An Act to further amend title II of the Career Compensation Act of 1949, as amended, to provide for the computation of reenlistment bonuses for members of the uniformed services
PL 83-506 (S.3539), enacted 07/16/1954

488 
PUBLIC LAW 506-JULY 16, 1954 
[68 S T A T . 
July 16,1954 
[8,3539] 
Public Law 506 
CHAPTER 535 
AN ACT 
To further amend title II of the Career Compensation Act of 1949, as amended, 
to provide for the computation of reenlistment bonuses for members of the 
uniformed services. 
Armed Forces. 
R e e nl i st ment 
bonus* 
Nonapplicabil-
ity. 
63 Stat. 802. 
3 7 u s e 231 note. 
R e e n l i s t ment 
within 90 days of 
discharge. 
Bonus coRiputa-
tion. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asserribled^ That section 207 of 
the Career Compensation Act of 1949 (ch. 681, 63 Stat. 811), as 
amended (37 U. S. C. 238), is further amended by designating sub-
section "(e)" as subsection " ( f ) " and by inserting a new subsection 
(e^, as follows: 
(e) This section does not apply to— 
"(1) any person Avho originally enlists in a uniformed service 
after the date of enactment of this amendatory Act; 
"(2) any member of a uniformed service in active Federal 
service on the date of enactment of this amendatory Act who 
elects to be covered by section 208 of this Act and who is other-
wise eligible for the benefits of that section; 
"(3) any person who— 
"(A) was discharged or released from active duty from 
a uniformed service not more than ninety days before the 
date of enactment of this amendatory Act, 
"(B) reenlists in that service within ninety days after 
the date of his discharge or release from active duty, 
"(C) elects to be covered by section 208 of this Act, and 
"(D) is otherw^ise eligible for the benefits of that section; 
or 
"(4) any person covered by clause (2) or (3) who at any time 
elects, or has elected, to be covered by section 208 of this Act." 
SEC. 2. The Career Compensation Act of 1949, as amended, is further 
amended by inserting the following new section at the end of title I I : 
"SEO, 208. (a) Subject to subsections (b) and (c) of this section, a 
member of a uniformed service who reenlists in the regular component 
of the service concerned within ninety days after the date of his dis-
charge or release from active duty, and who is not covered by section 
207 of this Act, is entitled to a bonus computed according to the follow-
ing table: 
"Reenlistment 
Involved ' 
First.. 
Second 
Third. 
Fourth 
(and subse-
quent). 
Column (1) 
Take 
Monthly basic pay to which the mem-
ber was entitled at the time of dis-
charge. 2 
Two-thirds of the monthly basic pay 
to which the member was entitled at 
the time of discharge.* 
One-third of the monthly basic pay 
to which the member was entitled at 
the time of discharge.' 
One-sixth of the monthly basic pay to 
which the member was entitled at 
the time of discharge.' 
Column (2) 
Multiply by 
Number of years specified in reenlist-
ment contract, or six, if none speci-
fied.' 
Number of years specified in re-
enlistment contract, or six, if none 
specified.' 
Number of years specified in re-
enlistment contract, or six, if none 
specified.' 
Number of years specified In re-
enlistment contract, or six, if none 
specified.' 
' Any reenlistment when a bonus was not authorized is not counted. 
' Two-thirds of the monthly basic pay in the case of a member in pay grade E-1 at the time of discharge. 
' On the sixth anniversary of an indefinite reenlistment, and on each anniversary thereafter, the member 
is entitled to a bonus equal to one-third of the monthly basic pay to which he is entitled on that anniversary 
date. 
« No bonus may be paid to a member in pay grade E-1 or E-2 at the time of discharge. 
» No bonus may be paid to a member in pay grade E-1, E-2, or E-3 at the time of discharge. 
Exceptions. 
" (b) No bouus may be paid to a member w^ho reenlists— 
" (1) during his prescribed period of basic recruit training; or 
" (2) after completing a total of twenty years of active Federal 
service. 
68 
S T A T . ] 
PUBLIC LAW 507-JULY 19, 1954 
489 
The bonus payable to a member who reenlists before completing a total 
of twenty years of active Federal service, but who will under that 
reenlistment complete more than twenty years of such service, is 
computed by using as a multiplier only that number of years which, 
when added to his previous service, totals twenty years. 
"(c) The cumulative amount which may be paid to a member under 
this section, or under this section and any other provision of law 
authorizing reenlistment bonuses, may not exceed $2,000. 
"(d) An officer of a uniformed service who reenlists in that service 
within ninety days after his release from active duty as an officer 
is entitled to a bonus computed according to the table in subsection 
(a), if he served in an enlisted status in that service immediately 
before serving as an officer. 
For the purpose of this subsection, the 
monthly basic pay (or appropriate fraction if the member received 
a bonus for a prior reenlistment) of the grade in which the member is 
enlisted (computed in accordance with the cumulative years of service 
of the member) is to be used in column 1 of the table set forth under 
subsection (a) instead of the monthly basic pay to which he was 
entitled at the time of his release from active duty as an officer. 
" (e) In this section, 'reenlistment' means— 
"(1) an enlistment in a regular component of a uniformed 
service after compulsory or voluntary active duty in that serv-
ice; or 
"(2) a voluntary extension of an enlistment for two or more 
years. 
" (f) Under such regulations as may be approved by the Secretary of 
Defense, or by the Secretary of the Treasury with respect to Coast 
Guard personnel, a member of a uniformed service who voluntarily, 
or because of his own misconduct, does not complete the term of 
enlistment for which he was paid a bonus under this section shall 
refund that percentage of the bonus that the unexpired part of his 
enlistment is of the total enlistment period for which the bonus was 
paid. 
"(g) The Secretary concerned may prescribe regulations for the 
administration of this section in his department." 
Approved July 16, 1954. 
Limitation* 
Officers. 
"ReenlistmenU"' 
Refund. 
Regulations. 
Public Law 507 
C HAPTER 536 
AN ACT 
To incorporate the Board for P'undamental Education. 
July 19,1954 
[S. 1 796] 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assembled^ That the following 
persons: Ernest R. Alexander, of Dallas, Texas; John R. Alford, of 
Henderson, Texas; William H. Book, of Indianapolis, Indiana; E. M. 
Dealey, of Dallas, Texas; A. Dale Fiers, of Indianapolis, Indiana; 
Fred F. Florence, of Dallas, Texas; E. B. Germany, of Dallas, Texas; 
Sam Gladney, of Dallas, Texas; Theodore B. Griffith, of Indianapolis, 
Indiana; O. H. Grissom, of Longview, Texas; Harry T. Ice, of Indi-
anapolis, Indiana; J. C. Judge, of Mineola, Texas; George Kuhn, of 
Indianapolis, Indiana; Charles J. Lynn, of Indianapolis, Indiana; 
Eugene S. Pulliam, of Indianapolis, Indiana; C. B. Roberts, of Dallas, 
Texas; William L. Schloss, of Indianapolis, Indiana; Ben H. Wooten, 
of Dallas, Texas; and Joseph Zeppa, of Tyler, Texas; and their 
associates and successors are hereby created a body corporate by the 
name of Board for Fundamental Education (hereinafter referred to 
Board for Funda« 
mental Education. 
Incorporation.