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Wait, the Pentagon Spends How Much Every Year on This Unemployment Program?

Mar. 15, 2013 1:14pm Becket Adams

You Wont Believe How Much The Pentagon Spends Spends Every Year On Unemployment

Getty Images.

Even as it faces budget cuts and 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.

“It eats away at other parts of the budget, and is for people they no longer have control of,” said Air Force veteran Joe Davis, a spokesman for the Veterans of Foreign Wars.

“Why are we spending so much on (the program) at a time when we can’t afford to build a new fighter jet?” said Samuel Wright, a former Navy lawyer who helps troops with employment and other legal issues.

Defense officials and outside experts have become increasingly concerned about the rising cost of the compensation program. And some believe it’s evidence of weaknesses in both the U.S. economy and military programs designed to help veterans find jobs.

Some military experts suspect the availability of the money may be discouraging some veterans from actively looking for work and thus falsely inflating data on their unemployment — data that shows higher joblessness for Iraq and Afghanistan vets than for older ones and for society in general.

Navy Lt. Cmdr. Nathan Christensen, a Pentagon spokesman, said a factor in the higher costs is the increased use of National Guard and Reserve units over the past decade for the wars in Iraq and Afghanistan. That is, once they were activated, came home and were deactivated, they were added to the rolls of ex-active duty troops.

Another factor could be the recession, which resulted in higher overall national unemployment rates, he said.

Nearly 120,000 people filed first-time claims for money in the military program over the last budget year, compared with 71,000 in 2008, the Labor Department says. Well over 515,000 have gotten compensation since 2008.

US Army SSG Andrew Warner of second Platoon Task Force 3-66 Bravo Company 172nd Infantry Brigade puts on his boots ahead of a mission at Forward Operating Base Kuschamond early on September 11, 2011, the tenth anniversary of the 9/11 attacks on the US. (Johannes Eisele/AFP/Getty Images)

Wright, now director of the law center at the Reserve Officers Association, says the payments “ought to be for people who are actively seeking re-employment – it’s not just free money.”

But it’s not solely the number of reservists activated that matters, but also how many know about, and claim, their legal right to go back to their former civilian employers after coming home from mobilization.

“I think one reason that a lot of (recent) veterans are unemployed and have great difficulty finding work is because employers are routinely violating” the law on returning troops and that too few are being prosecuted for it, Wright said. He says his law center gets more than 700 calls a month from people complaining about that or other employment or legal issues.

There are plenty of other reasons troops may not go straight from life in uniform to one in the private sector. The need for “down time” – particularly among those who saw combat — can be a huge factor in re-acclimating.

Some troops also find it hard to face civilian life after the more authoritarian and regimented style of the military.

And some may not want what’s being offered in the job market.

“A lot say, ‘Hey, I joined the Army or Marines so I could get out of working at McDonald’s,’” Wright says.

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.

Claims are filed with the states. The Labor Department then tallies compensation sent to former military members and sends the bill to their individual service branches, as well as to the National Oceanographic and Atmospheric Administration and U.S. Public Health Service Commissioned Corps, where a smaller number of former employees also are covered.

U.S. Army soldiers stand together as they salute during the memorial service that President Obama and first lady Michelle Obama attended in honor of the 13 victims of the shooting rampage in this Nov. 10, 2009, file photo in Fort Hood, Texas. (Joe Raedle/Getty Images)

Former military members are subject to the same state requirements as others when they apply to a given state for the money. All states have a requirement of some kind that recipients search for work while getting compensation, the Labor Department says. States vary in the types of search activity needed and the effort required, with some, for instance, requiring two job interviews within a certain period or different types of documentation on the search.

The unemployment rate for post-9/11 veterans is 9.4 percent, compared with 7.7 percent among all Americans, and has been higher for some years.

–

The Associated Press contributed to this story.

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Comments (30)

DZ-015
Posted on March 17, 2013 at 7:28pm
This article contains errors which have affected the thread of comments on it. Veterans’ unemployment compensation is not an insurance program like regular UC available to former private sector workers. There is no deduction from the paychecks of either service members or civilian workers (except for a few state programs). The state programs levy taxes on a portion of the state payroll to build up a trust fund to pay claims. Veteran’s unemployment compensation as well as federal civilian worker UC comes straight from the Treasury to pay claimants. The duration of benefits is governed by the law of each jurisdiction in which the claim is filed, usually a maximum of 26 week. Federal extensions of benefits have pushed that up to over 90 weeks, based on the local rate of unemployment. They also come straight from the Treasury. Veterans who have served a set amount of time a will receive benefits if they meet the local weekly eligibility conditions. It simply does not matter if they chose not to reup or if they were discharged for military rule violations which did not result in a discharge under less than honorable conditions.

