Provides that, in the case of a member of the armed forces who has been sentenced by a court-martial to receive a punishment that will terminate his or her eligibility to receive retired pay if executed, such eligibility shall be considered terminated as of the approval date of the court-martial sentence. Provides that if each form of such punishment is later remitted, set aside, or mitigated to a punishment that does not result in loss of eligibility to retired pay, then a payment of benefits to eligible recipients that is based on the punishment set aside or mitigated shall cease.