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Guard or Reserve, which families live more than 40
miles from the installation so selected.
(f) GOALS OF PARTICIPATING INSTALLATIONS.—Ap-
propriate personnel at each military installation selected
for participation in the pilot program shall develop goals,
and specific outcome measures with respect to such goals,
for the conduct of the pilot program at such installation.
(g) EVALUATION.—
(1) EVALUATION REQUIRED.—Upon completion
of the pilot program at a military installation, the
personnel referred to in subsection (f) at such installa-
tion shall conduct an evaluation and assessment of
the success of the pilot program at such installation
in meeting the goals developed under that subsection.
(2) REPORT.—Upon completion of the evalua-
tions under paragraph (1) for all military installa-
tions participating in the pilot program, the Sec-
retary of Defense shall submit to the congressional de-
fense committees a report on such evaluations. The re-
port shall describe the results of such evaluations, and
may include such recommendations for legislative or
administrative action as the Secretary considers ap-
propriate in light of such evaluations, including rec-
ommendations for the continuation of the pilot pro-
gram.
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(h) GUIDELINES.—The Secretary shall issue guidelines
applicable to the pilot program, including guidelines on the
goals to be developed under subsection (f), specific outcome
measures, and guidelines on the selection of curriculum and
the conduct of developmental screening under the pilot pro-
gram.
(i) FUNDING.—Of the amounts authorized to be appro-
priated by section 301(1) for operation and maintenance
for the Army, $1,500,000 shall be available to carry out
the pilot program in fiscal year 2007.
Subtitle F—Other Matters
SEC. 581. ADMINISTRATION OF OATHS.
(a) IN GENERAL.—Section 502 of title 10, United
States Code, is amended by striking the flush matter at the
end and inserting the following new flush matter:
‘‘This oath may be taken before the President, the Vice
President, the Secretary of Defense, any commissioned offi-
cer of any armed force, or any other person designated
under regulations prescribed by the Secretary of Defense.’’.
(b) CONFORMING AMENDMENT.—Section 1031 of such
title is amended by striking ‘‘Any commissioned officer’’
and all that follows through ‘‘on active duty,’’ and inserting
‘‘The President, the Vice President, the Secretary of Defense,
any commissioned officer of an armed force, or any other
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person designated under regulations prescribed by the Sec-
retary of Defense’’.
SEC. 582. MILITARY ID CARDS FOR RETIREE DEPENDENTS
WHO ARE PERMANENTLY DISABLED.
(a) IN GENERAL.—Subsection (a) of section 1060b of
title 10, United States Code, is amended to read as follows:
‘‘(a) ISSUANCE OF PERMANENT ID CARD.—(1) In
issuing military ID cards to retiree dependents, the Sec-
retary concerned shall issue a permanent ID card (not sub-
ject to renewal) to any such retiree dependent as follows:
‘‘(A) A retiree dependent who has attained 75
years of age.
‘‘(B) A retiree dependent who is permanently
disabled.
‘‘(2) A permanent ID card shall be issued to a retiree
dependent under paragraph (1)(A) upon the expiration,
after the retiree dependent attains 75 years of age, of any
earlier, renewable military card or, if earlier, upon the re-
quest of the retiree dependent after attaining age 75.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—
(1) HEADING AMENDMENT.—The heading of such
section is amended to read as follows:
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‘‘§ 1060b. Military ID cards: dependents and survivors
of retirees’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 53 of such title is
amended by striking the item relating to section
1060b and inserting the following new item:
‘‘1060b. Military ID cards: dependents and survivors of retirees.’’.
SEC. 583. MILITARY VOTING MATTERS.
(a) REPEAL OF PERIODIC INSPECTOR GENERAL IN-
STALLATION VISITS FOR ASSESSMENT OF VOTING ASSIST-
ANCE PROGRAMS.—Section 1566 of title 10, United States
Code, is amended—
(1) by striking subsection (d); and
(2) by redesignating subsections (e) through (i)
as subsections (d) through (h), respectively.
(b) COMPTROLLER GENERAL REPORT.—Not later than
March 1, 2007, the Comptroller General of the United
States shall submit to Congress a report containing the as-
sessment of the Comptroller General with respect to the fol-
lowing:
(1) The programs and activities undertaken by
the Department of Defense to facilitate voter registra-
tion, transmittal of ballots to absentee voters, and vot-
ing utilizing electronic means of communication
(such as electronic mail and fax transmission) for
military and civilian personnel covered by the Uni-
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formed and Overseas Citizens Absentee Voting Act (42
U.S.C. 1973ff et seq.).
(2) The progress of the Department of Defense
and the Election Assistance Commission in devel-
oping a secure, deployable system for Internet-based
electronic voting pursuant to the amendment made by
section 567 of the Ronald W. Reagan National De-
fense Authorization Act for Fiscal Year 2005 (Public
Law 108–375; 118 Stat. 1919).
(c) USE OF ELECTRONIC VOTING TECHNOLOGY.—
(1) CONTINUATION OF INTERIM VOTING ASSIST-
ANCE SYSTEM.—The Secretary of Defense shall con-
tinue the Interim Voting Assistance System (IVAS)
ballot request program with respect to all absent uni-
formed services voters (as defined under section
107(1) of the Uniformed Overseas Citizens Absentee
Voting Act (42 U.S.C. 1973ff–6(1))), overseas employ-
ees of the Department of Defense, and the dependents
of such voters and employees, for the general election
and all elections through December 31, 2006.
(2) REPORTS.—
(A) IN GENERAL.—Not later than 30 days
after the date of the regularly scheduled general
election for Federal office for November 2006, the
Secretary of Defense shall submit to the congres-
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sional defense committees a report setting
forth—
(i) an assessment of the success of the
implementation of the Interim Voting As-
sistance System ballot request program car-
ried out under paragraph (1);
(ii) recommendations for continuation
of the Interim Voting Assistance System
and for improvements to that system; and
(iii) an assessment of available tech-
nologies and other means of achieving en-
hanced use of electronic and Internet-based
capabilities under the Interim Voting As-
sistance System.
(B) FUTURE
ELECTIONS.—Not later than
May 15, 2007, the Secretary of Defense shall sub-
mit to the congressional defense committees a re-
port detailing plans for expanding the use of
electronic voting technology for individuals cov-
ered under the Uniformed Overseas Citizens Ab-
sentee Voting Act (42 U.S.C. 1973ff et seq.) for
elections through November 30, 2010.
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SEC. 584. PRESENTATION OF MEDAL OF HONOR FLAG TO
PRIMARY NEXT OF KIN OF MEDAL OF HONOR
RECIPIENTS.
(a) ARMY RECIPIENTS.—Section 3755 of title 10,
United States Code, is amended—
(1) by inserting ‘‘(a) PRESENTATION TO MEDAL
OF HONOR RECIPIENTS.—’’ before ‘‘The President’’;
and
(2) by striking ‘‘after October 23, 2002’’; and
(3) by adding at the end the following new sub-
section:
‘‘(b) PRESENTATION TO PRIMARY NEXT OF KIN.—The
President may provide for the presentation of a Medal of
Honor Flag to the primary living next of kin (as designated
by the Secretary of Defense in regulations prescribed for
purposes of this section) of a deceased medal of honor recipi-
ent described in subsection (a).’’.
(b) NAVY AND MARINE CORPS RECIPIENTS.—Section
6257 of such title is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘The President’’; and
(2) by striking ‘‘after October 23, 2002’’; and
(3) by adding at the end the following new sub-
section:
‘‘(b) PRESENTATION TO PRIMARY NEXT OF KIN.—The
President may provide for the presentation of a Medal of
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Honor Flag to the primary living next of kin (as designated
by the Secretary of Defense in regulations prescribed for
purposes of this section) of a deceased medal of honor recipi-
ent described in subsection (a).’’.
(c) AIR FORCE RECIPIENTS.—Section 8755 of such
title is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘The President’’; and
(2) by striking ‘‘after October 23, 2002’’; and
(3) by adding at the end the following new sub-
section:
‘‘(b) PRESENTATION TO PRIMARY NEXT OF KIN.—The
President may provide for the presentation of a Medal of
Honor Flag to the primary living next of kin (as designated
by the Secretary of Defense in regulations prescribed for
purposes of this section) of a deceased medal of honor recipi-
ent described in subsection (a).’’.
(d) COAST GUARD RECIPIENTS.—Section 505 of title
14, United States Code, is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘The President’’; and
(2) by striking ‘‘after October 23, 2002’’; and
(3) by adding at the end the following new sub-
section:
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‘‘(b) PRESENTATION TO PRIMARY NEXT OF KIN.—The
President may provide for the presentation of a Medal of
Honor Flag to the primary living next of kin (as designated
by the Secretary of Homeland Security in regulations pre-
scribed for purposes of this section) of a deceased medal of
honor recipient described in subsection (a).’’.
SEC. 585. MODIFICATION OF EFFECTIVE PERIOD OF AU-
THORITY TO PRESENT RECOGNITION ITEMS
FOR RECRUITMENT AND RETENTION PUR-
POSES.
