TECHNICAL AMENDMENTS TO MILITARY RETIREMENT LAWS

SEC. 651. TECHNICAL AMENDMENTS TO MILITARY RETIREMENT LAWS (a) Clarification of Computation of Retired Pay Under High-Three System.—Section 1407 of title 10, United States Code, is amended— (1) in subsection (b), by inserting “or (d)” after “subsection (c)”; (2) by striking out subsections (c), (e), (f) and (g); (3) by redesignating subsection (d) as subsection (e); and (4) by inserting after subsection (b) the following new subsections (c) and (d): “(c) Computation of High-Three Average for Members Entitled to Retired or Retainer Pay for Regular Service.— “(1) General rule.— The high-three average of a member entitled to retired or retainer pay under any provision of law other than section 1204 or 1205 or section 1331 of this title is the amount equal to— “(A) the total amount of monthly basic pay to which the member was entitled for the 36 months (whether or not consecutive) out of all the months of active service of the member for which the monthly basic pay to which the member was entitled was the highest, divided by “(B) 36. “(2) Special rule for short-term disability retirees.— In the case of a member who is entitled to retired pay under section 1201 or 1202 of this title and who has completed less than 36 months of active service, the member’s high-three average (notwithstanding paragraph (1)) is the amount equal “(A) the total amount of basic pay to which the member was entitled during the period of the member’s active service, divided by “(B) the number of months (including any fraction thereof) of the member’s active service. “(d) Computation of High-Three Average for Members and Former Members Entitled to Retired Pay for Nonregular Service.— “(1) Retired pay under chapter 67.—The high-three average of a member or former member entitled to retired pay under section 1331 of this title is the amount equal to— “(A) the total amount of monthly basic pay to which the member or former member was entitled during the member or former member’s high-36 months (or to which the member or former member would have been entitled if the member or former member had served on active duty during the entire period of the member or former member’s high-36 months), divided by “(B) 36. “(2) Nonregular service disability retired pay.— The high-three average of a member entitled to retired pay under section 1204 or 1205 of this title is the amount equal to— “(A) the total amount of monthly basic pay to which the member was entitled during the member’s high-36 months (or to which the member would have been entitled if the 103 STAT. 1460member had served on active duty during the entire period of the member’s high-36 months), divided by “(B) 36. “(3) Special rule for short-term disability retirees.— In the case of a member who is entitled to retired pay under section 1204 or 1205 of this title and who was a member for less than 36 months before being retired under that section, the member’s high-three average (notwithstanding paragraph (2)) is the amount equal to— “(A) the total amount of basic pay to which the member was entitled during the entire period the member was a member of a uniformed service before being so retired (or to which the member would have been entitled if the member had served on active duty during the entire period the member was a member of a uniformed service before being so retired), divided by “(B) the number of months (including any fraction thereof) which the member was a member before being so retired. “(4) High-36 months.—The high-36 months of a member or former member whose retired pay is covered by paragraph (1) or (2) are the 36 months (whether or not consecutive) out of all the months before the member or former member became entitled to retired pay for which the monthly basic pay to which the member or former member was entitled (or would have been entitled if serving on active duty during those months) was the highest. In the case of a former member, only months during which the former member was a member of a uniformed service may be used for purposes of the preceding sentence.”. (b) Clarification of Applicability of Provisions to Former Members Entitled to Retired Pay.—Chapter 71 of title 10, United States Code, is amended as follows: (1) Section 1401a is amended— (A) in subsection (b)(3), by inserting “and former member” after “member” the first place it appears; (B) in subsection (e), by inserting “or former member” after “member” the first and third places it appears; and (C) in subsection (f), by inserting “or former member” in the second sentence after “member”. (2) Section 1407(b) is amended by striking out “member” and “member’s” and inserting in lieu thereof “person” and “per-son’s”, respectively. (3) Section 1409(a)(1) is amended by striking out “who is retired” and inserting in lieu thereof “who is entitled to that pay”- . , , (4) Section 1410 is amended— (A) in the matter preceding paragraph (1), by inserting . “or former member” after “member” each place (other than the second place) it appears; and (B) in paragraph (1), by striking out “member’s retired pay” and inserting in lieu thereof “retired pay of the member or former member”. (c) Payments From Military Retirement Fund.— Section 1463(a) of such title is amended— (1) in paragraph (1), by striking out “persons” and inserting in lieu thereof “members”; 103 STAT. 1461 (2) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (3) by inserting after paragraph (1) the following new paragraph (2): “(2) retired pay payable under chapter 67 of this title to former members of the armed forces (other than retired pay payable by the Secretary of Transportation);”. (d) Clarification of Entitlement of Retired Reservists for Service Performed While in Retired Status.—Section 675 of title 10, United States Code, is amended by adding at the end the following: “A member of the Ready Reserve (other than a member transferred to the Retired Reserve under section 1001(b) of this title) who is ordered to active duty or other appropriate duty in a retired status may be credited under chapter 67 of this title with service performed pursuant to such order. A member in a retired status is not eligible for promotion (or for consideration for promotion) as a Reserve.”.