Military Retirement Reform Act of 1986
PL 99-348 (H.R.4420), enacted 07/01/1986

100 STAT. 682 
PUBLIC LAW 99-348—JULY 1, 1986 
Public Law 99-348 
99th Congress 
An Act 
July 1, 1986 
[H.R. 4420] 
Military 
Retirement 
Reform Act of 
1986. 
Armed Forces. 
10 u s e 1401 
note. 
To amend title 10, United States Code, to revise the retirement system for new 
members of the uniformed services, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 10, UNITED STATES CODE; 
TABLE OF CONTENTS 
(a) SHORT TITLE.—This Act may be cited as the "Military Retire-
ment Reform Act of 1986". 
(b) REFERENCES TO TITLE 10.—Except as otherwise expressly pro-
vided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of title 10, United States Code. 
(c) TABLE OF CONTENTS.—The table of contents for this Act is as 
follows: 
Sec. 1. Short title; references to title 10, United States Code; table of contents. 
TITLE 1—RETIREMENT PROGRAM AMENDMENTS 
Sec. 101. Retired pay multiplier. 
Sec. 102. Adjustments of retired and retainer pay to reflect changes in the Con-
sumer Price Index. 
Sec. 103. Restoral at age 62 of retired pay multiplier and cost-of-living adjustments. 
Sec. 104. Consolidation of retired pay base provisions. 
Sec. 105. Rules of construction for purposes of computing retired pay. 
Sec. 106. Years of service for computing retired pay. 
TITLE II—CONFORMING AMENDMENTS TO COMPUTATION OF RETIRED 
PAY 
Sec. 201. Retired pay computed under subtitle A. 
Sec. 202. Members of the Army. 
Sec. 203. Members of the Navy and Marine Corps. 
Sec. 204. Members of the Air Force. 
Sec. 205. Members of the Coast Guard. 
Sec. 206. Commissioned officers of the National Oceanic and Atmospheric Adminis-
tration. 
Sec. 207. Commissioned officers of the Public Health Service. 
TITLE III—MISCELLANEOUS RETIREMENT PROVISIONS 
Sec. 301. Survivor Benefit Plan annuities. 
Sec. 302. Report on reserve retirement system. 
Sec. 303. Definition. 
Sec. 304. Technical and conforming amendments. 
Sec. 305. Codification of permanent limitations on retired and retainer pay 
provided in appropriation Acts. 
Sec. 306. Repeal of limitation on payments to accrual fund for fiscal year 1986. 
TITLE IV—FISCAL YEAR 1986 UNAUTHORIZED APPROPRIATIONS 
Sec. 401. Authority for obligation of certain unauthorized fiscal year 1986 defense 
appropriations. 
Sec. 402. Limitation on obligation of certain unauthorized appropriations. 
Sec. 403. Authorized military construction project. 
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PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 683 
TITLE V—MISCELLANEOUS PROVISIONS 
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Sec. 501. Under Secretary of Defense for Acquisition. 
Sec. 502. Limitation on expenditure of funds to procure T-46 trainer aircraft. 
Sec. 503. Postponement of a certain Department of Defense contract. 
TITLE I—RETIREMENT PROGRAM AMENDMENTS 
SEC. 101. RETIRED PAY MULTIPLIER 
Chapter 71 (relating to computation of retired pay) is amended by 
adding at the end the following new section: 
"§ 1409. Retired pay multiplier 
lo use 1409 
"(a) 
RETIRED 
PAY MULTIPLIER 
FOR REGULAR-SERVICE NON-
DISABILITY RETIREMENT.—In computing— 
"(1) the retired pay of a member of a uniformed service who is 
retired under any provision of law other than— 
"(A) chapter 61 of this title (relating to retirement or lo use 1201 et 
separation for physical disability); or 
«^9-
"(B) chapter 67 of this title (relating to retirement for 10 use 1331 et 
non-regular service); or 
*^9-
"(2) the retainer pay of a member who is transferred to the 
Fleet Reserve or the Fleet Marine Corps Reserve under section 
6330 of this title, 
Post, p. 696. 
the retired pay multiplier (or retainer pay multiplier) is the percent-
age determined under subsection (b). 
"(b) PERCENTAGE.— 
"(1) GENERAL RULE.—Subject to paragraphs (2) and (3), the 
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percentage to be used under subsection (a) is the product (stated 
as a percentage) of— 
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"(A) 21/2, and 
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"(B) the member's years of creditable service (as defined 
' 
in subsection (c)). 
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"(2) 
REDUCTION APPLICABLE TO NEW-RETIREMENT 
MEMBERS 
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WITH LESS THAN 30 YEARS OF SERVICE.—In the case of a member 
who first became a member of a uniformed service after July 31, 
1986, has less than 30 years of creditable service, and is under 
the age of 62 at the time of retirement, the percentage deter-
mined under paragraph (1) shall be reduced by— 
"(A) 1 percentage point for each full year that the mem-
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ber's years of creditable service are less than 30; and 
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"(B) Via of 1 percentage point for each month by which 
: 
the member's years of creditable service (after counting all 
full years of such service) are less than a full year. 
"(3) 75 PERCENT LIMIT.—In the case of a member with more 
than 30 years of creditable service, the percentage to be used 
under subsection (a) is 75 percent. 
"(c) YEARS OF CREDITABLE SERVICE DEFINED.—In this section, the 
term 'years of creditable service' means the number of years of 
service creditable to a member in computing the member's retired 
or retainer pay (including V
x
2 of a year for each full month of 
service that is in addition to the number of full years of service of 
the member).". 
SEC. 102. ADJUSTMENTS OF RETIRED AND RETAINER PAY TO REFLECT 
CHANGES IN THE CONSUMER PRICE INDEX 
(a) IN GENERAL.—Section 1401a (relating to adjustments in retired 
pay to reflect changes in the Consumer Price Index) is amended by 
•;.j 
100 STAT. 684 
PUBLIC LAW 99-348—JULY 1, 1986 
striking out subsections (b), (c), and (d) and inserting in lieu thereof 
the following: 
"(b) CosT-oF-LiviNG ADJUSTMENTS BASED ON C P I INCREASES.— 
"(1) IN GENERAL.—Effective on December 1 of each year, the 
Secretary of Defense shall increase the retired pay of members 
and former members entitled to that pay in accordance with 
paragraphs (2) and (3). 
"(2) PRE-AUGUST 1, 1986 MEMBERS.—The Secretary shall in-
crease the retired pay of each member and former member who 
first became a member of a uniformed service before August 1, 
1986, by the percent (adjusted to the nearest one-tenth of 1 
"' 
1 
percent) by which— 
,, 
"(A) the price index for the base quarter of that year, 
exceeds 
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"(B) the base index. 
"(3) PosT-AUGUST 1, 1986 MEMBERS.—If the percent determined 
, , 
, 
under paragraph (2) is greater than 1 percent, the Secretary 
shall increase the retired pay of each member who first became 
a member on or after August 1, 1986, by the difference 
between— 
"(A) the percent determined under paragraph (2); and 
"(B) 1 percent. 
"(4) REGULATIONS.—Any increase in retired pay under this 
subsection shall be made in accordance with regulations pre-
scribed by the Secretary of Defense. 
"(c) RULE FOR FIRST ADJUSTMENT AFTER RETIREMENT WITH INTER-
VENING INCREASE IN BASIC PAY.—Notwithstanding subsection (b), if 
a member or former member of an armed force who first became a 
member of a uniformed service before August 1, 1986, becomes 
entitled to retired pay based on rates of monthly basic pay that 
became effective after the last day of the calendar quarter of the 
base index, the retired pay of the member or former member shall 
be increased on the effective date of the next adjustment of retired 
pay under subsection (b) only by the percent (adjusted to the nearest 
one-tenth of 1 percent) by which— 
"(1) the price index for the base quarter of that year, exceeds 
"(2) the price index for the calendar quarter immediately 
before the calendar quarter in which the rates of monthly basic 
pay on which the retired pay is based became effective. 
"(d) RULE FOR FIRST ADJUSTMENT AFTER RETIREMENT WITH NO 
INTERVENING INCREASE IN BASIC PAY.—If a member or former 
member of an armed force who first became a member of a 
uniformed service before August 1,1986, becomes entitled to retired 
pay on or after the effective date of an adjustment in retired pay 
under subsection (b) but before the effective date of the next in-
crease in the rates of monthly basic pay, the retired pay of the 
member or former member shall be increased, effective on the date 
the member becomes entitled to that pay, by the percent (adjusted to 
the nearest one-tenth of 1 percent) by which— 
"(1) the base index, exceeds 
"(2) the price index for the calendar quarter immediately 
before the calendar quarter in which the rates of monthly basic 
pay on which the retired pay is based became effective. 
"(e) PRO RATING OF INITIAL ADJUSTMENT.—Notwithstanding 
subsection (b), the retired pay of a member of an armed force who 
first became a member of a uniformed service on or after August 1, 
1986, shall be increased on the effective date of the first adjustment 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 685 
of retired pay under subsection (b) after the member becomes enti-
tled to retired pay only by the percent (adjusted to the nearest one-
tenth of 1 percent) by which— 
"(1) the price index for the base quarter of that year, exceeds 
"(2) the price index for the calendar quarter immediately 
before the calendar quarter in which the member became enti-
> 
tied to retired pay.". 