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wcsmithiii
Posted on March 17, 2013 at 5:15pm
Now this is just a mite confusing. A law enacted in 1958 entitles discharged military members to collect unemployment ( a service similar there to) for a year? Are you sure about that year? If that be true then once again someone, other than re-enlistment personnel, lied to me. When I got out on 31 Dec 1983, I was informed that SOME States had such a program but not all. Sure would have been nice to feed my family better while I went after higher education

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Fitzzz
Posted on March 17, 2013 at 3:36pm
I don’t have a problem with this program
If you were an ex service member, you deserve to be compensated, we pay very low wages to people who do a lot for this country
What I do object to are people who just put in enough time, so they than get fired, and start to collect

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Mike Austin
Posted on March 17, 2013 at 11:23am
When I got out of the Army, I was given unemployment. It helped alot. I think anyone from a non-combat environment can use 8 weeks, 26weeks for a combat vets. It can take time to adjust and we owe them a debt of gratitude and support. We do not owe places like Eqypt squat. Why do we give them money?
We also don’t owe anyone an obamaphone. They want extra money for this program? Start there.

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- RDavis49
  Posted on March 17, 2013 at 2:07pm
  I think this program is a great program, especially for those who have service connected issues that preclude them from easily finding a job. I agree Mike Austin….. if our elected elite want to give away millions and billions of our TAXPAYER DOLLARS, then why the hell not hand it out to those who served this country instead of $250 million to the Muslim Brotherhood, along with American weapons, all of which will eventually use against our own troops, and/or the $2 million to the Pakistanis for their SASAME STREET tv show that more than likely went to fund the Taliban ? American Politicianshave got to be the stupidist, most reckless and most ignoramus bunch of fools on this planet. They bitch about the budget, then give away money like candy to countries that would like nothing more than to see America wiped from the face of the earth. AND WE VOTED THEM IN THERE on their campaign promises alone …… What the hell does that say about us?
  
  Report this comment
tootsie roll
Posted on March 16, 2013 at 9:36pm
I rather see programs like the shrimp on the tred mill and the thousands of crazy programs that are
in our government. BTW pakaistan, and Egypt how about NOT giving them any more aid. Sounds FAIR to me. How about it Obama

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Wichita1
Posted on March 16, 2013 at 3:04pm
George, is that you? American jobs going to Brazil via taxpayer $’s. Layoff’s soon to come.
http://www.kansas.com/2013/03/15/2717629/kansas-congressional-delegation.html

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- CulperGang
  Posted on March 17, 2013 at 1:09pm
  speaking of Brazil they HAVE a booming economy. WHY? the globalist gave them out technology and jobs. The GLOBALIST=corporations working for the 1% dynastical families.
  
  Report this comment
Thedadde
Posted on March 16, 2013 at 1:04pm
I can’t imagine why o hasn’t already fixed all of this. He made many campaign promises that it would be fixed by now, by him!
“I will go over the federal budget, line by line, during my first term”
“I will cut the federal deficit by half, during my first term.”
“I will create millions of green jobs” assuming also, since he squandered billions, during his first term.
I can name at least 10 other campaign lies in his first term. For his second term, the lies were mostly put out there by his lapdog SQUIRREL! media. Too many to even count. Mostly about Romney, which the sheople also ate up. There is an app for your mobile device called Obama, In His Own Words, if you want to hear ALL of the lies, etc and it includes a whole lot more.
And the morons, lemmings and such, vote him back onto our golf course.

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davuf
Posted on March 16, 2013 at 10:39am
‘Unemployment checks to veterans who left voluntarily’ – meaning the pentagon offered these Soldiers a payout to leave early rather than stay on until retirement.

The whole budget debate is a fraud. No one can look at line items on a balance sheet and arbitrarily start decreeing one program is useless and another is noble. Accountability needs to be placed on the heads of these organizations to make these cuts in the manner which
1. focuses on the agency’s core mandate
2. Increases efficiency within the organization
3. minimizes impact on member/employee benefits, compensation etc.
4. If all programs are essential than the budget should be reduced by an equal amount – i.e. 1%, 10% or whatever.

Any Agency Head or department head who is unable or unwilling to make these cuts should be summarily dismissed and a new head installed.

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watashbuddyfriend
Posted on March 16, 2013 at 8:20am
It is fair, and fair enough for me! However, I am one that never received an unemployment check in my career! Was that avaliable in 1960? I sure could have used it while in college.

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majarmy01
Posted on March 15, 2013 at 9:06pm
Let’s see: There’s free Bama phones, millions of dollars spent on National Command Authority (NCA) vacations, free mail franking (anyone heard about email Congress/Senate???), at least $200K for NCA dedicated caligraphers, c.a. $50M for new TSA uniforms to name a few boon doggles.
BUT: People who voluntarily put their lives on the line getting a “few dollars more” being considered an outrage?
The American People and these outraged reporters, who must have graduated from the Pravda/ Izvestia School of Journalism don’t have the intellectual capability to judge right from wrong when it comes tell the difference between spending government money in a proper manner.

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- tootsie roll
  Posted on March 16, 2013 at 9:33pm
  Absolutely CORRECT. THE PROBLEM ON THE POSTINGS HERE is that since military service is NOT REQUIRED you have people posting who NEVER SERVED and do not understand what it is to give service to/for your country.
  
