[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 4 Reported in Senate (RS)]





                                                        Calendar No. 13

106th CONGRESS

  1st Session

                                  S. 4

                           [Report No. 106-1]

_______________________________________________________________________

                                 A BILL

 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.

_______________________________________________________________________

                            February 2, 1999

                       Reported with an amendment





                                                        Calendar No. 13
106th CONGRESS
  1st Session
                                  S. 4

                           [Report No. 106-1]

 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

  Mr. Warner (for himself, Mr. Thurmond, Mr. McCain, Mr. Smith of New 
    Hampshire, Mr. Inhofe, Ms. Snowe, Mr. Roberts, Mr. Allard, Mr. 
 Hutchinson, Mr. Sessions, Mr. Lott, Mr. Hagel, Mr. Abraham, Mr. Mack, 
    Mrs. Hutchison, Mr. Santorum, and Mr. Coverdell) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Armed Services

                            February 2, 1999

               Reported by Mr. Warner, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Soldiers', Sailors', 
Airmen's, and Marines' Bill of Rights Act of 1999''.</DELETED>

             <DELETED>TITLE I--PAY AND ALLOWANCES</DELETED>

<DELETED>SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTURING OF BASIC 
              PAY.</DELETED>

<DELETED>    (a) Waiver of Section 1009 Adjustment.--Any adjustment 
required by section 1009 of title 37, United States Code, in the rates 
of monthly basic pay authorized members of the uniformed services by 
section 203(a) of such title to become effective during fiscal year 
2000 shall not be made.</DELETED>
<DELETED>    (b) January 1, Increase in Basic Pay.--Effective on 
January 1, 2000, the rates of monthly basic pay for members of the 
uniformed services shall be increased by 4.8 percent.</DELETED>
<DELETED>    (c) Basic Pay Reform.--(1) Effective on July 1, 2000, the 
rates of monthly basic pay for members of the uniformed services within 
each pay grade are as follows:</DELETED>
    <DELETED>  

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   6,594.30   6,810.30   6,953.10   6,993.30    7,171.80
O-7.............   5,479.50   5,851.80   5,851.50   5,894.40    6,114.60
O-6.............   4,061.10   4,461.60   4,754.40   4,754.40    4,772.40
O-5.............   3,248.40   3,813.90   4,077.90   4,127.70    4,291.80
O-4.............   2,737.80   3,333.90   3,556.20   3,606.04    3,812.40
O-3\3\..........   2,544.00   2,884.20   3,112.80   3,364.80    3,525.90
O-2\3\..........   2,218.80   2,527.20   2,910.90   3,000.00    3,071.10
O-1\3\..........   1,926.30   2,004.90   2,423.10   2,423.10    2,423.10
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,471.50   7,540.80   7,824.60   7,906.20    8,150.10
O-7.............   6,282.00   6,475.80   6,669.00   6,863.10    7,471.50
O-6.............   4,976.70   5,004.00   5,004.00   5,169.30    5,791.20
O-5.............   4,291.80   4,420.80   4,659.30   4,971.90    5,286.00
O-4.............   3,980.40   4,251.50   4,464.00   4,611.00    4,758.90
O-3\3\..........   3,702.60   3,850.20   4,040.40   4,139.10    4,139.10
O-2\3\..........   3,071.10   3,071.10   3,071.10   3,071.10    3,071.10
O-1\3\..........   2,423.10   2,423.10   2,423.10   2,423.10    2,423.10
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $10,655.1
                                     0  $10,707.6
                                                0  $10,930.2
                                                           0  $11,318.40
O-9.............       0.00   9,319.50   9,453.60   9,647.70    9,986.40
O-8.............   8,503.80   8,830.20   9,048.00   9,048.00    9,048.00
O-7.............   7,985.40   7,985.40   7,985.40   7,985.40    8,025.60
O-6.............   6,086.10   6,381.30   6,549.00   6,719.10    7,049.10
O-5.............   5,436.00   5,583.60   5,751.90   5,751.90    5,751.90
O-4.............   4,808.70   4,808.70   4,808.70   4,808.70    4,808.70
O-3\3\..........   4,139.10   4,139.10   4,139.10   4,139.10    4,139.10
O-2\3\..........   3,071.10   3,071.10   3,071.10   3,071.10    3,071.10
O-1\3\..........   2,423.10   2,423.10   2,423.10   2,423.10   2,423.10
------------------------------------------------------------------------
\1\Basic pay for these officers is limited to the rate of basic pay for
  level V of the Executive Schedule.
\2\While serving as Chairman or Vice Chairman of the Joint Chiefs of
  Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of
  Staff of the Air Force, Commandant of the Marine Corps, or Commandant
  of the Coast Guard, basic pay for this grade is calculated to be
  $12,441.00, regardless of cumulative years of service computed under
  section 205 of title 37, United States Code. Nevertheless, basic pay
  for these officers is limited to the rate of basic pay for level V of
  the Executive Schedule.
\3\Does not apply to commissioned officers who have been credited with
  over 4 years of active duty service as an enlisted member or warrant
  officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E\4\.........      $0.00      $0.00      $0.00  $3,364.80   $3,525.90
O-2E\4\.........       0.00       0.00       0.00   3,009.00    3,071.10
O-1E\4\.........       0.00       0.00       0.00   2,423.10    2,588.40
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E\4\.........  $3,702.60  $3,850.20  $4,040.40  $4,200.30   $4,291.80
O-2E\4\.........   3,168.60   3,333.90   3,461.40   3,556.20    3,556.20
O-1E\4\.........   2,683.80   2,781.30   2,877.60   3,009.00    3,009.00
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $4,416.90  $4,416.90  $4,416.90  $4,416.90   $4,416.90
O-2E............   3,556.20   3,556.20   3,556.20   3,556.20    3,556.20
O-1E............   3,009.00   3,009.00   3,009.00   3,009.00    3,009.00
------------------------------------------------------------------------



                            WARRANT OFFICERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   2,592.00   2,788.50   2,868.60   2,947.50   3,083.40
W-3..............   2,355.90   2,555.40   2,555.40   2,588.40   2,694.30
W-2..............   2,063.40   2,232.60   2,232.60   2,305.80   2,423.10
W-1..............   1,719.00   1,971.00   1,971.00   2,135.70   2,232.60
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,217.20   3,352.80   3,485.10   3,622.20   3,753.60
W-3..............   2,814.90   2,974.20   3,071.10   3,177.00   3,298.20
W-2..............   2,555.40   2,852.60   2,749.80   2,844.30   2,949.00
W-1..............   2,332.80   2,433.30   2,533.20   2,634.00   2,734.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $4,475.10  $4,628.70  $4,782.90  $4,937.40
W-4..............   3,888.00   4,019.00   4,155.60   4,289.70   4,427.10
W-3..............   3,418.50   3,539.10   3,659.40   3,780.00   3,900.90
W-2..............   3,058.40   3,163.80   3,270.90   3,378.30   3,378.30
W-1..............   2,835.00   2,910.90   2,910.90   2,910.90   2,910.90
------------------------------------------------------------------------