H .; > .^K 
., (b) DEFINITIONS.—Such section is further amended— 
(1) by striking out the second sentence of subsection (a); and 
(2) by striking out subsection (g) and inserting in lieu thereof 
I 
the following: 
: q a . 
"(g) DEFINITIONS.—In this section: 
"(1) The term 'price index' means the Consumer Price Index 
(all items, United States city average) published by the Bureau 
of Labor Statistics. 
"(2) The term 'base quarter' means the calendar quarter 
;; 
ending on September 30 of each year. 
"(3) The term 'base index' means the price index for the base 
' 
quarter for the most recent adjustment under subsection (b). 
"(4) The term 'retired pay' includes retainer pay. 
"(h) PRICE INDEX FOR A QUARTER.—For purposes of this section, 
the price index for a calendar quarter is the arithmetical mean of 
the price index for the three months comprising that quarter.". 
(c) TECHNICAL AMENDMENTS.— 
(1) Subsection (a) of such section is amended— 
,, ,J^T t,,( 
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(A) by inserting "PROHIBITION ON RECOMPUTATION TO 
REFLECT INCREASES IN BASIC PAY.—" after "(a)"; and 
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(B) by striking out "or retainer". 
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(2) Subsection (f) of such section is amended— 
n 
(A) by inserting "PREVENTION OF PAY INVERSIONS.—" 
:^r 
after "(f)"; and 
(B) by striking out "or retainer" each place it appears. 
SEC. 103. RESTORAL AT AGE 62 OF RETIRED PAY MULTIPLIER AND COST-
OF-LIVING ADJUSTMENTS 
Chapter 71 (relating to computation of retired pay) is amended by 
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adding after section 1409 (as added by section 101) the following new 
section: 
"§ 1410. Restoral of full retirement amount at age 62 for members lo use 1410. 
entering on or after August 1,1986 
"(a) GENERAL RULE.—In the case of a member who first became a 
member of a uniformed service on or after August 1, 1986, and who 
becomes entitled to retired pay before the age of 62, the retired pay 
of such member shall be recomputed, effective on the first day of the 
first month beginning after the member attains 62 years of age, so 
as to be the amount equal to— 
"(1) the amount of the member's initial unreduced retired 
pav, increased by 
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'(2) the percent (adjusted to the nearest one-tenth of 1 per-
cent) by which— 
'(A) the price index for the most recent base quarter 
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ending more than 31 days before the date the member 
ri 
attains 62 years of age, exceeds 
"(B) the price index for the calendar quarter immediately 
before the date the member first became entitled to retired 
pay. 
100 STAT. 686 
PUBLIC LAW 99-348—JULY 1, 1986 
"(b) DEFINITIONS.— 
"(1) In this section, the term 'initial unreduced retired pay' 
means the amount of retired pay— 
efc ^ 
"(A) to which the member was entitled when the member 
first became entitled to retired pay; or 
"(B) in the case of a member whose retired pay was 
Ante, p. 683. 
subject to section 1409(b)(2) of this title, to which the 
member would have been entitled on the date of the mem-
ber's retirement without regard to that section. 
"(2) The definitions in subsection (g), and the provisions of 
Ante, p. 683. 
subsection (h), of section 1401a of this title apply to this 
section.". 
SEC. 104. CONSOLIDATION OF RETIRED PAY BASE PROVISIONS 
(a) TRANSFER OF SECTION 1406.—Section 1406 is transferred to the 
10 use 1338. 
end of chapter 67, redesignated as section 1338, and amended— 
(1) by designating the first sentence as subsection (a) and 
striking out "chapter 67 of this title" both places it appears 
therein and inserting in lieu thereof "this chapter"; and 
(2) by designating the second sentence as subsection (b). 
(b) CONSOLIDATION OF STATUTES.—Chapter 71 (relating to the com-
putation of retired pay) is amended by striking out section 1407 and 
inserting in lieu thereof the following: 
10 use 1406. 
"§ 1406. Retired pay base for members who first became members 
before September 8,1980: final basic pay 
"(a) USE OF RETIRED PAY BASE IN COMPUTING RETIRED PAY.— 
"(1) GENERAL RULE.—The retired pay or retainer pay of any 
* -. person entitled to that pay who first became a member of a 
uniformed service before September 8, 1980, is computed using 
.Eii the retired pay base or retainer pay base determined under this 
^^. 
section. 
"(2) EXCEPTION FOR RECOMPUTATION.—Recomputation of re-
tired or retainer pay to reflect later active duty is provided for 
Post, p. 694. 
under section 1402 of this title without reference to a retired 
pay base or retainer pay base. 
"(b) RETIREMENT UNDER SUBTITLE A.—In the case of a person 
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whose retired pay is computed under this subtitle, the retired pay 
base is determined in accordance with the following table. 
"For a member entitled to retired pay 
under section: 
1201 
1202 
b-Jlii^n k-tji> 
1204 
'
^
f
^
* «'-' 
1205 
*;^<JffiSut ^fi: 
1331 
.>-.•••: i' 
The retired pay base is: 
Monthly basic pay' of grade to which 
member is entitled under section 1372 or 
to which he was entitled on day before 
retirement or placement on temporary 
disability 
retired 
list, 
whichever is 
higher. 
Monthly basic pay^ of highest grade held 
satisfactory by person at any time in the 
armed forces. 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 687 
"For a member entitled to retired pay 
under section: 
Bril fi'iriv, 
564 
1263 
1293 
1305 
633 
634 
635 
636 
1251 
The retired pay base is: 
Monthly basic pay to which member would 
have been entitled if he had served on 
active duty in his retired grade on day 
before retirement, or if the pay of that 
grade is less than the pay of any warrant 
grade satisfactorily held by him on 
active duty, the monthly basic pay of 
that warrant officer grade. 
Monthly basic pay^' of member's retired 
grade.* 
• Compute at rates applicable on date of retirement or date when member's name W£is placed 
on temporary disability retired list, as the case may be. 
2 Compute at rates applicable on date when retired pay is granted. 
^ Compute at rates applicable on date of retirement. 
•
* For the purposes of this subsection, determine member's retired grade as if sections 3962(b) 
and 8962(b) did not apply. 
"(c) VOLUNTARY RETIREMENT FOR MEMBERS OF THE ARMY.— 
"(1) IN GENERAL.—In the case of a member whose retired pay 
is computed under section 3991 of this title or who is entitled to 
retired pay computed under section 3992 of this title, the retired 
pay base is determined in accordance with the following table. 
Post, p. 694. 
Post, p. 695. 
'^ 
"For a member entitled to retired pay 
under section: 
3911 
h'rnn, 
, . 
3918 
3920 
3924 
3914 
3917 
3992 
The retired pay base is: 
Monthly basic pay of member's retired 
grade.' 
Monthly basic pay to which member 
was entitled on day before he retired. 
Monthly basic pay of grade to which 
member is advanced on retired list. 
' For the purposes of this subsection, determine member's retired grade as if section 3962(b) 
did not apply. 
"(2) RATE OF BASIC PAY TO BE USED.—The rate of basic pay to 
be used under paragraph (1) is the rate applicable on the date of 
the member's retirement. 
"(d) RETIREMENT FOR MEMBERS OF THE NAVY AND MARINE CORPS.— 
In the case of a member whose retired pay is computed under 
section 6333 of this title, who is advanced on the retired list under 
section 6151 of this title, or who is entitled to retainer pay under 
section 6330 of this title, the retired pay base or retainer pay base is 
determined in accordance with the following table. 
Post, p. 695. 
Post, p. 696. 
100 STAT. 688 
PUBLIC LAW 99-348—JULY 1, 1986 
'For a member entitled to retired or 
retainer pay under section: 
6323 
6325(a) 
6383 
6325(b) 
6326 
6330 
6151 
The retired pay base or retainer pay 
base is: 
Basic pay of the grade in which the 
member retired.' 
Basic pay of the grade the officer would 
hold if he had not received an appoint-
ment described in section 6325(b). 
Basic pay of the pay grade in which the 
member was serving on the day before 
retirement. 
Basic pay that the member received at 
the time of transfer to the Fleet Re-
serve or Fleet Marine Corps Reserve. 
Basic pay of the grade to which the 
member is advanced under section 
6151. 
Post, p. 697. 
Post, p. 698. 
' If the rate specified is less than the pay of any warrant officer grade satisfactorily held by 
the member on active duty, use the monthly basic pay of that warrant officer grade. 
"(e) VOLUNTARY RETIREMENT FOR MEMBERS OF THE AIR FORCE.— 
"(1) IN GENERAL.—In the case of a member whose retired pay 
is computed under section 8991 of this title or who is entitled to 
retired pay computed under section 8992 of this title, the retired 
pay base is determined in accordance with the following table. 
Post, p. 699. 
"For a member entitled to retired pay 
under section: 
8911 
,?}£*», 
8918 
8920 
8924 
8914 
8917 
-.,. ;x.i-^ 
. 
. 
8992 
,^.,,,....„. 
The retired pay base is: 
Monthly basic pay of member's retired 
grade.' 
Monthly basic pay to which member 
was entitled on day before he retired. 
Monthly basic pay of grade to which 
member is advanced on retired list. 
' For the purposes of this subsection, determine member's retired grade as if section 8962(b) 
did not apply. 
"(2) RATE OF BASIC PAY TO BE USED.—The rate of basic pay to 
be used under paragraph (1) is the rate applicable on the date of 
the member's retirement. 
