-CITE- 10 USC CHAPTER 71 - COMPUTATION OF RETIRED PAY 01/03/2007 -EXPCITE- TITLE 10 - ARMED FORCES Subtitle A - General Military Law PART II - PERSONNEL CHAPTER 71 - COMPUTATION OF RETIRED PAY -HEAD- CHAPTER 71 - COMPUTATION OF RETIRED PAY -MISC1- Sec. 1401. Computation of retired pay. 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index. 1402. Recomputation of retired or retainer pay to reflect later active duty of members who first became members before September 8, 1980. 1402a. Recomputation of retired or retainer pay to reflect later active duty of members who first became members after September 7, 1980. 1403. Disability retired pay: treatment under Internal Revenue Code of 1986. 1404. Applicability of section 8301 of title 5. 1405. Years of service. 1406. Retired pay base for members who first became members before September 8, 1980: final basic pay. 1407. Retired pay base for members who first became members after September 7, 1980: high-36 month average. 1407a. Retired pay base: officers retired in general or flag officer grades. 1408. Payment of retired or retainer pay in compliance with court orders. 1409. Retired pay multiplier. 1410. Restoral of full retirement amount at age 62 for certain members entering on or after August 1, 1986. 1411. Rules of construction. 1412. Rounding to next lower dollar. [1413. Repealed.] 1413a. Combat-related special compensation. 1414. Members eligible for retired pay who are also eligible for veterans' disability compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans' disability compensation. AMENDMENTS 2006 - Pub. L. 109-364, div. A, title VI, Sec. 641(b), Oct. 17, 2006, 120 Stat. 2259, added item 1407a. 2003 - Pub. L. 108-136, div. A, title VI, Sec. 641(d), (e)(2), Nov. 24, 2003, 117 Stat. 1516, 1517, struck out item 1413 "Special compensation for certain severely disabled uniformed services retirees", and substituted "Combat-related special compensation" for "Special compensation for certain combat-related disabled uniformed services retirees" in item 1413a and "Members eligible for retired pay who are also eligible for veterans' disability compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans' disability compensation" for "Members eligible for retired pay who have service-connected disabilities: payment of retired pay and veterans' disability compensation; contingent authority" in item 1414. 2002 - Pub. L. 107-314, div. A, title VI, Sec. 636(a)(3), Dec. 2, 2002, 116 Stat. 2576, added item 1413a. 2001 - Pub. L. 107-107, div. A, title VI, Sec. 641(c), Dec. 28, 2001, 115 Stat. 1150, added item 1414. 1999 - Pub. L. 106-65, div. A, title VI, Secs. 643(b)(3)(B), 658(a)(2), Oct. 5, 1999, 113 Stat. 664, 669, inserted "certain" before "members" in item 1410 and added item 1413. 1987 - Pub. L. 100-26, Sec. 7(h)(2)(B), Apr. 21, 1987, 101 Stat. 282, substituted colon for semicolon and "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954" in item 1403. 1986 - Pub. L. 99-348, title III, Sec. 304(b)(2), July 1, 1986, 100 Stat. 703, inserted "of members who first became members before September 8, 1980" in item 1402, substituted "Retired pay base for members who first became members before September 8, 1980: final basic pay" for "Limitations on revocation of retired pay" in item 1406 and "Retired pay base for members who first became members after September 7, 1980: high-36 month average" for "Retired pay base" in item 1407, and added items 1409 to 1412. 1982 - Pub. L. 97-252, title X, Sec. 1002(b), Sept. 8, 1982, 96 Stat. 735, added item 1408. 1980 - Pub. L. 96-513, title V, Sec. 511(51)(C), (52)(C), Dec. 12, 1980, 94 Stat. 2924, 2925, substituted "of members who first became members after September 7, 1980" for "in case of members who first became members after the enactment of the Department of Defense Authorization Act, 1981" in item 1402a, and substituted "Internal Revenue Code of 1954" for "title 26" in item 1403. Pub. L. 96-342, title VIII, Sec. 813(a)(2), (b)(3)(B), 94 Stat. 1101, 1104, added items 1402a and 1407. 1966 - Pub. L. 89-718, Sec. 3, Nov. 2, 1966, 80 Stat. 1115, substituted "8301" for "47a" in item 1404. Pub. L. 89-652, Sec. 2(2), Oct. 14, 1966, 80 Stat. 902, added item 1406. 1963 - Pub. L. 88-132, Sec. 5(g)(2), Oct. 2, 1963, 77 Stat. 214, added item 1401a. 1958 - Pub. L. 85-422, Sec. 11(a)(1)(B), May 20, 1958, 72 Stat. 131, added item 1405. -End- -CITE- 10 USC Sec. 1401 01/03/2007 -EXPCITE- TITLE 10 - ARMED FORCES Subtitle A - General Military Law PART II - PERSONNEL CHAPTER 71 - COMPUTATION OF RETIRED PAY -HEAD- Sec. 1401. Computation of retired pay -STATUTE- (a) Disability, Non-Regular Service, Warrant Officer, and DOPMA Retirement. - The monthly retired pay of a person entitled thereto under this subtitle is computed according to the following table. For each case covered by a section of this title named in the column headed "For sections", retired pay is computed by taking, in order, the steps prescribed opposite it in columns 1, 2, 3, and 4, as modified by the applicable footnotes. Formula No.: 1 For sections: 1201, 1204 Column 1 - Take: Retired pay base as computed under section 1406(b) or 1407. Column 2 - Multiply by: As member elects - (1) 2(!1/2)% of years of service credited to him under section 1208; (!1) or (2) the percentage of disability on date when retired. Column 3 - Add: Column 4 - Subtract: Excess over 75% of retired pay base upon which computation is based. Formula No.: 2 For sections: 1202, 1205 Column 1 - Take: Retired pay base as computed under section 1406(b) or 1407. Column 2 - Multiply by: As member elects - (1) 2(!1/2)% of years of service credited to him under section 1208; (!1) or (2) the percentage of disability on date when his name was placed on temporary disability retired list. Column 3 - Add: Amount necessary to increase product of columns 1 and 2 to 50% of retired pay base upon which computation is based. Column 4 - Subtract: Excess over 75% of retired pay base upon which computation is based. Formula No.: 4 For sections: 580, 1263, 1293, 1305 Column 1 - Take: Retired pay base as computed under section 1406(b) or 1407. Column 2 - Multiply by: The retired pay multiplier prescribed in section 1409(a) for the years of service credited to him under section 1405. Column 3 - Add: Column 4 - Subtract: Formula No.: 5 For sections: 633, 634, 635, 636, 1251, 1252, 1253 Column 1 - Take: Retired pay base as computed under section 1406(b) or 1407. Column 2 - Multiply by: The retired pay multiplier prescribed in section 1409(a) for the years of service credited to him under section 1405. Column 3 - Add: Column 4 - Subtract: (!1) Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month. -------------------------------------------------------------------- (b) Use of Most Favorable Formula. - If a person would otherwise be entitled to retired pay computed under more than one formula of the table in subsection (a) or of any other provision of law, the person is entitled to be paid under the applicable formula that is most favorable to him. -SOURCE- (Aug. 10, 1956, ch. 1041, 70A Stat. 106; Pub. L. 85-422, Secs. 6(7), 11(a)(2), May 20, 1958, 72 Stat. 129, 131; Pub. L. 88-132, Sec. 5(h)(1), Oct. 2, 1963, 77 Stat. 214; Pub. L. 89-132, Sec. 6, Aug. 21, 1965, 79 Stat. 547; Pub. L. 90-207, Sec. 3(1), Dec. 16, 1967, 81 Stat. 653; Pub. L. 92-455, Sec. 1, Oct. 2, 1972, 86 Stat. 761; Pub. L. 96-342, title VIII, Sec. 813(b)(1), Sept. 8, 1980, 94 Stat. 1102; Pub. L. 96-513, title I, Sec. 113(a), title V, Sec. 511(49), Dec. 12, 1980, 94 Stat. 2876, 2924; Pub. L. 98-94, title IX, Secs. 922(a)(1), 923(a)(1), (2)(A), Sept. 24, 1983, 97 Stat. 641, 642; Pub. L. 98-557, Sec. 35(b), Oct. 30, 1984, 98 Stat. 2877; Pub. L. 99-348, title II, Sec. 201(a), July 1, 1986, 100 Stat. 691; Pub. L. 102-484, div. A, title X, Sec. 1052(18), Oct. 23, 1992, 106 Stat. 2500; Pub. L. 103-337, div. A, title XVI, Sec. 1662(j)(2), Oct. 5, 1994, 108 Stat. 3004; Pub. L. 109-163, div. A, title V, Sec. 509(d)(1)(A), Jan. 6, 2006, 119 Stat. 3231; Pub. L. 109-364, div. A, title V, Sec. 502(d)(1), Oct. 17, 2006, 120 Stat. 2177.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at section Large) -------------------------------------------------------------------- 1401 10:600l(f) (1st sentence, June 29, 1948, ch. 708, Intro less applicability to Sec. 303 (1st 91 words ductory retired grade). and 1st proviso), 62 clause Stat. 1088. 1401(1) 34:430(f) (1st sentence, less applicability to retired grade). 37:272(d) (less 1st 55 words; less 104th through 128th words, as applicable to retired grade; and less 1st, 2d, 4th, 5th, and last provisos). 37:272(e) (1st proviso of last sentence). Oct. 12, 1949, ch. 681, Secs. 402(d) (less 30th through 55th words; less 104th through 128th words, as applicable to retired grade; and less 2d, 5th, and last provisos), 402(e) (1st proviso of last sentence), 63 Stat. 818, 819. 1401(2) 37:272(d) (1st 29, and May 29, 1954, ch. 249, 51st through 55th, words, Sec. 14(d) (less 1st and 4th proviso). sentence), (f) (1st sentence, less applicability to retired grade; and last sentence), 68 Stat. 163, 164. 1401(3) 10:1036b (1st 91 words and 1st proviso). 34:440j (1st 91 words and 1st proviso). 1401(4) 10:600l(d) (2d sentence). 10:600l(f) (last sentence). 34:430(d) (2d sentence). 34:430(f) (last sentence). 1401, [No source]. foot note 1. 1401, [No source]. foot note 2. 1401, 37:272(d) (1st proviso); foot 10:600l(d) (less 1st and note 3. 2d sentences). 34:430(d) (less 1st and 2d sentences). -------------------------------------------------------------------- In the introductory paragraph, the applicability of the rule stated in the third sentence to situations not expressly covered by the laws named in the source statutes above is a practical construction that the rule must be reciprocally applied in all cases. In formula No. 1, the words "whichever is earlier", in 37:272(d) (clause (2)), are omitted, since they are contrary to the rule stated in 37:272(e) (1st proviso of last sentence). In formula No. 3, the computation is based on monthly pay instead of annual pay to conform to the other formulas of the revised section. The words "basic pay" are substituted for the words "base and longevity pay" to conform to the terminology of the Career Compensation Act of 1949 (37 U.S.C. 231 et seq.). The words "which he would receive if serving, at the time granted such pay, on active duty" are omitted as surplusage and to conform to the other formulas of the revised section, since the effect of these words is covered by footnote 1. The words "at any time" are substituted for the words "during his entire period of service". Footnotes 1 and 2 reflect the long-standing construction of those provisions dealing with computation of retired pay which do not specifically provide that the member is entitled to compute his retired pay on the basis of the monthly basic pay to which he would be entitled if he were on active duty in his retired grade. The pertinent basic computation provisions for such retirement either provide for computation of retired pay on the same basis as the provisions dealing with higher retired grade, or the basic retirement provisions were enacted after the provisions authorizing higher retired grade. The words "at rates applicable on date of retirement * * * and adjust to reflect later changes in permanent rates", in footnote 1; and all of footnote 2; are based on the source statutes incorporated in the formulas to which footnotes 1 and 2 apply, as interpreted in an opinion of the Judge Advocate General of the Army (1953/4120, 14 May 1953). In footnote 3, the words "and disregard a part of a year that is less than six months" are made applicable to formulas Nos. 1 and 2. The legislative history of the Career Compensation Act of 1949 (Hearings before the Committee on Armed Services of the Senate on H.R. 5007, 81st Congress, First Session, page 313, July 6, 1949) indicates that the provisions, upon which formulas Nos. 1 and 2 are based, should be construed to require that a fraction of less than one-half of a year be disregarded. It also indicates that other retirement laws that are also silent on this point should be similarly construed. AMENDMENTS 2006 - Subsec. (a). Pub. L. 109-364 in table inserted "1253" after "1252" in column under heading "For sections". Pub. L. 109-163 in table inserted "1252" after "1251" in column under heading "For sections". 1994 - Subsec. (a). Pub. L. 103-337 in table struck out formula number 3 which provided formula for computing retired pay under former section 1331 of this title. 1992 - Subsec. (a). Pub. L. 102-484 substituted "580" for "564" in column in table under heading "For sections". 