Submitted Testimony by the Naval Reserve Association

BEFORE THE SENATE VETERANS AFFAIRS COMMITTEE
AND HOUSE VETERANS AFFAIRS COMMITTEE

On March 22, 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

Chairman Specter, Chairman Smith, Ranking Member Rockefeller, Ranking Member Evans, distinguished members of the House and Senate Veterans Affairs Committees, we would like to express our appreciation for the opportunity to submit testimony, on behalf of nearly 23,000 members of the Naval Reserve Association, and the 1.5 million men and women who serve in the Army and Air National Guard, and the Army, Marine Corps, Air Force and Coast Guard Reserve, as well as the Naval Reserve.

While traditionally, the associations that testify before this joint session are the Veteran Service Organizations (VSO), there are other veterans who may be overlooked without our testimony. Just because one serves in the Reserve or Guard does not mean the individual is not a veteran. The vast majority of members who serve this country in the Reserve Component hold form DD-214s and qualify for veteran status through active service. A small percentage of the population of the drilling reserve and the retiree community has VA recognized disabilities. Additionally, there is an emerging group of veterans; non-prior service Reservists who are qualifying for veteran benefits by their very service to their country through the Guard and Reserve.

Our Reserve members are serving as a complement to our Active Forces more now than at any time outside of war. Today, like their Active Duty counterparts, Reservists and Guardsmen stand vigilant around the globe sharing the risks of the front lines, weathering the cold in Bosnia or the heat of Saudi and Kuwait; flying over Northern Watch in Iraq, or interdicting drug traffic in the Caribbean. Today’s military faces more threats and is more widely deployed than ever before, and members of the Guard and Reserve are there.

Yet, by being called-up, Reservists might have their veteran benefits placed in jeopardy, and faces other situations that are unique to the Reserve Component. What follows is a list of concerns that we hope you can help address:

Defer Repayment of Student Loans for Activated Reservists.
Mobilized Guardsmen and Reservists who have federal Stafford and Perkins education loans are currently required to begin repaying those loans while they are still on active duty.
The NRA recommends that the period of their involuntary active duty be excluded from the calculation of their loan repayment start date.

Losing MGIB Benefits Because Of Recall.
Reservists who are students are at academic risk if they are called up. Currently if a student has to discontinue a course of study for recall, under MGIB, Chapter 1606, those incomplete months of study are charged against their 36 months MGIB benefits entitlement period because they failed to receive credit for the course. A provision was passed to protect members serving during the Gulf War only.
The NRA recommends not reducing the benefits entitlement for the period that a student is called up for a contingency operation during mid academic session.

Length of MGIB Benefits for Reservists.
A Guardsman or Reservist can qualify for the Montgomery G.I. Bill from either active duty or six years of reserve drilling time. Demands of family, and both a civilian and reserve career often preclude the individual from a timely pursuit of education. Often, the clock on G.I. Bill benefits run out before they can be used.
Furthermore, in this economy, a person may need retraining midway in their civilian career. NRA recommends an amendment to Title 38 to permit extended use of benefits. If the benefit cannot remain available until it is exhausted, then for Reservists a ten-year clock should start at the termination of their Reserve career.

Continuation of MGIB-SR for Reservists who are Involuntarily
Transferred from Pay to Non-pay.
If a member is moved to non-pay through high year tenure or promotion, the Reserve Montgomery G.I. Bill (MGIB-SR) ends. Education benefits should be permitted to be continued if the member continues to drill in non-pay, and has qualifying years

MGIB Benefits for Selected Reserve (SR).
The MGIB-SR benefit level should equal approximately 50 percent of the recommended MGIB benefit level, to maintain equivalence between MGIB and MGIB-SR. MGIB-SR is currently 47.6 percent of the MGIB, having declined from 48.6 percent of MGIB on October 1, 1991. The MGIB-SR benefit level should be high enough so that the program is seen as a reward for serving the country. Increase MGIB-SR benefits to maintain the viability of the MGIB-SR program in the cluster of reasons to join the Armed Forces Reserve.

Affirm Department of Veterans’ Affairs as Financial Administrator of MGIB-SR
Since MGIB-SR is a Title 10 program, VA believes it needs DoD's permission and perhaps legislation to formulate communication messages. VA should develop a comprehensive communication strategy that includes better coordination with DoD as an essential feature. VA should collaborate with DoD to review the content and mode of delivery of all MGIB-SR messages. Build flexible and responsive education programs and delivery systems tailored to the needs of members of the Selected Reserves/National Guard.

MGIB Extension; effect on Recruiting
The military services are having difficulty recruiting and retaining members in both Active and Reserve components. The Montgomery G.I. Bill (MGIB) has been used as a recruiting tool in the past. In the Reserves, to qualify for the Montgomery G.I. Bill, a six-year contract is required.
The MGIB is only authorized to 2003; no recruiter should be using it on enlistment contract terms beyond that year. Therefore, the NRA recommends to Congress that the MGBI authorizations be extending, making it a permanent program.

VA Home Loan Guarantee Extension
VA Home Loan Guarantees for Selected Reserves is scheduled to expire in 2007. This is a benefit offered in recruiting and re-enlistment. NRA recommends that Congress either extend or make this loan guarantee permanent

CONCLUSION
Individuals who enlist in the Reserve or Guard recognize they cannot make large sums of money by being in the Reserves. Many join to recapture the experience or excitement, while others join for additional income as they develop a post-military life. Some view continued military service as a higher calling to their country. Whatever the reasons that may persuade one to continue to service, all hope to be treated fairly. We honor them as warriors, but let’s not forget that they are veterans too.