Congress authorized the flags in the FY99 Defense Authorization Act and directed service secretaries to present a U.S. flag to service members upon retirement from the military, but it did not allocate funds for payment of the flags.

All soldiers who have retired since Oct. 1, 1998, will be eligible to receive a flag, according to an Army spokesman, since that was the effective date of the Defense Authorization Act.

Last October the Navy, Air Force and Marine Corps directed local commands to distribute the flags and pay for the flags from their operating budgets, but the Army took no action.

Several weeks ago complaints from many retirees began arriving at the Department of the Army through messages to the sergeant major of the Army and other Army officials.

Gary Smith, chief of Army Retirement Services, said he has talked with Lt. Gen. David Ohle, deputy chief of staff for personnel, and a draft policy is in the works now.

"We would like for the transition points to take the responsibility of distributing the flags at local commands," Smith said, but no final decision has been made yet on who will be directed to do that. He said he hopes to have the policy ready for approval by mid-August.