RESOURCES Act

II 116TH CONGRESS 2D SESSION S. 4044 To improve the provision of financial literacy training and information relating to the Blended Retirement System to members of the Armed Forces, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 23, 2020 Mrs. MURRAY introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To improve the provision of financial literacy training and information relating to the Blended Retirement System to members of the Armed Forces, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Re-open Enrollment 4 for Servicemembers to Opt-in to Updated Retirement 5 Choice for Enduring Security Act of 2020’’ or the ‘‘RE- 6 SOURCES Act’’. 7 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4044 IS SEC. 2. IMPROVEMENTS TO FINANCIAL LITERACY TRAIN- 1 ING. 2 (a) IN GENERAL.—Subsection (a) of section 992 of 3 title 10, United States Code, is amended— 4 (1) in paragraph (2)(C), by striking ‘‘grade E– 5 4’’ and inserting ‘‘grade E–6’’; 6 (2) by adding at the end the following new 7 paragraph: 8 ‘‘(5) In carrying out the program to provide training 9 under this subsection, the Secretary concerned shall— 10 ‘‘(A) require the development of a standard cur- 11 riculum across all military departments for such 12 training that— 13 ‘‘(i) focuses on ensuring that members of 14 the armed forces who receive such training de- 15 velop proficiency in financial literacy rather 16 than focusing on completion of training mod- 17 ules; 18 ‘‘(ii) is based on best practices in the fi- 19 nancial services industry, such as the use of a 20 social learning approach and the incorporation 21 of elements of behavioral economics or 22 gamification; and 23 ‘‘(iii) is designed to address the needs of 24 members and their families; 25 ‘‘(B) ensure that such training— 26 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4044 IS ‘‘(i) is conducted by a financial services 1 counselor who is qualified as described in para- 2 graph (3) of subsection (b) or by other means 3 as described in paragraph (2)(A)(ii) of that 4 subsection; 5 ‘‘(ii) is provided, to the extent prac- 6 ticable— 7 ‘‘(I) in a class held in person with 8 fewer than 50 attendees; or 9 ‘‘(II) one-on-one between the member 10 and a financial services counselor or a 11 qualified representative described in sub- 12 clause (III) or (IV) of subsection 13 (b)(2)(A)(ii); and 14 ‘‘(iii) is provided using computer-based 15 methods only if methods described in clause (ii) 16 are impractical or unavailable; 17 ‘‘(C) ensure that— 18 ‘‘(i) an in-person class described in sub- 19 paragraph (B)(i)(I) is available to the spouse of 20 a member; and 21 ‘‘(ii) if a spouse of a member is unable to 22 attend such a class in person— 23 ‘‘(I) training is available to the spouse 24 through Military OneSource; and 25 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4044 IS ‘‘(II) the member is informed during 1 the in-person training of the member 2 under subparagraph (B)(i) with respect to 3 how the member’s spouse can access the 4 training; and 5 ‘‘(D) ensure that such training, and all docu- 6 ments and materials provided in relation to such 7 training, are presented or written in manner that 8 the Secretary determines can be understood by the 9 average enlisted member.’’. 10 (b) QUALIFIED REPRESENTATIVES FOR COUNSELING 11 FOR MEMBERS AND SPOUSES.—Subsection (b)(2)(A)(ii) 12 of such section is amended by adding at the end the fol- 13 lowing: 14 ‘‘(IV) Through qualified representatives of 15 banks or credit unions operating on military in- 16 stallations pursuant to an operating agreement 17 with the Department of Defense or a military 18 department.’’. 19 (c) PROVISION OF RETIREMENT INFORMATION.— 20 Such section is further amended— 21 (1) by redesignating subsections (d) and (e) as 22 subsections (e) and (g), respectively; and 23 (2) by inserting after subsection (c) the fol- 24 lowing new subsection (d): 25 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4044 IS ‘‘(d) PROVISION OF RETIREMENT INFORMATION.