Uniform Services Retirement Modernization Act

Uniformed Services Retirement Modernization Act - States thatu, 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 five but less than twenty 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 five 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 shall not apply to a member who: (1) is discharged or released from active duty at his request; (2) is released from active duty for purposes of training; (3) upon such 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 five, but less than twenty, years of service immediately prior to such discharge or release from active duty, is entitled to deferred retired pay at age sixty or a lump-sum payment in lieu thereof.

Permits a member of an Armed Force to defer an election under this Act, and to instead elect at any time prior to reaching age sixty. Stipulates 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 prior to such discharge or release from active duty at least ten, but less than twenty, years of service is entitled to deferred retired pay computed when he becomes sixty years of age.

Permits a person who is qualified for retirement under more than one provision of law to be entitled to retired pay under that provision which is most favorable to him. Allows a member of an Armed Force who is advanced to a higher grade on the retired list to recompute his monthly retired pay.

Provides that 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 thirty percent for which he would have otherwise been eligible for retired pay, shall be entitled to such retired pay upon his release from active duty.

Sets forth a schedule for computing years of service, monthly retired or retainer pay base, and monthly retired pay base with physical disability. Sets forth retirement provisions for the Coast Guard, Coast and Geodetic Survey commissioned officers, and Public Health Service officers.