[Congressional Record Volume 167, Number 190 (Thursday, October 28, 2021)]
[Senate]
[Pages S7493-S7494]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3989. Mrs. MURRAY submitted an amendment intended to be proposed 
by her to the bill H.R. 4350, to authorize appropriations for fiscal 
year 2022 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such fiscal year, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title VI, add the following:

     SEC. 607. IMPROVEMENTS TO FINANCIAL LITERACY TRAINING.

       (a) Improvements to Financial Literacy Training.--
       (1) In general.--Subsection (a) of section 992 of title 10, 
     United States Code, is amended--
       (A) in paragraph (2)(C), by striking ``grade E-4'' and 
     inserting ``grade E-6'';
       (B) 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 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, such as the use of a social learning approach and 
     the incorporation of elements of behavioral economics or 
     gamification; and
       ``(iii) is designed to address the needs of members and 
     their families;
       ``(B) ensure that such training--
       ``(i) is conducted by a financial services counselor who is 
     qualified as described in paragraph (3) of subsection (b) or 
     by other means as described in paragraph (2)(A)(ii) of that 
     subsection;
       ``(ii) is provided, to the extent practicable--
       ``(I) in a class held in person with fewer than 50 
     attendees; or
       ``(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); and
       ``(iii) is provided using computer-based methods only if 
     methods described in clause (ii) are impractical or 
     unavailable;
       ``(C) ensure that--
       ``(i) an in-person 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 Military 
     OneSource; and
       ``(II) the member is informed during the in-person training 
     of the member under subparagraph (B)(i) with respect to how 
     the member's spouse can access the training;
       ``(D) ensure that such training, and all documents and 
     materials provided in relation to such training, are 
     presented or written in manner that the Secretary determines 
     can be understood by the average enlisted member.''.
       (2) Qualified representatives for counseling for members 
     and spouses.--Subsection (b)(2)(A)(ii) of such section is 
     amended by adding at the end the following:
       ``(IV) Through qualified representatives of banks or credit 
     unions operating on military installations pursuant to an 
     operating agreement with the Department of Defense or a 
     military department.''.
       (3) Provision of retirement information.--Such section is 
     further amended--
       (A) by redesignating subsections (d) and (e) as subsections 
     (e) and (g), respectively; and
       (B) 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--
       ``(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; and
       ``(3) contact information for counselors provided through--
       ``(A) the Personal Financial Counselor program, the 
     Personal Financial Management program, or Military OneSource; 
     or
       ``(B) nonprofit organizations or agencies that have in 
     effect agreements with the Department of Defense to provide 
     financial services counseling.''.
       (4) Advisory council on financial readiness.--Such section 
     is further amended by inserting after subsection (e), as 
     redesignated by paragraph (3)(A), the following new 
     subsection:
       ``(f) Advisory Council on Financial Readiness.--
       ``(1) Establishment.--There is established an Advisory 
     Council on Financial Readiness (in this section referred to 
     as the `Council').
       ``(2) Membership.--
       ``(A) In general.--The Council shall consist of 12 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 governmental 
     entities with a vested interest in education and 
     communication of financial education and financial services.
       ``(B) Qualifications.--The Secretary shall appoint members 
     to the Council from among individuals qualified to appraise 
     military compensation, military retirement, and financial 
     literacy training.
       ``(C) Terms.--Members of the Council shall serve for terms 
     of three years, except that, of the members first appointed--
       ``(i) four shall be appointed for terms of one year;
       ``(ii) four shall be appointed for terms of two years; and
       ``(iii) four shall be appointed for terms of three years.
       ``(D) Reappointment.--A member of the Council may be 
     reappointed for additional terms.
       ``(E) Vacancies.--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) Duties and functions.--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) Meetings.--
       ``(A) In general.--The Council shall meet not less 
     frequently than twice each year and at such other times as 
     the Secretary requests.
       ``(B) Quorum.--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) Support services.--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.

[[Page S7494]]

