‘‘(d) REPAYMENT.—A person who, having received all 
or part of the bonus under an agreement referred to in 
subsection (a), does not complete the total period of active 
duty service as a commissioned officer as specified in the 
agreement shall be subject to the repayment provisions in 
section 303a(e) of this title. 
‘‘(e) AUTHORITY FOR PAYMENT OF BONUS UNDER 
EARLIER AGREEMENTS.—The Secretary of the Army 
shall use this authority to retroactively pay a bonus to a 
person who executed an agreement during the period from 
April 1, 2005 through April 1, 2006 to enlist for the pur-
pose of attending officer candidate school.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘330. Special pay: accession bonus for officer candidates.’’. 
Subtitle C—Retired Pay and 
Survivor Benefits 
SEC. 631. WAIVER OF RECOUPMENT OF OVERPAYMENTS OF 
RETIRED 
PAY 
TO 
SPOUSE 
OR 
FORMER 
SPOUSE AS A RESULT OF RETROACTIVE DIS-
ABILITY DETERMINATION. 
Section 2774 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
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‘‘(g)(1) The Director of the Office of Management 
and Budget or the Secretary concerned, as the case may 
be, shall waive any claim for overpayment against a spouse 
or former spouse of a member if— 
‘‘(A) the payment was disposable retired pay 
that, pursuant to section 1408 of this title, a court 
treated as property for the purpose of issuing a final 
decree of divorce, dissolution, annulment, or legal 
separation, including a court ordered, ratified, or ap-
proved property settlement incident to such decree; 
and 
‘‘(B) the claim for overpayment is attributable 
to a determination of entitlement to disability com-
pensation under title 38. 
‘‘(2) In this section: 
‘‘(A) The term ‘court’ has the meaning given 
such term in section 1408(a)(1) of this title. 
‘‘(B) The term ‘disposable retired pay’ has the 
meaning given such term in section 1408(a)(4) of 
this title. 
‘‘(C) The term ‘final decree’ has the meaning 
given such term in section 1408(a)(3) of this title. 
‘‘(D) The term ‘member’ has the meaning given 
such term in section 1408(a)(5) of this title. 
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‘‘(E) The term ‘spouse or former spouse’ has 
the meaning given such term in section 1408(a)(6) 
of this title.’’. 
SEC. 632. SURVIVOR BENEFIT PLAN; EXTENSION OF PE-
RIOD FOR ELECTION DEEMED TO HAVE BEEN 
MADE. 
(a) IN GENERAL.—Section 1450(f)(3)(C) of title 10, 
United States Code, is amended by striking ‘‘one year’’ 
and inserting ‘‘five years’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to divorces, dissolu-
tions, annulments, or legal separations that become effec-
tive after the end of the 90-day period beginning on the 
date of enactment of this Act. 
SEC. 633. ALLOWING MEMBER TO SUBMIT APPLICATION 
FOR DIRECT PAYMENT. 
(a) PERMIT APPLICATION FOR DIRECT PAYMENT BY 
MEMBER.—Section 1408(d) of title 10, United States 
Code, is amended in the first sentence of paragraph (1) 
by inserting ‘‘by a member or former member or the 
spouse or former spouse of such member’’ after ‘‘the Sec-
retary concerned’’. 
(b) CONDITIONS
FOR DIRECT PAYMENT.—Section 
1408(d) of such title is further amended by adding at the 
end the following new paragraph: 
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‘‘(8) A former spouse who accepts payment 
shall be deemed— 
‘‘(A) to have consented and agreed to the 
recovery of any future overpayments, including 
recovery by involuntary collection from the 
former spouse or his or her estate; and 
‘‘(B) to have agreed to give prompt notice 
in writing to the Secretary if— 
‘‘(i) the operative court order upon 
which payment is based is vacated, modi-
fied, or set aside; 
‘‘(ii) the former spouse remarries, if 
all or a part of the payment is for alimony; 
or 
‘‘(iii) the former spouse is ineligible 
for child support payments due to the 
death, emancipation, adoption, or attain-
ment of majority of a child whose support 
is provided through direct payment to a 
former spouse from retired pay.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to applications for direct payment 
of retired pay submitted to the Secretary concerned after 
the end of the 90-day period beginning on the date of en-
actment of this Act. 
