Page:United States Statutes at Large Volume 99 Part 1.djvu/682

 99 STAT. 660

Report.

PUBLIC LAW 99-145—NOV. 8, 1985 (2)(A) Each of the sets of changes to be proposed in the report under paragraph (1) shall include changes which, if enacted, would result in reductions in the amount required to be paid by the Secretary of Defense into the Department of Defense Military Retirement Fund pursuant to section 1466(a) of title 10, United States Code, during fiscal year 1986 in a total amount that would enable the Department of Defense to remain within the limits on obligations for basic pay and payments into such Fund prescribed by section 666 solely through such reductions. (B) One of the sets of changes to be proposed in such report shall consist only of changes in the military retirement system other than changes in the procedure for periodic cost-of-living adjustments in retired or retainer pay which, if enacted, would result in the required reductions. (3) Structural changes in the military retirement system to be proposed by the Secretary of Defense in either set of changes proposed in the report under paragraph (1)— (A) should apply only to individuals who initially become members of the Armed Forces after the effective date of such changes; and (B) should, to the maximum extent possible and consistent with military requirements, encourage members who are eligible for retirement to remain on active duty beyond 20 years of service. (4) At the same time the Secretary of Defense submits the report required by paragraph (1), the Secretary shall submit separate reports on the following: (A) The anticipated effects that the changes proposed in the report under paragraph (1) would have on recruiting and retention in the Armed Forces. (B) Proposals for additional changes in other elements of the military compensation system or in other military personnel programs, including changes in promotion and retention policies. (C) A description of the changes in military retirement, compensation, or personnel programs that would be necessary if the reductions resulting from the funding limitations set forth in section 666 were $1,800,000,000, $2,900,000,000, $3,600,000,000, $4,000,000,000, or $5,400,000,000, as well as an evaluation of the effects such changes would have on recruiting and retention in the Armed Forces. (D) A plan that could be used to implement over a period of four or more years the changes proposed in the report under paragraph (1). (b) SPECIFICATION OF ACTUARIAL METHODS AND ASSUMPTIONS FOR

FY86 RETIREMENT LEGISLATION.—In determining the cost, or the amount to be saved, as the result of the enactment of any legislative proposal that would make changes in the military retirement system effective during fiscal year 1985 or 1986, the actuarial methods and assumptions used shall be the same as those approved by the Board of Actuaries (in accordance with section 1465(d) of title 10, United States Code) for use in calculating the military retirement accrual percentage for the President's budget for fiscal year 1986. (c) RECALCULATION OF ACCRUAL PERCENTAGE UPON CHANGE IN

BENEFITS.—(1) If a significant change in the military retirement system is enacted into law that takes effect during fiscal year 1985 or 1986, the accrual percentage shall be recalculated taking into

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