Department of Defense Authorization Act, 1981
PL 96-342 (H.R.6974), enacted 09/08/1980

PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1077 
Public Law 96-342 
96th Congress 
An Act 
To authorize appropriations for fiscal year 1981 for procurement of aircraft, mis- 
oept. e, laaO— 
siles, naval vessels, track combat vehicles, torpedoes, and other weapons and for 
[H.R. 6974] 
research, development, test, and evaluation for the Armed Forces, to prescribe 
the authorized personnel strength for each active duty component and the 
Selected Reserve of each Reserve component of the Armed Forces and for civilian 
personnel of the Department of Defense, to authorize the military training stu-
dent loads, to authorize appropriations for fiscal year 1981 for civil defense, and 
for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That this Act may be Department of 
cited as the "Department of Defense Authorization Act, 1981". Authorization 
TITLE I—PROCUREMENT 
AUTHORIZATION OP APPROPRIATIONS 
SEC. 101. Funds are hereby authorized to be appropriated for fiscal 
year 1981 for the use of the Armed Forces of the United States for 
procurement of aircraft, missiles, naval vessels, tracked combat 
vehicles, torpedoes, and other weapons, as authorized by law, in 
amounts as follows: 
AIRCRAFT 
For aircraft: for the Army, $1,076,400,000; for the Navy and the 
Marine Corps, $6,150,600,000, of which $33,600,000 shall be 
available only for procurement of aircraft for the Navy Under-
graduate Helicopter Pilot Training Program; for the Air Force, 
$9,365,143,000, of which $518,800,000 shall be available only for 
procurement of War Reserve Materiel spares. 
MISSILES 
For missiles: for the Army, $1,580,500,000; for the Navy, 
$2,236,400,000; for the Marine Corps, $94,043,000; for the Air 
Force, $3,176,184,000. 
NAVAL VESSELS 
For naval vessels: for the Navy, $8,363,200,000. 
TRACKED COMBAT VEHICLES 
For tracked combat vehicles: for the Army, $2,313,500,000; for 
the Marine Corps, $45,825,000. 
TORPEDOES 
For torpedoes and related support equipment: for the Navy 
$386,600,000. 
Act, 1981. 
94 STAT. 1078 
PUBLIC LAW 96-342—SEPT. 8, 1980 
Waiver. 
Contract 
authority. 
OTHER WEAPONS 
For other weapons: for the Army, $334,500,000; for the Navy, 
$195,500,000; for the Marine Corps, $69,490,000. 
AUTHORIZATION OP APPROPRIATIONS FOR CONTRIBUTION TO AIRBORNE 
WARNING AND CONTROL SYSTEM (AWACS) FOR NATO 
SEC. 102. There is authorized to be appropriated for fiscal year 1981 
the sum of $382,000,000 to be available only for contribution by the 
United States of its share of the cost for such fiscal year of the 
acquisition by the North Atlantic Treaty Oi^ganization of the Air-
borne Warning and Control System (AWACS). 
CERTAIN AUTHORITY PROVIDED SECRETARY OF DEFENSE IN CONNECTION 
WITH THE NATO AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) 
PROGRAM 
SEC 103. (a) During fiscal year 1981, the Secretary of Defense, in 
carrying out the Multilateral Memorandum of Understanding Be-
tween the North Atlantic Treaty Organization (NATO) Ministers of 
Defence on the NATO E-3A Cooperative Programme, signed by the 
Secretary of 
Defense on December 6,1978, mav— 
(1) waive reimbursement for the cost of the following functions 
performed by personnel other than personnel employed in the 
United States Air Force Airborne Warning and Control System 
(AWACS) program office: 
(A) auditing; 
(B) quality assurance; 
(C) codification; 
(D) inspection; 
(E) contract administration; 
(F) acceptance testing; 
(G) certification services; and 
(H) planning, programming, and management services; 
(2) waive any surcharge for administrative services otherwise 
chargeable; and 
(3) in connection with the NATO E-3A Cooperative Pro-
gramme for fiscal year 1981, assume contingent liability for— 
(A) program losses resulting from the gross negligence of 
any contracting officer of 
the United States; 
(B) identifiable taxes, customs duties, and other charges 
levied within the United States on the program; and 
(C) the United States share of the unfunded termination 
liability. 
(b) Authority under this section to enter into contracts shall be 
effective for any fiscal year only to such extent or in such amounts as 
are provided in appropriation Acts. 
PATRIOT MISSILE SYSTEM 
SEC 104. Not more than $494,100,000 of the funds authorized to be 
appropriated by this title for the Anny may be used for procurement 
of the PATRIOT missile system, and no funds authorized to be 
appropriated by this title for the Army may be obligated or expended 
for the procurement of PATRIOT missile system end-items unless 
and until the Secretary of Defense certifies to the Committees on 
Armed Services and Appropriations of the Senate and the House of 
Representatives that, based upon operational and development test-
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1079 
ing conducted by the Army, the PATRIOT missile system is suitable 
for hardware production. 
TITLE II-RESEARCH, DEVELOPMENT, TEST, AND 
EVALUATION 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 201. (a) Funds are hereby authorized to be appropriated for 
fiscal year 1981 for the use of the Armed Forces of the United States 
for research, development, test, and evaluation, as authorized by law, 
in amounts as follows: 
For the Army, $3,248,005,000. 
For the Navy (including the Marine Corps), $5,112,775,000, of 
which $45,251,000 is authorized only for the research, develop-
ment, test, and evaluation of Lightweight Armored Vehicles. 
For the Air Force, $7,159,857,000. 
For the Defense Agencies, $1,367,802,000, of which $42,100,000 
is authorized for the activities of the Director of Test and 
Evaluation, Defense. 
(b) In addition to the funds authorized to be appropriated in 
subsection (a), there are authorized to be appropriated for fiscal year 
1981 such additional sums as may be necessary for increases in 
salary, pay, retirement, and other employee benefits authorized by 
law for civilian employees of the Department of Defense whose 
compensation is provided for by funds authorized to be appropriated 
in this title. 
MX MISSILE AND BASING MODE 
10 u s e 139 note. 
SEC. 202. (a) The Congress finds that a survivable land-based Congressional 
intercontinental ballistic missile (ICBM) system is vital to the secu- f
^
f
,
^
"
^
^
;
, 
rity of the United States and to a stable strategic balance between the 
United States and the Soviet Union and that timely deployment of a 
new basing mode is essential to the survivability of this Nation's 
land-based intercontinental ballistic missiles. It is, therefore, the 
purpose of this section to commit the Congress to the development 
and deployment of the MX missile system, consisting of 200 missiles 
and 4,600 hardened shelters, and to insure that deployment of the 
entire MX system is carried out as soon as practicable. 
(b) The Secretary of Defense shall proceed immediately with the 
full-scale engineering development of the MX missile and a Multiple 
Protective Structure (MPS) basing mode and shall continue such 
development in a manner that will achieve an Initial Operational 
Capability of such missile and basing mode not later than Decem-
ber 31, 1986. 
(c) Notwithstanding any other provision of law, the initial phase of 
construction shall be limited to 2,300 protective shelters for the MX 
missile in the initial deployment area. 
(d) In accordance with the finding of the Congress expressed in study. 
subsection (a), a full system of at least 4,600 protective shelters may 
be deployed in the initial deployment area if, after completion of a 
study to be conducted by the Secretary of Defense of an alternate site 
for a portion of the system, it is determined by the Congress that 
adverse cost, military considerations, or other reasons preclude split 
basing. 
94 STAT. 1080 
PUBLIC LAW 96-342—SEPT. 8, 1980 
study. 
Report to 
congressional 
committees. 
Expiration date. 
C-X AIRCRAFT PROGRAM 
SEC. 203. (a) None of the funds authorized to be appropriated by this 
title may be obUgated or expended for the full-scale engineering 
development or procurement of the C-X or any other new transport 
aircraft until the Secretary of Defense has certified in writing to the 
Congress-
C
D that the national security requirements of the United 
States for additional military airlift capability merit initiation of 
the C-X aircraft program; 
(2) that the magnitude and nature of the military cargo and 
material to be airlifted to the Indian Ocean area and other areas 
of potential conflict are sufficiently well defined to permit 
identification of a deficiency in military airlift capability; 
(3) that the magnitude and characteristics of military cargo 
and material to be transported by air to such areas are suffi-
ciently well defined to provide clear justification and design 
parameters for such aircraft; and 
(4) that plans for such aircraft are sufficiently well developed 
to make such full-scale engineering development both economi-
cal and technically feasible. 
(b) The Secretary of Defense shall conduct a study to determine 
overall United States military mobility requirements. Such study 
shall include an analysis of the total mix of airlift, sealift, and 
propositioning of war materials required for the United States to 
respond to military contingencies in the Indian Ocean area and other 
areas of potential conflict during the decade of the 1980's. The 
Secretary shall submit a report to the Committees on Armed Services 
of the Senate and House of Representatives not later than February 
1, 1981, on the results of such study, together with such comments 
and recommendations as the Secretary considers appropriate, includ-
ing recommendations for specific programs to provide an adequate 
overall military transportation capacity for the United States. 
(c) Not more than $35,000,000 of the funds authorized to be 
appropriated by this title may be obligated or expended for the C-X 
aircraft program. Of such amount, not more than $15,000,000 may be 
obligated or expended before February 1,1981, and the remainder of 
such amount may be obligated or expended only after the expiration 
of 60 days following the submission to the Congress of the report 
required by subsection (b). 
Status report to 
congressional 
committees. 
MULTI-ROLE STRATEGIC BOMBER 
SEC. 204. (a) The Secretary of Defense shall vigorously pursue full-
scale engineering development of 
a strategic multi-role bomber which 
maximizes range, payload, £ind ability to perform the missions of 
conventional bomber, cruise missile launch platform, and nuclear 
weapons delivery system in both the tactical and strategic role. 
O
t
)
) Of the funds authorized to be appropriated for the Air Force 
under this title, $300,000,000 may be obligated or expended for fuU-
scsde development, following compliance with subsection (c), of a 
multi-role bomber aircraft to achieve an Initial Operational Capa-
bility as soon as practicable, consistent with the aircraft selected, but 
not later than 1987. Such aircraft shall have the capability of 
performing the missions of conventionaJ bomber, cruise missile 
launch platform, and nuclear weapons delivery system. 
(c) The Secretary of Defense shall submit a status report to the 
Committees on Anned Services of the Senate and House of Repre-
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1081 
sentatives by March 15,1981, on the results of the development effort 
to date. The Secretary shall include in such report comparisons of the 
various candidate aircraft in terms of cost and military effectiveness. 
Candidate aircraft shall include, but not be limited to, advanced 
technology aircraft, the B-1 bomber aircraft and derivatives of the 
B-1 aircraft, and the FB-lllB/C aircraft. 
EXTREMELY LOW FREQUENCY (ELF) COMMUNICATIONS SYSTEM 
SEC. 205. (a) Notwithstanding the provisions of section 202 of the 
Department of Defense Appropriation Authorization Act, 1979 
(Public Law 95-485; 92 Stat. 1612), and section 203 of the Department 
of Defense Authorization Act, 1980 (Public Law 96-107; 93 Stat. 805), 
the Secretary of the Navy shall resume research and development 
work on the Extremely Low Frequency (ELF) Communications 
System. Notwithstanding any provision of law restricting the avail-
ability of such funds, the Secretary of the Navy shall use any 
unobligated funds previously appropriated for such system for fiscal 
year 1979 for the purpose of resuming such work. 
(b) Not later than April 1, 1981, the President shall submit to the 
Congress a plan for the deployment of an operational Extremely Low 
Frequency (ELF) Communications System. 
RESTRICTION ON FUNDS FOR DEVELOPMENT OF THE 120-MILUMETER 
TANK GUN 
SEC. 206. Of 
the amount authorized to be appropriated for the Army 
by this title, not more than $62,061,000 is authorized for development 
of the 120-millimeter tank gun. However, none of such funds may be 
obligated or expended for development of such gun until (1) the 
Secretary of the Army prepares a plan on how the life-cycle costs for 
incorporating the 120-millimeter gun into the tank force of the Army 
can be reduced by $600,000,000 through efficient training practices, 
(2) the Secretary of Defense approves such plan, and (3) such plan is 
submitted to the Congress. 
STUDY OF FAST LOGISTIC SURFACE EFFECT SHIP 
SEC. 207. Of the funds appropriated to the Department of Defense 
for fiscal year 1980 which have not previously been obligated or 
expended, not more than $6,000,000 are available for study of a 
logistic surface effect ship weighing between 5,000 and 7,000 tons and 
capable of a speed of not less than 70 knots. 
INCREASES IN DOLLAR CEIUNGS FOR INDEPENDENT RESEARCH AND 
DEVELOPMENT COSTS AND BID AND PROPOSAL COSTS 
SEC. 208. Section 203 of Public Law 91-441 (84 Stat. 906; 10 U.S.C. 
2358 note) is amended— 
(1) by striking out "$2,000,000" and "$250,000" in subsection 
(a)(1) and inserting in lieu thereof "$4,000,000" and "$500,000", 
respectively; and 
(2) b3^ adding at the end of such section the following new 
subsection: 
"(f) On October 1,1983, and once every three years thereafter, the 
Secretary of Defense may, based upon economic indices that the 
Secretary has selected, adjust the amounts in subsection (a)(1) of this 
section in accordance with economic changes reflected in those 
indices.". 
Plan, submittal 
to Congress. 
Plan, submittal 
to Congress. 
94 STAT. 1082 
PUBLIC LAW 96-342—SEPT. 8, 1980 
TITLE III—ACTIVE FORCES 
10 u s e 520 note. 
10 u s e 520. 
Waiver. 
AUTHORIZATION OF END STRENGTHS 
SEC. 301. The Armed Forces are authorized strengths for active 
duty personnel as of September 30,1981, as follows: 
(1) The Army, 775,300. 
(2) The Navy, 537,456. 
(3) The Marine Corps, 188,100. 
(4) The Air Force, 564,500. 
LIMITATION ON ENLISTMENT AND INDUCTION OF PERSONS INTO THE 
ARMED FORCES WHOSE SCORE ON THE ARMED FORCES QUALIFICATION 
TEST IS BELOW A PRESCRIBED LEVEL 
SEC. 302. (a) The number of male individuals (with no prior military 
service) enlisted or inducted into the Army during the fiscal year 
beginning on October 1,1980, who are not high school graduates may 
not exceed, as of September 30, 1981, 35 percent of all male individ-
uals (with no prior military service) enlisted or inducted into the 
Army during such fiscal year. 
(b)(1) Chapter 31 of title 10, United States Code, relating to 
enlistments in the Armed Forces, is amended by adding at the end 
thereof the following new section: 
"§ 520. Limitation on enlistment and induction of persons whose 
score on the Armed Forces Qualification Test is below a 
prescribed level 
"(a) For the fiscal year beginning on October 1, 1980, the total 
number of persons originally enlisted or inducted to serve on active 
duty (other than active duty for training) in the armed forces during 
such fiscal year whose score on the Armed Forces Qualification Test 
is at or above the tenth percentile and below the thirty-first percen-
tile may not exceed 25 percent of the number of such persons enlisted 
or inducted into the armed forces during such fiscal year. For the 
fiscal year beginning on October 1, 1981, the number of persons 
originally enlisted or inducted to serve on active duty (other than 
active duty for training) in any armed force during such fiscal year 
whose score on the Armed Forces Qualification Test is at or above the 
tenth percentile and below the thirty-first percentile may not exceed 
25 percent of the number of such persons enlisted or inducted into 
such armed force during such fiscal year. For any fiscal year begin-
ning after September 30, 1982, the number of persons originally 
enlisted or inducted to serve on active duty (other than active duty for 
training) in any armed force during such fiscal year whose score on 
the Armed Forces Qualification Test is at or above the tenth percen-
tile and below the thirty-first percentile may not exceed 20 percent of 
the number of such persons enlisted or inducted into such armed 
force during such fiscal year. 
