In our last article we provided information about the changes taking effect due to sequestration.  Here, we will share general tips containing specific guidance on ways to deal with sequestration changes.  Read the following tips carefully, and find help with implementation from your network, including For Love of Country.  Some of these tips will merely require your time while others will also require financial changes.  Use these five tips and your ability to adapt to overcome sequestration.

1) Research: Do your homework on the legislation and the resulting rules and laws.  We are not the only source of information.  Seek relevant information from the VA and veterans groups.  Sequestration will likely have an impact on current military heroes, veterans and families, however.  As you acquire information your fears will subside, and you can continue to move forward with the next step.

2) Reevaluate Your Plan: The above research will guide your new life plan.  Consider your current household budget, health insurance, paycheck withholding, and estate/will plan.  As a start, visit our Links page to find less costly professional planning assistance from law schools and nonprofits.  Check out new additions to our links page at http://wtc.army.mil/about_us/wtc.html (Warrior Transition Command) and http://www.armymwr.com.  Ask questions to determine the right professional for your situation.

3) Get Organized: At the beginning of the year, we have the opportunity to start anew.  If you are leaving the military, you must stay organized to accomplish a smooth transition.  It does not require a professional to get organized.  Buy a folder and add it to your safe or lock box to protect important documents.  Establish a routine to backup important documents on a free cloud and/or zip drive.  When employers and insurance carriers request your military information, you will have it ready to send in a timely fashion.

4) Be Persistent:  Rome was not built in a day, and it was not built by one person.  There will be obstacles to implementing life changes.  Make the difficult decisions using others as sounding boards.  Remember to seek advice and help from your network of family and friends.  As you transition into civilian life, utilize the tremendous social network available on veterans websites and professional websites including www.linkedin.com.  

5) Start Today: It's the beginning of 2013. The beginning of the year is always a time for resolutions.  Doing a little each day and week will lead to a successful transition.  In addition, feel free to ask general questions and share your new found knowledge in our NEW Community Forum.

Also see our financial resources article at http://www.forloveofcountry.net/1/post/2012/09/three-apps-for-managing-money.html.  

What do the terms "to sequester" or "sequestration" mean to the military?  These terms generally mean to remove (property) temporarily, or to keep separate or apart (Sources: Dictionary.com and Law.com).  Politicians and the media used these terms often during the past couple months because of the relevance to the fiscal cliff problem.  

Let's dig a little deeper into why sequestration is relevant.  According to the Congressional Report Service, "sequestration" is a process of automatic spending reductions ... first authorized by the Balanced Budget and Emergency Deficit Control Act of 1985.  More recently, Congress included sequestration as an enforcement tool in the Budget Control Act of 2011 (BCA), and as a result, if Congress failed to act or appropriated more discretionary spending than allowed then sequestration would reduce discretionary spending.  Because Congress did not act on January 15, 2012, by law, the first automatic sequestration cuts would take effect on January 2, 2013 (Source: FAS.org). 

Did the recent actions of Congress prevent sequestration of all property and spending relevant to the military or its members?  Not really.  Details of the Budget resolution are still coming out since it was drafted on the eve of its passage, but we searched for recent examples of cuts to Department of Defense appropriations.  We found reports that "Due to the cliff agreement, overall Pentagon cuts will be smaller – $42.7 billion in 2013. But after 2013, cuts would be the originally written $54.7 billion a year until fiscal 2021." (Source: http://blogs.marketwatch.com/election/2013/01/11/how-the-sequester-would-cut-spending)  

The fiscal cliff problem clearly sparked the discussion of Department of Defense cuts, but will the affects of these cuts trickle down to be felt by current service-members and veterans?  Initially, the reports are the deal spared programs including Social Security, Medicaid, food stamps and veterans’ benefits, however.  All Americans will see an immediate increase in their taxes due to the end of some Bush era tax cuts.  Tax increases are unlikely to be the only changes.  

During the debate on the debt ceiling, some congressional members intend on revisiting the possibility of cutting entitlement programs, and possibly TRICARE  and veterans benefits.  Some cuts began already, specifically, TRICARE Prime is no longer available to veterans living over 40 miles from bases, and so these veterans must switch to TRICARE standard.  Sequestration and any deal on the debt ceiling will likely force additional changes in military benefits.   Stay tuned to www.forloveofcountry.net for a report on any future changes.

Disclaimer:  This article is intended only to provide general legal information.  It does not create an attorney-client relationship.  Consult a licensed attorney in your area if you are in need of legal advice. 

