OFFICER RETENTION FLEXIBILITY

SEC. 521. OFFICER RETENTION FLEXIBILITY (a) In General.— (1) Chapter 36 of title 10, United States Code, is amended by inserting after section 638 the following new section: “§ 638a. Modification to rules for continuation on active duty; enhanced authority for selective early retirement and early discharges “(a) The Secretary of Defense may authorize the Secretary of a military department, during the five-year period beginning on October 1, 1990, to take any of the actions set forth in subsection (b) with respect to officers of an armed force under the jurisdiction of that Secretary. “(b) Actions which the Secretary of a military department may take with respect to officers of an armed force when authorized to do so under subsection (a) are the following: “(1) Shortening the period of the continuation on active duty established under section 637 of this title for a regular officer who is serving on active duty pursuant to a selection under that section for continuation on active duty. “(2) Providing that regular officers on the active-duty list may be considered for early retirement by a selection board convened under section 611(b) of this title in the case of officers described in any of subparagraphs (A) through (C) as follows: 104 STAT. 1560 “(A) Officers in the regular grade of lieutenant colonel or commander who would be subject to consideration for selection for early retirement under section 638(a)(1)(A) of this title except that they have failed of selection for promotion only one time (rather than two or more times). “(B) Officers in the regular grade of colonel or, in the case of the Navy, captain who would be subject to consideration for selection for early retirement under section 638(a)(1)(B) of this title except that they have served on active duty in that grade less than four years (but not less than two years). “(C) Officers holding a regular grade below the grade of colonel or, in the case of the Navy, captain who are not eligible for retirement under section 3911, 6323, or 8911 of this title but who after two additional years of active service as a commissioned officer would be eligible for retirement under one of those sections and whose names are not on a list of officers recommended for promotion. “(3) Suspending section 638(c) of this title. “(4) Convening selection boards under section 611(b) of this title to consider for discharge regular officers on the active-duty list in a grade below lieutenant colonel or commander— “(A) who have served at least one year of active duty in the grade currently held; “(B) whose names are not on a list of officers recommended for promotion; and “(C) who are not eligible to be retired under any provision of law and are not within two years of becoming so eligible. “(c) In the case of an action under subsection (b)(2), the Secretary of the military department concerned shall specify the number of officers described in that subsection which a selection board convened under section 611(b) of this title pursuant to the authority of that subsection may recommend for early retirement. Such number may not be more than 30 percent of the number of officers considered in each grade in each competitive category. “(d) (1) In the case of an action under subsection (b)(4), the Secretary of the military department concerned may submit to a selection board convened pursuant to that subsection— “(A) the names of all officers described in that subsection in a particular grade and competitive category; or “(B) the names of all officers described in that subsection in a particular grade and competitive category who also are in particular year groups or specialties, or both, within that competitive category. “(2) The Secretary concerned shall specify the total number of officers to be recommended for discharge by a selection board convened pursuant to subsection (b)(4). That number may not be more than 30 percent of the number of officers considered— “(A) in each grade in each competitive category; or “(B) in each grade, year group, or specialty (or combination thereof) in each competitive category. “(3) The total number of officers described in subsection (b)(4) from any of the armed forces (or from any of the armed forces in a particular grade) who may be recommended during a fiscal year for discharge by a selection board convened pursuant to the authority of that subsection may not exceed 70 percent of the decrease, as compared to the preceding fiscal year, in the number of officers of that armed force (or the number of officers of that armed force in104 STAT. 1561 that grade) authorized to be serving on active duty as of the end of that fiscal year. “(4) An officer who is recommended for discharge by a selection board convened pursuant to the authority of subsection (b)(4) and whose discharge is approved by the Secretary concerned shall be discharged on a date specified by the Secretary concerned. “(5) Selection of officers for discharge under this subsection shall be based on the needs of the service. “(e) The discharge or retirement of an officer pursuant to this section shall be considered to be involuntary for purposes of any other provision of law.”. (2) The table of sections at the beginning of subchapter IV of such chapter is amended by inserting after the item relating to section 638 the following new item: “638a. Modification to rules for continuation on active duty; enhanced authority for selective early retirement and early discharges.”. (b) Conforming Amendments.— (1) Section 637 of title 10, United States Code, is amended— (A) by adding at the end of subsection (c) the following new sentence: “The period of the continuation on active duty of an officer under this section may be reduced by the Secretary concerned in the case of any officer as provided in section 638a of this title.”; (B) by redesignating subsection (d) as subsection (e); and (C) by inserting after subsection (c) the following new subsection: “(d) For purposes of this section, a period of continuation on active duty under this section expires or is completed on the earlier of (1) the date originally established for the termination of such period, or (2) the date established for the termination of such period by any shortening of such period under section 638a of this title.”. (2) (A) Subsection (a) of section 638 of title 10, United States Code, is amended by adding at the end the following new paragraph: “(3) A regular officer on the active-duty list of the Army, Navy, Air Force, or Marine Corps may also be considered for early retirement under the circumstances prescribed in section 638a of this title.”. (B) Subsection (b)(1) of such section is amended by inserting “or section 638a of this title” after “under this section”.