"(f) COAST GUARD.—In the case of a member who is retired under 
any section of title 14, the member's retired pay is computed under 
section 423(a) of title 14 in the manner provided in that section. 
"(g) COMMISSIONED CORPS OF NATIONAL OCEANIC AND ATMOSPHERIC 
ADMINISTRATION.—In the case of an officer whose retired pay is 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 689 
computed under section 16 of the Coast and Geodetic Survey 
Commissioned Officers' Act of 1948 (33 U.S.C. 853o), the retired pay 
33 use 853o. 
base is the basic pay of the rank with which the officer retired. 
"(h) COMMISSIONED CORPS OF PUBLIC HEALTH SERVICE.—In the case 
of an officer who is retired under section 210(g) or 211(a) of the 
PubUc Health Service Act (42 U.S.C. 211(g), 212(a)), the retired pay Pos^, pp. 701,702. 
base is determined as follows: 
"(1) MANDATORY RETIREMENT.—If the officer is retired under 
section 210(g) of such Act, the retired pay base is the basic pay 
of the permanent grade held by the officer at the time of 
:n 
retirement. 
"(2) VOLUNTARY RETIREMENT.—If the officer is retired under 
section 211(a) of such Act, the retired pay base is the basic pay 
of the highest grade held by the officer and in which, in the case 
< -
of a temporary promotion to such grade, the officer has per- 
' 
formed active duty for not less than six months. 
"(i) SPECIAL RULE FOR FORMER CHAIRMEN OF THE J C S , CHIEFS OF 
SERVICE, AND SENIOR ENLISTED MEMBERS.— 
"(1) IN GENERAL.—For the purposes of subsections (b) through 
(e), in determining the rate of basic pay to apply in the deter-
mination of the retired pay base of a member who has served as 
Chairman of the Joint Chiefs of Staff, as a Chief of Service, or as 
the senior enlisted member of an armed force, the highest rate 
of basic pay applicable to the member while serving in that 
"' 
position shall be used, if that rate is higher than the rate 
otherwise authorized by this section. 
"(2) DEFINITIONS.—In this subsection: 
« ... 
"(A) The term 'Chief of Service' means any of the 
following: 
a .'] s 
"(i) Chief of Staff of the Army, 
"(ii) Chief of Naval Operations, 
"(iii) Chief of Staff of the Air Force. 
"'•' 
"(iv) Commandant of the Marine Corps. 
i, 
"(v) Commandant of the Coast Guard. 
"(B) The term 'senior enlisted member' means any of the 
•
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following: 
"(i) Sergeant Major of the Army. 
^'i. 
"(ii) Master Chief Petty Officer of the Navy, 
"(iii) Chief Msister Sergeant of the Air Force. 
"(iv) Sergeant Major of the Marine Corps. 
"(v) Master Chief Petty Officer of the Coast Guard. 
"§ 1407. Retired pay base for members who first became members lo use 1407. 
after September 7,1980: high-36 month average 
"(a) USE OF RETIRED PAY BASE IN COMPUTING RETIRED PAY.—The 
retired pay or retainer pay of any person entitled to that pay who 
first became a member of a uniformed service after September 7, 
1980, is computed using the retired pay base or retainer pay base 
determined under this section. 
"(b) HIGH-THREE AVERAGE.—The retired pay base or retainer pay 
base of a member under this section is the member's high-three 
average determined under subsection (c). 
"(c) COMPUTATION OF HIGH-THREE AVERAGE.— 
"(1) FORMULA.—For the purposes of this section, a member's 
high-three average is the amount equal to— 
100 STAT. 690 
PUBLIC LAW 99-348—JULY 1, 1986 
"(A) the total amount of monthly basic pay to which the 
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member was entitled for the member's high-36 months, 
divided by 
, 
. 
-
"(B) 36. 
" 
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"(2) HlGH-36 MONTHS DEFINED.— 
mv,iin q(! ^
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A
A \'- ! 
"(A) GENERAL RULE.—A member's high-36 months are the 
36 months out of all the months of active duty served by 
the member as a member of a uniformed service for which 
the monthly basic pay to which the member was entitled 
k -J..:..... was the highest. 
"(B) RULE FOR NON-REGULAR SERVICE RETIREES.—In 
the 
case of a member who is entitled to retired pay under 
section 1204 or 1205 of this title or under chapter 67 of this 
10 use 1331 et 
title, a member's high-36 months are the 36 months out of 
*^9- 
all the months the member was a member of a uniformed 
service before becoming entitled to retired pay for which 
^30 .yisjfi the monthly basic pay to which the member would have 
been entitled had he served on active duty during those 
months was the highest. 
"(d) 
LIMITATION FOR ENLISTED MEMBERS RETIRING WITH LESS 
THAN 30 YEARS' SERVICE.—In the case of a member who is retired 
under section 3914 or 8914 of this title or who is transferred to the 
Fleet Reserve or Fleet Marine Corps Reserve under section 6330 of 
Post, p. 696. 
this title, the member's high-36 average shall be computed using 
only rates of basic pay applicable to months of active duty of the 
member as an enlisted member. 
"(e) SPECIAL RULES FOR SHORT-TERM DISABILITY RETIREES.— 
"(1) MEMBERS ENTITLED TO RETIRED PAY UNDER SECTION 1201 OR 
1202.—In the case of a member who— 
"(A) is entitled to retired pay under section 1201 or 1202 
of this title; and 
"(B) served on active duty for less than 36 months, 
the months (including any fraction thereof) that the member 
served on active duty shall be deemed to be the member's high-
9ifj 
36 months. 
"(2) MEMBERS ENTITLED TO RETIRED PAY UNDER SECTION 1204 OR 
1205.—In the case of a member who— 
"(A) is entitled to retired pay under section 1204 or 1205 
of this title; and 
"(B) was a member of a uniformed service for less than 36 
I, 
months, 
the months (including any fraction thereof) that the member 
:'UI 3B J ): 
was such a member shall be deemed to be the member's high-36 
months. 
"(f) SPECIAL RULE FOR MEMBERS RETIRING WITH NON-REGULAR 
SERVICE.— 
"(1) DISABILITY RETIREMENT.—In the case of a member of a 
uniformed service who is entitled to retired pay under section 
1204 or 1205 of this title (relating to members on active duty for 
,.. 
30 days or less), the high-36 average is determined as if the 
^^]^ member served on active duty and was entitled to basic pay for 
the member's high-36 months. 
"(2) CHAPTER 67 RETIREMENT.—In the case of a person who is 
„
« 
entitled to retired pay under section 1331 of this title (relating 
to retired pay for non-regular service), the person's high-36 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 691 
average is determined as if the person served on active duty and 
was entitled to basic pay for the person's high-36 months. 
"(g) DEFINITION.—In this section, the term 'years of creditable 
service' means the number of years of service creditable to a 
member in computing the member's retired or retainer pay (includ-
ing Vi2 of a year for each full month ofservice that is in addition to 
the number of full years ofservice of the member).". 
(c) CONFORMING AMENDMENTS.— 
(1) Sections 5083 and 5201(c) are each amended by striking out 
the last sentence. 
(2) Section 6325(c) is amended by striking out the last sen-
tence. 
SEC. 105. RULES OF CONSTRUCTION FOR PURPOSES OF COMPUTING 
RETIRED PAY 
Chapter 71 (relating to computation of retired pay) is amended by 
adding after section 1410 (as added by section 103) the following new 
sections: 
"§ 1411. Rules of construction 
10 USC 1411. 
"(a) CONSTRUCTION OF 'FIRST BECAME A MEMBER'.—For purposes of 
this chapter and other provisions of law providing for computation 
of retired or retainer pay of members of the uniformed services, a 
person shall be considered to first become a member of a uniformed 
service on the date the person is first enlisted, inducted, or 
appointed in a uniformed service. 
"(b) REFERENCES IN TABLES.—Section references in tables in this 
chapter are to sections of this title. 
"§ 1412. Rounding to next lower dollar 
10 USC 1412. 
"Amounts computed under this chapter, if not a multiple of $1, 
shall be rounded to the next lower multiple of $1.". 
SEC. 106. YEARS OF SERVICE FOR COMPUTING RETIRED PAY 
Section 1405 (relating to determination of years of service for 
computation of retired pay) is amended— 
(1) by striking out the matter preceding clause (1) and insert-
ing in lieu thereof "(a) IN GENERAL.—For the purposes of the 
computation of the years of service of a member of the armed 
forces under a provision of this title providing for such computa-
tion to be made under this section, the years of service of the 
member are computed by adding—"; and 
(2) by adding at the end the following: 
"(b) FRACTIONAL YEARS OF SERVICE.—In determining a member's 
years of service under subsection (a)— 
"(1) each full month of service that is in addition to the 
number of full years of service creditable to the member shall 
be credited as Vi 2 of a year; and 
"(2) any remaining fractional part of a month shall be 
disregarded.". 
TITLE II—CONFORMING AMENDMENTS TO COMPUTATION 
OF RETIRED PAY 
SEC. 201. RETIRED PAY COMPUTED UNDER SUBTITLE A 
(a) DOPMA OFFICERS AND WARRANT OFFICERS.—Section 1401 
(relating to computation of retired pay) is amended— 
100 STAT. 692 
PUBLIC LAW 99-348—JULY 1, 1986 
JUO 
iv/A-r 
(1) by inserting "(a) DISABILITY, NON-REGULAR SERVICE, WAR-
RANT OFFICER, AND D O P M A 
RETIREMENT.—" before "The 
monthly"; 
(2) by striking out the third, fourth, and fifth sentences; 
(3) by striking out column 1 of the table and inserting in lieu 
thereof the following: 
a T i o - 
1 .-
"Column 1 
, 
', • 
Take 
..; 
airii 
Retired pay base as 
computed under 
section 1406(b) or 1407. 
