Veterans Affairs: “Gray Area Retirees” — Issues and Related Legislation

Douglas Reid Weimer
Legislative Attorney

The United States Department of Veterans Affairs (VA) provides a broad range of benefits and services to American veterans and to certain members of their families. In addition, the Department of Defense (DOD) offers a variety of benefits to veterans who are also military retirees. When members of the National Guard or the Reserve who have not yet reached age 60 retire (usually after at least 20 years of service), however, they are not entitled to certain federal benefits, including health care. These military retirees are commonly known as "Gray Area Retirees" (GARs). These persons may not necessarily meet the relevant statutory definition of "veterans" for VA benefit purposes, nor are they eligible for DOD health benefits until they are eligible for military retired pay at age 60.

In order to be eligible for most VA benefits, the claimant must be a veteran, or in some cases, the survivor or dependent of a veteran. However, not every person who has served in the military is considered to be a "veteran" for the purposes of VA benefits. The concept of "veteran" is defined by federal statute and includes various criteria, such as discharge status, "active" service, time of service, and length of duty.

Based upon their military service and the eligibility criteria, it may be difficult for members of the National Guard and members of the various Reserve Components to qualify as "veterans" for purposes of VA benefits. Therefore, not every member of the Guard or the Reserve will be considered a "veteran" for the purposes of VA benefits.

Congressional interest has focused on this group of military retirees, and several bills were introduced in the first session of the 111th Congress which would provide certain benefits to this particular group of military retirees. Section 705 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) provides TRICARE Standard coverage (for purchase) for certain members of the Retired Reserve who are qualified for a non-regular retirement, but are not yet age 60 (GARs). Implementation of this program is in progress, and it is expected to be operational in the fall of 2010. .


Date of Report: June 21, 2010
Number of Pages: 9
Order Number: R40815
Price: $29.95

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