       ``(6) Compensation.--While away from their homes or regular 
     places of business in the performance of services for the 
     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) Annual report.--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) includes a statement, with respect to each such 
     recommendation, of whether the Secretary has implemented the 
     recommendation and, if not, a description of why the 
     Secretary has not implemented the recommendation.
       ``(8) Termination.--Section 14(a) of the Federal Advisory 
     Committee Act (5 U.S.C. App.) (relating to termination) shall 
     not apply to the Council.
       ``(9) Definitions.--In this subsection:
       ``(A) Military support organization.--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.
       ``(B) Veterans service organization.--The term `veterans 
     service organization' means any organization recognized by 
     the Secretary for the representation of veterans under 
     section 5902 of title 38.''.
       (5) Report on effectiveness of financial services 
     counseling.--Not later than 3 years after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees (as 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 subsection, that assesses--
       (A) 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
       (B) whether additional training or counseling is necessary 
     for enlisted members of the Armed Forces or for officers.
       (b) Modifications to Lump Sum Payments of Certain Retired 
     Pay.--
       (1) Spousal consent to lump sum payment.--Subsection (b) of 
     section 1415 of title 10, United States Code, is amended by 
     adding at the end the following:
       ``(7) Spousal consent for election of lump sum payment.--An 
     eligible person who is married may not elect to receive a 
     lump sum payment under this subsection without the 
     concurrence of the person's spouse, unless the eligible 
     person establishes to the satisfaction of the Secretary 
     concerned--
       ``(A) that the spouse's whereabouts cannot be determined; 
     or
       ``(B) that, due to exceptional circumstances, requiring the 
     person to seek the spouse's consent would otherwise be 
     inappropriate.''.
       (2) Disclosures relating to offer of lump sum payment.--
     Such section is further amended--
       (A) by redesignating subsection (e) as subsection (g); and
       (B) by inserting after subsection (d) the following new 
     subsections:
       ``(e) Disclosures Relating to Offer of Lump Sum Payment.--
       ``(1) In general.--Not later than 90 days before offering 
     an eligible person a lump sum payment under this section, the 
     Secretary of Defense shall provide a notice to the person, 
     and the person's spouse, if married, that includes the 
     following:
       ``(A) A description of the available retirement benefit 
     options, including--
       ``(i) the monthly covered retired pay that the person would 
     receive after the person attains retirement age if the person 
     is not already receiving such pay;
       ``(ii) the monthly covered retired pay that the person 
     would receive if payments begin immediately; and
       ``(iii) the amount of the lump sum payment the person would 
     receive if the person elects to receive the lump sum payment.
       ``(B) An explanation of how the amount of the lump sum 
     payment was calculated, including the interest rate and 
     mortality assumptions used in the calculation, and whether 
     any additional benefits were included in the amount.
       ``(C) A description of how the option to take the lump sum 
     payment compares to the value of the covered retired pay the 
     person would receive if the person elected not to take the 
     lump sum payment.
       ``(D) A statement of whether, by purchasing a retail 
     annuity using the lump sum payment, it would be possible to 
     replicate the stream of payments the person would receive if 
     the person elected not to take the lump sum payment.
       ``(E) A description of the potential implications of 
     accepting the lump sum payment, including possible benefits 
     and reductions in such benefits, investment risks, longevity 
     risks, and loss of protection from creditors.
       ``(F) A description of the tax implications of accepting 
     the lump sum payment, including rollover options, early 
     distribution penalties, and associated tax liabilities.
       ``(G) Instructions for how to accept or reject the offer of 
     the lump sum payment and the date by which the person is 
     required to accept or reject the offer.
       ``(H) Contact information for the person to obtain more 
     information or ask questions about the option to accept the 
     lump sum payment, including the opportunity for a one-on-one 
     meeting with a counselor provided through the Personal 
     Financial Counselor program or the Personal Financial 
     Management program.
       ``(I) A statement that--
       ``(i) financial advisers (other than financial services 
     counselors provided through the Personal Financial Counselor 
     program or the Personal Financial Management program) may not 
     be required to act in the best interests of the person or the 
     person's beneficiaries with respect to determining whether to 
     take the lump sum payment; and
       ``(ii) if the person or a beneficiary of the person is 
     seeking financial advice from a financial adviser not 
     affiliated with the armed forces, the person or beneficiary 
     should obtain written confirmation that the adviser is acting 
     as a fiduciary to the person or beneficiary.
       ``(J) Such other information as the Secretary considers to 
     be necessary or relevant.
       ``(2) Form.--The Secretary shall ensure that any notice 
     provided to an eligible person under paragraph (1)--
       ``(A) is written in manner that the Secretary determines 
     can be understood by the average enlisted member of the armed 
     forces; and
       ``(B) is presented in a manner that is not biased for or 
     against acceptance of the offer of the lump sum payment.
       ``(f) Report Required.--Not later than one year after the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 2022, and annually thereafter, the 
     Secretary shall submit to the congressional defense 
     committees report that--
       ``(1) sets forth the number of members of the armed forces 
     who take a lump sum payment under this section; and
       ``(2) describes the details of the arrangements relating to 
     taking such a payment, including--
       ``(A) whether members have taken a lump sum payment in 
     exchange for reduced future benefits; and
       ``(B) information relating to the members who have taken a 
     lump sum payment, such as the age and rank of such 
     members.''.
       (c) Training of Certain Officers Relating to Blended 
     Retirement System.--The Secretary of Defense shall ensure 
     that each member of the Armed Forces in pay grade E-9 or 
     below or in pay grade O-6 or below receives training with 
     respect to the features of the Blended Retirement System.
       (d) 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) makes recommendations for statutory changes necessary 
     to improve such access.
       (e) Regulations.--The Secretary of Defense may prescribe 
     such regulations as are necessary to carry out the amendments 
     made by this section.
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