To amend title 10, United States Code, to provide that enlisted members of the Armed Forces who have completed 18, but less than 20, years of active duty shall be treated in the same manner as officers with respect to retention on active duty until becoming eligible for retired pay.

Requires a regular enlisted member of the armed forces who is selected for involuntary separation, or whose enlistment expires with denial of reenlistment, and who on the date of discharge is within two years of qualifying for retirement from the armed forces or transfer to the Reserve, to be retained on active duty until qualified for such retirement or transfer. Provides similar provisions requiring retention of enlisted members serving on active duty who have been credited with at least 18 but less than 20 years of service computed for retirement purposes, providing alternate periods of retention for such members in order for them to qualify for retirement under applicable Federal provisions.