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subsection (b)(1)(E) is approved shall be separated from ac-
tive duty.
‘‘(d) ADDITIONAL SERVICE IN READY RESERVE.—Of
the number of members of the armed forces to be separated
from active duty in a fiscal year, as determined under sub-
section (b)(3), the Secretary concerned shall determine a
number of such members, in such skill and grade combina-
tions as the Secretary concerned shall designate, who shall
serve in the Ready Reserve, after separation from active
duty, for a period of not less than three years, as a condi-
tion of the receipt of voluntary separation pay and benefits
under this section.
‘‘(e) SEPARATION PAY AND BENEFITS.—(1) A member
of the armed forces who is separated from active duty under
subsection (c) shall be paid voluntary separation pay in
accordance with subsection (g) in an amount determined
by the Secretary concerned pursuant to subsection (f).
‘‘(2) A member who is not entitled to retired or re-
tainer pay upon separation shall be entitled to the benefits
and services provided under—
‘‘(A) chapter 58 of this title during the 180-day
period beginning on the date the member is separated
(notwithstanding any termination date for such bene-
fits and services otherwise applicable under the provi-
sions of such chapter); and
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‘‘(B) sections 404 and 406 of title 37.
‘‘(f) COMPUTATION
OF
VOLUNTARY
SEPARATION
PAY.—The Secretary concerned shall specify the amount of
voluntary separation pay that an individual or defined
group of members of the armed forces may be paid under
subsection (e)(1). No member may receive as voluntary sep-
aration pay an amount greater than three times the full
amount of separation pay for a member of the same pay
grade and years of service who is involuntarily separated
under section 1174 of this title.
‘‘(g) PAYMENT OF VOLUNTARY SEPARATION PAY.—(1)
Voluntary separation pay under this section may be paid
in a single lump sum.
‘‘(2) In the case of a member of the armed forces who,
at the time of separation under subsection (c), has com-
pleted at least 15 years, but less than 20 years, of active
service, voluntary separation pay may be paid, at the elec-
tion of the Secretary concerned, in—
‘‘(A) a single lump sum;
‘‘(B) installments over a period not to exceed 10
years; or
‘‘(C) a combination of lump sum and such in-
stallments.
‘‘(h) COORDINATION WITH RETIRED OR RETAINER
PAY AND DISABILITY COMPENSATION.—(1) A member who
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is paid voluntary separation pay under this section and
who later qualities for retired or retainer pay under this
title or title 14 shall have deducted from each payment of
such retired or retainer pay an amount, in such schedule
of monthly installments as the Secretary concerned shall
specify, until the total amount deducted from such retired
or retainer pay is equal to the total amount of voluntary
separation pay so paid.
‘‘(2)(A) Except as provided in subparagraphs (B) and
(C), a member who is paid voluntary separation pay under
this section shall not be deprived, by reason of the member’s
receipt of such pay, of any disability compensation to which
the member is entitled under the laws administered by the
Secretary of Veterans Affairs, but there shall be deducted
from such disability compensation an amount, in such
schedule of monthly installments as the Secretary concerned
shall specify, until the total amount deducted from such dis-
ability compensation is equal to the total amount of vol-
untary separation pay so paid.
‘‘(B) No deduction shall be made from the disability
compensation paid to an eligible disabled uniformed serv-
ices retiree under section 1413, or to an eligible combat-
related disabled uniformed services retiree under section
1413a of this title, who is paid voluntary separation pay
under this section.
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‘‘(C) No deduction may be made from the disability
compensation paid to a member for the amount of vol-
untary separation pay received by the member because of
an earlier discharge or release from a period of active duty
if the disability which is the basis for that disability com-
pensation was incurred or aggravated during a later period
of active duty.
‘‘(3) The requirement under this subsection to repay
voluntary separation pay following retirement from the
armed forces does not apply to a member who was eligible
to retire at the time the member applied and was accepted
for voluntary separation pay and benefits under this sec-
tion.
‘‘(4) The Secretary concerned may waive the require-
ment to repay voluntary separation pay under paragraphs
(1) and (2) if the Secretary determines that recovery would
be against equity and good conscience or would be contrary
to the best interests of the United States.
‘‘(i) RETIREMENT DEFINED.—In this section, the term
‘retirement’ includes a transfer to the Fleet Reserve or Fleet
Marine Corps Reserve.
‘‘(j) REPAYMENT FOR MEMBERS WHO RETURN TO AC-
TIVE DUTY.—(1) Except as provided in paragraphs (2) and
(3), a member of the armed forces who, after having received
all or part of voluntary separation pay under this section,