1986 - Subsec. (a). Pub. L. 99-348, Sec. 201(a)(1), (2), designated existing provision as subsec. (a), added heading, and struck out third, fourth, and fifth sentences which read as follows: "The amount computed, if not a multiple of $1, shall be rounded to the next lower multiple of $1. However, if a person would otherwise be entitled to retired pay computed under more than one pay formula of this table or of any other provision of law, he is entitled to be paid under the applicable formula that is most favorable to him. Section references below are to sections of this title." Pub. L. 99-348, Sec. 201(a)(3), amended column 1 of table generally by substituting provisions that retired pay be computed by taking the retired pay base as computed under section 1406(b) or 1407 of this title for provisions that retired pay be computed for a person who first became a member of a uniformed service, as defined in section 1407(a)(2) of this title, after Sept. 7, 1980, by taking the monthly retired pay base as computed under section 1407(b) of this title, and for all others, by taking the monthly basic pay to which the member was entitled under various circumstances. Pub. L. 99-348, Sec. 201(a)(4), substituted in column 2 of table a multiplier of the retired pay multiplier prescribed in section 1409(a) for the years of service credited to him under section 1405 for a multiplier of 2 1/2 % of years of service credited under section 1405 for formulas 4 and 5 and struck out "Excess over 75% of pay upon which computation is based." in column 4 of table for formulas 4 and 5. Pub. L. 99-348, Sec. 201(a)(5), in columns 3 and 4 substituted "retired pay base" for "pay" wherever appearing. Pub. L. 99-348, Sec. 201(a)(6), redesignated footnote 3 as 1, and struck out former footnote 1 which provided computation at rates applicable on date of retirement or date when the member's name was placed on temporary disability retired list, as the case may be, footnote 2 which provided computation at rates applicable on the date when retired pay is granted, footnote 4 which provided computation at the highest rates of basic pay applicable to an officer who served as Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, while so serving in that office and computation at the highest rate of basic pay applicable to an enlisted person who has served as sergeant major of the Army, master chief petty officer of the Navy, chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard, while he served if that rate is higher than the rate authorized by the table, and footnote 5 which provided for purposes of this section that an officer's retired grade be determined as if sections 3962(b) and 8962(b) did not apply. Pub. L. 99-348, Sec. 201(a)(7), in column 2 of table substituted footnote 1 designation for footnote 3 designation wherever appearing. Subsec. (b). Pub. L. 99-348, Sec. 201(a)(8), added subsec. (b). 1984 - Pub. L. 98-557 inserted reference to Commandant of the Coast Guard in footnote 4 of table. 1983 - Pub. L. 98-94, Sec. 922(a)(1), inserted "The amount computed, if not a multiple of $1, shall be rounded to the next lower multiple of $1." Pub. L. 98-94, Sec. 923(a)(1), (2)(A), in footnote 3 of table, substituted "Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month" for "Before applying percentage factor, credit a part of a year that is six months or more as a whole year, and disregard a part of a year that is less than six months". 1980 - Pub. L. 96-513, Sec. 113(a), inserted formula 5 in table of formulae set out in the section and added footnote 5. Pub. L. 96-513, Sec. 511(49), in formula 4 table of sections struck out reference to section 1255, in heading for Column 1 substituted reference to Sept. 7, 1980, for reference to date of enactment of Department of Defense Authorization Act, 1981, and in footnote 4 substituted reference to master chief petty officer of the Navy, for reference to senior enlisted advisor of the Navy. Pub. L. 96-342 in heading for column 1 of table inserted provisions respecting applicability to persons becoming members after the date of the enactment of the Department of Defense Authorization Act, 1981. 1972 - Pub. L. 92-455 substituted in second sentence of footnote 4 of table "chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard," for "chief master sergeant of the Air Force, or sergeant major of the Marine Corps,". 1967 - Pub. L. 90-207 inserted sentence to footnote 4 of table requiring the computation of retired pay for an enlisted person who has served as senior noncommissioned officer of his service at the highest rate of basic pay applicable to him while he so served, if that rate is higher than the rate authorized by the table. 1965 - Pub. L. 89-132 struck out "increased, for members credited with two or less years of service for basic pay purposes, by 6%" from column 1 of formula 1 and column 1 of formula 2. 1963 - Pub. L. 88-132 struck out from footnote 1 of table ", and adjust to reflect later changes in applicable permanent rates" after "as the case may be." 1958 - Pub. L. 85-422, Sec. 6(7)(A), inserted provisions in Column 1 of formulas 1 and 2 permitting the taking of the monthly basic pay to which a member was entitled on the day before retirement or placement on temporary disability retired list, increased, for members credited with two or less years of service for basic pay purposes, by 6 percent. Pub. L. 85-422, Sec. 11(a)(2), substituted "under section 1405 of this title" for "in computing basic pay" in column 2 of formula 4. Pub. L. 85-422, Sec. 6(7)(B), added footnote 4. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103-337, set out as an Effective Date note under section 10001 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Section 35(c) of Pub. L. 98-557 provided that: "The amendments made by this section [amending this section and provisions set out as a note under section 1009 of Title 37, Pay and Allowances of the Uniformed Services] shall become effective on October 1, 1984". EFFECTIVE DATE OF 1983 AMENDMENT Section 922(e) of Pub. L. 98-94 provided that: "The amendments made by this section [enacting section 6333 of this title and amending this section, sections 1401a, 1402, 1402a, 1437, 1451, 3991, 3992, 6151, 6383, 8991, and 8992 of this title, section 423 of Title 14, Coast Guard, section 853o of Title 33, Navigation and Navigable Waters, section 212 of Title 42, The Public Health and Welfare] shall take effect on October 1, 1983." Amendment by section 923 of Pub. L. 98-94 applicable with respect to the computation of retired or retainer pay of any individual who becomes entitled to that pay after Sept. 30, 1983, see section 923(g) of Pub. L. 98-94, set out as a note under section 1174 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by section 113(a) of Pub. L. 96-513 effective Sept. 15, 1981, but the authority to prescribe regulations under the amendment by Pub. L. 96-513 effective on Dec. 12, 1980, and amendment by section 511(49) of Pub. L. 96-513 effective Dec. 12, 1980, see section 701 of Pub. L. 96-513, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1967 AMENDMENT Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7 of Pub. L. 90-207, set out as a note under section 203 of Title 37, Pay and Allowances of the Uniformed Services. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section 10 of Pub. L. 89-132, set out as a note under section 203 of Title 37, Pay and Allowances of the Uniformed Services. EFFECTIVE DATE OF 1963 AMENDMENT Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section 14 of Pub. L. 88-132, set out as a note under section 201 of Title 37, Pay and Allowances of the Uniformed Services. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85-422 effective June 1, 1958, see section 9 of Pub. L. 85-422. SHORT TITLE OF 1986 AMENDMENT Section 1(a) of Pub. L. 99-348 provided that: "This Act [enacting sections 134a, 1406, 1407, and 1409 to 1412 of this title, redesignating former section 1406 of this title as section 1338 [now 12738] of this title, amending this section, sections 101, 135, 136a, 716, 1040, 1338 [now 12738], 1401a, 1402, 1402a, 1405, 1447, 1451, 1452, 2830, 3925, 3991, 3992, 5083, 5201, 6151, 6322, 6323, 6325, 6326, 6330, 6333, 6383, 8925, 8991, and 8992 of this title, sections 5313 and 5314 of Title 5, Government Organization and Employees, sections 46, 47, 51, 288, 291 to 293, 327, 334, 353 to 355, 357, 362, and 421 to 424 of Title 14, Coast Guard, section 853o of Title 33, Navigation and Navigable Waters, and sections 211 and 212 of Title 42, The Public Health and Welfare, repealing former section 1407 and section 6328 of this title, enacting provisions set out as notes under this section and sections 135 and 12731 of this title, and repealing provisions set out as notes under this section and section 6330 of this title] may be cited as the 'Military Retirement Reform Act of 1986'." SHORT TITLE OF 1982 AMENDMENT Pub. L. 97-252, title X, Sec. 1001, Sept. 8, 1982, 96 Stat. 730, provided that: "This title [enacting section 1408 of this title, amending sections 1072, 1076, 1086, 1447, 1448, and 1450 of this title, and enacting provisions set out as notes under sections 1408 and 2208 of this title] may be cited as the 'Uniformed Services Former Spouses' Protection Act'." RECOMPUTATION OF RETIRED PAY FOR CERTAIN RECENTLY RETIRED OFFICERS Pub. L. 106-65, div. A, title VI, Sec. 601(e), Oct. 5, 1999, 113 Stat. 648, provided that: "In the case of a commissioned officer of the uniformed services who retired during the period beginning on April 30, 1999, through December 31, 1999, and who, at the time of retirement, was in pay grade O-7, O-8, O-9, or O-10, the retired pay of that officer shall be recomputed, effective as of January 1, 2000, using the rate of basic pay that would have been applicable to the computation of that officer's retired pay if the provisions of paragraph (2) of section 203(a) of title 37, United States Code, as added by subsection (d), had taken effect on April 30, 1999." SIX-MONTH ROUNDING RULE Section 305(b) of Pub. L. 99-348 provided that: "(1) General rule. - Retired pay or retainer pay may not be paid to a covered member of the Armed Forces (as defined in paragraph (3)) for any month in an amount that is greater than the amount otherwise determined to be payable after such reductions as may be necessary to reflect adjusting the computation of retired pay or retainer pay that includes credit for a part of a year of service to permit credit for a part of a year of service only for such month or months actually served. "(2) Exceptions. - The limitation in paragraph (1) does not apply to a member who before January 1, 1982 - "(A) applied for retirement or transfer to the Fleet Reserve or Fleet Marine Corps Reserve; "(B) was being processed for retirement under the provisions of chapter 61 of title 10, United States Code, or who was on the temporary disability retired list and thereafter retired under the provisions of section 1210(c) or 1210(d) of such title; or "(C) was retired or in an inactive status and would have been eligible for retired pay under the provisions of chapter 67 [now 1223] of such title, but for the fact that the person was under 60 years of age. "(3) Definition of covered member. - For the purposes of this subsection, the term 'covered member of the Armed Forces' means a member of the Armed Forces who became entitled to retired or retainer pay during the period beginning on January 1, 1982, and ending on September 30, 1983. "(4) Repeal of source law. - Section 8054 of the Department of Defense Appropriations Act, 1985 (as contained in section 101(h) of Public Law 98-473) [formerly set out as a note below], is repealed. "(5) Cross reference. - For the effective date of October 1, 1983, for provisions making permanent programmatic changes in law to accomplish the policy provided in such section 8054 (and prior provisions of law), see section 923(h) of the Department of Defense Authorization Act, 1984 (Public Law 98-94) [probably means section 923(g) of Pub. L. 98-94, set out as an Effective Date of 1983 Amendment note under section 1174 of this title]." LIMITATION ON PAYMENT OF RETIRED OR RETAINER PAY TO REFLECT FRACTIONAL YEAR ADJUSTMENTS Pub. L. 98-473, title I, Sec. 101(h) [title VIII, Sec. 8054], Oct. 12, 1984, 98 Stat. 1904, 1933, prohibited, with certain exceptions, payment of retired pay or retainer pay of a member of the Armed Forces for any month who, on or after January 1, 1982, became entitled to retired or retainer pay, in an amount greater than the amount otherwise determined payable after reductions necessary to reflect adjusting the computation of retired pay or retainer pay that includes credit for part of a year of service to permit credit for a part of a year of service only for such month or months actually served, prior to repeal by Pub. L. 99-348, title III, Sec. 305(b)(4), July 1, 1986, 100 Stat. 705. INCREASE IN PAY AND ALLOWANCES OF CERTAIN PERSONS WHO SERVED AS GENERALS OF THE ARMY, FLEET ADMIRALS OF THE NAVY, GENERAL OF THE MARINE CORPS, OR ADMIRAL IN THE COAST GUARD Section 5 of Pub. L. 90-207 provided that: "Notwithstanding any other provision of law, a member of an armed force who is entitled to pay and allowances under any of the following provisions of law on September 30, 1967, shall continue to receive the pay and allowances to which he was entitled on that day plus an increase of 4.5 per centum in the total of his pay and allowances: "(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59). "(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052). "(3) The Act of September 18, 1950, chapter 952 (64 Stat. A224)." INCREASE IN RETIRED OR RETAINER PAY OF MEMBERS ENTITLED THERETO ON OR AFTER OCTOBER 1, 1967 Section 6 of Pub. L. 90-207 provided that: "Notwithstanding any other provision of law, a member or former member of a uniformed service who initially becomes entitled to retired pay or retainer pay on or after October 1, 1967, shall be entitled to have that pay computed using the rates of basic pay prescribed by the first section of this Act [amending section 203(a) of Title 37]." INCREASES IN RETIRED OR RETAINER PAY Pub. L. 89-501, title III, Sec. 303, July 13, 1966, 80 Stat. 278, provided that: "Notwithstanding any other provision of law, a member or former member of a