—In 1 each training under subsection (a) and in each meeting 2 to provide counseling under subsection (b), a member of 3 the armed forces shall be provided with— 4 ‘‘(1) all forms relating to retirement that are 5 relevant to the member, including with respect to the 6 Thrift Savings Plan; 7 ‘‘(2) information with respect to how to find ad- 8 ditional information; and 9 ‘‘(3) contact information for— 10 ‘‘(A) counselors provided through— 11 ‘‘(i) the Personal Financial Counselor 12 program, the Personal Financial Manage- 13 ment program, or Military OneSource; or 14 ‘‘(ii) nonprofit organizations or agen- 15 cies that have in effect agreements with 16 the Department of Defense to provide fi- 17 nancial services counseling; or 18 ‘‘(B) qualified representatives of banks or 19 credit unions operating on military installations 20 pursuant to an operating agreement with the 21 Department of Defense or a military depart- 22 ment.’’. 23 (d) ADVISORY COUNCIL ON FINANCIAL READI- 24 NESS.—Such section is further amended by inserting after 25 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4044 IS subsection (e), as redesignated by subsection (c)(1), the 1 following new subsection: 2 ‘‘(f) ADVISORY COUNCIL ON FINANCIAL READI- 3 NESS.— 4 ‘‘(1) ESTABLISHMENT.—There is established an 5 Advisory Council on Financial Readiness (in this 6 section referred to as the ‘Council’). 7 ‘‘(2) MEMBERSHIP.— 8 ‘‘(A) IN GENERAL.—The Council shall con- 9 sist of 12 members appointed by the Secretary 10 of Defense, as follows: 11 ‘‘(i) Three shall be representatives of 12 military support organizations. 13 ‘‘(ii) Three shall be representatives of 14 veterans service organizations. 15 ‘‘(iii) Three shall be representatives of 16 private, nonprofit organizations with a 17 vested interest in education and commu- 18 nication of financial education and finan- 19 cial services. 20 ‘‘(iv) Three shall be representatives of 21 governmental entities with a vested inter- 22 est in education and communication of fi- 23 nancial education and financial services. 24 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 4044 IS ‘‘(B) QUALIFICATIONS.—The Secretary 1 shall appoint members to the Council from 2 among individuals qualified to appraise military 3 compensation, military retirement, and financial 4 literacy training. 5 ‘‘(C) TERMS.—Members of the Council 6 shall serve for terms of three years, except that, 7 of the members first appointed— 8 ‘‘(i) five shall be appointed for terms 9 of one year; 10 ‘‘(ii) five shall be appointed for terms 11 of two years; and 12 ‘‘(iii) five shall be appointed for terms 13 of three years. 14 ‘‘(D) REAPPOINTMENT.—A member of the 15 Council may be reappointed for additional 16 terms. 17 ‘‘(E) VACANCIES.—Any member appointed 18 to fill a vacancy occurring before the expiration 19 of the term of office for which such member’s 20 predecessor was appointed shall be appointed 21 only for the remainder of such term. 22 ‘‘(3) DUTIES AND FUNCTIONS.—The Council 23 shall— 24 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 4044 IS ‘‘(A) advise the Secretary with respect to 1 matters relating to the financial literacy and fi- 2 nancial readiness of members of the armed 3 forces; and 4 ‘‘(B) submit to the Secretary recommenda- 5 tions with respect to those matters. 6 ‘‘(4) MEETINGS.— 7 ‘‘(A) IN GENERAL.—Subject to subpara- 8 graph (B), the Council shall meet not less fre- 9 quently than twice each year and at such other 10 times as the Secretary requests. 11 ‘‘(B) DURING ELECTION PERIOD FOR 12 BLENDED RETIREMENT SYSTEM.—During the 13 period beginning on the date of the enactment 14 of the Re-open Enrollment for Servicemembers 15 to Opt-in to Updated Retirement Choice for 16 Enduring Security Act of 2020 and ending at 17 the end of the period provided for under section 18 1409(b)(4) and 12739(f) to elect to be enrolled 19 in the Blended Retirement System, the Council 20 shall meet not less frequently than every 90 21 days. 22 ‘‘(C) QUORUM.—A majority of members 23 shall constitute a quorum and action shall be 24 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 4044 IS taken only by a majority vote of the members 1 present and voting. 2 ‘‘(5) SUPPORT SERVICES.—The Secretary— 3 ‘‘(A) shall provide to the Council an execu- 4 tive secretary and such secretarial, clerical, and 5 other support services as the Council considers 6 necessary to carry out the duties of the Council; 7 and 8 ‘‘(B) may request that other Federal agen- 9 cies provide statistical data, reports, and other 10 information that is reasonably accessible to as- 11 sist the Council in the performance of the du- 12 ties of the Council. 13 ‘‘(6) COMPENSATION.—While away from their 14 homes or regular places of business in the perform- 15 ance of services for Council, members of the Council 16 shall be allowed travel expenses, including per diem 17 in lieu of subsistence, in the same manner as per- 18 sons employed intermittently in the Government 19 service are allowed expenses under section 5703 of 20 title 5. 