The tenth sentence of section 303 (c) (37 U. S. C. 253 (c)) is amended king out the words "section 201 (e)" and inserting the words "section place thereof.

Section 304 (c) (37 U. S. C. 254 (c)) is amended by striking out the or" before the words "as the Commandant of the Coast Guard" and by ng the words ", or as the Surgeon General of the Public Health Service," he words "in lieu of".

Title V is amended as follows:

Section 501 (d) (37 U. S. C. 301 (d)) is amended by striking out the "section 204" wherever they appear and inserting the words "section place thereof.

Section 508 (37 U. S. C. 308) is amended

(i) by striking out the words "basic pay" and inserting the words "base te" in place thereof; and

(ii) by striking out the words "with under two cumulative years' serv

2. The tables in section 1 (c) of the Act of May 19, 1952, chapter 310 t. 79), are amended to read as follows:

3. (a) Notwithstanding section 203 (a) and (b) of the Career CompenAct of 1949, as amended by this Act, and except as provided in sub(d), an enlisted member of a uniformed service in pay grade E-1 through ho was a member of a uniformed service on the effective date of this Act, ho is entitled to basic pay, or to compensation based thereon, is entitled, the three-year period beginning with the effective date of this Act, to computed at the higher of the following rates:

(1) The rate in effect under the Career Compensation Act of 1949 on the y before the effective date of this Act, applied to the member as if it re currently in effect and increased, for a member with more than two mulative years of service, by 6 per centum.

(2) The rate prescribed by the Career Compensation Act of 1949, as ended by this Act.

Notwithstanding sections 201 and 202 of the Career Compensation Act of is amended by this Act, and except as provided in subsection (d), an of a uniformed service who is entitled to basic pay, or to compensation thereon, is entitled, during the three-year period beginning with the effecte of this Act, to have it computed at the rate in effect on the day before ective date of this Act, applied to him as if it were currently in effect. If s a member of a uniformed service on the effective date of this Act and titled on that date to be credited with more than two cumulative years ice, that rate is increased by 6 per centum. If, with respect to any officer 1 by this subsection, that rate (including such an increase, if any) is than the applicable rate prescribed by section 201 (a) and (c) or 202 of reer Compensation Act of 1949, as amended by this Act, the lower rate ding such an increase, if any) is increased in accordance with the follow

ing table, except that the total rate may not be more than the applicable rate prescribed by that Act as so amended:

(c) A member's cumulative years of service for the computation of basic pay under this section (including entitlement to the 6 per centum increase) are limited to those years with which he was entitled to be credited on the day before the effective date of this Act.

(d) If the rate of basic pay under subsection (a) (1) or the first sentence of subsection (b) of a person who was a member of a uniformed service on the effective date of this Act is higher than the applicable rate otherwise prescribed by the Career Compensation Act of 1949, as amended by this Act, the higher rate continues to apply until, because of a change in his pay grade or years of service in pay grade, that rate is no longer higher than the applicable rate prescribed by that Act, as so amended, or until he is reduced in pay grade for inefficiency or disciplinary reasons. If he is reduced in pay grade for other than inefficiency or disciplinary reasons, he is, whenever entitled to basic pay or to compensation based thereon, entitled to have it computed at the higher of the following rates: (1) The rate in effect under the Career Compensation Act of 1949 on the day before the effective date of this Act, applied to him as if it were currently in effect and increased by 6 per centum.

(2) The rate prescribed by the Career Compensation Act of 1949, as amended by this Act. This subsection does not apply to a person who, after the effective date of this Act, ceases to be a member of a uniformed service for a period of more than three months.

(e) If the aggregate of (1) the rate of special pay to which an officer covered by section 203 of the Career Compensation Act of 1949 on the day before the effective date of this Act was then entitled, and (2) his rate of base pay (as increased under subsection (b) is higher than the aggregate of the rates of special pay and basic pay to which he would be entitled under this Act, the former rates continue to apply until the aggregate of those rates is no longer higher than the aggregate of the latter rates.

(f) If, on the day before the effective date of this Act, a member is under competent orders requiring the performance of hazardous duty and the rate of his incentive pay for that duty under the Career Compensation Act of 1949 on that date is higher than that for his pay grade under the Career Compensation Act of 1949, as amended by this Act, he is, whenever entitled to incentive pay under the same orders, entitled to that higher rate based on the cumulative years of service credited to him on the day before the effective date of this Act, until, because of increased years of service in pay grade, the rate of incentive pay for his pay grade under the Career Compensation Act of 1949, as amended by this Act, is higher, or until there is a change in his pay grade.

