To improve recruitment and retention in the Armed Forces.

1. Adds Subtitle F--Enhancement of Authorities for Recruitment and Retention SEC. 671. INCREASE IN MAXIMUM RATE OF ASSIGNMENT INCENTIVE PAY at the end of title VI

   Adds a section

   In S. 1042 · Placed on Calendar Senate

   (ii) would assist such members in establishing habits of financial responsibility during their initial enlistments in the Armed Forces.

   Inserted: Subtitle F--Enhancement of Authorities for Recruitment and Retention SEC. 671. INCREASE IN MAXIMUM RATE OF ASSIGNMENT INCENTIVE PAY.

   Inserted: (a) Increase in Maximum Rate.--Section 307a(c) of title 37, United States Code, is amended by striking "$1,500" and inserting "$3,000".

   Inserted: (b) Effective Date.--The amendment made by subsection (a) shall take effect on the date of the enactment of this Act, and shall apply with respect to months beginning on or after that date.

   Inserted: SEC. 672. TEMPORARY INCREASE IN BASIC ALLOWANCE FOR HOUSING IN AREAS SUBJECT TO DECLARATION OF A MAJOR DISASTER.

   Inserted: (a) Temporary Increase Authorized.--Section 403(b) of title 37, United States Code, is amended--

   Inserted: (1) by redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectively; and

   Inserted: (2) by inserting after paragraph (4) the following new paragraph (5):

   Inserted: "(5)(A) The Secretary of Defense may prescribe a temporary increase in rates of basic allowance for housing in a military housing area located in an area for which a major disaster has been declared in accordance with section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170).

   Inserted: "(B) The amount of the increase under this paragraph in rates of basic allowance for housing in an area by reason of a disaster shall be based on a determination by the Secretary of the amount by which the costs of adequate housing for civilians have increased in the area by reason of the disaster.

   Inserted: "(C) The amount of any increase under this paragraph in a rate of basic allowance for housing may not exceed the amount equal to 20 percent of such rate of basic allowance for housing.

   Inserted: "(D) A member may be paid a basic allowance for housing at a rate increased under this paragraph by reason of a disaster only if the member certifies to the Secretary concerned that the member has incurred increased housing costs in the area concerned by reason of the disaster.

   Inserted: "(E) An increase in rates of basic allowance for housing in an area under this paragraph shall remain in effect until the effective date of the first adjustment in rates of basic allowance for housing made for the area pursuant to a redetermination of housing costs in the area under paragraph (4) that occurs after the date of the increase under this paragraph.".

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   Inserted: (b) Effective Date.--The amendments made by subsection (a) shall take effect on September 1, 2005, and shall apply with respect to months beginning on or after that date.

   Inserted: SEC. 673. TEMPORARY AUTHORITY FOR INCENTIVES FOR RECRUITMENT OF MILITARY PERSONNEL.

   Inserted: (a) Authority To Provide Incentives.--The Secretary of Defense may, in consultation with the Director of the Office of Management and Budget, develop and provide incentives (in addition to any other incentives authorized by law) for the recruitment of individuals as officers and enlisted members of the Armed Forces.

   Inserted: (b) Construction With Other Personnel Authorities.--

   Inserted: (1) In general.--Incentives may be provided under subsection (a)--

   Inserted: (A) without regard to the lack of specific authority for such incentives under title 10, United States Code, or title 37, United States Code; and

   Inserted: (B) notwithstanding any provision of title 10, United States Code, or title 37, United States Code, or any rule or regulation prescribed under such provision, relating to methods of--

   Inserted: (i) determining requirements for, and the compensation of, members of the Armed Forces who are assigned duty as military recruiters; or

   Inserted: (ii) providing incentives to individuals to accept commissions or enlist in the Armed Forces, including the provision of group or individual bonuses, pay, or other incentives.

   Inserted: (2) Waiver of otherwise applicable laws.--No provision of title 10, United States Code, or title 37, United States Code, may be waived with respect to, or otherwise determined to be inapplicable to, the provision of incentives under subsection (a) except with the approval of the Secretary.

   Inserted: (c) Plans.--

   Inserted: (1) Development of plans.--Before providing an incentive under subsection (a), or entering into any agreement or contract with respect to the provision of such incentive, the Secretary shall develop a plan that includes--

   Inserted: (A) a description of such incentive, including the purpose of such project and the members (or potential recruits) of the Armed Forces to be addressed by such incentive;

   Inserted: (B) a statement of the anticipated outcomes of such incentive; and

   Inserted: (C) the method of evaluating the effectiveness of such incentive.

   Inserted: (2) Submittal of plans.--Not later than 30 days before the provision of an incentive under subsection (a), the Secretary shall submit a copy of the plan developed under paragraph (1) on such incentive--

   Inserted: (A) to the elements of the Department of Defense to be affected by the provision of such incentive; and

   Inserted: (B) to Congress.

   Inserted: (d) Limitations.--

   Inserted: (1) Number of individuals.--The number of individuals provided incentives under subsection (a) may not exceed the number of individuals equal to 20 percent of the accession mission of the Armed Force concerned for the fiscal year in which such incentives are first provided.