"(b) When the Secretary of Defense determines that, because of 
national security reasons, the limitation contained in subsection (a) 
should not be effective for any fiscal year, the Secretary may waive 
such limitation for such fiscal year to the extent he considers 
necessary, but any such waiver shall be effective only i
f
— 
"(1) the Secretary notifies the Congress in writing of such 
determination, of the reasons therefor, and the extent to which 
he proposes to waive such limitation; and 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1083 
"(2) the Congress adopts a concurrent resolution stating in 
substance that it api)roves the proposed waiver.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"520. Limitation on enlistment and induction of persons whose score on the Armed 
Forces Qualification Test is below a prescribed level.". 
(c) The Secretary of Defense shall report to the Committees on 
Armed Services of the Senate and House of Representatives at the 
end of each quarter of fiscal year 1981 whether the requirements of 
section 520 of title 10, United States Code, as added by subsection O
t
>
)
, 
have a negative impact on combat readiness. 
(d) It is the sense of 
the Congress— 
(1) that secondary educational institutions in the United 
States, the Commonwealth of Puerto Rico, and the territories of 
the United States should cooperate with the Armed Forces by 
allowing recruiting personnel access to such institutions; and 
(2) that it is appropriate for such institutions to release to the 
Armed Forces information regarding students at such institu-
tions (including such data as names, addresses, and education 
levels) which is relevant to recruiting individuals for service in 
the Armed Forces. 
Report to 
congressional 
committees. 
Recruitment in 
secondary 
educational 
institutions. 
10 u s e 503 note. 
COMPREHENSIVE MANPOWER MOBILIZATION PLAN 
SEC, 303. (a) The Secretary of Defense, in conjunction with the 
Director of Selective Service, shall prepare and submit to the Con-
gress, not later than April 2, 1981, a comprehensive plan for the 
effective management during peacetime of the potential military 
manpower of the United States and for the effective mobilization 
during a war or national emergency of the military manpower and 
defense-related manpower of the United States. Such plan shall 
include— 
(1) any new and improved procedures for the registration and 
classification of persons under the Military Selective Service Act, 
placing special emphasis on administrative and medical proce-
dures that will result in more efficient and cost-effective screen-
ing of registrants; 
(2) new categories and equitable standards for the deferment 
£md exemption of persons from training and service under the 
Military Selective Service Act; and 
(3) such other administrative changes considered necessary or 
appropriate to manage effectively during peacetime the poten-
tial military manpower of the United States and to mobilize 
effectively during a war or national emergency the military 
manpower and defense-related manpower of the United States. 
0
1
>
) The Secretary of Defense and the Director of Selective Service 
shall conduct a study of the impact, if any, of the reinstatement of 
re^tration under the Military Selective Service Act, and the impact 
of implementing the plan described in subsection (a), on the recruit-
ment and retention of 
personnel for the active duty and reserve forces 
of the United States. The Secretary of Defense shall submit the 
results of such study to the Congress not later than April 2, 1981. 
(c) The Secretary of Defense shall submit a report to the Congress 
not later than January 31, 1981, containing the Secretary's projec-
tions for each of 
the 
five 
fiscal 
years 1981 through 1985 with respect to 
(1) the total manpower needs of each active duty and reserve 
component of the Armed Forces, and (2) the desirea and planned 
characteristics (including educational attainment, mental ability, 
Plan, submittal 
to Congress. 
Registration 
procedures. 
50 u s e app. 451. 
Deferment. 
Study. 
Submittal to 
eongress. 
Report to 
Congress. 
94 STAT. 1084 
PUBLIC LAW 96-342—SEPT. 8, 1980 
marital status, sex, and other pertinent personal characteristics) for 
the personnel of each such component. 
Study. 
(d) The Secretary of Defense shall conduct a study to identify the 
Congress^ 
number of military personnel in each of the several skill categories 
needed to respond effectively in situations in which a military 
conflict is most likely to occur and shall submit a report to the 
Congress not later than April 2,1981, containing the results of such 
study. Such report shall include (1) the estimated shortages in each 
skill category in each of the situations in which a military conflict is 
most likely to occur, (2) recommendations for the procedures neces-
sary for locating and obtaining such additional skilled personnel as 
may be needed by the Armed Forces to respond effectively in such 
situations, and (3) such recommendations for changes in existing law 
as may be necessary to facilitate the compilation and maintenance of 
a current list of personnel who possess the skills required by the 
Armed Forces to respond effectively in such situations. 
TITLE IV—RESERVE FORCES 
AUTHORIZATION OF AVERAGE STRENGTHS 
SEC. 401. (a) For fiscal year 1981, the Selected Reserve of the reserve 
components of the Armed Forces shall be programmed to attain 
average strengths of not less than the following: 
(1) The Army National Guard of the United States, 371,300. 
(2) The Army Reserve, 204,500. 
(3) The Naval Reserve, 87,400. 
(4) The Marine Corps Reserve, 33,700. 
(5) The Air National Guard of the United States, 94,300. 
(6) The Air Force Reserve, 58,800. 
(7) The Coast Guard Reserve, 11,700. 
(b) Within the average strengths prescribed in subsection (a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 1981, the following number of reserve component 
members to be serving on full-time active duty for the purpose of 
organizing, administering, recruiting, instructing, or training the 
reserve components: 
(1) The Army National Guard of the United States, 10,159. 
(2) The Army Reserve, 5,400. 
(3) The Naval Reserve, 708. 
(4) The Marine Corps Reserve, 67. 
(5) The Air National Guard of the United States, 3,207. 
(6) The Air Force Reserve, 698. 
(c) The average strength prescribed by subsection (a) for the 
Selected Reserve of any reserve component shall be proportionately 
reduced by (1) the total authorized strength of units organized to 
serve as units of the Selected Reserve of such component which are on 
active duty (other than for training) at any time during the fiscal 
year, and (2) the total number of individual members not in units 
organized to serve as units of the Selected Reserve of such component 
who are on active duty (other than for training or for unsatisfactory 
participation in training) without their consent at any time during 
the fiscal year. Whenever such units or such individual members are 
released from active duty during any fiscal year, the average strength 
prescribed for such fiscal year for the Selected Reserve of such 
reserve component shall be proportionately increased by the total 
authorized strength of such units and by the total number of such 
individual members. 
PUBLIC LAW 96-342—SEPT. 8, 1980 
TITLE V—CIVILIAN PERSONNEL 
94 STAT. 1085 
AUTHORIZATION OF END STRENGTH 
SEC. 501. (a) The Department of Defense is authorized a strength in 
civilian personnel, as of September 30,1981, of 986,000. 
(b) The strength for civilian personnel prescribed in subsection (a) 
shall be apportioned among the Department of the Army, the 
Department of the Navy (including the Marine Corps), the Depart-
ment of the Air Force, and the agencies of the Department of Defense 
(other than the military departments) in such numbers as the 
Secretary of Defense shall prescribe. The Secretary of Defense shall 
report to the Congress within sixty days after the date of the 
enactment of this Act on the manner in which the initial allocation of 
civilian personnel is made among the military departments and the 
agencies of the Department of Defense (other than the military 
departments) and shall include the rationale for each allocation. 
(c) In computing the strength for civilian personnel, there shall be 
included all direct-hire and indirect-hire civilian personnel employed 
to perform military functions administered by the Department of 
Defense (other than those performed by the National Security 
Agency) whether employed on a full-time, part-time, or intermittent 
basis, but excluding special employment categories for students and 
disadvantaged youth such as the stay-in-school campaign, the tempo-
rary summer aid program and the Federal junior fellowship program 
and personnel participating in the worker-trainee opportunity pro-
gram. Personnel employed under a part-time career employment 
program established under section 3402 of title 5, United States Code, 
shall be counted as prescribed by section 3404 of that title. Whenever 
a function, power, or duty, or activity is transferred or assigned to a 
department or agency of the Department of Defense from a depart-
ment or agency outside of the Department of Defense, or from 
another department or agency within the Department of Defense, the 
civilian personnel end strength authorized for such departments or 
agencies of the Department of Defense affected shall be adjusted to 
reflect any increases or decreases in civilian personnel required as a 
result of such transfer or assignment. 
(d) When the Secretary of Defense determines that such action is 
necessary in the national interest or if any conversion of commercial 
and industrial type functions from performance by Department of 
Defense personnel to performance by private contractors which was 
anticipated to be made during fiscal year 1981 in the Budget of the 
President submitted for such fiscal year is not determined to be 
appropriate for such conversion under established administrative 
criteria, the Secretary of Defense may authorize the employment of 
civilian personnel in excess of the number authorized by subsection 
(a), but such additional number may not exceed 2 percent of the total 
number of civilian personnel authorized for the Department of 
Defense by subsection (a). The Secretary of Defense shall promptly 
notify the Congress of any authorization to increase civilian person-
nel strength under this subsection. 
(e) During fiscal year 1981, the Secretary of Defense shall manage 
the manpower resources of the Department of Defense in a manner 
that will insure that functions of the Department of Defense involv-
ing maintenance, construction, engineering acquisition, or repair 
activities will be provided civilian manpower resources sufficient to 
fulfill the work requirements for which funds have been appropri-
Report to 
Congress. 
Employment. 
5 u s e 3404. 
Transfer of 
functions. 
Excess 
employees. 
Notification of 
Congress. 
Manpower 
resources, 
management. 
94 STAT. 1086 
PUBLIC LAW 96-342—SEPT. 8, 1980 
10 u s e 2304 
note. 
Notification of 
Congress. 
Cost comparison. 
Certification of 
calculation. 
Report. 
Notification of 
Congress. 
Report to 
Congress. 
ated, on a schedule consistent with the requirements of national 
security and military readiness. 
STRENGTHENING OP RESTRICTIONS ON CONVERSION OF PERFORMANCE 
OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS FROM DEPART-
MENT OF DEFENSE PERSONNEL TO PRIVATE CONTRACTORS 
SEC. 502. (a) No commercial or industrial type function of the 
Department of Defense that on October 1,1980, is being performed by 
Department of Defense personnel may be converted to performance 
by a private contractor— 
(1) to circumvent any civilian personnel ceiling; or 
(2) unless the Secretary of Defense provides to the Congress in 
a timely manner— 
(A) notification of any decision to study such commercial 
or industrial type function for possible performance by a 
private contractor; 
(B) a detailed summary of a comparison of the cost of 
performance of such function by Department of Defense 
personnel and by private contractor which demonstrates 
that the performance of such function by a private contrac-
tor will result in a cost savings to the Government over the 
life of the contract and a certification that the entire cost 
comparison is available; 
(C) a certification that the Government calculation for the 
cost of performance of such function by Department of 
Defense personnel is based on an estimate of the most 
efficient and cost effective organization for performance of 
such function by Department of Defense personnel; and 
(D) a report, to be submitted with the certification 
required by subparagraph (C), showing— 
(i) the potential economic effect on employees affected, 
and the potential economic effect on the local commu-
nity and Federal Government if more than 50 employees 
are involved, of contracting for performance of such 
function; 
(ii) the effect of contracting for performance of such 
function on the military mission of such function; and 
(iii) the amount of the bid accepted for the perform-
ance of such function by the private contractor whose 
bid is accepted and the cost of performance of such 
function by Department of Defense personnel, together 
with costs and expenditures which the Government will 
incur because of the contract, 
flj) If, after completion of the studies required for completion of the 
certification and report required by subparagraphs (C) and (D) of 
subsection (a)(2), a decision is made to convert to contractor perform-
ance, the Secretary of Defense shall notify Congress of such decision, 
(c) The Secretary of Defense shall submit a written report to the 
Congress by February 1 of each fiscal year describing the extent to 
which commercial and industrial type functions were performed by 
Department of Defense contractors during the preceding fiscal year. 
The Secretary shall include in each such report an estimate of the 
percentage of commercial and industrial type functions of the 
Department of Defense that will be performed by Department of 
Defense personnel, and the percentage of such functions that will be 
performed by private contractors, during the fiscal year during which 
the report is submitted. 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1087 
(d) This section shall take effect on October 1,1980. 
Effective date. 
TITLE VI—MILITARY TRAINING STUDENT LOADS 
AUTHORIZATION OF TRAINING STUDENT LOADS 
SEC. 601. (a) For fiscal year 1981, the components of the Armed 
Forces are authorized average military training student loads as 
follows: 
(1) The Army, 53,128. 
(2) The Navy, 64,545. 
(3) The Marine Corps, 21,393. 
(4) The Air Force, 46,238. 
(5) The Army National Guard of the United States, 7,177. 
(6) The Army Reserve, 6,880. 
(7) The Naval Reserve, 953. 
(8) The Marine Corps Reserve, 3,144. 
(9) The Air National Guard of the United States, 1,930. 
(10) The Air Force Reserve, 1,139. 
O
b
) In addition to the number authorized in subsection (a), the 
following components of the Armed Forces are authorized a military 
training student load to be utilized solely for one station unit training 
of not less than the following: 
(1) The Army, 18,890. 
(2) The Army National Guard of the United States, 6,839. 
(3) The Army Reserve, 2,468. 
(c) The average military training student loads for the Army, the 
Navy, the Marine Corps, and the Air Force and the reserve compo-
nents authorized in subsection (a) for fiscal year 1981 shall be 
adjusted consistent with the manpower strengths authorized in titles 
III, IV, and V of this Act. Such adjustment shall be apportioned 
among the Army, the Navy, the Marine Corps, and the Air Force and 
the reserve components in such manner as the Secretary of Defense 
shall prescribe. 
TEMPORARY REDUCTION IN THE NUMBER OF STUDENTS REQUIRED TO BE 
IN A UNIT OF THE JUNIOR RESERVE OFFICERS* TRAINING CORPS FOR 
THE UNIT TO BE MAINTAINED 
SEC. 602. Notwithstanding the provisions of section 20310)) of title lo use 2031 
10, United States Code, relating to the establishment and mainte- "°*® 
nance of units of the Junior Reserve Officers' Training Corps, during 
the period beginning on September 1,1980, and ending on August 31, 
1981, the Secretary of any military department may maintain a unit 
of the Junior Reserve Officers' Training Corps at any public or 
private secondary educational institution if— 
(1) the number of physically fit students in such unit who are at 
least 14 years of age and are citizens or nationals of the United 
States is not less than (A) 10 percent of the number of students 
enrolled in the institution who are at least 14 years of age, or (B) 
100, whichever is less; and 
(2) the unit meets such other requirements (in addition to the 
requirements prescribed by section 20310)) of title 10, United 
States Code) as may be established by the Secretary of the 
military department concerned. 
79-194 
O—81—pt. 1 
72 : QL3 
94 STAT. 1088 
PUBLIC LAW 96-342—SEPT. 8, 1980 
TITLE Vn—ATTACK-RELATED CIVIL DEFENSE 
AUTHORIZATION OP APPROPRIATIONS 
SEC. 701. There is hereby authorized to be appropriated for fiscal 
year 1981 to carry out the provisions of the Federal Civil Defense Act 
of 1950 (50 U.S.C. App. 2251-2297) the sum of $120,000,000. 
IMPROVED CIVIL DEFENSE PROGRAM 
SEC. 702. (a) The Federal Civil Defense Act of 1950 (50 U.S.C. App. 
2251-2297) is amended by adding after title IV the following new title: 
"TITLE V—IMPROVED CIVIL DEFENSE PROGRAM 
"SENSE OF CONGRESS 
50 use app. 
"SEC. 501. (a) It is the sense of Congress that— 
"(1) a civil defense program providing for the relocation of the 
population of risk areas, including the larger United States 
cities, during a period of strategic warning resulting from an 
international crisis may be effective in protecting the population; 
"(2) the present civil defense program should be improved; and 
"(3) an improved civil defense program can be developed which 
could enhance the civil defense capability of the United States. 
