A bill to amend section 1402(a) of title 10, United States Code, to revise the rule for entitlement to retired or retainer pay to reflect later active duty.

Provides that a member of the armed forces who has been entitled to basic pay for a continuous period of at least two years upon release from active duty, shall have his rates of basic pay computed as in effect upon that release from active duty. Provides that, any other member shall have his rates computed under the rates of basic pay under which the member's retired pay or retainer pay was computed when he entered on that active duty, increased by any applicable adjustments in that pay.