Retired pay base as 
computed under 
section 1406(b) or 1407. 
Retired pay base as 
computed under 
section 1406(b) or 1407. 
Retired pay base as 
computed under 
section 1406(b) or 1407. 
Retired pay base as 
computed under 
section 1406(b) or 
1407."; 
> 
, 
\ 
- . 
• 
'X-J'j'^-^, 
O; •
•
>
"
>
. ^ 
(4) by striking out the matter relating to formulas 4 and 5 
under columns 2, 3, and 4 of the table and inserting in lieu 
thereof the following: 
, j^^jj , 
, j . ^ , . _ 
911j 
"The retired pay 
multiplier 
prescribed in section 1409(a) 
for the years of service cred-
ited to him under section 
1405 
The retired pay multiplier pre-
scribed in section 1409(a) for 
the years of service credited 
to him under section 1405."; 
(5) by striking out "pay" each place it appears in columns 3 
and 4 of the table and inserting in lieu thereof "retired pay 
base"' 
(6) by striking out footnotes 1, 2, 4, and 5 of the table and 
redesignating footnote 3 as footnote 1; 
"!/,' 
( t 
' ' 
\t 
' ' » ! * • 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 693 
(7) by redesignating the references to footnote 3 in column 2 of 
the table to conform to the redesignation made by paragraph 
(6); and 
(8) by adding at the end the following new subsection: 
"(b) USE OF MOST FAVORABLE FORMULA.—If a person would other-
wise be entitled to retired pay computed under more than one 
formula of the table in subsection (a) or of any other provision of 
law, the person is entitled to be paid under the applicable formula 
that is most favorable to him.". 
(b) RECOMPUTATION FOR LATER ACTIVE DUTY.— 
(1) FORMULA FOR RECOMPUTATION OF NEW RETIREMENT MEM-
BERS.—Subsection (a) of section 1402a (relating to recomputation 
of retired or retainer pay to reflect later active duty of members 
who first became members after September 7, 1980) is amended 
to read as follows: 
"(a) IN GENERAL.—A member of an armed force— 
"(1) who first became a member of a uniformed service after 
September 7, 1980; 
"(2) who has become entitled to retired pay or retainer pay; 
and 
"(3) who thereafter serves on active duty (other than for 
training), 
is entitled to recompute his retired pay or retainer pay upon release 
from that duty according to the following table. 
"Column 1 
Take 
Retired pay base or retainer pay base 
under section 1407 which he would be 
entitled to use i
f
— 
(1) he were retiring upon release 
from that active duty; or 
(2) he were transferring to the Fleet 
Reserve or Fleet Marine Corps Re-
serve upon that release from active 
duty. 
Column 2 
Multiply by 
The retired pay multiplier or retainer 
pay multiplier prescribed in section 
1409 for the sum of^ 
(1) the years of service that may be 
credited to him in computing retired 
pay or retainer pay; and 
(2) his years of active service after 
becoming entitled to retired pay or 
retainer pay.". 
(2) 
TECHNICAL 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(A) by inserting "NEW DISABILITY INCURRED DURING 
LATER ACTIVE DUTY.—" in subsection (b) after "(b)"; 
(B) by inserting "ADDITIONAL OR AGGRAVATED DISABILITY 
INCURRED DURING LATER ACTIVE DUTY.—" in subsection (c) 
after "(c)"; 
(C) in subsection (d)— 
(i) by inserting "COMPUTATION FOR LATER DISABIL-
^. 
iTY.—" after "(d)"; 
(ii) by striking out the second sentence; and 
(iii) by striking out "monthly" both places it appears 
in the table; and 
100 STAT. 694 
PUBLIC LAW 99-348—JULY 1, 1986 
Post, p. 703. 
Ante, p. 691. 
(D) by 
inserting 
"ALTERNATIVE 
RECOMPUTATION TO 
SUBSECTION (a) FORMULA.—" in subsection (e) after "(e)". 
(3) CONFORMING AMENDMENTS.—Section 1402 is amended by 
striking out the second sentence of subsections (a) and (d). 
SEC. 202. MEMBERS OF THE ARMY 
,, 
(a) INITIAL COMPUTATION OF RETIRED PAY.—The text of section 
3991 (relating to computation of retired pay) is amended to read as 
follows: 
"(a) COMPUTATION.— 
"(1) IN GENERAL.—The monthly retired pay of a member 
entitled to such pay under this subtitle is computed according to 
the following table. For each case covered by a section of this 
title named in the column headed 'For sections', retired pay is 
computed by taking the steps prescribed opposite it in columns 
1 and 2. 
"Formula 
A 
eafesJ^i ; 
B 
' • ^ ' ' 
" 
f-'- 
* ~ ' ' 
For 
Sections 
3911 
3918 
3920 
3924 
3914 
3917 
Column 1 
Take 
Retired pay base as 
computed under 
section 1406(c) or 1407. 
Retired pay base as 
computed under 
section 1406(c) or 1407. 
i : ' 
' '•t»i,.->''i-' 
f. 
Column 2 
Multiply by 
The retired pay 
multiplier prescribed 
in section 1409 for the 
years of service 
credited to him under 
section 1405. 
The retired pay 
multiplier prescribed 
in section 1409 for the 
years of service 
credited to him under 
section 3925. 
"(2) ADDITIONAL lo PERCENT FOR CERTAIN ENLISTED MEMBERS 
CREDITED WITH EXTRAORDINARY HEROISM.—If a member who is 
retired under section 3914 of this title has been credited by the 
Secretary of the Army with extraordinary heroism in the line of 
duty, the member's retired pay shall be increased by 10 percent 
of the amount determined under paragraph (1) (but to not more 
than 75 percent of the retired pay base upon which the com-
putation of such retired pay is based). The Secretary's deter-
mination as to extraordinary heroism is conclusive for all 
purposes. 
'(b) GENERAL RULES.— 
"(1) USE OF MOST FAVORABLE FORMULA.—If a person would 
otherwise be entitled to retired pay computed under more than 
one formula of the table in subsection (a) or the table in section 
1401 of this title, he is entitled to be paid under the applicable 
formula that is most favorable to him. 
"(2) ROUNDING TO NEXT LOWER DOLLAR.—The amount com-
puted under subsection (a), if not a multiple of $1, shall be 
rounded to the next lower multiple of $1. 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 695 
"(3) REFERENCES.—Section references in the table in subsec-
tion (a) are to sections of this title.", 
(b) RECOMPUTATION FOR ENLISTED MEMBERS AND WARRANT OFFI-
CERS ADVANCED ON THE RETIRED LIST.—The table in section 3992 
(relating to recomputation of retired pay to reflect advancement on 
retired list) is amended to read as follows: 
"Formula 
A 
B 
Column 1 
Take 
Retired pay base as computed 
under section 1406(c) or 1407 
of this title. 
Retired pay base as computed 
under section 1406(c) or 1407 
of this title. 
Column 2 
Multiply by 
The retired pay multiplier pre-
scribed in section 1409 of this 
title for the number of years 
credited to him under section 
3925 of this title.! 
The retired pay multiplier pre-
scribed in section 1409 of this 
title for the number of years 
credited to him under section 
1405 of this title. 
' In determining retired pay multiplier, credit each full month of service that is in addition to 
the number of full years of service creditable to the member as Via of a year and disregard any 
remaining fractional part of a month.". 
(c) CONFORMING AMENDMENT.—Section 3925 is amended by adding 
at the end the following new subsection: 
"(c) In determining a member's years of service under subsection 
(a) for the purpose of computing the member's retired pay under 
section 3991 of this title— 
"(1) each full month of service that is in addition to the 
number of full years of service creditable to the member shall 
be credited as Vi 2 of a year; and 
"(2) any remaining fractional part of a year shall be 
disregarded." 
SEC. 
2
0
3
. 
MEMBERS 
OF 
THE 
NAVY 
AND 
MARINE 
CORPS 
(a) RETIRED AND RETAINER PAY FORMULA.—Section 6333 is 
amended to read as follows: 
Ante, p. 694. 
10 u s e 6333. 
"§ 6333. Computation of retired and retainer pay 
"(a) The monthly retired pay or retainer pay of a member entitled 
to such pay under this chapter or under section 6383 of this title is Post, p. 696. 
computed in accordance with the following table. 
"Formula 
A 
For 
sections 
6325(a) 
6326 
Column 1 
Take 
Retired pay base 
computed under 
section 1406(d) or 1407. 
Column 2 
Multiply by 
75 percent. 
100 STAT. 696 
PUBLIC LAW 99-348—JULY 1, 1986 
"Formula 
B 
C 
For 
sections 
6323 
6325(b) 
6383 
6330 
Column 1 
Take 
Retired pay base 
computed under 
section 1406(d) or 1407. 
Retainer pay base 
computed under 
section 1406(d) or 1407. 
Column 2 
Multiply by 
Retired pay multiplier 
prescribed under 
section 1409 for the 
years of service that 
may be credited to him 
under section 1405. 