"(b) It is further the sense of Congress that an improved civil 
defense program should be implemented which— 
"(1) enhances the survivability of the American people and its 
leadership in the event of nuclear war and thereby improves the 
basis for eventual recovery and reduces the Nation's vulnerabil-
ity to a major attack; 
"(2) enhances deterrence, contributes to perceptions of the 
United States-Soviet strategic balance and crisis stability, and 
reduces the possibility that the United States might be suscepti-
ble to coercion by an enemy in times of increased tension; 
"(3) does not suggest any change in the United States policy of 
relying on strategic nuclear forces as the preponderant factor in 
maintaining deterrence; 
"(4) includes planning for the relocation of certain segments of 
the population during times of internationsd crisis; and 
"(5) is adaptable to help deal with natural disasters and other 
peacetime emergencies. 
"ELEMENTS OP A N IMPROVED CIVIL DEFENSE PROGRAM 
50 use app. 
"SEC. 502. (a) In order to carry out the sense of Congress expressed 
2302. 
in section 501, the President shall, to the extent practicable, develop 
and implement an improved civil defense program which includes— 
Attack- and 
"(1) a program structure for the resources to be used for attack-
disaster-reiated 
related civil defense; 
"(2) a program structure for the resources to be used for 
disaster-related civil defense; and 
"(3) criteria and procedures under which those resources 
planned for attack-related civil defense and those planned for 
disaster-related civil defense can be used interchangeably. 
"(b) In developing a program structure for attack-related civil 
defense pursuant to subsection (a), the President shall give considera-
tion to including in such program structure the following elements: 
defense 
programs 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1089 
"(1) Nuclear civil protection planning for more rapid popula-
tion relocation during times of international crisis. 
"(2) Nuclear civil protection planning for improved inplace 
population protection during times of international crisis in the 
event circumstances preclude population relocation. 
"(3) A survey of the shelters inherent in existing facilities. 
"(4) Planning for the development during times of crisis of 
additional shelter. 
"(5) Development of capabilities for shelter management. 
"(6) Marking and stocking of shelters. 
"(1) Development and procurement of ventilation kits for 
shelters. 
"(8) The development of emergency evacuation plans for areas 
in which nuclear powerplants are located. 
"(9) The improvement of civil defense warning systems. 
"(10) The improvement of systems and capabilities for direc-
tion and control of emergency operations by civil governments at 
all levels, including further development of a network of emer-
gency operating centers. 
"(11) The improvement of radiological defense capabilities. 
"(12) The improvement of emergency public information and 
training programs and capabilities. 
"(13) The development of plans for postattack economic recov-
ery and the development of plans for postdisaster economic 
recovery to the extent that planning for postdisaster economic 
recovery planning does not detract from planning for postattack 
economic recovery. 
"(14) The improvement of and training in self-help nuclear war 
survival skills. 
"(15) Civil defense-related research and development. 
"(16) The development of other appropriate systems and capa-
bilities to increase the lifesaving potential of the civil defense 
program. 
"ADMINISTRATIVE PROVISIONS 
"SEC. 503. The powers contained in titles II and IV of this Act shall 50 use app. 
be used in developing and implementing the program required by 50 use app 
section 502.". 
2281, 2253. 
Qo) The table of contents at the beginning of such Act is amended by 
adding at the end thereof the following: 
"TITLE V—IMPROVED CIVIL DEFENSE PROGRAM 
"Sec. 501. Sense of Congress. 
"Sec. 502. Elements of an improved civil defense program. 
"Sec. 503. Administrative provisions.". 
REQUIREMENT FOR MATCHING FUNDS FOR CONSTRUCTION OF EMERGENCY 
OPERATING CENTERS 
SEC. 703. (a)(1) Title II of the Federal Civil Defense Act of 1950 (50 
U.S.C. App. 2281-2286) is amended by adding at the end thereof the 
following new section: 
"REQUIREMENT FOR STATE MATCHING FUNDS FOR CONSTRUCTION OF 
EMERGENCY OPERATING CENTERS 
"SEC. 206. Notwithstanding any other provision of this Act, funds 
so use app. 
appropriated to carry out this Act may not be used for the purpose of ^^^^ 
94 STAT. 1090 
PUBLIC LAW 96-342—SEPT. 8, 1980 
Effective date. 
50 u s e app. 2288 
note. 
50 u s e app. 2281 
note. 
Report to 
Congress. 
Appropriation 
authorization. 
Effective date. 
constructing emergency operating centers (or similar facilities) in 
any State unless such State matches in an equal amount the amount 
made available to such State under this Act for such purpose.". 
(2) The table of contents at the beginning of such Act is amended by 
adding below the item relating to section 205 the following new item: 
"206. Requirement for State matching funds for construction of emergency operat-
ing centers.". 
(b) The amendments made by subsection (a) shall take effect on 
October 1,1980. 
PILOT PROGRAM TO STUDY DESIGN AND CONSTRUCTION OF BUILDINGS 
TO MINIMIZE EFFECTS OF NUCLEAR EXPLOSIONS 
SEC. 704. (a) The Director of the Federal Emergency Management 
Agency shall establish a pilot program of designing and constructing 
buildings to enhance the ability of the buildings to withstand nuclear 
explosions and to minimize the damage to such buildings caused by a 
nuclear explosion. Such program shall include the designing and 
constructing of at least two building projects chosen by the Director 
so that the buildings in the projects will be able to better withstand 
nuclear explosions and so that any damage to the buildings in the 
project caused by a nuclear explosion will be minimized. 
(b) The Director of the Federal Emergency Management Agency 
shall submit a report to the Senate and the House of Representatives 
not later than April 1,1981, on the establishment under subsection (a) 
of the pilot program. 
(c) Of the sums authorized to be appropriated under section 701, 
$400,000 shall be available to carry out the pilot program established 
pursuant to subsection (a). 
(d) This section shall take effect on October 1,1980. 
AUTHORIZATION TO ACQUIRE CERTAIN LEASED REAL PROPERTY AT THE 
FEDERAL EMERGENCY MANAGEMENT AGENCY FACIUTY AT OLNEY, 
MARYLAND 
Effective date. 
SEC. 705. Effective October 1, 1980, the Director of the Federal 
Emergency Management Agency is authorized to acquire, in accord-
ance with the provisions of section 201(h) of the Federal Civil Defense 
Act of 1950 (50 U.S.C. App. 2281(h)), fee title to those parcels of real 
property which are currently leased by such agency at the facility of 
such agency in Olney, Maryland, which (1) are used as a site for a 
communications antenna, or (2) contain the water wells for such 
facility. 
TITLE VIII-COMPENSATION AND RELATED BENEFITS 
37 u s e 1009 
note. 
Effective date. 
PAY INCREASE OF 11.7 PERCENT FOR MEMBERS OF THE UNIFORMED 
SERVICES 
SEC. 801. (a) Any adjustment required under the provisions of 
section 1009 of title 37, IJnited States Code, relating to adjustments in 
the compensation of members of the uniformed services, which would 
otherwise first become effective beginning with any pay period in 
fiscal year 1981 shall not become effective. 
O
b
X
D Subject to the provisions of paragraph (2), each element of 
compensation specified in section 1009(a) of title 37, United States 
Code, shall be increased for members of the uniformed services by 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1091 
11.7 percent effective with the first pay period beginning after 
September 30,1980. 
(2) The President may allocate the percentage increase specified 
under paragraph (1) in the same manner and to the same extent the 
President is authorized under subsections (c) and (d) of section 1009 of 
title 37, United States Code, as amended by section 803 of this Act, to ^"^''" 
allocate any percentage increase described in subsection Ot))(3) of 
section 1009 of 
such title, except that— 
3
7 use ioo9. 
(A) the provisions of subsection (d)(2XB) of such section shall 
not apply to this subsection or any action of the President under 
this subsection; and 
(B) the overall average percentage increase in the elements of 
compensation specified in subsection (a) of such section in the 
case of any member of the uniformed services with four years or 
less service may not exceed 11.7 percent. 
RECOMMENDATIONS WITH RESPECT TO METHOD OF ADJUSTMENT OF 
MILITARY PAY 
SEC. 802. The President shall submit to the Congress not later than Submittal to 
April 1, 1981, such recommendations as he considers necessary or ^^o^gress. 
appropriate to improve the method for determining adjustments in 
the pay and allowances for members of the uniformed services. 
AUTHORITY TO ALLOCATE PAY INCREASES AMONG PAY GRADES AND 
YEARS-OF-SERVICE CATEGORIES 
SEC. 803. Section 1009 of title 37, United States Code, relating to 
adjustments in compensation, is amended— 
(1) by striking out "subsection (c)" in clause (3) of subsection (b) 
and inserting in lieu thereof "subsections (c) and (d) of this 
section,"; 
(2) in subsection (c)— 
(A) by inserting "(1)" before "Whenever"; 
(B) by inserting "of this section" after "subsection 0))(3)" 
both places it appears and after "subsection (a)"; and 
(C) by striking out "per centum" and inserting in lieu 
thereof "percent ; 
(3) by redesignating subsection (d) as paragraph (2) and in such 
paragraph (as so redesignated)— 
(A) by striking out "under subsection (c)" both places it 
appears and inserting in lieu thereof "under paragraph (1) of 
this subsection"; 
(B) by inserting "of this section" after "subsection (a)" and 
after "subsection (b)(3)"; and 
(C) by inserting "of this title" after "section 403 (b) or (c)" 
both places it appears; 
(4) by inserting after subsection (c) the following new subsec-
tion (d): 
"(d)(1) Subject to paragraph (2) of this subsection, whenever the 
President determines such action to be in the best interest of the 
Government, he may allocate the overall percentage increase in the 
element of basic pay that would otherwise be effective after any 
allocation made under subsection (c) of this section among such pay 
grade and years-of-service categories as he considers appropriate. 
"(2) In making any allocation of an overall percentage increase in 
basic pay under paragraph (1) of 
this subsection— 
94 STAT. 1092 
PUBLIC LAW 96-342—SEPT. 8, 1980 
"(A) the amount of the increase in basic pay for any given pay 
grade and years-of-service category after any allocation made 
under this subsection or under subsection (c) of this section (or 
under both such subsections) may not be less than 75 percent of 
the amount of the increase in the element of basic pay that would 
otherwise have been effective with respect to such pay grade and 
years-of-service category under subsection (b)(3) of this section; 
and 
"(B) the overall percentage increase in the elements of compen-
sation specified in subsection (a) of this section in the case of any 
member of the uniformed services with four years or less service 
may not exceed the overall percentage increase in the General 
Schedule rates of basic pay for civilian employees."; 
(5) in subsection (e)— 
(A) by inserting "or (d) of this section" after "subsection 
(c)"; and 
(B) by striking out "among the different elements of 
compensation"; and 
(6) in subsection (f)— 
(A) by striking out "among the three elements of compen-
sation"; and 
37 use 1008. 
(B) by inserting "of this title" after "section 1008(b)". 
ENLISTMENT AND REENLISTMENT BONUSES FOR ACTIVE FORCES 
SEC. 804. (a)(1) Subsection (a) of section 308 of title 37, United States 
Code, relating to reenlistment bonuses, is amended— 
(A) by striking out "ten years" in clause (A) and inserting in 
lieu thereof "fourteen years"; 
(B) by striking out "$15,000" and inserting in lieu thereof 
"$20,000"; and 
(C) by striking out "twelve years" and inserting in lieu thereof 
"sixteen years". 
(2) Subsection (f) of such section is amended by striking out 
"September 30, 1980" and inserting in lieu thereof "September 30, 
1982". 
37 use 308a. 
(b)(1) Subsection (a) of section 308a of such title, relating to 
enlistment bonuses, is amended by striking out "$3,000" and insert-
ing in lieu thereof "$5,000". 
(2) Subsection (c) of such section is amended by striking out 
"September 30, 1980" and inserting in lieu thereof "September 30, 
1982". 
Effective date. 
(c) The amendments made by this section shall only apply to 
37 use 308 note, enlistments, reenlistments, and extensions of enlistments made after 
September 30,1980. 
ENLISTMENT AND REENLISTMENT BONUSES FOR RESERVE FORCES 
SEC. 805. (a)(1) Chapter 5 of title 37, United States Code, relating to 
special and incentive pays, is amended by inserting after section 308c 
the following new sections: 
37 use 308d. 
"§ 308d. Special pay: bonus for enlistment, reenlistment, or exten-
sion of enlistment in elements of the Ready Reserve other 
than the Selected Reserve 
"(a)(1) Except as provided in paragraph (2) of this subsection, any 
person who enlists or reenlists, or voluntarily extends an enlistment, 
in an element (other than the Selected Reserve) of the Ready Reserve 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1093 
Regulations. 
Refund to U.S. 
of an armed force for a period of not less than three years may be paid 
a bonus as provided in subsection (b) of this section. 
"(2) A bonus may not be paid under this section to any person who 
failed to complete satisfactorily any original term of enlistment in 
the armed forces. 
"(b) Eligibility for a bonus under this section, and the amount and Eligibility 
method of payment of such a bonus, shall be determined in accord-
ance with regulations prescribed under subsection (c) of this section, 
except that the amount of such a bonus may not exceed $600. 
"(c) This section shall be administered under regulations pre-
scribed by the Secretary of Defense for the armed forces under his 
jurisdiction and by the Secretary of Transportation for the Coast 
Guard when it is not operating as a service in the Navy. 
"(d)(1) A member who receives a bonus payment under this section 
and who fails during the period for which the bonus was paid to serve 
satisfactorily in the element of the Ready Reserve with respect to 
which the bonus was paid shall refund to the United States an 
amount which bears the same ratio to the amount of the bonus paid 
to such member as the period which such member failed to satisfacto-
rily serve bears to the total period for which the bonus was paid. 
"(2) An obligation to reimburse the United States imposed under 
paragraph (1) of this subsection is for all purposes a debt owed to the 
United States. 
"(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an agreement under this section 
does not discharge the member signing such agreement from a debt 
arising under such agreement or under paragraph (1) of this subsec-
tion. This paragraph applies to any case commenced under title 11 
after September 30,1980. 
"(e) No bonus may be paid under this section to any person for an 
enlistment, reenlistment, or voluntary extension of an enlistment 
after September 30,1981. 
"§ 308e. Special pay: bonus for reserve afniiation agreement 
3
7 use 308e. 
"(a) Under regulations prescribed by the Secretary of Defense, the 
Secretary of a military department may pay a bonus for reserve 
affiliation to any person— 
"(l)who— 
"(A) is serving on active duty, has 180 days or less 
remaining of his active duty obligation, and upon discharge 
or release from active duty upon the completion of such 
active duty obligation will have a reserve service obligation 
under section 651 of title 10 or under section 6(d)(1) of the 
Military Selective Service Act (50 U.S.C. App. 456(d)(1)); or 
"(B) has served on active duty for any period of time, was 
discharged or released from such active duty under honor-
able conditions, and is serving a period of reserve service 
obligation under section 651 of title 10 or section 6(d)(1) of the 
Military Selective Service Act (50 U.S.C. App. 456(d)(1)); and 
"(2) who meets the requirements of subsection (b) of this 
section. 
"(b) To be eligible to receive a bonus for reserve affiliation under Eligibility. 
this section, a person must— 
"(1) be eligible for reenlistment or for an extension of his active 
duty service; 
"(2) have completed satisfactorily any term of enlistment or 
period of obligated active duty service; 
Discharge in 
bankruptcy. 
11 u s e 101. 
Restriction. 
94 STAT. 1094 
PUBLIC LAW 96-342—SEPT. 8, 1980 
Determination 
of amount. 
Refund to U.S. 
Discharge in 
bankruptcy. 
11 u s e 101. 
Restriction. 
Effective date. 
37 u s e 308d 
note. 
Ante, p. 1092. 
