Sec. 631. MODERNIZED RETIREMENT SYSTEM FOR MEMBERS OF THE UNIFORMED SERVICES

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## SEC. 631 MODERNIZED RETIREMENT SYSTEM FOR MEMBERS OF THE UNIFORMED SERVICES ###

(a)Regular Service Section 1409(b) of title 10, United States Code, is amended by adding at the end the following new paragraph: > > #### “(4) Modernized Retirement System > > > ##### “(A) Reduced multiplier for full tsp members > > Notwithstanding paragraphs (1), (2), and (3), in the case of a member who first becomes a member of the uniformed services on or after January 1, 2018, or a member who makes the election described in subparagraph

(B)(referred to as a ‘full TSP member’)— > > > ###### “(i) > > paragraph (1)(A) shall be applied by substituting ‘2’ for ‘2½’; > > > ###### “(ii) > > clause

(i)of paragraph (3)(B) shall be applied by substituting ‘60 percent’ for ‘75 percent’; and > > > ###### “(iii) > > clause (ii)(I) of such paragraph shall be applied by substituting ‘2’ for ‘2½’. > > > ##### “(B) Election to participate in modernized retirement system > > Pursuant to subparagraph (C), a member of a uniformed service serving on December 31, 2017, who has served in the uniformed services for fewer than 12 years as of December 31, 2017, may elect, in exchange for the reduced multipliers described in subparagraph

(A)for purposes of calculating the retired pay of the member, to receive Thrift Savings Plan contributions pursuant to section 8440e(e) of title 5. > > > ##### “(C) Election period > > > ###### “(i) In general > > Except as provided in clauses

(ii)and (iii), a member of a uniformed service described in subparagraph

(B)may make the election authorized by that subparagraph only during the period that begins on January 1, 2018, and ends on December 31, 2018. > > > ###### “(ii) Hardship extension > > The Secretary concerned may extend the election period described in clause

(i)for a member who experiences a hardship as determined by the Secretary concerned. > > > ###### “(iii) Effect of break in service > > A member of a uniformed service who returns to service after a break in service that occurs during the election period specified in clause

(i)shall make the election described in subparagraph

(B)within 30 days after the date of the reentry into service of the member. > > > ##### “(D) No retroactive contributions pursuant to election > > Thrift Savings Plan contributions may not be made for a member making an election pursuant to subparagraph

(B)for any period beginning before the date of the member’s election under that subparagraph by reason of the member’s election. > > > ##### “(E) Regulations > > The Secretary concerned shall prescribe regulations to implement this paragraph.” > . ###

(b)Non-regular Service Section 12739 of title 10, United States Code, is amended by adding at the end the following new subsection: > > ### “(f) Modernized Retirement System > > > #### “(1) Reduced multiplier for full tsp members > > Notwithstanding subsection

(a)or (c), in the case of a person who first performs reserve component service on or 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)(referred to as a ‘full TSP member’)— > > > ##### “(A) > > subsection (a)(2) shall be applied by substituting ‘2 percent’ for ‘2½ percent’; > > > ##### “(B) > > subparagraph

(A)of subsection (c)(2) shall be applied by substituting ‘60 percent’ for ‘75 percent’; and > > > ##### “(C) > > subparagraph (B)(ii) of such subsection shall be applied by substituting ‘2 percent’ for ‘2½ percent’. > > > #### “(2) Election to participate in modernized retirement system > > > ##### “(A) In general > > Pursuant to subparagraph (B), a person performing reserve component service on December 31, 2017, who has performed fewer than 12 years of service as of December 31, 2017 (as computed in accordance with section 12733 of this title), may elect, in exchange for the reduced multipliers described in paragraph

(1)for purposes of calculating the retired pay of the person, to receive Thrift Savings Plan contributions pursuant to section 8440e(e) of title 5. > > > ##### “(B) Election period > > > ###### “(i) In general > > Except as provided in clauses