   Inserted: (2) Duration of provision.--The provision of incentives under subsection (a) shall terminate not later than the end of the three-year period beginning on the date on which the provision of such incentives commences (except that such incentives may continue to be provided beyond the date otherwise provided in this paragraph to the extent necessary to evaluate the effectiveness of such incentives).

   Inserted: (e) Reports.--

   Inserted: (1) In general.--The Secretary shall submit to Congress on an annual basis a report on the incentives provided under subsection (a) during the preceding year.

   Inserted: (2) Elements.--Each report under this subsection shall include--

   Inserted: (A) a description of the incentives provided under subsection (a) during the fiscal year covered by such report; and

   Inserted: (B) an assessment of the impact of such incentives on the recruitment of individuals as officers or enlisted members of the Armed Forces.

   Inserted: SEC. 674. PAY AND BENEFITS TO FACILITATE VOLUNTARY SEPARATION OF TARGETED MEMBERS OF THE ARMED FORCES.

   Inserted: (a) Pay and Benefits Authorized.--

   Inserted: (1) In general.--Chapter 59 of title 10, United States Code, is amended by inserting after section 1175 the following new section:

   Inserted: "Sec. 1175a. Voluntary separation pay and benefits

   Inserted: "(a) In General.--Under regulations approved by the Secretary of Defense, the Secretary concerned may provide voluntary separation pay and benefits in accordance with this section to eligible members of the armed forces who are voluntarily separated from active duty in the armed forces.

   Inserted: "(b) Eligible Members.--(1) Except as provided in paragraph (2), a member of the armed forces is eligible for voluntary separation pay and benefits under this section if the member--

   Inserted: "(A) has served on active duty for more than 6 years but not more than 20 years;

   Inserted: "(B) has served at least 5 years of continuous active duty immediately preceding the date of the member's separation from active duty;

   Inserted: "(C) has not been approved for payment of a voluntary separation incentive under section 1175 of this title;

   Inserted: "(D) meets such other requirements as the Secretary concerned may prescribe, which may include requirements relating to--

   Inserted: "(i) years of service, skill, rating, military specialty, or competitive category;

   Inserted: "(ii) grade or rank;

   Inserted: "(iii) remaining period of obligated service; or

   Inserted: "(iv) any combination of these factors; and

   Inserted: "(E) requests separation from active duty.

   Inserted: "(2) The following members are not eligible for voluntary separation pay and benefits under this section:

   Inserted: "(A) Members discharged with disability severance pay under section 1212 of this title.

   Inserted: "(B) Members transferred to the temporary disability retired list under section 1202 or 1205 of this title.

   Inserted: "(C) Members being evaluated for disability retirement under chapter 61 of this title.

   Inserted: "(D) Members who have been previously discharged with voluntary separation pay.

   Inserted: "(E) Members who are subject to pending disciplinary action or who are subject to administrative separation or mandatory discharge under any other provision of law or regulations.

   Inserted: "(3) The Secretary concerned shall determine each year the number of members to be separated, and provided separation pay and benefits, under this section during the fiscal year beginning in such year.

   Inserted: "(c) Separation.--Each eligible member of the armed forces whose request for separation from active duty under subsection (b)(1)(E) is approved shall be separated from active duty.

   Inserted: "(d) Additional Service in Ready Reserve.--Of the number of members of the armed forces to be separated from active duty in a fiscal year, as determined under subsection (b)(3), the Secretary concerned shall determine a number of such members, in such skill and grade combinations as the Secretary concerned shall designate, who shall serve in the Ready Reserve, after separation from active duty, for a period of not less than three years, as a condition of the receipt of voluntary separation pay and benefits under this section.

   Inserted: "(e) Separation Pay and Benefits.--(1) A member of the armed forces who is separated from active duty under subsection (c) shall be paid voluntary separation pay in accordance with subsection (g) in an amount determined by the Secretary concerned pursuant to subsection (f).

   Inserted: "(2) A member who is not entitled to retired or retainer pay upon separation shall be entitled to the benefits and services provided under--

   Inserted: "(A) chapter 58 of this title during the 180-day period beginning on the date the member is separated (notwithstanding any termination date for such benefits and services otherwise applicable under the provisions of such chapter); and

   Inserted: "(B) sections 404 and 406 of title 37.

   Inserted: "(f) Computation of Voluntary Separation Pay.--The Secretary concerned shall specify the amount of voluntary separation pay that an individual or defined group of members of the armed forces may be paid under subsection (e)(1). No member may receive as voluntary separation pay an amount greater than three times the full amount of separation pay for a member of the same pay grade and years of service who is involuntarily separated under section 1174 of this title.

   Inserted: "(g) Payment of Voluntary Separation Pay.--(1) Voluntary separation pay under this section may be paid in a single lump sum.

   Inserted: "(2) In the case of a member of the armed forces who, at the time of separation under subsection (c), has completed at least 15 years, but less than 20 years, of active service, voluntary separation pay may be paid, at the election of the Secretary concerned, in--

   Inserted: "(A) a single lump sum;

   Inserted: "(B) installments over a period not to exceed 10 years; or

   Inserted: "(C) a combination of lump sum and such installments.