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SEC. 634. DIVISION OF RETIRED PAY TO BE BASED ON MEM-
BER’S LENGTH OF SERVICE AND PAY GRADE 
AT TIME OF DIVORCE. 
(a) IN GENERAL.—Section 1408(c) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph: 
‘‘(5) In the case of a member as to whom a de-
cree of divorce, dissolution, annulment, or legal sepa-
ration becomes final before the date on which the 
member begins to receive retired pay, the total 
monthly retired pay to which a member is entitled, 
for purposes of determining ‘disposable retired pay,’ 
as defined in paragraph (4) of subsection (a), that 
a court may treat in the manner described in para-
graph (1), shall be limited to retired pay computed 
based on the pay grade, and the length of service of 
the member while married, that are creditable to-
ward entitlement to basic pay and to retired pay as 
of the date a marital property interest in retired pay 
terminates. Amounts so calculated shall be increased 
by the cumulative percentage of increases in basic 
pay and retired pay between the date a marital 
property interest in retired pay terminates and the 
effective date of the member’s retirement. Upon re-
quest and pursuant to regulations, the Secretary 
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concerned shall calculate disposable retired pay de-
scribed in this paragraph.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to divorces, dissolu-
tions, annulments, and legal separations that become ef-
fective after the end of the 90-day period beginning on 
the date of enactment of this Act. 
SEC. 635. INCREASES FOR DIVISIONS OF RETIRED PAY EX-
PRESSED AS A DOLLAR AMOUNT. 
(a) MONETARY
AMOUNT
ADJUSTMENT.—Section 
1408(a)(2)(C) of title 10, United States Code, is amended 
by striking ‘‘expressed in dollars’’ and inserting ‘‘ex-
pressed as a specific dollar amount, with such amount, 
if so ordered, being adjusted in the same manner and at 
the same time as retired pay is adjusted to reflect changes 
in the Consumer Price Index under section 1401a of this 
title,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to court orders that 
become effective after the end of the 90-day period begin-
ning on the date of enactment of this Act. 
SEC. 636. REVOCATION OF TEN-YEAR RULE FOR DIRECT 
PAYMENT OF RETIRED PAY. 
(a) REVOCATION
OF
TEN-YEAR
RULE.—Section 
1408(d) of title 10, United States Code, is amended— 
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(1) by striking paragraph (2); and 
(2) by redesignating paragraphs (3) through 
(7) as paragraphs (2) through (6), respectively. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the first day of the first 
month which begins more than 120 days after the date 
of enactment of this Act and shall apply only to payments 
of retired pay for periods beginning on or after the effec-
tive date of this section in the case of any former spouse 
of a member or former member of the uniformed services. 
SEC. 637. SURVIVOR BENEFIT PLAN; MULTIPLE BENE-
FICIARIES. 
(a) PERMIT SPOUSE AND FORMER SPOUSE COV-
ERAGE.—Section 1448(b)(2) of title 10, United States 
Code, is amended— 
(1) in subparagraph (B)— 
(A) by striking ‘‘prevents payment’’ and 
inserting ‘‘reduces the amount’’; and 
(B) by striking ‘‘including payment’’ and 
inserting ‘‘including the amount of an annuity’’; 
and 
(2) in subparagraph (C), by striking ‘‘which 
former spouse is to be provided the annuity’’ and in-
serting ‘‘the base amount applicable in determining 
the amount of the annuity of each former spouse’’. 
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(b) PERMIT SPOUSE AND FORMER SPOUSE ANNU-
ITIES.—Section 1450(a)(1) of such title is amended to 
read as follows: 
‘‘(1) 
SURVIVING
SPOUSE
AND
FORMER 
SPOUSE(S).—The eligible surviving spouse and every 
eligible former spouse.’’. 
