GRADE OF RETIRED OFFICERS RECALLED TO ACTIVE DUTY.

SEC. 506. GRADE OF RETIRED OFFICERS RECALLED TO ACTIVE DUTY. (a) Service in Higher Grade Held While on Active Duty.—Subsection (d) of section 688 of title 10, United States Code, is amended— (1) by striking out “paragraph (2)” in paragraph (1) and inserting in lieu thereof “paragraphs (2) and (3)”; and (2) by adding at the end the following new paragraph: “(3) (A) A retired member ordered to active duty under this section who has previously served on active duty satisfactorily, as determined by the Secretary of the military department concerned, in a grade higher than that member’s retired grade may be ordered to active duty in the highest grade in which the member had so served satisfactorily, except that such a member may not be so ordered to active duty in a grade above major general or rear admiral. “(B) A retired member ordered to active duty in a grade that is higher than the member’s retired grade pursuant to paragraph (1) shall be treated for purposes of subsection (b) as if the member was promoted to that higher grade while on that tour of active duty. “(C) If, upon being released from that tour of active duty, such a retired member has served on active duty satisfactorily, as determined by the Secretary concerned, for not less than a total of 36 months in a grade that is a higher grade than the member's retired grade, the member is entitled to placement on the retired list in that grade.”. (b) Conforming Amendment.—Section 311(c) of Public Law 102–25 (105 Stat. 85) is amended by inserting “, and before the date of the enactment of the National Defense Authorization Act for Fiscal Years 1992 and 1993” before the period.