214 
recommendations resulting from the pilot program. The 
Secretary shall submit those reports to the Committees on 
Armed Services of the Senate and the House of Representa-
tives. 
SEC. 622. ENHANCEMENT OF TEMPORARY PROGRAM OF 
VOLUNTARY SEPARATION PAY AND BENE-
FITS. 
(a) ONE-YEAR EXTENSION OF AUTHORITY.—Section 
1175a(k)(1) of title 10, United States Code, is amended by 
striking ‘‘December 31, 2008,’’ and inserting ‘‘December 31, 
2009’’. 
(b) EXPANSION OF ELIGIBLE MEMBERS.—Section 643 
of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109–163; 119 Stat. 3306) is amended 
by striking subsection (b). 
SEC. 623. ADDITIONAL AUTHORITIES AND INCENTIVES TO 
ENCOURAGE RETIRED MEMBERS AND RE-
SERVE COMPONENT MEMBERS TO VOLUN-
TEER TO SERVE ON ACTIVE DUTY IN HIGH- 
DEMAND, LOW-DENSITY ASSIGNMENTS. 
(a) AUTHORITY TO OFFER INCENTIVE BONUS.—Chap-
ter 5 of title 37, United States Code, is amended by adding 
at the end the following new section: 
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‘‘§ 329. Incentive bonus: retired members and reserve 
component 
members 
volunteering 
for 
high-demand, low-density assignments 
‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Secretary 
of Defense may pay a bonus under this section to a retired 
member or former member of the Army, Navy, Air Force, 
or Marine Corps or to a member of a reserve component 
of the Army, Navy, Air Force, or Marine Corps (who is 
not otherwise serving on active duty) who executes a written 
agreement to serve on active duty for a period specified in 
the agreement in an assignment intended to alleviate a 
high-demand, low-density military capability or in any 
other specialty designated by the Secretary as critical to 
meet wartime or peacetime requirements. 
‘‘(b) MAXIMUM AMOUNT OF BONUS.—A bonus under 
subsection (a) and any incentive developed under subsection 
(d) may not exceed $50,000. 
‘‘(c) METHODS OF PAYMENT.—At the election of the 
Secretary, a bonus under subsection (a) and any incentive 
developed under subsection (d) shall be paid or provided— 
‘‘(1) when the member commences service on ac-
tive duty; or 
‘‘(2) in annual installments in such amounts as 
may be determined by the Secretary. 
‘‘(d) DEVELOPMENT OF ADDITIONAL INCENTIVES.—(1) 
The Secretary may develop and provide to members referred 
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216 
to in subsection (a) additional incentives to encourage such 
members to return to active duty in assignments intended 
to alleviate a high-demand, low-density military capability 
or in others specialties designated by the Secretary as crit-
ical to meet wartime or peacetime requirements. 
‘‘(2) The provision of any incentive developed under 
this subsection shall be subject to an agreement, as required 
for bonuses under subsection (a). 
‘‘(3) Not later than 30 days before first offering any 
incentive developed under this subsection, the Secretary 
shall submit to the congressional defense committees a re-
port that contains a description of that incentive and an 
explanation why a bonus under subsection (a) or other pay 
and allowances are not sufficient to alleviate the high-de-
mand, low-density military capability or otherwise fill crit-
ical military specialties. 
‘‘(e) RELATIONSHIP
TO OTHER PAY
AND ALLOW-
ANCES.—A bonus or other incentive paid or provided to a 
member under this section is in addition to any other pay 
and allowances to which the member is entitled. 
‘‘(f) REPAYMENT.—A member who does not complete 
the period of active duty specified in the agreement executed 
under subsection (a) or (d) shall be subject to the repayment 
provisions of section 303a(e) of this title. 
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217 
‘‘(g) HIGH-DEMAND, LOW-DENSITY ASSIGNMENT DE-
FINED.—In this section, the term ‘high-demand, low-density 
military capability’ means a combat, combat support or 
service support capability, unit, system, or occupational 
specialty that the Secretary determines has funding, equip-
ment, or personnel levels that are substantially below the 
levels required to fully meet or sustain actual or expected 
operational requirements set by regional commanders. 
‘‘(h) REGULATIONS.—The Secretary of Defense may 
prescribe such regulations as the Secretary considers nec-
essary to carry out this section. 
‘‘(i) TERMINATION
OF AUTHORITY.—No agreement 
under subsection (a) or (d) may be entered into after De-
cember 31, 2010.’’. 
