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BASIC PAY AND ALLOWANCES OF CONTRACT SURGEONS

SEC. 3. (a) Section 201(b) of title 37, United States Code, is amended by striking out the words "O-2 with two or less" and inserting in place thereof the words "O-3 with over four, but not more than six,”.

(b) Section 421 (a) of title 37, United States Code, is amended by striking out the words "O-2 with less than two" and inserting in place thereof the words "0-3 with over four, but not more than six,".

RETIRED PAY AND RETAINER PAY

SEC. 4. (a) Except as provided in section 1402 of title 10, United States Code, the changes made by this Act in the rates of basic pay of members of the uniformed services do not increase the retired pay or retainer pay to which a member or former member of the uniformed services was entitled on the day before the effective date of this Act.

(b) A member or former member of a uniformed service who, in accordance with section 511 of the Career Compensation Act of 1949 (63 Stat. 829), is entitled to retired pay or retainer pay computed by "method" (a) of that section using rates of basic pay that were in effect before October 1, 1949, is entitled(1) to have that pay recomputed by "method" (b) of that section using the rates of basic pay that were in effect under that Act on the day before the effective date of this Act; or

(2) to continue to have that pay computed by "method" (a) using rates of basic pay that were in effect before October 1, 1949, plus any applicable percentage increases;

whichever pay is the greater.

(c) A member or former member of a uniformed service who is entitled to retired pay or retainer pay computed under the rates of basic pay that were in effect under the Career Compensation Act of 1949 before June 1, 1958, is entitled

(1) to have that pay recomputed under the rates of basic pay that were in effect under that Act on the day before the effective date of this Act; or (2) to continue to have that pay computed under the rates of basic pay that were in effect under that Act before June 1, 1958, plus any applicable percentage increases;

whichever pay is the greater.

(d) A member or former member of a uniformed service who was entitled to retired pay on the day before the effective date of this Act and who served as Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or Commandant of the Marine Corps is entitled

(1) to have his retired pay recomputed under the formula for computing retired pay applicable to him—

(A) when he retired; or

(B) if he served on active duty after he retired and his retired pay was recomputed by reason of that service, when his retired pay was so recomputed;

using as his rate of basic pay the rate of basic pay prescribed for officers serving on active duty in those positions on June 1, 1958, by footnote 1 to the table for commissioned officers in section 201 (a) of the Career Compensation Act of 1949, as amended (72 Stat. 122); or

(2) to continue to receive the retired pay to which he was entitled on the day before the effective date of this Act;

whichever pay is the greater.

(e) A member or former member of a uniformed service who was entitled to retired pay or retainer pay on the day before the effective date of this Act is entitled to an increase of 5 percent in

or

(1) the retired pay or retainer pay to which he was entitled on that day;

(2) the pay to which he is entitled under subsection (b), (c), or (d) of this section, in the case of a member or former member who is entitled to have the retired pay or retainer pay to which he was entitled on that day recomputed under that subsection.

(f) 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 day:

(1) The Act of March 23, 1946, chapter 112 (60 Stat. 59).
(2) The Act of June 26, 1948, chapter 677 (62 Stat. 1052).

(3) The Act of September 18, 1950, chapter 952 (64 Stat. A224). (g) Chapter 71 of title 10, United States Code, is amended

(1) by adding the following new section after section 1401:

"S 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index

"(a) Unless otherwise specifically provided by law, the retired pay or retainer pay of a member or former member of an armed force shall be computed at the rate of basic pay applicable to him when he was retired, was granted retired pay, or became entitled to retainer pay, as the case may be.

"(b) In January of each calendar year after 1963, the Secretary of Defense shall determine the percent that the annual average of the Consumer Price Index (all items United States city average) published by the Bureau of Labor Statistics for the preceding calendar year has increased over that for 1962 or, if later, for the calendar year preceding that in which the most recent adjustment in retired pay and retainer pay has been made under this subsection. If the Secretary determines the percent of that increase to be 3 or more, the retired pay or retainer pay of a member or former member of an armed force who became entitled to that pay before January 2 of the year in which the Secretary makes that determination shall, as of April 1 of that year, be increased by that percent, adjusted to the nearest one-tenth of 1 percent.”; and

(2) by inserting the following new item in the analysis:

"1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index."

(h) Title 10, United States Code, is amended as follows:

(1) Section 1401 is amended by striking out the words ", and adjust to reflect later changes in applicable permanent rates" in footnote 1 to the table;

(2) Sections 3991 and 8991 are each amended

(A) by amending column 1 of formula A in the table to read as follows:

"Monthly basic pay of member's retired grade.""; and

(B) by amending footnote 2 to the table to read as follows:

"2 Compute at rates applicable on date of retirement."

