WAIVER OF ADMINISTRATIVE TIME-IN-GRADE REQUIREMENTS TO PREVENT PAY INVERSIONS IN RETIRED PAY OF CERTAIN MILITARY RETIREES.

SEC. 634. WAIVER OF ADMINISTRATIVE TIME-IN-GRADE REQUIREMENTS TO PREVENT PAY INVERSIONS IN RETIRED PAY OF CERTAIN MILITARY RETIREES. (a) Authority.— The Secretary concerned may, for purposes of the computation under section 1401a(f) of title 10, United States Code, of the retired pay of military retirees described in subsection (b), waive any administrative time-in-grade regulation (as described in subsection (d)) that would otherwise apply to such computation. Any such waiver may be made retroactive, in the case of any such retiree, to the date on which that retiree initially became entitled to retired pay. (b) Covered Retirees.— This section applies to any military retiree— (1) who initially became entitled to retired pay on or after January 1, 1971, and before the date of the enactment of this Act; (2) whose retired pay, by reason of the provisions of section 1401a(f) of title 10, United States Code (the so-called “Tower amendment”), was initially computed as an amount greater than would have been the case but for that section; and (3) who, as of the earlier computation date applicable to that retiree— (A) in the case of an individual retired in an enlisted grade, had served in the grade in which the retiree retired for a period that was less than the period prescribed by the applicable administrative time-in-grade requirement described in subsection (d); and (B) in the case of an individual retired in an officer grade— (i) was subject to an administrative time-in-grade requirement described in subsection (d) that established a time-in-grade requirement that was longer than the statutory time-in-grade requirement applicable to that member; and (ii) had served in the grade in which the retiree retired for a period that was less than the period prescribed by such administrative time-in-grade requirement but not less than the statutory time-in-grade requirement applicable to that member. 108 STAT. 2788 (c) Earlier Computation Date.— For purposes of subsection (b)(3), the earlier computation date applicable to a military retiree is the date that (under such section 1401a(f) as in effect on the date of the member’s retirement) was the “earlier date” that was used as the basis for the computation of the retiree’s retired pay. (d) Regulations Subject to Waiver.— A regulation that may be waived under subsection (a) is any regulation (not required by law) that establishes a minimum period of time that a member of the Armed Forces must have served in a grade on active duty in order to be eligible to retire in that grade. (e) Scope of Waiver Authority.— The Secretary concerned may exercise the authority provided in subsection (a) in the case of an individual military retiree or for any group of military retirees. (f) Military Retiree Defined.— For purposes of this section, the term “military retiree” means a member or former member of the Armed Forces who is entitled to retired pay. (g) Secretary Concerned.— For purposes of this section, the term “Secretary concerned” has the meaning given such term in section 101 of title 10, United States Code.