(b) TEMPORARY AUTHORITY
TO ORDER RETIRED 
MEMBERS TO ACTIVE DUTY IN HIGH-DEMAND, LOW-DEN-
SITY ASSIGNMENTS.—Section 688a of title 10, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by striking the first sentence and insert-
ing the following new sentence: ‘‘The Secretary of 
a military department may order to active duty 
a retired member who agrees to serve on active 
duty in an assignment intended to alleviate a 
high-demand, low-density military capability or 
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218 
in any other specialty designated by the Sec-
retary as critical to meet wartime or peacetime 
requirements.’’; and 
(B) in the second sentence, by striking ‘‘offi-
cer’’ both places it appears and inserting ‘‘mem-
ber’’; 
(2) in subsection (b), by striking ‘‘an officer’’ 
and inserting ‘‘a member’’; 
(3) in subsection (c), by striking ‘‘500 officers’’ 
and inserting ‘‘1,000 members’’; 
(4) in subsection (d), by striking ‘‘officer’’ and 
inserting ‘‘member’’; 
(5) in subsection (e), by striking ‘‘Officers’’ and 
inserting ‘‘Retired members’’; 
(6) in subsection (f)— 
(A) by striking ‘‘An officer’’ and inserting 
‘‘A retired member’’; and 
(B) by striking ‘‘September 30, 2008’’ and 
inserting ‘‘December 31, 2010’’; and 
(7) by adding at the end the following new sub-
section: 
‘‘(g) HIGH-DEMAND, LOW-DENSITY ASSIGNMENT DE-
FINED.—In this section, the term ‘high-demand, low-density 
military capability’ means a combat, combat support or 
service support capability, unit, system, or occupational 
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219 
specialty that the Secretary of Defense determines has fund-
ing, equipment, or personnel levels that are substantially 
below the levels required to fully meet or sustain actual or 
expected operational requirements set by regional com-
manders.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) TITLE 37.—The table of sections at the begin-
ning of chapter 5 of title 37, United States Code, is 
amended by adding at the end the following new item: 
‘‘329. Incentive bonus: retired members and reserve component members volun-
teering for high-demand, low-density assignments.’’. 
(2) TITLE 10.—(A) The heading of section 688a 
of title 10, United States Code, is amended to read as 
follows: 
‘‘§ 688a. Retired members: temporary authority to 
order to active duty in high-demand, low- 
density assignments’’. 
(B) The table of sections at the beginning of 
chapter 39 of such title is amended by striking the 
item relating to section 688a and inserting the fol-
lowing new item: 
‘‘688a. Retired members: temporary authority to order to active duty in high-de-
mand, low-density assignments.’’. 
(d) EFFECTIVE DATE.—No agreement may be entered 
into under section 329 of title 37, United States Code, as 
added by subsection (a), before October 1, 2006. 
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220 
(e) LIMITATION
ON FISCAL YEAR 2007 OBLIGA-
TIONS.—During fiscal year 2007, obligations incurred 
under section 329 of title 37, United States Code, as added 
by subsection (a), to provide bonuses or other incentives to 
retired members and former members of the Army, Navy, 
Air Force, or Marine Corps or to members of the reserve 
components of the Army, Navy, Air Force, and Marine 
Corps may not exceed $5,000,000. 
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. AUTHORITY TO PAY COSTS ASSOCIATED WITH DE-
LIVERY OF MOTOR VEHICLE TO STORAGE LO-
CATION SELECTED BY MEMBER AND SUBSE-
QUENT REMOVAL OF VEHICLE. 
Subsection (b) of section 2634 of title 10, United States 
Code, is amended— 
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) If a member elects to have a motor vehicle de-
scribed in subsection (a) stored at a location other than a 
storage location approved by the Secretary concerned, the 
delivery and removal costs described in paragraph (3) are 
the only costs that may be paid by the Secretary. The deliv-
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221 
ery or removal costs paid by the Secretary under this para-
graph may not exceed the total cost that would have been 
incurred by the United States had the storage location ap-
proved by the Secretary been used to store the motor vehicle. 
The United States is not responsible for any costs associated 
with the actual storage of the motor vehicle at the unap-
proved location.’’. 
SEC. 632. TRANSPORTATION OF ADDITIONAL MOTOR VEHI-
CLE OF MEMBERS ON CHANGE OF PERMA-
NENT STATION TO OR FROM NONFOREIGN 
AREAS OUTSIDE THE CONTINENTAL UNITED 
STATES. 
