article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Armed Forces Education Benefits Improvement Act''. SEC. 2. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY GI BILL FOR ACTIVE DUTY MEMBERS. (a) In General.--Section 3015 of title 38, United States Code, is amended-- (1) in subsection (a), by amending paragraph (1) to read as follows: ``(1) for an approved program of education pursued on a full-time basis-- ``(A) $1,584 per month for months during fiscal year 2005; and ``(B) for months during fiscal year 2006 and each subsequent fiscal year, the monthly amount under this paragraph for the previous fiscal year multiplied by the percentage increase calculated under subsection (h); or''; (2) in subsection (b), by amending paragraph (1) to read as follows: ``(1) for an approved program of education pursued on a full-time basis-- ``(A) $1,267 per month for months during fiscal year 2005; and ``(B) for months during fiscal year 2006 and each subsequent fiscal year, the monthly amount under this paragraph for the previous fiscal year multiplied by the percentage increase calculated under subsection (h); or''; and (3) in subsection (h)(1), by striking ``all items'' and inserting ``college tuition and fees''. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the first day of the first month beginning after the date of enactment of this Act. SEC. 3. ANALYSIS OF IMPACT OF MONTGOMERY GI BILL EDUCATIONAL BENEFITS. (a) Findings.--Congress finds that-- (1) the enhanced educational benefits provided under the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 are an important step in ensuring that members of the Selected Reserve are thanked for their increasing role in the modern warfare; and (2) when these members return from extended tours in Iraq, Afghanistan, and other places, they should be provided with immediate access to these enhanced educational benefits. (b) Cooperation.--The Secretary of Defense shall work expeditiously with the Secretary of Veterans Affairs to ensure that members of the Selected Reserve receive the educational benefits referred to in subsection (a) in a timely manner. (c) Studies.-- (1) Secretary of defense.--The Secretary of Defense shall conduct a study analyzing the effect of all Montgomery GI bill educational benefits on recruitment and retention during the 12-month period beginning on the date on which the enhanced benefits referred to in subsection (a) become available. (2) Secretary of veterans affairs.--The Secretary of Veterans Affairs shall conduct a study analyzing the effect of all Montgomery GI bill educational benefits on the readjustment of veterans eligible for educational benefits under section 3015 of title 38, United States Code, and chapters 1606 and 1607 of title 10, United States Code, during the 12-month period beginning on the date on which the enhanced benefits referred to in subsection (a) become available. (3) Report.--Not later than 18 months after the date on which the enhanced benefits referred to in subsection (a) become available, the Secretary of Defense and the Secretary of Veterans Affairs shall submit a report on the results of the studies conducted under paragraphs (1) and (2) to-- (A) the Committee on Armed Services of the Senate; (B) the Committee on Armed Services of the House of Representatives; (C) the Committee on Veterans' Affairs of the Senate; and (D) the Committee on Veterans' Affairs of the House of Representatives. SEC. 4. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY GI BILL FOR CERTAIN MEMBERS OF THE SELECTED RESERVE. (a) Increase in Rates.--Section 16131(b) of title 10, United States Code, is amended-- (1) in paragraph (1)-- (A) by striking ``at the following rates:'' and inserting ``--''; and (B) by striking subparagraphs (A) through (C) and inserting the following: ``(A) for a program of education pursued on a full-time basis-- ``(i) $475 per month for months during fiscal year 2005; and ``(ii) for months during fiscal year 2006 and each subsequent fiscal year, the monthly amount under this subparagraph for the previous fiscal year multiplied by the percentage increase calculated under paragraph (2); ``(B) for a program of education pursued on a three- quarter-time basis-- ``(i) $356 per month for months during fiscal year 2005; and ``(ii) for months during fiscal year 2006 and each subsequent fiscal year, the monthly amount under this subparagraph for the previous fiscal year multiplied by the percentage increase calculated under paragraph (2); ``(C) for a program of education pursued on a half-time basis-- ``(i) $238 per month for months during fiscal year 2005; and ``(ii) for months during fiscal year 2006 and each subsequent fiscal year, the monthly amount under this subparagraph for the previous fiscal year multiplied by the percentage increase calculated under paragraph (2); and''; and (2) in paragraph (2)-- (A) by inserting ``beginning on or after October 1, 2005'' after ``With respect to any fiscal year''; and (B) in subparagraph (A), by striking ``all items'' and inserting ``college tuition and fees''. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the first day of the first month beginning after the date of enactment of this Act. SEC. 5. OPPORTUNITY FOR CERTAIN ACTIVE-DUTY PERSONNEL TO ENROLL UNDER THE MONTGOMERY GI BILL. (a) In General.