(c) PERMIT REDUCTIONS IN RETIRED PAY IN THE 
CASE OF MULTIPLE BENEFICIARIES.—Section 1452 of 
such title is amended by adding at the end the following 
new subsection: 
‘‘(k) REDUCTIONS IN RETIRED PAY IN THE CASE OF 
MULTIPLE BENEFICIARIES.—When a participant in the 
Plan has elected to provide an annuity to a spouse and 
to one or more former spouses, reductions in retired pay 
required by subsection (a) shall be made for each annuity 
elected, in an amount based on the base amount applicable 
to each annuity. In the case of a reduction in retired pay 
to provide an annuity to a former spouse to whom pay-
ment of a portion of a member’s retired pay is being made 
pursuant to a court order under section 1408 of this title, 
such reduction in retired pay shall be deducted from the 
amounts paid to such member, to such former spouse, or 
both, as provided by court order or by agreement of the 
parties.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
subsections (a), (b), and (c) apply with respect to elections 
made on or after the date of enactment of this Act. Any 
election to provide an annuity to a spouse or former 
spouse who was prevented from being a beneficiary under 
the laws in effect before the date of enactment of this Act 
shall be made within 180 days following the date of enact-
ment of this Act. 
(e) COVERAGE FOR SURVIVORS OF RETIREMENT-EL-
IGIBLE MEMBERS WHO DIE ON ACTIVE DUTY.—(1) Sec-
tion 1448(d) of such title is amended— 
(A) in paragraph (3), by striking ‘‘the Sec-
retary—(A) may not pay an annuity under para-
graph (1) or (2); but (B)’’ and inserting ‘‘the Sec-
retary’’; and 
(B) by amending paragraph (5) to read as fol-
lows: 
‘‘(5) COMPUTATION.—(A) The amount of an 
annuity payable to a former spouse pursuant to 
paragraph (3) shall be computed on the basis of a 
base amount equal to the amount of retired pay 
that, under the authority of section 1408(c) of this 
title, is treated under a court order or spousal agree-
ment as the property of such former spouse. 
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‘‘(B) The amount of an annuity payable under 
paragraph (1) or (2) shall be computed under sec-
tion 1451(c) of this title; however, the retired pay 
otherwise applicable with respect to such computa-
tion shall be reduced by an amount equal to the base 
amount that provides the basis for computing the 
amount of an annuity payable to a former spouse 
under paragraph (3) of this subsection.’’. 
(2) EFFECTIVE DATE.—The amendments made by 
paragraph (1) shall apply with respect to survivors of re-
tirement-eligible members who die on active duty on or 
after the date of enactment of this Act. 
(f) COVERAGE FOR SURVIVORS OF PERSONS DYING 
WHEN ELIGIBLE TO ELECT RESERVE COMPONENT AN-
NUITY.—(1) Section 1448(f) of such title is amended— 
(A) by striking ‘‘the Secretary—(A) may not 
pay an annuity under paragraph (1) or (2); but 
(B)’’ and inserting ‘‘the Secretary’’; and 
(B) by amending paragraph (4) to read as fol-
lows: 
‘‘(4) COMPUTATION.—(A) The amount of an 
annuity payable to a former spouse pursuant to 
paragraph (3) shall be computed on the basis of a 
base amount equal to the amount of retired pay 
that, under the authority of section 1408(c) of this 
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title, is treated under a court order or spousal agree-
ment as the property of such former spouse. 
‘‘(B) The amount of an annuity payable under 
paragraph (1) or (2) shall be computed under sec-
tion 1451(c) of this title; however, the retired pay 
otherwise applicable with respect to such computa-
tion shall be reduced by an amount equal to the base 
amount that provides the basis for computing the 
amount of an annuity payable to a former spouse 
under paragraph (3) of this subsection.’’. 
(2) EFFECTIVE DATE.—The amendments made by 
paragraph (1) shall apply with respect to survivors of per-
sons eligible to elect reserve-component annuity retire-
ment-eligible members who die on or after the date of en-
actment of this Act. 
SEC. 638. SURVIVOR BENEFIT PLAN; FINANCIAL RESPONSI-
BILITY FOR SURVIVOR BENEFIT PLAN PAR-
TICIPATION. 
(a) SPOUSE AND FORMER SPOUSE ANNUITIES.—Sec-
tion 1452(a) of title 10, United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘paragraph 
(6) of this subsection or’’ after ‘‘Except as provided 
in’’; and 
(2) by adding at the end the following new 
paragraph: 
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‘‘(6) COURT ORDER.—If a court order requires 
the former spouse to pay all or a part of the costs 
associated with providing an annuity to the former 
spouse, the participant’s retired pay shall not be re-
duced by the portion that the former spouse is re-
quired to pay. The portion of Plan costs that a 
former spouse is required to pay pursuant to a 
Court order under this paragraph must either be 
paid by direct remittance or as a deduction from the 
former spouse’s share of the member’s retired pay 
that is received by direct payment pursuant to sec-
tion 1408 of this title.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to divorces, dissolu-
tions, annulments, or legal separations that become effec-
tive after the end of the 90-day period beginning on the 
date of enactment of this Act. 
