SEPARATION PAY

SEC. 501. SEPARATION PAY (a) Authority for Separation Pay for Regular Enlisted Members.— Section 1174 of title 10, United States Code, is amended— (1) by inserting “Regular Officers.—(1)” in subsection (a) after “(a)”; (2) by redesignating subsection (b) as paragraph (2) of subsection (a); and (3) by inserting after subsection (a) the following new subsection (b): “(b) Regular Enlisted Members.— (1) A regular enlisted member of an armed force who is discharged involuntarily or as the result of the denial of the reenlistment of the member and who has completed six or more, but less than 20, years of active service immediately before that discharge is entitled to separation pay computed under subsection (d) unless the Secretary concerned determines that the conditions under which the member is discharged do not warrant payment of such pay. “(2) Separation pay of an enlisted member shall be computed under paragraph (1) of subsection (d), except that such pay shall be computed under paragraph (2) of such subsection in the case of a member who is discharged under criteria prescribed by the Secretary of Defense.”. (b) Period of Service Required for Eligibility.— Such section is further amended— (1) by striking out “five or more” in subsection (a)(2) (as redesignated by subsection (a)(2) of this section) and in subsection (c)(1) and inserting in lieu thereof “six or more”; and 104 STAT. 1550 (2) by striking out “at least five years” in subsection (c)(3) and inserting in lieu thereof “at least six years”. (c) Repeal of Limitation on Amount of Separation Pay.— (1) Subsection (d) of such section is amended— (A) by striking out “or $30,000, whichever is less” in paragraph (1); and (B) by striking out “, but in no event more than $15,000”. (2) Subsection (g) of such section is amended— (A) by striking out “(1)” after “(g)”; and (B) by striking out paragraph (2). (d) Requirement for Service in Ready Reserve; Exclusion for Members Discharged During Initial Period of Service.— Subsection (e) of such section is amended to read as follows: “(e) Requirement for Service in Ready Reserve; Exceptions To Eligibility.— (1) (A) As a condition of receiving separation pay under this section, a person otherwise eligible for that pay shall be required to enter into a written agreement with the Secretary concerned to serve in the Ready Reserve of a reserve component for a period of not less than three years following the person’s discharge or release from active duty. If the person has a service obligation under section 651 of this title or under any other provision of law that is not completed at the time the person is discharged or released from active duty, the three-year obligation under this subsection shall begin on the day after the date on which the person completes the person’s obligation under such section or other provision of law. “(B) Each person who enters into an agreement referred to in subparagraph (A) who is not already a Reserve of an armed force and who is qualified shall, upon such person’s discharge or release from active duty, be enlisted or appointed, as appropriate, as a Reserve and be transferred to a reserve component. “(2) A member who is discharged or released from active duty is not eligible for separation pay under this section if the member— “(A) is discharged or released from active duty at his request; “(B) is discharged or released from active duty during an initial term of enlistment or an initial period of obligated service; “(C) is released from active duty for training; or “(D) upon discharge or release from active duty, is immediately eligible for retired or retainer pay based on his military service.”. (e) Effective Date.— (1) Except as provided in paragraph (2), subsection (b) of section 1174 of title 10, United States Code, as added by subsection (a), and the amendments made by subsections (b), (c), and (d) shall apply with respect to a member of the Armed Forces who is discharged, or released from active duty, after the date of the enactment of this Act. (2) The amendments made by subsection (b) shall not apply in the case of a member (other than a regular enlisted member) of the Armed Forces who (A) is serving on active duty on the date of the enactment of this Act, (B) is discharged, or released from active duty, after that date; and (C) on that date has five or more, but less than six, years of active service in the Armed Forces. (f) Conforming Cross-Reference Amendments.— (1) Section 1186(c) of title 10, United States Code, is amended by striking out “section 1174(b)” and inserting in lieu thereof “section 1174(a)(2)”. 104 STAT. 1551 (2) Section 6383(h) of such title is amended by striking out “section 1174(a)” and inserting in lieu thereof “section 1174(a)(1)”. (g) Technical Amendments.— (1) Subsection (a) of section 1174 of such title (as amended by subsection (a) of this section) is further amended— (A) by striking out “or release”; and (B) by striking out “, under section 564” and all that follows through “Management Act” and inserting in lieu thereof “or under section 564 or 6383 of this title”. (2) Subsection (c)(1) of such section is amended by striking out “after September 14, 1981,”. (h) Stylistic Amendments.— Such section is further amended— (1) by inserting “Other Members.—” in subsection (c) after “(c)”; (2) by inserting “Amount of Separation Pay.—” in subsection (d) after “(d)”; (3) by inserting “Counting Fractional Years of Service.—” in subsection (f) after “(f)”; (4) by inserting “Coordination With Other Separation or Severance Pay Benefits.—” in subsection (g) after “(g)”; (5) by inserting “Coordination with Retired or Retainer Pay and Disability Compensation.—” in subsection (h) after “(h)”; and (6) by inserting “Regulations; Crediting of Other Commissioned Service.—” in subsection (i) after “(i)”.