(a) AUTHORITY TO TRANSPORT ADDITIONAL MOTOR 
VEHICLE.—Subsection (a) of section 2634 of title 10, 
United States Code, is amended— 
(1) by striking the sentence following paragraph 
(4); 
(2) by redesignating paragraphs (1), (2), (3), 
and (4) as subparagraphs (A), (B), (C), and (D), re-
spectively; 
(3) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(4) by adding at the end the following new para-
graph: 
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222 
‘‘(2) One additional motor vehicle of a member (or a 
dependent of the member) may be transported as provided 
in paragraph (1) if— 
‘‘(A) the member is ordered to make a change of 
permanent station to or from a nonforeign area out-
side the continental United States and the member 
has at least one dependent of driving age who will use 
the motor vehicle; or 
‘‘(B) the Secretary concerned determines that a 
replacement for the motor vehicle transported under 
paragraph (1) is necessary for reasons beyond the 
control of the member and is in the interest of the 
United States and the Secretary approves the trans-
portation in advance.’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.— 
Such subsection is further amended— 
(1) by striking ‘‘his dependents’’ and inserting 
‘‘a dependent of the member’’; 
(2) by striking ‘‘him’’ and inserting ‘‘the mem-
ber’’; 
(3) by striking ‘‘his)’’ and inserting ‘‘the mem-
ber)’’; 
(4) by striking ‘‘his new’’ and inserting ‘‘the 
member’s new’’; and 
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223 
(5) in paragraph (1)(C), as redesignated by sub-
section (a), by striking ‘‘clauses (1) and (2)’’ and in-
serting ‘‘subparagraphs (A) and (B)’’. 
(c) EFFECTIVE DATE.—Paragraph (2)(A) of sub-
section (a) of section 2634 of title 10, United States Code, 
as added by subsection (a)(4), shall apply with respect to 
orders issued on or after the date of the enactment of this 
Act for members of the Armed Forces to make a change of 
permanent station to or from nonforeign areas outside the 
continental United States. 
SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES 
FOR TRANSPORTATION OF FAMILY MEMBERS 
INCIDENT TO ILLNESS OR INJURY OF MEM-
BERS. 
Section 411h(b)(1) of title 37, United States Code, is 
amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by striking the period at the end of subpara-
graph (D) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) a person related to the member as described 
in subparagraph (A), (B), (C), or (D) who is also a 
member of the uniformed services.’’. 
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224 
Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. MILITARY SURVIVOR BENEFIT PLAN BENE-
FICIARIES 
UNDER 
INSURABLE 
INTEREST 
COVERAGE. 
(a) AUTHORITY TO ELECT NEW BENEFICIARY.—Sec-
tion 1448(b)(1) of title 10, United States Code, is amend-
ed— 
(1) by inserting ‘‘or under subparagraph (G) of 
this paragraph’’ in the second sentence of subpara-
graph (E) before the period at the end; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(G) ELECTION OF NEW BENEFICIARY UPON 
DEATH OF PREVIOUS BENEFICIARY.— 
‘‘(i) AUTHORITY
FOR
ELECTION.—If 
the reason for discontinuation in the Plan 
is the death of the beneficiary, the partici-
pant in the Plan may elect a new bene-
ficiary. Any such beneficiary must be a nat-
ural person with an insurable interest in 
the participant. Such an election may be 
made only during the 180-day period begin-
ning on the date of the death of the previous 
beneficiary. 
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225 
‘‘(ii) PROCEDURES.—Such an election 
shall be in writing, signed by the partici-
pant, and made in such form and manner 
as the Secretary concerned may prescribe. 
Such an election shall be effective the first 
day of the first month following the month 
in which the election is received by the Sec-
retary. 
‘‘(iii) VITIATION OF ELECTION BY PAR-
TICIPANT WHO DIES WITHIN TWO YEARS OF 
ELECTION.—If a person providing an annu-
ity under a election under clause (i) dies be-
fore the end of the two-year period begin-
ning on the effective date of the election— 
‘‘(I) the election is vitiated; and 
‘‘(II) the amount by which the 
person’s retired pay was reduced under 
section 1452 of this title that is attrib-
utable to the election shall be paid in 
a lump sum to the person who would 
have been the deceased person’s bene-
ficiary under the vitiated election if 
the deceased person had died after the 
end of such two-year period.’’. 
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226 
(b) CHANGE IN PREMIUM FOR COVERAGE OF NEW 
BENEFICIARY.—Section 1452(c) of such title is amended by 
adding at the end the following new paragraph: 
‘‘(5) RULE FOR DESIGNATION OF NEW INSUR-
ABLE INTEREST BENEFICIARY FOLLOWING DEATH OF 
ORIGINAL
BENEFICIARY.—The Secretary of Defense 
shall prescribe in regulations premiums which a par-
ticipant 
making 
an 
election 
under 
section 
1448(b)(1)(G) of this title shall be required to pay for 
participating in the Plan pursuant to that election. 
The total amount of the premiums to be paid by a 
participant under the regulations shall be equal to the 
sum of the following: 
‘‘(A) The total additional amount by which 
the retired pay of the participant would have 
been reduced before the effective date of the elec-
tion if the original beneficiary (i) had not died 
and had been covered under the Plan through the 
date of the election, and (ii) had been the same 
number of years younger than the participant (if 
any) as the new beneficiary designated under the 
election. 
