PUBLIC LAW 105-261—OCT. 17, 1998 112 STAT. 2037 (b) INCREASE IN BASIC PAY.— Effective on January 1, 1999, the rates of basic pay of members of the uniformed services shall be increased by the greater of— (1) 3.6 percent; or (2) the percentage increase determined under subsection (c) of section 1009 of title 37, United States Code, by which the monthly basic pay of members would be adjusted under subsection (a) of that section on that date in the absence of subsection (a) of this section. SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT THE SERV- ICE ACADEMIES. (a) INCREASED RATE. —Section 203(c) of title 37, United States Code, is amended by striking out "$558.04" and inserting in lieu thereof "$600.00". (b) EFFECTIVE DATE.— The amendment made by subsection (a) 37 USC 203 note, shall take effect on January 1, 1999. SEC. 603. BASIC ALLOWANCE FOR HOUSING OUTSIDE THE UNITED STATES. (a) PAYMENT OF CERTAIN EXPENSES RELATED TO OVERSEAS HOUSING. —Section 403(c) of title 37, United States Code, is amended by adding at the end the following new psiragraph: "(3)(A) In the case of a member of the uniformed services authorized to receive an allowance under paragraph (1), the Secretary concerned may make a lump-sum payment to the member for required deposits and advance rent, and for expenses relating thereto, that are— "(i) incurred by the member in occupying private housing outside of the United States; and "(ii) authorized or approved under regulations prescribed by the Secretary concerned. "(B) Expenses for which a member may be reimbursed under this paragraph may include losses relating to housing that are sustained by the member as a result of fluctuations in the relative value of the currencies of the United States and the foreign country in which the housing is located. "(C) The Secretary concerned shall recoup the full amount of any deposit or advance rent payments made by the Secretary under subparagraph (A), including any gain resulting from currency fluctuations between the time of payment and the time of recoupment.". (b) CONFORMING AMENDMENT. —Section 405 of title 37, United States Code, is amended by striking out subsection (c). (c) RETROACTIVE APPLICATION.—The reimbursement authority 37 USC 403 note. provided by section 403(c)(3)(B) of title 37, United States Code, as added by subsection (a), applies with respect to losses relating to housing that are sustained, on or after July 1, 1997, by a member of the uniformed services as a result of fluctuations in the relative value of the currencies of the United States and the foreign country in which the housing is located. SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES. (a) IN GENERAL.— Section 402 of title 37, United States Code, is amended— (1) by redesignating subsections (e) and (f) as subsections (f) and (g), respectively; and
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