New York City’s Reservists Are Asked to Return Iraq Pay

[Barrett808]

New York City’s Reservists Are Asked to Return Iraq Pay
By ANDY NEWMAN
Published: September 23, 2006

When they were called up for military service in the wake of 9/11, hundreds of uniformed city workers in the Reserves faced the suspension of their city health and pension benefits. The city offered them an option: it would keep paying their salaries and continue their benefits, but when they returned they would have to repay the city their city salary or their military pay, whichever was less.

On its face, the offer made sense. And many reservists had only a few days to get their affairs together before shipping out — hardly enough time to consult accountants. Nearly all took the deal. As the war dragged on, more than 1,600 city employees, mostly police officers, signed up for the benefits program.

Now the bills from the city are coming due, for far more than many veterans imagined they would have to pay — as much as $200,000 — and often for more money than they ever received.

The city is demanding that the veterans repay their gross salaries, even though they never saw about a third of the money, which went for taxes and other deductions. The commissioner of administrative services, Martha K. Hirst, said veterans should be able to get back the difference between gross and take-home pay by amending their tax returns. But several tax accountants said the city had created an accounting quagmire.

(more)

http://www.nytimes.com/2006/09/23/nyregion/nyregionspecial3/23pay.html

[China_cat]

1. More ways to support the troops.

:sarcasm:

[SaveOurDemocracy]

2. and for those who died serving their country...

... will they rob their graves??

So, I guess, Saint Rudy Giuliani set this program up? It never ceases to amaze me just how low they'll go.

[Monkeyman]

3. Yep they never have supported the Troops

And when they return they face a VA $3 Billion short .

http://www.vawatchdog.org

[Benhurst]

4. This would be funny if it weren't so sad.

[bluestateguy]

5. Notice that Bloomberg does this a year after the mayoral election

Ahem.

[Kolesar]

6. Typical RW treachery

How about this: "an accounting quagmire". Was the author Newman committing a Freudian slip or dropping in an anti-war comment? :evilgrin:

[kelliebrat]

7. This is unfrickenbelievable

These people have no shame :mad:

[N90ATC]

16. Cruel

What about "supporting teh troops"? Is that just a sticky ribbon?

[salin]

8. woohoo bloomie for indie pres...

isn't one of the high profile DLCers (strategists) who is working with Lieberman, also in talks with Bloomberg about a possible 'Independent' run for president? Sure this will work in bloomie's favor :sarcasm:

[NYC]

9. Recommended.

[SquireJons]

10. Doesn't this mean that they have been receiving double pay?

If so, then they should pay back the net of the extra pay that they received, unless NYC offered to pay them while they were in Iraq, which they didn't. By making this offer to city employees, NYCy actuallly did them a huge favor, mainly due to health insurance. All I see here is a hassle, not the typical "screw everybody" GOP tactic.

[RamboLiberal]

12. That may be - But NYC ought to act like some employers did

and continued paying the salary and benefits of these reservists. Also it should not have waited several years before going after the money.

And it was probably dumb on the employees part assuming some kind of "hero" status would prevent the city from coming after them.

Under the terms of the deal, nontaxable military housing and food allowances also count as military pay. Those allowances can nearly double military pay, in some cases making it more than city pay. Many veterans who did not read the fine print said they thought they would have to repay only their modest military take-home base salary.

On Monday, the City Council will consider a resolution by Councilman Michael E. McMahon of Staten Island to ask Mayor Michael R. Bloomberg to stop counting military allowances as income.

Now this part ought to be taken out of the equation - that IMHO is really stooping low.

The other problem, Mr. Gitel said, was that there was no way for the employee to get back the extra Medicare and Social Security contributions she made while drawing two salaries. These shortfalls could easily total $10,000, he said.

And somehow they need to take in to account the tax money the Reservists can not get back.

Just my opinion, but the city ought to just find some way to write this off. If I was one of these people I sure wouldn't be inclined to put my life on the line for NYC if they were dunning me to get this money back.

[nedbal]

13. I as a NYC union steward have worked with some that were called up.....

While not in the reserves myself, I have answered many a question about pay and benefits for those called up. ANY that are now claiming they are shocked by having to pay back their military pay to NYC while getting their full base pay and benefits must have a IQ of 62. They get 22 days a year for normal military reserve leave training (above normal vacation and sick). If called up Rudy Giuliani for the first gulf war also gave them full pay and benefits. more recently Bloomberg also did this policy. Yes they may have to do more on their IRS forms at the end of the year. Understand many/most stay in the reserves due to the extra reserve pay and reserve retirement they get, not thinking forward that they may actually get called up for a action such as Iraq.

I'd like to hear of a better deal anywhere for those in the guard or reserves.

[intheflow]

11. Can't believe how shamefully this country treats its vets.

So many people went into the Reserve to get a few bucks for college, and totally bought the line about only having to serve a weekend a month. Suddenly they're being sent into active war zones with inadequate armor, coerced into staying for additional tours of duty, and now getting screwed by their employers. Unbelievable! :grr:

[samsingh]

14. the repugs don't care about our soldiers or their families

[acmavm]

15. They should only have to repay the money they actually recieved

from either NYC or the military. Taxes for fed and state shouldn't be held against them. But any payments they received should.

I understand supporting the vets and all that stuff. I just don't understand why every time something happens not matter what it is, someone turns on the 'support the vets' sign. They got double paid, they were offered a deal in order to keep much needed benefits etc., they took it. Many of them may not be accounting wizards, but I am sure that they did understand the meaning of the word 'repay' and the fact that they were getting two paychecks.

Just make them pay back what they actually got. That's fair.