"(3) hold and be qualified in a military specialty designated by 
the Secretary of 
Defense for the purposes of this section; 
"(4) have a grade for which there is a vacancy in the reserve 
component in which the person is to become a member; 
"(5) not be affiliating in a reserve component to become a 
Reserve, Army National Guard, or Air National Guard 
technician; 
"(6) enter into a written agreement with the Secretary con-
cerned to serve as a member of the Selected Reserve of the Ready 
Reserve of an armed force for the period of obligated reserve 
service such person has remaining or, if such person is on active 
duty, will have remaining at the time of his discharge or release 
from active duty; and 
"(7) meet all the other requirements for becoming a member of 
the Selected Reserve of the Ready Reserve of an armed force. 
"(c)(1) The amount of the bonus paid to any person under this 
section shall be an amount determined by multiplying $25 times the 
number of months of reserve obligation such person has remaining 
or, if such person is on active duty, will have remaining at the time of 
his discharge or release from active duty. 
"(2) In the case of a person who has, or at the time of discharge or 
release from active duty will have, eighteen months or less reserve 
service obligation remaining, the Secretary concerned may pay the 
total amount of the bonus at the time such person signs a reserve 
affiliation agreement under this section. In the case of a person who 
has, or at the time of discharge or release from active duty will have, 
more than eighteen months of such service remaining, the Secretary 
concerned may pay one-half of the bonus at the time such person 
signs a reserve affiliation agreement under this section and the 
remaining one-half on the date of the fifth anniversary of such 
person's original enlistment or call to active duty. 
"(d)(1) A person who signs a reserve affiliation agreement under 
this section and who fails during the period covered by such agree-
ment to serve satisfactorily in the Selected Reserve in which such 
person agrees to serve shall refund to the United States an amount 
which bears the same ratio to the amount of the bonus paid to such 
person as the period which such person failed to satisfactorily serve 
bears to the total period for which the bonus was paid. 
"(2) An obligation to reimburse the United States imposed under 
paragraph (1) of this subsection is for all purposes a debt owed to the 
United States. 
"(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an agreement under this section 
does not discharge the person signing such agreement from a debt 
arising under such agreement or under paragraph (1) of this subsec-
tion. This paragraph applies to any case commenced under title 11 
after September 30,1980. 
"(e) No bonus may be paid under this section to any person for a 
reserve obligation agreement entered into after September 30,1981.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 308c the 
following new items: 
"308d. Special pay: bonus for enlistment, reenlistment, or extension of enlistment in 
elements of the Ready Reserve other than the Selected Reserve. 
"308e. Special pay: bonus for reserve affiliation agreement.". 
(3) Section 308d of title 37, United States Code, as added by 
paragraph (1), shall apply only to enlistments, reenlistments, and 
extensions of enlistments made after September 30, 1980. Agree-
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1095 
merits may not be entered into under section 308e of such title, as ^«^e. P IO93. 
added by such paragraph, before October 1,1980. 
(b) Sections 308b(g) and 308c(f) of 
such title, relating to reenlistment 3
7 use 308b, 
and enlistment bonuses for members of the Selected Reserve of the '^"^'^ 
Ready Reserve, are amended by striking out "September 30, 1980" 
and inserting in lieu thereof "September 30,1985". 
CONTINUATION BONUS FOR AVIATION CAREER OFFICERS 
SEC. 806. (a)(1) Chapter 5 of title 37, United States Code, is amended 
by inserting after section 301a the following new section: 
"§301b. Special pay: aviation career officers extending period of 37USC30ib. 
active duty 
"(a) Under regulations prescribed by the Secretary of Defense, or 
by the Secretary of Transportation with respect to the Coast Guard 
when it is not operating as a service in the Navy, an officer of a 
uniformed service who— 
"(1) is entitled to aviation career incentive pay under section 
301a of this title; 
"(2) is in a pay grade below the pay grade of 0-7; 
"(3) is qualified to perform operational flying duty (as such 
term is defined in clause (6) of section 301a(a) of this title); 
"(4) has at least 6 but less than 18 years of aviation service as 
an officer; 
"(5) executes a written agreement to remain on active duty in 
aviation service for at least one year; and 
"(6) is in an aviation specialty designated as critical; 
may, upon the acceptance of the written agreement by the Secretary 
of Defense or the Secretary of Transportation, as applicable, be paid 
an amount not to exceed the product of four months' basic pay 
(computed at the rate applicable to the officer at the time the 
agreement is executed) and the number of years (or the monthly 
fractions thereof) that the officer agrees to remain on active duty 
under the agreement. An agreement under this section may not 
extend beyond the date on which the officer would complete 19 years 
of aviation service. Upon acceptance of the agreement by the Secre-
tary of Defense or the Secretary of Transportation, as appropriate, 
and subject to subsection (d) of this section, the total amount 
payable becomes fixed and may be paid in either a lump sum or in 
installments. 
"(b) Special pay under this section is in addition to any other pay 
and allowances to which an officer is entitled. 
"(c) For the purpose of this section, the term 'aviation service' 
means the service performed by an officer holding an aeronautical 
rating or designation (except a flight surgeon or other medical officer) 
under regulations prescribed by the Secretary of Defense or the 
Secretary of Transportation. The years of aviation service are com-
puted beginning with the effective date of the initial order to perform 
aviation service. 
"(d)(1) Under regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation, as appropriate, refunds shall be 
required, on a pro-rata basis, of sums paid under this section if the 
officer who has received the payment fails to complete the total 
period of active duty in aviation service specified in the agreement. 
Nothing in this section shall alter or modify the obligation of a 
regular officer to perform active service at the pleasure of the 
President. Completion of the agreed-upon period of active duty in 
"Aviation 
service." 
Refund to U.S. 
94 STAT. 1096 
PUBLIC LAW 96-342—SEPT. 8, 1980 
Discharge in 
bankruptcy. 
11 use 101. 
Effective date. 
37 use 301b 
note. 
aviation service under this section shall not obligate the President to 
accept a resignation submitted by a regular officer. 
"(2) An obligation to reimburse the United States imposed under 
paragraph (1) of this subsection is for all purposes a debt owed to the 
United States. 
"(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of 
an agreement under this section 
does not discharge the member signing such agreement from a debt 
arising under such agreement or under paragraph (1) of this subsec-
tion. This paragraph applies to any case commenced under title 11 
after September 30,1980.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 301a the 
following new item: 
"301b. Special pay: aviation career officers extending period of active duty.". 
Qa) Agreements may not be entered into under section 301b of title 
37, United States Code, as added by subsection (a), before October 1, 
1980. 
Effective date. 
37 use 404 note. 
PER DIEM ALLOWANCE FOR MEMBERS TRAVELING ON OFFICIAL BUSINESS 
SEC. 807. (a) Section 404(d) of title 37, United States Code, relating 
to per diem travel and transportation expenses, is amended by 
striking out "$35" and "$50" and insertmg in lieu thereof "$50" and 
"$75", respectively. 
(b) The amendments made by subsection (a) shall only apply to 
travel and transportation expenses incurred after September 30, 
1980. 
37 use 406. 
EXPENSES FOR TRANSPORTATION OF HOUSE TRAILERS AND MOBILE 
HOMES 
SEC. 808. (a)(1) Section 409 of title 37, United States Code, is 
amended to read as follows: 
*'§409. Travel and transportation allowances: house trailers and 
mobile homes 
"(a)(1) A member, or in the case of a member's death, the member's 
dependent, who would otherwise be entitled to transportation of 
baggage and household effects under section 406 of this title, may be 
provided transiwrtation of a house trailer or mobile home dwelling 
within the continental United States, within Alaska, or between the 
continental United States and Alaska (or reimbursement for such 
transportation), if the house trailer or mobile home dwelling is 
intended for use as a residence by such member or dependent. Such 
transportation may be limited to such modes and maximum costs as 
may be prescribed oy regulations under subsection (d) of this section. 
"(2) Except as provided in subsection (c) of this section, transporta-
tion of 
a house trailer or mobile home dwelling under paragrapn (1) of 
this subsection is in place of the transportation of baggage and 
household effects the member or member s dependent would other-
wise be entitled to have provided. 
"(3) Tlie cost of transportation of a house trailer or mobile home 
dwelling under paragraph (1) of 
this subsection may not be more than 
the total cost of transportation (including packing, pick-up, line-haul 
or drayage, delivery, and unpacking) of baggage and household 
effects of the member or dependent having the maximum weight 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1097 
authorized for the member or dependent under regulations pre-
scribed by the Secretary concerned. 
"(4) A house trailer or mobile home dwelling in transit under this 
section may be stored up to 180 days in accordance with regulations 
prescribed by the Secretary concerned. 
"(h) Any payment authorized by this section may be made in 
advance of the transportation concerned. 
"(c) A member or member's dependent who is entitled to the 
transportation of baggage and household effects from a place inside 
the continental United States or Alaska to a place outside the 
continental United States or Alaska, or from a place outside the 
continental United States or Alaska to a place inside the continental 
United States or Alaska, may be provided the transportation of a 
house trailer or mobile home dwelling under this section, but the 
total cost to the Government of the transportation of baggage and 
household effects and the transport of a house trailer or mobile home 
dwelling may not exceed the cost of transporting baggage and 
household effects of the member or dependent having the maximum 
weight authorized for the member or dependent under regulations 
prescribed by the Secretary concerned. 
"(d) The Secretaries concerned shall prescribe regulations to carry Regulations 
out this section. 
"(e) In this section, 'continental United States' means the 48 
contiguous States and the District of Columbia.". 
(2) The item relating to section 409 in the table of sections at the 
beginning of chapter 7 of such title is amended to read as follows: 
"409. Travel and transportation allowances: house trailers and mobile homes.". 
(b) The amendments made by subsection (a) shall only apply to Sf^ffqp ^
j
f
q
^
*
^
® 
transportation of house trailers and mobile home dwellings which is 
^°^' 
completed after September 30,1980. 
"Continental 
United States." 
FAMILY SEPARATION ALLOWANCE FOR JUNIOR ENUSTED MEMBERS 
SEC. 809. (a) Section 427(b) of title 37, United States Code, relating 
to family separation allowance, is amended by striking out "(other 
than a member in pay grade E-1, E-2, E-3, or E-4 (4 years' or less 
service))". 
(b) The amendment made by subsection (a) shall take effect with Wj?ai^^AO'^^^: 
respect to months after September 1980. 
37 u s e 427 note. 
IMPROVEMENT IN CERTAIN BENEFITS UNDER THE CHAMPUS PROGRAM 
SEC. 810. (a) Subsection (a) of section 1079 of title 10, United States 
Code, relating to contracts for medical care for dependents of mem-
bers on active duty, is amended— 
(1) by inserting "of dependents over two years of age" in clause 
(2) after "immunizations"; and 
(2) by striking out "routine care of the newborn, well-baby care, 
and" in clause (3). 
O
b
) Subsection (e)(2) of such section is amended by striking but 
"$350" and inserting in lieu thereof "$1,000". 
(c) The amendments made by this section shall apply to medical Effective date. 
care provided after September 30,1980. 
]^^^^ ^^'^^ 
94 STAT. 1098 
PUBLIC LAW 96-342—SEPT. 8, 1980 
10 u s e 2101 et 
seq. 
10 u s e 4331 et 
seq., 6951 et seq., 
9331 et seq. 
Restriction. 
Repeal. 
SUBSISTENCE ALLOWANCES FOR MEMBERS OF MARINE CORPS OFFICER 
CANDIDATE PROGRAMS 
SEC 811. (a) Section 209 of title 37, United States Code, relating to 
members of precommissioning programs, is amended by adding at the 
end thereof the following new subsection: 
"(d)(1) Except when serving on active duty, a member who is 
enrolled in a Marine Corps officer candidate program which requires 
a baccalaureate degree as a prerequisite to being commissioned as an 
officer and who is not enrolled in a program established under 
chapter 103 of title 10 or an academy established under chapter 403, 
603, or 903 of title 10 may be paid a subsistence allowance at the same 
rate as that prescribed by subsection (a) of this section for a member 
of the Senior Reserve Officers' Training Corps who is selected for 
advanced training under section 2104 of title 10. 
"(2) No subsistence allowance may be paid under paragraph (1) of 
this subsection for any period after September 30,1982.". 
OD) The Act entitled "An Act to provide subsistence allowances for 
members of the Marine Corps officer candidate programs", approved 
November 24,1971 (37 U.S.C. 209 note), is repealed. 
10 u s e 1401a 
note. 
Executive order. 
Restriction. 
5 u s e 8331. 
Effective date. 
CONTINGENT ONCE-A-YEAR ADJUSTMENT OF RETIRED AND RETAINER 
PAY 
SEC 812. (a)(1) The increase in the retired and retainer pay of 
members and former members of the uniformed services which but 
for this section would be made effective September 1,1980, under the 
provisions of paragraph (2)(B) of section 1401a(b) of title 10, United 
States Code, shall not be made. 
(2)(A) In making the determination required by the provisions of 
paragraph (1)(A) of section 1401a(b) of title 10, United States Code, to 
be made on January 1, 1981, or within a reasonable time thereafter, 
the Secretary of Defense shall determine the percent change in the 
index (as such term is defined in section 1401a(a) of title 10, United 
States Code) published for December 1980 over the index published 
for December 1979 (rather than over the index published for June 
1980). 
(B) The increase in the retired and retainer pay of members and 
former members of the uniformed services to be made effective 
March 1, 1981, under the provisions of paragraph (2)(A) of such 
section shall, in lieu of the increase prescribed by such paragraph, be 
the percent change computed under subparagraph (A), adjusted to 
the nearest Vio of one percent. 
(3) The President shall by Executive order provide for only one cost-
of-living adjustment in the annuities paid under the Central Intelli-
gence Agency Act of 1964 for Certain Employees (50 U.S.C. 403 note) 
during the period beginning on September 1, 1980, and ending on 
August 31, 1981. Such adjustment shall be effective March 1, 1981, 
and shall be made in the same manner and percentage as the 
adjustment provided for in paragraphs (1) and (2) for the retired and 
retainer pay of members and former members of the uniformed 
services. 
(4) Paragraphs (1), (2), and (3) shall not take effect unless similar 
legislation is enacted which provides for only one cost-of-living 
increase in annuities paid under subchapter III of chapter 83 of title 
5, United States Code, during the period beginning on September 1, 
1980, and ending on August 31,1981. 
(b)(1) Effective August 31,1981, but subject to paragraph (3), section 
1401a(b) of title 10, United States Code, relating to adjustment of 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1099 
5 u s e 8331. 
Restriction. 
10 u s e 1401a 
note. 
retired pay and retainer pay to reflect changes in the Consumer Price 
Index, is amended to read as follows: 
"(b) Each time that an increase is made under section 8340(b) of 
title 5 in annuities paid under subchapter III of chapter 83 of such 
title, the Secretary of Defense shall at the same time increase the 
retired and retainer pay of members and former members of the 
armed forces by the same percent as the percentage by which 
annuities are increased under such section.". 
(2) The amendment made by paragraph (1) shall not take effect 
unless legislation is enacted which provides for the adjustment of 
annuities paid under subchapter III of chapter 83 of title 5, United 
States Code, on a once-a-year basis. In the event such legislation is 
enacted, such amendment shall become effective with respect to 
adjustments in the retired pay and retainer pay of members and 
former members of the uniformed services at the same time that the 
legislation providing for such a once-a-year adjustment of annuities 
paid under subchapter III of chapter 83 of title 5, United States Code, 
becomes effective. 
(3) If legislation described in paragraph (2) is enacted to provide for 
the adjustment of 
annuities paid under subchapter III of 
chapter 83 of 
title 5, United States Code, on a once-a-year basis, the President shsdl 
exercise the authority vested in him under section 292 of the Central 
Intelligence Agency Act of 1964 for Certain Employees (50 U.S.C. 403 
note) to provide for cost-of-living adjustments in the annuities paid 
under such Act on an identical basis. 