                            ENLISTED MEMBERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\4\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   1,765.80   1,927.80   2,001.00   2,073.00   2,147.70
E-6..............   1,518.90   1,678.20   1,752.60   1,824.30   1,899.30
E-5..............   1,332.60   1,494.00   1,566.00   1,640.40   1,714.50
E-4..............   1,242.90   1,373.10   1,447.20   1,520.10   1,593.90
E-3..............   1,171.50   1,260.60   1,334.10   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40
E-1..............  \5\1,005.
                          60   1,005.60   1,005.60   1,005.60   1,005.60
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\4\...........      $0.00  $3,015.30  $3,083.40  $3,169.80  $3,271.50
E-8..............   2,528.40   2,601.60   2,669.70   2,751.60   2,840.10
E-7..............   2,220.90   2,294.10   2,367.30   2,439.30   2,514.00
E-6..............   1,973.10   2,047.20   2,118.60   2,191.50   2,244.60
E-5..............   1,789.50   1,861.50   1,936.20   1,936.20   1,936.20
E-4..............   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90
E-3..............   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40
E-1..............   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\4\...........  $3,373.20  $3,473.40  $3,609.30  $3,744.00  $3,915.80
E-8..............   2,932.50   3,026.10   3,161.10   3,295.50   3,483.60
E-7..............   2,588.10   2,660.40   2,787.60   2,926.20   3,134.40
E-6..............   2,283.30   2,283.30   2,285.70   2,285.70   2,285.70
E-5..............   1,936.20   1,936.20   1,936.20   1,936.20   1,936.20
E-4..............   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90
E-3..............   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,123.20   1,127.40
E-1..............   1,005.60   1,005.60   1,005.60   1,005.60  1,005.60
------------------------------------------------------------------------
\4\While serving as Sergeant Major of the Army, Master Chief Petty
  Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant
  Major of the Marine Corps, or Master Chief Petty Officer of the Coast
  Guard, basic pay for this grade is $4,701.00, regardless of cumulative
  years of service computed under section 205 of title 37, United States
  Code.
\5\In the case of members in the grade E-1 who have served less than 4
  months on active duty, basic pay is $930.30.

<DELETED>SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FISCAL YEAR 
              2000.</DELETED>

<DELETED>    (a) ECI+0.5 Percent Increase for All Members.--Section 
1009(c) of title 37, United States Code, is amended to read as 
follows:</DELETED>
<DELETED>    ``(c) ECI+0.5 Percent Increase for All Members.--Subject 
to subsection (d), an adjustment taking effect under this section 
during a fiscal year shall provide all eligible members with an 
increase in the monthly basic pay by the percentage equal to the sum of 
one percent plus the percentage calculated as provided under section 
5303(a) of title 5 (without regard to whether rates of pay under the 
statutory pay systems are actually increased during such fiscal year 
under that section by the percentage so calculated).''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2000.</DELETED>

<DELETED>SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.</DELETED>

<DELETED>    (a) Allowance.--(1) Chapter 7 of title 37, United States 
Code, is amended by inserting after section 402 the following new 
section:</DELETED>
<DELETED>``Sec. 402a. Special subsistence allowance</DELETED>
<DELETED>    ``(a) Entitlement.--Upon the application of an eligible 
member of a uniformed service, the Secretary concerned shall pay the 
member a special subsistence allowance for each month for which the 
member is eligible to receive food stamp assistance.</DELETED>
<DELETED>    ``(b) Termination of Entitlement.--The entitlement of a 
member to receive payment of a special subsistence allowance terminates 
upon the occurrence of any of the following events:</DELETED>
        <DELETED>    ``(1) Termination of eligibility for food stamp 
        assistance.</DELETED>
        <DELETED>    ``(2) Payment of the special subsistence allowance 
        for 12 consecutive months.</DELETED>
        <DELETED>    ``(3) Promotion of the member to a higher 
        grade.</DELETED>
        <DELETED>    ``(4) Transfer of the member in a permanent change 
        of station.</DELETED>
<DELETED>    ``(c) Reestablished Entitlement.--(1) After a termination 
of a member's entitlement to the special subsistence allowance under 
subsection (b), the Secretary concerned shall resume payment of the 
special subsistence allowance to the member if the Secretary 
determines, upon further application of the member, that the member is 
eligible to receive food stamps.</DELETED>
<DELETED>    ``(2) Payments resumed under this subsection shall 
terminate under subsection (b) upon the occurrence of an event 
described in that subsection after the resumption of the 
payments.</DELETED>
<DELETED>    ``(3) The number of times that payments are resumed under 
this subsection is unlimited.</DELETED>
<DELETED>    ``(d) Documentation of Eligibility.--A member of the 
uniformed services applying for the special subsistence allowance under 
this section shall furnish the Secretary concerned with such evidence 
of the member's eligibility for food stamp assistance as the Secretary 
may require in connection with the application.</DELETED>
<DELETED>    ``(e) Amount of Allowance.--The monthly amount of the 
special subsistence allowance under this section is $180.</DELETED>
<DELETED>    ``(f) Relationship to Basic Allowance for Subsistence.--
The special subsistence allowance under this section is in addition to 
the basic allowance for subsistence under section 402 of this 
title.</DELETED>
<DELETED>    ``(g) Food Stamp Assistance Defined.--In this section, the 
term `food stamp assistance' means assistance under the Food Stamp Act 
of 1977 (7 U.S.C. 2011 et seq.).</DELETED>
<DELETED>    ``(h) Termination of Authority.--No special subsistence 
allowance may be made under this section for any month beginning after 
September 30, 2004.''.</DELETED>
<DELETED>    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 402 the 
following:</DELETED>

<DELETED>``402a. Special subsistence allowance.''.
<DELETED>    (b) Effective Date.--Section 402a of title 37, United 
States Code, shall take effect on the first day of the first month that 
begins not less than 180 days after the date of the enactment of this 
Act.</DELETED>
<DELETED>    (c) Annual Report.--(1) Not later than March 1 of each 
year after 1999, the Secretary of Defense shall submit to Congress a 
report setting forth the number of members of the uniformed services 
who are eligible for assistance under the Food Stamp Act of 1977 (7 
U.S.C. 2011 et seq.).</DELETED>
<DELETED>    (2) In preparing the report, the Secretary shall consult 
with the Secretary of Transportation (with respect to the Coast Guard), 
the Secretary of Health and Human Services (with respect to the 
commissioned corps of the Public Health Service), and the Secretary of 
Commerce (with respect to the commissioned officers of the National 
Oceanic and Atmospheric Administration), who shall provide the 
Secretary of Defense with any information that the Secretary determines 
necessary to prepare the report.</DELETED>
<DELETED>    (3) No report is required under this section after March 
1, 2004.</DELETED>

            <DELETED>TITLE II--RETIREMENT BENEFITS</DELETED>

<DELETED>SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTERING UNIFORMED 
              SERVICES ON OR AFTER AUGUST 1, 1986.</DELETED>

