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US (United States) Code. Title 10. Subtitle A: General Military. Part II. Chapter 71: Computation of retired pay


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10 USC CHAPTER 71 - COMPUTATION OF RETIRED PAY 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

.

-HEAD-

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-MISC1-

Sec.

1401. Computation of retired pay.

1401a. Adjustment of retired pay and retainer pay to reflect

changes in Consumer Price Index.

1402. Recomputation of retired or retainer pay to reflect later

active duty of members who first became members before September

8, 1980.

1402a. Recomputation of retired or retainer pay to reflect later

active duty of members who first became members after September

7, 1980.

1403. Disability retired pay: treatment under Internal Revenue Code

of 1986.

1404. Applicability of section 8301 of title 5.

1405. Years of service.

1406. Retired pay base for members who first became members before

September 8, 1980: final basic pay.

1407. Retired pay base for members who first became members after

September 7, 1980: high-36 month average.

1408. Payment of retired or retainer pay in compliance with court

orders.

1409. Retired pay multiplier.

1410. Restoral of full retirement amount at age 62 for certain

members entering on or after August 1, 1986.

1411. Rules of construction.

1412. Rounding to next lower dollar.

1413. Special compensation for certain severely disabled uniformed

services retirees.

1413a. Special compensation for certain combat-related disabled

uniformed services retirees.

1414. Members eligible for retired pay who have service-connected

disabilities: payment of retired pay and veterans' disability

compensation; contingent authority.

AMENDMENTS

2002 - Pub. L. 107-314, div. A, title VI, Sec. 636(a)(3), Dec.

2, 2002, 116 Stat. 2576, added item 1413a.

2001 - Pub. L. 107-107, div. A, title VI, Sec. 641(c), Dec. 28,

2001, 115 Stat. 1150, added item 1414.

1999 - Pub. L. 106-65, div. A, title VI, Sec. 643(b)(3)(B),

658(a)(2), Oct. 5, 1999, 113 Stat. 664, 669, inserted ''certain''

before ''members'' in item 1410 and added item 1413.

1987 - Pub. L. 100-26, Sec. 7(h)(2)(B), Apr. 21, 1987, 101 Stat.

282, substituted colon for semicolon and ''Internal Revenue Code of

1986'' for ''Internal Revenue Code of 1954'' in item 1403.

1986 - Pub. L. 99-348, title III, Sec. 304(b)(2), July 1, 1986,

100 Stat. 703, inserted ''of members who first became members

before September 8, 1980'' in item 1402, substituted ''Retired pay

base for members who first became members before September 8, 1980:

final basic pay'' for ''Limitations on revocation of retired pay''

in item 1406 and ''Retired pay base for members who first became

members after September 7, 1980: high-36 month average'' for

''Retired pay base'' in item 1407, and added items 1409 to 1412.

1982 - Pub. L. 97-252, title X, Sec. 1002(b), Sept. 8, 1982, 96

Stat. 735, added item 1408.

1980 - Pub. L. 96-513, title V, Sec. 511(51)(C), (52)(C), Dec.

12, 1980, 94 Stat. 2924, 2925, substituted ''of members who first

became members after September 7, 1980'' for ''in case of members

who first became members after the enactment of the Department of

Defense Authorization Act, 1981'' in item 1402a, and substituted

''Internal Revenue Code of 1954'' for ''title 26'' in item 1403.

Pub. L. 96-342, title VIII, Sec. 813(a)(2), (b)(3)(B), 94 Stat.

1101, 1104, added items 1402a and 1407.

1966 - Pub. L. 89-718, Sec. 3, Nov. 2, 1966, 80 Stat. 1115,

substituted ''8301'' for ''47a'' in item 1404.

Pub. L. 89-652, Sec. 2(2), Oct. 14, 1966, 80 Stat. 902, added

item 1406.

1963 - Pub. L. 88-132, Sec. 5(g)(2), Oct. 2, 1963, 77 Stat. 214,

added item 1401a.

1958 - Pub. L. 85-422, Sec. 11(a)(1)(B), May 20, 1958, 72 Stat.

131, added item 1405.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 642, 1275, 1315 of this

title; title 4 section 114; title 33 section 3071; title 42 section

213a.

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10 USC Sec. 1401 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1401. Computation of retired pay

-STATUTE-

(a) Disability, Non-Regular Service, Warrant Officer, and DOPMA

Retirement. - The monthly retired pay of a person entitled thereto

under this subtitle is computed according to the following table.

For each case covered by a section of this title named in the

column headed ''For sections'', retired pay is computed by taking,

in order, the steps prescribed opposite it in columns 1, 2, 3, and

4, as modified by the applicable footnotes.

--------------------------------------

Formula No.

1

For sections: 1201 1204

Column 1 Take: Retired pay base as computed under section 1406(b)

or 1407.

Column 2 Multiply by: As member elects - (1) 2 1/2% of years of

service credited to him under section 1208; (FOOTNOTE 1) or (2)

the percentage of disability on date when retired.

Column 3 Add:

Column 4 Subtract: Excess over 75% of retired pay base upon which

computation is based.

---------

2

---------

4

1202 1205: 580 1263 1293 1305

Retired pay base as computed under section 1406(b) or 1407.:

Retired pay base as computed under section 1406(b) or 1407.

As member elects - (1) 2 1/2% of years of service credited to him

under section 1208; (FOOTNOTE 1) or (2) the percentage of

disability on date wh: The retired pay multiplier prescribed in

section 1409(a) for the years of service credited to him under

section 1405.

Amount necessary to increase product of columns 1 and 2 to 50% of

retired pay base upon which computation is based.:

Excess over 75% of retired pay base upon which computation is

based.:

---------

5

(FOOTNOTE 1) Before applying percentage factor, credit each

full month of service that is in addition to the number of full

years of service creditable to the member as one-twelfth of a year

and disregard any remaining fractional part of a month.

THE FOLLOWING DATA ARE NOT AVAILABLE

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(b) Use of Most Favorable Formula. - If a person would otherwise

be entitled to retired pay computed under more than one formula of

the table in subsection (a) or of any other provision of law, the

person is entitled to be paid under the applicable formula that is

most favorable to him.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 106; Pub. L. 85-422, Sec. 6(7),

11(a)(2), May 20, 1958, 72 Stat. 129, 131; Pub. L. 88-132, Sec.

5(h)(1), Oct. 2, 1963, 77 Stat. 214; Pub. L. 89-132, Sec. 6, Aug.

21, 1965, 79 Stat. 547; Pub. L. 90-207, Sec. 3(1), Dec. 16, 1967,

81 Stat. 653; Pub. L. 92-455, Sec. 1, Oct. 2, 1972, 86 Stat. 761;

Pub. L. 96-342, title VIII, Sec. 813(b)(1), Sept. 8, 1980, 94 Stat.

1102; Pub. L. 96-513, title I, Sec. 113(a), title V, Sec. 511(49),

Dec. 12, 1980, 94 Stat. 2876, 2924; Pub. L. 98-94, title IX, Sec.

922(a)(1), 923(a)(1), (2)(A), Sept. 24, 1983, 97 Stat. 641, 642;

Pub. L. 98-557, Sec. 35(b), Oct. 30, 1984, 98 Stat. 2877; Pub. L.

99-348, title II, Sec. 201(a), July 1, 1986, 100 Stat. 691; Pub. L.

102-484, div. A, title X, Sec. 1052(18), Oct. 23, 1992, 106 Stat.

2500; Pub. L. 103-337, div. A, title XVI, Sec. 1662(j)(2), Oct. 5,

1994, 108 Stat. 3004.)

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Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

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1401 Introductory 10:600l(f) (1st June 29, 1948, ch.

clause 1401(1) sentence, less 708, Sec. 303 (1st

applicability to 91 words and 1st

retired grade). proviso), 62 Stat.

34:430(f) (1st 1088. Oct. 12,

sentence, less 1949, ch. 681, Sec.

applicability to 402(d) (less 30th

retired grade). through 55th words;

37:272(d) (less 1st less 104th through

55 words; less 128th words, as

104th through 128th applicable to

words, as retired grade; and

applicable to less 2d, 5th, and

retired grade; and last provisos),

less 1st, 2d, 4th, 402(e) (1st proviso

5th, and last of last sentence),

provisos). 63 Stat. 818, 819.

37:272(e) (1st

proviso of last

sentence).

1401(2) 1401(3) 37:272(d) (1st 29, May 29, 1954, ch.

and 51st through 249, Sec. 14(d)

55th, words, and (less 1st

4th proviso). sentence), (f) (1st

10:1036b (1st 91 sentence, less

words and 1st applicability to

proviso). 34:440j retired grade; and

(1st 91 words and last sentence), 68

1st proviso). Stat. 163, 164.

1401(4) 10:600l(d) (2d

sentence).

10:600l(f) (last

sentence).

34:430(d) (2d

sentence).

34:430(f) (last

sentence).

1401, footnote 1. (No source).

1401, footnote 2. (No source).

1401, footnote 3. 37:272(d) (1st

proviso);

10:600l(d) (less

1st and 2d

sentences).

34:430(d) (less 1st

and 2d sentences).

-------------------------------

In the introductory paragraph, the applicability of the rule

stated in the third sentence to situations not expressly covered by

the laws named in the source statutes above is a practical

construction that the rule must be reciprocally applied in all

cases.

In formula No. 1, the words ''whichever is earlier'', in

37:272(d) (clause (2)), are omitted, since they are contrary to the

rule stated in 37:272(e) (1st proviso of last sentence).

In formula No. 3, the computation is based on monthly pay instead

of annual pay to conform to the other formulas of the revised

section. The words ''basic pay'' are substituted for the words

''base and longevity pay'' to conform to the terminology of the

Career Compensation Act of 1949 (37 U.S.C. 231 et seq.). The words

''which he would receive if serving, at the time granted such pay,

on active duty'' are omitted as surplusage and to conform to the

other formulas of the revised section, since the effect of these

words is covered by footnote 1. The words ''at any time'' are

substituted for the words ''during his entire period of service''.

Footnotes 1 and 2 reflect the long-standing construction of those

provisions dealing with computation of retired pay which do not

specifically provide that the member is entitled to compute his

retired pay on the basis of the monthly basic pay to which he would

be entitled if he were on active duty in his retired grade. The

pertinent basic computation provisions for such retirement either

provide for computation of retired pay on the same basis as the

provisions dealing with higher retired grade, or the basic

retirement provisions were enacted after the provisions authorizing

higher retired grade. The words ''at rates applicable on date of

retirement * * * and adjust to reflect later changes in permanent

rates'', in footnote 1; and all of footnote 2; are based on the

source statutes incorporated in the formulas to which footnotes 1

and 2 apply, as interpreted in an opinion of the Judge Advocate

General of the Army (1953/4120, 14 May 1953).

In footnote 3, the words ''and disregard a part of a year that is

less than six months'' are made applicable to formulas Nos. 1 and

2. The legislative history of the Career Compensation Act of 1949

(Hearings before the Committee on Armed Services of the Senate on

H.R. 5007, 81st Congress, First Session, page 313, July 6, 1949)

indicates that the provisions, upon which formulas Nos. 1 and 2 are

based, should be construed to require that a fraction of less than

one-half of a year be disregarded. It also indicates that other

retirement laws that are also silent on this point should be

similarly construed.

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-337 in table struck out formula

number 3 which provided formula for computing retired pay under

former section 1331 of this title.

1992 - Subsec. (a). Pub. L. 102-484 substituted ''580'' for

''564'' in column in table under heading ''For sections''.

1986 - Subsec. (a). Pub. L. 99-348, Sec. 201(a)(1), (2),

designated existing provision as subsec. (a), added heading, and

struck out third, fourth, and fifth sentences which read as

follows: ''The amount computed, if not a multiple of $1, shall be

rounded to the next lower multiple of $1. However, if a person

would otherwise be entitled to retired pay computed under more than

one pay formula of this table or of any other provision of law, he

is entitled to be paid under the applicable formula that is most

favorable to him. Section references below are to sections of this

title.''

Pub. L. 99-348, Sec. 201(a)(3), amended column 1 of table

generally by substituting provisions that retired pay be computed

by taking the retired pay base as computed under section 1406(b) or

1407 of this title for provisions that retired pay be computed for

a person who first became a member of a uniformed service, as

defined in section 1407(a)(2) of this title, after Sept. 7, 1980,

by taking the monthly retired pay base as computed under section

1407(b) of this title, and for all others, by taking the monthly

basic pay to which the member was entitled under various

circumstances.

Pub. L. 99-348, Sec. 201(a)(4), substituted in column 2 of table

a multiplier of the retired pay multiplier prescribed in section

1409(a) for the years of service credited to him under section 1405

for a multiplier of 2 1/2% of years of service credited under

section 1405 for formulas 4 and 5 and struck out ''Excess over 75%

of pay upon which computation is based.'' in column 4 of table for

formulas 4 and 5.

Pub. L. 99-348, Sec. 201(a)(5), in columns 3 and 4 substituted

''retired pay base'' for ''pay'' wherever appearing.

Pub. L. 99-348, Sec. 201(a)(6), redesignated footnote 3 as 1, and

struck out former footnote 1 which provided computation at rates

applicable on date of retirement or date when the member's name was

placed on temporary disability retired list, as the case may be,

footnote 2 which provided computation at rates applicable on the

date when retired pay is granted, footnote 4 which provided

computation at the highest rates of basic pay applicable to an

officer who served as 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, while so serving in that office and computation at the

highest rate of basic pay applicable to an enlisted person who has

served 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,

while he served if that rate is higher than the rate authorized by

the table, and footnote 5 which provided for purposes of this

section that an officer's retired grade be determined as if

sections 3962(b) and 8962(b) did not apply.

Pub. L. 99-348, Sec. 201(a)(7), in column 2 of table substituted

footnote 1 designation for footnote 3 designation wherever

appearing.

Subsec. (b). Pub. L. 99-348, Sec. 201(a)(8), added subsec. (b).

1984 - Pub. L. 98-557 inserted reference to Commandant of the

Coast Guard in footnote 4 of table.

1983 - Pub. L. 98-94, Sec. 922(a)(1), inserted ''The amount

computed, if not a multiple of $1, shall be rounded to the next

lower multiple of $1.''

Pub. L. 98-94, Sec. 923(a)(1), (2)(A), in footnote 3 of table,

substituted ''Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month'' for ''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''.

1980 - Pub. L. 96-513, Sec. 113(a), inserted formula 5 in table

of formulae set out in the section and added footnote 5.

Pub. L. 96-513, Sec. 511(49), in formula 4 table of sections

struck out reference to section 1255, in heading for Column 1

substituted reference to Sept. 7, 1980, for reference to date of

enactment of Department of Defense Authorization Act, 1981, and in

footnote 4 substituted reference to master chief petty officer of

the Navy, for reference to senior enlisted advisor of the Navy.

Pub. L. 96-342 in heading for column 1 of table inserted

provisions respecting applicability to persons becoming members

after the date of the enactment of the Department of Defense

Authorization Act, 1981.

1972 - Pub. L. 92-455 substituted in second sentence of footnote

4 of table ''chief master sergeant of the Air Force, sergeant major

of the Marine Corps, or master chief petty officer of the Coast

Guard,'' for ''chief master sergeant of the Air Force, or sergeant

major of the Marine Corps,''.

1967 - Pub. L. 90-207 inserted sentence to footnote 4 of table

requiring the computation of retired pay for an enlisted person who

has served as senior noncommissioned officer of his service at the

highest rate of basic pay applicable to him while he so served, if

that rate is higher than the rate authorized by the table.

1965 - Pub. L. 89-132 struck out ''increased, for members

credited with two or less years of service for basic pay purposes,

by 6%'' from column 1 of formula 1 and column 1 of formula 2.

1963 - Pub. L. 88-132 struck out from footnote 1 of table '', and

adjust to reflect later changes in applicable permanent rates''

after ''as the case may be.''

1958 - Pub. L. 85-422, Sec. 6(7)(A), inserted provisions in

Column 1 of formulas 1 and 2 permitting the taking of the monthly

basic pay to which a member was entitled on the day before

retirement or placement on temporary disability retired list,

increased, for members credited with two or less years of service

for basic pay purposes, by 6 percent.

Pub. L. 85-422, Sec. 11(a)(2), substituted ''under section 1405

of this title'' for ''in computing basic pay'' in column 2 of

formula 4.

Pub. L. 85-422, Sec. 6(7)(B), added footnote 4.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 35(c) of Pub. L. 98-557 provided that: ''The amendments

made by this section (amending this section and provisions set out

as a note under section 1009 of Title 37, Pay and Allowances of the

Uniformed Services) shall become effective on October 1, 1984''.

EFFECTIVE DATE OF 1983 AMENDMENT

Section 922(e) of Pub. L. 98-94 provided that: ''The amendments

made by this section (enacting section 6333 of this title and

amending this section, sections 1401a, 1402, 1402a, 1437, 1451,

3991, 3992, 6151, 6383, 8991, and 8992 of this title, section 423

of Title 14, Coast Guard, section 853o of Title 33, Navigation and

Navigable Waters, section 212 of Title 42, The Public Health and

Welfare) shall take effect on October 1, 1983.''

Amendment by section 923 of Pub. L. 98-94 applicable with respect

to the computation of retired or retainer pay of any individual who

becomes entitled to that pay after Sept. 30, 1983, see section

923(g) of Pub. L. 98-94, set out as a note under section 1174 of

this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by section 113(a) of Pub. L. 96-513 effective Sept. 15,

1981, but the authority to prescribe regulations under the

amendment by Pub. L. 96-513 effective on Dec. 12, 1980, and

amendment by section 511(49) of Pub. L. 96-513 effective Dec. 12,

1980, see section 701 of Pub. L. 96-513, set out as a note under

section 101 of this title.

EFFECTIVE DATE OF 1967 AMENDMENT

Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7

of Pub. L. 90-207, set out as a note under section 203 of Title 37,

Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section

10 of Pub. L. 89-132, set out as a note under section 203 of Title

37, Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE OF 1963 AMENDMENT

Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section

14 of Pub. L. 88-132, set out as a note under section 201 of Title

37, Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-422 effective June 1, 1958, see section 9

of Pub. L. 85-422.

SHORT TITLE OF 1986 AMENDMENT

Section 1(a) of Pub. L. 99-348 provided that: ''This Act

(enacting sections 134a, 1406, 1407, and 1409 to 1412 of this

title, redesignating former section 1406 of this title as section

1338 (now 12738) of this title, amending this section, sections

101, 135, 136a, 716, 1040, 1338 (now 12738), 1401a, 1402, 1402a,

1405, 1447, 1451, 1452, 2830, 3925, 3991, 3992, 5083, 5201, 6151,

6322, 6323, 6325, 6326, 6330, 6333, 6383, 8925, 8991, and 8992 of

this title, sections 5313 and 5314 of Title 5, Government

Organization and Employees, sections 46, 47, 51, 288, 291 to 293,

327, 334, 353 to 355, 357, 362, and 421 to 424 of Title 14, Coast

Guard, section 853o of Title 33, Navigation and Navigable Waters,

and sections 211 and 212 of Title 42, The Public Health and

Welfare, repealing former section 1407 and section 6328 of this

title, enacting provisions set out as notes under this section and

sections 135 and 12731 of this title, and repealing provisions set

out as notes under this section and section 6330 of this title) may

be cited as the 'Military Retirement Reform Act of 1986'.''

SHORT TITLE OF 1982 AMENDMENT

Pub. L. 97-252, title X, Sec. 1001, Sept. 8, 1982, 96 Stat. 730,

provided that: ''This title (enacting section 1408 of this title,

amending sections 1072, 1076, 1086, 1447, 1448, and 1450 of this

title, and enacting provisions set out as notes under sections 1408

and 2208 of this title) may be cited as the 'Uniformed Services

Former Spouses' Protection Act'.''

RECOMPUTATION OF RETIRED PAY FOR CERTAIN RECENTLY RETIRED OFFICERS

Pub. L. 106-65, div. A, title VI, Sec. 601(e), Oct. 5, 1999, 113

Stat. 648, provided that: ''In the case of a commissioned officer

of the uniformed services who retired during the period beginning

on April 30, 1999, through December 31, 1999, and who, at the time

of retirement, was in pay grade O-7, O-8, O-9, or O-10, the retired

pay of that officer shall be recomputed, effective as of January 1,

2000, using the rate of basic pay that would have been applicable

to the computation of that officer's retired pay if the provisions

of paragraph (2) of section 203(a) of title 37, United States Code,

as added by subsection (d), had taken effect on April 30, 1999.''

SIX-MONTH ROUNDING RULE

Section 305(b) of Pub. L. 99-348 provided that:

''(1) General rule. - Retired pay or retainer pay may not be paid

to a covered member of the Armed Forces (as defined in paragraph

(3)) for any month in an amount that is greater than the amount

otherwise determined to be payable after such reductions as may be

necessary to reflect adjusting the computation of retired pay or

retainer pay that includes credit for a part of a year of service

to permit credit for a part of a year of service only for such

month or months actually served.

''(2) Exceptions. - The limitation in paragraph (1) does not

apply to a member who before January 1, 1982 -

''(A) applied for retirement or transfer to the Fleet Reserve

or Fleet Marine Corps Reserve;

''(B) was being processed for retirement under the provisions

of chapter 61 of title 10, United States Code, or who was on the

temporary disability retired list and thereafter retired under

the provisions of section 1210(c) or 1210(d) of such title; or

''(C) was retired or in an inactive status and would have been

eligible for retired pay under the provisions of chapter 67 (now

1223) of such title, but for the fact that the person was under

60 years of age.

''(3) Definition of covered member. - For the purposes of this

subsection, the term 'covered member of the Armed Forces' means a

member of the Armed Forces who became entitled to retired or

retainer pay during the period beginning on January 1, 1982, and

ending on September 30, 1983.

''(4) Repeal of source law. - Section 8054 of the Department of

Defense Appropriations Act, 1985 (as contained in section 101(h) of

Public Law 98-473) (formerly set out as a note below), is repealed.

''(5) Cross reference. - For the effective date of October 1,

1983, for provisions making permanent programmatic changes in law

to accomplish the policy provided in such section 8054 (and prior

provisions of law), see section 923(h) of the Department of Defense

Authorization Act, 1984 (Public Law 98-94) (probably means section

923(g) of Pub. L. 98-94, set out as an Effective Date of 1983

Amendment note under section 1174 of this title).''

LIMITATION ON PAYMENT OF RETIRED OR RETAINER PAY TO REFLECT

FRACTIONAL YEAR ADJUSTMENTS

Pub. L. 98-473, title I, Sec. 101(h) (title VIII, Sec. 8054),

Oct. 12, 1984, 98 Stat. 1904, 1933, prohibited, with certain

exceptions, payment of retired pay or retainer pay of a member of

the Armed Forces for any month who, on or after January 1, 1982,

became entitled to retired or retainer pay, in an amount greater

than the amount otherwise determined payable after reductions

necessary to reflect adjusting the computation of retired pay or

retainer pay that includes credit for part of a year of service to

permit credit for a part of a year of service only for such month

or months actually served, prior to repeal by Pub. L. 99-348, title

III, Sec. 305(b)(4), July 1, 1986, 100 Stat. 705.

INCREASE IN PAY AND ALLOWANCES OF CERTAIN PERSONS WHO SERVED AS

GENERALS OF THE ARMY, FLEET ADMIRALS OF THE NAVY, GENERAL OF THE

MARINE CORPS, OR ADMIRAL IN THE COAST GUARD

Section 5 of Pub. L. 90-207 provided that: ''Notwithstanding any

other provision of law, a member of an armed force who is entitled

to pay and allowances under any of the following provisions of law

on September 30, 1967, shall continue to receive the pay and

allowances to which he was entitled on that day plus an increase of

4.5 per centum in the total of his pay and allowances:

''(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).

''(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).

''(3) The Act of September 18, 1950, chapter 952 (64 Stat.

A224).''

INCREASE IN RETIRED OR RETAINER PAY OF MEMBERS ENTITLED THERETO ON

OR AFTER OCTOBER 1, 1967

Section 6 of Pub. L. 90-207 provided that: ''Notwithstanding any

other provision of law, a member or former member of a uniformed

service who initially becomes entitled to retired pay or retainer

pay on or after October 1, 1967, shall be entitled to have that pay

computed using the rates of basic pay prescribed by the first

section of this Act (amending section 203(a) of Title 37).''

INCREASES IN RETIRED OR RETAINER PAY

Pub. L. 89-501, title III, Sec. 303, July 13, 1966, 80 Stat. 278,

provided that: ''Notwithstanding any other provision of law, a

member or former member of a uniformed service who initially

becomes entitled to retired pay or retainer pay on the effective

date of this title shall be entitled to have that pay computed

using the rates of basic pay prescribed by the first section of

this title (amending section 203(a) of Title 37).''

Effective date of section 303 of Pub. L. 89-501 as the first day

of the first pay period which begins on or after July 1, 1966, see

section 304 of Pub. L. 89-501, set out as Effective Date of 1966

Amendments note under section 203 of Title 37, Pay and Allowances

of the Uniformed Services.

Section 5(a) of Pub. L. 89-132 provided that: ''The retired pay

or retainer pay of a member or former member of a uniformed service

who is entitled to that pay computed under rates of basic pay in

effect before the effective date of this Act (Sept. 1, 1965) shall

be increased, effective that date, by the per centum (adjusted to

the nearest one-tenth of 1 per centum) that the Consumer Price

Index (all items - United States city average), published by the

Bureau of Labor Statistics, for the calendar month immediately

preceding the effective date of this Act has increased over the

average monthly index for calendar year 1962.''

CONTINUATION OF PAY AND ALLOWANCES OF CERTAIN PERSONS WHO SERVED AS

GENERALS OF THE ARMY, FLEET ADMIRALS OF THE NAVY, GENERAL OF THE

MARINE CORPS, OR ADMIRAL IN THE COAST GUARD

Section 7 of Pub. L. 89-132 provided that: ''Notwithstanding any

other provision of law, a member of an armed force who was entitled

to pay and allowances under any of the following provisions of law

on the day before the effective date of this Act (Sept. 1, 1965)

shall continue to receive the pay and allowances to which he was

entitled on that day:

''(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).

