Military
Families Soldier Through Lives On Lower Incomes
Monday, March 03, 2003
Getahn Ward
The Tennessean
''Most of the Reservists, quite frankly, never thought they were going to get called,'' said Howard Dvorkin, president of Consolidated Credit Counseling Services, a Florida-based nonprofit organization. ''It's a sacrifice for the families and even in their careers.''
A helping hand
To cope with budget issues, the Horvaths are pursuing benefits under federal law that protect deployed Reservists. Among moves, the couple last week began informing their mortgage and car lenders of Chuck's active-duty status. The Soldiers and Sailors Civil Relief Act of 1940 requires lenders to cap at 6% the interest rates on most existing loans during service. Soldiers also receive protection from eviction if their rent is $1,200 or less, and a delay of civil court actions including bankruptcy, foreclosure or divorce proceedings. Horvath expects interest on one of his two mortgage loans to drop by a percentage point.
The benefits can be greater, however. Ann Story, a nurse at Saint Thomas Hospital in Nashville whose husband is on duty in Kuwait, for example, has seen the interest charged on one credit card decrease from 17% to 6%. Unlike the Horvaths, Story's family income remains nearly unchanged despite her husband being only on military pay. But there still are challenges. His paycheck now comes twice a month vs. weekly before he was activated, she said. ''There's some budgeting - some rearranging,'' said Story, who helps set up support groups for families of Reservists.
Another issue for Story involves keeping an ample amount in the couple's checking account so checks written by her husband in Kuwait to access money don't bounce, she said. Among sources of aid to families facing financial challenges are programs that include the Army Emergency Relief Fund. The relief program pays for car repair, utilities, food or other family emergency financial needs. At the Fort Campbell Army post outside Clarksville, Tenn., financial counselor Betty Geren has seen an increased demand for assistance and budgeting help, especially from Reservists and National Guard members. She attributes the rise to more of these soldiers being mobilized compared with 1991 for the Persian Gulf War. Last year alone, $2.5 million in money from the relief fund was distributed through her Fort Campbell office, Geren said. ''They're in a world of hurt,'' she said of some Reservists who face difficulty balancing finances with the decline in pay.
To pay or not
One favorable note for Horvath is that under the Uniformed Services Employment and Re-employment Rights Act of 1994 he's due a similar-paying job at Universal upon his return from active duty. Horvath, however, still awaits his employer's decision on whether- it will pay him his full salary, the difference between what he is paid and the military salary, or nothing at all. ''As a big company, they're looking at the big picture,'' he said, saying he understands Universal's global presence requires it to develop a unified policy. ''They have to do their analysis.' The decision Universal faces is like that of most employers, which are not required to compensate Reservists while they are away.
The state of Tennessee, for instance, will pay Reservists the difference between their state salary and active-duty pay. With that move, some expressed hope other employers would follow. A random survey of several of Nashville area's largest employers show most already pay the difference in salaries for varying periods. Companies reporting that they pay the difference in an active-duty employee's salary include Ingram Industries, Saint Thomas, Kroger, Nissan, Dell Computer, Bridgestone Americas, BellSouth, Saturn Corp. and HCA Inc. Of those surveyed, Vanderbilt University and CBRL Group said they don't offset a cut in pay but provide some employee benefits while on duty. Gaylord Entertainment said it is reviewing company policy.
Dvorkin of Consolidated Credit views those who offer to pay as exceptions. ''In a down economy, everybody's watching the nickel,'' he said. ''Let's face it, you've got to pay somebody to do that job.'' For Horvath, the alert to his unit to prepare for service came during a Valentine's Day staff meeting at his Music Row office. It wasn't a surprise, given notices sent to other units, he said.
