[Congressional Record (Bound Edition), Volume 149 (2003), Part 7]
[Senate]
[Page 9587]
[From the U.S. Government Publishing Office, www.gpo.gov]




  THE MOBILIZED RESERVE SAVINGS ACCOUNT ACT AND THE DEPLOYED SERVICE 
          MEMBERS FINANCIAL SECURITY AND EDUCATION ACT OF 2003

  Mr. NELSON of Nebraska. Madam President, we are all very proud of the 
outstanding service of our military personnel during a series of 
significant military operations. Our soldiers, sailors, airmen, and 
marines, both Active and Reserve, have responded admirably to our 
Nation's call to service. These brave military personnel have 
demonstrated superb service by their participation in Operation Noble 
Eagle, Operation Enduring Freedom, and Operation Iraqi Freedom. Since 
the 1991 Persian Gulf war, our personnel have served in a number of 
other contingency operations, including operations in Kosovo, Bosnia, 
Southwest Asia, and Haiti.
  For the most part, our service men and women serve without complaint. 
However, we know that continuous deployments create hardships for them, 
their families, and for employers of members of the Guard and Reserve 
who have been ordered to active duty. There is no way to remove all of 
the hardships that go with extended and dangerous military service, but 
we can make sure that they are adequately compensated when they do 
endure these hardships.
  The Personnel Subcommittee of the Armed Services Committee recently 
held two hearings that included testimony about our Guard and Reserve 
Troops. We learned:
  Although income loss data for current operations is not available, 
data for past military operations show that about a third of mobilized 
Guard and Reserve personnel have some income loss, a third have no 
change, and a third actually report an income increase. GAO reported 
that a DoD survey conducted in 2000 revealed that ``the average total 
income change for all members (including losses and gains) was almost 
$1700 in losses.'' Certain groups, such as self-employed reservists and 
medical professionals in private practice, reported greater income loss 
than the average estimated for all reservists.
  Reserve component members who have been mobilized are eligible for 
the same pay and benefits, health care, and family support as their 
Active component counterparts, although some of them face challenges in 
understanding and accessing their benefits. All of the services have 
programs in place to help the members and their families to obtain 
their benefits.
  Despite the isolated news reports about income loss, Reserve 
component leaders indicate that their service members are not 
complaining about income loss and that they are happy about being 
called up to do what they signed up to do.
  It is very important that we not create an income disparity whereby a 
mobilized Reserve component member would be paid more than his or her 
Active component counterpart of the same grade and experience 
performing the same duties.
  About a third of Reserve component members are involved in some sort 
of educational program. Some have reported difficulties in maintaining 
their educational status; loss of academic credits, scholarships and 
grants; and loss of tuition and other fees paid when they were ordered 
to active duty. Although many colleges and universities are providing 
relief, not all are.
  We also know that our Active component service members have been 
stretched with these frequent and lengthy deployments. Granted, they 
are in a little different circumstance because they volunteered for 
full-time military service, but these deployments are wearing on them 
and their families just as much as the mobilization affects Reserve 
component members and their families.
  With this in mind, I recently introduced two bills, the Deployed 
Service Members Financial Security and Education Act of 2003 and the 
Mobilized Reserve Savings Account Act.
  Deployed Service Members Financial Security and Education Act of 2003 
is designed to compensate both Active and Reserve military personnel 
for frequent and lengthy deployments. It will authorize a new special 
pay of $1,000 per month for:
  Active and Reserve component military personnel who are deployed for 
191 or more consecutive days;
  Active and Reserve component military personnel who are deployed for 
401 or more days out of a rolling 730 day period; and
  Reserve component military personnel who are mobilized for a second 
time within a year of being released from and earlier call-up.
  This bill will also amend the Soldiers and Sailors Civil Relief Act 
to protect the educational status and tuition payments of service 
members ordered to active duty and it will limit interest rates on 
their student loans while on active duty.
  The Mobilized Reserve Savings Account Act will authorize a pretax 
savings plan for Guard and Reserve members that they can use to 
supplement their military income when they are ordered to active duty. 
This will serve as an incentive for those who know that their income on 
active duty will be less than their normal income.
  These bills are relatively modest proposals that will assist our 
service men and women who are asked to spend the most time away from 
their homes and families. It is the least we can do.
  I would like to end my remarks by also, once again, thanking all the 
members of our armed services and their families for the sacrifices 
made to defend this nation. Your efforts have not gone unappreciated by 
the folks back home.
  I ask that the proposal be printed in the Record. The proposal 
follows.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                Proposal

       A new special pay of $1000 per month for lengthy or 
     numerous deployments for:
       Active and Reserve Component members who are deployed for 
     191 or more consecutive days,
       Active and Reserve Component members who are deployed for 
     401 or more days out of a rolling 730 period, or
       Reserve Component members who are mobilized for a second 
     time within a year of being released from active duty.
       Amend the Soldiers and Sailors Civil Relief Act to protect 
     the educational status and tuition payments and limit the 
     interest rate on student loans of service members called to 
     active duty.
       Authorize a new 401(k) type plan where members of Reserve 
     Components can invest pre-tax dollars that can be withdrawn 
     to supplement military income when member is mobilized or 
     completes his or her military career.

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