States Code, is amended by inserting or 12304b after section 12301(d) . 602. Authority to waive recoupment of separation pay, severance pay, or readjustment pay for involuntary discharge for members who subsequently become entitled to retired or retainer pay Section 1174(h) of title 10, United States Code, is amended by adding at the end the following new paragraph: (3) (A) The Secretary of Defense, or the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Navy, may waive the requirement to repay separation pay, severance pay, or readjustment pay under paragraph (1) if such Secretary determines that repayment would be against equity and good conscience or would be contrary to the best interests of the United States. (B) The authority of the Secretary of Defense in this paragraph may be delegated to the Under Secretary of Defense for Personnel and Readiness and the Principal Deputy Under Secretary of Defense for Personnel and Readiness. . 603. Authority for payment of death gratuity to trusts Section 1477(a) of title 10, United States Code, is amended by adding at the end the following new paragraph— (3) In this subsection, the term person includes— (A) the estate of the member