Uniformed Services Nondisability Retired Pay Reform Act

Uniformed Services Nondisability Retired Pay Reform Act - Title I: Computation of Retired Pay of Members of Uniformed Services - Sets forth an alternative formula which members of the Armed Forces may use in computing retirement pay. Makes such new formula the basis for determining the retired pay for members of the Public Health Service who are involuntarily separated from the Service and for members of the Coast Guard and National Oceanic and Atmospheric Administration. Allows individuals under such formula to voluntarily resign with a minimum of five years active service and receive such retired pay.

Revises the computation of retirement pay for the uniformed services to base such pay on: (1) "regular compensation" which includes basic pay, quarters and substinence allowances, and the tax benefits derived from excluding such allowances from gross income; and (2) "average regular compensation" which is the largest monthly rate resulting from averaging a member's rate of regular compensation in effect over any three periods of 12 months of creditable service.

Requires members of the uniformed services who are involuntarily separated from the service and use the formula set forth in this Act to compute retirement pay and who receive earned income while receiving such pay to file an annual declaration of earned income with the Secretary concerned. Reduces such retired pay by one-half of the amount of earned income.

Revises the term "years of service" to include any fraction of a year of service for purposes of computing retirement pay.

Title II: Entitlement of Members of the Uniformed Services to Retired Pay - Makes members of the uniformed services who voluntarily retire eligible to receive retirement pay at: (1) age 62 if such member retired with at least five years of service but less than 20; (2) at age 60 with at least 20 years of service but less than 30; and (3) at age 55 with at least 30 years of service. Makes members who are involuntarily retired eligible to receive retired pay immediately upon retirement.

Title III: Miscellaneous - Bases any upward adjustment in retired retainer or retirement pay for members of the uniformed services or the Central Intelligence Agency upon increases in old-age and survivors insurance benefits or general benefit increases under the Social Security Act rather than upon increases in the Consumer Price Index.

Requires individuals who are eligible to receive retirement pay from the Armed Forces to make an election to apply any years of creditable civilian service such individuals may have to either: (1) the computation of such retirement pay; or (2) the computation of any other annuity, pension, or old-age benefit to which such individuals may be entitled under any other provision of law (presently such civilian service may be used in computing both).

Eliminates the severance pay presently payable to certain members of the uniformed services.