uniformed service who initially becomes entitled to retired pay or retainer pay on the effective date of this title shall be entitled to have that pay computed using the rates of basic pay prescribed by the first section of this title [amending section 203(a) of Title 37]." Effective date of section 303 of Pub. L. 89-501 as the first day of the first pay period which begins on or after July 1, 1966, see section 304 of Pub. L. 89-501, set out as Effective Date of 1966 Amendments note under section 203 of Title 37, Pay and Allowances of the Uniformed Services. Section 5(a) of Pub. L. 89-132 provided that: "The retired pay or retainer pay of a member or former member of a uniformed service who is entitled to that pay computed under rates of basic pay in effect before the effective date of this Act [Sept. 1, 1965] shall be increased, effective that date, by the per centum (adjusted to the nearest one-tenth of 1 per centum) that the Consumer Price Index (all items - United States city average), published by the Bureau of Labor Statistics, for the calendar month immediately preceding the effective date of this Act has increased over the average monthly index for calendar year 1962." CONTINUATION OF PAY AND ALLOWANCES OF CERTAIN PERSONS WHO SERVED AS GENERALS OF THE ARMY, FLEET ADMIRALS OF THE NAVY, GENERAL OF THE MARINE CORPS, OR ADMIRAL IN THE COAST GUARD Section 7 of Pub. L. 89-132 provided that: "Notwithstanding any other provision of law, a member of an armed force who was entitled to pay and allowances under any of the following provisions of law on the day before the effective date of this Act [Sept. 1, 1965] shall continue to receive the pay and allowances to which he was entitled on that day: "(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59). "(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052). "(3) The Act of September 18, 1950, chapter 952 (64 Stat. A224)." INCREASE IN RETIRED PAY TO PERSONS RETIRED BEFORE JUNE 1, 1958 Section 4 of Pub. L. 85-422, as amended by Pub. L. 85-855, Sec. 1(a), Aug. 28, 1958, 72 Stat. 1104, provided that: "(a) Except for members covered by section 7 of this Act, members and former members of the uniformed services who are entitled to retired pay, retirement pay, retainer pay, or equivalent pay, on the day before the effective date of this Act [June 1, 1958], shall be entitled to an increase of 6 per centum of that pay to which they were entitled on that date. "(b) Notwithstanding any other provision of law, a member of a uniformed service retired under any provision of law, or transferred to the Fleet Reserve or Fleet Marine Corps Reserve, on the effective date of this Act [June 1, 1958] shall have his retired pay or retainer pay computed on the basis of the rates of basic pay set forth in the Career Compensation Act of 1949, as amended by this Act, or on the rates of basic pay set forth in the Career Compensation Act of 1949 on the day before the effective date of this Act, plus 6 per centum of that pay, whichever is greater. "(c) Section 5 of the Career Incentive Act of 1955 (69 Stat. 22) does not apply to any person who is retired, or to whom retired pay, retirement pay, retainer pay, or equivalent pay (including temporary disability retired pay) is granted, on or after the effective date of this Act [June 1, 1958]". Section 1(b) of Pub. L. 85-855 provided that the amendment of section 4(a) of Pub. L. 85-422, which eliminated the words "and persons with two or less years of service for basic pay purposes who were retired for physical disability or placed on the temporary disability retired list" preceding "members and former members" should be effective June 1, 1958. PUBLIC HEALTH SERVICE Authority vested by this chapter in "military departments", "the Secretary concerned", or "the Secretary of Defense" to be exercised, with respect to commissioned officers of Public Health Service, by Secretary of Health and Human Services or his designee, see section 213a of Title 42, The Public Health and Welfare. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION Authority vested by this chapter in "military departments", "the Secretary concerned", or "the Secretary of Defense" to be exercised, with respect to commissioned officer corps of National Oceanic and Atmospheric Administration, by Secretary of Commerce or Secretary's designee, see section 3071 of Title 33, Navigation and Navigable Waters. -End- -CITE- 10 USC Sec. 1401a 01/03/2007 -EXPCITE- TITLE 10 - ARMED FORCES Subtitle A - General Military Law PART II - PERSONNEL CHAPTER 71 - COMPUTATION OF RETIRED PAY -HEAD- Sec. 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index -STATUTE- (a) Prohibition on Recomputation To Reflect Increases in Basic Pay. - Unless otherwise specifically provided by law, the retired pay of a member or former member of an armed force may not be recomputed to reflect any increase in the rates of basic pay for members of the armed forces. (b) Cost-of-Living Adjustments Based on CPI Increases. - (1) Increase required. - Effective on December 1 of each year, the Secretary of Defense shall increase the retired pay of members and former members entitled to that pay in accordance with paragraphs (2) and (3). (2) Percentage increase. - Except as otherwise provided in this subsection, the Secretary shall increase the retired pay of each member and former member by the percent (adjusted to the nearest one-tenth of 1 percent) by which - (A) the price index for the base quarter of that year, exceeds (B) the base index. (3) Reduced percentage for certain post-august 1, 1986 members. - If the percent determined under paragraph (2) is greater than 1 percent, the Secretary shall increase the retired pay of each member and former member who first became a member on or after August 1, 1986, and has elected to receive a bonus under section 322 of title 37, by the difference between - (A) the percent determined under paragraph (2); and (B) 1 percent. (4) Special rule for paragraph (3). - If in any case in which an increase in retired pay that would otherwise be made under paragraph (3) is not made by reason of law (other than any provision of this section), then (unless otherwise provided by law) when the next increase in retired pay is made under this subsection, the increase under paragraph (3) shall be carried out so as to achieve the same net increase in retired pay under that paragraph that would have been the case if that law had not been enacted. (5) Regulations. - Any increase in retired pay under this subsection shall be made in accordance with regulations prescribed by the Secretary of Defense. (c) First COLA Adjustment for Members With Retired Pay Computed Using Final Basic Pay. - (1) First adjustment with intervening increase in basic pay. - Notwithstanding subsection (b) but subject to subsection (f)(2), if a person described in paragraph (3) becomes entitled to retired pay based on rates of monthly basic pay that became effective after the last day of the calendar quarter of the base index, the retired pay of the member or former member shall be increased on the effective date of the next adjustment of retired pay under subsection (b) only by the percent (adjusted to the nearest one-tenth of 1 percent) by which - (A) the price index for the base quarter of that year, exceeds (B) the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective. (2) First adjustment with no intervening increase in basic pay. - If a person described in paragraph (3) becomes entitled to retired pay on or after the effective date of an adjustment in retired pay under subsection (b) but before the effective date of the next increase in the rates of monthly basic pay, the retired pay of the member or former member shall be increased (subject to subsection (f)(2) as applied to other members whose retired pay is computed on the current rates of basic pay in the most recent adjustment under this section), effective on the date the member becomes entitled to that pay, by the percent (adjusted to the nearest one-tenth of 1 percent) by which - (A) the base index, exceeds (B) the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective. (3) Members covered. - Paragraphs (1) and (2) apply to a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, and whose retired pay base is determined under section 1406 of this title. (d) First COLA Adjustment for Members With Retired Pay Computed Using High-Three. - Notwithstanding subsection (b) but subject to subsection (f)(2), the retired pay of a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, or on or after August 1, 1986, if the member or former member did not elect to receive a bonus under section 322 of title 37 and whose retired pay base is determined under section 1407 of this title shall be increased on the effective date of the first adjustment of retired pay under subsection (b) after the member or former member becomes entitled to retired pay by the percent (adjusted to the nearest one-tenth of 1 percent) equal to the difference between the percent by which - (1) the price index for the base quarter of that year, exceeds (2) the price index for the calendar quarter immediately before the calendar quarter during which the member became entitled to retired pay. (e) Pro Rating of Initial Adjustment. - Notwithstanding subsection (b) but subject to subsection (f)(2), the retired pay of a member or former member of an armed force who first became a member of a uniformed service on or after August 1, 1986, and elected to receive a bonus under section 322 of title 37 shall be increased on the effective date of the first adjustment of retired pay under subsection (b) after the member or former member becomes entitled to retired pay by the percent (adjusted to the nearest one- tenth of 1 percent) equal to the difference between - (1) the percent by which - (A) the price index for the base quarter of that year, exceeds (B) the price index for the calendar quarter immediately before the calendar quarter during which the member became entitled to retired pay; and (2) one-fourth of 1 percent for each calendar quarter from the quarter described in paragraph (1)(B) to the quarter described in paragraph (1)(A). If in any case the percent described in paragraph (2) exceeds the percent determined under paragraph (1), such an increase shall not be made. (f) Prevention of Pay Inversions. - (1) Prevention of retired pay inversions. - Notwithstanding any other provision of law, the monthly retired pay of a member or a former member of an armed force who initially became entitled to that pay on or after January 1, 1971, may not be less than the monthly retired pay to which he would be entitled if he had become entitled to retired pay at an earlier date based on the grade in which the member is retired, adjusted to reflect any applicable increases in such pay under this section. In computing the amount of retired pay to which such a member or former member would have been entitled on that earlier date, the computation shall be based on his grade, length of service, and the rate of basic pay applicable to him at that time, except that such computation may not be based on a rate of basic pay for a grade higher than the grade in which the member is retired. This subsection does not authorize any increase in the monthly retired pay to which a member was entitled for any period before October 7, 1975. (2) Prevention of cola inversions. - The percentage of the first adjustment under this section in the retired pay of any person, as determined under subsection (c)(1), (c)(2), (d), or (e), may not exceed the percentage increase in retired pay determined under subsection (b)(2) that is effective on the same date as the effective date of such first adjustment. (g) Definitions. - In this section: (1) The term "price index" means the Consumer Price Index (all items, United States city average) published by the Bureau of Labor Statistics. (2) The term "base quarter" means the calendar quarter ending on September 30 of each year. (3) The term "base index" means the price index for the base quarter for the most recent adjustment under subsection (b). (4) The term "retired pay" includes retainer pay. (h) Price Index for a Quarter. - For purposes of this section, the price index for a calendar quarter is the arithmetical mean of the price index for the three months comprising that quarter. -SOURCE- (Added Pub. L. 88-132, Sec. 5(g)(1), Oct. 2, 1963, 77 Stat. 213; amended Pub. L. 89-132, Sec. 5(b), Aug. 21, 1965, 79 Stat. 547; Pub. L. 90-207, Sec. 2(a)(1), Dec. 16, 1967, 81 Stat. 652; Pub. L. 91-179, Sec. 1, Dec. 30, 1969, 83 Stat. 837; Pub. L. 94-106, title VIII, Sec. 806, Oct. 7, 1975, 89 Stat. 538; Pub. L. 94-361, title VIII, Sec. 801(a), July 14, 1976, 90 Stat. 929; Pub. L. 94-440, title XIII, Sec. 1306(d)(1), Oct. 1, 1976, 90 Stat. 1462; Pub. L. 96-342, title VIII, Sec. 812(b)(1), Sept. 8, 1980, 94 Stat. 1098; Pub. L. 98-94, title IX, Secs. 921(a)(1), (b), 922(a)(2), Sept. 24, 1983, 97 Stat. 640, 641; Pub. L. 98-525, title XIV, Sec. 1405(26), Oct. 19, 1984, 98 Stat. 2623; Pub. L. 99-348, title I, Sec. 102, July 1, 1986, 100 Stat. 683; Pub. L. 100-180, div. A, title XII, Sec. 1231(21), Dec. 4, 1987, 101 Stat. 1161; Pub. L. 100-224, Sec. 1, Dec. 30, 1987, 101 Stat. 1536; Pub. L. 100-456, div. A, title VI, Sec. 622(a), Sept. 29, 1988, 102 Stat. 1983; Pub. L. 101-189, div. A, title VI, Sec. 651(b)(1), Nov. 29, 1989, 103 Stat. 1460; Pub. L. 103-66, title II, Sec. 2001, Aug. 10, 1993, 107 Stat. 335; Pub. L. 103-160, div. A, title XI, Sec. 1182(e), Nov. 30, 1993, 107 Stat. 1773; Pub. L. 103-335, title VIII, Sec. 8114A(b)(1), Sept. 30, 1994, 108 Stat. 2648; Pub. L. 103-337, div. A, title VI, Sec. 633(a), Oct. 5, 1994, 108 Stat. 2787; Pub. L. 104-106, div. A, title VI, Sec. 631(a), (c), Feb. 10, 1996, 110 Stat. 364, 365; Pub. L. 104-201, div. A, title VI, Secs. 631(a), 632(a), Sept. 23, 1996, 110 Stat. 2549; Pub. L. 106-65, div. A, title VI, Secs. 641(b), 643(b)(1), title X, Sec. 1066(a)(10), Oct. 5, 1999, 113 Stat. 662, 663, 771; Pub. L. 107-314, div. A, title VI, Sec. 633, Dec. 2, 2002, 116 Stat. 2572.) -MISC1- AMENDMENTS 2002 - Subsec. (c)(1). Pub. L. 107-314, Sec. 633(a)(1), inserted "but subject to subsection (f)(2)" after "Notwithstanding subsection (b)" in introductory provisions. Subsec. (c)(2). Pub. L. 107-314, Sec. 633(a)(2), inserted "(subject to subsection (f)(2) as applied to other members whose retired pay is computed on the current rates of basic pay in the most recent adjustment under this section)" after "shall be increased" in introductory provisions. Subsec. (d). Pub. L. 107-314, Sec. 633(a)(1), (b)(1), in introductory provisions, inserted "but subject to subsection (f)(2)" after "Notwithstanding subsection (b)" and "or on or after August 1, 1986, if the member or former member did not elect to receive a bonus under section 322 of title 37" after "August 1, 1986,". Subsec. (e). Pub. L. 107-314, Sec. 633(a)(1), (b)(2), in introductory provisions, inserted "but subject to subsection (f)(2)" after "Notwithstanding subsection (b)" and "and elected to receive a bonus under section 322 of title 37" after "August 1, 1986,". Subsec. (f). Pub. L. 107-314, Sec. 633(a)(3), designated existing provisions as par. (1), inserted par. heading, realigned margins, and added par. (2). 