A bill to amend title 10, United States Code, to provide for a Department of Defense Military Retirement and Disability Fund, and for other purposes.

Establishes a Department of Defense Military Retirement and Disability Fund to be administered by the Secretary of Defense. Stipulates that such Fund shall be used to make payments of military retirement pay, retainer pay for personnel of the Inactive Reserve Fleet, and payments to survivors of military personnel.

Directs the Secretary of the Treasury to maintain the Fund on the books of the Treasury and to invest such portion of the Fund which is not required to meet current withdrawals in public debt securities.

Directs the President to appoint a Board of Actuaries of the Military Retirement System consisting of three actuaries. Directs the Board to report annually to the Secretary of Defense on the actuarial status of the system and to furnish its advice and opinions on matters referred to it by the Secretary of Defense.

Directs the Secretary to keep such records as may be necessary for making periodic valuations of the system.

Directs the Board to review such valuations and report at least every four years to the President and the Congress on the status of the Fund and recommend such changes as may be necessary.

Stipulates that there shall be paid into the Fund each month, from appropriations of funds used to pay military personnel, percentages of the basic pay of such personnel, without deduction from the pay of such personnel, necessary to fund the currently accruing retirement liability. Transfers to the Fund the unobligated balances of appropriations currently available for military retirement pay, interest on investments of the Fund, and such amounts as may be appropriated for transfer to the Fund.