''(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).

''(3) The Act of September 18, 1950, chapter 952 (64 Stat.

A224).''

INCREASE IN RETIRED PAY TO PERSONS RETIRED BEFORE JUNE 1, 1958

Section 4 of Pub. L. 85-422, as amended by Pub. L. 85-855, Sec.

1(a), Aug. 28, 1958, 72 Stat. 1104, provided that:

''(a) Except for members covered by section 7 of this Act,

members and former members of the uniformed services who are

entitled to retired pay, retirement pay, retainer pay, or

equivalent pay, on the day before the effective date of this Act

(June 1, 1958), shall be entitled to an increase of 6 per centum of

that pay to which they were entitled on that date.

''(b) Notwithstanding any other provision of law, a member of a

uniformed service retired under any provision of law, or

transferred to the Fleet Reserve or Fleet Marine Corps Reserve, on

the effective date of this Act (June 1, 1958) shall have his

retired pay or retainer pay computed on the basis of the rates of

basic pay set forth in the Career Compensation Act of 1949, as

amended by this Act, or on the rates of basic pay set forth in the

Career Compensation Act of 1949 on the day before the effective

date of this Act, plus 6 per centum of that pay, whichever is

greater.

''(c) Section 5 of the Career Incentive Act of 1955 (69 Stat. 22)

does not apply to any person who is retired, or to whom retired

pay, retirement pay, retainer pay, or equivalent pay (including

temporary disability retired pay) is granted, on or after the

effective date of this Act (June 1, 1958)''.

Section 1(b) of Pub. L. 85-855 provided that the amendment of

section 4(a) of Pub. L. 85-422, which eliminated the words ''and

persons with two or less years of service for basic pay purposes

who were retired for physical disability or placed on the temporary

disability retired list'' preceding ''members and former members''

should be effective June 1, 1958.

PUBLIC HEALTH SERVICE

Authority vested by this chapter in ''military departments'',

''the Secretary concerned'', or ''the Secretary of Defense'' to be

exercised, with respect to commissioned officers of Public Health

Service, by Secretary of Health and Human Services or his designee,

see section 213a of Title 42, The Public Health and Welfare.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

Authority vested by this chapter in ''military departments'',

''the Secretary concerned'', or ''the Secretary of Defense'' to be

exercised, with respect to commissioned officer corps of National

Oceanic and Atmospheric Administration, by Secretary of Commerce or

Secretary's designee, see section 3071 of Title 33, Navigation and

Navigable Waters.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 580, 1201, 1202, 1204,

1205, 1210, 1403, 3991, 8991 of this title; title 5 section 5532;

title 42 section 213a.

-CITE-

10 USC Sec. 1401a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1401a. Adjustment of retired pay and retainer pay to reflect

changes in Consumer Price Index

-STATUTE-

(a) Prohibition on Recomputation To Reflect Increases in Basic

Pay. - Unless otherwise specifically provided by law, the retired

pay of a member or former member of an armed force may not be

recomputed to reflect any increase in the rates of basic pay for

members of the armed forces.

(b) Cost-of-Living Adjustments Based on CPI Increases. -

(1) Increase required. - Effective on December 1 of each year,

the Secretary of Defense shall increase the retired pay of

members and former members entitled to that pay in accordance

with paragraphs (2) and (3).

(2) Percentage increase. - Except as otherwise provided in this

subsection, the Secretary shall increase the retired pay of each

member and former member by the percent (adjusted to the nearest

one-tenth of 1 percent) by which -

(A) the price index for the base quarter of that year,

exceeds

(B) the base index.

(3) Reduced percentage for certain post-august 1, 1986 members.

- If the percent determined under paragraph (2) is greater than 1

percent, the Secretary shall increase the retired pay of each

member and former member who first became a member on or after

August 1, 1986, and has elected to receive a bonus under section

322 of title 37, by the difference between -

(A) the percent determined under paragraph (2); and

(B) 1 percent.

(4) Special rule for paragraph (3). - If in any case in which

an increase in retired pay that would otherwise be made under

paragraph (3) is not made by reason of law (other than any

provision of this section), then (unless otherwise provided by

law) when the next increase in retired pay is made under this

subsection, the increase under paragraph (3) shall be carried out

so as to achieve the same net increase in retired pay under that

paragraph that would have been the case if that law had not been

enacted.

(5) Regulations. - Any increase in retired pay under this

subsection shall be made in accordance with regulations

prescribed by the Secretary of Defense.

(c) First COLA Adjustment for Members With Retired Pay Computed

Using Final Basic Pay. -

(1) First adjustment with intervening increase in basic pay. -

Notwithstanding subsection (b) but subject to subsection (f)(2),

if a person described in paragraph (3) becomes entitled to

retired pay based on rates of monthly basic pay that became

effective after the last day of the calendar quarter of the base

index, the retired pay of the member or former member shall be

increased on the effective date of the next adjustment of retired

pay under subsection (b) only by the percent (adjusted to the

nearest one-tenth of 1 percent) by which -

(A) the price index for the base quarter of that year,

exceeds

(B) the price index for the calendar quarter immediately

before the calendar quarter in which the rates of monthly basic

pay on which the retired pay is based became effective.

(2) First adjustment with no intervening increase in basic pay.

- If a person described in paragraph (3) becomes entitled to

retired pay on or after the effective date of an adjustment in

retired pay under subsection (b) but before the effective date of

the next increase in the rates of monthly basic pay, the retired

pay of the member or former member shall be increased (subject to

subsection (f)(2) as applied to other members whose retired pay

is computed on the current rates of basic pay in the most recent

adjustment under this section), effective on the date the member

becomes entitled to that pay, by the percent (adjusted to the

nearest one-tenth of 1 percent) by which -

(A) the base index, exceeds

(B) the price index for the calendar quarter immediately

before the calendar quarter in which the rates of monthly basic

pay on which the retired pay is based became effective.

(3) Members covered. - Paragraphs (1) and (2) apply to a member

or former member of an armed force who first became a member of a

uniformed service before August 1, 1986, and whose retired pay

base is determined under section 1406 of this title.

(d) First COLA Adjustment for Members With Retired Pay Computed

Using High-Three. - Notwithstanding subsection (b) but subject to

subsection (f)(2), the retired pay of a member or former member of

an armed force who first became a member of a uniformed service

before August 1, 1986, or on or after August 1, 1986, if the member

or former member did not elect to receive a bonus under section 322

of title 37 and whose retired pay base is determined under section

1407 of this title shall be increased on the effective date of the

first adjustment of retired pay under subsection (b) after the

member or former member becomes entitled to retired pay by the

percent (adjusted to the nearest one-tenth of 1 percent) equal to

the difference between the percent by which -

(1) the price index for the base quarter of that year, exceeds

(2) the price index for the calendar quarter immediately before

the calendar quarter during which the member became entitled to

retired pay.

(e) Pro Rating of Initial Adjustment. - Notwithstanding

subsection (b) but subject to subsection (f)(2), the retired pay of

a member or former member of an armed force who first became a

member of a uniformed service on or after August 1, 1986, and

elected to receive a bonus under section 322 of title 37 shall be

increased on the effective date of the first adjustment of retired

pay under subsection (b) after the member or former member becomes

entitled to retired pay by the percent (adjusted to the nearest

one-tenth of 1 percent) equal to the difference between -

(1) the percent by which -

(A) the price index for the base quarter of that year,

exceeds

(B) the price index for the calendar quarter immediately

before the calendar quarter during which the member became

entitled to retired pay; and

(2) one-fourth of 1 percent for each calendar quarter from the

quarter described in paragraph (1)(B) to the quarter described in

paragraph (1)(A).

If in any case the percent described in paragraph (2) exceeds the

percent determined under paragraph (1), such an increase shall not

be made.

(f) Prevention of Pay Inversions

(1) Prevention of retired pay inversions. - Notwithstanding any

other provision of law, the monthly retired pay of a member or a

former member of an armed force who initially became entitled to

that pay on or after January 1, 1971, may not be less than the

monthly retired pay to which he would be entitled if he had

become entitled to retired pay at an earlier date based on the

grade in which the member is retired, adjusted to reflect any

applicable increases in such pay under this section. In

computing the amount of retired pay to which such a member or

former member would have been entitled on that earlier date, the

computation shall be based on his grade, length of service, and

the rate of basic pay applicable to him at that time, except that

such computation may not be based on a rate of basic pay for a

grade higher than the grade in which the member is retired. This

subsection does not authorize any increase in the monthly retired

pay to which a member was entitled for any period before October

7, 1975.

(2) Prevention of cola inversions. - The percentage of the

first adjustment under this section in the retired pay of any

person, as determined under subsection (c)(1), (c)(2), (d), or

(e), may not exceed the percentage increase in retired pay

determined under subsection (b)(2) that is effective on the same

date as the effective date of such first adjustment.

(g) Definitions. - In this section:

(1) The term ''price index'' means the Consumer Price Index

(all items, United States city average) published by the Bureau

of Labor Statistics.

(2) The term ''base quarter'' means the calendar quarter ending

on September 30 of each year.

(3) The term ''base index'' means the price index for the base

quarter for the most recent adjustment under subsection (b).

(4) The term ''retired pay'' includes retainer pay.

(h) Price Index for a Quarter. - For purposes of this section,

the price index for a calendar quarter is the arithmetical mean of

the price index for the three months comprising that quarter.

-SOURCE-

(Added Pub. L. 88-132, Sec. 5(g)(1), Oct. 2, 1963, 77 Stat. 213;

amended Pub. L. 89-132, Sec. 5(b), Aug. 21, 1965, 79 Stat. 547;

Pub. L. 90-207, Sec. 2(a)(1), Dec. 16, 1967, 81 Stat. 652; Pub. L.

91-179, Sec. 1, Dec. 30, 1969, 83 Stat. 837; Pub. L. 94-106, title

VIII, Sec. 806, Oct. 7, 1975, 89 Stat. 538; Pub. L. 94-361, title

VIII, Sec. 801(a), July 14, 1976, 90 Stat. 929; Pub. L. 94-440,

title XIII, Sec. 1306(d)(1), Oct. 1, 1976, 90 Stat. 1462; Pub. L.

96-342, title VIII, Sec. 812(b)(1), Sept. 8, 1980, 94 Stat. 1098;

Pub. L. 98-94, title IX, Sec. 921(a)(1), (b), 922(a)(2), Sept. 24,

1983, 97 Stat. 640, 641; Pub. L. 98-525, title XIV, Sec. 1405(26),

Oct. 19, 1984, 98 Stat. 2623; Pub. L. 99-348, title I, Sec. 102,

July 1, 1986, 100 Stat. 683; Pub. L. 100-180, div. A, title XII,

Sec. 1231(21), Dec. 4, 1987, 101 Stat. 1161; Pub. L. 100-224, Sec.

1, Dec. 30, 1987, 101 Stat. 1536; Pub. L. 100-456, div. A, title

VI, Sec. 622(a), Sept. 29, 1988, 102 Stat. 1983; Pub. L. 101-189,

div. A, title VI, Sec. 651(b)(1), Nov. 29, 1989, 103 Stat. 1460;

Pub. L. 103-66, title II, Sec. 2001, Aug. 10, 1993, 107 Stat. 335;

Pub. L. 103-160, div. A, title XI, Sec. 1182(e), Nov. 30, 1993,

107 Stat. 1773; Pub. L. 103-335, title VIII, Sec. 8114A(b)(1),

Sept. 30, 1994, 108 Stat. 2648; Pub. L. 103-337, div. A, title VI,

Sec. 633(a), Oct. 5, 1994, 108 Stat. 2787; Pub. L. 104-106, div.

A, title VI, Sec. 631(a), (c), Feb. 10, 1996, 110 Stat. 364, 365;

Pub. L. 104-201, div. A, title VI, Sec. 631(a), 632(a), Sept. 23,

1996, 110 Stat. 2549; Pub. L. 106-65, div. A, title VI, Sec.

641(b), 643(b)(1), title X, Sec. 1066(a)(10), Oct. 5, 1999, 113

Stat. 662, 663, 771; Pub. L. 107-314, div. A, title VI, Sec. 633,

Dec. 2, 2002, 116 Stat. 2572.)

-MISC1-

AMENDMENTS

2002 - Subsec. (c)(1). Pub. L. 107-314, Sec. 633(a)(1), inserted

''but subject to subsection (f)(2)'' after ''Notwithstanding

subsection (b)'' in introductory provisions.

Subsec. (c)(2). Pub. L. 107-314, Sec. 633(a)(2), inserted

''(subject to subsection (f)(2) as applied to other members whose

retired pay is computed on the current rates of basic pay in the

most recent adjustment under this section)'' after ''shall be

increased'' in introductory provisions.

Subsec. (d). Pub. L. 107-314, Sec. 633(a)(1), (b)(1), in

introductory provisions, inserted ''but subject to subsection

(f)(2)'' after ''Notwithstanding subsection (b)'' and ''or on or

after August 1, 1986, if the member or former member did not elect

to receive a bonus under section 322 of title 37'' after ''August

1, 1986,''.

Subsec. (e). Pub. L. 107-314, Sec. 633(a)(1), (b)(2), in

introductory provisions, inserted ''but subject to subsection

(f)(2)'' after ''Notwithstanding subsection (b)'' and ''and elected

to receive a bonus under section 322 of title 37'' after ''August

1, 1986,''.

Subsec. (f). Pub. L. 107-314, Sec. 633(a)(3), designated existing

provisions as par. (1), inserted par. heading, realigned margins,

and added par. (2).

1999 - Subsec. (b)(1). Pub. L. 106-65, Sec. 643(b)(1)(A),

substituted ''Increase required'' for ''In general'' in heading.

Subsec. (b)(2). Pub. L. 106-65, Sec. 1066(a)(10), struck out

subpar. (A) designation and heading ''General rule'', redesignated

cls. (i) and (ii) as subpars. (A) and (B), respectively, and

realigned their margins, and struck out former subpars. (B) and (C)

which read as follows:

''(B) Special rule for fiscal year 1996. - In the case of the

increase in retired pay that, pursuant to paragraph (1), becomes

effective on December 1, 1995, the initial month for which such

increase is payable as part of such retired pay shall

(notwithstanding such December 1 effective date) be March 1996.

''(C) Inapplicability to disability retirees. - Subparagraph (B)

does not apply with respect to the retired pay of a member retired

under chapter 61 of this title.''

Pub. L. 106-65, Sec. 643(b)(1)(B), substituted ''Percentage

increase'' for ''Pre-august 1, 1986 members'' in heading.

Pub. L. 106-65, Sec. 641(b)(1), substituted ''Except as otherwise

provided in this subsection, the Secretary shall increase the

retired pay of each member and former member'' for ''The Secretary

shall increase the retired pay of each member and former member who

first became a member of a uniformed service before August 1,

1986,''.

Subsec. (b)(3). Pub. L. 106-65, Sec. 643(b)(1)(C), substituted

''Reduced percentage for certain post-august 1, 1986 members'' for

''Post-august 1, 1986 members'' in heading.

Pub. L. 106-65, Sec. 641(b)(2), inserted ''and has elected to

receive a bonus under section 322 of title 37,'' after ''August 1,

1986,''.

1996 - Subsec. (b)(2)(B). Pub. L. 104-201, Sec. 631(a),

substituted ''Special rule for fiscal year 1996'' for ''Special

rules for fiscal years 1996 and 1998'' as subpar. heading, struck

out cl. (i) designation and heading ''Fiscal year 1996'' before

''In the case of'', and struck out cl. (ii) which read as follows:

''Fiscal year 1998. - In the case of the increase in retired pay

that, pursuant to paragraph (1), becomes effective on December 1,

1997, the initial month for which such increase is payable as part

of such retired pay shall (notwithstanding such December 1

effective date) be September 1998.''

Pub. L. 104-106, Sec. 631(c), repealed Pub. L. 103-335, Sec.

8114A(b)(1). See 1994 Amendment note below.

Pub. L. 104-106, Sec. 631(a), amended subpar. (B) generally.

Prior to amendment, subpar. (B) read as follows: ''Special rules

for fiscal years 1994 through 1998. -

''(i) Fiscal year 1994. - In the case of an increase in retired

pay that, pursuant to paragraph (1), becomes effective on

December 1, 1993, the initial month for which such increase is

payable as part of such retired pay shall (notwithstanding such

December 1 effective date) be March 1994.

''(ii) Fiscal years 1995 through 1998. - In the case of an

increase in retired pay that, pursuant to paragraph (1), becomes

effective on December 1 of 1994, 1995, 1996, or 1997, the initial

month for which such increase is payable as part of such retired

pay shall (notwithstanding such December 1 effective date) be

September of the following year.''

Subsec. (c). Pub. L. 104-201, Sec. 632(a), added subsec. (c) and

struck out former subsec. (c) which read as follows: ''Rule for

First Adjustment After Retirement With Intervening Increase in

Basic Pay. - Notwithstanding subsection (b), if a member or former

member of an armed force who first became a member of a uniformed

service before August 1, 1986, becomes entitled to retired pay

based on rates of monthly basic pay that became effective after the

last day of the calendar quarter of the base index, the retired pay

of the member or former member shall be increased on the effective

date of the next adjustment of retired pay under subsection (b)

only by the percent (adjusted to the nearest one-tenth of 1

percent) by which -

''(1) the price index for the base quarter of that year,

exceeds

''(2) the price index for the calendar quarter immediately

before the calendar quarter in which the rates of monthly basic

pay on which the retired pay is based became effective.''

Subsec. (d). Pub. L. 104-201, Sec. 632(a), added subsec. (d) and

struck out former subsec. (d) which read as follows: ''Rule for

First Adjustment After Retirement With No Intervening Increase in

Basic Pay. - If a member or former member of an armed force who

first became a member of a uniformed service before August 1, 1986,

becomes entitled to retired pay on or after the effective date of

an adjustment in retired pay under subsection (b) but before the

effective date of the next increase in the rates of monthly basic

pay, the retired pay of the member or former member shall be

increased, effective on the date the member becomes entitled to

that pay, by the percent (adjusted to the nearest one-tenth of 1

percent) by which -

''(1) the base index, exceeds

''(2) the price index for the calendar quarter immediately

before the calendar quarter in which the rates of monthly basic

pay on which the retired pay is based became effective.''

1994 - Subsec. (b)(2)(B). Pub. L. 103-335, Sec. 8114A(b)(1),

which directed substituting, in heading, ''through 1996'' for

''through 1998'' and substituting, in cl. (ii), ''and 1996'' for

''through 1998'', ''of 1994 or 1995'' for ''of 1994, 1995, 1996, or

1997'', and ''March'' for ''September'', was repealed by Pub. L.

104-106, Sec. 631(c).

Subsec. (f). Pub. L. 103-337 inserted ''based on the grade in

which the member is retired'' after ''at an earlier date'' in first

sentence and '', except that such computation may not be based on a

rate of basic pay for a grade higher than the grade in which the

member is retired'' before period at end of second sentence and

struck out after second sentence ''However, in the case of a member

who, after initially becoming eligible for retired pay, is reduced

in grade pursuant to a sentence of a court-martial, such

computation may not be based on a grade higher than the grade in

which the member is retired.''

1993 - Subsec. (b)(2). Pub. L. 103-160, Sec. 1182(e)(1), amended

par. (2) generally. Prior to amendment, par. (2) read as follows:

''Except as provided in paragraph (6), the Secretary shall increase

the retired pay of each member and former member who first became a

member of a uniformed service before August 1, 1986, by the percent

(adjusted to the nearest one-tenth of 1 percent) by which -

''(A) the price index for the base quarter of that year,

exceeds

''(B) the base index.''

Pub. L. 103-66, Sec. 2001(1), substituted ''Except as provided in

paragraph (6), the Secretary'' for ''The Secretary''.

Subsec. (b)(6). Pub. L. 103-160, Sec. 1182(e)(2), struck out par.

(6) which read as follows: ''Special rules for paragraph (2) for

fiscal years 1994 through 1998. -

''(A) Fiscal year 1994. - In the case of an increase in the

retired pay of a member or former member referred to in paragraph

(2) that, pursuant to paragraph (1), becomes effective on

December 1, 1993, the initial month for which such increase is

payable as part of such retired pay shall (notwithstanding such

December 1 effective date) be March 1994.

''(B) Fiscal years 1995 through 1998. - In the case of an

increase in retired pay of a member or former member referred to

in paragraph (2) that, pursuant to paragraph (1), becomes

effective on December 1 of 1994, 1995, 1996, or 1997, the initial

month for which such increase is payable as part of such retired

pay shall (notwithstanding such December 1 effective date) be

September of the following year.

''(C) Inapplicability to disability retirees. - Subparagraphs

(A) and (B) do not apply with respect to the retired pay of a

member retired under chapter 61 of this title.''

Pub. L. 103-66, Sec. 2001(2), added par. (6).

1989 - Subsec. (b)(3). Pub. L. 101-189, Sec. 651(b)(1)(A),

inserted ''and former member'' after first reference to ''member''.

Subsec. (e). Pub. L. 101-189, Sec. 651(b)(1)(B), inserted ''or

former member'' after first and third reference to ''member''.

Subsec. (f). Pub. L. 101-189, Sec. 651(b)(1)(C), inserted ''or

former member'' after ''member'' in second sentence.

1988 - Subsec. (f). Pub. L. 100-456 inserted after second

sentence ''However, in the case of a member who, after initially

becoming eligible for retired pay, is reduced in grade pursuant to

a sentence of a court-martial, such computation may not be based on

a grade higher than the grade in which the member is retired.''

1987 - Subsec. (a). Pub. L. 100-180 struck out ''pay'' after

''the retired pay''.

Subsec. (b)(4), (5). Pub. L. 100-224, Sec. 1(a), added par. (4)

and redesignated former par. (4) as (5).

Subsec. (e). Pub. L. 100-224, Sec. 1(b), substituted ''by the

percent (adjusted to the nearest one-tenth of 1 percent) equal to

the difference between -

''(1) the percent by which -

''(A) the price index for the base quarter of that year,

exceeds

''(B) the price index for the calendar quarter immediately

before the calendar quarter during which the member became

entitled to retired pay; and

''(2) one-fourth of 1 percent for each calendar quarter from

the quarter described in paragraph (1)(B) to the quarter

described in paragraph (1)(A).

If in any case the percent described in paragraph (2) exceeds the

percent determined under paragraph (1), such an increase shall not

be made.'' for ''only by the percent (adjusted to the nearest

one-tenth of 1 percent) by which -

''(1) the price index for the base quarter of that year,

exceeds

''(2) the price index for the calendar quarter immediately

before the calendar quarter in which the member became entitled

to retired pay.''

1986 - Subsec. (a). Pub. L. 99-348, Sec. 102(b)(1), (c)(1),

inserted heading, struck out ''or retainer'' after ''retired pay'',

and struck out sentence defining ''Index'' in this section as

meaning the Consumer Price Index (all items, United States city

average) published by the Bureau of Labor Statistics.

Subsecs. (b) to (d). Pub. L. 99-348, Sec. 102(a), added subsecs.

(b) to (d) and struck out former subsecs. (b) to (d) which 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.

''(c) Notwithstanding subsection (b), if a member or former

member of an armed force becomes entitled to retired pay or

retainer pay based on rates of monthly basic pay prescribed by

section 203 of title 37 that became effective after the last day of

the month of the base index, his retired pay or retainer pay shall

be increased on the effective date of the next adjustment of

retired pay and retainer pay under subsection (b) only by the

percent (adjusted to the nearest one-tenth of 1 percent) that the

new base index exceeds the index for the calendar month immediately

before that in which the rates of monthly basic pay on which his

retired pay or retainer pay is based became effective.

''(d) If a member or former member of an armed force becomes

entitled to retired pay or retainer pay on or after the effective

date of an adjustment of retired pay and retainer pay under

subsection (b) but before the effective date of the next increase

in the rates of monthly basic pay prescribed by section 203 of

title 37, his retired pay or retainer pay shall be increased,

effective on the date he becomes entitled to that pay, by the

percent (adjusted to the nearest one-tenth of 1 percent) that the

base index exceeds the index for the calendar month immediately

before that in which the rates of monthly basic pay on which his

retired pay or retainer pay is based became effective.''

Subsec. (e). Pub. L. 99-348, Sec. 102(a), added subsec. (e).

Subsec. (f). Pub. L. 99-348, Sec. 102(c)(2), inserted heading and

struck out ''or retainer'' after ''retired'' wherever appearing.

Subsecs. (g), (h). Pub. L. 99-348, Sec. 102(b)(2), added subsecs.

(g) and (h) and struck out former subsec. (g) which provided that

the retired or retainer pay of a member or former member of an

armed force as adjusted under this section, if not a multiple of

$1, would be rounded to the next lower multiple of $1.

1984 - Subsec. (f). Pub. L. 98-525 substituted ''before October

7, 1975'' for ''prior to the effective date of this subsection''.

1983 - Subsec. (e). Pub. L. 98-94, Sec. 921(a)(1), struck out

subsec. (e) which provided that: ''Notwithstanding subsections (c)

and (d), the adjusted retired pay or retainer pay of a member or

former member of an armed force retired on or after October 1,

1967, may not be less than it would have been had he become

entitled to retired pay or retainer pay based on the same pay

grade, years of service for pay, years of service for retired or

retainer pay purposes, and percent of disability, if any, on the

day before the effective date of the rates of monthly basic pay on

which his retired pay or retainer pay is based.''

Subsec. (f). Pub. L. 98-94, Sec. 921(b), struck out '', subject

to subsection (e) of this section,'' after ''the computation

shall''.

Subsec. (g). Pub. L. 98-94, Sec. 922(a)(2), added subsec. (g).

