RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON RATES OF BASIC PAY PROVIDED BY LAW.

SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON RATES OF BASIC PAY PROVIDED BY LAW.(a) Determination of Retired Pay Base.—Chapter 71 of title 10, United States Code, is amended by inserting after section 1407 the following new section:“§ 1407a. Retired pay base: officers retired in general or flag officer grades“(a) Rates of Basic Pay to Be Used in Determination.—In a case in which the determination under section 1406 or 1407 of this title of the retired pay base applicable to the computation 120 STAT. 2259 of the retired pay of a covered general or flag officer involves a rate of basic pay payable to that officer for any period that was subject to a reduction under section 203(a)(2) of title 37 for such period, such retired-pay-base determination shall be made using the rate of basic pay for such period provided by law, rather than such rate as so reduced.“(b) Covered General and Flag Officers.—In this section, the term ‘covered general or flag officer’ means a member or former member who after September 30, 2006, is retired in a general officer grade or flag officer grade.” .(b) Clerical Amendment.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1407 the following new item: “1407a. Retired pay base: officers retired in general or flag officer grades.”.