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October 04, 2001
Employers Not Skimping on Reservists' Benefits
Wit
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h thousands of military reservists being called to active duty, a new survey reveals that nearly half of employers intend to continue providing full medical benefits for reservists above and beyond what is required.

The consulting firm Watson Wyatt surveyed 51 employers, representing approximately 500,000 full-time employees, to determine what they're planning to do regarding the compensation and medical benefits of their reservist employees.

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) sets the minimum rights that a reservist employee is entitled to and requires employers to extend medical coverage for up to 18 months at the employee's expense.

But 47 percent of the employers surveyed said they would exceed this statutory requirement for reservists and their dependents by providing full medical benefits for some period of time.

In fact, 22 percent of employers offering full medical coverage plan to do so for at least five months and, in some cases, for more than nine months.

Fully eight in 10 employers had compensation policies in place for reservists, Watson Wyatt reported. When asked how they will handle compensation, 60 percent of employers reported that they plan to institute differential pay policies for some period of time to make up the difference between regular and military pay.

"Employers are focused on providing support for their employees - especially those called for duty," says Rich Murdock, a senior group and health care consultant with Watson Wyatt. "Providing the security of continued benefits can go a long way in maintaining employee loyalty and morale, and the cost for most employers is typically minimal, as reservists make up a small percentage of their total workforce."

"Employers are optimistic about their ongoing ability to support reservists," adds Murdock. "But employers should look at contingency plans to make sure they are adequately staffed going forward, and can deliver on the promise of continued pay and benefits."




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