1980 - Subsec. (b). Pub. L. 96-342 substituted provisions

directing the Secretary of Defense to increase the retired and

retainer pay of members and former members of the armed forces each

time that an increase is made under section 8340(b) of title 5 in

annuities paid under subchapter III of chapter 83 of title 5, with

such increase to be by the same percent as the percentage by which

the annuities are increased for provisions under which the

Secretary of Defense had been authorized and directed to increase

the retired pay and retainer pay of members and former members of

the armed forces on March 1 and September 1 depending upon

determinations which the Secretary was directed to make on January

1 and July 1 of each year with regards to the percentage change in

the index published for June or December of the previous year.

1976 - Subsec. (b). Pub. L. 94-440 substituted provisions that

Secretary of Defense shall determine the percent change in the

index on Jan. 1 and July 1 of each year and effective Mar. 1 and

Sept. 1, retired and retainer pay shall be increased by the

computed percent change adjusted to the nearest 1/10 of 1 percent,

for provisions that the Secretary of Defense shall determine on a

monthly basis the percent by which the index has increased over

that used as a basis for the most recent adjustment of retired and

retainer pay and if Secretary determines for 3 consecutive months

that the amount of increase is at least 3 percent over the base

index, retired and retainer pay shall be increased by adding 1

percent and the highest percent increase in the index during those

months adjusted to the nearest 1/10 of 1 percent.

Pub. L. 94-361 struck out ''the per centum obtained by adding 1

per centum and'' before ''the highest per centum of increase in the

index''.

1975 - Subsec. (f). Pub. L. 94-106 added subsec. (f).

1969 - Subsec. (b). Pub. L. 91-179 provided for a 1 percent

addition in computing increases in retired and retainer pay of

present and former members of the armed forces, whenever the

Secretary made such adjustments to effect increases in the consumer

index over the base index.

1967 - Subsec. (a). Pub. L. 90-207 substituted ''may not be

recomputed'' for ''shall not be recomputed'', struck out ''if that

increase becomes effective after the effective date of this

section'' after ''armed forces'' and inserted sentence defining

''Index''.

Subsec. (b). Pub. L. 90-207 revised subsec. (b) generally and,

among other changes, substituted provisions requiring the Secretary

of Defense to determine monthly the percent by which the index has

increased over that used as the basis for the most recent

adjustment of retired and retainer pay under this subsection for

provisions which required the Secretary of Defense to determine the

per centum that the index for each calendar month after the

calendar month immediately preceding the effective date of Pub. L.

89-132 has increased over the base index (that for the calendar

month immediately preceding the effective date of Pub. L. 89-132

or, if later, that used as the basis for the most recent adjustment

of retired and retainer pay under this subsection).

Subsecs. (c) to (e). Pub. L. 90-207 added subsecs. (c) to (e).

1965 - Subsec. (b). Pub. L. 89-132 substituted provisions

requiring the Secretary of Defense to determine the per centum for

each calendar month that the Consumer Price Index has increased

over the base Consumer Price Index, and if the index has shown an

increase of at least 3 per centum over the base index for three

consecutive calendar months to increase the retired or retainer pay

by the highest per centum of increase in the index, for provisions

which required a determination of the increase over the preceding

calendar year and permitted an increase in the retired or retainer

pay if the index advanced 3 per centum or more for a full calendar

year.

EFFECTIVE DATE OF 1999 AMENDMENT

Pub. L. 106-65, div. A, title VI, Sec. 644, Oct. 5, 1999, 113

Stat. 664, provided that: ''The amendments made by sections 641,

642, and 643 (enacting section 322 of Title 37, Pay and Allowances

of the Uniformed Services, and amending this section and sections

1409, 1410, 1451, and 1452 of this title) shall take effect on

October 1, 1999.''

EFFECTIVE DATE OF 1996 AMENDMENT

Section 632(b) of Pub. L. 104-201 provided that: ''The amendment

made by subsection (a) (amending this section) shall apply only to

adjustments of retired and retainer pay effective after the date of

the enactment of this Act (Sept. 23, 1996).''

EFFECTIVE DATE OF 1994 AMENDMENT

Section 633(b) of Pub. L. 103-337 provided that: ''The amendments

made by subsection (a) (amending this section) shall apply with

respect to the computation of the retired pay of a member of the

Armed Forces who retires on or after the date of the enactment of

this Act (Oct. 5, 1994).''

EFFECTIVE DATE OF 1988 AMENDMENT

Section 622(b) of Pub. L. 100-456 provided that: ''The amendment

made by subsection (a) (amending this section) shall take effect on

the first day of the first month that begins after the date of the

enactment of this Act (Sept. 29, 1988) and shall apply to the

computation of the retired or retainer pay of members who initially

become entitled to such pay on or after such effective date.''

EFFECTIVE DATE OF 1983 AMENDMENT

Section 921(a)(2) of Pub. L. 98-94 provided that:

''(A) Notwithstanding the repeal of such subsection (subsec. (e)

of this section), the provisions of such subsection shall apply in

the case of any member or former member of the Armed Forces

eligible to retire on the date of the enactment of this Act (Sept.

24, 1983) for a period of three years after such date in the same

manner such provisions would have applied had they not been

repealed.

''(B) The amount of retired or retainer pay of any member or

former member of the Armed Forces who was eligible to retire on the

date of the enactment of this Act (Sept. 24, 1983) and who becomes

entitled to such pay at any time after the end of the three-year

period beginning on the date of the enactment of this Act may not

be less than it would have been had he become entitled to retired

or retainer pay on the day before the end of such three-year

period.''

Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983,

see section 922(e) of Pub. L. 98-94, set out as a note under

section 1401 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 812(b)(1) of Pub. L. 96-342, set out below, provided that

the amendment made by that section is effective Aug. 31, 1981, but

subject to certain conditions.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 1306(d)(2) of Pub. L. 94-440 provided that: ''The

amendment made by subsection (1) (amending this section) shall

apply to any increase in retired pay or retainer pay after the date

of enactment of this Act (Oct. 1, 1976), except that with respect

to the first date after the date of enactment of this Act on which

the Secretary of Defense is to determine a percent change, such

percent change shall be determined by computing the change in the

index published for the month immediately preceding such first date

over the index for the last month preceding the date of enactment

of this Act used as the basis for the most recent adjustment of

retired pay and retainer pay under section 1401a(b) of title 10,

United States Code (subsec. (b) of this section), as in effect

immediately prior to the date of enactment of this Act (Oct. 1,

1976).''

EFFECTIVE DATE OF 1969 AMENDMENT

Section 2 of Pub. L. 91-179 provided that: ''The provisions of

this Act (amending this section) become effective on October 31,

1969.''

EFFECTIVE DATE OF 1967 AMENDMENT

Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7

of Pub. L. 90-207, set out as a note under section 203 of Title 37,

Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE OF 1965 AMENDMENT

Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section

10 of Pub. L. 89-132, set out as a note under section 203 of Title

37, Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE

Section effective Oct. 1, 1963, see section 14 of Pub. L. 88-132,

set out as an Effective Date of 1963 Amendment note under section

201 of Title 37, Pay and Allowances of the Uniformed Services.

CONTINGENT ALTERNATIVE DATE FOR FISCAL YEAR 1998

Section 631(b) of Pub. L. 104-106 provided that if a civil

service retiree COLA that becomes effective during fiscal year 1998

becomes effective on a date other than the date on which a military

retiree COLA during that fiscal year is specified to become

effective under subsec. (b)(2)(B) of this section, then the

increase in military retired and retainer pay would become payable

as part of such retired and retainer pay effective on the same date

on which such civil service retiree COLA was to become effective,

prior to repeal by Pub. L. 104-201, div. A, title VI, Sec. 631(b),

Sept. 23, 1996, 110 Stat. 2549.

ELIMINATION OF DISPARITY BETWEEN EFFECTIVE DATES FOR MILITARY AND

CIVILIAN RETIREE COST-OF-LIVING ADJUSTMENTS FOR FISCAL YEAR 1995

Section 631 of Pub. L. 103-337 provided that:

''(a) In General. - The fiscal year 1995 increase in military

retired pay shall (notwithstanding subparagraph (B) of section

1401a(b)(2) of title 10, United States Code) first be payable as

part of such retired pay for the month of March 1995.

''(b) Definitions. - For the purposes of subsection (a):

''(1) The term 'fiscal year 1995 increase in military retired

pay' means the increase in retired pay that, pursuant to

paragraph (1) of section 1401a(b) of title 10, United States

Code, becomes effective on December 1, 1994.

''(2) The term 'retired pay' includes retainer pay.

''(c) Limitation. - Subsection (a) shall be effective only if

there is appropriated to the Department of Defense Military

Retirement Fund (in an Act making appropriations for the Department

of Defense for fiscal year 1995 that is enacted before March 1,

1995) such amount as is necessary to offset increased outlays to be

made from that fund during fiscal year 1995 by reason of the

provisions of subsection (a).

''(d) Authorization of Appropriations. - There is authorized to

be appropriated for fiscal year 1995 to the Department of Defense

Military Retirement Fund the sum of $376,000,000 to offset

increased outlays to be made from that fund during fiscal year 1995

by reason of the provisions of subsection (a).''

SENSE OF CONGRESS ON EQUAL TREATMENT OF EFFECTIVE DATES FOR FUTURE

COST-OF-LIVING ADJUSTMENTS FOR MILITARY AND CIVILIAN RETIREES

Section 632 of Pub. L. 103-337 provided that:

''(a) Findings. - Congress makes the following findings:

''(1) Congress, in the Omnibus Budget Reconciliation Act of

1993 (Pub. L. 103-66, see Tables for classification), changed the

effective dates for future cost-of-living adjustments for

military retired pay and for Federal civilian retirement

annuities, which (before that Act) were provided by law to be

made effective on December 1 each year.

''(2) The timing, and the percentage of increase, of military

and Federal civilian retirees' cost-of-living adjustments have

been linked for decades.

''(3) The effect of the enactment of the Omnibus Budget

Reconciliation Act of 1993 was to abandon the longstanding

congressional practice of treating military and Federal civilian

retirees identically in matters related to cost-of-living

adjustments.

''(b) Sense of Congress. - In light of the findings in subsection

(a), it is the sense of Congress that -

''(1) as a matter of simple equity and fairness, it is

imperative that cost-of-living adjustments in retirement benefits

for military and Federal civilian retirees be returned to an

identical schedule as soon as possible, but not later than

January 1, 1999;

''(2) if after October 1, 1998, there is, by law, a difference

between the date on which a cost-of-living adjustment for Federal

civilian retirees takes effect and the date on which a

cost-of-living adjustment for military retirees takes effect,

then the difference in those effective dates should be eliminated

by requiring that cost-of-living adjustments for both classes of

retirees become effective on the earlier of the two dates; and

''(3) if after October 1, 1998, there is, by law, a difference

between the first month for which a cost-of-living adjustment for

civilian retirees is payable and the first month for which a

cost-of-living adjustment for military retirees is payable, then

the difference in the months for which those adjustments are

first payable should be eliminated by requiring that the

cost-of-living adjustments for both classes of retirees first

become payable for the earlier of the two months.''

WAIVER OF ADMINISTRATIVE TIME-IN-GRADE REQUIREMENTS TO PREVENT PAY

INVERSIONS IN RETIRED PAY OF CERTAIN MILITARY RETIREES

Section 634 of Pub. L. 103-337 provided that:

''(a) Authority. - The Secretary concerned may, for purposes of

the computation under section 1401a(f) of title 10, United States

Code, of the retired pay of military retirees described in

subsection (b), waive any administrative time-in-grade regulation

(as described in subsection (d)) that would otherwise apply to such

computation. Any such waiver may be made retroactive, in the case

of any such retiree, to the date on which that retiree initially

became entitled to retired pay.

''(b) Covered Retirees. - This section applies to any military

retiree -

''(1) who initially became entitled to retired pay on or after

January 1, 1971, and before the date of the enactment of this Act

(Oct. 5, 1994);

''(2) whose retired pay, by reason of the provisions of section

1401a(f) of title 10, United States Code (the so-called 'Tower

amendment'), was initially computed as an amount greater than

would have been the case but for that section; and

''(3) who, as of the earlier computation date applicable to

that retiree -

''(A) in the case of an individual retired in an enlisted

grade, had served in the grade in which the retiree retired for

a period that was less than the period prescribed by the

applicable administrative time-in-grade requirement described

in subsection (d); and

''(B) in the case of an individual retired in an officer

grade -

''(i) was subject to an administrative time-in-grade

requirement described in subsection (d) that established a

time-in-grade requirement that was longer than the statutory

time-in-grade requirement applicable to that member; and

''(ii) had served in the grade in which the retiree retired

for a period that was less than the period prescribed by such

administrative time-in-grade requirement but not less than

the statutory time-in-grade requirement applicable to that

member.

''(c) Earlier Computation Date. - For purposes of subsection

(b)(3), the earlier computation date applicable to a military

retiree is the date that (under such section 1401a(f) as in effect

on the date of the member's retirement) was the 'earlier date' that

was used as the basis for the computation of the retiree's retired

pay.

''(d) Regulations Subject to Waiver. - A regulation that may be

waived under subsection (a) is any regulation (not required by law)

that establishes a minimum period of time that a member of the

Armed Forces must have served in a grade on active duty in order to

be eligible to retire in that grade.

''(e) Scope of Waiver Authority. - The Secretary concerned may

exercise the authority provided in subsection (a) in the case of an

individual military retiree or for any group of military retirees.

''(f) Military Retiree Defined. - For purposes of this section,

the term 'military retiree' means a member or former member of the

Armed Forces who is entitled to retired pay.

''(g) Secretary Concerned. - For purposes of this section, the

term 'Secretary concerned' has the meaning given such term in

section 101 of title 10, United States Code.''

FISCAL YEAR 1995 COST-OF-LIVING ADJUSTMENTS FOR MILITARY RETIREES

Pub. L. 103-335, title VIII, Sec. 8114A, Sept. 30, 1994, 108

Stat. 2648, as amended by Pub. L. 104-106, div. A, title VI, Sec.

631(c), Feb. 10, 1996, 110 Stat. 365, provided that:

''(a) Fiscal Year 1995 Cost-of-Living Adjustment for Military

Retirees. - (1) The fiscal year 1995 increase in military retired

pay shall (notwithstanding subparagraph (B) of section 1401a(b)(2)

of title 10, United States Code) first be payable as part of such

retired pay for the month of March 1995.

''(2) For the purposes of subsection (a):

''(A) The term 'fiscal year 1995 increase in military retired

pay' means the increase in retired pay that, pursuant to

paragraph (1) of section 1401a(b) of title 10, United States

Code, becomes effective on December 1, 1994.

''(B) The term 'retired pay' includes retainer pay.

''(b) (Repealed. Pub. L. 104-106, div. A, title VI, Sec. 631(c),

Feb. 10, 1996, 110 Stat. 365.)''

CONTINGENT ONCE-A-YEAR ADJUSTMENT OF RETIRED AND RETAINER PAY

Pub. L. 96-342, title VIII, Sec. 812, Sept. 8, 1980, 94 Stat.

1098, as amended by Pub. L. 97-35, title II, Sec. 211(b), Aug. 13,

1981, 95 Stat. 383, provided that:

''(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 1/10 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

Intelligence Agency (Retirement) 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 (2),

section 1401a(b), of title 10, United States Code, relating to

adjustment of 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 shall exercise the authority vested in him

under section 292 of the Central Intelligence Agency (Retirement)

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 1401a(b) 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 which the adjustment being made at the same time in

annuities under such subchapter III is computed. The President

shall by Executive order provide for a similar computation of the

adjustment in annuities paid under the Central Intelligence Agency

(Retirement) Act of 1964 for Certain Employees (50 U.S.C. 403 note)

which is made at the same time as the increase in retired and

retainer pay to which the preceeding (preceding) 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

Atmospheric Administration and of the Public Health Service.''

COMPUTATION OF RETIRED PAY OF SERGEANT MAJORS OF MARINE CORPS WHO

COMPLETED SERVICE PRIOR TO DECEMBER 16, 1967

Pub. L. 95-581, Nov. 2, 1978, 92 Stat. 2478, provided: ''That (a)

the retired pay of any individual who served as sergeant major of

the Marine Corps and who completed such service before December 16,

1967, shall be computed based upon a rate of basic pay of the sum

of (1) the highest rate of basic pay to which such individual was

entitled while so serving, and (2) $150.

''(b) For the purpose of computing any adjustment under section

1401a of title 10, United States Code, in the retired pay of any

individual whose retired pay is affected by subsection (a), the

rate of basic pay provided under such subsection for the purpose of

computing the retired pay of such individual shall be considered to

have been the rate of basic pay applicable to such individual at

the time of his retirement, and any adjustment under such section

1401a in the retired pay of such individual before September 30,

1978, shall be readjusted to reflect such rate of basic pay.

''Sec. 2. (a) Any change in the retired pay of any individual by

reason of the enactment of this Act shall be effective for months

beginning after September 30, 1978.

''(b) The enactment of this Act shall not reduce the retired pay

of any individual.''

(The Central Intelligence Agency Retirement Act of 1964 for

Certain Employees, referred to in Pub. L. 96-342, set out above, is

Pub. L. 88-643, Oct. 13, 1964, 78 Stat. 1043, which was revised

generally by Pub. L. 102-496, title VIII, Sec. 802, Oct. 24, 1992,

106 Stat. 3196, is known as the Central Intelligence Agency

Retirement Act and is classified generally to chapter 38 (Sec. 2001

et seq.) of Title 50, War and National Defense.)

COST-OF-LIVING ADJUSTMENT OF RETIRED PAY OR RETAINER PAY OF MEMBERS

AND FORMER MEMBERS OF ARMED FORCES AND COMMISSIONED OFFICERS OF

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION AND PUBLIC HEALTH

SERVICE; EFFECTIVE DATE OF 1976 AMENDMENT

Section 801(c) of Pub. L. 94-361 provided that:

''(1) The amendments made by subsections (a) (to subsec. (b) of

this section) and (b) (to provisions formerly set out as a note

under section 403 of title 50) shall not become effective unless

legislation is enacted repealing the so-called 1 per centum add-on

provision applicable to the cost-of-living adjustment of annuities

paid under chapter 83 of title 5, United States Code. In the event

such legislation is enacted, such amendments shall become effective

with respect to the cost-of-living adjustment of the retired pay

and retainer pay of members and former members of the Armed Forces

and the cost-of-living adjustment of annuities paid under the

Central Intelligence Agency (Retirement) Act of 1964 for Certain

Employees at the same time the repeal of such 1 per centum add-on

provision becomes effective with respect to such cost-of-living

adjustment of annuities paid under such chapter 83.

''(2) If any change other than the repeal of the so-called 1 per

centum add-on provision referred to in paragraph (1) is made in the

method of computing the cost-of-living adjustment of annuities paid

under chapter 83 of title 5, United States Code, the President

shall make the same change in the cost-of-living adjustment of

retired pay and retainer pay of members and former members of the

Armed Forces and the cost-of-living adjustment of annuities paid

under the Central Intelligence Agency (Retirement) Act of 1964 for

Certain Employees. Any change made under this paragraph shall have

the same effective date as the effective date applicable to such

change made in annuities under chapter 83 of title 5, United States

Code.

''(3) The provisions of paragraphs (1) and (2) relating to any

change in the method of computing the cost-of-living adjustment of

the retired pay or retainer pay of members and former members of

the Armed Forces shall be applicable to the computation of

cost-of-living adjustments of the retired pay of commissioned

officers of the National Oceanic and Atmospheric Administration and

the retired pay of commissioned officers of the Public Health

Service.''

(The Central Intelligence Agency Retirement Act of 1964 for

Certain Employees, referred to in Pub. L. 94-361, set out above, is

Pub. L. 88-643, Oct. 13, 1964, 78 Stat. 1043, which was revised

generally by Pub. L. 102-496, title VIII, Sec. 802, Oct. 24, 1992,

106 Stat. 3196, is known as the Central Intelligence Agency

Retirement Act and is classified generally to chapter 38 (Sec. 2001

et seq.) of Title 50, War and National Defense.)

INCREASE IN CERTAIN ARMED FORCE MEMBERS' PAY AND ALLOWANCES NOT

OTHERWISE TIED TO CONSUMER PRICE INDEX

Pub. L. 93-210, Sec. 2, Dec. 28, 1973, 87 Stat. 908, provided

that:

''(a) Notwithstanding any other provision of law, effective on

the date of enactment of this Act (Dec. 28, 1973), the pay and

allowances of members of the Armed Forces to whom this Act applies

shall be increased to amounts equal to the amounts such pay and

allowances would have been increased if the pay and allowances of

such members had been increased, under section 1401a(b) of title

10, United States Code, by the same percentage rates, consecutively

compounded, that the retired pay or retainer pay of members and

former members of the Armed Forces entitled to retired pay or

retainer pay since October 1, 1967, has been increased, and such

member shall, on and after the date of enactment of this Act (Dec.

28, 1973), have his pay and allowances increased effective the same

day and by the same percentage rate that the retired pay or

retainer pay of members and former members of the Armed Forces is

increased under such section 1401a(b).

''(b) This section applies to members of the Armed Forces

entitled to pay and allowances under either of the following

provisions of law:

''(1) The Act of June 26, 1948, chapter 677 (62 Stat. 1052)

(which authorized the appointment of one officer in the Regular

Army in the permanent grade of general, one officer in the

Regular Air Force in the permanent grade of general, and one

officer in the Regular Navy in the permanent grade of admiral).

''(2) The Act of September 18, 1950, chapter 952 (64 Stat.

A224) (which authorized the appointment of Omar N. Bradley to the

permanent grade of General of the Army).

''(c) No amounts shall be paid, as the result of the enactment of

this section, for any period prior to the date of enactment of this

section (Dec. 28, 1973).''

RETROACTIVE ADJUSTMENT OF RETIRED OR RETAINER PAY OF PERSONS

ENTITLED THERETO AFTER NOVEMBER 30, 1966, BUT PRIOR TO EFFECTIVE

DATE OF NEXT INCREASE AFTER JULY 1, 1966

Section 2(b) of Pub. L. 90-207 provided that: ''Notwithstanding

section 1401a(d) of title 10, United States Code, a person who is a

member or former member of an armed force on the date of enactment

of this Act (Dec. 16, 1967) and who initially became, or hereafter

initially becomes, entitled to retired pay or retainer pay after

November 30, 1966, but before the effective date of the next

increase after July 1, 1966, in the rates of monthly basic pay

prescribed by section 203 of title 37, United States Code, is

entitled to have his retired pay or retainer pay increased by 3.7

percent, effective as of the date of his entitlement to that pay.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1402, 1402a, 1408, 1410,

1434, 1451, 1452 of this title; title 24 section 414; title 37

section 322.

-CITE-

10 USC Sec. 1402 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1402. Recomputation of retired or retainer pay to reflect

later active duty of members who first became members before

September 8, 1980

-STATUTE-

(a) A member of an armed force who first became a member of a

uniformed service before September 8, 1980, and 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

according to the following table.

---------------------------------------------------------------------

Column 1 Take Column 2 Multiply by Column 3 Subtract

---------------------------------------------------------------------

Monthly basic pay 2 1/2 percent of the Excess over 75

(FOOTNOTE 1) of sum of - (1) the percent of pay upon

the grade in which years of service which computation

he would be that may be is based.

eligible - (1) to credited to him in

retire if he were computing retired

retiring upon that pay or retainer

release from active pay; and (2) his

duty; or (2) to years of active

transfer to the service after

Fleet Reserve or becoming entitled

Fleet Marine Corps to retired pay or

Reserve if he were retainer pay.

transferring to (FOOTNOTE 2)

either upon that

release from active

duty.

-------------------------------

(FOOTNOTE 1) For a member who has been entitled, for continuous

period of at least two years, to basic pay under the rates of basic

pay in effect upon that release from active duty, compute under

those rates. For a member who has been entitled to basic pay for a

continuous period of at least two years upon that release from

active duty, but who is not covered by the preceding sentence,

compute under the rates of basic pay replaced by those in effect

upon that release from active duty. For any other member, compute

under the rates of basic pay under which the member's retired pay

or retainer pay was computed when he entered on that active duty.

(FOOTNOTE 2) Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month.

However, an officer who was ordered to active duty (other than for

training) in the grade that he holds on the retired list under

former section 6150 of this title, or under any other law that

authorized advancement on the retired list based upon a special

commendation for the performance of duty in actual combat, may have

his retired pay recomputed under this subsection on the basis of

the rate of basic pay applicable to that grade upon his release

from that active duty only if he has been entitled, for a

continuous period of at least three years, to basic pay at that

rate. If, upon his release from that active duty, he has been

entitled to the basic pay of that grade for a continuous period of

at least three years, but he does not qualify under the preceding

sentence, he may have his retired pay recomputed under this

subsection on the basis of the rate of basic pay prescribed for

that grade by the rates of basic pay replaced by those in effect

upon his release from that duty.

(b) A member of an armed force who first became a member of a

uniformed service before September 8, 1980, and 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).

(c) A member of an armed force who first became a member of a

uniformed service before September 8, 1980, and who -

(1) was retired for physical disability under section 1201 or

1204 of this title or any other law or whose name is on the

temporary disability retired list;

(2) incurs, while on active duty after retirement or after his

name was placed on that 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 the temporary

disability retired 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 according

to the following table.

---------------------------------------------------------------------

Column 1 Take :Column 2 :Column 3 Add :Column 4

: Multiply by : : Subtract

---------------------------------------------------------------------

Highest monthly:As member :Add amount :Excess over 75%

basic pay that: elects - (1): necessary to : of pay upon

member : 2 1/2% of : increase : which

received while: years of : product of : computation is

on active duty: service : columns 1 and : based.

after : credited under: 2 to 50% of :

retirement or : section 1208 : pay upon which:

after date : of this title;: computation is:

when his name : (FOOTNOTE 1) : based, if :

was placed on : or (2) the : member is on :

temporary : highest : temporary :

disability : percentage of : disability :

retired list, : disability : retired list :

as the case : attained while: :

may be. : on active duty: :

: after : :

: retirement or : :

: after the date: :

: when his name : :

: was placed on : :

: temporary : :

: disability : :

: retired list, : :

: as the case : :

: may be. : :

: (FOOTNOTE 1) : :

-------------------------------

(FOOTNOTE 1) Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month.