Retainer pay multiplier 
prescribed under 
section 1409 for his 
years of active service 
in the armed forces. 
10 use 6322. 
Ante, p. 695. 
"(b)(1) Retired pay or retainer pay computed under this section, if 
not a multiple of $1, shall be rounded to the next lower multiple of 
$1. 
"(2) References in the table in subsection (a) are to sections of this 
title.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6322 is amended by striking out subsection (c). 
(2) Section 6323(e) is amended by striking out "retired pay—" 
and all that follows and inserting in lieu thereof "retired pay 
computed under section 6333 of this title.". 
(3) Section 6325 is amended by striking out "retired pay—" in 
subsections (aX2) and (b)(2) and all that follows in those subsec-
tions and inserting in lieu thereof "retired pay computed under 
section 6333 of this title.". 
(4) Section 6326(c)(2) is amended by striking out "retired 
pay—" and all that follows and inserting in lieu thereof "retired 
, pay computed under section 6333 of this title.". 
(5) Section 6328 is repealed. 
(6) Section 6330(c) is amended— 
(A) by striking out "retainer pay—" in paragraph (1) and 
a, 
- j all that follows in that paragraph and inserting in lieu 
thereof "retainer pay computed under section 6333 of this 
title."; and 
(B) by striking out paragraph (4). 
i, vj 
ii • ' 
..-.• 
(7) Section 6383 is amended— 
(A) by striking out "retired pay—' 
all that follows in that subsection 
thereof "retired pay computed under section 6333 of this 
title."; and 
(B) by striking out subsection (k). 
(c) MEMBERS ADVANCED ON RETIRED LIST.—Section 6151 (relating 
to higher retired grade and pay for members who serve satisfac-
torily under temporary appointments) is amended by striking out 
subsections (b) and (c) and inserting in lieu thereof the following: 
"(b) Each member (other than a former member of the Fleet 
Reserve or the Fleet Marine Corps Reserve) who is advanced on the 
retired list under this section is (unless otherwise entitled to higher 
retired pay) entitled to retired pay determined in accordance with 
the following table. References in the table are to sections of this 
title. 
in subsection (c)(2) and 
and inserting in lieu 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 697 
'Column 1 
Take 
Retired pay base computed under sec-
tion 1406(d) or 1407. 
Column 2 
Multiply by 
Retired pay multiplier prescribed under 
section 1409 for the years of service 
that may be credited to him under 
section 1405. 
"(c) Each former member of the Fleet Reserve or the Fleet Marine 
Corps Reserve who is advanced on the retired list under this section 
is entitled to retired pay determined in accordance with the follow-
ing table. References in the table are to sections of this title. 
'Column 1 
Take 
Retired pay base computed under sec-
tion 1406(d) or 1407. 
Column 2 
Multiply by 
Retired pay multiplier prescribed under 
section 1409 for the number of years 
of service creditable for his retainer 
pay at the time of retirement.". 
SEC. 204. MEMBERS OF THE AIR FORCE 
(a) INITIAL COMPUTATION OF RETIRED PAY.—The text of section 
8991 (relating to computation of retired pay) is amended to read as 
follows: 
"(a) COMPUTATION.— 
"(1) IN GENERAL.—The monthly retired pay of a member 
entitled to such pay under this subtitle is computed according to 
the following table. For each case covered by a section of this 
title named in the column headed 'For sections', retired pay is 
computed by taking the steps prescribed opposite it in columns 
1 and 2. 
"Formula 
A 
B 
For 
sections 
8911 
8918 
8920 
8924 
8914 
8917 
Column 1 
Take 
Retired pay base as com-
puted 
under 
section 
1406(e) or 1407. 
Retired pay base as com-
puted 
under 
section 
1406(e) or 1407. 
Column 2 
Multiply by 
The retired pay multiplier 
prescribed 
in 
section 
1409 for the years of 
service credited to him 
under section 1405. 
The retired pay multiplier 
prescribed 
in 
section 
1409 for the years of 
service credited to him 
under section 8925. 
10 u s e 8991. 
100 STAT. 698 
PUBLIC LAW 99-348—JULY 1, 1986 
Ante, p. 691. 
"(2) ADDITIONAL lo PERCENT FOR CERTAIN ENLISTED MEMBERS 
CREDITED WITH EXTRAORDINARY HEROISM.—If a member who is 
retired under section 8914 of this title has been credited by the 
Secretary of the Air Force with extraordinary heroism in the 
line of duty, the member's retired pay shall be increased by 10 
- percent of the amount determined under paragraph (1) (but to 
not more than 75 percent of the retired pay base upon which the 
computation of such retired pay is based). The Secretary's deter-
mination as to extraordinary heroism is conclusive for all 
purposes. 
"(b) GENERAL RULES.— 
"(1) USE OF MOST FAVORABLE FORMULA.—If a person would 
otherwise be entitled to retired pay computed under more than 
one formula of the table in subsection (a) or the table in section 
1401 of this title, he is entitled to be paid under the applicable 
formula that is most favorable to him. 
"(2) ROUNDING TO NEXT LOWER DOLLAR.—The amount com-
puted under subsection (a), if not a multiple of $1, shall be 
rounded to the next lower multiple of $1. 
' 
"(3) REFERENCES.—Section references in the table in subsec-
tion (a) are to sections of this title.", 
(b) RECOMPUTATION FOR ENLISTED MEMBERS AND WARRANT OFFI-
CERS ADVANCED ON THE RETIRED LIST.—The table in section 8992 
(relating to recomputation of retired pay to reflect advancement on 
retired list) is amended to read as follows: 
Ante, p. 697. 
"Formula 
A 
B 
Column 1 
Take 
Retired pay base as computed 
under section 1406(e) or 1407 
of this title. 
Retired pay base as computed 
under section 1406(e) or 1407 
of this title. 
Column 2 
Multiply by 
The retired pay multiplier pre-
scribed in section 1409 of this 
title for the number of years 
credited to him under section 
8925 of this title.' 
The retired pay multiplier pre-
scribed in section 1409 of this 
title for the number of years 
credited to him under section 
1405 of this title. 
' In determining retired pay multiplier, credit each full month of service that is in addition to 
the number of full years of service creditable to the member as Vi 2 of a year and disregard any 
remaining fractional part of a month.". 
(c) CONFORMING AMENDMENT.—Section 8925 is amended by adding 
at the end the following new subsection: 
"(c) In determining a member's years of service under subsection 
(a) for the purpose of computing the member's retired pay under 
section 8991 of this title— 
"(1) each full month of service that is in addition to the 
number of full years of service creditable to the member shall 
be credited as Vi 2 of a year; and 
"(2) any remaining fractional part of a year shall be 
disregarded.". 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 699 
SEC. 
2
0
5
. 
MEMBERS 
OF 
THE 
COAST 
GUARD 
(a) IN GENERAL.—Section 423 of title 14, United States Code 
(relating to the computation of retired pay), is amended to read as 
follows: 
"§ 423. Computation of retired pay 
14 use 423. 
"(a)(1) The retired pay of a member who first became a member of 
a uniformed service (as defined in section 101 of title 10) before 
September 8,1980, is determined by multiplying— 
"(A) the sum of— 
"(i) the basic pay of the member's retired grade or rate, 
and 
"(ii) all permanent additions thereto including longevity 
. 
j, 
credit to which the member was entitled at the time of 
retirement; by 
"(B) the retired pay multiplier determined under section 1409 
of title 10 for the number of years of service that may be 
Ante, p. 683. 
credited to the member under section 1405 of such title. 
Ante, p. 691. 
"(2) In the case of an officer who served as Commandant of the 
Coast Guard, retired pay under paragraph (1) shall be computed at 
the highest rate of basic pay applicable to the officer while so 
serving. 
"(3) In the case of an enlisted member who served as the master 
chief petty officer of the Coast Guard, retired pay under paragraph 
(1) shall be computed at the highest rate of basic pay to which the 
member was entitled while so serving, if that basic pay is greater 
than the basic pay of the grade or rate to which the member is 
otherwise entitled at the time of retirement. 
"(4) In the case of an officer whose retired pay is computed on the 
pay of a grade for which basic pay is not based upon years of service, 
retired pay under paragraph (1) shall be computed on the basis of 
the number of years of service for which the officer would be 
entitled to credit in the computation of pay on the active list had 
the officer been serving in the grade of captain at the time of 
retirement. 
"(b) The retired pay of a member who first became a member of a 
uniformed service (as defined in section 101 of title 10) on or after 
September 8,1980, is determined by multiplying— 
"(1) the retired pay base determined under section 1407 of 
title 10; by 
Ante, p. 689. 
"(2) the retired pay multiplier determined under section 1409 
I 
of title 10 for the number of years of service that may be 
credited to the member under section 1405 of such title. 
"(cXD In computing for the purpose of subsection (a) or (b) the 
number of years of service that may be credited to a member under 
section 1405 of title 10— 
^, r.^; i j 
"(A) each full month of service that is in addition to the 
number of full years of service creditable to the member shall 
i 
be counted as Vi 2 of a year; and 
"(B) any remaining fractional part of a month shall be 
disregarded. 
"(2) Retired pay computed under this section, if not a multiple of 
$1, shall be rounded to the next lower multiple of $1.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 46 of such title is amended by striking out "and 
14 use 46. 
retired pay computed at the highest rates of basic pay ap-
100 STAT. 700 
PUBLIC LAW 99-348—JULY 1, 1986 
plicable to him while he served as Commandant" in subsections 
(a), (b), and (c). 
