To amend title 10, United States Code, to provide military reservists who are retained in active status after qualifying for reserve retired pay credit toward computation of retired pay for service performed after so qualifying.

Provides that for purposes of computing retired pay for non-regular military service, a person's days of active service shall include the person's days served in active status after qualifying for retired pay, which shall be credited when the person leaves active status. Makes such provision effective with respect to any person qualifying for retired pay after January 1, 1988.