(ii)and (iii), a person described in subparagraph

(A)may make the election described in that subparagraph during the period that begins on January 1, 2018, and ends on December 31, 2018. > > > ###### “(ii) Hardship extension > > 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. > > > ###### “(iii) Persons experiencing break in service > > 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. > > > ##### “(C) No retroactive contributions pursuant to election > > Thrift Savings Plan contributions may not be made for a person making an election pursuant to subparagraph

(A)for any pay period beginning before the date of the person’s election under that subparagraph by reason of the person’s election. > > > #### “(3) Regulations > > The Secretary concerned shall prescribe regulations to implement this subsection.” > . ###

(c)Coordinating Amendments to Other Retirement Authorities ####

(1)Disability, warrant officers, and dopma retired pay #####

(A)Computation of retired pay The table in section 1401(a) of title 10, United States Code, is amended— ######

(i)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”; and ######

(ii)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 ######

(iii)in column 2 of each of formula number 4 and formula number 5, by striking “section 1409(a)” and inserting “section 1409”. #####

(B)Clarification regarding modernized retirement system Section 1401a(b) of title 10, United States Code, is amended— ######

(i)by redesignating paragraph

(5)as paragraph (6); and ######

(ii)by inserting after paragraph

(4)the following new paragraph (5): > > #### “(5) Adjustments for participants in modernized retirement system > > Notwithstanding paragraph (3), if a member or former member participates in the modernized retirement system by reason of section 1409(b)(4) of this title (including pursuant to an election under subparagraph

(B)of that section), the Secretary shall increase the retired pay of such member in accordance with paragraph (2).” > . ####

(2)15-year career status bonus Section 354 of title 37, United States Code, is amended— #####

(A)in subsection (f)— ######

(i)by striking “If a” and inserting “(1) If a”; and ######

(ii)by adding at the end the following new paragraph: > > #### “(2) > > If a person who is paid a bonus under this section subsequently makes an election described in section 1409(b)(4)(B) 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.” > ; and #####

(B)by adding at the end the following new subsection: > > ### “(g) Sunset and Continuation of Payments > > > ####

(1)> > A Secretary concerned may not pay a new bonus under this section after December 31, 2017. > > > #### “(2) > > Subject to subsection (f)(2), the Secretary concerned may continue to make payments for bonuses that were awarded under this section on or before the date specified in paragraph (1).” > . ####

(3)Application to national oceanic and atmospheric administration commissioned corps 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: > > #### “(2) > > 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.” > . ####

(4)Application to public health service Section 211(a)(4) of the Public Health Service Act (42 U.S.C. 212(a)(4)) is amended— #####

(A)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 #####

(B)in the matter following subparagraph (B)(iii)— ######

(i)in subparagraph (C), by striking “such pay, and” and inserting “such pay,”; and ######

(ii)in subparagraph (D), by striking “such basic pay.” and inserting “such basic pay, and

(E)in the case of any officer who participates in the modernized retirement system by reason of section 1409(b) of title 10, United States Code (including pursuant to an election under subparagraph

(B)of that section), subparagraph

(C)shall be applied by substituting ‘40 per centum’ for ‘50 per centum’ each place the term appears.”. ###

(d)Repeal of Reduced Cost-of-living Adjustments for Members Under the Age of 62 **[**[10 U.S.C. 1401a note](/us/usc/t10/s1401a)**]** The following amendments shall not take effect: ####

(1)**[**[10 U.S.C. 1401a](/us/usc/t10/s1401a)**]** The amendments to be made by section 403 of the Bipartisan Budget Act of 2013 (Public Law 113-67; 127 Stat. 1186), as amended by section 10001(a) of the Department of Defense Appropriations Act, 2014 (division C of Public Law 113-76; 128 Stat. 151), section 2 of Public Law 113-82 (128 Stat. 1009), and section 623 of the Carl Levin and Howard P. “Buck”McKeon National Defense Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128 Stat. 3403). ####

(2)**[**[10 U.S.C. 1401a](/us/usc/t10/s1401a)**]** The amendments to be made by section 10001(b) of the Department of Defense Appropriations Act, 2014.

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