KRDO13 Investigates: Exploring the ‘Grey Area’ benefit gap for National Guard and Reserve retirees
COLORADO SPRINGS, Colo. (KRDO) - A Southern Colorado Air Force Reserve veteran says after more than two decades of service, he's forced to wait years to access retirement benefits he has already earned, a situation affecting many National Guard and Reserve members nationwide.
The issue is commonly known as the “Gray Area,” and it’s now drawing attention on Capitol Hill.
Dr. Paul Wiggins retired from the Air Force Reserve in 2021 at age 41 after 21 years of service at Peterson Space Force Base.
Under current federal law governing non-regular military retirement, Wiggins will not begin receiving retirement pay until age 58. He also will not be eligible for retiree TRICARE health coverage until age 60.
The “Gray Area” applies to many Guard and Reserve members who complete at least 20 years of qualifying service but must wait years, sometimes decades, before they can receive retirement pay and subsidized health benefits.
Active-duty service members, by comparison, typically begin receiving retirement pay and access to subsidized health coverage shortly after completing 20 years of service.
"They, within a month of retiring… they do get their retirement check, and then they do get TRICARE," Wiggins said. "For us, Guard and Reserve… when we do 20-plus years, we are placed into this gray area where we sit for 10 to 20 years… until we can pull out our retirement and health care."
During this period, Guard and Reserve retirees who do not qualify for Veterans Affairs health coverage may need to purchase private insurance or TRICARE Retired Reserve coverage, which can cost more than $1,500 per month for family coverage, according to federal program rates.
KRDO13 Investigates asked the El Paso County Division of Veterans Services how many local veterans may be affected. The office said it does not track veterans by service component or retirement status.
KRDO13 Investigates also reached out to the U.S. Department of Veterans Affairs, but had not received a response as of publication.
In January, members of Congress introduced the Duty Status Reform Act (H.R. 6976), a bipartisan bill aimed at modernizing aspects of Guard and Reserve service.
The legislation would streamline more than 30 duty classifications into four categories and tie certain benefits more directly to the type of mission performed. The bill also proposes changes to how pay, benefits, and service credit are calculated and administered for Reserve and National Guard members.
However, as currently written, the legislation would not fully close the gap experienced by "Gray Area" retirees like Wiggins.
The bill remains in the early stages of the legislative process and has been referred to the House Armed Services Committee.
KRDO13 Investigates reached out to the Department of Defense and Colorado Senators Michael Bennet and John Hickenlooper for comment, but did not received response at the time of this posting.
U.S. Representative Jeff Crank, who represents Colorado’s 5th Congressional District and serves on the House Armed Services Committee, provided a statement:
"I am supportive of the intent of H.R. 6976, the Duty Status Reform Act, to streamline duty statuses to ensure servicemembers doing the same work receive the same pay and benefits. I will continue to work towards a path forward to ensure our servicemembers receive fair pay and benefits, and I look forward to advancing these priorities in this year’s National Defense Authorization Act."
KRDO13 Investigates will update this story as additional responses are received.
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