(4) If at the time the first adjustment in retired and retainer pay is 
made under section 1401aOt)) of title 10, United States Code, as 
amended by paragraph (1) of this subsection, the period upon which 
the most recent adjustment in such retired and retainer pay was 
computed is not identical to the period upon which the most recent 
adjustment in annuities under subchapter III of chapter 83 of title 5, 
United States Code, was computed, then the percentage increase to 
be made under such section 1401a(b) at the time of the first such 
adjustment shall be computed in the same manner as the percentage 
increase made at the same time in annuities under subchapter III of 
chapter 83 of title 5, United States Code, is computed, but shall be 
based on the period beginning on the last day of the period upon 
which the most recent adjustment in such retired and retainer pay 
was computed and ending on the last day of the period upon wWch 
the adjustment being made at the same time in annuities under such 
subchapter HI is computed. The President shall by Executive order Executive order. 
provide for a similar computation of 
the adjustment in annuities paid 
under the Central Intelligence Agency Act of 1964 for Certain 
Employees (50 US.C. 403 note) which is made at the same time as the 
increase in retired and retainer pay to which the preceeding sentence 
is applicable. 
(c) For the purposes of this section, the term "uniformed services" 
means— 
(1) the Armed Forces; and 
(2) the commissioned corps of 
the National Oceanic and Atmos-
pheric Administration and of 
the Public Health Service. 
"Uniformed 
services." 
94 STAT. 1100 
PUBLIC LAW 96-342—SEPT. 8, 1980 
CHANGE IN METHOD OF COMPUTATION OP RETIRED PAY FOR PERSONS 
BECOMING MEMBERS OF THE UNIFORMED SERVICES AFTER THE EN-
ACTMENT OF THIS ACT 
SEC. 813. (a)(1) Chapter 71 of 
title 10, United States Code, relating to 
computation of retired pay, is amended by adding at the end thereof 
the following new section: 
10 use 1407 
«§ 1407. Retired pay base 
"(a)(1) The retired pay or retainer pay of any person who first 
became a member of a uniformed service on or after the date of the 
Ante, p. 1077. 
enactment of the Department of Defense Authorization Act, 1981, is 
determined using the monthly retired pay base or monthly retainer 
pay base computed under this section. In making any computation 
under this section, the rates of basic pay to be used are those most 
favorable to the member. 
"Uniformed 
"(2) In this section, 'uniformed service' means— 
service." 
"(A) any of the armed forces; 
"(B) the commissioned corps of the Public Health Service; or 
"(C) the commissioned corps of the National Oceanic and 
Atmospheric Administration. 
"(b)(1) In the case of a member who is retired under section 1201 or 
10 use 1201, 
1202 of this title, the monthly retired pay base is— 
1202. 
"(A) one thirty-sixth of the total amount of monthly basic pay 
which the member received for any 36 months (whether or not 
consecutive) of active duty as a member of a uniformed service; or 
"(B) in the case of a member who served on active duty for less 
than 36 months, the amount equal to the total amount of basic 
pay which the member received during the period he served on 
active duty as a member of a uniformed service divided by the 
number of months (including any fraction thereof) which he 
served on active duty. 
"(2) In the case of a member who is retired under section 1204 or 
10 use 1204, 
1205 of this title, the monthly retired pay base is— 
1205 
"(A) one thirty-sixth of the total amount of monthly basic pay 
which the member would have received if he had served on active 
duty as a member of a uniformed service during any 36 months 
(whether or not consecutive) during the period he was a member 
of a uniformed service preceding the date on which he became 
entitled to retired pay; or 
"(B) in the case of a member who was a member for less than 36 
months, the amount equal to the total amount of basic pay which 
he would have received if he had served on active duty during the 
period he was a member of a uniformed service divided by the 
number of months (including any fraction thereoO he was such a 
member. 
"(3) In the case of a member who is retired under section 1331 of 
10 use 1331. 
this title, the monthly retired pay base is one thirty-sixth of the total 
amount of monthly basic pay to which the member would have been 
entitled during any 36 months (whether or not consecutive) during 
the period he was a member of a uniformed service had he served on 
active duty during such months. 
"(4) In the case of a member who is retired under section 564,1263, 
10 use 564, 
1293, or 1305 of this title, the monthly retired pay base is one thirty-
1263,1293,1305. gjxth of the total amount of monthly basic pay which the member 
received for any 36 months (whether or not consecutive) of active 
duty as a member of a uniformed service. 
"(5) In the case of a member whose retired or retainer pay is 
Post, p. 1102. 
recomputed under section 1402a(d) of this title, the monthly retired 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1101 
pay base is one thirty-sixth of the total amount of monthly basic pay 
which the member received for any 36 months (whether or not 
consecutive) of active duty as a member of a uniformed service. 
"(c)(1) In the case of a member whose retired pay is computed under 
section 3991 of this title (other than a member who is retired lo use 3991. 
under section 3914 of this title) or who is entitled to retired pay under lo use 3914. 
section 3992 of this title, the monthly retired pay base is one thirty- ^^ use 3992. 
sixth of the total amount of monthly b^ic pay which the member 
received for any 36 months (whether or not consecutive) of active 
duty as a member of a uniformed service. 
"(2) In the case of a member who is retired under section 3914 of 
this title, the monthly retired pay base is one thirty-sixth of the total ^^ use 3914. 
amount of monthly basic pay which the member received for any 36 
months (whether or not consecutive) of active duty as an enlisted 
member. 
"(d)(1) In the case of 
a member whose retired pay is computed under 
section 6322, 6323, 6325, 6326, 6381, 6383, 6390, 6394, 6396, 6398, or 
6400 of this title or who is advanced on the retired list under section lo use 6322, 
6151 of this title, the monthly retired pay base is one thirty-sixth of ^||^' ^|^|' ^^^^' 
the total amount of monthly basic pay which the member received for 6
3
9
4
^ gggei 6398! 
any 36 months (whether or not consecutive) of active duty as a 640o! 
member of 
a uniformed service. 
1
0 use 6i5i. 
"(2) In the case of a member transferred to the Fleet Reserve or 
Fleet Marine Corps Reserve under section 6330 of this title, the 1
0 use 6330. 
monthly retainer pay base is one thirty-sixth of the total amount of 
monthly basic pay which the member received for any 36 months 
(whether or not consecutive) of active duty as an enlisted member. 
"(e)(1) In the case of 
a member whose retired pay is computed under 
section 8991 of this title (other than a member who is retired 1
0 use 8991. 
under section 8914 of this title) or who is entitled to retired pay under 1
0 use 8914. 
section 8992 of this title, the monthly retired pay base is one thirty- 1
0 use 8992. 
sixth of the total amount of monthly basic pay which the member 
received for any 36 months (whether or not consecutive) of active 
duty as a member of 
a uniformed service. 
"(2) In the case of a member who is retired under section 8914 of 
this title, the monthly retired pay base is one thirty-sixth of the total 1
0 use 8914. 
amount of monthly basic pay which the member received for any 36 
months (whether or not consecutive) of active duty as an enlisted 
member. 
"(f) In the case of a member who is retired under any section of title 
14, the monthly retired pay base is one thirty-sixth of the total i4 use 1. 
amount of monthly basic pay which the member received for any 36 
months (whether or not consecutive) of active duty as a member of a 
uniformed service. 
"(g) In the case of a member whose retired pay is computed under 
section 16 of the Coast and Geodetic Survey Commissioned Officers' 
Act of 1948 (33 U.S.C. 853o), the monthly retired pay base is one 
thirty-sixth of the total amount of monthly basic pay which the 
member received for any 36 months (whether or not consecutive) of 
active duty as a member of 
a uniformed service. 
"(h) In the case of a member who is retired under section 210(g) or 
211(a) of the Public Health Service Act (42 U.S.C. 211(g) and 212(a)), 
the monthly retired pay base is one thirty-sixth of the total amount of 
monthly basic pay wmch the member received for any 36 months 
(whether or not consecutive) of active duty as a member of a 
uniformed service.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"Sec. 1407. Retired pay base.". 
94 STAT. 1102 
PUBLIC LAW 96-342—SEPT. 8, 1980 
fbXD The table contained in section 1401 of title 10, United States 
Code, is amended by striking out "Take" in the heading in column 1 
and inserting in lieu thereof the following: "For a person who first 
became a member of a uniformed service (as defined in section 
Ante, p. 1100. 
1407(a)(2) of this title) on or after the date of the enactment of the 
Ante, p. 1077. 
Department of Defense Authorization Act, 1981, take the monthly 
retired pay base as computed under section 1407(b). For all others, 
take". 
1
0 use 1402. 
(2) Section 1402 of such title is amended by inserting "who first 
became a member of the armed forces before the date of the 
enactment of the Department of Defense Authorization Act, 1981, 
and" in subsections (a), (b), and (c) after "of an armed force". 
(3)(A) Chapter 71 of such title is amended by inserting after section 
1402 the following new section: 
1
0 use 1402a. 
"§ 1402a. Recomputation of retired or retainer pay to reflect later 
active duty in case of members who first became 
members after the enactment of the Department of 
Defense Authorization Act, 1981 
"(a) A member of an armed force who first became a member of a 
Ante, p. 1100. 
uniformed service (as defined in section 1407(a)(2) of this title) on or 
after the date of the enactment of the Department of Defense 
Ante, p. 1077. 
Authorization Act, 1981, who has become entitled to retired pay or 
retainer pay, and who thereafter serves on active duty (other than for 
training), is entitled to recompute his retired pay or retainer pay 
upon his release from that duty as follows: 
Column 1 
Take 
Monthly retired or retain-
er pay base under sec-
tion 1407 of this title 
which he would be enti-
tled to use i
f
— 
(1) he were retiring 
upon release from that 
active duty; or 
(2) he were transfer-
ring to the Fleet Re-
serve or Fleet Marine 
Corps Reserve upon that 
release 
from 
active 
duty. 
Column 2 
Multiply by 
2y2 percent of the sum 
of-
(1) the years of service 
that may be credited to 
him in computing re-
tired pay or retainer 
pay; and 
(2) his years of active 
service after becoming 
entitled to retired pay 
or retedner pay. • 
Column 'A 
Subtract 
Excess over 75 percent of 
monthly retired or re-
tainer pay base upon 
which computation is 
based. 
' Before applying the percentage factor, credit a part of a year that is six months or more as a whole 
year, and disregard a part of a year that is less than six months. 
10 u s e 1201 et 
seq. 
"Ot)) A member of an armed force who first became a member of a 
uniformed service on or after the date of the enactment of the 
Department of Defense Authorization Act, 1981, who has been retired 
other than for physical disability and who while on active duty incurs 
a physical disability of at least 30 percent for which he would 
otherwise be eligible for retired pay under chapter 61 of this title, is 
entitled, upon his release from active duty, to retired pay under 
subsection (d). 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1103 
"(c) A member of an armed force who first became a member of a 
uniformed service on or after the date of the enactment of the 
Department of 
Defense Authorization Act, 1981, and who-
'll) was retired for physical disability under section 1201 or 
1204 of this title or any other law or whose name is on the 
temporary disabihty retired list; 
"(2) incurs, while on active duty after retirement or after his 
name was placed on the temporary disability retired list, a 
physical disability that is in addition to or that aggravates the 
physical disability for which he was retired or for which his name 
was placed on that list; and 
"(3) is qualified under section 1201,1202,1204, or 1205 of this 
title; 
is entitled, upon his release from active duty, to retired pay under 
subsection (d). 
"(d) A member of an armed force covered by subsection (b) or (c) 
may elect to receive either (1) the retired pay to which he became 
entitled when he retired, increased by any applicable adjustments in 
that pay under section 1401a of this title after he initially became 
entitled to that pay, or (2) retired pay computed as follows: 
Ante, p. 1077. 
10 u s e 1201, 
1204. 
10 u s e 1201, 
1202, 1204, 1205. 
10 u s e 1401a. 
Column 1 
Take 
The monthly 
retired pay base 
computed under 
section 1407(b) of 
this title. 
Column 2 
Multiply by 
As member 
elects— 
(1) 2y2 percent 
of years of 
service credited 
under section 
1208 of this 
title; 1 or 
(2) the highest 
percentage of 
disability 
attained while 
on active duty 
after retirement 
or after the date 
when his name 
was placed on 
temporary 
disability retired 
list, as the case 
may be. 
Column 3 
Add 
Amount necessary 
to increase 
product of 
columns 1 and 2 
to 50 percent of 
pay upon which 
computation is 
based, if member 
is on temporary 
disability retired 
list. 
Column 4 
Subtract 
Excess over 75 
percent of 
monthly retired 
or retainer pay 
base upon which 
computation is 
based. 
• Before applying percentage factor, credit a part of a year that is six months or more as a whole year, 
and disregard a part of a year that is less than six months. 
"(e) Notwithstanding subsection (a), a member covered by that 
subsection may elect, upon his release from that active duty, to have 
his retired pay or retainer pay— 
"(1) computed according to the formula set forth in subsection 
(a) but using the monthly retired pay base under which his 
retired pay or retainer pay was computed when he entered on 
that active duty; and 
"(2) increased by any applicable adjustments in that pay under 
section 1401a of this title after he initially became entitled to 
that pay.". 
79-194 
O—81—pt. 1 
73 : QL3 
94 STAT. 1104 
PUBLIC LAW 96-342—SEPT. 8, 1980 
(B) The table of sections at the beginning of such chapter is 
10 use 1402. 
amended by inserting after the item relating to section 1402 the 
following new item: 
"Sec. 1402a. Recomputation of retired or retainer pay to reflect later active duty in 
case of members who first became members after the enactment of the 
Department of Defense Authorization Act, 1981.". 
10 use 1373, 
(C) Sections 1373 and 1403 of such title are amended by inserting 
1403. 
WQJ. i402a(d)" after "1402(d)". 
(D) The second sentence of section 205(a) of title 37, United States 
Code, is amended by inserting "and section 1402a(a)-(d)" after 
"1402(a)-(d)". 
(c) The tables contained in sections 3991 and 3992 of title 10, United 
States Code, are amended by striking out "Take" in the heading in 
column 1 and inserting in lieu thereof the following: "For a person 
who first became a member of uniformed service (as defined in 
Ante, p. 1100. 
section 1407(a)(2) of this title) on or after the date of the enactment of 
Ante, p. 1077. 
the Department of Defense Authorization Act, 1981, take the 
monthly retired pay base as computed under section 1407(c). For all 
others, take". 
(d)(1) Subsection (c) of section 6322 of title 10, United States Code, is 
amended to read as follows: 
"(c) Each officer who is retired under this section is entitled to 
retired pay— 
' (1) in the case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) 
before the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 75 percent of the highest 
basic pay of the grade in which retired; or 
"(2) in the case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) on 
or after the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 75 percent of the monthly 
retired pay base computed under section 1407(d) of this title.". 
10 use 6323. 
(2) Subsection (e) of section 6323 of such title is amended to read as 
follows: 
"(e) Unless otherwise entitled to higher pay, an officer retired 
under this section is entitled to retired pay— 
"(1) in the case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) 
before the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2V2 percent of the basic 
pav of the grade in which retired; or 
'(2) in the case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) on 
or after the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2y2 percent of the monthly 
retired pay base computed under section 1407(d) of this title; 
multiplied by the number of years of service that may be credited to 
10 use 1405. 
him under section 1405 of this title, but the retired pay so computed 
may not be more than 75 percent of the basic pay or monthly retired 
pay base upon which the computation of retired pay is based.". 
10 use 6325. 
(3)(A) Subsection (a)(2) of section 6325 of such title is amended to 
read as follows: 
"(2) unless otherwise entitled to higher pay, is entitled to 
retired pay— 
(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1105 
Defense Authorization Act, 1981, at the rate of 2y2 percent of 
the basic pay of the grade in which he retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this Ante, p. iioo. 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2y2 ^«^e, p. i077. 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of 
years of service that may be credited 
to him under section 1405 of this title, but the retired pay so lo use 1405. 
computed may not be more than 75 percent of the basic pay or 
monthly retired pay base upon which the computation of retired 
pay is based.". 