SEC. 639. SURVIVOR BENEFIT PLAN; PRESUMPTIVE PRO-
PORTIONATE SHARE. 
(a) PRESUMPTIVE BASE AMOUNT
FOR FORMER 
SPOUSE.—Section 1447(6) of title 10, United States 
Code, is amended by adding at the end the following new 
subparagraph: 
‘‘(D) 
PRESUMPTIVE
PROPORTIONATE 
AMOUNT FOR FORMER SPOUSE.—In the case of 
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an annuity provided under the Plan for a 
former spouse, unless otherwise agreed to by 
the member and former spouse or ordered by a 
court, such term means any amount of monthly 
retired pay, which is not less than $300, pay-
able to such former spouse as a result of a 
court treating disposable retired pay of a mem-
ber as the property of the member and his 
spouse under the authority of section 1408(c).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to divorces, dissolu-
tions, annulments, and legal separations that become ef-
fective after the end of the 90-day period beginning on 
the date of enactment of this Act. 
Subtitle D—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits 
SEC. 641. CONTINUATION OF COMMISSARY AND EXCHANGE 
PRIVILEGES. 
Section 1146 of title 10, United States Code is 
amended— 
(1) by inserting ‘‘, or a member of the Selected 
Reserve of the Ready Reserve who is involuntarily 
separated from the Selected Reserve due to force 
shaping requirements directed by the Secretary of 
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the military department concerned,’’ after ‘‘active 
duty’’ the first place it appears; and 
(2) by striking ‘‘October 1, 1990, and ending 
on December 31, 2001’’ and inserting ‘‘October 1, 
2007, and ending on December 31, 2012’’. 
Subtitle E—Other Matters 
SEC. 651. CHANGE IN THE DEFINITION OF SEA DUTY FOR 
CAREER SEA PAY TO INCLUDE MULTI-CREW 
SHIPS. 
Section 305a(e)(1)(A) of title 37, United States 
Code, is amended— 
(1) by striking ‘‘or’’ at the end of clause (ii); 
and 
(2) by adding at the end the following new 
clause: 
‘‘(iv) while serving as an off-cycle 
crewmember of a multi-crewed ship; or’’. 
SEC. 652. ESTABLISHMENT OF ARMY INCENTIVE FUND. 
(a) ESTABLISHMENT OF FUND.—Part II of subtitle 
B of title 10, United States Code, is amended by adding 
at the end the following new chapter: 
‘‘CHAPTER 376—FUND FOR PAYMENT OF 
INCENTIVES AND BONUSES 
‘‘Sec. 
‘‘4101. Fund for payment of incentives and bonuses. 
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‘‘§ 4101. Fund for payment of incentives and bonuses 
‘‘(a) ESTABLISHMENT OF FUND.—There is estab-
lished on the books of the Treasury a fund to be known 
as the Army Incentive Fund (hereinafter in this section 
referred to as the ‘Fund’), which shall be administered by 
the Secretary of the Treasury. The Fund shall be used 
for the accumulation of funds in order to finance on an 
actuarially sound basis Army bonus and incentive liabil-
ities that have been specifically authorized by law to be 
paid from the Fund. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘specifically authorized Army 
bonus and incentive liabilities’ means liabilities of 
the Department of the Army for a bonus or incen-
tive under— 
‘‘(A) chapter 5 of title 37, that is specifi-
cally authorized by law to be paid from the 
Fund; or 
‘‘(B) section 681 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public 
Law 109–163). 
‘‘(2) The term ‘normal cost’, with respect to 
any period of time, means the present value of fu-
ture bonuses and incentives payable to persons who 
during such period qualify for a bonus or incentive 
authorized by law to be paid from the Fund. 
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‘‘(c) ASSETS OF THE FUND.—There shall be depos-
ited into the Fund the following, which shall constitute 
the assets of the Fund: 
‘‘(1) Amounts paid into the Fund under sub-
section (g). 
‘‘(2) Any amount appropriated directly to the 
Fund. 