1999 - Subsec. (b)(1). Pub. L. 106-65, Sec. 643(b)(1)(A), substituted "Increase required" for "In general" in heading. Subsec. (b)(2). Pub. L. 106-65, Sec. 1066(a)(10), struck out subpar. (A) designation and heading "General rule", redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively, and realigned their margins, and struck out former subpars. (B) and (C) which read as follows: "(B) Special rule for fiscal year 1996. - In the case of the increase in retired pay that, pursuant to paragraph (1), becomes effective on December 1, 1995, the initial month for which such increase is payable as part of such retired pay shall (notwithstanding such December 1 effective date) be March 1996. "(C) Inapplicability to disability retirees. - Subparagraph (B) does not apply with respect to the retired pay of a member retired under chapter 61 of this title." Pub. L. 106-65, Sec. 643(b)(1)(B), substituted "Percentage increase" for "Pre-august 1, 1986 members" in heading. Pub. L. 106-65, Sec. 641(b)(1), substituted "Except as otherwise provided in this subsection, the Secretary shall increase the retired pay of each member and former member" for "The Secretary shall increase the retired pay of each member and former member who first became a member of a uniformed service before August 1, 1986,". Subsec. (b)(3). Pub. L. 106-65, Sec. 643(b)(1)(C), substituted "Reduced percentage for certain post-august 1, 1986 members" for "Post-august 1, 1986 members" in heading. Pub. L. 106-65, Sec. 641(b)(2), inserted "and has elected to receive a bonus under section 322 of title 37," after "August 1, 1986,". 1996 - Subsec. (b)(2)(B). Pub. L. 104-201, Sec. 631(a), substituted "Special rule for fiscal year 1996" for "Special rules for fiscal years 1996 and 1998" as subpar. heading, struck out cl. (i) designation and heading "Fiscal year 1996" before "In the case of", and struck out cl. (ii) which read as follows: "Fiscal year 1998. - In the case of the increase in retired pay that, pursuant to paragraph (1), becomes effective on December 1, 1997, the initial month for which such increase is payable as part of such retired pay shall (notwithstanding such December 1 effective date) be September 1998." Pub. L. 104-106, Sec. 631(c), repealed Pub. L. 103-335, Sec. 8114A(b)(1). See 1994 Amendment note below. Pub. L. 104-106, Sec. 631(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "Special rules for fiscal years 1994 through 1998. - "(i) Fiscal year 1994. - In the case of an increase in retired pay that, pursuant to paragraph (1), becomes effective on December 1, 1993, the initial month for which such increase is payable as part of such retired pay shall (notwithstanding such December 1 effective date) be March 1994. "(ii) Fiscal years 1995 through 1998. - In the case of an increase in retired pay that, pursuant to paragraph (1), becomes effective on December 1 of 1994, 1995, 1996, or 1997, the initial month for which such increase is payable as part of such retired pay shall (notwithstanding such December 1 effective date) be September of the following year." Subsec. (c). Pub. L. 104-201, Sec. 632(a), added subsec. (c) and struck out former subsec. (c) which read as follows: "Rule for First Adjustment After Retirement With Intervening Increase in Basic Pay. - Notwithstanding subsection (b), if a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, becomes entitled to retired pay based on rates of monthly basic pay that became effective after the last day of the calendar quarter of the base index, the retired pay of the member or former member shall be increased on the effective date of the next adjustment of retired pay under subsection (b) only by the percent (adjusted to the nearest one-tenth of 1 percent) by which - "(1) the price index for the base quarter of that year, exceeds "(2) the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective." Subsec. (d). Pub. L. 104-201, Sec. 632(a), added subsec. (d) and struck out former subsec. (d) which read as follows: "Rule for First Adjustment After Retirement With No Intervening Increase in Basic Pay. - If a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, becomes entitled to retired pay on or after the effective date of an adjustment in retired pay under subsection (b) but before the effective date of the next increase in the rates of monthly basic pay, the retired pay of the member or former member shall be increased, effective on the date the member becomes entitled to that pay, by the percent (adjusted to the nearest one-tenth of 1 percent) by which - "(1) the base index, exceeds "(2) the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective." 1994 - Subsec. (b)(2)(B). Pub. L. 103-335, Sec. 8114A(b)(1), which directed substituting, in heading, "through 1996" for "through 1998" and substituting, in cl. (ii), "and 1996" for "through 1998", "of 1994 or 1995" for "of 1994, 1995, 1996, or 1997", and "March" for "September", was repealed by Pub. L. 104- 106, Sec. 631(c). Subsec. (f). Pub. L. 103-337 inserted "based on the grade in which the member is retired" after "at an earlier date" in first sentence and ", except that such computation may not be based on a rate of basic pay for a grade higher than the grade in which the member is retired" before period at end of second sentence and struck out after second sentence "However, in the case of a member who, after initially becoming eligible for retired pay, is reduced in grade pursuant to a sentence of a court-martial, such computation may not be based on a grade higher than the grade in which the member is retired." 1993 - Subsec. (b)(2). Pub. L. 103-160, Sec. 1182(e)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "Except as provided in paragraph (6), the Secretary shall increase the retired pay of each member and former member who first became a member of a uniformed service before August 1, 1986, by the percent (adjusted to the nearest one-tenth of 1 percent) by which - "(A) the price index for the base quarter of that year, exceeds "(B) the base index." Pub. L. 103-66, Sec. 2001(1), substituted "Except as provided in paragraph (6), the Secretary" for "The Secretary". Subsec. (b)(6). Pub. L. 103-160, Sec. 1182(e)(2), struck out par. (6) which read as follows: "Special rules for paragraph (2) for fiscal years 1994 through 1998. - "(A) Fiscal year 1994. - In the case of an increase in the retired pay of a member or former member referred to in paragraph (2) that, pursuant to paragraph (1), becomes effective on December 1, 1993, the initial month for which such increase is payable as part of such retired pay shall (notwithstanding such December 1 effective date) be March 1994. "(B) Fiscal years 1995 through 1998. - In the case of an increase in retired pay of a member or former member referred to in paragraph (2) that, pursuant to paragraph (1), becomes effective on December 1 of 1994, 1995, 1996, or 1997, the initial month for which such increase is payable as part of such retired pay shall (notwithstanding such December 1 effective date) be September of the following year. "(C) Inapplicability to disability retirees. - Subparagraphs (A) and (B) do not apply with respect to the retired pay of a member retired under chapter 61 of this title." Pub. L. 103-66, Sec. 2001(2), added par. (6). 1989 - Subsec. (b)(3). Pub. L. 101-189, Sec. 651(b)(1)(A), inserted "and former member" after first reference to "member". Subsec. (e). Pub. L. 101-189, Sec. 651(b)(1)(B), inserted "or former member" after first and third reference to "member". Subsec. (f). Pub. L. 101-189, Sec. 651(b)(1)(C), inserted "or former member" after "member" in second sentence. 1988 - Subsec. (f). Pub. L. 100-456 inserted after second sentence "However, in the case of a member who, after initially becoming eligible for retired pay, is reduced in grade pursuant to a sentence of a court-martial, such computation may not be based on a grade higher than the grade in which the member is retired." 1987 - Subsec. (a). Pub. L. 100-180 struck out "pay" after "the retired pay". Subsec. (b)(4), (5). Pub. L. 100-224, Sec. 1(a), added par. (4) and redesignated former par. (4) as (5). Subsec. (e). Pub. L. 100-224, Sec. 1(b), substituted "by the percent (adjusted to the nearest one-tenth of 1 percent) equal to the difference between - "(1) the percent by which - "(A) the price index for the base quarter of that year, exceeds "(B) the price index for the calendar quarter immediately before the calendar quarter during which the member became entitled to retired pay; and "(2) one-fourth of 1 percent for each calendar quarter from the quarter described in paragraph (1)(B) to the quarter described in paragraph (1)(A). If in any case the percent described in paragraph (2) exceeds the percent determined under paragraph (1), such an increase shall not be made." for "only by the percent (adjusted to the nearest one- tenth of 1 percent) by which - "(1) the price index for the base quarter of that year, exceeds "(2) the price index for the calendar quarter immediately before the calendar quarter in which the member became entitled to retired pay." 1986 - Subsec. (a). Pub. L. 99-348, Sec. 102(b)(1), (c)(1), inserted heading, struck out "or retainer" after "retired pay", and struck out sentence defining "Index" in this section as meaning the Consumer Price Index (all items, United States city average) published by the Bureau of Labor Statistics. Subsecs. (b) to (d). Pub. L. 99-348, Sec. 102(a), added subsecs. (b) to (d) and struck out former subsecs. (b) to (d) which read as follows: "(b) Each time that an increase is made under section 8340(b) of title 5 in annuities paid under subchapter III of chapter 83 of such title, the Secretary of Defense shall at the same time increase the retired and retainer pay of members and former members of the armed forces by the same percent as the percentage by which annuities are increased under such section. "(c) Notwithstanding subsection (b), if a member or former member of an armed force becomes entitled to retired pay or retainer pay based on rates of monthly basic pay prescribed by section 203 of title 37 that became effective after the last day of the month of the base index, his retired pay or retainer pay shall be increased on the effective date of the next adjustment of retired pay and retainer pay under subsection (b) only by the percent (adjusted to the nearest one-tenth of 1 percent) that the new base index exceeds the index for the calendar month immediately before that in which the rates of monthly basic pay on which his retired pay or retainer pay is based became effective. "(d) If a member or former member of an armed force becomes entitled to retired pay or retainer pay on or after the effective date of an adjustment of retired pay and retainer pay under subsection (b) but before the effective date of the next increase in the rates of monthly basic pay prescribed by section 203 of title 37, his retired pay or retainer pay shall be increased, effective on the date he becomes entitled to that pay, by the percent (adjusted to the nearest one-tenth of 1 percent) that the base index exceeds the index for the calendar month immediately before that in which the rates of monthly basic pay on which his retired pay or retainer pay is based became effective." Subsec. (e). Pub. L. 99-348, Sec. 102(a), added subsec. (e). Subsec. (f). Pub. L. 99-348, Sec. 102(c)(2), inserted heading and struck out "or retainer" after "retired" wherever appearing. Subsecs. (g), (h). Pub. L. 99-348, Sec. 102(b)(2), added subsecs. (g) and (h) and struck out former subsec. (g) which provided that the retired or retainer pay of a member or former member of an armed force as adjusted under this section, if not a multiple of $1, would be rounded to the next lower multiple of $1. 