If, while on active duty after retirement or after his name was

placed on the temporary disability retired list, a member covered

by this subsection was promoted to a higher grade in which he

served satisfactorily, as determined by the Secretary concerned, he

is entitled to retired pay based on the monthly basic pay to which

he would be entitled if he were on active duty in that higher

grade.

(e) Notwithstanding subsection (a), a member covered by that

subsection may elect, upon his release from active duty, to have

his retired pay or retainer pay -

(1) computed according to the formula set forth in subsection

(a) but using the rate of basic pay under which his retired pay

or retainer pay was computed when he entered on 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.

(f)(1) In the case of a member who is entitled to recompute

retired pay under this section upon release from active duty served

after retiring under section 3914 or 8914 of this title, the

member's retired pay as recomputed under another provision of this

section shall be increased by 10 percent of the amount so

recomputed if the member has been credited by the Secretary

concerned with extraordinary heroism in the line of duty during any

period of active duty service in the armed forces.

(2) The amount of the retired pay as recomputed under another

provision of this section and as increased under paragraph (1) may

not exceed the amount equal to 75 percent of the monthly rate of

basic pay upon which the recomputation of such retired pay is

based.

(3) The determination of the Secretary concerned as to

extraordinary heroism is conclusive for all purposes.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 107; Pub. L. 86-559, Sec. 1(5),

June 30, 1960, 74 Stat. 265; Pub. L. 88-132, Sec. 5(l)(1), Oct. 2,

1963, 77 Stat. 214; Pub. L. 90-207, Sec. 2(a)(2), Dec. 16, 1967, 81

Stat. 653; Pub. L. 96-342, title VIII, Sec. 813(b)(2), Sept. 8,

1980, 94 Stat. 1102; Pub. L. 96-513, title V, Sec. 511(50), Dec.

12, 1980, 94 Stat. 2924; Pub. L. 98-94, title IX, Sec. 922(a)(3),

(4), 923(a)(1), (2)(B), (C), Sept. 24, 1983, 97 Stat. 641, 642;

Pub. L. 99-348, title II, Sec. 201(b)(3), title III, Sec.

304(a)(3), (b)(3), July 1, 1986, 100 Stat. 694, 703; Pub. L.

102-484, div. A, title VI, Sec. 642(a), Oct. 23, 1992, 106 Stat.

2424.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

1402(a) 1402(b), (c) 37:316. 37:272(d) Oct. 12, 1949, ch.

(1st 128 words of 681, Sec. 402(d)

last proviso, less (last proviso, less

applicability to applicability to

retired grade). retired grade),

516, 63 Stat. 819,

832.

1402(d) 37:272(d) (last

proviso, less 1st

128 words, and less

applicability to

retired grade).

-------------------------------

In subsection (a), columns 1 and 2 of the table are based on

37:316 (1st proviso). Column 4 is based on 37:316 (last proviso).

Footnote 1 is based on 37:316 (2d proviso). 37:316 (3d proviso) is

omitted as operationally obsolete.

In subsections (a) and (d), the words ''and disregard a part of a

year that is less than six months'' are added to footnote 1 to

conform to footnote 3 of section 1401 of this title.

In subsection (b), the words ''for which he would otherwise be

eligible for retired pay under chapter 61 of this title'' are

substituted for the words ''in accordance with the standard

schedule of rating disabilities in current use by the Veterans'

Administration'' and ''if qualified''.

In subsection (c), the requirement that the physical disability

incurred be 30 percent or more is omitted as surplusage, since it

is also required that the member be qualified for physical

disability retirement under section 1201 or 1204 of this title.

In subsection (d), the rules stated in 37:316 (2d and last

provisos) are repeated in column 4 of the table and the footnote to

the table, since they apply to all cases of increased pay for

active duty performed after retirement.

-COD-

CODIFICATION

Another section 304(b)(3) of Pub. L. 99-348 amended the table of

sections at the beginning of chapter 571 of this title.

-MISC3-

AMENDMENTS

1992 - Subsec. (f). Pub. L. 102-484 added subsec. (f).

1986 - Pub. L. 99-348, Sec. 304(b)(3), inserted ''of members who

first became members before September 8, 1980'' in section

catchline.

Subsec. (a). Pub. L. 99-348, Sec. 201(b)(3), 304(a)(3), struck

out ''(as defined in section 1407(a)(2) of this title)'' after

''uniformed service'' and struck out provision that if the amount

recomputed is not a multiple of $1, it be rounded to the next lower

multiple of $1. See section 1412 of this title.

Subsecs. (b), (c). Pub. L. 99-348, Sec. 304(a)(3), struck out

''(as defined in section 1407(a)(2) of this title)'' after

''uniformed service''.

Subsec. (d). Pub. L. 99-348, Sec. 201(b)(3), struck out provision

that if the amount recomputed is not a multiple of $1, it be

rounded to the next lower multiple of $1. See section 1412 of this

title.

1983 - Subsec. (a). Pub. L. 98-94, Sec. 922(a)(3), substituted

''according to the following table. The amount recomputed, if not

a multiple of $1, shall be rounded to the next lower multiple of

$1.'' for ''as follows:''.

Pub. L. 98-94, Sec. 923(a)(1), (2)(B), in footnote 2 of table,

substituted ''Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month'' for ''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''.

Subsec. (d). Pub. L. 98-94, Sec. 922(a)(4), substituted

''according to the following table. The amount computed, if not a

multiple of $1, shall be rounded to the next lower multiple of

$1.'' for ''as follows:''.

Pub. L. 98-94, Sec. 923(a)(1), (2)(C), in footnote 1 of table,

substituted ''Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month'' for ''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''.

1980 - Subsecs. (a) to (c). Pub. L. 96-513 substituted ''a

uniformed service (as defined in section 1407(a)(2) of this title)

before September 8, 1980'' for ''the armed forces before the date

of the enactment of the Department of Defense Appropriation Act,

1981'' wherever appearing.

Pub. L. 96-342 inserted ''who first became a member of the armed

forces before the date of the enactment of the Department of

Defense Authorization Act, 1981, and'' after ''of an armed force''

wherever appearing.

1967 - Subsec. (d). Pub. L. 90-207, Sec. 2(a)(2)(A), inserted

''increased by any applicable adjustments in that pay under section

1401a of this title after he initially became entitled to that

pay'' after ''retired,''.

Subsec. (e). Pub. L. 90-207, Sec. 2(a)(2)(B), added subsec. (e).

1963 - Subsec. (a). Pub. L. 88-132 substituted in introductory

clause ''who has become entitled to retired pay or retainer pay''

for ''who has been retired or has become entitled to retainer pay''

and ''to recompute his retired pay or retainer pay upon his release

from that duty'' for '', upon release from that duty, to recompute

his retired or retainer pay'' and inserted in such clause ''(other

than for training)'' after ''active duty''; substituted in column 1

of table ''Monthly basic pay'' for ''Monthly basic pay or base and

longevity pay, as the case may be,'', designated existing

provisions as (1) and added (2); substituted in (1) of column 2 of

the table ''retired pay or retainer pay'' for ''retired or retainer

pay'' and in (2) of such column 2 ''after becoming entitled to

retired pay or retainer pay'' for ''after retirement or becoming

entitled to retainer pay'', struck out column 3 relating to

addition and redesignated column 4 as 3; added footnote 1 to the

table and redesignated former footnote 1 as 2; and inserted

provisions for recomputation of retired pay upon release from

active duty of officers ordered to active duty in a higher grade

based upon special commendation for performance of duty in actual

combat.

1960 - Subsec. (a). Pub. L. 86-559 prohibited recomputation of

retired pay under subsec. (a) on the basis of any period of active

duty that was of less than six consecutive months' duration or on

the basis of any active duty for training for a reserve officer who

is or has been retired under section 3911, 6323, or 8911 of this

title or under section 232 of title 14.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983,

see section 922(e) of Pub. L. 98-94, set out as a note under

section 1401 of this title.

Amendment by section 923 of Pub. L. 98-94 applicable with respect

to (1) the computation of retired or retainer pay of any individual

who becomes entitled to that pay after Sept. 30, 1983, and (2) the

recomputation of retired pay under this section, of any individual

who after Sept. 30, 1983, becomes entitled to recompute retired pay

under this section, see section 923(g) of Pub. L. 98-94, set out as

a note under section 1174 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

EFFECTIVE DATE OF 1967 AMENDMENT

Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7

of Pub. L. 90-207, set out as a note under section 203 of Title 37,

Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE OF 1963 AMENDMENT

Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section

14 of Pub. L. 88-132, set out as a note under section 201 of Title

37, Pay and Allowances of the Uniformed Services.

ACCRUAL OF BENEFITS; PROSPECTIVE APPLICABILITY

Section 642(c) of Pub. L. 102-484 provided that: ''No benefits

shall accrue for months beginning before the date of the enactment

of this Act (Oct. 23, 1992) by reason of the amendments made by

this section (amending this section and section 1402a of this

title).''

RECOMPUTATION OF RETIRED PAY OF CERTAIN RECALLED RETIREES

Pub. L. 98-525, title VI, Sec. 655, Oct. 19, 1984, 98 Stat. 2552,

provided that:

''(a) Notwithstanding the second sentence of footnote 1 of the

table contained in section 1402(a) of title 10, United States Code

(relating to recomputation of retired pay to reflect later active

duty), in the case of a member of the Armed Forces who -

''(1) was voluntarily called or ordered to active duty during

the period beginning on October 1, 1963, and ending on September

30, 1971;

''(2) was at the time of such call or order entitled to retired

pay or retainer pay;

''(3) served on such active duty under such call or order for a

continuous period of at least two years; and

''(4) was released from such active duty before October 1,

1973,

the retired or retainer pay of such member shall be recomputed, as

provided in subsection (b), under the rates of basic pay in effect

at the time of that release from active duty.

''(b) The retired or retainer pay of a member of the Armed Forces

described in subsection (a) shall be the amount determined under

section 1402(a) of title 10, United States Code (as modified with

respect to such member by subsection (a)), and increased by the

amount by which the member's retired or retainer pay would have

been increased during the period beginning on the date of the

member's release from active duty referred to in subsection (a)(4)

and ending on the day before the day on which this section becomes

effective had subsection (a) applied in the case of the member at

the time of that release from active duty.

''(c) This section shall apply only with respect to retired pay

and retainer pay payable for months beginning after September 30,

1984, or on or after the date of the enactment of this Act (Oct.

19, 1984), whichever is later.''

RETIRED PAY AND RETAINER PAY; PROHIBITION AGAINST RECOMPUTATION

UNDER 1963 PAY RATES; EXCEPTIONS; INCREMENTS BASED ON THE GREATER

OF A 5 PERCENT INCREASE OR RECOMPUTATION UNDER 1958 PAY RATES FOR

MEMBERS RETIRED PRIOR TO OCTOBER 1949 FOR REASONS OTHER THAN

PHYSICAL DISABILITY, MEMBERS RECEIVING RETIRED PAY UNDER CAREER

COMPENSATION ACT OF 1949 AND FORMER CHIEFS OF STAFF; ADDITIONAL 5

PERCENT INCREASE FOR OTHER RETIRED MEMBERS; EXCLUSION FROM INCREASE

OF OFFICERS RETIRED UNDER CERTAIN PROVISIONS

Section 5(a)-(f) of Pub. L. 88-132 provided that:

''(a) Except as provided in section 1402 of title 10, United

States Code, the changes made by this Act (see Short Title note

under section 201 of Title 37) in the rates of basic pay of members

of the uniformed services do not increase the retired pay or

retainer pay to which a member or former member of the uniformed

services was entitled on the day before the effective date of this

Act (Oct. 1, 1963). However, except for a member covered by section

6331 of title 10, United States Code who became entitled to

retainer pay before April 1, 1963, and subject to subsection (j) of

this section (set out as a note below), a member or former member

of a uniformed service who became entitled to retired pay or

retainer pay after March 31, 1963, but before the effective date of

this Act (Oct. 1, 1963), is entitled -

''(1) to have the retired pay or retainer pay to which he was

entitled on the day before the effective date of this Act (Oct.

1, 1963) recomputed under the rates of basic pay prescribed by

section 2 of this Act (amending section 203 of Title 37); or

''(2) to continue to have that pay computed under the rates of

basic pay that were in effect under section 203 of title 37,

United States Code, on the day before the effective date of this

Act (Oct. 1, 1963), plus the percentage increase provided by

subsection (e) of this section;

whichever pay is the greater. For the purposes of the preceding

sentence, a member or former member who became entitled to retired

pay on April 1, 1963, by virtue of section 1 of the Act of April

23, 1930, ch. 209, as amended (5 U.S.C. 47a) (section 8301 of Title

5), shall be considered as having become entitled to that pay

before April 1, 1963.

''(b) A member or former member of a uniformed service who was

retired other than for physical disability and who, in accordance

with section 511 of the Career Compensation Act of 1949 (63 Stat.

829) (10 U.S.C. 580 note), is entitled to retired pay or retainer

pay computed by 'method' (a) of that section using rates of basic

pay that were in effect before October 1, 1949, is entitled -

''(1) to have pay recomputed by 'method' (b) of that section

using the rates of basic pay that were in effect under that Act

on the day before the effective date of this Act (Oct. 1, 1963);

or

''(2) to an increase of 5 percent in the retired pay or

retainer pay to which he was entitled on the day before the

effective date of this Act (Oct. 1, 1963);

whichever pay is the greater.

''(c) A member or former member of a uniformed service who is

entitled to retired pay or retainer pay computed under the rates of

basic pay that were in effect under the Career Compensation Act of

1949 before June 1, 1958, including a member or former member who

is entitled to retired pay under section 7 (b) or (c) of the Act of

May 20, 1958, Public Law 85-422 (72 Stat. 130), is entitled -

''(1) to have that pay recomputed under the rates of basic pay

that were in effect under that Act on the day before the

effective date of this Act (Oct. 1, 1963); or

''(2) to an increase of 5 percent in the retired pay or

retainer pay to which he was entitled on the day before the

effective date of this Act (Oct. 1, 1963);

whichever pay is the greater.

''(d) A member or former member of a uniformed service who was

entitled to retired pay on the day before the effective date of

this Act (Oct. 1, 1963) and who served as Chief of Staff of the

Army, Chief of Naval Operations, Chief of Staff of the Air Force,

or Commandant of the Marine Corps is entitled -

''(1) to have his retired pay recomputed under the formula for

computing retired pay applicable to him -

''(A) when he retired; or

''(B) if he served on active duty after he retired and his

retired pay was recomputed by reason of that service, when his

retired pay was so recomputed;

using as his rate of basic pay the rate of basic pay prescribed

for officers serving on active duty in those positions on June 1,

1958, by footnote 1 to table for commissioned officers in section

201(a) of the Career Compensation Act of 1949, as amended (72

Stat. 122) (see section 203 of Title 37); or

''(2) to an increase of 5 percent in the retired pay to which

he was entitled on the day before the effective date of this Act

(Oct. 1, 1963);

whichever pay is the greater.

''(e) A member or former member of a uniformed service who was

entitled to retired pay or retainer pay on the day before the

effective date of this Act (Oct. 1, 1963), other than a member or

former member who is covered by subsection (b), (c), or (d) of this

section, is entitled to an increase of 5 percent in the retired or

retainer pay to which he was entitled on the day before the

effective date of this Act (Oct. 1, 1963).

''(f) Notwithstanding any other provision of law, a member of an

armed force who was entitled to pay and allowances under any of the

following provisions of law on the day before the effective date of

this Act (Oct. 1, 1963) shall continue to receive the pay and

allowances to which he was entitled on that day:

''(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).

''(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).

''(3) The Act of September 18, 1950, chapter 952 (64 Stat.

A224).''

RETIRED PAY AND RETAINER PAY; RETROACTIVE EFFECT

Section 5(j) of Pub. L. 88-132 provided that: ''A member or

former member of a uniformed service is not entitled to an increase

in his retired pay or retainer pay because of the enactment of this

Act (see Short Title note set out under section 201 of Title 37)

for any period before the effective date of this Act (Oct. 1,

1963).''

SAVINGS PROVISION

Section 5(l)(2) of Pub. L. 88-132 provided that:

''Notwithstanding paragraph (1) of this subsection (amending this

section), and unless otherwise entitled to higher retired pay or

retainer pay, a member of a uniformed service who is on active duty

(other than for training) on the effective date of this Act (Oct.

1, 1963), who was entitled to retired pay or retainer pay before he

entered on that duty, and who is released from that duty on or

after the effective date of this Act after having served on that

duty for a continuous period of at least one year shall, upon that

release from active duty, be entitled to recompute his retired pay

or retainer pay under the table in section 1402 of title 10, United

States Code (this section), subject to section 6483(c) of title 10,

as that table and that section were in effect on the day before the

effective date of this Act, using rates of basic pay prescribed by

this Act (section 203 of Title 37).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1373, 1403, 1406, 6330 of

this title; title 37 section 205.

-CITE-

10 USC Sec. 1402a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1402a. Recomputation of retired or retainer pay to reflect

later active duty of members who first became members after

September 7, 1980

-STATUTE-

(a) In General. - A member of an armed force -

(1) who first became a member of a uniformed service after

September 7, 1980;

(2) who has become entitled to retired pay or retainer pay; and

(3) who thereafter serves on active duty (other than for

training),

is entitled to recompute his retired pay or retainer pay upon

release from that duty according to the following table.

---------------------------------------------------------------------

Column 1 Take Column 2 Multiply by

---------------------------------------------------------------------

Retired pay base or retainer pay The retired pay multiplier or

base under section 1407 which he retainer pay multiplier

would be entitled to use if - prescribed in section 1409 for

the sum of -

(1) he were retiring upon (1) the years of service that

release from that active duty; may be credited to him in

or computing retired pay or

retainer pay; and

(2) he were transferring to the (2) his years of active service

Fleet Reserve or Fleet Marine after becoming entitled to

Corps Reserve upon that release retired pay or retainer pay.

from active duty.

-------------------------------

(b) New Disability Incurred During Later Active Duty. - A member

of an armed force who first became a member of a uniformed service

after September 7, 1980, 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).

(c) Additional or Aggravated Disability Incurred During Later

Active Duty. - A member of an armed force who first became a member

of a uniformed service after September 7, 1980, and who -

(1) was retired for physical disability under section 1201 or

1204 of this title or any other law or whose name is on the

temporary disability 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) Computation for Later Disability. - 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 according to the following table.

---------------------------------------------------------------------

Column 1 Take :Column 2 :Column 3 Add :Column 4

: Multiply by : : Subtract

---------------------------------------------------------------------

The retired pay:As member :Amount :Excess over 75

base computed : elects - (1): necessary to : percent of

under section : 2 1/2 percent : increase : retired or

1407(b) of : of years of : product of : retainer pay

this title. : service : columns 1 and : base upon

: credited under: 2 to 50 : which

: section 1208 : percent of pay: computation is

: of this title;: upon which : based.

: (FOOTNOTE 1) : computation is:

: or (2) the : based, if :

: highest : member is on :

: percentage of : temporary :

: disability : disability :

: attained while: retired list :

: on active duty: :

: after : :

: retirement or : :

: after the date: :

: when his name : :

: was placed on : :

: temporary : :

: disability : :

: retired list, : :

: as the case : :

: may be. : :

-------------------------------

(FOOTNOTE 1) Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month.

(e) Alternative Recomputation to Subsection (a) Formula. -

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.

(f) Additional 10 Percent for Certain Enlisted Members Credited

With Extraordinary Heroism. - (1) In the case of a member who is

entitled to recompute retired pay under this section upon release

from active duty served after retiring under section 3914 or 8914

of this title, the member's retired pay as recomputed under another

provision of this section shall be increased by 10 percent of the

amount so recomputed if the member has been credited by the

Secretary concerned with extraordinary heroism in the line of duty

during any period of active duty service in the armed forces.

(2) The amount of the retired pay as recomputed under another

provision of this section and as increased under paragraph (1) may

not exceed the amount equal to 75 percent of the retired pay base

upon which the recomputation of such retired pay is based.

(3) The determination of the Secretary concerned as to

extraordinary heroism is conclusive for all purposes.

-SOURCE-

(Added Pub. L. 96-342, title VIII, Sec. 813(b)(3)(A), Sept. 8,

1980, 94 Stat. 1102; amended Pub. L. 96-513, title V, Sec.

511(51)(A), (B), Dec. 12, 1980, 94 Stat. 2924; Pub. L. 98-94, title

IX, Sec. 922(a)(5), (6), 923(a)(1), (2)(D), (E), Sept. 24, 1983, 97

Stat. 641, 642; Pub. L. 99-348, title II, Sec. 201(b)(1), (2), July

1, 1986, 100 Stat. 693; Pub. L. 102-484, div. A, title VI, Sec.

642(b), Oct. 23, 1992, 106 Stat. 2425.)

-MISC1-

AMENDMENTS

1992 - Subsec. (f). Pub. L. 102-484 added subsec. (f).

1986 - Subsec. (a). Pub. L. 99-348, Sec. 201(b)(1), amended

subsec. (a) generally. Prior to the amendment, subsec. (a) read as

follows: ''A member of an armed force who first became a member of

a uniformed service (as defined in section 1407(a)(2) of this

title) after September 7, 1980, 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 according to the

following table. The amount recomputed, if not a multiple of $1,

shall be rounded to the next lower multiple of $1.''

Subsec. (b). Pub. L. 99-348, Sec. 201(b)(2)(A), inserted heading.

Subsec. (c). Pub. L. 99-348, Sec. 201(b)(2)(B), inserted heading.

Subsec. (d). Pub. L. 99-348, Sec. 201(b)(2)(C), inserted heading,

struck out provision that if the amount recomputed is not a

multiple of $1, it be rounded to the next lower multiple of $1, and

in column 1 of table struck out ''monthly'' before ''retired pay''

and in column 4 of table struck out ''monthly'' before ''retired

or''.

Subsec. (e). Pub. L. 99-348, Sec. 201(b)(2)(D), inserted heading.

1983 - Subsec. (a). Pub. L. 98-94, Sec. 922(a)(5), substituted

''according to the following table. The amount recomputed, if not

a multiple of $1, shall be rounded to the next lower multiple of

$1.'' for ''as follows:''.

Pub. L. 98-94, Sec. 923(a)(1), (2)(D), in footnote 1 of table,

substituted ''Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month'' for ''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''.

Subsec. (d). Pub. L. 98-94, Sec. 922(a)(6), substituted

''according to the following table. The amount computed, if not a

multiple of $1, shall be rounded to the next lower multiple of

$1.'' for ''as follows:''.

Pub. L. 98-94, Sec. 923(a)(1), (2)(E), in footnote 1 of table,

substituted ''Before applying percentage factor, credit each full

month of service that is in addition to the number of full years of

service creditable to the member as one-twelfth of a year and

disregard any remaining fractional part of a month'' for ''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''.

1980 - Pub. L. 96-513, Sec. 511(51)(B), substituted ''of members

who first became members after September 7, 1980'' for ''in case of

members who first became members after the enactment of the

Department of Defense Authorization Act, 1981'' in section

catchline.

Subsecs. (a) to (c). Pub. L. 96-513, Sec. 511(51)(A), substituted

''after September 7, 1980'' for ''on or after the date of the

enactment of the Department of Defense Authorization Act, 1981''

wherever appearing.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983,

see section 922(e) of Pub. L. 98-94, set out as a note under

section 1401 of this title.

Amendment by section 923 of Pub. L. 98-94 applicable with respect

to (1) the computation of retired or retainer pay of any individual

who becomes entitled to that pay after Sept. 30, 1983, and (2) the

recomputation of retired pay under this section, of any individual

who after Sept. 30, 1983, becomes entitled to recompute retired pay

under this section, see section 923(g) of Pub. L. 98-94, set out as

a note under section 1174 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

ACCRUAL OF BENEFITS; PROSPECTIVE APPLICABILITY

No benefits to accrue for months beginning before Oct. 23, 1992,

by reason of the amendment by Pub. L. 102-484, see section 642(c)

of Pub. L. 102-484, set out as a note under section 1402 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1373, 1403, 6330 of this

title; title 37 section 205.

-CITE-

10 USC Sec. 1403 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1403. Disability retired pay: treatment under Internal Revenue

Code of 1986

-STATUTE-

That part of the retired pay of a member of an armed force,

computed under formula No. 1 or 2 of section 1401, or under section

1402(d) or 1402a(d) of this title on the basis of years of service,

which exceeds the retired pay that he would receive if it were

computed on the basis of percentage of disability is not considered

as a pension, annuity, or similar allowance for personal injury, or

sickness, resulting from active service in the armed forces, under

section 104(a) of the Internal Revenue Code of 1986.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 108; Pub. L. 96-342, title

VIII, Sec. 813(b)(3)(C), Sept. 8, 1980, 94 Stat. 1104; Pub. L.

96-513, title V, Sec. 511(52)(A), (B), Dec. 12, 1980, 94 Stat.

2925; Pub. L. 100-26, Sec. 7(h)(1), (2)(A), Apr. 21, 1987, 101

Stat. 282.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

1403 37:272(h). Oct. 12, 1949, ch.

681, Sec. 402(h),

63 Stat. 820.

-------------------------------

-REFTEXT-

REFERENCES IN TEXT

The Internal Revenue Code of 1986, referred to in text, is set

out in Title 26, Internal Revenue Code.

-MISC2-

AMENDMENTS

1987 - Pub. L. 100-26 substituted ''Internal Revenue Code of

1986'' for ''Internal Revenue Code of 1954'' in section catchline

and text.

1980 - Pub. L. 96-513 substituted ''the Internal Revenue Code of

1954'' for ''title 26'' in section catchline and text.

Pub. L. 96-342 inserted reference to section 1402a(d) of this

title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 104.

-CITE-

10 USC Sec. 1404 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1404. Applicability of section 8301 of title 5

-STATUTE-

The retirement provisions of this title are subject to section

8301 of title 5.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 108; Pub. L. 89-718, Sec. 3,

Nov. 2, 1966, 80 Stat. 1115.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

1404 (No source). (No source).

