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ghanistan National Security Forces should remain a 
key component of the United States and North Atlan-
tic Treaty Organization strategy in Afghanistan. 
(c) UNCLASSIFIED EXECUTIVE SUMMARY.—The report 
submitted under subsection (b) shall include an executive 
summary of the contents of the report in unclassified form. 
TITLE 
XVI—MILITARY 
COM-
PENSATION 
AND 
RETIRE-
MENT MODERNIZATION COM-
MISSION 
SEC. 1601. SHORT TITLE. 
This title may be cited as the ‘‘Military Compensation 
and Retirement Modernization Commission Act of 2012’’. 
SEC. 1602. PURPOSE. 
The purpose of this title is to establish a Commission 
to review and make recommendations to modernize the 
military compensation and retirement systems in order 
to— 
(1) ensure the long-term viability of the All-Vol-
unteer Force; 
(2) enable the quality of life for members of the 
Armed Forces and the other uniformed services and 
their families in a manner that fosters successful re-
cruitment, retention, and careers for members of the 
Armed Forces and the other uniformed services; and 
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(3) modernize and achieve fiscal sustainability 
for the compensation and retirements systems for the 
Armed Forces and the other uniformed services for the 
21st century. 
SEC. 1603. DEFINITIONS. 
In this title: 
(1) The term ‘‘military compensation and retire-
ment systems’’ means the military compensation sys-
tem and the military retirement system. 
(2) The term ‘‘military compensation system’’ 
means provisions of law providing eligibility for and 
the computation of military compensation, including 
regular military compensation, special and incentive 
pays and allowances, medical and dental care, edu-
cational assistance and related benefits, and com-
missary and exchange benefits and related benefits 
and activities. 
(3) The term ‘‘military retirement system’’ 
means retirement benefits, including retired pay 
based upon service in the uniformed services and sur-
vivor annuities based upon such service. 
(4) The term ‘‘Armed Forces’’ has the meaning 
given the term ‘‘armed forces’’ in section 101(a)(4) of 
title 10, United States Code. 
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(5) The term ‘‘uniformed services’’ has the mean-
ing given that term in section 101(a)(5) of title 10, 
United States Code. 
(6) The term ‘‘Secretary’’ means the Secretary of 
Defense. 
(7) The term ‘‘Commission’’ means the commis-
sion established under section 1604. 
(8) The term ‘‘Commission establishment date’’ 
means the first day of the first month beginning on 
or after the date of the enactment of this Act. 
(9) The terms ‘‘veterans service organization’’ 
and ‘‘military-related advocacy group or association’’ 
mean an organization the primary purpose of which 
is to advocate for veterans, military personnel, mili-
tary retirees, or military families. 
SEC. 1604. MILITARY COMPENSATION AND RETIREMENT 
MODERNIZATION COMMISSION. 
(a) ESTABLISHMENT.—There is established in the exec-
utive branch an independent commission to be known as 
the Military Compensation and Retirement Modernization 
Commission. The Commission shall be considered an inde-
pendent establishment of the Federal Government as defined 
by section 104 of title 5, United States Code, and a tem-
porary organization under section 3161 of such title. 
(b) APPOINTMENT.— 
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(1) IN GENERAL.— 
(A) MEMBERS.—The Commission shall be 
composed of nine members appointed by the 
President, in consultation with— 
(i) the Chairman and Ranking Mem-
ber of the Committee on Armed Services of 
the Senate; and 
(ii) the Chairman and Ranking Mem-
ber of the Committee on Armed Services of 
the House of Representatives. 
(B) DEADLINE
FOR
APPOINTMENT.—The 
President shall make appointments to the Com-
mission not later than six months after the Com-
mission establishment date. 
(C) TERMINATION FOR LACK OF APPOINT-
MENT.—If the President does not make all ap-
pointments to the Commission on or before the 
date specified in subparagraph (B), the Commis-
sion shall be terminated. 
(2) 
QUALIFICATIONS
OF
INDIVIDUALS
AP-
POINTED.—In appointing individuals to the Commis-
sion, the President shall— 
(A) ensure that— 
(i) there are members with significant 
expertise in Federal compensation and re-
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tirement systems, including the military 
compensation and retirement systems, pri-
vate sector compensation, retirement, or 
human resource systems, and actuarial 
science; 
(ii) at least five members have active- 
duty military experience, including— 
(I) at least one of whom has ac-
tive-duty experience as an enlisted 
member; and 
(II) at least one of whom has ex-
perience as a member of a reserve com-
ponent; and 
(iii) at least one member was the 
spouse of a member of the Armed Forces, or, 
in the sole determination of the President, 
has significant experience in military fam-
ily matters; and 
(B) select individuals who are knowledge-
able and experienced with the uniformed services 
and military compensation and retirement 
issues. 
