Page:United States Statutes at Large Volume 79.djvu/587

 79 STAT. ]

PUBLIC LAW 89-132-AUG. 21, 1965

547

together with any recommendations lie may have proposing changes in the statutory salary system and other elements of the compensation structure provided members of the uniformed services." (b) The chapter analysis of chapter 19, title 37, f n i t e d States Code, is amended by adding the following new item: ••1008. Presidential recommendations concerning adjustments and changes in pay and allowances."

SEC. 8. Section 308 of title 37, United States Code, is amended by adding the following: " (g) Lender regulations to be prescribed by the Secretary of Defense, or the Secretary of the Treasury with respect to the Coast Guard when it is not operating as a service in the Navy, a member who is designated as havnig a critical military skill and who is entitled to a bonus computed under subsection (a) of this section upon his first reenlistment may be paid an additional amount not more than four times the amount of that bonus. The additional amount shall be paid in equal yearly installments in each year of the reenlistment period. However, in meritorious cases the additional amount may be paid in fewer installments if the Secretary concerned determines it to be in the best interest of the members. An amount paid under this subsection does not count against the limitation prescribed by subsection (c) of this section on the total amount that may be paid under this section.*SEC. 4. Section 310(a) of title 37, L'^'nited States Code, is amended by striking out "$55" and inserting in place thereof "$65". SEC. 5. (a) The retired pay or retainer pay of a member or former member of a uniformed service who is entitled to that pay computed under rates of bjisic pay in effect before the effective date of this Act f^hall be increased, effective that date, by the per centum (adjusted to the nearest one-tenth of 1 per centum) that the Consumer Price Index (all items—United States city average), published by the Bureau of Labor Statistics, for the calendar month immediately preceding the effective date of this Act has increased over the average monthly index for calendar year 1962. (b) Section 1401a(b) of title 10, United States Code, is amended to read as follows: " (b) The Secretary of Defense shall determine the per centum that the Consumer Price Index for each calendar month after the calendar month immediately preceding the effective date of this Act has increased over the base Consumer Price Index (that for the calendar month immediately preceding the effective date of this Act or, if later, that used as the basis for the most recent adjustment of retired pay and retainer pay under this subsection). If the Secretary determines that, for three consecutive calendar months, the index has shown an increase of at least 3 per centum over the base index, the retired pay and retainer pay of members or fonner members of the Armed Forces who became entitled to that pay before the first day of the third calendar month beginning after the expiration of those three months ^hall be increased, effective that day, by the highest per centum of increase in the index during those three months, a,djusted to the nearest one-tenth of 1 per centum." SEC. 6. Column 1 of formula 1 and column 1 of formula 2 of section 1401 of title 10, United States Code, are each amended by striking out ", increased, for members credited with two or less year's of service for basic pay purposes, by 6%". SEC. 7. Notwithstanding any other provision of law, a member of an armed force who was entitled to pay and allowances under any of the following provisions of law on the day before the effective date of this Act shall continue to receive the pay and allowances to which he was entitled on that d a y:

Critical military s k i l l s, additional bonus. 76 Stat. 467,

Hostile fire pay. 77 Stat. 216. Retired pay, increase.

Consumer P r i c e Index, i n c r e a s e s. 77 Stat. 213.

70A Stat. 106; 72 Stat. 129. Continuation provision.

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