1984 - Subsec. (f). Pub. L. 98-525 substituted "before October 7, 1975" for "prior to the effective date of this subsection". 1983 - Subsec. (e). Pub. L. 98-94, Sec. 921(a)(1), struck out subsec. (e) which provided that: "Notwithstanding subsections (c) and (d), the adjusted retired pay or retainer pay of a member or former member of an armed force retired on or after October 1, 1967, may not be less than it would have been had he become entitled to retired pay or retainer pay based on the same pay grade, years of service for pay, years of service for retired or retainer pay purposes, and percent of disability, if any, on the day before the effective date of the rates of monthly basic pay on which his retired pay or retainer pay is based." Subsec. (f). Pub. L. 98-94, Sec. 921(b), struck out ", subject to subsection (e) of this section," after "the computation shall". Subsec. (g). Pub. L. 98-94, Sec. 922(a)(2), added subsec. (g). 1980 - Subsec. (b). Pub. L. 96-342 substituted provisions directing the Secretary of Defense to increase the retired and retainer pay of members and former members of the armed forces each time that an increase is made under section 8340(b) of title 5 in annuities paid under subchapter III of chapter 83 of title 5, with such increase to be by the same percent as the percentage by which the annuities are increased for provisions under which the Secretary of Defense had been authorized and directed to increase the retired pay and retainer pay of members and former members of the armed forces on March 1 and September 1 depending upon determinations which the Secretary was directed to make on January 1 and July 1 of each year with regards to the percentage change in the index published for June or December of the previous year. 1976 - Subsec. (b). Pub. L. 94-440 substituted provisions that Secretary of Defense shall determine the percent change in the index on Jan. 1 and July 1 of each year and effective Mar. 1 and Sept. 1, retired and retainer pay shall be increased by the computed percent change adjusted to the nearest 1/10 of 1 percent, for provisions that the Secretary of Defense shall determine on a monthly basis the percent by which the index has increased over that used as a basis for the most recent adjustment of retired and retainer pay and if Secretary determines for 3 consecutive months that the amount of increase is at least 3 percent over the base index, retired and retainer pay shall be increased by adding 1 percent and the highest percent increase in the index during those months adjusted to the nearest 1/10 of 1 percent. Pub. L. 94-361 struck out "the per centum obtained by adding 1 per centum and" before "the highest per centum of increase in the index". 1975 - Subsec. (f). Pub. L. 94-106 added subsec. (f). 1969 - Subsec. (b). Pub. L. 91-179 provided for a 1 percent addition in computing increases in retired and retainer pay of present and former members of the armed forces, whenever the Secretary made such adjustments to effect increases in the consumer index over the base index. 1967 - Subsec. (a). Pub. L. 90-207 substituted "may not be recomputed" for "shall not be recomputed", struck out "if that increase becomes effective after the effective date of this section" after "armed forces" and inserted sentence defining "Index". Subsec. (b). Pub. L. 90-207 revised subsec. (b) generally and, among other changes, substituted provisions requiring the Secretary of Defense to determine monthly the percent by which the index has increased over that used as the basis for the most recent adjustment of retired and retainer pay under this subsection for provisions which required the Secretary of Defense to determine the per centum that the index for each calendar month after the calendar month immediately preceding the effective date of Pub. L. 89-132 has increased over the base index (that for the calendar month immediately preceding the effective date of Pub. L. 89-132 or, if later, that used as the basis for the most recent adjustment of retired and retainer pay under this subsection). Subsecs. (c) to (e). Pub. L. 90-207 added subsecs. (c) to (e). 1965 - Subsec. (b). Pub. L. 89-132 substituted provisions requiring the Secretary of Defense to determine the per centum for each calendar month that the Consumer Price Index has increased over the base Consumer Price Index, and if the index has shown an increase of at least 3 per centum over the base index for three consecutive calendar months to increase the retired or retainer pay by the highest per centum of increase in the index, for provisions which required a determination of the increase over the preceding calendar year and permitted an increase in the retired or retainer pay if the index advanced 3 per centum or more for a full calendar year. EFFECTIVE DATE OF 1999 AMENDMENT Pub. L. 106-65, div. A, title VI, Sec. 644, Oct. 5, 1999, 113 Stat. 664, provided that: "The amendments made by sections 641, 642, and 643 [enacting section 322 of Title 37, Pay and Allowances of the Uniformed Services, and amending this section and sections 1409, 1410, 1451, and 1452 of this title] shall take effect on October 1, 1999." EFFECTIVE DATE OF 1996 AMENDMENT Section 632(b) of Pub. L. 104-201 provided that: "The amendment made by subsection (a) [amending this section] shall apply only to adjustments of retired and retainer pay effective after the date of the enactment of this Act [Sept. 23, 1996]." EFFECTIVE DATE OF 1994 AMENDMENT Section 633(b) of Pub. L. 103-337 provided that: "The amendments made by subsection (a) [amending this section] shall apply with respect to the computation of the retired pay of a member of the Armed Forces who retires on or after the date of the enactment of this Act [Oct. 5, 1994]." EFFECTIVE DATE OF 1988 AMENDMENT Section 622(b) of Pub. L. 100-456 provided that: "The amendment made by subsection (a) [amending this section] shall take effect on the first day of the first month that begins after the date of the enactment of this Act [Sept. 29, 1988] and shall apply to the computation of the retired or retainer pay of members who initially become entitled to such pay on or after such effective date." EFFECTIVE DATE OF 1983 AMENDMENT Section 921(a)(2) of Pub. L. 98-94 provided that: "(A) Notwithstanding the repeal of such subsection [subsec. (e) of this section], the provisions of such subsection shall apply in the case of any member or former member of the Armed Forces eligible to retire on the date of the enactment of this Act [Sept. 24, 1983] for a period of three years after such date in the same manner such provisions would have applied had they not been repealed. "(B) The amount of retired or retainer pay of any member or former member of the Armed Forces who was eligible to retire on the date of the enactment of this Act [Sept. 24, 1983] and who becomes entitled to such pay at any time after the end of the three-year period beginning on the date of the enactment of this Act may not be less than it would have been had he become entitled to retired or retainer pay on the day before the end of such three-year period." Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983, see section 922(e) of Pub. L. 98-94, set out as a note under section 1401 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Section 812(b)(1) of Pub. L. 96-342, set out below, provided that the amendment made by that section is effective Aug. 31, 1981, but subject to certain conditions. EFFECTIVE DATE OF 1976 AMENDMENT Section 1306(d)(2) of Pub. L. 94-440 provided that: "The amendment made by subsection (1) [amending this section] shall apply to any increase in retired pay or retainer pay after the date of enactment of this Act [Oct. 1, 1976], except that with respect to the first date after the date of enactment of this Act on which the Secretary of Defense is to determine a percent change, such percent change shall be determined by computing the change in the index published for the month immediately preceding such first date over the index for the last month preceding the date of enactment of this Act used as the basis for the most recent adjustment of retired pay and retainer pay under section 1401a(b) of title 10, United States Code [subsec. (b) of this section], as in effect immediately prior to the date of enactment of this Act [Oct. 1, 1976]." EFFECTIVE DATE OF 1969 AMENDMENT Section 2 of Pub. L. 91-179 provided that: "The provisions of this Act [amending this section] become effective on October 31, 1969." EFFECTIVE DATE OF 1967 AMENDMENT Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7 of Pub. L. 90-207, set out as a note under section 203 of Title 37, Pay and Allowances of the Uniformed Services. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section 10 of Pub. L. 89-132, set out as a note under section 203 of Title 37, Pay and Allowances of the Uniformed Services. EFFECTIVE DATE Section effective Oct. 1, 1963, see section 14 of Pub. L. 88-132, set out as an Effective Date of 1963 Amendment note under section 201 of Title 37, Pay and Allowances of the Uniformed Services. CONTINGENT ALTERNATIVE DATE FOR FISCAL YEAR 1998 Section 631(b) of Pub. L. 104-106 provided that if a civil service retiree COLA that becomes effective during fiscal year 1998 becomes effective on a date other than the date on which a military retiree COLA during that fiscal year is specified to become effective under subsec. (b)(2)(B) of this section, then the increase in military retired and retainer pay would become payable as part of such retired and retainer pay effective on the same date on which such civil service retiree COLA was to become effective, prior to repeal by Pub. L. 104-201, div. A, title VI, Sec. 631(b), Sept. 23, 1996, 110 Stat. 2549. ELIMINATION OF DISPARITY BETWEEN EFFECTIVE DATES FOR MILITARY AND CIVILIAN RETIREE COST-OF-LIVING ADJUSTMENTS FOR FISCAL YEAR 1995 Section 631 of Pub. L. 103-337 provided that: "(a) In General. - The fiscal year 1995 increase in military retired pay shall (notwithstanding subparagraph (B) of section 1401a(b)(2) of title 10, United States Code) first be payable as part of such retired pay for the month of March 1995. "(b) Definitions. - For the purposes of subsection (a): "(1) The term 'fiscal year 1995 increase in military retired pay' means the increase in retired pay that, pursuant to paragraph (1) of section 1401a(b) of title 10, United States Code, becomes effective on December 1, 1994. "(2) The term 'retired pay' includes retainer pay. "(c) Limitation. - Subsection (a) shall be effective only if there is appropriated to the Department of Defense Military Retirement Fund (in an Act making appropriations for the Department of Defense for fiscal year 1995 that is enacted before March 1, 1995) such amount as is necessary to offset increased outlays to be made from that fund during fiscal year 1995 by reason of the provisions of subsection (a). "(d) Authorization of Appropriations. - There is authorized to be appropriated for fiscal year 1995 to the Department of Defense Military Retirement Fund the sum of $376,000,000 to offset increased outlays to be made from that fund during fiscal year 1995 by reason of the provisions of subsection (a)." SENSE OF CONGRESS ON EQUAL TREATMENT OF EFFECTIVE DATES FOR FUTURE COST-OF-LIVING ADJUSTMENTS FOR MILITARY AND CIVILIAN RETIREES Section 632 of Pub. L. 103-337 provided that: "(a) Findings. - Congress makes the following findings: "(1) Congress, in the Omnibus Budget Reconciliation Act of 1993 [Pub. L. 103-66, see Tables for classification], changed the effective dates for future cost-of-living adjustments for military retired pay and for Federal civilian retirement annuities, which (before that Act) were provided by law to be made effective on December 1 each year. "(2) The timing, and the percentage of increase, of military and Federal civilian retirees' cost-of-living adjustments have been linked for decades. "(3) The effect of the enactment of the Omnibus Budget Reconciliation Act of 1993 was to abandon the longstanding congressional practice of treating military and Federal civilian retirees identically in matters related to cost-of-living adjustments. "(b) Sense of Congress. - In light of the findings in subsection (a), it is the sense of Congress that - "(1) as a matter of simple equity and fairness, it is imperative that cost-of-living adjustments in retirement benefits for military and Federal civilian retirees be returned to an identical schedule as soon as possible, but not later than January 1, 1999; "(2) if after October 1, 1998, there is, by law, a difference between the date on which a cost-of-living adjustment for Federal civilian retirees takes effect and the date on which a cost-of- living adjustment for military retirees takes effect, then the difference in those effective dates should be eliminated by requiring that cost-of-living adjustments for both classes of retirees become effective on the earlier of the two dates; and "(3) if after October 1, 1998, there is, by law, a difference between the first month for which a cost-of-living adjustment for civilian retirees is payable and the first month for which a cost- of-living adjustment for military retirees is payable, then the difference in the months for which those adjustments are first payable should be eliminated by requiring that the cost-of-living adjustments for both classes of retirees first become payable for the earlier of