Sec. 632. Modernized retirement system for members of the uniformed services

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Section 1409(b) of title 10, United States Code, is amended by adding at the end the following new paragraph: Notwithstanding paragraphs (1), (2), and (3), in the case of a member who first becomes a member of the uniformed services after January 1, 2018, or a member who makes the election described in subparagraph (B)— subparagraph

(A)of paragraph

(1)shall be applied by substituting 2 for ‘2½ ; clause

(i)of paragraph (3)(B) shall be applied by substituting 60 percent for 75 percent ; and subclause

(I)of paragraph (3)(B)(ii) shall be applied by substituting 2 for 2½ . A member of a uniformed service serving on January 1, 2018, may elect to accept the reduced multipliers described in subparagraph

(A)for purposes of calculating the retired pay of the member. A member making the election described in clause

(i)shall— have the retired pay of the member calculated using the reduced multipliers described in subparagraph (A); receive Thrift Savings Plan

(TSP)matching contributions pursuant to section 8440e(e) of title 5 for periods of service between the completion of 2 years of service and the completion of 20 years of service in accordance with paragraph (3)(B) of such section; and be eligible for lump sum payments under section 1415 of this title. Except as provided in subclauses

(II)and (III), a member of a uniformed service may make the election described in clause

(i)during the period that begins on July 1, 2018, and ends on December 31, 2018. The Secretary concerned may extend the election period described in subclause

(I)for a member who experiences a hardship as determined by the Secretary concerned. A member of a uniformed service returning to service after a break in service in which falls the election period specified in subclause

(I)shall make the election described in clause

(i)on the date of the reentry into service of the member. Thrift Savings Plan matching contributions may not be made for a member under this subparagraph for any pay period beginning before the date of the member's election under clause (i). Each Secretary concerned shall prescribe regulations to implement this paragraph. . Section 12739 of such title is amended by adding at the end the following new subsection: In the case of a person who first performs reserve component service after January 1, 2018, after not having performed regular or reserve component service on or before that date, or a person who makes the election described in paragraph (2)— paragraph

(2)of subsection

(a)shall be applied by substituting 2 percent for 2½ percent ; subparagraph

(A)of subsection (c)(2) shall be applied by substituting 60 percent for 75 percent ; and clause

(ii)of subsection (c)(2)(B) shall be applied by substituting 2 percent for 2½ percent . A person performing reserve component service on January 1, 2018, may elect to accept the reduced multipliers described in paragraph

(1)for purposes of calculating the retired pay of the person. A person making the election described in subparagraph

(A)shall— have the retired pay of the person calculated using the reduced multipliers described in paragraph (1): receive Thrift Savings Plan

(ii)and (iii), a person performing reserve component service may make the election described in subparagraph

(A)during the period that begins on July 1, 2018, and ends on December 31, 2018. The Secretary concerned may extend the election period described in clause

(i)for a person who experiences a hardship as determined by the Secretary concerned. A person returning to reserve component service after a break in reserve component service in which falls the election period specified in clause

(i)shall make the election described in subparagraph

(A)on the date of the reentry into service of the person. Thrift Savings Plan matching contributions may not be made for a person under this paragraph for any pay period beginning before the date of the person's election under subparagraph (A). Each Secretary concerned shall prescribe regulations to implement this subsection. . The table in section 1401(a) of title 10, United States Code, is amended— in paragraph

(1)in column 2 of formula number 1, by striking 2½% of years of service credited to him under section 1208 and inserting the retired pay multiplier determined for the member under section 1409 of this title ; in paragraph

(1)in column 2 of formula number 2, by striking 2½% of years of service credited to him under section 1208 and inserting the retired pay multiplier determined for the member under section 1409 of this title ; and in column 2 of each of formula number 4 and formula number 5, by striking section 1409(a) and inserting section 1409 . Section 1401a(b) of such title is amended— by redesignating paragraph

(5)as paragraph (6); and by inserting after paragraph

(4)the following new paragraph (5): Notwithstanding paragraph (3), if a member makes the election described in section 1409(b)(4) of this title, the Secretary shall increase the retired pay of such member in accordance with paragraph (2). . Paragraph

(2)of section 245(a) of the National Oceanic and Atmospheric Administration Commissioned Officer Corps Act of 2002 ( 33 U.S.C. 3045(a) ) is amended to read as follows: the retired pay multiplier determined under section 1409 of such title for the number of years of service that may be credited to the officer under section 1405 of such title as if the officer's service were service as a member of the Armed Forces. . Subsection

(f)of section 354 of title 37, United States Code, is amended— by striking If a and inserting

(1)If a ; and by adding at the end the following new paragraph: If a person who is paid a bonus under this section subsequently makes an election described in section 1409(b)(4) or 12739(f) of title 10, the person shall repay any bonus payments received under this section in the same manner as repayments are made under section 373 of this title. . Such section 354 is further amended by adding at the end the following new subsection: A Secretary concerned may not pay a new bonus under this section after December 31, 2017. Subject to subsection (f)(2), the Secretary concerned may continue to make payments after December 31, 2017, for bonuses that were awarded under this section on or before that date. . Paragraph

(4)of section 211(a) of the Public Health Service Act ( 42 U.S.C. 212 ) is amended— in the matter preceding subparagraph (A), by striking at the rate of 2 ½ per centum of the basic pay of the highest grade held by him as such officer and inserting calculated by multiplying the retired pay base determined under section 1406 of title 10, United States Code, by the retired pay multiplier determined under section 1409 of such title for the numbers of years of service credited to the officer under this paragraph ; and in the matter following subparagraph (B)(iii)— in subparagraph (C), by striking such pay, and and inserting such pay, ; and in subparagraph (D), by striking such basic pay. and inserting such basic pay, and

(E)in the case of any officer who makes the election described in section 1409(b)(4) of title 10, United States Code, subparagraph

(C)shall be applied by substituting . 40 per centum for 50 per centum each place the term appears and subparagraph

(D)shall be applied by substituting 60 per centum for 75 per centum . The amendments made by subsection

(a)shall take effect on the date of the enactment of this Act. Except as provided in subparagraph (B), the amendments made by subsection

(b)shall take effect on January 1, 2018. The amendments made by paragraph

(3)of subsection

(b)shall take effect on the date of the enactment of this Act.

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U.S. Code

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Sec. 632

Modernized retirement system for members of the uniformed services

U.S.C.§ 3045

U.S.C.§ 212

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