117 HR 5888 IH: Financial Readiness of America’s Servicemembers Act of 2021
U.S. House of Representatives
2021-11-04
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EN
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I
117th CONGRESS
1st Session
H. R. 5888
IN THE HOUSE OF REPRESENTATIVES
November 4, 2021
Mrs. Wagner (for herself and Mr. David Scott of Georgia) introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
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.
1.

Short title
This Act may be cited as the “Financial Readiness of America’s Servicemembers Act of 2021”.
2.

Improvements to financial literacy training
(a)

In general
Subsection (a) of section 992 of title 10, United States Code, is amended—
(1)
in paragraph (2)(C), by striking “grade E–4” and inserting “grade E–6”; and
(2)
by adding at the end the following new paragraph:
“(5)
In carrying out the program to provide training under this subsection, the Secretary concerned shall—
(A)
require the development of a standard minimum curriculum across all military departments for such training that—
(i)
focuses on ensuring that members of the armed forces who receive such training develop proficiency in financial literacy rather than focusing on completion of training modules;
(ii)
is based on best practices in the financial services industry; and
(iii)
is designed to address the needs of members and their families;
(B)
ensure that such training—
(i)
is conducted by a registered investment adviser or a broker-dealer registered with the Securities and Exchange Commission who utilizes instructors with advanced credentials (as determined by the Secretary); and
(ii)
is provided, to the extent practicable—
(I)
in a class held in person with fewer than 50 attendees;
(II)
one-on-one between the member and a financial services counselor or a qualified representative described in subclause (III) or (IV) of subsection (b)(2)(A)(ii); or
(III)
remotely via electronic means;
(C)
ensure that—
(i)
an in-person or remote class described in subparagraph (B)(i)(I) is available to the spouse of a member; and
(ii)
if a spouse of a member is unable to attend such a class in person—
(I)
training is available to the spouse through the Military OneSource Program; and
(II)
the member is informed during the in-person training of the member under subparagraph (B)(i) with respect to how the spouse of the member can access the training; and
(D)
ensure that such training, and all documents and materials provided in relation to such training, are presented or written in a manner that the Secretary concerned determines can be understood by the average enlisted member.”.
(b)

Qualified representatives for counseling for members and spouses
Subsection (b)(2) of such section is amended—
(1)
in subparagraph (A)(ii), by adding at the end the following:
“(IV)
Through qualified representatives of banks or credit unions operating on military installations pursuant to an agreement with the Secretary concerned, or through a qualified representative of a financial planning firm who has been approved by the Secretary concerned to provide such counseling on a military installation pursuant to regulations or guidance prescribed by the Secretary concerned; and”; and
(2)
by adding at the end the following new subparagraph:
“(C)
No professional financial planning firm may be disqualified from providing counseling under subparagraph (A)(ii) solely on the basis that the firm operates a commercial business in the financial services industry.”.
(c)

Provision of retirement information
Such section is further amended—
(1)
by redesignating subsections (d) and (e) as subsections (e) and (g), respectively; and
(2)
by inserting after subsection (c) the following new subsection (d):
“(d)

Provision of retirement information
In each training under subsection (a) and in each meeting to provide counseling under subsection (b), a member of the armed forces shall be provided with the following, in both hard copy and electronic format:
(1)
All forms relating to retirement that are relevant to the member, including with respect to the Thrift Savings Plan.
(2)
Information with respect to how to find additional information.
(3)
Contact information for—
(A)
a counselor provided through—
(i)
the Personal Financial Counselor program, Personal Financial Management program, or the Military OneSource Program; or
(ii)
a nonprofit organization or agency that has a current agreement with the Secretary concerned to provide financial services counseling; or
(B)
a qualified representative of—
(i)
a bank or credit union operating on a military installation pursuant to an agreement with the Secretary concerned; and
(ii)
a certified financial planning firm approved by the Secretary concerned to provide such counseling on a military installation pursuant to regulations or guidance prescribed by the Secretary concerned.”.
(d)

Advisory Council on Financial Readiness
Such section is further amended by inserting after subsection (e), as redesignated by subsection (c)(1), the following new subsection:
“(f)