--Chapter 30 of title 38, United States Code, is amended by inserting after section 3018C the following: ``Sec. 3018D. Opportunity for certain active-duty personnel to enroll ``(a)(1) Notwithstanding any other provision of this chapter, during the 1-year period beginning on the date of enactment of this section, a qualified individual (described in subsection (b)) may make an irrevocable election under this section to receive basic educational assistance under this chapter. ``(2) The Secretary of each military department shall provide for procedures for a qualified individual to make an irrevocable election under this section in accordance with regulations prescribed by the Secretary of Defense for the purpose of carrying out this section or which the Secretary of Homeland Security shall provide for such purpose with respect to the Coast Guard when it is not operating as a service in the Navy. ``(b) A qualified individual referred to in subsection (a) is an individual who meets each of the following requirements: ``(1) The individual first became a member of the Armed Forces or first served on active duty as a member of the Armed Forces before July 1, 1985. ``(2) The individual-- ``(A) has served on active duty without a break in service since the date the individual first became such a member or first served on active duty as such a member; and ``(B) continues to serve on active duty for some or all of the 1-year period described in subsection (a). ``(3) The individual, before applying for benefits under this section-- ``(A) completed the requirements of a secondary school diploma (or equivalency certificate); or ``(B) has successfully completed (or otherwise received academic credit for) the equivalent of 12 semester hours in a program of education leading to a standard college degree. ``(4) The individual, when discharged or released from active duty, is discharged or released therefrom with an honorable discharge. ``(c)(1) Subject to paragraph (2), with respect to a qualified individual who elects under this section to receive basic educational assistance under this chapter-- ``(A) the basic pay of the qualified individual shall be reduced (in a manner determined by the Secretary concerned) until the total amount by which such basic pay is reduced is $1,200; and ``(B) to the extent that basic pay is not reduced under subparagraph (A) before the qualified individual's discharge or release from active duty, an amount equal to the difference between $1,200 and the total amount of reductions under subparagraph (A), which shall be paid into the Treasury of the United States as miscellaneous receipts, shall, at the election of the qualified individual, be-- ``(i) collected from the qualified individual by the Secretary concerned; or ``(ii) withheld from the retired or retainer pay of the qualified individual by the Secretary concerned. ``(2)(A) The Secretary concerned shall provide for an 18-month period, beginning on the date the qualified individual makes an election under this section, for the qualified individual to pay that Secretary the amount due under paragraph (1). ``(B) Nothing in subparagraph (A) shall be construed as modifying the period of eligibility for and entitlement to basic educational assistance under this chapter applicable under section 3031 of this title. ``(d) With respect to qualified individuals referred to in subsection (c)(1)(B), no amount of educational assistance allowance under this chapter shall be paid to the qualified individual until the earlier of the date on which-- ``(1) the Secretary concerned collects the applicable amount under subsection (c)(1)(B)(i); or ``(2) the retired or retainer pay of the qualified individual is first reduced under subsection (c)(1)(B)(ii). ``(e) The Secretary, in conjunction with the Secretary of Defense, shall provide for notice of the opportunity under this section to elect to become entitled to basic educational assistance under this chapter.''. (b) Conforming Amendments.--Section 3017(b)(1) of title 38, United States Code, is amended-- (1) in subparagraphs (A) and (C), by striking ``or 3018C(e)'' and inserting ``3018C(e), or 3018D(c)''; and (2) in subparagraph (B), by inserting ``or 3018D(c)'' after ``under section 3018C(e)''. (c) Clerical Amendment.--The table of sections at the beginning of chapter 30 of title 38, United States Code, is amended by inserting after the item relating to section 3018C the following: ``3018D. Opportunity for certain active-duty personnel to enroll.''.
summary: Armed Forces Education Benefits Improvement Act - Increases for FY2005 and thereafter the amount of monthly basic educational assistance under the Montgomery GI Bill (GI Bill) for veterans whose obligated period of active duty for such entitlement is three years. Increases such amounts, for FY2006 and thereafter, by the percentage increase in the Consumer Price Index. Directs the Secretary of Defense to work expeditiously with the Secretary of Veterans Affairs to ensure that members of the Selected Reserve receive their educational benefits in a timely manner. Requires a study from the Secretary of: (1) Defense analyzing the effect of all GI Bill educational benefits on recruitment and retention; and (2) Veterans Affairs analyzing the effect of such benefits on the readjustment of veterans eligible for the increased benefits, above. Increases for FY2005 and thereafter the amount of monthly educational assistance for members of the Selected Reserve who agree to remain members for at least six years. Increases such amounts, for FY2006 and thereafter, by the percentage increase in the Consumer Price Index. Allows eligible members of the Armed Forces to make an irrevocable election to receive basic educational assistance under the GI Bill. Defines as eligible members those who: (1) first became a member or first served on active duty before July 1, 1985; (2) served on active duty without a break in service since such date; (3) continue to so serve during the one-year period following enactment of this Act; (4) have successfully completed the requirements of a secondary school diploma and the equivalent of 12 semester hours toward a standard college degree; and (5) when discharged or released, receive an honorable discharge.