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Do you know your business requirements involving Military Reserve employees? There's some confusion among employers and employees regarding reserve unit military call-ups.

During the Vietnam era, a traditional tour of duty in the combat zone was 12 months. Under new rules of engagement for the "War on Terror," unit tours of duty in combat zones are being extended. In some instances, reserve units have been recalled for a second tour.

In our consulting work with companies, we are fielding more and more questions regarding employer obligations to returning veterans.

• A toll free employee and employer telephone hotline (1-866-444-3272) at the Department of Labor, Employee Benefits Security Administration, is available to request publications or to speak with a benefits advisor.
• There also is a website that has information: www.dol.gov.

More complete information is available at the phone number and website mentioned above by referencing VETS, the Veterans' Employment and Training Service of the U.S. Department of Labor. This relates to the Uniform Services Employment and Reemployment Rights Act (1994). The VETS program addresses the rights and responsibilities of individuals and their employers under the law.

A section of the website addresses the most frequently asked questions by those employees called up to active duty. Some of the subjects include:

1. Health Coverage - Military health coverage starts at 30 days on active duty. The employee can elect to continue health coverage through COBRA, the Consolidated Omnibus Budget Reconciliation Act. Or, USERRA allows group health plan coverage up to 18 months. HIPAA, Health Insurance Portability and Accountability Act, also provides rights to enroll in a group health plan under certain conditions. COBRA and HIPAA electives are discussed in IRS Notice 98-12. The employee can elect to continue a current doctor or hospital for themselves or a dependent under COBRA. The employee has a right to renew their health coverages after military service unless the Secretary of Veterans Affairs designates illness or injury during military duty. In this circumstance care is granted under the military health plan.

   The Department of Labor site also has links to:

   • Recent changes in Health Care Law
   • Health Benefits Under COBRA
   • Pension and Health Coverage for Dislocated Workers
   • Frequently Asked Questions on TRICARE

2. Retirement Plans and 401(k) - The law requires the period of military duty be counted as covered service with the employer for eligibility, vesting and benefit accrual. Returning service members are treated as if they had been continuously employed. Employer contributions to 401(k) while on active duty are not required. However, on reemployment the employer must make the contributions that would have been made during the period of military duty. The employer has a period equal to three times the length of the military service to make up the contributions.

3. Interest Charges Lowered - The Soldiers' and Sailors' Civil Relief Act (SSCRA) requires creditors to drop interest rates down to no more than 6% on debts owed by those who enter into military service for the period of their service.

4. Employers are required to hold open employment of the individual employee whose unit called him or her up to active duty for five years. Upon reemployment, rights and benefits are to be reinstated by the employer as if they had not gone away. The right of reemployment is covered under Federal Law.

This information is compiled and provided by George S. May International Company.
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