SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Pay and Retirement Reform 
Act of 1999''.

SEC. 2. FISCAL YEAR 2000 INCREASE IN MILITARY BASIC PAY AND REFORM OF 
              BASIC PAY RATES.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2000 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) January 1, 2000, Increase in Basic Pay.--Effective on January 
1, 2000, the rates of monthly basic pay for members of the uniformed 
services shall be increased by 4.4 percent.
    (c) Reform of Basic Pay Rates.--Effective on July 1, 2000, the 
rates of monthly basic pay for members of the uniformed services within 
each pay grade are as follows:
      

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   6,569.10   6,784.50   6,926.40   6,966.60    7,148.40
O-7.............   5,458.50   5,829.60   5,829.60   5,871.90    6,091.20
O-6.............   4,045.50   4,444.50   4,736.10   4,736.10    4,754.40
O-5.............   3,236.10   3,799.50   4,062.30   4,112.10    4,276.20
O-4.............   2,727.30   3,321.30   3,542.70   3,592.20    3,798.60
O-3\3\..........   2,534.40   2,873.40   3,100.80   3,351.90    3,512.40
O-2\3\..........   2,210.40   2,517.90   2,899.80   2,997.60    3,059.40
O-1\3\..........   1,919.10   1,997.40   2,413.80   2,413.80    2,413.80
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,443.00   7,512.30   7,794.60   7,876.20    8,119.20
O-7.............   6,258.30   6,451.20   6,643.80   6,837.00    7,443.00
O-6.............   4,958.40   4,985.70   4,985.70   5,152.50    5,769.00
O-5.............   4,276.20   4,404.90   4,642.50   4,953.60    5,268.30
O-4.............   3,966.00   4,236.90   4,447.20   4,593.60    4,740.90
O-3\3\..........   3,688.50   3,835.50   4,024.80   4,123.20    4,123.20
O-2\3\..........   3,059.40   3,059.40   3,059.40   3,059.40    3,059.40
O-1\3\..........   2,413.80   2,413.80   2,413.80   2,413.80    2,413.80
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $10,614.3
                                     0  $10,666.8
                                                0  $10,888.8
                                                           0  $11,275.20
O-9.............       0.00   9,283.80   9,417.60   9,611.10    9,948.30
O-8.............   8,471.40   8,796.60   9,013.50   9,013.50    9,013.50
O-7.............   7,955.10   7,955.10   7,955.10   7,955.10    7,995.10
O-6.............   6,063.00   6,357.00   6,524.10   6,695.70    7,024.20
O-5.............   5,415.30   5,562.30   5,731.80   5,731.80    5,731.80
O-4.............   4,791.60   4,791.60   4,791.60   4,791.60    4,791.60
O-3\3\..........   4,123.20   4,123.20   4,123.20   4,123.20    4,123.20
O-2\3\..........   3,059.40   3,059.40   3,059.40   3,059.40    3,059.40
O-1\3\..........   2,413.80   2,413.80   2,413.80   2,413.80   2,413.80
------------------------------------------------------------------------
\1\Notwithstanding the pay rates specified in this table, basic pay for
  commissioned officers may not exceed the rate of basic pay for level V
  of the Executive Schedule.
\2\While serving as Chairman or Vice Chairman of the Joint Chiefs of
  Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of
  Staff of the Air Force, Commandant of the Marine Corps, or Commandant
  of the Coast Guard, basic pay for this grade is calculated to be
  $12,441.00, regardless of cumulative years of service computed under
  section 205 of title 37, United States Code. However, actual basic pay
  for these officers may not exceed the rate of basic pay for level V of
  the Executive Schedule.
\3\This table does not apply to commissioned officers in the grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,351.90   $3,512.40
O-2E............       0.00       0.00       0.00   2,997.60    3,059.40
O-1E............       0.00       0.00       0.00   2,413.80    2,578.50
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $3,688.50  $3,835.50  $4,024.80  $4,184.40   $4,275.60
O-2E............   3,156.30   3,321.30   3,448.20   3,542.70    3,542.70
O-1E............   2,673.60   2,770.50   2,866.80   2,997.60    2,997.60
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $4,402.50  $4,402.50  $4,402.50  $4,402.50   $4,402.50
O-2E............   3,542.70   3,542.70   3,542.70   3,542.70    3,542.70
O-1E............   2,997.60   2,997.60   2,997.60   2,997.60    2,997.60
------------------------------------------------------------------------



                            WARRANT OFFICERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   2,582.10   2,777.70   2,857.80   2,937.60   3,071.70
W-3..............   2,346.90   2,545.80   2,545.80   2,578.50   2,684.10
W-2..............   2,055.60   2,223.90   2,223.90   2,297.10   2,413.80
W-1..............   1,712.70   1,963.50   1,963.50   2,127.60   2,223.90
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,204.90   3,337.50   3,471.90   3,608.40   3,739.20
W-3..............   2,804.40   2,962.80   3,059.40   3,164.70   3,285.60
W-2..............   2,545.80   2,642.40   2,739.30   2,833.50   2,937.90
W-1..............   2,323.80   2,424.00   2,523.60   2,624.10   2,724.30
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $4,458.00  $4,611.00  $4,764.90  $4,918.50
W-4..............   3,873.30   4,006.20   4,139.70   4,273.50   4,410.30
W-3..............   3,405.60   3,525.60   3,645.60   3,765.90   3,886.20
W-2..............   3,044.70   3,151.80   3,258.60   3,365.70   3,365.70
W-1..............   2,824.20   2,899.80   2,899.80   2,899.80   2,899.80
------------------------------------------------------------------------


