; and (ii) in the second sentence, by striking the deduction required under the preceding sentence and inserting the deduction from the member’s retired or retainer pay ; and (B) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4). (2) Voluntary separation pay and benefits Subsection (h) of section 1175a of title 10, United States Code, is amended to read as follows: (h) Coordination With Retired or Retainer Pay and Disability Compensation (1) Subsection (h) of section 1174 of this title shall apply to any member who receives voluntary separation pay under this section and who later qualifies for retired or retainer pay under this title or title 14 or for disability compensation under the laws administered by the Department of Veterans Affairs. (2) No deduction shall be made from the disability compensation paid to an eligible disabled uniformed services retiree under section 1413, or to an eligible combat-related disabled uniformed services retiree under section 1413a of this title, who is paid voluntary separation pay under this section. (3) The requirement under this subsection to repay voluntary separation pay following retirement from the armed forces does not apply to a member who was eligible to retire at the time the member applied and was accepted for voluntary separation pay and benefits under this section. . (c) Effective date and application of amendments The amendments made by this section shall take effect on the first day of the first month beginning on or after the date of the enactment of this Act. In the case of deductions to be made from the retired or retainer pay of members of the uniformed services, the amendments shall apply to that month and subsequent months.