Vets Get Pass On Housing Reimbursement

By REUVEN BLAU

On Veterans' Day, Mayor Bloomberg delivered some good news to military reservists working for the city, announcing that they would not be required to repay the housing and food allowances that they received while serving overseas.

The announcement comes after the reservists, many City Council Members, and law-enforcement unions complained of unfair calculations, which led to bills of up to $200,000 for some officers.

'Corrects Inequity'

"This modification will correct an inequity in what is among the most generous programs of its kind in the country," Mr. Bloomberg said in a statement.

Under the new calculations, the amounts reservists owe are expected to be reduced by 40 percent on average. The changes will cost the city an additional $24 million, brining the total cost of the program to approximately $50 million. Most of the approximately 1,720 city workers called up chose to remain on the city payroll while also receiving their military salaries to allow their families to continue to get the city's generous health benefits. Remaining on the city payroll also enabled the officers to continue to contribute toward their pension and deferred compensation plans.

The officers did so understanding that they would be required to repay the lesser of the two salaries upon returning from military service. But scores of the officers who served in 2002 only recently began receiving letters from the various agencies asking for the money to be returned.

In October, the Mayor directed DCAS to centralize oversight and administration of the program and review options for changing the Extended Military Benefits Package in light of some of the concerns expressed by the returning reservists.

Still on Hook for Pay

Based on DCAS's recommendation, repayments will be calculated solely on gross base pay that officers receive while serving in the military. The recalculations will also be applied retroactively to all workers who signed up for the extended benefits, according to the city.

Several City Council Members, union officials, and the affected officers have also urged Mayor Bloomberg to completely forgive the debt, as other large cities such as Los Angeles and Philadelphia have done.

But that does not appear likely considering DCAS has started a plan to provide free tax advice to assist eligible veterans enrolled in the city's Extended Military Benefits Package. The service will be provided by H & R Block and Jackson Hewitt Tax Service at any of their branches in the metropolitan area.