To amend title 10, United States Code, to provide for improved treatment of future actuarial gains and losses to the Department of Defense Military Retirement Fund.

Amends provisions relating to the Department of Defense Military Retirement Fund to require the Secretary of Defense to pay into the Fund at the beginning of each fiscal year amounts under the most recent amortization schedule for the amortization of cumulative unfunded liabilities or gains or cumulative actuarial gains or losses to the Fund attributable to military service performed on or after October 1, 1984. Makes such provision effective for payments into the Fund for FY 1996.