the two months." WAIVER OF ADMINISTRATIVE TIME-IN-GRADE REQUIREMENTS TO PREVENT PAY INVERSIONS IN RETIRED PAY OF CERTAIN MILITARY RETIREES Section 634 of Pub. L. 103-337 provided that: "(a) Authority. - The Secretary concerned may, for purposes of the computation under section 1401a(f) of title 10, United States Code, of the retired pay of military retirees described in subsection (b), waive any administrative time-in-grade regulation (as described in subsection (d)) that would otherwise apply to such computation. Any such waiver may be made retroactive, in the case of any such retiree, to the date on which that retiree initially became entitled to retired pay. "(b) Covered Retirees. - This section applies to any military retiree - "(1) who initially became entitled to retired pay on or after January 1, 1971, and before the date of the enactment of this Act [Oct. 5, 1994]; "(2) whose retired pay, by reason of the provisions of section 1401a(f) of title 10, United States Code (the so-called 'Tower amendment'), was initially computed as an amount greater than would have been the case but for that section; and "(3) who, as of the earlier computation date applicable to that retiree - "(A) in the case of an individual retired in an enlisted grade, had served in the grade in which the retiree retired for a period that was less than the period prescribed by the applicable administrative time-in-grade requirement described in subsection (d); and "(B) in the case of an individual retired in an officer grade - "(i) was subject to an administrative time-in-grade requirement described in subsection (d) that established a time-in-grade requirement that was longer than the statutory time-in-grade requirement applicable to that member; and "(ii) had served in the grade in which the retiree retired for a period that was less than the period prescribed by such administrative time-in-grade requirement but not less than the statutory time-in-grade requirement applicable to that member. "(c) Earlier Computation Date. - For purposes of subsection (b)(3), the earlier computation date applicable to a military retiree is the date that (under such section 1401a(f) as in effect on the date of the member's retirement) was the 'earlier date' that was used as the basis for the computation of the retiree's retired pay. "(d) Regulations Subject to Waiver. - A regulation that may be waived under subsection (a) is any regulation (not required by law) that establishes a minimum period of time that a member of the Armed Forces must have served in a grade on active duty in order to be eligible to retire in that grade. "(e) Scope of Waiver Authority. - The Secretary concerned may exercise the authority provided in subsection (a) in the case of an individual military retiree or for any group of military retirees. "(f) Military Retiree Defined. - For purposes of this section, the term 'military retiree' means a member or former member of the Armed Forces who is entitled to retired pay. "(g) Secretary Concerned. - For purposes of this section, the term 'Secretary concerned' has the meaning given such term in section 101 of title 10, United States Code." FISCAL YEAR 1995 COST-OF-LIVING ADJUSTMENTS FOR MILITARY RETIREES Pub. L. 103-335, title VIII, Sec. 8114A, Sept. 30, 1994, 108 Stat. 2648, as amended by Pub. L. 104-106, div. A, title VI, Sec. 631(c), Feb. 10, 1996, 110 Stat. 365, provided that: "(a) Fiscal Year 1995 Cost-of-Living Adjustment for Military Retirees. - (1) The fiscal year 1995 increase in military retired pay shall (notwithstanding subparagraph (B) of section 1401a(b)(2) of title 10, United States Code) first be payable as part of such retired pay for the month of March 1995. "(2) For the purposes of subsection (a): "(A) The term 'fiscal year 1995 increase in military retired pay' means the increase in retired pay that, pursuant to paragraph (1) of section 1401a(b) of title 10, United States Code, becomes effective on December 1, 1994. "(B) The term 'retired pay' includes retainer pay. "(b) [Repealed. Pub. L. 104-106, div. A, title VI, Sec. 631(c), Feb. 10, 1996, 110 Stat. 365.]" CONTINGENT ONCE-A-YEAR ADJUSTMENT OF RETIRED AND RETAINER PAY Pub. L. 96-342, title VIII, Sec. 812, Sept. 8, 1980, 94 Stat. 1098, as amended by Pub. L. 97-35, title II, Sec. 211(b), Aug. 13, 1981, 95 Stat. 383, provided that: "(a)(1) The increase in the retired and retainer pay of members and former members of the uniformed services which but for this section would be made effective September 1, 1980, under the provisions of paragraph (2)(B) of section 1401a(b) of title 10, United States Code, shall not be made. "(2)(A) In making the determination required by the provisions of paragraph (1)(A) of section 1401a(b) of title 10, United States Code, to be made on January 1, 1981, or within a reasonable time thereafter, the Secretary of Defense shall determine the percent change in the index (as such term is defined in section 1401a(a) of title 10, United States Code) published for December 1980 over the index published for December 1979 (rather than over the index published for June 1980). "(B) The increase in the retired and retainer pay of members and former members of the uniformed services to be made effective March 1, 1981, under the provisions of paragraph (2)(A) of such section shall, in lieu of the increase prescribed by such paragraph, be the percent change computed under subparagraph (A), adjusted to the nearest 1/10 of one percent. "(3) The President shall by Executive order provide for only one cost-of-living adjustment in the annuities paid under the Central Intelligence Agency [Retirement] Act of 1964 for Certain Employees (50 U.S.C. 403 note) during the period beginning on September 1, 1980, and ending on August 31, 1981. Such adjustment shall be effective March 1, 1981, and shall be made in the same manner and percentage as the adjustment provided for in paragraphs (1) and (2) for the retired and retainer pay of members and former members of the uniformed services. "(4) Paragraphs (1), (2), and (3) shall not take effect unless similar legislation is enacted which provides for only one cost-of- living increase in annuities paid under subchapter III of chapter 83 of title 5, United States Code, during the period beginning on September 1, 1980, and ending on August 31, 1981. "(b)(1) Effective August 31, 1981, but subject to paragraph (2), section 1401a(b), of title 10, United States Code, relating to adjustment of retired pay and retainer pay to reflect changes in the Consumer Price Index, is amended to read as follows: " '(b) Each time that an increase is made under section 8340(b) of title 5 in annuities paid under subchapter III of chapter 83 of such title, the Secretary of Defense shall at the same time increase the retired and retainer pay of members and former members of the armed forces by the same percent as the percentage by which annuities are increased under such section.'. "(2) The amendment made by paragraph (1) shall not take effect unless legislation is enacted which provides for the adjustment of annuities paid under subchapter III of chapter 83 of title 5, United States Code, on a once-a-year basis. In the event such legislation is enacted, such amendment shall become effective with respect to adjustments in the retired pay and retainer pay of members and former members of the uniformed services at the same time that the legislation providing for such a once-a-year adjustment of annuities paid under subchapter III of chapter 83 of title 5, United States Code, becomes effective. "(3) If legislation described in paragraph (2) is enacted to provide for the adjustment of annuities paid under subchapter III of chapter 83 of title 5, United States Code, on a once-a-year basis, the President shall exercise the authority vested in him under section 292 of the Central Intelligence Agency [Retirement] Act of 1964 for Certain Employees (50 U.S.C. 403 note) to provide for cost-of-living adjustments in the annuities paid under such Act on an identical basis. "(4) If at the time the first adjustment in retired and retainer pay is made under section 1401a(b) of title 10, United States Code, as amended by paragraph (1) of this subsection, the period upon which the most recent adjustment in such retired and retainer pay was computed is not identical to the period upon which the most recent adjustment in annuities under subchapter III of chapter 83 of title 5, United States Code, was computed, then the percentage increase to be made under such section 1401a(b) at the time of the first such adjustment shall be computed in the same manner as the percentage increase made at the same time in annuities under subchapter III of chapter 83 of title 5, United States Code, is computed, but shall be based on the period beginning on the last day of the period upon which the most recent adjustment in such retired and retainer pay was computed and ending on the last day of the period upon which the adjustment being made at the same time in annuities under such subchapter III is computed. The President shall by Executive order provide for a similar computation of the adjustment in annuities paid under the Central Intelligence Agency [Retirement] Act of 1964 for Certain Employees (50 U.S.C. 403 note) which is made at the same time as the increase in retired and retainer pay to which the preceeding [preceding] sentence is applicable. "(c) For the purposes of this section, the term 'uniformed services' means - "(1) the Armed Forces; and "(2) the commissioned corps of the National Oceanic and Atmospheric Administration and of the Public Health Service." COMPUTATION OF RETIRED PAY OF SERGEANT MAJORS OF MARINE CORPS WHO COMPLETED SERVICE PRIOR TO DECEMBER 16, 1967 Pub. L. 95-581, Nov. 2, 1978, 92 Stat. 2478, provided: "That (a) the retired pay of any individual who served as sergeant major of the Marine Corps and who completed such service before December 16, 1967, shall be computed based upon a rate of basic pay of the sum of (1) the highest rate of basic pay to which such individual was entitled while so serving, and (2) $150. "(b) For the purpose of computing any adjustment under section 1401a of title 10, United States Code, in the retired pay of any individual whose retired pay is affected by subsection (a), the rate of basic pay provided under such subsection for the purpose of computing the retired pay of such individual shall be considered to have been the rate of basic pay applicable to such individual at the time of his retirement, and any adjustment under such section 1401a in the retired pay of such individual before September 30, 1978, shall be readjusted to reflect such rate of basic pay. "Sec. 2. (a) Any change in the retired pay of any individual by reason of the enactment of this Act shall be effective for months beginning after September 30, 1978. "(b) The enactment of this Act shall not reduce the retired pay of any individual." [The Central Intelligence Agency Retirement Act of 1964 for Certain Employees, referred to in Pub. L. 96-342, set out above, is Pub. L. 88-643, Oct. 13, 1964, 78 Stat. 1043, which was revised generally by Pub. L. 102-496, title VIII, Sec. 802, Oct. 24, 1992, 106 Stat. 3196, is known as the Central Intelligence Agency Retirement Act and is classified generally to chapter 38 (Sec. 2001 et seq.) of Title 50, War and National Defense.] COST-OF-LIVING ADJUSTMENT OF RETIRED PAY OR RETAINER PAY OF MEMBERS AND FORMER MEMBERS OF ARMED FORCES AND COMMISSIONED OFFICERS OF NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION AND PUBLIC HEALTH SERVICE; EFFECTIVE DATE OF 1976 AMENDMENT Section 801(c) of Pub. L. 94-361 provided that: "(1) The amendments made by subsections (a) [to subsec. (b) of this section] and (b) [to provisions formerly set out as a note under section 403 of title 50] shall not become effective unless legislation is enacted repealing the so-called 1 per centum add-on provision applicable to the cost-of-living adjustment of annuities paid under chapter 83 of title 5, United States Code. In the event such legislation is enacted, such amendments shall become effective with respect to the cost-of-living adjustment of the retired pay and retainer pay of members and former members of the Armed Forces and the cost-of-living adjustment of annuities paid under the Central Intelligence Agency [Retirement] Act of 1964 for Certain Employees at the same time the repeal of such 1 per centum add-on provision becomes effective with respect to such cost-of-living adjustment of annuities paid under such chapter 83. "(2) If any change other than the repeal of the so-called 1 per centum add-on provision referred to in paragraph (1) is made in the method of computing the cost-of-living adjustment of annuities paid under chapter 83 of title 5, United States Code, the President shall make the same change in the cost-of-living adjustment of retired pay and retainer pay of members and former members of the Armed Forces and the cost-of-living adjustment of annuities paid under the Central Intelligence Agency [Retirement] Act of 1964 for Certain Employees. Any change made under this paragraph shall have the same effective date as the effective date applicable to such change made in annuities under chapter 83 of title 5, United States Code. "(3) The provisions of paragraphs (1) and (2) relating to any change in the method of computing the cost-of-living adjustment of the retired pay or retainer pay of members and former members of the Armed Forces