(3) LIMITATION.—The President may not ap-
point to the Commission an individual who within 
the preceding year has been employed by a veterans 
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service organization or military-related advocacy 
group or association. 
(4) CHAIR.—At the time the President appoints 
the members of the Commission, the President shall 
designate one of the members to be Chair of the Com-
mission. The individual designated as Chair of the 
Commission shall be a person who has expertise in 
the military compensation and retirement systems. 
The Chair, or the designee of the Chair, shall preside 
over meetings of the Commission and be responsible 
for establishing the agenda of Commission meetings 
and hearings. 
(c) TERMS.—Members shall be appointed for the life 
of the Commission (subject to subsection (b)(3)). A vacancy 
in the Commission shall not affect its powers, and shall be 
filled in the same manner as the original appointment was 
made. 
(d) STATUS
AS
FEDERAL
EMPLOYEES.—Notwith-
standing the requirements of section 2105 of title 5, United 
States Code, including the required supervision under sub-
section (a)(3) of such section, the members of the Commis-
sion shall be deemed Federal employees. 
SEC. 1605. COMMISSION HEARINGS AND MEETINGS. 
(a) IN GENERAL.—The Commission shall conduct 
hearings on the recommendations it is taking under consid-
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eration. Any such hearing, except a hearing in which classi-
fied information is to be considered, shall be open to the 
public. Any hearing open to the public shall be announced 
on a Federal website at least 14 days in advance. For all 
hearings open to the public, the Commission shall release 
an agenda and a listing of materials relevant to the topics 
to be discussed. 
(b) MEETINGS.— 
(1) INITIAL
MEETING.—The Commission shall 
hold its initial meeting not later than 30 days after 
the date as of which all members have been appointed. 
(2) SUBSEQUENT
MEETINGS.—After its initial 
meeting, the Commission shall meet upon the call of 
the Chair or a majority of its members. 
(3) PUBLIC
MEETINGS.—Each meeting of the 
Commission shall be held in public unless any mem-
ber objects. 
(c) QUORUM.—Five members of the Commission shall 
constitute a quorum, but a lesser number may hold hear-
ings. 
(d) PUBLIC COMMENTS.— 
(1) IN
GENERAL.—The Commission shall seek 
written comments from the general public and inter-
ested parties on measures to modernize the military 
compensation and retirement systems. Comments 
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shall be requested through a solicitation in the Fed-
eral Register and announcement on the Internet 
website of the Commission. 
(2) PERIOD FOR SUBMITTAL.—The period for the 
submittal of comments pursuant to the solicitation 
under paragraph (1) shall end not earlier than 30 
days after the date of the solicitation and shall end 
on or before the date on which the Secretary transmits 
the recommendations of the Secretary to the Commis-
sion under section 1606(b). 
(3) USE BY COMMISSION.—The Commission shall 
consider the comments submitted under this sub-
section when developing its recommendations. 
SEC. 1606. PRINCIPLES AND PROCEDURE FOR COMMISSION 
RECOMMENDATIONS. 
(a) PRINCIPLES.— 
(1) CONTEXT
OF
COMMISSION
REVIEW.—The 
Commission shall conduct a review of the military 
compensation and retirement systems in the context of 
all elements of the current military compensation and 
retirement systems, force management objectives, and 
changes in life expectancy and the labor force. 
(2) 
DEVELOPMENT
OF
COMMISSION
REC-
OMMENDATIONS.— 
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(A) 
CONSISTENCY
WITH
PRESIDENTIAL 
PRINCIPLES.—The Commission shall develop rec-
ommendations for modernizing the military com-
pensation and retirement systems that are con-
sistent with principles established by the Presi-
dent under paragraph (3). 
(B) GRANDFATHERING.—The recommenda-
tions of the Commission may not apply to any 
person who first becomes a member of a uni-
formed service before the date of the enactment of 
a military compensation and retirement mod-
ernization Act pursuant to this title (except that 
such recommendations may include provisions 
allowing for such a member to make a voluntary 
election to be covered by some or all of the provi-
sions of such recommendations). 
(3) PRESIDENTIAL PRINCIPLES.—Not later than 
five months after the Commission establishment date, 
the President shall establish and transmit to the Com-
mission and Congress principles for modernizing the 
military compensation and retirement systems. The 
principles established by the President shall address 
the following: 
(A) Maintaining recruitment and retention 
of the best military personnel. 
