Lawmakers Aim to Close 'Gray Area' Benefit Gap for National Guard and Reserve Retirees

Bipartisan bill seeks to modernize duty statuses and tie benefits more directly to service, but current proposal doesn't fully address the issue.

Published on Feb. 26, 2026

Got story updates? Submit your updates here. ›

A Southern Colorado Air Force Reserve veteran says he's forced to wait years to access retirement benefits he's already earned, a situation affecting many National Guard and Reserve members nationwide. The issue, known as the 'Gray Area,' is now drawing attention on Capitol Hill, with lawmakers introducing the Duty Status Reform Act to overhaul aspects of Guard and Reserve service. However, the bill as currently written would not fully close the gap experienced by these 'Gray Area' retirees.

Why it matters

The 'Gray Area' affects 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. This can create significant financial hardship for these veterans and their families during the gap period.

The details

Under current federal law, Air Force Reserve veteran Dr. Paul Wiggins will not begin receiving retirement pay until age 58 or be eligible for retiree TRICARE health coverage until age 60, despite retiring from the Reserve in 2021 at age 41 after 21 years of service. Active-duty service members, by comparison, typically begin receiving retirement pay and access to subsidized health coverage shortly after completing 20 years of service.

  • Wiggins retired from the Air Force Reserve in 2021 at age 41 after 21 years of service.
  • In January 2026, members of Congress introduced the Duty Status Reform Act (H.R. 6976) to modernize aspects of Guard and Reserve service.

The players

Dr. Paul Wiggins

A Southern Colorado Air Force Reserve veteran who retired in 2021 at age 41 after 21 years of service.

Duty Status Reform Act (H.R. 6976)

A bipartisan bill aimed at modernizing aspects of Guard and Reserve service, including streamlining duty classifications and tying certain benefits more directly to the type of mission performed.

U.S. Representative Jeff Crank

Represents Colorado's 5th Congressional District and serves on the House Armed Services Committee.

Got photos? Submit your photos here. ›

What they’re saying

“They, within a month of retiring… they do get their retirement check, and then they do get TRICARE. 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.”

— Dr. Paul Wiggins, Air Force Reserve Veteran (KRDO13)

“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.”

— U.S. Representative Jeff Crank, Member, House Armed Services Committee (KRDO13)

What’s next

The Duty Status Reform Act (H.R. 6976) remains in the early stages of the legislative process and has been referred to the House Armed Services Committee. Lawmakers will continue to work towards addressing the 'Gray Area' benefit gap for National Guard and Reserve retirees.

The takeaway

The 'Gray Area' benefit gap highlights the disparities in retirement pay and health coverage between active-duty and National Guard/Reserve service members, creating significant financial hardship for these veterans and their families. While the Duty Status Reform Act aims to modernize aspects of Guard and Reserve service, more work is needed to fully close this longstanding issue.