shall be applicable to the computation of cost-of- living adjustments of the retired pay of commissioned officers of the National Oceanic and Atmospheric Administration and the retired pay of commissioned officers of the Public Health Service." [The Central Intelligence Agency Retirement Act of 1964 for Certain Employees, referred to in Pub. L. 94-361, set out above, is Pub. L. 88-643, Oct. 13, 1964, 78 Stat. 1043, which was revised generally by Pub. L. 102-496, title VIII, Sec. 802, Oct. 24, 1992, 106 Stat. 3196, is known as the Central Intelligence Agency Retirement Act and is classified generally to chapter 38 (Sec. 2001 et seq.) of Title 50, War and National Defense.] INCREASE IN CERTAIN ARMED FORCE MEMBERS' PAY AND ALLOWANCES NOT OTHERWISE TIED TO CONSUMER PRICE INDEX Pub. L. 93-210, Sec. 2, Dec. 28, 1973, 87 Stat. 908, provided that: "(a) Notwithstanding any other provision of law, effective on the date of enactment of this Act [Dec. 28, 1973], the pay and allowances of members of the Armed Forces to whom this Act applies shall be increased to amounts equal to the amounts such pay and allowances would have been increased if the pay and allowances of such members had been increased, under section 1401a(b) of title 10, United States Code, by the same percentage rates, consecutively compounded, that the retired pay or retainer pay of members and former members of the Armed Forces entitled to retired pay or retainer pay since October 1, 1967, has been increased, and such member shall, on and after the date of enactment of this Act [Dec. 28, 1973], have his pay and allowances increased effective the same day and by the same percentage rate that the retired pay or retainer pay of members and former members of the Armed Forces is increased under such section 1401a(b). "(b) This section applies to members of the Armed Forces entitled to pay and allowances under either of the following provisions of law: "(1) The Act of June 26, 1948, chapter 677 (62 Stat. 1052) [which authorized the appointment of one officer in the Regular Army in the permanent grade of general, one officer in the Regular Air Force in the permanent grade of general, and one officer in the Regular Navy in the permanent grade of admiral]. "(2) The Act of September 18, 1950, chapter 952 (64 Stat. A224) [which authorized the appointment of Omar N. Bradley to the permanent grade of General of the Army]. "(c) No amounts shall be paid, as the result of the enactment of this section, for any period prior to the date of enactment of this section [Dec. 28, 1973]." RETROACTIVE ADJUSTMENT OF RETIRED OR RETAINER PAY OF PERSONS ENTITLED THERETO AFTER NOVEMBER 30, 1966, BUT PRIOR TO EFFECTIVE DATE OF NEXT INCREASE AFTER JULY 1, 1966 Section 2(b) of Pub. L. 90-207 provided that: "Notwithstanding section 1401a(d) of title 10, United States Code, a person who is a member or former member of an armed force on the date of enactment of this Act [Dec. 16, 1967] and who initially became, or hereafter initially becomes, entitled to retired pay or retainer pay after November 30, 1966, but before the effective date of the next increase after July 1, 1966, in the rates of monthly basic pay prescribed by section 203 of title 37, United States Code, is entitled to have his retired pay or retainer pay increased by 3.7 percent, effective as of the date of his entitlement to that pay." -End- -CITE- 10 USC Sec. 1402 01/03/2007 -EXPCITE- TITLE 10 - ARMED FORCES Subtitle A - General Military Law PART II - PERSONNEL CHAPTER 71 - COMPUTATION OF RETIRED PAY -HEAD- Sec. 1402. Recomputation of retired or retainer pay to reflect later active duty of members who first became members before September 8, 1980 -STATUTE- (a) A member of an armed force who first became a member of a uniformed service before September 8, 1980, and who has become entitled to retired pay or retainer pay, and who thereafter serves on active duty (other than for training), is entitled to recompute his retired pay or retainer pay upon his release from that duty according to the following table. Column 1 - Take: Monthly basic pay (!1) of the grade in which he would be eligible - (1) to retire if he were retiring upon that release from active duty; or (2) to transfer to the Fleet Reserve or Fleet Marine Corps Reserve if he were transferring to either upon that release from active duty. Column 2 - Multiply by: 2 1/2 percent of the sum of - (1) the years of service that may be credited to him in computing retired pay or retainer pay; and (2) his years of active service after becoming entitled to retired pay or retainer pay.(!2) Column 3 - Subtract: Excess over 75 percent of pay upon which computation is based. (!1) For a member who has been entitled, for continuous period of at least two years, to basic pay under the rates of basic pay in effect upon that release from active duty, compute under those rates. For a member who has been entitled to basic pay for a continuous period of at least two years upon that release from active duty, but who is not covered by the preceding sentence, compute under the rates of basic pay replaced by those in effect upon that release from active duty. For any other member, compute under the rates of basic pay under which the member's retired pay or retainer pay was computed when he entered on that active duty. (!2) Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month. -------------------------------------------------------------------- However, an officer who was ordered to active duty (other than for training) in the grade that he holds on the retired list under former section 6150 of this title, or under any other law that authorized advancement on the retired list based upon a special commendation for the performance of duty in actual combat, may have his retired pay recomputed under this subsection on the basis of the rate of basic pay applicable to that grade upon his release from that active duty only if he has been entitled, for a continuous period of at least three years, to basic pay at that rate. If, upon his release from that active duty, he has been entitled to the basic pay of that grade for a continuous period of at least three years, but he does not qualify under the preceding sentence, he may have his retired pay recomputed under this subsection on the basis of the rate of basic pay prescribed for that grade by the rates of basic pay replaced by those in effect upon his release from that duty. (b) A member of an armed force who first became a member of a uniformed service before September 8, 1980, and who has been retired other than for physical disability, and who while on active duty incurs a physical disability of at least 30 percent for which he would otherwise be eligible for retired pay under chapter 61 of this title, is entitled, upon his release from active duty, to retired pay under subsection (d). (c) A member of an armed force who first became a member of a uniformed service before September 8, 1980, and who - (1) was retired for physical disability under section 1201 or 1204 of this title or any other law or whose name is on the temporary disability retired list; (2) incurs, while on active duty after retirement or after his name was placed on that list, a physical disability that is in addition to or that aggravates the physical disability for which he was retired or for which his name was placed on the temporary disability retired list; and (3) is qualified under section 1201, 1202, 1204, or 1205 of this title; is entitled, upon his release from active duty, to retired pay under subsection (d). (d) A member of an armed force covered by subsection (b) or (c) may elect to receive either (1) the retired pay to which he became entitled when he retired, increased by any applicable adjustments in that pay under section 1401a of this title after he initially became entitled to that pay, or (2) retired pay computed according to the following table. Column 1 - Take: Highest monthly basic pay that member received while on active duty after retirement or after date when his name was placed on temporary disability retired list, as the case may be. Column 2 - Multiply by: As member elects - (1) 2(!1/2)% of years of service credited under section 1208 of this title; (!1) or (2) the highest percentage of disability attained while on active duty after retirement or after the date when his name was placed on temporary disability retired list, as the case may be.(!1) Column 3 - Add: Add amount necessary to increase product of columns 1 and 2 to 50% of pay upon which computation is based, if member is on temporary disability retired list Column 4 - Subtract: Excess over 75% of pay upon which computation is based. (!1) Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month. -------------------------------------------------------------------- If, while on active duty after retirement or after his name was placed on the temporary disability retired list, a member covered by this subsection was promoted to a higher grade in which he served satisfactorily, as determined by the Secretary concerned, he is entitled to retired pay based on the monthly basic pay to which he would be entitled if he were on active duty in that higher grade. (e) Notwithstanding subsection (a), a member covered by that subsection may elect, upon his release from active duty, to have his retired pay or retainer pay - (1) computed according to the formula set forth in subsection (a) but using the rate of basic pay under which his retired pay or retainer pay was computed when he entered on active duty; and (2) increased by any applicable adjustments in that pay under section 1401a of this title after he initially became entitled to that pay. (f)(1) In the case of a member who is entitled to recompute retired pay under this section upon release from active duty served after retiring under section 3914 or 8914 of this title, the member's retired pay as recomputed under another provision of this section shall be increased by 10 percent of the amount so recomputed if the member has been credited by the Secretary concerned with extraordinary heroism in the line of duty during any period of active duty service in the armed forces. (2) The amount of the retired pay as recomputed under another provision of this section and as increased under paragraph (1) may not exceed the amount equal to 75 percent of the monthly rate of basic pay upon which the recomputation of such retired pay is based. (3) The determination of the Secretary concerned as to extraordinary heroism is conclusive for all purposes. -SOURCE- (Aug. 10, 1956, ch. 1041, 70A Stat. 107; Pub. L. 86-559, Sec. 1(5), June 30, 1960, 74 Stat. 265; Pub. L. 88-132, Sec. 5(l)(1), Oct. 2, 1963, 77 Stat. 214; Pub. L. 90-207, Sec. 2(a)(2), Dec. 16, 1967, 81 Stat. 653; Pub. L. 96-342, title VIII, Sec. 813(b)(2), Sept. 8, 1980, 94 Stat. 1102; Pub. L. 96-513, title V, Sec. 511(50), Dec. 12, 1980, 94 Stat. 2924; Pub. L. 98-94, title IX, Secs. 922(a)(3), (4), 923(a)(1), (2)(B), (C), Sept. 24, 1983, 97 Stat. 641, 642; Pub. L. 99-348, title II, Sec. 201(b)(3), title III, Sec. 304(a)(3), (b)(3), July 1, 1986, 100 Stat. 694, 703; Pub. L. 102- 484, div. A, title VI, Sec. 642(a), Oct. 23, 1992, 106 Stat. 2424.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at section Large) -------------------------------------------------------------------- 1402(a) 37:316. Oct. 12, 1949, ch. 681, Secs. 402(d) (last proviso, less applicability to retired grade), 516, 63 Stat. 819, 832. 1402(b), (c) 37:272(d) (1st 128 words of last proviso, less applicability to retired grade). 1402(d) 37:272(d) (last proviso, less 1st 128 words, and less applicability to retired grade). -------------------------------------------------------------------- In subsection (a), columns 1 and 2 of the table are based on 37:316 (1st proviso). Column 4 is based on 37:316 (last proviso). Footnote 1 is based on 37:316 (2d proviso). 37:316 (3d proviso) is omitted as operationally obsolete. In subsections (a) and (d), the words "and disregard a part of a year that is less than six months" are added to footnote 1 to conform to footnote 3 of section 1401 of this title. In subsection (b), the words "for which he would otherwise be eligible for retired pay under chapter 61 of this title" are substituted for the words "in accordance with the standard schedule of rating disabilities in current use by the Veterans' Administration" and "if qualified". In subsection (c), the requirement that the physical disability incurred be 30 percent or more is omitted as surplusage, since it is also required that the member be qualified for physical disability retirement under section 1201 or 1204 of this title. In subsection (d), the rules stated in 37:316 (2d and last provisos) are repeated in column 4 of the table and the footnote to the table, since they apply to all cases of increased pay for active duty performed after retirement. -COD- CODIFICATION Another section 304(b)(3) of Pub. L. 99-348 amended the table of sections at the beginning of chapter 571 of this title. -MISC2- AMENDMENTS 1992 - Subsec. (f). Pub. L. 102-484 added subsec. (f). 1986 - Pub. L. 99-348, Sec. 304(b)(3), inserted "of members who first became members before September 8, 1980" in section catchline. Subsec. (a). Pub. L. 99-348, Secs. 201(b)(3), 304(a)(3), struck out "(as defined in section 1407(a)(2) of this title)" after "uniformed service" and struck out provision that if the amount recomputed is not a multiple of $1, it be rounded to the next lower multiple of $1. See section 1412 of this title. Subsecs. (b), (c). Pub. L. 99-348, Sec. 304(a)(3), struck out "(as defined in section 1407(a)(2) of this title)" after "uniformed service". Subsec. (d). Pub. L. 99-348, Sec. 201(b)(3), struck out provision that if the amount recomputed is not a multiple of $1, it be rounded to the next lower multiple of $1. See section 1412 of this title. 