[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5888 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 5888
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 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Readiness of America's
Servicemembers Act of 2021''.
SEC. 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.
SEC. 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.
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