(g) Subsection (f) applies to

(1) persons who are members of the uniformed services on the effective date of this Act; and

(2) enlisted members of the uniformed services whose enlistments terminated during the period between the date of enactment and the effective date of this Act and who reenlist within three months after that termination. SEC. 4. (a) Notwithstanding any other provision of law except subsection (b) of this section, the changes in rates of basic pay made by this Act do not apply in computing the retired pay, retirement pay, retainer pay, equivalent pay, severance pay, or readjustment payments, authorized under any law, or the 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), of any person who became entitled to that pay or those payments before the effective date of this Act.

(b) Notwithstanding section 1402 of title 10, United States Code, a member of a uniformed service who retired before the effective date of this Act, and who performed a period of continuous active duty of at least one year after being retired, is entitled, upon release from that active duty on or after the effective date of this Act, to recompute his retired pay as follows:

1 Compute at rates applicable to him on day he is released from active duty. Before applying percentage factor, credit a part of a year that is 6 months or more as a whole year, disregard a part of a year that is less than 6 months.

and

(c) Notwithstanding any provision of law except section 1402 of title 10, United States Code, and subsection (d) of this section, the retired pay, retainer pay, severance pay, or readjustment payments, authorized under any law, or the 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), of an officer who becomes entitled to that pay or those payments on or after the effective date of this Act, and before the fourth year after that date, is based on the monthly basic pay to which he was entitled on the day he became entitled to that pay or those payments. (d) In the computation of retired pay, severance pay, or readjustment payments, authorized under any law, or of 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), any part of an officer's pay computed under the second or third sentence of section 3 (b) of this Act that is more than the basic pay for his pay grade and years of service in that pay grade under section 201 (a) of the Career Compensation Act of 1949, as amended by this Act, is considered not to be a part of his active duty pay or monthly basic pay.

(e) Any person retired before, on, or after the effective date of this Act in an enlisted grade, or advanced to a commissioned officer grade on the retired list under the Act of May 7, 1932, chapter 171 (47 Stat. 150), with credit for thirty years of service in the Army, Navy, or Marine Corps, who received double time credit toward retirement for service beyond the continental limits of the United States between 1898 and 1912, is considered to have over thirty years of cumulative service for the purposes of computing retired pay.

SEC. 5. Title 10, United States Code, is amended as follows:

(1) Section 555 (a) is amended by striking out the words "232 (a) of title 37" and inserting the words "202 (a) of the Career Compensation Act of 1949, as amended," in place thereof.

(2) Chapter 71 is amended by adding the following new section at the end thereof:

"§ 1405. Years of service

"(a) For the purposes of section 1401 (formula 4), 1431 (b), 3888 (1), 3927 (b) (1), 3991 (formula B), 6151 (b), 6325, (a) (2) and (b) (2), 6381, (a) (2), 6383 (c) (2), 6390 (b) (2), 6394 (g) (2), 6396 (c) (2), 6398 (b) (2), 6399 (c) (2), 6400 (b) (2), 8888 (1), 8927 (b) (1), or 8991 (formula B) of this title, or section 423 of title 14, United States Code, the years of service of a member of the armed forces are computed by adding

"(1) his years of service (including under regulations prescribed by the Secretary concerned, service before becoming 18 years of age) as a commissioned officer, warrant officer, flight officer, or enlisted member, in—

"(A) the armed forces;

"(B) the National Guard;

"(C) the Commissioned Corps of the Public Health Service;
"(D) the Coast and Geodetic Survey;

"(2) in the case of a commissioned officer in service on June 30, 1922, his years of service

"(A) that were then counted in computing longevity pay; and

"(B) as a contract surgeon serving full time;

"(3) his years of service as a nurse or reserve nurse of the Army Nurse Corps, the Navy Nurse Corps, or the Nurse Corps of the Public Health Service;

"(4) his years of service as an Army field clerk;

"(5) his years of service as a deck officer or junior engineer in the Coast and Geodetic Survey;

"(6) his years of service authorized, under any law in effect on October 1, 1949, to be credited for the purpose of computing longevity pay;

“(7) in the case of an officer of the Medical Corps or Dental Corps of the Army or Navy or an officer of the Air Force designated as a medical or dental officer who became entitled to retired pay after April 30, 1956, except under chapter 67 of this title, four years of service, plus one additional year in the case of such an officer of the Medical Corps, or such a medical officer who has completed one year of medical internship or the equivalent thereof; and

"(8) in the case of an officer in a category named in clause (7) who became entitled to retired pay under chapter 67 of this title after April 30, 1956, and who performs active duty after May 1, 1956, four years of service, plus one additional year in the case of such an officer of the Medical Corps or such a medical officer who has completed one year of medical internship or the equivalent thereof.

For the purpose of this subsection, a part of a year that is six months or more is counted as a whole year, and a part of a year that is less than six months is disregarded.