Subsection (d) of section 2261 of title 10, United States
Code, is amended to read as follows:
‘‘(d) EFFECTIVE PERIOD.—The authority under this
section shall be in effect during the period of any war or
national emergency declared by the President or Congress.’’.
SEC. 586. MILITARY SEVERELY INJURED CENTER.
(a) CENTER REQUIRED.—In support of the com-
prehensive policy on the provision of assistance to severely
wounded or injured servicemembers required by section 563
of the National Defense Authorization Act for Fiscal Year
2006 (Public Law 109–163; 119 Stat. 3269; 10 U.S.C. 113
note), the Secretary of Defense shall establish within the De-
partment of Defense a center to augment and support the
programs and activities of the military departments for the
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provision of such assistance, including the programs of the
military departments referred to in subsection (c).
(b) DESIGNATION.—The center established under sub-
section (a) shall be known as the ‘‘Military Severely Injured
Center’’ (in this section referred to as the ‘‘Center’’).
(c) PROGRAMS OF THE MILITARY DEPARTMENTS.—
The programs of the military departments referred to in
this subsection are as follows:
(1) The Army Wounded Warrior Support Pro-
gram.
(2) The Navy Safe Harbor Program.
(3) The Palace HART Program of the Air Force.
(4) The Marine for Life Injured Support Pro-
gram of the Marine Corps.
(d) ACTIVITIES OF CENTER.—
(1) IN GENERAL.—The Center shall carry out
such programs and activities to augment and support
the programs and activities of the military depart-
ments for the provision of assistance through indi-
vidual case management to severely wounded or in-
jured servicemembers and their families as the Sec-
retary of Defense, in consultation with the Secretaries
of the military departments and the heads of other
appropriate departments and agencies of the Federal
Government (including the Department of Labor and
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the Department of Veterans Affairs), shall assign the
Center.
(2) DATABASE.—The activities of the Center
under this subsection shall include the establishment
and maintenance of a central database of information
for purposes of tracking severely wounded or injured
servicemembers.
(e) RESOURCES.—The Secretary of Defense shall allo-
cate to the Center such personnel and other resources as the
Secretary of Defense, in consultation with the Secretaries
of the military departments, considers appropriate in order
to permit the Center to carry out effectively the programs
and activities assigned to the Center under subsection (d).
SEC. 587. SENSE OF SENATE ON NOTICE TO CONGRESS OF
RECOGNITION OF MEMBERS OF THE ARMED
FORCES 
FOR 
EXTRAORDINARY 
ACTS 
OF
BRAVERY, HEROISM, AND ACHIEVEMENT.
It is the sense of the Senate that the Secretary of De-
fense or the Secretary of the military department concerned
should, upon awarding a medal to a member of the Armed
Forces or otherwise commending or recognizing a member
of the Armed Forces for an act of extraordinary heroism,
bravery, achievement, or other distinction, notify the Com-
mittee on Armed Services of the Senate and House of Rep-
resentatives, the Senators from the State in which such
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member resides, and the Member of the House of Represent-
atives from the district in which such member resides of
such extraordinary award, commendation, or recognition.
SEC. 588. REPORT ON PROVISION OF ELECTRONIC COPY OF
MILITARY RECORDS ON DISCHARGE OR RE-
LEASE 
OF 
MEMBERS 
FROM 
THE 
ARMED
FORCES.
(a) REPORT REQUIRED.—Not later than 120 days
after the date of the enactment of this Act, the Secretary
of Defense shall submit to the congressional defense commit-
tees a report on the feasibility and advisability of providing
an electronic copy of military records (including all mili-
tary service, medical, and other military records) to mem-
bers of the Armed Forces on their discharge or release from
the Armed Forces.
(b) ELEMENTS.—The report required by subsection (a)
shall include the following:
(1) An estimate of the costs of the provision of
military records as described in subsection (a).
(2) An assessment of providing military records
as described in that subsection through the distribu-
tion of a portable, readily accessible medium (such as
a computer disk or other similar medium) containing
such records.
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(3) A description and assessment of the mecha-
nisms required to ensure the privacy of members of
the Armed Forces in providing military records as
described in that subsection.
(4) An assessment of the benefits to the members
of the Armed Forces of receiving their military
records as described in that subsection.
(5) If the Secretary determines that providing
military records to members of the Armed Forces as
described in that subsection is feasible and advisable,
a plan (including a schedule) for providing such
records to members of the Armed Forces as so de-
scribed in order to ensure that each member of the
Armed Forces is provided such records upon discharge
or release from the Armed Forces.
(6) Any other matter to relating to the provision
of military records as described in that subsection
that the Secretary considers appropriate.
SEC. 589. PURPLE HEART AWARD ELIGIBILITY.
(a) FINDINGS.—Congress makes the following findings:
(1) The Purple Heart is the oldest military deco-
ration in the world in present use.
(2) The Purple Heart was established on August
7, 1782, during the Revolutionary War, when General
George Washington issued an order establishing the
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Honorary Badge of Distinction, otherwise known as
the Badge of Military Merit.
(3) The award of the Purple Heart ceased with
the end of the Revolutionary War, but was revived in
1932, the 200th anniversary of George Washington’s
birth, out of respect for his memory and military
achievements by War Department General Orders No.
3, dated February 22, 1932.
(4) The criteria for the award was originally an-
nounced in War Department Circular dated February
22, 1932, and revised by Presidential Executive Order
9277, dated December 3, 1942; Executive Order
10409, dated February 12, 1952; Executive Order
11016, dated April 25, 1962; and Executive Order
12464, dated February 23, 1984.
(5) The Purple Heart is awarded in the name of
the President of the United States as Commander in
Chief to members of the Armed Forces who qualify
under criteria set forth by Presidential Executive
Order.
(b) DETERMINATION.—As part of the review and re-
port required in subsection (d), the President shall make
a determination on expanding eligibility to all deceased
servicemembers held as a prisoner of war after December
7, 1941, and who meet the criteria establishing eligibility
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for the prisoner-of-war medal under section 1128 of title
10, but who do not meet the criteria establishing eligibility
for the Purple Heart.
(c) REQUIREMENTS.—In making the determination
described in subsection (b), the President shall take into
consideration—
(1) the brutal treatment endured by thousands of
POWs incarcerated by enemy forces;
(2) that many service members died due to star-
vation, abuse, the deliberate withholding of medical
treatment for injury or disease, or other causes which
do not currently meet the criteria for award of the
Purple Heart;
(3) the views of veteran organizations, including
the Military Order of the Purple Heart;
(4) the importance and gravity that has been as-
signed to determining all available facts prior to a
decision to award the Purple Heart; and
(5) the views of the Secretary of Defense and the
Joint Chiefs of Staff.
(d) REPORT.—Not later than March 1, 2007, the Presi-
dent shall provide the Committees on Armed Services of the
Senate and House of Representatives a report on the advis-
ability of modifying the criteria for the award of the Purple
Heart to authorize the award of the Purple Heart to mili-
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tary members who die in captivity under unknown cir-
cumstances or as a result of conditions and treatment which
currently do not qualify the decedent for award of the Pur-
ple Heart; and for military members who survive captivity
as prisoners of war, but die thereafter as a result of disease
or disability incurred during captivity.
SEC. 590. COMPREHENSIVE REVIEW ON PROCEDURES OF
THE DEPARTMENT OF DEFENSE ON MOR-
TUARY AFFAIRS.
(a) REPORT.—As soon as practicable after the comple-
tion of the comprehensive review of the procedures of the
Department of Defense on mortuary affairs, the Secretary
of Defense shall submit to the congressional defense commit-
tees a report on the review.
(b) ADDITIONAL ELEMENTS.—In conducting the com-
prehensive review described in subsection (a), the Secretary
shall also address, in addition to any other matters covered
by the review, the following:
(1) The utilization of additional or increased re-
frigeration (including icing) in combat theaters in
order to enhance preservation of remains.
(2) The relocation of refrigeration assets further
forward in the field.
(3) Specific time standards for the movement of
remains from combat units.
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(4) The forward location of autopsy and em-
balming operations.
(5) Any other matters that the Secretary con-
siders appropriate in order to speed the return of re-
mains to the United States in a non-decomposed
state.
(c) ADDITIONAL ELEMENT OF POLICY ON CASUALTY
ASSISTANCE TO SURVIVORS OF MILITARY DECEDENTS.—
Section 562(b) of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3267;
10 U.S.C. 1475 note) is amended by adding at the end the
following new paragraph:
‘‘(12) The process by which the Department of
Defense, upon request, briefs survivors of military de-
cedents on the cause of, and any investigation into,
the death of such military decedents and on the dis-
position and transportation of the remains of such de-
cedents, which process shall—
‘‘(A) provide for the provision of such brief-
ings by fully qualified Department personnel;
‘‘(B) ensure briefings take place as soon as
possible after death and updates are provided in
a timely manner when new information becomes
available;
‘‘(C) ensure that—
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‘‘(i) such briefings and updates relate
the most complete and accurate information
available at the time of such briefings or
updates, as the case may be; and
‘‘(ii) incomplete or unverified informa-
tion is identified as such during the course
of such briefings or updates; and
‘‘(D) include procedures by which such sur-
vivors shall, upon request, receive updates or
supplemental information on such briefings or
updates from qualified Department personnel.’’.