14 use 47. 
(2) Section 47 of such title is amended— 
(A) by striking out "and retired pay" in subsections Qoi) 
and (c); and 
(B) by striking out "and with the retired pay of that 
14 use 51. 
grade" in subsection (d). 
(3) Section 51 of such title is amended— 
tic 
(A) by striking out "and retired pay" in subsections (a) 
and (b); and 
(B) by striking out "and with the retired pay of that 
grade" in subsection (c). 
(4) Section 288(b) of such title is amended by striking out 
Ante, p. 699. 
"Except as provided in section 423(b) of this title, the retired 
pay" and inserting in lieu thereof "Retired pay computed under 
section 423(a) of this title". 
(5) Sections 291, 292, and 293 of such title are amended by 
striking out ", with retired pay of the grade with which 
retired'. 
(6) Section 327(b)(1) of such title is amended by striking out ", 
and with the pay". 
(7) Section 334 of such title is amended— 
(A) by striking out ", with retired pay of the grade with 
which retired" in subsections (a) and (b); and 
(B) by striking out the second sentence of subsection (b). 
(8) Sections 353, 354, 355, and 362 of such title are amended by 
striking out ", with retired pay of the grade or rating with 
which retired". 
(9) Section 357 is amended— 
(A) by striking out "the retired pay of the grade or rating 
with which retired" in subsection (b) and inserting in lieu 
thereof "retired pay"; and 
(B) by striking out "by an amount" and all that follows in 
subsection (c) and inserting in lieu thereof "by an amount 
equal to 10 percent of— 
"(1) the active-duty pay and permanent additions thereto of 
the grade or rating with which retired, in the case of a member 
whose retired pay is computed under section 423(a) of this title; 
or 
Ante, p. 689. 
"(2) the member's retired pay base under section 1407 of title 
Ante, p. 699. 
10, in the case of a member whose retired pay is computed 
under section 423(b) of this title.". 
(10) Sections 421 euid 422 of such title are amended by striking 
out "rating" each place it appears and inserting in lieu thereof 
"rate". 
(11) Section 424 of such title is amended to read as follows: 
14 use 424. 
"§ 424. Limitations on retirement and retired pay 
"(a) The provisions of any section of this title shall not be con-
strued so as to prevent any member from being placed on the retired 
list with the highest grade or rate and the highest retired pay to 
which the member may be entitled under the provisions of any 
other section of this title or under any other law. 
"Ot)) In no case may the retired pay of a member exceed 75 percent 
of (1) the sum of the active-duty pay and all permanent additions 
.^ _ 
thereto (including longevity credit to which the member is entitled) 
of the grade or rate on which the member's pay is computed, or (2) 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 701 
the retired pay base determined under section 1407 of title 10, as 
Ante, p. 689. 
appropriate.". 
SEC. 206. COMMISSIONED OFFICERS OF THE NATIONAL OCEANIC AND 
ATMOSPHERIC ADMINISTRATION 
Section 16 of the Coast and Geodetic Survey Commissioned Offi-
cers Act of 1948 (33 U.S.C. 853o) is amended to read as follows: 
33USC853o. 
"SEC. 16. (a) Each commissioned officer on the retired list who first 
became a member of a uniformed service (as defined in section 101 
of title 10, United States Code) before September 8, 1980, shall 
receive retired pay at the rate determined by multiplying— 
"(1) the retired pay base determined under section 1406(g) of 
title 10, United States Code; by 
^nte, p. 686. 
"(2) 2y2 percent of the number of years of service that may be 
credited to the officer under section 1405 of such title as if the 
Ante, p. 691. 
officer's service were service as a member of the Armed Forces. 
The retired pay so computed may not exceed 75 percent of the 
retired pay base. 
"(b) Each commissioned officer on the retired list who first became 
a member of a uniformed service (as defined in section 101 of title 
10, United States Code) on or after September 8, 1980, shall receive 
retired pay at the rate determined by multiplying— 
"(1) the retired pay base determined under section 1407 of 
title 10, United States Code; by 
"(2) the retired pay multiplier determined under section 1409 
of such title for the number of years of service that may be Ante, p. 683. 
credited to the officer under section 1405 of such title as if the 
officer's service were service as a member of the Armed Forces. 
"(c)(1) In computing the number of years of service of an officer for 
the purposes of subsection (a)— 
"(A) each full month of service that is in addition to the 
number of full years of service creditable to the officer shall be 
credited as Via of a year; and 
"(B) any remaining fractional part of a month shall be 
disregarded. 
"(2) Retired pay computed under this section, if not a multiple of 
$1, shall be rounded to the next lower multiple of $1.". 
SEC. 207. COMMISSIONED OFFICERS OF THE PUBLIC HEALTH SERVICE 
(a) MANDATORY RETIREMENT.—Section 210(gX3) of the Public 
Health Service Act (42 U.S.C. 211(gX3)) is amended by striking out 
subparagraphs (A) and (B) and inserting in lieu thereof the 
following: 
"(A) in the case of an officer who first became a member 
of a uniformed service before September 8,1980, at the rate 
of 2y2 percent of the retired pay base determined under 
section 1406(h) of title 10, United States Code, for each year, 
not in excess of 30, of his active commissioned service in the 
Service; or 
"(B) in the case of an officer who first became a member 
of a uniformed service on or after September 8, 1980, at the 
rate determined by multiplying— 
"(i) the retired pay base determined under section 
1407 of title 10, United States Code; by 
"(ii) the retired pay multiplier determined under 
section 1409 of such title for the number of years of his 
active commissioned service in the Service.". 
100 STAT. 702 
PUBLIC LAW 99-348—JULY 1, 1986 
(b) VOLUNTARY RETIREMENT.—Paragraph (6) of section 211(a) of 
such Act (42 U.S.C. 212(a)) is amended to read as follows: 
"(6) The retired pay of a commissioned officer retired under this 
subsection who first became a member of a uniformed service after 
September 7,1980, is determined by multiplying— 
"(A) the retired pay base determined under section 1407 of 
Ante, p. 689. 
title 10, United States Code; by 
"(B) the retired pay multiplier determined under section 1409 
Ante, p. 683. 
of such title for the number of years of service credited to the 
officer under paragraph (4).". 
TITLE III—MISCELLANEOUS RETIREMENT PROVISIONS 
SEC. 301. SURVIVOR BENEFIT PLAN ANNUITIES 
(a) UNREDUCED RETIRED PAY AS BASIS FOR ANNUITY.— 
10 use 1447. 
(1) Section 1447(2XA) (relating to the definition of "base 
amount" for purposes of the Survivor Benefit Plan) is amended 
by inserting "(determined without regard to any reduction 
under section 14090t))(2) of this title)" after "retired or retainer 
pay" the second place it appears. 
(2) Section 1451 is amended by adding at the end the following 
new subsection: 
"(h) Computation of a member's retired pay for purposes of this 
section shall be made without regard to any reduction under section 
1409(b)(2) of this title.". 
- 
(3) Section 1452(c) is amended by adding at the end the 
following new sentence: "Computation of a member's retired 
pay for purposes of this subsection shall be made without regard 
to any reduction under section 1409(b)(2) of this title.". 
(b) CosT-OF-LiviNG ADJUSTMENTS.—Section 1451(g)(1) is amended— 
(1) by striking out "by the same total percent" in the first 
sentence; and 
(2) by inserting after the first sentence the following new 
;
v
* 
sentence: "The increase shall, in the case of any annuity, be by 
the same percent as the percent by which the retired pay of the 
person providing the annuity would have been increased at such 
time if the person were alive (and otherwise entitled to such 
pay).". 
(c) RESTORAL OF COLA.—Section 1451 is amended by adding after 
subsection (h) (as added by subsection (a)(2)) the following new 
subsection: 
"(i) In the case of an annuity under the Plan which is computed on 
the basis of the retired pay of a member or former member who 
would have been entitled to have that retired pay recomputed under 
Ante, p. 685. 
section 1410 of this title upon attaining 62 years of age, but who died 
before attaining such age, such annuity shall be recomputed, effec-
tive on the first day of the first month beginning after the date on 
which the member or former member would have attained 62 years 
of age, on the basis of the amount of retired pay to which the 
member or former member would have been entitled upon recom-
putation of such pay effective on such date under section 1410 of this 
title, had the member or former member attained such age.". 
SEC. 302. REPORT ON RESERVE RETIREMENT SYSTEM 
10 use 1331 
(a) REPORT REQUIREMENT.—The Secretary of Defense shall submit 
'^ot^ 
to Congress a report on the retirement system provided under 
10 use 1331 et 
chapter 67 of title 10, United States Code, for members of the Armed 
seq. 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 703 
Forces performing non-regular-service. The Secretary shall include 
in the report any proposals of the Secretary for modifications to 
such system. 
(b) DEADLINE FOR REPORT.—The report under subsection (a) shall 
- 
K 
be submitted not later than February 1, 1988. 
SEC. 303. DEFINITION 
Section 101 (relating to definitions for purposes of title 10) is lO use lOl. 
amended by adding at the end the following new paragraph: 
"(43) 'Uniformed services' means— 
"(A) the armed forces; 
"(B) the commissioned corps of the National Oceanic and 
i ; 
Atmospheric Administration; and 
"(C) the commissioned corps of the Public Health 
Service.". 
vjir oi 
SEC. 304. TECHNICAL AND CONFORMING AMENDMENTS 
(a) UNIFORMED SERVICES DEFINITION.— 
(1) Section 716 is amended by striking out subsection (c). 10 USC 716. 