<DELETED>    (a) Reduced Retired Pay Only for Members Electing 15-Year 
Service Bonus.--(1) Paragraph (2) of section 1409(b) of title 10, 
United States Code, is amended by inserting after ``July 31, 1986,'' 
the following: ``has elected to receive a bonus under section 318 of 
title 37,''.</DELETED>
<DELETED>    (2)(A) Paragraph (2)(A) of section 1401a(b) of title 10, 
United States Code, is amended by striking ``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,'' and 
inserting ``Except as otherwise provided in this subsection, the 
Secretary shall increase the retired pay of each member and former 
member''.</DELETED>
<DELETED>    (B) Paragraph (3) of such section 1401a(b) is amended by 
inserting after ``August 1, 1986,'' the following: ``and has elected to 
receive a bonus under section 318 of title 37,''.</DELETED>
<DELETED>    (3) Section 1410 of title 10, United States Code, is 
amended by inserting after ``August 1, 1986,'' the following: ``who has 
elected to receive a bonus under section 318 of title 37,''.</DELETED>
<DELETED>    (b) Optional Lump-Sum Bonus at 15 Years of Service.--(1) 
Chapter 5 of title 37, United States Code, is amended by adding at the 
end the following new section:</DELETED>
<DELETED>``Sec. 318. Special pay: 15-year service bonus elected by 
              members entering on or after August 1, 1986</DELETED>
<DELETED>    ``(a) Payment of Bonus.--The Secretary concerned shall pay 
a bonus to a member of a uniformed service who is eligible and elects 
to receive the bonus under this section.</DELETED>
<DELETED>    ``(b) Eligibility for Bonus.--A member of a uniformed 
service serving on active duty is eligible to receive a bonus under 
this section if the member--</DELETED>
        <DELETED>    ``(1) first became a member of a uniformed service 
        on or after August 1, 1986;</DELETED>
        <DELETED>    ``(2) has completed 15 years of active duty in the 
        uniformed services; and</DELETED>
        <DELETED>    ``(3) if not already obligated to remain on active 
        duty for a period that would result in at least 20 years of 
        active-duty service, executes a written agreement (prescribed 
        by the Secretary concerned) to remain continuously on active 
        duty for five years after the date of the completion of 15 
        years of active-duty service.</DELETED>
<DELETED>    ``(c) Election.--(1) A member eligible to receive a bonus 
under this section may elect to receive the bonus. The election shall 
be made in such form and within such period as the Secretary concerned 
requires.</DELETED>
<DELETED>    ``(2) An election made under this subsection is 
irrevocable.</DELETED>
<DELETED>    ``(d) Notification of Eligibility.--The Secretary 
concerned shall transmit a written notification of the opportunity to 
elect to receive a bonus under this section to each member who is 
eligible (or upon execution of an agreement described in subsection 
(b)(3), would be eligible) to receive the bonus. The Secretary shall 
complete the notification within 180 days after the date on which the 
member completes 15 years of active duty. The notification shall 
include the procedures for electing to receive the bonus and an 
explanation of the effects under sections 1401a, 1409, and 1410 of 
title 10 that such an election has on the computation of any retired or 
retainer pay which the member may become eligible to receive.</DELETED>
<DELETED>    ``(e) Form and Amount of Bonus.--A bonus under this 
section shall be paid in one lump sum of $30,000.</DELETED>
<DELETED>    ``(f) Time for Payment.--Payment of a bonus to a member 
electing to receive the bonus under this section shall be made not 
later than the first month that begins on or after the date that is 60 
days after the Secretary concerned receives from the member an election 
that satisfies the requirements imposed under subsection (c).</DELETED>
<DELETED>    ``(g) Repayment of Bonus.--(1) If a person paid a bonus 
under this section fails to complete the total period of active duty 
specified in the agreement entered into under subsection (b)(3), the 
person shall refund to the United States the amount that bears the same 
ratio to the amount of the bonus payment as the unserved part of that 
total period bears to the total period.</DELETED>
<DELETED>    ``(2) Subject to paragraph (3), an obligation to reimburse 
the United States imposed under paragraph (1) is for all purposes a 
debt owed to the United States.</DELETED>
<DELETED>    ``(3) The Secretary concerned may waive, in whole or in 
part, a refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.</DELETED>
<DELETED>    ``(4) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of an agreement 
under this section does not discharge the member signing such agreement 
from a debt arising under the agreement or this 
subsection.''.</DELETED>
<DELETED>    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:</DELETED>

<DELETED>``318. Special pay: 15-year service bonus elected by members 
                            entering on or after August 1, 1986.''.
<DELETED>    (c) Conforming Amendments to Survivor Benefit Plan 
Provisions.--(1) Section 1451(h)(3) of title 10, United States Code, is 
amended by inserting ``of certain members'' after 
``retirement''.</DELETED>
<DELETED>    (2) Section 1452(i) of such title is amended by striking 
``When the retired pay'' and inserting ``Whenever the retired 
pay''.</DELETED>
<DELETED>    (d) Related Technical Amendments.--(1) Section 1401a(b) of 
title 10, United States Code, is amended--</DELETED>
        <DELETED>    (A) by striking the heading for paragraph (1) and 
        inserting ``Increase required.--'';</DELETED>
        <DELETED>    (B) by striking the heading for paragraph (2) and 
        inserting ``Percentage increase.--''; and</DELETED>
        <DELETED>    (C) by striking the heading for paragraph (3) and 
        inserting ``Reduced percentage for certain post-August 1, 1986 
        members.--''.</DELETED>
<DELETED>    (2) Section 1409(b)(2) of title 10, United States Code, is 
amended by inserting ``certain'' after ``Reduction applicable to'' in 
the paragraph heading.</DELETED>
<DELETED>    (3)(A) The heading of section 1410 of such title is 
amended by inserting ``certain'' before ``members''.</DELETED>
<DELETED>    (B) The item relating to such section in the table of 
sections at the beginning of chapter 71 of title 10, United States 
Code, is amended by inserting ``certain'' before ``members''.</DELETED>

<DELETED>SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.</DELETED>

<DELETED>    (a) Participation Authority.--(1)(A) Chapter 3 of title 
37, United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>``Sec. 211. Participation in Thrift Savings Plan</DELETED>
<DELETED>    ``(a) Authority.--A member of the uniformed services 
serving on active duty for a period of more than 30 days may 
participate in the Thrift Savings Plan in accordance with section 8440e 
of title 5.</DELETED>
<DELETED>    ``(b) Rule of Construction Regarding Separation.--For the 
purposes of section 8440e of title 5, the following actions shall be 
considered separation of a member of the uniformed services from 
Government employment:</DELETED>
        <DELETED>    ``(1) Release of the member from active-duty 
        service (not followed by a resumption of active-duty service 
        within 30 days after the effective date of the 
        release).</DELETED>
        <DELETED>    ``(2) Transfer of the member by the Secretary 
        concerned to a retired list maintained by the 
        Secretary.''.</DELETED>
<DELETED>    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following:</DELETED>