‘‘(3) Any return on investment of the assets of 
the Fund. 
‘‘(d) PAYMENTS FROM THE FUND.—The Secretary 
of the Treasury shall transfer from the Fund to the Sec-
retary of the Army only such amounts as are necessary 
to enable the Secretary to make required payments of spe-
cifically authorized Army bonus and incentive liabilities, 
as defined in subsection (b)(1). The Secretary of the 
Treasury and the Secretary of the Army shall enter into 
an agreement as to how and when, and the amounts in 
which, such transfers shall be made. Except for invest-
ments under subsection (h), amounts in the Funds may 
not be used for any purpose other than transfers described 
in this subsection. 
‘‘(e) BOARD OF ACTUARIES.—The Board of Actu-
aries established under section 2006(e) of this title (here-
inafter in this section referred to as the ‘Board’) shall re-
port to the Secretary of Defense annually on the actuarial 
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status of the Fund and shall furnish its advice and opinion 
on matters referred to it by the Secretary. 
‘‘(f) DETERMINATIONS OF CONTRIBUTIONS TO THE 
FUND.—(1) The Secretary of Defense shall carry out peri-
odic actuarial valuations of any program for a bonus or 
incentive authorized to be paid from the Fund. 
‘‘(2) Based on the most recent such valuation, the 
Secretary of Defense shall estimate the normal cost for 
such program for the next fiscal year. 
‘‘(3) At the time of such evaluation, the Secretary 
of Defense shall make determinations for such program 
in the same manner, as far as practicable, as determina-
tions are made under paragraphs (3) and (4) of section 
2006(f) of this title. 
‘‘(4) Based on the determinations under paragraphs 
(2) and (3), the Secretary of Defense shall determine the 
amount needed to be appropriated to the Department of 
the Army for the next fiscal year for payments to be made 
to the Fund under subsection (g). 
‘‘(5) All determinations under this subsection shall be 
made using methods and assumptions approved by the 
Board (including assumptions of interest rates) and in ac-
cordance with generally accepted actuarial principles and 
practices. 
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‘‘(g) PAYMENTS INTO THE FUND.—(1) The Sec-
retary of the Army shall pay into the Fund each month 
the amount that, based upon the most recent actuarial 
valuation of a program for a bonus or incentive authorized 
to be paid from the Fund, is equal to the normal cost 
for the program for the preceding month. 
‘‘(2) The Secretary of the Army shall pay into the 
Fund at the beginning of each fiscal year (or as soon 
thereafter as appropriations are available for such pur-
pose) an amount, if any, for the amortization of any liabil-
ity to the Fund, or actuarial gain or loss to the Fund, 
related to the determinations made under subsection 
(f)(3). 
‘‘(3) Amounts paid into the Fund under this section 
shall be paid from appropriations available for the pay of 
members of the Army. 
‘‘(h) INVESTMENTS OF ASSETS OF THE FUND.—The 
Secretary of the Army may request the Secretary of the 
Treasury to invest such portion of the Fund as is not, 
in the judgment of the Secretary of the Army, required 
to meet current withdrawals. Such investments shall be 
made by the Secretary of the Treasury in public debt secu-
rities with maturities suitable to the needs of the Fund, 
as determined by the Secretary of the Army, and bearing 
interest at a rate determined by the Secretary of the 
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Treasury, taking into consideration current market yields 
on outstanding marketable obligations of the United 
States of comparable maturity. 
‘‘(i) TRANSFER OF FUNDS AFTER TERMINATION.— 
If the use of the Fund is terminated, as determined by 
the Secretary of the Army, and the amount in the Fund 
is in excess of all liabilities for future payments for bo-
nuses and incentives for which funds were transferred into 
the Fund, the amount by which the amount in the Fund 
exceeds the liabilities may be transferred to the appropria-
tion that is available for the pay of members of the Army 
at the time of the transfer.’’. 
(b) CLERICAL AMENDMENTS.—The table of chapters 
for part II of subtitle B of such title is amended by adding 
at the end the following new item: 
‘‘376. Fund for Payment of Incentives and Bonuses ............................... 4101.’’. 
SEC. 653. EXPANSION OF SELECTED RESERVE EDUCATION 
LOAN REPAYMENT PROGRAM. 
