Yes, they are called Veterans. With Veterans Preference in hiring, about a third of VA employees are veterans. (30% in 2010, up to 34% by 2012, with an Obama administration goal of 40%).
Interesting statistic from Fiscal Year 2014. While all new hires had an 80.3% retention rate, veteran new hires had only a retention rate of 73.23%. So they are the least likely employees to stick around after training, further contributing to the problems at the VA.
An obvious cure for the VA would be to require hiring on merit, not veterans status.
Probably the “firing” regs are more figurative, not the Veteran hiring preference.