SEC. 591. REPORT ON OMISSION OF SOCIAL SECURITY NUM-
BERS ON MILITARY IDENTIFICATION CARDS.
(a) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall
submit to Congress a report setting forth the assessment of
the Secretary of the feasibility of utilizing military identi-
fication cards that do not contain, display or exhibit the
Social Security Number of the individual identified by such
military identification card.
(b) MILITARY IDENTIFICATION CARD DEFINED.—In
this section, the term ‘‘military identification card’’ has the
meaning given the term ‘‘military ID card’’ in section
1060b(b)(1) of title 10, United States Code.
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SEC. 592. FUNERAL CEREMONIES FOR VETERANS.
(a) SUPPORT FOR CEREMONIES BY DETAILS CON-
SISTING SOLELY OF MEMBERS OF VETERANS AND OTHER
ORGANIZATIONS.—
(1) SUPPORT OF CEREMONIES.—Section 1491 of
title 10, United States Code, is amended—
(A) by redesignating subsections (e), (f), (g),
and (h) as subsections (f), (g), (h), and (i), re-
spectively; and
(B) by inserting after subsection (d) the fol-
lowing new subsection (e):
‘‘(e) SUPPORT FOR FUNERAL HONORS DETAILS COM-
POSED OF MEMBERS OF VETERANS ORGANIZATIONS.—(1)
Subject to such regulations and procedures as the Secretary
of Defense may prescribe, the Secretary of the military de-
partment of which a veteran was a member may support
the conduct of funeral honors for such veteran that are pro-
vided solely by members of veterans organizations or other
organizations referred to in subsection (b)(2).
‘‘(2) The provision of support under this subsection is
subject to the availability of appropriations for that pur-
pose.
‘‘(3) The support provided under this subsection may
include the following:
‘‘(A) Reimbursement for costs incurred by orga-
nizations referred to in paragraph (1) in providing
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funeral honors, including costs of transportation,
meals, and similar costs.
‘‘(B) Payment to members of such organizations
providing such funeral honors of the daily stipend
prescribed under subsection (d)(2).’’.
(2) CONFORMING AMENDMENTS.—Such section is
further amended—
(A) in subsection (d)(2), by inserting ‘‘and
subsection (e)’’ after ‘‘paragraph (1)(A)’’; and
(B) in paragraph (1) of section (f), as re-
designated by subsection (a)(1) of this section, by
inserting ‘‘(other than a requirement in sub-
section (e)’’ after ‘‘pursuant to this section’’.
(b) USE OF EXCESS M–1 RIFLES FOR CEREMONIAL
AND OTHER PURPOSES.—Section 4683 of such title is
amended—
(1) in subsection (a), by adding at the end the
following new paragraph:
‘‘(3) Rifles loaned or donated under paragraph (1)
may be used by an eligible designee for funeral ceremonies
of a member or former member of the armed forces and for
other ceremonial purposes.’’;
(2) in subsection (c), by inserting after ‘‘account-
ability’’ the following: ‘‘, provided that such condi-
tions do not unduly hamper eligible designees from
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participating in funeral ceremonies of a member or
former member of the armed forces or other cere-
monies’’;
(3) in subsection (d)—
(A) in paragraph (2), by striking ‘‘; or’’
and inserting ‘‘or fire department;’’;
(B) in paragraph (3), by striking the period
at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) any other member in good standing of an
organization described in paragraphs (1), (2), or
(3).’’; and
(4) by adding at the end the following new sub-
section:
‘‘(e) ELIGIBLE DESIGNEE DEFINED.—In this section,
the term ‘eligible designee’ means a designee of an eligible
organization who—
‘‘(1) is a spouse, son, daughter, nephew, niece, or
other family relation of a member or former member
of the armed forces;
‘‘(2) is at least 18 years of age; and
‘‘(3) has successfully completed a formal firearm
training program or a hunting safety program.’’.
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TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. FISCAL YEAR 2007 INCREASE IN MILITARY BASIC
PAY AND REFORM OF BASIC PAY RATES.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The ad-
justment to become effective during fiscal year 2007 re-
quired by section 1009 of title 37, United States Code, in
the rates of monthly basic pay authorized members of the
uniformed services shall not be made.
(b) JANUARY 1, 2007, INCREASE IN BASIC PAY.—Ef-
fective on January 1, 2007, the rates of monthly basic pay
for members of the uniformed services are increased by 2.2
percent.
(c) REFORM OF BASIC PAY RATES.—Effective on April
1, 2007, the rates of monthly basic pay for members of the
uniformed services within each pay grade are as follows:
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MONTHLY BASIC PAY
COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–10 2 ...
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 .......
0.00
0.00
0.00
0.00
0.00
O–8 .......
8,453.10
8,729.70
8,913.60
8,964.90
9,194.10
O–7 .......
7,023.90
7,350.00
7,501.20
7,621.20
7,838.40
O–6 .......
5,206.20
5,719.20
6,094.50
6,094.50
6,117.60
O–5 .......
4,339.80
4,888.80
5,227.50
5,291.10
5,502.00
O–4 .......
3,744.60
4,334.70
4,623.90
4,688.40
4,956.90
O–3 3 .....
3,292.20
3,732.30
4,028.40
4,392.00
4,602.00
O–2 3 .....
2,844.30
3,239.70
3,731.40
3,857.40
3,936.60
O–1 3 .....
2,469.30
2,569.80
3,106.50
3,106.50
3,106.50
Over 8
Over 10
Over 12
Over 14
Over 16
O–10 2 ...
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 .......
0.00
0.00
0.00
0.00
0.00
O–8 .......
9,577.20
9,666.30
10,030.20
10,134.30
10,447.80
O–7 .......
8,052.90
8,301.30
8,548.80
8,797.20
9,577.20
O–6 .......
6,380.10
6,414.60
6,414.60
6,779.10
7,423.80
O–5 .......
5,628.60
5,906.40
6,110.10
6,373.20
6,776.40
O–4 .......
5,244.60
5,602.80
5,882.40
6,076.20
6,187.50
O–3 3 .....
4,833.30
4,982.70
5,228.40
5,355.90
5,355.90
O–2 3 .....
3,936.60
3,936.60
3,936.60
3,936.60
3,936.60
O–1 3 .....
3,106.50
3,106.50
3,106.50
3,106.50
3,106.50
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2 ...
$0.00
$13,659.00
$13,725.90
$14,011.20
$14,508.60
O–9 .......
0.00
11,946.60
12,118.50
12,367.20
12,801.30
O–8 .......
10,900.80
11,319.00
11,598.30
11,598.30
11,598.30
O–7 .......
10,236.00
10,236.00
10,236.00
10,236.00
10,287.90
O–6 .......
7,802.10
8,180.10
8,395.20
8,613.00
9,035.70
O–5 .......
6,968.10
7,158.00
7,373.10
7,373.10
7,373.10
O–4 .......
6,252.30
6,252.30
6,252.30
6,252.30
6,252.30
O–3 3 .....
5,355.90
5,355.90
5,355.90
5,355.90
5,355.90
O–2 3 .....
3,936.60
3,936.60
3,936.60
3,936.60
3,936.60
O–1 3 .....
3,106.50
3,106.50
3,106.50
3,106.50
3,106.50
Over 28
Over 30
Over 32
Over 34
Over 36
O–10 2 ...
$14,508.60
$15,234.00
$15,234.00
$15,995.70
$15,995.70
O–9 .......
12,801.30
13,441.50
13,441.50
14,113.50
14,113.50
O–8 .......
11,598.30
11,888.40
11,888.40
12,185.70
12,185.70
O–7 .......
10,287.90
10,493.70
10,493.70
10,493.70
10,493.70
O–6 .......
9,035.70
9,216.30
9,216.30
9,216.30
9,216.30
O–5 .......
7,373.10
7,373.10
7,373.10
7,373.10
7,373.10
O–4 .......
6,252.30
6,252.30
6,252.30
6,252.30
6,252.30
O–3 3 .....
5,355.90
5,355.90
5,355.90
5,355.90
5,355.90
O–2 3 .....
3,936.60
3,936.60
3,936.60
3,936.60
3,936.60
O–1 3 .....
3,106.50
3,106.50
3,106.50
3,106.50
3,106.50
Over 38
Over 40
O–10 2 ...
$16,795.50
$16,795.50
O–9 .......
14,819.10
14,819.10
O–8 .......
12,185.70
12,185.70
O–7 .......
10,493.70
10,493.70
O–6 .......
9,216.30
9,216.30
O–5 .......
7,373.10
7,373.10
O–4 .......
6,252.30
6,252.30
O–3 3 .....
5,355.90
5,355.90
O–2 3 .....
3,936.60
3,936.60
O–1 3 .....