(2) Section 1040(c) is amended by striking out " 'Dependent' 
and 'uniformed services' in this section have the meanings of 
those terms as defined in" and inserting in lieu thereof "In this 
section, the term 'dependent' has the meaning given that term 
in". 
(3) Section 1402 is amended by striking out "(as defined in Ante, p. 694. 
section 1407(a)(2) of this title)" each place it appears. 
(4) Section 2830 is amended by striking out subsection (c). 
(b) CLERICAL AMENDMENTS.— 
(1) The table of sections at the beginning of chapter 67 is lo use 1331. 
amended by adding at the end the following new item: 
"1338. Limitations on revocation of retired pay.". 
(2) The table of sections at the beginning of chapter 71 is lo use 1401. 
amended— 
(A) by striking out the item relating to section 1402 and 
inserting in lieu thereof the following: 
"1402. Recomputation of retired or retainer pay to reflect later active duty of mem-
bers who first became members before September 8, 1980."; 
(B) by striking out the items relating to sections 1406 and 
1407 and inserting in lieu thereof the following: 
"1406. Retired pay base for members who first became members before September 8, 
1980: final basic pay. 
"1407. Retired pay base for members who first became members after September 7, 
1980: high-36 month average."; 
and 
'"' 
(C) by adding at the end the following new items: 
"1409. Retired pay multiplier. 
"1410. Restoral of full retirement amount at age 62 for members entering on or 
after August 1, 1986. 
"1411. Rules of construction. 
"1412. Rounding to next lower dollar.". 
(3) The heading of section 1402 is amended to read as follows: 
note. 
100 STAT. 704 
PUBLIC LAW 99-348—JULY 1, 1986 
"§ 1402. Recomputation of retired or retainer pay to reflect later 
active duty of members who first became members 
before September 8,1980". 
10 use 6321. 
(3) The table of sections at the beginning of chapter 571 is 
amended— 
(A) by striking out the item relating to section 6328; and 
(B) by striking out the item relating to section 6333 and 
• ' f '^ • 
inserting in lieu thereof the following: 
"6333. Computation of retired and retainer pay. . 
SEC. 305. CODIFICATION OF PERMANENT LIMITATIONS ON RETIRED AND 
RETAINER PAY PROVIDED IN APPROPRIATION ACTS 
(a) LIMITATION ON CREDITING CERTAIN UNSERVED SERVICE IN 
ENTITLEMENT TO AND COMPUTATION OF RETAINER PAY.— 
10 use 6330. 
(1) CODIFICATION.—Section 6330(d) is amended— 
-
(A) by inserting "(1)" after "(d)"; 
(B) by striking out the second sentence; and 
(C) by adding at the end the following: 
' 
"(2) In determining a member's eligibility for transfer to the Fleet 
Reserve or the Fleet Marine Corps Reserve under subsection Ot))— 
"(A) a completed minority enlistment of the member is 
counted as four years of active service, if creditable to the 
member for such purpose before December 31,1977; and 
"(B) an enlistment of the member terminated within three 
' 
months before the end of the term of enlistment is counted as 
active service for the full term, if creditable to the member for 
such purpose before December 31,1977. 
"(3)(A) Subject to subparagraph (B), in determining a member's 
years of active service for the computation of retainer pay under 
subsection (c)— 
"(i) a completed minority enlistment of the member is 
counted as four years of active service; and 
"(ii) an enlistment of the member terminated within three 
months before the end of the term of enlistment is counted as 
active service for the full term. 
"(B) In the case of a member who is transferred to the Fleet 
Reserve or the Fleet Marine Corps Reserve under this section after 
December 30, 1977, service attributable under subparagraph (A) to 
time which, after December 31, 1977, is not actually served by the 
member may not be counted.". 
(2) REPEAL OF SOURCE LAW.—Section 8039 of the Department 
of Defense Appropriations Act, 1985 (as contained in section 
10 use 6330 
101(h) of Public Law 98-473 (98 Stat. 1930)), is repealed. 
note. 
(b) SIX-MONTH ROUNDING RULE.— 
lO^Y^^ 1401 
(1) GENERAL RULE.—Retired pay or retainer pay may not be 
paid to a covered member of the Armed Forces (as defined in 
paragraph (3)) for any month in an amount that is greater than 
the amount otherwise determined to be payable after such 
reductions as may be necessary to reflect adjusting the com-
*" ' 
putation of retired pay or retainer pay that includes credit for a 
part of a year of service to permit credit for a part of a year of 
service only for such month or months actually served. 
(2) EXCEPTIONS.—The limitation in paragraph (1) does not 
- - 
apply to a member who before January 1,1982— 
(A) applied for retirement or transfer to the Fleet Reserve 
or Fleet Marine Corps Reserve; 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 705 
(B) was being processed for retirement under the provi-
sions of chapter 61 of title 10, United States Code, or who lo use I20i et 
was on the temporary disabiHty retired Hst and thereafter s^9 
retired under the provisions of section 1210(c) or 1210(d) of 
such title; or 
(C) was retired or in an inactive status and would have 
been eligible for retired pay under the provisions of chapter 
67 of such title, but for the fact that the person was under lo use 1331 et 
60 years of age. 
*^9-
(3) DEFINITION OF COVERED MEMBER.—For the purposes of this 
subsection, the term "covered member of the Armed Forces" 
means a member of the Armed Forces who became entitled 
to retired or retainer pay during the period beginning on 
January 1,1982, and ending on September 30,1983. 
(4) REPEAL OF SOURCE LAW.—Section 8054 of the Department 
of Defense Appropriations Act, 1985 (as contained in section 
101(h) of Public Law 98-473), is repealed. 
lo use 1401 
(5) CROSS REFERENCE.—For the effective date of October 1, note. 
1983, for provisions making permanent programmatic changes 
j^^^ in law to accomplish the policy provided in such section 8054 
(and prior provisions of law), see section 923(h) of the Depart-
ment of Defense Authorization Act, 1984 (Public Law 98-94). 97 Stat. 642. 
SEC. 306. REPEAL OF LIMITATION ON PAYMENTS TO ACCRUAL FUND FOR 
FISCAL YEAR 1986 
Section 666 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 99 Stat. 659), is repealed. 
TITLE IV—FISCAL YEAR 1986 UNAUTHORIZED 
APPROPRIATIONS 
SEC. 401. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED 
FISCAL YEAR 1986 DEFENSE APPROPRIATIONS 
(a) AUTHORITY.—The amounts described in subsection (b), totaling 
$5,446,930,000, may be obligated and expended for programs, 
projects, and activities of the Department of Defense in accordance 
with fiscal year 1986 defense appropriations except as otherwise 
provided in section 402 (and except as such amounts may have been 
Post, p. 706. 
reduced by the order of the President issued for fiscal year 1986 
under section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985). 
2 usc 902. 
(b) COVERED AMOUNTS.—The amounts referred to in subsection (a) 
are the amounts provided for programs, projects, and activities of 
the Department of Defense in fiscal year 1986 defense appropria-
tions that are in excess of the amounts provided for such programs, 
projects, and activities in fiscal year 1986 defense authorizations. 
(c) DEFINITIONS.—For the purposes of this title: 
(1) FISCAL YEAR I986 DEFENSE APPROPRIATIONS.—The term 
"fiscal year 1986 defense appropriations" means amounts 
appropriated or otherwise made available to the Department of 
Defense for fiscal year 1986 in the Department of Defense 
Appropriations Act, 1986 (as contained in section 101(b) of 
Public Law 99-190). 
99 Stat. 1185. 
(2) FISCAL YEAR 1986 DEFENSE AUTHORIZATIONS.—The term 
"fiscal year 1986 defense authorizations" means amounts au-
thorized to be appropriated for the Department of Defense for 
71-194 0 - 89 - 25 : Ctt. 3 Parti 
100 STAT. 706 
PUBLIC LAW 99-348—JULY 1, 1986 
fiscal year 1986 in the Department of Defense Authorization 
99 Stat. 583. 
Act, 1986 (Public Law 99-145). 
(d) INTERPRETATION OF SECTION.—The authority provided by 
subsection (a) shall be considered to be the authorization required by 
section 8109 of the Department of Defense Appropriations Act, 1986 
(as contained in section 101(b) of Public Law 99-190; 99 Stat. 1222). 
SEC. 402. LIMITATION ON OBLIGAIION FOR CERTAIN UNAUTHORIZED 
^
^ 
'-' 
' 
APPROPRIATIONS 
(a) PROGRAMS NOT AVAILABLE FOR OBLIGATION.—Amounts de-
Ante, p. 705. 
scribed in section 401(b) may not be obligated or expended for the 
following programs, projects, and activities of the Department of 
Defense (for which amounts were provided in fiscal year 1986 
defense appropriations): 
(1) Refueling tanker modification under Procurement for the 
;' Navy in the amount of $110,000,000. 
J,., . 
, 
(2) Research, development, test, and evaluation for the Air 
^ ' 
.-^ 
Force— 
(A) for the Space Defense System in the amount of 
"" 
$15,066,000; and 
*-'l 
(B) for the MEECN communications upgrade program in 
,^ 
,^,^, 
;. 
the amount of $15,000,000. 
