article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Guard and Reserve Readiness and Retention Act of 2004''. SEC. 2. ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR SERVICE. (a) Age and Service Requirements.--Subsection (a) of section 12731 of title 10, United States Code, is amended to read as follows: ``(a)(1) Except as provided in subsection (c), a person is entitled, upon application, to retired pay computed under section 12739 of this title, if the person-- ``(A) satisfies one of the combinations of requirements for minimum age and minimum number of years of service (computed under section 12732 of this title) that are specified in the table in paragraph (2); ``(B) performed the last six years of qualifying service while a member of any category named in section 12732(a)(1) of this title, but not while a member of a regular component, the Fleet Reserve, or the Fleet Marine Corps Reserve, except that in the case of a person who completed 20 years of service computed under section 12732 of this title before October 5, 1994, the number of years of qualifying service under this subparagraph shall be eight; and ``(C) is not entitled, under any other provision of law, to retired pay from an armed force or retainer pay as a member of the Fleet Reserve or the Fleet Marine Corps Reserve. ``(2) The combinations of minimum age and minimum years of service required of a person under subparagraph (A) of paragraph (1) for entitlement to retired pay as provided in such paragraph are as follows: ``Age, in years, is The minimum years of service at least: required for that age is: 53...................................................... 34 54...................................................... 32 55...................................................... 30 56...................................................... 28 57...................................................... 26 58...................................................... 24 59...................................................... 22 60...................................................... 20.''. (b) 20-Year Letter.--Subsection (d) of such section is amended by striking ``the years of service required for eligibility for retired pay under this chapter'' in the first sentence and inserting ``20 years of service computed under section 12732 of this title.''. (c) Effective Date.--This section and the amendments made by this subsection (a) shall take effect on the first day of the first month beginning on or after the date of the enactment of this Act and shall apply with respect to retired pay payable for that month and subsequent months. SEC. 3. EXPANDED ELIGIBILITY OF READY RESERVE MEMBERS UNDER TRICARE PROGRAM. (a) Unconditional Eligibility.--Subsection (a) of section 1076b of title 10, United States Code, is amended by striking ``and receive benefits'' and all that follows through ``an employer-sponsored health benefits plan''. (b) Permanent Authority.--Subsection (l) of such section is repealed. (c) Conforming Repeal of Obsolete Provisions.--Such section is further amended-- (1) by striking subsections (i) and (j); and (2) by redesignating subsection (k) as subsection (i). SEC. 4. CONTINUATION OF NON-TRICARE HEALTH BENEFITS PLAN COVERAGE FOR CERTAIN RESERVES CALLED OR ORDERED TO ACTIVE DUTY AND THEIR DEPENDENTS. (a) Required Continuation.--(1) Chapter 55 of title 10, United States Code, is amended by inserting after section 1078a the following new section: ``Sec. 1078b. Continuation of non-TRICARE health benefits plan coverage for dependents of certain Reserves called or ordered to active duty ``(a) Payment of Premiums.--The Secretary concerned shall pay the applicable premium to continue in force any qualified health benefits plan coverage for the members of the family of an eligible reserve component member for the benefits coverage continuation period if timely elected by the member in accordance with regulations prescribed under subsection (j). ``(b) Eligible Member; Family Members.--(1) A member of a reserve component is eligible for payment of the applicable premium for continuation of qualified health benefits plan coverage under subsection (a) while serving on active duty pursuant to a call or order issued under a provision of law referred to in section 101(a)(13)(B) of this title during a war or national emergency declared by the President or Congress. ``(2) For the purposes of this section, the members of the family of an eligible reserve component member include only the member's dependents described in subparagraphs (A), (D), and (I) of section 1072(2) of this title. ``(c) Qualified Health Benefits Plan Coverage.--For the purposes of this section, health benefits plan coverage for the members of the family of a reserve component member called or ordered to active duty is qualified health benefits plan coverage if-- ``(1) the coverage was in force on the date on which the Secretary notified the reserve component member that issuance of the call or order was pending or, if no such notification was provided, the date of the call or order; ``(2) on such date, the coverage applied to the reserve component member and members of the family of the reserve component member; and ``(3) the coverage has not lapsed. ``(d) Applicable Premium.