A bill to amend title 10 of the United States Code in order to make more equitable the manner in which deductions for readjustment pay are made from retired pay.

Provides that if a member of the Armed Forces who receives a readjustment payment after June 28, 1962, qualifies for retired pay under provisions of title 10 or title 14 that authorizes his retirement upon completion of twenty years of active service, an amount equal to 75 percent of that payment, without interest, shall be deducted from his retired pay; but any such deduction from his retired pay for any month may not exceed an amount equal to 75 percent of such pay for that month less the amount of any reduction from such pay for that month which is required under present law.