Effect of death or retirement or separation of a member of the uniformed services due to injury, illness, or other impairment on entitlement to bonus or similar payments

(a)

Limitations on repayment; continued payment

Section 303a(e) of title 37, United States Code, is amended— (1)in paragraph (1)— (A)by striking A member and inserting Except as provided in paragraphs (2) and (3), a member; and (B)by striking , except in certain circumstances authorized by the Secretary concerned; (2)by redesignating paragraphs (2), (3), and (4) as paragraphs (4), (5), and (6), respectively; (3)in paragraph (4), as so redesignated, by striking may be granted in the first sentence and inserting may be granted under paragraph (3); (4)in paragraph (6)(B), as so redesignated, by striking paragraph (3)(B) and inserting paragraph (5)(B); and (5)by inserting after paragraph (1) the following new paragraphs:

(2)(A)If a member of the uniformed services who is entitled to a bonus or similar benefit no longer satisfies the eligibility requirements for continued receipt of the bonus or similar benefit because of the death of the member or the retirement or separation of the member under chapter 61 of title 10 due to an injury, illness, or other impairment, not incurred as a result of the member’s own misconduct, the Secretary concerned— (i)may not require the member or the member’s estate to repay to the United States the unearned portion of the bonus or similar benefit previously paid; and (ii)shall pay any portion of the bonus or similar benefit not yet paid as provided by subparagraph (B). (B)In the case of the death of a member described in subparagraph (A), the Secretary concerned shall include the amount of any unpaid portion of a bonus or similar benefit in the final pay of the deceased member. In other cases, the unpaid portion of the bonus or similar benefit shall be paid to the member as soon as practicable, but not later than 90 days following the date of the retirement or separation of the member. (3)(A)In the case of circumstances not covered by paragraph (2), the Secretary concerned may grant an exception to the repayment requirements of paragraph (1) for a member of the uniformed services otherwise subject to the repayment requirements if the Secretary determines that imposing the repayment requirements would be— (i)contrary to personnel policy or management objectives; (ii)against equity and good conscience; or (iii)contrary to the best interests of the United States. (B)In addition to granting an exception for a member under subparagraph (A) to the repayment requirements, the Secretary concerned may authorize the continued payment of any portion of a bonus or similar benefit not yet paid to a member who is unable to fulfill the eligibility requirements for receipt of the bonus or similar benefit, subject to the Secretary making the determination required by subparagraph (A). (C)The grant of an exception under subparagraph (A), the authorization for the continued payment of a bonus or similar benefit under subparagraph (B), and the determinations required by such subparagraphs shall be made by the Secretary concerned on a case-by-case basis.

(b)

Retroactive application of amendment

Paragraphs (2) and (3) of section 303a(e) of title 37, United States Code, as added by subsection (a), shall apply with respect to members of the uniformed services who were entitled to a bonus or similar benefit (as defined in such section) during the period beginning on September 11, 2001, and ending on the date of the enactment of this Act, but who no longer satisfied the eligibility requirements for continued receipt of the bonus or similar benefit because of the death, retirement, or separation of the member during that period due to an injury, illness, or other impairment, not incurred as a result of the member’s own misconduct.