Reservists regain jobs and benefits - military reservists returning from active duty

Nation's Business, May, 1991 by Roger Thompson

Reservsts Regain Jobs And Benefits

Many employers have gone above and beyond legal requirements in providing pay and benefits to the more than 220,000 reservists called up for duty in the Persian Gulf. And Congress has enacted a new package of benefits for returning veternas and reservists in a gesture of thanks for a job well done.

Although fighting in the Gulf War ended with a Feb. 28 cease-fire, it may be September or later before all the reservists return home. Under one of the few legal requirements placed on employers regarding reservists, their employers must offer them reinstatement to the jobs they had when they were called up.

Recent surveys by mjor benefits consulting firms show that most employers have adopted generous policies toward their called-up employees. Although not required by law to do so, most employers are keeping active-duty reservists on the payroll and maintaining all or some of their benefits.

About half of all employers have continued pay for reservists, according to a survey by the New York-based William M. Mercer firm. But most limit the pay continuation to six months. Employers who keep reservists on the payroll typically reduce their checks by the amount they receive from the military.

In addition, many employers are continuing medical coverage for activated employees and their dependents even though reservists or members of the National Guard are covered by a military health plan, and their dependents are covered under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS).

In a January survey of 37 large employers, Hewitt Associates, a benefits consulting firm based in Lincolnshire, Ill., found all but three were offering some type of health-care continuation arrangements for employees, or dependents, or both groups. Of 49 companies surveyed by the New York-based Towers Perrin firm in February, 43 said they would continue health-care coverage for dependents, up from 27 when the same employers were surveyed in August.

If health coverage is discontinued at any point, employers subject tof the Consolidated Omnibus Budget Reconsiliation Act (COBRA)--those with more than 20 employees--must offer to continue the policy if the employee pays the premium costs.

In cases where health insurance was discontinued, legislation enacted in February prevents employers from treating returning reservists as new employees with regard to health-plan waiting periods and pre-existing conditions. The legislation--the Soldiers' and Sailors' Civil Relief Act Amendments of 1991--also protects reservists and their families from being evicted for not paying their rent if the rent was under $1,200 a month.

When reservists resume their jobs, some employers may have to determine whether their medical policies pay for physical or emotional injuries incurred while the employee was on active duty. Most medical plans and insurance contracts restrict coverage for war-related injuries, but these exlusions often are vague and may not provide adequate guidance for employers, says Mercer.

The Gulf War's quick, successful conclusion prompted Congress to expedite approval of a package of benefits for military personnel. The so-called Desert Storm bill cleared both houses of Congress on March 21 and was signed by President Bush on April 6.

The newly enacted law:

* Increases monthly education benefits to $170 from $140 for reservists and National Guard members. Monthly payments also increase for enlisted personnel. The increases are effective for two years beginning Oct. 1, 1991.

* Continues military medical coverage for one month for discharged reservists and their families not covered by a private health plan.

* Doubles to $6,000 the death benefit for families of those killed in the war and doubles to $100,000 the group life-insurance benefit.

* Increases family separation pay to $75 a month from $60 a mont, effective Jan. 15--the day before allied bombing began--until 180 days after the end of the war--a date to be formally declared by the president or by the Congress.

* Raises imminent-danger pay, or combat pay, to $150 a month from $110 a month for those serving in the Gulf War. The increase would be effective from Aug. 1, the day before Iraqi troops invaded Kuwait, until 180 days after the war's end.

Employers inevitably will have numerous questions about their obligations to those returning from military service. The following frequently asked questions and their answers have been provided by the law firm of Jackson, Lewis, Schnitzler & Krupman, which specializes in labor and employment law and his offices in 12 cities nationwide.

Readers who have specific questions on these topics are advised to consult their own attorneys.

What are my general obligations to reservists who want their jobs back now that they have returned from service in the Persian Gulf.

Under the Veterans' Reemployment Rights Act, reservists and veterans returning from active duty who apply for re-employment with their preservice employer are entitled to re-employment and restoration of pay, seniority, status, and any other conditions of employment as if they had been employed continuously.