Mister Chairman and distinguished members of the Committee, the Association of the United States Navy is very grateful to have the opportunity to submit testimony for the record on H.R. 3787, to amend title 38, United States Code, to deem certain service in the reserve components as active service for purposes of laws administered by the Secretary of Veterans Affairs.

Our newly transitioned VSO-MSO association, since 1954, has worked diligently to educate Congress, our members, and the public on Navy veterans, Navy equipment, force structure, policy issues, and personnel, DoD civilian and family issues.

I thank this Committee for the on-going stewardship on the important issues of national defense and on behalf of veterans.   Our military and veterans along with their families are watching what Congress is considering very carefully.  At a time of war, non-partisan leadership sets the example.

H.R. 3787—Full Veteran Status For Certain Guard/Reserve Retirees

Issue: Certain members of the Guard and Reserve components with 20 years or more service do not otherwise qualify under current law (Title 38) as veterans.

Background.  All members of the Selected Reserve—those who regularly train in designated military positions— volunteer for service to the Nation and are liable for activation in its defense.

In the event that a reserve component member has not been called to federal active duty during a 20-year-or-more service career, that full reserve career service should be recognized as equivalent qualification for full veteran status under the law.  Over time, Congress has authorized a number of veteran’s benefits for such ‘gray area’ reserve retirees.  In establishing such benefits, it’s clear that these former service members are indeed veterans. (See accompanying rationale)

Twenty or more years of service in the reserve forces and eligibility for reserve retired pay should be sufficient qualifying service for full veteran status under the law.

This issue is a matter of honor to those who through no fault of their own were never activated, but served their Nation faithfully for 20 or more years.   It’s now time for Congress to take the final step and formally authorize these volunteer career citizen-warriors as veterans under the law.

Military Coalition Position and The National Military Veterans Alliance Position.  Amend Title 38 to include in the definition(s) of 'veteran' retirees of the Guard / Reserve components who have completed 20 or more years of service, but are not otherwise considered to be “veterans” under the current statutory definitions.  Career military service in the reserve forces of our Nation should constitute qualification for veteran status under the law.

Status.  The Military Coalition recommends the introduction of legislation that would accomplish this change.  Suggested language follows:

Adding a new subsection (g) in Section 106, 38 USC, ‘Certain service deemed to be active service':

'(g) Any person--
        (1) who is qualified for reserve retired pay under section 12731 of title 10 and is in receipt of reserve retired pay for non-regular service under the provisions of chapter 1223 of title 10; or,

        (2) who is qualified for reserve retired pay under section 12731 of title 10 and has been separated or retired from the Ready Reserve but is not yet age 60; and,

        (3) has not otherwise performed qualifying active duty service
shall be considered to have been on active duty for the purpose of all laws administered by the Secretary’ [of Veterans Affairs]

Rationale

As defined in law, members of the reserve components who have completed 20 or more years of service are military retirees and eligible upon reaching age 60 for all of the benefits of active duty military retirees.  However, they are not considered to be “veterans” if they have not served the number of consecutive days on federal active duty (defined as active duty other than active duty for training) required by law.

According to the Department of Veterans Affairs, “Reservists who served on active duty establish veteran status and may be eligible for the full-range of VA benefits, depending on the length of active military service and a discharge or release from active duty under conditions other than dishonorable. In addition, reservists not activated may qualify for some VA benefits”.

National Guard members can establish eligibility for VA benefits if activated for federal service during a period of war or domestic emergency. Activation for other than federal service does not qualify Guard members for all VA benefits.”

Over time, Congress has authorized certain veterans benefits for these retirees, indicating their ‘quasi-veteran’ status.  For purposes of this discussion, these individuals will be referred to as “non-veteran retirees.”

VA benefits for non-veteran retirees who have not served on federal active duty for the consecutive number of days required by law include:  

• VA disability compensation and VA health care for a non-veteran retiree who is injured and/or disabled while performing inactive duty for training regardless of length of service. 
• VA home loan eligibility in exchange for six or more years of honorable service in the Selected Reserve
• VA burial and memorial benefits for the non-veteran retiree entitled to reserve retired pay at the time of death
• Servicemen’s Group Life Insurance (SGLI) and Veterans Group Life Insurance (VGLI)

To qualify for a reserve retirement at age 60, a Guard or Reserve member must accrue the equivalent of 20 years of “points” based on the performance of military duty at a minimum of 50 points per year.  The minimum of 1000 qualifying retirement points roughly equates to 2.77 years of military duty based on the performance of drill duty (inactive duty training), annual training, and professional development in military science.  (20 yrs. X 50 points = 1000 pt minimum div by 360 = 2.77 years military duty).  Moreover, as volunteers, reservists are liable for activation throughout their careers and required to maintain their readiness for such eventualities.

