TRANSITIONAL PROVISIONS.

SEC. 662. TRANSITIONAL PROVISIONS.(a) Implementation Plan.—(1) Development.—The Secretary of Defense shall develop a plan to implement subchapters II and III of chapter 5 of title 37, United States Code, as added by section 661(a), and to correspondingly transition all of the special and incentive pay programs for members of the uniformed services solely to provisions of such subchapters.(2) Submission.—Not later than one year after the date of the enactment of this Act, the Secretary shall submit the implementation plan to the congressional defense committees.(b) Transition Period.—During a transition period of not more than 10 years beginning on the date of the enactment of this Act, the Secretary of Defense, the Secretary of a military department, and the Secretaries referred to in subsection (d) may continue to use the authorities in provisions in subchapter I of chapter 5 of title 37, United States Code, as designated by section 661(a), but subject to the terms of such provisions and such modifications as the Secretary of Defense may include in the implementation plan, to provide bonuses and special and incentive pays for members of the uniformed services.(c) Notice of Implementation of New Authorities.—Not less than 30 days before the date on which a special pay or bonus authority provided under subchapter II of chapter 5 of title 37, United States Code, as added by section 661(a), is first utilized, the Secretary of Defense shall submit to the congressional defense committees a notice of the implementation of the authority, including whether, as a result of implementation of the authority, a corresponding authority in subchapter I of such chapter, as designated by section 661(a), will no longer be used.(d) Coordination.—The Secretary of Defense shall prepare the implementation plan in coordination with—(1) the Secretary of Homeland Security, with respect to the Coast Guard;(2) the Secretary of Health and Human Services, with respect to the commissioned corps of the Public Health Service; and(3) the Secretary of Commerce, with respect to the National Oceanic and Atmospheric Administration.(e) No Effect on Fiscal Year 2008 Obligations.—During fiscal year 2008, obligations incurred under subchapters I, II, and 122 STAT. 181 III of chapter 5 of title 37, United States Code, as amended by section 661, to provide bonuses, incentive pays, special pays, and similar payments to members of the uniformed services under such subchapters may not exceed the obligations that would be incurred in the absence of the amendments made by such section.