3,106.50
3,106.50
1 Notwithstanding the pay rates specified in this table, the actual basic pay for commissioned officers in grades
O–7 through O–10 may not exceed the rate of pay for level II of the Executive Schedule and the actual basic pay
for all other officers, including warrant officers, may not exceed the rate of pay for level V of the Executive Sched-
ule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine
Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as defined
in section 161(c) of title 10, United States Code), basic pay for this grade is calculated to be $17,972.10, regardless
of cumulative years of service computed under section 205 of title 37, United States Code.
†
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3 This table does not apply to commissioned officers in the grade O–1, O–2, or O–3 who have been credited with
over 4 years of active duty service as an enlisted member or warrant officer.
†
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE
AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–3E ..
$0.00
$0.00
$0.00
$4,392.00
$4,602.00
O–2E ..
0.00
0.00
0.00
3,857.40
3,936.60
O–1E ..
0.00
0.00
0.00
3,106.50
3,317.70
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E ..
$4,833.00
$4,982.70
$5,228.40
$5,435.40
$5,554.20
O–2E ..
4,062.00
4,273.50
4,437.00
4,558.80
4,558.80
O–1E ..
3,440.10
3,565.50
3,688.80
3,857.40
3,857.40
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E ..
$5,715.90
$5,715.90
$5,715.90
$5,715.90
$5,715.90
O–2E ..
4,558.80
4,558.80
4,558.80
4,558.80
4,558.80
O–1E ..
3,857.40
3,857.40
3,857.40
3,857.40
3,857.40
Over 28
Over 30
Over 32
Over 34
Over 36
O–3E ..
$5,715.90
$5,715.90
$5,715.90
$5,715.90
$5,715.90
O–2E ..
4,558.80
4,558.80
4,558.80
4,558.80
4,558.80
O–1E ..
3,857.40
3,857.40
3,857.40
3,857.40
3,857.40
Over 38
Over 40
O–3E ..
$5,715.90
$5,715.90
O–2E ..
4,558.80
4,558.80
O–1E ..
3,857.40
3,857.40
†
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WARRANT OFFICERS
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
W–5 ....
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ....
3,402.00
3,660.00
3,765.00
3,868.50
4,046.40
W–3 ....
3,106.80
3,236.40
3,369.00
3,412.80
3,552.00
W–2 ....
2,749.20
3,009.30
3,089.40
3,144.60
3,322.80
W–1 ....
2,413.20
2,672.40
2,742.90
2,890.50
3,065.10
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ....
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ....
4,222.20
4,400.70
4,669.20
4,904.40
5,128.20
W–3 ....
3,825.90
4,110.90
4,245.30
4,400.40
4,560.30
W–2 ....
3,600.00
3,737.10
3,872.40
4,037.70
4,166.70
W–1 ....
3,322.20
3,442.20
3,610.20
3,775.50
3,905.10
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ....
$0.00
$6,049.50
$6,356.40
$6,585.00
$6,838.20
W–4 ....
5,310.90
5,489.70
5,752.20
5,967.60
6,213.60
W–3 ....
4,847.70
5,042.40
5,158.50
5,282.10
5,450.10
W–2 ....
4,284.00
4,423.80
4,515.90
4,589.40
4,589.40
W–1 ....
4,024.50
4,170.00
4,170.00
4,170.00
4,170.00
Over 28
Over 30
Over 32
Over 34
Over 36
W–5 ....
$6,838.20
$7,180.20
$7,180.20
$7,539.30
$7,539.30
W–4 ....
6,213.60
6,337.80
6,337.80
6,337.80
6,337.80
W–3 ....
5,450.10
5,450.10
5,450.10
5,450.10
5,450.10
W–2 ....
4,589.40
4,589.40
4,589.40
4,589.40
4,589.40
W–1 ....
4,170.00
4,170.00
4,170.00
4,170.00
4,170.00
Over 38
Over 40
W–5 ....
$7,916.40
$7,916.40
W–4 ....
6,337.80
6,337.80
W–3 ....
5,450.10
5,450.10
W–2 ....
4,589.50
4,589.40
W–1 ....
4,170.00
4,170.00
†
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ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code
Pay Grade
2 or less
Over 2
Over 3
Over 4
Over 6
E–9 2 .....
$0.00
$0.00
$0.00
$0.00
$0.00
E–8 .......
0.00
0.00
0.00
0.00
0.00
E–7 .......
2,339.10
2,553.00
2,650.80
2,780.70
2,881.50
E–6 .......
2,023.20
2,226.00
2,324.40
2,419.80
2,519.40
E–5 .......
1,854.00
1,977.90
2,073.30
2,171.40
2,323.80
E–4 .......
1,699.50
1,786.50
1,883.10
1,978.50
2,062.80
E–3 .......
1,534.20
1,630.80
1,729.20
1,729.20
1,729.20
E–2 .......
1,458.90
1,458.90
1,458.90
1,458.90
1,458.90
E–1 .......
31,301.40
1,301.40
1,301.40
1,301.40
1,301.40
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2 .....
$0.00
$4,110.60
$4,203.90
$4,321.20
$4,459.50
E–8 .......
3,364.80
3,513.90
3,606.00
3,716.40
3,835.80
E–7 .......
3,055.20
3,152.70
3,326.70
3,471.00
3,569.70
E–6 .......
2,744.10
2,831.40
3,000.00
3,051.90
3,089.70
E–5 .......
2,483.70
2,613.90
2,630.10
2,630.10
2,630.10
E–4 .......
2,062.80
2,062.80
2,062.80
2,062.80
2,062.80
E–3 .......
1,729.20
1,729.20
1,729.20
1,729.20
1,729.20
E–2 .......
1,458.90
1,458.90
1,458.90
1,458.90
1,458.90
E–1 .......
1,301.40
1,301.40
1,301.40
1,301.40
1,301.40
Over 18
Over 20
Over 22
Over 24
Over 26
E–9 2 .....
$4,598.40
$4,821.60
$5,010.30
$5,209.20
$5,512.80
E–8 .......
4,051.80
4,161.30
4,347.30
4,450.50
4,704.90
E–7 .......
3,674.40
3,715.50
3,852.00
3,925.20
4,204.20
E–6 .......
3,133.50
3,133.50
3,133.50
3,133.50
3,133.50
E–5 .......
2,630.10
2,630.10
2,630.10
2,630.10
2,630.10
E–4 .......
2,062.80
2,062.80
2,062.80
2,062.80
2,062.80
E–3 .......
1,729.20
1,729.20
1,729.20
1,729.20
1,729.20
E–2 .......
1,458.90
1,458.90
1,458.90
1,458.90
1,458.90
E–1 .......
1,301.40
1,301.40
1,301.40
1,301.40
1,301.40
Over 28
Over 30
Over 32
Over 34
Over 36
E–9 2 .....
$5,512.80
$5,788.50
$5,788.50
$6,078.00
$6,078.00
E–8 .......
4,704.90
4,799.10
4,799.10
4,799.10
4,799.10
E–7 .......
4,204.20
4,204.20
4,204.20
4,204.20
4,204.20
E–6 .......
3,133.50
3,133.50
3,133.50
3,133.50
3,133.50
E–5 .......
2,630.10
2,630.10
2,630.10
2,630.10
2,630.10
E–4 .......
2,062.80
2,062.80
2,062.80
2,062.80
2,062.80
E–3 .......
1,729.20
1,729.20
1,729.20
1,729.20
1,729.20
E–2 .......
1,458.90
1,458.90
1,458.90
1,458.90
1,458.90
E–1 .......
1,301.40
1,301.40
1,301.40
1,301.40
1,301.40
Over 38
Over 40
                                                                                                                                                           
E–9 2 .....
$6,381.90
$6,381.90
E–8 .......
4,799.10
4,799.10
E–7 .......
4,204.20
4,204.20
E–6 .......
3,133.50
3,133.50
E–5 .......
2,630.10
2,630.10
E–4 .......
2,062.80
2,062.80
E–3 .......
1,729.20
1,729.20
E–2 .......
1,458.90
1,458.90
E–1 .......
1,301.40
1,301.40
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not exceed
the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief Petty Officer of the
Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, Master Chief Petty Officer of
the Coast Guard, or Senior Enlisted Advisor to the Chairman of the Joint Chiefs of Staff, basic pay for this grade
is $6,642.60, regardless of cumulative years of service computed under section 205 of title 37, United States Code.
3 In the case of members in the grade E–1 who have served less than 4 months on active duty, basic pay is
$1,203.90.
†
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HR 5122 EAS
SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR
GENERAL AND FLAG OFFICER GRADES.
(a) INCREASE.—Section 203(a)(2) of title 37, United
States Code, is amended by striking ‘‘level III of the Execu-
tive Schedule’’ and inserting ‘‘level II of the Executive
Schedule’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 2007, and shall
apply with respect to months beginning on or after that
date.
SEC. 603. CLARIFICATION OF EFFECTIVE DATE OF PROHIBI-
TION ON COMPENSATION FOR CORRESPOND-
ENCE COURSES.
Section 206(d) of title 37, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(3) The prohibition in this subsection (including the
prohibition as it relates to a member of the National Guard
while not in Federal service) shall apply to—
‘‘(A) any work or study performed on or after
September 7, 1962; and
‘‘(B) any claim based on such work or study
arising after that date.’’.
