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But Congress eventually approved about US$2 billion in retroactive compensation for these workers, erasing any payroll savings.
But all those who were laid off will get retroactive compensation in their next paychecks, the Office of Management and Budget said.
The Defense Department said Wednesday that it would begin paying retroactive compensation to troops who were prevented from leaving the military under the contentious policy known as stop-loss.
If Figueroa succeeds, he could receive hundreds of thousands of dollars in retroactive compensation.
The agency, mirroring some of its prior policies, decided not to provide the newly eligible vets with retroactive compensation through the new ruling, a move Carter called "arbitrary" and "unconstitutional".
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There is only one credit union with over $50bn in assets, said NCUA board chairman Debbie Matz, adding the proposal would not be retroactive to existing compensation plans.
Despite winning an appeal in a social security tribunal which reimbursed his benefits, solicitors argue that Hewstone is being denied justice after the introduction of retroactive legislation overturned that compensation award.
The compensation program is retroactive to Jan . 1 which means previous victims may seek benefits.
According to an aide, the bill would reauthorize the compensation for six months retroactive to Dec. 28th, when the benefits lapsed for 1.3 million workers (more claimants have become eligible for federal benefits since then).
And while his appeal was pending, a federal court ruled in 2009 that the department's "extraordinary award procedure" for reviewing compensation awards larger than $250,000 or for retroactive payments dating back more than eight years was illegal.
However, in 1999, California Gov. Gray Davis raised retirement benefits retroactively and the state courts decided that those retroactive increases are constitutionally protected contracts, even though the California Constitution specifically prohibits retroactive increases in compensation for work already done.
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