(B) Subsection Ot))(2) of such section is amended to read as follows: 
"(2) unless otherwise entitled to higher pay, is entitled to 
retired pay— 
"(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 2y2 percent of 
the basic pay of the grade he would hold if he had not 
received such an appointment; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2y2 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of years of service that may be credited 
to him under section 1405 of this title, but the retired pay so 
computed may not be more than 75 percent of the basic pay or 
monthly retired pay base upon which the computation of retired 
pay is based.". 
(4) Clause (2) of section 6326(c) of such title is amended to read as lo use 6326. 
follows: 
"(2) unless otherwise entitled to higher pay, is entitled to 
retired pay— 
"(A) in the case of a person who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 75 percent of 
the basic pay of the pay grade in which he was serving on the 
day before retirement or, if he has served as senior enlisted 
advisor of the Navy or as sergeant major of the Marine 
Corps, 75 percent of the highest basic pay to which he was 
entitled while so serving, if that rate is higher; or 
"(B) in the case of a person who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, computed by 
multiplying the monthly retired pay base computed under 
section 1407(d) of this title by 75 percent.". 
(5) Subsection (c) of section 6330 of such title is amended to read as lo use 633o. 
follows: 
"(c)(1) Each member who is transferred to the Fleet Reserve or the 
Fleet Marine Corps Reserve under this section is entitled, when not 
on active duty, to retainer pay— 
94 STAT. 1106 
PUBLIC LAW 96-342—SEPT. 8, 1980 
Ante, p. 1100. 
Ante, p. 1077. 
10 use 1402, 
ante, p. 1102. 
Extraordinary 
heroism. 
10 use 6381. 
10 use 1405. 
10 use 6383. 
"(A) in the case of a member who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) 
before the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2y2 percent of the basic 
pay that he received at the time of transfer or, in the case of a 
member who has served as senior enlisted advisor of the Navy or 
sergeant major of the Marine Corps, of the highest basic pay to 
which he was entitled while so serving, if that basic pay is higher 
than the basic pay received at the time of transfer; or 
"(B) in the case of a member who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) on 
or after the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2y2 percent of the monthly 
retainer pay base computed under section 1407(d) of this title; 
multiplied by the number of years of active service in the armed 
forces. 
"(2) A member may recompute his retainer pay under section 1402 
or 1402a of this title, as appropriate, to reflect active duty after 
transfer. 
"(3) If the member has been credited by the Secretary of the Navy 
with extraordinary heroism in the line of duty, which determination 
by the Secretary is final and conclusive for all purposes, his retainer 
pay shall be increased by 10 percent. 
(4) In no case may a member's retainer pay be more than 75 
percent of the basic pay or monthly retainer pay base upon which the 
computation of retainer pay is based.". 
(6)(A) Subsection (a)(2) of section 6381 of such title is amended to 
read as follows: 
"(2) is entitled to retired pay— 
"(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 2 ¥2 percent of 
the basic pay of the grade in which she retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2y2 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of years of service that may be credited 
to him under section 1405 of this title, but the retired pay may 
not be more than 75 percent of the basic pay or monthly retired 
pay b£ise upon which the computation of retired pay is based.". 
(B) Subsections Ot)) and (c) of such section are amended by inserting 
"or monthly retired pay base, as the case may be," after "basic pay". 
(7) Section 6383(c)(2) of such title is amended to read as follows: 
"(2) is entitled to retired pay— 
"(A) in the C£ise of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 2y2 percent of 
the basic pay to which he would be entitled if serving on 
active duty in the grade in which he retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2y2 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1107 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
^^te, p. iioo. 
multiplied by the number of years of service that may be credited 
to him under section 1405 of this title, but the retired pay may l
O use 1405. 
not be more than 75 percent of the basic pay or monthly retired 
pay base upon which the computation of retired pay is based.". 
(8) Section 6390(b)(2) of such title is amended to read as follows: l
O use 6390. 
"(2) to retired pay— 
"(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 2y2 percent of 
the basic pay of the grade in which he retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 21/2 ^"^^' P 1077. 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of years of service that may be credited 
to him under section 1405 of this title, but the retired pay may 
not be more than 75 percent of the basic pay or monthly retired 
pay base upon which the computation of retired pay is based.". 
(9) Subsection (h) of section 6394 of such title is amended to read as 1
0 use 6394. 
follows: 
"(h) Unless otherwise entitled to higher pay, an officer retired 
under this section is entitled to retired pay— 
"(1) in the case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) 
before the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2V2 percent of the basic 
pav of the grade in which he retired; or 
'(2) in the case of a officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) on 
or after the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2^/2 percent of the monthly 
retired pay base computed under section 1407(d) of this title; 
multiplied by the number of years of service that may be credited to 
him under section 1405 of this title, but the retired pay may not be 
more than 75 percent of the basic pay or monthly retired pay base 
upon which the computation of retired pay is based.". 
(10) Clause (2) of section 6396(b) of such title is amended to read as 1
0 use 6396. 
follows: 
"(2) with retired pay— 
"(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 2y2 percent of 
the basic pay of the grade in which she retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2y2 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of years of service that may be credited 
to her under section 1405 of this title, but the retired pay may not 
be more than 75 percent of the basic pay or monthly retired pay 
94 STAT. 1108 
PUBLIC LAW 96-342—SEPT. 8, 1980 
base upon which the computation of retired pay is based and, in 
the case of retired pay computed under clause (A), may not be 
less than 50 percent of the basic pay upon which the computation 
of retired pay is based.". 
10 use 6398. 
m ) Clause (2) of section 6398(c)(2) of such title is amended to read as 
follows: 
"(2) is entitled to retired pay— 
"(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
Ante, p. 1100. 
title) before the date of the enactment of the Department of 
Ante, p. 1077. 
Defense Authorization Act, 1981, at the rate of 2 V
2 percent of 
the basic pay of the grade in which she retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2 V
2 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of years of service that may be credited 
10 use 1405. 
to her under section 1405 of this title, but the retired pay may not 
be more than 75 percent of the basic pay or monthly retired pay 
base upon which the computation of retired pay is based and, in 
the case of retired pay computed under clause (A), may not be 
less than 50 percent of the basic pay upon which the computation 
of retired pay is based.". 
10 use 6400. 
(12) Clause (2) of section 6400(b) of such title is amended to read as 
follows: 
"(2) is entitled to retifed pay— 
"(A) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) before the date of the enactment of the Department of 
Defense Authorization Act, 1981, at the rate of 2y2 percent of 
the basic pay of the grade in which she retired; or 
"(B) in the case of an officer who first became a member of 
a uniformed service (as defined in section 1407(a)(2) of this 
title) on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, at the rate of 2y2 
percent of the monthly retired pay base computed under 
section 1407(d) of this title; 
multiplied by the number of years of service that may be credited 
to her under section 1405 of this title, but the retired pay may not 
be more than 75 percent of the basic pay or monthly retired pay 
base upon which the computation of retired pay is based.'. 
10 use 6151. 
(13) Subsections (b) and (c) of section 6151 of such title are amended 
to read as follows: 
"Ot>)(l) 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— 
"(A) in the case of a member who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) 
before the date of the enactment of the Department of Defense 
Authorization Act, 1981, at the rate of 2V2 percent of the basic 
pay of the grade to which advanced; or 
"(B) in the case of a member who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of this title) on 
or after the date of the enactment of the Department of Defense 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1109 
Authorization Act, 1981, at the rate of IVz percent of the 
monthly retired pay base computed under section 1407(d) of this 
title; 
multiplied by the number of years of service that may be credited to 
him under section 1405 of this title, but the retired pay may not be 
more than 75 percent of the basic pay or monthly retired pay base 
upon which the computation of retired pay is based. 
"(2) In determining the number of years to be used as a multiplier 
under this subsection, a part of a year that is six months or more is 
counted as a whole year and a part of a year that is less than six 
months is disregarded. 
"(c)(1) Each former member of the Fleet Reserve or the Fleet 
Marine Corps Reserve who first became a member of a uniformed 
service (as defined in section 1407(a)(2) of this title) before the date of 
the enactment of the Department of Defense Authorization Act, 1981, 
who is advanced on the retired list under this section is entitled to 
retired pay based upon the grade to which advanced. Such retired pay 
shall be at the rate of 2 ¥2 percent of the basic pay of the grade to 
which advanced, determined by the same period of service used to 
determine the basic pay of the grade upon which his retainer pay is 
based, multiplied by the number of years of service creditable for his 
retainer pay at the time of retirement, but the retired pay may not be 
more than 75 percent of the basic pay upon which the computation of 
retired pay is based. 
"(2) Each former member of the Fleet Reserve or the Fleet Marine 
Corps Reserve who first became a member of a uniformed service (as 
defined in section 1407(a)(2) of this title) on or after the date of the 
enactment of the Department of Defense Authorization Act, 1981, 
who is advanced on the retired list under this section is entitled to 
retired pay at the rate of 2 ¥2 percent of the monthly retired pay base 
computed under section 1407(d) of this title, multiplied by the number 
of years of service creditable for his retainer pay at the time of 
retirement, but the retired pay may not be more than 75 percent of 
the monthly retired pay base upon which the computation of retired 
pay is based.". 
(e) The tables contained in sections 8991 and 8992 of title 10, United 
States Code, are amended by striking out "Take" in the heading in 
column 1 and inserting in lieu thereof the following: "For a person 
who first became a member of a uniformed service (as defined in 
section 1407(a)(2) of this title) on or after the date of the enactment of 
the Department of Defense Authorization Act, 1981, take the 
monthly retired pay base as computed under section 1407(e). For all 
others, take". 
(f)(1) Subsection O
b
) of section 288 of title 14, United States Code, is 
amended to read as follows: 
"(b) Except as provided in section 4230t)) of this title, the retired pay 
of an officer retired under this section shall not be less than 50 
percent of the basic pay upon which the computation of his retired 
pay is based.". 
(2) Section 423 of such title is amended— 
(A) by striking out "The" at the beginning of such section and 
inserting in lieu thereof "(a) Except as provided in subsection (b), 
the"; and 
(B) by adding at the end thereof the following new subsection: 
"Ot>) Notwithstanding any other provision of this title, the retired 
pay of each officer or enlisted member of the Coast Guard who first 
became a member of a uniformed service (as defined in section 
1407(a)(2) of title 10) on or after the date of the enactment of the 
Department of Defense Authorization Act, 1981, is computed at the 
Ante, p. 1100. 
10 u s e 1405. 
Former Fleet 
Reserve or Fleet 
Marine Corps 
Reserve 
members. 
Ante, p. 1077. 
Infra. 
14 u s e 423. 
eoast Guard 
officers or 
enlisted men. 
94 STAT. 1110 
PUBLIC LAW 96-342—SEPT. 8, 1980 
Ante, p. 1100. 
10 u s e 1405. 
Commissioned 
officers, retired 
pay 
computation. 
Ante, p. 1077. 
Commissioned 
officers, retired 
pay 
computation. 
rate of 2y2 percent of the monthly retired pay base (computed under 
section 1407(f) of title 10) multiplied by the number of years of service 
that may be credited to him under section 1405 of title 10, but the 
retired pay so computed may not be more than 75 percent of such 
monthly retired pay base.". 
(g) Section 16 of the Coast and Geodetic Survey Commissioned 
Officers' Act of 1948 (33 U.S.C. 853o) is amended to read as follows: 
"SEC. 16. (a) Each commissioned officer on the retired list shall 
receive retired pay— 
"(1) in tne case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of title 10, 
United States Code) before the date of the enactment of the 
Department of Defense Authorization Act, 1981, at the rate of 
2y2 percent of the basic pay of the rank with which retired; or 
"(2) in the case of an officer who first became a member of a 
uniformed service (as defined in section 1407(a)(2) of title 10, 
United States Code) on or after the date of the enactment of the 
Department of Defense Authorization Act, 1981, at the rate of 
2y2 percent of the monthly retired pay base computed under 
section 1407(g) of title 10, United States Code; 
multiplied by the number of years of service that may be credited to 
him under section 1405 of title 10, United States Code, as if his service 
were service as a member of the Armed Forces, but the retired pay so 
computed may not exceed 75 percent of the basic pay of the rank with 
which retired or 75 percent of the monthly retired pay base, as the 
case may be. 
"(b) A fractional part of a year of six months or more shall be 
considered a full year in computing the number of years of service for 
the purposes of subsection (a).". 
(h)(1) Paragraph (3) of section 210(g) of the Public Health Service 
Act (42 U.S.C. 211(g)(3)) is amended by striking out "law)" and all that 
follows in such paragraph and inserting in lieu thereof "law)— 
"(A) in the case of an officer who first became a member of a 
uniformed service before the date of the enactment of the 
Department of Defense Authorization Act, 1981, at the rate of 
2y2 per centum of basic pay of the permanent grade held by him 
at the time of retirement for each year, not in excess of thirty, 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 the date of the enactment of the 
Department of Defense Authorization Act, 1981, 2y2 per centum 
of the monthly retired pay base computed under section 1407(h) 
of title 10, United States Code, for each year, not in excess of 
thirty, of his active commissioned service in the Service.". 
(2) Section 211(a) of such Act (42 U.S.C. 212(a)) is amended— 
(A) by striking out "A commissioned officer" in paragraph (4) 
and inserting in lieu thereof "Except as provided in paragraph 
(6), a commissioned officer"; 
(B) by striking out "and his" in paragraph (5) and inserting in 
lieu thereof "and except as provided in paragraph (6), his"; and 
(C) by adding at the end thereof the following new paragraph: 
"(6) In computing retired pay under paragraph (4) or (5) in the case 
of any commissioned officer who first became a member of a uni-
formed service on or after the date of the enactment of the Depart-
ment of Defense Authorization Act, 1981, the monthly retired pay 
base computed under section 1407(h) of title 10, United States Code, 
shall be used in lieu of using the basic pay of the highest grade held by 
him as such officer.". 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT, n i l 
TITLE IX—ARMED FORCES EDUCATIONAL ASSISTANCE 
PROGRAMS 
Costs. 
DEPARTMENT OF DEFENSE EDUCATIONAL ASSISTANCE PROGRAM FOR 
PERSONS ENLISTING OR REENLISTING FOR SERVICE ON ACTIVE DUTY 
SEC. 901. (a) Subtitle A of title 10, United States Code, is amended 
by inserting after chapter 106 the following new chapter: 
"CHAPTER 107—EDUCATIONAL ASSISTANCE FOR PERSONS 
ENLISTING FOR ACTIVE DUTY 
"Sec. 
"2141. Educational assistance program: establishment. 
"2142. Educational assistance program: eligibility. 
"2143. Educational assistance: amount. 
"2144. Subsistence allowance. 
"2145. Adjustments of amount of educational assistance and of subsistence allow-
ance. 
"2146. Right of member upon subsequent reenlistment to lump-sum payment in lieu 
of educational assistance. 
"2147. Right of member after reenlisting to transfer entitlement to spouse or 
dependent children. 
"2148. Duration of entitlement. 
"2149. Applications for educational assistance. 
"§2141. Educational assistance program: establishment 
lo use 2i4i. 
"(a) To encourage enlistments and reenlistments for service on 
active duty in the armed forces, the Secretary of each military 
department may establish a program in accordance with this chapter 
to provide educational assistance to persons enlisting or reenlisting 
in an armed force under his jurisdiction. The costs of any such 
program shall be borne by the Department of Defense, and a person 
participating in any such program may not be required to make any 
contribution to the program. 
"(b) The Secretary of Defense shall prescribe regulations for the Regulations. 
administration of this chapter. Such regulations shall take account of 
the differences among the several armed forces. 
"(c) In this chapter, 'enlistment' means original enlistment or "Enlistment. 
reenlistment. 
"§2142. Educational assistance program: eligibility 
"(a)(1) A program of educational assistance established under this 
chapter shall provide that any person enlisting or reenlisting in an 
armed force under the jurisdiction of the Secretary of the military 
department concerned who meets the eligibility requirements estab-
lished by the Secretary in accordance with subsection (b) shall, 
subject to paragraph (3), become entitled to educational assistance 
under section 2143 of this title at the time of such enlistment. 