-------------------------------

The effect of the act of April 23, 1930 (5 U.S.C. 47a), in

temporarily deferring retirement dates otherwise specifically fixed

by law is reflected in the sections of the proposed text that name

those dates. This section is inserted to make clear that under

that act such deferments have no effect on the applicability of the

specific rates that are to be used in computing retired pay.

AMENDMENTS

1966 - Pub. L. 89-718 substituted ''8301'' for ''47a'' in section

catchline and text.

-CITE-

10 USC Sec. 1405 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1405. Years of service

-STATUTE-

(a) In General. - For the purposes of the computation of the

years of service of a member of the armed forces under a provision

of this title providing for such computation to be made under this

section, the years of service of the member are computed by adding

-

(1) his years of active service;

(2) the years of service, not included in clause (1), with

which he was entitled to be credited on May 31, 1958, in

computing his basic pay; and

(3) the years of service, not included in clause (1) or (2),

with which he would be entitled to be credited under section

12733 of this title if he were entitled to retired pay under

section 12731 of this title.

(b) Fractional Years of Service. - In determining a member's

years of service under subsection (a) -

(1) each full month of service that is in addition to the

number of full years of service creditable to the member shall be

credited as 1/12 of a year; and

(2) any remaining fractional part of a month shall be

disregarded.

(c) Exclusion of Time Required To Be Made Up or Excluded. - (1)

Time required to be made up by an enlisted member of the Army or

Air Force under section 972(a) of this title, or required to be

made up by an enlisted member of the Navy, Marine Corps, or Coast

Guard under that section with respect to a period of time after

October 5, 1994, may not be counted in determining years of service

under subsection (a).

(2) Section 972(b) of this title excludes from computation of an

officer's years of service for purposes of this section any time

identified with respect to that officer under that section.

-SOURCE-

(Added Pub. L. 85-422, Sec. 11(a)(1)(A), May 20, 1958, 72 Stat.

130; amended Pub. L. 85-861, Sec. 1(31A), Sept. 2, 1958, 72 Stat.

1451; Pub. L. 87-649, Sec. 6(f)(4), Sept. 7, 1962, 76 Stat. 494;

Pub. L. 87-651, title I, Sec. 109, Sept. 7, 1962, 76 Stat. 509;

Pub. L. 90-130, Sec. 1(7), Nov. 8, 1967, 81 Stat. 374; Pub. L.

96-513, title I, Sec. 113(b), Dec. 12, 1980, 94 Stat. 2877; Pub. L.

97-295, Sec. 1(17), Oct. 12, 1982, 96 Stat. 1290; Pub. L. 99-348,

title I, Sec. 106, July 1, 1986, 100 Stat. 691; Pub. L. 103-337,

div. A, title VI, Sec. 635(d), title XVI, Sec. 1662(j)(3), Oct. 5,

1994, 108 Stat. 2789, 3004; Pub. L. 104-106, div. A, title V, Sec.

561(d)(1), Feb. 10, 1996, 110 Stat. 322; Pub. L. 104-201, div. A,

title X, Sec. 1074(b)(1), Sept. 23, 1996, 110 Stat. 2660; Pub. L.

107-107, div. A, title X, Sec. 1048(c)(7), Dec. 28, 2001, 115

Stat. 1226.)

-MISC1-

Historical and Revision Notes

1958 Act

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

1405 (No source). (No source).

-------------------------------

The amendment reflects section 11 of the Act of May 20, 1958,

Pub. L. 85-422 (72 Stat. 130).

1962 ACT

The change corrects a typographical error.

1982 ACT

This amends 10:1405 to correct an inadvertent error in the

codification of title 10 in 1956 relating to retirement pay of

warrant officers advanced on the retired list. Under provisions of

law first enacted in 1948 through the codification of title 10 in

1956 and until 1965, warrant officers advanced on the retired list

received credit for inactive service in the computation of

retirement pay. The Comptroller General in 1965 (B-156576) held in

effect that computation of such retirement pay was governed by the

wording of new title 10 that based the computation on years of

active service only even though this had the result of making a

substantive change. The Armed Services Committee of the House of

Representatives concurs that an error was made in the codification

of title 10 and has indicated that corrective legislative action is

properly a responsibility of the House Judiciary Committee. See,

also, the amendments to 10:3992 and 8992 made by sections 1(40) and

1(52), respectively.

AMENDMENTS

2001 - Subsec. (c)(1). Pub. L. 107-107 substituted ''October 5,

1994,'' for ''the date of the enactment of the National Defense

Authorization Act for Fiscal Year 1995,''.

1996 - Subsec. (c). Pub. L. 104-106, as amended by Pub. L.

104-201, substituted ''Made Up or Excluded'' for ''Made Up'' in

heading, designated existing provisions as par. (1), substituted

''section 972(a) of this title, or required to be made up by an

enlisted member of the Navy, Marine Corps, or Coast Guard under

that section with respect to a period of time after the date of the

enactment of the National Defense Authorization Act for Fiscal Year

1995,'' for ''section 972 of this title'', and added par. (2).

1994 - Subsec. (a)(3). Pub. L. 103-337, Sec. 1662(j)(3),

substituted ''12733'' for ''1333'' and ''12731'' for ''1331''.

Subsec. (c). Pub. L. 103-337, Sec. 635(d), added subsec. (c).

1986 - Pub. L. 99-348 designated existing provision as subsec.

(a), inserted heading, and in provision preceding par. (1)

substituted ''the computation of the years of service of a member

of the armed forces under a provision of this title providing for

such computation to be made under this section, the years of

service of the member'' for ''section 1401 (formulas 4 and 5), 3991

(formula A), 3992 (formula B), 6151(b), 6323(e), 6325(a)(2) and

(b)(2), 6383(c)(2), 8991 (formula A), or 8992 (formula B) of this

title, the years of service of a member of the armed forces'', and

added subsec. (b).

1982 - Pub. L. 97-295, Sec. 1(17), substituted ''3991 (formula

A), 3992 (formula B)'' for ''3991 (formula B)'', struck out ''or''

first time appearing, and substituted ''8991 (formula A), or 8992

(formula B)'' for ''8991 (formula B)''.

1980 - Pub. L. 96-513 struck out provisions that permitted the

crediting of certain periods of constructive service in computing

the retired pay of medical and dental officers and provided that

members would compute their years of service for retirement pay by

adding (1) years of active service, (2) years of service not

otherwise counted with which the member was entitled to be credited

on May 31, 1958, and (3) years of service not otherwise counted

with which he would be credited under section 1333 if he were

entitled to retired pay under section 1331.

1967 - Pub. L. 90-130 struck out references to section 6399(c)(2)

of this title.

1962 - Pub. L. 87-651 struck out references to sections 6391(h)

and 6394(g)(2) of this title and inserted a reference to section

6394(h) of this title.

Pub. L. 87-649 substituted ''section 205(a)(7) and (8) of title

37'' for ''section 233(a)(7) of title 37'' in cl. (2).

1958 - Pub. L. 85-861 inserted references to sections 6323(e) and

6391(h) of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-106 effective Feb. 10, 1996, and

applicable to any period of time covered by section 972 of this

title that occurs after that date, see section 561(e) of Pub. L.

104-106, set out as a note under section 972 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 635(e) of Pub. L. 103-337 provided that: ''This section

(amending this section and sections 3925, 3991, 3992, 6333, 8925,

8991, and 8992 of this title) shall apply to -

''(1) the computation of the retired pay of any enlisted member

who retires on or after the date of the enactment of this Act

(Oct. 5, 1994);

''(2) the computation of the retainer pay of any enlisted

member who is transferred to the Fleet Reserve or the Fleet

Marine Corps Reserve on or after the date of the enactment of

this Act; and

''(3) the recomputation of the retired pay of any enlisted

member who is advanced on the retired list on or after the date

of the enactment of this Act.''

Amendment by section 1662(j)(3) of Pub. L. 103-337 effective Dec.

1, 1994, except as otherwise provided, see section 1691 of Pub. L.

103-337, set out as an Effective Date note under section 10001 of

this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Sept. 15, 1981, but the

authority to prescribe regulations under the amendment by Pub. L.

96-513 effective on Dec. 12, 1980, see section 701 of Pub. L.

96-513, set out as a note under section 101 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-649 effective Nov. 1, 1962, see section

15 of Pub. L. 87-649, set out as a note preceding section 101 of

Title 37, Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE

Section effective June 1, 1958, see section 9 of Pub. L. 85-422.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC5-

TRANSITION PROVISIONS UNDER DEFENSE OFFICER PERSONNEL MANAGEMENT

ACT

For provisions to prevent extinction or premature termination of

rights, duties, penalties, or proceedings that existed or were

begun prior to the effective date of Pub. L. 96-513 and otherwise

to allow for an orderly transition to the system of officer

personnel management put in place under Pub. L. 96-513, see section

601 et seq. of Pub. L. 96-513, set out as a note under section 611

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1175, 1401, 1414, 3991,

3992, 6151, 6333, 6334 of this title; title 14 section 423; title

33 section 3045; title 37 section 322.

-CITE-

10 USC Sec. 1406 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1406. Retired pay base for members who first became members

before September 8, 1980: final basic pay

-STATUTE-

(a) Use of Retired Pay Base in Computing Retired Pay. -

(1) General rule. - The retired pay or retainer pay of any

person entitled to that pay who first became a member of a

uniformed service before September 8, 1980, is computed using the

retired pay base or retainer pay base determined under this

section.

(2) Exception for recomputation. - Recomputation of retired or

retainer pay to reflect later active duty is provided for under

section 1402 of this title without reference to a retired pay

base or retainer pay base.

(b) Retirement Under Subtitle A or E. -

(1) Disability, warrant officer, and dopma retirement. - In the

case of a person whose retired pay is computed under this

subtitle, the retired pay base is determined in accordance with

the following table.

---------------------------------------------------------------------

For a member entitled to retired The retired pay base is:

pay under section:

---------------------------------------------------------------------

1201 1202 1204 1205 Monthly basic pay (FOOTNOTE 1)

of grade to which member is

entitled under section 1372 or

to which he was entitled on day

before retirement or placement

on temporary disability retired

list, whichever is higher.

----------------------------------------------------------------

580 1263 1293 1305 Monthly basic pay to which member

would have been entitled if he

had served on active duty in his

retired grade on day before

retirement, or if the pay of

that grade is less than the pay

of any warrant grade

satisfactorily held by him on

active duty, the monthly basic

pay of that warrant officer

grade.

----------------------------------------------------------------

633 634 635 636 1251 Monthly basic pay (FOOTNOTE 2)

of member's retired grade.

(FOOTNOTE 3)

-------------------------------

(FOOTNOTE 1) Compute at rates applicable on date of retirement or

date when member's name was placed on temporary disability retired

list, as the case may be.

(FOOTNOTE 2) Compute at rates applicable on date of retirement.

(FOOTNOTE 3) For the purposes of this subsection, determine

member's retired grade as if sections 3962 and 8962 did not apply.

(2) Non-regular service retirement. - In the case of a person

who is entitled to retired pay under section 12731 of this title,

the retired pay base is the monthly basic pay, determined at the

rates applicable on the date when retired pay is granted, of the

highest grade held satisfactorily by the person at any time in

the armed forces. For purposes of the preceding sentence, the

highest grade in which a person served satisfactorily as an

officer shall be determined in accordance with section 1370(d) of

this title.

(c) Voluntary Retirement for Members of the Army. -

(1) In general. - In the case of a member whose retired pay is

computed under section 3991 of this title or who is entitled to

retired pay computed under section 3992 of this title, the

retired pay base is determined in accordance with the following

table.

---------------------------------------------------------------------

For a member entitled to retired The retired pay base is:

pay under section:

---------------------------------------------------------------------

3911 3918 3920 3924 Monthly basic pay of member's

retired grade. (FOOTNOTE 1)

----------------------------------------------------------------

3914 3917 Monthly basic pay to which member

was entitled on day before he

retired.

----------------------------------------------------------------

3992 Monthly basic pay of grade to

which member is advanced on

retired list.

-------------------------------

(FOOTNOTE 1) For the purposes of this subsection, determine

member's retired grade as if section 3962 did not apply.

(2) Rate of basic pay to be used. - The rate of basic pay to be

used under paragraph (1) is the rate applicable on the date of

the member's retirement.

(d) Retirement for Members of the Navy and Marine Corps. - In the

case of a member whose retired pay is computed under section 6333

of this title, who is advanced on the retired list under section

6151 or 6334 of this title, or who is entitled to retainer pay

under section 6330 of this title, the retired pay base or retainer

pay base is determined in accordance with the following table.

---------------------------------------------------------------------

For a member entitled to retired The retired pay base or retainer

or retainer pay under section: pay base is:

---------------------------------------------------------------------

6323 6325(a) 6383 Basic pay of the grade in which

the member retired. (FOOTNOTE 1)

----------------------------------------------------------------

6325(b) Basic pay of the grade the

officer would hold if he had not

received an appointment

described in section 6325(b).

----------------------------------------------------------------

6326 Basic pay of the pay grade in

which the member was serving on

the day before retirement.

----------------------------------------------------------------

6330 Basic pay that the member

received at the time of transfer

to the Fleet Reserve or Fleet

Marine Corps Reserve.

----------------------------------------------------------------

6151 Basic pay of the grade to which

the member is advanced under

section 6151.

----------------------------------------------------------------

6334 Basic pay of the grade to which

the member is advanced under

section 6334.

-------------------------------

(FOOTNOTE 1) If the rate specified is less than the pay of any

warrant officer grade satisfactorily held by the member on active

duty, use the monthly basic pay of that warrant officer grade.

(e) Voluntary Retirement for Members of the Air Force. -

(1) In general. - In the case of a member whose retired pay is

computed under section 8991 of this title or who is entitled to

retired pay computed under section 8992 of this title, the

retired pay base is determined in accordance with the following

table.

---------------------------------------------------------------------

For a member entitled to retired The retired pay base is:

pay under section:

---------------------------------------------------------------------

8911 8918 8920 8924 Monthly basic pay of member's

retired grade. (FOOTNOTE 1)

----------------------------------------------------------------

8914 8917 Monthly basic pay to which member

was entitled on day before he

retired.

----------------------------------------------------------------

8992 Monthly basic pay of grade to

which member is advanced on

retired list.

-------------------------------

(FOOTNOTE 1) For the purposes of this subsection, determine

member's retired grade as if section 8962 did not apply.

(2) Rate of basic pay to be used. - The rate of basic pay to be

used under paragraph (1) is the rate applicable on the date of

the member's retirement.

(f) Coast Guard. - In the case of a member who is retired under

any section of title 14, the member's retired pay is computed under

section 423(a) of title 14 in the manner provided in that section.

(g) Commissioned Corps of National Oceanic and Atmospheric

Administration. - In the case of an officer whose retired pay is

computed under section 305 (FOOTNOTE 1) of the National Oceanic and

Atmospheric Administration Commissioned Officers Act of 2002, the

retired pay base is the basic pay of the rank with which the

officer retired.

(FOOTNOTE 1) See References in Text note below.

(h) Commissioned Corps of Public Health Service. - In the case of

an officer who is retired under section 210(g) or 211(a) of the

Public Health Service Act (42 U.S.C. 211(g), 212(a)), the retired

pay base is determined as follows:

(1) Mandatory retirement. - If the officer is retired under

section 210(g) of such Act, the retired pay base is the basic pay

of the permanent grade held by the officer at the time of

retirement.

(2) Voluntary retirement. - If the officer is retired under

section 211(a) of such Act, the retired pay base is the basic pay

of the highest grade held by the officer and in which, in the

case of a temporary promotion to such grade, the officer has

performed active duty for not less than six months.

(i) Special Rule for Former Chairmen and Vice Chairmen of the

JCS, Chiefs of Service, and Senior Enlisted Members. -

(1) In general. - For the purposes of subsections (b) through

(e), in determining the rate of basic pay to apply in the

determination of the retired pay base of a member who has served

as Chairman or Vice Chairman of the Joint Chiefs of Staff, as a

Chief of Service, or as the senior enlisted member of an armed

force, the highest rate of basic pay applicable to the member

while serving in that position shall be used, if that rate is

higher than the rate otherwise authorized by this section.

(2) Exception for members reduced in grade or who do not serve

satisfactorily. - Paragraph (1) does not apply in the case of a

member who, while or after serving in a position specified in

that paragraph and by reason of conduct occurring after October

16, 1998 -

(A) in the case of an enlisted member, is reduced in grade as

the result of a court-martial sentence, nonjudicial punishment,

or other administrative process; or

(B) in the case an officer, is not certified by the Secretary

of Defense under section 1370(c) of this title as having served

on active duty satisfactorily in the grade of general or

admiral, as the case may be, while serving in that position.

(3) Definitions. - In this subsection:

(A) The term ''Chief of Service'' means any of the following:

(i) Chief of Staff of the Army.

(ii) Chief of Naval Operations.

(iii) Chief of Staff of the Air Force.

(iv) Commandant of the Marine Corps.

(v) Commandant of the Coast Guard.

(B) The term ''senior enlisted member'' means any of the

following:

(i) Sergeant Major of the Army.

(ii) Master Chief Petty Officer of the Navy.

(iii) Chief Master Sergeant of the Air Force.

(iv) Sergeant Major of the Marine Corps.

(v) Master Chief Petty Officer of the Coast Guard.

-SOURCE-

(Added Pub. L. 99-348, title I, Sec. 104(b), July 1, 1986, 100

Stat. 686; amended Pub. L. 100-180, div. A, title V, Sec.

512(d)(2), title XIII, Sec. 1314(b)(6), Dec. 4, 1987, 101 Stat.

1090, 1175; Pub. L. 100-456, div. A, title XII, Sec. 1233(c),

Sept. 29, 1988, 102 Stat. 2057; Pub. L. 102-190, div. A, title XI,

Sec. 1131(7), Dec. 5, 1991, 105 Stat. 1506; Pub. L. 103-337, div.

A, title XVI, Sec. 1662(j)(4), Oct. 5, 1994, 108 Stat. 3004; Pub.

L. 105-85, div. A, title X, Sec. 1073(a)(23), Nov. 18, 1997, 111

Stat. 1901; Pub. L. 105-261, div. A, title VI, Sec. 646, Oct. 17,

1998, 112 Stat. 2050; Pub. L. 106-65, div. A, title X, Sec.

1066(a)(11), Oct. 5, 1999, 113 Stat. 771; Pub. L. 107-372, title

II, Sec. 272(a), Dec. 19, 2002, 116 Stat. 3094.)

-REFTEXT-

REFERENCES IN TEXT

Section 305 of the National Oceanic and Atmospheric

Administration Commissioned Officers Act of 2002, referred to in

subsec. (g), probably means section 245 of title II of Pub. L.

107-372, known as the National Oceanic and Atmospheric

Administration Commissioned Officers Act of 2002, which is

classified to section 3045 of Title 33, Navigation and Navigable

Waters. That Act does not contain a section 305, and section 245

relates to computation of retired pay.

-MISC2-

PRIOR PROVISIONS

A prior section 1406 was renumbered section 12738 of this title.

AMENDMENTS

2002 - Subsec. (g). Pub. L. 107-372 substituted ''section 305 of

the National Oceanic and Atmospheric Administration Commissioned

Officers Act of 2002'' for ''section 16 of the Coast and Geodetic

Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853o)''

1999 - Subsec. (i)(2). Pub. L. 106-65 substituted ''after October

16, 1998'' for ''on or after the date of the enactment of the Strom

Thurmond National Defense Authorization Act for Fiscal Year 1999''

in introductory provisions.

1998 - Subsec. (i)(2), (3). Pub. L. 105-261 added par. (2) and

redesignated former par. (2) as (3).

1997 - Subsec. (b)(1). Pub. L. 105-85 substituted ''3962 and

8962'' for ''3962(b) and 8962(b)'' in footnote 3 in table.

Subsec. (c)(1). Pub. L. 105-85, Sec. 1073(a)(23)(A), substituted

''3962'' for ''3962(b)'' in footnote 1 in table.

Subsec. (e)(1). Pub. L. 105-85, Sec. 1073(a)(23)(B), substituted

''8962'' for ''8962(b)'' in footnote 1 in table.

1994 - Subsec. (b). Pub. L. 103-337 substituted ''Subtitle A or

E'' for ''Subtitle A'' in subsec. heading, designated existing

provisions as par. (1), inserted par. (1) heading, in table struck

out item for section 1331 which related to monthly basic pay of

highest grade held satisfactorily by person at any time in armed

forces, renumbered footnotes 3 and 4 as 2 and 3, respectively, and

struck out former footnote 2 which provided for computations at

rates applicable on date when retired pay is granted, and added

par. (2).

1991 - Subsec. (b). Pub. L. 102-190 substituted ''580'' for

''564'' in table.

1988 - Subsec. (b). Pub. L. 100-456 substituted ''satisfactorily

by person'' for ''satisfactory by person'' in item relating to

section 1331 in table.

1987 - Subsec. (d). Pub. L. 100-180, Sec. 512(d)(2), inserted

''or 6334'' after ''6151'' in text, and inserted item relating to

section 6334 at end of table.

Subsec. (i). Pub. L. 100-180, Sec. 1314(b)(6), inserted ''and

Vice Chairmen'' after ''Chairmen'' in heading and inserted ''or

Vice Chairman'' after ''Chairman'' in par. (1).

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-190 effective Feb. 1, 1992, see section

1132 of Pub. L. 102-190, set out as a note under section 521 of

this title.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC5-

GRADE ON TRANSFER TO RETIRED RESERVE

Section 1688 of title XVI of Pub. L. 103-337 provided that: ''In

determining the highest grade held satisfactorily by a person at

any time in the Armed Forces for the purposes of paragraph (2) of

section 1406(b) of title 10, United States Code, as added by this

title, the requirement for satisfactory service on the reserve

active-status list contained in section 1370(d) of title 10, United

States Code, as added by this title, shall apply only to reserve

commissioned officers who are promoted to a higher grade as a

result of selection for promotion under chapter 36 of that title or

under chapter 1405 of that title, as added by this title, or having

been found qualified for Federal recognition in a higher grade

under chapter 3 of title 32, United States Code, after the

effective date of this title (see Effective Date note set out under

section 10001 of this title).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1401, 1401a, 1407, 3991,

3992, 6151, 6333, 6334, 8991, 8992, 12739 of this title; title 33

section 3045; title 42 section 211.

-CITE-

10 USC Sec. 1407 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1407. Retired pay base for members who first became members

after September 7, 1980: high-36 month average

-STATUTE-

(a) Use of Retired Pay Base in Computing Retired Pay. - The

retired pay or retainer pay of any person entitled to that pay who

first became a member of a uniformed service after September 7,

1980, is computed using the retired pay base or retainer pay base

determined under this section.

(b) High-Three Average. - Except as provided in subsection (f),

the retired pay base or retainer pay base of a person under this

section is the person's high-three average determined under

subsection (c) or (d).

(c) Computation of High-Three Average for Members Entitled to

Retired or Retainer Pay for Regular Service. -

(1) General rule. - The high-three average of a member entitled

to retired or retainer pay under any provision of law other than

section 1204 or 1205 or section 12731 of this title is the amount

equal to -

(A) the total amount of monthly basic pay to which the member

was entitled for the 36 months (whether or not consecutive) out

of all the months of active service of the member for which the

monthly basic pay to which the member was entitled was the

highest, divided by

(B) 36.

(2) Special rule for short-term disability retirees. - In the

case of a member who is entitled to retired pay under section

1201 or 1202 of this title and who has completed less than 36

months of active service, the member's high-three average

(notwithstanding paragraph (1)) is the amount equal to -

(A) the total amount of basic pay to which the member was

entitled during the period of the member's active service,

divided by

(B) the number of months (including any fraction thereof) of

the member's active service.

(d) Computation of High-Three Average for Members and Former

Members Entitled to Retired Pay for Nonregular Service. -

(1) Retired pay under chapter 1223. - The high-three average of

a member or former member entitled to retired pay under section

12731 of this title is the amount equal to -

(A) the total amount of monthly basic pay to which the member

or former member was entitled during the member or former

member's high-36 months (or to which the member or former

member would have been entitled if the member or former member

had served on active duty during the entire period of the

member or former member's high-36 months), divided by

(B) 36.

(2) Nonregular service disability retired pay. - The high-three

average of a member entitled to retired pay under section 1204 or

1205 of this title is the amount equal to -

(A) the total amount of monthly basic pay to which the member

was entitled during the member's high-36 months (or to which

the member would have been entitled if the member had served on

active duty during the entire period of the member's high-36

months), divided by

(B) 36.

(3) Special rule for short-term disability retirees. - In the

case of a member who is entitled to retired pay under section

1204 or 1205 of this title and who was a member for less than 36

months before being retired under that section, the member's

high-three average (notwithstanding paragraph (2)) is the amount

equal to -

(A) the total amount of basic pay to which the member was

entitled during the entire period the member was a member of a

uniformed service before being so retired (or to which the

member would have been entitled if the member had served on

active duty during the entire period the member was a member of

a uniformed service before being so retired), divided by

(B) the number of months (including any fraction thereof)

which the member was a member before being so retired.

(4) High-36 months. - The high-36 months of a member or former

member whose retired pay is covered by paragraph (1) or (2) are

the 36 months (whether or not consecutive) out of all the months

before the member or former member became entitled to retired pay

for which the monthly basic pay to which the member or former

member was entitled (or would have been entitled if serving on

active duty during those months) was the highest. In the case of

a former member, only months during which the former member was a

member of a uniformed service may be used for purposes of the

preceding sentence.

(e) Limitation for Enlisted Members Retiring With Less Than 30

Years' Service. - In the case of a member who is retired under

section 3914 or 8914 of this title or who is transferred to the

Fleet Reserve or Fleet Marine Corps Reserve under section 6330 of

this title, the member's high-36 average shall be computed using

only rates of basic pay applicable to months of active duty of the

member as an enlisted member.