<DELETED>``211. Participation in Thrift Savings Plan.''.
<DELETED>    (2)(A) Subchapter III of chapter 84 of title 5, United 
States Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Sec. 8440e. Members of the uniformed services on active 
              duty</DELETED>
<DELETED>    ``(a) Participation Authorized.--(1) A member of the 
uniformed services authorized to participate in the Thrift Savings Plan 
under section 211(a) of title 37 may contribute to the Thrift Savings 
Fund.</DELETED>
<DELETED>    ``(2) An election to contribute to the Thrift Savings Fund 
under paragraph (1) may be made only during a period provided under 
section 8432(b) for individuals subject to this chapter.</DELETED>
<DELETED>    ``(b) Applicability of Thrift Savings Plan Provisions.--
Except as otherwise provided in this section, the provisions of this 
subchapter and subchapter VII of this chapter shall apply with respect 
to members of the uniformed services making contributions to the Thrift 
Savings Fund as if such members were employees within the meaning of 
section 8401(11).</DELETED>
<DELETED>    ``(c) Maximum Contribution From Basic Pay.--The amount 
contributed by a member of the uniformed services for any pay period 
out of basic pay may not exceed 5 percent of such member's basic pay 
for such pay period.</DELETED>
<DELETED>    ``(d) Other Member Contributions.--A member of the 
uniformed services making contributions to the Thrift Savings Fund out 
of basic pay may also contribute (by direct transfer to the Fund) any 
part of any special or incentive pay that the member receives under 
chapter 5 of title 37. No contribution made under this subsection shall 
be subject to, or taken into account for purposes of, the first 
sentence of section 8432(d), relating to the applicability of any 
limitation under section 415 of the Internal Revenue Code of 
1986.</DELETED>
<DELETED>    ``(e) Agency Contributions Generally Prohibited.--Except 
as provided in section 211(c) of title 37, no contribution under 
section 8432(c) of this title may be made for the benefit of a member 
of the uniformed services making contributions to the Thrift Savings 
Fund under subsection (a).</DELETED>
<DELETED>    ``(f) Benefits and Elections of Benefits.--In applying 
section 8433 to a member of the uniformed services who has an account 
balance in the Thrift Savings Fund--</DELETED>
        <DELETED>    ``(1) any reference in such section to separation 
        from Government employment shall be construed to refer to an 
        action described in section 211(b) of title 37; and</DELETED>
        <DELETED>    ``(2) the reference in section 8433(g)(1) to 
        contributions made under section 8432(a) shall be treated as 
        being a reference to contributions made to the Fund by the 
        member, whether made under section 8351, 8432(a), or this 
        section.</DELETED>
<DELETED>    ``(g) Basic Pay Defined.--For purposes of this section, 
the term `basic pay' means basic pay that is payable under section 204 
of title 37.''.</DELETED>
<DELETED>    (B) The table of sections at the beginning of chapter 84 
of title 5, United States Code, is amended by adding after the item 
relating to section 8440d the following:</DELETED>

<DELETED>``8440e. Members of the uniformed services on active duty.''.
<DELETED>    (3) Section 8432b(b) of title 5, United States Code, is 
amended--</DELETED>
        <DELETED>    (A) in paragraph (1), by striking ``Each 
        employee'' and inserting ``Except as provided in paragraph (4), 
        each employee'';</DELETED>
        <DELETED>    (B) by redesignating paragraph (4) as paragraph 
        (5); and</DELETED>
        <DELETED>    (C) by inserting after paragraph (3) the following 
        new paragraph (4)</DELETED>
<DELETED>    ``(4) No contribution may be made under this section for a 
period for which an employee made a contribution under section 
8440e.''.</DELETED>
<DELETED>    (4) Section 8473 of title 5, United States Code, is 
amended--</DELETED>
        <DELETED>    (A) in subsection (a), by striking ``14 members'' 
        and inserting ``15 members''; and</DELETED>
        <DELETED>    (B) in subsection (b)--</DELETED>
                <DELETED>    (i) by striking ``14 members'' and 
                inserting ``15 members'';</DELETED>
                <DELETED>    (ii) by striking ``and'' at the end of 
                paragraph (8);</DELETED>
                <DELETED>    (iii) by striking the period at the end of 
                paragraph (9) and inserting ``; and''; and</DELETED>
                <DELETED>    (iv) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(10) 1 shall be appointed to represent 
        participants (under section 8440e) who are members of the 
        uniformed services.''.</DELETED>
<DELETED>    (5) Paragraph (11) of section 8351(b) of title 5, United 
States Code, is redesignated as paragraph (8).</DELETED>
<DELETED>    (c) Regulations.--Not later than 180 days after the date 
of the enactment of this Act, the Executive Director appointed by the 
Federal Thrift Retirement Investment Board and the Secretary of Defense 
shall jointly issue regulations to implement section 8440e of title 5, 
United States Code (as added by subsection (a)) and section 211 of 
title 37, United States Code (as added by subsection (b)).</DELETED>

<DELETED>SEC. 203. SPECIAL RETENTION INITIATIVE.</DELETED>

<DELETED>    Section 211 of title 37, United States Code, as added by 
section 202, is amended by adding at the end the following:</DELETED>
<DELETED>    ``(c) Agency Contributions for Retention in Critical 
Specialties.--(1) The Secretary concerned may enter into an agreement 
with a member to make contributions to the Thrift Savings Fund for the 
benefit of the member if the member--</DELETED>
        <DELETED>    ``(A) is in a specialty designated by the 
        Secretary as critical to meet requirements (whether such 
        specialty is designated as critical to meet wartime or 
        peacetime requirements); and</DELETED>
        <DELETED>    ``(B) commits in such agreement to continue to 
        serve on active duty in that specialty for a period of six 
        years.</DELETED>
<DELETED>    ``(2) Under any agreement entered into with a member under 
paragraph (1), the Secretary shall make contributions to the Fund for 
the benefit of the member for each pay period of the 6-year period of 
the agreement for which the member makes a contribution out of basic 
pay to the Fund under this section. Paragraph (2) of section 8432(c) 
applies to the Secretary's obligation to make contributions under this 
paragraph, except that the reference in such paragraph to contributions 
under paragraph (1) of such section does not apply.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Soldiers', Sailors', Airmen's, and 
Marines' Bill of Rights Act of 1999''.

                      TITLE I--PAY AND ALLOWANCES

SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTURING OF BASIC PAY.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services by section 
203(a) of such title to become effective during fiscal year 2000 shall 
not be made.
    (b) January 1, Increase in Basic Pay.--Effective on January 1, 
2000, the rates of monthly basic pay for members of the uniformed 
services shall be increased by 4.8 percent.
    (c) Basic Pay Reform.--(1) Effective on July 1, 2000, the rates of 
monthly basic pay for members of the uniformed services within each pay 
grade are as follows:
      