†
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HR 5122 EAS
SEC. 604. ONE-YEAR EXTENSION OF PROHIBITION AGAINST
REQUIRING CERTAIN INJURED MEMBERS TO
PAY FOR MEALS PROVIDED BY MILITARY
TREATMENT FACILITIES.
(a) EXTENSION.—Section 402(h)(3) of title 37, United
States Code, is amended by striking ‘‘December 31, 2006’’
and inserting ‘‘December 31, 2007’’.
(b) REPORT ON ADMINISTRATION OF PROHIBITION.—
Not later than February 1, 2007, the Secretary of Defense
shall submit to the congressional defense committees a re-
port on the administration of section 402(h)(3) of title 37,
United States Code (as amended by subsection (a)). The re-
port shall include—
(1) a description and assessment of the mecha-
nisms used by the military departments to implement
the prohibition contained in such section; and
(2) such recommendations as the Secretary con-
siders appropriate regarding making such prohibition
permanent.
SEC. 605. ADDITIONAL HOUSING ALLOWANCE FOR RE-
SERVES ON ACTIVE DUTY IN SUPPORT OF A
CONTINGENCY OPERATION.
(a) IN GENERAL.—Section 403(g) of title 37, United
States Code, is amended—
(1) by redesignating paragraphs (2), (3), and (4)
as paragraphs (3), (4), and (5), respectively;
†
275
HR 5122 EAS
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
‘‘(2)(A) Under regulations prescribed by the Secretary
of Defense and the Secretary of Homeland Security with
respect to the Coast Guard when it is not operating as a
service in the Department of the Navy, the Secretary con-
cerned may authorize payment of a housing allowance to
a member described in paragraph (1) at a monthly rate
equal to the rate of the basic allowance for housing under
subsection (b) or the overseas basic allowance for housing
under subsection (c), whichever applies to that location, for
members of the regular components at that location in the
same grade without dependents.
‘‘(B) A member may concurrently receive a basic al-
lowance for housing under paragraph (1) and a housing
allowance under this paragraph, but may not receive the
portion of the allowance, if any, authorized under section
404 of this title for lodging expenses if a housing allowance
is authorized to be paid under this paragraph.’’; and
(3) in paragraph (3), as so redesignated, by
striking ‘‘Paragraph (1)’’ and inserting ‘‘Paragraphs
(1) and (2)’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2006, and shall
†
276
HR 5122 EAS
apply with respect to months beginning on or after that
date.
SEC. 606. EXTENSION OF TEMPORARY CONTINUATION OF
HOUSING ALLOWANCE FOR DEPENDENTS OF
MEMBERS 
DYING 
ON 
ACTIVE 
DUTY 
TO
SPOUSES WHO ARE MEMBERS OF THE UNI-
FORMED SERVICES.
(a) IN GENERAL.—Section 403(l) of title 37, United
States Code, is amended—
(1) by redesignating paragraph (3) as para-
graph (4);
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3) A member of the uniformed services who is the
spouse of a deceased member described in paragraph (2)
may be paid a basic allowance for housing as provided for
in that paragraph. An allowance paid under this para-
graph is in addition to any other pay and allowances to
which the member of the uniformed services is entitled
under any other provision of law.’’; and
(3) in paragraph (4), as so redesignated, by
striking ‘‘(2)’’ and inserting ‘‘(2) or (3)’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 2006, and shall apply
with respect to deaths occurring on or after that date.
†
277
HR 5122 EAS
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL
PAY AUTHORITIES FOR RESERVE FORCES.
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(g) of title 37, United States Code, is amended
by striking ‘‘December 31, 2006’’ and inserting ‘‘December
31, 2007’’.
(b) SELECTED RESERVE AFFILIATION OR ENLISTMENT
BONUS.—Section 308c(i) of such title is amended by strik-
ing ‘‘December 31, 2006’’ and inserting ‘‘December 31,
2007’’.
(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of
such title is amended by striking ‘‘December 31, 2006’’ and
inserting ‘‘December 31, 2007’’.
(d) READY RESERVE ENLISTMENT BONUS FOR PER-
SONS WITHOUT PRIOR SERVICE.—Section 308g(f)(2) of
such title is amended by striking ‘‘December 31, 2006’’ and
inserting ‘‘December 31, 2007’’.
(e) READY RESERVE ENLISTMENT
AND REENLIST-
MENT BONUS FOR PERSONS WITH PRIOR SERVICE.—Sec-
tion 308h(e) of such title is amended by striking ‘‘December
31, 2006’’ and inserting ‘‘December 31, 2007’’.
†
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HR 5122 EAS
(f) SELECTED RESERVE ENLISTMENT BONUS
FOR
PERSONS WITH PRIOR SERVICE.—Section 308i(f) of such
title is amended by striking ‘‘December 31, 2006’’ and in-
serting ‘‘December 31, 2007’’.
SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL
PAY AUTHORITIES FOR CERTAIN HEALTH
CARE PROFESSIONALS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code,
is amended by striking ‘‘December 31, 2006’’ and inserting
‘‘December 31, 2007’’.
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED
RESERVE.—Section 16302(d) of such title is amended by
striking ‘‘January 1, 2007’’ and inserting ‘‘January 1,
2008’’.
(c) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking ‘‘December 31, 2006’’ and inserting
‘‘December 31, 2007’’.
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended by
striking ‘‘December 31, 2006’’ and inserting ‘‘December 31,
2007’’.
†
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HR 5122 EAS
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIAL-
TIES.—Section 302g(e) of such title is amended by striking
‘‘December 31, 2006’’ and inserting ‘‘December 31, 2007’’.
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Sec-
tion 302h(a)(1) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’.
(g) ACCESSION BONUS FOR PHARMACY OFFICERS.—
Section 302j(a) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’.
SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AU-
THORITIES FOR NUCLEAR OFFICERS.
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e)
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’.
(b) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of such title is amended by striking ‘‘December 31,
2006’’ and inserting ‘‘December 31, 2007’’.
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007.
†
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HR 5122 EAS
SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAY-
MENT OF OTHER BONUSES AND SPECIAL
PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Section
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2006’’ and inserting ‘‘December 31,
2007’’.
(b) ASSIGNMENT INCENTIVE PAY.—Section 307a(g) of
such title is amended by striking ‘‘December 31, 2007’’ and
inserting ‘‘December 31, 2008’’.
(c) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2006’’ and inserting ‘‘December 31, 2007’’.
(d) ENLISTMENT BONUS.—Section 309(e) of such title
is amended by striking ‘‘December 31, 2006’’ and inserting
‘‘December 31, 2007’’.
(e) RETENTION BONUS FOR MEMBERS WITH CRITICAL
MILITARY
SKILLS
OR
ASSIGNED
TO
HIGH
PRIORITY
UNITS.—Section 323(i) of such title is amended by striking
‘‘December 31, 2006’’ and inserting ‘‘December 31, 2007’’.
(f) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by
striking ‘‘December 31, 2006’’ and inserting ‘‘December 31,
2007’’.
(g) INCENTIVE BONUS FOR CONVERSION TO MILITARY
OCCUPATIONAL SPECIALTY TO EASE PERSONNEL SHORT-
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AGE.—Section 326(g) of such title is amended by striking
‘‘December 31, 2006’’ and inserting ‘‘December 31, 2007’’.
(h) INCENTIVE BONUS FOR TRANSFER BETWEEN THE
ARMED FORCES.—Section 327(h) of such title is amended
by striking ‘‘December 31, 2006’’ and inserting ‘‘December
31, 2009’’.
SEC. 615. INCREASE IN SPECIAL PAY FOR SELECTED RE-
SERVE HEALTH CARE PROFESSIONALS IN
CRITICALLY SHORT WARTIME SPECIALTIES.
INCREASE IN SPECIAL PAY.—Section 302g(a) of title
37, United States Code, is amended by striking ‘‘$10,000’’
and inserting ‘‘$25,000’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2006, and shall
apply to written agreements entered into under section 302g
of title 37, United States Code, on or after that date.
SEC. 616. EXPANSION AND ENHANCEMENT OF ACCESSION
BONUS AUTHORITIES FOR CERTAIN OFFI-
CERS IN HEALTH CARE SPECIALITIES.
(a) INCREASE IN ACCESSION BONUS FOR DENTAL OF-
FICERS.—Section 302h(a)(2) of title 37, United States
Code, is amended by striking ‘‘$30,000’’ and inserting
‘‘$200,000’’.
(b) ACCESSION BONUS FOR MEDICAL OFFICERS IN
CRITICALLY SHORT WARTIME SPECIALITIES.—Chapter 5 of
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title 37, United States Code, is amended by inserting after
section 302j the following new section:
‘‘§ 302k. Special pay: accession bonus for medical offi-
cers in critically short wartime specialties
‘‘(a) ACCESSION BONUS AUTHORIZED.—(1) A person
who is a graduate of an accredited school of medicine or
osteopathy in a specialty described in subsection (c) and
who executes a written agreement described in subsection
(d) to accept a commission as an officer of the Armed Forces
and remain on active duty for a period of not less than
four consecutive years may, upon the acceptance of the
agreement by the Secretary concerned, be paid an accession
bonus in the amount determined by the Secretary con-
cerned.