(f) Exception for Enlisted Members Reduced in Grade and Officers

Who Do Not Serve Satisfactorily in Highest Grade Held. -

(1) Computation based on pre-high-three rules. - In the case of

a member or former member described in paragraph (2), the retired

pay base or retainer pay base is determined under section 1406 of

this title in the same manner as if the member or former member

first became a member of a uniformed service before September 8,

1980.

(2) Affected members. - A member or former member referred to

in paragraph (1) is a member or former member who by reason of

conduct occurring after October 30, 2000 -

(A) in the case of a member retired in an enlisted grade or

transferred to the Fleet Reserve or Fleet Marine Corps Reserve,

was at any time reduced in grade as the result of a

court-martial sentence, nonjudicial punishment, or an

administrative action, unless the member was subsequently

promoted to a higher enlisted grade or appointed to a

commissioned or warrant grade; and

(B) in the case of an officer, is retired in a grade lower

than the highest grade in which served by reason of denial of a

determination or certification under section 1370 of this title

that the officer served on active duty satisfactorily in that

grade.

(3) Special rule for enlisted members. - In the case of a

member who retires within three years after having been reduced

in grade as described in paragraph (2)(A), who retires in an

enlisted grade that is lower than the grade from which reduced,

and who would be subject to paragraph (1) but for a subsequent

promotion to a higher enlisted grade or a subsequent appointment

to a warrant or commissioned grade, the rates of basic pay used

in the computation of the member's high-36 average for the period

of the member's service in a grade higher than the grade in which

retired shall be the rates of pay that would apply if the member

had been serving for that period in the grade in which retired.

-SOURCE-

(Added Pub. L. 99-348, title I, Sec. 104(b), July 1, 1986, 100

Stat. 689; amended Pub. L. 101-189, div. A, title VI, Sec. 651(a),

(b)(2), Nov. 29, 1989, 103 Stat. 1459, 1460; Pub. L. 103-337, div.

A, title XVI, Sec. 1662(j)(5), Oct. 5, 1994, 108 Stat. 3004; Pub.

L. 104-106, div. A, title XV, Sec. 1501(c)(15), Feb. 10, 1996, 110

Stat. 499; Pub. L. 106-398, Sec. 1 ((div. A), title VI, Sec. 651),

Oct. 30, 2000, 114 Stat. 1654, 1654A-163; Pub. L. 107-107, div. A,

title X, Sec. 1048(c)(8), Dec. 28, 2001, 115 Stat. 1226.)

-MISC1-

PRIOR PROVISIONS

A prior section 1407, added Pub. L. 96-342, title VIII, Sec.

813(a)(1), Sept. 8, 1980, 94 Stat. 1100; amended Pub. L. 96-513,

title I, Sec. 113(c), title V, Sec. 501(21), 511(53), Dec. 12,

1980, 94 Stat. 2877, 2908, 2925, related to determination of

retired base pay, prior to repeal by Pub. L. 99-348, Sec. 104(b).

AMENDMENTS

2001 - Subsec. (f)(2). Pub. L. 107-107 substituted ''October 30,

2000 - '' for ''the date of the enactment of this subsection - ''

in introductory provisions.

2000 - Subsec. (b). Pub. L. 106-398, Sec. 1 ((div. A), title VI,

Sec. 651(1)), substituted ''Except as provided in subsection (f),

the retired pay base'' for ''The retired pay base''.

Subsec. (f). Pub. L. 106-398, Sec. 1 ((div. A), title VI, Sec.

651(2)), added subsec. (f).

1996 - Subsec. (c)(1). Pub. L. 104-106, Sec. 1501(c)(15)(A),

substituted ''section 12731'' for ''section 1331''.

Subsec. (d)(1). Pub. L. 104-106 substituted in heading ''chapter

1223'' for ''chapter 67'' and in text ''section 12731'' for

''section 1331''.

1994 - Subsec. (c)(2)(B). Pub. L. 103-337, Sec. 1662(j)(5)(A),

which directed substitution of ''chapter 1223'' for ''chapter 67'',

could not be executed because the words ''chapter 67'' did not

appear subsequent to amendment by Pub. L. 101-189, Sec. 651(a)(2),

(4). See 1989 Amendment note below.

Subsec. (f)(2). Pub. L. 103-337, Sec. 1662(j)(5)(B), which

directed amendment of subsec. (f)(2) by substituting ''Chapter

1223'' for ''Chapter 67'' in heading and ''section 12731'' for

''section 1331'' in text, could not be executed because of previous

repeal of subsec. (f) by Pub. L. 101-189, Sec. 651(a)(2). See 1989

Amendment note below.

1989 - Subsec. (b). Pub. L. 101-189, Sec. 651(a)(1), (b)(2),

substituted ''person'' for ''member'', ''person's'' for

''member's'', and ''subsection (c) or (d)'' for ''subsection (c)''.

Subsec. (c). Pub. L. 101-189, Sec. 651(a)(2), (4), added subsec.

(c) and struck out former subsec. (c) which related to computation

of high-three average.

Subsec. (d). Pub. L. 101-189, Sec. 651(a)(4), added subsec. (d).

Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 101-189, Sec. 651(a)(2), (3), redesignated

subsec. (d) as (e) and struck out former subsec. (e) which related

to special rules for short-term disability retirees.

Subsecs. (f), (g). Pub. L. 101-189, Sec. 651(a)(2), struck out

subsec. (f) which related to special rule for members retiring with

non-regular service, and subsec. (g) which defined the term ''years

of creditable service''.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1501(c) of Pub. L. 104-106 provided that the amendment

made by that section is effective as of Dec. 1, 1994, and as if

included as an amendment made by the Reserve Officer Personnel

Management Act, title XVI of Pub. L. 103-337, as originally

enacted.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1401, 1401a, 1402a, 3991,

3992, 6151, 6333, 6334, 8991, 8992, 12739 of this title; title 14

sections 357, 423, 424; title 33 section 3045; title 42 sections

211, 212.

-CITE-

10 USC Sec. 1408 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1408. Payment of retired or retainer pay in compliance with

court orders

-STATUTE-

(a) Definitions. - In this section:

(1) The term ''court'' means -

(A) any court of competent jurisdiction of any State, the

District of Columbia, the Commonwealth of Puerto Rico, Guam,

American Samoa, the Virgin Islands, the Northern Mariana

Islands, and the Trust Territory of the Pacific Islands;

(B) any court of the United States (as defined in section 451

of title 28) having competent jurisdiction;

(C) any court of competent jurisdiction of a foreign country

with which the United States has an agreement requiring the

United States to honor any court order of such country; and

(D) any administrative or judicial tribunal of a State

competent to enter orders for support or maintenance (including

a State agency administering a program under a State plan

approved under part D of title IV of the Social Security Act),

and, for purposes of this subparagraph, the term ''State''

includes the District of Columbia, the Commonwealth of Puerto

Rico, the Virgin Islands, Guam, and American Samoa.

(2) The term ''court order'' means a final decree of divorce,

dissolution, annulment, or legal separation issued by a court, or

a court ordered, ratified, or approved property settlement

incident to such a decree (including a final decree modifying the

terms of a previously issued decree of divorce, dissolution,

annulment, or legal separation, or a court ordered, ratified, or

approved property settlement incident to such previously issued

decree), or a support order, as defined in section 453(p) of the

Social Security Act (42 U.S.C. 653(p)), which -

(A) is issued in accordance with the laws of the jurisdiction

of that court;

(B) provides for -

(i) payment of child support (as defined in section

459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)));

(ii) payment of alimony (as defined in section 459(i)(3) of

the Social Security Act (42 U.S.C. 659(i)(3))); or

(iii) division of property (including a division of

community property); and

(C) in the case of a division of property, specifically

provides for the payment of an amount, expressed in dollars or

as a percentage of disposable retired pay, from the disposable

retired pay of a member to the spouse or former spouse of that

member.

(3) The term ''final decree'' means a decree from which no

appeal may be taken or from which no appeal has been taken within

the time allowed for taking such appeals under the laws

applicable to such appeals, or a decree from which timely appeal

has been taken and such appeal has been finally decided under the

laws applicable to such appeals.

(4) The term ''disposable retired pay'' means the total monthly

retired pay to which a member is entitled less amounts which -

(A) are owed by that member to the United States for previous

overpayments of retired pay and for recoupments required by law

resulting from entitlement to retired pay;

(B) are deducted from the retired pay of such member as a

result of forfeitures of retired pay ordered by a court-martial

or as a result of a waiver of retired pay required by law in

order to receive compensation under title 5 or title 38;

(C) in the case of a member entitled to retired pay under

chapter 61 of this title, are equal to the amount of retired

pay of the member under that chapter computed using the

percentage of the member's disability on the date when the

member was retired (or the date on which the member's name was

placed on the temporary disability retired list); or

(D) are deducted because of an election under chapter 73 of

this title to provide an annuity to a spouse or former spouse

to whom payment of a portion of such member's retired pay is

being made pursuant to a court order under this section.

(5) The term ''member'' includes a former member entitled to

retired pay under section 12731 of this title.

(6) The term ''spouse or former spouse'' means the husband or

wife, or former husband or wife, respectively, of a member who,

on or before the date of a court order, was married to that

member.

(7) The term ''retired pay'' includes retainer pay.

(b) Effective Service of Process. - For the purposes of this

section -

(1) service of a court order is effective if -

(A) an appropriate agent of the Secretary concerned

designated for receipt of service of court orders under

regulations prescribed pursuant to subsection (i) or, if no

agent has been so designated, the Secretary concerned, is

personally served or is served by facsimile or electronic

transmission or by mail;

(B) the court order is regular on its face;

(C) the court order or other documents served with the court

order identify the member concerned and include, if possible,

the social security number of such member; and

(D) the court order or other documents served with the court

order certify that the rights of the member under the Soldiers'

and Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 501 et

seq.) were observed; and

(2) a court order is regular on its face if the order -

(A) is issued by a court of competent jurisdiction;

(B) is legal in form; and

(C) includes nothing on its face that provides reasonable

notice that it is issued without authority of law.

(c) Authority for Court To Treat Retired Pay as Property of the

Member and Spouse. - (1) Subject to the limitations of this

section, a court may treat disposable retired pay payable to a

member for pay periods beginning after June 25, 1981, either as

property solely of the member or as property of the member and his

spouse in accordance with the law of the jurisdiction of such

court. A court may not treat retired pay as property in any

proceeding to divide or partition any amount of retired pay of a

member as the property of the member and the member's spouse or

former spouse if a final decree of divorce, dissolution, annulment,

or legal separation (including a court ordered, ratified, or

approved property settlement incident to such decree) affecting the

member and the member's spouse or former spouse (A) was issued

before June 25, 1981, and (B) did not treat (or reserve

jurisdiction to treat) any amount of retired pay of the member as

property of the member and the member's spouse or former spouse.

(2) Notwithstanding any other provision of law, this section does

not create any right, title, or interest which can be sold,

assigned, transferred, or otherwise disposed of (including by

inheritance) by a spouse or former spouse. Payments by the

Secretary concerned under subsection (d) to a spouse or former

spouse with respect to a division of retired pay as the property of

a member and the member's spouse under this subsection may not be

treated as amounts received as retired pay for service in the

uniformed services.

(3) This section does not authorize any court to order a member

to apply for retirement or retire at a particular time in order to

effectuate any payment under this section.

(4) A court may not treat the disposable retired pay of a member

in the manner described in paragraph (1) unless the court has

jurisdiction over the member by reason of (A) his residence, other

than because of military assignment, in the territorial

jurisdiction of the court, (B) his domicile in the territorial

jurisdiction of the court, or (C) his consent to the jurisdiction

of the court.

(d) Payments by Secretary Concerned to (or for Benefit of) Spouse

or Former Spouse. - (1) After effective service on the Secretary

concerned of a court order providing for the payment of child

support or alimony or, with respect to a division of property,

specifically providing for the payment of an amount of the

disposable retired pay from a member to the spouse or a former

spouse of the member, the Secretary shall make payments (subject to

the limitations of this section) from the disposable retired pay of

the member to the spouse or former spouse (or for the benefit of

such spouse or former spouse to a State disbursement unit

established pursuant to section 454B of the Social Security Act or

other public payee designated by a State, in accordance with part D

of title IV of the Social Security Act, as directed by court order,

or as otherwise directed in accordance with such part D) in an

amount sufficient to satisfy the amount of child support and

alimony set forth in the court order and, with respect to a

division of property, in the amount of disposable retired pay

specifically provided for in the court order. In the case of a

spouse or former spouse who, pursuant to section 408(a)(3) of the

Social Security Act (42 U.S.C. 608(a)(4)), assigns to a State the

rights of the spouse or former spouse to receive support, the

Secretary concerned may make the child support payments referred to

in the preceding sentence to that State in amounts consistent with

that assignment of rights. In the case of a member entitled to

receive retired pay on the date of the effective service of the

court order, such payments shall begin not later than 90 days after

the date of effective service. In the case of a member not

entitled to receive retired pay on the date of the effective

service of the court order, such payments shall begin not later

than 90 days after the date on which the member first becomes

entitled to receive retired pay.

(2) If the spouse or former spouse to whom payments are to be

made under this section was not married to the member for a period

of 10 years or more during which the member performed at least 10

years of service creditable in determining the member's eligibility

for retired pay, payments may not be made under this section to the

extent that they include an amount resulting from the treatment by

the court under subsection (c) of disposable retired pay of the

member as property of the member or property of the member and his

spouse.

(3) Payments under this section shall not be made more frequently

than once each month, and the Secretary concerned shall not be

required to vary normal pay and disbursement cycles for retired pay

in order to comply with a court order.

(4) Payments from the disposable retired pay of a member pursuant

to this section shall terminate in accordance with the terms of the

applicable court order, but not later than the date of the death of

the member or the date of the death of the spouse or former spouse

to whom payments are being made, whichever occurs first.

(5) If a court order described in paragraph (1) provides for a

division of property (including a division of community property)

in addition to an amount of child support or alimony or the payment

of an amount of disposable retired pay as the result of the court's

treatment of such pay under subsection (c) as property of the

member and his spouse, the Secretary concerned shall pay (subject

to the limitations of this section) from the disposable retired pay

of the member to the spouse or former spouse of the member, any

part of the amount payable to the spouse or former spouse under the

division of property upon effective service of a final court order

of garnishment of such amount from such retired pay.

(6) In the case of a court order for which effective service is

made on the Secretary concerned on or after August 22, 1996, and

which provides for payments from the disposable retired pay of a

member to satisfy the amount of child support set forth in the

order, the authority provided in paragraph (1) to make payments

from the disposable retired pay of a member to satisfy the amount

of child support set forth in a court order shall apply to payment

of any amount of child support arrearages set forth in that order

as well as to amounts of child support that currently become due.

(7)(A) The Secretary concerned may not accept service of a court

order that is an out-of-State modification, or comply with the

provisions of such a court order, unless the court issuing that

order has jurisdiction in the manner specified in subsection (c)(4)

over both the member and the spouse or former spouse involved.

(B) A court order shall be considered to be an out-of-State

modification for purposes of this paragraph if the order -

(i) modifies a previous court order under this section upon

which payments under this subsection are based; and

(ii) is issued by a court of a State other than the State of

the court that issued the previous court order.

(e) Limitations. - (1) The total amount of the disposable retired

pay of a member payable under all court orders pursuant to

subsection (c) may not exceed 50 percent of such disposable retired

pay.

(2) In the event of effective service of more than one court

order which provide for payment to a spouse and one or more former

spouses or to more than one former spouse, the disposable retired

pay of the member shall be used to satisfy (subject to the

limitations of paragraph (1)) such court orders on a first-come,

first-served basis. Such court orders shall be satisfied (subject

to the limitations of paragraph (1)) out of that amount of

disposable retired pay which remains after the satisfaction of all

court orders which have been previously served.

(3)(A) In the event of effective service of conflicting court

orders under this section which assert to direct that different

amounts be paid during a month to the same spouse or former spouse

of the same member, the Secretary concerned shall -

(i) pay to that spouse from the member's disposable retired pay

the least amount directed to be paid during that month by any

such conflicting court order, but not more than the amount of

disposable retired pay which remains available for payment of

such court orders based on when such court orders were

effectively served and the limitations of paragraph (1) and

subparagraph (B) of paragraph (4);

(ii) retain an amount of disposable retired pay that is equal

to the lesser of -

(I) the difference between the largest amount required by any

conflicting court order to be paid to the spouse or former

spouse and the amount payable to the spouse or former spouse

under clause (i); and

(II) the amount of disposable retired pay which remains

available for payment of any conflicting court order based on

when such court order was effectively served and the

limitations of paragraph (1) and subparagraph (B) of paragraph

(4); and

(iii) pay to that member the amount which is equal to the

amount of that member's disposable retired pay (less any amount

paid during such month pursuant to legal process served under

section 459 of the Social Security Act (42 U.S.C. 659) and any

amount paid during such month pursuant to court orders

effectively served under this section, other than such

conflicting court orders) minus -

(I) the amount of disposable retired pay paid under clause

(i); and

(II) the amount of disposable retired pay retained under

clause (ii).

(B) The Secretary concerned shall hold the amount retained under

clause (ii) of subparagraph (A) until such time as that Secretary

is provided with a court order which has been certified by the

member and the spouse or former spouse to be valid and applicable

to the retained amount. Upon being provided with such an order,

the Secretary shall pay the retained amount in accordance with the

order.

(4)(A) In the event of effective service of a court order under

this section and the service of legal process pursuant to section

459 of the Social Security Act (42 U.S.C. 659), both of which

provide for payments during a month from the same member,

satisfaction of such court orders and legal process from the

retired pay of the member shall be on a first-come, first-served

basis. Such court orders and legal process shall be satisfied out

of moneys which are subject to such orders and legal process and

which remain available in accordance with the limitations of

paragraph (1) and subparagraph (B) of this paragraph during such

month after the satisfaction of all court orders or legal process

which have been previously served.

(B) Notwithstanding any other provision of law, the total amount

of the disposable retired pay of a member payable by the Secretary

concerned under all court orders pursuant to this section and all

legal processes pursuant to section 459 of the Social Security Act

(42 U.S.C. 659) with respect to a member may not exceed 65 percent

of the amount of the retired pay payable to such member that is

considered under section 462 of the Social Security Act (42 U.S.C.

662) to be remuneration for employment that is payable by the

United States.

(5) A court order which itself or because of previously served

court orders provides for the payment of an amount which exceeds

the amount of disposable retired pay available for payment because

of the limit set forth in paragraph (1), or which, because of

previously served court orders or legal process previously served

under section 459 of the Social Security Act (42 U.S.C. 659),

provides for payment of an amount that exceeds the maximum amount

permitted under paragraph (1) or subparagraph (B) of paragraph (4),

shall not be considered to be irregular on its face solely for that

reason. However, such order shall be considered to be fully

satisfied for purposes of this section by the payment to the spouse

or former spouse of the maximum amount of disposable retired pay

permitted under paragraph (1) and subparagraph (B) of paragraph

(4).

(6) Nothing in this section shall be construed to relieve a

member of liability for the payment of alimony, child support, or

other payments required by a court order on the grounds that

payments made out of disposable retired pay under this section have

been made in the maximum amount permitted under paragraph (1) or

subparagraph (B) of paragraph (4). Any such unsatisfied obligation

of a member may be enforced by any means available under law other

than the means provided under this section in any case in which the

maximum amount permitted under paragraph (1) has been paid and

under section 459 of the Social Security Act (42 U.S.C. 659) in any

case in which the maximum amount permitted under subparagraph (B)

of paragraph (4) has been paid.

(f) Immunity of Officers and Employees of United States. - (1)

The United States and any officer or employee of the United States

shall not be liable with respect to any payment made from retired

pay to any member, spouse, or former spouse pursuant to a court

order that is regular on its face if such payment is made in

accordance with this section and the regulations prescribed

pursuant to subsection (i).

(2) An officer or employee of the United States who, under

regulations prescribed pursuant to subsection (i), has the duty to

respond to interrogatories shall not be subject under any law to

any disciplinary action or civil or criminal liability or penalty

for, or because of, any disclosure of information made by him in

carrying out any of his duties which directly or indirectly pertain

to answering such interrogatories.

(g) Notice to Member of Service of Court Order on Secretary

Concerned. - A person receiving effective service of a court order

under this section shall, as soon as possible, but not later than

30 days after the date on which effective service is made, send a

written notice of such court order (together with a copy of such

order) to the member affected by the court order at his last known

address.

(h) Benefits for Dependents Who Are Victims of Abuse by Members

Losing Right to Retired Pay. - (1) If, in the case of a member or

former member of the armed forces referred to in paragraph (2)(A),

a court order provides (in the manner applicable to a division of

property) for the payment of an amount from the disposable retired

pay of that member or former member (as certified under paragraph

(4)) to an eligible spouse or former spouse of that member or

former member, the Secretary concerned, beginning upon effective

service of such court order, shall pay that amount in accordance

with this subsection to such spouse or former spouse.

(2) A spouse or former spouse of a member or former member of the

armed forces is eligible to receive payment under this subsection

if -

(A) the member or former member, while a member of the armed

forces and after becoming eligible to be retired from the armed

forces on the basis of years of service, has eligibility to

receive retired pay terminated as a result of misconduct while a

member involving abuse of a spouse or dependent child (as defined

in regulations prescribed by the Secretary of Defense or, for the

Coast Guard when it is not operating as a service in the Navy, by

the Secretary of Homeland Security); and

(B) the spouse or former spouse -

(i) was the victim of the abuse and was married to the member

or former member at the time of that abuse; or

(ii) is a natural or adopted parent of a dependent child of

the member or former member who was the victim of the abuse.

(3) The amount certified by the Secretary concerned under

paragraph (4) with respect to a member or former member of the

armed forces referred to in paragraph (2)(A) shall be deemed to be

the disposable retired pay of that member or former member for the

purposes of this subsection.

(4) Upon the request of a court or an eligible spouse or former

spouse of a member or former member of the armed forces referred to

in paragraph (2)(A) in connection with a civil action for the

issuance of a court order in the case of that member or former

member, the Secretary concerned shall determine and certify the

amount of the monthly retired pay that the member or former member

would have been entitled to receive as of the date of the

certification -

(A) if the member or former member's eligibility for retired

pay had not been terminated as described in paragraph (2)(A); and

(B) if, in the case of a member or former member not in receipt

of retired pay immediately before that termination of eligibility

for retired pay, the member or former member had retired on the

effective date of that termination of eligibility.

(5) A court order under this subsection may provide that whenever

retired pay is increased under section 1401a of this title (or any

other provision of law), the amount payable under the court order

to the spouse or former spouse of a member or former member

described in paragraph (2)(A) shall be increased at the same time

by the percent by which the retired pay of the member or former

member would have been increased if the member or former member

were receiving retired pay.

(6) Notwithstanding any other provision of law, a member or

former member of the armed forces referred to in paragraph (2)(A)

shall have no ownership interest in, or claim against, any amount

payable under this section to a spouse or former spouse of the

member or former member.

(7)(A) If a former spouse receiving payments under this

subsection with respect to a member or former member referred to in

paragraph (2)(A) marries again after such payments begin, the

eligibility of the former spouse to receive further payments under

this subsection shall terminate on the date of such marriage.

(B) A person's eligibility to receive payments under this

subsection that is terminated under subparagraph (A) by reason of

remarriage shall be resumed in the event of the termination of that

marriage by the death of that person's spouse or by annulment or

divorce. The resumption of payments shall begin as of the first

day of the month in which that marriage is so terminated. The

monthly amount of the payments shall be the amount that would have

been paid if the continuity of the payments had not been

interrupted by the marriage.

(8) Payments in accordance with this subsection shall be made out

of funds in the Department of Defense Military Retirement Fund

established by section 1461 of this title or, in the case of the

Coast Guard, out of funds appropriated to the Department of

Homeland Security for payment of retired pay for the Coast Guard.

(9)(A) A spouse or former spouse of a member or former member of

the armed forces referred to in paragraph (2)(A), while receiving

payments in accordance with this subsection, shall be entitled to

receive medical and dental care, to use commissary and exchange

stores, and to receive any other benefit that a spouse or a former

spouse of a retired member of the armed forces is entitled to

receive on the basis of being a spouse or former spouse, as the

case may be, of a retired member of the armed forces in the same

manner as if the member or former member referred to in paragraph

(2)(A) was entitled to retired pay.

(B) A dependent child of a member or former member referred to in

paragraph (2)(A) who was a member of the household of the member or

former member at the time of the misconduct described in paragraph

(2)(A) shall be entitled to receive medical and dental care, to use

commissary and exchange stores, and to have other benefits provided

to dependents of retired members of the armed forces in the same

manner as if the member or former member referred to in paragraph

(2)(A) was entitled to retired pay.

(C) If a spouse or former spouse or a dependent child eligible or

entitled to receive a particular benefit under this paragraph is

eligible or entitled to receive that benefit under another

provision of law, the eligibility or entitlement of that spouse or

former spouse or dependent child to such benefit shall be

determined under such other provision of law instead of this

paragraph.

(10)(A) For purposes of this subsection, in the case of a member

of the armed forces who has been sentenced by a court-martial to

receive a punishment that will terminate the eligibility of that

member to receive retired pay if executed, the eligibility of that

member to receive retired pay may, as determined by the Secretary

concerned, be considered terminated effective upon the approval of

that sentence by the person acting under section 860(c) of this

title (article 60(c) of the Uniform Code of Military Justice).

(B) If each form of the punishment that would result in the

termination of eligibility to receive retired pay is later

remitted, set aside, or mitigated to a punishment that does not

result in the termination of that eligibility, a payment of

benefits to the eligible recipient under this subsection that is

based on the punishment so vacated, set aside, or mitigated shall

cease. The cessation of payments shall be effective as of the

first day of the first month following the month in which the

Secretary concerned notifies the recipient of such benefits in

writing that payment of the benefits will cease. The recipient may

not be required to repay the benefits received before that

effective date (except to the extent necessary to recoup any amount

that was erroneous when paid).