.;o far it. .. 
^g^ Operation and maintenance for audit/inventory report 
:' 
reductions not taken in fiscal year 1986 defense appropriations 
in the total amount of $29,000,000. 
(b) LIMITATION ON CERTAIN PROGRAMS.— 
(1) 120-MiLLiMETER MORTAR.—Of the funds appropriated in the 
Department of Defense Appropriations Act, 1986 (as contained 
99 Stat. 1185. 
in section 101(b) of Public Law 99-190), for procurement of the 
120-millimeter mortar, obligations and expenditures may be 
incurred only in accordance with the requirements set forth in 
99 Stat. 1219. 
section 8095 of such Act and in the joint explanatory statement 
of the committee of conference on the bill S. 1160 (99th Con-
99 Stat. 583. 
gress), printed in House Report 99-235. 
ji. 
(2) M72E4 LIGHT ANTiARMOR WEAPON.—Using fuuds appro-
? priated in such Act, the Secretary of the Army shall— 
(A) complete development and operational testing of the 
5 
M72E4 light antiarmor weapon; 
ao- q ,^.j^ 
r-' 
(B) type classify the weapon; and 
(C) acquire a technical data package. 
(3) PRIOR REPORTS TO CONGRESS.—Amounts authorized in sec-
.
< r ^.- 
tion 401(a) for procurement of follow-on air defense equipment 
». for the Army and amounts authorized for research, develop-
'l 
ment, test, and evaluation for the Army for DIVAD alternatives 
may not be obligated or expended until the Secretary of Defense 
submits to the appropriate committees of Congress a report 
setting forth in detail the manner in which funds are proposed 
to be obligated or expended for such purpose. 
(d) PROGRAM LIMITATIONS.—All limitations and requirements set 
forth in the Department of Defense Authorization Act, 1986, shall 
apply to the obligation of funds authorized by section 401(a) in the 
same manner as if the funds made available for obligation by such 
section had been authorized in such Act. 
, , , ^
v , 
(e) TRANSFER AUTHORITY.—For the purposes of section 1401 the 
Department of Defense Authorization Act, 1986 (99 Stat. 742), 
authorizations in section 401(a) shall be deemed to have been made 
available to the Department of Defense in such Act. 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 707 
SEC. 403. AUTHORIZED MILITARY CONSTRUCTION PROJECT 
(a) AUTHORIZED PROJECT.— 
(1) AUTHORIZATION.—The Secretary of the Navy may carry 
out the military construction project described in paragraph (2), 
funds for such project having been appropriated in the Mihtary 
Construction Appropriations Act, 1986 (Public Law 99-173; 99 
Stat. 1024). 
(2) PROJECT DESCRIPTION.—The project referred to in para- New York. 
, 
graph (1) is a project for the construction of a berthing pier and 
bulkhead at the Naval Station, Staten Island, New York. The 
amount authorized for the project is $39,700,000. 
(b) CONSTRUCTION WITH PUBLIC LAW 99-167.— 
99 stat. 961. 
(1) PROJECT AUTHORIZATIONS.—The project authorization in 
, 
subsection (a) shall be deemed to have been included in section 
201(a) of the Military Construction Authorization Act, 1986 
(Public Law 99-167; 99 Stat. 966). 
(2) APPROPRIATION AUTHORIZATION TOTALS.—The total amount 
.^! 
authorized to be appropriated for the Department of the Navy 
set forth in section 602(a) of such Act (99 Stat. 980), and the 
amount authorized for military construction projects inside the 
United States set forth in paragraph (1) of that section, shall be 
deemed to be increased by the amount specified in subsection 
(a)(2). 
(3) LIMITATION RELATING TO FUNDS FOR NAVAL STRATEGIC 
> IVJ 
f
^ HOMEPORTiNG.—For the purposes of section 205 of such Act (99 
Stat. 971), amounts available for the project authorized in 
subsection (a) shall be deemed to be funds appropriated pursu-
ant to an authorization in section 602 of such Act for Naval 
'*' Strategic Homeporting. 
<ii-'i 
TITLE V—MISCELLANEOUS PROVISIONS 
SEC. 501. UNDER SECRETARY OF DEFENSE FOR ACQUISITION 
(a) CREATION OF POSITION.—Chapter 4 of title 10, United States 
Code, is amended by inserting after section 134 the following new 
section: 
"§ 134a. Under Secretary of Defense for Acquisition: appointment lo use I34a. 
"(a) There is an Under Secretary for Acquisition, appointed from 
civilian life by the President, by and with the advice and consent of 
the Senate. 
"(b) The Under Secretary shall perform such duties and exercise 
such powers as the Secretary of Defense may prescribe, except as 
otherwise provided by law.". 
(b) 
REDESIGNATION OF DIRECTOR OF DEFENSE RESEARCH AND 
ENGINEERING.—(1) Subsection (a) of section 135 of such title is 
amended by striking out the first two sentences and inserting in lieu 
thereof the following: "There is an Under Secretary of Defense for 
Policy and a Director of Defense Research and Engineering. They 
shall be appointed from civilian life by the President, by and with 
the advice and consent of the Senate.". 
(2) The second sentences of subsections (b) and (c) of such section 
are amended by striking out "Under Secretary of Defense for Re-
search and Engineering" and inserting in lieu thereof "Director of 
Defense Research and Engineering". 
100 STAT. 708 
PUBLIC LAW 99-348—JULY 1, 1986 
10 use 135 note. 
(3) The redesignation by paragraph (1) of the position of Under 
Secretary of Defense for Research and Engineering as Director of 
Defense Research and Engineering does not affect the appointment 
to such position of the individual holding such position on the date 
of the enactment of this Act. 
(c) CONFORMING AMENDMENT.—Section 136a(d) of such title is 
amended by striking out "Under Secretary of Defense for Research 
^ . 
and Engineering" and inserting in lieu thereof "Director of Defense 
Research and Engineering". 
(d) EXECUTIVE SCHEDULE POSITIONS.—(1) Section 5313 of title 5, 
United States Code, is amended by adding at the end the following: 
, 
"Under Secretary of Defense for Acquisition.". 
•
^ 
• ' 
(2) Section 5314 of such title is amended— 
(A) by striking out "Under Secretaries of Defense (2)" and 
inserting in lieu thereof "Under Secretary of Defense for 
Policy"; and 
(B) by adding at the end the following: 
' 
"Director of Defense Research and Engineering.". 
(e) CLERICAL AMENDMENTS.—(1) The heading of section 135 of title 
10, United States Code, is amended to read as follows: 
10 use 135. 
"§ 135. Under Secretary of Defense for Policy; Director of Defense 
.w.,.,. 
Research and Engineering: appointments; powers and 
duties; precedence". 
10 use 131. 
(2) The table of sections at the beginning of chapter 4 of such title 
is amended by striking out the item relating to section 135 and 
inserting in lieu thereof the following: 
"134a. Under Secretary of Defense for Acquistion: appointment. 
"135. Under Secretary of Defense for Policy; Director of Defense Research and Engi-
neering: appointments; powers and duties; precedence.". 
ShX\ .502. LIMITATION ON EXPENDITURE OF FUNDS TO PROCURE T-46 
TRAINER AIRCRAFT 
None of the funds appropriated to the Department of Defense for 
fiscal year 1986 may be obligated or expended for procurement of 
T-46 trainer aircraft until— 
( D a fiscal year 1987 Defense Authorization Act is enacted 
which authorizes appropriations for procurement of the T-46 
s-l saU'r in 
aircraft; or 
(2) October 1, 1986, if a fiscal year 1987 Defense Authorization 
Act is not enacted by such date. 
SEC. 503. POSTPONEMENT OF A CERTAIN DEPARTMENT OF DEFENSE 
CONTRACT 
Arms and 
(a) POSTPONEMENT U N T I L P O L I C Y ESTABLISHED B Y L A W . — T h e SeC-
munitions. 
retary of Defense may not award a contract with respect to Defense 
Construction Supply Center Solicitation numbered DLA700-85-B-4-
4607 (for the purchase of 178 crawler tractors) until Congress by law 
establishes a policy concerning the award of defense contracts to 
firms in which a foreign government (or a wholly owned instrumen-
tality of a foreign government) has a significant interest. 
(b) EXCEPTIONS AT END OF 99TH CONGRESS.—Notwithstanding 
subsection (a), if Congress as of the date of the sine die adjournment 
of the 99th Congress— 
(1) has not completed action on legislation establishing a 
I" 
policy described in subsection (a), such a contract may be 
awarded after the date of such sine die adjournment; or 
PUBLIC LAW 99-348—JULY 1, 1986 
100 STAT. 709 
(2) has completed action on legislation establishing such a 
policy and the President has not yet approved or disapproved 
such legislation, such a contract may be awarded after the date 
the President approves or declines to approve such legislation. 
Approved July 1, 1986. 
^•^f^f-Sj^ 
LEGISLATIVE HISTORY—H.R. 4420 (S. 2395): 
HOUSE REPORTS: No. 99-513 (Comm. on Armed Services) and No. 99-659 (Comm. of 
SENATE REPORTS: No. 99-292 accompanying S. 2395 (Comm. on Armed Services). 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Apr. 22, considered and passed House. 
May 14, 15, considered and passed Senate, amended, in lieu of S. 2395. 
June 25, Senate agreed to conference report. 
June 26, House agreed to conference report.