(3) Chapter 561 is amended by repealing section 6149 and striking out the following item in the analysis:

"6149. Retired pay: computed on basis of rates of pay for officers on the active list."

(4) Sections 6151 (b), 6323 (e), 6325 (a) (2) and (b)(2), 6326(c) (2), 6381(a)(2), 6383 (c) (2), 6390 (b) (2), and 6394 (h) are each amended by striking out the words "to which he would be entitled if serving on active duty in" and inserting in place therof the word "of".

(5) Section 6327 (b) is amended by striking out the words "to which he would be entitled if on active duty" and inserting in place thereof the words "of the grade in which retired".

(6) Sections 6396(c)(2), 6398(b)(2), 6399(c)(2), and 6400(b) (2) are each amended by striking out the words "to which she would be entitled if serving on active duty in" and inserting in place thereof the word "of". (i) A member or former member of a uniformed service is not entitled to an increase in his retired pay or retainer pay because of the enactment of this Act for any period before the effective date of this Act.

(j) Section 3(b) of the Act of August 10, 1956, ch. 1041 (33 U.S.C. 857a (b)), and section 221 (b) of the Public Health Service Act (42 U.S.C. 213a (b)) are each amended by striking out the words "or "the Secretary concerned'" and inserting in place thereof the words ", "the Secretary concerned', or 'the Secretary of Defense' ".

(k) Section 1402(a) of title 10, United States Code, is amended by inserting the words "at any time for a continuous period of at least one year" immediately after the words "serves on active duty" in the first sentence and by striking out the words "on the basis of any period of active duty that was of less than six consecutive months' duration or" in the second sentence.

SUBMARINE PAY FOR MEMBERS TRAINING FOR DUTY ON NUCLEAR-POWERED SUBMARINES

SEC. 5. Section 301(a)(2) of title 37, United States Code, is amended to read as follows:

"(2) as determined by the Secretary concerned, on a submarine (including, in the case of nuclear-powered submarines, periods of training and rehabilitation after assignment thereto), or, in the case of personnel qualified in submarines, as a prospective crewmember of a submarine being constructed, and during periods of instruction to prepare for assignment to a submarine of advanced design or a position of increased responsibility on a submarine;".

INCENTIVE PAY FOR DUTY INSIDE A HIGH- OR LOW-PRESSURE CHAMBER

SEC. 6. Section 301 (a) (9) of title 37, United States Code, is amended to read as follows:

"(9) inside a high- or low-pressure chamber;".

MULTIPLE PAYMENTS OF INCENTIVE PAY

SEC. 7. Section 301 (e) of title 37, United States Code, is amended by striking out the words "only one payment" and inserting in place thereof the words "not more than two payments".

REPEAL OF AUTHORITY FOR RESPONSIBILITY PAY

SEC. 8. Chapter 5 of title 37, United States Code, is amended by repealing section 306 and striking out the following item in the analysis:

"306. Special pay: officers holding positions of unusual responsibility and of critical nature.

INCREASE IN BASIC ALLOWANCE FOR SUBSISTENCE

SEC. 9. Section 402 of title 37, United States Code, is amended as follows: (1) Subsection (b) is amended by striking out the words basis," and the fourth sentence.

(2) Subsection (d) is amended to read as follows:

on a daily

"(d) The basic allowance for subsistence for members of the uniformed services is as follows:

(1) Officers__

$51.00 a month.

(2) Enlisted members when rations in kind are not available $97. 50 a month. and their duty assignment requires them to incur subsistence expenses substantially in excess of those incurred by members covered by clause (3).

(3) Enlisted member on leave, when permission to mess sepa- $37. 50 a month. rately is granted, or when rations in kind are not avail

able and the members are not otherwise qualified under
clause (2).

(4) Enlisted members when assigned to duty under emergency conditions where no messing facilities of the United States are available, and they are required to incur subsistence expenses substantially in excess of those incurred by members covered by clause (2).

FAMILY SEPARATION ALLOWANCE

Not more than $129.30 a month."

S5c. 10. Chapter 7 of title 37, United States Code, is amended as follows: (1) The following new section is inserted after section 426:

"8 427. Family separation allowance

"(a) In addition to any allowance or per diem to which he otherwise may be entitled under this title, a member of a uniformed service with dependents who is on permanent duty outside of the United States, or in Alaska, is entitled to a monthly allowance equal to the basic allowance for quarters payable to a member without dependents in the same pay grade if—

"(1) the movement of his dependents to his permanent station or a place near that station is not authorized at the expense of the United States under section 406 of this title and his dependents do not reside at or near that station; and

“(2) quarters of the United States or a housing facility under the jurisdiction of a uniformed service are not available for assignment to him. "(b) Except in time of war or of national emergency hereafter declared by Congress, and in addition to any allowance or per diem to which he otherwise may be entitled under this title, including subsection (a) of this section, a member of a uniformed service who is entitled to a basic allowance for quarters as a member with dependents under section 403 of this title is entitled to a monthly allowance equal to $30 or one-third of the basic allowance for quarters payable to a member without dependents in the same pay grade, whichever amount is the greater, if

"(1) the movement of his dependents to his permanent station or a place near that station is not authorized at the expense of the United States under section 406 of this title and his dependents do not reside at or near that station;

"(2) he is on duty on board a ship away from the home port of the ship for a continuous period of more than 30 days; or

"(3) he is on temporary duty away from his permanent station for a continuous period of more than 30 days and his dependents do not reside at or near his temporary duty station."

