1986’’.
(4) In section 8433(i)(4), by striking out ‘‘1954’’
and inserting in lieu thereof ‘‘1986’’.
(5) In section 8440—
(A) by striking out ‘‘1954’’ in subsection (a)
and inserting in lieu thereof ‘‘1986’’; and
(B) by striking out ‘‘1954’’ in subsection (c)
and inserting in lieu thereof ‘‘1986’’.
SEC. 6. TECHNICAL AMENDMENT.
(a) TECHNICAL AMENDMENT.—Section 9(d) of Public
Law 102–16 (105 Stat. 55) is amended by striking out
‘‘Act’’ the first place it appears and inserting in lieu thereof
‘‘section’’.
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(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect as if included in Public Law
102–16 to which such amendment relates.
SEC. 7. INCREASE IN AMOUNT OF LOAN GUARANTY FOR
LOANS FOR THE PURCHASE OR CONSTRUC-
TION OF HOMES.
Subparagraphs 
(A)(i)(IV) 
and 
(B) 
of 
section
3703(a)(1) of title 38, United States Code, are each amend-
ed by striking out ‘‘$46,000’’ and inserting in lieu thereof
‘‘$50,750’’.
SEC. 8. TRANSITION RULES AND EFFECTIVE DATES.
(a) REEMPLOYMENT.—(1) Except as otherwise pro-
vided in this Act, the amendments made by this Act shall
be effective with respect to reemployments initiated on or
after the first day after the 60-day period beginning on the
date of enactment of this Act.
(2) The provisions of chapter 43 of title 38, United
States Code, in effect on the day before such date of enact-
ment, shall continue to apply to reemployments initiated
before the end of such 60-day period.
(3) In determining the number of years of service that
may not be exceeded in an employee-employer relationship
with respect to which a person seeks reemployment under
chapter 43 of title 38, United States Code, as in effect before
or after the date of enactment of this Act, there shall be
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included all years of service without regard to whether the
periods of service occurred before or after such date of enact-
ment unless the period of service is exempted by the chapter
43 that is applicable, as provided in paragraphs (1) and
(2), to the reemployment concerned.
(4) A person who initiates reemployment under chap-
ter 43 of title 38, United States Code, during or after the
60-day period beginning on the date of enactment of this
Act and whose reemployment is made in connection with
a period of service in the uniformed services that was initi-
ated before the end of such period shall be deemed to have
satisfied the notification requirement of section 4312(a)(1)
of title 38, United States Code, as provided in the amend-
ments made by this Act, if the person complied with any
applicable notice requirement under chapter 43, United
States Code, as in effect on the day before the date of enact-
ment of this Act.
(b) DISCRIMINATION.—The provisions of section 4311
of title 38, United States Code, as provided in the amend-
ments made by this Act, and the provisions of subchapter
III of chapter 43 of such title, as provided in the amend-
ments made by this Act, that are necessary for the imple-
mentation of such section 4311 shall become effective on the
date of enactment of this Act.
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(c) INSURANCE.—(1) The provisions of section 4316 of
title 38, United States Code, as provided in the amendments
made by this Act, concerning insurance coverage (other
than health) shall become effective with respect to furloughs
or leaves of absence initiated on or after the date of enact-
ment of this Act.
(2) With respect to the provisions of section 4317 of
title 38, United States Code, as provided in the amendments
made by this Act, a person on active duty on the date of
enactment of this Act, or a family member or personal rep-
resentative of such person, may, after the date of enactment
of this Act, elect to reinstate or continue a health plan as
provided in such section 4317. If such an election is made,
the health plan shall remain in effect for the remaining por-
tion of the 18-month period that began on the date of such
person’s separation from civilian employment or the period
of the person’s service in the uniformed service, whichever
is the period of lesser duration.
(d) DISABILITY.—(1) Section 4313(a)(3) of chapter 43
of title 38, United States Code, as provided in the amend-
ments made by this Act, shall apply to reemployments initi-
ated on or after August 1, 1990.
(2) Effective as of August 1, 1990, section 4307 of title
38, United States Code (as in effect on the date of enactment
of this Act), is repealed, and the table of sections at the
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beginning of chapter 43 of such title (as in effect on the
date of enactment of this Act) is amended by striking out
the item relating to section 4307.
(e) INVESTIGATIONS AND SUBPOENAS.—The provisions
of section 4326 of title 38, United States Code, as provided
in the amendments made by this Act, shall become effective
on the date of the enactment of this Act and apply to any
matter pending with the Secretary of Labor under section
4305 of title 38, United States Code, as of that date.
(f) PREVIOUS ACTIONS.—Except as otherwise pro-
vided, the amendments made by this Act do not affect
reemployments that were initiated, rights, benefits, and du-
ties that matured, penalties that were incurred, and pro-
ceedings that begin before the end of the 60-day period re-
ferred to in subsection (a).
(g) RIGHTS AND BENEFITS RELATIVE TO NOTICE OF
INTENT NOT TO RETURN.—Section 4316(b)(2) of title 38,
United States Code, as added by the amendments made by
this Act, applies only to the rights and benefits provided
in section 4316(b)(1)(B) and does not apply to any other
right or benefit of a person under chapter 43 of title 38,
United States Code. Such section shall apply only to per-
sons who leave a position of employment for service in the
uniformed services more than 60 days after the date of en-
actment of this Act.