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(B) Modernizing the active and reserve 
military compensation and retirement systems. 
(C) Differentiating between active and re-
serve military service. 
(D) Differentiating between service in the 
Armed Forces and service in the other uniformed 
services. 
(E) Assisting with force management. 
(F) Ensuring the fiscal sustainability of the 
military compensation and retirement systems. 
(b) SECRETARY OF DEFENSE RECOMMENDATIONS.— 
(1) IN GENERAL.—Not later than nine months 
after the Commission establishment date, the Sec-
retary shall transmit to the Commission the rec-
ommendations of the Secretary for military com-
pensation and retirement modernization. The Sec-
retary shall concurrently transmit the recommenda-
tions to Congress. 
(2) DEVELOPMENT OF RECOMMENDATIONS.—The 
Secretary shall develop the recommendations of the 
Secretary under paragraph (1)— 
(A) on the basis of the principles established 
by the President pursuant to subsection (a)(3); 
(B) in consultation with the Secretary of 
Homeland 
Security, 
with 
respect 
to 
rec-
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ommendations concerning members of the Coast 
Guard; 
(C) in consultation with the Secretary of 
Health and Human Services, with respect to rec-
ommendations concerning members of the Public 
Health Service; 
(D) in consultation with the Secretary of 
Commerce, with respect to recommendations con-
cerning members of the National Oceanic and 
Atmospheric Administration; and 
(E) in consultation with the Director of the 
Office of Management and Budget. 
(3) JUSTIFICATION.—The Secretary shall include 
with the recommendations under paragraph (1) the 
justification of the Secretary for each recommenda-
tion. 
(4) AVAILABILITY OF INFORMATION.—The Sec-
retary shall make available to the Commission and to 
Congress the information used by the Secretary to 
prepare the recommendations of the Secretary under 
paragraph (1). 
(c) COMMISSION HEARINGS ON RECOMMENDATIONS OF 
SECRETARY.—After receiving from the Secretary the rec-
ommendations of the Secretary for military compensation 
and retirement modernization pursuant to subsection (b), 
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the Commission shall conduct public hearings on the rec-
ommendations. 
(d) COMMISSION REPORT AND RECOMMENDATIONS.— 
(1) REPORT.—Not later than 15 months after the 
Commission establishment date, the Commission shall 
transmit to the President a report containing the 
findings and conclusions of the Commission, together 
with the recommendations of the Commission for the 
modernization of the military compensation and re-
tirement systems. The Commission shall include in 
the report legislative language to implement the rec-
ommendations of the Commission. The findings and 
conclusions in the report shall be based on the review 
and analysis by the Commission of the recommenda-
tions of the Secretary. 
(2) REQUIREMENT
FOR
APPROVAL.—The rec-
ommendations of the Commission must be approved 
by at least five members of the Commission before the 
recommendations may be transmitted to the President 
under paragraph (1). 
(3) PROCEDURES FOR CHANGING RECOMMENDA-
TIONS OF SECRETARY.—The Commission may make a 
change described in paragraph (4) in the rec-
ommendations made by the Secretary only if the 
Commission— 
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(C) The revised legislative language trans-
mitted to the President under paragraph (3)(B). 
(5) TERMINATION OF COMMISSION.—If the Presi-
dent does not transmit to Congress an approval and 
certification described in paragraph (2) or (4) in ac-
cordance with the applicable deadline under such 
paragraph, the Commission shall be terminated not 
later than one month after the expiration of the pe-
riod for transmittal of a report under paragraph (4). 
(b) CONSIDERATION BY CONGRESS.— 
(1) RULEMAKING.—The provisions of this sub-
section are enacted by Congress— 
(A) as an exercise of the rulemaking power 
of the Senate and the House of Representatives, 
respectively, and as such they shall be considered 
as part of the rules of each House, respectively, 
or of that House to which they specifically apply, 
and such rules supersede other rules only to the 
extent that they are inconsistent therewith; and 
(B) with full recognition of the constitu-
tional right of either House to change such rules 
(so far as relating to the procedure of that 
House) at any time, in the same manner and to 
the same extent as in the case of any other rule 
of that House. 
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(2) MILITARY COMPENSATION AND RETIREMENT 
MODERNIZATION BILL.—For the purpose of this sub-
section, the term ‘‘military compensation and retire-
ment modernization bill’’ means only a bill consisting 
of the proposed legislative language recommended by 
the Commission and submitted to Congress by the 
President pursuant to subsection (a). 
