Uniform Services Retirement Modernization Act

Uniformed Services Retirement Modernization Act - States that, under regulations prescribed by the Secretary of Defense, a member of an Armed Force who is discharged or released from active duty and who has completed at least 5 but less than 20 years of service immediately before that discharge or release is entitled to a readjustment payment if: (1) his discharge or release from active duty is involuntary; (2) he was not accepted for an additional enlistment for which he volunteered; or (3) he was not accepted for an additional tour of active duty for which he volunteered.

States that such a member is entitled to a readjustment payment equal to 5 percent of the product of twelve times the monthly basic pay to which he was entitled at the time of his discharge or release from active duty multiplied by his years of service.

Provides that such provisions do not apply to a member who: (1) is discharged or released from active duty at his request; (2) is released from active duty for training; (3) upon discharge or release from active duty, is immediately eligible for retired or retainer pay based entirely on his military service; or (4) is discharged or released from active duty under conditions which the Secretary concerned determines do not warrant payment of readjustment pay.

States that, under regulations prescribed by the Secretary of Defense, a member of an Armed Force who is discharged or released from active duty, and who has completed at least 5, but less than 20, years of service immediately before such discharge or release, is entitled to deferred retired pay at age 60 or a lump-sum payment in lieu.

Allows a member to defer an election instead of making it at time of release or discharge, and to elect at any time before age 60.

States that, under regulations prescribed by the Secretary of Defense, a member of an Armed Force who is voluntarily discharged or released from active duty, and who has completed immediately before that discharge or release at least 10, but less than 20, years of service is entitled to deferred retired pay computed when he becomes 60 years of age.

Sets forth a computation formula for retired pay with physical disability and retired or retainer pay other than with physical disability.

Allows a person who is qualified for retirement under more than one provision of law to be entitled to retired pay under the provision that is most favorable to him.

Permits a member of an Armed Force who is advanced to a higher grade on the retired list to recompute his monthly retired pay.

Entitles a member of an Armed Force who has been retired other than for physical disability, and who while on active duty incurs a physical disability of at least 30 percent for which he would otherwise be eligible for retired pay, upon his release from active duty, to retired pay.

Entitles a member of an Armed Force who has become entitled to retired or retainer pay, and who thereafter serves on active duty (other than for training), to recompute his montly retired or retainer pay.

Sets forth a method for computing years of service, monthly retired or retainer pay base other than with physical disability, and monthly retired pay base with physical disability.

Allows each officer who voluntarily retires with 30 or 40 years of service to retire in the grade in which he was serving at the time of retirement, unless he is otherwise entitled to a higher retired grade.

Allows each Regular Navy or Regular Marine Corps officer who retires the highest grade, permanent or temporary, held by him on active duty.

Entitles regular female members, if eligible therefor, to readjustment pay and either deferred retired pay or a lump-sum payment.

Sets forth retirement provisions for the Coast Guard, Coast and Geodetic Survey commissioned officers, and Public Health Service officers.

Requires the monthly retired or retainer pay base of a member of a uniformed service who, within the 12-month period after the effective date of this Act, is retired, transferred to the Fleet Reserve or Fleet Marine Corps Reserve, or retired and advanced to a higher grade on the retired list to be computed under this Act.

States that a member or former member of the uniformed services who is retired under any provision of law, or transferred to the Fleet Reserve or Fleet Marine Corps Reserve, on the effective date of this Act, shall have his monthly retired or retainer pay computed on the basis of the rates of basic pay in effect on the day before the effective date of this Act.

Provides that enactment of this Act does not reduce or increase the monthly retired or retainer pay to which a member or former member of a uniformed service was entitled on the effective date of this Act.