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dodgedart1966
Posted on March 15, 2013 at 6:40pm
I have no problem taking care of veterans, but, just how much abuse of this system is there? More than likely a lot. Every government program is abused and costs more than it should. There’s no accountability. Yet, we can’t find enough $$$ to allow tours of the White House, which we, the taxpayers, pay for?

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TNT38
Posted on March 15, 2013 at 5:35pm
Any Veterans here? @Huey private sector jobs don’t involve being blown up, shot at or risking your life year after year. If anyone deserves benefits for a year it is our Military! If you have a problem with this the private sector also doesn’t require you to live in a 300 man tent with double bunks 18 inches apart across the street from an un-treated sewer farm that stinks to high heaven. You also don’t have to eat MRE’s and get mortared 3 times a Day. So voluntarily leaving is a lot different than working at Burger king.

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- Disgusted_150
  Posted on March 15, 2013 at 8:26pm
  Hey bro, you and I both know that 90% of the military never faces the attacks or conditions you described. Being a vet doesn’t make you “deserving” of anything but respect. You already get paid to go to college (Post 9/11 G.I. Bill) which will assist in getting a job. You can use it for vocational schools too. You don’t leave the military to become a burden on the tax payer. I can see the merit in it a little, but cut it in half or make it for exactly 1 year after separation.
  
  Veterans still need to be productive members of society. If you want a paycheck, re-enlist. If you don’t, start lining up jobs or make plans before you get out. This type of thinking reinforces the victim mentality strapped to our vets these days.
  
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- jman-6
  Posted on March 15, 2013 at 8:39pm
  Well said TNT!
  
  Report this comment
- TRYLiBERTY
  Posted on March 19, 2013 at 11:43am
  I agree with @Disgusting; I left the Army after 8 1/2 years last April. I drew unemployment for one month before I felt disgusted by myself. I was able to find a job that can hold me over until I start school full-time. This is bloated, and does promote an entitled victim mentality.
  
  I received about $2k that month, and will be donating $2k to the liberty movement.
  
  Report this comment
hebashen
Posted on March 15, 2013 at 4:47pm
I could be mistaken but when I left the military in 1991 I only received 3 “compensation” checks due to my inability to find a decent job. At that time I had no idea that there was any type of program for ex-military. Later when filing taxes it worked against me. 90 weeks is excessive though.

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The-Monk
Posted on March 15, 2013 at 2:16pm
I wonder how many, if any, reenlist after the 90 weeks…

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- tightline
  Posted on March 15, 2013 at 4:18pm
  When I was still active I had alot of people leave and come back, some just could not get good paying jobs, some just missed the life.
  
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- The-Monk
  Posted on March 15, 2013 at 8:08pm
  Thanks tightline,
  
  I wasn’t being negative or positive about it. Was just wondering.
  
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- tootsie roll
  Posted on March 16, 2013 at 9:39pm
  How long have you served??? I think you just enjoy socializing on this site saying hello to your buddies. Why not post some seriously for a change?
  
  Report this comment
soybomb315_II
Posted on March 15, 2013 at 1:45pm
Ron Paul’s idea on what should have been done about sequester “cuts”
http://lewrockwell.com/paul/paul849.html

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Smokey_Bojangles
Posted on March 15, 2013 at 1:44pm
It is kind of hard to be upset by this when you take away their tuition but give it to Mexicans. After being told what to do,being shot at and the threat of perpetual war hanging over your head for ten years,I can’t begrudge someone a year and 10 months of unemployment benefits between jobs. That time is also used for retraining through grants. You go into the service at 18 and come out at 28 what job skills do you have? Rather it be a soldier collecting than bailing out a Union.

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huey6367
Posted on March 15, 2013 at 1:26pm
When you quit any private sector job, you are not eligible to collect any unemployment. This makes no sense but it is a government program. They never make sense.

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- Spike1911
  Posted on March 15, 2013 at 1:49pm
  Huey- You are correct, that is the way the program is supposed to work. I believe it should work that way, since that’s the way it was originally intended to be used. But, I’ve had several employee’s, who have quit on their own accord, collect unemployment after leaving us. If they apply 5 or 6 times for the unemployment, they automatically give it to them. It’s a terrible system.
  
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- huey6367
  Posted on March 15, 2013 at 1:54pm
  @spike
  
  I do my best to not collect unemployment. I have savings. I live a frugal life style. I avoid any handouts from everyone. I have gone hungry and I know how to stretch a penny. It is my belief that if everyone tried a little harder to be self sufficicent (not to my extent – just a little), this country would be in a much better place.
  
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woodyee
Posted on March 15, 2013 at 1:24pm
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.

WELFARE!!! Take the logical step and expand it to FBI employees, DHS employees, TSA employees, Border Patrol (God bless them) agents…go on down the line, man…this is the government using the power of their pen to STEAL from the working man.

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- TNT38
  Posted on March 15, 2013 at 5:45pm
  @woody have you ever served?
  
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