INAPPLICABILITY OF ANNUAL ADJUSTMENT OF RETIRED PAY FOR MEMBERS OF THE ARMED FORCES UNDER THE AGE OF 62 UNDER THE BIPARTISAN BUDGET ACT OF 2013 TO MEMBERS RETIRED FOR DISABILITY AND TO RETIRED PAY USED TO COMPUTE CERTAIN SURVIVOR BENEFIT PLAN ANNUITIES.

SEC. 10001. INAPPLICABILITY OF ANNUAL ADJUSTMENT OF RETIRED PAY FOR MEMBERS OF THE ARMED FORCES UNDER THE AGE OF 62 UNDER THE BIPARTISAN BUDGET ACT OF 2013 TO MEMBERS RETIRED FOR DISABILITY AND TO RETIRED PAY USED TO COMPUTE CERTAIN SURVIVOR BENEFIT PLAN ANNUITIES. (a) Inapplicability.—Paragraph (4) of section 1401a(b) of title 10, United States Code, as added by section 403(a) of the Bipartisan Budget Act of 2013, is amended— (1) in subparagraph (A), by inserting after “age” the following: “(other than a member or former member retired under chapter 61 of this title)”; and (2) by adding at the end the following new subparagraph: “(F) Inapplicability to amount of retired pay used in computation of sbp annuity for survivors. In the computation pursuant to subsection (d) or (f) of section 1448 of this title of an annuity for survivors of a member or person who dies while subject to the application of this paragraph, the amount of the retired pay of such member or person for purposes of such computation shall be the amount of retired pay that would have been payable to such member or person at the time of death without regard to the application of this paragraph.” . (b) Conforming Amendments.— (1) Combat-related special compensation.—Section 1413a(b)(3) of title 10, United States Code, is amended— (A) in subparagraph (A), by inserting “, with adjustment under paragraph (2) of section 1401a(b) of this title to which the member would have been entitled (but without the application of paragraph (4) of such section),” after “under any other provision of law”; and (B) in subparagraph (B), by striking “whichever is applicable to the member.” and inserting “with adjustment under paragraph (2) of section 1401a(b) of this title to which the member would have been entitled (but without the application of paragraph (4) of such section), whichever is applicable to the member.”. (2) Concurrent receipt of retired pay and veterans’ disability compensation.—Section 1414(b)(1) of such title is amended by inserting “(but without the application of section 1401a(b)(4) of this title)” after “under any other provision of law”. (3) Prevention of cola inversions.—Section 1401a(f)(2) of title 10, United States Code, is amended by inserting “or subsection (b)(4)” after “subsection (b)(2)”. (c) [10 U.S.C. 1401a note] Effective Date.—The amendments made by subsections (a) and (b) shall take effect on December 1, 2015, immediately after the coming into effect of section 403 of the Bipartisan Budget Act of 2013 and the amendments made by that section. (d) Exclusion of Budgetary Effects From PAYGO Scorecards.— (1) Statutory pay-as-you-go scorecards.—The budgetary effects of this section shall not be entered on either PAYGO score-card maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010. (2) Senate paygo scorecards.—The budgetary effects of this section shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress). This division may be cited as the “Department of Defense Appropriations Act, 2014”.