CLARIFICATION OF CALCULATION OF RETIRED PAY FOR OFFICERS WHO RETIRE IN A GRADE LOWER THAN THE GRADE HELD AT RETIREMENT.

SEC. 633. CLARIFICATION OF CALCULATION OF RETIRED PAY FOR OFFICERS WHO RETIRE IN A GRADE LOWER THAN THE GRADE HELD AT RETIREMENT. (a) Prevention of Retired Pay Based on Grade Higher Than Retired Grade.— Section 1401a(f) of title 10, United States Code, is amended— (1) in the first sentence, by inserting “based on the grade in which the member is retired” after “at an earlier date”; (2) in the second sentence, by inserting “, except that such computation may not be based on a rate of basic pay for a grade higher than the grade in which the member is retired” before the period at the end; and (3) by striking out the third sentence. (b) Effective Date.— The amendments made by subsection (a) shall apply with respect to the computation of the retired pay of a member of the Armed Forces who retires on or after the date of the enactment of this Act.