                            ENLISTED MEMBERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\1\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   1,758.90   1,920.60   1,993.20   2,066.10   2,139.60
E-6..............   1,513.20   1,671.90   1,746.00   1,817.40   1,892.70
E-5..............   1,327.80   1,488.30   1,560.90   1,634.70   1,708.50
E-4..............   1,238.10   1,368.00   1,441.80   1,514.40   1,587.90
E-3..............   1,167.00   1,255.80   1,329.00   1,330.80   1,330.80
E-2..............   1,123.20   1,123.20   1,123.20   1,123.20   1,123.20
E-1..............        \2\
                    1,001.70   1,001.70   1,001.70   1,001.70   1,001.70
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\1\...........      $0.00  $3,003.90  $3,071.70  $3,157.80  $3,259.20
E-8..............   2,518.80   2,591.70   2,659.50   2,741.10   2,829.30
E-7..............   2,212.50   2,285.40   2,359.50   2,430.90   2,504.40
E-6..............   1,966.50   2,040.30   2,111.40   2,184.00   2,235.90
E-5..............   1,783.50   1,855.20   1,928.70   1,929.00   1,929.00
E-4..............   1,587.90   1,587.90   1,587.90   1,587.90   1,587.90
E-3..............   1,330.80   1,330.80   1,330.80   1,330.80   1,330.80
E-2..............   1,123.20   1,123.20   1,123.20   1,123.20   1,123.20
E-1..............   1,001.70   1,001.70   1,001.70   1,001.70   1,001.70
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\1\...........  $3,360.30  $3,460.20  $3,595.50  $3,729.60  $3,900.90
E-8..............   2,921.40   3,014.40   3,149.10   3,282.90   3,471.90
E-7..............   2,577.30   2,650.50   2,776.80   2,915.10   3,122.40
E-6..............   2,274.60   2,274.60   2,274.60   2,274.60   2,274.60
E-5..............   1,929.00   1,929.00   1,929.00   1,929.00   1,929.00
E-4..............   1,587.90   1,587.90   1,587.90   1,587.90   1,587.90
E-3..............   1,330.80   1,330.80   1,330.80   1,330.80   1,330.80
E-2..............   1,123.20   1,123.20   1,123.20   1,123.20   1,123.20
E-1..............   1,001.70   1,001.70   1,001.70   1,001.70  1,001.70
------------------------------------------------------------------------
\1\While serving as Sergeant Major of the Army, Master Chief Petty
  Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant
  Major of the Marine Corps, or Master Chief Petty Officer of the Coast
  Guard, basic pay for this grade is $4,701.00, regardless of cumulative
  years of service computed under section 205 of title 37, United States
  Code.
\2\In the case of members in the grade E-1 who have served less than 4
  months on active duty, basic pay is $926.70.

SEC. 3. RETIRED PAY COMPUTATION FORMULA FOR MEMBERS OF THE ARMED FORCES 
              WHO ENTERED MILITARY SERVICE ON OR AFTER AUGUST 1, 1986.

    (a) Repeal of ``Redux'' Retired Pay Reduction Applicable to Post-
August 1, 1986, Members With Less Than 30 Years of Service.--Section 
1409(b) of title 10, United States Code, is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (1), by striking ``paragraphs (2) and 
        (3)'' and inserting ``paragraph (2)''.
    (b) Modification of Cost-of-Living Adjustment Applicable to Post-
August 1, 1986, Members.--Paragraph (3) of section 1401a of such title 
is amended to read as follows:
            ``(3) Post-august 1, 1986 members.--
                    ``(A) If the percent determined under paragraph (2) 
                is equal than or greater than 3 percent, the Secretary 
                shall increase the retired pay of each member and 
                former member who first became a member on or after 
                August 1, 1986, by the difference between--
                            ``(i) the percent determined under 
                        paragraph (2); and
                            ``(ii) 1 percent.
                    ``(B) If the percent determined under paragraph (2) 
                is less than 3 percent, the Secretary shall increase 
                the retired pay of each member and former member who 
                first became a member on or after August 1, 1986, by 
                the lesser of--
                            ``(i) the percent determined under 
                        paragraph (2); and
                            ``(ii) 2 percent.''.
    (c) Conforming Amendments.--
            (1) Section 1410 of such title is amended--
                    (A) by striking ``on that date'' and all that 
                follows through ``increases in the retired pay'' and 
                inserting ``on that date if increases in the retired 
                pay'';
                    (B) by striking ``section); and'' and inserting 
                ``section).'';
                    (C) by striking paragraph (2); and
                    (D) by amending the section heading to read as 
                follows:
``Sec. 1410. Restoral of cost-of-living adjustment amount at age 62 for 
              members entering on or after August 1, 1986''.
            (2) The table of sections at the beginning of chapter 71 of 
        such title is amended to read as follows:

``1410. Restoral of cost-of-living adjustment amount at age 62 for 
                            members entering on or after August 1, 
                            1986.''.
            (3) Chapter 73 of such title is amended as follows:
                    (A) Section 1447(6)(A) is amended by striking 
                ``(determined without regard to any reduction under 
                section 1409(b)(2) of this title)''.
                    (B) Section 1451(h) is amended by striking 
                paragraph (3).
                    (C) Section 1452(c) is amended by striking 
                paragraph (4).
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1999.
Output: Military Pay and Retirement Reform Act of 1999 - Waives during FY 2000 any required adjustment in the rates of monthly military basic pay in conformance with the General Schedule of the Federal Government.  Increases such pay by 4.4 percent, effective on January 1, 2000.  Provides an increase in such pay as of July 1, 2000, for officers and enlisted personnel within specified pay grades. 
Repeals a Federal provision which provides a formula reduction in the retired pay of military personnel who first become members after July 31, 1986, and had creditable military service of less than 30 years.  Directs the Secretary of Defense to increase the annual retired pay of such members under a revised formula which takes into account annual cost-of-living increases.