WASHINGTON — Even as it faces budget cuts and forced employee furloughs, the Pentagon is spending nearly a $1 billion a year on a program that sends unemployment checks to former troops who left the military voluntarily.
Unemployment Compensation for Ex-Servicemembers, a Labor Department program, is a spinoff of the federal-state unemployment insurance program. The Labor Department says the overall program is meant to help "eligible workers who are unemployed through no fault of their own" such as during layoffs.
But eligibility for the military compensation requires only that a person served in uniform and was honorably discharged. In other words, anyone who joins the military and serves for several years, then decides not to re-enlist, is potentially eligible for what could amount to more than 90 weeks of unemployment checks.
The program's cost rose from $300 million in 2003 to $928 million last year
The program for former military members started under a 1958 law aimed partly at helping troops transition from life in uniform to the private sector. Unlike the larger U.S. unemployment insurance program, there is no paycheck deduction from troops to fund the military one. In the private sector, employers pay a tax to fund compensation checks; in the military program, the service branches are the employer.....snip~
Pentagon spends nearly $1B a year on unemployment - U.S. - Stripes
The Associated Press Published: March 15, 2013<<<<< More here!
One factor was due to the reserve and guard units going active and then getting deactivated. Which added more to the rolls. Thoughts?