There is a new way to manage finances if you have access to a smartphone or tablet.  It's the Military & Money App just released from The Better Business Bureau and The McGraw-Hill.  A couple of other more tested apps are also available to assist with managing money.

According to the App Store, Military & Money "includes training videos, articles and interactive tools to help manage credit cards and credit scores, pay off debt, create an effective budget and establish a savings plan.  Best of all the app is FREE.  Even if you do not have access to the app store, Military & Money is available online at www.militaryandmoney.com.  

There are no ratings posted on the app store website, however.  Several websites have provided positive feedback on the app, including http://www.forthoodsentinel.com/story.php?id=9764 and http://www.militarysaves.org/blog.  Let us know what you think about the app by leaving comments below. 

Several other sources could be helpful to complement this new app.  For instance, USAA offers a free app to manage finances and make insurance claims.  In addition, Navy Federal Credit Union provides a free highly rated app to help with banking and finances.  Check out our article for guidance regarding property tax appeals at http://www.forloveofcountry.net/1/post/2011/09/understand-the-tax-code-and-the-assessment-appeal-process.html. 

All of these sources are good ways to develop a plan and stay organized.  It is also important to consult a legal, investment and tax professional during any change in life circumstances.

Disclaimer: This article does not constitute an endorsement of any products.  For Love of Country is not affiliated with and does not receive any compensation from the companies mentioned in this article. 

We know not everyone is interested in climbing Mt. McKinley like the Wounded Warriors in our articles available at http://www.forloveofcountry.net/1/category/fitness/1.html.  For those looking for a family experience, there is a new nonprofit sports camp opening in October 2012 in North Carolina.

According to a camp representative, "Our mission is to reconnect wounded warriors and their families in an environment that is therapeutic, builds a healthy spirit and solid family relationships."   There appears to be no fee to attend the camp, and the organization claims to have received 501(c)(3) status so donations can be made on its website.   More information about the camp is available at www.eaglerockcamp.org.  If you are a Wounded Warrior interested in attending the camp, use their Contact Us tab on the above website to request an application.   

If you are interested in researching the status of a charity as a 501(c)(3), then request from the charity their entity name submitted to the Internal Revenue Service.   A search of 501(c)(3) organizations is available at http://www.apps.irs.gov/app/eos/.  It is often a lengthy process to receive official 501(c)(3) status from the IRS.  Once the organization receives 501(c)(3) status, donations "are deductible as charitable contributions on the donor's federal income tax return." (Source: http://www.irs.gov/publications/p557/ch03.html#en_US_2011_publink1000200026)

Disclaimer: For Love of Country is not affiliated with any organization mentioned in this blog article.  This article does not constitute an endorsement of any organization referenced in this article.  We encourage those interested in donations to research charitable organizations by requesting information from the organization and using tools available on the internet.

Last week we considered the protections afforded to recruits and officers.  In this article we look for potential benefits provided to employers of the recruits and officers under the Vow to Hire Heroes Act of 2011 and the tax code.   An employer can likely claim the Work Opportunity Tax Credit (WOTC) if an employee fall into a certain group.    Figure out whether your company might qualify by applying the analysis below to your situation.

Second Issue:
Do the new Acts apply to provide benefits (i.e. Work Opportunity Tax Credit) for employers of recruits and officer candidates, before and/or during training?

Analysis:
One crucial element to the analysis of eligibility for benefits is likely the classification of the military's officer or recruit.  USERRA provides a useful definition as follows:

(13) The term "service in the uniformed services" means the performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, a period for which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to any such duty, and a period for which a person is absent from employment for the purpose of performing funeral honors duty as authorized by section 12503 of title 10 or section 115 of title 32. 

Under the above definition, it's likely an employer will be eligible if it employs a recruit or an officer candidate training for reserve duty.  The credit(s) should be available to employers of recruits or candidates attending college if these persons fall into "inactive duty training."  

The WOTC eligible groups also include a "16-17 year-old summer youth -- individual who works for the employer between May 1 and September 15, and lives in an [Empowerment Zone]."  See Form 8844 below   These Empowerment Zones include Chicago, IL, New York, NY and Fresno, CA.  As a result, employers can probably claim the WOTC for a recruit falling into this age group located in an Empowerment Zone.  The length of employment is likely a factor when claiming the WOTC.  For profit and tax exempt organizations both qualify for the WOTC.  For more information , read the WOTC Veterans Brochure available at http://www.doleta.gov/business/incentives/opptax/.