(a) ADDITIONAL LOANS ELIGIBLE
FOR REPAY-
MENT.—Paragraph (1) of section 16301(a) of title 10, 
United States Code, is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(B) 
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; or’’; and 
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(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) any loan incurred for educational 
purposes made by a lender that is— 
‘‘(i) an agency or instrumentality of a 
State; 
‘‘(ii) a financial or credit institution 
(including an insurance company) that is 
subject to examination and supervision by 
an agency of the United States or any 
State; 
‘‘(iii) a pension fund approved by the 
Secretary for purposes of this section; or 
‘‘(iv) a nonprofit private entity des-
ignated by a State, regulated by such 
State, and approved by the Secretary for 
purposes of this section.’’. 
(b) ELIGIBILITY OF OFFICERS.—Paragraph (2) of 
such section is amended— 
(1) by striking ‘‘Except as provided in para-
graph (3), the Secretary’’ and inserting ‘‘The Sec-
retary’’; and 
(2) by striking ‘‘an enlisted member of the Se-
lected Reserve of the Ready Reserve of an armed 
force in a reserve component and military specialty’’ 
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and inserting ‘‘a member of the Selected Reserve of 
the Ready Reserve of an armed force in a reserve 
component and officer program or military spe-
cialty’’. 
(c) CONFORMING AMENDMENTS.—Such section is 
further amended— 
(1) by striking paragraph (3); and 
(2) in the heading, by striking ‘‘enlisted 
members of Selected Reserve with crit-
ical specialties’’ and inserting ‘‘members of 
the Selected Reserve’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 1609 of such title is amended 
by striking the item relating to section 16301 and insert-
ing the following new item: 
‘‘16301. Education loan repayment program: members of the Selected Re-
serve.’’. 
SEC. 654. ALLOW MEMBER TO WAIVE NOTICE AND PROVIDE 
COURT ORDER UPON REQUEST. 
(a) ALLOW MEMBER TO WAIVE NOTICE AND PRO-
VIDE COURT ORDER UPON REQUEST.—Section 1408(g) 
of title 10, United States Code, is amended— 
(1) by striking ‘‘A person’’ and inserting ‘‘Un-
less notice is waived by the member, a person’’; and 
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100 
(2) by striking ‘‘(together with a copy of such 
order)’’ and inserting ‘‘and, upon request, a copy of 
such order’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to court orders received by the Sec-
retary concerned after the end of the 90-day period begin-
ning on the date of enactment of this Act. 
SEC. 655. DISREGARD PERIODS OF CONFINEMENT FOR DE-
PENDENT VICTIMS OF ABUSE. 
(a) DISREGARD PERIODS OF CONFINEMENT FOR DE-
PENDENT VICTIMS OF ABUSE.—Paragraph (2)(A) of sec-
tion 1408(h) of title 10, United States Code, is amended 
by inserting ‘‘(including any periods of confinement served 
prior to convening authority action on the record of trial 
related to the misconduct that resulted in the termination 
of eligibility to receive retired pay)’’ after ‘‘on the basis 
of years of service’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall be effective as of October 23, 1992, 
as if included in section 1408(h) of title 10, United States 
Code, as enacted by section 653(a)(2) of the National De-
fense Authorization Act for Fiscal Year 1993 (Public Law 
102–484). 
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101 
SEC. 656. CLARIFYING AMENDMENT REGARDING JURISDIC-
TION FOR PURPOSES OF ALLOCATION OF RE-
TIRED PAY UNDER THE UNIFORMED SERV-
ICES FORMER SPOUSE PROTECTION ACT. 
Section 1408(c) of title 10, United States Code, is 
amended by striking paragraph (4). 
TITLE VII—HEALTH CARE 
PROVISIONS 
TRICARE Program Improvements 
SEC. 701. REVISING TRICARE PROGRAM COST SHARING 
AMOUNTS. 
(a) AUTHORITY.—Section 1086(b) of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) Notwithstanding paragraphs (1) through 
(4), the Secretary of Defense shall promulgate regu-
lations to revise the requirements for payments by 
beneficiaries under this subsection in order to reflect 
increases in health care costs. Such requirements, 
which may include a revised deductible amount, an 
enrollment fee, and future indexing, need not be uni-
form for all such beneficiaries. Any such enrollment 
fee may be a condition of eligibility for health care 
benefits under chapter 55 of this title.’’. 
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