- 11 - Further, the statutory provision, in conjunction with the implementing directives issued by DOD, simply establishes a formula for computing the minimum “additional amount” of compensation retired instructors are entitled to receive from the employing school and the maximum portion of such additional amount that will be reimbursed by the Federal Government. See id. at 675. Moreover, the “additional amount” is not in the form of basic pay or an allowance afforded to active duty officers. Id. at 676. Rather, the “additional amount” is tantamount to an inducement offered to persuade retired personnel to accept employment as JROTC instructors. Id. The active duty pay is merely a guideline in determining the level at which JROTC instructors are to be compensated. Consequently, each school district is given discretion to compensate their JROTC instructors in amounts greater than the statutory “additional amount”, subject to the condition that there will be no additional reimbursement from the Federal Government. Thus, the only limitation imposed on school districts is that instructors must, at a minimum, be paid the “additional amount” set out in the statute. Id. at 674. In view of the foregoing, we hold that no portion of the JROTC pay that petitioner received from HISD is excludable from gross income pursuant to 10 U.S.C. sec. 2031(d).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011