‘‘(2) The amount of an accession bonus under para-
graph (1) may not exceed $400,000.
‘‘(b) LIMITATION ON ELIGIBILITY FOR BONUS.—A per-
son may not be paid a bonus under subsection (a) if—
‘‘(1) the person, in exchange for an agreement to
accept an appointment as an officer, received finan-
cial assistance from the Department of Defense to
pursue a course of study in medicine or osteopathy;
or
‘‘(2) the Secretary concerned determines that the
person is not qualified to become and remain certified
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as a doctor or osteopath in a specialty described in
subsection (c).
‘‘(c) COVERED SPECIALTIES.—A specialty described in
this subsection is a specialty designated by regulations as
a critically short wartime specialty.
‘‘(d) AGREEMENT.—The agreement referred to in sub-
section (a) shall provide that, consistent with the needs of
the armed service concerned, the person executing the agree-
ment will be assigned to duty, for the period of obligated
service covered by the agreement, as an officer of the Medical
Corps of the Army or the Navy or as an officer of the Air
Force designated as a medical officer in a specialty de-
scribed in subsection (c).
‘‘(e) REPAYMENT.—A person who, after executing an
agreement under subsection (a) is not commissioned as an
officer of the armed forces, does not become licensed as a
doctor or osteopath, as the case may be, or does not complete
the period of active duty in a specialty specified in the
agreement, shall be subject to the repayment provisions of
section 303a(e) of this title.
‘‘(f) TERMINATION
OF AUTHORITY.—No agreement
under this section may be entered into after December 31,
2007.’’.
(c) ACCESSION BONUS FOR DENTAL SPECIALIST OFFI-
CERS IN CRITICALLY SHORT WARTIME SPECIALITIES.—
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Chapter 5 of title 37, United States Code, as amended by
subsection (b), is further amended by inserting after section
302k the following new section:
‘‘§ 302l. Special pay: accession bonus for dental spe-
cialist officers in critically short wartime
specialties
‘‘(a) ACCESSION BONUS AUTHORIZED.—(1) A person
who is a graduate of an accredited dental school in a spe-
cialty described in subsection (c) and who executes a written
agreement described in subsection (d) to accept a commis-
sion as an officer of the Armed Forces and remain on active
duty for a period of not less than four consecutive years
may, upon the acceptance of the agreement by the Secretary
concerned, be paid an accession bonus in the amount deter-
mined by the Secretary concerned.
‘‘(2) The amount of an accession bonus under para-
graph (1) may not exceed $400,000.
‘‘(b) LIMITATION ON ELIGIBILITY FOR BONUS.—A per-
son may not be paid a bonus under subsection (a) if—
‘‘(1) the person, in exchange for an agreement to
accept an appointment as an officer, received finan-
cial assistance from the Department of Defense to
pursue a course of study in dentistry; or
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‘‘(2) the Secretary concerned determines that the
person is not qualified to become and remain certified
as a dentist in a specialty described in subsection (c).
‘‘(c) COVERED SPECIALTIES.—A specialty described in
this subsection is a specialty designated by regulations as
a critically short wartime specialty.
‘‘(d) AGREEMENT.—The agreement referred to in sub-
section (a) shall provide that, consistent with the needs of
the armed service concerned, the person executing the agree-
ment will be assigned to duty, for the period of obligated
service covered by the agreement, as an officer of the Dental
Corps of the Army or the Navy or as an officer of the Air
Force designated as a dental officer in a specialty described
in subsection (c).
‘‘(e) REPAYMENT.—A person who, after executing an
agreement under subsection (a) is not commissioned as an
officer of the armed forces, does not become licensed as a
dentist or does not complete the period of active duty in
a specialty specified in the agreement, shall be subject to
the repayment provisions of section 303a(e) of this title.
‘‘(f) COORDINATION WITH OTHER ACCESSION BONUS
AUTHORITY.—A person eligible to execute an agreement
under both subsection (a) and section 302h of this title shall
elect which authority to execute the agreement under. A per-
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son may not execute an agreement under both subsection
(a) and such section 302h.
‘‘(g) TERMINATION
OF AUTHORITY.—No agreement
under this section may be entered into after December 31,
2007.’’.
(d) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 5 of such title is amended by in-
serting after the item relating to section 302j the following
new item:
‘‘302k. Special pay: accession bonus for medical officers in critically short war-
time specialties.
‘‘302l. Special pay: accession bonus for dental specialist officers in critically short
wartime specialties.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 2006.
SEC. 617. INCREASE IN NUCLEAR CAREER ACCESSION
BONUS FOR NUCLEAR-QUALIFIED OFFICERS.
(a) INCREASE.—Section 312b(a)(1) of title 37, United
States Code, is amended by striking ‘‘$20,000’’ and insert-
ing ‘‘$30,000’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2006, and shall
apply with respect to agreements under section 312b of title
37, United States Code, entered into on or after that date.
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SEC. 618. MODIFICATION OF CERTAIN AUTHORITIES APPLI-
CABLE TO THE TARGETED SHAPING OF THE
ARMED FORCES.
(a) VOLUNTARY SEPARATION PAY AND BENEFITS.
(1) INCREASE IN MAXIMUM AMOUNT OF PAY.—
Subsection (f) of section 1175a of title 10, United
States Code, is amended by striking ‘‘two times’’ and
inserting ‘‘four times’’.
(2) EXTENSION
OF
AUTHORITY.—Subsection
(k)(1) of such section is amended by striking ‘‘Decem-
ber 31, 2008’’ and inserting ‘‘December 31, 2012’’.
(3) REPEAL OF LIMITATION ON APPLICABILITY.—
Subsection (b) of section 643 of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law
109–163; 119 Stat. 3310; 10 U.S.C. 1175a note) is re-
pealed.
(b) RELAXATION OF LIMITATION ON SELECTIVE EARLY
RETIREMENT.—Section 638(a)(2) of title 10, United States
Code, is amended by adding at the end the following new
sentence: ‘‘However, during the period beginning on October
1, 2006, and ending on December 31, 2012, such number
may be more than 30 percent of the number of officers con-
sidered in each competitive category, but may not be more
than 30 percent of the number of officers considered in each
grade.’’.
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(c) ENHANCED AUTHORITY FOR SELECTIVE EARLY
RETIREMENT AND EARLY DISCHARGES.—
(1) RENEWAL OF AUTHORITY.—Subsection (a) of
section 638a of title 10, United States Code, is
amended by inserting ‘‘and during the period begin-
ning on October 1, 2006, and ending on December 31,
2012,’’ after ‘‘December 31, 2001,’’.
(2) RELAXATION OF LIMITATION ON SELECTIVE
EARLY RETIREMENT.—Subsection (c)(1) of such sec-
tion is amended by adding at the end the following
new sentence: ‘‘However, during the period beginning
on October 1, 2006, and ending on December 31,
2012, such number may be more than 30 percent of
the number of officers considered in each competitive
category, but may not be more than 30 percent of the
number of officers considered in each grade.’’.
(3) RELAXATION OF LIMITATION ON SELECTIVE
EARLY DISCHARGE.—Subsection (d)(2) of such section
is amended—
(A) in subparagraph (A), by inserting be-
fore the semicolon the following: ‘‘, except that
during the period beginning on October 1, 2006,
and ending on December 31, 2012, such number
may be more than 30 percent of the officers con-
sidered in each competitive category, but may
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not be more than 30 percent of the number of of-
ficers considered in each grade’’; and
(B) in subparagraph (B), by inserting be-
fore the period the following: ‘‘, except that dur-
ing the period beginning on October 1, 2006, and
ending on December 31, 2012, such number may
be more than 30 percent of the officers considered
in each competitive category, but may not be
more than 30 percent of the number of officers
considered in each grade’’.
(d) INCREASE IN AMOUNT OF INCENTIVE BONUS FOR
TRANSFER BETWEEN ARMED FORCES.—Section 327(d)(1)
of title 37, United States Code, is amended by striking
‘‘$2,500’’ and inserting ‘‘$10,000’’.
SEC. 619. EXTENSION OF PILOT PROGRAM ON CONTRIBU-
TIONS TO THRIFT SAVINGS PLAN FOR INI-
TIAL ENLISTEES IN THE ARMY.
(a) EXTENSION.—Subsection (a) of section 606 of the
National Defense Authorization Act for Fiscal Year 2006
(Public Law 109–163; 119 Stat. 3287; 37 U.S.C. 211 note)
is amended by striking ‘‘During fiscal year 2006’’ and in-
serting ‘‘During the period beginning on January 6, 2006,
and ending on December 31, 2008’’.
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(b) REPORT DATE.—Subsection (d)(1) of such section
is amended by striking ‘‘February 1, 2007’’ and inserting
‘‘February 1, 2008’’.
SEC. 620. ACCESSION BONUS FOR MEMBERS OF THE ARMED
FORCES APPOINTED AS COMMISSIONED OFFI-
CERS AFTER COMPLETING OFFICER CAN-
DIDATE SCHOOL.
