EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS AND EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES.

SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS AND EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES. (a) Establishment of Savings Plan.—(1) Chapter 5 of title 37, United States Code, is amended by inserting after section 324, as added by section 621, the following new section: “§ 325. Incentive bonus: savings plan for education expenses and other contingencies “(a) Benefit and Eligibility.—The Secretary concerned may purchase United States savings bonds under this section for a member of the armed forces who is eligible as follows: “(1) A member who, before completing three years of service on active duty, enters into a commitment to perform qualifying service. “(2) A member who, after completing three years of service on active duty, but not more than nine years of service on active duty, enters into a commitment to perform qualifying service. “(3) A member who, after completing nine years of service on active duty, enters into a commitment to perform qualifying service. 115 STAT. 1141 “(b) Qualifying Service.—For the purposes of this section, qualifying service is service on active duty in a specialty designated by the Secretary concerned as critical to meet requirements (whether or not such specialty is designated as critical to meet wartime or peacetime requirements) for a period that— “(1) is not less than six years; and “(2) does not include any part of a period for which the member is obligated to serve on active duty under an enlistment or other agreement for which a benefit has previously been paid under this section. “(c) Forms of Commitment to Additional Service.—For the purposes of this section, a commitment means— “(1) in the case of an enlisted member, a reenlistment; and “(2) in the case of a commissioned officer, an agreement entered into with the Secretary concerned. “(d) Amounts of Bonds.—The total of the face amounts of the United States savings bonds authorized to be purchased for a member under this section for a commitment shall be as follows: “(1) In the case of a purchase for a member under paragraph (1) of subsection (a), $5,000. “(2) In the case of a purchase for a member under paragraph (2) of subsection (a), the amount equal to the excess of $15,000 over the total of the face amounts of any United States savings bonds previously purchased for the member under this section. “(3) In the case of a purchase for a member under paragraph (3) of subsection (a), the amount equal to the excess of $30,000 over the total of the face amounts of any United States savings bonds previously purchased for the member under this section. “(e) Total Amount of Benefit.—The total amount of the benefit authorized for a member when United States savings bonds are purchased for the member under this section by reason of a commitment by that member shall be the sum of— “(1) the purchase price of the United States savings bonds; and “(2) the amounts that would be deducted and withheld for the payment of individual income taxes if the total amount computed under this subsection for that commitment were paid to the member as a bonus. “(f) Amount Withheld for Taxes.—The total amount payable for a member under subsection (e)(2) for a commitment by that member shall be withheld, credited, and otherwise treated in the same manner as amounts deducted and withheld from the basic pay of the member. “(g) Repayment for Failure To Complete Obligated Service.—(1) If a person fails to complete the qualifying service for which the person is obligated under a commitment for which a benefit has been paid under this section, the person shall refund to the United States the amount that bears the same ratio to the total amount paid for the person (as computed under subsection (e)) for that particular commitment as the uncompleted part of the period of qualifying service bears to the total period of the qualifying service for winch obligated. 115 STAT. 1142 “(2) Subject to paragraph (3), an obligation to reimburse the United States imposed under paragraph (1) is for all purposes a debt owed to the United States. “(3) The Secretary concerned may waive, in whole or in part, a refund required under paragraph (1) if the Secretary concerned determines that recovery would be against equity and good conscience or would be contrary to the best interests of the United States. “(4) A discharge in bankruptcy under title 11 that is entered less than five years after the termination of an enlistment or other agreement under this section does not discharge the person signing such enlistment or other agreement from a debt arising under the enlistment or agreement, respectively, or this subsection. “(h) Relationship to Other Special Pays.—The benefit authorized under this section is in addition to any other bonus or incentive or special pay that is paid or payable to a member under any other provision of this chapter for any portion of the same qualifying service. “(i) Regulations.—This section shall be administered under regulations prescribed by the Secretary of Defense for the armed forces under his jurisdiction and by the Secretary of Transportation for the Coast Guard when the Coast Guard is not operating as a service in the Navy.”. (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 324, as added by section 621(b), the following new item: “325. Incentive bonus: savings plan for education expenses and other contingencies.”. (b) Application of Amendment.—Section 325 of title 37,United States Code, as added by subsection (a), shall apply with respect to reenlistments and other agreements for qualifying service, as described in that section, that are entered into on or after October 1, 2001. (c) Funding For Fiscal Year 2002.—Of the amount authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2002 by section 421, $20,000,000 may be available in that fiscal year for the purchase of United States savings bonds under section 325 of title 37, United States Code, as added by subsection (a).