‘‘(B) Interest on the amounts by which the 
retired pay of the participant would have been 
so reduced, computed from the dates on which 
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227 
the retired pay would have been so reduced at 
such rate or rates and according to such method-
ology as the Secretary of Defense determines rea-
sonable. 
‘‘(C) Any additional amount that the Sec-
retary determines necessary to protect the actu-
arial soundness of the Department of Defense 
Military Retirement Fund against any increased 
risk for the fund that is associated with the elec-
tion.’’. 
(c) TRANSITION.— 
(1) TRANSITION PERIOD.—In the case of a par-
ticipant in the Survivor Benefit Plan who made a 
covered insurable-interest election (as defined in para-
graph (2)) and whose designated beneficiary under 
that election dies before the date of the enactment of 
this Act or during the 18-month period beginning on 
such date, the time period applicable for purposes of 
the limitation in the third sentence of subparagraph 
(G)(i) of section 1448(b)(1) of title 10, United States 
Code, as added by subsection (a), shall be the two- 
year period beginning on the date of the enactment of 
this Act (rather than the 180-day period specified in 
that sentence). 
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228 
(2) 
COVERED
INSURABLE-INTEREST
ELEC-
TIONS.—For purposes of paragraph (1), a covered in-
surable-interest election is an election under section 
1448(b)(1) of title 10, United States Code, made be-
fore the date of the enactment of this Act, or during 
the 18-month period beginning on such date, by a 
participant in the Survivor Benefit Plan to provide 
an annuity under that plan to a natural person with 
an insurable interest in that person. 
(3) SURVIVOR BENEFIT PLAN.—For purposes of 
this subsection, the term ‘‘Survivor Benefit Plan’’ 
means the program under subchapter II of chapter 73 
of title 10, United States Code. 
SEC. 642. RETROACTIVE PAYMENT OF ADDITIONAL DEATH 
GRATUITY FOR CERTAIN MEMBERS NOT PRE-
VIOUSLY COVERED. 
(a) SPECIFICATION OF ADDITIONAL MEMBERS COV-
ERED.—Section 1478(d)(2) of title 10, United States Code, 
is amended by striking ‘‘May 11, 2005’’ and inserting ‘‘Au-
gust 31, 2005’’. 
(b) FUNDING.—Amounts for payments under section 
1478(d) of title 10, United States Code, as amended by sub-
section (a), with respect to deaths during the period begin-
ning on May 12, 2005, and ending on August 31, 2005, 
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229 
may be derived from appropriations available to for the De-
partment of Defense for fiscal year 2006 or fiscal year 2007. 
SEC. 643. EQUITY IN COMPUTATION OF DISABILITY RE-
TIRED PAY FOR RESERVE COMPONENT MEM-
BERS WOUNDED IN ACTION. 
Section 1208(b) of title 10, United States Code, is 
amended by adding at the end the following new sentence: 
‘‘However, in the case of such a member who is retired 
under this chapter, or whose name is placed on the tem-
porary disability retired list under this chapter, because of 
a disability incurred after the date of the enactment of this 
sentence for which the member is awarded the Purple Heart, 
the member shall be credited, for the purposes of this chap-
ter, with the number of years of service that would be count-
ed if computing the member’s years of service under section 
12732 of this title.’’. 
Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits 
SEC. 651. TREATMENT OF PRICE SURCHARGES OF TOBACCO 
PRODUCTS AND CERTAIN OTHER MERCHAN-
DISE SOLD AT COMMISSARY STORES. 
(a) MERCHANDISE PROCURED FROM EXCHANGES.— 
Subsection (c)(3) of section 2484 of title 10, United States 
Code, is amended— 
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230 
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘Subsections’’ and inserting ‘‘Ex-
cept as provided in subparagraph (B), subsections’’; 
and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) When a military exchange is the vendor of to-
bacco products or other merchandise authorized for sale in 
a commissary store under paragraph (1), any revenue above 
the cost of procuring the merchandise shall be allocated as 
if the revenue were a uniform sales price surcharge de-
scribed in subsection (d).’’. 
(b) MERCHANDISE
TREATED
AS
NONCOMMISSARY 
STORE INVENTORY.—Subsection (g) of such section is 
amended— 
(1) by inserting ‘‘(1)’’ before ‘‘Notwithstanding’’; 
(2) by striking ‘‘Subsections’’ and inserting ‘‘Ex-
cept as provided in paragraph (2), subsections’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) When tobacco products are authorized for sale in 
a commissary store as noncommissary store inventory, any 
revenue above the cost of procuring the tobacco products 
shall be allocated as if the revenue were a uniform sales 
price surcharge described in subsection (d).’’. 
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