McNerney Continues to Push for Fairness in Veterans Benefits

Press Release

MCNERNEY CONTINUES TO PUSH FOR FAIRNESS IN VETERANS BENEFITS

Today, in a continuing commitment to honor our nation's veterans, Congressman Jerry McNerney (CA-11) backed two measures to ensure America's veterans receive the benefits they deserve. Rep. McNerney supported bills to ensure service members receive the full enlistment bonus they were promised and to permanently extend $2 billion in tax breaks to veterans and military families

Both the Veterans Guaranteed Bonus Act, H.R. 3793 and the Heroes Earnings Assistance and Relief Tax Act of 2007, H.Res. 884, passed with unanimous support.

"Our men and women in uniform - and our nation's military families - have made great sacrifices. Some have even made the ultimate sacrifice," Rep. McNerney said. "As a nation, we owe those veterans and their families not just our gratitude, but also all the benefits they were promised when they signed up as well as an easing of the financial burden of repeat deployments."

H.R. 3793 addresses a bonus problem highlighted by the Dole-Shalala Wounded Warriors Commission, impaneled after the revelation of deplorable conditions and excessive red tape at Walter Reed Army Medical Center.

Current Department of Defense policy prohibits bonuses from being paid in full to service members unless their entire military obligation is fulfilled - even when early discharge comes as a result of a service-related injury. This has prevented thousands of combat wounded warriors from getting the bonuses that they have earned and deserve. In particular, the bill:

* Guarantees that service members who die or are discharged for disability will not be required to repay any portion of their bonus;
* Mandates the DoD to provide full bonuses to any service members who die or are discharged for disability; and,
* Requires bonuses to be paid within 90 days of discharge.

"When a service member is injured in combat in service to our nation, it is outrageous that they could be denied the sign-up bonus they were promised - and even more insulting that they could be asked to pay back all or part of that bonus," Rep. McNerney said.

H.Res. 884, Heroes Earnings Assistance and Relief Tax Act of 2007, makes permanent a measure that permits the consideration of combat pay as earned income for the purpose of determining eligibility of the Earned Income Tax Credit. This provision is set to expire at the end of the year, denying needed tax relief to military families if not renewed.

The bill would make thousands of veterans eligible for low-interest loans by making permanent and modifying qualified mortgage bonds used to finance residences for veterans.

Additionally, the legislation makes sure that reservists called up for active duty do not suffer a pay cut by providing a tax credit of up to $4,000 for small businesses who continue to pay their National Guard and Reserve employees when they are called up to serve.

H.Res. 884 also takes other steps to relieve economic hardships for military families, like:

* Permitting active duty reservists to make penalty-free withdrawals from retirement plans;
* Permitting an employer to make contributions to a qualified retirement plan on behalf of an employee killed or disabled in combat;
* Counting extra pay for active duty military personnel from their previous civilian employer for retirement purposes; and
* Permitting recipients of military death benefit gratuities to roll over the amounts received, tax-free, to a Roth IRA or an Education Savings Account.

"With a wage earner serving overseas, sometimes for multiple deployments, soldiers and military families can often face undue financial hardships," said Rep. McNerney. "We should do all we can to ease that financial burden."

H.Res. 884 combines several stand-alone bills, including H.R. 3529 the "Tax Relief for Americans in Combat Act," of which Rep. McNerney was a cosponsor.

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