   Inserted: "(h) Coordination With Retired or Retainer Pay and Disability Compensation.--(1) A member who is paid voluntary separation pay under this section and who later qualities for retired or retainer pay under this title or title 14 shall have deducted from each payment of such retired or retainer pay an amount, in such schedule of monthly installments as the Secretary concerned shall specify, until the total amount deducted from such retired or retainer pay is equal to the total amount of voluntary separation pay so paid.

   Inserted: "(2)(A) Except as provided in subparagraphs (B) and (C), a member who is paid voluntary separation pay under this section shall not be deprived, by reason of the member's receipt of such pay, of any disability compensation to which the member is entitled under the laws administered by the Secretary of Veterans Affairs, but there shall be deducted from such disability compensation an amount, in such schedule of monthly installments as the Secretary concerned shall specify, until the total amount deducted from such disability compensation is equal to the total amount of voluntary separation pay so paid.

   Inserted: "(B) No deduction shall be made from the disability compensation paid to an eligible disabled uniformed services retiree under section 1413, or to an eligible combat-related disabled uniformed services retiree under section 1413a of this title, who is paid voluntary separation pay under this section.

   Inserted: "(C) No deduction may be made from the disability compensation paid to a member for the amount of voluntary separation pay received by the member because of an earlier discharge or release from a period of active duty if the disability which is the basis for that disability compensation was incurred or aggravated during a later period of active duty.

   Inserted: "(3) The requirement under this subsection to repay voluntary separation pay following retirement from the armed forces does not apply to a member who was eligible to retire at the time the member applied and was accepted for voluntary separation pay and benefits under this section.

   Inserted: "(4) The Secretary concerned may waive the requirement to repay voluntary separation pay under paragraphs (1) and (2) if the Secretary determines that recovery would be against equity and good conscience or would be contrary to the best interests of the United States.

   Inserted: "(i) Retirement Defined.--In this section, the term 'retirement' includes a transfer to the Fleet Reserve or Fleet Marine Corps Reserve.

   Inserted: "(j) Repayment for Members who Return to Active Duty.--(1) Except as provided in paragraphs (2) and (3), a member of the armed forces who, after having received all or part of voluntary separation pay under this section, returns to active duty shall have deducted from each payment of basic pay, in such schedule of monthly installments as the Secretary concerned shall specify, until the total amount deducted from such basic pay equals the total amount of voluntary separation pay received.

   Inserted: "(2) Members who are involuntarily recalled to active duty or full-time National Guard duty in accordance with section 12301(a), 12301(b), 12301(g), 12302, 12303, or 12304 of this title or section 502(f)(1) of title 32 shall not be subject to this subsection.

   Inserted: "(3) Members who are recalled or perform active duty or full-time National Guard duty in accordance with section 101(d)(1), 101(d)(2), 101(d)(5), 12301(d) (insofar as the period served is less than 180 consecutive days with the consent of the member), 12319, or 12503 of title 10, or section 114, 115, or 502(f)(2) of title 32 (insofar as the period served is less than 180 consecutive days with consent of the member), shall not be subject to this subsection.

   Inserted: "(4) The Secretary of Defense may waive, in whole or in part, repayment required under paragraph (1) if the Secretary determines that recovery would be against equity and good conscience or would be contrary to the best interests of the United States. The authority in this paragraph may be delegated only to the Undersecretary of Defense for Personnel and Readiness and the Principal Deputy Undersecretary of Defense for Personnel and Readiness.

   Inserted: "(k) Termination of Authority.--(1) The authority to separate a member of the armed forces from active duty under subsection (c) shall terminate on December 31, 2008.

   Inserted: "(2) A member who separates by the date specified in paragraph (1) may continue to be provided voluntary separation pay and benefits under this section until the member has received the entire amount of pay and benefits to which the member is entitled under this section.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 59 of such title is amended by inserting after the item relating to section 1175 the following new item:

   Inserted: "1175a. Voluntary separation pay and benefits.".

   Inserted: (b) Limitation on Applicability.--During the period beginning on the date of the enactment of this Act and ending on December 31, 2008, the members of the Armed Forces who are eligible for separation, and for the provision of voluntary separation pay and benefits, under section 1175a of title 10, United States Code (as added by subsection (a)), shall be limited to officers of the Armed Forces who meet the eligibility requirements of section 1175a(b) of title 10, United States Code (as so added), but have not completed more than 12 years of active service as of the date of separation from active duty.

   Inserted: (c) Officer Selective Early Retirement.--Section 638a(a) of title 10, United States Code, is amended by adding at the end the following new sentence: "During the period beginning on October 1, 2005, and ending on December 31, 2011, the Secretary of Defense may also authorize the Secretary of the Navy and the Secretary of the Air Force to take any of the actions set forth in such subsection with respect to officers of the armed forces under the jurisdiction of such Secretary.".

   Original wording

   At the end of title VI, add the following:

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As printed