Advisory Council on Financial Readiness
(1)
There is established an Advisory Council on Financial Readiness (in this section referred to as the “Council”).
(2)
(A)
The Council shall consist of 15 members appointed by the Secretary of Defense, as follows—
(i)
three shall be representatives of military support organizations;
(ii)
three shall be representatives of veterans service organizations;
(iii)
three shall be representatives of private nonprofit organizations with a vested interest in education and communication of financial education and financial services;
(iv)
three shall be representatives of firms who employ registered investment advisors or broker-dealers as defined under the Federal securities laws; and
(v)
three shall be representatives of governmental entities with a vested interest in education and communication of financial education and financial services.
(B)
The Secretary shall appoint members to the Council from among individuals qualified to appraise military compensation, military retirement, and financial literacy training.
(C)
Members of the Council shall serve for terms of three years, except that, of the members first appointed—
(i)
five shall be appointed for terms of one year;
(ii)
five shall be appointed for terms of two years; and
(iii)
five shall be appointed for terms of three years.
(D)
A member of the Council may be reappointed for additional terms.
(E)
Any member appointed to fill a vacancy occurring before the expiration of the term of office for which such member’s predecessor was appointed shall be appointed only for the remainder of such term.
(3)
The Council shall—
(A)
advise the Secretary with respect to matters relating to the financial literacy and financial readiness of members of the armed forces; and
(B)
submit to the Secretary recommendations with respect to those matters.
(4)
(A)
Subject to subparagraph (B), the Council shall meet not less frequently than twice each year and at such other times as the Secretary requests.
(B)
A majority of members shall constitute a quorum and action shall be taken only by a majority vote of the members present and voting.
(5)
The Secretary—
(A)
shall provide to the Council an executive secretary and such secretarial, clerical, and other support services as the Council considers necessary to carry out the duties of the Council; and
(B)
may request that other Federal agencies provide statistical data, reports, and other information that is reasonably accessible to assist the Council in the performance of the duties of the Council.
(6)
While away from their homes or regular places of business in the performance of services for Council, members of the Council shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5.
(7)
Not less frequently than annually, the Secretary shall submit to Congress a report that—
(A)
describes each recommendation received from the Council during the preceding year; and
(B)
indicates, with respect to each such recommendation, whether the Secretary has implemented the recommendation and, if not, an explanation of why the Secretary has not implemented the recommendation.
(8)
Section 14(a) of the Federal Advisory Committee Act (5 U.S.C. App.) (relating to termination) shall not apply to the Council.
(9)
(A)
Subject to subparagraph (B), the Council shall terminate on the day that is five years after the date of the enactment of the Financial Readiness of America’s Servicemembers Act of 2021.
(B)
The Secretary may renew the Council for an additional periods each of which shall not exceed five years in duration.
(10)
In this subsection:
(A)
The terms “broker-dealer” and “registered investment advisor” have the meanings given such terms in section 202 of the Investment Advisers Act of 1940 (15 U.S.C. 80a–3).
(B)
The term military support organization means an organization that provides support to members of the armed forces and their families with respect to education, finances, health care, employment, and overall well-being.
(C)
The term “private nonprofit organization” means an entity described in section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)).
(D)
The term veterans service organization means any organization recognized by the Secretary of Veterans Affairs for the representation of veterans under section 5902 of title 38.”.
(e)

Report on effectiveness of financial services counseling
Not later than three years after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees (as that term is defined in section 101 of title 10, United States Code) a report on financial literacy training and financial services counseling provided under section 992 of title 10, United States Code, as amended by this section, that assesses—
(1)
the effectiveness of such training and counseling, which shall be determined using actual localized data similar to the Unit Risk Inventory Survey of the Army; and
(2)
whether additional training or counseling is necessary for enlisted members of the Armed Forces or for officers.
(f)

Regulations
Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations to carry out this section.
3.

Report on improved access to Thrift Savings Plan
Not later than 18 months after the date of the enactment of this Act, the Federal Retirement Thrift Investment Board shall submit to Congress a plan for improving the access of members of the Armed Forces to information about the Thrift Savings Plan that—
(1)
takes into account the time likely to pass between the mailing of account information to a member of the Armed Forces and the time the member is likely to receive the information; and
(2)
includes recommendations for legislation necessary to improve such access.