(a) ACCESSION BONUS AUTHORIZED.—
(1) IN GENERAL.—Chapter 5 of title 37, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 329. Special pay: accession bonus for officer can-
didates
‘‘(a) ACCESSION BONUS AUTHORIZED.—Under regula-
tions prescribed by the Secretary concerned, a person who,
during the period beginning on October 1, 2006, and ending
on December 31, 2007, executes a written agreement de-
scribed in subsection (b) may, upon acceptance of the agree-
ment by the Secretary concerned, be paid an accession
bonus in an amount not to exceed $8,000 determined by
the Secretary concerned.
‘‘(b) AGREEMENT.—A written agreement described in
this subsection is a written agreement by a person—
‘‘(1) to complete officer candidate school;
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‘‘(2) to accept a commission or appointment as
an officer of the armed forces; and
‘‘(3) to serve on active duty as a commissioned
officer for a period specified in such agreement.
‘‘(c) PAYMENT METHOD.—Upon acceptance of a writ-
ten agreement under subsection (a) by the Secretary con-
cerned, the total amount of the accession bonus payable
under the agreement becomes fixed. The agreement shall
specify whether the accession bonus will be paid in a lump
sum or installments.
‘‘(d) REPAYMENT.—A person who, having received all
or part of the bonus under a written agreement under sub-
section (a), does not complete the total period of active duty
as a commissioned officer as specified in such agreement
shall be subject to the repayment provisions of section
303a(e) of this title.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 5 of such title is
amended by adding at the end the following new item:
‘‘329. Special pay: accession bonus for officer candidates.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on October 1, 2006.
(b) AUTHORITY FOR PAYMENT OF BONUS UNDER EAR-
LIER AGREEMENTS.—
(1) IN GENERAL.—The Secretary of the Army
may pay a bonus to a person who, during the period
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beginning on April 1, 2005, and ending on April 6,
2006, executed an agreement to enlist for the purpose
of attending officer candidate school and receive a
bonus under section 309 of title 37, United States
Code, and who has completed the terms of the agree-
ment required for payment of the bonus.
(2) LIMITATION ON AMOUNT.—The amount of the
bonus payable to a person under this subsection may
not exceed $8,000.
(3) CONSTRUCTION WITH ENLISTMENT BONUS.—
The bonus payable under this subsection is in addi-
tion to a bonus payable under section 309 of title 37,
United States Code, or any other provision of law.
SEC. 621. ENHANCEMENT OF BONUS TO ENCOURAGE MEM-
BERS OF THE ARMY TO REFER OTHER PER-
SONS FOR ENLISTMENT IN THE ARMY.
(a) INDIVIDUALS ELIGIBLE FOR BONUS.—Subsection
(a) of section 645 of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3310)
is amended—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(1) IN GENERAL.—The Secretary’’;
(2) by striking ‘‘a member of the Army, whether
in the regular component of the Army or in the Army
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National Guard or Army Reserve,’’ and inserting ‘‘an
individual referred to in paragraph (2)’’; and
(3) by adding at the end the following new para-
graph:
‘‘(2) INDIVIDUALS ELIGIBLE FOR BONUS.—Sub-
ject to subsection (c), the following individuals are eli-
gible for a referral bonus under this section:
‘‘(A) A member in the regular component of
the Army.
‘‘(B) A member of the Army National
Guard.
‘‘(C) A member of the Army Reserve.
‘‘(D) A member of the Army in a retired
status, including a member under 60 years of
age who, but for age, would be eligible for retired
pay.
‘‘(E) A civilian employee of the Department
of the Army.’’.
(b) AMOUNT OF BONUS.—Subsection (d) of such sec-
tion is amended to read as follows:
‘‘(d) AMOUNT OF BONUS.—The amount of the bonus
payable for a referral under subsection (a) may not exceed
$2,000. The amount shall be payable in two lump sums as
provided in subsection (e).’’.
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(c) PAYMENT OF BONUS.—Subsection (e) of such sec-
tion is amended to read as follows:
‘‘(e) PAYMENT.—A bonus payable for a referral of a
person under subsection (a) shall be paid as follows:
‘‘(1) Not more than $1,000 shall be paid upon
the commencement of basic training by the person re-
ferred.
‘‘(2) Not more than $1,000 shall be paid upon
the completion of basic training and individual ad-
vanced training by the person referred.’’.
(d) COORDINATION
WITH
RECEIPT
OF
RETIRED
PAY.—Such section is further amended—
(1) by redesignating subsection (g) as subsection
(h); and
(2) by inserting after subsection (f) the following
new subsection (g):
‘‘(g) COORDINATION WITH RECEIPT
OF RETIRED
PAY.—A bonus paid under this section to a member of the
Army in a retired status is in addition to any compensa-
tion to such member is entitled under title 10, 37, or 38,
United States Code, or under any other provision of law.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act, and shall apply with respect to bonuses payable under
section 645 of the National Defense Authorization Act for
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Fiscal Year 2006, as amended by this section, on or after
that date.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. EXPANSION OF PAYMENT OF REPLACEMENT
VALUE OF PERSONAL PROPERTY DAMAGED
DURING TRANSPORT AT GOVERNMENT EX-
PENSE.
(a) COVERAGE OF PROPERTY OF CIVILIAN EMPLOYEES
OF DEPARTMENT OF DEFENSE.—Subsection (a) of section
2636a of title 10, United States Code, is amended by insert-
ing ‘‘or civilian employees of the Department of Defense’’
after ‘‘members of the armed forces’’.
(b) REQUIREMENT FOR PAYMENT.—Effective March 1,
2008, such subsection is further amended by striking ‘‘may
include’’ and inserting ‘‘shall include’’.
(c) REQUIREMENT FOR DEDUCTION UPON FAILURE OF
CARRIER TO SETTLE.—Subsection (b) of such section is
amended by striking ‘‘may be deducted’’ and inserting
‘‘shall be deducted’’.
(d) CERTIFICATION ON FAMILIES FIRST PROGRAM.—
The Secretary of Defense shall submit to the congressional
defense committees a report containing the certifications of
the Secretary on the following matters with respect to the
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program of the Department of Defense known as ‘‘Families
First’’:
(1) Whether there is an alternative to the system
under the program that would provide equal or great-
er capability at less cost.
(2) Whether the estimates on costs, and the an-
ticipated schedule and performance parameters, for
the program and system are reasonable.
(3) Whether the management structure for the
program is adequate to manage and control program
costs.
(e) COMPTROLLER GENERAL REPORTS ON FAMILIES
FIRST PROGRAM.—
(1) REVIEW.—The Comptroller General of the
United States shall conduct a review and assessment
of the progress of the Department of Defense in imple-
menting the Families First program.
(2) ELEMENTS.—In conducting the review and
assessment required by paragraph (1), the Comp-
troller General shall—
(A) assess the progress of the Department in
achieving the goals of the Families First pro-
gram, including progress in the development and
deployment of the Defense Personal Property
System;
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(B) assess the organization, staffing, re-
sources, and capabilities of the Defense Personal
Property System Project Management Office es-
tablished on April 7, 2006;
(C) evaluate the growth in cost of the pro-
gram since the previous assessment of the pro-
gram by the Comptroller General, and estimate
the current annual cost of the Defense Personal
Property System and each component of that
system; and
(D) assess the feasibility of implementing
processes and procedures, pending the satisfac-
tory development of the Defense Personal Prop-
erty System, which would achieve the goals of the
program of providing improved personal prop-
erty management services to members of the
Armed Forces.
(3) REPORTS.—The Comptroller General shall
submit to the Committees on Armed Services of the
Senate and the House of Representatives reports as
follows:
(A) An interim report on the review and as-
sessment required by paragraph (1) not later
than December 1, 2006.
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(B) A final report on the review and assess-
ment by not later than June 1, 2007.
Subtitle D—Retired Pay and
Survivor Benefits
SEC. 641. MODIFICATION OF DEPARTMENT OF DEFENSE
CONTRIBUTIONS TO MILITARY RETIREMENT
FUND AND GOVERNMENT CONTRIBUTIONS
TO MEDICARE-ELIGIBLE RETIREE HEALTH
CARE FUND.
(a) DEPARTMENT OF DEFENSE MILITARY RETIRE-
MENT FUND.—
(1) DETERMINATION OF CONTRIBUTIONS.—Sec-
tion 1465 of title 10, United States Code, is
amended—
(A) in subsection (b)(1)—
(i) in subparagraph (A)(ii)—
(I) by striking ‘‘(other than active
duty for training)’’;
(II) by striking ‘‘(other than full-
time National Guard duty for training
only)’’; and
(III) by inserting before the pe-
riod at the end the following: ‘‘, except
that amounts expected to be paid to
members who would be excluded from
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counting for active-duty end strength
purposes by section 115(i) of this title
for duty covered by such section shall
be excluded’’; and
(ii) in subparagraph (B)(ii)—
(I) by striking ‘‘Ready Reserve’’
and inserting ‘‘Selected Reserve’’; and
(II) by striking ‘‘and other than
members on full-time National Guard
duty other than for training) who are’’
and inserting ‘‘) for duty’’; and
(B) in subsection (c)(1)—
(i) in subparagraph (A)—
(I) by striking ‘‘(other than active
duty for training)’’;
(II) by striking ‘‘(other than full-
time National Guard duty for training
only)’’; and
(III) by inserting ‘‘other than
members who would be excluded from
counting for active-duty end strength
purposes by section 115(i) of this title
for duty covered by such section,’’ after
‘‘full-time National Guard duty,’’; and
(ii) in subparagraph (B)—
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(I) by striking ‘‘Ready Reserve’’
and inserting ‘‘Selected Reserve’’; and
(II) by striking ‘‘and other than
members on full-time National Guard
duty other than for training) who are’’
and inserting ‘‘) for duty’’.
