RETIREMENT OF RESERVE ENLISTED MEMBERS WHO QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER ADMINISTRATIVE REDUCTION IN ENLISTED GRADE.

SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER ADMINISTRATIVE REDUCTION IN ENLISTED GRADE. (a) Army.— (1) Chapter 369 of title 10, United States Code, is amended by inserting after section 3962 the following new section: “§3963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade not as a result of the member’s misconduct “(a) A Reserve enlisted member of the Army described in subsection (b) who is retired under section 3914 of this title shall be retired in the highest enlisted grade in which the member served on active duty satisfactorily (or, in the case of a member of the National Guard, in which the member served on full-time National Guard duty satisfactorily), as determined by the Secretary of the Army. “(b) This section applies to a Reserve enlisted member who— “(1) at the time of retirement is serving on active duty (or, in the case of a member of the National Guard, on full-time National Guard duty) in a grade lower than the highest enlisted grade held by the member while on active duty (or full-time National Guard duty); and “(2) was previously administratively reduced in grade not as a result of the member’s own misconduct, as determined by the Secretary of the Army. “(c) This section applies with respect to Reserve enlisted members who are retired under section 3914 of this title after September 30, 1996.” (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 3962 the following new item: 110 STAT. 2519 “3963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade not as a result of the members misconduct.”. (b) Navy and Marine Corps.— (1) Chapter 571 of title 10, United States Code, is amended by adding at the end the following new section: “§6336. Highest grade held satisfactorily: Reserve enlisted members reduced in grade not as a result of the member’s misconduct “(a) A member of the Naval Reserve or Marine Corps Reserve described in subsection (b) who is transferred to the Fleet Reserve or the Fleet Marine Corps Reserve under section 6330 of this title shall be transferred in the highest enlisted grade in which the member served on active duty satisfactorily, as determined by the Secretary of the Navy. “(b) This section applies to a Reserve enlisted member who— “(1) at the time of transfer to the Fleet Reserve or Fleet Marine Corps Reserve is serving on active duty in a grade lower than the highest enlisted grade held by the member while on active duty; and “(2) was previously administratively reduced in grade not as a result of the member’s own misconduct, as determined by the Secretary of the Navy. “(c) This section applies with respect to enlisted members of the Naval Reserve and Marine Corps Reserve who are transferred to the Fleet Reserve or the Fleet Marine Corps Reserve after September 30, 1996.”. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “6336. Highest grade held satisfactorily: Reserve enlisted members reduced in grade not as a result of the members misconduct.”. (c) Air Force.— (1) Chapter 869 of title 10, United States Code, is amended by inserting after section 8962 the following new section: “§ 8963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade not as a result of the member’s misconduct “(a) A Reserve enlisted member of the Air Force described in subsection (b) who is retired under section 8914 of this title shall be retired in the highest enlisted grade in which the member served on active duty satisfactorily (or, in the case of a member of the National Guard, in which the member served on full-time National Guard duty satisfactorily), as determined by the Secretary of the Air Force. “(b) This section applies to a Reserve enlisted member who— “(1) at the time of retirement is serving on active duty (or, in the case of a member of the National Guard, on full-time National Guard duty) in a grade lower than the highest enlisted grade held by the member while on active duty (or full-time National Guard duty); and “(2) was previously administratively reduced in grade not as a result of the member’s own misconduct, as determined by the Secretary of the Air Force. “(c) This section applies with respect to Reserve enlisted members who are retired under section 8914 of this title after September 30, 1996.”. 110 STAT. 2520 (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 8962 the following new item: “8963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade not as a result of the members misconduct.”. (d) Computation of Retired and Retainer Pay Based Upon Retired Grade.— (1) Section 3991 of such title is amended by adding at the end the following new subsection: “(c) Special Rule for Retired Reserve Enlisted Members Covered by Section 3963.— In the case of a Reserve enlisted member retired under section 3914 of this title whose retired grade is determined under section 3963 of this title and who first became a member of a uniformed service before September 8, 1980, the retired pay base of the member (notwithstanding section 1406(a)(1) of this title) is the amount of the monthly basic pay of the member’s retired grade (determined based upon the rates of basic pay applicable on the date of the member’s retirement), and that amount shall be used for the purposes of subsection (a)(1)(A) rather than the amount computed under section 1406(c) of this title.”. (2) Section 6333 of such title is amended by adding at the end the following new subsection: “(c) In the case of a Reserve enlisted member whose grade upon transfer to the Fleet Reserve or Fleet Marine Corps Reserve is determined under section 6336 of this title and who first became a member of a uniformed service before September 8, 1980, the retainer pay base of the member (notwithstanding section 1406(a)(1) of this title) is the amount of the monthly basic pay of the grade in which the member is so transferred (determined based upon the rates of basic pay applicable on the date of the member’s transfer), and that amount shall be used for the purposes of the table in subsection (a) rather than the amount computed under section 1406(d) of this title.”. (3) Section 8991 of such title is amended by adding at the end the following new subsection: “(c) Special Rule for Retired Reserve Enlisted Members Covered by Section 8963.— In the case of a Reserve enlisted member retired under section 8914 of this title whose retired grade is determined under section 8963 of this title and who first became a member of a uniformed service before September 8, 1980, the retired pay base of the member (notwithstanding section 1406(a)(1) of this title) is the amount of the monthly basic pay of the member’s retired grade (determined based upon the rates of basic pay applicable on the date of the member’s retirement), and that amount shall be used for the purposes of subsection (a)(1)(A) rather than the amount computed under section 1406(e) of this title.”.