To receive payments, reservists must be ordered to duty in support of war, national emergency or to augment active forces for an operational mission. Benefits are not paid to those who volunteer or are called to duty for training. Those currently on active duty are not eligible for the program until they are released from active duty. Benefits can be received for up to one year or a maximum of 12 months during any 18-month period. Eligibility for benefits begins at the end of the first payroll month with the first payment occurring at the end of the second payroll month of covered service.
Payments are subject to tax withholding.
After reservists receive written notification of the offer, they have 60 days to decide on the coverage, or to decline. The insurance is considered automatically declined after 60 days. Under current legislation, reservists will have only this one opportunity to enroll. The last two exceptions are provided that the member did not previously decline coverage. The insurance program results follows a survey which revealed about two-thirds of the nearly 250,000 reservists activated during the Persian Gulf War suffered economic losses because of reduced income.