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

Revises the method of computing retired or retainer pay for members of the armed forces who later serve on active duty. Stipulates that in the case of an individual who has not been entitled to basic pay for a continuous period of two years such pay shall be increased by any applicable adjustments in such pay due to changes in the Consumer Price Index after the individual initially became entitled to it. (Amends 10 U.S.C. 1402)