REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES. (a) Removal of References to BAS and BAQ.—(1) Section 1009 of title 37, United States Code, is amended to read as follows: “§ 1009. Adjustments of monthly basic pay “(a) Adjustment Required.—Whenever the General Schedule of compensation for Federal classified employees, as contained in section 5332 of title 5, is adjusted upward as provided in section 5303 of such title, the President shall immediately make an upward adjustment in the monthly basic pay authorized members of the uniformed services by section 203(a) of this title. “(b) Effectiveness of Adjustment.—An adjustment under this section shall— “(1) have the force and effect of law; and “(2) carry the same effective date as that applying to the compensation adjustments provided General Schedule employees. “(c) Equal Percentage Increase for All Members.—Subject to subsection (d), an adjustment under this section shall provide 111 STAT. 1784all eligible members with an increase in the monthly basic pay which is of the same percentage as the overall average percentage increase in the General Schedule rates of both basic pay and locality pay for civilian employees. “(d) Allocation of Increase Among Pay Grades and Years-of-Service.—(1) Subject to paragraph (2), whenever the President determines such action to be in the best interest of the Government, he may allocate the overall percentage increase in the monthly basic pay under subsection (a) among such pay grade and years-of-service categories as he considers appropriate. “(2) In making any allocation of an overall percentage increase in basic pay under paragraph (1)— “(A) the amount of the increase in basic pay for any given pay grade and years-of-service category after any allocation made under this subsection may not be less than 75 percent of the amount of the increase in the monthly basic pay that would otherwise have been effective with respect to such pay grade and years-of-service category under subsection (c); and “(B) the percentage increase in the monthly basic pay in the case of any member of the uniformed services with four years or less service may not exceed the overall percentage increase in the General Schedule rates of basic pay for civilian employees. “(e) Notice of Allocations.—Whenever the President plans to exercise the authority of the President under subsection (d) with respect to any anticipated increase in the monthly basic pay of members of the uniformed services, the President shall advise Congress, at the earliest practicable time prior to the effective date of such increase, regarding the proposed allocation of such increase. “(f) Quadrennial Assessment of Allocations.—The allocations of increases made under this section shall be assessed in conjunction with the quadrennial review of military compensation required by section 1008(b) of this title.”. (2) The item relating to such section in the table of sections at the beginning of chapter 19 of such title is amended to read as follows: “1009. Adjustments of monthly basic pay .”. (b) Effective Date.—The amendments made by subsection (a) shall take effect on January 1, 1998.