DEDUCTIONS FROM THE PAY OF ENLISTED MEMBERS AND WARRANT OFFICERS TO BENEFIT ARMED FORCES RETIREMENT HOMES

SEC. 343. DEDUCTIONS FROM THE PAY OF ENLISTED MEMBERS AND WARRANT OFFICERS TO BENEFIT ARMED FORCES RETIREMENT HOMES (a) In General.—Section 1007 of title 37, United States Code, is amended by adding at the end the following new subsection: “(i)(1) There shall be deducted each month from the pay of each enlisted member and warrant officer of the armed forces on active 103 STAT. 1421duty an amount (determined under paragraph (3)) not to exceed 50 cents. “(2) Amounts deducted under paragraph (1) shall be— “(A) deposited in the Soldiers’ Home, permanent fund, in the case of deductions from the pay of enlisted members and war-rant officers in the Army and Air Force; and “(B) credited to the funds available for the operation of the Naval Home, in the case of deductions from the pay of enlisted members and warrant officers in the Navy, Marine Corps, or Coast Guard (when it is operating as a service in the Navy). “(3) The Secretary of Defense, after consultation with the Governor of the Naval Home and the board of commissioners for the United States Soldiers’ and Airmen’s Home, shall determine from time to time the amount to be deducted under paragraph (1) from the pay of enlisted members and warrant officers on the basis of the financial needs of the homes. The amount to be deducted may be fixed at different amounts on the basis of grade or length of service, or both. “(4) In this subsection, the term ‘armed forces’ does not include the Coast Guard when it is not operating as a service in the Navy. “(5) This subsection does not apply to an enlisted member or warrant officer of a reserve component.”. (b) Effective Date.—(1) Except as provided in paragraph (2), subsection (i) of section 1007 of title 37, United States Code, as added by subsection (a), shall take effect on the first day of the first month beginning after the date of the enactment of this Act. (2) With respect to deductions from the pay of an enlisted member or warrant officer in the Navy, Marine Corps, or Coast Guard (when it is operating as a service in the Navy), such subsection shall take effect on October 1, 1990.