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

Revises the rule for recomputation of military retired or retainer pay to reflect later active duty. Stipulates that for a member who has been entitled to basic pay for active duty for a continuous period of at least two years, such pay shall be computed under the rates of basic pay in effect upon release from such active duty. Stipulates that any other member's retired pay or retainer pay is to be computed under those rates in effect when the individual entered active duty, increased by any applicable adjustments in that pay.