21 ‘‘(7) ANNUAL REPORT.—Not less frequently 22 than annually, the Secretary shall submit to Con- 23 gress a report that— 24 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 4044 IS ‘‘(A) describes each recommendation re- 1 ceived from the Council during the preceding 2 year; and 3 ‘‘(B) includes a statement, with respect to 4 each such recommendation, of whether the Sec- 5 retary has implemented the recommendation 6 and, if not, a description of why the Secretary 7 has not implemented the recommendation. 8 ‘‘(8) TERMINATION.—Section 14(a) of the Fed- 9 eral Advisory Committee Act (5 U.S.C. App.) (relat- 10 ing to termination) shall not apply to the Council. 11 ‘‘(9) DEFINITIONS.—In this subsection: 12 ‘‘(A) MILITARY SUPPORT ORGANIZA- 13 TION.—The term ‘military support organiza- 14 tion’ means an organization that provides sup- 15 port to members of the armed forces and their 16 families with respect to education, finances, 17 health care, employment, and overall well-being. 18 ‘‘(B) VETERANS SERVICE ORGANIZA- 19 TION.—The term ‘veterans service organization’ 20 means any organization recognized by the Sec- 21 retary for the representation of veterans under 22 section 5902 of title 38.’’. 23 (e) FINANCIAL SERVICES COUNSELING RELATING TO 24 LOANS FROM MILITARY WELFARE SOCIETIES.— 25 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 4044 IS (1) IN GENERAL.—A military welfare society 1 may not provide to a member of the armed forces 2 a loan unless the member receives financial services 3 counseling provided by the society or through coun- 4 selors provided by the Armed Forces not later than 5 60 days after receiving the loan. 6 (2) WAIVER.—The Secretary of Defense may, 7 under regulations the Secretary shall prescribe, 8 waive the requirement to receive financial services 9 counseling under paragraph (1) if extenuating cir- 10 cumstances make receiving such counseling impos- 11 sible. 12 (3) MILITARY WELFARE SOCIETY DEFINED.—In 13 this paragraph, the term ‘‘military welfare society’’ 14 has the meaning given that term in section 1033(b) 15 of title 10, United States Code. 16 (f) REPORT ON EFFECTIVENESS OF FINANCIAL 17 SERVICES COUNSELING.—Not later than 3 years after the 18 date of the enactment of this Act, the Secretary of Defense 19 shall submit to the congressional defense committees (as 20 defined in section 101 of title 10, United States Code) 21 a report on financial literacy training and financial serv- 22 ices counseling provided under section 992 of title 10, 23 United States Code, as amended by this section, that as- 24 sesses— 25 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 4044 IS (1) the effectiveness of such training and coun- 1 seling, which shall be determined using actual local- 2 ized data similar to the Unit Risk Inventory Survey 3 of the Army; and 4 (2) whether additional training or counseling is 5 necessary for enlisted members of the Armed Forces 6 or for officers. 7 SEC. 3. MODIFICATIONS TO LUMP SUM PAYMENTS OF CER- 8 TAIN RETIRED PAY. 9 (a) SPOUSAL CONSENT TO LUMP SUM PAYMENT.— 10 Subsection (b) of section 1415 of title 10, United States 11 Code, is amended by adding at the end the following: 12 ‘‘(7) SPOUSAL CONSENT FOR ELECTION OF 13 LUMP SUM PAYMENT.—An eligible person who is 14 married may not elect to receive a lump sum pay- 15 ment under this subsection without the concurrence 16 of the person’s spouse, unless the eligible person es- 17 tablishes to the satisfaction of the Secretary con- 18 cerned— 19 ‘‘(A) that the spouse’s whereabouts cannot 20 be determined; or 21 ‘‘(B) that, due to exceptional cir- 22 cumstances, requiring the person to seek the 23 spouse’s consent would otherwise be inappro- 24 priate.’’. 25 VerDate Sep 11 2014 00:23 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4044.IS S4044 pbinns on DSKJLVW7X2PROD with BILLS 13 •S 4044 IS (b) DISCLOSURES RELATING TO OFFER OF LUMP 1 SUM PAYMENT.—Such section is further amended— 2 (1) by redesignating subsection (e) as sub- 3 section (g); and 4 (2) by inserting after subsection (d) the fol- 5 lowing new subsections: 6 ‘‘(e) DISCLOSURES RELATING TO OFFER OF LUMP 7 SUM PAYMENT.— 8 ‘‘(1) IN GENERAL.—Not later than 90 days be- 9 fore offering an eligible person a partial or full lump 10 sum payment under this section, the Secretar [Text truncated for display. 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