(2) PAYMENTS.—Section 1466(a) of such title is
amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘(other than active duty
for training)’’;
(ii) by striking ‘‘(other than full-time
National Guard duty for training only)’’;
and
(iii) by inserting before the period at
the end the following: ‘‘, except that
amounts accrued for that month by mem-
bers who would be excluded from counting
for active-duty end strength purposes by sec-
tion 115(i) of this title for duty covered by
such section shall be excluded’’; and
(B) in paragraph (2)(B)—
(i) by striking ‘‘Ready Reserve’’ and
inserting ‘‘Selected Reserve’’; and
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(ii) by striking ‘‘and other than mem-
bers on full-time National Guard duty other
than for training) who are’’ and inserting
‘‘) for duty’’.
(b) DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE
RETIREE HEALTH CARE FUND.—
(1) EXCLUSION
OF
CADETS
AND
MIDSHIPMEN
FROM TREATMENT ON ACTIVE DUTY.—Section 1111(b)
of such title is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) The term ‘members of the uniformed services
on active duty’ does not include a cadet at the United
States Military Academy, the United States Air Force
Academy, or the United States Coast Guard Acad-
emy, or a midshipman at the United States Naval
Academy.’’.
(2) DETERMINATION OF CONTRIBUTIONS.—Sec-
tion 1115 of such title is amended—
(A) in subsection (b)—
(i) in paragraph (1)(B)—
(I) by striking ‘‘(other than active
duty for training)’’;
(II) by striking ‘‘(other than full-
time National Guard duty for training
only)’’; and
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(III) by inserting before the pe-
riod at the end the following: ‘‘, other
than members who would be excluded
from counting for active-duty end
strength purposes by section 115(i) of
this title for duty covered by such sec-
tion’’; and
(ii) in paragraph (2)(B)—
(I) by striking ‘‘Ready Reserve’’
and inserting ‘‘Selected Reserve’’; and
(II) by striking ‘‘other than mem-
bers on full-time National Guard duty
other than for training)’’; and
(B) in subsection (c)(1)—
(i) in subparagraph (A)—
(I) by striking ‘‘(other than active
duty for training)’’;
(II) by striking ‘‘(other than full-
time National Guard duty for training
only)’’; and
(III) by inserting before the semi-
colon the following: ‘‘, other than mem-
bers who would be excluded from
counting for active-duty end strength
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purposes by section 115(i) of this title
for duty covered by such section’’; and
(ii) in subparagraph (B)—
(I) by striking ‘‘Ready Reserve’’
and inserting ‘‘Selected Reserve’’; and
(II) by striking ‘‘(other than
members on full-time National Guard
duty other than for training)’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 2007.
SEC. 642. REPEAL OF REQUIREMENT OF REDUCTION OF
SBP SURVIVOR ANNUITIES BY DEPENDENCY
AND INDEMNITY COMPENSATION.
(a) REPEAL.—
(1) IN GENERAL.—Subchapter II of chapter 73 of
title 10, United States Code, is amended as follows:
(A) In section 1450, by striking subsection
(c).
(B) In section 1451(c)—
(i) by striking paragraph (2); and
(ii) by redesignating paragraphs (3)
and (4) as paragraphs (2) and (3), respec-
tively.
(2) 
CONFORMING
AMENDMENTS.—Such 
sub-
chapter is further amended as follows:
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(A) In section 1450—
(i) by striking subsection (e); and
(ii) by striking subsection (k).
(B) In section 1451(g)(1), by striking sub-
paragraph (C).
(C) In section 1452—
(i) in subsection (f)(2), by striking
‘‘does not apply—’’ and all that follows and
inserting ‘‘does not apply in the case of a
deduction made through administrative
error.’’; and
(ii) by striking subsection (g).
(D) In section 1455(c), by striking ‘‘,
1450(k)(2),’’.
(b) PROHIBITION ON RETROACTIVE BENEFITS.—No
benefits may be paid to any person for any period before
the effective date provided under subsection (e) by reason
of the amendments made by subsection (a).
(c) RETURN OF SBP PREMIUMS PREVIOUSLY RE-
FUNDED TO SBP RECIPIENTS.—
(1) RETURN OF CERTAIN REFUNDED AMOUNTS
REQUIRED.—Under regulations prescribed by the Sec-
retary of Defense, a surviving spouse who is or has
been in receipt of an annuity under the Survivor
Benefit Plan under subchapter II of chapter 73 of
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title 10, United States Code, that is in effect before
the effective date provided under subsection (e) and
that is adjusted by reason of the amendments made
by subsection (a) and who has received a refund of re-
tired pay under section 1450(e) of title 10, United
States Code (as in effect on the day before the effective
date provided under subsection (e)), shall be required
to repay such refund to the United States.
(2) TERMS
AND
CONDITIONS.—A surviving
spouse repaying a refund to the United States under
this subsection shall not be required to pay the United
States any interest that would otherwise accrue or
have accrued on any balance of such refund while
such balance remains unpaid to the United States
under this subsection. The amount repayable to the
United States shall be repayable in a lump sum or
over a period of years (not to exceed 10 years) agreed
to by the surviving spouse or specified by the Sec-
retary of Defense, in the absence of such an agree-
ment.
(3) WAIVER OF REPAYMENT.—The Secretary of
Defense may waive the repayment of a refund under
this subsection if the Secretary determines that—
(A) hardship or other circumstances make
repayment of such refund unwarranted;
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(B) repayment of such refund would other-
wise not be in the best interests of the United
States.
(d) RECONSIDERATION OF OPTIONAL ANNUITY.—Sec-
tion 1448(d)(2)(B) of title 10, United States Code, is
amended by adding at the end the following new sentences:
‘‘The surviving spouse, however, may elect to terminate an
annuity under this subparagraph in accordance with regu-
lations prescribed by the Secretary concerned. Upon such
an election, payment of an annuity to dependent children
under this subparagraph shall terminate effective on the
first day of the first month that begins after the date on
which the Secretary concerned receives notice of the election,
and, beginning on that day, an annuity shall be paid to
the surviving spouse under paragraph (1) instead.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the later of—
(1) the first day of the first month that begins
after the date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in
the calendar year in which this Act is enacted.
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SEC. 643. EFFECTIVE DATE OF PAID-UP COVERAGE UNDER
SURVIVOR BENEFIT PLAN.
Section 1452(j) of title 10, United States Code, is
amended by striking ‘‘October 1, 2008’’ and inserting ‘‘Oc-
tober 1, 2006’’.
SEC. 644. EXPANSION OF CONDITIONS FOR DIRECT PAY-
MENT OF DIVISIBLE RETIRED PAY.
(a) 
REPEAL
OF
CERTAIN
CONDITION.—Section
1408(d) of title 10, United States Code, is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraphs (3) through (7)
as paragraphs (2) through (6), respectively.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
subsection (a) shall take effect on the first day of the
first month that begins more than 120 days after the
date of the enactment of this Act.
(2) PROHIBITION ON RETROACTIVE PAYMENTS.—
No payment may be made under section 1408(d) of
title 10, United States Code, to or for the benefit of
any person covered by paragraph (2) of such section
(as in effect on the day before the effective date speci-
fied in paragraph (1)) for any period before such ef-
fective date.
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SEC. 645. AUTHORITY FOR COST OF LIVING ADJUSTMENTS
OF RETIRED PAY TREATED AS DIVISIBLE
PROPERTY.
(a) IN GENERAL.—Section 1408 of title 10, United
States Code, is amended—
(1) by redesignating subsections (i), (j), and (k)
as subsections (j), (k), and (l), respectively; and
(2) by inserting after subsection (h) the following
new subsection (i):
‘‘(i) COST OF LIVING ADJUSTMENTS OF DIVISIBLE
PROPERTY.—A court order under subsection (a)(2)(C) may
provide for the adjustment of the amount, if expressed in
dollars, payable from the disposable retired pay of a mem-
ber at the same time and in the same manner as retired
pay is adjusted to reflect changes in the Consumer Price
Index under section 1401a of this title.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date of the enactment
of this Act, and shall apply with respect to court orders
that become effective after the end of the 90-day period be-
ginning on the date of enactment of this Act.
SEC. 646. NOTICE AND COPY TO MEMBERS OF COURT OR-
DERS ON PAYMENT OF RETIRED PAY.
(a) WAIVER OF NOTICE.—Subsection (g) of section
1408 of title 10, United States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘A person’’; and