"(2) The period of educational assistance to which such a person 
becomes entitled is one standard academic year (or the equivalent) for 
each year of the enlistment of such person, up to a maximum of four 
years. However, if the person is discharged or otherwise released 
from active duty after completing two years of the term of such 
enlistment but before completing the full term of such enlistment (or 
before completing four years of such term, in the case of an enlist-
ment of more than four years), then the period of educational 
assistance to which the person is entitled is one standard academic 
year (or the equivalent) for each year of active service of such person 
during such term. For the purposes of the preceding sentence, a 
10 use 2142. 
94 STAT. 1112 
PUBLIC LAW 96-342—SEPT. 8, 1980 
portion of a year of active service shall be rounded to the nearest 
month and shall be prorated to a standard academic year. 
"(3)(A) A member who is discharged or otherwise released from 
active duty before completing two years of active service of an 
enlistment which is the basis for entitlement to educational assist-
ance under this chapter or who is discharged or otherwise released 
from active duty under other than honorable conditions is not 
entitled to educational assistance under this chapter. 
"(B) Entitlement to educational assistance under this chapter may 
not be used until a member has completed two years of active service 
of the enlistment which is the basis for entitlement to such educa-
tional assistance. 
"(b) In establishing requirements for eligibility for an educational 
assistance program under this chapter, the Secretary concerned shall 
limit eligibility to persons who— 
"(1) enlist or reenlist for service on active duty as a member of 
the Army, Navy, Air Force, or Marine Corps after September 30, 
1980, and before October 1,1981; 
"(2) are graduates from a secondary school; and 
"(3) meet such other requirements as the Secretary may 
consider appropriate for the purposes of this chapter and the 
needs of the armed forces. 
10 use 2143 
"§ 2143. Educational assistance: amount 
"(a) Subject to subsection (b), an educational assistance program 
established under section 2141 of this title shall provide for payment 
by the Secretary concerned of educational expenses incurred for 
instruction at an accredited institution by a person entitled to such 
assistance under this chapter. Expenses for which payment may be 
made under this section include tuition, fees, books, laboratory fees, 
and shop fees for consumable materials used as part of classroom or 
laboratory instruction. Payments under this section shall be limited 
to those educational expenses normally incurred by students at the 
institution involved. 
"(b)(1) The Secretary concerned shall establish the amount of 
educational assistance for a standard academic year (or the equiva-
lent) to which a person becomes entitled under this chapter at the 
time of an enlistment described in section 2142 of this title. Depend-
ing on the needs of the service, different amounts may be established 
for different categories of persons or enlistments. The amount of 
educational assistance to which any person is entitled shall be 
adjusted in accordance with section 2145 of this title. 
'(2) The amount of educational assistance which may be provided 
to any person for a standard academic year (or the equivalent) may 
not exceed $1,200, adjusted in accordance with section 2145 of this 
title. 
"Accredited 
"(c) In this section, 'accredited institution' means a civilian college 
institution." 
Qj. university or a trade, technical, or vocational school in the United 
States (including the District of Columbia, the Commonwealth of 
Puerto Rico, Guam, and the Virgin Islands) that provides education 
at the postsecondary level and that is accredited by a nationally 
recognized accrediting agency or £issociation or by an accrediting 
agency or association recognized by the Secretary of Education. 
10 use 2144. 
"§ 2144. Subsistence allowance 
"(a) Subject to subsection (b), a person entitled to educational 
assistance under this chapter is entitled to receive a monthly subsist-
ence allowance during any period for which educational assistance is 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1113 
provided such person. The amount of a subsistence allowance under 
this section is $300 per month, adjusted in accordance with section 
2145 of this title, in the case of a person pursuing a course of 
instruction on a full-time basis and is one-half of such amount (as so 
adjusted) in the case of a person pursuing a course of instruction on 
less than a full-time basis. 
"(b) The number of months for which a subsistence allowance may 
be provided to any person under this section is computed on the basis 
of nine months for each standard academic year of educational 
assistance to which such person is entitled. 
"(c) For purposes of subsection (a), a person shall be considered to Full-time basis. 
be pursuing a course of instruction on a full-time basis if the person is 
enrolled in twelve or more semester hours of instruction (or the 
equivalent, as determined by the Secretary concerned). 
"§2145. Adjustments of amount of educational assistance and of lo use 2145. 
subsistence allowance 
"(a) Once each year, the Secretary of Defense shall adjust the 
amount of educational assistance which may be provided to any 
person in any standard academic year under section 2143 of this title, 
and the amount of the subsistence allowance authorized under 
section 2144 of this title for pursuit of a course of instruction on a full-
time basis, in a manner consistent with the change over the preced-
ing twelve-month period in the average actual cost of attendance at 
public institutions of higher education. 
"(b) In this section, 'actual cost of attendance' means the actual cost "Actual cost o
f 
of attendance as determined by the Secretary of Education pursuant attendance." 
to section 411(a)(2)(B)(iv) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(a)(2)(B)(iv)). 
"§2146. Right of member upon subsequent reenlistment to lump- lo use 2146. 
sum payment in lieu of educational assistance 
"(a) A member who is entitled to educational assistance under this 
chapter and who reenlists at the end of the enlistment which 
established such entitlement may, at the time of such reenlistment, 
elect to receive a lump-sum payment computed under subsection (b) 
in lieu of receiving such educational assistance. An election to receive 
such a lump-sum payment is irrevocable. 
"(b) The amount of a lump-sum payment under subsection (a) is 60 
percent of the sum o
f
— 
"(1) the product of (A) the rate for educational assistance under 
section 2143(b) of this title applicable to such member which is in 
effect at the time of such reenlistment, and (B) the number of 
standard academic years of entitlement of such member to such 
assistance; and 
"(2) the product of (A) the rate for the subsistence allowance 
authorized under section 2144 of this title for pursuit of a course 
of instruction on a full-time basis at the time of such reenlist-
ment, and (B) the number of months of entitlement of such 
member to such allowance. 
"§2147. Right of member after reenlisting to transfer entitlement lo use 2i47 
to spouse or dependent children 
"(a)(1) A person who is entitled to educational assistance under 
section 2142 of this title and who reenlisted in an armed force at any 
time atter the end of the enlistment which established such entitle-
ment may at any time after such reenlistment elect to transfer all or 
any part of such entitlement to the spouse or dependent child of such 
94 STAT. 1114 
PUBLIC LAW 96-342—SEPT. 8, 1980 
person. Any transfer under the preceding sentence may be revoked at 
any time by the person making the transfer. 
"(2) If a person described in paragraph (1) dies before making an 
election authorized by such paragraph but has never made an 
election not to transfer such entitlement, any unused entitlement of 
such person shall be automatically transferred to such person's 
surviving spouse or (if there is no eligible surviving spouse) to such 
person's dependent children. A surviving spouse to whom entitle-
ment to educational assistance is transferred under this paragraph 
may elect to transfer such entitlement to the dependent children of 
the person whose service established such entitlement. 
"(3) Any transfer of entitlement under this subsection shall be 
made in accordance with regulations prescribed by the Secretary of 
the military department concerned. 
"(b) A spouse or surviving spouse or a dependent child to whom 
entitlement is transferred under subsection (a) is entitled to educa-
tional assistance under this chapter in the same manner and at the 
same rate as the person from whom the entitlement was transferred. 
"(c) The total amount of educational assistemce available to a 
person entitled to educational assistance under section 2142 of this 
title and to the person's spouse, surviving spouse, and dependent 
children is the amount of educational assistance to which the person 
is entitled. If more than one person is being provided educational 
assistance for the same period by virtue of the entitlement of the 
same person, the subsistence allowance authorized by section 2144 of 
this title shall be divided in such manner as the person may specify or 
(if the person fails to specify) as the Secretary concerned may 
prescribe. 
Definitions. 
"(d) In this section: 
"(1) 'Dependent child' has the meaning given the term 'depend-
1
0 use 1072. 
ent' in section 1072(2)(E) of this title. 
"(2) 'Surviving spouse' means a widow or widower who is not 
remarried. 
1
0 use 2148 
«§ 2148. Duration of entitlement 
"The entitlement of any person to educational assistance under 
this chapter expires at the end of the ten-year period beginning on 
the date of the retirement or discharge or other separation from 
active duty of the person upon whose service such entitlement is 
based. In the case of a member entitled to educational assistance 
under this chapter who dies while on active duty and whose entitle-
ment is transferred to a spouse or dependent child, such entitlement 
expires at the end of the ten-year period beginning on the date of such 
member's death. 
1
0 use 2149. 
"§ 2149. Applications for educational assistance 
"To receive educational assistance benefits under this chapter, a 
person entitled to such assistance under section 2142 or 2147 of this 
title shall submit an application for such assistance to the Secretary 
concerned in such form and manner as the Secretary concerned may 
prescribe.". 
(b) The tables of chapters at the beginning of subtitle A of title 10, 
United States Code, and at the beginning of part III of such subtitle 
are amended by inserting after the item relating to chapter 106 the 
following new item: 
"107. Educational assistance for persons enlisting for active duty 
2141" 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1115 
Loan repayment 
criteria. 
AUTHORIZATION TO REPAY LOANS FOR SERVICE IN THE ARMED FORCES 
SEC. 902. (a)(1) Subject to the provisions of this section, the Secre- lo use 2i4i 
tary of Defense may repay any loan made, insured, or guaranteed "
°
*
^
® 
under part B of the Higher Education Act of 1965, or any loan made 
under part E of such Act, after October 1, 1975. Repayment of any 
such loan shall be made on the basis of each complete year of service 
performed by the borrower. 
(2) The Secretary of Defense may repay loans described in para-
graph (1) in the case of any person for— 
(A) service performed (i) as an enlisted member of the Selected 
Reserve of the Ready Reserve of an Armed Force after Septem-
ber 30, 1980, and (ii) in a Reserve component and military 
specialty specified by the Secretary of Defense; or 
(B) service performed on active duty as an enlisted member of 
the Armed Forces after September 30, 1980, in a military 
specialty specified by the Secretary of Defense. 
In the case of service described in clause (A) of the first sentence of 
this paragraph, the Secretary of Defense may repay a loan described 
in paragraph (1) only if the person to whom the loan was made 
performed such service after the loan was made. 
(b) The portion or amount of a loan that may be repaid under Percentage. 
subsection (a) is— 
(1) 15 percent or $500, whichever is greater, for each year of 
service, in the case of service described in subsection (a)(2)(A); or 
(2) 33 V
s percent or $1,500, whichever is greater, for each year of 
service, in the case of service described in subsection (a)(2)(B). 
(c) If a portion of a loan is repaid under this section for any year, 
interest on the remainder of such loan shall accrue and be paid in the 
same manner as is otherwise required. 
(d) Nothing in this section shall be construed to authorize refund-
ing any repayment of a loan. 
(e) Any individual who transfers from service described in clause 
(A) or (B) of subsection (aXD of this section to service described in the 
other clause of such subsection during a year shall be eligible to have 
repaid a portion of such loan determined by giving appropriate 
fractional credit for each portion of the year so served, in accordance 
with regulations of the Secretary concerned. 
(0 The Secretary of Defense shall, by regulation, prescribe a 
schedule for the allocation of funds made available to carry out the 
provisions of this section during any year for which funds are not 
sufficient to pay the sum of the amounts eligible for repayment under 
subsection (a). 
(g) The authority provided under this section shall apply only in the 
case of persons who enlist or reenlist in the Selected Reserve of the 
Ready Reserve of an Armed Force or enlist or reenlist for service on 
active duty after September 30, 1980, and before October 1, 1981. 
Fund allocation 
schedule. 
EDUCATIONAL ASSISTANCE PILOT PROGRAM 
SEC. 903. (a)(1) As a means of encouraging enlistments and reenlist-
ments in the Armed Forces, the Secretary of Defense, on behalf of any 
person who enlists or reenlists in the Armed Forces after September 
30,1980, and before October 1,1981, and who elects or has elected to 
participate in the Post-Vietnam Era Veterans' Educational Assist-
ance Program provided for under chapter 32 of title 38, United States 
Code, may pay the monthly contribution otherwise deducted from the 
military pay of such person. No deduction may be made under section 
10 u s e 2141 
note. 
38 u s e 1601 et 
seq. 
94 STAT. 1116 
PUBLIC LAW 96-342—SEPT. 8, 1980 
38 u s e 1601 et 
seq. 
Monthly 
payments to 
spouse or child. 
Definitions. 
1622 of title 38, United States Code, from the military pay of any 
person for any month to the extent that the contribution otherwise 
required to be made by such person under such section for such 
month is paid by the Secretary of Defense. 
(2) No payment may be made under this section on behalf of any 
person for any month before the month in which such person enlisted 
or reenlisted in the Armed Forces or for any month before October 
1980. 
(b) The amount paid by the Secretary of Defense under this section 
on behalf of any person shall be deposited to the credit of such person 
in the Post-Vietnam Era Veterans Education Account established 
under section 1622(a) of title 38, United States Code. 
(c)(1) Except as provided in paragraph (2), the provisions of chapter 
32 of title 38, United States Code, shall be applicable to payments 
made by the Secretary of Defense under this section. 
(2) Notwithstanding the provisions of section 1631(a)(4) of title 38, 
United States Code, the Secretary of Defense, in the case of any 
person who enlists or reenlists in the Armed Forces or any officer 
who is ordered to active duty with the Armed Forces after September 
30, 1980, and before October 1, 1981, or whose active duty obligation 
with the Armed Forces is extended after September 30, 1980, and 
before October 1, 1981, and who is a participant in the educational 
assistance program described in subsection (a), may make monthly 
payments out of the Post-Vietnam Era Veterans Education Account 
to the spouse or child of such person to assist such spouse or child in 
the pursuit of a program of education. Payments under this subsec-
tion may be made to the spouse or child of a person participating in 
such educational assistance program only upon the request of such 
person and only for such period of time as may be specified by such 
person. The total amount paid under this subsection in the case of 
any spouse or child may not exceed the amount credited to such 
person in the Post-Vietnam Era Veterans Education Account. 
(d)(1) The authority conferred on the Secretary of Defense under 
this section shall be used by the Secretary only for the purpose of 
encouraging persons who possess critical military specialties (as 
determined by the Secretary of Defense) to enter or to remain in the 
Armed Forces. 
(2) Except as otherwise provided in this section, the Secretary of 
Defense may offer the benefits of this section to persons eligible 
therefor for such period as the Secretary determines necessary or 
appropriate to achieve the purpose of this section. 
(f) As used in this section: 
(1) The term "program of education" shall have the same 
meaning as provided in chapter 32 of title 38, United States Code. 
(2) The term "child" shall have the same meaning as provided 
in section 101(4) of title 38, United States Code. 
(3) The term "Armed Forces" means the Army, Navy, Air 
Force, and Marine Corps. 
10 u s e 2141 
note. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 904. (a) There is hereby authorized to be appropriated to carry 
out chapter 107 of title 10, United States Code (as added by section 
901), and sections 902 and 903 a total of $75,000,000. 
(b) The Secretary of Defense shall equitably allocate the amount 
appropriated under this section among the educational assistance 
program provided for under chapter 107 of title 10, United States 
Code (as added by section 901), the repayment as authorized by 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1117 
section 902 of loans made, insured, or guaranteed under part B of the 
Higher Education Act of 1965 and of loans made under part E of such 
Act, and the educational assistance program provided for under 
section 903. 
REPORT ON EDUCATIONAL BENEFITS INCENTIVE PROGRAMS 
SEC. 905. (a) The Secretary of Defense shall submit to the Commit-
tees on Armed Services of the Senate and House of Representatives, 
within 30 days sifter the end of each quarter of fiscal year 1981, a 
report on the implementation and operation of the educational 
assistance program provided for under chapter 107 of title 10, United 
States Code (as added by section 901), and of the programs provided 
for under sections 902 and 903. 
