Reservists Being Overpaid

THE DAILY FED

Reservists Being Overpaid

A General Accounting Office study made at Schroeder's request found that military reservists in seven states failed to report over $7 million in military pay as required by unemployment regulations. State and federal governments then overpaid the reservists $3.6 million in unemployment benefits.

The GAO study found that some reservists may be unaware of their obligation to report their military income and that many states do not ask if an unemployment applicant is a reservist.

"Between states not asking and reservists not reporting, the taxpayers are losing millions of dollars," Schroeder said.

The GAO study examined data from seven states, representing only 27 percent of U.S. military personnel, so the total overpayment may be much greater. --Reuter