Military Retirement Reform Act of 1986

Summary

Military Retirement Reform Act of 1986 - Title I: Program Changes - Amends Federal law relating to the computation of retired pay for members of the armed forces to provide for the retired pay multiplier for regular-service nondisability retirement (a percentage multiplied by the number of years of service). Reduces such percentage for members with less than 30 years of service. Requires the use of the retired pay base in computing the retired pay or retainer pay of a member. Defines the retired pay base for members who: (1) retire due to physical disability; (2) retire from non-regular service (reserve duty); (3) retire as warrant officers; (4) are involuntarily retired due to years of service or age; (5) retire, but whose retired pay must be recomputed because of later additional active duty; and (6) voluntarily retire from the Army, Navy, Marine Corps, Air Force, and Coast Guard. Defines the retired pay base for commissioned officers of the National Oceanic and Atmospheric Administration (NOAA) and of the Public Health Service. (States that the retired pay base in all such cases is either: (1) the monthly basic pay of the member upon retiring; or (2) the high-period average of such member's pay before retirement. Defines "high-period average".) Outlines special rules for the determination of the retired pay base for: (1) the Chairman of the Joint Chiefs of Staff or officers who served as chief of their respective military department; and (2) Senior enlisted members of the armed forces. Outlines special rules for the determination of retired base pay for disability retirees and "new-retirement members" (i.e., those members first joining the service after a specified date). Outlines certain rules of construction for purposes of the computation of retired pay. Title II: Computation of Retired Pay - Revises other Federal provisions concerning the computation of retired pay to conform with retired pay base changes made under this Act. Directs that a person be paid under the retired pay formula most favorable to such person. Provides a formula to determine the retired pay of a person whose pay must be recomputed due to post-retirement active duty. Sets forth a formula for the computation of the initial monthly retirement pay for members of each department of the armed forces and the Coast Guard. Provides general rules for the computation of retired pay for each such department, including: (1) use of the most favorable formula for each retired member; and (2) rounding out monthly retirment pay to the next lowest dollar. Allows an additional ten percent of such computed retired pay for members of the Army, Air Force, and Coast Guard who have been credited with extraordinary heroism by the Secretary of their department. Provides for the recomputation of retired pay for enlisted members and warrant officers of the Army, Navy, Marine Corps, and Air Force who are advanced on the retired list due to post-retirement temporary appointments or reserve duty. Provides a retired pay computation for members of the Coast Guard. Prohibits the retired pay of a member from exceeding: (1) 75 percent of the sums of active duty pay and all permanent additions to such pay; or (2) the retired pay base determined under this Act. Amends the Coast and Geodetic Commissioned Officers Act of 1948 and the Public Health Service Act, respectively, to provide for the computation of retired pay for a commissioned officer on the retired list of NOAA or of the Public Health Service, who first became a member either before or after the date of enactment of this Act. Prohibits the retired pay so computed for such NOAA officers from exceeding 75 percent of the retired pay base. Title III: Miscellaneous Provisions - Requires membership in a reserve component of the armed forces for receipt of non-regular-service retired pay for members who complete the years-of-service required for such pay on or after the date of enactment of this Act. Outlines provisions which provide for the entitlement to retainer pay for enlisted members who transfer to the Fleet Reserve or the Fleet Marine Corps Reserve after the completion or near-completion of a full term of active duty. Repeals Federal law which prohibits the payment of such retired pay or retainer pay from out of the Department of Defense Military Retirement Fund. Terminates the six-month rounding rule, which gives credit for a full six months of service (for purposes of the determination of retired pay) even though a part of such period is not actually served. Provides as an exception to the termination of such rule those members applying for retirement or transfer before January 1, 1982, who take certain specified action. Repeals Federal law prohibiting payments to such members, out of the Department of Defense Military Retirement Fund, who applied for retirement or fleet transfer before such date. Repeals Federal law which limits during FY 1986 the amounts available to be obligated for basic pay and payments into the Department of Defense Military Retirement Fund.

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Documents

6 official files

• Public Law (PDF)

  Public Law · EN · 2 July 1986

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• Conference report filed in House

  summary · EN · 25 June 1986

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• Passed Senate amended

  summary · EN · 15 May 1986

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• Passed House amended

  summary · EN · 22 April 1986

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• Reported to House with amendment(s)

  summary · EN · 8 April 1986

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• Introduced in House

  summary · EN · 17 March 1986

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