"(b) The same period of time may not be counted more than once under this section. In addition, service credited under subsection (a) (7) or (8) shall be reduced by the years of service otherwise authorized to be credited under this section which cover any part of the officer's professional education or internship." (3) The analysis of chapter 71 is amended by adding the following new item at the end thereof:

"1405. Years of service."

(4) Formula 4 of section 1401 is amended by striking out the words "in computing basic pay" and inserting the words "under section 1405 of this title” in place thereof.

(5) Section 1431 (b) is amended by striking out the words "for which he is entitled to credit in the computation of his basic pay" and inserting the words "that may be credited to him under section 1405 of this title" in place thereof. (6) Section 3536 (b) is amended by striking out the words ", and is entitled to be credited for pay purposes with all service that may be credited under section 233 of title 37".

(7) Section 3888 (1) is amended by striking out the words "credited to him in computing his basic pay" and inserting the words "that may be credited to him under section 1405 of this title" in place thereof.

(8) Section 3927 (b) (1) is amended by striking out the words "credited to him in computing his basic pay" and inserting the words "that may be credited to him under section 1405 of this title" in place thereof.

(9) Formula B of section 3991 is amended by striking out the words "credited to him in determining basic pay" and inserting the words "credited to him under section 1405 of this title" in place thereof.

(10) Formula C of section 3991 is amended by striking out the words "when he applied for" and inserting the word “of" in place thereof.

3

(11) Formula D of section 3991 is amended by striking out the words "Monthly basic pay of member's retired grade." and inserting the words "Monthly basic pay to which member was entitled on date of retirement." in place thereof.

(12) Section 4385 (c) is amended by striking out the words "(under 4 months)".

(13) Section 5596 (f) is amended by striking out the last sentence thereof. (14) Section 5597 (h) is amended by striking out the last sentence thereof. (15) The following sections are amended by striking out the words "creditable for basic pay" wherever they appear therein and inserting the words "that may be credited to him under section 1405 of this title" in place thereof:

(A) 6151 (b).

(B) 6325 (a) (2) and (b) (2).

(C) 6381 (a) (2).

(D) 6383 (c) (2).

(E) 6390 (b) (2).
(F) 6394 (g) (2).
(G) 6396 (c) (2).
(H) 6398 (b) (2).
(I) 6399 (c) (2).

(J) 6400 (b) (2).

(16) Section 6221 (b) is amended by striking out the words "and is entitled to be credited for pay purposes with all service which may be credited under section 233 of title 37".

(17) Section 6326 (c) (2) is amended by striking out the words "grade in which retired" and inserting the words "pay grade in which he was serving on the date of retirement" in place thereof.

(18) Section 6969 (b) is amended by striking out the second sentence thereof. (19) Section 8888 (1) is amended by striking out the words "credited to him in computing his basic pay" and inserting the words "that may be credited to him under section 1405 of this title" in place thereof.

(20) Section 8927 (b) (1) is amended by striking out the words "credited to him in computing his basic pay" and inserting the words "that may be credited to him under section 1405 of this title" in place thereof.

(21) Formula B of section 8991 is amended by striking out the words "credited to him in determining basic pay" and inserting the words "credited to him under section 1405 of this title" in place thereof.

(22) Formula C of section 8991 is amended by striking out the words "when he applied for" and inserting the word "of" in place thereof.

3

(23) Formula D of section 8991 is amended by striking out the words "Monthly basic pay of member's retired grade." and inserting the words "Monthly basic pay to which member was entitled on date of retirement." in place thereof.

3

(24) Section 9385 (c) is amended by striking out the words "(under 4 months)".

SEC. 6. The amendments made by clauses (13) and (14) of section 5 do not apply to members of the Navy or Marine Corps appointed to commissioned or warrant officer grades under section 5596 or 5597 of title 10, United States Code, before the effective date of this Act.

SEC. 7. Section 423 of title 14, United States Code, is amended to read as follows:

"423. Computation of retired pay

"The retired pay of a grade or rating shall be computed at the rate of 21⁄2 percent of the basic pay to which the officer or enlisted member concerned was entitled at the time of retirement, multiplied by the number of years of service that may be credited to him under section 1405 of title 10, United States Code." SEC. 8. The Act of June 3, 1948, ch. 390, as amended, is further amended as follows:

(1) Section 9 (33 U. S. C. 853h) is amended by striking out the words "activeduty pay with longevity credit" wherever they appear and inserting the words "basic pay" in place thereof.

(2) Section 16 (a) (33 U. S. C. 8530 (a)) is amended

(A) by striking out the words "active-duty pay with longevity credit" wherever they appear and inserting the words "basic pay" in place thereof; and

(B) by striking out the words "for which entitled to credit in the computation of his pay while on active duty" and inserting the words "that may be credited to him under section 1405 of title 10, United States Code" in place thereof.