Sec. 674. PRINCIPLES AND PROCEDURE FOR COMMISSION RECOMMENDATIONS

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## SEC. 674 PRINCIPLES AND PROCEDURE FOR COMMISSION RECOMMENDATIONS ###

(a)Context of Commission Review The Commission shall conduct a review of the matters described in section 671, including current military compensation and retirement systems, force management objectives, and changes in life expectancy and the labor force. ###

(b)Development of Commission Recommendations ####

(1)Consistency with presidential principles Subject to paragraph (2), the Commission shall develop recommendations that are consistent with the principles established by the President under subsection

(c)and section 671. ####

(2)Grandfathering of retired pay #####

(A)Conditions In developing its recommendations, the Commission shall comply with the following conditions with regard to the treatment of retired pay for members and retired members of the uniformed services who joined a uniformed service before the date of the enactment of an Act to modernize the military compensation and retirement systems: ######

(i)For members of the uniformed services as of such date, who became members before the enactment of such an Act, the monthly amount of their retired pay may not be less than they would have received under the current military compensation and retirement system, nor may the date at which they are eligible to receive their military retired pay be adjusted to the financial detriment of the member. ######

(ii)For members of the uniformed services retired as of such date, the eligibility for and receipt of their retired pay may not be adjusted pursuant to any change made by the enactment of such an Act. #####

(B)Voluntary election exception Nothing in subparagraph

(A)prevents a member described in such subparagraph from voluntarily electing to be covered under the provisions of an Act to modernize the military compensation and retirement systems. ###

(c)Presidential Principles Not later than five months after the Commission establishment date, the President shall establish and transmit to the Commission and Congress principles for modernizing the military compensation and retirement systems. The principles established by the President shall address the following: ####

(1)Maintaining recruitment and retention of the best military personnel. ####

(2)Modernizing the regular and reserve military compensation and retirement systems. ####

(3)Differentiating between regular and reserve military service. ####

(4)Differentiating between service in the Armed Forces and service in the other uniformed services. ####

(5)Assisting with force management. ####

(6)Ensuring the fiscal sustainability of the military compensation and retirement systems. ####

(7)Compliance with the purpose and scope of the review prescribed in section 671. ###

(d)Secretary of Defense Recommendations ####

(1)Deadline Not later than nine months after the Commission establishment date, the Secretary shall transmit to the Commission the recommendations of the Secretary for modernization of the military compensation and retirement systems. The Secretary shall concurrently transmit the recommendations to Congress. ####

(2)Development of recommendations The Secretary shall develop the recommendations of the Secretary under paragraph (1)— #####

(A)on the basis of the principles established by the President pursuant to subsection (c); #####

(B)in consultation with the Secretary of Homeland Security, with respect to recommendations concerning members of the Coast Guard; #####

(C)in consultation with the Secretary of Health and Human Services, with respect to recommendations concerning members of the Public Health Service; #####

(D)in consultation with the Secretary of Commerce, with respect to recommendations concerning members of the National Oceanic and Atmospheric Administration; and #####

(E)in consultation with the Director of the Office of Management and Budget. ####

(3)Justification The Secretary shall include with the recommendations under paragraph

(1)the justification of the Secretary for each recommendation. ####

(4)Availability of information The Secretary shall make available to the Commission and to Congress the information used by the Secretary to prepare the recommendations of the Secretary under paragraph (1). ###

(e)Commission Hearings on Recommendations of Secretary After receiving from the Secretary the recommendations of the Secretary for modernization of the military compensation and retirement systems under subsection (d), the Commission shall conduct public hearings on the recommendations. ###

(f)Commission Report and Recommendations ####

(1)Report Not later than 24 months after the Commission establishment date, the Commission shall transmit to the President a report containing the findings and conclusions of the Commission, together with the recommendations of the Commission for the modernization of the military compensation and retirement systems. The Commission shall include in the report legislative language and recommendations for administrative actions to implement the recommendations of the Commission. The findings and conclusions in the report shall be based on the review and analysis by the Commission of the recommendations made by the Secretary under subsection (d). ####

(2)Requirement for approval The recommendations of the Commission must be approved by at least five members of the Commission before the recommendations may be transmitted to the President under paragraph (1). ####

(3)Procedures for changing recommendations of secretary The Commission may make a change described in paragraph

(4)in the recommendations made by the Secretary only if the Commission— #####

(A)determines that the change is consistent with the principles established by the President under subsection (c); #####

(B)publishes a notice of the proposed change not less than 45 days before transmitting its recommendations to the President pursuant to paragraph (1); and #####

(C)conducts a public hearing on the proposed change. ####

(4)Covered changes Paragraph

(3)applies to a change by the Commission in the recommendations of the Secretary that would— #####

(A)add a new recommendation; #####

(B)delete a recommendation; or #####

(C)substantially change a recommendation. ####

(5)Explanation and justification for changes The Commission shall explain and justify in its report submitted to the President under paragraph

(1)any recommendation made by the Commission that is different from the recommendations made by the Secretary under subsection (d). ####

(6)Transmittal to congress The Commission shall transmit a copy of its report to Congress, and shall publish a copy of that report on an Internet website available to the public, on the same date on which it transmits its report to the President under paragraph (1).