A bill to amend title 10, United States Code, to modify certain retirement pay and grade authorities for service performed after eligibility for retirement, and for other purposes.

Authorizes reserve personnel who serve in an active reserve status in the Selected Reserve for at least two years after becoming eligible for active-duty retirement to elect a non-regular retirement for which they are qualified.

Authorizes the Secretary of the military department concerned to reduce the two-year service requirement in certain cases.

Provides for the recomputation of retired pay and, if appropriate, the adjustment of the retired grade of reserve retirees to reflect the successful completion of at least two years of post-retirement service in an active reserve status.