USERRA Rights?

This is complicated, a 5 month employee just stopped showing up to work one day. When I reviewed his file I saw that he was in the National Guard. So I checked with the NG office he reported to and found out he had been called for active duty for 6 months (locally). At the end of the original six months, I once again called and found out his active duty status had been extended, again for 6 months(again locally). Called yet again and found out his active duty was extended for a year (same location). Then extended for another year. Fast forward to February 2006. Found out his active duty would not be extended past February 11, 2006. Sent a letter to him using the address on the orders I was e-mailed by the NG. In it we welcomed him back, reminding him of the 90 days he had to reapply. And that he had small balances of vacation and PTO. In the letter we said that if he chose not to reapply we would after the end of the 90 cash out the vacation and PTO and send it to the last address he had on record.

Questions: Are we OK to cash the balances out at the end of the 90 days? Since the employee never notified us that he was being called to active duty, I assume he is still granted the USSERA rights, is that correct?

Thanks

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