A bill to provide an incentive plan for participation in the Ready Reserve, and to authorize payment of retired pay at reduced percentages to persons otherwise eligible at age 50 and for other purposes.

Title I: Incentive Pay for Participating in Ready Reserve - Authorizes a special payment to an enlisted member of a Ready Reserve component who: (1) has completed a total of at least two years of active duty, or a total of at least six years of service, in one or more of the armed services; (2) is accepted for enlistment, reenlistment, or extension of enlistment in a Reserve component, in a pay grade above E-2, for a period of at least three years; and (3) agrees to remain in the Ready Reserve for a corresponding period and to perform such drills or other duty as may be prescribed.

Allots this bonus payment to members as follows: (1) upon enlistment or reenlistment in a reserve component for a period of six years, an immediate payment of $300, and $450 upon completion of each year of that six-year period; and (2) upon completion of each year under any enlistment or reenlistment other than for a six-year period, an amount equal to $100 multiplied by the number representing his cumulative years of service in the Ready Reserve plus $100.

Requires a percentage refund where a member does not complete the first year of service under his enlistment or reenlistment if he has received the $300 amount prescribed above.

Title II: Reduced Retirement Pay At Age Fifty - Entitles a member of the Ready Reserve who is fifty years old or more to retired pay reduced by a specified percentage corresponding to his age. (Adds 37 U.S.C. 313; Amends 10 U.S.C. 1331, 1335).