(11) In this subsection, the term ''dependent child'', with

respect to a member or former member of the armed forces referred

to in paragraph (2)(A), means an unmarried legitimate child,

including an adopted child or a stepchild of the member or former

member, who -

(A) is under 18 years of age;

(B) is incapable of self-support because of a mental or

physical incapacity that existed before becoming 18 years of age

and is dependent on the member or former member for over one-half

of the child's support; or

(C) if enrolled in a full-time course of study in an

institution of higher education recognized by the Secretary of

Defense for the purposes of this subparagraph, is under 23 years

of age and is dependent on the member or former member for over

one-half of the child's support.

(i) Certification Date. - It is not necessary that the date of a

certification of the authenticity or completeness of a copy of a

court order for child support received by the Secretary concerned

for the purposes of this section be recent in relation to the date

of receipt by the Secretary.

(j) Regulations. - The Secretaries concerned shall prescribe

uniform regulations for the administration of this section.

(k) Relationship to Other Laws. - In any case involving an order

providing for payment of child support (as defined in section

459(i)(2) of the Social Security Act) by a member who has never

been married to the other parent of the child, the provisions of

this section shall not apply, and the case shall be subject to the

provisions of section 459 of such Act.

-SOURCE-

(Added Pub. L. 97-252, title X, Sec. 1002(a), Sept. 8, 1982, 96

Stat. 730; amended Pub. L. 98-525, title VI, Sec. 643(a)-(d), Oct.

19, 1984, 98 Stat. 2547; Pub. L. 99-661, div. A, title VI, Sec.

644(a), Nov. 14, 1986, 100 Stat. 3887; Pub. L. 100-26, Sec. 3(3),

7(h)(1), Apr. 21, 1987, 101 Stat. 273, 282; Pub. L. 101-189, div.

A, title VI, Sec. 653(a)(5), title XVI, Sec. 1622(e)(6), Nov. 29,

1989, 103 Stat. 1462, 1605; Pub. L. 101-510, div. A, title V, Sec.

555(a)-(d), (f), (g), Nov. 5, 1990, 104 Stat. 1569, 1570; Pub. L.

102-190, div. A, title X, Sec. 1061(a)(7), Dec. 5, 1991, 105 Stat.

1472; Pub. L. 102-484, div. A, title VI, Sec. 653(a), Oct. 23,

1992, 106 Stat. 2426; Pub. L. 103-160, div. A, title V, Sec.

555(a), (b), title XI, Sec. 1182(a)(2), Nov. 30, 1993, 107 Stat.

1666, 1771; Pub. L. 104-106, div. A, title XV, Sec. 1501(c)(16),

Feb. 10, 1996, 110 Stat. 499; Pub. L. 104-193, title III, Sec.

362(c), 363(c)(1)-(3), Aug. 22, 1996, 110 Stat. 2246, 2249; Pub. L.

104-201, div. A, title VI, Sec. 636, Sept. 23, 1996, 110 Stat.

2579; Pub. L. 105-85, div. A, title X, Sec. 1073(a)(24), (25),

Nov. 18, 1997, 111 Stat. 1901; Pub. L. 107-107, div. A, title X,

Sec. 1048(c)(9), Dec. 28, 2001, 115 Stat. 1226; Pub. L. 107-296,

title XVII, Sec. 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsecs. (a)(1)(D) and

(d)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.

Part D of title IV of the Act is classified generally to part D

(Sec. 651 et seq.) of subchapter IV of chapter 7 of Title 42, The

Public Health and Welfare. Section 454B of the Act is classified to

section 654b of Title 42. For complete classification of this Act

to the Code, see section 1305 of Title 42 and Tables.

The Soldiers' and Sailors' Civil Relief Act, referred to in

subsec. (b)(1)(D), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, as

amended, which is classified to section 501 et seq. of the Appendix

to Title 50, War and National Defense. For complete classification

of this Act to the Code, see section 501 of the Appendix to Title

50 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (h)(2)(A), (8). Pub. L. 107-296 substituted ''of

Homeland Security'' for ''of Transportation''.

2001 - Subsec. (d)(6). Pub. L. 107-107 substituted ''August 22,

1996,'' for ''the date of the enactment of this paragraph''.

1997 - Subsec. (d). Pub. L. 105-85, Sec. 1073(a)(24)(A),

substituted ''to'' for ''To'' in heading.

Subsec. (d)(6). Pub. L. 105-85, Sec. 1073(a)(24)(B), redesignated

par. (6), relating to court order which is out-of-State

modification, as (7).

Subsec. (d)(7). Pub. L. 105-85, Sec. 1073(a)(24)(B), redesignated

par. (6), relating to court order which is out-of-State

modification, as (7).

Subsec. (d)(7)(A). Pub. L. 105-85, Sec. 1073(a)(24)(C),

substituted ''out-of-State'' for ''out-of State''.

Subsec. (g). Pub. L. 105-85, Sec. 1073(a)(25), in heading,

substituted ''to'' for ''To'' and ''on'' for ''On''.

1996 - Subsec. (a)(1)(D). Pub. L. 104-193, Sec. 362(c)(1), added

subpar. (D).

Subsec. (a)(2). Pub. L. 104-193, Sec. 362(c)(2)(A), inserted ''or

a support order, as defined in section 453(p) of the Social

Security Act (42 U.S.C. 653(p)),'' before ''which - ''.

Subsec. (a)(2)(B)(i). Pub. L. 104-193, Sec. 362(c)(2)(B),

substituted ''(as defined in section 459(i)(2) of the Social

Security Act (42 U.S.C. 659(i)(2)))'' for ''(as defined in section

462(b) of the Social Security Act (42 U.S.C. 662(b)))''.

Subsec. (a)(2)(B)(ii). Pub. L. 104-193, Sec. 362(c)(2)(C),

substituted ''(as defined in section 459(i)(3) of the Social

Security Act (42 U.S.C. 659(i)(3)))'' for ''(as defined in section

462(c) of the Social Security Act (42 U.S.C. 662(c)))''.

Subsec. (a)(5). Pub. L. 104-106 substituted ''section 12731'' for

''section 1331''.

Subsec. (b)(1)(A). Pub. L. 104-201, Sec. 636(a), substituted

''facsimile or electronic transmission or by mail'' for ''certified

or registered mail, return receipt requested''.

Subsec. (d). Pub. L. 104-193, Sec. 362(c)(3)(A), inserted ''(or

for benefit of)'' before ''Spouse or'' in heading.

Subsec. (d)(1). Pub. L. 104-193, Sec. 363(c)(2), inserted after

first sentence ''In the case of a spouse or former spouse who,

pursuant to section 408(a)(3) of the Social Security Act (42 U.S.C.

608(a)(4)), assigns to a State the rights of the spouse or former

spouse to receive support, the Secretary concerned may make the

child support payments referred to in the preceding sentence to

that State in amounts consistent with that assignment of rights.''

Pub. L. 104-193, Sec. 362(c)(3)(B), in first sentence, inserted

''(or for the benefit of such spouse or former spouse to a State

disbursement unit established pursuant to section 454B of the

Social Security Act or other public payee designated by a State, in

accordance with part D of title IV of the Social Security Act, as

directed by court order, or as otherwise directed in accordance

with such part D)'' before ''in an amount sufficient''.

Subsec. (d)(6). Pub. L. 104-201, Sec. 636(b), added par. (6)

relating to court order which is out-of-State modification.

Pub. L. 104-193, Sec. 363(c)(3), added par. (6) relating to use

of disposable retired pay of member to satisfy amount of child

support set forth in court order.

Subsec. (i). Pub. L. 104-193, Sec. 363(c)(1), added subsec. (i).

Former subsec. (i) redesignated (j).

Subsec. (j). Pub. L. 104-193, Sec. 363(c)(1), redesignated

subsec. (j) as (k).

Pub. L. 104-193, Sec. 362(c)(4), added subsec. (j).

Subsec. (k). Pub. L. 104-193, Sec. 363(c)(1), redesignated

subsec. (j) as (k).

1993 - Subsecs. (b)(1)(A), (f)(1), (2). Pub. L. 103-160, Sec.

1182(a)(2)(A), substituted ''subsection (i)'' for ''subsection

(h)''.

Subsec. (h)(2)(A). Pub. L. 103-160, Sec. 555(b)(1), inserted

''or, for the Coast Guard when it is not operating as a service in

the Navy, by the Secretary of Transportation'' after ''Secretary of

Defense''.

Subsec. (h)(4)(B). Pub. L. 103-160, Sec. 1182(a)(2)(B), inserted

''of'' after ''of that termination''.

Subsec. (h)(8). Pub. L. 103-160, Sec. 555(b)(2), inserted before

period at end ''or, in the case of the Coast Guard, out of funds

appropriated to the Department of Transportation for payment of

retired pay for the Coast Guard''.

Subsec. (h)(10), (11). Pub. L. 103-160, Sec. 555(a), added par.

(10) and redesignated former par. (10) as (11).

1992 - Subsecs. (h), (i). Pub. L. 102-484 added subsec. (h) and

redesignated former subsec. (h) as (i).

1991 - Pub. L. 102-190 inserted ''or retainer'' after ''retired''

in section catchline.

1990 - Pub. L. 101-510, Sec. 555(f)(2), substituted ''retired

pay'' for ''retired or retainer pay'' in section catchline.

Subsec. (a). Pub. L. 101-510, Sec. 555(g)(1), inserted heading.

Subsec. (a)(2)(C). Pub. L. 101-510, Sec. 555(f)(2), substituted

''retired pay'' for ''retired or retainer pay'' wherever appearing.

Subsec. (a)(4). Pub. L. 101-510, Sec. 555(f)(2), substituted

''retired pay'' for ''retired or retainer pay'' wherever appearing

in introductory provisions and in subpar. (D).

Subsec. (a)(4)(A). Pub. L. 101-510, Sec. 555(b)(1), inserted

before semicolon at end ''for previous overpayments of retired pay

and for recoupments required by law resulting from entitlement to

retired pay''.

Subsec. (a)(4)(B). Pub. L. 101-510, Sec. 555(b)(2), added subpar.

(B) and struck out former subpar. (B) which read as follows: ''are

required by law to be and are deducted from the retired or retainer

pay of such member, including fines and forfeitures ordered by

courts-martial, Federal employment taxes, and amounts waived in

order to receive compensation under title 5 or title 38;''.

Subsec. (a)(4)(C) to (F). Pub. L. 101-510, Sec. 555(b)(3), (4),

redesignated subpars. (E) and (F) as (C) and (D), respectively, and

struck out former subpars. (C) and (D) which read as follows:

''(C) are properly withheld for Federal, State, or local income

tax purposes, if the withholding of such amounts is authorized or

required by law and to the extent such amounts withheld are not

greater than would be authorized if such member claimed all

dependents to which he was entitled;

''(D) are withheld under section 3402(i) of the Internal Revenue

Code of 1986 if such member presents evidence of a tax obligation

which supports such withholding;''.

Subsec. (a)(7). Pub. L. 101-510, Sec. 555(f)(1), added par. (7).

Subsec. (b). Pub. L. 101-510, Sec. 555(g)(2), inserted heading.

Subsec. (c). Pub. L. 101-510, Sec. 555(g)(3), inserted heading.

Subsec. (c)(1). Pub. L. 101-510, Sec. 555(f)(2), substituted

''retired pay'' for ''retired or retainer pay''.

Pub. L. 101-510, Sec. 555(a), inserted at end ''A court may not

treat retired pay as property in any proceeding to divide or

partition any amount of retired pay of a member as the property of

the member and the member's spouse or former spouse if a final

decree of divorce, dissolution, annulment, or legal separation

(including a court ordered, ratified, or approved property

settlement incident to such decree) affecting the member and the

member's spouse or former spouse (A) was issued before June 25,

1981, and (B) did not treat (or reserve jurisdiction to treat) any

amount of retired pay of the member as property of the member and

the member's spouse or former spouse.''

Subsec. (c)(2). Pub. L. 101-510, Sec. 555(c), inserted at end

''Payments by the Secretary concerned under subsection (d) to a

spouse or former spouse with respect to a division of retired pay

as the property of a member and the member's spouse under this

subsection may not be treated as amounts received as retired pay

for service in the uniformed services.''

Subsec. (c)(4). Pub. L. 101-510, Sec. 555(f)(2), substituted

''retired pay'' for ''retired or retainer pay''.

Subsec. (d). Pub. L. 101-510, Sec. 555(g)(4), inserted heading.

Pub. L. 101-510, Sec. 555(f)(2), substituted ''retired pay'' for

''retired or retainer pay'' wherever appearing.

Subsec. (e). Pub. L. 101-510, Sec. 555(g)(5), inserted heading.

Pub. L. 101-510, Sec. 555(f)(2), substituted ''retired pay'' for

''retired or retainer pay'' wherever appearing.

Subsec. (e)(1). Pub. L. 101-510, Sec. 555(d)(1), substituted

''payable under all court orders pursuant to subsection (c)'' for

''payable under subsection (d)''.

Subsec. (e)(4)(B). Pub. L. 101-510, Sec. 555(d)(2), substituted

''the amount of the retired pay payable to such member that is

considered under section 462 of the Social Security Act (42 U.S.C.

662) to be remuneration for employment that is payable by the

United States'' for ''the disposable retired or retainer pay

payable to such member''.

Subsec. (f). Pub. L. 101-510, Sec. 555(g)(6), inserted heading.

Subsec. (f)(1). Pub. L. 101-510, Sec. 555(f)(2), substituted

''retired pay'' for ''retired or retainer pay''.

Subsec. (g). Pub. L. 101-510, Sec. 555(g)(7), inserted heading.

Subsec. (h). Pub. L. 101-510, Sec. 555(g)(8), inserted heading.

1989 - Subsec. (a)(1), (2). Pub. L. 101-189, Sec. 1622(e)(6),

substituted ''The term 'court'' for '' 'Court'' in introductory

provisions.

Subsec. (a)(3). Pub. L. 101-189, Sec. 1622(e)(6), substituted

''The term 'final'' for '' 'Final''.

Subsec. (a)(4). Pub. L. 101-189, Sec. 1622(e)(6), substituted

''The term 'disposable'' for '' 'Disposable'' in introductory

provisions.

Subsec. (a)(4)(D). Pub. L. 101-189, Sec. 653(a)(5)(A), struck out

''(26 U.S.C. 3402(i))'' after ''Code of 1986''.

Subsec. (a)(5). Pub. L. 101-189, Sec. 653(a)(5)(B), 1622(e)(6),

substituted ''The term 'member'' for '' 'Member'' and inserted

''entitled to retired pay under section 1331 of this title'' after

''a former member''.

Subsec. (a)(6). Pub. L. 101-189, Sec. 1622(e)(6), substituted

''The term 'spouse'' for '' 'Spouse''.

1987 - Subsec. (a)(4). Pub. L. 100-26, Sec. 3(3), made technical

amendment to directory language of Pub. L. 99-661, Sec. 644(a). See

1986 Amendment note below.

Subsec. (a)(4)(D). Pub. L. 100-26, Sec. 7(h)(1), substituted

''Internal Revenue Code of 1986'' for ''Internal Revenue Code of

1954''.

1986 - Subsec. (a)(4). Pub. L. 99-661, Sec. 644(a), as amended by

Pub. L. 100-26, Sec. 3(3), struck out ''(other than the retired pay

of a member retired for disability under chapter 61 of this

title)'' before ''less amounts'' in introductory text, added

subpar. (E), and struck out former subpar. (E) which read as

follows: ''are deducted as Government life insurance premiums (not

including amounts deducted for supplemental coverage); or''.

1984 - Subsec. (a)(2)(C). Pub. L. 98-525, Sec. 643(a), inserted

''in the case of a division of property,''.

Subsec. (b)(1)(C). Pub. L. 98-525, Sec. 643(b), inserted '', if

possible,''.

Subsec. (d)(1). Pub. L. 98-525, Sec. 643(c)(1), substituted

''After effective service on the Secretary concerned of a court

order providing for the payment of child support or alimony or,

with respect to a division of property, specifically providing for

the payment of an amount of the disposable retired or retainer pay

from a member to the spouse or a former spouse of the member, the

Secretary shall make payments (subject to the limitations of this

section) from the disposable retired or retainer pay of the member

to the spouse or former spouse in an amount sufficient to satisfy

the amount of child support and alimony set forth in the court

order and, with respect to a division of property, in the amount of

disposable retired or retainer pay specifically provided for in the

court order'' for ''After effective service on the Secretary

concerned of a court order with respect to the payment of a portion

of the retired or retainer pay of a member to the spouse or a

former spouse of the member, the Secretary shall, subject to the

limitations of this section, make payments to the spouse or former

spouse in the amount of the disposable retired or retainer pay of

the member specifically provided for in the court order''.

Subsec. (d)(5). Pub. L. 98-525, Sec. 643(c)(2), substituted

''child support or alimony or the payment of an amount of

disposable retired or retainer pay as the result of the court's

treatment of such pay under subsection (c) as property of the

member and his spouse, the Secretary concerned shall pay (subject

to the limitations of this section) from the disposable retired or

retainer pay of the member to the spouse or former spouse of the

member, any part'' for ''disposable retired or retainer pay, the

Secretary concerned shall, subject to the limitations of this

section, pay to the spouse or former spouse of the member, from the

disposable retired or retainer pay of the member, any part''.

Subsec. (e)(2). Pub. L. 98-525, Sec. 643(d)(1), substituted '',

the disposable retired or retainer pay of the member'' for ''from

the disposable retired or retainer pay of a member, such pay''

before ''shall be used to satisfy''.

Subsec. (e)(3)(A). Pub. L. 98-525, Sec. 643(d)(2)(A), struck out

''from the disposable retired or retainer pay'' before ''of the

same member''.

Subsec. (e)(3)(A)(i). Pub. L. 98-525, Sec. 643(d)(2)(B),

substituted ''from the member's disposable retired or retainer pay

the least amount'' for ''the least amount of disposable retired or

retainer pay'' before ''directed to be paid''.

Subsec. (e)(2)(A)(ii)(I). Pub. L. 98-525, Sec. 643(d)(2)(C),

struck out ''of retired or retainer pay'' before ''required by any

conflicting''.

Subsec. (e)(4)(A). Pub. L. 98-525, Sec. 643(d)(3), struck out

''the retired or retainer pay of'' before ''the same member'' and

substituted ''satisfaction of such court orders and legal process

from the retired or retainer pay of the members shall be'' for

''such court orders and legal process shall be satisfied''.

Subsec. (e)(5). Pub. L. 98-525, Sec. 643(d)(4), struck out ''of

disposable retired or retainer pay'' after ''payment of an amount''

in two places and substituted ''disposable retired or retainer

pay'' for ''such pay'' before ''available for payment''.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective on the date of transfer of

the Coast Guard to the Department of Homeland Security, see section

1704(g) of Pub. L. 107-296, set out as a note under section 101 of

this title.

EFFECTIVE DATE OF 1996 AMENDMENTS

Amendment by section 362(c) of Pub. L. 104-193 effective six

months after Aug. 22, 1996, see section 362(d) of Pub. L. 104-193,

set out as a note under section 659 of Title 42, The Public Health

and Welfare.

For effective date of amendment by section 363(c)(1)-(3) of Pub.

L. 104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a

note under section 654 of Title 42.

Section 1501(c) of Pub. L. 104-106 provided that the amendment

made by that section is effective as of Dec. 1, 1994, and as if

included as an amendment made by the Reserve Officer Personnel

Management Act, title XVI of Pub. L. 103-337, as originally

enacted.

EFFECTIVE DATE OF 1993 AMENDMENT

Section 555(c) of Pub. L. 103-160 provided that: ''The amendments

made by this section (amending this section) shall take effect as

of October 23, 1992, and shall apply as if the provisions of the

paragraph (10) of section 1408(h) of title 10, United States Code,

added by such subsection were included in the amendment made by

section 653(a)(2) of Public Law 102-484 (106 Stat. 2426) (amending

this section).''

EFFECTIVE DATE OF 1990 AMENDMENT

Section 555(e) of Pub. L. 101-510, as amended by Pub. L. 102-190,

div. A, title X, Sec. 1062(a)(1), Dec. 5, 1991, 105 Stat. 1475,

provided that:

''(1) The amendment made by subsection (a) (amending this

section) shall apply with respect to judgments issued before, on,

or after the date of the enactment of this Act (Nov. 5, 1990). In

the case of a judgment issued before the date of the enactment of

this Act, such amendment shall not relieve any obligation,

otherwise valid, to make a payment that is due to be made before

the end of the two-year period beginning on the date of the

enactment of this Act.

''(2) The amendments made by subsections (b), (c), and (d)

(amending this section) apply with only respect to divorces,

dissolutions of marriage, annulments, and legal separations that

become effective after the end of the 90-day period beginning on

the date of the enactment of this Act.''

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by section 3(3) of Pub. L. 100-26 applicable as if

included in Pub. L. 99-661 when enacted on Nov. 14, 1986, see

section 12(a) of Pub. L. 100-26, set out as a note under section

776 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 644(b) of Pub. L. 99-661 provided that: ''The amendments

made by subsection (a) (amending this section) shall apply with

respect to court orders issued after the date of the enactment of

this Act (Nov. 14, 1986).''

EFFECTIVE DATE OF 1984 AMENDMENT

Section 643(e) of Pub. L. 98-525 provided that: ''The amendments

made by this section (amending this section) shall apply with

respect to court orders for which effective service (as described

in section 1408(b)(1) of title 10, United States Code, as amended

by subsection (b) of this section) is made on or after the date of

the enactment of this Act (Oct. 19, 1984).''

EFFECTIVE DATE; TRANSITION PROVISIONS

Section 1006 of title X of Pub. L. 97-252, as amended by Pub. L.

98-94, title IX, Sec. 941(c)(4), Sept. 24, 1983, 97 Stat. 654; Pub.

L. 98-525, title VI, Sec. 645(b), Oct. 19, 1984, 98 Stat. 2549,

provided that:

''(a) The amendments made by this title (amending this section

and sections 1072, 1076, 1086, 1447, 1448, and 1450 of this title

and enacting provisions set out as notes under this section and

section 1401 of this title) shall take effect on the first day of

the first month (February 1983) which begins more than one hundred

and twenty days after the date of the enactment of this title

(Sept. 8, 1982).

''(b) Subsection (d) of section 1408 of title 10, United States

Code, as added by section 1002(a), shall apply only with respect to

payments of retired or retainer pay for periods beginning on or

after the effective date of this title (Feb. 1, 1983, provided in

subsec. (a)), but without regard to the date of any court order.

However, in the case of a court order that became final before June

26, 1981, payments under such subsection may only be made in

accordance with such order as in effect on such date and without

regard to any subsequent modifications.

''(c) The amendments made by section 1003 of this title (amending

sections 1447, 1448, and 1450 of this title) shall apply to persons

who become eligible to participate in the Survivor Benefit Plan

provided for in subchapter II of chapter 73 of title 10, United

States Code (section 1447 et seq. of this title), before, on, or

after the effective date of such amendments.

''(d) The amendments made by section 1004 of this title (amending

sections 1072, 1076, and 1086 of this title) and the provisions of

section 1005 of this title (formerly set out as a note under this

section) shall apply in the case of any former spouse of a member

or former member of the uniformed services whether the final decree

of divorce, dissolution, or annulment of the marriage of the former

spouse and such member or former member is dated before, on, or

after February 1, 1983.

''(e) For the purposes of this section -

''(1) the term 'court order' has the same meaning as provided

in section 1408(a)(2) of title 10, United States Code (as added

by section 1002 of this title);

''(2) the term 'former spouse' has the same meaning as provided

in section 1408(a)(6) of such title (as added by section 1002 of

this title); and

''(3) the term 'uniformed services' has the same meaning as

provided in section 1072 of title 10, United States Code.''

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-MISC5-

REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS

Section 643 of Pub. L. 105-85 provided that:

''(a) Review Required. - The Secretary of Defense shall carry out

a comprehensive review (including a comparison) of -

''(1) the protections, benefits, and treatment afforded under

Federal law to members and former members of the uniformed

services and former spouses of such persons; and

''(2) the protections, benefits, and treatment afforded under

Federal law to employees and former employees of the Government

and former spouses of such persons.

''(b) Military Personnel Matters To Be Reviewed. - In the case of

members and former members of the uniformed services and former

spouses of such persons, the review under subsection (a) shall

include the following:

''(1) All provisions of law (principally those originally

enacted in the Uniformed Services Former Spouses' Protection Act

(title X of Public Law 97-252) (see Short Title of 1982 Amendment

note set out under section 1401 of this title)) that -

''(A) establish, provide for the enforcement of, or otherwise

protect interests of members and former members of the

uniformed services and former spouses of such persons in

retired or retainer pay of members and former members; or

''(B) provide other benefits for members and former members

of the uniformed services and former spouses of such persons.

''(2) The experience of the uniformed services in administering

those provisions of law, including the adequacy and effectiveness

of the legal assistance provided by the Department of Defense in

matters related to the Uniformed Services Former Spouses'

Protection Act.

''(3) The experience of members and former members of the

uniformed services and former spouses of such persons in the

administration of those provisions of law.

''(4) The experience of members and former members of the

uniformed services and former spouses of such persons in the

application of those provisions of law by State courts.

''(5) The history of State statutes and State court

interpretations of the Uniformed Services Former Spouses'

Protection Act and other provisions of Federal law described in

paragraph (1)(A) and the extent to which those interpretations

follow those laws.

''(c) Civilian Personnel Matters To Be Reviewed. - In the case of

former spouses of employees and former employees of the Government,

the review under subsection (a) shall include the following:

''(1) All provisions of law that -

''(A) establish, provide for the enforcement of, or otherwise

protect interests of employees and former employees of the

Government and former spouses of such persons in annuities of

employees and former employees under Federal employees'

retirement systems; or

''(B) provide other benefits for employees and former

employees of the Government and former spouses of such persons.

''(2) The experience of the Office of Personnel Management and

other agencies of the Government in administering those

provisions of law.

