INCREASE IN SELECTIVE REENLISTMENT BONUS

SEC. 611. INCREASE IN SELECTIVE REENLISTMENT BONUS (a) Increase in Selective Reenlistment Bonus.—Section 308(a) of title 37, United States Code, is amended— (1) by striking out “paid a bonus,” in paragraph (1) and all that follows in that paragraph and inserting in lieu thereof “paid a bonus as provided in paragraph (2).”; (2) by redesignating paragraph (2) as paragraph (4) and in that paragraph sinking out “of this subsection”; and (3) by inserting after paragraph (1) the following new paragraphs: “(2) The bonus to be paid under paragraph (1) may not exceed the lesser of the following amounts: “(A) The amount equal to the product of— “(i) ten times the monthly rate of basic pay to which the member was entitled at the time of the discharge or release of the member; and “(ii) the number of years (or the monthly fractions thereof) of the term of reenlistment or extension of enlistment, not to exceed six. “(B) $45,000. (4) ) Any portion of a term of reenlistment or extension of enlistment of a member that, when added to the total years of service of the member at the time of discharge or release, exceeds 16 years may not be used in computing a bonus under paragraph (2)(A).”. (b) Effective Date.—The amendments made by this section shall apply with respect to reenlistment and extension of enlistment agreements entered into under section 308(a) of title 37, United States Code, after September 30, 1989.