--The applicable premium payable under this section for continuation of health benefits plan coverage for the family members of a reserve component member is the amount of the premium payable by the member for the coverage of the family members. ``(e) Maximum Amount.--The total amount that the Department of Defense may pay for the applicable premium of a health benefits plan for the family members of a reserve component member under this section in a fiscal year may not exceed the amount determined by multiplying-- ``(1) the sum of one plus the number of the family members covered by the health benefits plan, by ``(2) the per capita cost of providing TRICARE coverage and benefits for dependents under this chapter for such fiscal year, as determined by the Secretary of Defense. ``(f) Benefits Coverage Continuation Period.--The benefits coverage continuation period under this section for qualified health benefits plan coverage for the family members of an eligible reserve component member called or ordered to active duty is the period that-- ``(1) begins on the date of the call or order; and ``(2) ends on the earlier of-- ``(A) the date on which the reserve component member's eligibility for transitional health care under section 1145(a) of this title terminates under paragraph (3) of such section; ``(B) the date on which the reserve component member elects to terminate the continued qualified health benefits plan coverage of the member's family members; or ``(C) December 31, 2005. ``(g) Extension of Period of COBRA Coverage.--Notwithstanding any other provision of law-- ``(1) any period of coverage under a COBRA continuation provision (as defined in section 9832(d)(1) of the Internal Revenue Code of 1986) for an eligible reserve component member under this section shall be deemed to be equal to the benefits coverage continuation period for such member under this section; and ``(2) with respect to the election of any period of coverage under a COBRA continuation provision (as so defined), rules similar to the rules under section 4980B(f)(5)(C) of such Code shall apply. ``(h) Nonduplication of Benefits.--A member of the family of a reserve component member who is eligible for benefits under qualified health benefits plan coverage paid on behalf of the reserve component member by the Secretary concerned under this section is not eligible for benefits under the TRICARE program during a period of the coverage for which so paid. ``(i) Revocability of Election.--A reserve component member who makes an election under subsection (a) may revoke the election. Upon such a revocation, the member's family members shall become eligible for benefits under the TRICARE program as provided for under this chapter. ``(j) Regulations.--The Secretary of Defense shall prescribe regulations for carrying out this section. The regulations shall include such requirements for making an election of payment of applicable premiums as the Secretary considers appropriate.''. (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1078a the following new item: ``1078b. Continuation of non-TRICARE health benefits plan coverage for dependents of certain Reserves called or ordered to active duty.''. (b) Applicability.--Section 1078b of title 10, United States Code (as added by subsection (a)), shall apply with respect to calls or orders of members of reserve components of the Armed Forces to active duty as described in subsection (b) of such section, that are issued by the Secretary of a military department before, on, or after the date of the enactment of this Act, but only with respect to qualified health benefits plan coverage (as described in subsection (c) of such section) that is in effect on or after the date of the enactment of this Act.
summary: Guard and Reserve Readiness Retention Act of 2004 - Makes eligible for retired pay non-regular service reserve personnel who obtain the following age and years of reserve service: (1) 60 and 20; (2) 59 and 22; (3) 58 and 24; (4) 57 and 26; (5) 56 and 28; (6) 55 and 30; (7) 54 and 32; and (8) 53 and 34. (Currently, only those obtaining 60 years of age with 20 years of such service are eligible.) Removes the requirement that members of the Selected Reserve and the Individual Ready Reserve may be eligible for benefits under TRICARE (a Department of Defense managed health care program) only if such members: (1) are eligible unemployment compensation recipients; or (2) are not eligible for health care benefits under any employer-sponsored health benefits plan. Makes such eligibility permanent (currently terminates December 31, 2004). Directs the Secretary of the military department concerned to pay the applicable premium to continue in force any qualified health plan coverage for a reserve member (and his or her dependents) while the member is serving on active duty pursuant to a call or order issued during a war or national emergency declared by the President or Congress. Requires the continuation of COBRA coverage during such period. Prohibits simultaneous coverage under both the qualified health plan and TRICARE.