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"(b) For basic pay purposes, commissioned officers are assigned by the rank or grade in which serving, whether under temporary or permanent appointment, to the various pay grades prescribed by subsection (a) of this section, as follows:

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1 A limited duty officer of the Navy or Marine Corps in this grade is assigned to a warrant officer pay grade as prescribed in section 202 of this title.

"(c) In addition to the pay and allowances otherwise authorized by this Act, commissioned officers of a uniformed service on active duty under a call or order that does not specify a period of thirty days or less, are entitled to additional increments of basic pay at monthly rates as follows:

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In the computation of retired pay, severance pay, or readjustment payments, authorized under any provision of law, or pay provided by section 680 of title 10, United States Code, section 4 (c) of the Armed Forces Leave Act of 1946 (37 U. S. C. 33 (c)), or section 219 (c) of the Public Health Service Act (42 U. S. C. 210-1), the additional increment provided by this subsection is not considered a part of the active duty pay or of the monthly basic pay of the applicable pay grades of the officers concerned.

"BASIC PAY-WARRANT OFFICERS

"SEC. 202. (a) For the purposes of computing the basic pay of warrant officers of the uniformed services, pay grades are prescribed and monthly basic pay is established within each pay grade according to years of service in that grade, as follows:

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"(b) For basic pay purposes, Limited Duty Officers of the Navy or Marine Corps in the following grades, whether under temporary or permanent appointment, are assigned to the pay grades prescribed by subsection (a) of this section, as follows, and are entitled to the rates of pay prescribed therein:

"Pay grade

Grade

W-3.. W-2.. W-1.

Lieutenant or captain.

Lieutenant (junior grade) or first lieutenant.
Ensign or second lieutenant.'

"BASIC PAY-ENLISTED MEMBERS

"SEC. 203. (a) For the purpose of computing the basic pay of enlisted members of the uniformed services, pay grades are prescribed and monthly basic pay is established within each pay grade according to years of service in that grade, as follows:

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"(b) For basic pay purposes, enlisted members shall be distributed by the Secretary concerned, in the manner determined by him, and with the approval of the Secretary of Defense, in the various pay grades prescribed by subsection (a) of this section.

"(c) Aviation cadets of the Navy, the Air Force, or the Marine Corps are entitled to monthly basic pay at the rate of 50 per centum of the base rate of a commissioned officer in pay grade 0-1.

"BASIC PAY-ENTITLEMENT

"SEC. 204. (a) A member of a uniformed service who is on active duty is entitled to the basic pay of the pay grade to which assigned, or in which distributed, in accordance with his years of service in that pay grade. For the purposes of this Act, a member of the Army National Guard or Air National Guard who is performing full-time training, training duty with pay, or other full-time duty, authorized by section 316, 503, 504, or 505 of title 32, United States Code, is considered to be on active duty.

"(b) When a member of a uniformed service is ordered to active duty under an order that specifies a period of thirty days or less, or when a member of the Army National Guard or Air National Guard is called into Federal service under a call that specifies a period of thirty days or less, the time required to perform travel, as prescribed by regulations of the Secretary concerned, from home to first duty station, and from last duty station to home, is considered active duty. When a member of a uniformed service is ordered to active duty under an order that does not specify a period of thirty days or less, or when a member of the Army National Guard or Air National Guard is called into Federal service under a call that does not specify a period of thirty days or less, the time required to perform travel from home to first duty station and from last duty station to home, by the mode of transportation authorized in the orders of the member, is considered active duty.

"(c) Any payments accruing under law to any member of a uniformed service incident to his release from active duty or for his return home incident to release from that duty, may be paid to that member before his departure from his last duty station, whether or not he actually performs the travel involved.

"YEARS OF SERVICE IN GRADE

"SEC. 205. (a) Except as provided in subsections (b)-(d), all periods of service of a member of a uniformed service in a pay grade, whether or not on active duty, shall be credited in determining his years of service in that pay grade. However, for the purposes of this section

"(1) no service which preceded a period of more than three months during which the person concerned was not a member of a uniformed service may be credited;

"(2) a member who is serving on active duty in any grade while holding another grade is considered to be serving only in his active duty pay grade; "(3) a member who, while he is not on active duty, holds a temporary grade that is higher than his reserve grade, is considered to be serving only in that temporary grade;

"(4) an enlisted member, or warrant officer, of the Army National Guard or Air National Guard who is also a reserve commissioned officer is considered to be serving as a commissioned officer only when he is on active duty as a commissioned officer; and

"(5) a member who served in a pay grade before becoming eighteen years of age may be credited with that service under regulations prescribed by the Secretary concerned.

"(b) For the purposes of determining years of service in a pay grade, a member of a uniformed service whose name is on a temporary disability retired list, or any other retired list, of a uniformed service is not considered to be serving in his pay grade when he is not on active duty. However, a member of a uniformed service whose name is on a temporary disability retired list and who is restored to active duty in his uniformed service under section 1211 of title 10, United States Code, is entitled to credit for the years of service in his pay grade while he was on that temporary disability retired list.

