Today, more than 300,000 men and women in uniform are deployed
overseas, and mobilization levels are at their highest point since
World
War II. Beyond the considerable operational challenges faced by
military personnel, periods of prolonged conflict often create serious
personal and financial challenges. Fortunately, there are important
resources, support networks, and laws designed to support military
members and their families. In fact, new legislation strengthens protection
for those serving.
It is important to understand the broad-based federal protections
afforded military personnel and their families. Often very confusing,
these laws provide valuable benefits for those who understand them.
The most significant of these are the Servicemembers
Civil Relief Act (SCRA) and the Uniformed
Services Employment & Reemployment Rights Act (USERRA).
Upgraded Servicemembers Civil Relief Act
On 19 December 2003, President George W. Bush signed SCRA, which significantly
strengthened the civil protections afforded to active-duty (and recalled)
military personnel. An update to the older Soldiers & Sailors Civil
Relief Act of 1940, SCRA was enacted to allow servicemembers to "devote
their full energy to the defense needs of the nation" by providing
significant civil, legal, and financial protections. In other words,
it allows military personnel freedom to serve without undue worries
about leases, civil proceedings, and excessive interest, among other
things. According to a statement by the author of the new legislation,
Representative Chris Smith (R-NJ), "Servicemembers called to active
duty or deployed to new duty stations often find it difficult to meet
their personal financial and legal obligations in a timely manner.
The Servicemembers Civil Relief Act will help these brave men and
women, as well as their families back home, by strengthening and expanding
the current civil relief statute."
The new law expands and clarifies the protections afforded to servicemembers
under the older Soldier & Sailors Civil Relief Act. Important changes
to the law broaden the definition of civil proceedings to include
administrative hearings (such as family support), expand rights of
termination to include vehicle leases, and increase the applicability
of eviction protection. In addition, it stipulates that interest on
applicable loans in excess of 6% is forgiven, not postponed. Not surprisingly,
many of these protections are not automatic; servicemembers need to
let applicable creditors, landlords, and other parties know about
their intention to seek protection under SCRA.
Key provisions of SCRA include:
A right to terminate a lease with permanent-change-of-station
orders or for deployments greater than 90 days.
Protection against default proceedings (90-day stays for civil
proceedings where military service materially affects a member's
ability to appear in court).
Extensions for federal and state income tax filings up to 180
days without interest or penalty.
A 6% limit on interest on outstanding balances (including credit
card debt) that applies only to loans incurred before entering
military service (this includes debts incurred by reservists before
they are mobilized).
Provides a right to terminate vehicle leases under a variety
of circumstances.
Protection from eviction for nonpayment of rent without a court
order.
More protections and additional information about SCRA can be found
online.
Reserve & Guard Considerations
No longer weekend warriors, more than 325,000 U.S. reservists and
Guardsmen have been mobilized since 11
September 2001, with more than 180,000 still on active duty. Reservists
and Guardsmen increasingly are confronted with the same challenges
as their active-duty counterparts. In addition, they face additional
complexities arising from mobilization, including employer, financial,
and family support issues. Fortunately, federally recalled reserve
and Guard members benefit from the same laws and support networks
as active-duty personnel (including SCRA). They also are eligible
for supplemental protections designed to ease the burden of these
citizen soldiers.
The Uniformed Services Employment & Reemployment Rights Act provides
a right of reemployment with a civilian employer. The law, updated
in 1994 in response to issues encountered at the end of the first
Gulf
War, requires most employers to reemploy demobilized servicemembers
in positions comparable to those they held before being called up.
The law also provides for returning employees to benefit from accrued
seniority and additional training, if necessary.
Complementing USERRA is an advocacy organization called Employer
Support of the Guard & Reserve (ESGR). ESGR is a federal entity
under the Assistant Secretary of Defense for Reserve Affairs. ESGR,
along with a network of thousands of volunteers working at the state
level, works to educate employers about the importance of supporting
their reserve and Guard employees. "As a result of the increased use
of the Guard and reserve," said Bob Hollingsworth, executive director
of ESGR, "America's employers are inextricably linked to national
security. Our mission is to increase retention by ensuring that employers
support service in the Guard and reserve."
Although critical, the war
on terror requires significant sacrifices by those in uniform
and their families. It is more important than ever that all members
of the military community take full advantage of all the benefits
and protections afforded them under the law.
Chris Michel is CEO of Military.com, the nation's largest military membership organization. Military.com connects over 3 million members to the lifelong benefits of military service. Members trust Military.com for career, education and financial services. Prior to founding Military.com, Chris served as a Naval Flight Officer in the United States Navy. While on active duty, Chris flew as a P-3 Navigator, Tactical Coordinator and Mission Commander in support of maritime interdiction operations in the Red Sea, NATO enforcement operations in the Adriatic, and counter-narcotics missions in Central America. Following his operational tour, Chris worked in the Pentagon as Aide to the Chief of the Naval Reserve. He holds degrees from the University of Illinois and Harvard Business School.
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