''(3) The experience of employees and former employees of the

Government and former spouses of such persons in the

administration of those provisions of law.

''(4) The experience of employees and former employees of the

Government and former spouses of such persons in the application

of those provisions of law by State courts.

''(d) Sampling Authorized. - The Secretary may use sampling in

carrying out the review under this section.

''(e) Report. - Not later than September 30, 1999, the Secretary

shall submit to the Committee on Armed Services of the Senate and

the Committee on National Security of the House of Representatives

(now Committee on Armed Services of the House of Representatives) a

report on the results of the review under subsection (a). The

report shall include any recommendations for legislation that the

Secretary considers appropriate.''

PAYROLL DEDUCTIONS FOR ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS

Section 363(c)(4) of Pub. L. 104-193 provided that: ''The

Secretary of Defense shall begin payroll deductions within 30 days

after receiving notice of withholding, or for the first pay period

that begins after such 30-day period.''

ACCRUAL OF PAYMENTS; PROSPECTIVE APPLICABILITY

Section 653(c) of Pub. L. 102-484 provided that: ''No payments

under subsection (h) of section 1408 of title 10, United States

Code (as added by subsection (a)), shall accrue for periods before

the date of the enactment of this Act (Oct. 23, 1992).''

STUDY CONCERNING BENEFITS FOR DEPENDENTS WHO ARE VICTIMS OF ABUSE

Section 653(e) of Pub. L. 102-484 provided that:

''(1) The Secretary of Defense shall conduct a study in order to

estimate -

''(A) the number of persons who will become eligible to receive

payments under subsection (h) of section 1408 of title 10, United

States Code (as added by subsection (a)), during each of fiscal

years 1993 through 2000; and

''(B) for each of fiscal years 1993 through 2000, the number of

members of the Armed Forces who, after having completed at least

one, and less than 20, years of service in that fiscal year, will

be approved in that fiscal year for separation from the Armed

Forces as a result of having abused a spouse or dependent child.

''(2) The study shall include a thorough analysis of -

''(A) the effects, if any, of appeals and requests for clemency

in the case of court-martial convictions on the entitlement to

payments in accordance with subsection (h) of section 1408 of

title 10, United States Code (as added by subsection (a));

''(B) the socio-economic effects on the dependents of members

of the Armed Forces described in subsection (h)(2) of such

section that result from terminations of the eligibility of such

members to receive retired or retainer pay; and

''(C) the effects of separations of such members from the Armed

Forces on the mission readiness of the units of assignment of

such members when separated and on the Armed Forces in general.

''(3) Not later than one year after the date of the enactment of

this Act (Oct. 23, 1992), the Secretary shall submit to Congress a

report on the results of the study.''

COMMISSARY AND EXCHANGE PRIVILEGES

Section 1005 of Pub. L. 97-252, which directed Secretary of

Defense to prescribe regulations to provide that an unremarried

former spouse described in 10 U.S.C. 1072(2)(F)(i) is entitled to

commissary and post exchange privileges to the same extent and on

the same basis as the surviving spouse of a retired member of the

uniformed services, was repealed and restated in section 1062 of

this title by Pub. L. 100-370, Sec. 1(c)(1), (5).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1059, 1078a, 1447, 1461,

1463 of this title; title 5 sections 8332, 8411.

-CITE-

10 USC Sec. 1409 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1409. Retired pay multiplier

-STATUTE-

(a) Retired Pay Multiplier for Regular-Service Nondisability

Retirement. - In computing -

(1) the retired pay of a member of a uniformed service who is

entitled to that pay under any provision of law other than -

(A) chapter 61 of this title (relating to retirement or

separation for physical disability); or

(B) chapter 1223 of this title (relating to retirement for

non-regular service); or

(2) the retainer pay of a member who is transferred to the

Fleet Reserve or the Fleet Marine Corps Reserve under section

6330 of this title,

the retired pay multiplier (or retainer pay multiplier) is the

percentage determined under subsection (b).

(b) Percentage. -

(1) General rule. - Subject to paragraphs (2) and (3), the

percentage to be used under subsection (a) is the product (stated

as a percentage) of -

(A) 2 1/2, and

(B) the member's years of creditable service (as defined in

subsection (c)).

(2) Reduction applicable to certain new-retirement members with

less than 30 years of service. - In the case of a member who

first became a member of a uniformed service after July 31, 1986,

has elected to receive a bonus under section 322 of title 37, has

less than 30 years of creditable service, and is under the age of

62 at the time of retirement, the percentage determined under

paragraph (1) shall be reduced by -

(A) 1 percentage point for each full year that the member's

years of creditable service are less than 30; and

(B) 1/12 of 1 percentage point for each month by which the

member's years of creditable service (after counting all full

years of such service) are less than a full year.

(3) 75 percent limit. - In the case of a member with more than

30 years of creditable service, the percentage to be used under

subsection (a) is 75 percent.

(c) Years of Creditable Service Defined. - In this section, the

term ''years of creditable service'' means the number of years of

service creditable to a member in computing the member's retired or

retainer pay (including 1/12 of a year for each full month of

service that is in addition to the number of full years of service

of the member).

-SOURCE-

(Added Pub. L. 99-348, title I, Sec. 101, July 1, 1986, 100 Stat.

683; amended Pub. L. 101-189, div. A, title VI, Sec. 651(b)(3),

Nov. 29, 1989, 103 Stat. 1460; Pub. L. 103-337, div. A, title XVI,

Sec. 1662(j)(6), Oct. 5, 1994, 108 Stat. 3005; Pub. L. 106-65,

div. A, title VI, Sec. 641(a), 643(b)(2), Oct. 5, 1999, 113 Stat.

662, 664.)

-MISC1-

AMENDMENTS

1999 - Subsec. (b)(2). Pub. L. 106-65 inserted ''certain'' after

''Reduction applicable to'' in heading and ''has elected to receive

a bonus under section 322 of title 37,'' after ''July 31, 1986,''

in introductory provisions.

1994 - Subsec. (a)(1)(B). Pub. L. 103-337 substituted ''chapter

1223'' for ''chapter 67''.

1989 - Subsec. (a)(1). Pub. L. 101-189 substituted ''who is

entitled to that pay'' for ''who is retired'' in introductory

provisions.

EFFECTIVE DATE OF 1999 AMENDMENT

Amendment by Pub. L. 106-65 effective Oct. 1, 1999, see section

644 of Pub. L. 106-65, set out as a note under section 1401a of

this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1401, 1402a, 1410, 1447,

1451, 1452, 3991, 3992, 6151, 6333, 6334, 8991, 8992, 14519 of this

title; title 14 section 423; title 33 section 3045; title 37

section 322; title 42 sections 211, 212.

-CITE-

10 USC Sec. 1410 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1410. Restoral of full retirement amount at age 62 for certain

members entering on or after August 1, 1986

-STATUTE-

In the case of a member or former member who first became a

member of a uniformed service on or after August 1, 1986, who has

elected to receive a bonus under section 322 of title 37, and who

becomes entitled to retired pay before the age of 62, the retired

pay of such member or former member shall be recomputed, effective

on the first day of the first month beginning after the member or

former member attains 62 years of age, so as to be the amount equal

to the amount of retired pay to which the member or former member

would be entitled on that date if -

(1) increases in the retired pay of the member or former member

under section 1401a(b) of this title had been computed as

provided in paragraph (2) of that section (rather than under

paragraph (3) of that section); and

(2) in the case of a member whose retired pay was subject to

section 1409(b)(2) of this title, no reduction in the member's

retired pay had been made under that section.

-SOURCE-

(Added Pub. L. 99-348, title I, Sec. 103, July 1, 1986, 100 Stat.

685; amended Pub. L. 100-224, Sec. 2, Dec. 30, 1987, 101 Stat.

1536; Pub. L. 101-189, div. A, title VI, Sec. 651(b)(4), Nov. 29,

1989, 103 Stat. 1460; Pub. L. 106-65, div. A, title VI, Sec.

641(c), 643(b)(3)(A), Oct. 5, 1999, 113 Stat. 662, 664.)

-MISC1-

AMENDMENTS

1999 - Pub. L. 106-65 inserted ''certain'' before ''members'' in

section catchline and ''who has elected to receive a bonus under

section 322 of title 37,'' after ''August 1, 1986,'' in

introductory provisions.

1989 - Pub. L. 101-189, Sec. 651(b)(4), in introductory

provisions, inserted ''or former member'' after ''In the case of a

member'', ''the retired pay of such member'', ''after the member'',

and ''to which the member'', and in par. (1), substituted ''retired

pay of the member or former member'' for ''member's retired pay''.

1987 - Pub. L. 100-224 struck out heading ''(a) General rule'',

substituted provisions that the amount equal to the amount of

retired pay to which the member would be entitled on that date if

(1) increases in the member's retired pay under section 1401a(b) of

this title had been computed as provided in paragraph (2) of that

section (rather than under paragraph (3) of that section); and (2)

in the case of a member whose retired pay was subject to section

1409(b)(2) of this title, no reduction in the member's retired pay

had been made under that section, for provisions that the amount

equal to (1) the amount of the member's initial unreduced retired

pay, increased by (2) the percent (adjusted to the nearest

one-tenth of 1 percent) by which (A) the price index for the most

recent base quarter ending more than 31 days before the date the

member attains 62 years of age, exceeds (B) the price index for the

calendar quarter immediately before the date the member first

became entitled to retired pay, and struck out subsec. (b) which

had directed that, in this section, the term ''initial unreduced

retired pay'' meant the amount of retired pay (A) to which the

member was entitled when the member first became entitled to

retired pay; or (B) in the case of a member whose retired pay was

subject to section 1409(b)(2) of this title, to which the member

would have been entitled on the date of the member's retirement

without regard to that section, and that the definitions in

subsection (g), and the provisions of subsection (h), of section

1401a of this title applied to this section.

EFFECTIVE DATE OF 1999 AMENDMENT

Amendment by Pub. L. 106-65 effective Oct. 1, 1999, see section

644 of Pub. L. 106-65, set out as a note under section 1401a of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1451, 1452 of this title;

title 37 section 322.

-CITE-

10 USC Sec. 1411 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1411. Rules of construction

-STATUTE-

(a) Construction of ''First Became a Member''. - For purposes of

this chapter and other provisions of law providing for computation

of retired or retainer pay of members of the uniformed services, a

person shall be considered to first become a member of a uniformed

service on the date the person is first enlisted, inducted, or

appointed in a uniformed service.

(b) References in Tables. - Section references in tables in this

chapter are to sections of this title.

-SOURCE-

(Added Pub. L. 99-348, title I, Sec. 105, July 1, 1986, 100 Stat.

691.)

-CITE-

10 USC Sec. 1412 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1412. Rounding to next lower dollar

-STATUTE-

Amounts computed under this chapter, if not a multiple of $1,

shall be rounded to the next lower multiple of $1.

-SOURCE-

(Added Pub. L. 99-348, title I, Sec. 105, July 1, 1986, 100 Stat.

691.)

-CITE-

10 USC Sec. 1413 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1413. Special compensation for certain severely disabled

uniformed services retirees

-STATUTE-

(a) Authority. - The Secretary concerned shall pay to each

eligible disabled uniformed services retiree a monthly amount

determined under subsection (b). If the provisions of subsection

(a) of section 1414 of this title become effective in accordance

with subsection (f) of that section, payments under this section

shall be terminated effective as of the month beginning on the

effective date specified in subsection (e) of that section.

(b) Amount. - The amount to be paid to an eligible disabled

uniformed services retiree in accordance with subsection (a) is the

following:

(1) For payments for months beginning with February 2002 and

ending with December 2002, the following:

(A) For any month for which the retiree has a qualifying

service-connected disability rated as total, $300.

(B) For any month for which the retiree has a qualifying

service-connected disability rated as 90 percent, $200.

(C) For any month for which the retiree has a qualifying

service-connected disability rated as 80 percent or 70 percent,

$100.

(D) For any month for which the retiree has a qualifying

service-connected disability rated as 60 percent, $50.

(2) For payments for months beginning with January 2003 and

ending with September 2004, the following:

(A) For any month for which the retiree has a qualifying

service-connected disability rated as total, $325.

(B) For any month for which the retiree has a qualifying

service-connected disability rated as 90 percent, $225.

(C) For any month for which the retiree has a qualifying

service-connected disability rated as 80 percent, $125.

(D) For any month for which the retiree has a qualifying

service-connected disability rated as 70 percent, $100.

(E) For any month for which the retiree has a qualifying

service-connected disability rated as 60 percent, $50.

(3) For payments for months after September 2004, the

following:

(A) For any month for which the retiree has a qualifying

service-connected disability rated as total, $350.

(B) For any month for which the retiree has a qualifying

service-connected disability rated as 90 percent, $250.

(C) For any month for which the retiree has a qualifying

service-connected disability rated as 80 percent, $150.

(D) For any month for which the retiree has a qualifying

service-connected disability rated as 70 percent, $125.

(E) For any month for which the retiree has a qualifying

service-connected disability rated as 60 percent, $50.

(c) Eligible Members. - An eligible disabled uniformed services

retiree referred to in subsection (a) is a member of the uniformed

services in a retired status who -

(1) completed at least 20 years of service in the uniformed

services that are creditable for purposes of computing the amount

of retired pay to which the member is entitled; and

(2) has a qualifying service-connected disability.

(d) Qualifying Service-Connected Disability Defined. - In this

section, the term ''qualifying service-connected disability'' means

a service-connected disability that -

(1) was incurred or aggravated in the performance of duty as a

member of a uniformed service, as determined by the Secretary

concerned; and

(2) is rated as not less than 60 percent disabling -

(A) by the Secretary concerned as of the date on which the

member is retired from the uniformed services; or

(B) by the Secretary of Veterans Affairs within four years

following the date on which the member is retired from the

uniformed services.

(e) Construction with Special Compensation for Combat-Disabled

Uniformed Services Retirees. - (1) An individual who is paid

special compensation under this section may not receive special

compensation under section 1413a of this title.

(2) An individual who is eligible for special compensation under

this section and special compensation under section 1413a of this

title shall elect which special compensation to receive.

(3) The Secretary of Defense shall prescribe in regulations the

manner and form of an election under this subsection.

(f) Status of Payments. - Payments under this section are not

retired pay.

(g) Source of Funds. - Payments under this section for any fiscal

year shall be paid out of funds appropriated for pay and allowances

payable by the Secretary concerned for that fiscal year.

(h) Other Definitions. - In this section:

(1) The term ''service-connected'' has the meaning given that

term in section 101 of title 38.

(2) The term ''disability rated as total'' means -

(A) a disability that is rated as total under the standard

schedule of rating disabilities in use by the Department of

Veterans Affairs; or

(B) a disability for which the scheduled rating is less than

total but for which a rating of total is assigned by reason of

inability of the disabled person concerned to secure or follow

a substantially gainful occupation as a result of

service-connected disabilities.

(3) The term ''retired pay'' includes retainer pay, emergency

officers' retirement pay, and naval pension.

-SOURCE-

(Added Pub. L. 106-65, div. A, title VI, Sec. 658(a)(1), Oct. 5,

1999, 113 Stat. 668; amended Pub. L. 106-398, Sec. 1 ((div. A),

title VI, Sec. 657(a)), Oct. 30, 2000, 114 Stat. 1654, 1654A-166;

Pub. L. 107-107, div. A, title VI, Sec. 641(b), (e)(1), (2), Dec.

28, 2001, 115 Stat. 1150, 1151; Pub. L. 107-314, div. A, title VI,

Sec. 636(b), Dec. 2, 2002, 116 Stat. 2576.)

-MISC1-

AMENDMENTS

2002 - Subsec. (e) to (h). Pub. L. 107-314 added subsec. (e) and

redesignated former subsecs. (e) to (g) as (f) to (h),

respectively.

2001 - Subsec. (a). Pub. L. 107-107, Sec. 641(b), inserted at end

''If the provisions of subsection (a) of section 1414 of this title

become effective in accordance with subsection (f) of that section,

payments under this section shall be terminated effective as of the

month beginning on the effective date specified in subsection (e)

of that section.''

Subsec. (b)(1) to (3). Pub. L. 107-107, Sec. 641(e)(1), added

pars. (1) to (3) and struck out former pars. (1) to (3) which read

as follows:

''(1) For any month for which the retiree has a qualifying

service-connected disability rated as total, $300.

''(2) For any month for which the retiree has a qualifying

service-connected disability rated as 90 percent, $200.

''(3) For any month for which the retiree has a qualifying

service-connected disability rated as 80 percent or 70 percent,

$100.''

Subsec. (d)(2). Pub. L. 107-107, Sec. 641(e)(2), substituted ''60

percent'' for ''70 percent'' in introductory provisions.

2000 - Subsec. (c). Pub. L. 106-398 struck out ''(other than a

member who is retired under chapter 61 of this title)'' after

''retired status'' in introductory provisions.

EFFECTIVE DATE OF 2001 AMENDMENT

Pub. L. 107-107, div. A, title VI, Sec. 641(e)(3), Dec. 28,

2001, 115 Stat. 1151, provided that: ''The amendments made by this

subsection (amending this section) shall take effect on February 1,

2002.''

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-398, Sec. 1 ((div. A), title VI, Sec. 657(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-166, provided that: ''The amendment

made by subsection (a) (amending this section) shall take effect on

October 1, 2001, and shall apply to months that begin on or after

that date. No benefit may be paid under section 1413 of title 10,

United States Code, to any person by reason of the amendment made

by subsection (a) for any period before that date.''

EFFECTIVE DATE

Pub. L. 106-65, div. A, title VI, Sec. 658(b), Oct. 5, 1999, 113

Stat. 669, provided that: ''Section 1413 of title 10, United States

Code, as added by subsection (a), shall take effect on October 1,

1999, and shall apply to months that begin on or after that date.

No benefit may be paid to any person by reason of that section for

any period before that date.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1413a of this title.

-CITE-

10 USC Sec. 1413a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1413a. Special compensation for certain combat-related

disabled uniformed services retirees

-STATUTE-

(a) Authority. - The Secretary concerned shall pay to each

eligible combat-related disabled uniformed services retiree who

elects benefits under this section a monthly amount for the

combat-related disability of the retiree determined under

subsection (b).

(b) Amount. -

(1) Determination of monthly amount. - Subject to paragraphs

(2) and (3), the monthly amount to be paid an eligible

combat-related disabled uniformed services retiree for a

combat-related disability under subsection (a) is the monthly

amount of compensation to which the retiree would be entitled

solely for the combat-related disability consistent with chapter

11 of title 38.

(2) Maximum amount. - The amount paid to an eligible

combat-related disabled uniformed services retiree for any month

under paragraph (1) may not exceed the amount of the reduction in

retired pay that is applicable to the retiree for that month

under sections 5304 and 5305 of title 38.

(3) Special rules for chapter 61 disability retirees. - In the

case of an eligible combat-related disabled uniformed services

retiree who is retired under chapter 61 of this title, the amount

of the payment under paragraph (1) for any month shall be reduced

by the amount (if any) by which the amount of the member's

retired pay under chapter 61 of this title exceeds the amount of

retired pay to which the member would have been entitled under

any other provision of law based upon the member's service in the

uniformed services if the member had not been retired under

chapter 61 of this title.

(c) Eligible Retirees. - For purposes of this section, an

eligible combat-related disabled uniformed services retiree

referred to in subsection (a) is a member of the uniformed services

entitled to retired pay who -

(1) has completed at least 20 years of service in the uniformed

services that are creditable for purposes of computing the amount

of retired pay to which the member is entitled; and

(2) has a qualifying combat-related disability.

(d) Procedures. - The Secretary of Defense shall prescribe

procedures and criteria under which a disabled uniformed services

retiree may apply to the Secretary of a military department to be

considered to be an eligible combat-related disabled uniformed

services retiree. Such procedures shall apply uniformly throughout

the Department of Defense.

(e) Qualifying Combat-Related Disability. - In this section, the

term ''qualifying combat-related disability'' means either of the

following:

(1) A disability that -

(A) is attributable to an injury for which the member was

awarded the Purple Heart; and

(B) is rated as not less than 10 percent disabling -

(i) by the Secretary concerned, as of the date on which the

member is retired from the uniformed services, under criteria

prescribed by the Secretary of Defense; or

(ii) by the Secretary of Veterans Affairs.

(2) A service-connected disability that -

(A) was incurred (as determined under criteria prescribed by

the Secretary of Defense) -

(i) as a direct result of armed conflict;

(ii) while engaged in hazardous service;

(iii) in the performance of duty under conditions

simulating war; or

(iv) through an instrumentality of war; and

(B) is rated as not less than 60 percent disabling -

(i) by the Secretary concerned, as of the date on which the

member is retired from the uniformed services, under criteria

prescribed by the Secretary of Defense; or

(ii) by the Secretary of Veterans Affairs.

(f) Construction with Special Compensation for Severely Disabled

Uniformed Services Retirees. -

(1) Single source of compensation. - An individual who is paid

special compensation under this section may not receive special

compensation under section 1413 of this title.

(2) Election of source. - An individual who is eligible for

special compensation under this section and special compensation

under section 1413 of this title shall elect which special

compensation to receive.

(3) Regulations. - The Secretary of Defense shall prescribe in

regulations the manner and form of an election under this

subsection.

(g) Status of Payments. - Payments under this section are not

retired pay.

(h) Source of Payments. - Payments under this section for any

fiscal year shall be paid out of funds appropriated for pay and

allowances payable by the Secretary concerned for that fiscal year.

(i) Other Definitions. - In this section:

(1) The term ''service-connected'' has the meaning given such

term in section 101 of title 38.

(2) The term ''retired pay'' includes retainer pay, emergency

officers' retirement pay, and naval pension.

-SOURCE-

(Added Pub. L. 107-314, div. A, title VI, Sec. 636(a)(1), Dec. 2,

2002, 116 Stat. 2574.)

-MISC1-

EFFECTIVE DATE

Pub. L. 107-314, div. A, title VI, Sec. 636(a)(2), Dec. 2, 2002,

116 Stat. 2576, provided that: ''Section 1413a of title 10, United

States Code, as added by paragraph (1), shall take effect not later

than 180 days after the date of the enactment of this Act (Dec. 2,

2002).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1413 of this title.

-CITE-

10 USC Sec. 1414 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART II - PERSONNEL

CHAPTER 71 - COMPUTATION OF RETIRED PAY

-HEAD-

Sec. 1414. Members eligible for retired pay who have

service-connected disabilities: payment of retired pay and

veterans' disability compensation; contingent authority

-STATUTE-

(a) Payment of Both Retired Pay and Compensation. - Subject to

subsection (b), a member or former member of the uniformed services

who is entitled to retired pay (other than as specified in

subsection (c)) and who is also entitled to veterans' disability

compensation is entitled to be paid both without regard to sections

5304 and 5305 of title 38, subject to the enactment of qualifying

offsetting legislation as specified in subsection (f).

(b) Special Rule for Chapter 61 Career Retirees. - The retired

pay of a member retired under chapter 61 of this title with 20

years or more of service otherwise creditable under section 1405 of

this title at the time of the member's retirement is subject to

reduction under sections 5304 and 5305 of title 38, but only to the

extent that the amount of the member's retired pay under chapter 61

of this title exceeds the amount of retired pay to which the member

would have been entitled under any other provision of law based

upon the member's service in the uniformed services if the member

had not been retired under chapter 61 of this title.

(c) Exception. - Subsection (a) does not apply to a member

retired under chapter 61 of this title with less than 20 years of

service otherwise creditable under section 1405 of this title at

the time of the member's retirement.

(d) Definitions. - In this section:

(1) The term ''retired pay'' includes retainer pay, emergency

officers' retirement pay, and naval pension.

(2) The term ''veterans' disability compensation'' has the

meaning given the term ''compensation'' in section 101(12) of

title 38.

(e) Effective Date. - If qualifying offsetting legislation (as

defined in subsection (f)) is enacted, the provisions of subsection

(a) shall take effect on -

(1) the first day of the first month beginning after the date

of the enactment of such qualifying offsetting legislation; or

(2) the first day of the fiscal year that begins in the

calendar year in which such legislation is enacted, if that date

is later than the date specified in paragraph (1).

(f) Effectiveness Contingent on Enactment of Offsetting

Legislation. - (1) The provisions of subsection (a) shall be

effective only if -

(A) the President, in the budget for any fiscal year, proposes

the enactment of legislation that, if enacted, would be

qualifying offsetting legislation; and

(B) after that budget is submitted to Congress, there is

enacted qualifying offsetting legislation.

(2) In this subsection:

(A) The term ''qualifying offsetting legislation'' means

legislation (other than an appropriations Act) that includes

provisions that -

(i) offset fully the increased outlays to be made by reason

of the provisions of subsection (a) for each of the first 10

fiscal years beginning after the date of the enactment of such

legislation;

(ii) expressly state that they are enacted for the purpose of

the offset described in clause (i); and

(iii) are included in full on the PayGo scorecard.

(B) The term ''PayGo scorecard'' means the estimates that are

made by the Director of the Congressional Budget Office and the

Director of the Office of Management and Budget under section

252(d) of the Balanced Budget and Emergency Deficit Control Act

of 1985 (2 U.S.C. 902(d)) with respect to the ten fiscal years

following the date of the enactment of the legislation that is

qualifying offsetting legislation for purposes of this section.

-SOURCE-

(Added Pub. L. 107-107, div. A, title VI, Sec. 641(a), Dec. 28,

2001, 115 Stat. 1149.)

-MISC1-

PROHIBITION OF RETROACTIVE BENEFITS

Pub. L. 107-107, div. A, title VI, Sec. 641(d), Dec. 28, 2001,

115 Stat. 1150, provided that: ''If the provisions of subsection

(a) of section 1414 of title 10, United States Code, becomes (sic)

effective in accordance with subsection (f) of that section, no

benefit may be paid to any person by reason of those provisions for

any period before the effective date specified in subsection (e) of

that section.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1413 of this title.

-CITE-




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Idioma: inglés
País: Estados Unidos

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