(2) The analysis is amended by inserting the following item:

"427. Family separation allowance."

FOREIGN DUTY PAY

SEC. 11. (a) Section 305 of title 37, United States Code, is amended by striking out the words "or Hawaii" in subsection (a) and the word "Hawaii," wherever it appears in subsection (b).

(b) Notwithstanding subsection (a) an enlisted member who, on the day before the effective date of this Act, is permanently assigned to duty in Hawaii, shall, during the remaining period of that assignment, be paid the basic pay to which he was entitled on that date plus special pay under section 305 of title 37, United States Code, whenever qualified thereunder, if the total of that basic pay and that special pay is more than the basic pay to which he would otherwise be entitled during that period under section 2 of this Act.

SAVINGS PROVISIONS

SEC. 12. (a) Any member of the uniformed services who becomes entitled to retired or retainer pay during calendar year 1963 but prior to the effective date of this Act, may compute his retirement or retainer pay on or after the effective date of this Act under the rates estabilshed by section 2 of this Act unless entitled to a higher rate under some other provision of law.

(b) The enactment of this Act does not reduce the rate of dependency and indemnity compensation under section 411 of title 38, United States Code, that any person was receiving on the day before the effective date of this Act or which thereafter becomes payable for that day by reason of a subsequent determination.

EFFECTIVE DATE

SEC. 13. This Act becomes effective on October 1, 1963 or on the first day of the first month after enactment, whichever is later.

SPECIAL PAY FOR DUTY SUBJECT TO HOSTILE FIRE

SEC. 14. (a) Chapter 5 of title 37, United States Code, is amended as follows: (1) The following new section is added after section 309:

"S310. Special pay; duty subject to hostile fire

"(a) Except in time of war declared by Congress, and under regulations prescribed by the Secretary of Defense, a member of a uniformed service may be paid special pay at the rate of $55 a month for any month in which he was. entitled to basic pay and in which he

"(1) was subject to hostile fire or explosion of hostile mines;

“(2) was on duty in an area in which he was in imminent danger of being exposed to hostile fire or explosion of hostile mines and in which, during the period he was on duty in that area, other members of the uniformed services were subject to hostile fire or explosion of hostile mines; or "(3) was killed, injured, or wounded by hostile fire, explosion of a hostile mine, or any other hostile action.

A member covered by clause (3) who is hospitalized for the treatment of his injury or wound may be paid special pay under this section for not more than three additional months during which he is so hospitalized.

"(b) A member may not be paid more than one special pay under this section for any month. A member may be paid special pay under this section in addition to any other pay and allowances to which he may be entitled.

"(c) Any determination of fact that is made in administering this section is conclusive. Such a determination may not be reviewed by any other officer or agency of the United States unless there has been fraud or gross negligence. However, the determination may be changed on the basis of new evidence or for other good cause.

"(d) The Secretary of Defense shall report to Congress by March 1 of each year on the administration of this section during the preceding calendar year. "(e) This section shall be effective from January 1, 1961."

(2) The following new item is inserted in the analysis:

"310. Special pay: duty subject to hostile fire."

(b) The Combat Duty Pay Act of 1952 (50 App. U.S.C. 2351 et seq.) is repealed. Passed the House of Representatives May 8, 1963. Attest:

RALPH R. ROBERTS, Clerk.

Senator CANNON. On behalf of the subcommittee, the Chair would like to welcome the witnesses from the Department of Defense and the various interested organizations. Before receiving testimony, the Chair would like to comment on several aspects of the legislation.

First, the subcommittee recognizes that there has been no adjustment in military pay since 1958. It is generally agreed that some form of increased compensation is now in order. It should be emphasized that the subcommittee at this point has reached no conclusions as to the nature and extent of the increases necessary for the various grades. I am confident that the testimony and the points of view to be expressed by the executive branch and the interested organizations will be most helpful to the subcomittee in recommending a sound and proper military pay bill.

MAJOR FEATURES OF THE BILL

Second, for the purpose of the record, the Chair would like to point out certain significant features of the House bill.

(a) For personnel with under 2 years of service no basic pay increases are provided.

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