text: 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.
target: 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.
feat_title: A bill to amend title 10, United States Code, to revise the age and service requirements for eligibility to receive retired pay for non-regular service; to expand certain authorities to provide health care benefits for Reserves and their families, and for other purposes.