"(c) For the purpose of determining years of service in a pay grade, a member of a uniformed service who is

"(1) reduced to a lower pay grade for other than inefficiency or disciplinary reasons;

"(2) reenlisted in a regular component of a uniformed service within three months after release from active duty as an officer of that uniformed service;

"(3) ordered to active duty in a pay grade lower than that of any temporary or permanent grade he holds; or

"(4) discharged from a reserve enlistment for immediate enlistment in a regular component of a uniformed service in a pay grade lower than his reserve grade;

is entitled, if he has served in the higher pay grade for at least one year, to the highest pay of the pay grade to which he is reduced, ordered to active duty, enlisted, or reenlisted, or to the highest pay of any intermediate pay grade to which he may later be promoted. A member who is so reduced, ordered to active duty, enlisted, or reenlisted, and who has not served in the higher pay grade for at least one year, or a member who is reduced to a lower pay grade for inefficiency or for disciplinary reasons, is entitled to credit, in the pay grade to which reduced, ordered to active duty, enlisted, or reenlisted, or in any intermediate pay grade to which he may later be promoted, for his years of service in the higher pay grade in addition to any time previously served in the lower grade. A member who is reduced to a lower pay grade for inefficiency or for disciplinary reasons, and who is later promoted to the pay grade in which he was serving before being reduced, is not entitled to credit, in the pay grade to which promoted, for his previous service in that grade.

"(d) If any of the service of a member of a uniformed service in his current step in his pay grade is determined, under regulations to be prescribed by the Secretary concerned, to be unsatisfactory, he may not be advanced to a higher step within his pay grade until such time as his service in his current step in his pay grade is determined under those regulations to be satisfactory. No service in a pay grade that is determined to be unsatisfactory for the purposes of this subsection may be counted for the purpose of determining years of service in any pay grade.

"(e) For the purposes of this section, service in a pay grade is considered to begin on the date when the appointment or promotion to, or enlistment in, the grade concerned is effective for pay purposes."

By redesignating present section 203 (37 U. S. C. 234) as section 206 and g subsection (b) thereof to read as follows:

In addition to any pay, allowances, or special or incentive pays to which e otherwise entitled, commissioned officers as defined in subsections (a) of this section are entitled to special pay as follows:

(1) Commissioned officers defined in subsection (a):

"(A) $100 a month for each month of active service in the case of commissioned officers in pay grades 0-2, 0-3, and O-4 who have not completed at least two years of active duty in a category covered by subsection (a).

"(B) $200 a month for each month of active service in the case of commissioned officers in pay grades 0-2, 0-3, and 0-4 who have completed at least two years of active duty in a category covered by subsection (a).

"(C) $150 a month for each month of active duty in the case of commissioned officers in pay grade O-5.

"(D) $100 a month for each month of active duty in the case of commissioned officers in pay grades 0-6, 0-7, and O-8.

(2) Commissioned officers defined in subsection (c):

"(A) $100 a month for each month of active duty in the case of commissioned officers in pay grades 0-1, 0-2, 0-3, and 0-4.

"(B) $50 a month for each month of active duty in the case of commissioned officers in pay grade 0-5.

vever, a commissioned officer described in subsection (a) of this section ot entitled to the special pay provided by this section while he is serving à medical or dental intern. The special pay authorized by this subsection y not be included in computing the amount of increase in pay authorized any other provision of this Act or in the computation of retired pay, erance pay, or readjustment payments, authorized under any provision of By redesignating present section 204 (37 U. S. C. 235) as "section 207" ending the tables in subsection (b) thereof to read as follows: TIVE PAY FOR HAZARDOUS DUTY PERFORMED UNDER SECTION 207 (a) (1) AND (2)

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By striking out the words "section 204" in present section 205 (c) (37

. 236 (c)) and inserting the words "section 207" in place thereof. By redesignating present section 205 (37 U. S. C. 236) as "section 208."

(F) By amending present section 206 (37 U. S. C. 237) to read as follows:

"SPECIAL PAY-SEA AND FOREIGN DUTY

"SEC. 209. Under such regulations as the President may prescribe, enlisted members of the uniformed services who are entitled to basic pay are entitled to additional pay at the following monthly rates, while on sea duty or while on duty in any place beyond the continental limits of the United States or in Alaska:

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(G) By striking out the words "section 208" in present section 207 (e) (37 U. S. C. 238 (e)), wherever they appear, and inserting the words "section 211" in place thereof.

(H) By redesignating present section 207 (37 U. S. C. 238) as "section 210". (I) By striking out the words "section 207" in present section 208 (a) (37 U. S. C. 239 (a)) and inserting the words "section 210" in place thereof. (J) By striking out the words "(computed in accordance with the cumulative years of service of the member)" in present section 208 (d) (37 U. S. C. 239 (d)).

(K) By redesignating present section 208 (37 U. S. C. 239) as "section 211". (3) Title III is amended as follows:

(A) Section 302 (f) (37 U. S. C. 252 (f)) is amended by striking out the table therein and inserting the following new table in place thereof:

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1 Service authorized to be credited under section 1495 of title 19, United States Code.

• Considered at all times as without dependents under subsection (a) of this section.'

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(B) Section 302 (h) (37 U. S. C. 252 (h)) is amended by striking out the words "E-6 and E-7" and inserting the words "E-6, E-7, E-8, and E-9” in place thereof.

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