1983 - Subsec. (a). Pub. L. 98-94, Sec. 922(a)(3), substituted "according to the following table. The amount recomputed, if not a multiple of $1, shall be rounded to the next lower multiple of $1." for "as follows:". Pub. L. 98-94, Sec. 923(a)(1), (2)(B), in footnote 2 of table, substituted "Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month" for "Before applying percentage factor, credit a part of a year that is six months or more as a whole year, and disregard a part of a year that is less than six months". Subsec. (d). Pub. L. 98-94, Sec. 922(a)(4), substituted "according to the following table. The amount computed, if not a multiple of $1, shall be rounded to the next lower multiple of $1." for "as follows:". Pub. L. 98-94, Sec. 923(a)(1), (2)(C), in footnote 1 of table, substituted "Before applying percentage factor, credit each full month of service that is in addition to the number of full years of service creditable to the member as one-twelfth of a year and disregard any remaining fractional part of a month" for "Before applying percentage factor, credit a part of a year that is six months or more as a whole year, and disregard a part of a year that is less than six months". 1980 - Subsecs. (a) to (c). Pub. L. 96-513 substituted "a uniformed service (as defined in section 1407(a)(2) of this title) before September 8, 1980" for "the armed forces before the date of the enactment of the Department of Defense Appropriation Act, 1981" wherever appearing. Pub. L. 96-342 inserted "who first became a member of the armed forces before the date of the enactment of the Department of Defense Authorization Act, 1981, and" after "of an armed force" wherever appearing. 1967 - Subsec. (d). Pub. L. 90-207, Sec. 2(a)(2)(A), inserted "increased by any applicable adjustments in that pay under section 1401a of this title after he initially became entitled to that pay" after "retired,". Subsec. (e). Pub. L. 90-207, Sec. 2(a)(2)(B), added subsec. (e). 1963 - Subsec. (a). Pub. L. 88-132 substituted in introductory clause "who has become entitled to retired pay or retainer pay" for "who has been retired or has become entitled to retainer pay" and "to recompute his retired pay or retainer pay upon his release from that duty" for ", upon release from that duty, to recompute his retired or retainer pay" and inserted in such clause "(other than for training)" after "active duty"; substituted in column 1 of table "Monthly basic pay" for "Monthly basic pay or base and longevity pay, as the case may be,", designated existing provisions as (1) and added (2); substituted in (1) of column 2 of the table "retired pay or retainer pay" for "retired or retainer pay" and in (2) of such column 2 "after becoming entitled to retired pay or retainer pay" for "after retirement or becoming entitled to retainer pay", struck out column 3 relating to addition and redesignated column 4 as 3; added footnote 1 to the table and redesignated former footnote 1 as 2; and inserted provisions for recomputation of retired pay upon release from active duty of officers ordered to active duty in a higher grade based upon special commendation for performance of duty in actual combat. 1960 - Subsec. (a). Pub. L. 86-559 prohibited recomputation of retired pay under subsec. (a) on the basis of any period of active duty that was of less than six consecutive months' duration or on the basis of any active duty for training for a reserve officer who is or has been retired under section 3911, 6323, or 8911 of this title or under section 232 of title 14. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983, see section 922(e) of Pub. L. 98-94, set out as a note under section 1401 of this title. Amendment by section 923 of Pub. L. 98-94 applicable with respect to (1) the computation of retired or retainer pay of any individual who becomes entitled to that pay after Sept. 30, 1983, and (2) the recomputation of retired pay under this section, of any individual who after Sept. 30, 1983, becomes entitled to recompute retired pay under this section, see section 923(g) of Pub. L. 98-94, set out as a note under section 1174 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section 701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1967 AMENDMENT Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7 of Pub. L. 90-207, set out as a note under section 203 of Title 37, Pay and Allowances of the Uniformed Services. EFFECTIVE DATE OF 1963 AMENDMENT Amendment by Pub. L. 88-132 effective Oct. 1, 1963, see section 14 of Pub. L. 88-132, set out as a note under section 201 of Title 37, Pay and Allowances of the Uniformed Services. ACCRUAL OF BENEFITS; PROSPECTIVE APPLICABILITY Section 642(c) of Pub. L. 102-484 provided that: "No benefits shall accrue for months beginning before the date of the enactment of this Act [Oct. 23, 1992] by reason of the amendments made by this section [amending this section and section 1402a of this title]." RECOMPUTATION OF RETIRED PAY OF CERTAIN RECALLED RETIREES Pub. L. 98-525, title VI, Sec. 655, Oct. 19, 1984, 98 Stat. 2552, provided that: "(a) Notwithstanding the second sentence of footnote 1 of the table contained in section 1402(a) of title 10, United States Code (relating to recomputation of retired pay to reflect later active duty), in the case of a member of the Armed Forces who - "(1) was voluntarily called or ordered to active duty during the period beginning on October 1, 1963, and ending on September 30, 1971; "(2) was at the time of such call or order entitled to retired pay or retainer pay; "(3) served on such active duty under such call or order for a continuous period of at least two years; and "(4) was released from such active duty before October 1, 1973, the retired or retainer pay of such member shall be recomputed, as provided in subsection (b), under the rates of basic pay in effect at the time of that release from active duty. "(b) The retired or retainer pay of a member of the Armed Forces described in subsection (a) shall be the amount determined under section 1402(a) of title 10, United States Code (as modified with respect to such member by subsection (a)), and increased by the amount by which the member's retired or retainer pay would have been increased during the period beginning on the date of the member's release from active duty referred to in subsection (a)(4) and ending on the day before the day on which this section becomes effective had subsection (a) applied in the case of the member at the time of that release from active duty. "(c) This section shall apply only with respect to retired pay and retainer pay payable for months beginning after September 30, 1984, or on or after the date of the enactment of this Act [Oct. 19, 1984], whichever is later." RETIRED PAY AND RETAINER PAY; PROHIBITION AGAINST RECOMPUTATION UNDER 1963 PAY RATES; EXCEPTIONS; INCREMENTS BASED ON THE GREATER OF A 5 PERCENT INCREASE OR RECOMPUTATION UNDER 1958 PAY RATES FOR MEMBERS RETIRED PRIOR TO OCTOBER 1949 FOR REASONS OTHER THAN PHYSICAL DISABILITY, MEMBERS RECEIVING RETIRED PAY UNDER CAREER COMPENSATION ACT OF 1949 AND FORMER CHIEFS OF STAFF; ADDITIONAL 5 PERCENT INCREASE FOR OTHER RETIRED MEMBERS; EXCLUSION FROM INCREASE OF OFFICERS RETIRED UNDER CERTAIN PROVISIONS Section 5(a)-(f) of Pub. L. 88-132 provided that: "(a) Except as provided in section 1402 of title 10, United States Code, the changes made by this Act [see Short Title note under section 201 of Title 37] in the rates of basic pay of members of the uniformed services do not increase the retired pay or retainer pay to which a member or former member of the uniformed services was entitled on the day before the effective date of this Act [Oct. 1, 1963]. However, except for a member covered by section 6331 of title 10, United States Code who became entitled to retainer pay before April 1, 1963, and subject to subsection (j) of this section [set out as a note below], a member or former member of a uniformed service who became entitled to retired pay or retainer pay after March 31, 1963, but before the effective date of this Act [Oct. 1, 1963], is entitled - "(1) to have the retired pay or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963] recomputed under the rates of basic pay prescribed by section 2 of this Act [amending section 203 of Title 37]; or "(2) to continue to have that pay computed under the rates of basic pay that were in effect under section 203 of title 37, United States Code, on the day before the effective date of this Act [Oct. 1, 1963], plus the percentage increase provided by subsection (e) of this section; whichever pay is the greater. For the purposes of the preceding sentence, a member or former member who became entitled to retired pay on April 1, 1963, by virtue of section 1 of the Act of April 23, 1930, ch. 209, as amended (5 U.S.C. 47a) [section 8301 of Title 5], shall be considered as having become entitled to that pay before April 1, 1963. "(b) A member or former member of a uniformed service who was retired other than for physical disability and who, in accordance with section 511 of the Career Compensation Act of 1949 (63 Stat. 829) [10 U.S.C. 580 note], is entitled to retired pay or retainer pay computed by 'method' (a) of that section using rates of basic pay that were in effect before October 1, 1949, is entitled - "(1) to have pay recomputed by 'method' (b) of that section using the rates of basic pay that were in effect under that Act on the day before the effective date of this Act [Oct. 1, 1963]; or "(2) to an increase of 5 percent in the retired pay or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963]; whichever pay is the greater. "(c) A member or former member of a uniformed service who is entitled to retired pay or retainer pay computed under the rates of basic pay that were in effect under the Career Compensation Act of 1949 before June 1, 1958, including a member or former member who is entitled to retired pay under section 7 (b) or (c) of the Act of May 20, 1958, Public Law 85-422 (72 Stat. 130), is entitled - "(1) to have that pay recomputed under the rates of basic pay that were in effect under that Act on the day before the effective date of this Act [Oct. 1, 1963]; or "(2) to an increase of 5 percent in the retired pay or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963]; whichever pay is the greater. "(d) A member or former member of a uniformed service who was entitled to retired pay on the day before the effective date of this Act [Oct. 1, 1963] and who served as Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or Commandant of the Marine Corps is entitled - "(1) to have his retired pay recomputed under the formula for computing retired pay applicable to him - "(A) when he retired; or "(B) if he served on active duty after he retired and his retired pay was recomputed by reason of that service, when his retired pay was so recomputed; using as his rate of basic pay the rate of basic pay prescribed for officers serving on active duty in those positions on June 1, 1958, by footnote 1 to table for commissioned officers in section 201(a) of the Career Compensation Act of 1949, as amended (72 Stat. 122) [see section 203 of Title 37]; or "(2) to an increase of 5 percent in the retired pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963]; whichever pay is the greater. "(e) A member or former member of a uniformed service who was entitled to retired pay or retainer pay on the day before the effective date of this Act [Oct. 1, 1963], other than a member or former member who is covered by subsection (b), (c), or (d) of this section, is entitled to an increase of 5 percent in the retired or retainer pay to which he was entitled on the day before the effective date of this Act [Oct. 1, 1963]. "(f) Notwithstanding any other provision of law, a member of an armed force who was entitled to pay and allowances under any of the following provisions of law on the day before the effective date of this Act [Oct. 1, 1963] shall continue to receive the pay and allowances to which he was entitled on that day: "(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59). "(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052). "(3) The Act of September 18, 1950, chapter 952 (64 Stat. A224)." RETIRED PAY AND RETAINER PAY; RETROACTIVE EFFECT Section 5(j) of Pub. L. 88-132 provided that: "A member or former member of a uniformed service is not entitled to an increase in his retired pay or retainer pay because of the enactment of this Act [see Short Title note set out under section 201 of Title 37] for any period before the effective date of this Act [Oct. 1, 1963]." SAVINGS PROVISION Section 5(l)(2) of Pub. L. 88-132 provided that: "Notwithstanding paragraph (1) of this subsection [amending this section], and unless otherwise entitled to higher retired pay or retainer pay, a member of a uniformed service who is on active duty (other than for training) on the effective date of this Act [Oct. 1, 1963], who was entitled to retired pay or retainer pay before he entered on that duty, and who is released from that duty on or after the effective date of