Budgetary Considerations

Of primary concern to policy makers is the cost of designating non-veteran retirees as veterans.  We believe there would be little or no cost for the following reasons:

By definition, non-veteran retirees will not have a VA disability rating.  Indeed, if they were injured while on military duty, they would be eligible for a VA disability rating and VA health care.  Most would have assets and incomes above the VA Priority Group 8 means test, which has been closed to new applicants for more than four years.  A few individuals in the non-disabled, non-veteran retiree cohort might qualify for VA health care as Priority Group 7 means-tested individuals.  Very few would qualify for enrollment in Priority Group 5 as indigent veterans.

In almost all instances, these individuals will have other full-time employment, either in the private sector, or as civilian government employees.  Many have health care insurance through their employer.  Once they reach age 60, they will be eligible for TRICARE.

Finally, the Nation’s operational reserve policy requires the routine activation of Guard and Reserve service members for 12 months every fifth or sixth year.  Going forward, there will be a negligible number of career reservists who would not qualify as active duty veterans.

Summary

For the vast majority of non-veteran retirees, this issue is about honor not benefits.  They seek public and statutory recognition as “veterans of the Armed Forces of the United States”.  They volunteered to serve, served honorably, and were prepared to serve on active duty if called.  The absence of statutory recognition is a vestige of the Cold War, when the Nation relied upon conscription for its manpower.  A small cohort of today’s volunteers should not be penalized for decisions beyond their control concerning federal activation.

AUSN Request that you pass HR 3787, including as it may be amended by Congressman Walz.

Association of the United States Navy
Alexandria, VA.
June 28, 2010

Dear Chairman Hall and Ranking Member Lamborn:

The Association of the United States Navy (AUSN) representing veterans, military members and their families strongly support H.R. 3787, a bill to assign veterans status to members of the Reserve Components of the United States Military who have served for 20 years or more—thus becoming military retirees—but who were never on active duty status long enough to qualify as a “veteran.” 

All members of the Selected Reserve volunteer for service to the Nation and are liable for activation in its defense.  In the event that a Reserve component member has not been called to federal active duty during a twenty-year-or-more service career, we believe that service should qualify the member for full status as a veteran under the law.  This issue is a matter of honor to those who through no fault of their own were never activated, but served their Nation faithfully for twenty years.

As a Nation, our military cannot function without the Guard and Reserve.  Our Reserve Components are ‘operational reserve’ and have been for a long time.  The large numbers of Reserve component members who have been called to serve in OEF/OIF will qualify as veterans.  However, there are those who serve at the armories and bases and whose jobs are to make sure the other members of their units are qualified and ready to deploy.  Almost all members do deploy in some format but do not stay on active duty for the required amount of time – for at least 30 days continuous.  There are others who, while ready to deploy had they been needed, were not called to active duty during their time of service.  Under current law, even if they serve for twenty years or more, they are not and will not be considered as veterans under Title 38.  These members serve less than 30 days active duty time – but, over a 20 year span – serve our Nation in natural disasters, current boarder duty, and even deploy to overseas bases – in support of conflicts – but, all in less than 30 days.   Thus, the simple step of recognizing the service of those who spend twenty years or more as meriting the distinction of being called a veteran is a major issue for them and our country, one of pride and one of having their sacrifices recognized.  Our Total Force includes the Guard and Reserve Components.  They wear the same uniforms and earn the same medals and awards for honorable service and in our Nations conflicts.  They are worthy of the honor of being called “veteran.”

HR 3787 would eliminate this inequity.   This legislation as it is written will not qualify Reserve components for any additional benefits that they already do not have access to.  It does redefine them as Veterans in Title 38, and in some cases they will be recognized as Veterans for burial in some states.  All current wartime veterans that serve in a combat zone will already qualify. 

The Association of the United States Navy ask the committee to pass this important piece of legislation.  A briefing paper is attached.  Our point of contact is Ike Puzon, Captain, USN, retired, Director of Governmental Affairs – Legislation AUSN, 703-548-5800, ike.puzon@ausn.org. Written testimony has been submitted.

Sincerely,

C. Williams Coane RADM, USN (Ret)
Executive Director