Conclusion:
To determine eligibility for benefits, employers should use the definition of "service in the uniformed services."  If an employee informs your company of their military application, use the analysis provided in this two-part series.  The threat of lawsuits should be enough to persuade your company to retain the military applicant, but remember there are advertising and tax benefits available to employers of service members and veterans.

Source: U.S. Department of Labor Publications

Source: U.S. Internal Revenue Service Forms

Disclaimer:  This article is intended only to provide general legal information.  It does not create an attorney-client relationship.  Consult a licensed attorney in your area if you are in need of legal advice. 

Times sure have changed since a recruiter told a recruit to get their affairs in order and report back in a week or less to ship to basic training.  Today, it is not unusual for recruits and officer candidates to wait for 6 months or more to go to basic training or Officer Candidates School (OCS).  Many of these future military heroes will graduate and face a difficult job market while they wait to ship.  If they become employed, are their jobs protected under current laws or court opinions?   In addition, a significant number of lieutenants will return home for several months at a time between phases of training.  Did lawmakers intend the new laws to extend to future military heroes like the benefits and protections received by reservists?   

First Issue:
Does USERRA and the case of  Staub v. Proctor Hospital apply to protect the jobs of future recruits and officer candidates?

Analysis:
The relevant section of USERRA is Title 38 U.S.C. 4301-4335, which provides in pertinent part "(a) that a person who ... applies to perform ... service in a uniformed service shall not be denied initial employment, ... retention in employment ... on the basis of that ... [person's] application for membership ..."  It further prohibits this type of action by a person's employer unless the employer can prove it would have been taken in the absence of the application for membership. See below the text of Title 38 U.S.C. 4301-4335 (a - c)   The case of Staub v. Proctor Hospital involves a similar situation in which the court interpreted this section of USERRA.

At the beginning of 2011, Staub was one of three U.S. Supreme Court decisions related to the military.  The U.S. Supreme Court ruled in favor of Army reservist Vincent Staub, who was fired in 2004 from his civilian position at Proctor Hospital in Peoria, Illinois.  He claimed the firing was related to his supervisor's negative comments about his military obligations, and therefore, he sued the hospital under the Uniformed Services Employment and Reemployment Rights Act (USERRA).  This Act prohibits denial of re-employment, retention in employment, promotion or any benefit of employment based on a reservist’s military obligations. USERRA requires employers to provide Reservists with time away from their jobs to perform military duty.    See our article and the attached text of Staub at  http://www.forloveofcountry.net/1/post/2011/12/cats-paw-in-staub-v-proctor-hospital.html.  


Based upon the decision in Staub, employers are also likely prohibited from firing a recruit, an inactive lieutenant or veteran with plans to return to military training.  Employers might not realize the amount of protection provided under the above section of USERRA, but Staub is a good reason for corporate counsel and HR to carefully analyze every situation.   In the past an employer would have attempted to keep a trained individual for as long as possible, however.   The substantial number of qualified unemployed individuals might prompt an employer to fire a recruit or person in training limbo to hire another individual.  This hypothetical employer's action is likely discrimination because these persons are protected under USERRA Title 38 U.S.C. 4301-4335.  Check back next week for Part 2 of this series in which the issue is whether new Acts apply to provide benefits for employers of recruits and officer candidates?

Source:  U.S. Department of Labor, http://www.dol.gov/vets/usc/vpl/usc38.htm#4301 Title 38 U.S.C. 4301-4335 

(a) A person who is a member of, applies to be a member of, performs, has performed, applies to perform, or has an obligation to perform service in a uniformed service shall not be denied initial employment, reemployment, retention in employment, promotion, or any benefit of employment by an employer on the basis of that membership, application for membership, performance of service, application for service, or obligation.

(b) An employer may not discriminate in employment against or take any adverse employment action against any person because such person (1) has taken an action to enforce a protection afforded any person under this chapter, (2) has testified or otherwise made a statement in or in connection with any proceeding under this chapter, (3) has assisted or otherwise participated in an investigation under this chapter, or (4) has exercised a right provided for in this chapter. The prohibition in this subsection shall apply with respect to a person regardless of whether that person has performed service in the uniformed services.

(c) An employer shall be considered to have engaged in actions prohibited-

(1) under subsection (a), if the person's membership, application for membership, service, application for service, or obligation for service in the uniformed services is a motivating factor in the employer's action, unless the employer can prove that the action would have been taken in the absence of such membership, application for membership, service, application for service, or obligation for service;  

Disclaimer:  This article is intended only to provide general legal information.  It does not create an attorney-client relationship.  Consult a licensed attorney in your area if you are in need of legal advice.