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   6,594.30   6,810.30   6,953.10   6,993.30    7,171.80
O-7.............   5,479.50   5,851.80   5,851.50   5,894.40    6,114.60
O-6.............   4,061.10   4,461.60   4,754.40   4,754.40    4,772.40
O-5.............   3,248.40   3,813.90   4,077.90   4,127.70    4,291.80
O-4.............   2,737.80   3,333.90   3,556.20   3,606.04    3,812.40
O-3\3\..........   2,544.00   2,884.20   3,112.80   3,364.80    3,525.90
O-2\3\..........   2,218.80   2,527.20   2,910.90   3,000.00    3,071.10
O-1\3\..........   1,926.30   2,004.90   2,423.10   2,423.10    2,423.10
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,471.50   7,540.80   7,824.60   7,906.20    8,150.10
O-7.............   6,282.00   6,475.80   6,669.00   6,863.10    7,471.50
O-6.............   4,976.70   5,004.00   5,004.00   5,169.30    5,791.20
O-5.............   4,291.80   4,420.80   4,659.30   4,971.90    5,286.00
O-4.............   3,980.40   4,251.50   4,464.00   4,611.00    4,758.90
O-3\3\..........   3,702.60   3,850.20   4,040.40   4,139.10    4,139.10
O-2\3\..........   3,071.10   3,071.10   3,071.10   3,071.10    3,071.10
O-1\3\..........   2,423.10   2,423.10   2,423.10   2,423.10    2,423.10
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $10,655.1
                                     0  $10,707.6
                                                0  $10,930.2
                                                           0  $11,318.40
O-9.............       0.00   9,319.50   9,453.60   9,647.70    9,986.40
O-8.............   8,503.80   8,830.20   9,048.00   9,048.00    9,048.00
O-7.............   7,985.40   7,985.40   7,985.40   7,985.40    8,025.60
O-6.............   6,086.10   6,381.30   6,549.00   6,719.10    7,049.10
O-5.............   5,436.00   5,583.60   5,751.90   5,751.90    5,751.90
O-4.............   4,808.70   4,808.70   4,808.70   4,808.70    4,808.70
O-3\3\..........   4,139.10   4,139.10   4,139.10   4,139.10    4,139.10
O-2\3\..........   3,071.10   3,071.10   3,071.10   3,071.10    3,071.10
O-1\3\..........   2,423.10   2,423.10   2,423.10   2,423.10   2,423.10
------------------------------------------------------------------------
\1\Basic pay for these officers is limited to the rate of basic pay for
  level V of the Executive Schedule.
\2\While serving as Chairman or Vice Chairman of the Joint Chiefs of
  Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of
  Staff of the Air Force, Commandant of the Marine Corps, or Commandant
  of the Coast Guard, basic pay for this grade is calculated to be
  $12,441.00, regardless of cumulative years of service computed under
  section 205 of title 37, United States Code. Nevertheless, basic pay
  for these officers is limited to the rate of basic pay for level V of
  the Executive Schedule.
\3\Does not apply to commissioned officers who have been credited with
  over 4 years of active duty service as an enlisted member or warrant
  officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E\4\.........      $0.00      $0.00      $0.00  $3,364.80   $3,525.90
O-2E\4\.........       0.00       0.00       0.00   3,009.00    3,071.10
O-1E\4\.........       0.00       0.00       0.00   2,423.10    2,588.40
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E\4\.........  $3,702.60  $3,850.20  $4,040.40  $4,200.30   $4,291.80
O-2E\4\.........   3,168.60   3,333.90   3,461.40   3,556.20    3,556.20
O-1E\4\.........   2,683.80   2,781.30   2,877.60   3,009.00    3,009.00
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $4,416.90  $4,416.90  $4,416.90  $4,416.90   $4,416.90
O-2E............   3,556.20   3,556.20   3,556.20   3,556.20    3,556.20
O-1E............   3,009.00   3,009.00   3,009.00   3,009.00    3,009.00
------------------------------------------------------------------------



                            WARRANT OFFICERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   2,592.00   2,788.50   2,868.60   2,947.50   3,083.40
W-3..............   2,355.90   2,555.40   2,555.40   2,588.40   2,694.30
W-2..............   2,063.40   2,232.60   2,232.60   2,305.80   2,423.10
W-1..............   1,719.00   1,971.00   1,971.00   2,135.70   2,232.60
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,217.20   3,352.80   3,485.10   3,622.20   3,753.60
W-3..............   2,814.90   2,974.20   3,071.10   3,177.00   3,298.20
W-2..............   2,555.40   2,852.60   2,749.80   2,844.30   2,949.00
W-1..............   2,332.80   2,433.30   2,533.20   2,634.00   2,734.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $4,475.10  $4,628.70  $4,782.90  $4,937.40
W-4..............   3,888.00   4,019.00   4,155.60   4,289.70   4,427.10
W-3..............   3,418.50   3,539.10   3,659.40   3,780.00   3,900.90
W-2..............   3,058.40   3,163.80   3,270.90   3,378.30   3,378.30
W-1..............   2,835.00   2,910.90   2,910.90   2,910.90   2,910.90
------------------------------------------------------------------------


                            ENLISTED MEMBERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\4\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   1,765.80   1,927.80   2,001.00   2,073.00   2,147.70
E-6..............   1,518.90   1,678.20   1,752.60   1,824.30   1,899.30
E-5..............   1,332.60   1,494.00   1,566.00   1,640.40   1,714.50
E-4..............   1,242.90   1,373.10   1,447.20   1,520.10   1,593.90
E-3..............   1,171.50   1,260.60   1,334.10   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40
E-1..............  \5\1,005.
                          60   1,005.60   1,005.60   1,005.60   1,005.60
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\4\...........      $0.00  $3,015.30  $3,083.40  $3,169.80  $3,271.50
E-8..............   2,528.40   2,601.60   2,669.70   2,751.60   2,840.10
E-7..............   2,220.90   2,294.10   2,367.30   2,439.30   2,514.00
E-6..............   1,973.10   2,047.20   2,118.60   2,191.50   2,244.60
E-5..............   1,789.50   1,861.50   1,936.20   1,936.20   1,936.20
E-4..............   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90
E-3..............   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40
E-1..............   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\4\...........  $3,373.20  $3,473.40  $3,609.30  $3,744.00  $3,915.80
E-8..............   2,932.50   3,026.10   3,161.10   3,295.50   3,483.60
E-7..............   2,588.10   2,660.40   2,787.60   2,926.20   3,134.40
E-6..............   2,283.30   2,283.30   2,285.70   2,285.70   2,285.70
E-5..............   1,936.20   1,936.20   1,936.20   1,936.20   1,936.20
E-4..............   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90
E-3..............   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,123.20   1,127.40
E-1..............   1,005.60   1,005.60   1,005.60   1,005.60  1,005.60
------------------------------------------------------------------------
\4\While serving as Sergeant Major of the Army, Master Chief Petty
  Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant
  Major of the Marine Corps, or Master Chief Petty Officer of the Coast
  Guard, basic pay for this grade is $4,701.00, regardless of cumulative
  years of service computed under section 205 of title 37, United States
  Code.
\5\In the case of members in the grade E-1 who have served less than 4
  months on active duty, basic pay is $930.30.

SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FISCAL YEAR 2000.

    (a) ECI+0.5 Percent Increase for All Members.--Section 1009(c) of 
title 37, United States Code, is amended to read as follows:
    ``(c) ECI+0.5 Percent Increase for All Members.--Subject to 
subsection (d), an adjustment taking effect under this section during a 
fiscal year shall provide all eligible members with an increase in the 
monthly basic pay by the percentage equal to the sum of one percent 
plus the percentage calculated as provided under section 5303(a) of 
title 5 (without regard to whether rates of pay under the statutory pay 
systems are actually increased during such fiscal year under that 
section by the percentage so calculated).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2000.

SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.

    (a) Allowance.--(1) Chapter 7 of title 37, United States Code, is 
amended by inserting after section 402 the following new section:
``Sec. 402a. Special subsistence allowance
    ``(a) Entitlement.--Upon the application of an eligible member of a 
uniformed service described in subsection (b), the Secretary concerned 
shall pay the member a special subsistence allowance for each month for 
which the member is eligible to receive food stamp assistance.
    ``(b) Covered Members.--An enlisted member referred to subsection 
(a) is an enlisted member in pay grade E-5 or below.
    ``(c) Termination of Entitlement.--The entitlement of a member to 
receive payment of a special subsistence allowance terminates upon the 
occurrence of any of the following events:
            ``(1) Termination of eligibility for food stamp assistance.
            ``(2) Payment of the special subsistence allowance for 12 
        consecutive months.
            ``(3) Promotion of the member to a higher grade.
            ``(4) Transfer of the member in a permanent change of 
        station.
    ``(d) Reestablished Entitlement.--(1) After a termination of a 
member's entitlement to the special subsistence allowance under 
subsection (c), the Secretary concerned shall resume payment of the 
special subsistence allowance to the member if the Secretary 
determines, upon further application of the member, that the member is 
eligible to receive food stamps.
    ``(2) Payments resumed under this subsection shall terminate under 
subsection (c) upon the occurrence of an event described in that 
subsection after the resumption of the payments.
    ``(3) The number of times that payments are resumed under this 
subsection is unlimited.
    ``(e) Documentation of Eligibility.--A member of the uniformed 
services applying for the special subsistence allowance under this 
section shall furnish the Secretary concerned with such evidence of the 
member's eligibility for food stamp assistance as the Secretary may 
require in connection with the application.
    ``(f) Amount of Allowance.--The monthly amount of the special 
subsistence allowance under this section is $180.
    ``(g) Relationship to Basic Allowance for Subsistence.--The special 
subsistence allowance under this section is in addition to the basic 
allowance for subsistence under section 402 of this title.
    ``(h) Food Stamp Assistance Defined.--In this section, the term 
`food stamp assistance' means assistance under the Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.).
    ``(i) Termination of Authority.--No special subsistence allowance 
may be made under this section for any month beginning after September 
30, 2004.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 402 the 
following:

``402a. Special subsistence allowance.''.
    (b) Effective Date.--Section 402a of title 37, United States Code, 
shall take effect on the first day of the first month that begins not 
less than 180 days after the date of the enactment of this Act.
    (c) Annual Report.--(1) Not later than March 1 of each year after 
1999, the Secretary of Defense shall submit to Congress a report 
setting forth the number of members of the uniformed services who are 
eligible for assistance under the Food Stamp Act of 1977 (7 U.S.C. 2011 
et seq.).
    (2) In preparing the report, the Secretary shall consult with the 
Secretary of Transportation (with respect to the Coast Guard), the 
Secretary of Health and Human Services (with respect to the 
commissioned corps of the Public Health Service), and the Secretary of 
Commerce (with respect to the commissioned officers of the National 
Oceanic and Atmospheric Administration), who shall provide the 
Secretary of Defense with any information that the Secretary determines 
necessary to prepare the report.
    (3) No report is required under this section after March 1, 2004.

                     TITLE II--RETIREMENT BENEFITS

SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTERING UNIFORMED SERVICES 
              ON OR AFTER AUGUST 1, 1986.

    (a) Reduced Retired Pay Only for Members Electing 15-Year Service 
Bonus.--(1) Paragraph (2) of section 1409(b) of title 10, United States 
Code, is amended by inserting after ``July 31, 1986,'' the following: 
``has elected to receive a bonus under section 318 of title 37,''.
    (2)(A) Paragraph (2)(A) of section 1401a(b) of title 10, United 
States Code, is amended by striking ``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,'' and inserting ``Except 
as otherwise provided in this subsection, the Secretary shall increase 
the retired pay of each member and former member''.
    (B) Paragraph (3) of such section 1401a(b) is amended by inserting 
after ``August 1, 1986,'' the following: ``and has elected to receive a 
bonus under section 318 of title 37,''.
    (3) Section 1410 of title 10, United States Code, is amended by 
inserting after ``August 1, 1986,'' the following: ``who has elected to 
receive a bonus under section 318 of title 37,''.
    (b) Optional Lump-Sum Bonus at 15 Years of Service.--(1) Chapter 5 
of title 37, United States Code, is amended by adding at the end the 
following new section:
``Sec. 318. Special pay: 15-year service bonus elected by members 
              entering on or after August 1, 1986
    ``(a) Payment of Bonus.--The Secretary concerned shall pay a bonus 
to a member of a uniformed service who is eligible and elects to 
receive the bonus under this section.
    ``(b) Eligibility for Bonus.--A member of a uniformed service 
serving on active duty is eligible to receive a bonus under this 
section if the member--
            ``(1) first became a member of a uniformed service on or 
        after August 1, 1986;
            ``(2) has completed 15 years of active duty in the 
        uniformed services; and
            ``(3) if not already obligated to remain on active duty for 
        a period that would result in at least 20 years of active-duty 
        service, executes a written agreement (prescribed by the 
        Secretary concerned) to remain continuously on active duty for 
        five years after the date of the completion of 15 years of 
        active-duty service.
    ``(c) Election.--(1) A member eligible to receive a bonus under 
this section may elect to receive the bonus. The election shall be made 
in such form and within such period as the Secretary concerned 
requires.
    ``(2) An election made under this subsection is irrevocable.
    ``(d) Notification of Eligibility.--The Secretary concerned shall 
transmit a written notification of the opportunity to elect to receive 
a bonus under this section to each member who is eligible (or upon 
execution of an agreement described in subsection (b)(3), would be 
eligible) to receive the bonus. The Secretary shall complete the 
notification within 180 days after the date on which the member 
completes 15 years of active duty. The notification shall include the 
procedures for electing to receive the bonus and an explanation of the 
effects under sections 1401a, 1409, and 1410 of title 10 that such an 
election has on the computation of any retired or retainer pay which 
the member may become eligible to receive.
    ``(e) Form and Amount of Bonus.--A bonus under this section shall 
be paid in one lump sum of $30,000.
    ``(f) Time for Payment.--Payment of a bonus to a member electing to 
receive the bonus under this section shall be made not later than the 
first month that begins on or after the date that is 60 days after the 
Secretary concerned receives from the member an election that satisfies 
the requirements imposed under subsection (c).
    ``(g) Repayment of Bonus.--(1) If a person paid a bonus under this 
section fails to complete the total period of active duty specified in 
the agreement entered into under subsection (b)(3), the person shall 
refund to the United States the amount that bears the same ratio to the 
amount of the bonus payment as the unserved part of that total period 
bears to the total period.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement under this 
section does not discharge the member signing such agreement from a 
debt arising under the agreement or this subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``318. Special pay: 15-year service bonus elected by members entering 
                            on or after August 1, 1986.''.
    (c) Conforming Amendments to Survivor Benefit Plan Provisions.--(1) 
Section 1451(h)(3) of title 10, United States Code, is amended by 
inserting ``of certain members'' after ``retirement''.
    (2) Section 1452(i) of such title is amended by striking ``When the 
retired pay'' and inserting ``Whenever the retired pay''.
    (d) Related Technical Amendments.--(1) Section 1401a(b) of title 
10, United States Code, is amended--
            (A) by striking the heading for paragraph (1) and inserting 
        ``Increase required.--'';
            (B) by striking the heading for paragraph (2) and inserting 
        ``Percentage increase.--''; and
            (C) by striking the heading for paragraph (3) and inserting 
        ``Reduced percentage for certain post-august 1, 1986 members.--
        ''.
    (2) Section 1409(b)(2) of title 10, United States Code, is amended 
by inserting ``certain'' after ``Reduction applicable to'' in the 
paragraph heading.
    (3)(A) The heading of section 1410 of such title is amended by 
inserting ``certain'' before ``members''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 71 of title 10, United States Code, is amended 
by inserting ``certain'' before ``members''.

SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.

    (a) Participation Authority.--(1)(A) Chapter 3 of title 37, United 
States Code, is amended by adding at the end the following:
``Sec. 211. Participation in Thrift Savings Plan
    ``(a) Authority.--A member of the uniformed services serving on 
active duty for a period of more than 30 days may participate in the 
Thrift Savings Plan in accordance with section 8440e of title 5.
    ``(b) Rule of Construction Regarding Separation.--For the purposes 
of section 8440e of title 5, the following actions shall be considered 
separation of a member of the uniformed services from Government 
employment:
            ``(1) Release of the member from active-duty service (not 
        followed by a resumption of active-duty service within 30 days 
        after the effective date of the release).
            ``(2) Transfer of the member by the Secretary concerned to 
        a retired list maintained by the Secretary.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``211. Participation in Thrift Savings Plan.''.
    (2)(A) Subchapter III of chapter 84 of title 5, United States Code, 
is amended by adding at the end the following:
``Sec. 8440e. Members of the uniformed services on active duty
    ``(a) Participation Authorized.--(1) A member of the uniformed 
services authorized to participate in the Thrift Savings Plan under 
section 211(a) of title 37 may contribute to the Thrift Savings Fund.
    ``(2) An election to contribute to the Thrift Savings Fund under 
paragraph (1) may be made only during a period provided under section 
8432(b) for individuals subject to this chapter.
    ``(b) Applicability of Thrift Savings Plan Provisions.--Except as 
otherwise provided in this section, the provisions of this subchapter 
and subchapter VII of this chapter shall apply with respect to members 
of the uniformed services making contributions to the Thrift Savings 
Fund as if such members were employees within the meaning of section 
8401(11).
    ``(c) Maximum Contribution From Basic Pay.--The amount contributed 
by a member of the uniformed services for any pay period out of basic 
pay may not exceed 5 percent of such member's basic pay for such pay 
period.
    ``(d) Other Member Contributions.--A member of the uniformed 
services making contributions to the Thrift Savings Fund out of basic 
pay may also contribute (by direct transfer to the Fund) any part of 
any special or incentive pay that the member receives under section 
308, 308a, 308f, or 318 of title 37. No contribution made under this 
subsection shall be subject to, or taken into account for purposes of, 
the first sentence of section 8432(d), relating to the applicability of 
any limitation under section 415 of the Internal Revenue Code of 1986.
    ``(e) Agency Contributions Generally Prohibited.--Except as 
provided in section 211(c) of title 37, no contribution under section 
8432(c) of this title may be made for the benefit of a member of the 
uniformed services making contributions to the Thrift Savings Fund 
under subsection (a).
    ``(f) Benefits and Elections of Benefits.--In applying section 8433 
to a member of the uniformed services who has an account balance in the 
Thrift Savings Fund--
            ``(1) any reference in such section to separation from 
        Government employment shall be construed to refer to an action 
        described in section 211(b) of title 37; and
            ``(2) the reference in section 8433(g)(1) to contributions 
        made under section 8432(a) shall be treated as being a 
        reference to contributions made to the Fund by the member, 
        whether made under section 8351, 8432(a), or this section.
    ``(g) Basic Pay Defined.--For purposes of this section, the term 
`basic pay' means basic pay that is payable under section 204 of title 
37.''.
    (B) The table of sections at the beginning of chapter 84 of title 
5, United States Code, is amended by adding after the item relating to 
section 8440d the following:

``8440e. Members of the uniformed services on active duty.''.
    (3) Section 8432b(b) of title 5, United States Code, is amended--
            (A) in paragraph (1), by striking ``Each employee'' and 
        inserting ``Except as provided in paragraph (4), each 
        employee'';
            (B) by redesignating paragraph (4) as paragraph (5); and
            (C) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) No contribution may be made under this section for a period 
for which an employee made a contribution under section 8440e.''.
    (4) Section 8473 of title 5, United States Code, is amended--
            (A) in subsection (a), by striking ``14 members'' and 
        inserting ``15 members''; and
            (B) in subsection (b)--
                    (i) by striking ``14 members'' and inserting ``15 
                members'';
                    (ii) by striking ``and'' at the end of paragraph 
                (8);
                    (iii) by striking the period at the end of 
                paragraph (9) and inserting ``; and''; and
                    (iv) by adding at the end the following:
            ``(10) 1 shall be appointed to represent participants 
        (under section 8440e) who are members of the uniformed 
        services.''.
    (5) Paragraph (11) of section 8351(b) of title 5, United States 
Code, is redesignated as paragraph (8).
    (b) Applicability.--The authority of members of the uniformed 
services to participate in the Thrift Savings Plan under section 211 of 
title 37, United States Code (as added by subsection (a)(1)), shall 
take effect on July 1, 2000.
    (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Executive Director appointed by the Federal 
Thrift Retirement Investment Board shall issue regulations to implement 
section 8440e of title 5, United States Code (as added by subsection 
(a)(2)) and section 211 of title 37, United States Code (as added by 
subsection (a)(1)).

SEC. 203. SPECIAL RETENTION INITIATIVE.

    Section 211 of title 37, United States Code, as added by section 
202, is amended by adding at the end the following:
    ``(c) Agency Contributions for Retention in Critical Specialties.--
(1) The Secretary concerned may enter into an agreement with a member 
to make contributions to the Thrift Savings Fund for the benefit of the 
member if the member--
            ``(A) is in a specialty designated by the Secretary as 
        critical to meet requirements (whether such specialty is 
        designated as critical to meet wartime or peacetime 
        requirements); and
            ``(B) commits in such agreement to continue to serve on 
        active duty in that specialty for a period of six years.
    ``(2) Under any agreement entered into with a member under 
paragraph (1), the Secretary shall make contributions to the Fund for 
the benefit of the member for each pay period of the 6-year period of 
the agreement for which the member makes a contribution out of basic 
pay to the Fund under this section. Paragraph (2) of section 8432(c) 
applies to the Secretary's obligation to make contributions under this 
paragraph, except that the reference in such paragraph to contributions 
under paragraph (1) of such section does not apply.''.

