Armed Forces General and Flag Officer Act of 1981

Armed Forces General and Flag Officer Act of 1981 - Eliminates the requirement that officers appointed as senior members of the military staff committee of the United Nations be general and flag officers.

Eliminates the statutory grade requirements for Army officers detailed to Vice Chief of Staff, Deputy Chiefs of Staff, Assistant Chiefs of Staff, and Dean of the Academic Board of the United States Military Academy positions.

Eliminates the statutory grade requirements for Navy officers detailed to be the Naval Inspector General, Judge Advocate General, Chief of the Bureau of Medicine and Surgery Dental Division, the Chief of Chaplains and the Chief of Naval Research.

Eliminates the statutory grade requirements for Air Force officers detailed to be the Surgeon General of the Air Force, Dean of the Faculty at the United States Air Force Academy.

Codifies the provision relating to the appointment of the Attending Physician to the United States Congress.

Eliminates the title brigadier general, Corps of Engineers, for the President of the Mississippi River Commission.

Amends the Department of Defense Appropriation Authorization Act, 1978 to extend from October 1, 1981, to September 30, 1982, the effective date for the ceiling on the number of general and flag officers on active duty.

Excludes from grade limitations any retired member of the armed forces recalled to active, full-time duty with the American Battle Monuments Commission.

Protects the grade or rank of any officer currently holding any of the positions affected by this Act.

Directs the Secretary of Defense to submit to the appropriate committees of Congress recommendations for the effective and efficient management of general and flag officers.