,,ii  #aai? ,,congress  #b;d ,session   
,s4 #ecfg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #g1 #bjbf,mr4   
,gallego introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,vet]ans' ,affairs  ,a ,,bill  ,to am5d 
title #aj1 ,unit$ ,/ates ,code1 to      
elim9ate ! rec\pm5t ( sep>ation pay1    
special sep>ation b5efits1 & volunt>y   
sep>ation inc5tive paym5ts f memb]s ( ! 
,arm$ ,=ces :o subsequ5tly receive      
disability comp5sation "u laws adm9i/]$ 
by ! ,dep>tm5t ( ,vet]ans ,affairs & to 
impose limitations on ! au?ority ( !    
,secret>y ( ,def5se to rec\p su* pay f  
memb]s :o subsequ5tly receive milit>y   
retir$ or reta9] pay4  #a4 ,%ort title  
,?is ,act may be cit$ z ! ,re/ore       
,vet]ans' ,comp5sation ,act ( #bjbf4    
#b4 ,rec\pm5t ( sep>ation pay1 special  
sep>ation b5efits1 volunt>y sep>ation   
inc5tive1 & volunt>y sep>ation pay &    
b5efits f memb]s ( ! ,arm$ ,=ces  7a7   
,sep>ation pay ^u involunt>y dis*>ge or 
release f active duty & special         

sep>ation b5efits  7#a7 ,elim9ation (   
rec\pm5t f memb]s receiv+ vet]ans       
disability comp5sation ,p>agraph 7#b7 ( 
section #aagd7;h7 ( title #aj1 ,unit$   
,/ates ,code1 is am5d$ to read z foll[s3
  7#b7 7,a7 ,a memb] :o has receiv$     
sep>ation pay "u ?is section1 or        
sev]ance pay or readju/m5t pay "u any   
o!r provision ( law1 bas$ on s]vice 9 ! 
,arm$ ,=ces %all n be depriv$1 by reason
 ( ! receipt ( su* sep>ation pay1       
sev]ance pay1 or readju/m5t pay1 ( any  
disability comp5sation to :i* ! memb] is
 entitl$ "u ! laws adm9i/]$ by !        
,dep>tm5t ( ,vet]ans ,affairs4  7,b7 ,! 
am\nt ( disability comp5sation to :i* a 
memb] may be entitl$ "u ! laws adm9i/]$ 
by ! ,dep>tm5t ( ,vet]ans ,affairs may n
 be r$uc$ on acc\nt ( ! receipt (       
sep>ation pay1 sev]ance pay1 or         
readju/m5t pay4  4  7#b7 ,rec\pm5t f    
memb]s receiv+ retir$ or reta9] pay     
limit$ to net am\nt ( sep>ation pay     
,section #aagd7;h77#a7 ( title #aj1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 

be=e ! p]iod at ! end ! foll[+3 1 less !
 am\nt ( ,f$]al income tax )held f !    
sep>ation pay1 sev]ance pay1 or         
readju/m5t pay 7su* )hold+ be+ at ! flat
 )hold+ rate = ,f$]al income tax )hold+1
 z 9 effect pursuant to regulations     
prescrib$ "u *apt] #bd ( ! ,int]nal     
,rev5ue ,code ( #aihf74  7#c7 ,p]c5tage 
limitations on rec\pm5t f memb]s receiv+
 retir$ or reta9] pay & rec\pm5t process
 ,section #aagd7;h77#a7 ( title #aj1    
,unit$ ,/ates ,code1 z am5d$ by p>agraph
 7#b71 is fur!r am5d$-- 7,a7 by ins]t+  
7,a7 aft] 7#a72  7,b7 by /rik+ %all     
specify1 tak+ into acc\nt ! f9ancial    
ability ( ! memb] to pay & avoid+ !     
imposition ( undue f9ancial h>d%ip on ! 
memb] & memb]'s dep5d5ts1 & ins]t+      
7subject to subp>agraph 7,b77 %all      
specify2 &  7,c7 by add+ at ! end !     
foll[+ new subp>agraphs3  7,b7 ,! am\nt 
d$uct$ "u subp>agraph 7,a7 f a paym5t ( 
retir$ or reta9] pay may n exce$ #be    
p]c5t ( ! am\nt ( ! memb]'s retir$ or   
reta9] pay = t mon? unless ! memb]      

