CALCULATION OF ANNUAL PAYMENT OF VOLUNTARY SEPARATION INCENTIVE.

SEC. 4406. CALCULATION OF ANNUAL PAYMENT OF VOLUNTARY SEPARATION INCENTIVE. (a) Recoupment of Active or Reserve Pay.—Section 1175(e) of title 10, United States Code, is amended— (1) in paragraph (2), by striking out “shall forfeit” and all that follows and inserting in lieu thereof “may elect to have a reduction in the voluntary separation incentive payable 106 STAT. 2707for the same period in an amount not to exceed the amount of the basic pay or compensation received for that period.”; and (2) in paragraph (3), by adding at the end the following new sentence: “If the member elected to have a reduction in voluntary separation incentive for any period pursuant to paragraph (2), the deduction required under the preceding sentence shall be reduced accordingly”. (b) Crediting of Military Service for Civil Service Retirement.—Such section is further amended by striking out paragraph (6). (c) Effective Date.—The amendments to section 1175 of title 10, United States Code, made by subsections (a) and (b) shall apply as if included in section 1175 of title 10, United States Code, as enacted on December 5, 1991.