                 TITLE III--MONTGOMERY GI BILL BENEFITS

SEC. 301. INCREASE IN RATES OF EDUCATIONAL ASSISTANCE FOR FULL-TIME 
              EDUCATION.

    (a) Increase.--Section 3015 of title 38, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking ``$528'' and 
        inserting ``$600''; and
            (2) in subsection (b)(1), by striking ``$429'' and 
        inserting ``$488''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to 
educational assistance allowances paid for months after September 1999. 
However, no adjustment in rates of educational assistance shall be made 
under subsection (g) of section 3015 of title 38, United States Code, 
for fiscal year 2000.

SEC. 302. TERMINATION OF REDUCTIONS OF BASIC PAY.

    (a) Repeals.--(1) Section 3011 of title 38, United States Code, is 
amended by striking subsection (b).
    (2) Section 3012 of such title is amended by striking subsection 
(c).
    (3) The amendments made by paragraphs (1) and (2) shall take effect 
on the date of the enactment of this Act and shall apply to individuals 
whose initial obligated period of active duty under section 3011 or 
3012 of title 38, United States Code, as the case may be, begins on or 
after such date.
    (b) Termination of Reductions in Progress.--Any reduction in the 
basic pay of an individual referred to in section 3011(b) of title 38, 
United States Code, by reason of such section 3011(b), or of any 
individual referred to in section 3012(c) of such title by reason of 
such section 3012(c), as of the date of the enactment of this Act shall 
cease commencing with the first month beginning after such date, and 
any obligation of such individual under such section 3011(b) or 
3012(c), as the case may be, as of the day before such date shall be 
deemed to be fully satisfied as of such date.
    (c) Conforming Amendment.--Section 3034(e)(1) of title 38, United 
States Code, is amended in the second sentence by striking ``as soon as 
practicable'' and all that follows through ``such additional times'' 
and inserting ``at such times''.

SEC. 303. ACCELERATED PAYMENTS OF EDUCATIONAL ASSISTANCE.

    Section 3014 of title 38, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The Secretary shall 
        pay''; and
            (2) by adding at the end the following new subsection (b):
    ``(b)(1) When the Secretary determines that it is appropriate to 
accelerate payments under the regulations prescribed pursuant to 
paragraph (6), the Secretary may make payments of basic educational 
assistance allowance under this subchapter on an accelerated basis.
    ``(2) The Secretary may pay a basic educational assistance 
allowance on an accelerated basis only to an individual entitled to 
payment of the allowance under this subchapter who has made a request 
for payment of the allowance on an accelerated basis.
    ``(3) In the event an adjustment under section 3015(g) of this 
title in the monthly rate of basic educational assistance will occur 
during a period for which a payment of an allowance is made on an 
accelerated basis under this subsection, the Secretary shall--
            ``(A) pay on an accelerated basis the amount the allowance 
        otherwise payable under this subchapter for the period without 
        regard to the adjustment under that section; and
            ``(B) pay on the date of the adjustment any additional 
        amount of the allowance that is payable for the period as a 
        result of the adjustment.
    ``(4) The entitlement to a basic educational assistance allowance 
under this subchapter of an individual who is paid an allowance on an 
accelerated basis under this subsection shall be charged at a rate 
equal to one month for each month of the period covered by the 
accelerated payment of the allowance.
    ``(5) A basic educational assistance allowance shall be paid on an 
accelerated basis under this subsection as follows:
            ``(A) In the case of an allowance for a course leading to a 
        standard college degree, at the beginning of the quarter, 
        semester, or term of the course in a lump-sum amount equivalent 
        to the aggregate amount of monthly allowance otherwise payable 
        under this subchapter for the quarter, semester, or term, as 
        the case may be, of the course.
            ``(B) In the case of an allowance for a course other than a 
        course referred to in subparagraph (A)--
                    ``(i) at the later of (I) the beginning of the 
                course, or (II) a reasonable time after the request for 
                payment by the individual concerned; and
                    ``(ii) in any amount requested by the individual 
                concerned up to the aggregate amount of monthly 
                allowance otherwise payable under this subchapter for 
                the period of the course.
    ``(6) The Secretary shall prescribe regulations for purposes of 
making payments of basic educational allowance on an accelerated basis 
under this subsection. Such regulations shall specify the circumstances 
under which accelerated payments should be made and include 
requirements relating to the request for, making and delivery of, and 
receipt and use of such payments.''.

SEC. 304. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE.

    (a) Authority To Transfer to Family Member.--Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance
    ``(a) The Secretary may, for the purpose of enhancing recruiting 
and retention, and at the Secretary's sole discretion, permit an 
individual entitled to educational assistance under this subchapter to 
elect to transfer such individual's entitlement to such assistance, in 
whole or in part, to the individuals specified in subsection (b).
    ``(b) An individual's entitlement to educational assistance may be 
transferred when authorized under subsection (a) as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).
    ``(c)(1) An individual electing to transfer an entitlement to 
educational assistance under this section shall--
            ``(A) designate the individual or individuals to whom such 
        entitlement is being transferred and the percentage of such 
        entitlement to be transferred to each such individual; and
            ``(B) specify the period for which the transfer shall be 
        effective for each individual designated under subparagraph 
        (A).
    ``(2) The aggregate amount of the entitlement transferable by an 
individual under this section may not exceed the aggregate amount of 
the entitlement of such individual to educational assistance under this 
subchapter.
    ``(3) An individual electing to transfer an entitlement under this 
section may elect to modify or revoke the transfer at any time before 
the use of the transferred entitlement. An individual shall make the 
election by submitting written notice of such election to the 
Secretary.
    ``(d)(1) The use of any entitlement transferred under this section 
shall be charged against the entitlement of the individual making the 
transfer at the rate of one month for each month of transferred 
entitlement that is used.
    ``(2) Except as provided in paragraph (3), an individual using 
entitlement transferred under this section shall be subject to the 
provisions of this chapter in such use as if such individual were 
entitled to the educational assistance covered by the transferred 
entitlement in the individual's own right.
    ``(3) Notwithstanding section 3031 of this title, a child shall 
complete the use of any entitlement transferred to the child under this 
section before the child attains the age of 26 years.
    ``(e) In the event of an overpayment of educational assistance with 
respect to an individual to whom entitlement is transferred under this 
section, such individual and the individual making the transfer under 
this section shall be jointly and severally liable to the United States 
for the amount of the overpayment for purposes of section 3685 of this 
title.
    ``(f) The Secretary shall prescribe regulations for purposes of 
this section. Such regulations shall specify the manner and effect of 
an election to modify or revoke a transfer of entitlement under 
subsection (c)(3).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
3019 the following new item:

``3020. Transfer of entitlement to basic educational assistance.''.

                            TITLE IV--REPORT

SEC. 401. ANNUAL REPORT ON EFFECTS OF INITIATIVES ON RECRUITMENT AND 
              RETENTION.

    (a) Requirement for Report.--On December 1 of each year, the 
Secretary of Defense shall submit to Congress a report that sets forth 
the Secretary's assessment of the effects that the provisions of this 
Act and the amendments made by the Act are having on recruitment and 
retention of personnel for the Armed Forces.
    (b) First Report.--The first report under this section shall be 
submitted not later than December 1, 2000.