- Reservists receive drill pay during training days and not a full-time salary like active-duty soldiers. Reservists are often employed in the civilian sector or students. According to the Defense Finance and Accounting Service (DFAS), drill pay for a new reserve soldier with the rank of Private E-1, earns $44.62 per day of drill as of January 2010. A reservist with the rank of Sergeant E-5 with over three years of service earns $68.71 per day of drill, while a Captain with more than four years of experience earns $122.02 per day of drill.
- Members of the U.S. Army Reserve enjoy broad financial support to pay for education. As of December 2010, reservists qualify for the GI Bill to help pay for college expenses, which pays full-time students as much as $337 monthly for 36 months and up to $687 more depending on your job, rank and eligibility rules. In addition to the GI Bill, reservists receive tuition assistance for up to $250 per credit hour for approved classes. For most reservists, tuition assistance covers the complete cost of college classes. Reserve Officer Training Corps (ROTC) scholarships cover the full cost of tuition for reservists in college who are interested in becoming Army officers upon graduation.
- The Reserve also provides soldiers the opportunity to have health and life insurance at low cost. Since October 2007, reservists may qualify to purchase military health care through TRICARE Reserve Select. Reservists already covered under the Federal Employee Health Benefits (FEHB) program are not eligible for health coverage under TRICARE. Like any other employer-sponsored health plan, reservists pay a monthly premium to maintain coverage. As of December 2010, monthly premiums for only the soldier are $49.62, whereas the premium for full family coverage is $197.65 per month.
- Soldiers serving in the Army Reserve are eligible to contribute to a retirement savings account similar to a 401(k) with civilian employers. The plan is called the Thrift Savings Plan and allows reservists to contribute as much as 100 percent of pay, incentives and other special pay they receive like enlistment or re-enlistment bonuses. Contributions to your plan are tax-free and deducted from your pay before taxes are withheld from the Internal Revenue Service or state tax authorities. In addition, reservists with at least 20 years of service qualify for retirement benefits upon reaching age 60. The exact amount of retirement benefit depends on what you earned in drill pay and adjusted for cost-of-living increases every year.
previous post