[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2563 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2563

 To amend title 10, United States Code, to restore military retirement 
  benefits that were reduced by the Military Retirement Reform Act of 
                                 1986.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

              October 7 (legislative day, October 2), 1998

Mr. Roberts (for himself and Mr. McCain) introduced the following bill; 
  which was read twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
 To amend title 10, United States Code, to restore military retirement 
  benefits that were reduced by the Military Retirement Reform Act of 
                                 1986.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES TO TITLE 10, UNITED STATES CODE.

    (a) Short Title.--This Act may be cited as the ``Military 
Retirement Readiness Enhancement Act of 1998''.
    (b) References to Title 10.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of title 10, United States Code.

SEC. 2. RETIRED PAY MULTIPLIER.

    (a) Repeal of Reduction for Less Than 30 Years of Service.--
Subsection (b) of section 1409 is amended by striking out paragraph 
(2).
    (b) Conforming Amendments.--(1) Paragraph (1) of such subsection is 
amended by striking out ``paragraphs (2) and (3)'' and inserting in 
lieu thereof ``paragraph (2)''.
    (2) Paragraph (3) of such subsection is redesignated as paragraph 
(2).

SEC. 3. ADJUSTMENTS OF RETIRED AND RETAINER PAY TO REFLECT CHANGES IN 
              THE CONSUMER PRICE INDEX.

    (a) Repeal of Reduced COLA Rate.--Subsection (b) of section 1401a 
is amended--
            (1) by striking out paragraphs (1), (2), (3), and (4), and 
        inserting in lieu thereof the following:
            ``(1) General rule.--Effective on December 1 of each year, 
        the Secretary of Defense shall increase the retired pay of each 
        member and former member of an armed force 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.''; and
            (2) by redesignating paragraph (5) as paragraph (2).
    (b) First COLA Adjustment.--Subsections (c)(3) and (d) of such 
section are amended by striking out ``who first became a member of a 
uniformed service before August 1, 1986, and''.
    (c) Repeal of Special Rule on Pro Rating Initial Adjustment for 
Post-1986 Reform Retirees.--Subsection (e) of such section is repealed.
    (d) Conforming Amendments.--Subsections (f), (g), and (h) of such 
section are redesignated as subsections (e), (f), and (g), 
respectively.

SEC. 4. RESTORAL OF FULL RETIREMENT AMOUNT AT AGE 62.

    (a) Repeal.--Section 1410 is repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 71 is amended by striking out the item relating to section 
1410.

SEC. 5. CONFORMING AMENDMENTS FOR SURVIVOR BENEFIT PLAN.

    (a) Unreduced Retired Pay as Basis for Annuity.--Section 1447(6)(A) 
is amended by striking out ``(determined without regard to any 
reduction under section 1409(b)(2) of this title)''.
    (b) Cost-of-Living Adjustments and Recomputations.--Section 1451 is 
amended by striking out subsections (h) and (i) and inserting in lieu 
thereof the following:
    ``(h) Adjustments to Base Amount for Cost-of-Living.--
            ``(1) Increases in base amount when retired pay 
        increased.--Whenever retired pay is increased under section 
        1401a of this title (or any other provision of law), the base 
        amount applicable to each participant in the Plan shall be 
        increased at the same time.
            ``(2) Percentage of increase.--The increase shall be by the 
        same percent as the percent by which the retired pay of the 
        participant is so increased.''.
    (c) Reduction in Retired Pay.--(1) Section 1452 is amended--
            (A) in subsection (c), by striking out paragraph (4); and
            (B) by striking out subsection (i).
    (2) Section 1460(d) is amended by striking out ``or recomputed 
under section 1452(i) of this title'', or recomputed, as the case may 
be,'' and ``or recomputation''.

SEC. 6. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1999, and shall apply with respect to retired or retainer 
pay accruing for months beginning on or after that date.
                                 <all>