(b) The Secretary of Defense shall also submit to such committees, 
not later than December 31,1981, a report on the extent to which the 
educational assistance program provided for under chapter 107 of 
title 10, United States Code (as added by section 901), the Post-
Vietnam Era Veterans' Educational Assistance Program provided for 
under chapter 32 of title 38, United States Code, and the program 
established under section 902 have encouraged persons to enter or 
remain in the Armed Forces. The Secretary shall include in such 
report— 
(1) an evaluation of contributory and noncontributory educa-
tional assistance programs as incentives for individuals to enter 
or remgiin in the Armed Forces; 
(2) an analysis of the costs and benefits of various educational 
assistance incentive programs designed to encourage persons to 
enter and remain in the Armed Forces; and 
(3) recommendations for such new programs or revision of 
existing programs as the Secretary determines necessary or 
appropriate to successfully encourage persons to enter and 
remain in the Armed Forces. 
Submittal to 
congressional 
committees. 
10 u s e 2141 
note. 
38 u s e 1601 et 
seq. 
Contents. 
IMPROVEMENT AND EXTENSION OF EDUCATIONAL ASSISTANCE PROGRAM 
FOR ENUSTED MEMBERS OF THE SELECTED RESERVE OF THE READY 
RESERVE 
SEC. 906. (a)(1) Section 2131(c) of title 10, United States Code, 
relating to educational assistance for enlisted members of the 
Selected Reserve of the Ready Reserve, is amended by striking out 
''$500" and "$2,000" and inserting in lieu thereof "$1,000" and 
"$4,000", respectively. 
(2) The amendments made by paragraph (1) shall take effect on 
October 1,1980. 
(b) Section 2135 of such title 10, United States Code, is amended by 
striking out "September 30, 1980" and inserting in lieu thereof 
"September 30,1985". 
TITLE X—GENERAL PROVISIONS 
Effective date. 
10 u s e 2131 
note. 
REQUIREMENT OF ANNUAL AUTHORIZATION OF APPROPRIATIONS FOR 
OPERATION AND MAINTENANCE 
SEC. 1001. (a)(1) Section 138(a) of title 10, United States Code, 
relating to annual authorization of appropriations, is amended— 
(A) by striking out "or" at the end of 
clause (5); 
(B) by inserting "or" at the end of 
clause (6); and 
94 STAT. 1118 
PUBLIC LAW 96-342—SEPT. 8, 1980 
10 u s e 138 note. 
10 u s e 138. 
Report to 
Congress. 
Contents. 
Funding level 
recommen-
dation. 
Combat 
readiness 
projection. 
(C) by inserting after clause (6) the following new clause: 
"(7) the operation and maintenance of any armed force or of 
the activities and agencies of the Department of Defense (other 
than the military departments);". 
(2) The amendments made by paragraph (1) shall apply with 
respect to funds appropriated for fiscal years beginning after Septem-
ber 30,1981. 
O
b
) Section 138 of such title is further amended— 
(1) by striking out "subsection (e) of this section" in subsection 
(a)(6) and inserting in lieu thereof "subsection (f)"; 
(2) by redesignating subsection (e) as subsection (f); and 
(3) by inserting after subsection (d) the following new subsec-
tion (e): 
"(e)(1) The Secretary of Defense shall submit to Congress a written 
report, not later than February 15 of each fiscal year, with respect to 
the operations and maintenance of the Army, Navy, Air Force, and 
Marine Corps for the next fisced year. The Secretary shall include in 
each such report recommendations for— 
"(A) the number of aircraft fljdng hours for the Army, Navy, 
Air Force, and Marine Corps for the next fiscal year, the number 
of ship steaming hours for the Navy for the next fiscal year, and 
the number of field training days for the combat arms battalions 
of the Army and Marine Corps for the next fiscal year; 
"(B) the number of ships over 3,000 tons (full load displace-
ment) in each Navy ship classification on which major repair 
work should be performed during the next fiscal year; and 
"(C) the number of airframe reworks, aircraft engine reworks, 
and vehicle overhauls which should be performed by the Army, 
Navy, Air Force, and Marine Corps during the next fiscal year. 
"(2) The Secretary shall also include in each such report the 
justification for and an explanation of the level of funding recom-
mended in the Budget of the President for the next fiscal year for 
aircraft flying hours, ship steaming hours, field training days for the 
combat arms battalions, major repair work to be performed on ships 
of the Navy, airframe reworks, aircraft engine reworks, and vehicle 
overhauls. 
"(3) The Secretary shall also include in each such report a projec-
tion (made in accordance with paragraph (4)) of the combat readiness 
proposed to be maintained during the next fiscal year o
f
— 
"(A) each Army and Marine Corps division, brigade, and 
regiment; 
"(B) each Navy, Air Force, and Marine Corps air wing and 
squadron; 
"(C) each Navy aircraft carrier, other major surface combat-
ant, general purpose submarine, ballistic missile submarine, and 
amphibious ship; 
"(D) each Air Force strategic and tactical airlift squadron; and 
"(E) such other units as the Secretary considers appropriate. 
"(4) Each projection made pursuant to paragraph (3) shall be 
made— 
"(A) using the overall readiness ratings and the four resource-
related readiness ratings of the Unit Status and Identity Report 
of 
the Department of 
Defense; and 
"(B) using the levels of funding proposed in the Budget of the 
President for the next fiscal year. . 
(c) Subsection (f) of such section, as redesignated by subsection 
(bi&X is amended— 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1119 
(1) by striking out "For purposes of subsection (a)(6) of this 
section" and inserting in lieu thereof "(1) In subsection (a)(6)"; 
and 
(2) by adding at the end of such subsection the following new 
paragraph: 
"(2) In subsection (f): 
Definitions. 
"(A) 'Combat arms battalions' means armor, infantry, mecha-
nized infantry, air assault infantry, airborne infantry, ranger, 
artillery, and combat engineer battalions and armored cavalry 
and air cavalry squadrons. 
"(B) 'Major repair work' means, in the case of any ship to 
which such subsection is applicable, any overhaul, modmcation, 
alteration, or conversion work which will result in a total cost to 
the United States of more than $10,000,000.". 
(d)(1) The heading of such section is amended to read as follows: 
*'§138. Annual authorization of appropriations and personnel 
strengths for the armed forces; annual manpower require-
ments and operations and maintenance reports". 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 4 of such title is amended to read as follows: 
"138. Annual authorization of appropriations and personnel strengths for the armed 
forces; annual manpower requirements and operations and maintenance 
reports.". 
DENIAL OF CERTAIN BENEFITS TO PERSONS WHO FAIL TO COMPLETE AT 
LEAST TWO YEARS OF AN ORIGINAL ENLISTMENT 
SEC. 1002. (a) Chapter 49 of title 10, United States Code, relating to 
prohibitions and penalties, is amended by adding at the end thereof 
the following new section: 
"§ 977. Denial of certain benefits to persons who fail to complete ^
^ use 977. 
at least two years of an original enlistment 
"(a) Notwithstanding any other provision of law and except as 
provided in subsection (b), any person who originally enlists in a 
regular component of the armed forces on or after the date of the 
enactment of the Department of Defense Authorization Act, 1981, ^«^e, p. 1077. 
and who fails to complete at least twenty-four months of such 
person's period of original enlistment shall not be eligible for any 
right, privilege, or benefit for which persons become eligible under 
any Federal program by reason of 
serving on active duty in the armed 
forces if the claim for the eligibility of such person for such right, 
privilege, or benefit is 
based upon any period of 
service performed by 
such person under such enlistment. 
"(b) Subsection (a) shall not apply to any person (1) who was 
discharged under section 1173 or chapter 61 of this title, or (2) if it is ]^^^ n'^^, 
later established that such person is suffering from a disability which 
^
^ *
^
^ 
resulted from an injury or disease incurred in or aggravated during 
the period of the enlistment completed by such person and is not the 
residt of the person's intentioned misconduct and was not incurred 
during a period of unauthorized absence.". 
(b) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"977. Denial of certain benefits to persons who fail to complete at least two years of 
an original enlistment". 
79-194 
O—81—pt. 1 
74 : QL3 
94 STAT. 1120 
PUBLIC LAW 96-342—SEPT. 8, 1980 
DELAY OF EFFECTIVE DATE FOR CEIUNG ON NUMBER OF GENERAL AND 
FLAG OFFICERS ON ACTIVE DUTY AND OF REDUCTION IN NUMBER OF 
SENIOR-GRADE 
CIVILIAN 
EMPLOYEES 
OF 
THE 
DEPARTMENT 
OF 
DEFENSE 
SEC. 1003. Section 811(a) of the Department of Defense Appropri-
ation Authorization Act, 1978 (10 U.S.C. 131 note), is amended^ 
(1) by striking out "October 1, 1980" in paragraph (1) and 
inserting in lieu thereof "October 1,1981"; and 
(2) by striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) After September 30, 1981, the total number of civilian 
employees of the Department of Defense in grades GS-13 through 
5 use 5332 note. GS-18 (including positions authorized under section 1581 of title 10, 
United States Code) may not exceed the number equal to 96 percent 
of the number of such employees employed by the Department of 
Defense on July 30,1977. After September 30,1982, the total number 
of such employees may not exceed the number equal to 94 percent of 
the number of such employees employed by the Department of 
Defense on July 30,1977.". 
BASIC PAY OF WOMEN OFFICERS OF THE NAVY SERVING IN THE GRADE 
OF REAR ADMIRAL 
SEC. 1004. (a) Subsection (k) of section 202 of title 37, United States 
Code, relating to assignment of certain officers to the pay grade of 
rear admiral of the upper half, is amended to read as follows: 
"(k) When initially appointed as a rear admiral under section 
5767(c) of title 10, a woman officer of the Navy is entitled to the pay of 
a rear admiral of the lower half. A woman officer serving as a rear 
admiral under such an appointment or a subsequent appointment 
under that section is entitled to the basic pay of a rear admiral of the 
upper half when any officer who is junior to her is entitled to the 
basic pay of a rear admiral of the upper half as determined under 
subsection (a) of this section.". 
Effective date. 
(b) The amendment made by subsection (a) shall apply with respect 
3
7 ubc 2S)i note. ^ basic pay payable for periods beginning on or after the date of the 
enactment of this Act. 
EXEMPTION OF CERTAIN CONTRACTS FROM CERTAIN PROFIT UMITATIONS 
1
0 use 2382 
SEC. 1005. (a) The provisions of sections 2382 and 7300 of title 10, 
^°^- 
United States Code, relating to profit limitation on contracts for the 
construction or manufacture of aircraft and naval vessels and parts 
thereof, shall not apply with respect to any contract for the construc-
tion or manufacture of all or any part of any aircraft or naval vessel, 
or to any subcontract of such a contract, for which final payment is 
made before October 1,1981. 
O
t
)
) Neither the Secretary of Defense nor the Secretary of the 
Treasury may require that any report be submitted under section 
2382 or 7300 of title 10, United States Code, before October 1, 1981, 
and neither such Secretary may prescribe regulations to imple-
ment such sections (or either of such sections) to take effect before 
October 1,1981. 
REPORT ON ALUED COMMITMENTS TO DEFENSE SPENDING 
22 use 1928 
SEC. 1006. (a) In recognition of the growth, relative to the United 
^°^- 
States, in the economic strength of Japan, Canada, and Western 
PUBLIC LAW 96-342—SEPT. 8, 1980 
94 STAT. 1121 
European countries which has occurred since the signing of the 
North Atlantic Treaty on April 4,1949, and the Mutual Cooperation 63 Stat. 2241. 
and Security Treaty between Japan and the United States on 
January 19,1960, it is the sense of Congress that— 
11 UST 1632. 
(1) the burdens of mutual defense now assumed by the coun-
tries allied with the United States under those agreements are 
not commensurate with their economic resources; and 
(2) the continued unwillingness of those countries to increase 
their contributions to the common defense to more appropriate 
levels would endanger the vitality, effectiveness, and cohesive-
ness of the alliances between those countries and the United 
States. 
(b) It is further the sense of Congress that the President should seek 
from each signatory country (other than the United States) of the two 
treaties referred to in subsection (a) acceptance of international 
security responsibilities and agreement to make contributions to the 
common defense which are commensurate with the economic 
resources of such country, including, when appropriate, an increase 
in host nation support. 
(c) The Secretary of Defense shall submit to the Congress not later Report to 
than March 1,1981, a report providing— 
Congress. 
(1) a comparison of the fair and equitable shares of the mutual 
defense burdens of these alliances that should be borne by the 
United States, by other member nations of the North Atlantic 
Treaty Organization (NATO), and by Japan, based upon 
economic strength and other relevant factors, and the actual 
defense efforts of each nation together with an explanation of 
disparities that currently exist; 
(2) a description of efforts by the United States and of other 
efforts to eliminate existing disparities; 
(3) estimates of the real growth in defense spending in fiscal 
year 1981 projected for each NATO member nation compared to 
the annual real growth goal in the range of 3 percent set in May 
1978; 
(4) a description of the defense-related initiatives undertaken 
by each NATO member nation within the real growth in defense 
spending of such nation in fiscal year 1981; and 
(5) an explanation of those instances in which the commit-
ments to real growth in defense spending and to the Long-Term 
Defense Program have not been realized and a description of 
efforts being made by the United States to ensure fulfillment of 
these important NATO commitments. 
CIVIL AIR PATROL 
SEC. 1007. (a) Subsection (b) of section 9441 of title 10, United States 
Code, relating to support of the Civil Air Patrol by the Air Force, is 
amended— 
(1) by striking out the semicolon at the end of clause (3) and 
inserting in lieu thereof ", including unit capability testing 
missions and training missions;"; 
(2) by striking out and" at the end of clause (6); 
(3) by striking out the period at the end of clause (7) and 
inserting in lieu thereof "; and"; and 
(4) by adding at the end thereof the following new clause: 
"(8) authorize the payment of aircraft maintenance expenses 
relating to operational missions, unit capability testing missions, 
and training missions.". 
94 STAT. 1122 
PUBLIC LAW 96-342—SEPT. 8, 1980 
(b)(1) Subsection (c) of such section is amended by striking out the 
period and inserting in lieu thereof *
*
, and for purposes of determining 
the civil liability of the Civil Air Patrol (or any member thereof) with 
respect to any act or omission committed by the Civil Air Patrol (or 
any member thereof) in fulfilling such mission, the Civil Air Patrol 
shall be deemed to be an instrumentality of the United States.". 
Effective date. 
(2) The amendment made by paragraph (1) shall be effective with 
1
0 use 9441 
respect to services of the Civil Air Patrol provided to the Department 
^ 
of the Air Force before the date of the enactment of this Act as well as 
to such services provided on or after such date, but such amendment 
shall not be construed (A) to revive any cause of action barred by an 
applicable statute of limitation, or (B) to serve as grounds for the 
reopening or appeal of any case which became final before the date of 
the enactment of this Act. 
ADHERENCE TO THE V/AR POWERS RESOLUTION 
5
0 use 1541 
SEC. lOOS. Whereas, the National Command Authority must have 
^°^- 
the capacity to carry out any military mission which is essential to 
the national security of the United States having in its hands in the 
Rapid Deployment Force an increased capability to extend the reach 
of our military power in an expedited manner; and whereas, without 
the significant safeguard of the War Powers Resolution (Public Law 
50 use 1541 
93-148), United States foreign and defense policies could be subject to 
misinterpretation; it is therefore the sense of the Congress that the 
provisions of the War Powers Resolution be strictly adhered to and 
that the congressional consultation process specified by such Resolu-
tion be utilized strictly according to the terms of the War Powers 
Resolution. 
Approved September 8, 1980. 
note. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-916 (eomm. on Armed Services) and No. 96-1222 (Comm. 
of Oonference). 
SENATE REPORTS: No. 96-826 (Comm. on Armed Services) and No. 96-895 (eomm. 
of Oonference). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
May 13-15, 21, considered and passed House. 
June 28, 30, July 1, 2, considered and passed Senate, amended. 
Aug. 26, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 37: 
Sept. 8, Presidential statement.