Submitted Testimony by the Naval Reserve Association 

On APRIL 5, 2001 

The Naval Reserve Association 

“An association is not necessary to protect the Naval Reserve from the Naval Establishment, but is vitally needed to cooperate with the Navy in the solution of the many and complex problems that arise in the administration of a Navy composed of both regular and reserve career personnel.”

With association roots that can be traced back to 1919, the Naval Reserve Association (NRA) is devoted solely to service to the Nation, Navy, the Naval Reserve and Naval Reserve officers. It is the premier national education and professional organization for Naval Reserve officers, and the Association Voice of the Naval Reserve!

Full membership is offered to officers who have held Naval Reserve Officer commissions, WO-1 through O-10; however NRA members come from all ranks and components.

NRA has over 22,500 members from all fifty states. Forty-five percent of the Naval Reserve Association membership is drilling and active reservists and the remaining fifty-five percent are made up of reserve retirees, and involved civilians. The National Headquarters is located at 1619 King Street Alexandria, VA. 703-548-5800. Our Point of Contact is Marshall Hanson, Director of Legislation. 

Disclosure of Federal Grants or Contracts 

The Naval Reserve Association does not currently receive, has not received during the current fiscal year, or either of two previous years, any federal money for grants or contracts. All of the Association’s activities and services are accomplished free of any federal funding. 

OPENING STATEMENT 

Changing threats and utilization of the Guard and Reserves has created an environment, where our Reservists are being called upon more frequently than at any time in the past other than war. Reservists are now being called into service by Area Commanders (CINCs) for longer periods of time per year to defer a “hollowing out “ process that has drawn down the strength, readiness and flexibility of our combat units.

Our Commanders in the field realize that they can no longer get the mission done in the long term without the Guard and Reserve. The Department of Defense’s plan for a Total Force has emphasized the integration of regular and reserve components of each service.

But integration is adding stress on our Reservists. The Guard and Reserve is no longer a force “in waiting”. It is now a “force on call.” Frequency and duration of call-ups place stress on families and on employers. And Family and Job Conflict are the two top reasons given by individuals who quit the Guard and Reserve.

Those who remain, view serving the United States as a privilege that gives pride and motivates Guardsmen and Reservists. Few would want less, but what is asked by Guardsmen and Reservists is as members of the Total Force doing the same job as Active Duty that they share the same benefits as their Active Duty counterparts.

Not creating parity with a total force risks creation of a second string on our national defense team. Being treated as a second class Soldier, Sailor, Marine or Airmen is an affront. OPTEMPO and aging equipment have been a cause for the problems in retention and recruiting suffered by the Guard and Reserve, today.

There are three categories of concern:

First, fair pay and compensation. Many reservists are working without pay outside of drill periods because there is a need to support the mission.

Second, there is a need for parity of benefits between active and reserve.

And third, support of the employers. Without the backing of employers, we will have no Guard or Reserve.

The Naval Reserve Association hopes that this subcommittee will address and correct this disparity. What follows is a list of concerns that we hope you can help address: 

PERSONNEL AND OPTEMPO 

Encourage Upcoming QDR To Review Manning/Mission Imbalance.
The QDR must recognize and recommend an increase in personnel strengths and equipment/spares to meet current mission requirements for Active, Guard or Reserves; or the QDR must redefine current mission requirements reducing OPTEMPO.

Fine-Tune the ITEMPO Formula To Exempt Certain CONUS Reserve ADSW.
If an Active or Reserve member performs more than 400 days of remote duty (that being more than 50 miles away from local assignment) in a two-year period a payment to that individual of $100 a day will be made. Because this is an unbudgeted or under-funded item, the reality will be that this member will be excluded from further ‘remote’ assignments.

A number of Reservists are filling Active jobs within the U.S. and because of the needs of the service are more than 50 miles from home. They will likely be sent home. We need to exclude Reserve CONUS duty from the ITEMPO formula.