reque/s d$uctions at an accel]at$ rate4 
,! ,secret>y ( ,def5se %all consult ) ! 
memb] reg>d+ ! repaym5t rate to be      
impos$1 tak+ into acc\nt ! f9ancial     
ability ( ! memb] to pay & avoid+ !     
imposition ( an undue h>d%ip on ! memb] 
& ! memb]'s dep5d5ts4  7,c7 ,! d$uction 
( am\nts f ! retir$ or reta9] pay ( a   
memb] "u ?is p>agraph may n comm5ce     
until ! date t is #ij days aft] ! date  
on :i* ! ,secret>y ( ,def5se notifies ! 
memb] ( ! d$uction ( su* am\nts "u ?is  
p>agraph4 ,any notice "u ?is subp>agraph
 %all be design$ to provide cle> &      
compreh5sive in=mation on ! d$uction (  
am\nts "u ?is p>agraph1 includ+         
in=mation on ! det]m9ation ( ! am\nt &  
p]iod ( in/allm5ts "u ?is p>agraph4     
7,d7 ,! ,secret>y ( ,def5se may waive ! 
d$uction ( am\nts f ! retir$ or reta9]  
pay ( a memb] "u ?is p>agraph if !      
,secret>y det]m9es t d$uction ( su*     
am\nts w\ld result 9 a f9ancial h>d%ip =
 ! memb]4  4  7b7 ,con=m+ am5dm5ts  7#a7
 ,volunt>y sep>ation inc5tive ,section  

#aage7;e7 ( title #aj1 ,unit$ ,/ates    
,code1 is am5d$-- 7,a7 9 p>agraph       
7#c77;,a7-- 7i7 by /rik+ ! fir/ s5t5ce &
 ins]t+ ! foll[+ new s5t5ce3 ,subsection
 7h7 ( section #aagd ( ?is title %all   
apply to any memb] :o has receiv$ !     
volunt>y sep>ation inc5tive & :o lat]   
qualifies = retir$ or reta9] pay "u ?is 
title or = disability comp5sation "u !  
laws adm9i/]$ by ! ,dep>tm5t ( ,vet]ans 
,affairs42 &  7ii7 9 ! second s5t5ce1 by
 /rik+ ! d$uction requir$ "u ! prec$+   
s5t5ce & ins]t+ ! d$uction f ! memb]'s  
retir$ or reta9] pay2 &  7,b7 by /rik+  
p>agraph 7#d7 & r$esignat+ p>agraph 7#e7
 z p>agraph 7#d74  7#b7 ,volunt>y       
sep>ation pay & b5efits ,subsection 7h7 
( section #aage;a ( title #aj1 ,unit$   
,/ates ,code1 is am5d$ to read z foll[s3
  7h7 ,coord9ation ,) ,retir$ or ,reta9]
 ,pay & ,disability ,comp5sation  7#a7  
,subsection 7h7 ( section #aagd ( ?is   
title %all apply to any memb] :o        
receives volunt>y sep>ation pay "u ?is  
section & :o lat] qualifies = retir$ or 

reta9] pay "u ?is title or title #ad or 
= disability comp5sation "u ! laws      
adm9i/]$ by ! ,dep>tm5t ( ,vet]ans      
,affairs4  7#b7 ,no d$uction %all be    
made f ! disability comp5sation paid to 
an eligible disabl$ uni=m$ s]vices      
retiree "u section #adac1 or to an      
eligible combat-relat$ disabl$ uni=m$   
s]vices retiree "u section #adac;a ( ?is
 title1 :o is paid volunt>y sep>ation   
pay "u ?is section4  7#c7 ,! requirem5t 
"u ?is subsection to repay volunt>y     
sep>ation pay foll[+ retirem5t f ! ,arm$
 ,=ces does n apply to a memb] :o 0     
eligible to retire at ! "t ! memb]      
appli$ & 0 accept$ = volunt>y sep>ation 
pay & b5efits "u ?is section4  4  7c7   
,effective date & application ( am5dm5ts
 ,! am5dm5ts made by ?is section %all   
take effect on ! fir/ day ( ! fir/ mon? 
beg9n+ on or aft] ! date ( ! enactm5t ( 
?is ,act4 ,9 ! case ( d$uctions to be   
made f ! retir$ or reta9] pay ( memb]s (
 ! uni=m$ s]vices1 ! am5dm5ts %all apply
 to t mon? & subsequ5t mon?s4