PUBLIC LAW 103-337—OCT. 5, 1994 108 STAT. 2787 SEC. 633. CLARIFICATION OF CALCULATION OF RETIRED PAY FOR OFFICERS WHO RETIRE IN A GRADE LOWER THAN THE GRADE HELD AT RETIREMENT. (a) PREVENTION OF RETIRED PAY BASED ON GRADE HIGHER THAN RETIRED GRADE.—Section 1401a(f) of title 10, United States Code, is amended— (1) in the first sentence, by inserting "based on the grade in which the member is retired" after "at an earher date"; (2) in the second sentence, by inserting ", except that such computation may not be based on a rate of basic pay for a grade higher than the grade in which the member is retired" before the period at the end; and (3) by striking out the third sentence. (b) EFFECTIVE DATE.—The amendments made by subsection lo use I40ia (a) shall apply with respect to the computation of the retired pay "°*^® of a member of the Armed Forces who retires on or after the date of the enactment of this Act. SEC. 634. WAIVER OF ADMINISTRATIVE TIME-IN-GRADE REQUIRE- 10 USC 1401a MENTS TO PREVENT PAY INVERSIONS IN RETIRED PAY note OF CERTAIN MILITARY RETIREES. (a) AUTHORITY. —The Secretary concerned may, for purposes of the computation under section 1401a(1) of title 10, United States Code, of the retired pay of military retirees described in subsection (b), waive any administrative time-in-grade regulation (as described in subsection (d)) that would otherwise apply to such computation. Any such waiver may be made retroactive, in the case of any such retiree, to the date on which that retiree initially became entitled to retired pay. (b) COVERED RETIREES.— T h is section applies to any military retiree— (1) who initially became entitled to retired pay on or after January 1, 1971, and before the date of the enactment of this Act; (2) whose retired pay, by reason of the provisions of section 1401a(f) of title 10, United States Code (the so-called "Tower amendment"), was initially computed as gin amount greater than would have been the case but for that section; and (3) who, as of the earlier computation date applicable to that retiree— (A) in the case of an individual retired in an enlisted grade, had served in the grade in which the retiree retired for a period that was less than the period prescribed by the applicable administrative time-in-grade requirement described in subsection (d); and (B) in the case of an individual retired in an officer grade— (i) was subject to an administrative time-in-grade requirement described in subsection (d) that established a time-in-grade requirement that was longer than the statutory time-in-grade requirement applicable to that member; and (ii) had served in the grade in which the retiree retired for a period that was less than the period prescribed by such administrative time-in-grade requirement but not less than the statutory time-in- grade requirement applicable to that member.
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