ROPMA Amendments to Exclude Physicians and Dentists from Grade Strength Caps. Amend ROPMA, i.e., 10 USC § 12005(a)(2), to make the law conform to DOPMA and exclude physicians and dentists from grade caps. This reform relieves critical health care professional shortages by precluding unintended statutory separation of these officers. Medical and dental corps officers are not-due-course officers i.e., they receive constructive credit for their medical or dental education, relevant training, and experience, entering the RC as senior time-in-grade captains or majors and normally serving over half of their career in a rank of lieutenant colonel or colonel, under present law.
This high percentage of senior grade officers in the medical and dental corps must be offset by a lower percentage in the remaining AMEDD branches and/or Army promotion list, if the RC are to stay within the mandated grade ceilings. 

DEVELOPMENT OF RELATIONSHIPS WITH EMPLOYERS OF THE GUARD AND RESERVE 

Authorize tax credits for employers of Reservist-employees.
Guardsmen & Reservists are more often being called into service by the CINC’s for longer periods of time per year to defer a “hollowing out” process that could draw down the strength, readiness and flexibility of our combat units.

Employers are bearing a hardship of added expense to cover the manpower loss when reservists are recalled. Contracts are made for temporary employees, overhead costs are maintained on reservists for certain benefits; each adding unbudgeted expenses. With multiple call-ups of individuals, some employers are voicing frustration and resentment.

A tax credit for employers of Reservist would help compensate for these added costs.

Continue Emphasis on the Employer Support Program.
The Naval Reserve Association feels that the National and State Committees for Employers Support of the Guard and Reserve have been a successful program, and need continued support. 

PROTECTION OF THE GUARDSMAN AND RESERVIST 

Pay Employers to Maintain Health Coverage on Recalled Reservists to Provide Family Continuity of Healthcare.
Reservists on 90 day recall are “jerked” off their employers healthcare, then placed on Tricare, where they have to re-establish new doctors, and then returned again to employer healthcare at the end of recall, where ties with doctors must be re-established. Healthcare continuity can be maintained if for short duration recalls, DOD pays the employer for continued healthcare for recalled employees, akin to the mechanisms of COBRA healthcare for unemployed.

TRICARE Health for Reservists
Permit reservists to participate in TRICARE Health, with the reservist paying the full insurance premium. We are not suggesting a DOD supplement.

Make Permanent the Waiver Reducing the Final Reserve Component Service to Six Years to Qualify for Reserve Retirement.
Current law requires the eight final years of a Reservist to be in a reserve component before qualifying for reserve retirement pay. Following reduction in force (RIF) of the armed forces, certain members are leaving active duty and joining the Guard and Reserves, but are unable to complete eight years before required discharge from their service. Current waiver of the law reducing eight years to six ends Oct 01, 2001. Fewer administrative problems are arising.

Reimburse Reservists on Accrued Interest Charges on Mandated Credit Cards Used for Government Housing and Meal Costs During Overseas Deployment.
Government credit cards make it easier for DFAS to consolidate bills. Individual members are financially bearing the interest charges as credit companies are faster at billing than the government is to reimburse, especially on longer recalls where member can’t receive interim billings.

Restore To Reservists Full Tax Deductibility for Non-Reimbursed Expense.
Reservists are being asked to train more to enhance their readiness and capabilities to support contingency missions. As mission training is the focus during the 16 hour a month drill weekend, administrative duties, communicating with gaining commands, and physical training are being done on the individuals personal time. Off base expenses are normally born by the Reservist.

With the reduction in end strength, more individuals are drilling without pay. They also accept no cost orders in order to do annual training, which increases their readiness and makes them more viable for promotion. Personal items such as uniforms and devices are still required to be maintained in “class a” condition, despite lack of salary.

With defense budget reduction, Reservists and Guardsmen are paying a greater share of their own cost and restoring full tax deductibility would recognize this.

Automatic Retirement for Reservists.
Some of the services have noted a problem where members fail to request retirement and are discharged from the system. When these members request retirement pay, they find that their payscale has been locked to that of the date of discharge, where other members continue to get pay raise, and payscale increases. Retirement should be automatic unless a discharge is requested, rather than the opposite.