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Most employers cover reservists’ “pay gap”

Two thirds of U.S. employers who responded to a new survey are either covering the “pay gap” between civilian and military pay for reservists or providing full pay for a period of time. The study by Buck Consultants, a subsidiary of Mellon Financial Corporation, examined how more than 400 organizations are managing compensation and benefits issues related to the war in Iraq.

     Of the employers with reservists on their payrolls, 83% reported that some number of their reservist employees have been called for active duty. Survey results showed that many of these employers are going beyond what is legally required by the federal Uniformed Services Employment and Reemployment Rights Act. The survey found that:

  • 54% provide differential pay for reservists, in most cases for six months or a year, and another 12% provide full pay for a shorter period.
  • 43% provide full medical benefits for a limited period of time, usually six months or a year.
  • 23% provide full medical benefits for the duration of military leave.

The In Times of War—Employers Respond: Operation Iraqi Freedom survey is available at no cost from Buck’s Benefit Survey Department at (201) 553-6400.