(3) INTRODUCTION OF LEGISLATIVE PROPOSAL IN 
HOUSE AND SENATE.—If the President transmits to 
Congress under subsection (a) a copy of the rec-
ommendations of the Commission (including the legis-
lative language recommended by the Commission), to-
gether with a certification of the approval of the 
President of the recommendations, the proposed legis-
lative language recommended by the Commission and 
submitted to Congress by the President pursuant to 
that subsection— 
(A) shall be introduced in the Senate (by re-
quest) on the next day on which the Senate is in 
session by the chairman of the Committee on 
Armed Services of the Senate; and 
(B) shall be introduced in the House of 
Representatives (by request) on the next legisla-
tive day by the chair of the Committee on Armed 
Services of the House of Representatives. 
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(4) CONSIDERATION
IN
THE
HOUSE
OF
REP-
RESENTATIVES.— 
(A) REFERRAL AND REPORTING.—Any com-
mittee of the House of Representatives to which 
the military compensation and retirement mod-
ernization bill is referred shall report it to the 
House without amendment not later than the 
end of the 60-day period beginning on the date 
on which the bill is introduced. If a committee 
fails to report the bill to the House within that 
period, it shall be in order to move that the 
House discharge the committee from further con-
sideration of the bill. Such a motion shall not be 
in order after the last committee authorized to 
consider the bill reports it to the House or after 
the House has disposed of a motion to discharge 
the bill. The previous question shall be considered 
as ordered on the motion to its adoption without 
intervening motion except 20 minutes of debate 
equally divided and controlled by the proponent 
and an opponent. If such a motion is adopted, 
the House shall proceed immediately to consider 
the Commission bill in accordance with subpara-
graphs (B) and (C). A motion to reconsider the 
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vote by which the motion is disposed of shall not 
be in order. 
(B) PROCEEDING
TO
CONSIDERATION.— 
After the last committee authorized to consider a 
military compensation and retirement mod-
ernization bill reports it to the House or has 
been discharged (other than by motion) from its 
consideration, it shall be in order to move to pro-
ceed to consider the military compensation and 
retirement modernization bill in the House. Such 
a motion shall not be in order after the House 
has disposed of a motion to proceed with respect 
to the military compensation and retirement 
modernization bill. The previous question shall 
be considered as ordered on the motion to its 
adoption without intervening motion. A motion 
to reconsider the vote by which the motion is dis-
posed of shall not be in order. 
(C) CONSIDERATION.—The military com-
pensation and retirement modernization bill 
shall be considered as read. All points of order 
against the bill and against its consideration are 
waived. The previous question shall be considered 
as ordered on the bill to its passage without in-
tervening motion except 2 hours of debate equally 
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divided and controlled by the proponent and an 
opponent and one motion to limit debate on the 
bill. A motion to reconsider the vote on passage 
of the bill shall not be in order. 
(D) VOTE ON PASSAGE.—The vote on pas-
sage of the military compensation and retire-
ment modernization bill shall occur not later 
than the end of the 90-day period beginning on 
the date on which the bill is introduced. 
(5) EXPEDITED PROCEDURE IN THE SENATE.— 
(A) COMMITTEE CONSIDERATION.—A mili-
tary compensation and retirement modernization 
bill introduced in the Senate under subsection 
(a) shall be jointly referred to the committee or 
committees of jurisdiction, which committees 
shall report the bill without any revision and 
with a favorable recommendation, an unfavor-
able recommendation, or without recommenda-
tion, not later than the end of the 60-day period 
beginning on the date on which the bill is intro-
duced. If any committee fails to report the bill 
within that period, that committee shall be auto-
matically discharged from consideration of the 
bill, and the bill shall be placed on the appro-
priate calendar. 
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(B) 
MOTION
TO
PROCEED.—Notwith-
standing Rule XXII of the Standing Rules of the 
Senate, it is in order, not later than 2 days of 
session after the date on which a military com-
pensation and retirement modernization bill is 
reported or discharged from all committees to 
which it was referred, for the majority leader of 
the Senate or the majority leader’s designee to 
move to proceed to the consideration of the mili-
tary compensation and retirement modernization 
bill. It shall also be in order for any Member of 
the Senate to move to proceed to the consider-
ation of the military compensation and retire-
ment modernization bill at any time after the 
conclusion of such 2-day period. A motion to 
proceed is in order even though a previous mo-
tion to the same effect has been disagreed to. All 
points of order against the motion to proceed to 
the military compensation and retirement mod-
ernization bill are waived. The motion to proceed 
is not debatable. The motion is not subject to a 
motion to postpone. A motion to reconsider the 
vote by which the motion is agreed to or dis-
agreed to shall not be in order. If a motion to 
proceed to the consideration of the military com-
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